CSHB 152(FIN)-ESTABLISH RENEWABLE ENERGY FUND/ACCOUNT  4:47:07 PM CHAIR HUGGINS announced CSHB 152(FIN) to be up for consideration. REPRESENTATIVE BILL THOMAS, sponsor of HB 152, said in 2003 the Alaska Task Force recommended that the state increase development of renewable resources. Further, with the high cost of fuel in Alaska it has been very difficult for rural Alaskans to prosper and many have to decide if they want to heat, have heat, fuel or health care. He said the time has come to seriously explore other renewable sources of energy such as wind, geothermal, solar and hydro. Many communities have already been researching ways to secure cleaner and more cost efficient energy and they need funding to help harness these renewable sources of power. REPRESENTATIVE THOMAS said that HB 152 establishes a renewable energy fund which will be administrated by the Alaska Energy Authority (AEA). AEA would take advice from an advisory committee with members appointed by the governor from various utilities, environmental businesses, and Native stakeholder groups. The fund will offer both loan and grant options for Alaskans to develop renewable energy projects throughout the state. 4:49:42 PM CHERISSE MILLETT, staff to Representative Harris, presented the sectional analysis. She highlighted that grants are eligible for new projects only and can use a renewable energy resource or natural gas. Natural gas is used as a last resort for those communities in rural Alaska that don't have renewable energy sources. Any natural gas project has to benefit a community with a population of 10,000 or less. She said that the loan fund is revolving so it doesn't deplete itself and the grant fund was designed as a percentage of market value making it sustainable once the money is appropriated. 4:52:48 PM PETER CRIMP, Alaska Energy Authority (AEA), said he was available to answer questions. 4:53:15 PM CAITLIN HIGGENS, Acting Executive Director, Alaska Conservation Alliance, strongly supported HB 152. She said, "Blessed with unparalleled renewable energy resources, Alaska has the opportunity to lead American and the world in the development of clean renewable energy resources...." 4:54:46 PM WILLIAM PUTNAM, Acting Forestry Director, Tanana Chiefs Conference, said the Conference is a non-profit Native corporation which provides a variety of services to about 40 villages scattered around Interior Alaska and as such its primary clients are the village and tribal governments. Many of the programs the Tanana Chiefs direct try to improve the economic and social sustainability of those communities. The increasing cost of using fossil fuels has made it imperative to develop renewable alternative resources for energy. He fully supported HB 152 saying that many of the villages lack to resources to pursue some of these options themselves and many of them are interested in bio-energy and bio-mass resource development in achieving self sufficiency. SARA FISHER-GOAD, Deputy Director of Operations, Alaska Energy Authority, said she had prepared an amendment. CHAIR HUGGINS moved to adopt Amendment 1 as follows: On page 1, line 11: delete the comma after "river." On page 3, line 9: insert "..., which shall be the fiduciary of the fund under AS 37.10.071." after "Revenue," (requested by the Department of Revenue) On page 3, lines 7 & 8, delete the first instance of "energy" and insert "electricity," and delete "run on" and insert "use hydrogen from" On page 3, lines 9 & 10: delete (D) in its entirety because it is covered in (E) On page 5, line 21: delete the comma after "river" 4:57:30 PM MS. MILLETT said that the changes in Amendment 1 were all minor. SENATOR STEVENS asked for the rationale used to make the eligibility for 10,000 people or less. 4:59:28 PM REPRESENTATIVE THOMAS explained that they followed the gas pipeline from Prudhoe Bay to Fairbanks, took a left and came down the Highway. There are no communities in between and he didn't want to encourage people to use natural gas since that is the last option. That area also has no river, no wind and no hydro energy. He wanted to keep some communities from using all the natural gas the state is trying to sell down south as well as encourage alternative energy sources. CHAIR HUGGINS found no further objections and Amendment 1 was adopted. 4:59:51 PM4:59:51 PM CHAIR HUGGINS asked if HB 152 had met any resistance. REPRESENTATIVE THOMAS responded that he found no resistance and has rather received compliments; he pointed out that the Denali Commission is also one of the designees. 5:00:54 PM SENATOR STEVENS moved to pass SCS HB 152(RES) with attached fiscal note and individual recommendations. There were no objections and it was so ordered.