SB 33-RENEWABLE ENERGY GRANT FUND  3:31:02 PM CO-CHAIR BISHOP announced the consideration of SENATE BILL NO. 33 "An Act relating to the renewable energy grant fund and recommendation program; and providing for an effective date." 3:31:29 PM SENATOR JAMES KAUFMAN, District F, speaking as sponsor of SB 33, introduced the legislation speaking to the following sponsor statement: SB 33 extends the sunset date of the Renewable Energy Grant Fund and Recommendation Program to June 30, 2033. The Renewable Energy Fund (REF) program was originally established in 2008 with the passage of House Bill 152 and later received a ten-year extension in 2012, in both cases receiving unanimous vote in the legislature. The REF is managed by the Alaska Energy Authority in coordination with a nine member Renewable Energy Fund Advisory Committee. Since its inception, the Renewable Energy Fund has distributed over $300 million dollars in grant funds for qualifying and competitively selected renewable energy projects across the state. These REF grants have been supplemented by both federal and local funding to the tune of hundreds of millions of dollars. These combined funds help to stabilize and reduce energy costs for consumers by supporting renewable energy projects in both rural and urban communities across Alaska. As technology has improved and the available renewable energy sources have expanded, so too has the number of proposed projects. In Round 14, 39 applications from around the state were submitted and 27 were recommended to receive funding. Thirty-one applications were submitted for Round 15, which closed in December 2022. As energy prices climb, it is important to take advantage of all alternative sources of energy and heat, especially in our most vulnerable communities. The Renewable Energy Grant Fund is an important tool which supports Alaskan communities meet their energy needs. SB 33 will extend the Renewable Energy Grant Fund for a further 10 years, supporting energy independence in more of Alaska's communities. 3:32:12 PM SENATOR KAWASAKI joined the committee. 3:34:25 PM SENATOR CLAMAN noted that Legislative Audit didn't review the program this year. CO-CHAIR BISHOP responded the audit would be presented in Senate Finance. 3:34:57 PM EMMA TORKELSON, Staff, Senator James Kaufman, Alaska State Legislature, Juneau, Alaska, presented the sectional analysis for SB 33 on behalf of the sponsor. 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. Makes the sunset extension retroactive to June 30, 2023 if the bill takes effect after the Fund sunsets on that date. Sec 3. Establishes an immediate effective date under AS 01.10.070(c). CO-CHAIR BISHOP turned to invited testimony. 3:35:51 PM CURTIS THAYER, Executive Director, Alaska Energy Authority, Anchorage, Alaska, stated that the legislature has appropriated more than $300 million since the inception of the Renewable Energy Grand Fund in 2008. Ninety programs currently are in development, 44 of which are new in the last four years. Legislative funding for these new programs was $4.7 million and $15 million. The previous estimate that the program has displaced 30 million gallons of diesel is under review by an independent economist and the new number will be shared with the legislature when it's available. Of the $300 million in funding, 85 percent has gone to rural Alaska and 15 percent to the Railbelt. Increasingly, the focus has shifted to wind and secondarily to solar and hydro. He highlighted that power for Prince of Wales is over 90 percent renewable. Importantly, the feasibility stage determines whether a project is viable. After that the project receives independent, state, or federal funding that take it to the next level. MR. THAYER reported that application round 15 attracted 33 applicants who were vying for $31 million. The next step is to do an economic analysis and feasibility study of those projects to narrow the field to fit with the available funds. He said this program has been very successful and extending it another 10 years would be very beneficial. The bill that was considered last year didn't make it through the process but it had no opposition. SENATOR KAWASAKI requested an explanation of the evaluation process and stages to qualify an application that result in 85 percent of the REF funding going to rural areas and just 15 percent to the Railbelt. 3:39:33 PM CONNER ERICKSON, Planning Manager, Renewable Energy Fund (REF) program, Alaska Energy Authority, Anchorage, Alaska, stated that there is a four-step evaluation process, the first of which is an eligibility review of both the applicant and the project. The second stage is a more thorough review of the economic, financial, and technical feasibility of the project. The third stage is to rank the applications based on the scoring that's part of the state's due process, the matching funds that would be contributed, and other criteria. The fourth stage is to weight the projects to ensure the statutorily required balance between each of the energy ratings. He noted that all the projects were funded in the last two application rounds, but that was really subject to the available funding. 3:41:25 PM SENATOR KAWASAKI reiterated that it seemed that rural projects score higher than those on the Railbelt. He asked if it was because the stage three ranking gives more points to rural areas because the cost of energy is so much higher compared to the Railbelt, or something else. MR. ERICKSON replied that it depends on who applies and it just so happens that for the last two application rounds there were many more applicants from rural areas than the Railbelt. He acknowledged that a cost of energy score is attributed to each application in stage three and more points are given to applications with higher energy costs. 3:43:02 PM CO-CHAIR GIESSEL highlighted that the bill packet provides the statutory guidance for each stage of the process and it was likely posted on BASIS as well. CO-CHAIR BISHOP asked the sponsor if he had anything to add. SENATOR KAUFMAN thanked the committee for hearing the bill and for clarifying that the backup material included information about the statutory process. 3:44:16 PM CO-CHAIR BISHOP held SB 33 in committee.