Legislature(2023 - 2024)BUTROVICH 205
02/26/2024 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: Mining Industry Update | |
| SB243 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 243 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 243-ALASKA ENERGY AUTHORITY GOVERNANCE
4:40:31 PM
CO-CHAIR BISHOP announced the consideration of SENATE BILL NO.
243 "An Act relating to the board of directors of the Alaska
Energy Authority."
4:41:02 PM
SENTATOR CATHY GIESSEL, District E, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 243, introduced herself.
4:41:18 PM
ANGELA RODELL, Staff, Senator Cathy Giessel, Alaska State
Legislature, introduced herself.
4:41:21 PM
SENATOR GIESSEL recalled reading a book about Susan B. Anthony,
a suffragette who fought for the right to vote. She noted the
significant progress since then, highlighting the presence of
five women presenting to the committee today. 106 years ago,
women lacked voting rights and property ownership.
4:42:37 PM
CO-CHAIR GIESSEL highlighted the merger of the Alaska Energy
Authority (AEA) with the Alaska Industrial Development and
Export Authority (AIDEA), which has raised concerns within the
committee. She mentioned an audit conducted in 1994 and
discussions in 1993 about combining the boards. Currently, AEA
faces significant tasks, particularly regarding renewable
energy, while AIDEA has a different mission. Senate Bill 243
aims to separate the two boards, drawing from an executive order
(EO) issued by the administration. The EO was noted to be an
overstep, which sparked SB 243. The bill proposes a six-member
board, including the commissioners of the Department of
Commerce, Community, and Economic Development (DCCED) and the
Department of Revenue. Co-Chair Giessel emphasized the
importance of including the Department of Revenue, especially
given the board's management of funds for government system
upgrades.
4:45:44 PM
MS. RODELL presented the sectional analysis:
[Original punctuation provided.]
SENATE BILL 243
Alaska Energy Authority Board of Directors
SECTIONAL ANALYSIS
Section 1: Amends AS 44.83.030 to create a stand-alone
eight member board of directors for the Alaska Energy
Authority that includes the Commissioner of Commerce,
Community & Economic Development, the Commissioner of
Revenue and 6 members of the public that meet the
specified qualifications.
Section 2: Amends AS 44.83.030 to allow the
commissioners the ability to designate a deputy or
assistant to act in the commissioner's place, sets the
public member term at 3 years and provides for the
governor to immediately appoint a member to fill and
unexpected vacancy.
Section 3: Amends AS 44.83.040 (a) is amended to
require the authority to elect a chair and vice chair
every two years, requires that five members to
constitute a quorum and that actions taken and motions
and resolutions adopted require an affirmative vote of
five members.
4:47:21 PM
SENATOR CLAMAN noted there is no confirmation by the legislation
under SB 243 and if wondered that option was considered.
4:47:37 PM
SENATOR GIESSEL replied yes and said it was considered. However,
members would not be able to be confirmed for this type of
board.
4:47:48 PM
MS. RODELL said it is considered unconstitutional to have non-
quasi-judicial boards subject to confirmation by the
legislature. She offered to provide the relevant information to
the committee.
4:48:04 PM
SENATOR CLAMAN mentioned that the governor could fire board
members without confirmation, leading to the loss of
institutional memory on the board. He noted that SB 243 does not
offer protection to board members.
4:48:51 PM
MS. RODELL replied that it was not discussed but member
protection is something that could be incorporated.
4:49:01 PM
CO-CHAIR BISHOP asked for a list of member qualifications.
4:49:18 PM
MS. RODELL said there would be six members from the public:
• One member with expertise or experience in managing or
operating an electric utility that is not connected to an
interconnected electric energy transmission network
• One member with expertise in developing in energy projects
rural communities
• One member with expertise or experience in managing or
operating an electric utility connected to an
interconnected electric energy transmission network
• One with financial expertise in large scale energy project
development
• Two members with expertise or experience in finance, energy
policy, energy technology, engineering, law, or economics
4:50:25 PM
CO-CHAIR BISHOP opined that this bill does a good job of
capturing the breadth and depth required to set up this board.
4:50:40 PM
SENATOR CLAMAN observed that the state is well served by having
independently operated boards and expressed concerns that SB 243
would not provide that level of independence. He mentioned
witnessing governors from both parties take such actions.
4:51:27 PM
SENATOR GIESSEL invited him to provide an amendment if he
chooses. She noted there is an amendment to establish an
effective date.
4:52:04 PM
CURTIS THAYER, Executive Director, Alaska Energy Authority,
Anchorage, Alaska, AEA serves as Alaska's energy office,
dedicated to reducing energy costs, diversifying the energy
portfolio, and enhancing resilience, reliability, and redundancy
across the state. Structured into six categories, including
Railbelt Energy, AEA owns critical assets such as the Bradley
Lake hydro project, a key provider of affordable power at four
cents per kWh for the Railbelt region. Notably, AEA's
transmission lines from Sterling to Quartz Creek on the Kenai
Peninsula and from Willow to Healy play a crucial role in
delivering power without charging wheeling rights. This saves
the Fairbanks economy an estimated $40 million annually by
facilitating power purchases from the Railbelt. Additionally,
AEA oversees rural energy initiatives, renewable energy
integration, and energy efficiency programs. It evaluates
alternative energy technologies like biomass, hydro, solar, and
wind for their benefits to Alaska. AEA's grant and loan
programs, including the Renewable Energy Fund, have attracted
over $300 million in state investment, leveraging federal funds
to create jobs and displace 85 million gallons of diesel fuel.
AEA also conducts energy planning at state and regional levels.
This was exemplified by its recent completion of the Governor's
Energy Task Force. With significant projects totaling $750
million, AEA's focus on lowering energy costs differentiates it
from AIDEA's economic growth promotion through financing. Thayer
emphasized the need for a dedicated board with expertise
tailored to AEA's goals, citing the burden on the current
volunteer board. While AEA had its own board until the mid-90s,
legislation in 1994 combined the boards of AEA and AIDEA. He
emphasized the importance of separating the boards to enhance
policy development and resource allocation specific to AEA's
objectives.
4:58:03 PM
CO-CHAIR BISHOP held SB 243 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 243 Sponsor Statement Ver. A.pdf |
SRES 2/26/2024 3:30:00 PM |
SB 243 |
| SB 243 Sectional Analysis Ver. A.pdf |
SRES 2/26/2024 3:30:00 PM |
SB 243 |
| SB 243 Fiscal Note DCCED 02.26.24.pdf |
SRES 2/26/2024 3:30:00 PM |
SB 243 |
| Mining Industry Update Presentation 02.26.24.pdf |
SRES 2/26/2024 3:30:00 PM |
|
| SB 243 Supporting Documents AEA Dissolution Special Report.pdf |
SRES 2/26/2024 3:30:00 PM |
SB 243 |
| SB 243 Legislative Legal Memo on Confirmations.pdf |
SRES 2/26/2024 3:30:00 PM |
SB 243 |
| Mining Industry Update Follow Up from 02.26.24.pdf |
SRES 2/26/2024 3:30:00 PM |