Legislature(2015 - 2016)BELTZ 105 (TSBldg)

03/31/2016 03:30 PM SPECIAL CMTE ON ENERGY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
-- Location Change --
+= SB 192 AIDEA BONDS, LOANS, FUND; AEA LOAN TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+= SB 193 EXTEND EXEMPTION FOR SMALL POWER PLANTS TELECONFERENCED
Moved CSSB 193(NRG) Out of Committee
-- Public Testimony --
+ HB 143 AIDEA BONDS: SWEETHEART CREEK HYDRO PROJ. TELECONFERENCED
Moved CSHB 143(FIN) Out of Committee
-- Public Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
               SENATE SPECIAL COMMITTEE ON ENERGY                                                                             
                         March 31, 2016                                                                                         
                           3:37 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Peter Micciche, Co-Chair                                                                                                
Senator Lyman Hoffman                                                                                                           
Senator Dennis Egan                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Bert Stedman                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 143(FIN)                                                                                
"An Act authorizing the Alaska  Industrial Development and Export                                                               
Authority  to  issue  bonds to  finance  the  infrastructure  and                                                               
construction   costs  of   the   Sweetheart  Lake   hydroelectric                                                               
project."                                                                                                                       
                                                                                                                                
     - MOVED CSHB 143(FIN) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 193                                                                                                             
"An Act extending the exemption from regulation by the                                                                          
Regulatory Commission of Alaska for certain facilities or plants                                                                
generating energy from renewable energy resources."                                                                             
                                                                                                                                
     - MOVED CSSB 193(NRG) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 143                                                                                                                  
SHORT TITLE: AIDEA BONDS, LOANS, FUND; AEA LOAN                                                                                 
SPONSOR(s): REPRESENTATIVE(s) MUNOZ                                                                                             
                                                                                                                                
03/09/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/09/15       (H)       FIN                                                                                                    
03/31/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/31/15       (H)       Heard & Held                                                                                           
03/31/15       (H)       MINUTE(FIN)                                                                                            
03/22/16       (H)       FIN AT 9:30 AM HOUSE FINANCE 519                                                                       
03/22/16       (H)       Scheduled but Not Heard                                                                                
03/22/16       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/22/16       (H)       Moved CSHB 143(FIN) Out of Committee                                                                   
03/22/16       (H)       MINUTE(FIN)                                                                                            
03/23/16       (H)       FIN RPT CS(FIN) NT 9DP 1AM                                                                             
03/23/16       (H)       DP: SADDLER, PRUITT, GARA, WILSON,                                                                     
                         GATTIS, EDGMON, MUNOZ, NEUMAN, THOMPSON                                                                
03/23/16       (H)       AM: KAWASAKI                                                                                           
03/29/16       (H)       TRANSMITTED TO (S)                                                                                     
03/29/16       (H)       VERSION: CSHB 143(FIN)                                                                                 
03/30/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/30/16       (S)       NRG, FIN                                                                                               
03/31/16       (S)       NRG AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 193                                                                                                                  
SHORT TITLE: EXTEND EXEMPTION FOR SMALL POWER PLANTS                                                                            
SPONSOR(s): SENATOR(s) MCGUIRE                                                                                                  
                                                                                                                                
02/22/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/16       (S)       NRG, L&C                                                                                               
03/15/16       (S)       NRG AT 1:00 PM BUTROVICH 205                                                                           
03/15/16       (S)       Heard & Held                                                                                           
03/15/16       (S)       MINUTE(NRG)                                                                                            
03/31/16       (S)       NRG AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE CATHY MUNOZ                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 143.                                                                                        
                                                                                                                                
TERRY HARVEY, Staff                                                                                                             
Representative Munoz                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of changes to HB 143.                                                                
                                                                                                                                
KEITH COMSTOCK, CEO and President                                                                                               
Juneau Hydropower, Inc.                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 143.                                                                           
                                                                                                                                
STUART GOERING, Assistant Attorney General                                                                                      
Alaska Department of Law                                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Announced his availability to answer                                                                      
questions regarding SB 193.                                                                                                     
                                                                                                                                
JESSE LOGAN, Chief of Staff                                                                                                     
Senator McGuire                                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Explained the changes made in SB 193.                                                                     
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:37:02 PM                                                                                                                    
CO-CHAIR PETER  MICCICHE called the  Senate Special  Committee on                                                             
Energy  meeting to  order at  3:37 p.m.  Present at  the call  to                                                               
order  were   Senators  Egan,   Co-Chair  Bishop,   and  Co-Chair                                                               
Micciche.                                                                                                                       
                                                                                                                                
                                                                                                                                
           HB 143-AIDEA BONDS, LOANS, FUND; AEA LOAN                                                                        
                                                                                                                                
3:38:18 PM                                                                                                                    
CO-CHAIR  MICCICHE announced  the  consideration of  HB 143,  the                                                               
companion  bill to  SB  193. He  specified  that [CSHB  143(FIN),                                                               
version: 29-LS0599\S] was before the committee.                                                                                 
                                                                                                                                
REPRESENTATIVE  CATHY MUNOZ,  Alaska  State Legislature,  Juneau,                                                               
Alaska,  explained that  the bill  would allow  Alaska Industrial                                                               
Development  and Export  Authority (AIDEA)  to consider  conduit-                                                               
financing  of up  to $120  million, and  conduit-bonding for  the                                                               
Sweetheart Lake Hydroelectric Project (SLHP).                                                                                   
                                                                                                                                
REPRESENTATIVE MUNOZ detailed SLHP as follows:                                                                                  
                                                                                                                                
   · 43 miles south of Juneau.                                                                                                  
   · Ties into the Snettisham powerline and brings power to                                                                     
     Juneau.                                                                                                                    
   · Increases Juneau's power capacity by 20 percent.                                                                           
   · 60 percent of SLHP's power would go to the Kensington Mine.                                                                
   · SLHP would allow the Kensington Mine to displace between                                                                   
     7,000 to 9,000 gallons of diesel fuel per day.                                                                             
   · SLHP would power the Juneau District Heating Project                                                                       
     (JDHP).                                                                                                                    
                                                                                                                                
She noted  that SLHP was in  its final stages of  permitting. She                                                               
specified  that  permits  from   the  Federal  Energy  Regulatory                                                               
Commission  (FERC),   US  Army   Corps  of  Engineers,   and  the                                                               
Environmental Impact  Statement (EIS) were  due in the  summer of                                                               
2016.                                                                                                                           
                                                                                                                                
3:40:04 PM                                                                                                                    
TERRY   HARVEY,  Staff,   Representative   Munoz,  Alaska   State                                                               
Legislature, Juneau,  Alaska, stated  that he  would go  over the                                                               
changes  made  in  House  Finance   to  HB  143  and  detail  the                                                               
differences with its companion bill, SB 193.                                                                                    
                                                                                                                                
MR.  HARVEY  explained that  Section  1  was amended  to  specify                                                               
exactly  the type  of bonding  that would  be used  by AIDEA.  He                                                               
specified that  conduit-issuance bonds would be  used, also known                                                               
as pass-through  or standalone bonds.  He pointed out  that AIDEA                                                               
and  the State  of Alaska  would not  be exposed  to any  further                                                               
debt.  He added  that  conduit-issuance bonding  would not  count                                                               
against Alaska's annual bonding cap of $400 million.                                                                            
                                                                                                                                
He said Section 2 addressed  the Lynn Canal transmission line, an                                                               
important component  to the project.  He disclosed that  the bill                                                               
originally  proposed bonding  for the  transmission line  through                                                               
the Power  Project Loan Fund  (PPF) that was administered  by the                                                               
[Alaska Energy  Authority (AEA).] He  explained that the  PPF was                                                               
determined to  not be appropriately  capitalized for  the project                                                               
and other  means of  financing would be  used. He  specified that                                                               
accessing the PPF was removed from the bill.                                                                                    
                                                                                                                                
He explained that  a third change was made where  the repeal date                                                               
was extended from June 30, 2019 to June 30, 2020.                                                                               
                                                                                                                                
3:44:07 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:44:14 PM                                                                                                                    
CO-CHAIR  MICCICHE  called  the   committee  back  to  order.  He                                                               
announced that public testimony was open.                                                                                       
                                                                                                                                
KEITH  COMSTOCK,  CEO  and President,  Juneau  Hydropower,  Inc.,                                                               
Juneau,  Alaska,  stated that  HB  143  was important  to  Juneau                                                               
Hydropower. He  detailed that Juneau  Hydropower started  SLHP in                                                               
2009, most of  the environmental aspects had  been addressed, and                                                               
the hope was for the project's  construction to start in 2016. He                                                               
conceded that  further due  diligence would  be required  and the                                                               
bill was for the possibility of funding, not a commitment.                                                                      
                                                                                                                                
CO-CHAIR MICCICHE  closed public testimony. He  announced that HB
143 would be held in committee.                                                                                                 
                                                                                                                                
3:46:08 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:48:38 PM                                                                                                                    
CO-CHAIR  MICCICHE  called  the   committee  back  to  order.  He                                                               
announced that  the committee meeting  was the second  hearing on                                                               
HB 143  and the changes to  the bill were minimal.  He summarized                                                               
that  Section 1  was  amended  to specify  the  type of  bonding,                                                               
Section  2  eliminated the  Lynn  Canal  project, and  Section  3                                                               
extended the [repeal] date by one year.                                                                                         
                                                                                                                                
CO-CHAIR  BISHOP moved  to report  CSHB  143(FIN), [version:  29-                                                               
LS0599\S],  from committee  with  individual recommendations  and                                                               
attached zero-fiscal note from DCCED.                                                                                           
                                                                                                                                
CO-CHAIR  MICCICHE  announced  that seeing  no  objections,  CSHB
143(FIN) passed from committee.                                                                                                 
                                                                                                                                
3:50:38 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
         SB 193-EXTEND EXEMPTION FOR SMALL POWER PLANTS                                                                     
                                                                                                                                
3:52:05 PM                                                                                                                    
CO-CHAIR  MICCICHE  announced the  consideration  of  SB 193.  He                                                               
declared  that  a committee  substitute  (CS)  for the  bill  was                                                               
before the committee.                                                                                                           
                                                                                                                                
3:52:14 PM                                                                                                                    
CO-CHAIR BISHOP  moved that  the committee adopt  the CS  for [SB
193(NRG),  29-LS1513\W].  He  objected   for  an  explanation  of                                                               
changes.                                                                                                                        
                                                                                                                                
CO-CHAIR MICCICHE  asked that the proposed  changes be addressed.                                                               
He noted that the bill's sponsor supported the changes.                                                                         
                                                                                                                                
STUART GOERING, Assistant Attorney  General, Alaska Department of                                                               
Law,  Anchorage, Alaska,  announced his  availability to  address                                                               
questions regarding SB 193.                                                                                                     
                                                                                                                                
JESSE  LOGAN,  Chief  of Staff,  Senator  McGuire,  Alaska  State                                                               
Legislature, Juneau,  Alaska, said  the change in  the CS  was on                                                               
page 1,  line 10.  He specified that  the exemption  was extended                                                               
from January  1, 2016 to  January 1,  2020. He detailed  that the                                                               
change falls  in line with the  original intent of the  bill that                                                               
passed in 2010 to coincide with federal tax exemptions. He noted                                                                
that the federal tax exemptions were extended to 2020.                                                                          
                                                                                                                                
3:54:30 PM                                                                                                                    
CO-CHAIR BISHOP removed his objection.                                                                                          
                                                                                                                                
CO-CHAIR MICCICHE found no comments.                                                                                            
                                                                                                                                
3:54:47 PM                                                                                                                    
SENATOR HOFFMAN joined the committee.                                                                                           
                                                                                                                                
CO-CHAIR BISHOP moved to report CSSB 193(NRG), [version: 29-                                                                    
LS1513\W], from committee with individual recommendations and                                                                   
attached fiscal note from DCCED.                                                                                                
                                                                                                                                
CO-CHAIR MICCICHE announced that hearing no objection, CSSB
193(NRG) passed from committee.                                                                                                 
                                                                                                                                
3:55:44 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Co-Chair Micciche adjourned the Senate Special Committee on                                                                     
Energy at 3:55 p.m.                                                                                                             

Document Name Date/Time Subjects
SB 193 SB277 Supporting Documents Letter CIRI Response to APA letter 3-19-10.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
SB 193
SB 277
SB 193 Supporting Document letter APA 2-29-16.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
SB 193
SB193 Sponsor Statement.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
SB 193
SB 193 Leg Research Report on Regulation Sb277 3-5-10.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
SB 193
SB 277
SB 193 Letter of Support- AIPPA 3-4-16.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
SB 193
SB 193 APT Letter of Support 3-11-16.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
SB 193
SB 193 Letter of Support- CIRI 3-4-16.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
SB 193
SB 193 Fiscal Note-DCCED-RCA-3-11-16.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
SB 193
CS SB 193 (NRG) version W.pdf SNRG 3/31/2016 3:30:00 PM
SB 193
CSHB143 FIN.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
HB 143(FIN) Sponsor Statement.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
HB143(FIN) Explanation of Changes.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
HB143 Fiscal Note-CED-AIDEA-3-24-16.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
HB143 AIDEA Springsteen.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
HB143 CBJ Support March 22 2016.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
HB143 Letters of Support.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
HB143 Support Letter - First Things First - 3-25-16.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
HB143 Resolutions of Support.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
AIDEA due diligence slides for HB 143 hearings.pdf SNRG 3/31/2016 3:30:00 PM
HB 143
HB143 Operating Engineers Support Letter.pdf HFIN 3/22/2016 9:30:00 AM
SNRG 3/31/2016 3:30:00 PM
HB 143
SB192 and HB 143 Letter of Support-AEA SFG 3-16-15.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
HB 143
SB 192
SB192 and HB 143 Letter of Support- AIDEA Leonard 3-11-15.pdf SNRG 3/15/2016 1:00:00 PM
SNRG 3/31/2016 3:30:00 PM
HB 143
SB 192
HB143 Letter of Support-Juneau Hydropower-Letter 3-4-16.pdf SNRG 3/31/2016 3:30:00 PM
HB 143