Legislature(2009 - 2010)BUTROVICH 205
04/01/2009 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Governor's Appointments | |
| SB150 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 150 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SB 150-EMERGING ENERGY TECHNOLOGY FUND
CO-CHAIR WIELECHOWSKI announced SB 150 to be up for
consideration.
4:18:22 PM
CO-CHAIR MCGUIRE, sponsor of SB 150, said it basically creates a
fund for emerging energy technologies. It's not funded within
the bill, but it is merely a structure to receive funds or to be
funded should better times come. It is set up not as a dedicated
fund, but rather one that can receive funds should they be
available. It will be administered by the Alaska Center for
Energy and Power.
She said that emerging energy technology is an important part of
Alaska's future and funds like this have provided seed monies
end up being an attractive incentive for new renewable companies
to come in. They know it drives the attraction of grant dollars
and the ability to co-partner with the federal government in
matching grants.
CO-CHAIR MCGUIRE explained that in recent years the Department
of Energy has offered millions in federal grants that typically
require as low as a 20 percent cost share at the state level,
and this is the kind of fund that can offer those matching
dollars. The stimulus package has alternative energy
opportunities, and they are hoping this fund could serve as
another mechanism to leverage and partner with those funds, as
well.
One of the things missing in alternative energy development is
the research and development dollars - "the seed part of where
some of these ideas grow out of." When you look at the AEA
grants that the Senate Finance Committee put into place, they
are talking about proven technologies that are out in the field.
This fund is geared toward the research and development dollars
that really happen more at the base level.
CO-CHAIR MCGUIRE stated that at one point Alaska had an Alaska
Science and Technology Fund and there is some impetus in that
fund's existence for this bill although they are different. This
is targeted specifically at emerging energy technologies.
4:22:13 PM
The board members have to have a background in energy,
engineering, technology and science; it should be based on
science and not politics - a complaint when the Science and
Technology Fund was being considered. Some people thought the
projects that were approved out of it were political or regional
in nature and not necessarily provable. They also wanted to make
sure it was administered by an association that was separate
from the University in the event that the University or a
partner with the University chose to apply for any of these
monies. That is how she came up with Alaska Center for Energy
and Power (ACEP), but it could be administered out of a couple
of other places.
SENATOR HUGGINS moved to adopt CSSB 150(RES), version E.
TREVOR FULTON, staff to Senator McGuire, said it's really
version S.
SENATOR HUGGINS amended his motion to adopt CSSB 150(RES)
version S. There were no objections and it was so ordered.
4:25:25 PM
MR. FULTON explained the changes in the version S. He said it
incorporated Senator Wielechowski's request - a concern about
the possibility of funding projects that were a little too far
into the realm of science fiction. So, language was added that
limits project eligibility to those that might become
commercially viable within the next five years. The second
change added a five-member advisory committee - providing a
level of separation between the administering agency and the
recipients of the grants.
SENATOR FRENCH asked regarding ACEP being the administering
agency (page 1, line 12) that it is the interdisciplinary
research unit of the College of Engineering and Mines at the
University of Alaska, but the idea was to provide some
separation between the University and the administering unit to
keep from any allegations of self-dealing should the University
be eligible for one of these grants.
MR. FULTON said he is correct, and pointed out language on page
2, line 28, through page 3, line 1, which delineated the makeup
of the advisory committee that has no members from the
University - that took care of that issue.
4:27:49 PM
He said the third and final change in the CS was to expand the
definition of eligible applicants to include both private sector
and non-profit sector entities. When the bill was first drafted,
language was borrowed from the Renewable Energy Fund that
excluded some entities they wanted to include because that is
where these sorts of projects get a lot of their in-kind
partnerships. A good example would be Gwen Holdman's geothermal
energy project in Chena Hot Springs. Part of the equipment was
donated by UTC, a large corporation that developed the
technology, but they gave it to her as sort of an in-kind
partnership deal. They did not want to exclude those kinds of
deals.
SENATOR HUGGINS asked for an example of a quasi-government
entity.
MR. FULTON replied the University qualifies as a quasi-
governmental entity as well as the Alaska Railroad.
4:29:46 PM
LARRY PERSILY, staff to Representative Hawker, added that he has
been working on energy issues for the legislature, and
specifically the stimulus bill. He offered that whereas much of
the focus of the legislature in the last few weeks has been on
the energy provisions of the stimulus bill - the State Energy
Program, the Energy Efficiency and Conservation Block grants -
those are funding for off-the-shelf technology and home energy
improvements, not research and development money. However, the
stimulus bill also has funding sources that deal with R&D and
this would be one way for the state "to get into the game."
4:31:23 PM
SENATOR HUGGINS stated that the state is doing all these things
with energy, but it doesn't have an energy policy. Did he see
the need for an umbrella policy under which to operate before
they get too many things going?
MR. PERSILY said his instructions were to give information and
not opinions, but he opined that the state's energy policy is
somewhat diverse. It has the Alaska Energy Authority with its
role, the Alaska Housing Finance Corporation, which is
technically designated by the Governor as the State Energy
Office with the U.S. Department of Energy, the University has
offices - and it would behoove the state to coordinate them with
in one form or another.
4:32:57 PM
JASON MEYER, Alaska Denali Commission, said he is working to
develop a renewable and alternative energy strategy for the
Commission and supported SB 150. He said the Denali Commission
is an independent federal agency designed to provide critical
utilities infrastructure and economic support throughout Alaska.
With the creation of the Alaska Denali Commission, Congress
acknowledged the need for increased inter-agency cooperation and
focus on Alaska's rural communities. The Commission's Energy
program focuses on bulk fuel power plants and renewable
alternative energy. Recently the Commission's energy advisory
committee discussed strategy for continued investment in
alternative and renewable energy and supportive testimony was
heard on their involvement in emerging alternative energy
developments at their quarterly meeting in Juneau last week. The
Commission has historically been involved in emerging technology
pilot projects, several of which are the Eagle River
Hydrokinetic project, the Chena Hot Springs geothermal project
and the high voltage direct current (HVDC), feasibility and
prototype design. "Without the investment of such emerging
technologies, new options for energy in Alaska would be
limited," he said.
MR. MEYER said the Commission is tracking efforts related to
emerging technologies that seem consistent with their renewable
and alternative energy strategy which currently includes a $10
million budget. It is currently developing an MOU with the
University of Alaska's Center for Energy and Power and the
National Renewable Energy Lab. Their goal is to leverage
resources and expertise to support emerging technologies in
Alaska in the hopes that successful new options can be developed
and put to use.
4:35:26 PM
PAUL KENDALL, representing himself, said he is very concerned
about Mr. Haagenson at AEA. In 1981 it dropped several
magnificent programs like the hydrogen conversion at Old Harbor.
He said the real truth is "that our real partnership lies in
waterways - the Cook Inlet, the Turnagain Arm, the Knik Arm and
various other bodies close in, and it can be immediate within
three to six years." Whenever he sees new divisions, he sees
people "who know how to work the system" to capture these funds
and then they go out with their elite group of people who think
they are special. These same people have energy forums where you
have to pay a lot of money to see them, but the state's money
put them where they are. "The whole thing has just become
perverse, at best."
4:39:44 PM
KATHERINE KEITH, Alaska Center for Energy and Power (ACEP), said
she works with coordinating wind diesel systems within the Wind
Diesel Application Center, which was developed with partnerships
between National Energy grants, the Alaska Energy Authority and
ACEP. She said energy is foremost in everybody's mind, yet
Alaska that has the highest energy costs and some of the most
th
complex and difficult issues to deal with in the U.S., ranks 46
in research and development for renewable energy. We need to
invest in energy projects, policy and research.
AEA has no has mandate or capability to engage in energy
research, she stated. The question needs to be asked what kind
of research exists in the state. Wind turbine verification could
be successfully deployed in Arctic environments, energy storage
systems are needed for high penetration wind diesel systems, and
waste heat recovery needs development. Utilities in rural Alaska
are really struggling to find proven technologies that are
beneficial to their communities without a high risk factor.
Kotzebue Electric over has become a leader in energy innovation
to supplement their diesel consumption over the last couple of
years using such ideas as land fill gasification, waste heat
recovery, waste heat power generation, and energy storage,
electric vehicles, and so on. Each of these technologies is
considered pre-commercial and not, therefore, eligible for state
funding. Yet each of these technologies offers great promise to
those communities.
Another example would be the Venadium readout slow battery
(VRB), which would help stabilize St. Paul Island's high
penetration wind systems. The VRB is sitting at UAS right now,
but there is no funding to analyze the data from that equipment.
MS. KEITH said with a 20-percent match the state could receive
funding from many sources. ACEP is already involved in programs
to test new battery systems, waste heat recovery devices and
hydro-kinetic turbines, the goal being to insure manufacturer
claims are accurate and to insure that these systems will
perform in Alaska. After the Chena Hot Spring Geothermal plant
was installed a lot of attention was paid to this type of
technology. This emerging technology fund will allow projects
like this to be proven in Alaska for Alaskan communities.
She said there is a sense of urgency in considering available
federal funds. She said SB 150 should be considered a sister
program to HB 152. Efforts in emerging technology will ensure
greater success with existing and future HB 152 projects.
Lastly, she said other research programs exist in the Lower 48,
but they are not appropriate for Alaska's unique conditions.
4:44:41 PM
D. DOUGLAS JOHNSON, Director, Alaska Projects, Ocean Renewable
Power, said they are currently working on two projects in
Alaska, one an ocean energy project and the other a river energy
project. He said his company wouldn't be where it is today had
it not received funds from similar agencies in the states of
Maine and Massachusetts. This fund is something Alaska needs
now. Alaska is one of the few places in the world that has a
full suite of renewables available. To be able to fully utilize
that suite of renewables, the technologies to do have to better
understood. This is an opportunity for Alaska to be a leader in
this area. The one-to-four ratio for every dollar the state puts
in makes the federal stimulus funding is a good deal for Alaska.
4:47:31 PM
KATE TROLL, Executive Director, Alaska Conservation Alliance
(ACA), supported SB 150 for many of the reason already stated.
She said that the clean energy business is looked at as a $55
billion/year industry - one of the few bright spots in today's
slumping economy. This figure is projected to quadruple by 2015.
She added that setting up this fund positions Alaska to leverage
a lot of not just federal funds, but a lot of private investment
in energy.
CO-CHAIR WIELECHOWSKI closed public testimony and held SB 150 in
committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Dirk Nickisch - Confirmation.pdf |
SRES 4/1/2009 3:30:00 PM |
|
| Betty Jo Schmitz - Confirmation.pdf |
SRES 4/1/2009 3:30:00 PM |
|
| SB 150 - Bill Packet.pdf |
SRES 4/1/2009 3:30:00 PM |
SB 150 |
| Paul E. Johnson - Confirmation.pdf |
SRES 4/1/2009 3:30:00 PM |
|
| John K. Norman - Confirmation.pdf |
SRES 4/1/2009 3:30:00 PM |
|
| Peter B. Froehlich - Confirmation.pdf |
SRES 4/1/2009 3:30:00 PM |