Legislature(2009 - 2010)BARNES 124
01/28/2010 03:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| Presentation by Robert Pickett, Chairman of the Regulatory Commission of Alaska: Net Metering Regulations Review and Proposed Cook Inlet Natural Gas Storage Project Update | |
| HB306 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 306 | TELECONFERENCED | |
HB 306-STATE ENERGY POLICY
CO-CHAIR EDGMON announced that the final order of business would
be to hear public testimony on HOUSE BILL NO. 306, "An Act
declaring a state energy policy."
4:20:58 PM
ROBERT VENABLES, Energy Coordinator, Southeast Conference,
informed the committee that Southeast Conference is a regional
development organization. Its mission is to encourage
activities and promote strong economies, healthy communities,
and a quality environment in Southeast Alaska. Mr. Venables
shared that, for the last 12 years, his organization has been
working to develop the energy policies and projects that will
lead to the displacement of diesel as the primary fuel for the
generation of electricity in Southeast communities. He stated
that Southeast Conference supports HB 306; in fact it was a
member of the stakeholders group during the interim. He opined
HB 306 leads the way for state investment in energy projects,
economic development, and renewable energy projects in rural
areas. Mr. Venables stated his organization's intent to
participate with the state in on-going projects, both for the
generation and the transmission of energy, and he cited the need
for a higher level of planning to direct Southeast investments.
He offered to lend Southeast Conference members and utilities in
support of the bill.
4:23:30 PM
CO-CHAIR EDGMON thanked Southeast Conference for its
contributions to the plan.
4:24:53 PM
JERRY MCCUTCHEON informed the committee he would send written
comments to the legislature. He opined that HB 306 was "not
much" and did not do anything. The state must address that
which is doable, and not get tied up in illusions about what is
not doable; for example, pursuing a gas line when the Lower 48
and western Canada is awash in gas. He relayed a short history
of the gas line project.
4:27:04 PM
DAVID LEVY stated that the Alaska Mobility Coalition represents
and advocates for public and community transportation statewide.
It has 76 members from Bethel to Prince of Wales Island, and its
members represent public and community transportation systems
that provide over 7,000,000 rides annually. Mr. Levy thanked
the committee for its work and pointed out that the role of
public transportation, and the energy savings and support for
employment it provides, should be part of the discussion
regarding energy. He informed the committee that the senate has
included public transportation in its bill, and he encouraged
the House Special Committee on Energy to do so. He expressed
support for the amendment offered by Representative Petersen to
include public transportation as part of the overall dialog.
4:29:26 PM
CHRIS ROSE, Executive Director, Renewable Energy Alaska Project
(REAP), said that he participated with the stakeholders group
that worked on the proposed legislation. Today, however, he is
representing REAP in support of the bill. A state energy policy
is necessary to set the broad framework on how the state makes
its energy decisions. Although there are plenty of energy
programs and projects in place around the state, there needs to
be a policy to provide a framework and a long-term vision. He
opined the language of the bill looks at the influence on the
state from around the world, such as the increasing price of
fossil fuels, and the growth of the clean energy industry. Mr.
Rose stressed that the emphasis on energy efficiency in the bill
is very important and makes economic sense. His organization
also supports the emphasis on renewable energy. Upon review of
the bill by the REAP policy committee, the policy committee felt
that REAP should be neutral on parts of the bill that do not
support its mission- increasing the production of renewable
energy and promoting energy efficiency-but other parts such as
workforce development, education campaigns, and the streamlining
of governmental functions, pertain to REAP's mission statement.
4:33:08 PM
BILL POPP, President and CEO, Anchorage Economic Development
Corporation (AEDC), said that he was a member of the
stakeholders group and thanked all of those who contributed to
the formation of the bill. He agreed with Mr. Rose, and added
that it is vital for the state to bring forward an energy policy
that addresses the basis on energy for the state in the coming
decade. Without such a policy, the state will "clunk along"
with some successful individual projects that may not be in line
with a broader vision and a set of goals. He expressed his
concern that without a basis for the process, decisions are made
about the allocation of resources that may not fit the state's
longer term goals, whether for renewable or nonrenewable
projects. In the past, Alaska has faced challenges in choosing
projects that should go forward, and others that should not.
Mr. Popp opined that this policy recognizes that, although
renewable energy is a part of our future and will make a
difference especially in rural areas, the state economy is based
on non-renewable resource extraction and will be for many
decades. He strongly urged the passage of HB 306.
4:36:15 PM
REPRESENTATIVE TUCK asked whether Mr. Popp supports the
workforce development portion of the bill.
4:36:31 PM
MR. POPP confirmed that a strong vital workforce is necessary to
support the building, operation, and maintenance of energy
infrastructure of all types. In addition, a good, well-thought-
out investment in energy infrastructure workforce training is
very important and the policy is a first step toward gaining
that investment.
4:36:57 PM
CAITLIN HIGGINS, Executive Director, Alaska Conservation
Alliance, stated that the Alaska Conservation Alliance and its
40 member organizations, representing 38,000 Alaskans, wishes to
applaud the committee on its strong leadership and hard work on
these issues. The committee's commitment to the creation of an
overarching policy to guide related energy decisions is
encouraging. As a member of the stakeholder group, Ms. Higgins
thanked the co-chairs for the opportunity to participate in the
process, and the other members for their contributions. The
proposed legislation will put Alaska on an economically stable
and sustainable path to the future that is supported by the
conservation community. The alliance strongly supports the
provisions in the bill that focus on energy efficiency first,
and it encourages the establishment of statewide energy
efficiency codes, decreased energy use in public buildings
through efficiency, and the education of the public on energy
efficiency. In fact, this support is so strong that the
alliance commissioned a report that shows how the Railbelt can
reach a goal for energy efficiency-perhaps as high as 50
percent-by 2025. The Railbelt Electricity Efficiency Landscape
(REEL In Alaska roadmap) results will be issued soon and will
support efforts to set aggressive energy efficiency goals that
encourage the state and its citizens, businesses, and industry
to strive to be as energy efficient as possible. Ms. Higgins
recalled that everyone in the stakeholders group and the
committee share an interest in promoting and incentivizing
energy efficiency so that Alaska can benefit from this clean,
cheap, and simple way to meet its energy needs. Although the
alliance supports the inclusion of goals for energy efficiency
in the proposed policy, it encouraged the committee to place
these goals in codified language. She opined placing all of
these goals in codified statute will increase the likelihood
that the goals will be met. The alliance also supports the
inclusion of provisions encouraging renewable energy
development, because such development will help the state secure
its energy future. Lastly, the alliance supports the provisions
encouraging training and research, emerging technology research
and development in the field of renewable energy, and the
coordination of state entities focused on energy. On behalf of
the Alaska Conservation Alliance, she encouraged the passage of
HB 306 during 2010.
4:42:40 PM
REPRESENTATIVE JOHANSEN observed that the Alaska Conservation
Alliance has a membership of 40 groups. He asked which members
were based in Southeast.
4:43:14 PM
MS. HIGGINS said those groups would include the Sitka
Conservation Society, Lynn Canal Conservation, the Southeast
Alaska Conservation Council (SEACC), and others. In further
response to Representative Johansen, she said the Tongass
Conservation Society is no longer a member.
4:43:58 PM
REPRESENTATIVE JOHANSEN agreed with Ms. Higgins' support of HB
306. He advised that to achieve goals that the alliance, and
he, support such as the 50 percent [of electric generation from
renewable energy sources by 2025], choices have to be made. For
example, during construction of the intertie between Wrangell
and Ketchikan, the price was accelerated by litigation brought
by groups like SEACC. He remarked:
I'm hoping that your organizations, at some point, are
going to make a choice between litigating access
corridors, because you have to cut down a renewable
tree, versus cheap and affordable energy. And I hope
that conversation is going on within your groups ...
But it's a real challenge to transmission, and I hope
we all understand that that's going to be a question
that's going to come up. At what point do you make a
choice between cheap and renewable energy and allowing
the corridors to go through?
4:45:30 PM
CO-CHAIR EDGMON closed public testimony.
4:46:35 PM
REPRESENTATIVE TUCK moved to adopt Amendment 3 to HB 306.
CO-CHAIR EDGMON objected for the purpose of discussion.
4:47:09 PM
REPRESENTATIVE TUCK stated that the intent of the amendment is
to ensure that workforce development is a priority. The
amendment read:
Page 3, line 2, following "programs":
Insert "that will help create jobs for
Alaskans and"
4:47:45 PM
CO-CHAIR EDGMON removed his objection. Hearing no further
objection, Amendment 3 was adopted.
4:48:06 PM
REPRESENTATIVE PETERSEN moved Amendment 1.
4:48:17 PM
CO-CHAIR EDGMON objected for purposes of discussion.
4:48:23 PM
REPRESENTATIVE PETERSEN informed the committee that this
amendment adds a new subparagraph which read:
Page 2, following line 18:
Insert a new subparagraph to read:
"(D) encouraging
the use of public
transportation and
assisting communities in
developing public transportation
options in an effort to decrease
fuel usage by motor vehicles."
REPRESENTATIVE PETERSEN added that this amendment would also
reduce wear and tear on highways.
4:49:01 PM
CO-CHAIR MILLETT recalled previous discussion in the
stakeholders group on this issue. Because the proposed
legislation is statewide policy, participants did not feel it
was appropriate as public transportation is not relevant to
rural communities. She expressed her opposition to Amendment 1.
4:50:00 PM
REPRESENTATIVE DAHLSTROM surmised that "assisting communities"
would obligate the state to fund assistance.
4:5:25 PM
REPRESENTATIVE PETERSEN relayed that in other states public
transportation usually needs a public subsidy until it turns a
profit; for example, in New Mexico the state built a commuter
rail. Public transportation has also been successful in Seattle
and Portland. He pointed out that the proposed policy is a
long-term view of the future and a comprehensive-type of bill,
and encouraged the inclusion of the amendment.
4:52:05 PM
REPRESENTATIVE DAHLSTROM stated that because HB 306 is
comprehensive and statewide, she was reluctant to "give the
perception that we are interested in developing ... public
transportation statewide." She expressed her opposition to
Amendment 1.
4:52:52 PM
REPRESENTATIVE PETERSEN commented that the Alaska Marine Highway
System (AMHS) is subsidized by the state budget every year and
is a form of public transportation.
4:53:09 PM
REPRESENTATIVE JOHANSEN pointed out that the AMHS is the only
transportation system with a fare box; on the other hand, every
road in Alaska is completely subsidized.
4:53:39 PM
REPRESENTATIVE RAMRAS recalled remarks he heard by rural
legislators about inequities and the lack of parity in the
governor's proposed scholarship program; in truth, the lack of
parity between rural and urban regions of the state can be
offensive. He said:
I think [the amendment's] inclusion, frankly even a
vote on amendment 1, incurs the same offense by not
recognizing some of the limitations that we have in
rural Alaska.
4:55:11 PM
CO-CHAIR EDGMON stated his understanding from the stakeholders
group discussions that the policy must be general, statewide,
and uniform in application. He suggested that the amendment is
more appropriate to a plan of action rather than to the
overarching policy.
4:56:07 PM
REPRESENTATIVE TUCK agreed that mass transportation can conserve
energy, as the policy seeks to do; however, the committee does
not want to isolate rural Alaskans, but to provide energy
opportunities for them as well, and he agreed that the
amendment would benefit urban areas.
4:57:44 PM
REPRESENTATIVE PETERSEN withdrew amendment 1.
4:58:12 PM
REPRESENTATIVE PETERSEN moved Amendment 2 which read:
Page 1, line 13, following "projects":
Insert ";
(5) the state remain a leader in
petroleum and natural gas production and become a
leader in renewable energy development;
(6) consumer fuel and electricity
prices in the state be comparable to those prices in
other leading energy producing regions"
CO-CHAIR EDGMON objected for purposes of discussion.
4:58:57 PM
REPRESENTATIVE RAMRAS offered an amendment to Amendment 2, which
was the deletion of lines 5 and 6.
4:59:21 PM
CO-CHAIR EDGMON confirmed that the amendment removed item (6) of
Amendment 2.
4:59:53 PM
CO-CHAIR MILLETT supported lines 3 and 4 of Amendment 2.
5:00:22 PM
REPRESENTATIVE JOHANSEN objected to the amendment to Amendment
2, and stated his support of the amendment to Amendment 2.
5:00:34 PM
REPRESENTATIVE TUCK explained that the purpose of item (6) is to
ensure that the state, with renewable projects, is not "going
backwards in energy savings and cost due the ratepayers, in
exchange of trying to hit some of our targets." As the state
moves to reach its renewable goals, it must not be at the cost
of ratepayers along the way.
5:01:17 PM
CO-CHAIR EDGMON re-stated the efforts of the stakeholders group
to not incorporate statements of subjectivity. He opined lines
5 and 6 of Amendment 2 have an element of interpretation that is
not in alignment with the spirit of the legislation. He
indicated his support for the amendment to Amendment 2.
5:02:07 PM
REPRESENTATIVE JOHANSEN removed his objection to the amendment
to Amendment 2.
5:02:19 PM
CO-CHAIR EDGMON announced that the amendment to Amendment 2 is
adopted.
5:02:25 PM
REPRESENTATIVE RAMRAS concluded that the maker of Amendment 2,
as amended, has captured the intent of much of HB 306.
5:03:38 PM
CO-CHAIR EDGMON removed his objection. Hearing no further
objection, Amendment 2, as amended, was adopted.
5:04:16 PM
CO-CHAIR MILLETT moved Amendment 4.
5:04:21 PM
CO-CHAIR EDGMON objected for purposes of discussion.
5:04:22 PM
CO-CHAIR MILLETT explained Amendment 4 is a technical amendment
to page 3, line 10, deleting "review" and inserting
"regulation".
5:04:48 PM
CO-CHAIR EDGMON removed his objection. Hearing no further
objection, Amendment 4 was adopted.
5:05:13 PM
REPRESENTATIVE JOHANSEN said he is working on an amendment.
5:05:45 PM
CO-CHAIR EDGMON announced HB 306 was held in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 306 Sponsor Statement.pdf |
HENE 1/26/2010 3:00:00 PM HENE 1/28/2010 3:00:00 PM |
HB 306 |
| Energy Policy for Alaska Presentation 01 26 10.pdf |
HENE 1/26/2010 3:00:00 PM HENE 1/28/2010 3:00:00 PM |
HB 306 |
| Energy Committee Agenda 01282010.pdf |
HENE 1/28/2010 3:00:00 PM |
|
| House Special Energy_01_28_10 RCA.pdf |
HENE 1/28/2010 3:00:00 PM |
|
| Amendments for HB306.pdf |
HENE 1/28/2010 3:00:00 PM |
HB 306 |
| Am #3 - HB306.pdf |
HENE 1/28/2010 3:00:00 PM |
HB 306 |