Legislature(2023 - 2024)BARNES 124

02/27/2024 11:00 AM House ENERGY

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11:00:23 AM Start
11:01:49 AM HB368
11:33:57 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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*+ HB 368 ELECTRICAL ENERGY & ENERGY PORTFOLIO STDS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                       February 27, 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                                                                                                            
                                                                                                                                
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                                                                                                             
                                                                                                                                
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                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CRAIG VALDEZ, Staff                                                                                                             
Representative George Rauscher                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided a PowerPoint presentation and                                                                   
sectional analysis of HB 368 on behalf of the Special Committee                                                                 
on Energy,  sponsor, on which  Representative Rauscher  serves as                                                               
chair.                                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
11:00:23 AM                                                                                                                   
                                                                                                                                
CHAIR  RAUSCHER  called the  House  Special  Committee on  Energy                                                               
meeting to order  at 11:00 a.m.   Representatives Schrage, McKay,                                                               
Wright, Baker,  and Rauscher were  present at the call  to order.                                                               
Representatives Armstrong and Prax arrived  as the meeting was in                                                               
progress.                                                                                                                       
                                                                                                                                
        HB 368-ELECTRICAL ENERGY & ENERGY PORTFOLIO STDS                                                                    
                                                                                                                                
11:01:49 AM                                                                                                                   
                                                                                                                                
CHAIR RAUSCHER  announced that the  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."                                                                                               
                                                                                                                                
11:03:31 AM                                                                                                                   
                                                                                                                                
CHAIR RAUSCHER introduced  HB 368 on behalf of  the House Special                                                               
Committee  on  Energy,  sponsor.    He  spoke  from  the  sponsor                                                               
statement  included  in  the  committee  packet,  which  read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     In the wake  of a looming gas  availability shortage in                                                                    
     the Cook  Inlet basin,  critical for  powering Alaska's                                                                    
     Railbelt from  Homer to Fairbanks, this  Committee Bill                                                                    
     on   Clean  Energy   Standards  and   a  Clean   Energy                                                                    
     Transferable  Tax Credit  serves as  a cornerstone  for                                                                    
     our energy policy. It is  an urgent and needed measure,                                                                    
     pivotal for  steering Alaska towards a  sustainable and                                                                    
     secure energy future amidst these challenges.                                                                              
                                                                                                                                
     This legislation  not only  signals a  shift to  a more                                                                    
     diversified   and  resilient   energy   mix  but   also                                                                    
     establishes a  strategic framework for  economic growth                                                                    
     and  sustainable stewardship.  By  setting forth  clean                                                                    
     energy  standards  we  are  crafting  a  blueprint  for                                                                    
     innovation  and transition,  guiding our  state towards                                                                    
     needed  energy solutions  that  will  broaden and  help                                                                    
     diversify  energy, and  will  keep Alaska  economically                                                                    
     viable.                                                                                                                    
                                                                                                                                
     The  introduction of  a clean  energy transferable  tax                                                                    
     credit is a  key feature of this bill,  designed to act                                                                    
     as  a   catalyst  for   clean  energy   projects.  This                                                                    
     initiative  is of  paramount  importance,  as it  opens                                                                    
     avenues  for   leveraging  both  federal   and  private                                                                    
     investment  in Alaska's  energy  sector.  It creates  a                                                                    
     fertile  environment  for public-private  partnerships,                                                                    
     ensuring that  the path to energy  independence is both                                                                    
     collaborative  and   multifaceted.  Additionally,  this                                                                    
     bill acknowledges the role  of existing low-sulfur coal                                                                    
     facilities,   incorporating  them   into  the   broader                                                                    
     framework of  clean energy  solutions to  enhance their                                                                    
     contribution to Alaska's energy portfolio.                                                                                 
                                                                                                                                
     As  a conservative  advocate, I  highlight this  bill's                                                                    
     crucial role  in stabilizing the market,  essential for                                                                    
     investors  across  sectors  including Cook  Inlet  gas,                                                                    
     clean  energy, manufacturing,  and  heavy industry.  By                                                                    
     establishing   a   consistent  policy   framework,   we                                                                    
     mitigate investment risks  and ensure ratepayers aren't                                                                    
     burdened   by   costs.    This   legislation   instills                                                                    
     confidence    among   stakeholders,    showcasing   our                                                                    
     dedication  to  a   predictable  market  that  attracts                                                                    
     investment,  advancing Alaska's  energy transition  and                                                                    
     economic prosperity.                                                                                                       
                                                                                                                                
     I  call  upon  my  colleagues  and  partners  from  all                                                                    
     sectors  to support  this vital  legislation. Together,                                                                    
     we can  establish a  stable, diversified  energy market                                                                    
     that benefits all Alaskans,  ensuring our state remains                                                                    
     a   beacon  of   innovation,  economic   strength,  and                                                                    
     sustainable growth for generations to come.                                                                                
                                                                                                                                
11:07:15 AM                                                                                                                   
                                                                                                                                
CRAIG  VALDEZ,  Staff,  Representative  George  Rauscher,  Alaska                                                               
State  Legislature, provided  a  PowerPoint presentation,  "House                                                               
Bill  368 ELECTRICAL  ENERGY &  ENERGY PORTFOLIO  STANDARDS," and                                                               
sectional  analysis of  HB 368  on  behalf of  the House  Special                                                               
Committee on  Energy, sponsor,  on which  Representative Rauscher                                                               
serves as  chair.  He displayed  the map on slide  2, "House Bill                                                               
368,   Alaska's  Energy   Landscape,"   and   related  that   the                                                               
geographical  area  being talked  about  is  the Railbelt,  which                                                               
includes Homer,  Southcentral Alaska, and Golden  Valley Electric                                                               
Association.   The  bill focuses  primarily on  the Railbelt,  he                                                               
said, but the tax credit portion is statewide.                                                                                  
                                                                                                                                
MR.  VALDEZ addressed  the graph  on slide  3, "Combined  Utility                                                               
Annual Demands."   He  said the  higher risk  uncontracted demand                                                               
going  forward begins  in 2029  [depicted in  red], while  ENSTAR                                                               
predicts  the undesignated  gas  supply gap  will  begin in  2025                                                               
[slide numbered 14, "ENSTAR Gas supply Forecast 2024-2034"].                                                                    
                                                                                                                                
MR. VALDEZ displayed  the graphic on slide  5, "Historical Demand                                                               
and  Uses."   He  noted  that today's  [gas]  uses still  include                                                               
electric  power, commercial,  and oil  and gas  field operations,                                                               
but  the  fertilizer plant  and  the  export of  Kenai  liquified                                                               
natural gas (LNG) are no longer uses.                                                                                           
                                                                                                                                
MR.  VALDEZ   turned  to  slide  6,   "ENSTAR  Presentation,  Key                                                               
Considerations," and related that  of the considerations provided                                                               
in  ENSTAR's presentations,  none  of the  options  meet the  LNG                                                               
demands for the 4-year milestone  of fourth quarter 2027 when the                                                               
gas gap  starts to accelerate.   He further related  that another                                                               
key consideration  in ENSTAR's presentation  was that  the second                                                               
worst thing  for Alaska is to  import LNG and the  worst thing is                                                               
to do nothing.                                                                                                                  
                                                                                                                                
MR. VALDEZ  moved to slide  7, "HB 368, a  Legislative Response,"                                                               
which read  as follows [original  punctuation provided  with some                                                               
formatting changes]:                                                                                                            
                                                                                                                                
     HB  368 is  a proactive  legislative measure  aiming to                                                                    
     establish   a  Clean   Energy   Portfolio  Standard   &                                                                    
     Introduce Clean Energy Tax  Credits to leverage private                                                                    
     funding and close production gaps.                                                                                         
                                                                                                                                
     Diversifying  Alaska's  energy   portfolio  with  clean                                                                    
     energy  sources  not  only extends  the  life  of  Cook                                                                    
     Inlet's  natural  gas  reserves  for  critical  heating                                                                    
     needs  but  also  offers  gas  producers  a  definitive                                                                    
     roadmap for  the future,  enhancing their  capacity for                                                                    
     strategic planning and investment.                                                                                         
                                                                                                                                
MR.  VALDEZ paraphrased  from  the first  two  paragraphs on  the                                                               
eighth  slide, "Bill  Overview, HB  368," which  read as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     1.  Clean  Energy  Standards:  HB   368  sets  forth  a                                                                  
     legislative   framework  to   establish  clean   energy                                                                    
     standards   for  electric   utilities  in   Alaska.  It                                                                    
     mandates a phased  increase in the use  of clean energy                                                                    
     sources,  aiming  for  utilities  to  achieve  specific                                                                    
     targets of  their net electricity sales  from renewable                                                                    
     or carbon-neutral sources by certain deadlines.                                                                            
     2. Clean Energy Transferable  Tax Credits: Introduces a                                                                  
     mechanism for clean energy  transferable tax credits to                                                                    
     incentivize investments in  clean energy infrastructure                                                                    
     and production.                                                                                                            
                                                                                                                                
11:14:23 AM                                                                                                                   
                                                                                                                                
MR. VALDEZ spoke from the sectional analysis for HB 368 outlined                                                                
on slides 9-21, which read as follows [original punctuation                                                                     
provided with some formatting changes]:                                                                                         
                                                                                                                                
     Section 1: Uncodified Law                                                                                                
     Adds a  new section  to the  uncodified law  of Alaska,                                                                    
     which establishes the purpose of  this Act, which is to                                                                    
     set  a clean  energy  portfolio  standard for  electric                                                                    
     utilities,  mandating increasing  percentages of  their                                                                    
     net electricity sales  from renewable or carbon-neutral                                                                    
     sources.                                                                                                                 
                                                                                                                                
     Section  2: AS  42.05.381 is  amended by  adding a  new                                                                  
     subsection (p)                                                                                                           
     Introduces  a new  subsection (p)  under AS  42.05.381,                                                                    
     mandating a  uniform service rate for  the transmission                                                                    
     of clean energy generated after July 1, 2024.                                                                              
                                                                                                                                
     Section 3: AS 42.05.780(a) is amended                                                                                    
     Amends AS 42.05.780(a) by  mandating that an integrated                                                                    
     resource  plan   must  now  identify  the   most  cost-                                                                    
     effective strategies for the  energy network to satisfy                                                                    
     the clean energy standard.                                                                                                 
                                                                                                                                
     Sec. 4. AS 42.05.785(a) is amended to read                                                                               
     Amends  AS   42.05.785(a)  by  adding   subsection  (4)                                                                    
     stipulating   the   construction    of   large   energy                                                                    
     facilities  may not  be detrimental  to a  load-serving                                                                    
     entities ability to meet the CES.                                                                                          
                                                                                                                                
     Section  5:   AS  42.05   Article  11A.   Clean  Energy                                                                  
     Portfolio Standard.                                                                                                      
     Sec. 42.05.900(a)-(i) Clean Energy Portfolio Standard                                                                      
     a) Adds section (a) to AS 42.05, establishing the clean                                                                    
        energy portfolio standard and detailing requirements                                                                    
        and percentages for clean energy sources. Specifies                                                                     
        the minimum percentages  of clean energy  sources in                                                                    
        the  utilities'  sales  portfolio,  with  a  gradual                                                                    
        increase over a specified timeline.                                                                                     
     b) Allows a  power purchase  agreement  to be  included                                                                    
        when calculating  CES percentages.  And requirements                                                                    
        for such.                                                                                                               
     c) Allows for distributed energy systems to satisfy the                                                                    
        CES.                                                                                                                    
     d) Bases  the  clean  energy   standard  compliance  on                                                                    
        historical data,  and  industry  standards,  set  by                                                                    
        Regulatory Commission of Alaska.                                                                                        
     e) Mandates accounting  system to  track  use of  clean                                                                    
        energy,  verify  compliance,  and  to  track  energy                                                                    
        consumption   displaced    by   energy    efficiency                                                                    
        investments.                                                                                                            
     f) Sets requirements for the RCA to develop a proxy for                                                                    
        net energy from displaced energy systems.                                                                               
     g) Allows for  clean  energy  standards  to be  met  by                                                                    
        energy efficiency investments, including in consumer                                                                    
        efficient upgrades.                                                                                                     
     h) Directs the RCA to establish regulations for a load-                                                                    
        serving  entity  to  opt-out  of  the  clean  energy                                                                    
        standard  under  certain  requirements,  and  denies                                                                    
        eligibility for  a utility  to receive  clean energy                                                                    
        transferable tax credits if it does.                                                                                    
     i) Directs the  RCA  to adopt  a  minimum standard  for                                                                    
        transmission lines before the clean energy standards                                                                    
        are required. 10 years for step  one after lines are                                                                    
        complete and 25  years, with the  transmission lines                                                                    
      built out to encompass the road system, for step 2.                                                                       
                                                                                                                                
     Sec. 42.05.905(a)-(c) Reporting                                                                                          
     a) Details the  reporting  requirements for  utilities,                                                                    
        including   the   submission   of   annual   reports                                                                    
        demonstrating compliance.                                                                                               
     b) Assigns a  role  to  the  regulatory  commission  in                                                                    
        monitoring  and   verifying   compliance  with   the                                                                    
        standard.                                                                                                               
     c) Empowers the RCA to investigate  compliance with the                                                                    
        standard                                                                                                                
                                                                                                                                
     Sec.  42.05.910.(a)-(e) Clean  Energy Transferable  Tax                                                                  
     Credits                                                                                                                  
     1. Allows for a  load-serving entity  to apply  for the                                                                    
        clean energy  transferable  tax  credits,  sets  the                                                                    
        credit  amount  to  0.2  cents  per  kilowatt-hours.                                                                    
        Defines what entities would qualify.                                                                                    
     2. Defines facilities that would qualify                                                                                   
                                                                                                                                
     Sec. 42.05.915.(a)-(d) Waiver                                                                                            
     a) Allows for and sets  standards for the RCA  to waive                                                                    
        the requirement to meet the CES.                                                                                        
     b) Sets out the  standards for events  or circumstances                                                                    
        outside of a load-serving entities reasonable                                                                           
        control.                                                                                                                
     c) Sets standards for good cause of non-compliance.                                                                        
     d) Restricts eligibility  to  apply  for  clean  energy                                                                    
        transferable tax credits while under a waiver.                                                                          
                                                                                                                                
     Sec. 42.05.920.(a)-(b) Exemptions                                                                                        
     a) Exempts  individual   load-serving   entities   from                                                                    
        compliance if the overall grid is meeting the Clean                                                                     
        Energy Portfolio Standards.                                                                                             
     b) Allows for exemption for a  load-serving entity from                                                                    
        its first noncompliance period.                                                                                         
                                                                                                                                
     Sec. 42.05.925.(a)-(b) Net Billing                                                                                       
     a) Sets standards for  net billing  and an  export rate                                                                    
        credit.                                                                                                                 
     b) Charges the RCA to  establish regulation to  set the                                                                    
        ERC annually based on seasonal and time variations,                                                                     
        and other relevant factors.                                                                                             
                                                                                                                                
     Sec. 42.05.930 Additional Energy Resources                                                                               
     a) Requires the AEA to submit a report at least every 5                                                                    
        years to the legislature to recommend if any new                                                                        
        technologies are to be added to the definition of                                                                       
        Clean Energy.                                                                                                           
                                                                                                                                
     Sec. 42.05.935. Definitions                                                                                              
     1. "Clean Energy"                                                                                                          
     2. "Clean Energy Standard"                                                                                                 
     3. "Compliance Period"                                                                                                     
     4. "Distributed Energy Systems"                                                                                            
     5. "Interconnected   Electric    Energy    Transmission                                                                    
        Network"                                                                                                                
     6. "Load- Serving Entity"                                                                                                  
     7. "Railbelt"                                                                                                              
     8. "Renewable Energy Resource"                                                                                             
     9. "Transmission Network Constraint"                                                                                       
                                                                                                                                
     Section 6: AS 42.45.110(a) Costs used to Calculate PCE                                                                   
     This section  amends AS 42.45.110(a) to  stipulate that                                                                    
     revenue from Clean Energy Credits  or recovered heat is                                                                    
     not to be included.                                                                                                        
                                                                                                                                
     Section  7:  AS  43.98  is  amended  by  adding  a  new                                                                  
     section.                                                                                                                 
     Clean Energy Transferable Tax Credit, Article 5                                                                            
     a) Sets   the   foundation   for   the   clean   energy                                                                    
        transferable tax credit, sets transparency standards                                                                    
        for those provided the tax credit.                                                                                      
     b) Allows clean energy  transferable tax credits  to be                                                                    
        sold, assigned,  exchanged,  conveyed, or  otherwise                                                                    
        transferred in whole or in part.                                                                                        
     c) Allows the credit to  be used to offset  taxes in AS                                                                    
        10.25 and Title 43.                                                                                                     
     d) Instructs  the  department   of  revenue   to  adopt                                                                    
        regulations necessary  for  administrating  the  Tax                                                                    
        Credits                                                                                                                 
     e) Sets   the   requirement   that   a   clean   energy                                                                    
        transferable tax credit be used within 5 years.                                                                         
     f) Restricts a  clean  energy  transferable tax  credit                                                                    
       from reducing a person's tax liability below zero.                                                                       
     g) Allows  holders   of   clean   energy   tax   credit                                                                    
        certificates to combine  or split their  credits for                                                                    
        transactions like sales or transfers. The Department                                                                    
        must issue  new certificates  for combined  or split                                                                    
        credits,  detailing  their  amounts  and  expiration                                                                    
        dates. This  process  doesn't  extend  the  credits'                                                                    
        validity period.                                                                                                        
                                                                                                                                
     Sec.  8.  AS  44.83.940  is amended  by  adding  a  new                                                                  
     subsection:                                                                                                              
     Section (b) mandates that the  authority must submit an                                                                    
     annual  report  to   the  legislature's  first  regular                                                                    
     session,  detailing  progress  on  rural  clean  energy                                                                    
     development.  This   report  should   evaluate  current                                                                    
     initiatives,   identify   needed  infrastructure,   and                                                                    
     assess the feasibility and costs of future projects.                                                                       
                                                                                                                                
     Section 9: Effective Date Clause                                                                                         
     This Act takes effect July 1, 2024.                                                                                        
                                                                                                                                
11:20:46 AM                                                                                                                   
                                                                                                                                
MR. VALDEZ concluded his presentation on slide 22, "Bottom Line:                                                                
HB 368's Impact on Alaska's Future," which read as follows                                                                      
[original punctuation provided with some formatting changes]:                                                                   
                                                                                                                                
     Energy    Security:    Strengthens   Alaska's    energy                                                                  
     independence by  diversifying supply  sources, reducing                                                                    
     reliance on Cook Inlet gas.                                                                                                
                                                                                                                                
     Economic  Growth: Stimulates  the  economy by  creating                                                                  
     jobs  in   the  clean  energy  sector   and  attracting                                                                    
     industries seeking sustainable operations.                                                                                 
                                                                                                                                
     Public-Private   Partnerships:  Encourages   innovative                                                                  
     collaborations, driving  both clean  energy initiatives                                                                    
     and broader industrial development.                                                                                        
                                                                                                                                
     Legislative  Leadership:  Showcases Alaska's  proactive                                                                  
     approach  in energy  policy,  setting  a benchmark  for                                                                    
     sustainable and forward-thinking legislation.                                                                              
                                                                                                                                
11:20:53 AM                                                                                                                   
                                                                                                                                
CHAIR RAUSCHER,  responding to  Representative Prax,  stated that                                                               
today  is an  overview of  HB  368, and  the bill  will be  heard                                                               
again.                                                                                                                          
                                                                                                                                
11:21:58 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE SCHRAGE  observed that [the Department  of Revenue                                                               
(DOR) fiscal  note, OMB  Component Number  2476] states  that the                                                               
revenue impacts of  the bill are not yet determined  and that the                                                               
bill will  have an indeterminant  negative impact on  overall tax                                                               
revenue.  He expressed his hope  that DOR will be able to provide                                                               
the committee  with a more accurate  fiscal note, so it  is known                                                               
whether  the figures  are  hundreds of  thousands  of dollars  or                                                               
millions of dollars.                                                                                                            
                                                                                                                                
REPRESENTATIVE SCHRAGE further observed  that the third paragraph                                                               
in Fiscal Note  Number 3 [OMB Component Number  2417] talks about                                                               
the bill altering  how the Regulatory Commission  of Alaska (RCA)                                                               
calculates  power cost  and thus  the  RCA would  need to  revise                                                               
regulations    addressing   power    cost   equalization    (PCE)                                                               
calculations.   He asked  whether this would  have any  impact on                                                               
the  health of  the  PCE  fund and  the  payment calculations  to                                                               
communities.   He expressed his hope  that it wouldn't be  a huge                                                               
impact and  that he would like  to have answers to  his questions                                                               
before any action is taken on the bill.                                                                                         
                                                                                                                                
CHAIR RAUSCHER replied  that OMB Component Number  2417 is saying                                                               
that with the  new computations someone will have to  be hired to                                                               
crunch the  numbers because  they will  be different.   Regarding                                                               
the PCE, he  said he thinks anything that  happens throughout the                                                               
Railbelt  has to  do  with  the PCE  and  the calculations  going                                                               
forward, so  the number will  be indeterminant until that  can be                                                               
vetted,  although  a solid  number  for  the  future may  not  be                                                               
possible.                                                                                                                       
                                                                                                                                
REPRESENTATIVE SCHRAGE  said he  understands the  short timeframe                                                               
has precluded having  answers at this time, but he  would like to                                                               
have them when the bill next comes up.                                                                                          
                                                                                                                                
CHAIR  RAUSCHER added  that there  are also  the tax  credits and                                                               
said coming up with numbers won't be easy.                                                                                      
                                                                                                                                
MR. VALDEZ  stated that each of  those will be provided  when the                                                               
committee goes over the relevant sections of the bill.                                                                          
                                                                                                                                
11:26:06 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE PRAX  asked how urgent the  clean energy standards                                                               
are for capturing  federal money that will be  forthcoming in the                                                               
future.                                                                                                                         
                                                                                                                                
CHAIR RAUSCHER  responded that since he  isn't the administration                                                               
or  the  Alaska Energy  Authority  (AEA),  he cannot  answer  the                                                               
question.  But, he continued,  the governor would like a roadmap,                                                               
something tangible,  that says where  the state is going  and the                                                               
projects within the state for which investors are wanted.                                                                       
                                                                                                                                
REPRESENTATIVE PRAX  surmised that two  things need to  be sorted                                                               
out first    whether  the gasline  from the  North Slope  and the                                                               
intertie  [transmission line  upgrade] are  or are  not going  to                                                               
move  forward    because  those  would  be  main drivers  of  the                                                               
ability to meet the [proposed] standards.                                                                                       
                                                                                                                                
CHAIR RAUSCHER  answered that most  of it,  not all of  it, comes                                                               
into play for the utility  companies after the transmission lines                                                               
are  built, so  the threshold  percentages and  the years  aren't                                                               
dependent upon  the bill.   The bill  doesn't dictate  who builds                                                               
the transmission line,  whether it is state,  federal, or private                                                               
utility companies.                                                                                                              
                                                                                                                                
REPRESENTATIVE PRAX  asked whether it would  be up to the  RCA or                                                               
whether statute needs to be stipulated  to come up with a process                                                               
for  deciding whether  the  priority is  cost  or carbon  dioxide                                                               
reduction and which projects to adopt.                                                                                          
                                                                                                                                
CHAIR RAUSCHER replied that he would get back with an answer.                                                                   
                                                                                                                                
11:29:45 AM                                                                                                                   
                                                                                                                                
CHAIR RAUSCHER  announced a deadline  of one week  for submitting                                                               
amendments.                                                                                                                     
                                                                                                                                
11:30:46 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE PRAX expressed his concern  that HB 368 would make                                                               
the  same procedural  error as  previous legislation  that didn't                                                               
work out.  Responding to Chair  Rauscher, he confirmed he has the                                                               
part about tax credits.                                                                                                         
                                                                                                                                
CHAIR  RAUSCHER  asked  whether  Representative  Prax  finds  the                                                               
[proposed] tax credits to be similar to the oil tax credits.                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  responded no.   He said  his concern  is the                                                               
whole scope  of the decision  as far as  the impact to  the state                                                               
and that  it is somewhat  dictating policy or the  direction that                                                               
things will take.   He offered his belief that a  week to come up                                                               
with  amendments isn't  enough time  to get  needed input  and to                                                               
understand the bill.                                                                                                            
                                                                                                                                
REPRESENTATIVE SCHRAGE  inquired whether it would  be possible to                                                               
have  a hearing  with the  RCA and  Department of  Revenue online                                                               
prior to the amendment deadline so questions could be asked.                                                                    
                                                                                                                                
CHAIR  RAUSCHER  answered  yes,  he plans  to  have  many  people                                                               
testify to provide their opinion on the bill.                                                                                   
                                                                                                                                
11:33:03 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE SCHRAGE agreed  that that would be  good and would                                                               
determine  whether pushing  back the  deadline for  amendments is                                                               
needed.                                                                                                                         
                                                                                                                                
CHAIR RAUSCHER  replied he is  willing to push back  the deadline                                                               
for amendments, if needed.                                                                                                      
                                                                                                                                
[HB 368 was held over.]                                                                                                         
                                                                                                                                
11:33:57 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Energy meeting was adjourned at 11:33 a.m.                                                                 

Document Name Date/Time Subjects
HB 368 Sponsor Statement.pdf HENE 2/27/2024 11:00:00 AM
HB 368
Alaska Energy Authority.pdf HENE 2/27/2024 11:00:00 AM
HB 368
Department of Revenue.pdf HENE 2/27/2024 11:00:00 AM
HB 368
Regulatory Commission of Alaska.pdf HENE 2/27/2024 11:00:00 AM
HB 368
HB 368 Sectional Analysis.pdf HENE 2/27/2024 11:00:00 AM
HB 368
HB 368 Presentation.pdf HENE 2/27/2024 11:00:00 AM
HB 368