Legislature(2023 - 2024)BARNES 124
03/07/2023 10:15 AM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HB74 | |
| Presentation: Tidal and River Energy | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 74 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
March 7, 2023
10:16 a.m.
MEMBERS PRESENT
Representative George Rauscher, Chair
Representative Tom McKay
Representative Stanley Wright
Representative Mike Prax
Representative Calvin Schrage
Representative Ashley Carrick
MEMBERS ABSENT
Representative Josiah Patkotak
COMMITTEE CALENDAR
HOUSE BILL NO. 74
"An Act relating to geothermal resources; relating to the
definition of 'geothermal resources'; and providing for an
effective date."
- MOVED HB 74 OUT OF COMMITTEE
PRESENTATION: TIDAL AND RIVER ENERGY
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 74
SHORT TITLE: GEOTHERMAL RESOURCES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/15/23 (H) READ THE FIRST TIME - REFERRALS
02/15/23 (H) ENE, RES
02/23/23 (H) ENE AT 10:15 AM BARNES 124
02/23/23 (H) -- MEETING CANCELED --
02/28/23 (H) ENE AT 10:15 AM BARNES 124
02/28/23 (H) Heard & Held
02/28/23 (H) MINUTE(ENE)
03/02/23 (H) ENE AT 10:15 AM BARNES 124
03/02/23 (H) Heard & Held
03/02/23 (H) MINUTE(ENE)
03/07/23 (H) ENE AT 10:15 AM BARNES 124
WITNESS REGISTER
AARON O'QUINN, Leasing Manager
Division of Oil and Gas
Department of Natural Resources
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
74.
MERRICK JACKINSKY, Director of Development
Ocean Renewable Power Company
Anchorage, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation, titled
"Tidal and River Energy."
ACTION NARRATIVE
10:16:10 AM
CHAIR GEORGE RAUSCHER called the House Special Committee on
Energy meeting to order at 10:16 a.m. Representatives Carrick,
Schrage, Wright, McKay, and Rauscher were present at the call to
order. Representative Prax arrived as the meeting was in
progress.
HB 74-GEOTHERMAL RESOURCES
10:18:11 AM
CHAIR RAUSCHER announced that the first order of business would
be HOUSE BILL NO. 74, "An Act relating to geothermal resources;
relating to the definition of 'geothermal resources'; and
providing for an effective date."
10:18:26 AM
REPRESENTATIVE CARRICK asked how HB 74 would affect the current
tax structure, penalties, and permit structure.
10:20:55 AM
AARON O'QUINN, Leasing Manager, Division of Oil and Gas,
Department of Natural Resources (DNR), answered that the
proposed legislation would change "permits" to "licenses", and
this would match the regulations for other types of resources.
He continued that the time period would be changed from two to
five years, and the requirement for renewal would be based on
the investment. Once the requirements are met, a lease will be
granted.
10:23:39 AM
REPRESENTATIVE CARRICK requested an explanation of the name
change.
MR. O'QUINN answered that currently a permit could be used to
obtain a lease, but DNR plans to change this permit to a
license. In response to a follow-up question, he stated that
geothermal production facilities would face many of the same
taxes as other industries, such as property taxes and corporate
income taxes. He noted that since last year, Mount Spurr has
generated $93,000 in rent and Augustine Island has generated
approximately $9,300 in rent.
10:28:47 AM
REPRESENTATIVE MCKAY moved to report HB 74 out of committee with
individual recommendations and the accompanying zero fiscal
notes.
10:29:32 AM
The committee took an at-ease from 10:29 a.m. to 10:30 a.m.
10:30:19 AM
REPRESENTATIVE MCKAY withdrew his motion to move HB 74. There
being no objection, the motion to move HB 74 was withdrawn.
10:30:41 AM
REPRESENTATIVE MCKAY moved to report HB 74 out of committee with
individual recommendations and the accompanying fiscal notes.
10:31:02 AM
REPRESENTATIVE SCHRAGE objected and asked for the number of
fiscal notes accompanying the bill.
CHAIR RAUSCHER answered that there were two.
10:31:35 AM
REPRESENTATIVE SCHRAGE removed his objection. There being no
further objection, HB 74 was reported out of the House Special
Committee on Energy.
10:31:46 AM
The committee took an at-ease from 10:31 a.m. to 10:34 a.m.
^PRESENTATION: TIDAL AND RIVER ENERGY
PRESENTATION: TIDAL AND RIVER ENERGY
10:34:30 AM
CHAIR RAUSCHER announced that the final order of business would
be a presentation on tidal and river energy.
10:34:46 AM
MERRICK JACKINSKY, Director of Development, Ocean Renewable
Power Company (ORPC), gave an overview of his background and a
history of ORPC, as seen on slide 3 through slide 6. He stated
that ORPC was created in 2007 and focuses on turning tidal
processes into energy. He showed examples of the different
types of turbines being used by ORPC. He continued to slide 7
through slide 10 and stated that there are 48 countries
interested in the technology being used by ORPC. He stated that
ORPC has recently secured $25 million in investment for
expansion, and this expansion would include Alaska. He said
that ORPC is working on battery systems to power remote
communities. He pointed out that while other forms of renewable
energy can be unpredictable at times, rivers and tides always
flow.
MR. JACKINSKY continued to slide 11 through slide 13 and
expressed the opinion that as the price of diesel fuel continues
to increase, river and tidal power would be a good opportunity
for remote communities. He pointed out that ORPC has two river
systems in Igiugig that have successfully powered the community,
and there has been no evidence that ORPC's systems have a
negative effect on salmon populations. He added that the
systems have also been proven to work in harsh winter
conditions.
10:43:45 AM
CHAIR RAUSCHER asked how many rotations per minute (RPMs) the
systems produce.
MR. JACKINSKY answered between 60 and 70 RPMs. In response to a
follow-up question, he stated that the turbines only spin in one
direction, and this is because of the design.
10:45:38 AM
REPRESENTATIVE WRIGHT asked how much power the systems could
produce on a yearly basis.
MR. JACKINSKY answered that the system in Igiugig can produce
approximately 40 kilowatts (kWh) per day. He added that the
systems work best on small grids.
10:47:03 AM
MR. JACKINSKY continued to slide 14 through slide 20, describing
that the systems are designed to work with existing
infrastructure. He stated that the focus in Alaska is on
smaller, remote communities in the western part of the state.
He said that ORPC has received $1.5 million in funding from the
U.S. Congress to locate the best places in Alaska to develop
these systems. He continued that ORPC is currently working on
building a system in False Pass, which also has received funding
from the U.S. Congress. He expressed the understanding that
Cook Inlet is one of the biggest tidal resources in the world,
and ORPC is currently working with Homer Electric Association on
the possibility of developing tidal energy there. He commented
on the possibility that ORPC could work with oil and natural gas
companies to use their platforms as work areas.
10:50:26 AM
CHAIR RAUSCHER asked whether oceanic tidal systems would require
significantly more maintenance than river systems.
MR. JACKINSKY answered that ORPC's systems are designed with
silt in mind, but salinity in Cook Inlet could be a challenge.
He noted that the ocean system being used by ORPC in Maine would
inform how to maintain any systems in Cook Inlet.
10:52:24 AM
REPRESENTATIVE CARRICK questioned the basis for labeling Cook
Inlet as one of the greatest tidal resources in the world.
MR. JACKINSKY answered that Cook Inlet has a much higher flow
velocity than most other places, and the high velocity of flow
allows for a high volume of potential energy production.
10:54:33 AM
REPRESENTATIVE WRIGHT asked whether the chokepoint in Cook Inlet
determines the amount of flow.
MR. JACKINSKY answered in the affirmative. In response to a
follow-up question, he said that 200 feet is the ideal depth for
production using tidal energy, and ORPC is looking for at least
100 feet of depth. He added that the systems need to be at
least 10 to 15 feet below low tide to avoid any debris from ice
in the winter.
10:56:38 AM
CHAIR RAUSCHER asked whether the systems could affect salmon
populations in Cook Inlet.
MR. JACKINSKY answered that ORPC would use sonar to place the
systems in areas where salmon populations do not generally swim
through.
10:58:41 AM
MR. JACKINSKY continued to slide 20 through slide 22 and stated
that the current project at Port MacKenzie is focused on the
development of electro-fuels such as hydrogen. He stated that
the TidGen 20 would begin testing in April 2023 in Eastport,
Maine. Following the testing in Maine, ORPC plans to use the
system in Cook Inlet.
MR. JACKINSKY continued to slide 23 through slide 25 and
highlighted international ring-fence projects that have been
producing energy. He stated that the United Kingdom is the
global leader in offshore wind energy production, and it gets 25
percent of its electricity from wind power. He suggested that
ORPC would like to bring the ring-fence system to Alaska to work
alongside their tidal energy production.
11:04:00 AM
REPRESENTATIVE PRAX asked whether ORPC is working with the
Alaska Energy Authority (AEA).
MR. JACKINSKY answered that ORPC is working with AEA on
permitting and other issues. In response to a follow-up
question, he said ORPC is familiar with some of the other
companies in the state working on river energy production.
11:05:33 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 11:05 a.m.
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