Legislature(2011 - 2012)BARNES 124

02/07/2012 03:00 PM House ENERGY


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 39 RCA UTILITY RATES; REFUND PROCEDURES TELECONFERENCED
Heard & Held
+= HCR 10 ENCOURAGING WASTE-TO-ENERGY TECHNOLOGY TELECONFERENCED
Moved CSHCR 10(ENE) Out of Committee
         HCR 10-ENCOURAGING WASTE-TO-ENERGY TECHNOLOGY                                                                      
                                                                                                                                
3:13:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER announced that the  final order of business would                                                               
be  HOUSE CONCURRENT  RESOLUTION NO.  10, Encouraging  the state,                                                               
municipalities  of the  state, and  private organizations  in the                                                               
state  to  weigh  the  benefits   and  costs  of  waste-to-energy                                                               
technology  and to  consider waste-to-energy  technology to  help                                                               
meet  the  energy  and  waste  management  needs  of  the  state,                                                               
municipalities  of the  state, and  private organizations  in the                                                               
state.                                                                                                                          
                                                                                                                                
3:14:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER moved  to  adopt  the proposed  committee                                                               
substitute (CS)  for HCR  10, Version  27-LS0685\B, Bullock/Kane,                                                               
3/21/11, as the working document.                                                                                               
                                                                                                                                
[Version B was previously adopted  by the House Special Committee                                                               
on Energy at its meeting on 4/5/11.]                                                                                            
                                                                                                                                
3:14:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT  objected for the  purpose of discussion.   There                                                               
being no discussion, he withdrew his objection.                                                                                 
                                                                                                                                
3:14:31 PM                                                                                                                    
                                                                                                                                
There being  no further  objection, the proposed  CS for  HCR 10,                                                               
Version B, was before the committee.                                                                                            
                                                                                                                                
3:14:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETE PETERSEN,  Alaska  State Legislature,  prime                                                               
sponsor, introduced the proposed CS for  HCR 10.  He informed the                                                               
committee  waste-to-energy  technology  is  exciting  because  it                                                               
turns garbage into  energy while reducing the  amount of landfill                                                               
space  needed.   Waste-to-energy  is  a  renewable energy  source                                                               
which  generates between  500  to 600  kilowatt  hours (kWhs)  of                                                               
electricity for  every ton of  garbage burned.  In  addition, two                                                               
megawatt hours (MWhs)  of heat can be captured.   This technology                                                               
is being  used around  the world  and in at  least 24  states; in                                                               
fact, there are  at least 86 waste-to-energy plants  in the U.S.,                                                               
such  as the  one at  Eielson Air  Force Base,  where garbage  is                                                               
being  burned along  with coal.    In Anchorage,  a generator  is                                                               
being built  that will harness  the methane gas created  from the                                                               
landfill.   To harvest energy  from garbage, waste can  be burned                                                               
directly, or  it can be  processed into other substances  such as                                                               
ethanol or  biodiesel.  Waste-to-energy plants  are successful in                                                               
major urban areas and in smaller areas, and in Arctic and sub-                                                                  
Arctic communities.   For example, there is a  generator which is                                                               
being developed  that is the  size of  a large dumpster  and that                                                               
produces  120  kilowatts  (kW) of  electricity.    Representative                                                               
Petersen  opined  recent  advances  in  this  technology  can  be                                                               
employed  in Alaska  in  a cost-effective  manner  for large  and                                                               
small communities that  are trying to lessen  their dependence on                                                               
diesel  fuel.   Another  option for  the  use of  waste-to-energy                                                               
technology  is for  the  generation of  heat  and electricity  in                                                               
remote and  off-grid facilities, in  fact, this type  of facility                                                               
could  save  money  at  the   Goose  Creek  Correctional  Center.                                                               
Representative  Petersen  observed   that  the  statewide  energy                                                               
policy encourages  a diversified approach to  meeting the state's                                                               
energy  needs, and  pointed out  that waste-to-energy  technology                                                               
produces fewer emissions  then dumping waste in  the landfill and                                                               
the   Environmental   Protection    Agency   (EPA)   cites   less                                                               
environmental  impacts than  for  other  sources of  electricity.                                                               
Other  benefits  are  the  ability  to  recover  scrap  metal  by                                                               
magnetic  sorting, financial  savings  to  communities, and  bird                                                               
control.  He encouraged the committee to support the resolution.                                                                
                                                                                                                                
3:21:02 PM                                                                                                                    
                                                                                                                                
DAVID  DUNSMORE, staff  to Representative  Pete Petersen,  Alaska                                                               
State Legislature,  observed there is  a lot of  good information                                                               
on  this   technology  with  which  to   answer  the  committee's                                                               
questions from  the first hearing.   One of the  biggest concerns                                                               
was whether  this technology will  work in an  Arctic environment                                                               
and in  smaller, rural communities.   He referred to  fact sheets                                                               
included  in   the  supplemental   committee  packet   that  gave                                                               
information  on a  facility operating  in Iceland  very near  the                                                               
Arctic Circle which serves a  population of 2,867 and compares to                                                               
the populations of Nome, Dillingham,  and Kotzebue; a facility in                                                               
Norway operating  north of the  Arctic Circle which  serves 8,000                                                               
people; and a facility in  Finland, with a population of 100,000,                                                               
which is near  the population of the Fairbanks metro  area.  Also                                                               
included  in  the packet  is  a  report prepared  by  Legislative                                                               
Research,  Legislative Legal  and Research  Services, Legislative                                                               
Affairs Agency, on the permitting requirements for a waste-to-                                                                  
energy plant  in Alaska.   Many  permits are  required, including                                                               
those from EPA  that are required for a project  on federal land,                                                               
or  built  with  federal  funds.  Typically,  the  Department  of                                                               
Natural Resources  (DNR) assigns someone to  direct applicants to                                                               
the correct divisions  within DNR.  Also, there  are factors that                                                               
affect  the  type  of  permit  required,  and  he  named  several                                                               
departments and divisions  that could be involved.   Mr. Dunsmore                                                               
pointed out that air quality  and solid waste permitting would be                                                               
handled  by  divisions  within the  Department  of  Environmental                                                               
Conservation (DEC),  and the  Division of  Fire and  Life Safety,                                                               
Department of  Public Safety (DPS), is  responsible for approving                                                               
buildings  and  fuel tanks.    Permits  regarding endangered  and                                                               
threatened species  would be issued  by the Alaska  Department of                                                               
Fish & Game (ADFG) and the  U.S. Fish and Wildlife Service (FWS),                                                               
U.S.  Department of  the  Interior.   Other  agencies that  might                                                               
become involved  are the Natural Resources  Conservation Service,                                                               
U.S.  Department  of   Agriculture,  the  Federal  Communications                                                               
Commission  (FCC),  the  Department of  Transportation  &  Public                                                               
Facilities  (DOTPF),  the U.S.  Bureau  of  Tobacco, Alcohol  and                                                               
Firearms, U.S. Department  of Justice, and the  U.S. Coast Guard.                                                               
In response  to the committee's question  regarding whether there                                                               
is support for this technology  from the solid waste industry, he                                                               
said there are supporting documents  in the committee packet from                                                               
the Solid  Waste Association  of North  America and  the American                                                               
Society of Mechanical Engineers.                                                                                                
                                                                                                                                
3:28:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN recalled the City  of Ames, Iowa, has had                                                               
a waste-to-energy  plant since 1975,  and is upgrading  its plant                                                               
to integrate  natural gas.   He cautioned that finding  space for                                                               
landfills is  becoming a  problem, but  this facility  would only                                                               
bury ash.                                                                                                                       
                                                                                                                                
REPRESENTATIVE FOSTER  asked whether the sponsor  has encountered                                                               
resistance to the technology.                                                                                                   
                                                                                                                                
3:30:53 PM                                                                                                                    
                                                                                                                                
MR. DUNSMORE stated there has  been some criticism in large urban                                                               
areas of the  U.S., warning that these  facilities may discourage                                                               
recycling  and composting.   However,  EPA is  supportive because                                                               
waste-to-energy  emissions   are  very  restrictive   -  actually                                                               
greater than  those allowed by  waste decomposing in  a landfill.                                                               
On the other  hand, recycling of metals may  be increased because                                                               
they are more accessible after burning.                                                                                         
                                                                                                                                
3:32:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN  pointed  out  that  in  many  parts  of                                                               
Alaska, it is cost-prohibitive to ship recycled materials out-                                                                  
of-state and it makes more sense to burn them.                                                                                  
                                                                                                                                
3:33:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  PRUITT  noted  that  supporting  documentation  in  the                                                               
committee  packet   indicates  leaving  garbage  in   the  ground                                                               
produces  32   percent  more  carbon   dioxide  (CO2)   than  the                                                               
combustion of  garbage.  He  asked how  EPA will deal  with other                                                               
concerns such  as fine particulates,  trace dioxin, and  acid gas                                                               
emissions.                                                                                                                      
                                                                                                                                
3:35:07 PM                                                                                                                    
                                                                                                                                
MR.  DUNSMORE assured  the committee  EPA has  specific standards                                                               
for the acceptable levels of  pollutants.  He called attention to                                                               
a 2007  EPA memo included  in the original committee  packet that                                                               
documented emissions reductions  from combustion waste facilities                                                               
- during  1990 to  2005 -  of 96 percent  for mercury  levels, 96                                                               
percent  for cadmium,  97 percent  for lead,  and 96  percent for                                                               
particulate matter.                                                                                                             
                                                                                                                                
3:36:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT  surmised toxic particulates are  contained using                                                               
new technology.                                                                                                                 
                                                                                                                                
MR. DUNSMORE confirmed that the  new technology uses "super-heat"                                                               
and regulates  the chemicals  that escape.   Because  more plants                                                               
have come into operation, agencies  "know what issues to consider                                                               
when permitting  for these plants."   In further response  to Co-                                                               
Chair  Pruitt,   he  expressed  his  belief   that  after  direct                                                               
combustion the ash  is buried subject to  the normal restrictions                                                               
of the  landfill.  He opined  "landfills are designed to  be able                                                               
to contain ... elements of ... those sort of chemicals."                                                                        
                                                                                                                                
3:37:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN  added that  as of  2005, waste-to-energy                                                               
facilities have  complied with the  Clean Air Act,  reducing some                                                               
pollutants  as much  as  99 percent.    Regarding permitting,  he                                                               
observed the  permitting requirements  would be similar  to those                                                               
of a facility generating electricity from natural gas.                                                                          
                                                                                                                                
3:40:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT  asked whether the  operators of  existing plants                                                               
work  to control  the  content  of the  trash,  or if  everything                                                               
burns, including toxic materials.                                                                                               
                                                                                                                                
MR.   DUNSMORE  explained   that  the   facilities  use   several                                                               
techniques to sort the garbage  for the distillation necessary to                                                               
create  ethanol  or biodiesel.    For  direct combustion  plants,                                                               
there  are special  containment  areas so  everything is  burned.                                                               
However, biomedical waste needs special  permitting to burn.  The                                                               
containment chamber must be very  secure because of the high heat                                                               
generated during the  process.  The plants in  Iceland and Norway                                                               
are very automated.                                                                                                             
                                                                                                                                
3:44:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked for  confirmation that waste heat is                                                               
considered renewable.                                                                                                           
                                                                                                                                
MR. DUNSMORE said waste heat  is considered a biomass technology.                                                               
However,  at  Eielson  Air  Force Base,  where  waste  energy  is                                                               
supplemented  by burning  coal, it  is not  considered renewable.                                                               
In further response  to Representative Saddler, he  said the most                                                               
efficient  method to  turn waste  into  energy is  by a  landfill                                                               
large  enough  to burn  with  only  the  methane created  by  the                                                               
garbage, as  will be  the case at  the Municipality  of Anchorage                                                               
Regional Landfill.   Again,  on a  large scale,  gasification and                                                               
distillation can be more efficient,  but on a smaller scale, fuel                                                               
must be added to keep the combustion going.                                                                                     
                                                                                                                                
REPRESENTATIVE  SADDLER   asked  whether   there  had   been  any                                                               
reactions to the resolution at this point.                                                                                      
                                                                                                                                
3:47:25 PM                                                                                                                    
                                                                                                                                
MR. DUNSMORE said no adverse reactions have been received.                                                                      
                                                                                                                                
REPRESENTATIVE  PETERSEN noted  that  in rural  areas during  the                                                               
winter the  hot air or water  created by one of  these facilities                                                               
could be used to heat buildings nearby.                                                                                         
                                                                                                                                
3:48:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FOSTER  surmised  that Norway  and  Iceland  have                                                               
other sources  of cheap fuel  such as thermal  and hydroelectric.                                                               
He questioned  whether there are challenges  to implementing this                                                               
technology in rural Alaska.                                                                                                     
                                                                                                                                
REPRESENTATIVE PETERSEN  responded that one of  the advantages to                                                               
this system is that it will displace  the use of diesel fuel.  In                                                               
addition, wind  energy can be  integrated into the  system, which                                                               
is an advantage for rural areas.                                                                                                
                                                                                                                                
3:50:34 PM                                                                                                                    
                                                                                                                                
MR.  DUNSMORE  acknowledged  that  there are  the  challenges  of                                                               
construction  in  rural  areas  such  as  shipping  expense,  the                                                               
training and hiring of a  workforce, and the availability of land                                                               
- challenges  that are present  with any project in  rural areas.                                                               
Returning  to  the question  of  permitting,  he added  that  the                                                               
Regulatory   Commission  of   Alaska   (RCA)   would  require   a                                                               
Certificate  of   Public  Convenience   and  Necessity   for  any                                                               
electrical generation project.                                                                                                  
                                                                                                                                
3:52:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN mentioned  that scaled-down  versions of                                                               
these  plants that  will  fit in  a  Continental Express  (CONEX)                                                               
container for shipping by barge or truck are being developed.                                                                   
                                                                                                                                
REPRESENTATIVE  FOSTER asked  for cost  estimates on  any of  the                                                               
facilities.                                                                                                                     
                                                                                                                                
3:53:06 PM                                                                                                                    
                                                                                                                                
MR.  DUNSMORE said  a large  facility being  built in  Florida is                                                               
expected  to cost  $650  million.   He said  he  will advise  the                                                               
committee about  costs on smaller  projects; however,  the "CONEX                                                               
size" is still in the development phase.                                                                                        
                                                                                                                                
REPRESENTATIVE PETERSEN advised that  an interested community may                                                               
qualify for a renewable energy grant  to defray some of the cost.                                                               
He then informed Co-Chair Foster  that public testimony was taken                                                               
at the last hearing.                                                                                                            
                                                                                                                                
3:56:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked whether the change  in the proposed                                                               
CS was due to a typographical error.                                                                                            
                                                                                                                                
REPRESENTATIVE PETERSEN said yes.                                                                                               
                                                                                                                                
MR.  DUNSMORE, in  answer to  a previous  question, said  a plant                                                               
built in  1988 in Portland,  Maine, which processes  175,000 tons                                                               
of waste  per year and  produces 100,000 MWhs annually,  cost $93                                                               
million to build.  He stated that  would be of a scale similar to                                                               
an urban Alaska community.                                                                                                      
                                                                                                                                
3:58:11 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  PRUITT said  a supporting  document indicated  that the                                                               
Eielson Air Force  Base plant produces .2 MW of  power.  He asked                                                               
for an  estimate of how  much energy a  plant would produce  in a                                                               
community such as Nome.                                                                                                         
                                                                                                                                
MR.  DUNSMORE  estimated  that  generally  each  ton  of  garbage                                                               
produces between 500 and 600 kWhs and up to 2 MWhs of heat.                                                                     
                                                                                                                                
REPRESENTATIVE PETERSEN  pointed out  that for Nome,  which burns                                                               
"tens  of   thousands  of  gallons  of   diesel  fuel  generating                                                               
electricity"  every gallon  that is  displaced would  save money.                                                               
Furthermore,  construction of  the facilities  can be  bonded and                                                               
paid for over  time, as in the case of  the Anchorage plant which                                                               
is costing $90 million to $100 million.                                                                                         
                                                                                                                                
4:01:08 PM                                                                                                                    
                                                                                                                                
MR. DUNSMORE  provided U.S. Department of  Energy general average                                                               
cost  estimates for  levelized cost-of-power  for a  plant coming                                                               
on-line  in  2016:    $112.50  per MWh  for  power  generated  by                                                               
biomass;  $86.40 per  MWh for  power generated  by hydroelectric;                                                               
$124.50 per MWh  for combustion turbine natural  gas; and $136.20                                                               
per MWh for carbon capture coal.                                                                                                
                                                                                                                                
REPRESENTATIVE SADDLER  moved to  report CS  for HCR  10, Version                                                               
27-LS0685\B,  Bullock/Kane,   3/21/11,  out  of   committee  with                                                               
individual  recommendations  and  the  accompanying  zero  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
4:02:47 PM                                                                                                                    
                                                                                                                                
There being no  objection, CSHCR 10(ENE) was reported  out of the                                                               
House Special Committee on Energy.                                                                                              

Document Name Date/Time Subjects
HCR 10 - 01 Bill Packet Table of Contents by Bill Sponsor.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 02 Original Resolution, Version M.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 03 Sponsor Statement.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 04 Draft CSHCR 10, Version B.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 05 Summary of Changes, Original versus Version B.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 07 U-S Environmental Protection Agency memo on municipal waste combustion emissions, 10 August 2007.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 09 Wikipedia article on waste-to-energy.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 08 American Society of Mechanical Engineers paper on waste-to-energy.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 10 Energy Recovery Council letter of support, 22 March 2011.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 06 2010 Energy Recovery Council Directory of Waste-to-Energy Plants.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 11 Fiscal Note HCR10-LEG-COU-04-04-2011.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 Supporting Documents- Envikraft Case Study Isafjördur Iceland.pdf HENE 2/7/2012 3:00:00 PM
HCR 10 Supporting Documents- Envikraft Case Study Senja Norway.pdf HENE 2/7/2012 3:00:00 PM
HCR 10 Supporting Documents- Legislative Research report- permits for WTE plants in Alaska.pdf HENE 2/7/2012 3:00:00 PM
HCR 10 Supporting Documents- Nordic Investment Bank article.pdf HENE 2/7/2012 3:00:00 PM
HCR 10 Supporting Documents- SWANA whitepaper.pdf HENE 2/7/2012 3:00:00 PM