Legislature(2023 - 2024)BUTROVICH 205
02/13/2023 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB33 | |
| Presentation(s): Overview of the Department of Environmental Conservation | |
| Presentation(s): Overview of the 404 Primacy Feasibility Study | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 33 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 33-RENEWABLE ENERGY GRANT FUND
3:31:02 PM
CO-CHAIR BISHOP announced the consideration of SENATE BILL NO.
33 "An Act relating to the renewable energy grant fund and
recommendation program; and providing for an effective date."
3:31:29 PM
SENATOR JAMES KAUFMAN, District F, speaking as sponsor of SB 33,
introduced the legislation speaking to the following sponsor
statement:
SB 33 extends the sunset date of the Renewable Energy
Grant Fund and Recommendation Program to June 30,
2033.
The Renewable Energy Fund (REF) program was originally
established in 2008 with the passage of House Bill 152
and later received a ten-year extension in 2012, in
both cases receiving unanimous vote in the
legislature. The REF is managed by the Alaska Energy
Authority in coordination with a nine member Renewable
Energy Fund Advisory Committee.
Since its inception, the Renewable Energy Fund has
distributed over $300 million dollars in grant funds
for qualifying and competitively selected renewable
energy projects across the state. These REF grants
have been supplemented by both federal and local
funding to the tune of hundreds of millions of
dollars. These combined funds help to stabilize and
reduce energy costs for consumers by supporting
renewable energy projects in both rural and urban
communities across Alaska.
As technology has improved and the available renewable
energy sources have expanded, so too has the number of
proposed projects. In Round 14, 39 applications from
around the state were submitted and 27 were
recommended to receive funding. Thirty-one
applications were submitted for Round 15, which closed
in December 2022. As energy prices climb, it is
important to take advantage of all alternative sources
of energy and heat, especially in our most vulnerable
communities. The Renewable Energy Grant Fund is an
important tool which supports Alaskan communities meet
their energy needs.
SB 33 will extend the Renewable Energy Grant Fund for
a further 10 years, supporting energy independence in
more of Alaska's communities.
3:32:12 PM
SENATOR KAWASAKI joined the committee.
3:34:25 PM
SENATOR CLAMAN noted that Legislative Audit didn't review the
program this year.
CO-CHAIR BISHOP responded the audit would be presented in Senate
Finance.
3:34:57 PM
EMMA TORKELSON, Staff, Senator James Kaufman, Alaska State
Legislature, Juneau, Alaska, presented the sectional analysis
for SB 33 on behalf of the sponsor.
Sec 1. Amends Section 5, Ch. 31, SLA 2008, as
previously amended, to extend the repeal date of the
fund to June 30, 2033.
Sec 2. Makes the sunset extension retroactive to
June 30, 2023 if the bill takes effect after the Fund
sunsets on that date.
Sec 3. Establishes an immediate effective date under
AS 01.10.070(c).
CO-CHAIR BISHOP turned to invited testimony.
3:35:51 PM
CURTIS THAYER, Executive Director, Alaska Energy Authority,
Anchorage, Alaska, stated that the legislature has appropriated
more than $300 million since the inception of the Renewable
Energy Grand Fund in 2008. Ninety programs currently are in
development, 44 of which are new in the last four years.
Legislative funding for these new programs was $4.7 million and
$15 million. The previous estimate that the program has
displaced 30 million gallons of diesel is under review by an
independent economist and the new number will be shared with the
legislature when it's available. Of the $300 million in funding,
85 percent has gone to rural Alaska and 15 percent to the
Railbelt. Increasingly, the focus has shifted to wind and
secondarily to solar and hydro. He highlighted that power for
Prince of Wales is over 90 percent renewable. Importantly, the
feasibility stage determines whether a project is viable. After
that the project receives independent, state, or federal funding
that take it to the next level.
MR. THAYER reported that application round 15 attracted 33
applicants who were vying for $31 million. The next step is to
do an economic analysis and feasibility study of those projects
to narrow the field to fit with the available funds. He said
this program has been very successful and extending it another
10 years would be very beneficial. The bill that was considered
last year didn't make it through the process but it had no
opposition.
SENATOR KAWASAKI requested an explanation of the evaluation
process and stages to qualify an application that result in 85
percent of the REF funding going to rural areas and just 15
percent to the Railbelt.
3:39:33 PM
CONNER ERICKSON, Planning Manager, Renewable Energy Fund (REF)
program, Alaska Energy Authority, Anchorage, Alaska, stated that
there is a four-step evaluation process, the first of which is
an eligibility review of both the applicant and the project. The
second stage is a more thorough review of the economic,
financial, and technical feasibility of the project. The third
stage is to rank the applications based on the scoring that's
part of the state's due process, the matching funds that would
be contributed, and other criteria. The fourth stage is to
weight the projects to ensure the statutorily required balance
between each of the energy ratings. He noted that all the
projects were funded in the last two application rounds, but
that was really subject to the available funding.
3:41:25 PM
SENATOR KAWASAKI reiterated that it seemed that rural projects
score higher than those on the Railbelt. He asked if it was
because the stage three ranking gives more points to rural areas
because the cost of energy is so much higher compared to the
Railbelt, or something else.
MR. ERICKSON replied that it depends on who applies and it just
so happens that for the last two application rounds there were
many more applicants from rural areas than the Railbelt. He
acknowledged that a cost of energy score is attributed to each
application in stage three and more points are given to
applications with higher energy costs.
3:43:02 PM
CO-CHAIR GIESSEL highlighted that the bill packet provides the
statutory guidance for each stage of the process and it was
likely posted on BASIS as well.
CO-CHAIR BISHOP asked the sponsor if he had anything to add.
SENATOR KAUFMAN thanked the committee for hearing the bill and
for clarifying that the backup material included information
about the statutory process.
3:44:16 PM
CO-CHAIR BISHOP held SB 33 in committee.