Legislature(2017 - 2018)BUTROVICH 205
03/22/2017 08:00 AM Senate EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB87 | |
| SB96 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 87 | TELECONFERENCED | |
| *+ | SB 96 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 87-SCHOOL CONSTRUCTION ENERGY EFFICIENCY STD
8:00:41 AM
CHAIR HUGHES announced that the first order of business would be
SB 87. She said it is the first hearing of the bill.
8:01:21 AM
SENATOR ANNA MACKINNON, Alaska State Legislature, sponsor of SB
87. She related her experience on finance committees and her
current role as the capital budget chair, during which time the
finance committees advanced hundreds of millions of dollars for
construction across the state. SB 87 provides a framework to
advance some of the design work done for public buildings,
specifically education facilities, to create energy efficiency
standards greater than the state is currently applying to
buildings.
She stated that the goal of SB 87 is to make schools more
affordable and maintainable, and to extend the life of public
school facilities. It provides for long-term operating cost
savings. The School Capital Construction Debt Reimbursement Plan
has been suspended and the bill is an opportunity for when that
plan goes back into effect and investment dollars are utilized
to create long-term savings through energy cost savings.
SENATOR MACKINNON spoke of small communities in the state where
there are multiple facilities that could be co-located. A task
force included in SB 87 could establish, together with the
Department of Education and Early Development (DEED), which
entities could be melded together. She provided an example of
co-location of a library and a fire hall in the same building.
Another possibility might be to co-locate health aides in a
school facility.
She said she is starting a conversation about maintaining and
controlling costs and extending the life of public school
facilities, as well as prioritizing classroom infrastructure and
functional design versus just looking good. She noted that her
team has been reaching out to the Association of Alaska School
Boards, to principals and superintendents, to classroom
teachers, to DEED, and to contractors, engineers, and design
firms. Everyone does not agree with everything in the bill.
She heard some districts say that the front of a school building
consumes about 10 percent of design costs, which could be
invested in the classroom instead. She did not want to take away
local control, but would like to see the buildings be energy
efficient, have temperature control standards, and look at co-
location.
8:05:35 AM
BRITTANY HUTCHISON, Staff, Alaska State Legislature, Juneau,
presented the sectional analysis of SB 87. She began with
Section 10:
Section 10 (pg. 8 Line 26 - pg. 11 line 2):
Establishes the Public School Energy Efficiency and
Standardized Components Working Group. Established in
the Department of Education and Early Development for
the purpose of recommending energy efficiency
standards and standardized options for energy
efficient building and equipment components for public
school facilities construction and major maintenance
projects who receive a grant or reimbursement in an
amount equal to 50% or more of the project costs.
a. The working group consists of nine members
appointed by the Commissioner.
b. The working group shall select a chair and vice-
chair. Majority establishes quorum. Decision are made
on majority vote.
c. Develop recommendations appropriate to each climate
zone in the state:
1. Establish energy efficiency standards consistent
with relevant building, plumbing, and electrical
copes.
2. Standardized options for energy efficient building
and equipment components from which school districts
may choose from.
3. Best practices for improving energy efficiency for
existing and newly constructed school facilities in
order to maximize the energy efficiency of buildings
and equipment components.
4. The maximum cost standard for each square foot of
construction of an energy efficient school facility
that uses components identified in (2) of this
subsection. The maximum cost must be appropriate for
designs that prioritize classroom infrastructure and
functional design. The costs must be adjusted for
different regions within each climate zone.
d. The standardized component options must:
1. Result in designs for buildings with a 30 year life
for new construction and 20 years for renovations or
energy efficiency upgrades
2. Achieve economic savings, as measured by a life
cycle cost analysis through the use of standardized
options and fuel cost reductions from energy
efficiency upgrades.
3. Focus the state's investment in education
facilities by prioritizing functional design and
classroom infrastructure.
e. The working group shall complete a report
summarizing their recommendations, and submit the
report electronically.
f. The working group may meet by telephone or
videoconference. They will not receive reimbursement,
compensation or per diem.
g. The working group terminates on the date 18 months
after the effective date of this section.
8:07:07 AM
MS. HUTCHISON continued with Section 9:
Section 9 (pg. 7 line 1 - pg. 8 line 25): Creates a
new section in state law: AS 14.11.104. School
Facility Design and Maintenance Standards. It requires
DEED to:
1. Establish, by regulation, energy efficiency
standards that include standardized options for
building and equipment components, appropriate to each
climate zone in the state for the construction and
major maintenance of school facilities. The
regulations must include:
a. Energy efficiency standards that are consistent and
relevant to building, plumbing and electrical codes
that will reduce long-term operating costs.
b. Provide standardized options for energy efficient
building and equipment components from which a school
district may choose when designing a school facility
or renovating an existing facility.
c. Establish best practices for improving energy
efficiency for existing and newly constructed school
facilities.
d. Establish the maximum acceptable costs for each
square foot for construction or major maintenance of
an energy efficient school facility. The department
shall:
i. Base the maximum costs on designs that prioritize
classroom infrastructure and functional design.
ii. The maximum acceptable cost must be adjustable for
different regions within each climate zone.
2. Create a maintenance manual for schools and
maintenance crews that provides information about
maintaining and repairing standardized options
identified in the energy efficiency standards.
3. Consider establishing a statewide maintenance team
to help schools in maintaining and repairing their
standardized components. The department may enter into
a contract with a regional or local organization, AEA,
DOT, or another state agency to create this statewide
maintenance team.
4. Requirements for a school district and a
maintenance team, if established, to submit reports to
the Department of Education and Early Development:
a. The date that maintenance was performed and what
maintenance was performed
b. The condition of school facilities
c. Monitoring data: occupancy, electricity usage, fuel
usage, temperature, etc.
5. Acquire ownership of the design for any school
facility for which a grant or bond reimbursement is
approved in an amount of 50% or more of the cost of
construction.
6. DEED must assess, in consultation with the
Department of Administration and the Department of
Transportation, all state lease payments, state owned
facilities and the use of school facilities in rural
areas to determine whether other state or local
services can be located in the same facility in order
to reduce state funding needs. Any state or local
service that may be co-located with a public school
must have all their employees meet background check
requirements equivalent to the requirements for
teachers.
a. Rural is defined
b. State or local service is defined with the words or
"similar entity"
8:08:26 AM
MS. HUTCHISON noted that 24 percent of schools in Alaska are
under 50 percent full and 29 percent are under 75 percent full.
This means that there is a possibility of co-location in 53
percent of Alaska schools.
She explained that Sections 1-7 relate to grant applications for
school construction and Section 8 relates to bond reimbursement
for school construction.
She continued:
Section 1 (pg. 2 Lines 3-11): Amends AS 14.11.011(b)
by increasing the information needed in a school
district's grant application. The district shall
submit:
1. Information demonstrating that the project
incorporates standardized options for building and
equipment components and is in compliance with the
recommendations made under Section 9 of the bill.
2. Documentation of the building commissioning process
the district uses for both new construction and major
maintenance projects.
Section 2 (pg. 3 Lines 11-12 and 22-25): Amends AS
14.11.013 by
a. Adding to the duties of the Capital Improvement
Project grant schedule, the requirement for DEED to
verify that the project follows the recommendations
made in Section 9 and
b. Requiring that a capital improvement project grant
request must achieve savings measured by a life-cycle
cost analysis through the use of: standardized
options, energy efficiency upgrades, and fuel cost
reductions
8:09:08 AM
Section 3 (pg. 4 Line 10): Amends AS 14.11.013(d)
which allows DEED to reduce a project budget by the
cost of those portions of a project design that they
determine does not meet the criteria set out by the
Section 9 of the bill.
Section 4 (pg. 4 lines 13-17):
a. When a school district is applying for a grant,
DEED shall consult with Alaska Energy Authority to
make sure that the projects are in compliance with the
criteria from Section 9.
b. Defines "life-cycle cost" as the meaning given in
AS 46.11.900
- "life-cycle cost" means the total cost of owning,
operating, and maintaining a building over its useful
life, including its energy and fuel costs, determined
on a basis of a systematic evaluation and comparison
of alternative building systems, except that in the
case of leased buildings the life-cycle cost shall be
calculated over the effective remaining term of the
lease;
Section 5 (pg. 4 Line 29 and pg. 5 Lines 4-5): Amends
AS 14.11.014(b) Requiring the Bond Reimbursement and
Grant Review Committee to, along with their other
duties:
1. Analyze designs acquired by the Department, and
2. Set standards based on the standards adopted under
Section 9.
Section 6 (pg. 5 Lines 13-14, 16-17, 30- line 6 on pg.
6): Amends AS 14.11.017(a)
1. Requires that a school district must include
criteria developed in Section 9 when they are seeking
a grant for school construction.
2. Requires that the school district not exceed the
maximum cost standards established by Section 9.
3. Disallows any school districts, contractors,
architects, or designers involved with the design and
building of a school facility from applying for an
architectural or design award, if the grant is an
amount equal to or greater than 50% of the project.
This does not exclude energy efficiency grants or
innovative design grants.
8:10:16 AM
Section 7 (pg. 6 Lines 7-11): Amends AS 14.11.017 to
state that if a cost of a project exceeds the maximum
cost standards established by Section 9, then the
municipality or REAA must pay for the excess cost of
the building outside of state funds.
Section 8 (pg. 6 Lines 12-31): Amends AS 14.11.100 by
adding three sections to. The commissioner of
Education may not approve an application for bond
reimbursement, unless the municipality, as a condition
of reimbursement:
1. Agrees to construction of an appropriate size
school facility that meets criteria developed by the
Department and section 9 of this bill. In assessing
this criteria, the Commissioner of DEED shall consult
with AEA.
2. Provides reasonable assurance that the project
costs will not exceed the maximum cost standard
established by the Department under Section 9. If a
school district does exceed the maximum cost standard,
the municipality or REAA will pay for the excess with
funds from outside of state government.
3. If a project receives bond reimbursement of 50% or
more of the cost of the project, the municipality,
architects, engineers and designers are prohibited
from submitting for an architectural design award.
8:11:16 AM
Section 11 (pg. 11 lines 3 - 9): Applicability
Section 12 (pg. 11 Lines 10 - 19):
a. DEED shall adopt regulations necessary to implement
the changes made by this act.
b. The regulations required under section 9 must
implement the recommendations of the public school
energy efficiency and standardized components working
group established in section 10.
c. The regulations take effect after 18 months of
enactment of this legislation
Section 13 (pg. 11 Lines 20-21): Sections 1-9 and 11
take effect 24 months after the effective date of
section 10
Section 14 (pg. 11 Line 22): Section 10 takes effect
immediately.
Section 15 (pg. 11 Lines 23-24): Section 12 takes
effect 18 months after the effective date of section
10 of this act.
8:12:09 AM
SENATOR COGHILL inquired if the legislature could review the
regulations. He noted there is a push for Leadership in Energy
and Environmental Design (LEED) standards.
MS. HUTCHISON said that has been discussed, but is not currently
in the bill and would be a good idea.
8:13:48 AM
SENATOR BEGICH referred to Section 8, lines 19 and 20, and
Section 4, lines 15 and 16, where the bill mentions
consultations with the Alaska Energy Authority (AEA). He pointed
out that most of the state's sustainable energy and energy
efficiency work is being done by the Department of
Transportation and Public Facilities (DOTPF). He asked if the
sponsor would consider changing consulting work to DOTPF.
MS. HUTCHISON said AEA brought up that consideration and she
said she would discuss it with DOTPF.
8:15:11 AM
SENATOR MACKINNON stated that whoever can do the task most
efficiently is where it will reside. She noted a new fiscal note
from DEED and said AEA is a qualified entity, as are Alaska
Housing Finance Corporation and Alaska Cold Climate. Also, DEED
has many handbooks that talk about energy efficiency.
She opined that, given the climate situation and energy costs
throughout Alaska, the legislature must take a look at energy
efficiency. She was accepting of Senator Coghill's friendly
amendment to review the task force conclusions. She said a
previous challenge with this legislation was trying to get DEED
to standardize design specifications instead of having unique
designs.
She concluded that SB 87 is a work in process, however, the goal
is to have efficient buildings in urban and rural Alaska. When
state dollars are invested in a project, it is important that
students are warm, schools have lights and backup energy sources
and are used year round. It is important to take the time to do
it right.
8:17:58 AM
SENATOR BEGICH said he really likes the concept of the bill. He
recalled when he worked with the Division of Juvenile Justice
they worked on template designs because they were more
efficient. He noted that SB 87 provides for up to seven
different template designs. He credited the sponsor for taking
all the right steps.
SENATOR BEGICH suggested on page 7, lines 21 and 22, to tighten
the language or come up with a clear definition as it applies to
"different regions in each climate zone." He pointed out that a
region within a climate zone is not clearly defined. He noted
that in the Yukon Koyukuk area there are radically different
climates within the same region. He suggested groupings of
communities when building a new school.
8:19:42 AM
SENATOR MACKINNON reiterated that the bill is in process and she
is happy to accept suggestions.
SENATOR BEGICH brought up the idea of considering design
templates for buildings other than schools, such as for co-
locating structures in the communities. He asked if the bill's
standards would apply to co-located structures.
SENATOR MACKINNON said yes. She noted that she and Senator
Hughes have talked about wanting SB 87 and SB 96 to fit together
and to have structures throughout Alaska be treated equally.
8:20:53 AM
CHAIR HUGHES thanked Senator MacKinnon for bringing SB 87
forward, saying it is overdue. She asked if the bill's process
would apply to a basic remodel and an addition to a school
facility.
SENATOR MACKINNON said it would. The idea is that the state will
probably reconstruct more buildings than build new ones in the
near future. Many new schools are waiting to be built,
particularly in rural Alaska. All of those school boards are
concerned with energy efficiencies and may or may not have the
resources available to understand construction materials and
insulation choices. The state should be leading the way in
providing that information. If there is a 50 percent investment
of dollars by the state it would trigger the provisions in the
bill.
8:22:27 AM
CHAIR HUGHES noted that the Denali Commission has provided
funding for clinic facilities in the past. She asked if there
are federal requirements that have to be met in order for
clinics to co-locate with a school facility.
SENATOR MACKINNON said she would expect DEED to work within the
task force with anything related to co-location. If the state is
spending money on clinics, it should be looking at maximizing
those dollars for the people in the region, the building that is
being affected, and the state, for long-term investment.
She related that DOTPF is looking at several villages where they
are building 3 airports and 3 schools within a 15-mile corridor.
From DOTPF's perspective, it would cost less to maintain the 3
separate airports than the 15 miles of road. However, each of
the three villages has to build three different buildings. She
noted that the balance belongs to the people and the state;
local control and the state. The choice of local control is
important. She suggested to look beyond educational investment
to see other related needs in a community and seek co-location.
She stressed that is should be a regional conversation.
8:26:25 AM
SENATOR BEGICH suggested another concept to consider in the
bill; the use of Rural Educational Attendance Area (REAA) and
Small Schools Funds for major maintenance in schools.
8:27:28 AM
SENATOR MACKINNON agreed to look at everything. She did not want
to use one-time money for re-occurring expenses. She said she
would have to research that funding source.
She said the bill has an admirable goal, but some people do not
want to see change because change is hard, and it costs money
sometimes. She stated that it is the people's money and we need
to do what is best for the people and the students of Alaska.
She added that she is not saying there won't be new
construction, but rather that it is more likely that there will
be re-construction or major maintenance, which would have to
comply with the new standards in the bill.
8:28:58 AM
CHAIR HUGHES asked, when a school is going to be built, if there
is an analysis of community size and potential for growth.
SENATOR MACKINNON said she thought there was. Sometimes people
don't believe growth projections. She provided an example in
Eagle River where she doubted the projections which turned out
to be accurate. She concluded that you try to do what you think
is best with the money you have. She noted that populations are
relocating, such as to Mat-Su.
CHAIR HUGHES provided an example of long-lasting old buildings
in Germany. She whether durability and extending the life of
buildings are considerations.
8:32:21 AM
SENATOR MACKINNON said yes. She chose, as a measurement of
durability, the life of a typical mortgage - 30 years. This is
another reason for the state to own building designs - so that
problems can be worked on for improved durability.
8:33:20 AM
MS. HUTCHISON referred to Section 10 where it states that new
buildings must have a 30-year lifespan and renovations a 20-year
lifespan. She said they are open to changing those numbers.
SENATOR COGHILL asked who owns the designs and what expertise is
needed for applying the designs. He asked if it would mean a
change in venue.
SENATOR MACKINNON said currently DEED believes everything needs
to be unique and the state does not own the designs. She does
not believe that everything needs to be unique; public buildings
have a responsibility to be functional and efficient, before
beautiful.
She shared an experience about a design center in Eagle River
that saved $1 million by using the same design and construction
team. She pointed out that delivery costs of materials in rural
Alaska are very high. She was open to those other than DEED
handling design and construction of schools.
8:36:43 AM
SENATOR BEGICH supported that idea. He shared how Juvenile
Justice buildings were built from the same template which
simplified the process. The bill has 7 different templates which
are adaptable to location.
SENATOR MACKINNON said the bill provides local flexibility to do
what a community thinks is best and what an architect thinks is
safe. The bill uses limited dollars to create energy efficient
buildings that may need to be adaptable. She provided an example
of co-locating a nurse to accommodate a community's need.
SENATOR BEGICH said in 1994 the Governor's Conference on Youth
and Justice established that there would be health clinics in
new school designs.
8:39:55 AM
CHAIR HUGHES mentioned public health facilities and the need for
co-locations for their clinics due to budget reasons. The bill
could address that need.
SENATOR GIESSEL agreed. She said sometimes there is no health
clinic in a rural area, so public health nurses have to provide
health care in classrooms. She provided an example in Anchorage
of a private health entity that contracts for space in a middle
school to provide more efficient services.
8:42:15 AM
SENATOR COGHILL thought a lot of current building standards are
energy efficient and available and could be used and
standardized. He suggested tightening up the timeline in order
to get a working product sooner.
SENATOR BEGICH suggested looking at rapidly changing technology
and the need for flexibility in schools.
CHAIR HUGHES summarized that she has received calls from several
in the construction industry who have been building rural
schools and they suggested change is needed.
CHAIR HUGHES held SB 87 in committee.