Legislature(2009 - 2010)BUTROVICH 205
01/27/2010 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
3:37:39 PM
CO-CHAIR MCGUIRE announced SB 220 to be up for consideration.
ROBERT VENABLES, Energy Coordinator, Southeast Conference,
supported SB 220. He said their mission is to undertake
activities that promote strong economies and healthy communities
in a quality environment. For over the last dozen years their
Energy Committee has been working with communities and utilities
to displace diesel as much as possible as a primary fuel source
for power generation. They have made significant strides, but
much work is left to be done. He applauded the work the
legislature has done in this regard. The Southeastern utilities
are following the committee's work and look forward to working
with them in the future.
3:39:33 PM
NATHAN SOBOLEFF, Natural Resources Planner, Sealaska
Corporation, said a large portion of what he does is working on
alternative energy projects for the corporations. He thanked the
26th Legislature for considering important legislation like SB
220, which they support. He said they also support SB 150,
creation of the emerging energy technology fund. He noted that
Sealaska has spearheaded converting its corporate headquarters
to a wood pellet boiler to completely eliminate its annual need
for 35,000 gallons of diesel heating fuel. A large portion of
that, $510,000, was funded from the Denali Commission Emerging
Energy Technology Fund. He said the technology has not been
proved in the states, but it has existed in Europe for over 30
years and they hope to add credence to it here. He urged people
to call Sealaska if they were interested in looking at their
"show case" project. "The door is open for anyone."
He said Sealaska also supports SB 71 that requires the state to
consider using alternative energy systems when designing a
public works project. This is one of the key things to help grow
an industry and to convert buildings off of fossil fuels to more
renewable energies. A good example is Canada's Northwest
Territories' legislative building that is converting to wood
pellets because of legislation like SB 71.
MR. SOBOLEFF said Sealaska supports and encourages SB 132, the
Southeast Alaska Energy Fund, to help pay for hydroelectric
projects, interties - and tidal projects as well. He said that
Sealaska has been running its Black Bear Hydroelectric Project
on Prince of Wales already for a number of years and is working
on some tidal hydroelectric projects within the Southeast
region.
3:44:36 PM
KIRK HARDCASTLE, Operations Manager, Taku Renewable Resources
Coalition, Dba Fishermen's Daughters' Biofuels, supported SB 150
and SB 220. He said the coalition is a group of Alaskan fishing
families looking for ways to reduce the cost of their energy
through alternative fuels. They have received a feasibility
preconstruction grant from the Alaska Energy Authority (AEA);
their research is focused on converting fish waste to biodiesel
and they are the only ones in the state that have received a
grant for this. The goal is for communities to be able to
harness any energy wherever it is available "in this waste
stream."
He said there is a great need for the state to compile emerging
technology data to build foundations for further studies, if
deemed feasible, to help policy and program managers make
effective energy decisions. Such a system would also eliminate
duplication. They hope the access to information will engender
competition and collaborative business practices.
3:46:44 PM
MR. HARDCASTLE said they feel if people are using public funds
that all of their data and information should be available for
others to build upon. He said that many energy research funds
are used as a "vehicle" to further businesses looking to lower
their energy costs, but he wanted to see that money stay in the
state longer - what he called the "vessel" concept. For example,
due to his lack of experience in these fields, he had to go to
Finland to research the technology and paid for it himself.
Often they have had to go to the Lower 48 for much of the
research, and that migrates money out of the state. He said he
supported SB 220 because it will help the state become "not so
much a venture capitalist, but a venture catalyst" to attract
other businesses from the Lower 48 to come up to Alaska.
3:50:53 PM
CO-CHAIR MCGUIRE said the database idea has come up before and
she agreed with him. She asked if he had any other policy ideas
with respect to keeping investments in Alaska.
MR. HARDCASTLE said Alaska's apprenticeship programs "are
envied" throughout the rest of the United States. This model
could be used a little bit more by having the "imported" people
or technologies relay their skills to "sourdoughs" who have a
vested interested in their communities.
CO-CHAIR MCGUIRE said that Denali Biodiesel presented their fish
waste biodiesel project to the committee yesterday and she would
be happy to provide him with their information.
MR. HARDCASTLE thanked her saying it is very essential for
communities to share their information with each other.
3:51:35 PM
JEREMY WOODROW, Alaska Municipal League (AML), said energy is
one of their top four priorities for this legislative session.
He said SB 220 is the right step forward in meeting this goal.
The AML seeks ways to make communities much stronger through
things like energy efficiencies.
3:52:55 PM
JEDEDIAH SMITH, Legislative Liaison, Alaska Center for the
Environment, University of Alaska, supported SB 220. He said it
encourages development of emerging renewable energy technology
which will create economic opportunities for Alaskans. As a
recent graduate of the University of Alaska system, he attested
to its importance in educating and preparing students for a
challenging and demanding work environment and he said that this
bill takes forward steps in meeting Alaska's unique energy
challenges in a way that is innovative and efficient.
MR. SMITH said that the savings this bill engenders is "an
intelligent step" towards a more sustainable and stable future.
He thanked them for including additional funding for public
transportation that he speculated would assist Alaskan
communities in capturing more federal funding for efficient
transportation. This would enable Alaskans to get to and from
work while reducing traffic congestion.
3:54:42 PM
NICK HORRAS, representing himself, Bethel, supported SB 220 as a
major step forward in addressing critical needs in rural Alaska.
He saw it encouraging job creation and economic development in
rural Alaska as well. He said he is currently an energy rater
trainee and has worked in the low income weatherization program.
His experience has shown him that energy efficiency programs
really work for all. These programs have been a catalyst for
energy efficiency so far; he urged them to keep the momentum
going.
3:56:43 PM
WILLIAM ROTECKI, representing himself, Ketchikan, supported SB
220. He said that improving energy efficiency in public
facilities will translate into money earned in the future. Also
because Alaska rural areas have the most to gain, he thought
those areas should be prioritized.
Further, he said that plenty of technologies are available
elsewhere, but they need to be fine-tuned for Alaska. For
example, several ground source heat pumps have been put into
Juneau, but not much is known about thermal conductivity of the
soils here. Each heat pump has to be tested separately for its
unique location, which brings the need of a database into play,
so people could get "a leg up" on whether or not their location
is appropriate for ground source heat pumps.
3:59:44 PM
HARVEY BOWERS, representing himself, Wasilla, supported SB 220
even though he doesn't usually favor anything government does.
He said he owns a lot of buildings in Wasilla and is trying to
take them to net-zero energy, which means the buildings would
supply their own energy with solar and wind. He has cut his
energy costs by 50 percent so far. He said a database is needed
so people can find out what equipment works and what doesn't and
what works in what areas. Canada and Antarctica already have net
zero buildings.
4:02:53 PM
RICH WILSON, Alaska Ratepayers, said they represent electricity
consumers throughout the state and their goal is affordable and
predictable electric rates for Alaskans. They firmly believe
that such a goal cannot be achieved without a substantial state
investment in hydroelectric power and other renewables around
the state. From the perspective of their children and
grandchildren, he said, over-reliance on instate natural gas,
especially in the case of the Railbelt, is a perilous path to
take. The time for action is now.
MR. WILSON said that energy base load has to be affordable,
reliable, predictable and long-term. The best base load resource
in the Railbelt is hydro - the Four Dam Pool and Bradley Lake -
much as small hydro does elsewhere. That is why Alaska
Ratepayers supports immediate legislative appropriations for
design, permitting, equity funding for Susitna hydro phase 1 and
other statewide hydro development.
Further, he said the state must wean Railbelt ratepayers off of
dependence on gas-fired electric generation and strive for 50
percent renewable energy by the year 2020, not 2025. He stated
that the process of moving to large hydro generation as the
Railbelt's prime source of base load electric power must be
accelerated. "A statewide or regional entity with adequate
authority to accomplish these goals in concert with utilities is
essential," he said.
4:07:12 PM
Finally, Mr. Wilson said, they need urgent action and a state
contribution, much as was the case of the Four Dam Pool and
Bradley Lake, to bring down the initial cost of hydro power so
that rates can be levelized over the long term. He also
supported the committee's $10 million proposal for analyzing the
Railbelt's Susitna, Chakachamna and Glacier Fork hydro projects
as well as the proposal's other hydro projects. He said that
Alaska Ratepayers also support a "down payment" of $200 million
for long-term Railbelt energy projects.
4:09:31 PM
CO-CHAIR WIELECHOWSKI said he appreciates his input in this
process of developing an energy plan.
4:09:52 PM
MIKE KRAFT, representing himself, Fairbanks, said Delta Junction
is developing a 15 mgW wind farm and pinning down what costs
they are competing against is one of their major issues in
moving forward. The interior of Alaska is competing against
diesel and he wanted an amendment that requires public utilities
doing business in Alaska to buy renewable energy if it can match
their actual avoided cost. One of the reasons he is asking for
this is because the City of Fairbanks is dealing with bad air
quality issues and it has an opportunity to displace about 3
million gallons of diesel a year through use of the wind farm.
The wind farm has been able to attract $35 million in private
capital and employs many people. If they can bring on 15 mgW,
they can offer a long-term contract at a fixed price which does
equate to cheaper energy and stable rates.
4:11:56 PM
BILL NOLL, representing himself, Anchorage, strongly supported
SB 220. He thanked the legislature for its efforts in this area
and said the weatherization programs are needed and accepted
gratefully. He said he is a member of the Alaska Ratepayers
group. He informed them that in the 1980s, the state spent $130-
150 million for environmental and economic studies, but when the
Ratepayers discussed this with Chugach Electric Association,
they said the same effort would cost $500 million today. Simply
using inflation makes the studies worth $325 million, he
remarked.
At any rate, Mr. Noll pointed out, this report is a real asset
that the state can use as a "down payment" to get future
financing. It would also be getting good value for a lot of work
that was done by good Alaskans in the past.
He said the members of Ratepayers are very interested in the
$10-million appropriation to figure out which projects should
have priority and how big they should be. He was quick to say
their interest in Susitna is not an anti-gas move, and that, in
fact, looking at value-added methane would be well-warranted.
CO-CHAIR MCGUIRE said they greatly appreciate his board's work.
4:17:51 PM
MARK MASTELLER, State Director, Cascadia Region Green Building
Council, Wasilla, supported SB 220. He said Cascadia is the
chapter of the US and Canada Green Building Council that covers
Alaska. His members are architects, engineers, builders,
building owners mostly in the commercial building world. He
thanked the committee for their work on this issue.
MR. MASTELLER said he was especially pleased that the bill
includes conservation and efficiency aspects and upgrades to
public buildings. He said that nationwide, buildings use 40
percent of all energy including 70 percent of all electricity
and they produce about 40 percent of the country's CO. All those
2
things are probably more in Alaska. So energy conservation and
efficiency in the "built environment" is one of the fastest and
cheapest ways to save both money and energy, and it creates a
lot of jobs.
MR. MASTELLER said the state has done a great job promoting
weatherization and energy efficiency in the residential sector,
but a lot more work needs to be done in the commercial and
public facility perspective for their long-term viability. Most
importantly he said, "Conservation and energy efficiency work in
the built environment is what makes the renewable energy
transition possible."
4:20:52 PM
MARGARET SUBERS, representing herself, Palmer, supported SB 220.
She said conserving energy first is crucial and then the
renewable energy piece can come into play. She said she
currently works as an energy rater and is building her own zero-
net home where she recently had a solar tour, and 50 people
showed up. Everyone is concerned and ready to go forward with
conservation, sustainability and saving resources. She asked
that the simple things in weatherization be expanded.
4:23:45 PM
DAVID OWENS, Legislative Liaison, Alaska State Home Builders
Association (ASHBA), said he owns Owens Inspection Services in
Palmer, and supported SB 220. He said he hated to bring up the
subject of code, but SB 220 mentions the ASHRAE/IESNA Standard
90.1 on page 8, line 9, and that can be problematic. It would be
better to assign a specific year to the standard and to provide
for a way to review it as it changes every three years.
4:26:03 PM
PAUL MICHELSON, Alaska State Home Builders Association, Palmer,
supported SB 220. He said he has sat on the Energy Standards
Committee of the International Code Conference (ICC) for six
years and he thinks that Alaska is the premier leader in this
area. However, he pointed out that Alaska has five to six
different climatic regions and people must be careful about
instituting this policy because what might work well in
Fairbanks won't work well in Ketchikan.
He remarked that SB 220 sets up AHFC to be the main watch dog
for energy, but mainly in the residential arena - where it
should stay. AHFC should not have oversight over commercial
building, which should be given to someone with "a little more
authority." He also mentioned that the National Association of
Home Builders just passed an internal resolution urging Congress
to acknowledge hydro power as a renewable resource. The
Department of Energy is in the process of discussing that
classification. If hydro power is not listed as a renewable
resource, a lot of the existing dams in the country will go by
the wayside, and getting permits for new dams will be quite
difficult. He supported Mr. Owens' comment that ASHRAE 90.1 is
forever changing; and it is very important to label an edition
the state will follow and stay with it.
4:28:56 PM
CO-CHAIR MCGUIRE asked what organization he thought could
oversee commercial building.
MR. MICHELSON said he would give her suggestions in a couple of
days after consideration.
SENATOR WAGONER asked why Congress would want to take hydro out
of the renewable classification and if dams would be taken out
of service if that happened.
MR. MICHELSON replied that is what the Association understood
would happen at its Las Vegas meeting. They are under the
impression that Congress is trying to do away with some of the
existing dams and he clarified that hydro is not currently
listed as renewable.
SENATOR WAGONER said he knows that environmentalists have wanted
to take out some dams on the Snake and Columbia Rivers for
years, but that happens to be the lowest cost electricity in the
United State right now.
MR. MICHELSON agreed. He added the the legislative intent
language calls for a 10-percent increase in energy efficiency by
2015 which is less than the 15 percent increase in energy
efficiency by 2013 and 50 percent by 2023 that the DOE called
for to accept Stimulus money. He asked if the state wasn't
supposed to meet the International Energy Conservation
Coordinating Committee (IECCC) standards within seven years.
CO-CHAIR MCGUIRE said the committee would take a look at that.
4:33:38 PM
PAT LUBY, Advocacy Director, AARP, Anchorage, said he didn't
claim to have any technical expertise on energy, but he has
97,000 members who pay energy bills every month. These customers
need energy for safe living. He explained that older persons use
energy differently than younger workers. They spend 90 percent
of their time in their homes that tend to be older, and usually
they have the least weatherization and insulation. Because of
their greater susceptibility to hypothermia, he tells retirees
not to turn down their thermostats.
MR. LUBY said that AARP members were surveyed to determine how
they were coping with energy costs; 14 percent said they turned
off their energy source during the winter. He urged them to
develop alternative and less expensive energy sources. He said
lawmakers need to reduce energy costs for the state's public
facilities, health facilities and citizens. He talked to a
retired math teacher in Fairbanks last week and her December
heating bill was $750. That bill made her happy because she
expected her other bills to be between $900 and $1000 a month.
She and her husband are concerned about being able to continue
to afford living in Alaska.
He said SB 220 will not only cut energy costs, but also help
keep older Alaskans in the state. He said the legislature did a
great job recently with the historic weatherization and low
income energy assistance programs, and SB 220 is the logical
next step that will also be historical.
4:35:30 PM
MAKO HAGGERTY, Member, Kenai Peninsula Borough Assembly, Homer,
supported SB 220. He thanked the committee for their leadership
and vision. He said, "This is exactly the type of thinking and
action we need from our leaders down in Juneau."
4:37:32 PM
LISA HUGHES, Legislative Liaison, Northern Environmental
Research Center, Fairbanks, supported SB 220. She thanked the
committee for all its hard work and the community outreach
during the Interim. Much of the future economy will come from
sustainable resource and alternative energy development, and she
said that Alaska has the potential to be a world leader in
renewable energy technologies. She hoped the legislature would
do its part to help the state fulfill that role - and most
importantly, help Alaskans find relief from expensive and
unsustainable energy options.
4:39:01 PM
DAVE MESSIER, Renewable Energy Technician, Yukon River
Intertribal Watershed Council, Fairbanks, said they are a
consortia of over 70 tribal and First Nation governments and
supported SB 220. He was encouraged by the mention of renewable
energy training to strengthen mobile work forces for some of the
projects that will be put in place. Emphasizing the importance
of these trainings he noted that over the past two months the
Council has run a number of them for rural Alaskans through
state and federally fund grants and the response from member
tribes has been overwhelmingly positive. He said, "People see
this technology as an answer and they want more of it, but more
than that they want to be a part of it."
MR. MESSIER suggested that "tribal consortia" be specifically
listed under the definition of eligible applicant able to apply
for funding through the Emerging Energy Technology Fund
established in the bill.
4:40:47 PM
KIMBROUGH MAUREY, representing herself, Anchorage, said she is a
property owner in Wasilla and a citizen who goes to extremes to
reduce her electricity and natural gas bills. She supported SB
220. Ms. Maurey said she studied at Duke University and did
Masters studies at Western Washington learning the science
behind climate change. She also works with non profits in
Anchorage and with TDX Power Corporation; and she is seeing
great successes at getting renewable energy in the state. She
thanked the legislature for what it had done so far. She has
knows the effects of these funds are good in other states and
would work wonders in Alaska. Passing this legislation means
that Alaska is taking a step forward in being a leader in
innovative and clean technologies.
MS. MAUREY thanked them for recommending the funding for public
transportation that would reduce traffic on the highways with
new forms of public transit. She said these new systems would
all contribute to new job creation.
4:43:53 PM
BRENDAN BABB, Board Member, Alaska Center for the Environment,
Fairbanks, said they support SB 220 and he thanked the committee
for all of the valuable work it has done and continues to do. He
said he also likes SB 121 and its stress on energy efficiencies.
When power lines were accidentally cut recently in Juneau and
electricity prices sky rocketed, people were able to immediately
reduce electrical use by over 20 percent. He said these high
costs for electricity are what the rural areas regularly see. If
facilities are made 20 percent more efficient, it's possible to
save money and energy without turning down the heat and making
it painful especially for older people. SB 121 and
weatherization will go a long way to helping that.
MR. BABB said he recently went to a talk by Gwen Holdmann,
Alaska Center for Energy and Power, who mentioned advances by
the Denali Commission's Emerging Technology Fund, which is
modeled on SB 150. He also visited Reykjavík, Iceland, in 2007
and saw their amazing geothermal resources. Ms. Holdmann's talk
reminded him that Iceland used to be run completely on hydro
carbons and had to import coal and oil. When those were cut off
during WWII Iceland decided to convert to geothermal, a resource
they had in abundance and went to Boise, Idaho Capital Mall to
study how geothermal was being used there and took that
information back to Iceland. Now they are a leader in geothermal
energy. Alaska, if it uses this Emerging Technology Fund, could
be a world leader in geothermal, tidal, wave, wind and hydro
kinetic technologies; it is already a leader in wind diesel
research, a technology that can be exported to other countries
right now.
4:46:51 PM
SENATOR FRENCH thanked him for his testimony.
4:47:01 PM
THOMAS DEERFIELD, Dalson Energy, Anchorage, Alaska, said he is a
renewable energy consultant and primarily assists communities
with community-scale renewable energy projects, grant writing,
feasibility studies. He is currently working on a 2 mgW biomass
gasification CHP project that is being proposed for the Upper
Tanana. He supported SB 220. When folks approach him to do
grants, he asks them if they have determined how much energy
they use and if they have dealt yet with the energy they waste.
Third he asks what energy resource is feasible to use in their
location. He advises clients that no granting agency in their
right mind will give grants for renewable energy projects when
the applicant hasn't determine what their energy use is. He also
advises that it would be "virtually immoral" to spend anyone's
money on renewable technology for a building that is still
wasting energy.
MR. DEERFIELD related that he didn't think renewable energy
technology is on a level playing field with conventional
energies and therefore he advises that universally cheaper is
not the correct goal for energy. If renewables stabilize costs
and create local jobs and are renewable rather than
unsustainable and they are environmentally clean, why be
obsessed with cheaper, he reasoned. "Cheaper today is a short
sighted concept." Fossil fuels are volatile and will surely
escalate again sooner or later because oil, coal and gas are
finite resources. They should focus on cost stability and
consider where the money goes.
If all costs are considered included PCE reductions reduction in
wildfire fighting costs and the benefits of localization of the
economy and whatever value can be attached to non-local fuel
sources - things like biomass energy do become less expensive,
Mr. Deerfield stated. Also the emerging technology industry in
renewables is looking for testing ground to try out new projects
and Alaska can be a leader with its high conventional fuel
prices and very challenging climate, off-grid communities and
skilled labor force.
MR. DEERFIELD said the best investment Alaska can make in its
future is to do essentially three things: 1. Fully assess the
renewable resources of biomass, wind, solar, hydro, tidal and
the appropriate locations for each of those, 2. Reduce our waste
especially state buildings; and 3. Support and incentivize the
development and deployment of sustainable site specific and
right sized renewable energy systems.
4:51:12 PM
JASON MEYER, Program Manager, Emerging Energy Technology
Program, Alaska Center for Energy, University of Alaska
Fairbanks, supported SB 220, particularly the Emerging Energy
Technology Fund on page 5, line 21. He said he believes this
piece of legislation is critical to meeting the state's stated
goals of sustainable energy for Alaska because it fills an
important funding gap for energy development. He explained that
technology is a development process that moves from idea to the
lab to demonstrations then to commercialization. This transition
is known as "Death Valley" to many in the industry. Great ideas
or potential solutions cannot receive funding or be implemented
because they have not been proven and they have not been proven
because they have not received funding. This, in effect, locks
up many of Alaska's great energy resources - wave power, tidal
energy, solid waste energy, underground coal gasification - as
there is no proven method of utilizing them.
MR. MEYER said that for the most part, Alaska imports all of its
energy solutions, but the state could change that by promoting
innovative energy solutions and the Emerging Energy Technology
Fund is such an example. He said some of Alaska's communities
emerging energy projects include waste heat recovery from the
Tanana Chiefs region, biomass digesters for Cordova, a
commercial-scale wood pellet boiler for Juneau, a seawater heat
pump in Seward, and solar thermal system for elders in Kotzebue.
He related that the most valuable element of funding these
projects through public funding is having access to the data and
analysis, reports and lessons learned. It is an early
opportunity to analyze technologies especially if future funding
decisions or large spending initiatives are being considered.
He echoed the gentleman from Ketchikan's comments that the
current bill addresses his concerns about state spending on
noncommercial energy technology. Finally, he said Alaska's
energy needs and infrastructure, particularly in rural Alaska,
will be largest growing market of energy demand in the next 50
years along with the developing world. By developing home-grown
technology and expertise Alaska has the opportunity to become a
world leader in these technologies.
4:55:05 PM
CO-CHAIR MCGUIRE thanked him for his testimony and said they
look forward to having him as a resource.
4:55:23 PM
MIRA KOHLER, President and CEO, Alaska Village Electric Co-op
(AVEC), said they serve about 53 rural Alaska villages and that
they support SB 220. She said the state has needed a
comprehensive energy policy for many years. She echoed others'
comments about conservation standards and improvements and said
the Emerging Energy Technology Fund has been very near and dear
to their hearts for a long time. The renewable energy production
tax credit is going to catalyze a lot of major projects in our
state, and she said she is very interested in what may transpire
with renewable energy as it develops across the state.
She said Alaska needs a viable long-term energy solution that
impacts the entire state; she didn't want our regions to be
pitted against each other for scarce resources. The resource
should be local, indigenous, and perpetual.
4:57:58 PM
IAN DUTAN, Alaska SeaLife Center, Seward, strongly supported SB
220. He said that the Center is Seward's largest private
employer and the state's only public aquarium. They believe the
action it takes is practical and the targets it sets are
realistic and achievable. He specifically said that he would
like to see Section 18.15.310 on page 2, line 27, on
efficiencies in public facilities, to be expanded to include
non-profit partner institutions like the Alaska SeaLife Center.
He explained that they were initially funded by a grant from the
Exxon Valdez Oil Spill Trust Council and it operates in the
exactly the same manner as a public library, the University
research center or a tourism visitor center and yet it enjoys
none of the privileges of public support that those facilities
enjoy. For instance, under the American Recovery and
Reinvestment Act, the Center is specifically excluded from
receiving any funding for energy conservation because they are
designated as a public aquarium. This exclusion has made it very
difficult for them to compete for critical funding and has
undermined their ability to not only retain staff, but to
maintain their position as a leading state marine tourism
attraction.
He added that this limitation has served to dampen their
willingness to invest in emerging energy technology and
mitigation research. This brought him to a second point in
section 44.99.115 on page 13, lines 25-27, that the state energy
policy should not limit the range of renewable energy
technologies that qualify for this act and suggested adding a
reasonable "current options" - specifically ocean thermal
energy, which is comparable to geothermal energy.
MR. DUTAN explained that over the years, with the help of
Senator Stevens, the Seward community, and most recently with
the support of the Denali Commission, he has developed a project
to implement ocean thermal energy using ambient seawater from
Resurrection Bay. That same technology is widely used in Europe
already, he said, and has provided heating in communities with
up to 40,000 people in Scandinavia. So, it is a proven
technology that has never been applied in Alaska.
He said the SeaLife Center has received some funding from the
Emerging Technology Fund to implement what would be the largest
scale application of this project in Alaska. It will save them
around 57,000 gallons of fuel oil each year and will reduce
their green house gas emissions by more than 1.2 million pounds;
but most importantly this technology would enable them to
maintain their year-round work force of more than 80 full-time
equivalent staff keeping the cost to the visitors down and
critical marine research going.
They also believe that this project has enormous leverage
potential, because this technology could be applied in Southeast
Alaska, Southcentral Alaska, and Southwestern Alaska. He
mentioned there would be a TV show about it soon.
CO-CHAIR MCGUIRE asked him what channel and what time the showed
would be on.
MR. DUTAN answered it is scheduled to be on channel 11 at 10
p.m. on Friday night.
5:02:39 PM
BRAD REEVE, General Manager and CEO, Kotzebue Electric
Association, said he is also president of the Alaska Power
Association. Both organizations support SB 220, he said. The
bill has a lot of good elements: energy efficiency,
sustainability, and renewable portions that can fund long-term
renewable energy technologies. The addition of the Emerging
Energy Technology Fund will allow new things to be tried. He
said that Kotzebue is the recipient of a solar thermal project
that will be successful because of the high refraction rate it
gets. These technologies will lead to new jobs and a sustainable
economy.
5:05:04 PM
CHARLES DEARDON, representing himself, Ketchikan, supported SB
220. He said he found "no exception" to any comment that anyone
before him had made. He thanked them for their efforts. He said
that Ketchikan liked the energy efficiency, weatherization and
rebate program. They have also adopted the International Code
Council energy codes, a big step, that includes commercial work.
5:06:23 PM
MONTE WORTHINGTON, Director of Project Development, Ocean
Renewable Power Company (ORPC Alaska), supported SB 220. He said
they were selected as one of the recipients for the Emerging
Energy Technology Grant for their Nenana Hydro Kinetic Project
on the Tanana River in collaboration with the Alaska Center for
Energy. They are also pursuing a tidal energy project in Cook
Inlet in conjunction with researchers at UAA to develop
materials testing and environmental modeling and monitoring
techniques for this project.
MR. WORTHINGTON said his company relies on both public and
private funding sources to develop these projects in a timely
manner. Passing this bill and establishing particularly the EETF
will go a long way to not only provide clean emissions and free
power to Alaskans, but also establish Alaska as a leader in this
field. He supported the renewable tax credits in section
43.20.046 because production based tax credits and feed-in
tariffs are important aspects of renewable energy development as
it helps transition technologies from the emergent phase through
to being competitive in the market phase. He also supported the
University's involvement with renewable research.
SENATOR WAGONER asked where his tidal project is.
MR. WORTHINGTON answered off of Fire Island.
5:10:04 PM
CATHERINE KEITH, Wind Diesel Application Center, Alaska Center
for Energy and Power (ACEP), University of Alaska, supported SB
220 and specifically the Emerging Energy Technology Fund. She
said many things can be done to improve performance of wind
diesel systems and energy storage systems for them.
5:11:17 PM
TOM LAKOSH, representing himself, supported SB 220. The most
important aspect of improvement would be the codification of the
energy conservation and renewable energy goals. The reason is
because it is necessary for all of the state agencies to have
codified statute in order to apply the policy the committee is
promoting. The RCA, in particular, needs codified guidance from
the legislature in order to make its rulings. They need to be
able to look to a codified energy efficiency goal in order to be
able to "decouple" energy production from rates; they need the
codified goal of renewable generation sources in order to rule
on projects that are submitted by utilities and private power
producers in deciding what which projects will go forward and
approving rates for them.
He added that energy storage is needed; and while ACEP wanted it
for wind/diesel, money could more effectively be kept in
communities if storage for wind/biogas or wind/biodiesel backup
were developed. This should be an energy policy goal and could
be included as a tax credit of up to 15 percent of the per unit
cost of that particular fuel source.
MR. LAKOSH said the levels for conservation should be
substantially improved and should at least match the 15 percent
improvement in energy efficiency by 2015 and 20 percent
improvement by 2020. The renewable energy generation goal should
be improved as well, but should have some short-term goals so
that that planning for the renewable projects could be
undertaken immediately to have the most long-term effect.
He said AEA and the DOE should be tasked with generating those
Alaska-specific commercial and residential building codes suited
to each of Alaska's climate zones so that substitutes that will
meet or exceed the ASHRAE standards will be in place. To the
extent that there is any subsidy in a PCE or in an energy grant
fund, those communities and utilities should be mandated to
adopt those specifically tailored commercial building codes,
because it makes no sense to pour state money into a sieve.
5:17:02 PM
PAUL KENDALL, representing himself, thanked everyone for the
comments and stated for the record that he had no conflicts of
interest. He supported SB 220. He said he had started a website
labeled "MFH2O" that stands for "magnetic fields" where he has
compiled a series of stories about energy technologies relating
to residential use; reasoning that all business comes down to
families eventually. He thought they need to start a "Personal
Residential Life Essential Clean Energy Needs Committee." He
talked about how home fueling stations are being developed by
different companies and remarked that the children of Alaska
have a chance to lead the world overnight.
MR. KENDALL warned them, however, that the state was going to go
through a repeat of 1981 when the price of fossil fuels dropped
so much that it decimated funding and markets for alternative
energy. Now, technology is emerging at a pace that he has never
seen before, and the gas [pipeline] is so far out that it is
unpredictable. He hoped that whatever the legislature does that
it brings the oil companies to the table so some kind of legal
foundation could be built. He urged them to focus on the TAPS
line being two-thirds empty and that companies might be "looking
to finagle some hydrogen or something down that line."
5:23:49 PM
CO-CHAIR MCGUIRE noted that the committee had run over its time
limit and thanked everyone for their testimony. She adjourned
the meeting at 5:23 p.m.
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