Legislature(2017 - 2018)BARNES 124
03/31/2018 01:00 PM LABOR & COMMERCE
Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
Download Mp3. <- Right click and save file as
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HB 374-ON-BILL FINANCING OF ENERGY IMPROVEMENTS 1:21:50 PM CHAIR KITO announced that the next order of business would be HOUSE BILL NO. 374, "An Act relating to on-bill financing by an electric or gas distribution utility for certain energy efficiency and conservation improvements." 1:22:17 PM REPRESENTATIVE WOOL moved to adopt the CS for HB 374 as the working document. CHAIR KITO objected for discussion. 1:22:41 PM CAITLYN ELLIS, Staff, Representative Sam Kito, Alaska State Legislature, presented the changes in the CS. She paraphrased the explanation of changes [included in committee packet], which reads as follows [original punctuation provided]: MOVED meter conservation charge language from section 42.05.750 to the meter conservation charge section (Page 2, lines 10-17) and DELETED meter conservation charge language unnecessarily repeated in the definition of meter conservation charge (Page 5, lines 6-7). Change requested by bill drafter- cosmetic change only. Page 2, line 27 DELETED "AS 42.05.261," (mistaken cross reference) Page 3, lines 25-28 DELETED most of Sect. 42.05.754 Rental Property. With deletion, only landlords that are responsible for the entire utility bill can enter into an on-bill financing agreement for rental property; and tenants cannot enter into on-bill financing agreements at all. This led to the following conforming DELETIONS: • "a customer or landlord of' on Page 1, line 8; • "or landlord" Page 2, line 19; • "a tenant or subsequent tenant of the residence or building under AS 42.05.754." Page 2, line 21; • "a purchaser's obligation to notify a tenant under AS 42.05.754 if the purchase leases the property." Page 3, line 16; and • "or landlord of a utility customer" Page 4, line 27. Page 2, lines 8-9 INSERTED language making it explicitly clear that the utility can choose what type of improvements the utility will finance under an on- bill program. This was the bill's intent all along. DELETED "an electric or gas distribution" before "utility" nine places in the bill (including the title). The change would allow a district heating utility to utilize on-bill financing. Page 4, line 31 REWORDED definition of "energy conservation system". Version N: the new fuel switched to must be more efficient and not increase direct greenhouse gas emissions. Version E: the new fuel still must not increase greenhouse gas emissions, and must either be more efficient OR cheaper. 1:25:19 PM REPRESENTATIVE JOSEPHSON asked about weatherization considerations in the CS. MS. ELLIS answered that weatherization considerations were not included in the CS. She deferred to Mr. Earl. 1:26:10 PM ROB EARL, Staff, Representative Adam Wool, Alaska State Legislature, presented HB 374 on behalf of Representative Wool, prime sponsor. He answered that he agreed that weatherization is not included. CHAIR KITO added that one change to the bill is to make sure the utility provider can approve the measures that can be financed. REPRESENTATIVE WOOL said that the original intent was to facilitate the conversion to more efficient fuel sources. REPRESENTATIVE JOSEPHSON asked about the concerns expressed by Alaska Electric Light and Power (AELP). MS. ELLIS said the new definition mostly resolves those concerns. She added AELP had been involved in the change. 1:29:02 PM CHAIR KITO removed his objection to adopting the CS to HB 374. 1:29:24 PM CHAIR KITO announced that public testimony on HB 374 was still open from the previous hearing. 1:29:37 PM DUFF MITCHELL, Manager Director, Juneau Hydro Power; Chairman, Juneau Commission on Sustainability, testified in support of HB 374. He described some of the innovative heating systems in the state. He stated he supports Version E of the proposed bill. He said the new language is "utility agnostic". He said he believes the bill supports the state's energy policies. 1:33:38 PM CHAIR KITO closed public testimony. 1:33:51 PM REPRESENTATIVE WOOL moved to report CS for HB 374 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered.