Legislature(2009 - 2010)BARNES 124

03/12/2010 01:00 PM House RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued at 6:00 pm Today --
Heard & Held
<Bill Held Over to 3/15/10>
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved CSHB 306(RES) Out of Committee
                   HB 306-STATE ENERGY POLICY                                                                               
2:01:41 PM                                                                                                                    
CO-CHAIR JOHNSON  announced that  the next  order of  business is                                                               
HOUSE BILL  NO. 306,  "An Act declaring  a state  energy policy."                                                               
[Before the committee was CSHB 306(ENE).]                                                                                       
2:03:25 PM                                                                                                                    
REPRESENTATIVE EDGMON  noted that  he and  Representative Millett                                                               
provided  the  history behind  HB  306  on [3/8/10]  and  today's                                                               
presentation will provide details of the bill itself.                                                                           
REPRESENTATIVE  CHARISSE   MILLETT,  Alaska   State  Legislature,                                                               
pointed  out that  the policy  was drafted  by both  the resource                                                               
development/consumer  side   and  the  conservation/environmental                                                               
2:04:44 PM                                                                                                                    
CHRIS ROSE,  Executive Director, Renewable Energy  Alaska Project                                                               
(REAP), began his  PowerPoint presentation by noting  that he was                                                               
one of 15  stakeholders working with the  House Special Committee                                                               
on Energy from  July through December 2009 to  develop this state                                                               
energy policy.   To show the  diversity of the people  working on                                                               
this  issue,  he listed  the  other  members of  the  Stakeholder                                                               
Advisory  Panel  [slide 2]:    Gwen  Holdman, Alaska  Center  for                                                               
Energy  & Power;  Robert  Venables,  Southeast Conference;  Scott                                                               
Goldsmith,  Institute of  Social  and  Economic Research  (ISER);                                                               
Jason Brune,  Resource Development  Council, John  Davies, Alaska                                                               
Cold  Climate Housing  Research Center;  Ralph Andersen,  Bristol                                                               
Bay   Native   Association;   Bill   Popp,   Anchorage   Economic                                                               
Development   Corporation  (AEDC);   Bob  Pawlowski   and  Denali                                                               
Daniels, Denali Commission;  Caitlin Higgins, Alaska Conservation                                                               
Alliance;  Stacy  Shubert,  Municipality  of  Anchorage;  Marilyn                                                               
Leland,  Alaska Power  Authority;  Meera  Kohler, Alaska  Village                                                               
Electric Cooperative;  Ron Miller, Energy Consultant;  [and Kathy                                                               
Wasserman, Alaska Municipal League (AMA)].                                                                                      
2:06:24 PM                                                                                                                    
MR. ROSE pointed out that most  states have an energy policy, but                                                               
Alaska does  not [slide 3].   An  energy policy is  important for                                                               
setting guidelines  and sidebars  on what  goals Alaska  wants to                                                               
have  for  energy.   The  policy,  as  written, starts  out  with                                                               
legislative  intent language  which  is essentially  five of  the                                                               
goals that  the group decided,  by consensus, could  be included.                                                               
The goals would  be up to the legislature to  promulgate.  A part                                                               
of the goals is recognizing that  Alaska must first have a policy                                                               
that sets  a long-term vision to  address its energy needs.   The                                                               
bill  is also  an  attempt  to align  that  policy  with all  the                                                               
different  units  of government  so  that  all  of the  units  of                                                               
government in  the State  of Alaska are  working toward  the same                                                               
end.   After  the goals  are set  up, plans  and projects  can be                                                               
implemented to reach those goals.                                                                                               
MR. ROSE emphasized  the hierarchy of what  the stakeholder group                                                               
saw as  important [slide  4].   First is  to establish  an energy                                                               
policy, second  is to  develop the strategic  goals, third  is to                                                               
create the plan to achieve the  goals, and fourth is to implement                                                               
the  projects.    He  noted  there  are  currently  a  number  of                                                               
organizations  and regions  in the  state that  are all  crafting                                                               
energy plans.   However, that planning is without  the benefit of                                                               
a statewide  vision and  HB 306  is the  attempt to  provide that                                                               
statewide vision for everyone to work toward.                                                                                   
2:08:09 PM                                                                                                                    
MR.  ROSE  said   the  guiding  principle  of   the  process  the                                                               
Stakeholder  Advisory Panel  worked  on was  that  energy is  the                                                               
lifeblood of  any economy -  without energy security there  is no                                                               
economic security  [slide 5].   The  stakeholder group  wanted to                                                               
talk about energy  as it applied to  residential, commercial, and                                                               
industrial users.   Whether this should  apply beyond electricity                                                               
and   heat  to   include   transportation   was  discussed,   and                                                               
transportation  is  something  the   legislature  may  decide  to                                                               
include.   The group also wanted  a statement in the  policy that                                                               
anticipates  what  the group  believes  will  be future  reality.                                                               
Some of that reality is that  fossil fuel prices will continue to                                                               
trend upward  due to supply and  demand and because there  may be                                                               
some kind of  carbon regulation that will make  it more expensive                                                               
to use  fossil fuels in the  future.  The group  wanted to ensure                                                               
this is  taken into  consideration as  energy decisions  are made                                                               
and the state moves forward.                                                                                                    
MR. ROSE  explained the starting  point of this  statewide policy                                                               
was an  energy policy  that was put  together by  the Tri-Borough                                                               
Commission,  a commission  established  a few  years  ago by  the                                                               
mayors of the Kenai Peninsula  and Matanuska-Susitna boroughs and                                                               
the  Municipality of  Anchorage  [slide  6].   Mr.  Popp of  AEDC                                                               
staffed that effort for which  the strategy included developing a                                                               
policy first, and which is the  same thing that is being said now                                                               
for the  state policy.   When the  effort with the  House Special                                                               
Committee on  Energy was  started last  summer, the  decision was                                                               
made to  not reinvent the wheel  and to use elements  of the Tri-                                                               
Borough Commission energy policy as the starting point.                                                                         
2:10:58 PM                                                                                                                    
MR. ROSE  stated that the fundamentals  of the policy in  HB 306,                                                               
pages 2-3,  Section 44.99.115, are  to institute  a comprehensive                                                               
and  coordinated approach  of  supporting  energy efficiency  and                                                               
conservation  [slide 7].    Everybody in  the  group agreed  that                                                               
investment in energy  efficiency must happen first  because it is                                                               
always cheaper  to save  a unit  of energy  than to  generate it.                                                               
This  investment would  save the  economy money  and re-circulate                                                               
those dollars in  the state's economy rather  than exporting them                                                               
to purchase fuels.                                                                                                              
MR.  ROSE  said  the  second  fundamental of  the  policy  is  to                                                               
encourage economic  development by  promoting the  development of                                                               
both renewable  and nonrenewable  energy resources.   One  of the                                                               
goals in the  legislative intent language is  that Alaska remains                                                               
a leader in  petroleum and natural gas production, as  well as to                                                               
become  a  leader  in  renewable  energy  development.    Another                                                               
fundamental  is  to  support   energy  research,  education,  and                                                               
workforce development,  which are items  addressed in HB  305 and                                                               
SB   220,   the   House  and   Senate   energy   omnibus   bills.                                                               
Additionally,  those  bills  would   create  an  emerging  energy                                                               
technology  fund.   The  last  fundamental of  the  policy is  to                                                               
support coordination of governmental  functions.  Right now there                                                               
are   governmental  functions   on  energy   in  many   different                                                               
departments around  the state, but  there is not  necessarily any                                                               
coordination on those.                                                                                                          
2:12:40 PM                                                                                                                    
MR. ROSE summarized  that this diverse group  of stakeholders, by                                                               
consensus,  agreed Alaska  must  have energy  policy first,  then                                                               
have goals, plans,  and projects in that descending  order to get                                                               
to where it  is going [slide 8].   To provide an idea  of how the                                                               
consensus  process worked,  he explained  that at  one point  the                                                               
bill was about  seven pages long because  each stakeholder wanted                                                               
to include his or her group's  pet goal.  However, a decision was                                                               
made to  tighten things up by  agreeing on only a  few goals that                                                               
would be sent to the legislature  for passage and use as a vision                                                               
to coordinate the goals that  the legislature might consider most                                                               
2:14:08 PM                                                                                                                    
REPRESENTATIVE  MILLETT   pointed  out  that  this   would  be  a                                                               
statewide  policy  and  the House  Special  Committee  on  Energy                                                               
tasked  the  stakeholders  group  to make  a  policy  that  would                                                               
overarch  the entire  state and  apply  to both  rural and  urban                                                               
residents.  It required a  lot of compromise between stakeholders                                                               
that  have parallel  lines, but  much  different philosophies  on                                                               
energy, to come  up with a policy that serves  a purpose in every                                                               
corner of  the state.  She  noted that the stakeholder  group had                                                               
long debates about many of the  topics that are in the amendments                                                               
she is aware will be proposed.                                                                                                  
2:15:31 PM                                                                                                                    
REPRESENTATIVE SEATON  inquired whether  the promotion  of energy                                                               
efficiency for transportation was  intentionally omitted from the                                                               
REPRESENTATIVE  MILLETT responded  yes,  because one  community's                                                               
version of  transportation may be much  different than another's.                                                               
For example, bicycles  and public bus systems  may be appropriate                                                               
forms of  transportation in Anchorage,  but not in  Dillingham or                                                               
Aleganek.  The  group had a long discussion about  there being no                                                               
such  thing  as  energy  efficient  airplanes  and  most  of  the                                                               
transportation in rural Alaska is  by airplane.  The stakeholders                                                               
wanted to be  aware of the fundamental  differences between rural                                                               
and  urban  when  it  comes  to  transportation,  and  they  were                                                               
passionate about  ensuring nothing  be put  in state  policy that                                                               
would negate a community or be unattainable by a community.                                                                     
2:18:49 PM                                                                                                                    
REPRESENTATIVE EDGMON added  that it can be seen  from looking at                                                               
the policy  that the major  themes are  conservation, efficiency,                                                               
economic development, education, and  training.  During committee                                                               
discussions  with  the  stakeholder   group,  it  was  felt  that                                                               
transportation  might better  serve as  a subset  of those  major                                                               
themes that would go into statute.   There were a number of other                                                               
items  that  could have  also  been  included  in the  policy  to                                                               
provide more  detail, and at  one point  this two-and-a-half-page                                                               
bill  ballooned to  seven  pages.   It  was  felt that  decisions                                                               
needed  to be  made  to  make the  bill  short  and concise  with                                                               
appropriate  emphasis.    The   stakeholder  group  decided  that                                                               
transportation, and  the unfunded  mandate that might  be carried                                                               
with it,  would be better  served by the strategic  work products                                                               
that will follow once the policy is put in place.                                                                               
2:20:20 PM                                                                                                                    
REPRESENTATIVE SEATON commented that,  on an energy policy basis,                                                               
it seems  a large chunk of  policy is being left  out by omitting                                                               
CO-CHAIR  JOHNSON encouraged  Representatives Edgmon  and Millett                                                               
to continue working on transportation issues.                                                                                   
2:22:03 PM                                                                                                                    
REPRESENTATIVE TUCK  related that the House  Special Committee on                                                               
Energy  discussed not  wanting to  strap the  state and  ensuring                                                               
that the overall  energy policy is a fit for  all communities.  A                                                               
big part  of conservation,  efficiency, and  economic development                                                               
is infrastructure, whether that  is power, gas, or transportation                                                               
infrastructure.   He said  he is  a proponent  of electromagnetic                                                               
trains as one  of the best ways of conserving  and protecting the                                                               
environment.    He  asked   whether  Representatives  Edgmon  and                                                               
Millett see how potential transportation  systems could be a part                                                               
of  building conservation,  efficiency, and  economic development                                                               
in  communities  by having  some  fit-for-all  direction to  work                                                               
towards,  but   not  necessarily  policy  plans   that  would  be                                                               
implemented now.   For example,  building efficiency  is included                                                               
as an overall statement of goal, but it is not defined.                                                                         
2:24:05 PM                                                                                                                    
REPRESENTATIVE  EDGMON  replied  this   is  a  policy  call  that                                                               
committee members  will likely  want to consider  as there  is an                                                               
amendment that  speaks to this  somewhat.  He  directed attention                                                               
to page  2, lines  29-31, which state,  "working to  identify and                                                               
assist  with development  of the  most cost-effective,  long-term                                                               
sources of  energy for  each community statewide".   He  said his                                                               
recollection   of  stakeholder   discussion  about   including  a                                                               
transportation element  in the  policy is that  there is  room in                                                               
this   language   for   any  community   to   develop   its   own                                                               
transportation policy or  plan.  There was great  concern that by                                                               
putting  it  into  the  overall   policy,  some  of  the  smaller                                                               
communities could be  disenfranchised.  It is a  policy call, and                                                               
he  and Representative  Millett are  simply reporting  to members                                                               
what the very diverse stakeholder group came up with.                                                                           
2:25:50 PM                                                                                                                    
CO-CHAIR NEUMAN, in  regard to the goals listed on  page 1, lines                                                               
5-15,  inquired  whether action  items  with  dates for  reaching                                                               
those goals were developed to act as measuring sticks.                                                                          
REPRESENTATIVE  MILLETT answered  that that  is exactly  what was                                                               
done.  The group started out  with these goals in the legislative                                                               
intent; Alaska  has already  reached 24  percent of  its electric                                                               
generation from the renewable energy  source of hydropower, so it                                                               
has 26  percent to  go.   The House  Special Committee  on Energy                                                               
debated  whether to  raise  that renewable  energy  goal from  50                                                               
percent  to 75  percent; however,  she said  she was  comfortable                                                               
with  the goal  of 50  percent, knowing  that it  was attainable.                                                               
When applying  for grants  or loans from  the state,  these goals                                                               
let folks know that this is a priority.                                                                                         
2:27:48 PM                                                                                                                    
CO-CHAIR JOHNSON  noted that under federal  guidelines hydropower                                                               
is  not considered  renewable.   He asked  whether hydropower  is                                                               
considered renewable by the State of Alaska.                                                                                    
REPRESENTATIVE MILLETT  responded that  hydropower is  defined as                                                               
renewable  on page  2, line  22, as  are hydrokinetic  and tidal.                                                               
The intent  is to go  around the federal government  and continue                                                               
considering hydropower as renewable energy.                                                                                     
REPRESENTATIVE  TUCK, in  response to  Co-Chair Johnson,  pointed                                                               
out that  nuclear energy is included  under efficient development                                                               
of nonrenewable resources on page 2, lines 26-28.                                                                               
REPRESENTATIVE MILLETT added  that nuclear energy was  a point of                                                               
contention with  the stakeholder  group, as was  coal.   She said                                                               
she   must   give   the   conservation   community   credit   for                                                               
understanding that  nuclear is a  possibility and that coal  is a                                                               
necessary resource  for serving  as a  bridge while  Alaska moves                                                               
forward to renewable and alternative energy sources.                                                                            
CO-CHAIR JOHNSON offered his belief  that nuclear energy may be a                                                               
viable alternative in the not-too-distant future.                                                                               
2:30:00 PM                                                                                                                    
REPRESENTATIVE GUTTENBERG  observed that  however a  person feels                                                               
about  nuclear,  it is  appropriate  for  nuclear  to be  in  the                                                               
document as something to be considered under this broad policy.                                                                 
CO-CHAIR JOHNSON said  he is a supporter of  each community being                                                               
able to determine on its own what it wants.                                                                                     
REPRESENTATIVE SEATON  noted that his district  includes the only                                                               
nuclear-free city in  Alaska and the only city  that is currently                                                               
working on a nuclear plant,  those cities being Homer and Seward,                                                               
REPRESENTATIVE GUTTENBERG  pointed out his district  has the only                                                               
non-city that  is a nuclear-free zone  and there was once  a plan                                                               
to put a nuclear plant there.                                                                                                   
2:31:57 PM                                                                                                                    
REPRESENTATIVE SEATON asked where the  sponsors think it would be                                                               
most  appropriate to  insert something  about encouraging  energy                                                               
efficiency for transportation.                                                                                                  
REPRESENTATIVE  MILLETT  replied  that transportation  needs  are                                                               
included under the declaration of  state energy policy on page 2.                                                               
Lines 4-5  talk about taking  a broad approach  to transportation                                                               
needs, but  it is not specified  in the body of  the bill exactly                                                               
what that means.  She  said she thinks the transportation portion                                                               
is covered,  and the  bill was  put together  with the  idea that                                                               
transportation is included.  She  added that it is Representative                                                               
Seaton's call  on the policy,  but she  wanted to point  out that                                                               
the  bill already  addresses the  transportation question  in the                                                               
2:33:53 PM                                                                                                                    
REPRESENTATIVE  EDGMON,  in  further response  to  Representative                                                               
Seaton, said it seems to him  the most appropriate location for a                                                               
transportation amendment would be somewhere  in Section 2 on page                                                               
2, should  the committee  decide to  put transportation  into the                                                               
CO-CHAIR  JOHNSON offered  his opinion  that the  intent language                                                               
might be a more appropriate location than the statute itself.                                                                   
2:36:35 PM                                                                                                                    
REPRESENTATIVE  GUTTENBERG moved  to adopt  Amendment 1,  labeled                                                               
26-LS1049\T.1, Kane,  2/18/10, and  written as  follows [original                                                               
punctuation provided]:                                                                                                          
     Page 3, following line 2:                                                                                                  
     Insert a new subparagraph to read:                                                                                         
               "(E)      making    available   to   affected                                                                    
     communities  residential  solid   fuel  burning  device                                                                    
     change out programs  that meet Environmental Protection                                                                    
     Agency  emission  requirements   and  implement  energy                                                                    
     efficiency  standards  that  conserve the  use  of  the                                                                    
     state's timber resources used in space heating;"                                                                           
CO-CHAIR JOHNSON objected.                                                                                                      
REPRESENTATIVE GUTTENBERG explained that  his intention is not to                                                               
persuade members to adopt the  amendment, but to persuade members                                                               
to do  larger things.   He  said his  community clearly  needs to                                                               
address emission standards through  the more efficient burning of                                                               
solid wood.   He withdrew Amendment  1 in the spirit  of the work                                                               
done by the  House Special Committee on Energy  to remain focused                                                               
on  overall state  energy policy,  even though  it would  be more                                                               
efficient for  his community to  have Amendment 1 in  policy now.                                                               
If members keep  adding things on to this policy  it would likely                                                               
not survive by sheer weight.                                                                                                    
CO-CHAIR  NEUMAN pointed  out that  wood pellet  stoves are  very                                                               
efficient and  pellets could be  shipped to Western  Alaska where                                                               
fuel costs are very high.                                                                                                       
REPRESENTATIVE GUTTENBERG said  his point is that  Amendment 1 is                                                               
a specific program as compared with an overall energy policy.                                                                   
2:39:03 PM                                                                                                                    
REPRESENTATIVE  TUCK  moved to  adopt  Amendment  2, labeled  26-                                                               
LS1049\T.3,  Kane,  3/5/10,  and  written  as  follows  [original                                                               
punctuation provided]:                                                                                                          
     Page 2, line 16:                                                                                                           
          Delete the second occurrence of "and"                                                                                 
     Page 2, line 20, following "efficiency;":                                                                                  
          Insert "and                                                                                                           
               (D)  encouraging and empowering communities                                                                      
     to  adopt  community-appropriate   measures  to  reduce                                                                    
     motor vehicle fuel use and  other energy use, including                                                                    
     measures encouraging the  use of public transportation,                                                                    
     if appropriate for the community;"                                                                                         
CO-CHAIR JOHNSON objected for discussion purposes.                                                                              
2:39:39 PM                                                                                                                    
REPRESENTATIVE  TUCK explained  the  House  Special Committee  on                                                               
Energy   discussed  an   amendment  that   would  have   assisted                                                               
communities   in   developing  public   transportation   options.                                                               
However, the  committee did not  want the  state to play  such an                                                               
in-depth role in communities and  was unsure of the definition of                                                               
assisting.   In  taking this  amendment back  for a  re-draft, he                                                               
wanted to  ensure it  met the criteria  under the  declaration of                                                               
state energy  policy.  He further  noted that Amendment 2  is not                                                               
just   about  transportation   within  a   community,  but   also                                                               
transportation  that would  link communities  in the  most energy                                                               
efficient ways.                                                                                                                 
2:43:30 PM                                                                                                                    
REPRESENTATIVE  EDGMON  said  he   supports  the  intent  of  the                                                               
amendment, but  it gives him  pause because the diverse  group of                                                               
stakeholders felt  it would be  better to address this  after the                                                               
policy's adoption.   The word  empowering on line 6  carries more                                                               
connotation than what the policy  itself would want to carry, the                                                               
amendment has  more detail than  the stakeholders  envisioned for                                                               
HB 306, and  each community already has ability  to adopt vehicle                                                               
emission ordinances.   The stakeholder group put a  lot of effort                                                               
into winnowing  the policy down  to a generic energy  policy that                                                               
addresses all the components of a resource development state.                                                                   
CO-CHAIR JOHNSON maintained his objection to Amendment 2.                                                                       
2:45:52 PM                                                                                                                    
REPRESENTATIVE TUCK moved Amendment 1 to Amendment 2 as follows:                                                                
     Line 6:                                                                                                                    
          Delete "and empowering"                                                                                               
     Line 8, following "energy":                                                                                                
          Insert "transportation"                                                                                               
     Lines 8-9:                                                                                                                 
       Delete "including measures encouraging the use of                                                                        
    public   transportation,   if   appropriate   for   the                                                                     
Thus, lines 6-9 of Amendment 2 would read:                                                                                      
         (D) encouraging communities to adopt community-                                                                        
     appropriate measures to reduce motor vehicle fuel use                                                                      
     and other energy transportation use;                                                                                       
CO-CHAIR JOHNSON objected for discussion purposes.                                                                              
2:48:25 PM                                                                                                                    
REPRESENTATIVE SEATON inquired  what "other energy transportation                                                               
use" means.                                                                                                                     
REPRESENTATIVE TUCK responded he  wants the focus to specifically                                                               
be  on energy  transportation uses  and not  all the  energy uses                                                               
that are out there.                                                                                                             
REPRESENTATIVE GUTTENBERG  said he  would recognize  an amendment                                                               
that adds  something that cannot  be read  into the policy.   The                                                               
amendment is unnecessary because this  can already be read inside                                                               
the policy as currently written.                                                                                                
2:50:06 PM                                                                                                                    
REPRESENTATIVE  KAWASAKI asked  whether public  transportation is                                                               
included under "other energy transportation use".                                                                               
REPRESENTATIVE TUCK answered yes.                                                                                               
REPRESENTATIVE OLSON  commented that  Amendment 2 would  give one                                                               
of the stakeholders  another bite at the apple, so  it would then                                                               
be necessary to  open it up to everyone.   He will therefore vote                                                               
no on the amendment even though he is not opposed to the intent.                                                                
CO-CHAIR JOHNSON inquired  whether Amendment 2 was  brought up in                                                               
the House Special Committee on Energy.                                                                                          
REPRESENTATIVE MILLETT  responded yes.  While  she understood the                                                               
maker's intent,  she said it is  covered in the broad  policy and                                                               
is a second bite at the apple.                                                                                                  
CO-CHAIR JOHNSON maintained his objection.                                                                                      
REPRESENTATIVE  TUCK   withdrew  Amendment  2  and   offered  his                                                               
appreciation for the hard work of the stakeholders.                                                                             
2:52:17 PM                                                                                                                    
REPRESENTATIVE SEATON  moved Conceptual  Amendment 3,  written as                                                               
follows [original punctuation provided]:                                                                                        
     Page 2, line 27 move reference to "coal"                                                                                   
      Page 2, line 28 after "nuclear energy," insert "and                                                                       
     coal if utilized with carbon capture technology,"                                                                          
Thus, page 2, lines 26-28, of CSHB 306(ENE) would read:                                                                         
          (B) promoting the development, transport, and                                                                         
     efficient   use  of   nonrenewable  energy   resources,                                                                    
     including natural  gas, oil,  gas hydrates,  heavy oil,                                                                    
     and nuclear  energy, and coal  if utilized  with carbon                                                                    
     capture  technology,  for  use   by  Alaskans  and  for                                                                    
CO-CHAIR JOHNSON objected for discussion purposes.                                                                              
2:53:47 PM                                                                                                                    
REPRESENTATIVE   SEATON,  in   response   to  Co-Chair   Johnson,                                                               
explained that with carbon capture  technology the carbon dioxide                                                               
would be captured when the coal  is burned.  In further response,                                                               
he agreed that it is a form of carbon sequestration.                                                                            
CO-CHAIR NEUMAN  offered his  belief that  Alaska has  a 300-year                                                               
supply  of coal  and said  he thinks  the use  of carbon  capture                                                               
technology is already covered under the current language.                                                                       
2:55:09 PM                                                                                                                    
REPRESENTATIVE P. WILSON pointed out  that the word "coal" should                                                               
be deleted from line 27, not moved.                                                                                             
REPRESENTATIVE SEATON  said the intent  is to move  the reference                                                               
to coal from line  27 to line 28.  He added  that the first "and"                                                               
on line 28 should be deleted.                                                                                                   
REPRESENTATIVE GUTTENBERG  recalled Representative  Joule stating                                                               
that one of his communities has  coal nearby and use of that coal                                                               
would be more efficient and affordable than flying in diesel.                                                                   
2:56:53 PM                                                                                                                    
CO-CHAIR JOHNSON  maintained his objection, saying  he fears that                                                               
putting carbon capture technology into  statute could result in a                                                               
community being unable to use its  coal even if that was the most                                                               
efficient source of energy available to the community.                                                                          
CO-CHAIR NEUMAN  objected to Conceptual Amendment  3 because much                                                               
work is being done at the Healy plant.                                                                                          
REPRESENTATIVE SEATON contended the  amendment is not restrictive                                                               
and  is a  policy that  would encourage  economic development  by                                                               
promoting development.   He said he does not think  the export of                                                               
coal should  be promoted without  using clean coal  technology or                                                               
carbon capture technology.  He clarified  it is not his intent to                                                               
close a generation facility.                                                                                                    
A roll call vote was  taken.  Representatives Seaton, Edgmon, and                                                               
P.   Wilson   voted  in   favor   of   Conceptual  Amendment   3.                                                               
Representatives Olson, Guttenberg,  Kawasaki, Neuman, and Johnson                                                               
voted against it.  Therefore,  Conceptual Amendment 3 failed by a                                                               
vote of 3-5.                                                                                                                    
2:59:51 PM                                                                                                                    
CO-CHAIR JOHNSON moved  to adopt Amendment 4,  written as follows                                                               
[original punctuation provided]:                                                                                                
     Page 2, line 12, following "by"                                                                                            
          Delete lines 13, 14                                                                                                   
     Renumber section accordingly                                                                                               
CO-CHAIR NEUMAN objected for discussion purposes.                                                                               
CO-CHAIR  JOHNSON  explained  he  does not  want  to  codify  the                                                               
creation  and  establishing  of  efficiency  codes  for  new  and                                                               
renovated residential,  commercial, and public  buildings because                                                               
the  codes  might  cause problems,  increase  costs,  and  stymie                                                               
development.   He  is  not prepared  to  have the  administration                                                               
develop energy efficiency codes until further down the line.                                                                    
3:01:13 PM                                                                                                                    
REPRESENTATIVE P.  WILSON supported  the state  having efficiency                                                               
codes because while  living in Tok she saw houses  that were just                                                               
being thrown  together.  Given  the state is currently  paying to                                                               
winterize [existing] homes, there should  be some kind of a basis                                                               
for new  construction so  the state is  not paying  for something                                                               
that could  have been done  to begin  with.  Therefore,  she said                                                               
she would like to leave this provision in the bill.                                                                             
3:02:33 PM                                                                                                                    
REPRESENTATIVE  EDGMON agreed  with  Representative  Wilson.   He                                                               
said this is  a very important part of the  overall policy, which                                                               
is  reflected  in omnibus  legislation  that  is making  its  way                                                               
through both  the House and  Senate.   He pointed out  that there                                                               
are over 1,000  public facility buildings in the  state with each                                                               
agency  using   a  different  energy  efficiency   code  for  its                                                               
buildings.   Energy efficiency  is the best  and quickest  way to                                                               
reduce  the  consumption of  energy.    The legislature  has  put                                                               
almost $400  million into the  weatherization program,  with much                                                               
of that designed  to go after sub-standard  private sector homes.                                                               
Under HB  296 the  governor is  proposing to  use $18  million of                                                               
Alaska's  $30 million  in federal  stimulus monies  to allow  for                                                               
performance contracting  for public facilities.   Thus, including                                                               
efficiency codes in the energy policy is only appropriate.                                                                      
3:04:12 PM                                                                                                                    
REPRESENTATIVE  GUTTENBERG AHFC  noted  that  the Alaska  Housing                                                               
Finance Corporation  (AHFC) already has codes  for weatherization                                                               
and energy  efficiencies and is  going to great length  to ensure                                                               
the money  is being used to  meet certain standards.   Banks want                                                               
codes so they  know what they are  loaning on.  So,  in many ways                                                               
the state is  already there.  The bill does  not say adopt codes,                                                               
it just  says establish  energy efficiency codes.   If  the state                                                               
does not establish codes for  itself, someone else might, such as                                                               
an insurance agency requiring that  certain building standards be                                                               
met before it  will provide insurance.  However,  he added, codes                                                               
should not apply to the cabin in the middle of the woods.                                                                       
3:06:27 PM                                                                                                                    
CO-CHAIR NEUMAN supported Amendment  4 for all the aforementioned                                                               
reasons because he sees the  word establishing as meaning it will                                                               
become mandated  building code  statewide.   Many people  need to                                                               
build their  own home because  there are no contractors  in their                                                               
area,  codes  would  also  increase  the  cost  of  construction.                                                               
Promoting the most  efficient way is hard to do  because the most                                                               
efficient  fuel for  a  home, such  as natural  gas,  may not  be                                                               
available in all  areas of the state.  He  said his biggest issue                                                               
is  that  this  would  mean state  government  is  telling  local                                                               
governments and  citizens what  to do when  it should  instead be                                                               
encouraged at the local level.                                                                                                  
The committee took an at-ease from 3:09 p.m. to 3:10 p.m.                                                                       
The meeting was recessed at 3:10 p.m. to a call of the chair.                                                                   
6:02:03 PM                                                                                                                    
CO-CHAIR JOHNSON  called the meeting  back to order at  6:02 p.m.                                                               
Present at  the call back  to order were  Representatives Seaton,                                                               
P.  Wilson, Edgmon,  Tuck, and  Johnson.   Representatives Olson,                                                               
Guttenberg, Kawasaki,  and Neuman arrived  as the meeting  was in                                                               
progress.  Discussion resumed on Amendment 4.                                                                                   
6:02:39 PM                                                                                                                    
REPRESENTATIVE EDGMON  moved to  adopt Conceptual Amendment  1 to                                                               
Amendment 4 as follows:  page  2, re-insert lines 13 and 14; line                                                               
13  replace "establishing"  with  "encouraging".   Thus, page  2,                                                               
lines 13-14, would read:                                                                                                        
       (A) encouraging statewide energy efficiency codes                                                                        
       for new and renovated residential, commercial, and                                                                       
     public buildings;                                                                                                          
REPRESENTATIVE  EDGMON explained  that  encouraging would  better                                                               
fit the intent  of the overall policy statement and  would not be                                                               
a mandate that requires something.                                                                                              
6:05:25 PM                                                                                                                    
REPRESENTATIVE TUCK  objected.  He  pointed out that the  AHFC is                                                               
currently  using  the  1998   international  building  code,  and                                                               
although that code  has been updated the AHFC is  still using the                                                               
1998  version.   Should the  AHFC ever  be challenged,  he feared                                                               
that  it  would be  required  to  use the  revised  international                                                               
codes, which is  something the State of Alaska would  not like to                                                               
do.   It is important  that Alaska have  its own codes  that meet                                                               
its needs rather than an  international code.  Alaskans could use                                                               
the state's  code as a guideline  even if it is  not implemented.                                                               
He related  that the  [Cold Climate  Housing Research  Center] in                                                               
Fairbanks  is looking  for  the best  method  of construction  in                                                               
Alaska and learning what does and  does not work so the state can                                                               
have proper codes to meet its needs.                                                                                            
6:07:02 PM                                                                                                                    
REPRESENTATIVE EDGMON responded that  establishing has a stronger                                                               
meaning to it and is a mandate  that could mean there will not be                                                               
enough  support for  the policy.    Encouraging accomplishes  the                                                               
same result  by providing  basically the  same direction  in that                                                               
energy efficiency codes are coming  Alaska's way, whether through                                                               
the marketplace, federal designation, or lenders.                                                                               
REPRESENTATIVE  MILLETT added  that the  word encouraging  better                                                               
fits  the  document  because the  policy's  recommendations  were                                                               
drafted  to  be  guidelines,  not  mandates.   She  said  she  is                                                               
comfortable  with   the  amendment   to  the  amendment   and  in                                                               
continuing  forward  with  the  theme of  the  policy,  which  is                                                               
encouraging the  state to do certain  things and one is  to adopt                                                               
some energy efficiency codes.                                                                                                   
6:09:03 PM                                                                                                                    
REPRESENTATIVE GUTTENBERG  pointed out  that regardless  of which                                                               
word is used, no codes are being  adopted by this bill.  The AHFC                                                               
is already doing quite a bit  of this and there are already codes                                                               
or guidelines.  While encouraging is  not quite as good to him as                                                               
establishing,  it is  acceptable and  will work  for getting  the                                                               
policy through the legislature.                                                                                                 
REPRESENTATIVE  TUCK  withdrew his  objection.    He offered  his                                                               
appreciation  for Representative  Guttenberg's comments  and said                                                               
it will  be up to  local communities  whether to adopt  any codes                                                               
that are established.                                                                                                           
There  being  no further  objection,  Conceptual  Amendment 1  to                                                               
Amendment 4 was  passed.  There being no  objection, Amendment 4,                                                               
as amended, was passed.                                                                                                         
6:11:02 PM                                                                                                                    
CO-CHAIR JOHNSON withdrew Amendment 5 without offering it.                                                                      
REPRESENTATIVE  SEATON moved  to  adopt  Conceptual Amendment  6,                                                               
written as follows [original punctuation provided]:                                                                             
     Page 3, line 3,                                                                                                            
    "(E)   promoting   energy   efficiency   utilized   for                                                                     
REPRESENTATIVE GUTTENBERG objected.                                                                                             
The committee took an at-ease from 6:11 p.m. to 6:12 p.m.                                                                       
REPRESENTATIVE GUTTENBERG removed his objection.                                                                                
CO-CHAIR JOHNSON objected.                                                                                                      
6:13:25 PM                                                                                                                    
REPRESENTATIVE SEATON  explained that the energy  policy outlines                                                               
what is  wanted to take  place throughout the state.   Conceptual                                                               
Amendment  6  would  promote economic  development  by  promoting                                                               
energy efficiency  utilized for transportation and,  as suggested                                                               
by Representatives  Edgmon and Millett,  would be  inserted under                                                               
Section 2 which promotes economic development.                                                                                  
REPRESENTATIVE MILLETT stated the  amendment is a good compromise                                                               
for putting in transportation without  mandating anything and she                                                               
does not think it would alienate any of the rural communities.                                                                  
REPRESENTATIVE  EDGMON said  he is  fine with  the amendment  and                                                               
noted it would  accomplish what the earlier  amendment had wanted                                                               
to accomplish.                                                                                                                  
CO-CHAIR JOHNSON removed  his objection.  There  being no further                                                               
objection, Conceptual Amendment 6 was passed.                                                                                   
6:14:51 PM                                                                                                                    
CO-CHAIR  NEUMAN  moved  to  adopt   Conceptual  Amendment  7  as                                                               
     Page 1, line 15, after "renewable":                                                                                        
          Insert "and alternative"                                                                                              
CO-CHAIR NEUMAN explained he would  like to include this language                                                               
because alternative fuel  sources can be created  from methane, a                                                               
clean fuel  that would  provide a  great opportunity  for Alaska.                                                               
The amendment  would tie in with  the other parts of  the policy,                                                               
such as page 2, line 26.   He added that alternative energy would                                                               
also provide jobs.                                                                                                              
6:17:43 PM                                                                                                                    
CO-CHAIR JOHNSON  objected for discussion purposes.   He inquired                                                               
whether alternative is defined in the bill.                                                                                     
CO-CHAIR  NEUMAN stated  that alternative  energy can  be gas-to-                                                               
liquids,  coal-to-liquids, or  biomass to  liquids.   Alternative                                                               
fuels are  an evolving culture as  far as what will  be the fuels                                                               
of the future.                                                                                                                  
CO-CHAIR  JOHNSON understood,  but said  his question  is whether                                                               
alternative is defined.                                                                                                         
REPRESENTATIVE MILLETT  said she believes alternative  is defined                                                               
in the omnibus  bill, but she is unsure whether  it is defined in                                                               
the policy bill.  She  offered her belief that alternative energy                                                               
is a defined term in statute so a definition may not be needed.                                                                 
6:19:17 PM                                                                                                                    
REPRESENTATIVE TUCK  stated that  an inventory book  published by                                                               
the  Alaska  Energy  Authority includes  nuclear  as  alternative                                                               
energy, and  he therefore thinks  alternative energy  is anything                                                               
that is  not defined  under renewable and  that is  not currently                                                               
being utilized.                                                                                                                 
CO-CHAIR  JOHNSON  noted  he  is not  opposed  to  including  the                                                               
alternative  language, but  he wants  to  be clear  that at  some                                                               
point  coal  is not  considered  alternative.   Additionally,  he                                                               
wants to  ensure that what  the bill  is trying to  accomplish is                                                               
clearly defined.                                                                                                                
REPRESENTATIVE SEATON  recalled that a  year or so ago  the title                                                               
for  the renewable  energy fund  was changed  at the  last minute                                                               
from renewable  to alternative, which  would have meant  that the                                                               
funds  could have  been spent  on  coal gasification.   Thus,  he                                                               
understands the point  of needing clarity.   However, this policy                                                               
deals  with all  the energies  and the  amendment would  not mean                                                               
that alternative  energy would be  defined as renewable,  thus he                                                               
does not have a problem with the amendment.                                                                                     
CO-CHAIR JOHNSON agreed.                                                                                                        
6:21:24 PM                                                                                                                    
REPRESENTATIVE  TUCK  pointed  out  that  page  2,  lines  22-25,                                                               
promote the  development of renewable energy  resources, and page                                                               
2, lines  26-28, promote the  development of  nonrenewable energy                                                               
resources.  He agreed that  "and alternative" would apply because                                                               
it would help to emphasize lines 26-28.                                                                                         
CO-CHAIR JOHNSON removed his objection.                                                                                         
REPRESENTATIVE  GUTTENBERG objected.   He  inquired whether  this                                                               
amendment  would require  that another  section be  added to  the                                                               
bill to define what is renewable, nonrenewable, and alternative.                                                                
REPRESENTATIVE   MILLETT   said   she   thinks   that   including                                                               
alternative is forward thinking.   While it might be thought that                                                               
energy sources can be defined, new  sources of energy may come up                                                               
that may not be defined;  thus, alternative might provide a broad                                                               
enough  scope.   While she  thinks that  gas-to-liquids would  be                                                               
covered  under fossil  fuel and  hydrates,  she said  she is  not                                                               
opposed to  alternative because every energy  is encompassed that                                                               
can be defined at this point in time.                                                                                           
6:24:08 PM                                                                                                                    
CO-CHAIR  JOHNSON supported  adding alternative.   He  noted that                                                               
fish waste  is being changed  into diesel, something that  is not                                                               
technically  covered  in  the bill;  however,  alternative  would                                                               
bring that in.                                                                                                                  
REPRESENTATIVE TUCK  added that  alternative would cover  all the                                                               
bases because Alaska's  definition of renewable might  not be the                                                               
federal government's definition, hydropower being one example.                                                                  
6:24:50 PM                                                                                                                    
REPRESENTATIVE EDGMON agreed with  adding the word alternative to                                                               
the intent section and suggested that  it also be included in the                                                               
codified  section.   He  moved  Amendment  1  to Amendment  7  as                                                               
     Page 2, line 27, after "nonrenewable":                                                                                     
          Insert "and alternative"                                                                                              
There being no objection, Amendment 1 to Amendment 7 was passed.                                                                
REPRESENTATIVE GUTTENBERG removed his objection to Amendment 7.                                                                 
There being  no further objection,  Amendment 7, as  amended, was                                                               
6:26:21 PM                                                                                                                    
CO-CHAIR JOHNSON opened public testimony.                                                                                       
CAITLIN   HIGGINS,   Executive  Director,   Alaska   Conservation                                                               
Alliance  and Alaska  Conservation Voters,  supported HB  306 and                                                               
urged  its passage  on  behalf of  her  organization's 40  member                                                               
groups.    She thanked  Representatives  Edgmon  and Millett  and                                                               
stated it  was a  pleasure to  work as  part of  the stakeholders                                                               
group.  She said  HB 306 is a policy that  creates the first step                                                               
in reaching  a longer-term  vision of the  energy goals  that the                                                               
state wants  to achieve.  The  energy policy would put  Alaska on                                                               
an  economically viable,  sustainable,  stable  energy path  that                                                               
supports  energy efficiency  first  and foremost.   Further,  the                                                               
energy  policy   would  support  renewable   energy  development,                                                               
workforce  training, and  coordinating  efforts among  government                                                               
entities  focused on  energy.   The Alaska  Conservation Alliance                                                               
has identified  energy efficiency  as a  priority issue  for this                                                               
legislative  session and  supports  the policy  to encourage  the                                                               
establishment  of  statewide  energy efficiency  codes,  decrease                                                               
energy use  in public buildings  through efficiency,  and educate                                                               
the public about  becoming more energy efficient.   The bill sets                                                               
Alaska on  a path to  a cleaner, brighter, and  more economically                                                               
stable future.                                                                                                                  
CO-CHAIR JOHNSON  closed public  testimony after  ascertaining no                                                               
one else wished to testify.                                                                                                     
6:28:51 PM                                                                                                                    
REPRESENTATIVE  TUCK  thanked  the  House  Special  Committee  on                                                               
Energy co-chairs for partnering  with the stakeholders and giving                                                               
all of them the opportunity to weigh  in and refine the bill.  It                                                               
is a good  piece of legislation with buy-in from  all parties and                                                               
is  a great  example of  government  bodies reaching  out to  the                                                               
public to come up with policies  that benefit both the people and                                                               
the state.                                                                                                                      
CO-CHAIR JOHNSON  also recognized the  hard work done by  the co-                                                               
chairs  of the  House Special  Committee on  Energy.   He related                                                               
that the  Obama Administration stated  in a meeting  that natural                                                               
gas  is the  bridge to  the future,  although it  might take  100                                                               
years to cross that bridge to  renewable energy.  He said it will                                                               
therefore be  important to  continue to  develop fossil  fuels in                                                               
the immediate future.                                                                                                           
6:31:26 PM                                                                                                                    
REPRESENTATIVE EDGMON  stated that HB  306 is a  remarkable piece                                                               
of legislation  because it truly is  the work of an  ad-hoc group                                                               
of Alaskans representing every sector  of the energy industry and                                                               
CO-CHAIR  JOHNSON  said  he  is  looking for  the  same  type  of                                                               
cooperation from the  people and user groups that  put the policy                                                               
together to help develop Alaska's fossil fuels.                                                                                 
REPRESENTATIVE EDGMON moved to report  CSHB 306(ENE), as amended,                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying  fiscal  notes.   There  being  no  objection,  CSHB
306(RES)  was   reported  from   the  House   Resources  Standing                                                               

Document Name Date/Time Subjects
CS HB 280 (LC).pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB280 Background.pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB280 Overview.pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB280 Sectional Summary.pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB280 Sponsor Statement.pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB 280-1-1-021710-ADM-N.pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB 280-2-2-021710-CED-N.pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB 280 WD v. C.pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB 280 Changes v. C.pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB 280 v. C Sectional Analysis.pdf HRES 3/12/2010 1:00:00 PM
HB 280
HB 280 v. C Overview.pdf HRES 3/12/2010 1:00:00 PM
HB 280
CSHB280-DNR-OG-03-05-10.pdf HRES 3/12/2010 1:00:00 PM
HB 280
CSHB280-REV-TAX-03-07-10 Cook Inlet Recovery Act.pdf HRES 3/12/2010 1:00:00 PM
HB 280