Legislature(2009 - 2010)BARNES 124

02/23/2010 03:00 PM ENERGY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 31 NET ENERGY METERING TELECONFERENCED
Heard & Held
*+ HB 303 SMALL BUSINESS ENERGY EFFICIENCY GRANTS TELECONFERENCED
Heard & Held
+= HB 296 ENERGY EFFICIENCY BONDS; LOANS; FUND TELECONFERENCED
Moved CSHB 296(ENE) Out of Committee
*+ HJR 45 OPPOSE FEDERAL CAP AND TRADE LEGISLATION TELECONFERENCED
Moved CSHJR 45(ENE) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
          HB 296-ENERGY EFFICIENCY BONDS; LOANS; FUND                                                                       
                                                                                                                                
3:27:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT  announced the next  order of business  would be                                                               
HOUSE  BILL NO.  296, "An  Act  authorizing and  relating to  the                                                               
issuance  of bonds  by the  Alaska  Housing Finance  Corporation;                                                               
establishing  the Alaska  energy efficiency  revolving loan  fund                                                               
and  relating to  the fund;  authorizing  municipalities and  the                                                               
State of Alaska  to borrow money from the  Alaska Housing Finance                                                               
Corporation  for the  purposes  of the  Alaska energy  efficiency                                                               
revolving loan fund; and providing for an effective date."                                                                      
                                                                                                                                
3:28:15 PM                                                                                                                    
                                                                                                                                
BRYAN   BUTCHER,   Director,   Governmental  Affairs   &   Public                                                               
Relations, Alaska Housing  Finance Corporation (AHFC), Department                                                               
of Revenue (DOR),  reminded the committee that HB  296 would take                                                               
$18 million AHFC received from  the energy program stimulus funds                                                               
to leverage up  to $250 million in bonds which  would be used for                                                               
energy improvements  to public and municipal  facilities, such as                                                               
schools.   The proposal would  work as  a revolving loan  fund by                                                               
the hire  of a  energy performance  contractor who  estimates the                                                               
savings  from,  and  cost  of,  energy  efficiency  improvements.                                                               
Subsequently, a loan would be issued  by AHFC and, after the work                                                               
was done,  the savings realized  from the  work would be  used to                                                               
pay back  the loan.  Mr.  Butcher assured the committee  that the                                                               
contractor must  compensate for  any savings  that are  less than                                                               
his  or her  estimate,  thus  in all  cases,  the corporation  is                                                               
repaid and the program continues to revolve.                                                                                    
                                                                                                                                
3:29:48 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON inquired as to  whether any problems are foreseen                                                               
regarding issuing $250 million in bonds.                                                                                        
                                                                                                                                
MR. BUTCHER advised that the bonds  are backed by AHFC, and would                                                               
not be issued all  at once.  In fact, there  are only four energy                                                               
performance contractors in the state at this time.                                                                              
                                                                                                                                
3:31:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  referred  to  page 2,  line  7,  and  asked                                                               
whether  loans may  be  made  to the  University  of Alaska  (UA)                                                               
system.                                                                                                                         
                                                                                                                                
3:31:29 PM                                                                                                                    
                                                                                                                                
MR. BUTCHER said he was unsure.                                                                                                 
                                                                                                                                
3:32:01 PM                                                                                                                    
                                                                                                                                
JOHN ANDERSON, Weatherization Program Manager, Alaska Housing                                                                   
Finance Corporation (AHFC), Department of Revenue (DOR), opined                                                                 
the intention was to include [the UA system].                                                                                   
                                                                                                                                
MR. BUTCHER advised that this question and another would be                                                                     
addressed as the bill progresses.                                                                                               
                                                                                                                                
3:33:14 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT closed public testimony after ascertaining that                                                                
no one else wished to testify.                                                                                                  
                                                                                                                                
3:33:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN moved to adopt Amendment 1, labeled 26-                                                                 
GH2903\A.1, Cook, 2/5/10, which read:                                                                                           
                                                                                                                                
     Page 1, line 3:                                                                                                            
          Delete "municipalities"                                                                                             
          Insert "regional educational attendance areas,                                                                      
     municipalities,"                                                                                                         
                                                                                                                                
     Page 2, line 7, following "to":                                                                                            
          Insert "regional educational attendance areas,"                                                                       
                                                                                                                                
     Page 2, line 9:                                                                                                            
          Delete "the state or by municipalities in"                                                                            
          Insert "the regional educational attendance                                                                           
     areas, municipalities or their subdivisions, or"                                                                           
                                                                                                                                
     Page 2, line 15, following "Before":                                                                                       
          Insert "a regional educational attendance area,                                                                       
     a"                                                                                                                         
                                                                                                                                
     Page 2, line 16, following "section, the":                                                                                 
         Insert "regional educational attendance area"                                                                          
                                                                                                                                
     Page 2, line 24, following "All":                                                                                          
          Insert "regional educational attendance areas                                                                         
     and"                                                                                                                       
                                                                                                                                
     Page 2, line 25, following "section.":                                                                                     
          Insert "The corporation shall set out the terms                                                                       
     of a loan to a regional educational attendance area in                                                                     
     a loan agreement or similar document."                                                                                     
                                                                                                                                
     Page 3, line 5, following "to":                                                                                            
          Insert "a regional educational attendance area or                                                                     
     to"                                                                                                                        
                                                                                                                                
     Page 3, line 7, following "that the":                                                                                      
          Insert "regional educational attendance area or"                                                                      
                                                                                                                                
     Page 3, line 9, following "and":                                                                                           
          Insert "a regional educational attendance area                                                                        
     or"                                                                                                                        
                                                                                                                                
     Page 3, line 10, following "from that":                                                                                    
          Insert "regional educational attendance area or"                                                                      
                                                                                                                                
     Page 3, line 19, following "state.":                                                                                       
          Insert   "The   superintendent   of   a   regional                                                                    
     educational attendance  area, at  the direction  of the                                                                    
     regional  educational  attendance   school  board,  may                                                                    
     borrow  from the  corporation  under  this section  for                                                                    
     buildings owned by the regional educational area."                                                                         
                                                                                                                                
     Page 3, line 23, following "A":                                                                                            
          Insert "regional educational attendance area or"                                                                      
                                                                                                                                
     Page 4, lines 15 - 16:                                                                                                     
          Delete "for energy efficiency improvements to                                                                         
     state and municipal buildings in the state"                                                                                
                                                                                                                                
     Page 4, line 16, following "finance the":                                                                                  
          Delete "other"                                                                                                        
                                                                                                                                
                                                                                                                                
3:34:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT objected for the purpose of discussion.                                                                        
                                                                                                                                
REPRESENTATIVE  PETERSEN  explained  that   the  purpose  of  the                                                               
amendment was  to include more  buildings that might  qualify for                                                               
the  loan  program  by adding  "regional  educational  attendance                                                               
area" where applicable.                                                                                                         
                                                                                                                                
MR. BUTCHER, in response to Co-Chair Millett, confirmed that the                                                                
intent of the bill was to include regional educational                                                                          
attendance areas (REAs).                                                                                                        
                                                                                                                                
3:35:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT removed her objection.  There being no further                                                                 
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
3:35:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN moved to adopt Amendment 2, labeled 26-                                                                 
GH2903\A.2, Cook, 2/8/10, which read:                                                                                           
                                                                                                                                
     Page 1, line 3:                                                                                                            
          Delete "municipalities"                                                                                             
         Insert "Native organizations, municipalities,"                                                                       
                                                                                                                                
     Page 2, line 7, following "to":                                                                                            
          Insert "Native organizations,"                                                                                        
                                                                                                                                
     Page 2, line 9:                                                                                                            
          Delete "state or by municipalities in"                                                                                
          Insert "Native organizations, municipalities or                                                                       
     their subdivisions, or"                                                                                                    
                                                                                                                                
     Page 2, line 15, following "Before":                                                                                       
          Insert "a Native organization,"                                                                                       
                                                                                                                                
      Page 2, line 16, following the second occurrence of                                                                       
     "the":                                                                                                                     
          Insert "Native organization or"                                                                                       
                                                                                                                                
     Page 2, line 24, following "All":                                                                                          
          Insert "Native organizations and"                                                                                     
                                                                                                                                
     Page 2, line 25, following "section.":                                                                                     
          Insert "The corporation shall set out the terms                                                                       
     of a loan to a Native organization in a loan agreement                                                                     
     or similar document."                                                                                                      
                                                                                                                                
     Page 3, line 5, following "to":                                                                                            
          Insert "a Native organization or to"                                                                                  
                                                                                                                                
       Page 3, line 7, following the first occurrence of                                                                        
     "the":                                                                                                                     
          Insert "Native organization or"                                                                                       
                                                                                                                                
     Page 3, line 9, following "and":                                                                                           
          Insert "a Native organization or"                                                                                     
                                                                                                                                
      Page 3, line 10, following the second occurrence of                                                                       
     "that":                                                                                                                    
          Insert "Native organization or"                                                                                       
                                                                                                                                
     Page 3, line 19, following "state.":                                                                                       
          Insert "The board of directors or council of a                                                                        
      Native organization may borrow from the corporation                                                                       
      under this section for buildings owned by the Native                                                                      
     organization."                                                                                                             
                                                                                                                                
     Page 3, line 23, following "A":                                                                                            
          Insert "Native organization or"                                                                                       
                                                                                                                                
     Page 3, line 27, following "section,":                                                                                     
          Insert "(1)"                                                                                                          
                                                                                                                                
     Page 3, line 28:                                                                                                           
          Delete "(1)"                                                                                                          
          Insert "(A)"                                                                                                          
                                                                                                                                
     Page 3, line 30:                                                                                                           
          Delete "(2)"                                                                                                          
          Insert "(B)"                                                                                                          
                                                                                                                                
     Page 4, line 1:                                                                                                            
          Delete "(3)"                                                                                                          
          Insert "(C)"                                                                                                          
                                                                                                                                
     Page 4, line 2:                                                                                                            
          Delete "(4)"                                                                                                          
          Insert "(D)"                                                                                                          
                                                                                                                                
     Page 4, line 5:                                                                                                            
          Delete "(5)"                                                                                                          
          Insert "(E)"                                                                                                          
                                                                                                                                
     Page 4, lines 4 - 5:                                                                                                       
          Delete "(1) - (4) of this subsection."                                                                                
          Insert "(A) - (D) of this paragraph;                                                                                  
               (2)  "council" or "Native council" means a                                                                       
      council organized under federal law to represent an                                                                       
        Alaska Native community or Indian reserve in the                                                                        
     state;                                                                                                                     
               (3)  "Native organization" means a Native                                                                        
     council or nonprofit corporation organized by a Native                                                                     
     council."                                                                                                                  
                                                                                                                                
     Page 4, lines 15 - 16:                                                                                                     
          Delete "for energy efficiency improvements to                                                                         
     state and municipal buildings in the state"                                                                                
                                                                                                                                
                                                                                                                                
REPRESENTATIVE PETERSEN  explained that  Amendment 2 adds  to the                                                               
loan program Native organizations that  in some rural areas serve                                                               
as the only organization in the community.                                                                                      
                                                                                                                                
3:36:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  MILLETT objected.    She asked  Mr.  Butcher to  define                                                               
"Native organizations" under statute.                                                                                           
                                                                                                                                
3:36:22 PM                                                                                                                    
                                                                                                                                
MR.   BUTCHER  said   although  AHFC   supports  getting   energy                                                               
efficiency  done in  as many  areas as  possible, its  concern is                                                               
that this  "goes in  a different  direction than  the legislation                                                               
has been  drafted for."   Because the proposed bill  was approved                                                               
by the  U.S. Department of  Energy (DOE) specifically  for public                                                               
buildings,  he  cautioned that  the  amendment  could bring  some                                                               
issues that would require further approval from DOE.                                                                            
                                                                                                                                
CO-CHAIR  EDGMON   understood  the  purpose  of   the  amendment;                                                               
however, he  said he  does not know  of any  Native organizations                                                               
that  own a  public building.   He  agreed with  Mr. Butcher  and                                                               
opposed the amendment.                                                                                                          
                                                                                                                                
3:38:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT maintained her objection to Amendment 2.                                                                       
                                                                                                                                
3:38:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN withdrew Amendment 2.                                                                                   
                                                                                                                                
                                                                                                                                
MR.  BUTCHER assured  the committee  that  AHFC is  very good  at                                                               
working  with  small  communities  and  will  ensure  that  every                                                               
community can participate in the program.                                                                                       
                                                                                                                                
CO-CHAIR EDGMON  asked whether this program  would create housing                                                               
authorities.                                                                                                                    
                                                                                                                                
3:40:01 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON stated AHFC's position  that stock owned by regional                                                               
housing  authorities  would  not  be  able  to  qualify  in  this                                                               
program.     However,  regional  housing  authorities   have  the                                                               
potential to do the work in many communities.                                                                                   
                                                                                                                                
                                                                                                                                
CO-CHAIR EDGMON asked whether there  are sufficient other funding                                                               
streams for housing authorities.                                                                                                
                                                                                                                                
MR.  ANDERSON  observed  that   the  weatherization  program  and                                                               
federal Housing  and Urban Development (HUD)  programs provide "a                                                               
vast  amount of  money  that  is going  to  the regional  housing                                                               
authorities right now."  He  re-stated that AHFC will do whatever                                                               
it can  to encourage  the housing authorities  to get  trained so                                                               
they can participate in the work.   In fact, much of the building                                                               
stock in rural Alaska is built  on a residential system, and with                                                               
minimal training  most regional housing authorities  will be able                                                               
to participate.                                                                                                                 
                                                                                                                                
3:41:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EDGMON noted  the definition  of  public facilities  in                                                               
other bills may need to be re-visited.                                                                                          
                                                                                                                                
3:42:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  asked to  confirm  that  the intent  is  to                                                               
include the UA system.                                                                                                          
                                                                                                                                
3:42:32 PM                                                                                                                    
                                                                                                                                
MR. BUTCHER said yes.  He  offered to contact the committee after                                                               
AHFC  conducts  discussions with  the  Office  of Management  and                                                               
Budget (OMB).   He further explained that after  AHFC figured out                                                               
how  to  leverage this  program  to  $250  million, it  began  to                                                               
include more participation by different  areas of government, and                                                               
there was some confusion about what  was included.  Now, with the                                                               
revolving aspect  of this program,  AHFC will be able  to include                                                               
every  building that  it  wants  to do,  including  the  UA.   In                                                               
further  response to  Representative Tuck,  Mr. Butcher  said, "A                                                               
qualified yes."                                                                                                                 
                                                                                                                                
REPRESENTATIVE TUCK asked for reasons UA would not be included.                                                                 
                                                                                                                                
MR. BUTCHER offered no reasons.                                                                                                 
                                                                                                                                
3:44:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT suggested the committee  send a letter of intent                                                               
to the finance committee with the bill.                                                                                         
3:44:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK agreed.                                                                                                     
                                                                                                                                
3:45:21 PM                                                                                                                    
                                                                                                                                
JACK  KREINHEDER, Chief  Policy Analyst,  Office of  Management &                                                               
Budget, Office of  the Governor, informed the  committee that the                                                               
administration supports  the inclusion of  the UA.   However, the                                                               
UA  may have  its own  program  and he  suggested contacting  the                                                               
university to assess its interest.                                                                                              
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  TUCK asked  whether the  UA was  excluded as  the                                                               
bill is now written.                                                                                                            
                                                                                                                                
3:47:12 PM                                                                                                                    
                                                                                                                                
MR. KREINHEDER advised  that he is not a lawyer,  but opined that                                                               
UA facilities are state facilities and would be included.                                                                       
                                                                                                                                
3:47:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  stated he was  comfortable sending  a letter                                                               
to the finance committee.                                                                                                       
                                                                                                                                
MR. KREINHEDER  provided written information that  was previously                                                               
requested by the committee.                                                                                                     
                                                                                                                                
3:48:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EDGMON  moved  to  report   HB  296,  amended,  out  of                                                               
committee  with individual  recommendations,  zero fiscal  notes,                                                               
and  the  accompanying   letter  of  intent.     There  being  no                                                               
objection,  CSHB 296(ENE)  was  reported from  the House  Special                                                               
Committee on Energy.                                                                                                            
                                                                                                                                

Document Name Date/Time Subjects
HB 31 sectional summary.PDF HENE 3/24/2009 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 31
HB0031A.pdf HENE 2/23/2010 3:00:00 PM
HB 31
HB 31 Amendment Sectional Summary.PDF HENE 2/16/2010 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 31
HB 31 sponsor statement.PDF HENE 3/24/2009 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 31
HB 31 net metering map.PDF HENE 3/24/2009 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 31
HB 31 NHA Waterpower.PDF HENE 2/23/2010 3:00:00 PM
HB 31
HB 296 SEP bonds Sponsor Statement.pdf HENE 2/9/2010 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 296
HB0296-1-1-011910-REV-N.pdf HENE 2/9/2010 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 296
HB0296-2-1-011910-DOT-N.pdf HENE 2/9/2010 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 296
HB 296 Amendment 1.PDF HENE 2/23/2010 3:00:00 PM
HB 296
AM#2 HB296.pdf HENE 2/9/2010 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 296
HB0296A.pdf HENE 2/23/2010 3:00:00 PM
HB 296
HB 303 Sponsor Statement.PDF HENE 2/16/2010 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 303
HB 303 Sectional Summary.PDF HENE 2/16/2010 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 303
HB303-REV-AHFC-2-14-10 AFHC Small Business Energy Loans.pdf HENE 2/16/2010 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 303
HB0303A.pdf HENE 2/16/2010 3:00:00 PM
HENE 2/23/2010 3:00:00 PM
HB 303
HJR045A.pdf HENE 2/23/2010 3:00:00 PM
Gov Cap and Trade.pdf HENE 2/23/2010 3:00:00 PM
Energy Committee Agenda 02232010.pdf HENE 2/23/2010 3:00:00 PM
HB 303 NFIB Support.pdf HENE 2/23/2010 3:00:00 PM
HB 303
HB 303 Amendment 1 Petersen.PDF HENE 2/23/2010 3:00:00 PM
HB 303
HJR 45 fiscal note.pdf HENE 2/23/2010 3:00:00 PM