03/14/2012 01:30 PM House FINANCE

HOUSE BILL NO. 250                                                                                                            
                                                                                                                                
     "An Act relating to the renewable energy grant fund                                                                        
     and recommendation program; and providing for an                                                                           
     effective date."                                                                                                           
                                                                                                                                
SARAH  FISHER-GOAD,   EXECUTIVE,  ALASKA   ENERGY  AUTHORITY                                                                    
(AEA),  DEPARTMENT  OF   COMMERCE,  COMMUNITY  AND  ECONOMIC                                                                    
DEVELOPMENT, referenced  the new fiscal note  dated 3/14/12.                                                                    
She stated that there was  no adjustment with respect to the                                                                    
funding that was required by  AEA to manage the program. The                                                                    
fiscal note reflected  a general fund fiscal  note, when the                                                                    
program  first passed  under HB  152 in  2008. Subsequently,                                                                    
AEA had  received funding from  the last and  current fiscal                                                                    
years to  spend up to  $2 million of  miscellaneous earnings                                                                    
from the  fund to  manage the program.  The fiscal  note had                                                                    
been adjusted  in order  to have the  funding source  be the                                                                    
Renewable Energy  Fund, which was  represented in  the first                                                                    
column. She remarked that both  the general fund and general                                                                    
fund miscellaneous  earnings were reduced, so  the Renewable                                                                    
Energy Fund funding source was  used in place. The remainder                                                                    
of the fiscal note was for informational purposes only.                                                                         
                                                                                                                                
2:29:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze believed the  program was effective and did                                                                    
not want to involve too many bureaucrats.                                                                                       
                                                                                                                                
Representative Edgmon wondered if  the original intent of HB
 was to  take the administrative costs from  the funds of                                                                    
the  program. Co-Chair  Thomas  responded  in the  negative,                                                                    
because  the goal  amount of  the program  had not  yet been                                                                    
achieved.                                                                                                                       
                                                                                                                                
Representative  Edgmon wondered  if  $2  million would  come                                                                    
from the governor's budget for  the program. Co-Chair Thomas                                                                    
replied in the negative.                                                                                                        
                                                                                                                                
Ms.  Fisher-Goad added  that  there  were interest  earnings                                                                    
that had  been credited to the  fund.  She noted  that there                                                                    
had  been $8.3  million in  earnings on  the fund,  and $3.2                                                                    
million had been used through FY 12.                                                                                            
                                                                                                                                
Representative Edgmon  wondered if the  administrative costs                                                                    
would increase  over time. Ms. Fisher-Goad  replied that AEA                                                                    
was  currently content  with the  staffing levels  to manage                                                                    
the projects and program.                                                                                                       
                                                                                                                                
Representative   Edgmon   supported  the   legislation.   He                                                                    
expressed    frustration   related    to   processing    and                                                                    
administration of the program.                                                                                                  
                                                                                                                                
2:33:07 PM                                                                                                                    
                                                                                                                                
Ms. Fisher-Goad  replied that the agency  had been sensitive                                                                    
to  the issue.  She  noted  there was  a  certain amount  of                                                                    
discussion with  grantees in the  beginning of  the process.                                                                    
There had been about 70 projects  in the past year and there                                                                    
had been no  delays related to staffing. She  would be happy                                                                    
to discuss any concerns for and from specific grantees.                                                                         
                                                                                                                                
Representative Edgmon was concerned  that there would not be                                                                    
enough staff for the program.                                                                                                   
                                                                                                                                
Co-Chair Thomas did  not believe anyone had  taken any money                                                                    
out of the program.                                                                                                             
                                                                                                                                
Ms.  Fisher-Goad replied  that  the  agency had  reallocated                                                                    
work, and there  was a new project manager to  deal with new                                                                    
projects in  the railbelt. The  agency was sensitive  to the                                                                    
issue and  would like be  conservative, but did not  want to                                                                    
be overstaffed coming in.                                                                                                       
                                                                                                                                
Representative Doogan  had been  an opponent of  the program                                                                    
since it had started, but was a supporter now.                                                                                  
                                                                                                                                
Representative Gara asked for a  comparison of the number of                                                                    
employees at the start of the program and present day.                                                                          
                                                                                                                                
Ms.  Fisher-Goad did  not have  the specifics  on hand.  She                                                                    
explained that  there had  been a lot  of new  activity when                                                                    
the program  had started, and  recently staffed up  in areas                                                                    
evaluating reimbursement requests to  ensure that a thorough                                                                    
job was done.                                                                                                                   
                                                                                                                                
Representative  Gara  noted   that  inadequate  staff  could                                                                    
create  a  time  lag,  but a  larger  staff  could  strongly                                                                    
evaluate proposals  in order  to make  calculated decisions.                                                                    
Ms.  Fisher-Goad  replied  that  she was  confident  in  the                                                                    
technical staff,  and felt that  intense effort was  made in                                                                    
order to get grants out by August.                                                                                              
                                                                                                                                
2:40:25 PM                                                                                                                    
                                                                                                                                
Representative  Gara spoke  about  a  disappointment in  the                                                                    
past. He  wondered whether the  agency had  sufficient staff                                                                    
to  support $50  million in  projects properly.  Ms. Fisher-                                                                    
Goad replied  that the  first round,  $453 million  worth of                                                                    
requests.  She stressed  that there  were still  many active                                                                    
grants, so past money had not necessarily "disappeared."                                                                        
                                                                                                                                
Representative Gara remarked that  the original $100 million                                                                    
was  not intended  to  be spent  in one  year,  but used  as                                                                    
projects  were evaluated.  He furthered  that $50  million a                                                                    
year became  $25 million  a year. He  felt that  the funding                                                                    
had disappeared,  but the projects had  not disappeared. Ms.                                                                    
Fisher-Goad stated that when the  $100 million was provided,                                                                    
AEA went  through an  application process.  Therefore, there                                                                    
was no ability  to only solicit for $50  million. The agency                                                                    
only  solicited funds  based on  the statutory  program. She                                                                    
pointed  out that  there  were over  $400  million worth  of                                                                    
requests. She  did not feel  there was  a proper way  to set                                                                    
the money aside.                                                                                                                
                                                                                                                                
Co-Chair Stoltze asked if there was opposition to the bill.                                                                     
                                                                                                                                
Co-Chair  Stoltze discussed  the  individuals available  for                                                                    
testimony. He CLOSED public testimony.                                                                                          
                                                                                                                                
Co-Chair  Thomas  MOVED  to  report  CSHB  250(ENE)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  250(ENE) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation and  with one  new fiscal  impact note                                                                    
from  the Department  of  Commerce,  Community and  Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
2:46:34 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:47:56 PM                                                                                                                    
RECONVENED