Alaska Legislature: Senate Community & Regional Affairs, 4/21/26, 1:30pm

I call this meeting of the Senate Community and Regional Affairs Committee to order. Let the record reflect it is 1:34 PM on Tuesday, April 21st. Thank you to the staff for helping us today. Present in the room we have myself, Senator Dunbar, and Senator Gray Jackson. We are hoping that Senator Yunt comes shortly.

We do not currently have a quorum. However, we can still do introductory hearings, and so to that end, we will hear Senate Bill 16, refuse utility regulations, by Senator Myers. Staff for Senator Myers, Dawson Mann, is here to present the bill. Mr. Mann, if you put yourself on the record and proceed with your introduction.

Thank you, Vice Chair Dunbar, members of the committee. For the record, Dawson Mann, Chief of Staff to Senator Myers. Senator Myers wants to apologize for not being here today, but he is currently presenting a bill in another committee. Today I will be presenting SB 16, refuse utility regulations. If it is the will of the committee, I can speak to the sectional analysis for the bill, but first I want to briefly touch on the sponsor statement.

With SB 16, we are truly trying to balance two things: protecting customers and making sure that rate cases are handled on time. Right now, the Regulatory Commission of Alaska has 450 days to decide a rate case, but it can be extended by another 450 days. From what we hear, the extension is used most of the time. That means a rate case can take almost 3 years. Because of that delay, utilities are not asking for small increases.

Instead, they are asking for big jumps, sometimes 20% or more. And then quickly file again. These cases cause sticker shock for customers and also make it very hard for utilities to expand services, especially when they are trying to just add a few customers at a time outside city areas. SB 16 is based on language that passed one chamber unanimously 4 years ago. It also passed the other chamber 2 years ago, but not in the same bill at the same time.

The goal of SB 16 is to make rate changes faster and simpler for refuse utilities. It lets them use an existing simplified rate process as long as they meet certain rules. The bill also requires the commission to create clear rules that fit refuse utilities. These rules will make sure that the public is notified and has a real chance to comment. One change in this bill is the public notice is now required by law, not just a suggestion.

Overall, SB 16 aims to create a fair, transparent, and faster system for setting refuse utility rates. And with that, Mr. Chair, if you would like, I could read the sectional analysis. Yes, please go ahead.

Section 1, page 1, lines 4 through 14, and page 2, lines 1 through 4. This section amends AS 4205-381E to include refuse utilities. This section is the statute that provides for the simplified rate filing procedure. This section also outlines that the Regulatory Commission of Alaska shall adopt regulations specific to refuse utilities to provide sufficient public notice and time for ratepayers to meaningfully comment on the filings. And Section 2, page 2, line 5 establishes an immediate effective date.

Thank you. Are there any questions for Mr. Mann? So, Mr. Mann, I remember from the last time we heard a similar bill that this doesn't change anything— correct me if I'm wrong— this doesn't change anything related to whether refuse utility is or is not covered by the RCA and should not have any appreciable impact other than perhaps speed on either SWS or Alaska Waste in Anchorage. Is that true? Uh, yes, through the chair Dawson Mann, that is exactly right.

Uh, this changes nothing about who is regulated by the RCA. It just allows the trash companies currently regulated to use the simplified procedure. Very good. Are there any other questions before you go to invited testimony?

Okay, so online for questions we have RCA Commissioner Bruce— I'm sorry, John Springsteen. We also have Utility Engineering Analyst Jess Meneos from RCA. And then now we will go to invited testimony from Mr. Curt Froning, Division Vice President for Waste Connections. Mr. Froning, could you please put yourself on the record and begin your testimony? [FOREIGN LANGUAGE] Yeah, Chair and members of the committee, for the record, my name is Curt Froning.

I'm here on behalf of Alaska Waste, Waste Connections of Alaska, and I serve as the Division Vice President there. So thank you for the opportunity to testify today. I'm here today to share concerns with the current revenue requirement study process at the Regulatory Commission of Alaska for solid waste utilities.

And to support a more efficient collaborative approach that still protects the public interest. Under current statute, as was mentioned, the RCA has up to 450 days to review a rate filing with an option to extend beyond that. In practice, this has resulted in very long and very complex proceedings that consume a significant amount of time and resources. They— these cases often require extensive legal and consulting support costing literally hundreds of thousands of dollars. And while those costs are technically recoverable in our rates, at the end of the day, Alaska customers end up paying for them.

This process is especially challenging for small and rural solid waste providers, many of whom simply don't have the same resources that larger companies do and have the capacity to navigate a prolonged, highly technical rate case. That raises real concerns about affordability, sustainability, and continuity of an essential public health service. Just for comparison, Washington State's Utilities and Transportation Commission handles solid waste rate filings far more efficiently. Their process relies on a simplified rate mechanism, early and proactive staff engagement, and clear informal communication to resolve issues before they become formal disputes. Many filings are completed quickly and with minimal expense.

We believe that Alaska can adopt a similar Alaska-specific approach. Senate Bill 16 provides a framework to do that by enabling collaboration between utilities, the RCA, and the legislature. Specifically, support, first of all, expanded use of simplified rate filings under existing statute with clear thresholds that protect customers. Secondly, pre-filing education and training for RCA audit staff focused on the unique aspects of the solid waste industry and our operations. And then finally, a more direct informal communication during the review process, reducing unnecessary discovery and delay.

In closing, uh, modernizing this process will lower costs for customers, reduce barriers for small providers, and strengthen regulatory outcomes without sacrificing transparency or oversight. Alaska Waste is committed to being a constructive partner in this effort And we appreciate your consideration. And I'm happy to answer any questions. Thank you, Mr. Froning. Are there any questions for Mr. Froning?

Seeing none, um, thank you very much for your testimony. Uh, Mr. Springsteen, uh, on my— here on the data pad it says that you're here just for questions, but in my script it says you were here as an invited testifier. Do you have prepared testimony today? Uh, we do not have prepared testimony. We are here solely to be available to answer questions.

Thank you. Okay, well, I guess I'll just ask one question. Mr. Springsteen, does the RCA support this, this legal change? Okay, uh, to the chair, um, I will give you our standard disclaimer, which is that the RCA cannot make a recommendation on a bill until it's brought up for discussion at a public meeting of the regulatory commission. The commissioners collectively make policy decisions under Open Meetings Act guidelines stated in our statutes at 44.62.310, and any recommendation on legislation must occur after the legislation is publicly vetted at a public meeting convened after the RCA complies with notice requirements of the Open Meetings Act.

Thank you, sir. Let me ask a follow-up question then. We've— there have been several versions of this bill that were materially similar. Has the RCA ever taken a position on a similar bill to this one? Uh, to the chair, not to my knowledge.

Okay, thank you. Thank you, Mr. Springsteen. Um, any other questions before we set this bill aside? Oh, you know, before I'm open— I'm gonna open public testimony. Okay.

First, I'm going to open public testimony. Is there anyone in the room who'd like to testify on this bill?

Seeing none. Is there anyone online? I don't see anyone online seeking to testify on this bill. All right, seeing no one, I will close public testimony. Is there any other discussion?

Mr. Mann, any closing comments before we set the bill aside? Just thank you, members of the committee. Thank you. Thank you, Mr. Mann. Okay, we will now— oh, brief at ease.

Back on the record at 1:45. We're going to move on to SB 265, criminally negligent homicide failure to assist, by Senator Clayman. We heard an introduction of this bill on April 21st. Senator Clayman, or Senator Clayman's staff, do you have any opening comments?

Only if there's questions from Mr. Mayor. Thank you. For the record, Senator Matt Clayman, Senate District H, happy to answer any questions. Very good. Are there any questions from the committee before public testimony?

Not seeing any. At this time, we will open public testimony. Is there anyone in the room who would like to testify on this bill?

Seeing none, anyone online? I don't see anyone online. Very good. So I will close public testimony.

Senator Gray Jackson, do we have a motion? Thank you, Mr. Chairman. I move Senate Bill 265 version 34-LS12431/i from committee with individual recommendations and accompanying fiscal note and authorize legislative legal to make conforming changes. Thank you, Mr. Chairman. Is there any objection?

Seeing none, this bill is moved from committee. We'll take a brief at ease to sign the paperwork.

Back on the record. It is 1:48. Next is an— oh, let's see here. This is an introduction. I think this is more than just an introduction, isn't it?

Well, we are going to SB 250, Data Centers Utilities, by Senator Tobin. This is our third hearing on the bill. We have previously taken both invited and public testimony. We have with us Senator Tobin and Mr. Mr. Louis Flora. For either of you, do you have any opening comments?

Thank you, Mr. Vice Chairman Dunbar. For the record, my name is Lukey Tobin, Senator for District I. We appreciate the committee's opportunity to introduce CS, and we are happy to walk through the explanation of changes on that CS to provide and to answer any additional questions. Very good.

See, so here on this bill, for questions, we again have Mr. John Springsteen and Jess Mineos, uh, from the RCA. Um, are there any questions for the bill sponsor or for the folks that are online?

Okay, so apparently we had some technical difficulties during public testimony on the last time we heard this bill. So I'm going to reopen public testimony. Is there anyone in the room who would like to testify on this bill?

Seeing none. I don't see anyone online. No? Okay. So we're going to close public testimony for real this time.

Okay. There is a proposed committee substitute. Senator Great Jackson, do you have a motion? Thank you, Mr. Chairman. I move to adopt the proposed propose committee substitute for Senate Bill 250, work draft 34LS as in sugar, 1378/i as in Indian as our working document.

Thank you, Mr. Chairman. I'll object for the purpose of explanation. Mr. Flora, would you like to explain the changes? Yeah, thank you. Louie Flora, for the record, staff to Senator Lukey Gayle Tobin.

In version I, you will find the following changes from the original version N. On page 3, lines 9 through 18 of version I, We added some financial security language at the request of a public utility, and this language provides that if furnishing service to a data center will require an electric or gas utility to incur capital investment costs in excess of $1 million, a contract must require the data center provide financial surety to the utility. The second change is on page 4, lines 16 through 19 of version I. We added new language requiring a data center to submit a water usage plan to a municipality detailing monthly water usage and wastewater discharge as a component of a community benefit agreement. And we pulled language there from the, um, municipality of Anchorage, um, has recently adopted an ordinance pertaining to data centers that had, uh, language on water use and wastewater quantity. And that was our model.

Um, and the final change is on page 5, lines 1 through 3, and page 6, lines 7 through 9 of version I. We decrease the size of a data center subject to the terms of the legislation from a 20-megawatt peak demand facility or 2 BCF of natural gas to 15-megawatt peak demand or 1.5 BCF of natural gas. And that mirrors the recommendations in the document from the Alaska Center for Energy and Power that were part of the committee packet. We also removed language applying 20% of utilities' total sales as a threshold for when a data center must meet the requirements of the bill. And this was removed so small data centers on microgrids are not subject to the terms of the bill.

And those are the only changes. Thank you. Very good. Is there any further discussion on this? Any questions for Mr. Flora?

Not seeing any, I will remove my objection. Is there further objection to the CS?

Seeing none, we have adopted the committee substitute. Um, do you— before we set this bill aside, uh, Senator Tobin, do you have any other— um, oh wait, never mind, I'm jumping ahead in my, in my, uh, script here. Is there further discussion on SB 250?

Okay. Senator Gray Jackson, do you have a motion? Thank you, Mr. Chairman. I move Senate Bill 250, version 34, LSLIC 1378/I, as an Indian, from committee with individual recommendations accompanying fiscal note and authorize legislative legal services to make conforming changes. Thank you, Mr. Chairman.

Is there any objection? Seeing none, SB 250 is moved from committee. This concludes our agenda for this afternoon. Everyone please hang around to sign the paperwork. It is 1:52, and this meeting is adjourned.