Legislature(2023 - 2024)BARNES 124

02/13/2024 11:00 AM House ENERGY

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Audio Topic
11:00:36 AM Start
11:01:43 AM Overview: Renewable Energy Fund, Round 16
11:57:27 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Overview: Renewable Energy Fund, Round 16 by TELECONFERENCED
Alaska Energy Authority
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                       February 13, 2024                                                                                        
                           11:00 a.m.                                                                                           
                                                                                                                                
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                                                                                                            
                                                                                                                                
OVERVIEW:  RENEWABLE ENERGY FUND~ ROUND 16                                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KAREN BELL, Manager of Planning                                                                                                 
Alaska Energy Authority                                                                                                         
Department of Commerce, Community & Economic Development                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Gave the Renewable Energy Fund, Round 16                                                                 
Overview.                                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
11:00:36 AM                                                                                                                   
                                                                                                                                
CHAIR  RAUSCHER  called the  House  Special  Committee on  Energy                                                             
meeting to order  at 11:00 a.m.   Representatives Schrage, McKay,                                                               
Baker,  Prax, and  Rauscher were  present at  the call  to order.                                                               
Representatives Wright  and Armstrong arrived as  the meeting was                                                               
in progress.                                                                                                                    
                                                                                                                                
^OVERVIEW:  RENEWABLE ENERGY FUND, ROUND 16                                                                                     
           OVERVIEW:  RENEWABLE ENERGY FUND, ROUND 16                                                                       
                                                                                                                                
11:01:43 AM                                                                                                                   
                                                                                                                                
CHAIR RAUSCHER  announced that the  only order of  business would                                                               
be the Renewable Energy Fund, Round 16 Overview.                                                                                
                                                                                                                                
11:02:23 AM                                                                                                                   
                                                                                                                                
KAREN BELL,  Manager of Planning, Alaska  Energy Authority (AEA),                                                               
Department   of  Commerce,   Community  &   Economic  Development                                                               
(DCCED), gave the Renewable Energy  Fund, Round 16 Overview.  She                                                               
began a PowerPoint [hard copy  included in the committee packet],                                                               
on slide  2, where she gave  a general overview of  the renewable                                                               
energy fund  (REF), including  its history as  a program  and the                                                               
laws that  relate to it.   Moving to  slide 3, she  explained the                                                               
role REF has played in  saving fuel, carbon emissions, and money.                                                               
She then showed slide 4,  which highlights the statutory guidance                                                               
that  an REF  project must  follow.   Advancing to  slide 5,  she                                                               
explained  in detail  REF funding  limits,  exceptions for  those                                                               
limits, and  how they  are governed  by the cost  of the  area in                                                               
which they're  constructed.   Slide 6 offered  a timeline  of the                                                               
grant application and approval process.                                                                                         
                                                                                                                                
11:10:35 AM                                                                                                                   
                                                                                                                                
MS. BELL continued  to slides 7 and 8, which  described the first                                                               
and  second  stages  of  the   REF  evaluation  process  and  the                                                               
technical and economic  feasibility of a project.   She turned to                                                               
slide  9 and  spoke  on the  third stage  of  the REF  evaluation                                                               
process  related   to  project   ranking,  with   many  different                                                               
categories contributing  to it.   In response to  Chair Rauscher,                                                               
she said  the number of projects  that fail on average  varies by                                                               
round.  Highlighting slide 10, she  touched on the final stage of                                                               
the  REF  evaluation  process, the  final  ranking  and  regional                                                               
spreading.                                                                                                                      
                                                                                                                                
11:16:00 AM                                                                                                                   
                                                                                                                                
MS. BELL  continued to slide 11,  which broke down the  board and                                                               
it's  makeup  and how  each  position  is  appointed.   Slide  12                                                               
explained REF's proposed capitalization.   She continued to slide                                                               
13, which broke  down the recommended applications.   In response                                                               
to  a question  from Representative  Schrage, she  explained that                                                               
there must  be a match  in order to  secure federal funding.   In                                                               
response to  a question from  Representative Prax,  she explained                                                               
that the amount of operating  costs and federal grants fluctuates                                                               
from project to project.                                                                                                        
                                                                                                                                
11:23:13 AM                                                                                                                   
                                                                                                                                
MS. BELL  moved to slide 14,  which elaborated on the  summary of                                                               
recommended  applications.   In response  to Chair  Rauscher, she                                                               
confirmed  that for  the purposes  of the  REF program,  biomass,                                                               
hydro, and storage are already  defined as renewable energy.  She                                                               
continued  to  slide  15,  which  showed  a  map  of  recommended                                                               
applications for the REF fund.   Slide 16 listed each recommended                                                               
application  forwarded  to  the  legislature  for  funding.    In                                                               
response  to  Chair  Rauscher,   she  indicated  that  the  Kenai                                                               
Peninsula Solar Farm is working  with Clean Capital.  In response                                                               
to Representative Schrage, she indicated  that it was accurate to                                                               
predict that the Homer project  would reduce gas consumption.  In                                                               
response  to  Representative  Prax, she  explained  the  cost-to-                                                               
benefit  column  on the  slide,  stating  that the  projects  are                                                               
sorted by rank determined by  things other than just cost-benefit                                                               
ratio.   In  response  to Representative  Schrage, she  explained                                                               
that  a  project  with  a  zero cost-benefit  ratio  was  in  its                                                               
reconnaissance   phase.      In  response   to   questions   from                                                               
Representative  McKay, she  confirmed  that AEA  does verify  and                                                               
guarantee that the pieces of  equipment work; it issues quarterly                                                               
reports.  She said bonding is dependent on the type of project.                                                                 
                                                                                                                                
11:41:23 AM                                                                                                                   
                                                                                                                                
MS.  BELL  continued her  presentation  on  slide 17,  which  was                                                               
another list of recommended projects  for the legislature.  Slide                                                               
18  provided recommended  REF  applications  to the  legislature.                                                               
That concluded the overview.                                                                                                    
                                                                                                                                
11:46:02 AM                                                                                                                   
                                                                                                                                
MS. BELL,  in response to Representative  Schrage, explained that                                                               
all  funding  must  be  appropriated by  the  legislature.    She                                                               
explained  to  Representative  Prax  that a  "need"  referred  to                                                               
financial need.  In response  to further questions, she explained                                                               
that  there  are several  projects  that  have been  stalled  for                                                               
various issues  and other projects  that have not  even commenced                                                               
because they lack the necessary  funding.  She confirmed that the                                                               
purpose of the rankings was  to relieve legislators of time spent                                                               
in  evaluating each  individual REF  application.   She indicated                                                               
that   options  such   as  downstream   funding  are   all  under                                                               
consideration.                                                                                                                  
                                                                                                                                
11:56:09 AM                                                                                                                   
                                                                                                                                
CHAIR RAUSCHER thanked Ms. Bell for the overview.                                                                               
                                                                                                                                
11:57:27 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Energy meeting was adjourned at 11:57 a.m.                                                                 

Document Name Date/Time Subjects
APA REF Support.pdf HENE 2/13/2024 11:00:00 AM
Renewable Energy Fund
REF_Rd16_House_Energy_Committee_Final.pdf HENE 2/13/2024 11:00:00 AM
REF Round 16