HJR 23-HYDROELECTRIC POWER; RENEWABLE ENERGY  3:51:40 PM CO-CHAIR FOSTER announced that the next order of business would be HOUSE JOINT RESOLUTION NO. 23, Urging the United States Congress to classify hydroelectric power as a renewable and alternative energy source. 3:51:48 PM DIRK CRAFT, Staff, Representative Lance Pruitt and the House Special Committee on Energy, introduced HJR 23 on behalf of the House Special Committee on Energy. Mr. Craft advised that the U.S. has long used targeted tax credit programs to incentivize investment and innovation in the energy sector, both for fossil and renewable resources; in fact, Investment and Production Tax Credits for renewable energy have been highly successful. The hydropower industry is creating jobs and affordable and renewable power, and private investment has often been driven by smart tax policies. In Alaska, hydroelectric (hydro) power has the potential to replace diesel-generated power with little to no environmental impact, but receives only one-half of the tax credits available to other renewable energy sources. He pointed out that there are almost 50 hydropower projects in Alaska that supply 24 percent of Alaska's electricity, large and small, and there are many potential sites for the development of future hydropower. Provided in the committee packet was a copy of U.S. Senator Lisa Murkowski's proposed federal legislation seeking to incentivize further production of hydropower resources by classifying hydro power as a renewable source of energy. 3:54:06 PM REPRESENTATIVE SADDLER called attention to page 2, line 9, of the resolution, and asked what federal renewable and alternative energy programs do not classify hydro power as a renewable or alternative energy source. MR. CRAFT said he did not know; however, the resolution is focused on production tax credit incentives. 3:55:06 PM HAP SYMMONDS, Chair, Board of Directors, Cordova Electric Cooperative, Inc., in response to Representative Saddler's question, noted that federal laws dealing with not classifying hydro as a renewable resource are related to financing; in fact, cooperatives in Alaska that are building hydropower projects are not eligible for federal financing as green energy or renewable projects. Mr. Symmonds relayed his efforts - beginning 15 years ago - to rectify this situation, and said he was very supportive of Senator Murkowski's bill and HJR 23. 3:57:23 PM REPRESENTATIVE TUCK moved to adopt Conceptual Amendment 1. CO-CHAIR FOSTER objected for discussion purposes. REPRESENTATIVE TUCK explained that unlike Washington and Oregon, Alaska is unique in its hydro resources. His intent is to reclassify hydro plants as renewable - without making Alaska an exception - by language stating that hydro can be reclassified as long as there is no economic competition for the water resource with municipalities, agriculture, or others. Representative Tuck stressed that the language should help all hydro projects in the U.S., yet allay the concerns about hydro that do not apply to Alaska. 3:58:59 PM REPRESENTATIVE SADDLER asked for the proposed language. REPRESENTATIVE TUCK proposed the following: On page 2, line 17, after "alternative energy source" add ", as long as there is no economic competition for the water resource," 3:59:35 PM REPRESENTATIVE SADDLER expressed his hesitation to condition the resolution and thereby raise the test of applicability. CO-CHAIR PRUITT wished to be line with the intent of Senator Murkowski's bill and noted that her bill did not include this wording. REPRESENTATIVE PETERSEN conversed with U.S. Senator Mark Begich, who said the U.S. Senate Committee on Energy and Natural Resources is hoping to include this definition in a future bill. 4:02:20 PM The committee took a brief at-ease. REPRESENTATIVE TUCK clarified that the conceptual amendment would have language to put a condition on hydro to address the concerns of the rest of the nation about hydro that are not shared by Alaska. The condition would help Alaska - and some other communities throughout the nation - by showing that there are places where there is no economic competition for water resources. 4:05:15 PM [HJR 23 was heard and held for further testimony.] 4:05:36 PM