Legislature(2009 - 2010)BARNES 124
03/16/2010 03:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| HB411 | |
| HB305 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 305 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 411 | TELECONFERENCED | |
HB 305-OMNIBUS ENERGY BILL
CO-CHAIR EDGMON announced that the next order of business would
be HOUSE BILL NO. 305, "An Act relating to energy; relating to
the board of directors of the Alaska Energy Authority; amending
the size and composition of the board of directors of the Alaska
Energy Authority by removing the members of the Alaska
Industrial Development and Export Authority as directors of the
Alaska Energy Authority and providing for designation or
appointment of other members; amending the quorum requirement
for the board of directors of the Alaska Energy Authority; and
relating to nuclear waste material."
3:21:21 PM
CO-CHAIR MILLETT moved Amendment 1, 26-LS1223\E.2, which read:
Page 7, following line 7:
Insert a new bill section to read:
"* Sec. 10. AS 37.07.040 is amended to read:
Sec. 37.07.040. Office of management and budget.
The Alaska office of management and budget shall
(1) assist the governor in meeting the
requirements of AS 37.07.020, including the
coordination and analysis of state agency goals and
objectives, plans, and budget requests;
(2) prepare for submission to the governor
an annually updated six-year capital improvements
program and the proposed capital improvements budget
for the coming fiscal year, the latter to include
individual project justification with documentation of
estimated project cost;
(3) develop procedures to produce the
information needed for effective policy decision
making, including procedures to provide for the
dissemination of information about plans, programs,
and budget requests to be included in the annual
budget and opportunity for public review and comment
during the period of budget preparation;
(4) assist state agencies in their
statement of goals and objectives to achieve, among
other things, the legislature's mission and desired
results, preparation of plans, assessments of the
extent to which missions and desired results have been
achieved, budget requests, and reporting of program
performance; all documents forwarded by the office to
a state agency containing instructions for the
preparation of program plans and budget requests and
the reporting of program performance are public
information after the date they are forwarded;
(5) administer its responsibilities under
the program execution provisions of this chapter so
that the policy decisions and budget determinations of
the governor and the legislature are implemented;
(6) provide the legislative finance
division with the budget information it may request;
(7) provide the legislative finance
division with an advance copy of the governor's budget
workbooks at least seven days before the legislature
convenes in a regular session;
(8) prepare the proposed capital
improvements budget for the coming fiscal year
evaluating both state and local requests from the
standpoint of need, equity, and priorities of the
jurisdiction; other factors such as project amounts,
population, local financial match, federal funds being
used for local match, municipality or unincorporated
community acceptance of the facility, and all
associated costs of the facility may be considered;
(9) for each department in the executive
branch, report to the legislature by the 45th day of
each regular session the amount of money appropriated
to the department that is expected to lapse into the
general fund at the end of the current fiscal year;
(10) establish and administer a state
agency program performance management system involving
planning, performance budgeting, performance
measurement, and program evaluation; the office shall
ensure that information generated under this system is
useful for managing and improving the efficiency and
effectiveness of agency operations;
(11) by January 15, list each lease-
purchase agreement entered into by an agency during
the immediately preceding fiscal year for the
acquisition of equipment or other personal property,
together with a description of the property acquired
and financial details, including the purchase price,
the term for payments, the amount of each payment, and
the amount of interest or financing charges paid;
(12) work with state agencies to develop a
standardized methodology to collect and store energy
consumption and expense data."
Renumber the following bill sections accordingly.
Page 13, line 28, through page 14, line 16:
Delete all material and insert:
"* Sec. 21. 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 related 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."
Page 19, line 19:
Delete "sec. 16"
Insert "sec. 17"
Page 19, lines 19 - 20:
Delete "sec. 17"
Insert "sec. 18"
Page 19, following line 20:
Insert a new bill section to read:
"* Sec. 37. AS 44.42.067(d), enacted by sec. 21 of
this Act, is repealed January 1, 2021."
Renumber the following bill sections accordingly.
Page 19, line 24:
Delete "sec. 22"
Insert "sec. 23"
Page 20, following line 2:
Insert a new bill section to read:
"* Sec. 40. The uncodified law of the State of
Alaska is amended by adding a new section to read:
OFFICE OF MANAGEMENT AND BUDGET. Not later than
November 1, 2010, the Office of Management and Budget
shall develop a standardized methodology to collect
and store energy consumption and expense data as
described in AS 37.07.040(12), as enacted by sec. 10
of this Act."
Renumber the following bill section accordingly.
REPRESENTATIVE DAHLSTROM objected.
3:22:00 PM
ADAM BERG, staff, Representative Bryce Edgmon, Alaska State
Legislature, explained that Amendment 1 adds a new section
asking the Office of Management & Budget (OMB), Office of the
Governor, to develop a standardized methodology to collect and
store energy consumption and expense data. The amendment also
replaces the existing retrofit section with new language, and
adds a new section that repeals the retrofit section on 1/1/21.
Further, the amendment adds a section in uncodified law giving
OMB until 11/1/10 to develop the aforementioned methodology.
3:23:37 PM
REPRESENTATIVE TUCK asked whether the amendment addressed was
section 20.
3:23:49 PM
MR. BERG said sec. 20 was renumbered to sec. 21.
3:23:59 PM
REPRESENTATIVE DAHLSTROM removed her objection. There being no
further objection, Amendment 1 was adopted.
3:24:16 PM
CO-CHAIR MILLETT moved Amendment 2, 26-LS1223\E.3, which read:
Page 1, line 12, following "material":
Insert "; directing the Department of
Transportation and Public Facilities to prepare a
report on the feasibility of using compressed natural
gas to power vehicles in the state, including vehicles
owned or operated by the state, and including in that
study, if warranted, a pilot program proposal for
powering some vehicles owned or operated by the state
with compressed natural gas"
Page 20, following line 2:
Insert a new bill section to read:
"* Sec. 38. The uncodified law of the State of
Alaska is amended by adding a new section to read:
USE OF COMPRESSED NATURAL GAS TO POWER VEHICLES;
PILOT PROGRAM; STUDY; PROPOSAL; REPORT. (a) The
Department of Transportation and Public Facilities
shall, under the authority of AS 44.42.020(a)(3),
study the feasibility of using compressed natural gas
to power vehicles in the state. The study must
(1) review existing government programs and
incentives offered in Utah and other North American
jurisdictions that promote the use of compressed
natural gas to power vehicles;
(2) review and summarize relevant studies
and investigations on existing public policy
incentives that encourage the use of compressed
natural gas to power vehicles;
(3) evaluate the environmental benefits and
technical merits of using compressed natural gas to
power vehicles;
(4) consider the economic, environmental,
and technological advantages and disadvantages of
using and promoting the use of compressed natural gas
to power vehicles in the state; and
(5) if warranted by the findings of the
study, set out a proposal for a pilot program in the
state to test the use of compressed natural gas to
power vehicles owned or operated by the state; the
proposal must
(A) recommend the most cost-effective and
appropriate departments and geographic locations for a
pilot program;
(B) detail how the pilot program, if
successful, could be expanded to provide for increased
use of compressed natural gas to power vehicles owned
or operated by the state, as well as privately owned
or operated vehicles;
(C) estimate the costs to the state of a
pilot program in which the state would purchase
vehicles powered by compressed natural gas or convert
existing vehicles to be powered by compressed natural
gas, including
(i) the costs of maintaining vehicles
powered by compressed natural gas and training
maintenance personnel;
(ii) the costs of adapting, or encouraging
the adapting of, state vehicle fueling locations to
provide compressed natural gas;
(iii) the costs of using compressed natural
gas instead of diesel fuel or gasoline;
(iv) the costs of expanding the pilot
program or developing additional pilot programs under
(B) of this paragraph;
(v) other costs or savings that can be
reasonably expected to accompany the pilot program.
(b) The Department of Transportation and Public
Facilities shall prepare a report containing the
results of the study under (a) of this section not
later than June 30, 2010. The department shall notify
the legislature when the report is available."
Renumber the following bill section accordingly.
CO-CHAIR EDGMON objected for purposes of discussion.
3:24:37 PM
MR. BERG explained Amendment 2 adds a new section into
uncodified law directing the Department of Transportation &
Public Facilities (DOT&PF) to study the feasibility of using
compressed natural gas in vehicles, and to determine whether a
pilot program is warranted. Further, DOT&PF would have until
6/30/11 to prepare the report.
3:25:02 PM
REPRESENTATIVE TUCK recommended that the state obtain
information from ENSTAR Natural Gas Company regarding the
portion of its fleet of vehicles that were fueled by natural
gas.
3:25:33 PM
REPRESENTATIVE PETERSEN confirmed that Amendment 2 authorizes a
study of the feasibility.
3:25:51 PM
CO-CHAIR EDGMON indicated yes.
3:25:57 PM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 2 was adopted.
3:26:09 PM
CO-CHAIR MILLETT moved Amendment 3, 26-LS1223\E.4, which read:
Page 20, following line 2:
Insert a new bill section to read:
"* Sec. 38. The uncodified law of the State of
Alaska is amended by adding a new section to read:
EXHAUSTION OF UNUSED RENEWABLE ENERGY REFUNDABLE
TAX CREDITS. Notwithstanding the repeal of
AS 43.98.040 by sec. 35 of this Act, an unused portion
of a tax credit acquired under AS 43.98.040, enacted
by sec. 17 of this Act, may be carried forward until
exhausted, except that the unused portion of the tax
credit may not be carried forward to tax years
beginning after December 31, 2023."
Renumber the following bill section accordingly.
3:26:36 PM
CO-CHAIR EDGMON objected for purposes of discussion.
3:26:40 PM
MR. BERG explained Amendment 3 adds a new section to uncodified
law that mandates that unused portions of tax credits acquired
through sec. 17 of the Committee Substitute (CS) would not be
carried forward to tax years beginning after 12/31/23.
3:26:48 PM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 3 was adopted.
3:26:54 PM
CO-CHAIR MILLETT moved Amendment 4, 26-LS1223\E.5, which read:
Page 4, line 29:
Delete "or"
Insert "facility,"
Page 8, lines 2 - 3:
Delete all material and insert:
"(4) require activity reports for each
project funded at intervals determined by the
authority"
CO-CHAIR EDGMON objected for purposes of discussion.
3:27:10 PM
MR. BERG explained that Amendment 4 was a technical amendment
clarifying language.
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 4 was adopted.
3:27:38 PM
CO-CHAIR MILLETT moved Amendment 5, 26-LS1223\E.6, which read:
Page 8, line 9, through page 10, line 9:
Delete all material and insert:
"* Sec. 14. AS 42.45 is amended by adding a new
section to read:
Article 7A. Emerging Energy Technology Fund.
Sec. 42.45.375. Emerging energy technology fund.
(a) The emerging energy technology fund is
established. The fund consists of
(1) money appropriated to the fund by the
legislature to provide grants for energy projects;
(2) amounts deposited under (f) of this
section; and
(3) gifts, bequests, contributions from
other sources, and federal money appropriated to the
fund.
(b) The fund is not a dedicated fund.
(c) The fund shall be administered by the
authority, but the authority may contract for the
investment of money appropriated to the fund but not
disbursed for a grant. The authority, in consultation
with the advisory committee established under (g) of
this section, may make grants from the fund to
eligible applicants for
(1) research, development, or demonstration
projects designed to
(A) test new energy technologies or methods
of conserving energy; or
(B) improve an existing energy technology;
and
(2) applied research projects that employ
energy technology with a reasonable expectation that
the technology will be commercially viable in not more
than five years.
(d) In making grants under this section, the
authority, in consultation with the advisory committee
established under (g) of this section, shall give
priority to
(1) Alaska residents, associations,
organizations, or institutions;
(2) projects that demonstrate partnership
with the University of Alaska or another Alaska
postsecondary institution; and
(3) projects supported by matching funds or
in-kind partnerships.
(e) In administering the fund, the authority may
enter into a contract or agreement with the University
of Alaska to provide technical and economic analysis
for the advisory committee established under (g) of
this section and a review of the projects awarded
grants.
(f) As a condition of all grants awarded under
this section, the authority shall require that the
grantee pay to the authority a fair and reasonable
return to the fund, as determined by the authority,
from the revenue, economic value, or profits derived
by the grantee from the grant project. The authority
shall deposit the amounts received under this
subsection into the fund. To secure payment of sums
owed to the authority under a grant agreement, the
authority may own and take a security interest in
patents, copyrights, and other intellectual property.
(g) An advisory committee is established and
consists of seven members. Each member of the
committee shall have a degree in science or
engineering, or equivalent professional experience,
and at least two years of experience working in the
state. Members of the committee shall be appointed by
the governor to staggered three-year terms. The
committee consists of one representative of each of
the following groups:
(1) a business or organization engaged in
the renewable energy sector;
(2) a business or organization engaged in
the fossil fuel energy sector;
(3) the Alaska Power Association or an
Alaska electric utility;
(4) the Denali Commission established under
P.L. 105-277 and mentioned in a note at 42 U.S.C.
3121;
(5) the National Renewable Energy
Laboratory;
(6) the Arctic Energy Office of the
National Energy Technology Laboratory;
(7) the Alaska Industrial Development and
Export Authority.
(h) A member of the advisory committee appointed
under (g) of this section serves without compensation
but is entitled to per diem and travel expenses as
provided in AS 39.20.180.
(i) If a member of the advisory committee
appointed under (g)(4), (g)(5), or (g)(6) is not
available to serve as a member of the committee, the
governor shall appoint a representative from a federal
agency or department with a comparable mission or
purpose to the agency listed in (g)(4), (g)(5), or
(g)(6) to fill the position on the committee. If a
representative from a federal agency or department is
not available to fill the position, the governor may
appoint a member from a state agency or department.
(j) In this section,
(1) "eligible applicant" means
(A) an electric utility holding a
certificate of public convenience and necessity under
AS 42.05;
(B) an independent power producer;
(C) a local government, quasi-governmental
entity, or other governmental entity, including a
tribal council or housing authority;
(D) a business holding an Alaska business
license; or
(E) a nonprofit organization.
(2) "energy technology" means technology
that promotes, enhances, or expands the diversity of
available energy supply sources or means of
transmission, increases energy efficiency, or reduces
negative energy-related environmental effects; "energy
technology" includes technology related to renewable
sources of energy, conservation of energy, enabling
technologies, efficient and effective use of
hydrocarbons, and integrated energy systems;
(3) "fund" means the emerging energy
technology fund."
3:27:55 PM
The committee took an at-ease from 3:27 p.m. to 3:28 p.m.
CO-CHAIR MILLETT offered Conceptual Amendment 1 to Amendment 5.
She read:
Page 1, after line 11, insert (a) Investments to be
managed by the Department of Revenue which shall be
the fiduciary of the fund under AS 37.10.017, and then
ask that legal be allowed to do any clean-up
associated with having revenue be the fiduciary.
3:29:05 PM
CO-CHAIR EDGMON objected to Amendment 5 for purposes of
discussion.
3:29:23 PM
SARA FISHERGOAD, Deputy Director-Operations, Alaska Industrial
Development & Export Authority (AIDEA) and Alaska Energy
Authority (AEA), Department of Commerce, Community, & Economic
Development (DCCED), explained that the purpose of the amendment
is to establish consistency with the renewable energy fund of
which the Department of Revenue (DOR) is the fiduciary.
CO-CHAIR MILLETT re-stated Conceptual Amendment 1 to Amendment
5.
3:30:34 PM
CO-CHAIR EDGMON withdrew his objection to Conceptual Amendment
1. There being no further objection, Conceptual Amendment 1 was
adopted. Amendment 5, as amended, was before the committee.
3:31:20 PM
MR. BERG explained that Amendment 5, as amended, replaces the
existing emerging energy technology fund language with language
that allows the Alaska Energy Authority (AEA) to enter into a
contract or agreement with the University of Alaska to provide
technical and economic analysis, and requires the grantee to pay
AEA a reasonable return to the fund from the grant project. In
addition, it expands the advisory committee from five to seven
members, adding a member from the Arctic Energy Office of the
National Energy Technology Laboratory, Department of Energy, and
a member from AIDEA.
3:32:17 PM
REPRESENTATIVE TUCK referred to the committee structure on page
2 of the amendment, and pointed out that each member is required
to have a degree in science or engineering, or equivalent
professional experience. He asked whether including a consumer
member was discussed.
3:33:36 PM
CO-CHAIR MILLETT stated that the language is consistent with
other boards and commissions that operate at a technical level
of expertise.
3:34:12 PM
CO-CHAIR EDGMON noted a member can be from a nonprofit
organization.
3:34:22 PM
CO-CHAIR EDGMON removed his objection to Amendment 5, as
amended. There being no further objection Amendment 5, as
amended, was adopted.
3:34:39 PM
CO-CHAIR MILLETT moved Amendment 6, 26-LS1223\E.7, which read:
Page 11, line 21, following "energy":
Insert "or $30,000,000 for each project,
whichever is less"
Page 12, following line 6:
Insert a new paragraph to read:
"(3) "project" means a plant, works,
system, or facility, together with related or
necessary facilities and appurtenances, including a
divided or undivided interest in or a right to the
capacity of a power project or project, that is used
or is useful for the purpose of renewable energy
production;"
Renumber the following paragraph accordingly.
3:34:46 PM
CO-CHAIR EDGMON objected for purposes of discussion.
3:34:53 PM
MR. BERG explained that Amendment 6 would cap the renewable
energy refundable tax credits at $30 million per project, or 10
percent of the capital investment, whichever is less, and adds a
definition of "project."
3:35:22 PM
REPRESENTATIVE TUCK observed this tax credit would be for major
projects.
3:35:37 PM
MR. BERG indicated yes, for projects of $300 million or more.
3:35:47 PM
CO-CHAIR EDGMON removed his objection to Amendment 6. There
being no further objection, Amendment 6 was adopted.
3:36:02 PM
CO-CHAIR MILLETT moved Amendment 7, 26-LS1223\E.8, which read:
Page 16, line 28:
Delete "prior to"
Insert "before"
CO-CHAIR EDGMON objected for purposes of discussion.
3:36:22 PM
MR. BERG stated Amendment 7 was a stylistic amendment to
language.
3:36:29 PM
CO-CHAIR EDGMON removed his objection to Amendment 7. There
being no further objection, Amendment 7 was adopted.
3:36:39 PM
CO-CHAIR MILLETT moved Amendment 8, 26-LS1223\E.9, which read:
Page 19, line 20:
Delete "2025"
Insert "2018"
CO-CHAIR EDGMON objected for purposes of discussion.
3:36:46 PM
MR. BERG stated that Amendment 8 changed the repeal year for the
tax credit statutes from 2025 to 2018.
3:37:26 PM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 8 was adopted.
3:37:51 PM
CO-CHAIR MILLETT moved Amendment 9, 26-LS1223\E.10, which read:
Page 1, line 12:
Delete "and nuclear waste material"
Page 19, line 17:
Delete "AS 18.45.027;"
CO-CHAIR EDGMON objected for the purpose of discussion.
3:37:59 PM
MR. BERG advised Amendment 9 deleted the repeal of the statute
found in the CS that prohibits the transportation of high level
nuclear waste material.
3:38:36 PM
REPRESENTATIVE PETERSEN assumed that the deletion would actually
allow the transportation of nuclear material.
3:38:55 PM
MR. BERG said no. This amendment removed the repeal of the
prohibition.
3:39:10 PM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 9 was adopted.
3:39:36 PM
REPRESENTATIVE PETERSEN moved Amendment 10, 26-LS1223\E.ll,
which read:
Page 2, following line 1:
Insert a new bill section to read:
"* Section 1. The uncodified law of the State of
Alaska is amended by adding a new section to read:
LEGISLATIVE FINDINGS. For the purpose of sec. 5
of this Act, the legislature finds that a provision
requiring a binding contract for the disposal or
storage of nuclear waste before a permit may be issued
is necessary for regulating the economics of nuclear
power and that having a contract in place is a needed
sign of the economic viability of a project."
Page 2, line 2:
Delete "Section 1"
Insert "Sec. 2"
Renumber the following bill sections accordingly.
Page 5, line 15:
Delete "[(1)"
Insert "(1) ["
Page 5, line 17:
Delete "[; AND"
Insert "; and
(2) a person has provided evidence
satisfactory to the department that a binding contract
is in place for the disposal and storage of any
nuclear waste"
Page 5, line 18:
Delete "(3)"
Insert "[(3)"
Page 19, line 19:
Delete "sec. 16"
Insert "sec. 17"
Page 19, lines 19 - 20:
Delete "sec. 17"
Insert "sec. 18"
Page 19, line 24:
Delete "sec. 22"
Insert "sec. 23"
CO-CHAIR EDGMON objected for the purposes of discussion.
3:40:21 PM
REPRESENTATIVE PETERSEN explained that Amendment 10 requires
that a nuclear project has a binding contract in place for the
storage and disposal of nuclear waste before the project can be
permitted. In addition, the amendment includes a finding that
[the contract] is essential to regulating the economics of
nuclear power and its economic viability. The amendment also
prevents the state from being on the hook for the storage and
disposal [of nuclear waste] should a nuclear project fall into
bankruptcy. Representative Petersen opined the finding is
necessary because states are only allowed to regulate the
economics of nuclear projects, and the U.S. Nuclear Regulatory
Commission (NRC) regulates other aspects of nuclear power.
3:41:18 PM
REPRESENTATIVE RAMRAS observed there are no nuclear power plants
in Alaska and asked for the relevancy of the amendment.
3:41:53 PM
REPRESENTATIVE PETERSEN advised there has been discussion about
building nuclear facilities; furthermore, the adoption of a
long-range energy policy such as HB 305 should cover any areas
of future energy development.
3:42:05 PM
REPRESENTATIVE DAHLSTROM opined this issue was covered by the
previous amendment.
3:42:50 PM
REPRESENTATIVE PETERSEN pointed out that there would not be
waste to transport until after a facility was open and
operating. This amendment assures there is a storage place for
nuclear waste prior to the opening and operation of a nuclear
facility.
3:44:01 PM
REPRESENTATIVE RAMRAS said this amendment was far-sighted.
3:44:41 PM
A roll call vote was taken. Representatives Tuck and Petersen
voted in favor of Amendment 10. Representatives Dahlstrom,
Ramras, Millett, and Edgmon voted against it. Therefore,
Amendment 10 failed by a vote of 2-4.
3:45:29 PM
REPRESENTATIVE PETERSEN moved Amendment 11, 26-LS1223\E.12,
which read:
Page 5, lines 12 - 19:
Delete all material and insert:
"(c) The Department of Environmental
Conservation shall adopt regulations governing the
issuance of permits required by (a) of this section.
However, a permit may not be issued until
(1) [REPEALED
(2)] the municipality with jurisdiction
over the proposed facility site has approved the
permit; or
(2) for a facility that is not within a
municipality, [AND
(3) REPEALED
(4)] the governor has approved the permit."
3:45:49 PM
CO-CHAIR EDGMON objected for purposes of discussion.
3:45:53 PM
REPRESENTATIVE PETERSEN explained that Amendment 11 would
require that the governor approve any nuclear project that is
not within a municipality before a permit could be issued.
Currently, the governor must approve all nuclear projects unless
the project is in a municipality; however, there are areas of
the state that are unorganized, and this would give the governor
authority over those projects.
3:46:18 PM
A roll call vote was taken. Representatives Petersen and Tuck
voted in favor of Amendment 11. Representatives Dahlstrom,
Ramras, Millett, and Edgmon voted against it. Therefore,
Amendment 11 failed by a vote of 2-4.
3:46:56 PM
REPRESENTATIVE PETERSEN moved Amendment 12, 26-LS1223\E.13,
which read:
Page 7, following line 13:
Insert a new section to read:
"* Sec. 12. AS 42.45.010 is amended by adding a new
subsection to read:
(k) A loan may not be made under this section
for a project involving the production of power from
nuclear energy unless the authority determines that no
other available power source is as cost-effective as
the proposed project involving power production from
nuclear energy."
Renumber the following bill sections accordingly.
Page 19, line 19:
Delete "sec. 16"
Insert "sec. 17"
Page 19, lines 19 - 20:
Delete "sec. 17"
Insert "sec. 18"
Page 19, line 24:
Delete "sec. 22"
Insert "sec. 23"
3:47:03 PM
CO-CHAIR EDGMON objected for the purpose of discussion.
3:47:13 PM
REPRESENTATIVE PETERSEN explained that Amendment 12 requires
that prior to AEA issuing a loan from the power project loan
fund the agency must determine that the proposed project is the
most cost-effective available power source.
3:47:47 PM
REPRESENTATIVE TUCK related that nuclear power has been proven
to be a cost-effective source of power; in fact, the Boeing
Company developed its industry in the State of Washington
because it had cheap energy from nuclear power.
3:49:21 PM
CO-CHAIR MILLETT expressed her belief that nuclear power is
cost-effective and has no carbon emissions. She said she did
not want "to send the signal that we're not open to nuclear
power" to rural communities.
3:50:08 PM
CO-CHAIR EDGMON added that sec. 5 implicitly requires a nuclear
facility to get approval from the legislature prior to
construction.
3:51:20 PM
A roll call vote was taken. Representative Petersen voted in
favor of Amendment 12. Representatives Ramras, Tuck, Dahlstrom,
Millett, and Edgmon voted against it. Therefore, Amendment 12
failed by a vote of 1-5.
3:51:34 PM
REPRESENTATIVE PETERSEN moved Amendment 13, 26-LS1223\E.14,
which read:
Page 2, following line 1:
Insert a new bill section to read:
"* Section 1. The uncodified law of the State of
Alaska is amended by adding a new section to read:
LEGISLATIVE INTENT. For sec. 21 of this Act, it
is the intent of the legislature that the Department
of Transportation and Public Facilities engage in a
partnership with the University of Alaska, nonprofit
organizations, and other organizations to assist in
maintaining the energy audit database in order to
lower the cost to the state."
Page 2, line 2:
Delete "Section 1"
Insert "Sec. 2"
Renumber the following bill sections accordingly.
Page 13, following line 27:
Insert a new bill section to read:
"* Sec. 21. AS 44.42.065 is amended by adding a new
subsection to read:
(d) The department shall
(1) create and maintain a database of the
results of the energy audits of public buildings
performed under (a) of this section; and
(2) make the information in the database
available to the legislature and the public."
Renumber the following bill sections accordingly.
Page 19, line 19:
Delete "sec. 16"
Insert "sec. 17"
Page 19, lines 19 - 20:
Delete "sec. 17"
Insert "sec. 18"
Page 19, line 24:
Delete "sec. 22"
Insert "sec. 24"
CO-CHAIR EDGMON objected for purposes of discussion.
REPRESENTATIVE PETERSEN explained that Amendment 13 requires
DOT&PF create a database from the energy audits that are
conducted every seven years. The cost of the database would be
minimized through partnerships with the university and private
organizations. He opined this is a way to use the audits to
improve energy efficiency.
3:52:07 PM
REPRESENTATIVE RAMRAS asked how many new government positions
are needed to create and maintain the database.
3:52:22 PM
REPRESENTATIVE PETERSEN opined the only additional cost would be
that of the computer disk.
3:52:42 PM
REPRESENTATIVE DAHLSTROM asked whether [the amendment] was
necessary.
3:53:39 PM
JOEL ST. AUBIN, Chief, Statewide Public Facilities, Office of
the Commissioner, Department of Transportation & Public
Facilities (DOT&PF), informed the committee that the database
would not be a large increase in work to the audits: it would
entail putting the audits in a format that people could access.
In further response to Representative Dahlstrom, he said
staffing time for HB 305 is estimated to be one position as
shown in the fiscal note. That same position would cover the
work required by this amendment.
3:56:16 PM
CO-CHAIR EDGMON asked about the effect of putting intent
language in the bill.
3:56:28 PM
MR. ST. ALBIN stated that currently the audits are not done as
the funding to do so has not been received. He clarified that
without the bill, the audits are not done.
3:57:24 PM
REPRESENTATIVE DAHLSTROM further clarified that with the passage
of the bill, the audits will be conducted.
3:57:46 PM
MR. ST. ALBIN assumed the information would be summarized to
create a simple database.
3:58:06 PM
REPRESENTATIVE DAHLSTROM concluded that the intent of the
amendment is accomplished in the bill.
3:58:25 PM
CO-CHAIR MILLETT asked whether the involvement of the university
would complicate the performance based contracting process.
3:58:55 PM
REPRESENTATIVE PETERSEN explained the intent of involving the
university, or the private sector, was to mitigate the cost of
creating and maintaining the database.
3:59:57 PM
A roll call vote was taken. Representatives Tuck and Petersen
voted in favor of Amendment 13. Representatives Johansen,
Dahlstrom, Ramras, Millett, and Edgmon voted against it.
Therefore, Amendment 13 failed by a vote of 2-5.
4:00:21 PM
REPRESENTATIVE PETERSEN moved Amendment 14, 26-LS1223\E.15,
which read:
Page 18, line 8, following "pellet":
Insert "or grain"
CO-CHAIR EDGMON objected for purposes of discussion.
4:00:24 PM
REPRESENTATIVE PETERSEN recalled previous testimony that barley
grown in Alaska is being used as a fuel in wood stoves. This
amendment adds the words "or grain" so barley could be used in
pellet stoves. This type of stove qualifies for federal tax
credits; furthermore, providing a bigger market for Alaskan
barley will spur economic activity and strengthen the economy.
4:00:55 PM
REPRESENTATIVE RAMRAS applauded the maker for this amendment.
Barley is an efficient fuel and he said he supports the
amendment.
4:02:01 PM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 14 was adopted.
4:02:08 PM
REPRESENTATIVE RAMRAS moved Amendment 15, 26-LS1223\E.16, which
read:
Page 13, line 19:
Delete "and"
Page 13, line 20, following "program":
Insert "; and
(4) a residential solid fuel burning device
change out program"
CO-CHAIR EDGMON objected for purposes of discussion.
4:02:22 PM
REPRESENTATIVE RAMRAS advised that the communities of Fairbanks
and Juneau have been identified by the Environmental Protection
Agency (EPA) as non-attainment communities in that they have
consistently failed regulations on particulate matter in the
air. The amendment would insert language allowing a residential
solid fuel burning device change out program to also be allowed
under Sec. 44.38.030.
4:03:29 PM
REPRESENTATIVE TUCK assumed this is a wood stove change out
program instituted by the state.
4:03:45 PM
REPRESENTATIVE RAMRAS related that there is a considerable
problem in Fairbanks with air quality. He reviewed the language
on page 13, lines 16-20, of the bill, before and after the
amendment. The amendment would allow residents to upgrade wood
burning stoves. He stressed that the air quality problem is
more unique than a single region in the state.
4:05:22 PM
REPRESENTATIVE TUCK re-stated his question. He asked whether
this is an option for the state to consider.
REPRESENTATIVE RAMRAS expressed his understanding that this is
another loan program available to consumers.
4:06:06 PM
BRYAN BUTCHER, Director, Governmental Affairs & Public
Relations, Alaska Housing Finance Corporation (AHFC), Department
of Revenue (DOR), stated that the language is taken from AHFC
and moved to what would be a new department of energy. He said
he was unsure whether a "switch-out" would be considered energy
conservation and weatherization. Although this may not be the
appropriate place to put the wood stove program in the bill, it
must be looked at as a separate program, because the current
program is set up to measure the efficiency improvement of a
home. Under the current program, a homeowner can switch from
one heat source to another if the change out improves the energy
efficiency. AHFC has determined that this would have to be a
separate program with separate funding.
4:07:26 PM
CO-CHAIR EDGMON concluded there would be fiscal impacts.
4:07:35 PM
MR. BUTCHER said that depends on whether the program is a grant
or a low-interest loan.
4:07:57 PM
REPRESENTATIVE RAMRAS offered an amendment to Amendment 15, so
that line 6 would read:
(4) a residential solid fuel burning device change out
loan program.
4:08:31 PM
REPRESENTATIVE EDGMON objected to Amendment 1 to Amendment 15
for discussion purposes.
4:08:51 PM
MR. BUTCHER said Amendment 1 alleviates any concern AHFC has
regarding capitalization of the proposed program.
4:08:58 PM
REPRESENTATIVE JOHANSEN pointed out that page 13, line 17, of
the bill includes "without limitation" and opined that would
authorize the pursuit of other relevant programs. He assumed
the intent of Amendment 15 is to highlight concern about this
specific issue.
4:09:39 PM
REPRESENTATIVE RAMRAS said correct.
4:09:48 PM
REPRESENTATIVE TUCK asked whether a resident could apply for a
solid fuel burning device change out under the existing home
energy loan program.
4:10:13 PM
MR. BUTCHER advised legal advice was needed to determine whether
that could fit under the program title.
4:10:36 PM
REPRESENTATIVE RAMRAS stated that legislative drafters suggested
a separate program was appropriate because this speaks to air
quality rather than "more energy."
4:11:13 PM
REPRESENTATIVE PETERSEN asked whether the program is capitalized
sufficiently to make the loans.
4:11:38 PM
MR. BUTCHER indicated yes.
4:11:55 PM
CO-CHAIR EDGMON removed his objection to Amendment 1 to
Amendment 15. There being no further objection, Amendment 1 was
adopted. He then removed his objection to Amendment 15, as
amended. There being no further objection, Amendment 15, as
amended, was adopted.
4:12:25 PM
CO-CHAIR MILLETT moved Amendment 16, 26-LS1223\E.17, which read:
Page 1, line 1:
Delete ", operating costs,"
Page 4, lines 12 - 17:
Delete all material.
Renumber the following bill sections accordingly.
Page 19, line 19:
Delete "sec. 16"
Insert "sec. 14"
Page 19, lines 19 - 20:
Delete "sec. 17"
Insert "sec. 15"
Page 19, line 24:
Delete "sec. 22"
Insert "sec. 20"
4:12:36 PM
CO-CHAIR EDGMON objected for purposes of discussion.
4:12:44 PM
MR. BERG explained Amendment 16 was a technical amendment that
removes sec. 2 and sec. 3 from the CS. This is on advice from
the legal department that the sections go beyond the bounds of
the subject of energy.
4:13:07 PM
CO-CHAIR EDGMON removed his objection. There being no further
discussion, Amendment 16 was adopted.
4:13:35 PM
CO-CHAIR MILLETT moved Amendment 17, 26-LS1223\E.18, which read:
Page 14, line 16:
Delete "or court building"
4:13:58 PM
CO-CHAIR EDGMON objected for purposes of discussion.
4:14:03 PM
MR. BERG stated Amendment 17 is also a technical amendment.
Amendment 17 clarifies sec. 8.
4:14:10 PM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 17 was adopted.
4:14:21 PM
CO-CHAIR MILLETT moved Amendment 18, 26-LS1223\E.19, which read:
Page 1, line 1:
Delete "construction plans"
Insert "energy consumption and costs"
Page 3, lines 13 - 14:
Delete "an operations and maintenance cost
report"
Insert "projected energy consumption and costs"
4:14:31 PM
CO-CHAIR EDGMON objected for purposes of discussion.
4:14:34 PM
MR. BERG advised Amendment 18 changes the terms regarding
responsibilities of the Department of Education and Early
Development (EED), again in order to comply with the single
subject rule.
4:14:53 PM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 18 was adopted.
4:15:02 PM
CO-CHAIR MILLETT moved Amendment 19, 26-LS1223\E.20, which read:
Page 1, line 11, following "fund;":
Insert "relating to the bulk fuel bridge loan
fund; relating to the bulk fuel revolving loan fund
and moving administration of the fund from the Alaska
Energy Authority to the Department of Commerce,
Community, and Economic Development;"
Page 6, following line 22:
Insert new bill sections to read:
"* Sec. 9. AS 29.60 is amended by adding a new
section to article 5 to read:
Sec. 29.60.655. Bulk fuel revolving loan fund.
(a) The bulk fuel revolving loan fund is established
in the department to assist communities, utilities
providing power to communities, and fuel retailers in
communities in purchasing bulk fuel to generate power
or to supply the public with fuel for use in
communities. A community, or a person generating power
or selling fuel in a community that has a written
endorsement from the governing body of a community for
which a loan from the fund is sought, is eligible for
a loan from the bulk fuel revolving loan fund for a
purchase of an emergency supply or a semiannual or
annual supply of bulk fuel to be used in the
community.
(b) The legislature may use money in the fund to
make appropriations for costs of administering this
section.
(c) The foreclosure expense account is
established as a special account within the bulk fuel
revolving loan fund. This account is established as a
reserve from fund equity.
(d) The department may spend money credited to
the foreclosure expense account when necessary to
protect the state's security interest in collateral on
loans made under this section or to defray expenses
incurred during foreclosure proceedings after a
default by an obligor.
(e) Loans made from the bulk fuel revolving loan
fund to one borrower in any fiscal year
(1) may not exceed $750,000, or, if the
borrower is a cooperative corporation organized under
AS 10.15 or an electric cooperative organized under
AS 10.25 and uses the loan to purchase bulk fuel on
behalf of more than one community, may not exceed the
lesser of $750,000 multiplied by the number of
communities on whose behalf the bulk fuel is to be
purchased, or $1,800,000;
(2) shall be repaid in one year or less;
and
(3) may not exceed 90 percent of the
wholesale price of the fuel purchased.
(f) The department may charge interest on a loan
made from the bulk fuel revolving loan fund. The
department shall charge interest on a loan at a rate
equal to the percentage of the average weekly yield of
municipal bonds for the 12 months preceding the date
of the loan, as determined by the department from
municipal bond yield rates reported in the 30-year
revenue index of The Bond Buyer. However, if the
department finds that a community cannot afford to
repay a portion of interest on a loan, and makes a
determination in writing, the department may reduce or
eliminate the interest rate applicable to the loan.
(g) Repayments of the principal, the interest,
and the money chargeable to principal or interest that
is collected through liquidation by foreclosure or
other process on a loan made under this section shall
be paid into the bulk fuel revolving loan fund. The
fund is not a dedicated fund.
(h) The department may contract for the
administration of the bulk fuel loan program
established in this section.
(i) The department shall dispose of property
acquired through default or foreclosure of a loan made
under this section. Disposal shall be made in a manner
that serves the best interests of the state, and may
include the amortization of payments over a period of
years.
(j) The department
(1) may adopt regulations necessary to
carry out the provisions of this section, including
regulations to establish reasonable fees for services
provided and charges for collecting the fees; and
(2) shall prescribe a loan application
form, which may be used for applications for loans
from the fund under this section and for the bulk fuel
bridge loan fund and program under AS 29.60.660.
(k) The department may collect the fees and
collection charges established in regulation under (j)
of this section and shall deposit the money in the
general fund.
(l) In this section,
(1) "community" means an organized
municipality or an unincorporated village that is a
social unit with a population of less than 2,000;
(2) "person" has the meaning given in
AS 01.10.060 and includes a corporation, a
cooperative, a joint venture, and a governmental
entity.
* Sec. 10. AS 29.60.660(b) is amended to read:
(b) A community, utility, fuel retailer, or
other person generating power or supplying fuel in a
community as described in (a) of this section is
eligible to receive a loan from the bulk fuel bridge
loan fund for a purchase of bulk fuel to be used in
the community if the community, utility, fuel
retailer, or other person
(1) has a written endorsement from the
governing body of the community for which a loan from
the fund under this section is sought; and
(2) first applied for and has been denied a
loan from
(A) the bulk fuel revolving loan fund
(AS 29.60.655) [(AS 42.45.250) ADMINISTERED BY THE
ALASKA ENERGY AUTHORITY];
(B) any other funding source used by the
community, utility, fuel retailer, or other person in
the past three years to finance purchases of bulk fuel
for the community; and
(C) any other funding source that the
department determines is available to the community,
utility, fuel retailer, or other person to purchase
bulk fuel.
* Sec. 11. AS 29.60.660(d) is amended to read:
(d) Interest may not be charged on a loan made
from the bulk fuel bridge loan fund, except that a
person receiving a loan from the fund
(1) in two consecutive years shall pay an
interest rate of two percent for the second year; and
(2) in three consecutive years shall pay an
interest rate of four percent for the third year."
Renumber the following bill sections accordingly.
Page 19, line 17, following "AS 18.56.850;":
Insert "AS 42.45.010(b)(3), 42.45.250;"
Page 19, line 19:
Delete "sec. 16"
Insert "sec. 19"
Page 19, lines 19 - 20:
Delete "sec. 17"
Insert "sec. 20"
Page 19, line 24:
Delete "sec. 22"
Insert "sec. 25"
Page 20, following line 2:
Insert a new bill section to read:
"* Sec. 41. BULK FUEL REVOLVING LOAN FUND TRANSFER:
TRANSITION. On the effective date of secs. 9 - 11 of
this Act, the Alaska Energy Authority shall transfer
the personnel responsible for fund management, and the
assets, liabilities, and balance of the bulk fuel
revolving loan fund to the Department of Commerce,
Community, and Economic Development."
Renumber the following bill section accordingly.
Page 20, line 5, following "INSTRUCTION.":
Insert "(a)"
Page 20, following line 7:
Insert a new subsection to read:
"(b) The revisor of statutes shall change the
heading of art. 5 of AS 29.60 from "Bulk Fuel Bridge
Loan Fund and Program" to "Bulk Fuel Loan Funds and
Programs."
[Although there was no objection, the committee heard discussion
on Amendment 19.]
4:15:19 PM
MR. BERG offered that Amendment 19 does three things: combines
the bulk fuel revolving loan fund with the bridge fuel loan fund
housed in the Division of Community and Regional Affairs,
Department of Commerce, Community, & Economic Development
(DCCED); combines the application process for both loan funds;
sets the interest rate for the bridge loan fund. He described
the purpose of the bridge loan fund.
4:16:31 PM
REPRESENTATIVE TUCK assumed the amendment will streamline the
process when a community is declined for a bulk fuel revolving
loan.
4:16:51 PM
MR. BERG agreed that one application, and having both programs
in the same division, would result in immediate assistance.
4:17:06 PM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 19 was adopted.
4:17:20 PM
CO-CHAIR MILLETT moved Amendment 20, 26-LS1223\E.1, which read:
Page 1, line 5, following "credit,":
Insert "to the Alaska heating assistance
program,"
Page 19, following line 16:
Insert new bill sections to read:
"* Sec. 34. AS 47.25.621 is amended to read:
Sec. 47.25.621. Alaska affordable heating
[ASSISTANCE] program. (a) The Alaska affordable
heating [ASSISTANCE] program is established in the
Department of Health and Social Services to provide
expanded eligibility for Alaska residents for home
heating assistance, to the extent funds are available
in the Alaska affordable heating fund [APPROPRIATED BY
THE LEGISLATURE FOR THAT PURPOSE].
(b) The Alaska affordable heating [ASSISTANCE]
program established under this section is in addition
to the federal low-income heating and energy
assistance provided under 42 U.S.C. 8621 - 8629 (Low-
Income Home Energy Assistance Act of 1981), as
amended, and implementing regulations.
* Sec. 35. AS 47.25.621 is amended by adding a new
subsection to read:
(c) The Alaska affordable heating fund is
established as a separate fund to be managed by the
Department of Revenue. The fund consists of
appropriations made to it. Interest earned by the fund
may be appropriated to it. The Department of Health
and Social Services shall use money in the fund for
Alaska affordable heating payments.
* Sec. 36. AS 47.25.622 is amended to read:
Sec. 47.25.622. Duties. The Department of Health
and Social Services [DEPARTMENT] shall
(1) administer the Alaska affordable
heating [ASSISTANCE] program provided under
AS 47.25.621;
(2) adopt regulations under AS 44.62
(Administrative Procedure Act) to carry out the
purpose of the program;
(3) coordinate payments among other heating
assistance programs to avoid duplication of payments.
* Sec. 37. AS 47.25.623 is amended to read:
Sec. 47.25.623. Eligibility; payment amount. An
individual is eligible for home heating assistance
payments under the Alaska affordable heating
[ASSISTANCE] program if the individual
(1) is a resident of the state;
(2) is physically present and resides in a
home in the state when the home heating costs are
incurred;
(3) for assistance calculated under (b) and
(c) of this section, has gross household income not to
exceed, as a percentage of the federal poverty
guideline for Alaska set by the United States
Department of Health and Human Services and revised
under 42 U.S.C. 9902(2),
(A) 225 percent for a determination to be
made under (c)(1) - (3) of this section; and
(B) 250 percent for a determination to be
made under (c)(4) of this section; and [HAS GROSS
HOUSEHOLD INCOME ABOVE 150 PERCENT BUT THAT DOES NOT
EXCEED 225 PERCENT OF THE FEDERAL POVERTY GUIDELINE
FOR ALASKA SET BY THE UNITED STATES DEPARTMENT OF
HEALTH AND HUMAN SERVICES AND REVISED UNDER 42 U.S.C.
9902(2);]
(4) meets other eligibility requirements
specified in regulations adopted under AS 47.25.622.
* Sec. 38. AS 47.25.623 is amended by adding new
subsections to read:
(b) The Department of Health and Social Services
shall determine the number of points for each eligible
individual based on the point formula used under 42
U.S.C. 8621 - 8629 (Low-Income Home Energy Assistance
Act of 1981), as amended, and implementing
regulations. Except as provided in (d) of this
section, the amount of the Alaska affordable heating
payment for an individual equals the base amount
calculated under (c) of this section minus the amount
the individual is eligible to receive under the
federal low-income home energy assistance program
under 42 U.S.C. 8621 - 8629, as amended, and
implementing regulations.
(c) The Department of Health and Social Services
shall calculate the base amount of the Alaska
affordable heating payment for the individual based on
points determined under (b) of this section and on the
average price a barrel of Alaska North Slope crude oil
for sale on the United States West Coast during
September through February of the preceding fiscal
year as follows:
(1) $130 a point when the average price is
not more than $75 a barrel;
(2) $140 a point when the average price is
more than $75 and not more than $100 a barrel;
(3) $150 a point when the average price is
more than $100 and not more than $150 a barrel;
(4) $165 a point when the average price is
more than $150 a barrel.
(d) Under the program authorized by AS 47.25.621
- 47.25.626, taking into consideration the gross
household income rates established in (a) of this
section and the base amounts to be calculated under
(b) and (c) of this section,
(1) if insufficient money is appropriated
to fully fund the Alaska affordable heating payments
during the fiscal year, the department
(A) shall, for the duration of that fiscal
year, suspend calculation and payment under (a)(3)(B)
of this section and calculate and pay all eligible
individuals under (a)(3)(A) of this section; and
(B) may, to the extent there is or may be
an appropriation balance surplus to the amount
required to make all payments under (A) of this
paragraph, by regulation, establish at any time during
the fiscal year a prospective pro rata reduction of
the payment rates that the department will pay to
eligible individuals under the program during that
fiscal year qualifying under (a)(3)(B) of this section
and, thereafter, may provide for prorated payments;
and
(2) if the commissioner reasonably
determines that the total of appropriations from all
sources during the fiscal year may exceed the amount
required to fully fund all applications for assistance
for Alaska affordable heating payments, the
commissioner may expend the amount of excess money,
not to exceed the total amount of the appropriations,
to carry out the purpose of AS 47.25.621 - 47.25.626;
under the authority of this paragraph, the
commissioner shall distribute the estimated excess
money pro rata among individuals receiving assistance
under this section without regard to the limitations
set out in the dollar value of the point formula
expressed in (c)(1) - (4) of this section.
* Sec. 39. AS 47.25.626(a) is amended to read:
(a) The Department of Health and Social Services
[DEPARTMENT] may develop a regional Alaska heating
[ASSISTANCE] program for the administration of
AS 47.25.621 - 47.25.626 to provide home heating
assistance in a uniform and cost-effective manner in a
region of this state if an Alaska Native organization
is authorized to implement a federally approved tribal
family assistance plan that includes that region and
has been awarded a tribal energy assistance grant for
a program that includes that region under 42 U.S.C.
8623(d).
* Sec. 40. AS 47.25.626(b) is amended to read:
(b) The department may award contracts to
implement a program developed under (a) of this
section. A contract authorized for delivery of home
heating assistance under a regional Alaska heating
[ASSISTANCE] program under this section is exempt from
the competitive bid requirements of AS 36.30 (State
Procurement Code). Subject to appropriation, a
contract under this section must be in an amount that
represents a fair and equitable share of the money
appropriated for the Alaska affordable heating
[ASSISTANCE] program under AS 47.25.621 - 47.25.626 to
serve the state residents specified in (a) of this
section. The authority provided under this section to
contract is in addition to the authority to contract
in AS 47.05.015 or other law.
* Sec. 41. AS 47.25.626(f) is amended to read:
(f) If the department establishes a regional
Alaska heating [ASSISTANCE] program and awards a
contract to provide home heating assistance under this
section, a person applying for home heating assistance
under AS 47.25.621 - 47.25.626 in the region of the
state covered by the regional Alaska heating
[ASSISTANCE] program may obtain home heating
assistance from the department only through the
organization designated by the department to serve the
region."
Renumber the following bill sections accordingly.
Page 20, line 5:
Delete "INSTRUCTION."
Insert "INSTRUCTIONS. (a) The revisor of statutes
shall change the heading of art. 6 of AS 18.56 from
"Article 6. Energy Conservation" to "Article 6. Energy
Efficiency and Conservation Programs."
(b)"
4:18:05 PM
CO-CHAIR EDGMON objected for purposes of discussion.
4:18:06 PM
MR. BERG referred to an email from Jack Chenoweth included in
the committee packet, and said the amendment basically changed
the way benefits are determined for the Alaska heating
assistance program by assigning dollar values to an existing
point system, rather than determining after an appropriation how
much the points are worth. This change will link the price
points to the price of a barrel of oil, and allow the department
to prorate assistance payments in the case of an insufficient
appropriation. In addition, the amendment would change the name
of the program, and establish a heating fund in the Department
of Revenue (DOR).
4:19:42 PM
CO-CHAIR MILLETT moved Conceptual Amendment 1 to Amendment 20.
She read:
Page 2, lines 15-16:
Delete all material and insert:
"(3) for assistance calculated under
(b) and (c) of this section, has gross household
income [ABOVE 150 PERCENT BUT THAT DOES] not to exceed
225 percent of the federal poverty guideline for
Alaska set by the United States Department of Health
and Human Services and revised under 42 U.S.C.
9902(2); and"
4:20:21 PM
CO-CHAIR EDGMON objected for purposes of discussion.
4:20:27 PM
RON KREHER, Chief, Field Services, Division of Public
Assistance, Department of Health and Social Services (DHSS),
informed the committee the amendment converted the Alaska
heating assistance program to the Alaska affordable heating
program in the DOR. Further, the amendment tied the funding to
the average price of a barrel of North Slope crude oil between
February and September of the preceding fiscal year. In
addition, the community heating points that are used to
calculate benefits are tied to the price of oil, thus as the
price of oil goes up, the dollar value of the community heating
points also grows. He opined the intent was to provide a
funding source that was linked to the value of oil, recognizing
that the cost of heating fuel for families goes up with the
price of oil.
4:22:23 PM
CO-CHAIR EDGMON confirmed that the amendment would not change
eligibility criteria for the federal Low Income Home Energy
Assistance Program (LIHEAP), or the Alaska Heating Assistance
Program (AKHAP). He also stressed that a larger part of the
funds disbursed for the statewide program goes to urban areas.
In response to Representative Tuck, Co-Chair Edgmon said
Conceptual Amendment 1 to Amendment 20 would remove the
provision that would change the eligibility criteria.
4:23:55 PM
MR. KREHER stated currently, the AKHAP program is capped at 225
percent of poverty. The original bill allowed DHSS to serve
households with incomes up to 250 percent of poverty when the
price of oil is above $150 per barrel.
4:25:09 PM
REPRESENTATIVE PETERSEN surmised the original bill raised the
income cap to 250 percent of poverty, but Conceptual Amendment 1
leaves the cap at 225 percent.
4:25:35 PM
[The committee treated Conceptual Amendment 1 as adopted.]
4:25:44 PM
CO-CHAIR EDGMON removed his objection. There being no further
objection, Amendment 20, as amended, was adopted. He advised
that all of the amendments would be incorporated into a new CS.
4:26:26 PM
CO-CHAIR MILLETT reminded the committee the co-chairs asked the
administration for a detailed report on the proposed department
of energy, and for an organizational chart for current agencies
and advisors involved in energy policy and projects. She
expressed disappointment that the requested information had not
been received from the administration, and urged the committee
to press the administration to respond.
4:28:30 PM
CO-CHAIR EDGMON agreed with the importance of the issue.
4:29:20 PM
CO-CHAIR MILLETT read from the fiscal note signed by Jack
Kreinheder, Senior Analyst, Office of Management and Budget
(OMB), and Karen Rehfeld, Director, OMB, and dated 3/16/10. The
fiscal note totaled $1,371,700, and contained estimates for a
total of 30 new positions to staff a new department of energy,
in addition to estimates for leasing and equipping office space.
Co-Chair Millett stated that when the committee proposed the
department of energy to the previous administration, there was
an agreement that the department of energy would not grow
government, but would streamline the various agencies involved
in energy projects, and move existing staff to existing office
space in a cohesive new department. She questioned the accuracy
of the fiscal note.
4:31:50 PM
REPRESENTATIVE RAMRAS opined that the fiscal note is a poison
pill in the middle of HB 305, and an issue that is important to
all. He stated that a healthy tension between the
administration and the legislature can lead to better-vetted
issues; however, he pointed out that the administration energy
people are again conspicuously absent, and he shared the
disappointment of the co-chairs. Representative Ramras said the
responsibility lies at the top of the "energy org. chart as it
exists now." He expressed his hope for an opportunity to ask
representatives from the administration for an explanation.
4:35:18 PM
CO-CHAIR EDGMON noted that the energy policy bill would be on
the House floor 3/17/10, and it includes provisions surrounding
the centralization of the "energy pieces in state government."
There is a lot of support for the bill, and Co-Chair Edgmon
concurred with the comments made by Representative Ramras.
4:36:03 PM
REPRESENTATIVE JOHANSEN said the issue was important and the
fiscal note caused a problem. He advised the committee that he
participated in the meetings with the previous administration,
and the committee was clear in its intent not to grow, but re-
build, government. He concluded that the input of the
administration was greatly missed.
4:37:30 PM
CO-CHAIR MILLETT stated that she was looking for leadership from
the administration, now or in the near future. She stressed
that the state has many phenomenal programs to help Alaskans
with energy efficiency, weatherization, and other programs, but
residents cannot get to them. She affirmed that the energy
committee would continue to search for solutions instead of
reasons not to do something.
4:38:59 PM
REPRESENTATIVE RAMRAS suggested that the committee hold the
Greater Railbelt Energy Transmission Corporation (GRETC) bill.
4:39:40 PM
CO-CHAIR EDGMON noted the presence of administration
representatives in the galley; however, he expressed the need
for an appropriate response from a higher level advisor from the
governor's office.
4:40:42 PM
REPRESENTATIVE JOHANSEN recalled that in Washington D.C. the
question was, "Who(m) do you talk to in the State of Alaska?"
This is an appalling situation; in fact, some federal
departments have not even heard of the state's energy advisors.
4:42:16 PM
REPRESENTATIVE PETERSEN agreed with Representative Johansen.
Constituents are also confused, and are calling his office for
information. Others may give up. He encouraged the creation of
a department of energy to solve the problem.
4:43:27 PM
REPRESENTATIVE TUCK agreed that the need for a department of
energy was repeated throughout the state. Furthermore, one of
the purposes of the omnibus energy bill was to get everything
centralized to "make it easier for Alaskans to access
information, programs, and to be able to provide energy and
efficiencies."
4:44:40 PM
CO-CHAIR EDGMON concluded that the committee's comments do not
diminish the efforts of the state agencies that are doing an
outstanding job. He announced that a new CS is forthcoming.
4:45:29 PM
REPRESENTATIVE DAHLSTROM also recalled the committee's initial
meetings with the previous administration. She said she was
looking forward to "clear up a lot of questions" with the
current administration.
[HB 305 was held.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB305 Version E.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.1.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.2.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.4.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.5.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| MOU AEA-AIDEA HB 411.PDF |
HENE 3/9/2010 3:00:00 PM HENE 3/16/2010 3:00:00 PM |
HB 411 |
| Am E.6.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.7.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.9.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Sectional for Version E.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.8.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.10.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| HB411-CED-AEA-3-2-10.pdf |
HENE 3/9/2010 3:00:00 PM HENE 3/16/2010 3:00:00 PM |
HB 411 |
| HB411-CED-AIDEA-3-2-10.pdf |
HENE 3/9/2010 3:00:00 PM HENE 3/16/2010 3:00:00 PM |
HB 411 |
| Sectional for HB 411 and SB 301.pdf |
HENE 3/9/2010 3:00:00 PM HENE 3/16/2010 3:00:00 PM |
HB 411 SB 301 |
| HB0411A.pdf |
HENE 3/9/2010 3:00:00 PM HENE 3/16/2010 3:00:00 PM |
HB 411 |
| Am E.3.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| AM E.11.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.12.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.13.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.14.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.15.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Legal Opinion - Nuclear Statutes.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.16.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| HB305-DOA-DGS-03-12-10.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.17.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.18.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.19.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| HB305CS(ENE)-CED-AEA-3-15-10.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| HB305-EED-ESS-3-15-10.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| HB305-GOV-OMB-3-16-10 fiscal note 2.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| HB305-GOV-OMB-3-16-10.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| Am E.20.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| State of Alaska energy-related programs.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| State energy office document 3-16-10.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| CSHB305-DOR-AHFC-3-15-10 Energy Omnibus (1).pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |
| CSHB305-DOR-AHFC-3-15-10 Energy Omnibus.pdf |
HENE 3/16/2010 3:00:00 PM |
HB 305 |