HOUSE BILL NO. 358 "An Act relating to the renewable energy grant fund and recommendation program; and providing for an effective date." 10:27:15 AM LAIB ALLENSWORTH, STAFF, REPRESENTATIVE BRYCE EDGMON, thanked the committee for hearing the bill. He explained that the bill extended the renewable energy grant program by ten years. The program was established in 2008 and received a previous ten-year extension in 2012. Since its inception, the program had distributed over $275 million in grants and over $300 million in matching federal and local grants. He read the sectional analysis (copy on file): Sec 1. Amends Section 5, Ch. 31, SLA 2008, as previously amended, to extend the repeal date of the fund to June 30, 2033. Sec 2. Establishes an immediate effective date under AS 01.10.070(c). Co-Chair Merrick indicated there were two testifiers online. 10:28:57 AM CHRIS ROSE, EXECUTIVE DIRECTOR, RENEWABLE ENERGY ALASKA PROJECT, SUTTON (via teleconference), relayed that the Renewable Energy Alaska Project (REAP) was involved in the program's inception and strongly supported the bill. He explained that the program had particularly helped develop projects in rural communities in the state that suffered from high diesel fuel costs. It would be much smoother for REAP to develop grant proposals if the program was extended as soon as possible rather than putting it off for another year. T.W. PATCH, DIRECTOR OF PLANNING, ALASKA ENERGY AUTHORITY, ANCHORAGE (via teleconference), was available for questions and indicated that Mr. Curtis Thayer was available as well. 10:30:51 AM Co-Chair Merrick OPENED public testimony. Co-Chair Merrick CLOSED public testimony. 10:31:10 AM Representative LeBon asked Mr. Rose if Alaska gas was the most common fuel source in the conversion process from heating oil to other fuel sources. Mr. Rose responded that the type of projects mentioned by Representative LeBon had not been an emphasis for the grant fund in the past. There had been some focus on heating projects, but the projects had been mostly community-based. The program prioritized communities in rural Alaska that did not have access to natural gas. Representative LeBon understood that the focus of the program was renewable energy. He wondered if he could assume that the program covered changes like decreasing a community's reliance on diesel fuel in favor of wind turbines. Mr. Rose responded in the affirmative. In recent years there had also been discussion on generating electricity through renewable energy. There was also the opportunity for communities to consider heating projects that would allow them to move to biomass heating in order to reduce the reliance on heating oil. Technology had advanced significantly, and air source heat pumps were now viable alternatives for heating. He hoped that heat pump projects in rural Alaska could be grant-funded through the program. Representative LeBon understood that although natural gas would not be excluded from eligibility, it was not a common energy source alternative. Mr. Rose replied that Representative LeBon was correct. 10:34:19 AM Representative Carpenter wanted to know why both a renewable energy fund and a green bank were needed. Representative Wool indicated that the short answer was that one was a grant and one was a loan. Co-Chair Merrick would follow up to obtain more information. Co-Chair Merrick reviewed the amendment deadline. HB 358 was HEARD and HELD in committee for further consideration. 10:34:58 AM AT EASE 10:35:31 AM RECONVENED