03/10/2020 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

                SB 194-ADVANCED NUCLEAR REACTORS                                                                            
                                                                                                                                
3:34:28 PM                                                                                                                    
CHAIR BISHOP announced the consideration  of SENATE BILL NO. 194,                                                               
"An Act  relating to  advanced nuclear  reactors." He  noted that                                                               
there was a committee substitute (CS) to consider.                                                                              
                                                                                                                                
3:34:41 PM                                                                                                                    
SENATOR MICCICHE  moved to adopt  the CS  for SB 194,  work order                                                               
31-LS0878\M, as the working document.                                                                                           
                                                                                                                                
CHAIR BISHOP objected for discussion  purposes and explanation of                                                               
changes.                                                                                                                        
                                                                                                                                
3:35:03 PM                                                                                                                    
CODY  GRUSSENDORF,  Staff,  Senator Click  Bishop,  Alaska  State                                                               
Legislature,   Juneau,   Alaska,    paraphrased   the   following                                                               
explanation of changes from version A to version M for S 194:                                                                   
                                                                                                                                
   • Page 1, lines 10-13:                                                                                                       
        o Adds a 300-megawatt (MW) ceiling exemption to the                                                                     
          amount of power generated for an advanced nuclear                                                                     
          reactor classification.                                                                                               
        o The ceiling exempts a reactor from the land                                                                           
          designation requirement by the legislature in Section                                                                 
          1(b).                                                                                                                 
   • Page 2, line 2:                                                                                                            
        o The CS removes language referring to the most recent                                                                  
          generation of reactors.                                                                                               
        o The CS inserts a date: January 1, 2020.                                                                               
   • Page 2, line 19:                                                                                                           
        o The CS inserts a date: January 1, 2020.                                                                               
                                                                                                                                
3:35:28 PM                                                                                                                    
SENATOR GRAY-JACKSON joined the committee meeting.                                                                              
                                                                                                                                
SENATOR MICCICHE  asked what the  significance is for the  300 MW                                                               
ceiling.                                                                                                                        
                                                                                                                                
MR. GRUSSENDORF  answered that 300  MW is the U.S.  Department of                                                               
Energy's (DOE)  standard definition  of a small  modular reactor.                                                               
The bill  is about small reactors  and does not intend  to exempt                                                               
gigawatt reactors from the legislative site designation.                                                                        
                                                                                                                                
SENATOR MICCICHE asked  what would happen if DOE  changed the 300                                                               
MW definition to a larger size.                                                                                                 
                                                                                                                                
MR. GRUSSENDORF conceded that he did  not know if the 300 MW will                                                               
hold true in  the future, but the designs and  definitions by DOE                                                               
are for small reactors below 300 MW.                                                                                            
                                                                                                                                
SENATOR  MICCICHE  remarked  that the  legislature  could  always                                                               
change the MW ceiling if there is a reason to do so.                                                                            
                                                                                                                                
3:37:27 PM                                                                                                                    
CHAIR BISHOP opened public testimony for SB 194.                                                                                
                                                                                                                                
3:37:37 PM                                                                                                                    
GEORGE  ROE,  Research Professor,  Alaska  Center  of Energy  and                                                               
Power   (ACEP),   University   of  Alaska   Fairbanks,   Seattle,                                                               
Washington,  testified  in  support  of   SB  194.  He  said  the                                                               
definition of a  small reactor and the  magnitude Mr. Grussendorf                                                               
described  is   very  consistent  with  DOE.   Analysis  by  ACEP                                                               
indicates that  the scale of  small reactor utilization  might be                                                               
best matched for private, federal,  and community applications in                                                               
the state for combinations of heat and power.                                                                                   
                                                                                                                                
He detailed that the University  of Alaska received state funding                                                               
to  complete   a  study   in  2010   on  small   modular  reactor                                                               
capabilities that  identified applications within the  state that                                                               
could  warrant  future  investigation.   ACEP  believes  that  an                                                               
updated study may  be appropriate to refine and  enhance the 2010                                                               
roadmap. An updated study would  provide an assessment of current                                                               
technology  as well  as the  evolution of  the energy  systems in                                                               
Alaska.                                                                                                                         
                                                                                                                                
3:39:10 PM                                                                                                                    
SENATOR  HOFFMAN pointed  out that  the  committee discussed  the                                                               
need for  an updated study  during the previous bill  hearing. He                                                               
suggested that  the committee send  a letter outlining  this need                                                               
to  the  capital  budget  chair for  consideration.  He  said  an                                                               
updated  study would  fit hand  in glove  with what  U.S. Senator                                                               
Murkowski is doing on the national level.                                                                                       
                                                                                                                                
SENATOR MICCICHE  said the capacity  or generating  potential for                                                               
many Alaska  communities would  be much smaller  than 300  MW. He                                                               
asked Mr. Roe if there is a break  below 300 MW that would have a                                                               
different definition in the future.                                                                                             
                                                                                                                                
MR. ROE agreed  that most applications in Alaska  would require a                                                               
smaller reactor. However,  the 300 MW demarcation in  the bill is                                                               
useful  to  avoid the  need  for  continuous revisions.  In  many                                                               
situations,  a  reactor  on  the   order  of  3-10  MW  would  be                                                               
appropriate for  Alaska Railbelt  and U.S. Department  of Defense                                                               
applications. Updated  analysis would identify the  best capacity                                                               
alignment for  possible community analysis. Larger  reactors that                                                               
require  infield refueling  could  serve  the Railbelt.  However,                                                               
containerized microreactors with a  1-10 MW threshold could serve                                                               
as  a  complete  system  without  infield  fuel  replacement  for                                                               
possible community applications.                                                                                                
                                                                                                                                
3:42:28 PM                                                                                                                    
SENATOR MICCICHE  asked about  FERC's position  on the  change to                                                               
the  requirement for  a legislative  siting permit  for a  300 MW                                                               
reactor and if there would continue  to be a site requirement for                                                               
any sized nuclear reactor.                                                                                                      
                                                                                                                                
MR. ROE  answered that he did  not know, but ACEP  was willing to                                                               
do research on the inquiry.                                                                                                     
                                                                                                                                
CHAIR  BISHOP   advised  that   the  Senate   Resources  Standing                                                               
Committee was  the next  committee of  referral and  the question                                                               
could be answered there.                                                                                                        
                                                                                                                                
3:43:32 PM                                                                                                                    
CHAIR  BISHOP removed  his objection  to the  CS for  SB 194  and                                                               
closed public testimony.                                                                                                        
                                                                                                                                
3:43:45 PM                                                                                                                    
SENATOR MICCICHE  moved to report the  CS for SB 194,  work order                                                               
31-LS0878\M, from  committee with individual  recommendations and                                                               
attached zero fiscal note.                                                                                                      
                                                                                                                                
CHAIR BISHOP  found no objection  and CSSB 194(CRA)  was reported                                                               
from  the   Senate  Community   and  Regional   Affairs  Standing                                                               
Committee.