Legislature(2023 - 2024)BARNES 124
04/25/2024 10:15 AM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| SB152 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 349 | TELECONFERENCED | |
| += | HB 328 | TELECONFERENCED | |
| += | SB 152 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 152-COMMUNITY ENERGY FACILITIES; NET METERING
10:16:52 AM
CHAIR RAUSCHER announced that the only order of business would
be CS FOR SENATE BILL NO. 152(L&C), "An Act relating to
community energy facilities."
10:17:29 AM
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, prime
sponsor, presented CSSB 152(L&C). He spoke to the sponsor
statement [included in the committee packet], which read as
follows [original punctuation provided]:
This bill will increase options for renewable energy
development, allow Alaskan ratepayers to lower their
electric costs, and offset natural gas usage by
establishing a virtual net metering program for small
scale renewable energy generation.
Currently, ratepayers for economically regulated
utilities can utilize net metering, which lowers their
electric bills based on the amount of electricity they
generate from generators like solar panels or wind
turbines. Unfortunately, many ratepayers including
renters and condo owners are not able to take
advantage of net metering because they do not have
space available on-site.
SB 152 will allow multiple ratepayers to pool their
resources to receive net metering benefits from a
single project. SB 152 will allow power generated from
a single centralized and efficient renewable energy
source to be purchased through a subscription for
multiple utility customers. This subscription allows
homeowners and tenants who might not have access to
consistent solar or renewable energy sources to reap
the benefits of cost savings, reliability, and other
benefits to the community.
Twenty states have established formal community energy
programs, with several more that operate at the
utility regulation level. This new effort could
generate 7.3 GW [gigawatt] of new solar capacity
nationwide by 2030. Utility customers who subscribe to
community energy projects save between 5 and 15
[percent] on their utility bill through monthly
credits.
Creating a community energy program in Alaska will
allow the state to capture millions of dollars in
investment for new renewable energy projects. It will
lead to hundreds of new jobs in the energy industry.
The announcement of $7 Billion in federal funding for
residential and community solar projects will help pay
for community energy projects. Several private
investors in community solar projects have already
reached out to express interest. Through this bill, an
8 percent increase in renewable energy on the Railbelt
could help offset natural gas usage and address the
supply issues for Cook Inlet natural gas.
This bill will only apply to utilities that are
economically regulated by the Regulatory Commission of
Alaska, who will be responsible for reviewing and
approving utilities' community energy programs. The
RCA will have the authority to modify or waive the
requirements of this bill to meet the needs of
specific utilities.
SB 152 will help utility customers save money, attract
millions in investment, and help offset natural gas
use in Cook Inlet while creating good jobs for
Alaskans.
SENATOR WIELECHOWSKI stated that the bill would enable community
energy projects and virtual net metering. Regulations for the
current net metering program, he explained, were established by
the Regulatory Commission of Alaska (RCA). The regulations
require that an on-site wind or solar generator be tied to a
single electric meter and that credit for any excess energy is
applied to that meter. Current Alaska law disallows any excess
energy that is generated from being tied into a neighbor's
house. As well, a [building complex] with multiple individual
living units is disallowed from putting solar arrays on the
building's roof because the regulatory structure disallows that
array from being tied into multiple meters. He further pointed
out that independent power producers (IPPs) would like the
opportunity to do this through small scale energy projects.
Senator Wielechowski emphasized that extensive work has been
done with a wide array of utilities and other stakeholders to
get consensus and support for the bill, one example being that
the bill has been opened from just solar to include wind and
small-scale hydropower.
10:21:22 AM
REPRESENTATIVE SCHRAGE inquired about the changes made to the
original version of the bill.
SENATOR WIELECHOWSKI replied that SB 152 was introduced last
year, and significant changes have been made in the interest of
compromise and finding consensus with the utilities. He turned
to his staff to present the changes made in CSSB 152(L&C).
10:22:04 AM
DAVID DUNSMORE, Staff, Senator Bill Wielechowski, Alaska State
Legislature, on behalf of Senator Wielechowski, prime sponsor,
presented a summary of the changes in CSSB 152(L&C) [included in
the committee packet and titled "Senate Bill 152, Community
Energy Facilities, Summary of Changes Version B to CSSB 152(L&C)
Version R]. He paraphrased from the summary, which read as
follows [original punctuation provided]:
The bill was shortened and streamlined in consultation
with utilities and other stakeholders.
A new Section 1 was added giving the bill the short
title "the Saving Alaskans Money with Voluntary
Community Energy (SAVE) Act."
Throughout the bill, provisions that restated net
metering provisions that currently exist in Regulatory
Commission of Alaska (RCA) regulations were removed.
In new AS 42.05.725 the language related to exemptions
was replaced with a provision that this bill does not
apply to utilities that are exempt from net metering
requirements adopted by the RCA.
In new AS 42.05.727 the term "community energy plan"
is replaced with "community energy tariff." The limit
of 50 megawatts of power from community energy
facilities was removed from this section, and instead
this limit would be set by the utilities and the RCA
through community energy tariffs and regulations.
New Section 42.05.729 was shortened to simply state
that the RCA will adopt rates for community energy
facilities that reflect the full economic value
provided and do not have a negative effect on other
ratepayers. Language was added that the RCA may adopt
different rates for facilities that provide battery
storage.
New AS 42.05.731 was renamed from "Authority of the
commission" to "Authority and duties of the
commission." Provisions were added to this section to
clarify the RCA's role in ensuring the implementation
of community energy programs. The language related to
prevailing wages for construction of community energy
facilities that was previously in new AS. 42.05.733
was moved to this section.
New AS 42.05.733 was removed from the bill.
In new AS 42.05.735, terms that are no longer used in
the bill were removed and the definition of
"subscriber" was updated to limit it to residential
ratepayers and commercial ratepayers with monthly
demand of less than 50 kilowatt-hours.
CHAIR RAUSCHER cited a grant of $62 million and asked whether
that grant is part of the $127 million federal grant secured by
Alaska's federal delegation or is in addition to the $127
million or is not connected to the $127 million.
MR. DUNSMORE replied that he will get back to the committee with
an answer.
10:25:56 AM
REPRESENTATIVE PRAX asked whether the bill contemplates that
people in residential areas could be utilizing differing types
of electrical wire between houses.
MR. DUNSMORE responded that the interconnection standards would
be set by the RCA and the utilities through the regulatory
process. Under current net metering, he explained, a solar
panel on someone's house is tied directly into a meter for the
house. Under community energy and virtual net metering, he
continued, a four plex could be hooked directly to the grid
where it would be metered and the usage apportioned to the four
units. He cited other examples of how apportionment would work.
10:27:40 AM
REPRESENTATIVE PRAX requested clarification regarding [removal
of the limit of 50 megawatts of power from community energy
facilities].
MR. DUNSMORE answered that Golden Valley Electric Association
(GVEA) [suggested removing the limit]. Practical limits will be
set by the RCA and the utilities for the total capacity, he
explained, and this will avoid a situation where a single
industrial customer could take the entire load that would be
available for community energy, thereby crowding out smaller
scale customers from participating.
CHAIR RAUSCHER posed a scenario of a community solar project
with multiple units receiving the benefits. He asked how that
would be divvied up between the customers.
MR. DUNSMORE replied that the project-specific details would be
worked out by each utility company through the utility's
community energy tariff. The construction and other costs of
the project, he explained, would be borne by the project, not by
the utility or other ratepayers. Something like a duplex would
be simple, so would probably be worked out by themselves.
However, a larger scale project is often done through the sale
of subscriptions which gets the capital to install the project.
The utility is responsible for making sure that the project's
interconnections are in accordance with the community energy
tariff and meet the safety standards, and the utility would
proportionally credit the power generated. For example, someone
with a subscription for one one-hundredth of the project would
be credited by the utility for one percent of the power
generated from that project.
10:31:08 AM
CHAIR RAUSCHER posed a scenario of five apartment units. He
asked whether each unit would still have its own meter and then
the credit would be applied proportionately among the units.
MR. DUNSMORE confirmed each unit would have its own electrical
metering and would be credited against its electrical usage for
its proportional share of the community energy generated.
10:31:55 AM
CHAIR RAUSCHER opened public testimony on CSSB 152(L&C).
10:32:43 AM
MIKE JONES, representing self, testified that while HB 328 and
CSSB 152(L&C) have substantially different language, the
presentations for the bills were identical. He pointed out that
neither bill considers the northern latitudes of Alaska and
renewable energy would perform poorly this far north. He
maintained that CSSB 152 (L&C) is a wind and solar power bill
with the other renewables just being window dressing. He argued
that the lower energy bills are due to subsidy provided by net
energy metering. He urged members to look at the actual cash
flows of wind and solar companies to see what money comes out of
whose pockets. He stated that wind and solar are inherently
unreliable and without battery systems they aren't suitable. He
urged the committee to work on solutions that eliminate these
flaws and to use market principles rather than a net metering
subsidy.
10:35:05 AM
CHAIR RAUSCHER, after ascertaining there was no one else who
wished to testify, closed public testimony on CSSB 152(L&C).
[CSSB 152(L&C) was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 152 Sponsor Statement .pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Sectional Analysis Version U.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Version U.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Summary of Changes B to U.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Research US DOE Community Solar Basics.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Research North Carolina Solar Center Aggregate Net Metering.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Support AKPIRG.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Support Tebughna Foundation.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Summary of Changes B to R.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Sectional Analysis Version R.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| SB 152 Chugach Electric Letter of Support.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |
| APA Comment on SB 152.pdf |
HENE 4/25/2024 10:15:00 AM |
SB 152 |