Legislature(2025 - 2026)GRUENBERG 120
03/04/2025 01:30 PM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Commercial Property Assessed Clean Energy and Resilience | |
| Presentation(s): Alaska Energy Security Task Force Report Update: Rural and Southeast | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
March 4, 2025
1:36 p.m.
DRAFT
MEMBERS PRESENT
Representative Ky Holland, Co-Chair
Representative Donna Mears, Co-Chair
Representative Bryce Edgmon
Representative Chuck Kopp
Representative Cathy Tilton
Representative George Rauscher
Representative Mia Costello
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY AND
RESILIENCE
- HEARD
PRESENTATION(S): ALASKA ENERGY SECURITY TASK FORCE REPORT
UPDATE: RURAL AND SOUTHEAST
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CALVIN CHANG, Special Administrative Assistant
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Provided the Commercial Property Assessed
Clean Energy and Resilience presentation.
STEPHANIE NOWERS, Assembly Member
Matanuska Susitna Borough
Palmer, Alaska
POSITION STATEMENT: Testified during the Commercial Property
Assessed Clean Energy and Resilience presentation.
CLAY KOPLIN, Chair, Board of Directors
Alaska Energy Authority;
Co-Chair, Alaska Energy Security Task Force;
CEO, Cordova Electric Cooperative
Cordova, Alaska
POSITION STATEMENT: Co-provided the Alaska Energy Security Task
Force Report Update: Rural and Southeast presentations.
ROBERT VENABLES, Executive Director
Southeast Conference
Juneau, Alaska
POSITION STATEMENT: Co-provided the Alaska Energy Security Task
Force Report Update: Rural and Southeast presentations.
ACTION NARRATIVE
1:36:57 PM
CO-CHAIR HOLLAND called the House Special Committee on Energy
meeting to order at 1:36 p.m. Representatives Mears, Kopp,
Tilton, Rauscher, and Holland were present at the call to order.
Representatives Edgmon and Costello arrived as the meeting was
in progress.
^PRESENTATION(S): Commercial Property Assessed Clean Energy and
Resilience
PRESENTATION(S): Commercial Property Assessed Clean Energy and
Resilience
1:39:04 PM
CO-CHAIR HOLLAND announced that the first order of business
would be the Commercial Property Assessed Clean Energy and
Resilience presentation.
1:39:54 PM
CALVIN CHANG, Special Administrative Assistant, Municipality of
Anchorage (MOA), directed attention to a PowerPoint
presentation, titled "Alaska C-PACER" [hard copy included in the
committee packet]. He began on slide 2 by defining the
Commercial Property Assessed Clean Energy & Resilience (C-PACER)
as a financing program that enables owners of commercial and
industrial properties to obtain low-cost, long-term financing
for energy efficiency, renewable energy and resilience projects,
and then pay the costs back over time through a voluntary
special assessment. Slide 3 highlighted what makes C-PACER
special: increased property value; financeable project-
associated costs; long-term, fixed rate nonrecourse financing;
new construction and retrofits; priority liens; and that the
lien is transferable and stays with the property, not the owner.
Slide 4 featured the measures that are eligible for C-PACER
financing. Slide 5 summarized the history of the C-PACER
program in Alaska, beginning in 2017 when the Property Assessed
Clean Energy (PACE) Act was signed into law. In June 2022,
Governor Dunleavy signed House Bill 227 into law to expand C-
PACE program eligibility, as noted on slide 6. Slide 7 showed
the nationwide impacts of the C-PACER program, including $9.7
billion in investments, 3,581 commercial projects, and 122,000
jobs created. Slide 8 showcased the RIM Office building
project, which is projected to realize a 42 percent reduction in
energy costs annually. The energy improvements include LED
lighting, a combined heat and power (CPH) system, and new
automated building and HVAC controls, among others. Slide 9
featured the Aviator Hotel project, estimated to product $12
million in energy savings over 20 years. Slide 10 showed the
Courtyard by Marriott Midtown Anchorage project and the
associated energy and resilience improvements. Slide 11 touted
four C-PACER programs in several of Alaska's hub communities:
Anchorage, Matanuska-Susitna (Mat-Su), Kenai Peninsula, and
Fairbanks.
1:55:59 PM
MR. CHANG, in response to a series of questions from
Representative Tilton, said raising awareness about the program
would incentivize capital providers, property owners, and
developers to apply for these projects and generate even more
economic growth and opportunity. In terms of hurdles for
stakeholders, he explained that sometimes the deals are too
small to incentivize capital investment given the amount of work
that's required.
1:59:40 PM
STEPHANIE NOWERS, Assembly Member, Matanuska Susitna Borough,
discussed the C-PACER program in the Mat-Su, a region that's
facing uncertainty when it comes to the cost of energy. The C-
PACER program offers a way for businesses to reduce their energy
costs and insulate themselves from price spikes; it also help
the Mat-Su borough build its building stock and creates
resiliency in the business community. The C-PACER program
solves common business barriers by assisting with upfront
capital financing and tying the finances to the property, as
opposed to the owner, which alleviates owners' fears of losing
their investment and the ability to make their money back.
Further, the third-party, private financing is another benefit
to local governments. She characterized the C-PACER program as
government as its best because it provides businesses a tool
that allows them to lower costs. She discussed two projects
that are using the C-PACER program in their "financial stack,"
which allows them to lower costs and build a more resilient
building that is cheaper to operate in the long-term. She
expressed her hope that the banks would finance smaller projects
as they become more familiar with the program; in addition, she
suggested that Alaska Housing Finance Corporation (AHFC) should
be the statewide administrator of the program. Lastly, she said
the program could be a model for other programs, and touted the
templates created by the Municipality of Anchorage (MOA) which
allowed the Mat-Su to follow suite.
2:06:52 PM
MS. NOWERS, in response to a series of committee questions, said
the C-PACER program lowers energy costs, which benefits
businesses' bottom line. She acknowledged that it would be
wonderful if the Alaska Sustainable Energy Conference (ASEC)
could manage a revolving fund to finance smaller projects and
help jumpstart them in the Mat-Su Borough.
2:10:28 PM
MR. CHANG, in response to committee questions, clarified that
funding is not run through the Alaska Energy Authority (AEA).
Currently, the associated fees include a small application fee
of $150, as well as a closing fee of 1 percent that caps out at
$50,000 of total project costs, and an annual assessment fee of
0.5 percent of the assessment payment. He acknowledged that Co-
Chair Holland's understanding is correct: the loan is
constructed as a lien that's attached to the building, not the
owner. He clarified that the lender does not have to be a local
bank. He discussed the standards that projects need to qualify
for C-PACER financing and listed the four types of projects: new
construction, retrofitting, resilience improvements, and
refinancing - each with their own eligibility criteria. He
defined larger scale projects as those in the $1 million range.
2:17:40 PM
^PRESENTATION(S): Alaska Energy Security Task Force Report
Update: Rural and Southeast
PRESENTATION(S): Alaska Energy Security Task Force Update:
Rural and Southeast
CO-CHAIR HOLLAND announced that the next order of business would
be the Alaska Energy Security Task Force Report Update: Rural
and Southeast presentations.
2:19:45 PM
CLAY KOPLIN, Chair, Board of Directors, Alaska Energy Authority;
Co-Chair, Alaska Energy Security Task Force; CEO, Cordova
Electric Cooperative (CEC), directed attention to a PowerPoint
presentation, titled "Alaska Energy Security Task Force" [hard
copy included in the committee packet]. He began on slides 2
and 3 with introduction to the 15-member board and the 6 task
force subcommittees. He outlined the task force's short-term,
mid-term, and long-term objectives on slide 4 with the goal of
advancing affordability, reliability, and security/resilience.
Slide 5 outlined the planning process for the energy master plan
and slide 6 emphasized the magnitude of the effort by the
numbers. Slide 7 showcased the organization of priority A:
Railbelt transmission, generation, and storage. Slides 8 and 9
outlined priority B: Coastal generation, distribution, and
storage. Slides 10 and 11 showed priority C: rural generation,
distribution, and storage. Slides 12 and 13 featured priority
D: state energy data. Slide 14 outlined priority E: incentives
and subsidies. Slides 15 and 16 featured priority F: statutes
and regulations. Slide 17 provided contact information for the
task force; slide 18 offered contact information for AEA; and
slide 19 concluded with background information on Mr. Koplin and
Robert Venables.
2:29:07 PM
MR. KOPLIN, in response to committee questions, said the AEA's
renewable energy fund is a good framework for programs with
limited funding that are trying to figure out where to best
allocate it. The AEA has huge capital requirements, which is a
good rational for considering regional investments and equitable
distribution. He spoke to the balance between dire need and
necessity and said a priority that's often overlooked is
investment in technologies or programs that are already working
for Alaska. In response to a question about the Power Cost
Equalization (PCE), he shared that as Cordova invested in
renewable energy projects and brought its kilowatt hours down,
it qualified for less subsidy from PCE, which allows that
funding to be distributed to communities that need it more.
2:34:49 PM
ROBERT VENABLES, Executive Director, Southeast Conference,
directed attention to a PowerPoint presentation, titled "Coastal
Generation, Distribution, & Storage" [hard copy included in the
committee packet]. He began on slide 2 with background on
Southeast Conference. Slide 3 showed a map of the Alaska
Regional Development Organizations. Slide 4 highlighted the
Ardor Annual Report, with a QR code for download. Slide 5
featured the seven Southeast Conference committees, promoting
strong economies, healthy communities, and a quality environment
in Southeast Alaska. Slide 6 showed its publications and slide
7 showed the Southeast 2030 strategic plan summary. Slide 8
showed the Coastal Alaska opportunity method for energy
dependence. Slide 9 addressed the enormous potential of
renewables and slide 10 showed external drivers and regional
issues facing Alaska. Slides 11 and 12 emphasized that
beneficial electrification is key to economic transformation.
Slide 13 addressed federal changes and uncertainty and slide 14
discussed historical crossroads. Slide 15 highlighted the
benefits of a renewables focused future and slide 17 offered a
brand spotlight on Alaska Brewing Co. and the ultimate
application for beneficial electrification.
2:44:17 PM
MR. VENABLES, in response to a question from the co-chair, spoke
to the balance between research and development (RnD) and
viability. He said he is a big proponent of tidal research,
especially for Southeast Alaska where there are 20-foot tidal
swings; however, it's not a near-term objective.
2:46:20 PM
MR. KOPLIN referenced Alaska Brewing Co's ingenuity in creating
an energy source from their disposable grains. The Department
of Energy's (DOE's) excitement about Alaska's ecosystem lead to
hosting the largest grid modernization projects in the country
in Cordova. In addition, the leading wave energy technology was
created out of Cordova by a young fisherman who went to school
for engineering.
2:47:34 PM
MR. VENABLES, in response to a question from Representative
Rauscher, said until a better solution emerges on how to
strategically use renewables, there's generally a sense of
caution and a high degree of protectionism when it comes to
renewable energy because it's of its importance for rural
Alaska.
MR. KOPLIN, in response to a question about the creation of a
data repository within AEA, explained that AEA has created a
documents library that goes back 40-50 years all of which is
available online.
2:50:22 PM
MR. VENEBLES, in response to a series of committee questions,
noted that the energy plan for Southeast Alaska has resulted in
countless projects and investments and has been very rewarding.
He suggested that creating something similar for other regions
of the state would require a fiscal note but would be money well
spent and would help pinpoint the next best project for the
region. He explained that using the PCE program strategically
to make investments that drive down energy production costs is
the "magic moment," like in the Railbelt, for example. However,
he said there are large areas of the state that will never reach
that point due to scale, as there are not enough rate payers or
economic development in an area to drive rates down. He opined
that right now, PCE is working and there will always be a role
for it to play. He referenced the PCE "trickle down" and said
if the right investments are made, communities will no longer
need it, and extra dollars could be injected back into the
renewable energy fund or used for leveraging federally funded
energy projects that match.
MR. KOPLIN, in response to a question from the co-chair about
how much to put into the Renewable Energy Fund (REF) to benefit
ratepayers, said the program is working, but there is a tradeoff
when investing in permanent solutions reduces the need for
subsidies and support from the PCE program. He added that while
the legislature's expansion of REF was great, there are fewer
routes for other projects that are becoming available. Further,
he pointed out that by connecting the task force to local
economies by helping local businesses become sustainable, it
builds stronger communities with energy as an underpinning and
therefore, a stronger state.
3:00:02 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 3:00 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| House Energy_Venables_Coastal Generation Mar 2025.pdf |
HENE 3/4/2025 1:30:00 PM |
|
| Energy Taskforce Recommendations and SEC and Partners work and actions.pdf |
HENE 3/4/2025 1:30:00 PM |
|
| 2025.03.04 Koplin_AEA AESTF Overview Presentation to HENE.pdf |
HENE 3/4/2025 1:30:00 PM |
|
| 2025.03.04_C-PACER_AK House Energy Committee.pdf |
HENE 3/4/2025 1:30:00 PM |
|
| Matsu_CPACER.pdf |
HENE 3/4/2025 1:30:00 PM |