Legislature(2015 - 2016)BUTROVICH 205
03/18/2015 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HJR6 | |
| SB57 | |
| Confirmation Hearing: Department of Natural Resources | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | HJR 6 | ||
| + | SB 57 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SB 57-CLEAN AIR ACT PLAN
3:55:35 PM
CHAIR GIESSEL announced SB 57 to be up for consideration and
invited her staff to explain the bill. [CSSB 57(NRG), 29-
LS0523\G was before the committee.]
3:55:54 PM
VIVIAN STIVER, staff to Senator Giessel, sponsor of SB 57,
Alaska State Legislature, Juneau, Alaska, explained that the
Environmental Protection Agency (EPA) released a proposed rule
regulating emissions for power generators; it has two elements:
statewide emissions reduction targets and guidelines for
development and implementation plans for those reductions.
She explained that the EPA has set Alaska's CO emission
2
reduction target at 26 percent by 2030. SB 57 requires the
Department of Environmental Conservation (DEC) to seek a waiver
or a similar exemption from the proposed rule known as the
Existing Source Performance Standards Under Section 111(d) of
the Clean Air Act (CAA). SB 57 provides guidance to DEC
regarding the development of a state implementation plan should
this rule become effective. The plan will not result in
increased retail or service rates in any way that are
disproportionate to households of low or moderate income, less
reliable electrical service, resource inadequacy or transmission
constraints, impairment of investment in existing electrical
generating capacity, impairment of the competitive position of
manufacturers or other public or private sectors of the state's
economy, a decrease in employment in the state or a decrease in
state revenues.
The bill also requires the DEC to prepare a report to the
legislature that analyzes the effects on the power generating
sector of the affordability of electricity from diverse sources
of generation, the type and amount of electricity generating
capacity in the state that is likely to be eliminated or
switched to another fuel, investment in electricity generating
capacity and other infrastructure, the amount of investment
necessary to offset retirements of electric generating capacity
and maintain generation reserve margins, potential risk to
electric reliability and resource adequacy risk and transmission
constraints, and the amount by which retail electricity prices
in the state are forecasted to increase under the plan.
MS. STIVER said the bill also provides, should that plan be put
in place, consideration of the disproportionate amount of the
increase in the cost of electricity and the effects of the
employment and other economic factors on consumers.
SENATOR COSTELLO asked if any other states that are concerned
about the ability to comply with the reduction targets are
asking for a waiver prior to the rule being adopted.
MS. STIVER answered that 15 other states had passed resolutions
in regard to the EPA's proposed rule.
SENATOR COSTELLO asked what the difference is between a waiver
and an exemption.
MS. STIVER replied the waiver may be on portions of the rule
that don't apply in the state and an exemption would take the
state completely out of the rule.
SENATOR STOLTZE said the bill has a $100,000 fiscal note and
asked if there is existing money.
SENATOR STEDMAN said this is a big issue that is being forced on
states nationwide and more information is needed about strategy
to counteract it.
4:05:01 PM
CHAIR GIESSEL said committee backup had numerous articles and
letters from Senate leadership, the Miners Association, and
various state organizations who are all aware of this that will
point out how this has been getting addressed.
SENATOR STEDMAN said he is aware, but the public, the end
consumer, needs to become aware, because they are the ones who
will have to pay for it.
4:07:02 PM
SENATOR WIELECHOWSKI said if the idea is to get an Alaska
specific plan, which he applauds, this bill seems to undercut it
because the majority of the language is taken verbatim from
model legislation financed by the Koch brothers.
MS. STIVER answered that she looked at numerous prepared
documents specifically containing electrical generation business
language. This is a great tool that outlines why the state is
not capable of meeting this rule and she hopes DEC will use it
in negotiations with the federal government.
4:08:20 PM
NORMAN ROKEBERG, Commissioner, Regulatory Commission of Alaska
(RCA), Anchorage, Alaska, said he was available to answer
questions on SB 57. He commented that initially the comments
provided by the SOA were the result of a multi-agency task force
put together by the governor last year in response to the
promulgation of the EPA rule. The Alaska Energy Association
(AEA), the Port Authority, the RCA, DEC and the governor's
office worked together with two dozen people and devoted several
months meeting to file comments with the EPA by December 1,
2014.
Those comments indicated that the rule mandated a 26 percent
reduction in greenhouse gases by 2030. Analysis done by the task
force indicated that Alaska would not be able to achieve that
particular goal. The governor chose to move forward by enjoining
the Murray Coal Case that questioned the legality and
constitutionality of the rule and says that Alaska should be
exempt.
To his knowledge, Alaska is the only state requesting an
exemption, Mr. Rokeberg said. Some 15 states do not want to
participate in filing a State Implementation Plan (STIP). Alaska
makes an extraordinarily good case for an exemption, because it
is not connected with a North American grid whereas almost all
other portions of the Lower 48 are. Electric utilities can buy
bulk electrical services through bidding processes throughout
the country and are able to obtain power with renewable
resources and have engaged in major energy efficiency programs.
MR. ROKERBERG said it was essential to work with the
congressional delegation in doing everything possible to
convince the EPA to exempt Alaska. Part of the problem with the
plan is the only areas affected under the proposed rule are the
five generating units in the Railbelt area; the rest of the
state is not included. Therefore, references in the bill talking
about electrical consumers and economic development in the state
are a little bit off mark.
He said the SOA had invested billions of dollars in energy
generation, efficiencies and renewable in the last decade, and
the problem is that EPA gives Alaska no credit for the money it
has spent before, because its energy investments have been in
thermal and folks being able to keep their homes warm.
4:14:43 PM
Because the focus is on the Railbelt, the very large amounts of
money invested in renewables, particularly wind and hydro,
Alaska does not receive any credit in terms of computing its
greenhouse gas amount. In their comments they requested that the
EPA give Alaska credit for the amount of investment and the
renewables it has undertaken statewide so far.
CHAIR GIESSEL asked if he would be available on Friday and he
said he would be. She then said she would hold SB 57.