Legislature(2009 - 2010)
04/12/2010 10:05 AM House ENE
| Audio | Topic |
|---|---|
| Start | |
| SB220 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 220-ENERGY EFFICIENCY/ ALTERNATIVE ENERGY
10:05:58 AM
CO-CHAIR EDGMON announced the only order of business would be
SENATE BILL NO. 220, "An Act declaring a state energy policy;
relating to energy efficiency and alternative energy;
establishing the energy efficiency grant fund, an emerging
energy technology fund, a renewable energy production tax
credit, and an energy use index; and relating to a fuel
purchasing cooperative, to energy codes and efficiency
standards, to energy conservation targets in public buildings,
to a state agency energy use reduction plan, to the alternative
energy revolving loan fund, and to the renewable energy grant
fund."
10:06:39 AM
SENATOR BILL WIELECHOWSKI, Co-Chair, Senate Resources Committee,
Alaska State Legislature, noted that the legislature has an
opportunity to enact legislation that will help Alaskans, and of
which legislators should be proud. He acknowledged that the
committee was familiar with the bill, and directed attention to
three of the offered amendments. Amendment 2 requires the
administration to consider the energy efficiency of equipment
when entering into procurement contracts. He said the
administration supports the amendment, and that it sends a good
message that the state will lead by example. Amendment 3
continues in that theme, and requires the Department of
Transportation & Public Facilities (DOT&PF) to retrofit 25
percent of public buildings by 2020, if DOT&PF determines that
retrofitting the buildings will result in a net energy savings
to the state within 15 years. Senator Wielechowski affirmed
that this amendment was supported by DOT&PF, and he estimated
the amendment will save the state $2.75 million per year and
will put Alaskans to work. Furthermore, the amendment requires
new buildings to be energy efficient. Finally, Amendment 4
requires the Alaska Energy Authority (AEA), Department of
Commerce, Community, & Economic Development, and the Alaska
Housing Finance Corporation (AHFC), Department of Revenue, to
conduct a public energy efficiency campaign. The agencies do
not currently have the legal authority to do this.
10:10:05 AM
SENATOR LESIL MCGUIRE, Co-Chair, Senate Resources Committee,
Alaska State Legislature, stated that she appreciated the
leadership of the House Special Committee on Energy, and was
pleased at the work that it and the Senate Resources Committee
accomplished together. Generally, the bill goes a long way to
put energy policy in place in Alaska, and merges with the energy
policy developed by stakeholders through the committee process
in the House. Senate Bill 220 begins to carry out that policy.
In fact, Section 27 asks the governor to submit a report to the
legislature by 1/31/11, regarding the structuring of state
energy programs. Senator McGuire recognized the House Special
Committee on Energy's suggestion to create a separate department
of energy, and opined the report from the governor will include
many concepts for the legislature to consider during the next
session. Furthermore, the emerging energy technology fund
provision of SB 220 is a bold step, and will be capitalized
immediately. She recalled that the intent of the fund was to
attract companies to Alaska that are looking at "cutting edge
emerging energy technology." She noted that the energy
technology fund sunsets in 2015, and this was a compromise
provision. Regarding nuclear energy, the bill streamlines the
current outdated references to nuclear power in statute, and
will open opportunities for small nuclear power in rural areas
of the state. Senate Bill 220 also provides for the AHFC Alaska
energy efficiency revolving loan fund that grew from American
Recovery and Reinvestment Act of 2009 (ARRA) stimulus funds, and
that will allow municipalities, school districts, and the state
to apply for loans to make their buildings more energy
efficient. The savings from energy retrofitting will be a
benefit to many Alaskans. The bill also reenacted the Southeast
energy fund to expand the options for funding and possible
projects. Senator McGuire then pointed out the policy
recommendations in the bill, including the use of compressed
natural gas in state vehicles. Finally, energy assessments and
retro-fits called for in the bill will create jobs for residents
throughout the state. Senator McGuire thanked the staff of both
committees for their contributions to the bill.
10:17:49 AM
CO-CHAIR EDGMON recognized the contributions of Senator McGuire.
He then asked for a brief analysis of the differences between
the House and Senate versions of the bill.
10:18:17 AM
MIKE PAWLOWSKI, Staff to Senator Lesil McGuire, Alaska State
Legislature, directed the committee's attention to the sectional
analysis provided in the committee packet. He first pointed out
Sec. 9, page 9, line 2, [subsection] (12), which was the
addition of new language allowing work with state agencies to
develop a standardized methodology to collect and store energy
consumption and expense data. Continuing on, he said Sec. 11,
page 9, lines 24-29, limits access to the Southeast energy fund
to a municipality of the state, a joint action agency, or a
member-owned electric cooperative for power projects, repayment
of loans, and payments on bonds for hydroelectric projects and
transmission lines. Also on page 9, line 31, and continuing to
page 10, line 1, appropriations from the Southeast energy fund
lapse back into the fund within seven years. Mr. Pawlowski then
referred to page 19, lines 7-13, which was related to the
structure of the AEA and its board of directors. Finally, on
page 21, lines 7-15, there was authorization for a report
exploring the feasibility of a municipal program to create
energy efficiency districts in order to incentivize energy
efficiency using local property tax structures. Mr. Pawlowski
concluded that the abovementioned sections are the substantive
differences.
10:23:38 AM
CO-CHAIR EDGMON opened public testimony.
10:24:03 AM
FREYA CHEY informed the committee she was a freshman at Kenai
Central High School and a finalist in the Caring for the Kenai
competition. The goal of her project was to amend the state tax
code so that local governments have the option to exempt
alternative energy systems from real property tax assessments.
She explained that the Kenai Peninsula Borough assembly passed a
resolution supporting her idea; however, action at the local
level can not take place without a change in the state law. Ms.
Chey referred to her draft proposal.
10:26:31 AM
CO-CHAIR EDGMON stated that Ms. Chey's proposal had been written
as an amendment and was included in the committee packet for
consideration.
10:27:33 AM
WALTER ROSE stated he was speaking for Kawerak, Inc., an
organization that provides services to 20 Native communities in
the Bering Strait region. He expressed Kawerak's support for
the emerging energy technology fund; however, missing from the
current bill are a fuel purchasing cooperative and a voucher
system for the energy rebate program. Mr. Rose said Kawerak
also supports changes to the heating assistance program which
indexes the level of support to the price of oil.
10:28:56 AM
CO-CHAIR EDGMON closed public testimony.
10:29:21 AM
CO-CHAIR MILLETT moved to adopt Amendment 1 which read:
Page 1, line 9:
Delete "owned or operated"
Insert "owned, operated, or paid for in whole or
in part"
Page 1, line 11:
Delete "owned or operated"
Insert "owned, operated, or paid for in whole or
in part"
Page 19, line 31, through page 20, line 1:
Delete "owned or operated"
Insert "owned, operated, or paid for in whole or
in part"
10:29:44 AM
CO-CHAIR EDGMON objected for the purpose of discussion.
10:29:51 AM
CO-CHAIR MILLETT said the amendment was offered by Senator Fred
Dyson.
10:30:17 AM
ADAM BERG, Staff to Representative Bryce Edgmon, Alaska State
Legislature, said this amendment was technical in nature and the
word changes will ensure that the use of compressed natural gas
(CNG) applies to as many vehicles as possible.
10:30:38 AM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 1 was adopted.
10:30:56 AM
CO-CHAIR MILLETT moved to adopt Amendment 2 which read:
Page 7, following line 13:
Insert a new bill section to read:
"* Sec. 9. AS 36.30 is amended by adding a new
section to read:
Sec. 36.30.323. Consideration of energy efficient
equipment. When the Department of Administration
enters into contracts to purchase equipment that uses
energy, it shall give consideration to the energy
efficiency of the equipment where credible and
objective information on efficiency levels is readily
available."
Renumber the following bill sections accordingly.
Renumber internal references to bill sections in
accordance with this amendment. Below are all
internal bill section references in this bill:
Page 18, line 29
Page 19, line 4
Page 20, lines 28, 29, and 30
Page 21, lines 4, 18, 20, and 21
Page 22, lines 1, 9
10:31:09 AM
CO-CHAIR EDGMON objected for the purpose of discussion.
10:31:16 AM
MR. BERG explained that Amendment 2 asks the Department of
Administration (DOA) to give consideration to the energy
efficiency of equipment when entering into contracts to purchase
equipment.
10:31:23 AM
CO-CHAIR MILLETT opined the language of the amendment seems
vague regarding the meaning of "consideration."
10:31:53 AM
REPRESENTATIVE TUCK gave an example of a project bid by the
Anchorage School District that did not consider energy
efficiency. He advised that there is a need to think beyond
price to the cost of power consumption.
10:32:52 AM
CO-CHAIR EDGMON stated his support for the amendment and
maintained his objection.
A roll call vote was taken. Representatives Petersen, Tuck,
Ramras, and Edgmon voted in favor of Amendment 2.
Representatives Dahlstrom and Millett voted against it.
Therefore, Amendment 2 passed by a vote of 4-2.
The committee took an at-ease from 10:34 a.m. to 10:35 a.m.
10:34:33 AM
REPRESENTATIVE RAMRAS moved for reconsideration of the vote.
10:35:21 AM
CO-CHAIR EDGMON, hearing no objection to the motion to
reconsider, announced the motion was approved. He then moved
Amendment 2.
CO-CHAIR MILLETT objected.
10:36:11 AM
A roll call vote was taken. Representatives Tuck, Petersen, and
Edgmon voted in favor of Amendment 2. Representatives
Dahlstrom, Ramras, and Millett voted against it. Therefore,
Amendment 2 failed by a vote of 3-3.
10:36:13 AM
CO-CHAIR MILLETT moved Amendment 3 which read:
Page 14, following line 7:
Insert a new bill section to read:
"* Sec. 15. AS 44.42 is amended by adding a new
section to read:
Sec. 44.42.067. Retrofits and new construction
for energy efficiency; energy efficiency report. (a)
Not later than January 1, 2020, the department shall
work with other state agencies to retrofit at least 25
percent of all public facilities, starting with those
it determines are the least energy efficient, if the
department determines that retrofitting the public
facilities will result in a net savings in energy
costs to the state within 15 years after completion of
the retrofits for a public facility and if funding for
the retrofits is available.
(b) A retrofit or deferred maintenance of a
public facility performed under this section, to the
extent feasible, shall meet or exceed the most
recently published edition of the ASHRAE/IESNA
Standard 90.1, Energy Standard for Buildings Except
for Low-Rise Residential Buildings, as published by
the American Society of Heating, Refrigerating and
Air-Conditioning Engineers.
(c) New construction of a public facility under
this section shall meet or exceed the most recently
published edition of the ASHRAE/IESNA Standard 90.1,
Energy Standard for Buildings Except for Low-Rise
Residential Buildings, as published by the American
Society of Heating, Refrigerating and Air-Conditioning
Engineers.
(d) Not later than January 1 of each year, the
department, in consultation with the Department of
Administration, shall submit a report to the
legislature detailing the department's progress in
meeting the requirements of this section to reduce
state energy consumption and costs and carrying out
the duties listed in AS 44.42.020 as they relate to
energy use. The department shall include in the report
an analysis of the consumption and expense data
recorded by the office of management and budget under
AS 37.07.040, comparing energy consumption levels in
each year with past years to determine if reductions
are being achieved.
(e) In this section, "public facility" means a
facility owned and controlled by the state for
government or public use that is 10,000 square feet or
more and is not a legislative building or court
building."
Renumber the following bill sections accordingly.
Page 18, following line 29:
Insert a new bill section to read:
"* Sec. 26. The uncodified law of the State of
Alaska is amended by adding a new section to read:
DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES. Not later than one year after the
effective date of this Act, the Department of
Transportation and Public Facilities, in consultation
with the Alaska Energy Authority, shall adopt and
implement a systematic process for prioritizing the
retrofitting of state facilities for a long-term
increase in energy efficiency and reduction of energy
costs."
Renumber internal references to bill sections in
accordance with this amendment. Below are all
internal bill section references in this bill:
Page 18, line 29
Page 19, line 4
Page 20, lines 28, 29, and 30
Page 21, lines 4, 18, 20, and 21
Page 22, lines 1, 9
10:36:14 AM
CO-CHAIR EDGMON objected for the purpose of discussion.
10:36:15 AM
MR. BERG reminded the committee that Amendment 3 would "reinsert
the 25 percent retrofit in statute by 2020."
CO-CHAIR MILLETT expressed her concern that the requirement for
25 percent retrofit of state buildings may place liabilities on
the state if the requirement was not met. She had heard from
DOT&PF that this goal may not be met.
10:37:23 AM
CO-CHAIR EDGMON said he was heartened with the movement of the
bill and the energy issue as a whole. He opined this issue will
return for consideration during the next session because of its
significant cost.
10:38:59 AM
A roll call vote was taken. Representatives Petersen, Tuck, and
Edgmon voted in favor of Amendment 3. Representatives Ramras,
Johansen, Dahlstrom, and Millett voted against it. Therefore,
Amendment 3 failed by a vote of 3-4.
10:38:59 AM
CO-CHAIR MILLETT moved Amendment 4 which read:
Page 14, following line 7:
Insert a new bill section to read:
"* Sec. 15. AS 44.83.080 is amended by adding a new
subsection to read:
(b) In furtherance of its corporate purpose, the
authority shall annually plan and conduct, in
cooperation with the Alaska Housing Finance
Corporation, a public education campaign to promote
energy efficiency and conservation."
Renumber the following bill sections accordingly.
Renumber internal references to bill sections in
accordance with this amendment. Below are all
internal bill section references in this bill:
Page 18, line 29
Page 19, line 4
Page 20, lines 28, 29, and 30
Page 21, lines 4, 18, 20, and 21
Page 22, lines 1, 9
10:39:03 AM
CO-CHAIR EDGMON objected for the purpose of discussion.
10:39:08 AM
MR. BERG stated Amendment 4 directs AEA and Alaska Housing
Finance Corporation (AHFC) to jointly plan and conduct an annual
public education campaign to promote energy efficiency and
conservation.
10:39:29 AM
CO-CHAIR MILLETT pointed out that AEA is already participating
in a campaign for public education; in fact, other groups in the
conservation community are also providing this service. She
said she supported the private sector's involvement and not
Amendment 4.
10:40:25 AM
REPRESENTATIVE RAMRAS asked for more information on the
campaign.
10:41:05 AM
BRYAN BUTCHER, Director, Governmental Affairs & Public
Relations, AHFC, Department of Revenue (DOR), stated that AHFC
is already doing this through its funding from ARRA.
Approximately $2 million is dedicated to a public outreach
campaign on community energy conservation in concert with AEA.
He opined Legislative Legal and Research Services, Legislative
Affairs Agency, feels statutory authority is needed, although
AHFC feels it already has authority because this is an on-going
program. In further response to Representative Ramras, he said
the amendment is not needed and "it doesn't make any difference
one way or another to us."
10:43:13 AM
REPRESENTATIVE TUCK appreciated the work done by AHFC. However,
any advertising that can be done to reduce the energy load on
the utilities benefits cities and towns. He asked whether AHFC
can use its campaign funding for polling to learn about other
needs in the community.
10:44:10 AM
MR. BUTCHER said he was unsure. However, AHFC can use the funds
to determine energy efficiency levels for residential and
commercial buildings in order to show improvement over the next
eight years.
10:44:43 AM
REPRESENTATIVE TUCK encouraged AHFC to determine the unmet needs
of residents who are unable to participate in residential
programs for a variety of reasons.
10:45:26 AM
MR. BUTCHER said, "That's something we can look at."
10:45:37 AM
REPRESENTATIVE PETERSEN pointed out that a survey sent to the
constituents in his and Senator Wielechowski's districts showed
that numerous people are unaware of the energy efficiency
programs that are available. He said he supported further
advertising.
10:46:00 AM
REPRESENTATIVE JOHANSEN dismissed the survey. He then objected
to a breach of committee procedure.
CO-CHAIR EDGMON responded to the breach of procedure.
10:46:50 AM
REPRESENTATIVE MILLETT observed that after ARRA stimulus funds
are gone, the state will be left with a mandate to continue to
fund an education program.
10:47:58 AM
CO-CHAIR EDGMON spoke in support of the amendment and pointed
out that a public education campaign is flexible and can be
directed at efforts to inform the public on energy efficiency,
conservation, alternative energy, and cheaper sources of energy.
In addition, he said he supported an annual campaign.
10:49:03 AM
REPRESENTATIVE TUCK noted the importance of advertising the
Municipality of Anchorage's contingency plan so that residents
understood what to do and when.
10:49:28 AM
A roll call vote was taken. Representatives Petersen, Tuck, and
Edgmon voted in favor of Amendment 4. Representatives
Dahlstrom, Ramras, Johansen, and Millett voted against it.
Therefore, Amendment 4 failed by a vote of 3-4.
10:50:09 AM
CO-CHAIR MILLETT moved Amendment 5 which read:
Page 1, line 4, following "fund,":
Insert "to the alternative energy revolving loan
fund,"
Page 14, following line 17:
Insert new bill sections to read:
"* Sec. 16. AS 45.88.010(a) is amended to read:
(a) There is established in the Department of
Commerce, Community, and Economic Development the
alternative energy conservation revolving loan fund to
carry out the purposes of AS 45.88.010 - 45.88.090.
Loans made under AS 45.88.010 - 45.88.090 are to be
used
(1) to develop means of energy production
utilizing one or more alternative energy systems; and
(2) to purchase, construct, and install
energy conservation improvements in commercial
buildings [ENERGY SOURCES OTHER THAN FOSSIL OR NUCLEAR
FUEL, INCLUDING, BUT NOT LIMITED TO, WINDMILLS, WATER
AND SOLAR ENERGY DEVICES].
* Sec. 17. AS 45.88.010 is amended by adding a new
subsection to read:
(e) The alternative energy conservation
revolving loan fund consists of
(1) money appropriated to the fund by the
legislature;
(2) gifts, bequests, or contributions from
other sources;
(3) principal and interest payments or
other income earned on loans or investments in the
fund; and
(4) money chargeable to principal or
interest that is collected through liquidation by
foreclosure or other processes on loans made under
AS 45.88.010 - 45.88.090.
* Sec. 18. AS 45.88.020(a) is amended to read:
(a) The department may
(1) make loans for the purchase,
construction, and installation, in commercial
buildings that are located in the state, of
(A) alternative energy systems; and
(B) energy conservation improvements;
(2) adopt regulations necessary to carry
out the provisions of AS 45.88.010 - 45.88.090,
including regulations to establish reasonable fees for
services provided and charges for collecting the fees;
(3) collect the fees and collection charges
established under this subsection.
* Sec. 19. AS 45.88.025 is amended by adding a new
section to read:
Sec. 45.88.025. Eligibility. To be eligible for a
loan under AS 45.88.010 - 45.88.090, an applicant must
(1) physically reside in the state and
maintain a domicile in the state during 12 consecutive
months before the date of application for a loan and
may not have
(A) declared or established residency in
another state; or
(B) received residency or a benefit based
on residency from another state;
(2) be at least 51 percent owned by
individuals described in (1) of this section if the
applicant is a corporation, joint venture, or
partnership; or
(3) be a nonprofit organization under
AS 10.20.
* Sec. 20. AS 45.88.030(a) is repealed and
reenacted to read:
(a) A loan made under AS 45.88.010 - 45.88.090
may not exceed $50,000. If the requested loan amount
exceeds $30,000, the applicant must deliver to the
department a document from a financial institution
stating that
(1) the applicant has been denied a loan
for the same purpose; or
(2) the loan from the financial institution
is contingent on the applicant also receiving a loan
from the fund.
* Sec. 21. AS 45.88.030(e) is amended to read:
(e) The rate of interest for a loan under
AS 45.88.010 - 45.88.090 is the prime rate, as defined
by AS 44.88.599, plus one percentage point, but may
not be less than five percent a year [FOR AN
ALTERNATIVE ENERGY SYSTEM IS FIVE PERCENT FOR THE
FIRST $15,000 OF THE LOAN AND 15 PERCENT FOR THE
AMOUNT OF THE LOAN THAT EXCEEDS $15,000].
* Sec. 22. AS 45.88.030 is amended by adding a new
subsection to read:
(f) A loan under AS 45.88.010 - 45.88.090 must
be secured by a mortgage or other security instrument
in the real property to be improved and a lien on the
improvements financed with the loan.
* Sec. 23. AS 45.88.090(a) is amended to read:
(a) In AS 45.88.010 - 45.88.090,
(1) "alternative energy system"
(A) [(1)] means a source of thermal,
mechanical or electrical energy that [WHICH] is not
dependent on oil or gas or a nuclear fuel for the
supply of energy for space heating and cooling,
refrigeration and cold storage, electrical power,
mechanical power, or the heating of water;
(B) [(2)] includes
(i) [(A)] an alternative energy property as
defined by 26 U.S.C. 48(a)(3)(A) (Sec. 301, P.L. 95-
618, Internal Revenue Code);
(ii) [(B)] a method of architectural design
and construction which provides for the collection,
storage, and use of direct radiation from the sun;
(iii) [(C)] a woodstove with a catalytic
converter or a catalytic converter for a wood stove;
[AND]
(iv) [(D)] a steam, hot water, or ducted
hot air central heating system that uses wood or coal
for fuel; and
(v) a high efficiency wood pellet stove;
(C) [(3)] does not include
(i) [(A)] a stove that uses only wood,
coal, or oil for fuel; or
(ii) [(B)] a fireplace or fireplace insert;
(2) "commercial building"
(A) means a building that is intended to be
used for commercial purposes;
(B) does not include
(i) a residential structure or mobile home
that contains one to four family housing units; or
(ii) individual units of condominiums or
cooperatives;
(3) "energy conservation improvement" means
(A) structural insulation;
(B) thermal windows and doors;
(C) a furnace replacement burner designed
to achieve a reduction in the amount of fuel consumed
as a result of increased combustion efficiency;
(D) a device for modifying flue openings
designed to increase the efficiency of operation of
the heating system;
(E) an electrical or mechanical furnace
ignition system that replaces a gas pilot light;
(F) an automatic energy-saving setback
thermostat;
(G) a meter that displays the cost of
energy usage;
(H) caulking and weather stripping of doors
and windows;
(I) insulating shades and shutters;
(J) air and water recuperators."
Renumber the following bill sections accordingly.
Page 18, following line 29:
Insert a new bill section to read:
"* Sec. 26. AS 45.88.010(c), 45.88.030(c),
45.88.030(d), and 45.88.040(a) are repealed."
Renumber the following bill sections accordingly.
Renumber internal references to bill sections in
accordance with this amendment. Below are all internal
bill section references in this bill:
Page 18, line 29
Page 19, line 4
Page 20, lines 28, 29, and 30
Page 21, lines 4, 18, 20, and 21
Page 22, lines 1, 9
CO-CHAIR EDGMON objected for the purpose of discussion.
10:50:26 AM
MR. BERG said Amendment 5 reopens the alternative energy
revolving loan fund program to commercial businesses.
10:50:51 AM
REPRESENTATIVE PETERSEN offered Conceptual Amendment 1 to
Amendment 5.
10:51:05 AM
CO-CHAIR EDGMON objected for the purpose of discussion.
10:51:12 AM
REPRESENTATIVE PETERSEN referred to page 3, line 29, and said
his conceptual amendment adds "or grain" following "pellet." He
affirmed the committee's support of the development of
agriculture in Alaska.
10:51:46 AM
REPRESENTATIVE RAMRAS expressed his support of Conceptual
Amendment 1 to Amendment 5.
10:52:05 AM
CO-CHAIR EDGMON removed his objection to Conceptual Amendment 1.
There being no further objection, Conceptual Amendment 1 to
Amendment 5 was adopted.
CO-CHAIR EDGMON removed his objection to Amendment 5. There
being no further objection, Amendment 5 was adopted.
10:52:32 AM
CO-CHAIR MILLETT moved Amendment 6 which read:
Page 1, line 1, following the third occurrence of
"energy":
Insert ", to energy consumption, energy costs,
and energy efficiency standards for school
construction and major maintenance by the Department
of Education and Early Development"
Page 2, following line 6:
Insert a new bill section to read:
"* Sec. 2. AS 14.07.020(a) is amended to read:
(a) The department shall
(1) exercise general supervision over the
public schools of the state except the University of
Alaska;
(2) study the conditions and needs of the
public schools of the state, adopt or recommend plans,
administer and evaluate grants to improve school
performance awarded under AS 14.03.125, and adopt
regulations for the improvement of the public schools;
(3) provide advisory and consultative
services to all public school governing bodies and
personnel;
(4) prescribe by regulation a minimum
course of study for the public schools; the
regulations must provide that, if a course in American
Sign Language is given, the course shall be given
credit as a course in a foreign language;
(5) establish, in coordination with the
Department of Health and Social Services, a program
for the continuing education of children who are held
in detention facilities in the state during the period
of detention;
(6) accredit those public schools that meet
accreditation standards prescribed by regulation by
the department; these regulations shall be adopted by
the department and presented to the legislature during
the first 10 days of any regular session, and become
effective 45 days after presentation or at the end of
the session, whichever is earlier, unless disapproved
by a resolution concurred in by a majority of the
members of each house;
(7) prescribe by regulation, after
consultation with the state fire marshal and the state
sanitarian, standards that will assure healthful and
safe conditions in the public and private schools of
the state, including a requirement of physical
examinations and immunizations in pre-elementary
schools; the standards for private schools may not be
more stringent than those for public schools;
(8) exercise general supervision over pre-
elementary schools that receive direct state or
federal funding;
(9) exercise general supervision over
elementary and secondary correspondence study programs
offered by municipal school districts or regional
educational attendance areas; the department may also
offer and make available to any Alaskan through a
centralized office a correspondence study program;
(10) accredit private schools that request
accreditation and that meet accreditation standards
prescribed by regulation by the department; nothing in
this paragraph authorizes the department to require
religious or other private schools to be licensed;
(11) review plans for construction of new
public elementary and secondary schools and for
additions to and major rehabilitation of existing
public elementary and secondary schools and, in
accordance with regulations adopted by the department,
determine and approve the extent of eligibility for
state aid of a school construction or major
maintenance project; for the purposes of this
paragraph, "plans" include educational specifications,
schematic designs, projected energy consumption and
costs, and final contract documents;
(12) provide educational opportunities in
the areas of vocational education and training, and
basic education to individuals over 16 years of age
who are no longer attending school;
(13) administer the grants awarded under
AS 14.11;
(14) establish, in coordination with the
Department of Public Safety, a school bus driver
training course;
(15) require the reporting of information
relating to school disciplinary and safety programs
under AS 14.33.120 and of incidents of disruptive or
violent behavior;
(16) establish by regulation criteria,
based on low student performance, under which the
department may intervene in a school district to
improve instructional practices, as described in
AS 14.07.030(14) or (15); the regulations must include
(A) a notice provision that alerts the
district to the deficiencies and the instructional
practice changes proposed by the department;
(B) an end date for departmental
intervention, as described in AS 14.07.030(14)(A) and
(B) and (15), after the district demonstrates three
consecutive years of improvement consisting of not
less than two percent increases in student proficiency
on standards-based assessments in math, reading, and
writing as provided in AS 14.03.123(f)(2)(A); and
(C) a process for districts to petition the
department for continuing or discontinuing the
department's intervention;
(17) notify the legislative committees
having jurisdiction over education before intervening
in a school district under AS 14.07.030(14) or
redirecting public school funding under
AS 14.07.030(15);
(18) adopt regulations that set standards
for energy efficiency for school construction and
major maintenance to provide energy efficiency
benefits for all school locations in the state and
that address energy efficiency in design and energy
systems that minimize long-term energy and operating
costs."
Renumber the following bill sections accordingly.
Conform internal references to bill sections in
accordance with this amendment. Below are all internal
bill section references in this bill:
Page 18, line 29
Page 19, line 4
Page 20, lines 1, 2, and 3
Page 21, lines 4, 18, 20, and 21
Page 22, lines 1 and 9
10:53:00 AM
CO-CHAIR EDGMON objected for the purpose of discussion.
MR. BERG understood Amendment 6 will be withdrawn; however, he
explained that the amendment provided for Department of
Education and Early Development energy consumption projections
for rural schools. This provision was now incorporated in other
proposed legislation.
10:53:13 AM
CO-CHAIR MILLETT withdrew Amendment 6.
10:53:20 AM
CO-CHAIR MILLETT moved Amendment 7 which read:
Page 3, following line 13:
Insert a new bill section to read:
"* Sec. 3. AS 14.40.170(b) is amended to read:
(b) The Board of Regents may
(1) adopt reasonable rules, orders, and
plans with reasonable penalties for the good
government of the university and for the regulation of
the Board of Regents;
(2) determine and regulate the course of
instruction in the university with the advice of the
president;
(3) set student tuition and fees;
(4) receive university receipts and,
subject to legislative appropriation, expend
university receipts in accordance with AS 37.07
(Executive Budget Act);
(5) apply for and use the proceeds of a
loan from the Alaska energy efficiency revolving loan
fund (AS 18.56.855)."
Renumber the following bill sections accordingly.
Page 5, line 2, following the second occurrence of
"governments,":
Insert ", to the University of Alaska,"
Page 5, line 4, following "areas,":
Insert "by the University of Alaska,"
Page 5, line 10, following "area,":
Insert "the University of Alaska,"
Page 5, line 12, following "area":
Insert ", the University of Alaska,"
Page 5, line 15, following "area,":
Insert ", the University of Alaska,"
Page 5, line 21, following "state":
Insert "and the University of Alaska"
Page 5, line 24, following "area":
Insert ", the University of Alaska,"
Page 6, line 6, following "area,":
Insert ", to the University of Alaska"
Page 6, line 7, following "area,":
Insert ", the University of Alaska,"
Page 6, line 11, following "area,":
Insert ", the University of Alaska,"
Page 6, line 12, following "area,":
Insert ", the University of Alaska,"
Page 6, line 24, following "area.":
Insert "the president of the University of
Alaska, or the director of the Board of Regents, may
borrow from the corporation under this section for
buildings owned by the University of Alaska."
Page 6, line 28, following "area":
Insert ", the University of Alaska,"
Renumber internal references to bill sections in
accordance with this amendment. Below are all
internal bill section references in this bill:
Page 18, line 29
Page 19, line 4
Page 20, lines 28, 29, and 30
Page 21, lines 4, 18, 20, and 21
Page 22, lines 1, 9
10:53:30 AM
CO-CHAIR EDGMON objected for the purpose of discussion.
10:53:35 AM
MR. BERG stated that Amendment 7 clarifies that the University
of Alaska (UA) is eligible to receive loans from the Alaska
energy efficiency revolving loan fund.
10:53:48 AM
CO-CHAIR MILLETT expressed her support for the amendment.
10:54:10 AM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 7 was adopted.
10:54:21 AM
CO-CHAIR MILLETT moved Amendment 8 which read:
Page 1, line 2, following "utility,":
Insert "to an exemption from taxation by a
municipality of certain residential renewable energy
systems,"
Page 7, following line 13:
Insert a new bill section to read:
"* Sec. 9. AS 29.45.050(b) is amended to read:
(b) A municipality may by ordinance
(1) classify and exempt from taxation
(A) the property of an organization not
organized for business or profit-making purposes and
used exclusively for community purposes if the income
derived from rental of that property does not exceed
the actual cost to the owner of the use by the renter;
(B) historic sites, buildings, and
monuments;
(C) land of a nonprofit organization used
for agricultural purposes if rights to subdivide the
land are conveyed to the state and the conveyance
includes a covenant restricting use of the land to
agricultural purposes only; rights conveyed to the
state under this subparagraph may be conveyed by the
state only in accordance with AS 38.05.069(c);
(D) all or any portion of private ownership
interests in property that, based upon a written
agreement with the University of Alaska, is used
exclusively for student housing for the University of
Alaska; property may be exempted from taxation under
this subparagraph for no longer than 30 years unless
the exemption is specifically extended by ordinance
adopted within the six months before the expiration of
that period;
(E) a residential renewable energy system
that is used to develop means of energy production
using energy sources other than fossil or nuclear
fuel, including windmills and water and solar energy
devices located in the municipality;
(2) classify as to type and exempt or
partially exempt some or all types of personal
property from ad valorem taxes."
Renumber the following bill sections accordingly.
Renumber internal references to bill sections in
accordance with this amendment. Below are all
internal bill section references in this bill:
Page 18, line 29
Page 19, line 4
Page 20, lines 28, 29, and 30
Page 21, lines 4, 18, 20, and 21
Page 22, lines 1, 9
10:54:39 AM
CO-CHAIR EDGMON objected for the purpose of discussion.
10:54:45 AM
MR. BERG advised Amendment 8, which was suggested by Ms. Chey of
Kenai, allows a municipality to exempt residential energy system
improvements from the tax rolls.
10:54:55 AM
REPRESENTATIVE RAMRAS spoke of the cost of installing solar
panels at his business. He remarked:
But what you're saying [is] the municipality in this
case, the North Star Borough, may enact an ordinance
that would not consider those improvements in the
capital cost. Is that correct?
10:55:22 AM
MR. BERG said correct. He added that the amendment may not
apply to commercial improvements.
10:56:27 AM
REPRESENTATIVE RAMRAS offered Conceptual Amendment 1 to
Amendment 8.
10:56:38 AM
CO-CHAIR EDGMON objected for the purpose of discussion.
10:56:46 AM
REPRESENTATIVE RAMRAS said he will contemplate an amendment to
include commercial properties and submit it to the next
committee of referral. He withdrew Conceptual Amendment 1 to
Amendment 8.
10:57:20 AM
CO-CHAIR MILLETT asked for the number of people in the Kenai
area that will be eligible to benefit from this exemption.
10:57:46 AM
MS. CHEY responded that 27 homeowners have alternative energy
systems, and the exemption will prompt more people to consider
alternative energy systems.
10:58:43 AM
REPRESENTATIVE TUCK observed that major independent power
producers profiting from power generation should not be exempt
from tax assessments; however, long-term lease holders who
invest in alternative systems should benefit.
10:59:46 AM
CO-CHAIR EDGMON removed his objection. Hearing no further
objection, Amendment 8 was adopted.
REPRESENTATIVE RAMRAS noted that little cooperation was received
from the administration when the committee requested an
organization chart that would show how energy decisions are made
by the executive branch. He called attention to Sec. 27 on page
19, that provides for an energy report from the governor, and
offered Conceptual Amendment 9 which would require an
organization report.
11:01:40 AM
CO-CHAIR EDGMON asked for clarification.
11:01:46 AM
REPRESENTATIVE RAMRAS said:
Insert the conceptual amendment perhaps at the end of
line 10, you can certainly see on line 9 where it says
'to structure state energy programs and offices to
increase the coordination and efficiency of the
state's efforts.' So I think I'll insert with
appropriate language drafted by leg legal after
'state's efforts' 'and to develop an organization
chart that ...
11:03:04 AM
CO-CHAIR EDGMON observed the intent of the conceptual amendment
was captured. He then objected for the purpose of discussion,
and asked whether the conceptual amendment affected other
provisions in the bill.
11:03:35 AM
REPRESENTATIVE RAMRAS surmised the amendment belonged in Sec.
27.
11:03:53 AM
CO-CHAIR MILLETT recalled the difficulty she had informing the
U. S. Department of Energy who Alaska's energy leaders are.
Although AEA is the energy department, she said, "We have all
sorts of things spread out through different departments." Co-
Chair Millett stated her continued hope for a new office or
department of energy, and observed, "An org chart is sure a good
first start to looking at how we are structured within the state
of Alaska."
11:06:45 AM
CO-CHAIR EDGMON agreed. He recalled that Massachusetts was a
good model for an energy response team at the state level. He
said he also supports Conceptual Amendment 9, and suggested on
page 19, line 10, insert "and to develop an organizational chart
that describes state services and programs in their entirety."
11:08:04 AM
REPRESENTATIVE RAMRAS supported the suggested language.
11:08:09 AM
REPRESENTATIVE TUCK advised "energy" should precede "services."
11:08:22 AM
CO-CHAIR EDGMON agreed and withdrew his objection.
11:08:55 AM
Conceptual Amendment 9 was treated as adopted.
The committee took an at-ease from 11:08 a.m. to 11:14 a.m.
11:14:00 AM
CO-CHAIR EDGMON invited Senator McGuire to address the fiscal
impact of the bill.
11:14:11 AM
SENATOR MCGUIRE advised there was a misunderstanding about the
fiscal impact of the bill.
11:15:16 AM
MR. PAWLOWSKI called the committee's attention to fiscal note 8,
dated 4/10/10, in the amount of [$390,300], and fiscal note 7,
dated 4/9/10, in the amount of $276,500. He pointed out that
$276,500 to the Alaska Industrial Development and Export
Authority (AIDEA) comes from funding within the Department of
Commerce, Community, & Economic Development (DDCED); thus the
actual number is $390,300. The total funding associated with SB
220 is $523,600 on the fiscal note attached to the bill.
11:16:35 AM
CO-CHAIR EDGMON spoke of the energy policy bill with a zero
fiscal note attached.
11:17:03 AM
CO-CHAIR MILLETT expressed her satisfaction with the work of the
committee and said, "Going through this process with the Senate,
and two of the smartest Senators on energy, has been a learning
experience." She opined the cooperation between the House and
Senate committees resulted in a bill with numerous, long-lasting
benefits to Alaskans.
11:18:25 AM
REPRESENTATIVE PETERSEN pointed out that SB 220 does not create
a board of directors for AEA that is separate from the board of
directors for AIDEA.
11:19:18 AM
CO-CHAIR EDGMON reminded the committee of other proposed
legislation that expanded the board membership of AIDEA from two
public sector members to five public sector members.
CO-CHAIR MILLETT agreed, and added that influence from the
private sector will be felt.
11:20:29 AM
REPRESENTATIVE JOHANSEN appreciated the hard work of both
committees. Senate Bill 220 is part of Alaska's energy policy
"package" to be completed and embraced by both bodies for the
benefit of the public.
11:21:32 AM
CO-CHAIR EDGMON commended the committee staff for both bodies.
He observed "this discussion, in many respects, is just
starting."
11:22:27 AM
CO-CHAIR MILLETT moved to report CSSB 220(FIN), [version] B, [as
amended], out of committee with individual recommendations and
the accompanying fiscal notes. There being no objection, HCS
CSSB 220(ENE) was reported out of the House Special Committee on
Energy.
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