02/25/2020 10:15 AM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| HB37 | |
| HB151 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 151 | TELECONFERENCED | |
| *+ | HB 37 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
February 25, 2020
10:18 a.m.
MEMBERS PRESENT
Representative Grier Hopkins, Chair
Representative Ivy Spohnholz, Vice Chair
Representative Zack Fields
Representative Tiffany Zulkosky
Representative Lance Pruitt
Representative George Rauscher
MEMBERS ABSENT
Representative John Lincoln
OTHER LEGISLATORS PRESENT
Representative Mike Prax
COMMITTEE CALENDAR
HOUSE BILL NO. 37
"An Act exempting certain low voltage projects from contractor
and electrical administrator requirements."
- HEARD & HELD
HOUSE BILL NO. 151
"An Act relating to the regulation of electric utilities and
electric reliability organizations; and providing for an
effective date."
- MOVED CSHB 151(ENE) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 37
SHORT TITLE: EXEMPTION: CONTRACTORS, ELECTRICAL ADMIN.
SPONSOR(s): REPRESENTATIVE(s) TALERICO
02/20/19 (H) READ THE FIRST TIME - REFERRALS
02/20/19 (H) ENE, L&C
02/25/20 (H) ENE AT 10:15 AM CAPITOL 17
BILL: HB 151
SHORT TITLE: ELECTRIC RELIABILITY ORGANIZATIONS
SPONSOR(s): ENERGY
05/03/19 (H) READ THE FIRST TIME - REFERRALS
05/03/19 (H) ENE, RES
05/09/19 (H) ENE AT 8:30 AM CAPITOL 17
05/09/19 (H) Heard & Held
05/09/19 (H) MINUTE(ENE)
01/23/20 (H) ENE AT 10:15 AM CAPITOL 17
01/23/20 (H) Heard & Held
01/23/20 (H) MINUTE(ENE)
01/27/20 (H) ENE AT 3:30 PM SENATE FINANCE 532
01/27/20 (H) Heard & Held
01/27/20 (H) MINUTE(ENE)
01/29/20 (H) ENE AT 3:30 PM SENATE FINANCE 532
01/29/20 (H) Heard & Held
01/29/20 (H) MINUTE(ENE)
02/11/20 (H) ENE AT 10:15 AM CAPITOL 17
02/11/20 (H) Heard & Held
02/11/20 (H) MINUTE(ENE)
02/20/20 (H) ENE AT 10:15 AM CAPITOL 17
02/20/20 (H) Heard & Held
02/20/20 (H) MINUTE(ENE)
02/25/20 (H) ENE AT 10:15 AM CAPITOL 17
WITNESS REGISTER
REPRESENTATIVE DAVE TALERICO
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 37 as the sponsor of the bill.
JOE G. HARDENBROOK, Staff
Representative Grier Hopkins
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the committee substitute, Version
G, for HB 151 on behalf of the bill sponsor, the House Special
Committee on Energy.
ANTONY SCOTT, Commissioner
Regulatory Commission of Alaska (RCA)
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified during discussion of HB 151.
JULIE ESTEY, Director of External Affairs
Matanuska Electric Association (MEA)
Palmer, Alaska
POSITION STATEMENT: Testified during discussion of HB 151.
ACTION NARRATIVE
10:18:45 AM
CHAIR GRIER HOPKINS called the House Special Committee on Energy
meeting to order at [10:18] a.m. Representatives Hopkins,
Fields, Spohnholz, and Zulkosky were present at the call to
order. Representatives Pruitt and Rauscher arrived as the
meeting was in progress. Also in attendance was Representative
Prax.
HB 37-EXEMPTION: CONTRACTORS, ELECTRICAL ADMIN.
10:19:18 AM
CHAIR HOPKINS announced that the first order of business would
be HOUSE BILL NO. 37, "An Act exempting certain low voltage
projects from contractor and electrical administrator
requirements."
10:20:05 AM
REPRESENTATIVE DAVE TALERICO, Alaska State Legislature, as prime
sponsor of HB 37, paraphrased from the Sponsor Statement
[included in members' packets], which read as follows [original
punctuation provided]:
An Act relating to an exemption for low-voltage
projects from contractor requirements; and relating to
an exemption from electrical administrator requirement
HB 37 removes barriers that make installations of
satellite and high-speed internet capabilities in
Alaska very costly or impractical, especially in rural
areas. Internet is extremely slow in most of Alaska.
This bill adds one more avenue for Alaskans to get
faster reliable internet via satellite installations.
Currently low voltage internet satellite installers in
Alaska are required to have an electrical
administrator oversee their work (yet they know very
little about) due to old regulations created prior to
satellite internet installers. This is prohibiting
cost effective satellite internet installations in
rural Alaska and thus this bill exempts them as low
voltage installers from electrical administrative
oversite. HB 37 also adds an exemption to allow only
low voltage contractors performing work on a project
under $10,000 to do so without being a licensed
general contractor, thus making small internet
projects in rural Alaska financially possible and
reasonable. I urge your support on removing this
barrier thus enabling high speed internet options.
10:23:06 AM
CHAIR HOPKINS asked what qualified as low voltage.
REPRESENTATIVE TALERICO, in response, explained that, as this
was 56 volts or less, it was less than regular house current.
He added that the voltage through the coaxial cable for internet
was 2 volts or less, which was connected to residential power
via a UL listed receiver plugged into a wall outlet.
10:23:56 AM
REPRESENTATIVE FIELDS asked whether the installation was
currently performed by licensed electricians.
REPRESENTATIVE TALERICO answered that the requirement was for
review and approval by an electrical administrator. He added
that his desire was to lower the actual installation cost and
make it more available, as the cost for an installer to visit a
remote location was often cost prohibitive.
REPRESENTATIVE FIELDS asked for clarification that, as currently
there was not a requirement for a licensed electrician, but it
was necessary for the follow up by an electrical administrator,
the proposed bill would obviate the need for the electrical
administrator.
REPRESENTATIVE TALERICO responded that was correct.
10:25:01 AM
REPRESENTATIVE SPOHNHOLZ asked about the job requirements for an
electrical administrator.
REPRESENTATIVE TALERICO shared that he was "sure that they have
to have a certification through the State of Alaska" and "to the
best of my knowledge, there's a licensing requirement."
REPRESENTATIVE SPOHNHOLZ asked whether the licensing requirement
was separate and distinct from that required for an electrician.
REPRESENTATIVE TALERICO offered his belief that the licensing
requirement was separate.
10:25:51 AM
REPRESENTATIVE PRUITT asked whether the installation required
more positioning and plugging in, as opposed to any hard wiring
requiring electrical expertise.
REPRESENTATIVE TALERICO, in response, expressed his agreement,
and shared a personal anecdote for connecting his personal
satellite dish.
10:28:36 AM
REPRESENTATIVE SPOHNHOLZ asked for the definition of a coaxial
cable.
REPRESENTATIVE TALERICO, in response, explained that the cable
was a heavily insulated, jacketed, small cable that carried the
satellite signal from the "thing that grabs the signal out in
front of the dish" "all the way into the home and to the
receiver." He described it as the "signal transmitter."
10:29:27 AM
REPRESENTATIVE PRAX explained that this cable was low voltage,
was only sending signals, and did not create a safety hazard.
10:30:35 AM
CHAIR HOPKINS announced that HB 37 was held over.
HB 151-ELECTRIC RELIABILITY ORGANIZATIONS
10:30:50 AM
CHAIR HOPKINS announced that the final order of business would
be HOUSE BILL NO. 151, "An Act relating to the regulation of
electric utilities and electric reliability organizations; and
providing for an effective date." [Before the committee,
adopted as a working draft during the House Special Committee on
Energy meeting on 2/20/20, was the proposed committee substitute
(CS) for HB 151, Version 31-LS0870\E, Klein, 2/19/20 ("Version
E").]
10:31:33 AM
REPRESENTATIVE SPOHNHOLZ moved to adopt the proposed committee
substitute (CS) for HB 151, Version 31-LS0870\G, Klein, 2/24/20,
("Version G") as the working draft.
10:31:52 AM
REPRESENTATIVE PRUITT objected for discussion.
10:32:01 AM
JOE G. HARDENBROOK, Staff, Representative Grier Hopkins, Alaska
State Legislature, on behalf of the sponsor of HB 151, the House
Special Committee on Energy, chaired by Representative Hopkins,
reported that the Senate Special Committee on the Railbelt
Electric System had adopted this same committee substitute as
well as the attached intent language and had advanced its
proposed bill to the Senate Finance Committee. He shared that
Municipal Light and Power (ML&P) had relayed its concerns
detailing the impact of the legislation on the Bradley Lake
Project, both the dam and transmission lines. Although these
were part of the Railbelt Electric system, they were exempted by
statute from RCA oversight. He stated that the proposed bill
was not an attempt to circumvent the statutes to exempt Bradley
Lake from RCA regulation; however, the legislature intended that
all the power suppliers on the Railbelt be subject to the
reliability standards adopted by an electric reliability
organization (ERO). When the Bradley Lake agreements expire,
the project and its auxiliary infrastructure shall be subject to
the terms of the proposed legislation. He acknowledged that
there was active litigation regarding this issue. He stated
that the committee substitute and the intent language were an
attempt by the Alaska State Legislature to "stay out of the
ongoing judicial matters and state the legislature's aims once
the matter is settled." He shared that the ML&P had confirmed
that the intent statement and the bill changes "adequately
addressed their concerns."
10:33:50 AM
MR. HARDENBROOK paraphrased a written statement [included in
members' packets] showing the changes proposed under Version G,
which read as follows [original punctuation provided]:
Page 4, line 3: Under the "Reliability Standards"
section amends the section to read "All users,
owners and operators of an interconnected electric
transmission network served by an ERO, including a
user, owner or operator that is exempt from other
regulation under AS 42.05.711 or another provision of
this chapter, shall comply with reliability standards
contained in a tariff that is approved by the
commission."
Page 8, line 20: inserts the words "including a
public utility that is exempt from other regulation
under AS 42.05.711 or another provision of this
chapter." Following the word "utility."
These changes were recommended by Legislative Legal to
better reflect the intent of the legislation to
require all interconnected utilities on the Railbelt
and the providers of power, including but not limited
to the AEA Bradley Lake project comply with the
reliability standards adopted by a future Electric
Reliability Organization.
This is further spelled out in the attached
Legislative Intent Language.
10:35:00 AM
MR. HARDENBROOK paraphrased the Intent Statement for Version G
[included in members' packets], which read as follows [original
punctuation provided]:
It is the intent of the Thirty-First Alaska State
Legislature that under HB 151, reliability standards,
electric reliability organization (ERO) tariff
standards, planning terms, and project pre-approval
requirements will ultimately apply across the entire
interconnected Railbelt electric energy network. Broad
application is necessary to achieve the desired
efficiencies and reliability for Alaskans within the
Railbelt. HB 151 does not in any way affect or change
the existing relationship between the RCA and the
Bradley Lake project agreements, contracts, and
amendments exempt under AS 42.05.431(c). It is,
however, the intent of the Alaska State Legislature
that after the Bradley Lake project debt is satisfied
and the AS 42.05.431(c) exemption expires, those
agreements, contracts, and amendments shall be subject
to HB 151. Should Bradley Lake project agreements,
contracts, and amendments receive a future extension
of the AS 42.05.431(c) exemptions, the Thirty-First
Alaska State Legislature urges consideration of the
relationship between Bradley Lake and associated
infrastructure and projects, the Railbelt network, and
the electric reliability organization, and emphasizes
the intent to subject all interconnected network
users, owners, or operators to the reliability
standards, an electric reliability organization
tariff, planning, and project pre-approval
requirements.
10:37:32 AM
REPRESENTATIVE PRUITT removed his objection to the motion to
adopt the proposed committee substitute (CS) for HB 151, Version
31-LS0870\G, Klein, 2/24/20, as the working draft. There being
no further objection, Version G was before the committee.
10:37:40 AM
CHAIR HOPKINS moved on to public testimony on HB 151 [which had
been left open from the House Special Committee on Energy
meeting on 2/20/20]. After ascertaining that there was no one
who wished to testify, he closed public testimony.
10:38:18 AM
REPRESENTATIVE PRAX said that there were four generating
facilities in Fairbanks: the University of Alaska; Doyon for
Fort Wainwright; Eielson [Air Force Base], and Alyeska for Pump
Station 9, and asked if these facilities had been involved in
this discussion.
10:38:45 AM
MR. HARDENBROOK offered his understanding that, although these
entities did not provide power into the greater network, they
had been part of the discussion, this legislation would not
impact their operations other than to comply with the
reliability standards.
10:39:26 AM
ANTONY SCOTT, Commissioner, Regulatory Commission of Alaska
(RCA), Department of Commerce, Community & Economic Development,
relayed that the intent of the proposed bill was that
interconnection within the overall system was subject to the
reliability standards but beyond that "there's not much to talk
about."
10:40:08 AM
REPRESENTATIVE PRAX asked whether the four generating facilities
had been contacted, noting that they were all connected to the
grid.
10:40:44 AM
JULIE ESTEY, Director of External Affairs, Matanuska Electric
Association (MEA), in response to Chair Hopkins, said that an
invitation had been extended to those four power producers to
join in the conversation, and that several had applied to become
part of the implementation committee. She added that they had
also offered substantial input which had been taken into
consideration.
10:41:42 AM
MR. HARDENBROOK added that for more than a year the RCA had an
ongoing process for public comment and had also solicited
comments from independent power producers, shareholders, and
consumers across the Railbelt.
10:42:12 AM
REPRESENTATIVE PRUITT asked when the Bradley Lake project debt
was due to be paid off.
10:42:33 AM
MR. HARDENBROOK replied that the first bond indebtedness was
scheduled to be paid off in July 2021. He explained that part
of the conflict and discussion was related to the Battle Creek
expansion proposed for the Bradley Lake project. He offered his
belief that the litigation was involved with when the additional
debt would be retired and, consequently, when there would be
interaction with the statutes that govern the exemption of the
project from RCA regulation. He pointed out that the intent
language for the committee substitute stated that the intent of
the legislature was for the statutes governing the RCA's
participation in the Bradley Lake project to remain unchanged
and that the process would play out before the terms of the
proposed bill were applied to the Bradley Lake project.
REPRESENTATIVE PRUITT shared his understanding for an
expectation that the court had determined that the proposed
legislation would be in effect based on the final date for the
bond indebtedness.
MR. HARDENBROOK expressed agreement, and referred to the second
paragraph of the intent language, which read:
the intent of the Alaska State Legislature that after
the Bradley Lake project debt is satisfied and the AS
42.05.431(c) exemption expires, those agreements,
contracts, and amendments shall be subject to HB 151.
10:44:34 AM
REPRESENTATIVE SPOHNHOLZ moved to report CSHB 151, Version 31-
LS0870\G, Klein, 2/24/20, out of committee with individual
recommendations and zero fiscal notes. There being no
objection, CSHB 151(ENE) was moved from the House Special
Committee on Energy.
10:44:59 AM
The committee took an at-ease from 10:44 a.m. to 10:48 a.m.
10:48:29 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 10:48 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 37 - Sectional Analysis.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37 - Support Letter Alaska Satellite Internet 4.11.17.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37- Committee Hearing Request 02.21.2020.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37 - Support Letter Craig Mapes 4.11.17.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37 Support Letter Chena Holdings Inc 4.10.17.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37 Support Letter.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB37 - Sponsor Statement.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| 2020-02-24 - HB 151 version G.pdf |
HENE 2/25/2020 10:15:00 AM HRES 3/6/2020 1:00:00 PM |
HB 151 |
| 2020-02-24 - HB 151 Intent Language.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 151 |