Legislature(2023 - 2024)BARNES 124
02/29/2024 10:15 AM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| HB368 | |
| Presentation(s): Ultra Safe Nuclear Corporation: a Private Perspective on the Case for Developing Advanced Nuclear in Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 368 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
February 29, 2024
10:15 a.m.
DRAFT
MEMBERS PRESENT
Representative George Rauscher, Chair
Representative Tom McKay
Representative Thomas Baker
Representative Stanley Wright
Representative Mike Prax
Representative Calvin Schrage
Representative Jennie Armstrong
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 368
"An Act relating to clean energy standards and a clean energy
transferable tax credit; and providing for an effective date."
- HEARD & HELD
PRESENTATION(S): ULTRA SAFE NUCLEAR CORPORATION: A PRIVATE
PERSPECTIVE ON THE CASE FOR DEVELOPING ADVANCED NUCLEAR IN
ALASKA
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 368
SHORT TITLE: ELECTRICAL ENERGY & ENERGY PORTFOLIO STDS
SPONSOR(s): ENERGY
02/20/24 (H) READ THE FIRST TIME - REFERRALS
02/20/24 (H) ENE, FIN
02/22/24 (H) ENE AT 11:00 AM BARNES 124
02/22/24 (H) -- MEETING CANCELED --
02/27/24 (H) ENE AT 11:00 AM BARNES 124
02/27/24 (H) Heard & Held
02/27/24 (H) MINUTE(ENE)
02/29/24 (H) ENE AT 10:15 AM BARNES 124
WITNESS REGISTER
ROBERT DOYLE, Chair
Regulatory Commission of Alaska
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
368.
DAN LUDWIG, Business Development Manager
Ultra Safe Nuclear Corporation
Minneapolis, Minnesota
POSITION STATEMENT: Gave a PowerPoint presentation on "Ultra
Safe Nuclear Corporation: A Private Perspective on the Case for
Developing Advanced Nuclear in Alaska."
ACTION NARRATIVE
10:15:24 AM
CHAIR RAUSCHER called the House Special Committee on Energy
meeting to order at 10:15 a.m. Representatives * were present at
the call to order. Representatives * arrived as the meeting was
in progress.
HB 368-ELECTRICAL ENERGY & ENERGY PORTFOLIO STDS
10:16:43 AM
CHAIR RAUSCHER announced that the first only order of business
would be HOUSE BILL NO. 368 "An Act relating to clean energy
standards and a clean energy transferable tax credit; and
providing for an effective date."
10:17:22 AM
CHAIR RAUSCHER announced that Robert Doyle from the Regulatory
Commission of Alaska would respond to questions pertaining to HB
368.
10:18:33 AM
ROBERT DOYLE, Chair, Regulatory Commission of Alaska, , in
response to Chair Rauscher, outlined the requirements of the
Regulatory Commission of Alaska (RCA). He stated that there are
several pieces of HB 368 that would require the RCA to adopt or
amend regulations surrounding energy and billing. At the
request of the chair, he gave an overview of how the RCA works
to ensure that the interests of all Alaskans are met by
reasonable and just means. He moved on to discuss fiscal notes,
saying that most of the concerns presented by the fiscal notes
are due to staffing issues. He said it could be a 600-plus day
process to create a regulatory document from draft to finish.
10:26:49 AM
REPRESENTATIVE SCHRAGE asked what effect the bill would have on
the power cost equalization (PCE) calculation.
MR. DOYLE indicated there would be no noticeable effect on how
the PCE is calculated. He said the intent is to bring the
statute in line with how business is conducted at the RCA.
10:29:13 AM
REPRESENTATIVE MCKAY asked if the RCA regulates Fire Island and
a solar farm in Houston, Alaska.
MR. DOYLE responded that all of the costs associated with
independent power projects are negotiated with the utilities
companies. In response to a follow-up question, he noted that
information regarding the amount of electricity generated by
Fire Island and Chugach Electric is public. To further
questioning, he said the RCA has a neutral stance toward the
bill, and he offered his understanding that green energy credits
given through the regulation docket process.
10:37:03 AM
CHAIR RAUSCHER asked Robert Doyle to explain the difference
between "net billing" and "net metering."
MR. DOYLE explained that net metering is the process of selling
power and energy back to the energy company, whereas net billing
is how one would account for the cost of someone who is
generating more power than is needed, like a monthly settlement
to break the difference between cost and energy sold back to the
company.
10:40:15 AM
CHAIR RAUSCHER thanked Robert Doyle for responding to questions
from the committee.
^PRESENTATION(S): ULTRA SAFE NUCLEAR CORPORATION: A PRIVATE
PERSPECTIVE ON THE CASE FOR DEVELOPING ADVANCED NUCLEAR IN
ALASKA
PRESENTATION(S): ULTRA SAFE NUCLEAR CORPORATION: A PRIVATE
PERSPECTIVE ON THE CASE FOR DEVELOPING ADVANCED NUCLEAR IN
ALASKA
10:41:47 AM
CHAIR RAUSCHER announced that the final order of business would
be a presentation on "Ultra Safe Nuclear Corporation: A Private
Perspective on the Case for Developing Advanced Nuclear in
Alaska."
10:42:20 AM
DAN LUDWIG, Business Development Manager, Ultra Safe Nuclear
Corporation, gave a PowerPoint presentation [hardcopy included
in the committee packet] on "Ultra Safe Nuclear Corporation: A
Private Perspective on the Case for Developing Advanced Nuclear
in Alaska." He began on slide 1 and explained the function and
purpose of the Ultra Safe Nuclear Corporation (USNC),
highlighting the types of fuels the corporation runs on and what
makes it "ultra safe." On slide 2, he explained how USNC's
reactors work. He detailed the construction, operation, and
output of each underground module.
10:46:31 AM
MR. LUWDIG, in response to a series of questions from Chair
Rauscher, explained that it would be difficult to say when a new
supply of enriched uranium would be available both economically
and physically. He pointed out that multiple honeycombs can be
combined to make a full core.
10:48:26 AM
MR. LUDWIG, in response to a series of questions from
Representative Prax, said that his estimations are correct, that
the reactors are assembled onsite, and that the reactors are
generally transported via boat and haul truck, not airplane.
10:50:12 AM
MR LUDWIG continued his presentation on slide 3, which described
the design of the reactors and power plants, and how that design
lends itself to a safer operation.
10:51:26 AM
REPRESENTATIVE WRIGHT asked about the performance assessment.
MR. LUDWIG, in response to a series of questions from
Representative Wright, said that the reactors could last up to
20 years. When the lifecycle of the reactor is complete, the
site is decommissioned by removing the equipment from the site
and storing the spent nuclear fuel onsite on a pad. He
mentioned interest in storing the spent nuclear fuel offsite,
saying that there is widespread discussion on how to best
achieve that. He said a reactor puts off 45 megawatts of
thermal energy, roughly 15 megawatts of electricity. The heat
can be used to run a heating system but also can be used to run
a cooling system.
10:55:38 AM
MR. LUDWIG responded to questions from multiple committee
members. He said that the design of the module is below ground
on purpose to protect from various floods and natural events.
He said there is no challenge in a high water table or
permafrost; USNC has found that below ground works best for its
reactors. He explained how reactor technology works to create
electricity. In terms of how nuclear would perform in
comparison to solar, he explained that if there were any delays
in service, there would be back ups in place for the reactors,
such as oil and natural gas. In terms of possible effects of
the module on permafrost, he explained that there is a system of
water cooling that would prevent the ground around it from
overheating.
11:02:26 AM
MR. LUDWIG returned to the PowerPoint, to slide 3, which shows
initial developments and plants that have been constructed by
USNC. Responding to questions, he said the timeline of
completion for each reactor is largely driven by the nuclear
regulatory commission licensing process and can take up to six
years. There is a permitting pathway being developed to get
faster approval, though that does involve the federal
government. He said that USNC's plan is to create as simple a
design as possible that is quick and easy to license. In terms
of where USNC would like to develop, he explained that the
corporation has been in Alaska for 3 years, getting a feel for
the environment, learning the stakeholders, and learning who
would benefit from having a reactor.
11:07:59 AM
MR. LUDWIG, returning to the PowerPoint, brought attention to
slide 4, which explained the future of the fuel supply that USNC
uses. The slide details the manufacturing facility where the
fuel is currently made, lists agreements for fuel purchases, and
shows headlines of various articles on those agreements. To a
question from Representative Wright, he said a proposal from
Eielson Air Force Base for a reactor is currently in the
procurement process. While showing the final slide, Mr. Ludwig
discussed why USNC is in Alaska and the corporation's goals for
future development of nuclear energy in the state. In response
to Chair Rauscher, he acknowledged that Alaska has some
geological restrictions that make it difficult to develop
nuclear energy in Alaska. In terms of how spent nuclear fuel is
disposed, he explained that it is placed in a steel vessel
surrounded by a concrete structure. It must be taken by the
U.S. Department of Energy. He remarked that the final
disposition of spent nuclear fuel is not well defined on a
federal level, and he said he doesn't know where it would be
stored. To further questions, he allowed that spent nuclear
fuel is a little more voluminous than traditional nuclear fuel.
He said the regulations are all federal.
11:18:33 AM
CHAIR RAUSCHER thanked Mr. Ludwig for his presentation and
encouraged USNC to work with the University of Alaska Fairbanks.
11:19:14 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 11:19 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| USNC House Energy Feb 29 2024.pdf |
HENE 2/29/2024 10:15:00 AM |