Legislature(2009 - 2010)Tanana

05/27/2009 11:30 AM Senate RESOURCES


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12:16:29 PM Start
12:16:48 PM Public Hearing on Statewide Energy Plan
01:19:38 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
SENATE RESOURCES/ENERGY WORKING GROUP
Location: Tanana Community Center
Meeting from 11:30 a.m. - 1:00 p.m.
+ Public Hearing on Statewide Energy Plan TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                    TANANA COMMUNITY CENTER                                                                                   
                          May 27, 2009                                                                                          
                           12:16 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                              
 Senator Lesil McGuire, Co-Chair                                                                                                
 Senator Bill Wielechowski, Co-Chair                                                                                            
 Senator Hollis French                                                                                                          
 Senator Thomas Wagoner                                                                                                         
 Senator Gary Stevens                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
 Senator Charlie Huggins, Vice Chair                                                                                            
 Senator Bert Stedman                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Public Hearing on State Energy Plan                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JULIE ROBERTS                                                                                                                   
Tanana resident                                                                                                                 
POSITION STATEMENT:  Testified that  Tanana had been  in disarray                                                             
for  quite  a  few  weeks   because  of  the  floods  and  needed                                                               
assistance.  Supported a  road connecting  Tanana  to Manley  Hot                                                               
Springs to bring the cost of transporting goods down.                                                                           
                                                                                                                                
MIKE ANDON                                                                                                                      
Tanana resident                                                                                                                 
POSITION STATEMENT: Thanked everyone for the great job they have                                                              
done with their situation.                                                                                                      
                                                                                                                                
FAITH PETERS                                                                                                                    
Tanana resident                                                                                                                 
POSITION STATEMENT: Said she survived "Flood 2009 Tanana,                                                                     
Alaska," but she lost her home and business and the whole                                                                       
community needed help before winter sets in.                                                                                    
                                                                                                                                
DON ELLER                                                                                                                       
Tanana resident                                                                                                                 
POSITION  STATEMENT:  Said  they  don't  need  to  think  of  big                                                             
projects, but  just a gravel strip  to the Yukon River;  it could                                                               
be a community project.                                                                                                         
                                                                                                                                
BEAR KETSLER                                                                                                                    
Tanana resident                                                                                                                 
POSITION STATEMENT: Asked them to  continue appropriations to the                                                             
Alaska Energy Authority (AEA) and consider feed-in tariffs.                                                                     
                                                                                                                                
KATHLEEN PETERSURAY, Environmental Specialist                                                                                   
Tanana Tribal Council                                                                                                           
POSITION  STATEMENT: Said  their  community needs  help and  they                                                             
have  only a  short  time  to get  houses  livable before  winter                                                               
comes. Supported the weatherization program.                                                                                    
                                                                                                                                
DENNIS EDWIN                                                                                                                    
Tanana resident                                                                                                                 
POSITION STATEMENT:  Reiterated that they need  efficient heating                                                             
systems for their homes before winter.                                                                                          
                                                                                                                                
CURTIS SUMMER, Chairman                                                                                                         
Tanana Tribal Council                                                                                                           
POSITION STATEMENT: They aren't asking  for handouts; they can do                                                             
the job themselves, but money will  run out soon, and they need a                                                               
little more.                                                                                                                    
                                                                                                                                
                                                                                                                                
CHARLIE CAMPBELL                                                                                                                
Tanana City Council                                                                                                             
POSITION  STATEMENT: Thanked  them for  coming out  to Tanana.  A                                                             
wood fired  boiler for  the school  would help  tremendously, but                                                               
coming up  with the local  match is always a  problem, especially                                                               
right now.  If they  could make  that into  an R&D  project, they                                                               
have the expertise and man power and are ready to go.                                                                           
                                                                                                                                
JOSEPHINE ROBERTS                                                                                                               
Tanana resident                                                                                                                 
POSITION STATEMENT: Said she is the oldest person in Tanana.                                                                  
                                                                                                                                
CHRISTINE EARHEART                                                                                                              
Tanana resident                                                                                                                 
POSITION  STATEMENT:  Said  Power  Cost  Equalization  (PCE)  and                                                             
Energy Assistance Programs  are crucial to survival  of people in                                                               
the village.                                                                                                                    
                                                                                                                                
CATHY ROBERTS                                                                                                                   
Circle resident                                                                                                                 
POSITION STATEMENT: Said  she moved to town after  the flood. All                                                             
the outhouses went  down the river; sewer is a  problem. The cost                                                               
of  freight is  out of  sight. She  is okay,  but the  elders and                                                               
people who are alone she worries about.                                                                                         
                                                                                                                                
GERALD MCNICHOLAI                                                                                                               
Tanana resident                                                                                                                 
POSITION STATEMENT: Said some of  them lost not only their homes,                                                             
but all  their material things as  well - tools and  motors. Some                                                               
people have  no other choice,  but to rely on  energy assistance.                                                               
They need  a little assistance, but  they can work hard  and know                                                               
how to rebuild on their own.                                                                                                    
                                                                                                                                
GRAY WOODS                                                                                                                      
Tanana resident                                                                                                                 
POSITION  STATEMENT:  Said  the  people of  Tanana  know  how  to                                                             
rebuild, but they need a little help to get started.                                                                            
                                                                                                                                
JOHN BANYA, Superintendent and Principal                                                                                        
Tanana School District                                                                                                          
POSITION  STATEMENT: Said  Tanana  needs  energy assistance,  but                                                             
they are hard workers and smart.                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
12:16:29 PM                                                                                                                   
                                                                                                                                
CO-CHAIR  LESIL  MCGUIRE  called the  Senate  Resources  Standing                                                             
Committee to order at 12:16 p.m.                                                                                                
                                                                                                                                
^Public Hearing on Statewide Energy Plan                                                                                    
              Public Hearing on State Energy Plan                                                                           
                                                                                                                              
CO-CHAIR  MCGUIRE announced  the  public hearing  on the  state's                                                               
energy plan would be the order of business.                                                                                     
                                                                                                                                
12:16:48 PM                                                                                                                   
JULIE  ROBERTS testified  that Tanana  had been  in disarray  for                                                               
quite a few weeks because of  the floods. With the destruction of                                                               
40 homes,  this time, the community  needs to rebuild them  to be                                                               
as  energy efficient  as possible.  She said  gasoline is  almost                                                               
$6/gallon.  Her  community  wanted  road  access  to  Manley  Hot                                                               
Springs because most  agree that road connection  is important to                                                               
reduce the cost of living in Tanana.                                                                                            
                                                                                                                                
MS. ROBERTS  said they get  quite a  bit of sun  February through                                                               
September,  so solar  energy is  a consideration  for power.  She                                                               
looked forward to getting help from the state.                                                                                  
                                                                                                                                
CO-CHAIR MCGUIRE  said they had  observed some  innovation today.                                                               
"This community  has taken  matters into their  own hands  and is                                                               
leading the way."  People have come from as far  away as Korea to                                                               
look at their boilers to see  how they are burning wood and their                                                               
power plant. They are inspirational.                                                                                            
                                                                                                                                
SENATOR WIELECHOWSKI asked how much it  costs to heat a house and                                                               
provide electricity in Tanana.                                                                                                  
                                                                                                                                
MS. ROBERTS replied for her  and her husband electricity is about                                                               
$100/mo., and they  burn 5-6 cords of wood for  heat. Her part of                                                               
the community doesn't have running  water or sewer or their costs                                                               
would have been much higher. The  other half of the community has                                                               
both.                                                                                                                           
                                                                                                                                
12:23:24 PM                                                                                                                   
SENATOR  WAGONER  asked how  many  miles  a  road to  Manley  Hot                                                               
Springs would be.                                                                                                               
                                                                                                                                
MS. ROBERTS  replied about 40 miles  of road would connect  to an                                                               
existing dirt road. Manley Hot Springs is 80 miles from Tanana.                                                                 
                                                                                                                                
12:24:04 PM                                                                                                                   
SENATOR   FRENCH   asked  if   they   had   taken  advantage   of                                                               
weatherization money to make homes more energy efficient.                                                                       
                                                                                                                                
MS. ROBERTS replied  yes; quite a few had taken  advantage of it.                                                               
The windows are nice, but some  of those homes have been flooded.                                                               
The insulation is gone.                                                                                                         
                                                                                                                                
12:24:46 PM                                                                                                                   
MIKE  ANDON thanked  everyone for  the great  job they  have done                                                               
with their  situation. They have  seen the energy  water produces                                                               
if they could  figure out how to harness it.  The destroyed homes                                                               
were  not constructed  with energy  efficiency in  mind. He  said                                                               
they had been  getting "adequate" help as defined  by the Knowles                                                               
administration at just above poverty.                                                                                           
                                                                                                                                
12:26:43 PM                                                                                                                   
FAITH PETERS said  she survived "Flood 2009  Tanana, Alaska," but                                                               
she lost  her home and business.  When she had them,  it cost her                                                               
about $400/mo  for power and  phone. It used  to cost $500  or 40                                                               
cents/lb. to  have products flown  into her store.  Her insurance                                                               
company cannot  help her  with repairs  because it  doesn't cover                                                               
floods. A  road from Manley to  Tanana would save energy  for her                                                               
community because  she runs her  products from Manley by  boat, a                                                               
72-mile trip at $5-$6/gallon for gas.                                                                                           
                                                                                                                                
Sun panels for summer would cut  the cost of energy; windmills at                                                               
Squaw Crossing would generate more  energy for Tanana. A new wood                                                               
burner in  their school would make  energy costs go down  so that                                                               
money could  be put  into education  supplies and  teachers. They                                                               
have three months before winter comes to have everything.                                                                       
                                                                                                                                
12:31:15 PM                                                                                                                   
DON ELLER  said they  don't need  to think  of big  projects, but                                                               
just a gravel  strip to the Yukon River; it  could be a community                                                               
project. Let the local boys be  trained by Av Tech. They are only                                                               
16 miles  from where the road  ends. "It's doable." He  said that                                                               
the homes the government built  were not energy efficient at all.                                                               
For instance,  the fixtures they  put in  required 5 or  6 bulbs.                                                               
"The cheapest energy is the energy you don't use."                                                                              
                                                                                                                                
12:34:06 PM                                                                                                                   
BEAR KETSLER asked them to  continue appropriations to the Alaska                                                               
Energy  Authority (AEA).  He said  the biomass  project could  be                                                               
replicated easily, and  they would like to  help facilitate that.                                                               
It really  isn't rocket science.  He urged funding  small amounts                                                               
of money to  "R&D stuff" like what Tano Power  is doing for their                                                               
hydro-kinetic project.                                                                                                          
                                                                                                                                
He  said  the  community  has  an energy  plan,  which  has  been                                                               
instrumental  in attracting  dollars.  The  next public  facility                                                               
project is the school which is  the backbone of the community. It                                                               
would take three boiler systems like  they just saw to reduce the                                                               
cost of  heating the school. That  would free funds up  for other                                                               
community improvements.                                                                                                         
                                                                                                                                
MR.  KETSLER touched  on  the  idea of  a  feed-in tariff  saying                                                               
"Saved By the Sun"  is a DVD about solar power,  but it is really                                                               
a story about  how Germany was able to overcome  its high cost of                                                               
energy using a feed-in tariff.                                                                                                  
                                                                                                                                
CO-CHAIR MCGUIRE said  that the two committees  have been looking                                                               
at the concept of net metering  where energy can be put back into                                                               
the grid.                                                                                                                       
                                                                                                                                
12:40:15 PM                                                                                                                   
KATHLEEN  PETERSURAY,  Environmental  Specialist,  Tanana  Tribal                                                               
Council, said  their community  needs help and  they have  only a                                                               
short time to get houses  livable before winter comes. Tanana was                                                               
found ineligible for the weatherization  last year; but after the                                                               
flood along  the Yukon  River, they  should be  put on  a special                                                               
list.  They had  a weatherization  program,  but it  was for  low                                                               
income people, which is why many did not qualify for it.                                                                        
                                                                                                                                
They have  collected data  that indicates  they have  enough wind                                                               
energy for individual  homes to use. Since all of  the homes have                                                               
to  be rebuilt  or renovated,  they are  looking for  them to  be                                                               
rebuilt energy  efficient. The homes  are huge and most  have old                                                               
and inefficient  furnaces. When  the price of  gas goes  down for                                                               
"your" cities, the price stays the same in Tanana.                                                                              
                                                                                                                                
MS. PETERSURAY  stated that they will  be down to 37  children in                                                               
their school  this year; if  they lose any more,  their community                                                               
will die.  They need  to cut  energy costs  for the  school. They                                                               
have a dream of having solar  panels for every home; it's doable,                                                               
but they cost  a lot. She even  uses them even at  her fish camp.                                                               
She thanked them for coming to Tanana.                                                                                          
                                                                                                                                
12:46:02 PM                                                                                                                   
DENNIS EDWIN reiterated that they  need efficient heating systems                                                               
for their  homes. He said  even if you  have 500 gallons  of oil,                                                               
without any support under it,  the tank starts sinking. The state                                                               
won't approve putting  wood under them. He is  focused on fishing                                                               
right now,  because that is  his living, but the  community needs                                                               
help before winter.                                                                                                             
                                                                                                                                
12:50:41 PM                                                                                                                   
CO-CHAIR  MCGUIRE said  the Governor  had  applied for  emergency                                                               
funds and the  legislature will do what it can  to get them their                                                               
supplies.                                                                                                                       
                                                                                                                                
12:51:23 PM                                                                                                                   
CURTIS SUMMER, Chairman, Tanana Tribal  Council, said he lived at                                                               
Mission  Hill that  didn't get  flooded.  They are  off the  road                                                               
system  and gas  is  sky-high.  They still  have  to worry  about                                                               
fishing, hunting  and getting wood in  a few short months.  He is                                                               
proud of  Tanana for the  way everybody  pitched in to  clean up.                                                               
The people of Tanana are  hard-working. They don't want people to                                                               
come  in and  tell  them what  to  do -  because  they have  hard                                                               
thinking people, too.                                                                                                           
                                                                                                                                
The HUD  homes that were flooded  were put together by  "a family                                                               
operation"  that owned  all the  construction  businesses in  the                                                               
early  80s.  The  houses  were not  energy  efficient.  The  heat                                                               
ducting from the furnaces have  to be decontaminated because they                                                               
were contaminated  by flooding waters.  All the walls  inside the                                                               
homes were taken  apart because black mold  was already starting.                                                               
They aren't asking for handouts;  they can do the job themselves.                                                               
Money will run out soon, but people will help each other.                                                                       
                                                                                                                                
12:55:36 PM                                                                                                                   
CHARLIE CAMPBELL,  Tanana City Council,  thanked them  for coming                                                               
out  to Tanana.  He was  impressed with  how well  the flood  was                                                               
managed;  people really  pulled together  and the  Tribal Council                                                               
got people pointed in the  right direction. They are hard working                                                               
and innovative. They  have seen the Laundromat  with wood boilers                                                               
and  solar  panels.  Tanana  is  an  ideal  place  for  R&D;  the                                                               
expertise  is   already  in  place.   Keep  that  in   mind  when                                                               
considering funding.                                                                                                            
                                                                                                                                
The cost of fuel for the  school was $70,000 this year; last year                                                               
it  was a  little over  $100,000. The  Tanana School  is the  one                                                               
rural school where  the kids have made  adequate yearly progress.                                                               
This year  in order to  graduate the  seniors the parents  had to                                                               
get together  and do bake sales;  they are trying to  wring every                                                               
last money out of the locals.  A wood fired boiler for the school                                                               
would help  tremendously, but coming  up with the local  match is                                                               
always a problem,  especially right now. If they  could make that                                                               
into an R&D project, they are ready to go.                                                                                      
                                                                                                                                
12:59:49 PM                                                                                                                   
JOSEPHINE ROBERTS  said she is  the oldest person in  Tanana; she                                                               
was 18  years old  in 1940 when  she came to  work in  the Tanana                                                               
hospital  that is  going to  be torn  down this  summer. For  the                                                               
first time  this year  she has  running water  and she  said, "It                                                               
feels good."  It's kind of  expensive, but she  has a way  to pay                                                               
for it. But her power bill  was $300 this year, which she thought                                                               
was high. "It's going  to be tough for a lot  of them. I've known                                                               
them all my life. Most of them were born at the old hospital."                                                                  
                                                                                                                                
1:05:08 PM                                                                                                                    
CHRISTINE EARHEART said Power Cost  Equalization (PCE) and Energy                                                               
Assistance  Programs are  crucial to  survival of  people in  the                                                               
village. Without them  people would freeze. It costs  her and her                                                               
family of seven about $750/mo for  food and supplies; she pays 45                                                               
percent on top of that to  get it delivered. She hoped they could                                                               
do something about that.                                                                                                        
                                                                                                                                
The original count is done at  the beginning of the year; so when                                                               
students return from going to  school outside of Alaska the money                                                               
doesn't follow  them back to the  village. They don't have  a hot                                                               
lunch program.  Half the  community has water  and sewer  and the                                                               
other half  doesn't. Funding  ran out. She  asked how  they would                                                               
you feel  if half  their town  was hooked up  and the  other half                                                               
wasn't.                                                                                                                         
                                                                                                                                
1:08:21 PM                                                                                                                    
CATHY ROBERTS,  Circle, said she  moved to town since  the flood.                                                               
It is  good to take  a shower and  use an in-house  bathroom. All                                                               
the outhouses went  down the river; sewer is a  problem. The cost                                                               
of  freight is  out of  sight. She  is okay,  but the  elders and                                                               
people who are alone she worries about.                                                                                         
                                                                                                                                
1:09:54 PM                                                                                                                    
GERALD MCNICHOLAI said  some them lost not only  their homes, but                                                               
all of  their material things  as well  - tools and  motors. Some                                                               
people have  no other choice,  but to rely on  energy assistance.                                                               
The cost of living is three  or four times more expensive than in                                                               
Fairbanks.    "Any   help    these   people    get   is    really                                                               
appreciated....The loss is tremendous."                                                                                         
                                                                                                                                
1:12:19 PM                                                                                                                    
GRAY WOODS  said the  people of  Tanana know  how to  rebuild. He                                                               
said he  and his wife lost  their home. He just  wants insulation                                                               
and his electricity fixed, so they can move back in.                                                                            
                                                                                                                                
1:14:29 PM                                                                                                                    
JOHN   BANYA,  Superintendent   and   Principal,  Tanana   School                                                               
District, said this was his first  year in Tanana, and that it is                                                               
unique  in many  ways. He  has spent  25 years  working in  rural                                                               
Alaska, and academically Tanana is  the best school he has worked                                                               
in. It generally  makes AYP, and the high  school students almost                                                               
all  pass all  the  tests they  have to  graduate.  In the  lower                                                               
grades the students are academically sound, also.                                                                               
                                                                                                                                
Tanana has  some financial problems,  he said,  and unfortunately                                                               
it  has received  a  lot  of negative  publicity  this year.  The                                                               
school needed money to make up  for past mistakes even before the                                                               
flood  came  along and  now  people  really need  assistance.  He                                                               
doesn't like  to ask for  help personally;  he likes to  make his                                                               
own way. But  in this case, help is necessary.  He said last year                                                               
school fuel  cost $105,000.  With the  fluctuation in  price this                                                               
year, it will  be less than half  of that. Who know  what it will                                                               
be next year.  During the winter, their power  bills were $14,000                                                               
and  $15,000/mo; in  warmer months  it is  $5,000-7,000/mo. Their                                                               
total  budget is  only  a little  bit over  $1  million, yet  the                                                               
energy, maintenance,  and personnel  costs eat  up half  of that.                                                               
Student activities wouldn't even take  place if it wasn't for the                                                               
parents.   There   is  a   great   spirit   of  cooperation   and                                                               
independence.                                                                                                                   
                                                                                                                                
1:19:38 PM                                                                                                                    
CO-CHAIR MCGUIRE  thanked everyone  for their testimony  and said                                                               
they would  take their thoughts back  with them and follow  up on                                                               
the help that is coming out  before the winter. An important part                                                               
of  the  cost savings  is  finding  low cost  sustainable  energy                                                               
sources.  There being  no  further business  to  come before  the                                                               
committee, she adjourned the meeting at 1:19 p.m.                                                                               
                                                                                                                                
                                                                                                                                

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