Legislature(2023 - 2024)BARNES 124

04/18/2024 10:15 AM House ENERGY

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Audio Topic
03:01:48 PM Start
03:02:55 PM HB349
03:15:10 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 3:00 PM --
+= HB 349 RENEWABLE ENERGY PROJECT LEASES TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                         April 18, 2024                                                                                         
                           3:01 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative George Rauscher, Chair                                                                                           
Representative Tom McKay                                                                                                        
Representative Stanley Wright                                                                                                   
Representative Calvin Schrage                                                                                                   
Representative Jennie Armstrong                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Thomas Baker                                                                                                     
Representative Mike Prax                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 349                                                                                                              
"An Act relating to leases of public land for renewable energy                                                                  
projects; and providing for an effective date."                                                                                 
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 349                                                                                                                  
SHORT TITLE: RENEWABLE ENERGY PROJECT LEASES                                                                                    
SPONSOR(s): REPRESENTATIVE(s) GROH                                                                                              
                                                                                                                                
02/20/24       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/24       (H)       RES, ENE, FIN                                                                                          
03/08/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/08/24       (H)       Heard & Held                                                                                           
03/08/24       (H)       MINUTE(RES)                                                                                            
03/11/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/11/24       (H)       Heard & Held                                                                                           
03/11/24       (H)       MINUTE(RES)                                                                                            
03/22/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/22/24       (H)       <Bill Hearing Canceled>                                                                                
03/25/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/25/24       (H)       <Bill Hearing Rescheduled to 03/27/24>                                                                 
03/27/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/27/24       (H)       Scheduled but Not Heard                                                                                
04/01/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/01/24       (H)       Heard & Held                                                                                           
04/01/24       (H)       MINUTE(RES)                                                                                            
04/05/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/05/24       (H)       Scheduled but Not Heard                                                                                
04/08/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/08/24       (H)       Scheduled but Not Heard                                                                                
04/09/24       (H)       ENE AT 10:15 AM BARNES 124                                                                             
04/09/24       (H)       -- MEETING CANCELED --                                                                                 
04/11/24       (H)       ENE AT 10:15 AM BARNES 124                                                                             
04/11/24       (H)       -- MEETING CANCELED --                                                                                 
04/15/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/15/24       (H)       Scheduled but Not Heard                                                                                
04/16/24       (H)       ENE AT 10:15 AM BARNES 124                                                                             
04/16/24       (H)       -- MEETING CANCELED --                                                                                 
04/17/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/17/24       (H)       Moved CSHB 349(RES) Out of Committee                                                                   
04/17/24       (H)       MINUTE(RES)                                                                                            
04/18/24       (H)       ENE AT 10:15 AM BARNES 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE CLIFF GROH                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, gave introduction of CSHB
349.                                                                                                                            
                                                                                                                                
CAMERON EBERSOLD, Staff                                                                                                         
Representative Cliff Groh                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  On behalf of Representative Groh, prime                                                                  
sponsor, gave a sectional analysis of CSHB 349.                                                                                 
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:01:48 PM                                                                                                                    
                                                                                                                                
CHAIR  RAUSCHER  called the  House  Special  Committee on  Energy                                                               
meeting to  order at 3:01  p.m. Representatives  Wright, Schrage,                                                               
Armstrong,  McKay,  and Rauscher  were  present  at the  call  to                                                               
order.                                                                                                                          
                                                                                                                                
             HB 349-RENEWABLE ENERGY PROJECT LEASES                                                                         
                                                                                                                                
3:02:55 PM                                                                                                                    
                                                                                                                                
CHAIR RAUSCHER  announced that the  only order of  business would                                                               
be HOUSE BILL  NO. 349 "An Act relating to  leases of public land                                                               
for  renewable energy  projects; and  providing for  an effective                                                               
date." [Before the committee was CSHB 349 (RES).]                                                                               
                                                                                                                                
                                                                                                                                
3:04:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLIFF GROH,  Alaska State  Legislature, as  prime                                                               
sponsor, gave  an introduction  of CSHB  349 (RES).  He explained                                                               
that  the   proposed  legislation  would  give   a  path  towards                                                               
renewable energy  development through a regulatory  structure. It                                                               
aims   to  assist   renewable  energy   products  going   forward                                                               
particularly through leases on state lands.                                                                                     
                                                                                                                                
3:06:37 PM                                                                                                                    
                                                                                                                                
CAMERON EBERSOLD, Staff, Representative  Cliff Groh, Alaska State                                                               
Legislature,  on behalf  of Representative  Groh, prime  sponsor,                                                               
gave a sectional  analysis of CSHB 349  (RES). Before continuing,                                                               
he made  clear that the  sectional analysis, although  drafted to                                                               
the  original   bill  version,  is   largely  unchanged   by  the                                                               
amendments  adopted to  HB 349  in the  House Resources  Standing                                                               
Committee.  The   sectional  analysis  [available   in  committee                                                               
packet], read as follows [original punctuation provided]:                                                                       
                                                                                                                                
                       Sectional Analysis                                                                                       
     Section 1. Conforming change to AS 38.05.035(a)(8).                                                                        
     Section. 2. Conforming change to AS 38.05.070 (e).                                                                         
     Section. 3. Conforming change to AS 38.05.075(a).                                                                          
       Section. 4. Enacts four new sections of the Alaska                                                                       
     Statutes under Chapter 05. Alaska Land Act: AS                                                                             
     38.05.091  094, which creates a licensing and leasing                                                                      
     structure for renewable energy projects on                                                                                 
     state-owned land analogous to the process found in AS                                                                      
     38.05.131 134, Oil and Gas Exploration                                                                                     
     Licenses; Leases.                                                                                                          
    AS     38.05.091      Applicability;     determination;                                                                     
     regulations.                                                                                                               
        Provides the provisions and authorities for the                                                                         
     Department of Natural Resources to offer feasibility                                                                       
        licenses. It provides the Commissioner with the                                                                         
     authority to adopt necessary regulations to                                                                                
     implement licensing  and sets  the maximum  acreage any                                                                    
     licensee may hold at any time.                                                                                             
     AS 38.05.092 Feasibility  licenses for renewable energy                                                                    
     projects.                                                                                                                  
     The DNR Commissioner may  issue feasibility licenses to                                                                    
     encourage energy production on stateowned                                                                                  
     land. These  licenses give  the licensee  the exclusive                                                                    
     right to explore the surface estate on state                                                                               
     land  and   evaluate  that   land's  potential   for  a                                                                    
     renewable  energy project.  The  term  of this  license                                                                    
     cannot                                                                                                                     
     exceed 10 years.                                                                                                           
     A  feasibility  license  must   be  conditioned  on  an                                                                    
     obligation to perform a specified work commitment                                                                          
     and make  progress on this  work commitment  by certain                                                                    
     intervals during the life of the license, post                                                                             
     of bond  or other  security, and  be subject  to annual                                                                    
     review. The Commissioner may terminate the                                                                                 
     license early  if the licensee has  not made sufficient                                                                    
     progress on their work commitment.                                                                                         
     2                                                                                                                          
     It provides the  option to convert the  license for all                                                                    
     or part  of the land  into a lease of  state-owned land                                                                    
     for a renewable energy  project upon fulfillment of the                                                                    
     work   requirements   contained  in   the   feasibility                                                                    
     license. The licensee does not  have this option if the                                                                    
     lease is terminated.                                                                                                       
     The land and  water included within an  area subject to                                                                    
     a feasibility license must,  to the extent practicable,                                                                    
     remain  open to  the public  for hunting,  fishing, and                                                                    
     other   generally   allowed   uses,  and   to   mineral                                                                    
     exploration and development.                                                                                               
     AS 38.05.093. License procedures.                                                                                          
     This  section  contains  the   procedures  to  issue  a                                                                    
     feasibility  license. The  process is  initiated by  an                                                                    
     interested  party  issuing   a  proposal  describing  a                                                                    
     specific piece of land and project.                                                                                        
     Within  180  days  after   receiving  a  proposal,  the                                                                    
     Commissioner  shall either  reject  the  proposal in  a                                                                    
     written decision  or give public  notice of  the intent                                                                    
     to  evaluate the  acceptability  of  the proposal.  The                                                                    
     Commissioner  shall solicit  comments  on the  proposal                                                                    
     for  which  public  notice is  given,  and  they  shall                                                                    
     request competing proposals.                                                                                               
     The   Commissioner  must   issue  a   written  finding,                                                                    
     including any  modifications to the  proposal necessary                                                                    
     to make  the license conform  to the best  interests of                                                                    
     the state.  This section  also contains  provisions for                                                                    
     soliciting a  competitive bid in the  event of multiple                                                                    
     interested parties.                                                                                                        
     AS 38.05.094. Conversion to lease.                                                                                         
     Upon  request  by  licensee  and  if  the  Commissioner                                                                    
     determines  that  the  work commitment  obligation  has                                                                    
     been met,  the Commissioner  shall convert all  or part                                                                    
     of the  area described in the  feasibility license into                                                                    
     a lease  of that  state land  to develop  the renewable                                                                    
     energy project described.                                                                                                  
     The  Commissioner  would  be  required  to  produce  an                                                                    
     annual  report  to  the Legislature  describing  leases                                                                    
     entered  into  under  this section.  This  report  must                                                                    
     contain the  number of total  leases entered  into each                                                                    
     fiscal year,  a complete  list of information  for each                                                                    
     ongoing lease,  a list of expired  or terminated leases                                                                    
     during the  preceding or current  fiscal year  with the                                                                    
     reason  the  lease expired  or  was  terminated; and  a                                                                    
     description  of the  cumulative  revenue received  from                                                                    
     leases, the  revenue received by the  State from leases                                                                    
     during  the  preceding   fiscal  year  and  anticipated                                                                    
     revenue the  State will receive  in the  current fiscal                                                                    
     year.                                                                                                                      
     Section 5. Conforming change to AS 38.05.102.                                                                              
     Section 6. Conforming change to AS 38.05.945(a)(6).                                                                        
     Section 7. Conforming change to AS 38.05.945(e)                                                                            
     Section  8.  Adds  a definition  of  "renewable  energy                                                                    
     project" to AS.38.05.965.                                                                                                  
     Section 9. Provides an immediate effective date.                                                                           
                                                                                                                                
3:12:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GROH offered to answer committee questions.                                                                      
                                                                                                                                
3:13:21 PM                                                                                                                    
                                                                                                                                
CHAIR RAUSCHER made a committee announcement that there would be                                                                
public testimony on CSHB 349 (RES)on Tuesday.                                                                                   
                                                                                                                                
3:14:00 PM                                                                                                                    
                                                                                                                                
CHAIR RAUSCHER announced that CSHB 349 (RES) was held over.                                                                     
                                                                                                                                
3:15:10 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Energy meeting was adjourned at 3:15 p.m.                                                                  

Document Name Date/Time Subjects
HB0349B.pdf HENE 4/18/2024 10:15:00 AM
HB 349
HB349.Sponsor Statement.pdf HENE 4/18/2024 10:15:00 AM
HB 349
CSHB349.HRES.D.sectional.history.pdf HENE 4/18/2024 10:15:00 AM
HB 349