Legislature(2023 - 2024)BELTZ 105 (TSBldg)
01/29/2024 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB182 | |
| SB152 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 182 | TELECONFERENCED | |
| *+ | SB 152 | TELECONFERENCED | |
SB 152-COMMUNITY ENERGY FACILITIES; NET METERING
1:46:41 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 152 "An Act relating to
community energy facilities."
1:47:03 PM
DAVID DUNSMORE, Staff, Senator Bill Wielechowski, Alaska State
Legislature, Juneau, Alaska, gave a presentation on SB 152.
1:47:20 PM
MR. DUNSMORE reviewed slide 2:
[Original punctuation provided.]
In 2009 the Legislature Adopted a State Energy Policy
Setting the Goal that:
[T]he state remain a leader in petroleum and
natural gas production and become a leader in
renewable and alternative energy development.
SB 152 helps Alaska meet this goal.
1:47:32 PM
MR. DUNSMORE reviewed slide 3:
[Original punctuation provided.]
What is Community Energy?
• Also known as virtual net metering.
• Allows individual Alaskans to subscribe to
renewable energy projects
• Helps achieve goals of affordability and
reliability.
He explained that SB 152 creates a community energy program for
economically regulated utilities. Individual ratepayers can
subscribe to renewable energy projects and receive a share of
the benefits as a credit on their bill.
1:48:00 PM
MR. DUNSMORE reviewed slide 4:
[Original punctuation provided.]
Community Energy is Popular Across the Nation
• 23 other states and dozens of utilities have
community energy programs.
• 7.3 GW of new solar capacity expected by 2030.
• Community energy is the fastest growing sector in
renewable energy.
1:48:30 PM
MR. DUNSMORE explained that SB 152 helps to close gaps in
Alaska's current net-metering program. He then reviewed slide 5:
[Original punctuation provided.]
Current Net-Metering Program
• In current regulations adopted by the Regulatory
Commission of Alaska.
• Wind or solar installation tied to specific
property and meter.
• The excess energy produced is sent back to the
grid.
• The utility credits the ratepayer for the excess
energy generated applied to future bills.
Ratepayers must still pay base rate charges.
1:49:00 PM
MR. DUNSMORE reviewed slide 6:
[Original punctuation provided.]
SB 152 Targets Those Without Net Metering Access
• Renters, condo associations, and homeowners
without access to good sun or wind would now be
able to benefit.
• Customers can stay subscribed to the program if
they move within the same utility service area.
• Both residential and commercial ratepayers can
subscriber to community energy projects.
1:49:40 PM
MR. DUNSMORE reviewed slide 7:
[Original punctuation provided.]
SB 152 Expands Options for Net Metering
• Allows ratepayers to pool resources on a single
project and split the net metering benefits
• Makes net metering available for apartment and
condo buildings so each ratepayer won't need
their own generator
• Ratepayers can crowdsource small-scale renewable
energy projects by subscribing to community
energy projects
• Utilities can operate their own projects that
ratepayers can choose to subscribe to
1:50:17 PM
MR. DUNSMORE reviewed slide 8:
[Original punctuation provided.]
Regulatory Commission of Alaska Oversight
• SB 152 applies only to utilities that are
economically regulated by the RCA.
• Utilities will be required to submit community
energy plans to the RCA for review and approval.
• The RCA may modify or waive any requirements of
SB 152 to meet the needs of specific utilities.
1:50:47 PM
MR. DUNSMORE reviewed slide 9:
[Original punctuation provided.]
How Community Energy Works
• Third Party submits application to a utility, or
the utility initiates their project.
• Utility accepts project if parameters met.
• Utility forwards project to Regulatory Commission
of Alaska (RCA).
• Project is approved by RCA.
• When subscribers are signed up, the project is
developed.
• When project is finished and comes online,
credits to subscribers begin.
• Credits are visible on same monthly utility bill.
MR. DUNSMORE stated that examples of a third party include condo
associations and private businesses.
1:51:26 PM
MR. DUNSMORE reviewed slide 10:
[Original punctuation provided.]
Benefits
• Lower energy bills for Alaskans
• More Federal and private investment
• Creates renewable energy jobs
• Offsets natural gas usage in Cook Inlet
• Improves grid resiliency
• Condo associations and apartments can participate
1:51:57 PM
MR. DUNSMORE reviewed slide 11:
[Original punctuation provided.]
Lowers Energy Bills
• Subscribers save 10-20 percent on their energy
bills after payback period.
• Payback period averages 3-5 years.
• Specific savings are project dependent.
1:52:17 PM
MR. DUNSMORE reviewed slide 12:
[Original punctuation provided.]
More Jobs and Investment
• $7 Billion dollars in federal money is available
for community energy projects nationwide.
• Alaska ranks last in the nation in solar jobs,
taking advantage of our potential would create
100s of jobs.
• There are now more jobs worldwide in renewable
energy than fossil fuels according to BP annual
report.
• Community Solar is currently the fastest growing
sector in renewable energy.
1:52:52 PM
MR. DUNSMORE reviewed slide 13:
[Original punctuation provided.]
Offsets Natural Gas
• Railbelt utilities are facing a natural gas
shortage.
• Costly proposals to import natural gas to Alaska
are now on the table.
• An 8 percent increase in renewable energy on the
Railbelt could be enough to address Cook Inlet
Supply issues before 2030.
1:53:23 PM
MR. DUNSMORE reviewed slide 14:
[Original punctuation provided.]
Community Energy Improves Grid Resiliency
• Reliability in grid is top goal for utilities and
customers.
• Several instances of fires, snowstorms and
windstorms have left sections of the Railbelt
without power for extended periods of time.
• Smaller renewable energy projects with battery
systems up and down the Railbelt will improve
reliability in communities.
MR. DUNSMORE stated that community energy can improve grid
resiliency by decentralizing energy generation.
1:54:00 PM
SENATOR DUNBAR pointed out that SB 152 only applies to regulated
facilities. He asked if smaller, private grids exist in Alaska
and, if so, are they intentionally exempt from these
regulations.
1:54:21 PM
MR. DUNSMORE replied that, in general, smaller scale utilities
are not directly economically regulated by the Regulatory
Commission of Alaska (RCA). He offered his understanding that
this is to allow smaller utilities more flexibility and freedom
to operate. He added that smaller utilities are already able to
operate their own community energy programs and therefore do not
need to be included in SB 152.
1:55:00 PM
At ease
1:55:44 PM
CHAIR BJORKMAN reconvened the meeting and solicited questions
from the committee. Finding none, he opened public testimony on
SB 152.
1:56:29 PM
At ease
1:56:51 PM
CHAIR BJORKMAN reconvened the meeting.
1:57:27 PM
MARIE FRANCIS, representing self, Anchorage, Alaska, testified
in support of SB 152. She stated that she lives on the rail belt
and expressed alarm at the natural gas shortages the state will
soon face. She explained that, although she has a vested
interest in the transition to renewable energy, she rents her
home and is therefore unable to install a solar panel.
1:58:55 PM
ALEX PETKANAS, Clean Energy and Climate Program Manager, The
Alaska Center, Anchorage, Alaska, testified in support of SB
152. He highlighted several economic implications, including a
10 percent savings on energy bills, diversification of the
State's energy supply, and job opportunities within the state.
2:00:58 PM
SARA THOMAS, representing self, Anchorage, Alaska, testified in
support of SB 152. She emphasized the importance of diversifying
energy sources and making solar energy cheaper and more
accessible.
2:02:02 PM
PHIL WRIGHT, Alaska Public Interest Research Group (AKPIRG),
Fairbanks, Alaska, testified in support of SB 152. He stated
that he is an expert in energy policy focusing on consumer
choice, competition, and reducing system costs. He said that SB
152 makes the cheapest, cleanest energy available to nearly all
Alaskans. He emphasized the cost reduction potential of
renewable energy sources. He added that more investments are
flowing into renewable energy production than into oil and gas
production. He stated that cost reduction is particularly
important because of the upcoming natural gas shortage.
Additionally, he noted that SB 152 would allow for more diverse
energy sources.
2:03:36 PM
MR. WRIGHT gave a brief history of community solar programs. He
pointed out the potential savings for consumers and stated that
in some cases the savings can be seen right away. He said that
SB 152 would make the benefits of renewable energy accessible to
more Alaskans and would provide more options for cost-saving
energy sources while unlocking opportunities for private sector
investments.
2:06:29 PM
CHAIR BJORKMAN asked who would bear the cost of constructing
solar panels and connecting them to the power grid, as well as
costs resulting from adjustments that utilities would need to
make in order to accommodate solar panels.
2:07:10 PM
MR. DUNSMORE replied that many of these details would be
addressed in plans created by the utilities and reviewed by the
RCA. He noted that SB 152 will not expand the current cross-
subsidization policy.
2:08:19 PM
CHAIR BJORKMAN asked how this community energy program improves
on the current net metering program.
2:08:31 PM
MR. DUNSMORE answered that the biggest improvement is increased
accessibility. He reiterated that, currently, these renewable
energy sources are only available to those who meet specific
property requirements. To illustrate this, he shared a story
about a senior housing collective that had considered net
metering and discovered that it was not feasible. SB 152 would
expand net metering benefits to more ratepayers by allowing
pooling and crowd-sourcing projects.
2:09:45 PM
SENATOR DUNBAR commented that many legislators have engaged in
conversations with the four major railbelt utilities regarding
these issues and noted that none of these utilities were
represented at the hearing. He asked if they have had
discussions with the four major railbelt utilities and, if so,
have they expressed strong opposition to SB 152.
2:10:27 PM
MR. DUNSMORE replied that they have had conversations with
individual utilities, the Alaska Power Association, and other
stakeholders. They have expressed concern with some of the
language in SB 152 which will be addressed during the committee
process.
2:11:11 PM
CHAIR BJORKMAN explained why the utility representatives were
not present. He said that utility representatives would be in
town during the week and suggested that this would be a good
opportunity to work with them on SB 152.
[SB 152 was held in committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB152 ver B.pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |
| SB152 Sponsor Statement ver B .pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |
| SB152 Sectional Analysis ver B.pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |
| SB152 Fiscal Note-DCCED-RCA-01.26.24.pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |
| SB152 Supporting Document-AKPIRG.pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |
| SB152 Supporting Document-Research North Carolina Solar Center Aggregate Net Metering.pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |
| SB152 Supporting Document-Research US DOE Community Solar Basics.pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |
| SB152 Supporting Document-Tebughna Foundation.pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |
| SB182 Follow-Up from DCCED-CBPL 1.29.24.pdf |
SFIN 4/9/2024 9:00:00 AM SL&C 1/29/2024 1:30:00 PM |
SB 182 |
| SB182 ver A.pdf |
SL&C 1/22/2024 1:30:00 PM SL&C 1/29/2024 1:30:00 PM |
SB 182 |
| SB182 Sponsor Statement Ver A 1.17.2023.pdf |
SFIN 4/9/2024 9:00:00 AM SL&C 1/22/2024 1:30:00 PM SL&C 1/29/2024 1:30:00 PM |
SB 182 |
| SB182 Fiscal Note-DCCED-CBPL-01.18.24.pdf |
SL&C 1/22/2024 1:30:00 PM SL&C 1/29/2024 1:30:00 PM |
SB 182 |
| SB182 Supporting Documents-BGCSB Audit.pdf |
SFIN 4/9/2024 9:00:00 AM SL&C 1/22/2024 1:30:00 PM SL&C 1/29/2024 1:30:00 PM |
SB 182 |
| SB182 Public Testimony-Letter-SCI AK-01.29.24.pdf |
SFIN 4/9/2024 9:00:00 AM SL&C 1/29/2024 1:30:00 PM |
SB 182 |
| SB182 Public Testimony-Email-Michael Tinker-01.27.24.pdf |
SFIN 4/9/2024 9:00:00 AM SL&C 1/29/2024 1:30:00 PM |
SB 182 |
| SB152 Supporting Documents-Sponsor's PowerPoint 1.29.24.pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |
| SB152 Public Testimony-Received as of 01.29.24.pdf |
SL&C 1/29/2024 1:30:00 PM |
SB 152 |