ALASKA STATE LEGISLATURE  HOUSE SPECIAL COMMITTEE ON ENERGY  April 29, 2025 1:04 p.m. MEMBERS PRESENT Representative Ky Holland, Co-Chair Representative Donna Mears, Co-Chair Representative Bryce Edgmon Representative Cathy Tilton Representative George Rauscher Representative Mia Costello MEMBERS ABSENT  Representative Chuck Kopp COMMITTEE CALENDAR  HOUSE BILL NO. 196 "An Act relating to carbon offset revenue; and relating to the renewable energy grant fund." - HEARD & HELD PREVIOUS COMMITTEE ACTION  BILL: HB 196 SHORT TITLE: RENEWABLE ENERGY GRANT FUND SPONSOR(s): REPRESENTATIVE(s) BURKE 04/15/25 (H) READ THE FIRST TIME - REFERRALS 04/15/25 (H) ENE, FIN 04/24/25 (H) ENE AT 1:00 PM GRUENBERG 120 04/24/25 (H) Scheduled but Not Heard 04/29/25 (H) ENE AT 1:00 PM GRUENBERG 120 WITNESS REGISTER REPRESSENTATIVE ROBYN BURKE Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, presented HB 196 to the committee. CALVIN ZUELOW, Staff Representative Robyn Burke Alaska State Legislature Juneau, Alaska POSITION STATEMENT: On behalf of Representative Burke, prime sponsor, presented HB 196 to the committee. TREVOR FULTON, Manager Carbon Offset Program Department of Natural Resources Anchorage, Alaska POSITION STATEMENT: Answered committee questions on HB 196. CURTIS THAYER, Executive Director Alaska Energy Authority Anchorage, Alaska POSITION STATEMENT: Answered committee questions on HB 196. ACTION NARRATIVE 1:04:06 PM CO-CHAIR DONNA MEARS called the House Special Committee on Energy meeting to order at 1:04 p.m. Representatives Holland, Mears, Tilton, Rauscher, and Costello were present at the call to order. Representative Edgmon arrived as the meeting was in progress. HB 196-RENEWABLE ENERGY GRANT FUND  1:04:47 PM CO-CHAIR MEARS announced that the only order of business would be HOUSE BILL NO. 196, "An Act relating to carbon offset revenue; and relating to the renewable energy grant fund." 1:05:09 PM REPRESSENTATIVE ROBYN BURKE, Alaska State Legislature, as prime sponsor, presented HB 196 to the committee. She gave a broad overview of the intent of the proposed legislation and introduced her staff member to read through the sectional analysis to HB 196. 1:06:55 PM CALVIN ZUELOW, Staff, Representative Robyn Burke, Alaska State Legislature, on behalf of Representative Burke, prime sponsor, presented HB 196 to the committee. He read the Sectional Analysis to HB 196 [included in the committee packet] which read as follows [original punctuation provided]: Section 1: Amends AS 38.95.430, created by Senate Bill 48 passed by the 33rd Legislature, to make carbon offset revenue deposited in the Renewable Energy Grant Fund subject to appropriation. Currently, 20 percent of carbon offset revenue is deposited into the Renewable Energy Grant Fund automatically. The 20 percent reservation will still exist in statute under this bill. Section 2: Adds language clarifying that the purpose of the Renewable Energy Grant Fund is to provide affordable energy to all communities in Alaska. Section 3: Amends AS 43.45.045(b) to flip the way the Renewable Energy Grant Fund works. Instead of a fund requiring appropriations out of the fund, as it exists in current law, the new language would require appropriations into the fund. Section 4: Amends AS 43.45.045(d) to reflect changes made in Section 3 of the bill, requiring the Alaska Energy Authority (AEA), with input still required from the Renewable Energy Fund Advisory Committee (REFAC) and the Department of Natural Resources, to create a methodology for reviewing and making determinations on grant applications for renewable energy projects. AEA will be required to annually report to the Legislature with explanations of their decisions to approve or deny grants. Section 4 additionally requires the AEA to provide communities with populations smaller than 2,000 technical assistance with grant preparation, and to annually solicit and review grant applications to the REF. 1:09:02 PM CO-CHAIR HOLLAND asked for further information regarding the 20 percent figure noted in HB 196. 1:10:13 PM TREVOR FULTON, Manager, Carbon Offset Program, Department of Natural Resources, answered committee questions on HB 196. He explained a brief history of the carbon offset program in the state of Alaska and detailed the required pathways for a program like it to function. He said that the initial project that was completed under the previous piece of legislation concerning renewable energy grant funds was located in the Tanana Valley. 1:12:18 PM CO-CHAIR MEARS asked if the proposed legislation was concerned with the Carbon Offset Program. MR. FULTON answered that HB 196 was not concerned with the Carbon Offset Program. 1:13:47 PM CO-CHAIR HOLLAND asked about the cost magnitude of the proposed legislation. MR. FULTON answered that the estimated cost from a study completed a few years prior was approximately $80 million in revenue from three pilot projects. 1:15:55 PM REPRESENTATIVE RAUSCHER asked about the mathematics surrounding the proposed legislation. 1:17:15 PM CO-CHAIR MEARS said that the issue before the committee was the renewable energy round 17 grant fund list and said that the $21 million dollar figure he referred to was for a project on that list. 1:19:29 PM REPRESENTATIVE BURKE added that the Renewable Fund Advisory Committee (RFAC) did not have a current chair and said that it was the goal of the proposed legislation to assign a member of that committee as chair with the power to call a meeting. 1:20:59 PM REPRESENTATIVE COSTELLO asked if HB 196 could remove the power of the Alaska State Legislature (ASL) to appropriate funds. REPRESENTATIVE BURKE opined that the ASL would still be able to appropriate funds on the "front end." 1:23:10 PM REPRESENTATIVE COSTELLO asked if members of the ASL that sat on the RFAC could have more control over who provided the funding to various projects. 1:24:01 PM REPRESENTATIVE BURKE said that it was not the intent of the proposed legislation to allow for more control for members of the RFAC to make appropriations. 1:24:43 PM CO-CHAIR HOLLAND asked for clarification regarding the language on Page 2, line 28 of HB 196 1:25:47 PM REPRESENTATIVE BURKE explained that the intent of HB 196 was for its benefits to be given to all communities in Alaska. She said that she wanted to ensure that smaller communities with less administrative resources could follow through with the creation of a Renewable Fund Portfolio (RFP). 1:28:34 PM CO-CHAIR MEARS noted to the committee that Curtis Thayer of the Alaska Energy Authority (AEA) was available to answer questions. 1:29:04 PM REPRESENTATIVE RAUSCHER reiterated his previous question regarding specific renewable energy appropriations made by the ASL. 1:29:34 PM CURTIS THAYER, Executive Director, Alaska Energy Authority, answered committee questions on HB 196. He said that the ASL appropriated $10 million in the previous fiscal year to allocate towards renewable energy projects and clarified that there was no "missing money" from the ASL in its effort to fund renewable energy projects. He noted the importance of the labor-intensive nature of grant distributions. 1:31:19 PM REPRESENTATIVE RAUSCHER shared his uncertainty that the ASL would "lose" its ability to appropriate money to renewable energy projects. He said that he was "trying to understand" how the proposed policies of HB 196 would work. 1:32:07 PM MR. ZUELOW clarified that HB 196 would allow the fund to exist of appropriations to itself from the ASL. 1:34:18 PM MR. THAYER clarified the grant fund distribution process that the renewable energy fund went through and spoke to the complex nature of the work that the AEA undertook every year in the execution of those funds. 1:35:32 PM REPRESENTATIVE COSTELLO asked what the criteria would be for an applicant to the renewable energy grant fund. MR. THAYER answered that there was a "very rigorous process" that an applicant was subject to and spoke to the role that the Department of Natural Resources (DNR) played in the process as a third party accounting firm. 1:38:08 PM MR. ZUELOW shared his belief that the current renewable energy fund would not lapse. 1:38:31 PM REPRESENTATIVE EDGMON clarified that the renewable energy fund grant program was included in the capitol budget to allow for a five-year period to re-appropriate if necessary. 1:39:19 PM CO-CHAIR HOLLAND asked about the scope and nature of the "technical assistance" outlined by the proposed legislation and asked Mr. Thayer what his views on the emerging technology fund were. MR. THAYER answered that the AEA would provide guidance, not technical assistance with the application of the proposed policies of HB 196. He emphasized that the technology program he had mentioned was a separate program. 1:43:03 PM The committee took an at-ease from 1:43 p.m. to 1:44 p.m 1:44:14 PM REPRESENTATIVE RAUSCHER asked for further context regarding the existing balance of the renewable energy fund. 1:45:40 PM MR. THAYER answered that a certain portion of the existing renewable energy fund was previously obligated. 1:46:59 PM CO-CHAIR HOLLAND asked about other sources of funding for the renewable energy fund. MR. THAYER said that he would follow up with more information later and assured the committee that most of the renewable energy funds were obligated. 1:49:58 PM REPRESENTATIVE EDGMON commented that he was "intrigued" by the portion of the proposed legislation that would provide assistance to small communities in the state. He opined that the proposed policies of HB 196 could help different facets of small community governments cooperate and said that HB 196 was like "the little engine that could." 1:53:59 PM CO-CHAIR MEARS announced that HB 196 would be held over. 1:54:07 PM CO-CHAIR MEARS delivered committee announcements. 1:54:20 PM ADJOURNMENT  There being no further business before the committee, the House Energy Standing Committee meeting was adjourned at 1:54 P.M.