Legislature(2021 - 2022)BELTZ 105 (TSBldg)
02/23/2022 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB179 | |
| SB132 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 179 | TELECONFERENCED | |
| + | SB 132 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 179-UTILITIES: RENEWABLE PORTFOLIO STANDARD
1:31:11 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
179 "An Act relating to the establishment of a renewable
portfolio standard for regulated electric utilities; and
providing for an effective date."
She noted that this was the first hearing and the intention was
to hear the introduction from Curtis Thayer followed by invited
and public testimony.
1:32:04 PM
CURTIS THAYER, Executive Director, Alaska Energy Authority
(AEA), Anchorage, Alaska, introduced himself and TW Patch, the
director of planning for AEA.
1:32:27 PM
MR. THAYER began the presentation with an explanation of AEA's
programs and services. He summarized the following from slide 2:
[Original punctuation provided.]
Railbelt Energy AEA owns the Bradley Lake
Hydroelectric Project, the Alaska Intertie, and the
Sterling to Quartz Creek Transmission Line all of
which benefit Railbelt consumers by reducing the cost
of power.
Power Cost Equalization (PCE) PCE reduces the cost
of electricity in rural Alaska for residential
customers and community facilities, which helps ensure
the sustainability of centralized power.
Rural Energy AEA constructs bulk fuel tank farms,
diesel powerhouses, and electrical distribution grids
in rural villages. AEA supports the operation of these
facilities through circuit rider and emergency
response programs.
Alternative Energy and Energy Efficiency AEA
provides funding, technical assistance, and analysis
on alternative energy technologies to benefit
Alaskans. These include biomass, hydro, solar, wind,
and others.
Grants and Loans AEA provides loans to local
utilities, local governments, and independent power
producers for the construction or upgrade of power
generation and other energy facilities.
Energy Planning In collaboration with local and
regional partners, AEA provides economic and
engineering analysis to plan the development of cost-
effective energy infrastructure.
1:33:33 PM
MR. THAYER turned to slide 3, What is a Renewable Portfolio
Standard? He explained that retail electric suppliers are
required to supply a minimum amount of their retail load with
eligible sources of renewable energy. Typically, it is backed
with a financial or other form of incentive. Often it is
accompanied by a tradable renewable energy certificate (REC) to
facilitate compliance. Importantly, [renewable portfolio
standards (RPS) standards are unique to each of the 32 states
that have them. They are never designed the same. He offered his
expectation that Alaska's would be different going forward.
MR. THAYER paraphrased slide 4 that read as follows:
[Original punctuation provided.]
Senate Bill 179
• Senate Bill (SB) 179 promotes energy independence,
long-term cost reductions, and competitive markets
in Alaska's Railbelt.
• SB 179 aligns Alaska with 30 states and two
territories in creating a renewable portfolio
standard on the Railbelt.
• A key element of the Governor's RPS is a firm
commitment to transition to 30% renewable power by
2030 and 80% by 2040.
• Expanding our renewable energy portfolio is the best
way to diversify our supply thus increasing Alaska's
energy security.
1:35:00 PM
MR. THAYER stated that in 2010 the legislature passed An Act
Declaring a State Energy Policy. He read the legislative intent
in that bill:
LEGISLATIVE INTENT. It is the intent of the
legislature that
(1) the state achieve a 15 percent increase in energy
efficiency on a per capita basis between 2010 and
2020;
(2) the state receive 50 percent of its electric
generation from renewable and alternative energy
sources by 2025;
(3) the state work to ensure a reliable in-state gas
supply for residents of the state;
(4) the power project fund (AS 42.45.010) serve as the
main source of state assistance for energy
projects;
(5) the state remain a leader in petroleum and natural
gas production and become a leader in renewable
and alternative energy development.
MR. THAYER displayed slide 6 that illustrates that from January
2012 to September 2020, the RPS policies in the participating
states have shifted more toward standards and less toward goals.
He noted that Alaska has been in the goal stage and SB 179 will
take it to standards.
MR. THAYER reviewed the energy production profile by source for
the U.S. and Alaska if Susitna-Watana were to be built. Today,
70 percent of the energy produced in the U.S. is still coming
from oil and gas; 9 percent comes from renewable energy,
primarily biomass, solar, and wind; 2 percent comes from
hydroelectric; 11 percent from coal; and 8 percent from nuclear
power. In Alaska today, 65 percent of the energy produced is
from oil and gas; 27 percent comes from hydroelectric; 2 percent
from renewable energy; and 6 percent comes from coal. At 29
percent, Alaska's portfolio of renewables falls short of the
goal to have 50 percent of energy production come from
renewables including hydro, but it is moving in the right
direction. He noted that if Susitna-Watana, or some other
renewable were to be a reality, hydroelectric would account for
58 percent of Alaska's energy production.
1:37:06 PM
SENATOR MICCICHE joined the committee.
1:38:17 PM
MR. THAYER continued to slide 9 to discuss the 30-year-old
Bradley Lake Hydroelectric Project that is located about 25
miles from Homer on the Kenai Peninsula. It provides low-cost
energy to the Railbelt members from Homer Electric to Golden
Valley in Fairbanks. For example, 18 percent of the power from
Bradley Lake is sent to Fairbanks consumers. The cost of this
power is roughly 4 cents/kWh, whereas the cost of natural gas is
7-8 cents per kWh, and power from the wind farm at Fire Island
currently costs 9.7 cents per kWh. Bradley Lake provides about
10 percent of the Railbelt energy needs, which is equivalent to
54,400 homes/year. Last year the $47 million Battle Creek
diversion into Bradley Lake was completed and it provides
electricity for the equivalent of 5,000 homes. That project was
done through a partnership between the Railbelt utilities and
AEA. He highlighted that the bonds on Bradley Lake were paid off
this year.
MR. THAYER continued to slide 10 to discuss the Dixon Diversion
Project, which would expand the capacity of Bradley Lake. It is
located five miles from Bradley Lake. Two alternatives are under
consideration: Alternative 1 is a tunnel to Bradley Lake and
Alternative 2 is a tunnel to the Martin River Powerhouse. The
cost estimate ranges from $160 million to $500 million. It could
provide electric energy for 17,000 to 40,000 homes, which would
nearly double the output of Bradley Lake.
1:40:39 PM
CHAIR COSTELLO noted that Senator Stevens had a question.
SENATOR STEVENS asked if a lot of power is lost from Bradley
Lake to Fairbanks because the lines need to be improved. Noting
that Susitna-Watana has always run into problems, he asked what
the last illustration on slide 8 would look like if the Dixon
Diversion Project replaced Susitna-Watana.
MR. THAYER replied it would have minimal effect. Bradley Lake
currently provides 10 percent of the Railbelt energy and
maximizing the Dixon Diversion Project would probably add 6-7
percent. He noted that subsequent slides address the needed
upgrades to the transmission line, but in general, the lines
leaving Bradley Lake are at capacity. The Railbelt utilities are
working with AEA to make those upgrades. Subsequent slides talk
about how this will happen and how it will be financed.
1:42:33 PM
MR. THAYER displayed slide 11 that outlines the steps for the
Dixon Diversion Project for FY2022 through FY2024. It read as
follows:
Fiscal Year 2022
• Establish river gauge
• Initiate Bradley Lake FERC License Amendment
• Alternatives Analysis Report (Conceptual Design)
Fiscal Year 2023
• Detailed mapping/topography
• License Amendment Consultations
• Environmental Studies
• Hydrology Studies
• Initial Geotechnical Investigations
• Preliminary Design
Fiscal Year 2024
• Feasibility Design and Hydrology
• Environmental Studies
• Draft License Amendment
• Detailed Geotechnical Investigations
• Operations/Power Modeling
• Environmental Assessment
MR. THAYER said the next two slides were lifted from the
National Energy Lab report. The first shows where power for the
Railbelt would come from in a peak demand scenario on the
coldest day of the year. Hydro would be the largest piece. Slide
13 looks at the same scenario without Susitna-Watana. A lot more
of the power comes from wind and solar. He noted that the wind
component is untested in many places in Alaska and both wind and
solar need batteries to store the power and put it onto the grid
as needed. These batteries would likely be located in Homer,
Anchorage, and Fairbanks. He said AEA looks forward to the ever
changing technologies for these resources.
1:44:56 PM
MR. THAYER turned to slide 14, Railbelt Infrastructure Upgrades
to respond further to Senator Steven's question about the
condition of the power line from Bradley Lake to Fairbanks. He
listed the Railbelt utilities, which are Chugach Electric
Association, Matanuska Electric Association, Seward Electric
Association, Homer Electric Association, and Golden Valley
Electric Association. Together, they represent 550,000 Alaskan
consumers. The plans to upgrade the infrastructure involve
projects to remove transmission constraints, improve grid
resiliency, and allow for better use of the Bradley Project's
potential by increasing its ability to deliver more low-cost,
renewable energy throughout the Railbelt grid. The lines, which
are more than 30 years old and pre Bradley Lake, do not have the
capacity to move additional renewables.
1:46:16 PM
MR. THAYER directed attention to the Required Project Work
Summary on slide 15. The utilities are looking at working
together on the following projects:
Upgrade Transmission Line from Bradley Junction to Soldotna. The
transmission line would be upgraded to 230 kV or a second 115 kV
line would be constructed.
Upgrade Transmission Line from Sterling to Quartz Creek.
Upgrade Transmission Line from Sterling to Quartz Creek. AEA
purchased this transmission line from Homer Electric following
the Swanson Lake fire to extinguish a number of lawsuits. The
goal was to upgrade the transmission line from 115 kV to 230 kV
and remove the 69 kV line.
Battery Energy Storage Systems (BESS) for Grid Stabilization.
This project will upgrade the existing BESS system in Fairbanks
and add systems in the Kenai and Southcentral regions.
Study of Alternative Path to Export Energy off Kenai Peninsula.
This might be an undersea cable.
MR THAYER stated that the total cost for these projects is about
$261 million. Because the Bradley Lake power sales agreement
from 30 years ago allows for required project work, the excess
from the 12.5 percent that the utilities are obligated to pay
for the next 20 years can go toward these projects. He estimated
that this bonding could pay from $225-$250 million of the
upgrades. AEA is working with the utilities on this bonding. The
ratepayers will pay no more than they do now. He noted that the
line loss to Fairbanks is estimated to cost ratepayers up to
$0.5 million per month, so this will make a huge difference in
that community. The upgraded transmission lines will also
provide opportunities for wind and solar to serve the entire
Railbelt.
1:49:46 PM
MR. THAYER briefly reviewed the Alaska Intertie. Slide 16 read
as follows:
• Constructed in the mid -1980s, the Alaska Intertie
is a 170 mile -long, 345 kilovolt (kV) transmission
line from Willow to Healy
He highlighted that this line was designed to be upgraded and
that work would need to be done for any renewable work that is
done from Anchorage to Fairbanks.
• Operated by AEA and Railbelt utilities, the
transmission line improves reliability within
Railbelt system
• Allows Golden Valley Electric Association (GVEA) to
connect to and benefit from lower cost power
• Between 2008 and 2018, the Intertie provided an
average annual cost savings of $30 million to GVEA
customers
MR. THAYER emphasized that even after 30 years, Bradley Lake and
the Alaska Intertie continues to save money. He directed
attention to the bulleted points on slide 17 that highlight
clean energy savings for the Railbelt. The slide read as
follows:
• Bradley Lake Expansion (Spillway Raise) $4
million
• Bradley-Soldotna 115kV Line $66 million
• Soldotna-Quartz Creek (and Substation) $70
million
• Bernice Lake-Beluga HVDC $185 million
He noted that this is an undersea cable to take a line to
Beluga and provide a second line into Fairbanks, which is
similar to what Enstar Natural Gas does with two lines. AEA
has just one line into Southcentral and is looking for a
second.
• Dave's Creek-University 230kV Line $58 million
• Grid Stabilization $115 million
1:52:02 PM
MR. THAYER displayed slide 18, Susitna-Watana Hydroelectric
Project History. He recapped that the project was first studied
as a source of power in the 1950s. In the 1980s the state
supported the project and by 2010 the 50 percent renewable goal
was established. In 2011, the legislature unanimously authorized
the Alaska Energy Authority to pursue Susitna-Watana Hydro and
studies began in 2012. He reported that the state has spent $193
million on FERC licenses and estimated it will take an
additional $100 million to get a FERC license. The previous
administration put licensing of the project in abeyance and the
current administration rescinded the abeyance in 2019.
MR. THAYER highlighted that the utilities along the Railbelt
have expressed interest in purchasing 450 megawatts from the
project and that there was interest from the private sector to
build Susitna-Watana. He acknowledged that a new cost-benefit
analysis was needed before any more work is done.
MR. THAYER paraphrased slide 19, Cook Inlet Natural Gas Value
into the Future. It read as follows:
[Original punctuation provided.]
Opportunities:
• Home heating on the Railbelt (including potential
future expansion)
• Power generation fuel on an as-needed basis and gas
storage (CINGSA)
• Industrial customers in the Cook Inlet
- Combined heat and power applications standalone
customers
- Possibility for green hydrogen production
- In-state industrial use
- Potential pipeline transport for minerals
extraction
MR. THAYER described SB 179 as a work in progress as the state
moves toward clean energy. He said this is something that the
utilities, AEA, and the state have said they want to do and now
is the time to work together to figure out a path forward. He
added that the RPS is with the Regulatory Commission of Alaska
(RCA) and that agency will be responsible for both the statutes
and regulations.
1:56:02 PM
CHAIR COSTELLO mentioned that while the bill would create a
portfolio standard for electric providers to include renewable
energy, it does not consider other innovative carbon free
options such as microreactors. For that reason, the invited
testimony will illuminate new opportunities for Alaska to
incorporate clean, reliable energy sources into the electric
grid
1:57:19 PM
JESS GEHIN, Ph.D. Associate Laboratory Director, Nuclear Science
and Technology (NS&T) Directorate, Idaho National Laboratory
(INL), Idaho Falls, Idaho, stated that his testimony would
provide information on nuclear energy as a primary source of
clean, low carbon energy. It provides an opportunity to
complement renewables, so it could be considered part of an
energy portfolio. He explained that INL is the Department of
Energy's nuclear laboratory that performs research on nuclear
energy technologies, deployment, and demonstrations. He noted
that INL also works closely with other laboratories on energy
system integration.
1:59:36 PM
DR. GEHIN explained that nuclear energy is based on a process
called fission. A nuclear reactor system harnesses the power
from nuclear fission, controls it, and converts it primarily to
heat that can be converted to electricity. Fuel is not burned,
so carbon emissions are comparable to other renewable sources of
energy. Nuclear plants provide firm power 24/7 or it can be
adjusted to meet demand; operate in any weather conditions; and
run for long periods between refueling. These plants are not
subject to fuel supply disruptions. Nuclear plants in the U.S.
generate about 100 gigawatts (GWh) or 20 percent of the
electricity produced in the nation. It accounts for about 55
percent of the low carbon electricity generation.
2:02:15 PM
DR. GEHIN recounted the significant development in new reactor
types in the last several years. Termed advanced reactors
because of the technologies used, they are under development and
will be demonstrated in the next decade and deployed after that.
The advanced reactors use fuels and coolants that can be
operated at higher temperatures and lower pressures, which leads
to simpler designs, higher efficiency and a broader range of
application. One size is typically less than 50 megawatts. Small
modular reactors typically range from 500 [kilowatts] to 300
megawatts, and modules can be added to meet the required power
demand. Smaller sized reactors can be fabricated in a factory,
which reduces the cost and allows a more streamlined schedule
for development.
DR. GEHIN described three microreactor concepts that will be
demonstrated in the next five years.
1) The Department of Energy (DOE) is funding the microreactor
development called Marvel. The plan is for it to start
operations in 2023. It will demonstrate the processes
required to get a microreactor designed, authorized,
fabricated, and started.
2) In the 2024 timeframe, the Department of Energy Capability
Office will demonstrate at INL its mobile microreactor for
remote uses.
3) The company Oklo is developing the microreactor called
Aurora. It will be demonstrated at INL in the middle of
this decade.
2:05:07 PM
DR. GEHIN related that DOE's Advanced Reactor Demonstration
Program is supporting public/private partnerships for other
advanced reactor systems. These include:
1) TerraPower's Natrium Reactor, which is sodium cooled, will
be deployed at a retired coal plant in Kemmerer, Wyoming.
2) X-energy is developing the Xe-100 gas cooled reactor that
will be sited in Washington state and start up in 2027.
3) Kairos salt-cooled high temperature test reactor that will
start up in 2026.
4) Southern Company and TerraPower are partnering on a Molten
Chloride Reactor Experiment that will start in 2025.
DR. GEHIN also mentioned that Utah Associated Municipal Power
System is moving forward on deploying a small modular reactor
(SMR) on the INL site in 2029. It consists of six modules, each
of which is 77 megawatts.
He said the point is that there will be demonstrations in the
next decade that will prove the ability and feasibility of
microreactors and small modular reactors to meet clean energy
needs.
2:06:50 PM
DR. GEHIN stated that states are increasingly interested in
considering nuclear energy as an option. In addition to projects
in Idaho, Wyoming, and Washington state, West Virginia recently
removed its ban on nuclear power plants; Indiana has legislation
to consider small modular reactors; Nebraska passed legislation
to allow nuclear energy to qualify for renewable energy
incentives; and SB 177 seeks to streamline deployment of
microreactors in Alaska.
DR. GEHIN described other things happening in Alaska related to
nuclear power.
1) Copper Valley Electric Association is working with Ultra
Safe Nuclear Corporation (USNC) on a feasibility study of
microreactors.
2) The U.S. Air Force has expressed its intention to use
nuclear energy at Eielson Air Force Base.
3) INL has supported and collaborated to look at the role of
nuclear energy in Alaska. This includes the study by MIT
and supported by the INL Market Initiative, which included
participation from the University of Alaska Anchorage
faculty and staff. A finding was that microreactors are
cost effective because they provide both heat and
electricity.
4) The University of Alaska, Anchorage supported studies that
looked at use cases for nuclear energy in Alaska.
DR. GEHIN stated that the foregoing are concrete projects that
will demonstrate the feasibility of a wide range of nuclear
energy concepts. Microreactors that provide heat and power look
particularly attractive for remote communities and rural areas.
In the next ten years these demonstration projects will show how
these reactors perform. Nuclear energy is clean and it meets all
the objectives of a renewable energy portfolio standard, and
because of the emerging efforts, it warrants consideration for a
future energy source.
2:09:55 PM
CHAIR COSTELLO asked him to talk about the safety considerations
and the small physical footprint of a microreactor.
DR GEHIN stated that the physical footprint for a micro might be
the size of a shipping container while others may have a garage-
size building. There may also be support buildings around the
facility itself. Safety considerations include exclusionary
emergency planning zones, which are unoccupied spaces. He
relayed that the Nuclear Regulatory Commission (NRC) is working
to update the requirements for emergency planning zones given
the small size and enhanced safety of these small reactors. The
expectation is that the emergency planning zones will be limited
to the physical area of the reactor. By comparison, large
gigawatt class reactors may occupy 50 acres.
With regard to safety, he said a lot of work has been done on
light water reactors since Fukushima to maintain cooling after a
reactor shuts down, because the heat produced during the fission
process does not immediately go to zero. Existing reactors need
power to cool the reactor within 72 hours if power is lost.
Without power, a disaster like what happened at Fukushima
occurs. New safety measures for those reactors have been to put
systems in place to ensure that power is maintained. By
comparison, decay heat for advanced reactors does not require
any operator action to maintain cooling, which significantly
enhances safety if there is an incident at a reactor.
2:13:28 PM
SENATOR MICCICHE asked if there had been a delay in the
development of microreactors because it's been discussed for a
long time and he would have expected something to be on the
market by now.
DR. GEHIN offered his perspective that the development and
deployment timeline for this nuclear technology has been quite
fast.
SENATOR MICCICHE observed that in certain applications in rural
Alaska, 300 megawatts was a significant amount of generation. He
asked what portion could go toward heating structures versus
providing electrical power.
DR. GEHIN clarified that reactors currently under design range
from less than a megawatt to 300 megawatts or more.
Microreactors currently are being developed in the megawatt
range. The reactor that will be demonstrated at INL is in the
100 kilowatt range.
He explained that the 300 megawatt reactor mentioned earlier is
the upper limit for a small modular reactor; it will produce
700-800 megawatts of heat. It depends on the design of the
reactor and the power conversion system, but one can decide
whether some or all will go directly to heat and how much will
go to electricity. The waste or rejected heat can also be used
for different processes.
SENATOR MICCICHE asked what it would take for the renewable
community to accept micro nuclear reactors as a renewable source
of energy.
DR. GEHIN offered his view that the nuclear community is working
closely with the renewable community. Combining firm power from
nuclear with renewables makes it easier to manage variabilities.
He described it as infinite batteries. He added that reactors
can also be designed to work with renewables for thermal energy
storage. The reactor in Wyoming, for example, has the ability to
maneuver power through thermal energy storage to adjust to
variable renewables.
2:18:23 PM
SENATOR STEVENS noted that hydropower in his community of Kodiak
costs about 6 cents/kWh. He asked what it would cost to run a
small nuclear plant.
DR. GEHIN said that it would be hard to compete with that
because established hydro is very cost effective. Analyses have
been done that show the cost would be from 10 cents/kWh to as
much as 50 cents/kWh for the very small nuclear systems. These
systems would only be competitive in small rural locations that
rely on diesel that is shipped in. He said the goal is to match
with the appropriate market.
CHAIR COSTELLO invited Gwen Holdmann to comment on the bill and
the approach it takes.
2:19:59 PM
GWEN HOLDMANN, Director, Alaska Center for Energy and Power
(ACEP), UAF, Fairbanks, Alaska, stated that it is fairly common
for nuclear to be excluded from an RPS. No other state includes
nuclear as eligible under a RPS, although a bill introduced in
California in 2020 would have made nuclear eligible under that
RPS standard. The European Union (EU) also recently declared
nuclear a green technology. She said Alaska does not have
nuclear as part of its renewable energy mix, but she believes it
has potential as part of a future mix.
MS. HOLDMANN agreed with an earlier comment that the use of
nuclear has been discussed for a long time. She noted that there
were no venders looking at microreactors when the Alaska Center
for Energy and Power first reported to the legislature on
modular nuclear reactors in 2011, but that has changed. Now a
number of venders are actively looking at smaller reactor
designs. She highlighted that there is a plan to install up to a
5 megawatt reactor at Eielson Air Force Base by 2027.
MS. HOLDMANN stated that ACEP has been working with the Idaho
National Lab to analyze opportunities for microreactors under 50
megawatts of electric power output for the Alaska market. She
highlighted that including microreactors in this RPS would
provide additional grid resilience for critical infrastructure.
This would be similar to the Eielson project where both heat and
power could be provided to critical nodes on the Railbelt grid.
She agreed with Dr. Gehin that there is the potential to
regulate variable renewables. Mr. Thayer talked about the need
for additional energy storage on the Railbelt grid, but
microreactors could potentially be an alternative solution since
they have the ability to firm up renewable energy resources
while providing other energy sources like electric power and
heat. This is different than a battery. There are potential
industrial applications as well as for rural hubs. She opined
that nuclear could support other opportunities in Alaska related
to hydrogen or synthetic fuel production.
MS. HOLDMANN related that ACEP has been working on the economics
and possible use cases for microreactors and hopes to continue
to do so as part of a statewide roadmap for nuclear energy. She
mentioned that many states have a clean energy standard (CES)
instead of a renewable portfolio standard RPS. The key
differences include energy efficiency, carbon capture, and
nuclear. She noted that this might exclude biomass, which is
considered renewable but it does have emissions. She concluded
her comments saying that she did not see that an RPS would
necessarily exclude nuclear.
2:25:27 PM
SENATOR REVAK noted that the committee heard about hydropower
that costs about 6 cents/kWh. He asked if she had an idea of the
cost for nuclear.
MS. HOLDMANN said it will not compete with 6 cents/kWh
hydropower. ACEP is working with INL to understand the value
streams that come from a microreactor and she believes that the
economics are such that, there will be a place for these types
of systems as part of the state and national energy mix in the
future.
SENATOR REVAK asked how many states have RPS policies or clean
energy standards, and how that has affected the rates for users.
MS. HOLDMANN said she did not have the answer, although she
recalled that Mr. Thayer said about half the states have some
type of RPS or clean energy standard.
SENATOR MICCICHE asked if the NRC was looking at tiered
permitting such that the evaluation was different than for
typical nuclear construction.
MS. HOLDMANN answered that the idea over the long term was for
the National Regulatory Commission to license the technology and
then a separate licensing process would be specific to the site
to ensure that the technology is appropriate for the site. The
expectation is that the reactor design would not need to go
through multiple levels of relicensing for every individual
project because they will be developed and built in a factory to
exacting specifications.
2:30:34 PM
SENATOR MICCICHE asked if anyone had modeled a community on a
megawatt Btu balance for generation versus heat and waste heat
and looked for applications for a district heating system versus
outlying electrification using waste heat heating.
MS. HOLDMANN offered to meet separately or set up a Lunch and
Learn on such details. She relayed that ACEP currently was
looking at potential use cases to better understand the energy
streams. These are: Fort Wainwright and downtown Fairbanks; the
university; a remote community; and a remote mine site She said
ACEP has very good electric power data but heating data was
lacking for many users in the state. She noted that sites that
have an existing steam heat district heating system such as Fort
Wainwright and downtown Fairbanks are potentially examples of
where one could replace a coal plant at the end of its life with
a microreactor. She opined that such use cases might have more
economic value than just the power generation itself. ACEP is
working with the developers and manufacturers on this model and
there is a supplemental request in the university's budget to
fund that effort.
CHAIR COSTELLO said she believes that a Lunch and Learn would be
helpful to give people an idea of the work that ACEP is doing
with this technology and the potential for application in the
state.
2:33:02 PM
CHAIR COSTELLO opened public testimony on SB 179.
2:33:15 PM
CHRIS ROSE, Executive Director, Renewable Energy Alaska Project
(REAP), Sutton, Alaska, stated support for the Renewable
Portfolio Standard (RPS), as written. He agreed with previous
comments that they typically do not include nuclear and opined
that there were practical reasons for maintaining the existing
standard. Some of the nuclear technology under discussion will
not be available for 5-10 years. Furthermore, the cost of
nuclear energy from microreactors will not be close to 6
cents/kWh. Solar and wind currently are the least expensive
power options available in the country. He opined that nuclear
will not be competitive with wind and solar in the next 19
years, which is the range of the RPS put forward in SB 179. He
urged the committee to keep the RPS to those technologies that
were currently available.
CHAIR COSTELLO asked if he knew why the 80 percent by 2040
requirement was set and if that was achievable.
MR. ROSE explained that the National Renewable Energy Laboratory
(NREL) looked at whether an 80 percent standard was achievable
and determined that in the Railbelt that standard could be
achieved without impacting reliability. All the scenarios
included the updated transmission and batteries that Mr. Thayer
discussed and continued natural gas generation to supply the
remaining 20 percent of the power.
2:37:52 PM
CHAIR COSTELLO discerned that nobody else wished to comment and
closed public testimony on SB 179.
CHAIR COSTELLO held SB 179 for further consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 179 Transmittal Letter.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 Sectional Analysis version A.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 Fiscal Note 2417 - DCCED.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 AEA Presentation to SLAC - 2.22.22.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 Supporting Document - NREL Feasibility Study (2022).pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 Written Testimony received as of 2.22.22.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 132 Presentation to SLAC 2.23.22.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 132 |