Legislature(2009 - 2010)BUTROVICH 205
01/25/2010 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB220 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 220 | ||
SB 220-ENERGY EFFICIENCY/ ALTERNATIVE ENERGY
CO-CHAIR WIELECHOWSKI announced an overview of the energy
recommendations and invited testimony on SB 220.
MICHELLE SYDEMAN, staff to Senator Wielechowski, explained that
she would go over the energy related budget recommendations. She
said during the Interim hearings the most frequently received
testimony had to do with approval of the existing energy
programs such as weatherization, home energy rebates and low-
income energy assistance. The committee was repeated told about
how these programs are helping to cut costs for Alaskan families
and they were urged to work towards increased funding for them.
The public also expressed support for continued investment in
renewable energy and the need to get communities off high-priced
fossil fuels and on to locally available sources of renewable
energy. Where such resources are available, the committee heard
they could provide a more reliable, flat-priced, and sustainable
source of energy over the long term.
3:35:49 PM
A final theme was that investments in energy efficiency result
in real savings. She said the Resource committee co-chairs
followed up on this testimony and spoke with agency and private
sector experts to assess the effectiveness of the programs they
heard about most; and a series of draft recommendations was
produced addressing the need for increased funding for a
discrete targeted set of programs. Those recommendations were
contained in the report that the co-chairs released in October.
Those were reviewed and resulted in the letter that was sent
last week to the co-chairs of the Senate Finance Committee
detailing the primary budget recommendations.
3:36:48 PM
She said that she and Mr. Pawlowski were asked to go over those
recommendations today one by one to describe why the co-chairs
believed they were worthy of being passed up to the Finance
Committee.
3:37:03 PM
MIKE PAWLOWSKI, staff to Senator McGuire, started by saying the
$25 million recommended for weatherization is very popular,
because it is a proven way to reduce energy costs. From the
program they have learned that annual household savings average
about $527/year or $7565 over the lifetime of the improvement.
In 2008, $200 million was appropriated for weatherization and
that is likely to be fully encumbered by the end of 2010. The
recommendations include $150 million for weatherization, but the
chair worked with the actual program and found that just $25
million would keep it going. According to AHFC 27,000 residences
in Alaska are still ready to be weatherized.
3:38:19 PM
The next point was $175,000 to help Alaskans learn how to lower
their energy costs through a statewide public relations and
education campaign on energy efficiency. Statistics from the
weatherization program demonstrate that Alaskans stand to save
millions by making their homes and businesses more energy
efficient. Research shows that energy efficiency and
conservation are typically 50-75 percent cheaper than building
new power plants or buying energy on the open market.
The amount of $100,000 was recommended to fund a technical
assistance program to help business owners learn how to reduce
their energy-related expenditures and improve profitability. The
AEA plans to use federal stimulus funds to initiate a technical
assistance program this fiscal year, but this funding would help
it continue.
MR. PAWLOWSKI said the next recommendation was $250,000 for
energy-related job training. Using grant funds, he said the
Alaska Vocational Technical Center currently trains power plant
managers and bulk fuel operators to maintain reliable and
efficient power plants. Unfortunately with weakening federal
support for the Denali Commission, this funding is dwindling.
3:40:03 PM
Finally, he remarked that $2 million to help Alaskans save money
with energy efficient appliances was another recommendation that
had a lot of public support. He said that several states already
provide rebates to home owners who replace older energy
inefficient appliances with ones that are substantially more
efficient than federal standards, and the Department of Energy
(DOE) reports that last year's savings from energy star
appliances were enough to power 10 million homes and avoid green
house gas emissions from 12 million cars.
3:40:47 PM
MS. SYDEMAN reviewed that in 2008 the legislature pledged $300
million in funding over a five-year period for renewable energy
projects. The Renewable Energy Fund provided grants up to $4
million to eligible projects that can range from feasibility and
reconnaissance studies to actual construction. She said the co-
chairs believe that continuing to support the fund through 2012,
the original date, will allow the legislature to fulfill its
original promise to help communities develop their own renewable
energy resources.
3:41:35 PM
Next, she said, $8 million was recommended for rural power
system upgrades - above the Governor's proposed $2 million. This
helps reduce electrical costs in rural Alaska by helping them
upgrade to more efficient power systems. In the last decade the
AEA has upgraded about 35 rural power systems resulting in an
average increase in efficiency of 26 percent. About 25-30
communities are still waiting for funding for the upgrades. Most
of the funding in the past has come from the Denali Commission,
but its funding is declining. So if the state is to continue
that commitment, it will have to step in with some of its own
funding.
3:42:31 PM
The next recommended item, Ms. Sydeman said, was $200,000 to
provide assistance to those individuals who operate the rural
power systems. Right now the AEA has staff travel in the Circuit
Rider Program to different villages and work with the operators
so they can make maximum use of their systems. Having enough
trained people in the AEA to do this training will continue this
important work.
3:42:55 PM
CO-CHAIR MCGUIRE joined the meeting.
3:43:34 PM
MS. SYDEMAN said the next item is $4 million to upgrade rural
bulk fuel storage facilities. The Governor's budget recognized
the need for increased funding here with $1 million, but their
research indicates that about $5 million is necessary. The
reason is that many older systems don't meet federal EPA
standards and some communities might be disallowed from using
these systems unless they are upgraded. Again, the challenge is
the declining Denali Commission funding.
Another item is $3 million for state matching funds to enable
communities to successfully apply for federal funds for public
transit systems. Alaska is one of three states that don't invest
public funds in road-based state transportation systems. Many
people use those systems to get to work, school and homes, and
they are clearly used and beneficial. They have heard that
several local governments - the MatSu and Kenai - have not been
able to secure federal funding because they can't come up with
the state match.
The next proposal was for $3 million to replenish the Power
Project Loan Fund - above the Governor's proposal of $7 million.
The co-chairs thought $10 million was more appropriate. The fund
provides loans to utilities, local governments, and independent
power producers to develop or upgrade their power production
facilities. Interest rates vary from tax exempt rates on the
high end to zero on the low end. The last time she checked,
about 47 loans were out for a total of $26 million; the
repayment rate is excellent with only one late loan. Communities
are taking good advantage of this fund and are doing their part
in paying the loans back, but the balance is almost used up.
3:46:47 PM
MR. PAWLOWSKI said the next recommendation was $200 million for
long-term Railbelt Energy projects. He explained that the
Railbelt's Regional Integrated Resource Plan was recently
completed as the guide to developing the region's power systems
over the next 50 years and $2-$8 billion worth of projects were
identified. So, rebuilding the Railbelt Energy Fund would help
prepare communities and the state for needed investments.
He said that $10 million was "broken out" specifically for
Susitna/Chakachamna and other hydro projects in the Railbelt.
These were identified in the plan as "large hydro projects with
important potential in near-term development within the region."
This money would carry out the needed geotechnical work, pre-
permitting and conceptual design for some of the projects.
The next step was $3 million for the Emerging Energy Technology
Fund (EETF). This idea was sponsored initially by Senator
McGuire and included in SB 220, he stated. Most of the other
recommendations are based on many existing programs, but little
or no state funding is available for research and development of
new technologies, and although the state supports renewable
energy development, those projects are limited to off-the-shelf
technologies. The proposed EETF would encourage innovation and
exploration of new sources of renewable energy and match funds
provided by the Denali Commission.
3:48:50 PM
MR. PAWLOWSKI said the next recommendation was $10 million as an
initial capitalization for the Southeast Energy Fund to expand
power generation projects in Southeast and help complete the
regional electrical grid. Most Southeast communities that rely
on hydro still rely on oil to generate electricity and by-and-
large heat; and many of the hydro electric facilities in
Southeast are at or near capacity which severely limits the
region's growth. Following on that was the recommendation to
continue funding for the Southeast Regional Integrated Resource
Plan, similar to what was conducted in the Railbelt. The final
recommendation was to fully fund the power cost equalization
program (PCE) because it is critical as a foundation of Alaska's
energy policy.
3:50:18 PM
SENATOR HUGGINS noted that his last two bullets didn't have a
dollar figure with them.
3:50:51 PM
MS. SYDEMAN responded that their original proposal, based on
conversations with legislative staff and the AEA, was that
$700,000 would be needed. The Governor's budget proposes a
little bit more than that, and because his budget provided an
adequate amount the co-chairs didn't feel that an increase above
that level was needed.
MR. PAWLOWSKI said the same thinking went along with the PCE;
they are supporting what the Governor is doing.
3:51:39 PM
SENATOR STEDMAN said he wasn't sure where the cost structure is
on the Southeast Integrated Resource study, but $700,000 seems
really high. "Some of these projects have been looked at since
the 50s."
SENATOR WAGONER said he is bothered that in looking at the two
hydro projects, the smallest one will generate around 330-350
mgW, which is more than is needed in the Railbelt. In addition
to that they are looking at revisiting the Susitna project and
he didn't know why, because millions of dollars have already
been spent and the study is done. "We don't need to do another
thing, because I don't think that study is dated and I don't
think the Susitna River has changed that much," he said. He also
reminded members that the original Railbelt Fund money came from
the balance that had been appropriated for the Susitna project
study.
SENATOR WIELECHOWSKI said that is an excellent point. But
speaking for himself, he said they followed the recommendations
of the Integrated Resource Plan; this is what experts in the
field are recommending. They don't know that the projects will
work yet; both have potential environmental problems. It's clear
that they can't do all of them, but they don't know at this
point which one will actually happen.
3:54:57 PM
MS. SYDEMAN noted that they have invited the Alaska Energy
Authority to justify those recommendations of continued funding
for both projects in a committee meeting.
SENATOR HUGGINS said they really need to understand what they
are buying with this money assuming that even 45 percent of it
goes forward. The Railbelt consolidation effort is a huge task
and leaves a question mark in his mind.
3:56:53 PM
SENATOR WIELECHOWSKI said that was another excellent point and
the plan is to have the ones who prepared the plan, Black and
Veatch, to explain and see what their thoughts were. He agreed
that they can't go forward on all three and that they have to
decide if they continue moving forward until they figure out
which one is correct or just pick one now. It's a good debate to
have.
SENATOR HUGGINS reflected that some people are skeptical; for
instance, Healy clean coal was given to a couple of operators,
but now the report says they shouldn't restart that. He said,
"We can't afford those kind of mistakes in what we are putting
our money against. So, trial and error is not a good technique -
as we're spending this amount of money."
CO-CHAIR WIELECHOWSKI said, "Excellent point."
3:57:52 PM
CHRIS ROSE, Executive Director, Renewable Energy Alaska Project,
said their goal is to increase the production of renewable
energy in Alaska. One of their primary objectives is also to
increase energy efficiency. They are very happy with the omnibus
bill. It is great to have renewable and efficiency energy ideas
in one place. He said they would probably support many of them,
but they need a chance to look them over.
3:59:49 PM
He said that he serves on the advisory committee that helps AEA
bring recommendations to the legislature and he is happy to see
the $50-million recommendation for the fund this year. The first
$100 million for the program was released last February. So for
the length of time they have been working on it, it is moving
ahead quite quickly. He saw some "tweaks" in the legislation
that are consistent with what AEA is already doing - things like
making sure there is a positive benefit/cost ratio and that an
outside firm will do an economic analysis (AEA has contracted
with ISER to do that.)
4:01:16 PM
MR. ROSE said that SB 150, the Emerging Energy Technology Fund,
is a priority for this state, because while it currently does a
lot for commercial, existing, and mature technologies, it
doesn't do much for the emerging technologies. And Alaska has 90
percent of this country's tidal power potential, 50 percent of
the nation's wave power potential, tremendous hydro kinetic
potential, and it is the only place outside of some remote parts
of Hawaii where a demonstration project can be brought in and
save people money at the same time. Alaska is the perfect
laboratory to test these things.
He said he had been working with staff on potential tweaks to SB
220 to make sure it works as smoothly as possible including
adding the National Renewable Energy Lab and the Fossil Energy
Office at UAF as members of the advisory committee that would
make the decisions about those grants. He suggested putting even
more than $3 million into that fund because they might be able
to get more matching funds from the Denali Commission as well as
the Department of Energy.
4:02:55 PM
He said he supported SB 31, the state production tax credit. He
stated that the federal production tax credit has been the
primary driver of renewable energy development in the US.
Congress has been authorizing it for only one or two years at a
time, and for that reason it has been an "uncertain policy."
States have been doing all kinds of things to incentivize
renewable energy including creating their own tax credits. This
tax credit would be 15 percent of the retail rate with a range
of 2.1-5 cents/kW over five years.
MR. ROSE said they also support SB 121 that provides making all
public buildings in Alaska energy efficient, because being
efficient is always cheaper than generating the equivalent
amount of energy. This language actually promotes the state to
use performance contracting, which means the contractor would
finance the project and the utility savings would be used to pay
back the loan over time - a great way to finance these projects.
4:05:03 PM
Another recommendation, although it's not in the omnibus, is $25
million for more weatherization. The $360 million that came out
of the 2008 legislature for both the current weatherization
program and the rebate program has paid tremendous dividends in
terms of creating jobs and energy savings, he said.
He also supported the Statewide Energy Policy in SB 220 that
came from work the House Energy Committee did over the Interim.
Having a statewide energy policy that looks at how Alaskans will
get energy to light their businesses and heat their homes is a
great idea. That will also make Alaska more competitive in the
world economy.
4:07:23 PM
MR. ROSE said they hadn't vetted these ideas yet, but he thought
they would support job training because the skills the industry
needs have to be developed as well as technical assistance for
people who want to continue running the existing and future
systems. He thought they would support an energy efficiency
grant fund and alternative energy for public buildings.
Alternative energy for home owners, in sections 20-23, is an old
program that would be revived and he thought it would have
pretty high demand. Using more energy efficient appliances makes
sense as well as taking the old inefficient ones out. Mr. Rose
said it makes sense to have an energy plan like the one
developed by Black and Veatch.
4:10:23 PM
CAITLIN HIGGINS, Executive Director, Alaska Conservation
Alliance (ACA) and Alaska Conservation Voters, said she and her
members applauded the co-chairs and committee for strong
leadership and hard work on these issues. She said that the
Alaska Sustainable Energy Act continues to put Alaska on an
economically viable, sustainable, stable energy path for the
future, a fundamental change that the conservation community has
encouraged for a number of years. They strongly supported
inclusion of SB 121 that would make state owned buildings more
efficient. She was glad to see the state leading by example.
MS. HIGGINS said the Conservation Alliance felt so strongly
about intensifying the need to be more energy efficient that
they commissioned an energy economist at National Capitalism
Solutions to develop a report that shows how the Railbelt could
reach its goal for energy efficiency by 2025. The report should
be released in the next several days.
4:13:17 PM
Support including goals for energy efficiency and encourage the
committee to consider whether or not to push those forward,
especially in uncodified statute. The plans goals would be more
achievable and meaningful if they were found in codified
language. The same is true of the committee's 50 percent
renewable goal.
4:15:31 PM
They also support the committee's inclusion of SB 150, the EETF,
another of the Alliance's priorities this session. They support
the potential entrepreneurial and technological innovation
created by the fund. Alaska's unique circumstances justify this
local research and development effort and they think it can be
done effectively and efficiently.
4:16:28 PM
SENATOR WAGONER asked if they favored the hydro projects.
MS. HIGGINS replied they are developing a hydro paper.
SENATOR WAGONER said that is a tough task, and he thought it may
not even be possible.
CO-CHAIR WIELECHOWSKI asked if the ACA had looked at Chakachamna
or Susitna.
MS. HIGGINS said they didn't have an official position.
SENATOR HUGGINS asked her what their position was on including
nuclear power in this package.
MS. HIGGINS said she would have to take that issue back to her
members.
CO-CHAIR WIELECHOWSKI said he wanted to hear their positions on
hydro and nuclear power.
4:18:55 PM
GWEN HOLDMAN, Director, Alaska Center for Energy and Power
(ACEAP) at UAF, commended the committee for its hard work on
this issue. She said two sections were most important to their
interests: the first is additional language in section 8 on the
Renewable Energy Fund that mandates long-term data collection
and reporting for projects. She said the AEA has done
significant work upfront in considering cost/benefit analysis of
projects that the fund considers, but following up with
technical and economic performance data is need so that
additional long-term funding can be considered for more projects
that make economic sense. She explained that ACEAP had been
working with the ISER to collect performance data and install
capital cost data for wind projects in Alaska and finally came
to the conclusion that a lot of the data they were looking for
actually just didn't exist because no one is being mandated to
collect it.
4:21:14 PM
The other high priority section she said was section 11 that
forms the Emerging Energy Technologies Grant Fund. The Denali
Commission has already funded an initial trial run of this
program and the Alaska Center for Energy and Power is currently
managing it. However, the University would be happy to defer to
the House version that designates AEA as providing that service.
She explained that the University is really interested in the
information on how successful the emerging technologies projects
are, so they can use it to make decisions on future funding and
conduct research in partnership with private entities to
actually get some of the projects off the ground.
She said the Denali Commission has funded 11 projects for a
total of $7.5 million. A higher amount might be also be
appropriate for this program, because it has enough projects
that provide "real opportunities" and can also leverage federal
dollars.
4:23:49 PM
MS. HOLDMAN said an example of one critical project is the
integration of wind and diesel systems to reduce the amount of
diesel fuel that is used. They are looking for ways to modify
algorithms on Northwind 100 inverters that are part of the
turbines that have pretty commonly been installed - primarily in
villages - under the Renewable Energy Grant Fund to operate in a
diesel off mode. It is not a commercial technology and therefore
not appropriate for funding under the Renewable Energy Fund or
other existing funding mechanisms. This is critical to Alaska,
but not to the national research agenda.
4:24:45 PM
MS. HOLDMAN also mentioned that ACEAP participated in the House
Energy Task Force and helped develop policy language in SB 220
that can set that overall future vision for the state that can
provide focus for a lot of planning efforts.
4:25:23 PM
DENALI DANIELS, Sr. Energy Program Manager, Denali Commission,
said that as a federal agency, the Commission typically doesn't
weigh in on legislation; therefore her comments would be
informational in nature. She said they appreciated the
invitation for input on establishing a statewide energy policy.
She said the Commission has a local board agency that consists
of their federal co-chair, Joel Neimeyer, and the Governor or
his appointee; currently that spot is filled by OMB director
Karen Rehfeld. Other members include Julie Kitka with AFN, John
MacKinnon, Vince Beltrami, Karen Purdue at the University and
Kathy Wasserman representing the Alaska Municipal League.
MS. DANIELS explained that the Commission uses an annual work
plan and FY10 is now in draft form. The plan is used for grant
making and was developed by an advisory committee within the
Energy Program, which is chaired by Commissioner MacKinnon and
has membership from Vince Beltrami who serves as chairman of the
Renewable Energy Fund.
She said the Denali Commission is 11 years old and their
enabling legislation was the result of a number of rural
communities being out of EPA compliance with their bulk fuel
tank farms (and were at the risk of being shut down by the Coast
Guard). Shortly after, it was recognized that energy efficiency
could be significantly improved by power plant replacement or
upgrades. So the Bulk Fuel Program and the Rural Power System
Upgrade (RPSU) have really been "our meat and potatoes," she
said, and continues as one the Commission's major priorities.
MS. DANIELS said they have funded 100 bulk fuel projects, seven
of which are now under construction, and 58 power system
upgrades, 12 of which are now under construction. Funding over
the last 11 years for both programs is around $350 million.
Around 60 percent of that is dedicated to the State of Alaska
through the AEA; the remaining balance has over time been
dedicated to Alaska Village Electric Cooperative (AVEC) and
other direct grants to entities that for whatever reason are not
under the NEA process. She emphasized that it is important to
realize that other entities outside of the state program have
substantial needs and are receiving funding from the Denali
Commission also; these needs might even be a little bit greater
than what they are projecting.
MS. DANIELS said the Commission is in discussions with the US
Coast Guard and the EPA regarding the remaining infrastructure
needs and ways to take different approaches in rural Alaska.
When the Commission began a lot of projects were at the highest
need in terms of replacement or upgrade in the higher performing
communities. But now, the most challenging communities are left.
4:32:52 PM
MS. DANIELS switched to the emerging technology program. She
explained that the Energy Policy Act of 2005 established new
authorities for the Denali Commission - one of which put the
emphasis on alternative and renewable energy; but appropriations
didn't accompany that authority. Yet the commissioners elected
to dedicate funding to a new program that didn't have a name at
the time, but it was the first step to what is now the Renewable
Energy Fund under AEA.
4:34:10 PM
She related that the Commission dedicated $4 million to identify
a few projects outside of that and it has also dedicated close
to $8 million to emerging technologies over the last two years.
In the summer of 2009 the competitive process involved a two-
phase solicitation. Criteria in it included research,
development or demonstration projects in Alaska that had a
reasonable expectation to become commercially viable within five
years or less. These pilot projects had to be replicatable
elsewhere in Alaska.
MS. DANIELS said a review panel was formed and used to vet those
projects. ACEAP did not serve on the panel but did observe the
face-to-face presentations. She emphasized that ACEAP did not
influence the decision making process whatsoever. She said they
received 50 proposals totaling $29 million in funding requests.
They narrowed the proposals down to 15; 9 were selected from
those; 5 were actually asked to reduce their budgets or to come
up with additional match and all 5 were able to do so.
4:36:41 PM
She stated that the conflicts of interest on behalf of the
committee members were handled on a case-by-case basis. Members
either abstained from deliberation or in some cases left the
room depending on the nature of the decision. The conflicts are
documented through minutes. In terms of administration, she
said, the Denali Commission remains neutral. It's important that
ACEAP remains involved from a data collection and reporting
standpoint, and she reported that they were able to keep within
the administrative cap of 5 percent.
MS. DANIELS noted that all stakeholders are working together to
make this work; the Denali Commission has $2.24 million
dedicated to the program in its plan. However, the commissioners
want the state to see this as a priority or they will reallocate
the funding to other programs.
4:38:44 PM
She said that bulk fuel funding is in the work plan in the
amount of just under $9 million; $10 million is marked for rural
power system upgrades - for a total of $20 million for energy
infrastructure in Alaska.
4:39:03 PM
SENATOR WAGONER asked what the future for federal funding is for
the Denali Commission.
Ms. DANIELS replied that their federal funding is declining. The
work plan is based on the most optimistic outcome for FY10 and
their budget is only $60 million - down from $150 million in
2005 - and it's fair to expect that to continue. So, it's
important for the state to be involved.
SENATOR WAGONER asked if they had considered setting up an
enterprise fund for the future maintenance of the rural bulk
fuel facilities. So if money is not available through a state or
federal grant the facility could still be maintained.
MS. DANIELS answered that a business plan is required to receive
funding, and that includes a repair and renovation fund.
4:42:18 PM
BRIAN HIRSCH, National Renewable Energy Laboratory (NREL),
reviewed his professional background and credentials in the US
and in Alaska. He said that NREL is the nation's premier
government-owned laboratory focused exclusively on energy
efficiency and renewable energy and it is based in Colorado.
Traditionally, it has been research based and focused on high
tech solutions. For instance, they are involved in developing
sophisticated coatings for solar panels that will ideally become
even more cost effective and produce lower-cost power.
He said those inventions have contributed to the US
technological lead over the years, but over the last decade or
so these kinds of solutions have lacked focus. Now NREL and much
of the Department of Energy have refocused on what is called
"Integrated Deployment," a fancy phrase for "boots on the
ground" to move projects forward.
MR. HIRSCH said that typically NREL doesn't have satellite
offices like it does in Alaska. Their Antarctica operation is
not a full office, but its technology solutions program is
focused on some of the same challenges Alaska faces. But in many
ways Alaska is already a world leader in some of these
technologies - in particular, activities in high penetration
wind/diesel systems, combined heat and power for biomass,
enhanced geothermal energy storage of various types, tidal and
hydro kinetic energy technologies, and wringing the last
possible bit of energy from diesel fuel.
4:48:59 PM
He drew their attention to a recent federal grant solicitation
that provided over for $1 billion for smart grid technologies to
49 states. The only state that did not receive money was Alaska.
The point here is not that anybody was out to get Alaska, but
that the challenges are so different here that Alaska didn't
really fit their grant criteria and got overlooked. That led him
to believe that Alaska needs to take care of itself and solve
its own problems.
MR. HIRSCH said at the national level a model for the Emerging
Energy Technologies Fund was implemented in February; some know
it as the Stimulus Act or the American Recovery Reinvestment
Act. In it the "Advanced Research Project Agency - Energy Act
(ARPA-E)" was modeled after Department of Defense legislation
that funded very experimental technologies that had high risk,
but very high potential yields if they were successful -
recognizing that these projects wouldn't immediately lower the
cost of energy in rural Alaska. Alaska is as extreme as anywhere
in the world with its tremendous renewable resources in the
summer time, but a lack of them in the winter. So storage is
huge for either renewable or non-renewable energy sources, and
these are the kinds of opportunities that an Emerging
Technologies Fund would be addressing. The ARPA-E legislation
has provided $450 million at the national level to look at some
of these high-risk but high-potential-yield technology
solutions.
SENATOR WAGONER asked how the Ruby project worked this summer.
MR. HIRSCH replied that it worked well for learning a lot; it
had some basic technical problems that had nothing to do with
the turbine itself. The underwater power cable that brought the
power to shore had a short and didn't produce a lot of energy,
but they learned a lot about impacts to fisheries and debris
floating down the river and how to better integrate the power
with the existing local diesel grid.
4:53:42 PM
SENATOR HUGGINS commented that this bill has great elements in
it like section 19 on page 13 that talks about the transition
fuel, natural gas, and storage is a major component of natural
gas. So, he encouraged people to keep an eye on that ball in the
near and mid-term, because no matter how much we wish for
renewables and wish for them soon, gas is what works now.
4:55:22 PM
CO-CHAIR WIELECHOWSKI thanked everyone for their comments and
finding no further business to come before the committee,
adjourned the meeting at 4:55 p.m.
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