Legislature(2015 - 2016)BARNES 124
04/17/2016 10:00 AM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB193 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 193 | TELECONFERENCED | |
| += | SB 203 | TELECONFERENCED | |
| += | SB 206 | TELECONFERENCED | |
SB 193-EXTEND EXEMPTION FOR SMALL POWER PLANTS
10:03:22 AM
CHAIR OLSON announced that the only order of business would be
CS FOR SENATE BILL NO. 193(L&C), "An Act extending the exemption
from regulation by the Regulatory Commission of Alaska for
certain facilities or plants generating energy from renewable
energy resources."
10:03:25 AM
SENATOR LESIL MCGUIRE, Alaska State Legislature, speaking as the
sponsor, explained that CSSB 193(L&C) is an extension of a
policy the legislature put in place in 2010, as part of an
energy package. She reminded the committee that there was an
effort to expand and incentivize renewable energy, particularly
in small communities that currently depend on diesel fuel, which
is a very high-priced commodity. Senator McGuire advised that
the proposed bill would extend the sunset on an already existing
exemption in state law which allows for power plants that
generate less than 65 megawatts of electricity, entirely from
renewable energy resources, to be exempt from regulation by the
Regulatory Commission of Alaska (RCA). The affected power
plants had to have been placed into commercial operation on or
after August 31, 2010, could not have received any state grants
or tax credits, and have to be selling power on a wholesale
basis to regulated utilities, which distribute the power to
local customers. She pointed out that distribution through
regulated utilities means that RCA has ensured that the rates
are fair and reasonable to Alaskans. She noted that even the
federal government does not regulate similar facilities under 80
megawatts, and that Alaska was one of the few which did
regulate. Senator McGuire said extending this policy is an
opportunity to continue to incentivize this source of power by
reducing government regulation; in fact, the current budget
shortfall will inspire more creative ideas to help the private
sector by reducing government costs, as opposed to the past
policy of funding state grants.
10:06:18 AM
REPRESENTATIVE HUGHES moved to adopt Amendment 1, labeled 29-
LS1513\H.1, Nauman, 4/15/16, which read:
Page 1, line 10:
Delete "[, AND BEFORE JANUARY 1, 2016]"
Insert ", and before July 1, 2021 [JANUARY 1,
2016]".
CHAIR OLSON objected for discussion purposes.
10:06:26 AM
JESSE LOGAN, Staff, Senator Lesil McGuire, Alaska State
Legislature, informed the committee that Amendment 1 places the
sunset extension to July 1, 2021, which is a five-year
extension. He stated that the previous sunset scheduled for
January would have allowed for "a few months of questionable de-
regulation." Further, a five-year sunset is a reasonable amount
of time for the program to continue, and to allow for a review
by the legislature to ensure the programs are working properly.
REPRESENTATIVE HUGHES expressed her understanding that the
Alaska Power Association (APA) sought a sunset date of 2020, and
asked whether APA is in support of this new sunset date.
MR. LOGAN replied that the original sunset date had been for
2026, and he directed attention to a letter dated 2/29/16 from
APA included in the committee packet, in which APA stated they
would not oppose the bill. He noted that the sunset date was
previously changed by another committee; however, "To the best
of my knowledge, 2021 is satisfactory to them," he said.
REPRESENTATIVE KITO surmised that the original authorization had
been from 2010 to 2016.
MR. LOGAN said correct.
REPRESENTATIVE KITO observed this is a similar amount of time,
and there have not been any issues in that regard.
MR. LOGAN said correct.
10:08:15 AM
CHAIR OLSON removed his objection. There being no further
objection, Amendment 1 was adopted.
10:08:28 AM
CHAIR OLSON opened public testimony. After ascertaining no one
wished to testify, public testimony was closed.
REPRESENTATIVE HUGHES asked whether there has been growth in
small power plants since the original period of 2010 to 2016.
SENATOR MCGUIRE reported that Fire Island Wind and Delta Wind
Farm are power plants that have come online during that time,
although there are many others underway. She reported that
there is a lot of interest, and she has been asked whether there
was any consideration of expansion beyond the current megawatt
limitation, although currently there appeared to be some
discomfort with this. Senator McGuire explained that "nobody
wants to be regulated by the RCA," although RCA seeks to shorten
its response time. She opined sometimes the interests of the
consumer are met by RCA, and sometimes not. Her hope is that
there will be more independent renewable power plants to lower
electricity costs for consumers.
10:11:14 AM
REPRESENTATIVE HUGHES moved to report [CSSB 193(L&C), Version
29-LS1513\H], as amended, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, HCS CSSB 193(L&C) was reported out of the House
Labor and Commerce Standing Committee.