Legislature(2015 - 2016)BARNES 124

03/20/2015 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 120 TRANSPORT NETWORK SVES. & WORKERS COMP TELECONFERENCED
Heard & Held
+ HB 58 ELIGIBILITY FOR AK ENERGY EFFIC LOANS TELECONFERENCED
Moved CSHB 58(L&C) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 123 ESTABLISH MARIJUANA CONTROL BOARD TELECONFERENCED
Heard & Held
          HB 58-ELIGIBILITY FOR AK ENERGY EFFIC LOANS                                                                       
                                                                                                                                
4:42:54 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  final order of business  would be                                                              
HOUSE BILL  NO. 58,"An Act  making an entity  that is  exempt from                                                              
federal  taxation  under  26 U.S.C.  501(c)(3)  (Internal  Revenue                                                              
Code) and  a federally recognized  tribe eligible for a  loan from                                                              
the Alaska  energy efficiency  revolving  loan fund; and  relating                                                              
to loans from the Alaska energy efficiency revolving loan fund."                                                                
[Before the committee was CSHB 58 (ENE)].                                                                                       
                                                                                                                                
4:42:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS, Alaska  State Legislature,  stated                                                              
the  proposed   CSHB  58(ENE)   relates   to  the  Alaska   Energy                                                              
Efficiency  Revolving Loan  Fund (AEERLF)  and to the  eligibility                                                              
of  the  fund.    The  intent  of  the  bill  was  to  expand  the                                                              
eligibility  for  the revolving  loan  fund from  public  entities                                                              
such  as  school districts,  municipalities,  or  universities  to                                                              
nonprofit  entities including  churches,  soup kitchens,  American                                                              
Legion halls, chambers of commerce and similar entities.                                                                        
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS explained  the  rationale for  this                                                              
bill.   He explained that  the Alaska Energy Efficiency  Revolving                                                              
Loan Fund  (AEERLF) has  been significantly  under used  since its                                                              
inception a  few years ago.   In fact,  only one loan  application                                                              
has been  filed, but a fully  processed and executed loan  has not                                                              
yet been issued  from the fund.   He said that this  loan fund has                                                              
the authority  to bond  up to  $250 million  so significant  value                                                              
and potential  is inherent in  the AEERLF.   He said his  goal was                                                              
to ensure that  this fund benefits Alaska, Alaskans,  and Alaska's                                                              
buildings   as  much  as   possible.     Expanding  the   AEERLF's                                                              
eligibility  to  institutions  that   that  contribute  to  Alaska                                                              
communities such  as nonprofits  can fulfill  that goal.   He said                                                              
this is timely and  harmonious given the budget climate.   Many of                                                              
these nonprofit  organizations have  an operational  strategy that                                                              
often  revolves around  capital  grants or  "free  money" when  it                                                              
comes  to   making  improvements   to  their  physical   plant  or                                                              
buildings,  but  this  era  is largely  coming  to  an  end  since                                                              
limited  grant funding  is available.   This  bill would create  a                                                              
viable means for nonprofit entities to become more self-                                                                        
sufficient  and   independent  in   terms  of  maintaining   their                                                              
facilities  through low-interest  loans.   He  offered his  belief                                                              
that was  the direction the state  needs to go to  help nonprofits                                                              
become  more  independent  and  self-sufficient  when  less  grant                                                              
money and capital funding is available.                                                                                         
                                                                                                                                
4:45:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    JOSEPHSON   asked    for    reasons   for    the                                                              
underutilization of the fund.                                                                                                   
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  explained that  two  years ago  he                                                              
contacted every  municipal government  and school district  in his                                                              
legislative  district once he  became aware  of the Alaska  Energy                                                              
Efficiency Revolving  Loan Fund (AEERLF).  Since  his district was                                                              
rural,  he had  lots  of contacts  with  school administrators  or                                                              
city  administrators to  advise them  that this  program could  be                                                              
helpful, especially  given the high energy costs  in his district.                                                              
For example, residents  in his district can pay $6  per gallon for                                                              
heating  oil   and  $.60  per   kilowatt  hour  for   electricity.                                                              
However, there  was little  interest in the  program since  in the                                                              
last two  years public entities  could reliably turn to  the state                                                              
for capital  grants.   Therefore, these  entities would  not apply                                                              
for low interest  loans since they could obtain  "free money" from                                                              
the state.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  suggested  that  public  and  non-                                                              
profit  entities will  need  to become  more  self-efficient.   He                                                              
suggested  that more  entities will  look  for low-interest  loans                                                              
since  the spigot  of state  funds "has  been turned  off."   Thus                                                              
this bill could be the vehicle to direct attention to the low-                                                                  
interest loans.                                                                                                                 
                                                                                                                                
VICE CHAIR  HUGHES remarked  that the free  money not going  to be                                                              
available, she  might expect that  more public entities  will step                                                              
up.  She asked  how the applications will be prioritized  if a big                                                              
rush of  public entities  and nonprofit  organizations sought  the                                                              
low-interest loans.                                                                                                             
                                                                                                                                
4:48:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  referred to page 5,  lines 10-13 to                                                              
proposed Section  7, subsection (k),  which was language  added by                                                              
the previous  committee.  This  provision would create  a two-tier                                                              
prioritization  or preference  for applications,  for example,  if                                                              
there was  a "gold rush" and  every nonprofit and  public entities                                                              
applied and  the Alaska Housing  Finance Corporation had  too many                                                              
applications, subsection  (k) would  create a priority  for public                                                              
entities.   He  said that  this language  was added  in the  House                                                              
Special  Committee on  Energy and  he fully  endorsed the  change.                                                              
In the  event the AHFC  did not have  enough available  capital or                                                              
administrative  capacity to process  the barrage of  applications,                                                              
the   AHFC   would   give   preference   and   prioritize   public                                                              
applications  over  nonprofit  applications;   however,  if  funds                                                              
remained after public  entities were served, the  nonprofits would                                                              
also be eligible.                                                                                                               
                                                                                                                                
4:49:37 PM                                                                                                                    
                                                                                                                                
VICE CHAIR  HUGHES asked whether  the sponsor had  been approached                                                              
by nonprofits or how this bill came about.                                                                                      
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS answered  that this  came about  in                                                              
part since  he was  schlepping around  the district  to point  out                                                              
this great  program.   He talked to  a nonprofit administrator  in                                                              
Sitka, but  like most nonprofits,  every $500 was  very important.                                                              
This organization  had  a lot of  physical assets,  many of  which                                                              
had single  pane windows and were  built without insulation.   The                                                              
nonprofit  organization expressed  an interest  in insulating  the                                                              
buildings  since the  return  on investment  is  amazing, but  the                                                              
organization did not  have enough access to cash to  do so.  Thus,                                                              
the  problem  was access  to  capital.    He recalled  the  Alaska                                                              
Energy  Efficiency  Revolving  Loan   Fund  (AEERLF)  had  a  $250                                                              
million  balance for  this very  purpose.   He  suggested that  it                                                              
made  sense to  connect "A"  and "B."   He  researched this  issue                                                              
further by  e-mailing the Foraker Group  since it tends  to be the                                                              
authority  on nonprofit  administration.   He  said he  discovered                                                              
the  Foraker  Group  had  been  working  on  a  pilot  project  in                                                              
Fairbanks  connecting a  nonprofit entity  to low-interest  loans.                                                              
He described  the aforementioned  project  that was a  partnership                                                              
between  the  Foraker Group,  Rasmuson  Foundation,  Cold  Climate                                                              
Housing Research Center,  and the Denali Commission.   This led to                                                              
collaborating and drafting the bill.                                                                                            
                                                                                                                                
4:53:12 PM                                                                                                                    
                                                                                                                                
VICE CHAIR HUGHES opened public testimony on HB 58.                                                                             
                                                                                                                                
4:53:26 PM                                                                                                                    
                                                                                                                                
DANIEL  POWERS, Coordinator,  Fairbanks  Nonprofit Retrofit  Pilot                                                              
Program,  Cold Climate  Housing  Research  Center (CCHRC),  stated                                                              
that  he  has  been the  project  coordinator  for  the  Fairbanks                                                              
Nonprofit  Retrofit  Pilot  Program.     He  explained  that  this                                                              
project  will retrofit  14  buildings for  10  building owners  to                                                              
assist   tribal  and   nonprofit   organizations  improve   energy                                                              
efficiency   through   energy  and   facility   planning,   energy                                                              
auditing,  scoping and  design.   Many elements  are necessary  to                                                              
bring  an energy  efficiency  project  from  an idea  through  the                                                              
lending  process,  which  HB  58   addresses,  to  completion  and                                                              
monitoring.   He offered his  belief that HB  58 was a  great step                                                              
in direction  of helping  nonprofits capitalize  their own  energy                                                              
efficiency  resources, especially  since these nonprofits  provide                                                              
essential  services for some  of the  most vulnerable  populations                                                              
in Alaska.  He  characterized HB 58 as a great  idea that can help                                                              
reduce  the state's  historical  grants to  nonprofits and  change                                                              
the culture for  energy efficiency improvements.   This bill could                                                              
enable tribal  entities and  nonprofits an  opportunity to  reduce                                                              
operational  costs.   He  concluded  by  stating  he is  a  strong                                                              
supporter of HB 58.                                                                                                             
                                                                                                                                
4:55:48 PM                                                                                                                    
                                                                                                                                
VICTORIA MOROZOVA,  Chair, Alaska Youth for  Environmental Action,                                                              
Anchorage  Chapter,  stated  that  she  is a  student  at  Stellar                                                              
Secondary School  and would like to  testify in support  of HB 58.                                                              
She  asked   members  to   consider  the   importance  of   energy                                                              
efficiency  to lower  the carbon  footprint, but  to decrease  the                                                              
amount  of  money  going  to  waste  [due  to  a  lack  of  energy                                                              
efficiency].   Further,  she  asked to  emphasize  the success  of                                                              
Alaska  Energy Efficiency  Revolving  Loan Fund  (AEERLF) and  the                                                              
benefits the  fund could bring  to tribal and nonprofit  entities.                                                              
For example,  the faculty  at Stellar  Secondary School  said they                                                              
could  use  the  loan  fund  to   invest  in  more  efficient  LED                                                              
lighting,  replace windows  with more energy  efficient ones,  and                                                              
could  install a  better  heating  system to  save  money for  the                                                              
Anchorage School  District.  She suggested that  those funds could                                                              
be better used for  education, which as a student  she believes is                                                              
very important.  She urged members to please pass HB 58.                                                                        
                                                                                                                                
4:57:48 PM                                                                                                                    
                                                                                                                                
CARMELA  FLYNN,  Member,  Alaska Youth  for  Environmental  Action                                                              
(AYFEA),  stated  that she  was  a  sophomore at  Hutchinson  High                                                              
School in  Fairbanks.  She  asked to testify  in support of  HB 58                                                              
since it  could upgrade  energy systems to  many of  the buildings                                                              
she regularly uses,  including her church, library,  and hospital.                                                              
She suggested  that having the loans  to upgrade her  school could                                                              
help  them upgrade  equipment.   She  said that  the AEERLF  loans                                                              
also help  to raise awareness of  the more efficient ways  to save                                                              
energy, reduce fuel  emissions and aid climate change.   She urged                                                              
members to pass HB 58.                                                                                                          
                                                                                                                                
4:58:51 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR  HUGHES, after  first  determining  no one  wished  to                                                              
testify, closed public testimony on HB 58.                                                                                      
                                                                                                                                
4:59:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TILTON  moved  to  adopt  the  proposed  committee                                                              
substitute (CS)  for HB 58, labeled 29-LS0254\F,  Nauman, 3/10/15,                                                              
as the  working document.   There  being no  objection, Version  F                                                              
was before the committee.                                                                                                       
                                                                                                                                
4:59:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TILTON  moved the  proposed  committee  substitute                                                              
(CS)  for HB  58,  Version F,  out  of committee  with  individual                                                              
recommendations  and the  accompanying fiscal  note.  There  being                                                              
no objection, CSHB  58(L&C) was reported from the  House Labor and                                                              
Commerce Standing Committee.                                                                                                    

Document Name Date/Time Subjects
HB123 Draft Proposed Blank CS ver W .pdf HL&C 3/20/2015 3:15:00 PM
HB 123
HB123 Draft Proposed Amendment ver W.1.pdf HL&C 3/20/2015 3:15:00 PM
HB 123
HB123 Draft Proposed Amendment ver W.2.pdf HL&C 3/20/2015 3:15:00 PM
HB 123
HB123 Draft Proposed Amendment-Josephson.PDF HL&C 3/20/2015 3:15:00 PM
HB 123
HB123 Follow-up from DCCED-Marijuana Agencies Other States.pdf HL&C 3/20/2015 3:15:00 PM
HB 123
HB123 Supporting Documents-ABC Board Recommendations for Implementation of AS 17.38.pdf HL&C 3/20/2015 3:15:00 PM
HB 123
HB120 ver A.pdf HL&C 3/20/2015 3:15:00 PM
HB 120
HB120 Sponsor Statement.pdf HL&C 3/20/2015 3:15:00 PM
HB 120
HB120 Fiscal Note-DOLWD-WC-02-27-15.pdf HL&C 3/20/2015 3:15:00 PM
HB 120
HB120 Supporting Document - Chugiak-Eagle River Chamber of Commerce.pdf HL&C 3/20/2015 3:15:00 PM
HB 120
HB120 Supporting Documents-UBER Driver Screening.PDF HL&C 3/20/2015 3:15:00 PM
HB 120
HB120 Opposing Documents-Letter NAMIC 2-26-2015.pdf HL&C 3/20/2015 3:15:00 PM
HB 120
HB58 ver S.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Sponsor Statement.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Sectional Analysis.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Fiscal Note-DOR-AHFC-02-10-15.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Summary of Changes ver W to ver S.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Supporting Documents-Letter Joel Neimeyer 2-9-2015.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Supporting Documents-Letter Tanana Chiefs Conference.PDF HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Supporting Documents-Report Energy Efficiency of Public Buildings-Rural Retrofits 11-21-14.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Supporting Documents-Whitepaper Public Facilities 11-7-2012.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Supporting Documents-Guide AEERLFP Oct 2014.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Supporting Documents-Letter CCS, Catholic Diocese of Juneau 2-9-2015.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Supporting Documents-Letter Gavin Dixon 2-9-2015.pdf HL&C 3/20/2015 3:15:00 PM
HB 58
HB58 Draft Proposed Blank CS ver F.pdf HL&C 3/20/2015 3:15:00 PM
HB 58