Legislature(2019 - 2020)BELTZ 105 (TSBldg)
03/10/2020 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB194 | |
| SB218 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 194 | TELECONFERENCED | |
| *+ | SB 218 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
March 10, 2020
3:33 p.m.
MEMBERS PRESENT
Senator Click Bishop, Chair
Senator Peter Micciche, Vice Chair
Senator Lyman Hoffman
Senator Mike Shower
Senator Elvi Gray-Jackson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 194
"An Act relating to advanced nuclear reactors."
- MOVED CSSB 194(CRA) OUT OF COMMITTEE
SENATE BILL NO. 218
"An Act relating to road service area consolidation."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 194
SHORT TITLE: ADVANCED NUCLEAR REACTORS
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS
02/17/20 (S) READ THE FIRST TIME - REFERRALS
02/17/20 (S) CRA, RES
03/03/20 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
03/03/20 (S) Heard & Held
03/03/20 (S) MINUTE(CRA)
03/10/20 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 218
SHORT TITLE: ROAD SERVICE AREA CONSOLIDATION
SPONSOR(s): COGHILL
02/21/20 (S) READ THE FIRST TIME - REFERRALS
02/21/20 (S) CRA
03/10/20 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
CODY GRUSSENDORF, Staff
Senator Click Bishop
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced a committee substitute for SB
194.
GEORGE ROE, Research Professor
Alaska Center of Energy and Power
University of Alaska Fairbanks
Seattle, Washington
POSITION STATEMENT: Testified in support of SB 194.
RYNNIEVA MOSS, Staff
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Co-presented SB 218 on behalf of the
sponsor.
AIMEE BUSHNELL, Staff
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Co-presented SB 218 on behalf of the
sponsor.
MICHAEL BREDLIE, Rural Services Manager
Division of Rural Services
Department of Public Works
Fairbanks North Star Borough
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 218.
MARNA SANFORD, Assembly Member
Fairbanks North Star Borough Assembly
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 218.
ACTION NARRATIVE
3:33:41 PM
CHAIR CLICK BISHOP called the Senate Community and Regional
Affairs Standing Committee meeting to order at 3:33 p.m. Present
at the call to order were Senators Hoffman, Micciche, and Chair
Bishop. Senator Gray-Jackson arrived soon thereafter and Senator
Shower arrived during the course of the meeting.
SB 194-ADVANCED NUCLEAR REACTORS
3:34:28 PM
CHAIR BISHOP announced the consideration of SENATE BILL NO. 194,
"An Act relating to advanced nuclear reactors." He noted that
there was a committee substitute (CS) to consider.
3:34:41 PM
SENATOR MICCICHE moved to adopt the CS for SB 194, work order
31-LS0878\M, as the working document.
CHAIR BISHOP objected for discussion purposes and explanation of
changes.
3:35:03 PM
CODY GRUSSENDORF, Staff, Senator Click Bishop, Alaska State
Legislature, Juneau, Alaska, paraphrased the following
explanation of changes from version A to version M for S 194:
• Page 1, lines 10-13:
o Adds a 300-megawatt (MW) ceiling exemption to the
amount of power generated for an advanced nuclear
reactor classification.
o The ceiling exempts a reactor from the land
designation requirement by the legislature in Section
1(b).
• Page 2, line 2:
o The CS removes language referring to the most recent
generation of reactors.
o The CS inserts a date: January 1, 2020.
• Page 2, line 19:
o The CS inserts a date: January 1, 2020.
3:35:28 PM
SENATOR GRAY-JACKSON joined the committee meeting.
SENATOR MICCICHE asked what the significance is for the 300 MW
ceiling.
MR. GRUSSENDORF answered that 300 MW is the U.S. Department of
Energy's (DOE) standard definition of a small modular reactor.
The bill is about small reactors and does not intend to exempt
gigawatt reactors from the legislative site designation.
SENATOR MICCICHE asked what would happen if DOE changed the 300
MW definition to a larger size.
MR. GRUSSENDORF conceded that he did not know if the 300 MW will
hold true in the future, but the designs and definitions by DOE
are for small reactors below 300 MW.
SENATOR MICCICHE remarked that the legislature could always
change the MW ceiling if there is a reason to do so.
3:37:27 PM
CHAIR BISHOP opened public testimony for SB 194.
3:37:37 PM
GEORGE ROE, Research Professor, Alaska Center of Energy and
Power (ACEP), University of Alaska Fairbanks, Seattle,
Washington, testified in support of SB 194. He said the
definition of a small reactor and the magnitude Mr. Grussendorf
described is very consistent with DOE. Analysis by ACEP
indicates that the scale of small reactor utilization might be
best matched for private, federal, and community applications in
the state for combinations of heat and power.
He detailed that the University of Alaska received state funding
to complete a study in 2010 on small modular reactor
capabilities that identified applications within the state that
could warrant future investigation. ACEP believes that an
updated study may be appropriate to refine and enhance the 2010
roadmap. An updated study would provide an assessment of current
technology as well as the evolution of the energy systems in
Alaska.
3:39:10 PM
SENATOR HOFFMAN pointed out that the committee discussed the
need for an updated study during the previous bill hearing. He
suggested that the committee send a letter outlining this need
to the capital budget chair for consideration. He said an
updated study would fit hand in glove with what U.S. Senator
Murkowski is doing on the national level.
SENATOR MICCICHE said the capacity or generating potential for
many Alaska communities would be much smaller than 300 MW. He
asked Mr. Roe if there is a break below 300 MW that would have a
different definition in the future.
MR. ROE agreed that most applications in Alaska would require a
smaller reactor. However, the 300 MW demarcation in the bill is
useful to avoid the need for continuous revisions. In many
situations, a reactor on the order of 3-10 MW would be
appropriate for Alaska Railbelt and U.S. Department of Defense
applications. Updated analysis would identify the best capacity
alignment for possible community analysis. Larger reactors that
require infield refueling could serve the Railbelt. However,
containerized microreactors with a 1-10 MW threshold could serve
as a complete system without infield fuel replacement for
possible community applications.
3:42:28 PM
SENATOR MICCICHE asked about FERC's position on the change to
the requirement for a legislative siting permit for a 300 MW
reactor and if there would continue to be a site requirement for
any sized nuclear reactor.
MR. ROE answered that he did not know, but ACEP was willing to
do research on the inquiry.
CHAIR BISHOP advised that the Senate Resources Standing
Committee was the next committee of referral and the question
could be answered there.
3:43:32 PM
CHAIR BISHOP removed his objection to the CS for SB 194 and
closed public testimony.
3:43:45 PM
SENATOR MICCICHE moved to report the CS for SB 194, work order
31-LS0878\M, from committee with individual recommendations and
attached zero fiscal note.
CHAIR BISHOP found no objection and CSSB 194(CRA) was reported
from the Senate Community and Regional Affairs Standing
Committee.
3:44:02 PM
At ease.
SB 218-ROAD SERVICE AREA CONSOLIDATION
3:46:10 PM
CHAIR BISHOP called the committee back to order and announced
the consideration of SENATE BILL NO. 218, "An Act relating to
road service area consolidation."
3:46:32 PM
RYNNIEVA MOSS, Staff, Senator John Coghill, Alaska State
Legislature, Juneau, Alaska, apologized that Senator Coghill,
bill sponsor, was attending another committee meeting.
She explained that SB 218 was introduced at the request of the
Fairbanks North Star Borough (FNSB) to assist the borough
assembly in figuring a timely way to help financially strapped
road service areas (RSAs) consolidate.
3:47:11 PM
AIMEE BUSHNELL, Staff, Senator John Coghill, Alaska State
Legislature, Juneau, Alaska, read the class boroughs with the
ability to consolidate two or more road service areas (RSAs) if
the boards representing those RSAs request consolidations and no
new parcels are added to the single new service area. A service
area is a taxing jurisdiction established at the request of the
voters within a geographical area to provide certain services
within their specific area. Voters establish their boundaries,
the maximum mill levy imposed on real property for the purpose
of road maintenance services, and a board that determines the
level of road maintenance services and directs following sponsor
statement for SB 218 [Original punctuation provided.]:
Senate Bill 218 provides second contractors to perform
these services. Members of the board are appointed by
the borough assembly.
Beginning in 1972 and in the years that followed, RSAs
benefited from state shared revenues (SSR) for local
road construction and improvements. SSR reductions
through the 1990s prompted RSAs to hold elections to
establish tax revenue caps to supplement the reduced
state funding for local roads. Existing RSAs also
resisted annexations of new parcels and roads to their
service areas leading to the formation of new RSAs. Of
the five second class boroughs in the State of Alaska
that have RSAs (Fairbanks, Mat-Su, Kenai, Kodiak, and
Ketchikan), the Fairbanks North Star Borough has, by
far, the most RSAs at 103.
While greater efficiencies and lower costs in
maintaining local roads could be achieved through
consolidating some RSAs, borough assemblies do not
have the power to adjust service area boundaries
without voter approval. Separate elections are
required for each of the RSAs subject to
consolidation, and these elections typically fail to
turn-out voters. Such consolidation would lead to
greater efficiency and reduced costs through economies
of scale and less contract administration by borough
administrators.
3:49:17 PM
CHAIR BISHOP opened invited testimony for SB 218.
3:49:26 PM
MICHAEL BREDLIE, Rural Services Manager, Division of Rural
Services, Department of Public Works, Fairbanks North Star
Borough, Fairbanks, Alaska, testified in support of SB 218. He
detailed that the division administers and helps manage the RSAs
throughout the FNSB. As a second-class borough, FNSB receives
its road construction and maintenance powers through RSAs. FNSB
currently has 103 separate RSAs that maintain a total of 497
miles of road.
He summarized the formation of RSAs by the FNSB as follows:
• First RSA established in 1965.
• Second RSA established in 1969.
• 1973-1979: 20 RSAs established.
• 1980s: 67 RSAs established.
• 1990s: 13 RSAs established.
• Final RSA established in 2002.
MR. BREDLIE noted that state-shared revenues for local road
construction, improvements, and maintenance in the 1970s was
$2,500 per mile and that became the majority of revenue that the
RSAs received. But the state-shared revenues declined to $1,400
per mile in the 1990s and ended altogether in 2004. This
prompted some RSAs to hold elections to establish a tax revenue
cap to supplement and ultimately replace the state-shared funds.
3:51:57 PM
MR. BREDLIE said RSA consolidation is a substantial process
under current law. Elections are required to consolidate two or
more service areas if voters reside in the affected RSAs. The
process requires holding an open house so residents can ask
questions and make comments and borough assembly approval of the
election ordinance for each RSA requesting consolidation. He
said holding an election for each RSA that needs consolidation
would be difficult at best and the costs would be substantial.
He detailed that FNSB currently has 13 contractors that hold
maintenance contracts for the 103 RSAs in the borough. Some
contractors only maintain 1 RSA while others maintain 10-20. RSA
consolidation would provide greater efficiencies and potentially
better prices for the contractors, reduce contract
administration, and increase RSA on-site presence by the
division to monitor road conditions.
MR. BREDLIE noted that RSA consolidation would mean a reduction
in available commissioner seats. Currently there are 273
commissioners in the 426 available seats, which is a 36 percent
vacancy rate. He concluded his testimony reiterating that SB 218
would greatly assist FNSB in RSA consolidation.
3:54:04 PM
CHAIR BISHOP asked him to repeat the commissioner vacancy rate
for the RSAs.
MR. BREDLIE restated that the RSAs have 273 commissioners out of
a possible 426 seats, a 36 percent vacancy rate.
CHAIR BISHOP said he fully understood the intent of the bill,
especially from a contracting standpoint. Having one contractor
rather than two contractors for adjoining RSAs would save money.
SENATOR GRAY-JACKSON asked if FNSB must fill the RSA commission
vacancies.
MR. BREDLIE explained that most RSA commissions have three
members plus one alternate. All RSAs have at least one
commissioner, most have two, and a few have a full commission.
He said FNSB has enough commissioners to run its RSAs and asking
three people to volunteer for small RSA commissions is difficult
to do.
SENATOR GRAY-JACKSON said she supports SB 218. She explained
that her question was due to her district in Anchorage having
limited RSAs.
SENATOR MICCICHE asked Mr. Bredlie if he envisioned consolidated
RSAs to continue as four-person boards.
MR. BREDLIE answered that the number of commissioners might
depend on the size of an RSA. Large RSAs might be a five-person
commission. For example, consolidating 10 smaller RSAs might
result in one 5-person commission that currently requires 30
commission members with 10 alternates.
3:57:18 PM
SENATOR SHOWER joined the committee meeting.
SENATOR MICCICHE asked Ms. Moss if the RSAs would have to be
abutting.
MS. MOSS answered no, just in close proximity. She related she
has been involved with a local RSA for 30 years and an adjoining
service area uses a different contractor. Both contractors are
located across town, so a consolidation in that circumstance
could result in cost savings.
She explained that the bill is written to protect RSAs that are
functioning very well. She detailed that the RSA she is involved
with expanded twice within the last 10 years which doubled the
road miles. This RSA has been able to save over $100,000 which
was used as a federal match to get the roads in the service area
resurfaced. She reiterated that the bill does not disturb RSAs
that are doing their job.
3:59:10 PM
MARNA SANFORD, Assembly Member, Fairbanks North Star Borough
Assembly, Fairbanks, Alaska, testified in support of SB 218. She
advised that she is the chair of the Assembly Road Service Area
Committee (ARSAC) that includes members from seven of the RSAs
within the FNSB.
MS. SANFORD explained that FNSB is seeking legislative guidance
due to extremely low voter turnout. If two boards agree to
consolidate and few people vote in the RSA election, one family
could potentially upset a consolidation for the betterment of a
larger area.
MS. SANFORD summarized that SB 218 gives boards and the people
working on the ground the ability to make consolidation
decisions and bring something forward to the FNSB assembly. RSA
consolidation is a Fairbanks issue and the bill is a great step
in the right direction. Should the legislation pass, ARSAC would
identify the best cases for consolidation to help streamline the
administration and costs for all RSAs.
CHAIR BISHOP asked what it costs to run an election.
MS. SANFORD replied she could not recall the cost of the last
election.
CHAIR BISHOP asked her to follow up with the information.
SENATOR SHOWER noted Ms. Sanford's statement that one family
could swing an election and pointed out that the republic
designed the electoral system to work where one person could
swing an election. He said that process encourages more people
to vote and that was a good thought. He said the legislature
should not create policy simply because a few people might swing
an election, a concept that he was sure Ms. Sanford did not mean
to support.
4:02:20 PM
SENATOR MICCICHE suggested that neighborhood-sized RSAs may be a
Fairbanks issue. He said getting people to apply for RSA boards
is always a problem but he has more to learn about the issue in
the Fairbanks area before coming to any conclusion.
4:02:57 PM
CHAIR BISHOP held SB 218 in committee for further consideration.
4:03:10 PM
There being no further business to come before the committee,
Chair Bishop adjourned the Senate Community and Regional Affairs
Standing Committee meeting at 4:03 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 194 Draft CS ver. M.pdf |
SCRA 3/10/2020 3:30:00 PM |
SB 194 |
| SB 194 Explanation of Changes ver A to M.pdf |
SCRA 3/10/2020 3:30:00 PM |
SB 194 |
| SB 194 Sponsor Statement.pdf |
SCRA 3/3/2020 3:30:00 PM SCRA 3/10/2020 3:30:00 PM |
SB 194 |
| SB 194 DRAFT Fiscal Note DEC-CO 03-02-2020.pdf |
SCRA 3/3/2020 3:30:00 PM SCRA 3/10/2020 3:30:00 PM |
SB 194 |
| SB 218 Sponsor Statement 3.2.2020.pdf |
SCRA 3/10/2020 3:30:00 PM SCRA 3/17/2020 3:30:00 PM |
SB 218 |
| SB 218 Map Fairbanks North Star Borough Service Areas 3.3.2020.pdf |
SCRA 3/10/2020 3:30:00 PM SCRA 3/17/2020 3:30:00 PM |
SB 218 |
| SB 218 Letter of Support Mayor Ward 3.3.2020.pdf |
SCRA 3/10/2020 3:30:00 PM SCRA 3/17/2020 3:30:00 PM |
SB 218 |
| SB 218 Draft Fiscal Note DCCED-DCRA- 03-06-20.pdf |
SCRA 3/10/2020 3:30:00 PM SCRA 3/17/2020 3:30:00 PM |
SB 218 |