Legislature(2017 - 2018)CAPITOL 17

02/14/2017 10:15 AM House ENERGY

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Audio Topic
10:17:58 AM Start
10:18:23 AM HB81
10:25:46 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved CSHB 81(ENE) Out of Committee
         HB 81-AK ENERGY EFFICIENCY LOANS: ELIGIBILITY                                                                      
10:18:23 AM                                                                                                                   
CHAIR  WOOL announced  that the  only order of  business would  be                                                              
HOUSE BILL  NO. 81, "An Act making  an entity that is  exempt from                                                              
federal taxation  under 26  U.S.C. 501(c)(3),  (4), (6),  (12), or                                                              
(19)  (Internal Revenue  Code) and  a  federally recognized  tribe                                                              
eligible for  a loan from  the Alaska energy efficiency  revolving                                                              
loan fund;  relating to  loans from  the Alaska energy  efficiency                                                              
revolving loan fund;  and relating to the annual  report published                                                              
by the Alaska Housing Finance Corporation."                                                                                     
10:18:41 AM                                                                                                                   
CHAIR WOOL re-opened public testimony.                                                                                          
10:18:53 AM                                                                                                                   
CHRIS ROSE,  Executive Director,  Renewable Energy Alaska  Project                                                              
(REAP),  explained that  REAP was  a statewide  coalition of  more                                                              
than 80  organizations which supported  more renewable  energy and                                                              
energy efficiency  in the state.   He declared support  for HB 81,                                                              
and stated that  energy efficiency worked, and it "saves  a ton of                                                              
money  for the  community"  which  helps the  state  economy.   He                                                              
reported that the  average savings in the residential  program was                                                              
30 percent,  and he  opined that  there could  be similar  savings                                                              
for public  and other  commercial buildings.   He stated  that, as                                                              
this proposed bill  addressed tribal and non-profit  buildings, it                                                              
could also  make these  buildings more  efficient.  He  emphasized                                                              
that this  was "simply a  loan program  [and] AHFC's very  good at                                                              
making loans  and doing the job  at underwriting this money."   He                                                              
opined that  the proposed bill could  make money for the  State of                                                              
Alaska,  as  it  would  be part  of  the  Alaska  Housing  Finance                                                              
Corporation (AHFC)  portfolio.  He pointed out that  this would be                                                              
another tool  for tribal  entities and  non-profits to  make their                                                              
buildings more  energy efficient,  and thereby keeping  more money                                                              
in the economy.                                                                                                                 
10:20:42 AM                                                                                                                   
REPRESENTATIVE RAUSCHER  asked how the AHFC dividend  to the state                                                              
MR.  ROSE  explained  that  Alaska   Housing  Finance  Corporation                                                              
(AHFC)  and Alaska  Industrial  Development  and Export  Authority                                                              
(AIDEA) paid  back dividends from  the loan repayments  which were                                                              
part  of their  portfolios.   He  added that  the loans  resulting                                                              
from proposed  HB 81 would be  part of these portfolios  and would                                                              
potentially increase the dividend.                                                                                              
10:21:39 AM                                                                                                                   
STACY   SCHUBERT,   Director,  Governmental   Affairs   &   Public                                                              
Relations, Alaska  Housing Finance Corporation  (AHFC), Department                                                              
of Revenue, in  response to Representative  Rauscher, acknowledged                                                              
that AHFC  paid a  dividend to  the State  of Alaska,  which added                                                              
$30  million to  the  current budget.    She  explained that  this                                                              
dividend  was based  on activity  from the  mortgages and  returns                                                              
from  investments,  and  was  calculated  as  75  percent  of  the                                                              
adjusted net earnings.                                                                                                          
10:23:09 AM                                                                                                                   
REPRESENTATIVE     JONATHAN    KREISS-TOMKINS,     Alaska    State                                                              
Legislature,  expressed  his  appreciation  for the  diligence  in                                                              
vetting the  proposed bill,  stating that "we're  all on  the same                                                              
team towards the common goal."                                                                                                  
CHAIR WOOL mused  about earlier questions for using  assets of the                                                              
loan,  or depleting  the loan, and  the potential  for not  having                                                              
enough  money  available   for  its  original  intent   to  public                                                              
10:24:17 AM                                                                                                                   
CHAIR WOOL closed public testimony.                                                                                             
10:24:24 AM                                                                                                                   
REPRESENTATIVE  WESTLAKE   offered  his  belief  that   the  money                                                              
realized from energy savings would be spent at the local level.                                                                 
10:25:01 AM                                                                                                                   
REPRESENTATIVE  SPOHNHOLZ  moved  to  report HB  81,  labeled  30-                                                              
LS0353\A,   as  amended,   out   of  committee   with   individual                                                              
recommendations  and the  accompanying zero  fiscal notes.   There                                                              
being  no  objection,  CSHB  81(ENE)  was  moved  from  the  House                                                              
Special Committee on Energy.                                                                                                    

Document Name Date/Time Subjects