Legislature(2009 - 2010)
04/09/2010 04:42 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB63 | |
| SB172 | |
| SB184 | |
| SB220 | |
| SB230 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 220
"An Act declaring a state energy policy; relating to
energy efficiency and alternative energy; establishing
the energy efficiency grant fund, an emerging energy
technology fund, a renewable energy production tax
credit, and an energy use index; and relating to a
fuel purchasing cooperative, to energy codes and
efficiency standards, to energy conservation targets
in public buildings, to a state agency energy use
reduction plan, to the alternative energy revolving
loan fund, and to the renewable energy grant fund."
Co-Chair Stedman noted that this was the second hearing.
Co-Chair Hoffman MOVED to ADOPT the work draft to SB 220,
labeled 26-LS1197\B, Kane, 4/8/10, as the work document
before the committee.
Co-Chair Stedman OBJECTED.
4:50:47 PM
DARWIN PETERSON, STAFF, CO-CHAIR STEDMAN, spoke of multiple
changes in the CS. The new CS removes the legislative
policy section that was found in Section 2 of the previous
version. He referred to page 7 where previous Sections 11
and 12 were removed. These sections required the
administration to consider using alternative energy systems
in the construction of public facilities and when
purchasing equipment that uses energy. These sections were
removed by the request of the administration because this
work is already being done.
Mr. Peterson addressed Section 10 on page 9, a new section
which refers to the contractual agreements between the
state and a lessee of state land. If the lessee is a public
utility engaged in the production of renewable energy, the
state may not negotiate an increased lease rate based on
percentage of gross revenue from a renewable energy source.
Section 11, page 9, creates a Southeast Energy Fund.
Subsection 5 on lines 21 and 22 of page 9 is new language
making the Department of Revenue the fiduciary of the fund.
Subsection (c) was amended to specify that only
municipalities, joint action agencies, or member-owned
electric cooperatives are eligible to receive grants from
this fund. Grants can only be used to finance hydroelectric
projects or electric transmission lines and they must be
wholly owned by the grantee.
Mr. Peterson reported that the last change in this section
is on page 10, line 1. The previous version required grant
money to lapse back into the fund if on-going work to the
project had not begun within 5 years. This change bumps
that up to 7 years.
4:53:03 PM
Mr. Peterson highlighted the removal of Sections 15 and 16
from the previous CS. These sections reference the existing
renewable energy fund and cause concern that it would have
shifted the focus of the program to projects in urban areas
with better economies of scale. Section 17 of the previous
version of the bill would have added a new section to
AS.42.45 requiring the Alaska Energy Authority (AEA) to
facilitate the organization of a statewide purchasing
cooperative. That section has been deleted in the new CS at
the request of the administration due to concerns about the
state's involvement in private sector competition.
Furthermore, nothing in statute prevents AEA from providing
technical assistance if requested.
Mr. Peterson continued to detail changes to the CS. There
are changes in Section 12, page 10, the Emerging Energy
Technology Fund, beginning with the first sentence. The
language "in order to promote the expansion of energy
sources available to Alaskans" was added. The second change
is found on lines 16-22 on page 10. The new language
narrows the focus of what the grants can be used for.
Grants can only be awarded for demonstration projects of
technologies that have a reasonable expectation of being
commercially viable within 5 years and are designed to test
emerging technology and prove existing technology, or
deploy existing technology that has not been previously
demonstrated in the state. The reason for the change is
because the purpose of the fund is to test and deploy
equipment, not to support theoretical research or studies
that don't result in demonstration projects.
Mr. Peterson turned to the third change in Section 12,
found on page 11, lines 1 and 2. The CS instructs the
university to provide data acquisition and analysis of
projects to the advisory committee. The fourth change is
the deletion of subsection (f) from the previous version.
That section was old language taken from the now-defunct
Alaska Science and Technology Foundation. It was
appropriate for a grant that funds basic research that is
high risk to investors. Now the program excludes these
projects and the subsection no longer applies. The fifth
change is found on page 11 of Section 12, subsection (i),
lines 27 and 28. This new language states that members of
the advisory committee cannot award themselves grants from
the fund. The last change in this section is an addition of
a four-year sunset date on page 18, Section 25.
4:56:11 PM
Mr. Peterson pointed out that Sections 20, 21, and 51 have
been deleted from the previous version of the bill. They
would have created the renewable energy tax credit, which
requires more in-depth analysis. Section 23 has been
deleted. It would have required the state to retro-fit at
least 25 percent of all public facilities by 2020. At the
request of the administration, it was removed because the
state is currently in the process of accomplishing this
goal. Section 24 has also been deleted. It would have
required AEA to conduct a public education campaign on
energy efficiency. It was removed because AEA is already
planning on doing this type of outreach.
Mr. Peterson continued to explain that Sections 26-33 have
also been deleted. These sections would have amended the
Alternative Energy Revolving Loan Fund to provide loans to
owners of commercial buildings for energy efficiency
improvements. The administration suggested this particular
loan fund has not been active since 1987 and would require
a thorough review before implementing.
Mr. Peterson related that Sections 26-28, beginning at the
bottom of page 18, have been amended. Now, the Office of
Management and Budget, the Office of the Governor, and the
Department of Transportation will have sufficient time to
develop their required reports. The due dates for the
reports are now January 31, 2011. Also in Section 27, the
CS instructs the governor's energy report to include an
examination of the powers, duties, and structure of AEA and
the Alaska Industrial Development and Export Authority
(AIDEA). The intent is to help the legislature decide
whether or not AEA and AIDEA could be more effective if
they had separate boards of directors.
Mr. Peterson reported that the CS has a new Section 30,
found on page 21, which asks the Department of Revenue to
submit a report to the legislature on January 31, 2011 with
recommendations regarding the feasibility of a municipal
energy improvements financing program. Sections 31 and 32
are also new sections. Section 31 gives the Department of
Health and Social Services the authority to adopt
transitional regulations. Section 32 instructs the
department to replace the name "Alaska Heating Assistance
Program" with "Alaska Affordable Heating Program". The new
CS has an amended title to reflect the changes.
4:59:31 PM
Co-Chair Stedman WITHDREW his OBJECTION to adopting Version
B. There being NO further OBJECTION, it was so ordered.
Co-Chair Stedman noted nine fiscal notes, some of which
have to be amended or deleted.
SENATOR LESIL MCGUIRE, SPONSOR, thanked the committee and
their staff for their work. She termed the bill a work in
progress and called it a good start. It is the first energy
policy put forth in the state of Alaska. There are
provisions in the bill representing suggestions from
Alaskans statewide. She commended the Senate and the bi-
partisan working group for addressing the issue.
SENATOR BILL WIELECHOWSKI, SPONSOR, noted that the bill had
been pared back quite a bit. He said that he was looking
forward to passage of the bill in the Senate.
5:02:25 PM
Co-Chair Stedman recalled the history of working on the
state energy policy. Quite a few Senators have participated
in this legislation and have traveled to various areas of
the state. It is one of several pieces of legislation. He
spoke of the next step to achieve the outcome. He thanked
the sponsors.
Senator McGuire thanked her staff and others who worked on
the bill. Senator Wielechowski added his thanks to the
administration.
5:04:18 PM
Co-Chair Hoffman MOVED to REPORT CSSB 220 (FIN) from
Committee with individual recommendations and the attached
fiscal notes. There being NO OBJECTION, it was so ordered.
CSSB 220 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with zero FN 3 DEC, indeterminate
FN 6 DHS, two new fiscal notes by the Department of
Commerce, Community, and Economic Development, two new zero
fiscal notes by the Department of Revenue, a new zero
fiscal note by the Administration, and a new fiscal note by
the Department of Transportation and Public Facilities.
AT-EASE 5:04:52 PM
RECONVENED 5:17:01 PM
| Document Name | Date/Time | Subjects |
|---|