Legislature(2009 - 2010)BARNES 124
02/23/2010 03:00 PM House ENERGY
Audio | Topic |
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Start | |
HJR45 | |
HB296 | |
HB303 | |
HB31 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | HB 31 | TELECONFERENCED | |
*+ | HB 303 | TELECONFERENCED | |
+= | HB 296 | TELECONFERENCED | |
*+ | HJR 45 | TELECONFERENCED | |
+ | TELECONFERENCED |
HB 303-SMALL BUSINESS ENERGY EFFICIENCY GRANTS 3:54:17 PM CO-CHAIR MILLETT announced that the next order of business would be HOUSE BILL NO. 303, "An Act establishing the Alaska energy efficient small business grant fund and program." 3:54:25 PM REPRESENTATIVE KURT OLSON, Alaska State Legislature, thanked the committee for its work and introduced his aide. 3:55:20 PM JENNIFER SENETTE, Staff, Representative Kurt Olson, Alaska State Legislature, introduced HB 303 on behalf of Representative Olson, prime sponsor. Ms. Senette referred to Alaska Housing Finance Corporation's (AHFC) successful home energy rebate program and said that this legislation was intended to open that program to small businesses. HB 303 would allow small business owners wishing to ameliorate the energy efficiency of their buildings to receive a rebate for some of the expenditures. As with the homeowner program, HB 303 would require an energy efficiency rater evaluate the business structure to be retrofitted before and after the improvements. The amount of the rebate would be determined by the amount of energy efficiency gained by making the improvements, and by receipts for the completed work and materials. The bill sets three guidelines for the businesses to meet in order to qualify for the program. Firstly, the assessed value of the structure to be retrofitted cannot exceed $1 million. Secondly, the structure must be owned by a person or persons licensed by the state and with no outstanding liabilities to the state. Thirdly, the structure must meet criteria adopted by AHFC. Ms. Senette anticipated questions and noted that representatives from AHFC and the Alaska Energy Authority (AEA) were available to testify. 3:58:09 PM REPRESENTATIVE DAHLSTROM observed that a small business may be operated out of a home or garage. She surmised that type of small business would not qualify. MS. SENETTE suggested the bill sponsor would be willing to work on that point. 3:59:05 PM REPRESENTATIVE DAHLSTROM stated her belief in the sponsor's intent to include businesses, such as sub-contractors and day care owners, who may work at home. CO-CHAIR EDGMON asked whether a non-resident small business owner would qualify. 3:59:50 PM MS. SENETTE responded that there is no language in the bill that requires residency. CO-CHAIR EDGMON asked whether the rater concept is the same as the residential users. 4:00:43 PM MS. SENETTE said yes. HB 303 is intended to "mirror" the home energy rebate program. She suggested more details could be provided by AHFC. 4:01:06 PM CO-CHAIR EDGMON expressed his concern about the bill because of the limited amount of funds available for residential users of the home energy rebate program. Since only 10 percent of the state has participated, a vast number of homes in the state have yet to participate. Co-Chair Edgmon understood the benefits of helping small businesses; however, he cautioned against diverting money and preventing residential users from getting rebates on their homes. 4:02:28 PM REPRESENTATIVE OLSON recalled there were problems in drafting the bill during the interim because the amount of surplus funds was unknown, and the success of the new AHFC program was also unknown. He surmised that there is a fair amount of surplus and said, "But again, that's probably something that will be dealt with by the finance committee." REPRESENTATIVE TUCK referred to page 2, line 7, of the bill, and asked whether a business owner who leased property for the business would qualify. 4:04:05 PM MS. SENETTE said the bill is intended for the owner of the business. 4:04:14 PM REPRESENTATIVE TUCK gave an example of a business owner who wanted to install new windows in a space he or she leased. MS. SENETTE said she will have to get back to the committee in this regard. 4:04:57 PM REPRESENTATIVE DAHLSTROM asked whether the sponsor objected to the addition of a residency requirement. REPRESENTATIVE OLSON indicated no. REPRESENTATIVE DAHLSTROM said a residency requirement is essential. 4:05:35 PM REPRESENTATIVE PETERSEN noted that many small business owners who operate from a leased space pay for utilities and may not be able to talk the building owner into making energy improvements. He asked whether the sponsor knows how to help an owner in that situation. 4:06:57 PM REPRESENTATIVE OLSON voiced the sponsors' intent to start small, get the program up and running, and let it develop and grow. 4:07:22 PM CO-CHAIR MILLETT observed that although she understood the concern for businesses located in malls, the intent was truly for small business. BRYAN BUTCHER, Director, Governmental Affairs & Public Relations, Alaska Housing Finance Corporation (AHFC), Department of Revenue (DOR), in response to Co-Chair Edgmon, explained that AHFC does not have a definition of a small business. He deferred to the bill sponsor. 4:08:51 PM CO-CHAIR EDGMON relayed his support of the concept of HB 303, but perhaps not the mechanism. He suggested a loan program may be better. He then asked for AHFC's position on the impact HB 303 would have on the residential homeowner energy rebate program. 4:10:20 PM MR. BUTCHER acknowledged that home energy rebate program funds are fully encumbered, although funds will become available from those who do not complete the program. Furthermore, the weatherization funds will be spent in FY 2011. It is certain that the passage of HB 303 will require additional funding. He said the possibilities for a loan program may include a revolving loan fund with energy performance contracting. In response to an earlier question as to how the energy audits would work for this, he explained that the AKwarm software that is used for the ratings on the residential program is being expanded for use on commercial buildings. 4:11:57 PM CO-CHAIR EDGMON expressed his sense of discomfort with the bill as it currently stands, and gave the example of a $10,000 rebate approved for a $1 million building. He suggested that the bill sponsor consider a separate program that the legislature would put more money into. In that case, he would also support more money for the current residential and weatherization programs. Co-Chair Edgmon said further conversations about helping small businesses, residential users, and housing authorities with weatherization money should take place in the House Finance Committee. He said, "I am saying that I do have a level of discomfort with the bill as it's presently structured because I think there are some fundamental issues that need to be addressed somewhere along the line." 4:14:00 PM REPRESENTATIVE JOHANSEN referred to page 2, line 4, of the bill, and asked whether AHFC provided loans for small businesses for new structures. MR. BUTCHER answered that AHFC is strictly residential and does not have relationships with small businesses. He opined this language is probably fashioned on the home energy rebate program in that owners can qualify for a rebate if they build a new, 5 Star Plus home. 4:15:04 PM REPRESENTATIVE EDGMON asked whether the AKwarm software has to be updated for use on businesses. MR. BUTCHER said yes, but that is something AHFC is already doing as part of negotiations with the Department of Energy (DOE) and for requirements in other legislation. CO-CHAIR EDGMON asked whether another mechanism might incorporate this concept. MR. BUTCHER acknowledged that this could be discussed. 4:16:37 PM CO-CHAIR MILLETT relayed that the sponsor offered the bill as an amendment to the energy omnibus bill, so that option remains available to the committee. 4:17:13 PM REPRESENTATIVE TUCK referred to page 2, line 14, of the bill, and asked whether a business owner with several properties would qualify for improvements to only one property. MR. BUTCHER imagined it would be a situation where only one address could be used one time, although this would be discussed as the program is set up. [Co-Chair Millett turned the gavel over to Co-Chair Edgmon.] 4:18:47 PM REPRESENTATIVE TUCK gave several examples of business ownership. MR. BUTCHER confirmed that AHFC would talk to the Department of Commerce, Community, & Economic Development (DCCED) and the Alaska Energy Authority (AEA) in this regard. 4:20:02 PM REPRESENTATIVE RAMRAS also called attention to page 2, line 14, of the bill. He pointed out the difficulty in establishing the value of a commercial building in rural areas, and unorganized boroughs, where there is no tax assessment by a municipality. Representative Ramras questioned AHFC's ability to establish parity between commercial buildings in Dillingham, Ekwok, Fairbanks, and Anchorage. [Co-Chair Edgmon returned the gavel to Co-Chair Millett.] 4:21:38 PM MR. BUTCHER deferred the question to AEA as AHFC does not have this expertise. 4:22:09 PM REPRESENTATIVE RAMRAS re-stated his question as to the methodology to assess the value of a building, especially in rural areas or an unorganized borough, in order to ascertain the dollar value and observe the guidelines and procedures referred to in the bill. 4:22:35 PM SARA FISHERGOAD, Deputy Director, Operations, Alaska Industrial Development & Export Authority (AIDEA) and Alaska Energy Authority (AEA), Department of Commerce, Community, & Economic Development, stated she would talk to other experts for guidance. 4:23:12 PM REPRESENTATIVE RAMRAS said this is a significant hurdle. He suggested the solution of making any structure in rural Alaska eligible for the credit. Other suggestions were to use the population density in the community or the number of employees as the method for determining eligibility. 4:24:41 PM REPRESENTATIVE PETERSEN pointed out the need for a definition of "small business." He recalled that the federal definition of small business is one with 100 employees or less; however, in most of Alaska, a business with 99 employees is not considered small. This definition may vary in different areas of the country. 4:25:56 PM CO-CHAIR MILLETT noted several questions on the bill. She said she and Co-Chair Edgmon intend to hold the bill but continue the discussion. 4:26:17 PM REPRESENTATIVE OLSON informed the committee that one of the concepts was to establish value on a square footage basis, which would get around the regional issue. REPRESENTATIVE TUCK also supported the square footage concept. 4:27:47 PM REPRESENTATIVE RAMRAS assured members he is a small businessman, even though he has 250 employees, when compared to the giants that he is competing against. For example, Silver Bay Seafoods in Sitka moves 31 million pounds of seafood, but is small when compared to Ocean Beauty and Trident Seafood. He urged that the numeric values of employees should not be used to determine what is a small business. 4:29:23 PM CO-CHAIR EDGMON observed that the intertie between energy and economics is very real. He expressed his support of efforts by the legislature to help small businesses, such as commercial fishermen, through loan programs or in other ways. 4:30:15 PM CO-CHAIR MILLETT announced that HB 303 was held pending forthcoming amendments.
Document Name | Date/Time | Subjects |
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HB 31 sectional summary.PDF |
HENE 3/24/2009 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 31 |
HB0031A.pdf |
HENE 2/23/2010 3:00:00 PM |
HB 31 |
HB 31 Amendment Sectional Summary.PDF |
HENE 2/16/2010 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 31 |
HB 31 sponsor statement.PDF |
HENE 3/24/2009 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 31 |
HB 31 net metering map.PDF |
HENE 3/24/2009 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 31 |
HB 31 NHA Waterpower.PDF |
HENE 2/23/2010 3:00:00 PM |
HB 31 |
HB 296 SEP bonds Sponsor Statement.pdf |
HENE 2/9/2010 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 296 |
HB0296-1-1-011910-REV-N.pdf |
HENE 2/9/2010 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 296 |
HB0296-2-1-011910-DOT-N.pdf |
HENE 2/9/2010 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 296 |
HB 296 Amendment 1.PDF |
HENE 2/23/2010 3:00:00 PM |
HB 296 |
AM#2 HB296.pdf |
HENE 2/9/2010 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 296 |
HB0296A.pdf |
HENE 2/23/2010 3:00:00 PM |
HB 296 |
HB 303 Sponsor Statement.PDF |
HENE 2/16/2010 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 303 |
HB 303 Sectional Summary.PDF |
HENE 2/16/2010 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 303 |
HB303-REV-AHFC-2-14-10 AFHC Small Business Energy Loans.pdf |
HENE 2/16/2010 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 303 |
HB0303A.pdf |
HENE 2/16/2010 3:00:00 PM HENE 2/23/2010 3:00:00 PM |
HB 303 |
HJR045A.pdf |
HENE 2/23/2010 3:00:00 PM |
|
Gov Cap and Trade.pdf |
HENE 2/23/2010 3:00:00 PM |
|
Energy Committee Agenda 02232010.pdf |
HENE 2/23/2010 3:00:00 PM |
|
HB 303 NFIB Support.pdf |
HENE 2/23/2010 3:00:00 PM |
HB 303 |
HB 303 Amendment 1 Petersen.PDF |
HENE 2/23/2010 3:00:00 PM |
HB 303 |
HJR 45 fiscal note.pdf |
HENE 2/23/2010 3:00:00 PM |