Legislature(2023 - 2024)SENATE FINANCE 532
03/13/2024 09:00 AM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB243 | |
| SB116 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 243 | TELECONFERENCED | |
| + | SB 116 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 243
"An Act relating to the board of directors of the
Alaska Energy Authority."
9:06:58 AM
Co-Chair Olson relayed that it was the first hearing of SB
243.
9:07:13 AM
SENATOR CATHY GIESSEL, SPONSOR, relayed that the bill would
create a separate board for the Alaska Energy Authority
(AEA). She stated that AEA had a greater number of complex
issues than previously administered, and managed a great
deal of money. The bill would place two commissioners on
the board, the commissioner of Department of Commerce,
Community and Economic Development (CED) and the
commissioner of the Department of Revenue (DOR).
Senator Giessel continued that each of the six public
members would have three-year terms. The bill was amended
in the Senate Resources Committee, which she thought had
stipulated that board members would have tiered terms with
members rotating out.
Co-Chair Olson asked why the boards were combined
initially.
Senator Giessel thought the AEA director could best answer
the question.
Senator Merrick asked if there was a difference between the
bill and the associated executive order offered by the
governor.
Senator Giessel answered affirmatively.
9:10:56 AM
ANGELA RODELL, STAFF, SENATOR GIESSEL, spoke to a
Sectional Analysis for the CSSB 243 (RES) (copy on file):
The Committee Substitute adopts the following changes:
1. Section 4, page 3, lines 2-5:
a. Adds language to state the AIDEA board would
no longer be the board of AEA as of the effective
date and to provide specific terms to specified
qualified board members.
b. Removes the transition that required the
Governor to appoint two public members of the
initial
Alaska Energy Authority board of directors to
one-year terms, two public members to two-year
terms, and two public members to three-year terms
and added language requiring:
(b) the member appointed to fulfill the role of
expertise or experience in managing or operating
an electric utility not connected to an
interconnected transmission system and one of the
two members appointed to fulfill the role of
expertise or experience in finance, energy
policy, engineering, law, or economics are
appointed to an initial 7-month term, expiring
March 1, 2025
(c) the member appointed to fulfill the role of
expertise or experience in developing energy
projects in rural communities and the second of
the two members appointed to fulfill the role of
expertise or experience in finance, energy
policy, engineering, law, or economics are
appointed to an initial 19-month term, expiring
March 1, 2026.
(d) the member appointed to fulfill the role of
expertise or experience in managing or operating
an electric utility connected to an
interconnected transmission system and the member
appointed to fulfill the role of financial
expertise in large-scale energy project
development are appointed to an initial 31-month
term, expiring March 1, 2027.
2. Section 5, page 3, line 21 to include an effective
date of July 1, 2024.
9:14:45 AM
Co-Chair Stedman referenced page 2, line 4, which
referenced the interconnected electric energy transmission
network, and asked for that definition.
Ms. Rodell explained that the language referenced the
intertie that ran from the Kenai Peninsula through
Anchorage and through Fairbanks.
Co-Chair Stedman assumed that the intertie would exclude
the interconnection between Ketchikan, Wrangell, and
Petersburg.
Ms. Rodell relayed that the language had been taken from
the executive order.
Senator Giessel pointed out that the definition on page 1,
line 10, could include communities in Southeast Alaska.
Co-Chair Olson asked if all the board members would be
voting members and asked about the eventuality of a tie.
Ms. Rodell explained that an affirmative vote of five
members was a requirement for any action.
Senator Bishop referenced voting rights and asked if the
designee for a commissioner's office would have voting
authority.
Ms. Rodell affirmed that a commissioner designee would have
voting authority.
9:18:40 AM
CURTIS THAYER, EXECUTIVE DIRECTOR, ALASKA ENERGY AUTHORITY,
discussed a presentation entitled "SENATE BILL 243: AEA
GOVERNANCE" (copy on file). He showed slide 2, "About AEA,"
and highlighted that AEA had six board members. He
discussed rural energy elements such as, and mentioned
travel to rural parts of the state where AEA conducted
trainings. He mentioned grants and loans offered by AEA and
discussed the Renewable Energy Fund.
Mr. Thayer referenced slide 2, "AEA Active Projects and
Services," which showed a map of the state depicting active
projects and services.
Mr. Thayer reviewed slide 3, "The "Why"":
"As governor, I find that it is in the best interests
of efficient administration to separate the membership
of the board of directors of the Alaska Energy
Authority from the membership of the board of
directors of the Alaska Industrial Development and
Export Authority." Executive Order 128
• Historical: From 1976 until 1993, AEA was
governed by its own board of directors.
• Distinct Purpose: The underlying purposes of
AIDEA and AEA are fundamentally different.
• Unique Mission: Reduce the cost of energy in
Alaska, diversify Alaska's energy portfolio,
and increase resiliency, reliability, and
redundancy and our mission is growing (owned
assets, energy data department).
• Exponential Growth: AEA's capital budget has
increased over 1,000% in the last four years.
• Distinct Expertise: A distinctive set of skills
and expertise is required for optimal
governance. It is common and appropriate for a
single-purpose entity to have a governing board
made up of experts in the topic area.
9:25:42 AM
Mr. Thayer discussed slide 5, "AEA's Exponential Growth":
.notdef AEA has received and anticipates a substantial
increase in federal funding from the Infrastructure
Investment and Jobs Act (IIJA) and others, over the
next several years.
.notdef Pipeline of federal funding:
- $84 million awarded (Energy Efficiency Conservation
Block Grant, Department of Defense Grant, State
Energy Planning Grant, National Electric Vehicle
Infrastructure grant, and Grid Resilience 40101(d)
Grant)
- $573.5 million conditionally awarded (Grid
Resilience and Innovation Partnerships, Energy
Efficiency
Reconciliation Loan Capitalization Program, and Home
Efficiency and Appliance Rebates)
- $104 million competitive applications pending
decision (Solar for All, Wood Innovations Grant, and
Energy Future Grant, and High-Energy Cost Grant)
.notdef Availability of tax incentives for clean energy
projects and direct pay reimbursement available for
tax
exempt entities for the first time.
.notdef In addition to AEA's netbook value of $1.3 billion,
several large projects are underway:
- $413 million to build an undersea High Voltage
Direct Current from the Kenai Peninsula to Anchorage
- $342 million for the Dixon Diversion Project to
increase the annual energy production of Bradley Lake
by 50 percent (Estimated to offset 1.5 billion cubic
feet of natural gas per year in Railbelt power
generation)
- $90 million for Railbelt transmission upgrades
(Sterling Substation and Quartz Creek transmission
line)
Mr. Thayer turned to slide 6, "AEA's Statutory Programs."
9:30:06 AM
Co-Chair Stedman asked for a brief synopsis of the AEA
board 30 years previously.
Mr. Thayer detailed that the history of the AEA.
Co-Chair Olson asked for an idea of why the boards were
initially combined. He
Mr. Thayer understood that a former Speaker of the House
had issues with the board at the time and the AEA Executive
Director, and had made substantial changes. He noted that
AEA employees were actually AIDEA employees. The two
corporations shared some services.
9:32:43 AM
Co-Chair Olson asked Mr. Thayer to comment on Co-Chair
Stedman's mention of the intertie between Ketchikan and
Petersburg.
Mr. Thayer noted that the two interties were distinct.
Co-Chair Stedman did not have a concern about Railbelt
representation.
Co-Chair Olson asked how the municipalities were chosen.
Mr. Thayer referenced information from the Department of
Energy, and noted that AEA had helped with some of the
applications. He referenced Angoon and a project that had
been on the books for some time. He noted that AEA was
still working with the community on the project. He
mentioned Kotzebue had also received some of the funding.
He agreed to provide a complete list of the communities.
9:36:04 AM
Co-Chair Olson asked Mr. Thayer to address FN 1 from CED.
Mr. Thayer relayed that the fiscal note was derived from
the board cost for travel.
Co-Chair Olson OPENED public testimony.
Co-Chair Olson CLOSED public testimony.
SB 243 was heard and HELD in Committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 243 (RES) Sponsor Statement.pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 243 |
| SB 243 (RES) Explanation of Changes.pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 243 |
| SB 243 (RES) Sectional Analysis.pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 243 |
| SB 243 2024.03.12 AEA Senate Bill 243 AEA Governance Presentation (Final).pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 243 |
| SB 116 Sectional Analysis 04.17.23.pdf |
SFIN 3/13/2024 9:00:00 AM SL&C 4/28/2023 1:30:00 PM |
SB 116 |
| SB 116 Sponsor Statement 04.17.23.pdf |
SFIN 3/13/2024 9:00:00 AM SL&C 4/28/2023 1:30:00 PM |
SB 116 |
| SB 116 DOH MS 010924.pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 116 |
| SB 116 DOH MAA 010924.pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 116 |
| SB 116 DOH BHA 020524.pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 116 |
| SB 116 Presentation 03-13-24.pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 116 |
| SB 116 Letters of Support (batch of 10) 3-12-24.pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 116 |
| SB 116 DCCED CBPL 011124.pdf |
SFIN 3/13/2024 9:00:00 AM |
SB 116 |