Legislature(2023 - 2024)BARNES 124

04/08/2024 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 309 DELEGATION OF ROUTINE OPTOMETRY SERVICES TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 394 RCA REGULATE NATURAL GAS STORAGE FACILITY TELECONFERENCED
Scheduled but Not Heard
+ HB 187 PRIOR AUTH EXEMPT FOR HEALTH PROVIDERS TELECONFERENCED
<Pending Referral>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 378 ORG. RETAIL THEFT/FUND;MKTPLACE SALES TAX TELECONFERENCED
<Bill Hearing Canceled>
+= HB 313 PUBLIC UTILITY REGULATORY COST CHARGE TELECONFERENCED
Heard & Held
+= HB 55 EXTEND WORKFORCE INVEST BOARD ALLOCATIONS TELECONFERENCED
Moved HB 55 Out of Committee
+= SB 147 WORKERS' COMP.; EXTND SR BENEFITS PAYMENT TELECONFERENCED
Heard & Held
          HB 313-PUBLIC UTILITY REGULATORY COST CHARGE                                                                      
                                                                                                                                
3:36:05 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the next order of  business would be                                                               
HOUSE BILL  NO. 313, "An Act  relating to the calculation  of the                                                               
regulatory  cost   charge  for  public  utilities   and  pipeline                                                               
carriers; and providing for an effective date."                                                                                 
                                                                                                                                
3:36:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS moved to adopt Amendment 1 to HB 313,                                                                     
labeled 33-GH2516\A.1, Walsh, 3/30/24, which read:                                                                              
                                                                                                                                
     Page 1, line 2, following "carriers;":                                                                                   
          Insert "relating to preapproval for construction                                                                    
     of energy facilities;"                                                                                                   
                                                                                                                                
     Page 2, following line 4:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Sec. 2.  AS 42.05 is amended by adding a new                                                                     
     section to read:                                                                                                           
          Sec. 42.05.705. Preapproval for construction of                                                                     
        energy facility. The commission may not require                                                                       
     preapproval under this chapter for construction of an                                                                      
     energy facility that is                                                                                                    
               (1)  an electric power generating plant or                                                                       
     combination of plants at a single site with a combined                                                                     
     capacity of less than 15,000 kilowatts; or                                                                                 
               (2)  an energy storage device or combination                                                                     
      of devices at a single site with a combined capacity                                                                      
     of less than 15,000 kilowatts."                                                                                            
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE SADDLER objected.                                                                                                
                                                                                                                                
3:36:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS explained  that Amendment  1 would  exempt                                                               
smaller   projects   from    regulation   to   expedite   project                                                               
construction by stating that the  Regulatory Commission of Alaska                                                               
(RCA)  may  not  require  preapproval   under  this  chapter  for                                                               
construction of  an energy facility  that generates  15 megawatts                                                               
(MW) or less.                                                                                                                   
                                                                                                                                
3:37:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX said a 15 MW  project is a "fairly good size"                                                               
project.   He asked  whether Representative  Fields was  privy to                                                               
the  concerns raised  by the  House Special  Committee on  Energy                                                               
hearings  several   years  ago  about  utilities   becoming  over                                                               
capitalized.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS contended  that's  15 MW  is considered  a                                                               
small, community scale project.  He  added that it would be up to                                                               
the  Alaska Railbelt  Reliability Council  (RRC) and  the RCA  to                                                               
consider whether  it makes sense  to invest a  significant amount                                                               
of capital and distribute it across rate payers.                                                                                
                                                                                                                                
3:39:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SADDLER   opined   that   exempting   generating                                                               
facilities of any  size from the RCA is a  question that would be                                                               
better considered on its own merit.   For that reason, he said he                                                               
would oppose Amendment 1.                                                                                                       
                                                                                                                                
REPRESENTATIVE  SUMNER  shared  his   belief  that  the  proposed                                                               
amendment is  pertinent because  the RCA had  said, "We  have too                                                               
much work, we need more money."                                                                                                 
                                                                                                                                
3:40:20 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Carrick, Fields,                                                               
Prax,  Ruffridge,  and Sumner  voted  in  favor of  Amendment  1.                                                               
Representatives Saddler and Wright  voted against it.  Therefore,                                                               
Amendment 1 was adopted by a vote of 5-2.                                                                                       
                                                                                                                                
3:40:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SUMNER moved  to  adopt Amendment  2  to HB  313,                                                               
labeled 33-GH2516\A.2, Walsh, 4/4/24, which read:                                                                               
                                                                                                                                
     Page 1, line 1, following "Act":                                                                                         
          Insert "relating to the qualifications for                                                                          
     commissioners of the Regulatory Commission of Alaska;"                                                                   
                                                                                                                                
     Page 1, following line 3:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Section 1. AS 42.04.020(a) is amended to read:                                                                 
          (a)       The   commission   consists    of   five                                                                    
     commissioners appointed  by the governor  and confirmed                                                                    
     by  the legislature  in joint  session. To  qualify for                                                                    
     appointment  as  a commissioner,  a  person  must be  a                                                                    
     member in  good standing of the  Alaska Bar Association                                                                    
     or  have  a  degree   from  an  accredited  college  or                                                                    
     university  with  a   major  in  engineering,  finance,                                                                    
     economics,  accounting,   business  administration,  or                                                                    
     public  administration  and  must have  at  least  five                                                                
     years  of actual  experience in  utility regulation  or                                                                
     utility management. [ACTUAL EXPERIENCE  FOR A PERIOD OF                                                                
     FIVE YEARS  IN THE PRACTICE OF  LAW OR IN THE  FIELD OF                                                                    
     ENGINEERING,  FINANCE, ECONOMICS,  ACCOUNTING, BUSINESS                                                                    
     ADMINISTRATION, OR PUBLIC  ADMINISTRATION IS EQUIVALENT                                                                    
     TO A DEGREE.]"                                                                                                             
                                                                                                                                
     Page 1, line 4:                                                                                                            
          Delete "Section 1"                                                                                                  
          Insert "Sec. 2"                                                                                                     
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, following line 13:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "*  Sec.  4. Section  1  of  this Act  takes  effect                                                                
     July 1, 2024."                                                                                                             
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 2, line 14:                                                                                                           
          Delete "This"                                                                                                         
          Insert "Except as provided in sec. 4 of this Act,                                                                     
     this"                                                                                                                      
                                                                                                                                
REPRESENTATIVE PRAX objected for purposes of discussion.                                                                        
                                                                                                                                
3:41:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER said Amendment 2 addresses the experience                                                                 
required by commissioners, which was requested by another member                                                                
of the legislature.                                                                                                             
                                                                                                                                
REPRESENTATIVE SADDLER asked which legislator made this request.                                                                
                                                                                                                                
REPRESENTATIVE SUMNER answered Representative Cronk.                                                                            
                                                                                                                                
3:41:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX   said  he   understand  the   logic  behind                                                               
Amendment 2, but he expressed  concern about imposing a difficult                                                               
condition on the RCA.                                                                                                           
                                                                                                                                
REPRESENTATIVE  FIELDS  said   he  shares  Representative  Prax's                                                               
perspective.    He added  that  he  supports  the goal,  but  the                                                               
language may be too exclusive.                                                                                                  
                                                                                                                                
REPRESENTATIVE RUFFRIDGE asked whether  anyone from the RCA could                                                               
say how many of the current  commissioners would have met this at                                                               
the time of their appointment.                                                                                                  
                                                                                                                                
3:42:47 PM                                                                                                                    
                                                                                                                                
ROBERT  DOYLE,  Chair,  Regulatory Commission  of  Alaska  (RCA),                                                               
opined  that  the  proposed amendment  would  narrow  the  field;                                                               
nonetheless, he said this would be a policy decision.                                                                           
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  restated his question, asking  how many                                                               
current members of  the RCA would have met this  requirement.  In                                                               
addition,  he   asked  whether  members  serving   on  boards  of                                                               
utilities could be another source to recruit from.                                                                              
                                                                                                                                
MR.  DOYLE  said he  served  on  a board  for  12  years at  MEA;                                                               
however, that doesn't  equate to 5 years of  actual experience in                                                               
utility  regulation or  management.   He shared  his belief  that                                                               
none  of the  current commissioners  would  have had  5 years  of                                                               
experience in utility management and/or regulation.                                                                             
                                                                                                                                
3:45:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER moved Conceptual  Amendment 1 to Amendment                                                               
2, which  would insert a  period after the  word "administration"                                                               
on page 1, line 13, and  strike the remaining language until line                                                               
18.                                                                                                                             
                                                                                                                                
REPRESENTATIVE CARRICK objected.                                                                                                
                                                                                                                                
3:45:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER said he thinks  there is some concern that                                                               
the equivalence standard could be interpreted generously.                                                                       
                                                                                                                                
CHAIR  SUMNER interjected  to note  that the  proposed conceptual                                                               
amendment may not accomplish  Representative Saddler's intent, as                                                               
it strikes  the bracketed language, thereby  reinserting into the                                                               
bill.                                                                                                                           
                                                                                                                                
3:46:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER restated the  motion.  He moved Conceptual                                                               
Amendment 1  to Amendment  2, which would  insert a  period after                                                               
the  word "administration"  on page  1, line  13, and  delete the                                                               
words "and must have at least  five years of actual experience in                                                               
utility regulation or utility management."                                                                                      
                                                                                                                                
REPRESENTATIVE  CARRICK  questioned  the  definition  of  "actual                                                               
experience" and how it would differ from "experience."                                                                          
                                                                                                                                
MR. DOYLE said that there is  no specific definition, but to him,                                                               
it  would  mean a  full-time  position  for  5 years  in  utility                                                               
regulation  at  the  RCA  or   utility  management  at  Matanuska                                                               
Electric  Association  (MEA),  Chugach Electric  Association,  or                                                               
ENSTAR Natural Gas Company, for example.                                                                                        
                                                                                                                                
3:50:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE sought  to confirm  that if  Conceptual                                                               
Amendment 1 were to pass, a  commissioner on the RCA would need a                                                               
degree and  no experience would  ever amount to  that equivalent.                                                               
He asked whether that is accurate.                                                                                              
                                                                                                                                
REPRESENTATIVE  SADDLER said  that  is the  effect of  Conceptual                                                               
Amendment  1.    He  said  it would  be  his  preference  that  a                                                               
candidate would  have a  couple years of  experience in  the work                                                               
world,  but his  concern is  not  to raise  the bar  too high  to                                                               
require five years of actual  experience in utility regulation or                                                               
management.                                                                                                                     
                                                                                                                                
CHAIR SUMNER  guessed that  Representative Cronk's  intention was                                                               
for  people  on  the  RCA  board to  have  more  experience  with                                                               
regulation  of  utilities.    He  added  that  should  Conceptual                                                               
Amendment  1  to  Amendment  2 pass,  he  would  likely  withdraw                                                               
Amendment 2.                                                                                                                    
                                                                                                                                
3:52:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER   withdrew  Conceptual  Amendment   1  to                                                               
Amendment 2.                                                                                                                    
                                                                                                                                
3:52:29 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER withdrew Amendment 2.   He announced that HB 313, as                                                               
amended would be held over.                                                                                                     
                                                                                                                                

Document Name Date/Time Subjects
HB 309 presentation.pdf HL&C 4/8/2024 3:15:00 PM
HB 309
HB 309- support as of 4.724.pdf HL&C 4/8/2024 3:15:00 PM
HB 309
HB 309 AAO Letter_AK_House Labor & Commerce.pdf HL&C 4/8/2024 3:15:00 PM
HB 309
HB 309 Sectional Analysis.pdf HL&C 4/8/2024 3:15:00 PM
HB 309
HB 309 Sponsor Statement.pdf HL&C 4/8/2024 3:15:00 PM
HB 309
HB 309 fiscal note DCCED_Coprs,Businesses, Prof licensing as of 3.15.24.pdf HL&C 4/8/2024 3:15:00 PM
HB 309
HB 309- Memo regarding Delegation Authority.pdf HL&C 4/8/2024 3:15:00 PM
HB 309
HB226 Version U (CS for HLC).pdf HL&C 4/8/2024 3:15:00 PM
HB 226
HB226 Explanation of Changes Ver. S to Ver. U.pdf HL&C 4/8/2024 3:15:00 PM
HB 226