Legislature(2009 - 2010)BARNES 124
02/18/2010 03:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| Overview: Rural Energy Issues | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
February 18, 2010
3:07 p.m.
MEMBERS PRESENT
Representative Bryce Edgmon, Co-Chair
Representative Charisse Millett, Co-Chair (via teleconference)
Representative Kyle Johansen
Representative Pete Petersen
Representative Chris Tuck
MEMBERS ABSENT
Representative Nancy Dahlstrom
Representative Jay Ramras
OTHER MEMBERS PRESENT
Representative Neal Foster
COMMITTEE CALENDAR
OVERVIEW: RURAL ENERGY ISSUES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
RON KREHER, Chief
Field Services
Division of Public Assistance
Department of Health and Social Services (DHSS)
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
hearing on rural energy issues.
STEVEN HAAGENSON, Executive Director
Alaska Energy Authority (AEA)
Department of Commerce, Community, & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
hearing on rural energy issues.
TARA JOLLIE, Director
Division of Community and Regional Affairs (DCRA)
Department of Commerce, Community, & Economic Development
(DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
hearing on rural energy issues.
MEERA KOHLER, President and CEO
Alaska Village Electric Cooperative (AVEC)
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
hearing on rural energy issues.
BOB BREAN, Director
Research & Rural Development
Alaska Housing Finance Corporation (AHFC)
Department of Revenue
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
hearing on rural energy issues.
JOEL NEIMEYER, Federal Co-Chair
Denali Commission
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
hearing on rural energy issues.
DENALI DANIELS, Senior Energy Program Manager
Denali Commission
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
hearing on rural energy issues.
ACTION NARRATIVE
3:07:15 PM
CO-CHAIR BRYCE EDGMON called the House Special Committee on
Energy meeting to order at 3:07 p.m. Present at the call to
order were Representatives Tuck, Millett (via teleconference)
and Edgmon. Representatives Johansen and Petersen arrived as
the meeting was in progress. Representative Foster was also
present.
3:07:25 PM
^OVERVIEW: RURAL ENERGY ISSUES
OVERVIEW: RURAL ENERGY ISSUES
[Contains discussion of HB 305]
3:07:27 PM
CO-CHAIR EDGMON announced the only order of business would be an
overview on rural energy issues. The purpose of the overview is
to hear a structured conversation about the services that are
provided to rural Alaska regarding energy, including
recommendations from the providers for improvements to those
services. Participating in the roundtable are representatives
from the following organizations: Alaska Housing Finance
Corporation (AHFC), Alaska Village Electric Cooperative (AVEC),
Alaska Energy Authority (AEA), Denali Commission (DC), Division
of Community & Regional Affairs, Department of Commerce,
Community, & Economic Development (DCCED), and Department of
Health and Social Services (DHSS).
3:10:07 PM
RON KREHER, Chief, Field Services, Division of Public
Assistance, Department of Health and Social Services (DHSS),
stated that he oversees the operation of the state's heating
assistance programs. Mr. Kreher informed the committee that the
heating assistance programs are performing well. The programs
began issuing benefits 11/1/09, and applications will be
accepted through 4/30/10. There are two programs; the Low
Income Home Energy Assistance Program (LIHEAP) and the Alaska
Heating Assistance Program (AKHAP). LIHEAP is federally funded
and serves families with incomes below 150 percent of poverty;
AKHAP is state funded and serves families with incomes between
151 percent and 225 percent of poverty. In FY 2009, the state
served 10,983 households through the LIHEAP program, and tribal
organizations served 6,833 households, using federal funds.
Also in FY 2009, the state served 2,047 households and tribal
organizations served 339 households using state funds. Overall,
20,191 households were served, and he anticipated receiving a
similar number of applications this year.
3:13:25 PM
CO-CHAIR EDGMON asked whether "last year" was 10/08 through
04/09.
3:13:43 PM
MR. KREHER said correct. He then explained that both programs
are statewide with 163 communities served by the state office
and 120 communities served by tribal organizations. For
example, in Juneau, the Tlingit-Haida Regional Housing Authority
(THRHA) is the tribal grantee that administers AKHAP and LIHEAP
for Native applicants, while the state administers the programs
for non-Native applicants. Across the state there are eleven
tribal organizations administering heating assistance for LIHEAP
and of those, eight are also AKHAP providers. Mr. Kreher said
that tribal organizations receive funding through their share of
the LIHEAP block grant to the state; actually, the tribes
administer about 30 percent each of the federal and state monies
supporting LIHEAP and AKHAP. He turned to the subject of award
determinations. Each community is assigned heating degrees
according to AkWarm guidelines from the Alaska Housing Finance
Corporation (AHFC). Basically, his office looks at the type of
housing, the location of the community, and heating degree days
to determine the base heating needs for each household. Upon
receipt of an application, the staff will determine the number
of community heating points the household is eligible for and
then make further adjustments, based on the aforementioned
variables, plus income, and the type of fuel used. The value of
the points and the heating assistance award is further based on
the amount of the funding that is anticipated for the program,
the number of applicants that is anticipated, and the average
number of community heating points issued in the prior year.
For example, FY 2010 LIHEAP points are estimated to be $115 per
community heating point, thus a household with ten points will
receive a heating assistance award of $1,150 to give to the
vendor of the applicant's choice. He opined the programs
supplement a portion of the households' need for heating
assistance, but do not pay the entire bill. Furthermore, the
intent of the programs is that households with the lowest income
and the highest number of heating degree days would get the
highest award; in fact, the program is heavily weighted to
provide the most benefit for those with the highest need. The
result is that the bulk of the payments go to rural communities
because rural areas more often have higher community heating
points and lower incomes.
3:20:10 PM
CO-CHAIR EDGMON observed that the number of participants is
larger in urban communities, but most of the money goes to rural
areas throughout the state.
3:20:38 PM
MR. KREHER said yes. In further response to Co-Chair Edgmon, he
confirmed that "it works out the same way for both programs ...
the very same point system is used." There is also an
adjustment by income in that an applicant with no income will
receive 100 percent of the allowable points, and those with
incomes will receive a smaller percentage. For example, in the
AKHAP program, an applicant with an income of above 150 percent
of poverty will receive 40 percent of the allowable points. He
then referred to a chart in the committee packet titled, "FY
2010 HAP Awards, Gallons of Fuel Covered by Award," that showed
the average points allowed by location, the average price of
heating fuel by location, and the estimated average awards. He
concluded that the programs are meeting a significant need for
low income households across the state, especially in rural
Alaska. Although recent funding sources have been fairly
stable, 2009 was an interesting anomaly in that the programs
received emergency contingency funds from federal and state
sources. Last year his office received $51 million dollars to
use towards energy assistance. However, this year, $5 million
was appropriated for AKHAP and Alaska's share of the federal
block grant was $25 million, of which about $9 million goes to
tribal organizations.
3:24:22 PM
REPRESENTATIVE TUCK asked whether the assistance from President
Chavez of Venezuela goes through DHSS.
3:25:00 PM
MR. KREHER indicated no.
3:25:06 PM
REPRESENTATIVE FOSTER asked whether fuel received through the
CITGO program would affect an applicant's award through AKHAP or
LIHEAP.
MR. KREHER said that is correct.
3:25:30 PM
REPRESENTATIVE JOHANSEN observed that he would qualify for the
program.
3:26:45 PM
MR. KREHER, in response to Representative Petersen, further
explained that the total funding level for this year is $32.6
million; therefore, his office has determined that the heating
point value is $115 per community heating point.
REPRESENTATIVE PETERSEN asked whether $32.6 million is adequate.
3:27:54 PM
MR. KREHER indicated that given the challenges many households
face, and the work opportunities throughout the state, many
working families are "feeling the pinch pretty hard." He
anticipated that the community heating point value of $115 would
meet less than one-half of a household's heating cost, and he
was unable to say whether this amount was adequate. Mr. Kreher,
in response to Co-Chair Edgmon, said his department would
disperse any additional funds to participants.
3:29:19 PM
CO-CHAIR MILLETT asked how many of the applicants are elders and
seniors.
3:29:36 PM
MR. KREHER responded that elders and seniors are a priority
population, as well as households with children. As of 2/15,
awards were made to 5,900 LIHEAP households and about 1,100
AKHAP households. Of those, 2,000 households had a disabled
resident, 2,200 households had an elderly resident, and 840
households had a disabled and an elderly resident. Mr. Kreher,
in further response to Co-Chair Millett, indicated that DHSS
advertises the programs in rural newspapers.
3:31:24 PM
CO-CHAIR EDGMON asked for the percentages of seniors and
disabled who participate in the programs.
3:31:40 PM
MR. KREHER offered to provide the committee data from a full
year.
REPRESENTATIVE JOHANSEN asked for clarification on the
application process and eligibility.
3:32:44 PM
MR. KREHER explained that about 30 percent of applicants are not
eligible for a variety of reasons. In further response, he said
that the funding amount has not been a problem in the recent
past, except for tribal organizations that have had more
eligible households than they can serve.
REPRESENTATIVE JOHANSEN asked for further clarification on the
scoring factors. He asked, "Do these scoring factors, is that
the attempt to ... push the money where I would be less likely
to get a grant if I were competing with somebody who lived out
... who really needs it...?"
3:34:14 PM
MR. KREHER, referring to the AKHAP program, informed
Representative Johansen that an applicant who meets the
eligibility criteria must complete an application and provide
proof of heating utility costs. Based on the size of the
household and whether there was an elderly or disabled member of
the household, the applicant would receive an award; however,
the size of the award would be adjusted also on the location of
the home, the applicant's income bracket, the type of heat used,
and other factors. As awards are not paid to households with
fewer than two points, the amount of the award could vary
significantly.
3:36:42 PM
REPRESENTATIVE JOHANSEN cautioned that unscrupulous applicants
may attempt to "work the system."
MR. KREHER noted that 950 applications have been denied, mostly
due to income.
3:38:11 PM
REPRESENTATIVE PETERSEN asked whether more points are given for
a home in a colder climate.
MR. KREHER said that is correct.
CO-CHAIR EDGMON posed a question to the remaining witnesses:
What are the strengths and weaknesses in terms of delivering
energy related services to rural Alaska?
3:39:18 PM
STEVEN HAAGENSON, Executive Director, Alaska Energy Authority
(AEA), Department of Commerce, Community, & Economic
Development, said that since AEA is not a direct supplier of
energy services, or the end user of services, he would discuss
the areas of energy utility assistance being provided by AEA to
some of the utilities. The nature of the requests for
assistance indicate the areas in which utilities need higher
levels of assistance, and discussion of these requests may lead
to ideas for expansion, or a re-focusing of services to rural
utilities. He indicated there are requests for AEA to provide
training programs for small diesel plant operators,
hydroelectric plant operators, bulk fuel tank operators, power
cost equalization clerks, utility managers, bulk fuel
bookkeepers, and electric utility bookkeepers. Requests for
technical assistance are also received, and technical assistance
is provided in many areas such as searching for parts, and help
with malfunctioning equipment. Mr. Haagensen gave examples of
questions that are asked regarding the operation of small power
plants. AEA has a team that is available to assist on-site, or
by remote monitoring. Remote monitoring is available to about
30 small utilities and could be expanded to serve larger
utilities or multiple sites. This system could also provide
data on the need for an oil change to prevent equipment failure,
or to monitor generator efficiency to ensure the lowest cost
power. Innovation and technology sharing have resulted in
stacked heat recovery systems to increase efficiencies, and the
use of used oil blenders. He opined that networking is critical
to optimize electrical utilities because utilities can
participate in the Alaska Rural Energy Conference, and other
forums, to share information; in fact, emerging technologies can
be risky, and shared information is valuable.
3:43:29 PM
TARA JOLLIE, Director, Division of Community and Regional
Affairs (DCRA), Department of Commerce, Community, & Economic
Development (DCCED), informed the committee of the need to
directly connect community stability and consistent
administration. On the subject of energy, the direct connection
is between having an economy or business, and the supply of
energy "keeping the lights on in any public utility." She
opined that the strength of DCRA is in providing technical
assistance at the community level. As a matter of fact, DCRA
estimates that 40 percent of small communities off of the road
system are less than able to adequately manage their energy
supply, and are in need of technical support. Where the local
utilities get technical support, businesses can operate.
However, in a very small community it is possible for one user
to "run the utility bill up" and almost shut down power to the
entire community. Although DCRA has local government
specialists who can offer technical assistance to communities,
there is a need for more staff. Ms. Jollie stressed that
funding for community revenue sharing is extremely important to
small communities that need help with cash flow to pay for barge
deliveries. DCRA can guarantee payment to the fuel vendor, or
provide bridge loans to communities that could not get bulk fuel
loans. Assisting communities in this way enables them to
purchase fuel at better prices; in fact, many of the shared
revenue funds are used to purchase fuel. Ms. Jollie concluded
that the two most important DCRA programs are community revenue
sharing at its present level of funding, and the expansion of
local technical assistance to communities.
3:48:46 PM
CO-CHAIR EDGMON asked whether more staff could be used to assist
the communities with limited capabilities.
3:49:11 PM
MS. JOLLIE said yes, and added that these issues prevent
communities from participating in available programs and from
having sound financial management.
CO-CHAIR MILLETT asked all of the witnesses whether the creation
of a department of energy is valuable to HB 305.
3:50:34 PM
CO-CHAIR EDGMON suggested that the question also include the
consolidation or centralization of energy services, and should
also address the current fragmented nature of all of the
different programs and services.
MS. JOLLIE has heard that there is difficulty knowing where to
go regarding state services. She acknowledged that it is
difficult to navigate the system; in fact, DCRA helps people do
that and collaborates across agencies.
3:52:38 PM
MR. HAAGENSON pointed out that centralizing statewide services
and centralizing energy services may be two different things.
Referring just to energy services, he said he has not heard of
concerns, but there are four or five places one can go, and "I'm
sure there are places we can consolidate in that area."
3:54:56 PM
MEERA KOHLER, President and CEO, Alaska Village Electric
Cooperative (AVEC), informed the committee energy related
services are two-fold: electricity and liquid fuel. The
geography of Alaska presents unique problems, such as small
communities that are spread out over a vast and inhospitable
terrain. The generation and distribution of electricity is a
complex system, but isolated communities attempt to accomplish
this task. Additionally, the modest level of technical support
provided by the state is insufficient. Per capita consumption
of electricity in rural Alaska is about 50 percent of that in
cities and conservation efforts have already been put in place.
Ms. Kohler explained that petroleum fuels represent two-thirds
to three-fourths of the energy consumed by Alaskans, and also
represents an enormous cost to rural budgets due to
transportation costs to small markets. Furthermore, the ultra
low sulfa diesel rules are adding confusion. Ms. Kohler noted
that one of the few strengths in the rural Alaska energy
situation is the virtual immunity to terrorism and cyber-
attacks. The weaknesses are: very small markets; very high
investment per consumer for electric systems; modest human
capacity for highly technical generation systems, especially
alternative and renewable energy systems; market isolation;
conservation and efficiency efforts resulting in further
compression of economies of scale; oppressed economic
development due to high energy costs; limited local job
opportunities resulting in out-migration of the most talented
and capable workforce.
3:58:48 PM
CO-CHAIR EDGMON inquired as to how to provide technical services
to villages in order to save them money and allow them to
leverage money at the local level.
3:59:45 PM
MS. KOHLER advised that this is a unique situation in that the
generation of electricity is on-site in every community;
elsewhere in the country communities are connected by
transmission lines, and generation takes place in a location
central to the technicians. She noted that AVEC built a wind
generation power plant in Toksook Bay and sent transmission
lines out to small communities, thereby keeping the need for
technical competence in one community. Accordingly, a further
reduction in the number of communities with stand-alone
generation systems from 300 to 100, would improve economies of
scale, and focus the technical competence in larger communities.
Ms. Kohler said, "That is part of the solution I do propose, is
that we do have to get realistic and aggressive about
interconnecting communities and creating, if nothing else,
virtual grids to try and get these communities consolidated."
In response to Co-Chair Millett, she agreed with the concept and
described several different departments providing the same
service. She questioned whether consolidation would include the
larger programs such as gas, petroleum, and crude oil. Ms.
Kohler concluded that retail-type services are closely related
and would benefit from consolidation.
4:02:49 PM
BOB BREAN, Director, Research & Rural Development, Alaska
Housing Finance Corporation (AHFC), Department of Revenue,
informed the committee that AHFC is more involved in the demand
side of the energy picture, as opposed to the supply side. Thus
its work is directly relative to the residential and commercial
use of energy. Regarding the strengths of energy delivery in
rural Alaska, he advised that AHFC successfully sub-contracts
out to regional entities. AHFC is currently working with five
weatherization contractors statewide, and with twelve regional
housing authorities, that are very effective in housing and
infrastructure development throughout Bush Alaska and across the
state. AHFC provides technical assistance and the financial
aspect, but empowers regional housing authorities to deliver its
program. In this way, the housing authorities are able to
retain and create jobs. He stated that this model is one of
AHFC's great strengths and has proven its value. Turning to the
subject of weaknesses, Mr. Brean agreed with Ms. Jollie that
energy issues in rural communities must be considered in the
light of other aspects of community development in each
community. For example, if a community has invested in capital
projects there may still be debt, and the old debt to equity
ratio will prevent a community from beginning new projects that
could result in energy savings. He recalled that DCRA used to
coordinate all of the aspects of local economic development with
new projects in a database. Continuing to address weaknesses,
he stressed that all aspects of energy projects need to be
coordinated with local economic development such as coordinating
freighting of materials to gain economies of scale, coordinating
dirt work with sewer and water projects, and doing a financial
analysis of the community. Mr. Brean advised that there is a
division in DCCED that is very good at the abovementioned task.
Also, on the issue of the consolidation of state services, he
re-stated that AHFC's part is only on the demand side and
suggested the use of the original DCRA model; however, this is
not limited to energy but must include the multiple aspects of
economic development of rural Alaska. For AHFC's formal
position, he deferred the question to its CEO and board of
directors.
4:09:49 PM
JOEL NEIMEYER, Federal Co-Chair, Denali Commission, informed the
committee that the Denali Commission has no position on the
consolidation of state government. He deferred to Commissioner
Karen Rehfeld to further address this question on behalf of the
Denali Commission. He then pointed out that the Denali
Commission is comprised of seven Alaskans who are delegated by
Congress, and who have administered almost $1 billion dollars
over the last ten years, with support from many other Alaskans.
Mr. Neimeyer stated that the question posed on the delivery of
energy was given to the Denali Commission's energy advisory
committee and the energy coordinator would speak to its
position.
4:11:59 PM
DENALI DANIELS, Senior Energy Program Manager, Denali
Commission, related that the commission has three points that
represent the strengths of rural energy delivery. The first is
an increased motivation by communities toward greater self-
sufficiency, and an emerging entrepreneurial spirit in response
to energy challenges. Secondly, regional entities of all types
are strong; for example, in Chevak, the city and tribal
governments are coordinating steps to become more effective and
self-sufficient. Finally, she advised that over the past 11
years, the Denali Commission, along with other government and
private funders, has elevated standards for communities
pertaining to the sustainability of infrastructure development.
During that time, the Denali Commission has invested over $350
million in basic energy infrastructure statewide such as bulk
fuel storage, rural power system upgrades, renewable energy
projects, and alternative energy projects. In fact, 93
communities received improvements to bulk fuel facilities, and
46 communities have received upgraded or new rural power
systems.
4:14:23 PM
MS. DANIELS turned to the challenges facing rural areas, and
noted that 66 communities remain on the bulk fuel facility
deficiency list with an estimated cost for upgrades of $257
million. Further, rural power system upgrades are needed in 78
communities. Secondly, the Denali Commission has limited
authority to enforce adherence to the requirements attached to
its grants; thus, alternatives for post-grant compliance are
needed to ensure that the infrastructure funded will last 30
years. The final weakness noted was that Denali Commission
funding is declining and there is a greater need for state
support to leverage federal funding.
4:17:43 PM
REPRESENTATIVE JOHANSEN asked how many different divisions,
departments, and agencies the Denali Commission deals with when
working on energy projects within the state.
4:18:27 PM
MR. NIEMAYER stated in his 25 years of experience working in
rural Alaska, what he has seen with state and federal agencies,
and with stakeholder groups, are "silos of funding and silos of
programs." This situation leads to lost opportunities. He
encouraged the legislature to "reduce those silos, or make those
silos work better with one another." For example, a rural
community may have twenty to forty community buildings, and
seven or eight different funding streams interested in
weatherizing the buildings. An energy efficiency project on a
2,000 square foot building is a modest undertaking; however, if
the funding streams are coordinated and the project includes
buildings in 200 communities, it becomes very complex. Further,
if the funding streams work together on a specific location,
there would be an opportunity to leverage the funds, even a
small community could participate, and a significant impact
could be made.
4:22:07 PM
CO-CHAIR EDGMON observed that considering the way services are
delivered in Bush Alaska, two key participants not present at
this discussion are the regional not for profit organizations,
and the regional housing authorities. For example, he opined
the Bristol Bay Native Association (BBNA) serves as the de facto
department of energy for the Bristol Bay region. He recalled
testimony that there are silos throughout the statewide
directory of services and programs. Co-Chair Edgmon asked the
witnesses for recommendations as to what the legislature could
do to improve the situation.
4:23:24 PM
MR. HAAGENSON pointed out Alaska's two curses: low usage and
long distance. He encouraged the rural utilities to organize
under one umbrella in a manner similar to the Greater Railbelt
Energy Transmission Corporation (GRETC). This would allow for
remote monitoring, bulk fuel purchasing, and planning for joint
financing and deliveries, to develop needed economies of scale.
He stressed that the business model must come from the
utilities, and the ultimate solution must be picked by the
communities.
4:25:45 PM
CO-CHAIR EDGMON announced the Alaska Rural Energy Conference
will be held 4/27-29/10 in Fairbanks.
4:26:05 PM
MS. KOHLER agreed that rural utilities need a generation and
transmission (G&T) concept for rural Alaska to consolidate
competent operations under one roof, and to supply the technical
support necessary to operate a competent utility. The issue,
however, is how that would be funded. She suggested that there
should be a rural connection to GRETC wherein savings on energy
in the Railbelt would be spread across the state to operate
competent utilities in rural Alaska. Ms. Kohler said this idea
is supported by the fact that the benefits outweigh the costs.
She encouraged the legislature to adopt and fund an aggressive
plan to connect Alaskan communities to a common grid, physically
or virtually, for a variety of reasons. Also, working with
private industry, the legislature needs to ensure broadband
access to rural Alaska. The lack of internet service has
hampered the operation and management control capabilities vital
to the development of alternative and renewable energy
technologies in rural Alaska, as well as economic development.
Furthermore, the legislature needs to ensure that a
comprehensive communication plan is developed to assist rural
Alaska comply with Environmental Protection Agency (EPA) rules
for conversion to ultra low sulfur diesel. Ms. Kohler cautioned
that there is fear in the villages about this issue. In
response to Co-Chair Millett, she said that although energy
services are provided by numerous departments within the state,
there is not a cabinet level position with a direct line to the
governor, and she stated her strong support of consolidated
energy programs. In conclusion, Ms. Kohler asked the committee
to review the University of Alaska Anchorage (UAA) Institute on
Social and Economic Research (ISER) report about rural fuel
costs. She then announced that AVEC is building new tugs and
barges to help bring competition to the Western Alaska fuel
market.
4:31:07 PM
CO-CHAIR MILLETT asked how consumers are protected if there is
no Regulatory Commission of Alaska (RCA) oversight of a large
scale G&T cooperative.
MS. KOHLER explained that AVEC is a cooperative serving 53
villages, and it is not economically regulated by the RCA. AVEC
is regulated by its Power Cost Equalization (PCE) rates and this
process is similar, except for the investigation aspect. She
opined that the relative size of rural Alaska allows for
effective regulation by local boards of directors, with the
possible exception of investor-owned utilities.
4:33:19 PM
CO-CHAIR MILLETT re-stated her search for guidance on the
balance between the overregulation of utilities, and consumer
protection.
MS. KOHLER advised that an acceptable model is a work in
progress, but it can be more easily achieved in a smaller
community than in a larger community.
CO-CHAIR EDGMON announced the presence of Kathie Wasserman from
the Alaska Municipal League.
4:35:04 PM
MS. JOLLIE clarified that her previous comment on consolidation
referred to statewide services, and was not specific to the
subset of energy services. From the perspective of DCRA, she
then recommended that the legislature provide full funding for
community revenue sharing. She also agreed with Mr. Brean that
the holistic approach to community development is key in smaller
communities, and urged funding for three additional DCRA
positions to provide the level of community assistance needed.
4:37:21 PM
CO-CHAIR EDGMON asked whether DCRA has partnership opportunities
with the tribes.
MS. JOLLIE said DCRA works with the tribes all the time, in
addition to working with non-profits, tribal councils, housing
authorities, city administration, and municipalities. In
response to Co-Chair Edgmon, she said there 386 entities in the
state of which 232 are municipalities and unincorporated.
4:38:35 PM
MR. BREAN spoke of two of AHFC's goals for this legislative
session. Firstly, AHFC has proposed an energy efficiency
revolving loan fund. The intent of this proposal is to use $18
million dollars of federal stimulus money as seed money to
create a revolving loan fund. Using AHFC's vehicles and
mechanisms, the $18 million would then be leveraged into $250
million to $275 million. Retro-fits are not cheap in Alaska,
and the higher amount would result in a meaningful program that
could be made available to municipalities, schools, and state
agencies for energy conservation retro-fits on larger
facilities. Secondly, AHFC is having great success with the
$200 million weatherization program, and anticipates that the
money will be fully encumbered by 2011. The $160 million rebate
program is also fully obligated. Contractors continue to "ramp-
up" their capacities to provide the labor and materials needed
for these programs, and he cautioned about a "boom and bust"
situation when the program runs out of funds. In fact, between
10 percent and 15 percent of new program monies could be saved
by a continuation of the program, as opposed to a "ramp down and
ramp up." AHFC estimates that 2,000 jobs are being retained or
created by the weatherization and rebate programs.
Weatherization will be completed on 10 percent of the homes in
need, and Mr. Brean concluded that if funding remains static,
AHFC could do more.
4:42:46 PM
MS. KOHLER expressed her hope for additional progress on these
issues.
4:43:33 PM
CO-CHAIR EDGMON announced that HB 296 is scheduled to be heard
on 2/23/10, and he then reviewed the agenda for 2/20/10. He
thanked the witnesses and invited further written comments.
4:46:32 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 4:46 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AKHAP Energy Meeting 021810.pdf |
HENE 2/18/2010 3:00:00 PM |
|
| House Energy Committee AVEC 02182010.pdf |
HENE 2/18/2010 3:00:00 PM |