02/20/2020 10:15 AM House ENERGY

                  HB 232-MUNICIPAL TAX CREDITS                                                                              
                                                                                                                                
11:30:45 AM                                                                                                                   
                                                                                                                                
CHAIR HOPKINS  announced that the  final order of  business would                                                               
be  HOUSE BILL  NO.  232, "An  Act relating  to  a municipal  air                                                               
quality  improvement  tax credit;  and  relating  to a  municipal                                                               
energy efficient new construction tax credit."                                                                                  
                                                                                                                                
11:31:09 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  moved to  adopt the  proposed committee                                                               
substitute for  HB 232, Version  31-LS1355\S, Klein,  2/14/20, as                                                               
the  working draft.   There  being  no objection,  Version S  was                                                               
before the committee.                                                                                                           
                                                                                                                                
11:31:31 AM                                                                                                                   
                                                                                                                                
JOE G.  HARDENBROOK, Staff, Representative Grier  Hopkins, Alaska                                                               
State  Legislature, on  behalf of  Representative Hopkins,  prime                                                               
sponsor  of  HB 232,  paraphrased  the  overview of  the  changes                                                               
proposed under  Version S [included  in members'  packets], which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
        The CS adopted by the House Special Committee on                                                                        
     Energy makes the following changes:                                                                                        
                                                                                                                                
     First, it  removes the restriction  on the  Air Quality                                                                    
     Improvement   Tax  Credits   are   only  available   to                                                                    
     communities  under  a  state  or  federal  air  quality                                                                    
     improvement  plan.   This  CS  will  make  these  tools                                                                    
     available to  any community who wishes  to utilize them                                                                    
     to address local air quality concerns.                                                                                     
                                                                                                                                
     Second,  this CS  inserts clear  language  in both  tax                                                                    
     credit  sections to  make clear  that  the credits  are                                                                    
     available   for    new   construction   as    well   as                                                                    
     refurbishments,   remodels  and   renovations.     This                                                                    
     flexibility  will allow  municipalities to  incentivize                                                                    
     not only new construction  that improves air quality or                                                                    
     energy   efficiency,    but   also    renovations   and                                                                    
     refurbishments of existing structures.                                                                                     
                                                                                                                                
11:32:56 AM                                                                                                                   
                                                                                                                                
AARON  WELTERLEN,   Past  President,  Interior   Alaska  Building                                                               
Association, directed attention  to a letter of  support from the                                                               
Alaska State Home  Building Association which had  a long history                                                               
of  support for  energy efficient  construction.   He added  that                                                               
they also supported adoption of  a statewide residential building                                                               
code to include energy efficiency  standards, which would resolve                                                               
many of the  problems addressed by the proposed  legislation.  He                                                               
offered  his belief  that the  tax  credit would  be an  economic                                                               
stimulus to  any area of  Alaska, especially  to any area  with a                                                               
weak housing and construction market.                                                                                           
                                                                                                                                
11:35:00 AM                                                                                                                   
                                                                                                                                
MARNA SANFORD,  Fairbanks North  Star Borough  Assembly, reported                                                               
that  the Fairbanks  North Star  Borough Assembly  had identified                                                               
both  provisions of  the  proposed bill  as  its top  legislative                                                               
priorities for this legislative session.   She shared some of the                                                               
history for  air quality issues,  noting that the  Fairbanks area                                                               
was now classified  as "serious non-attainment."   She noted that                                                               
this   created   serious   health  risks,   with   economic   and                                                               
environmental  impacts.     She   declared  that   this  proposed                                                               
legislation  was  another  incentive  for people  to  make  their                                                               
heating devices the  most efficient and the best  for air quality                                                               
in the  area.   She spoke in  support of the  tax credit  for new                                                               
construction to help with air quality for a better community.                                                                   
                                                                                                                                
CHAIR  HOPKINS   clarified  that   this  applied   to  commercial                                                               
construction and home building and  did not limit communities for                                                               
use of the tax credits.                                                                                                         
                                                                                                                                
MS. SANFORD,  in response to Representative  Spohnholz, explained                                                               
that, through a  voter initiative, the borough no  longer had the                                                               
ability to  regulate air quality  standards, so, in an  effort to                                                               
get the  community into  compliance, the  EPA would  penalize the                                                               
largest single source  and the resulting penalty  would be passed                                                               
on to the consumers through higher bills.                                                                                       
                                                                                                                                
11:39:02 AM                                                                                                                   
                                                                                                                                
CHAIR HOPKINS, in response to  Representative Rauscher, said that                                                               
each municipality would  create its own criteria  as the proposed                                                               
bill  did   not  mandate  the   structure,  the  value,   or  the                                                               
application  of  the  tax  credits  but would  leave  it  to  the                                                               
community to solve  their own problems and  incentivize their own                                                               
economic development.                                                                                                           
                                                                                                                                
11:39:54 AM                                                                                                                   
                                                                                                                                
CHAIR  HOPKINS  opened  public  testimony   on  HB  232.    After                                                               
ascertaining  that there  was no  one who  wished to  testify, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
11:40:53 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  moved to  report CSHB 232,  Version 31-                                                               
LS1355\S,  Klein,  2/14/20,  out  of  committee  with  individual                                                               
recommendations and  the accompanying  zero fiscal notes.   There                                                               
being  no  objection, CSHB  232(ENE)  was  moved from  the  House                                                               
Special Committee on Energy.