Legislature(2017 - 2018)CAPITOL 17
01/26/2017 11:00 AM House ENERGY
Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
Audio | Topic |
---|---|
Start | |
HB80 | |
Overview: Property Assessed Clean Energy (pace) Energy Efficiency Financing | |
HB80 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | TELECONFERENCED | ||
*+ | HB 80 | TELECONFERENCED | |
HB 80-MUNI ENERGY IMPROVEMNT:ASSESSMNTS/BONDS HB 80-MUNI ENERGY IMPROVEMNT:ASSESSMNTS/BONDS 11:10:05 AM CHAIR WOOL announced that the only order of business would be HOUSE BILL NO. 80, "An Act adopting the Municipal Property Assessed Clean Energy Act; authorizing municipalities to establish programs to impose assessments for energy improvements in regions designated by municipalities; imposing fees; and providing for an effective date." 11:10:39 AM ROB EARL, Staff, Representative Adam Wool, Alaska State Legislature, clarified that HB 80, with a zero fiscal note, was also known as PACE, the Municipal Property Assessed Clean Energy Act, which would allow local municipal governments to create a property assessed clean energy financing mechanism. He explained that local PACE financing would incentivize energy efficiency improvements to commercial buildings, as it would allow use of the existing property tax collection mechanism as a means of servicing loans for energy efficiency improvements and alternate energy installation on commercial property. He stated that local governments would work with interested business owners to identify energy improvements under the PACE program. He reported that the PACE financing resulted in low default rates, which facilitated low interest lending, allowed for longer financing periods, and offered seamless transferability with sale of the property. [HB 80 was taken up later in the meeting.] HB 80-MUNI ENERGY IMPROVEMNT:ASSESSMNTS/BONDS 11:46:44 AM CHAIR WOOL announced the committee would open public testimony on HB 80. 11:47:02 AM CHRIS ROSE, Executive Director, Renewable Energy Alaska Project (REAP), reported that REAP was a statewide non-profit coalition comprised of about 80 organizations, which included electric utilities, developers, and independent businesses. He referred to the written testimony previously submitted. He declared support for HB 80 and PACE legislation. He emphasized support for state supported weatherization programs which provided savings from energy efficiency. He stated that PACE was a financing tool to allow the money necessary for a return on investment, adding that it was a voluntary program and an opportunity for business owners. He declared that the program would keep money in the community and would add many jobs for qualified workers. He reiterated his support for the proposed bill. 11:50:46 AM KATHIE WASSERMAN, Executive Director, Alaska Municipal League, declared that the Alaska Municipal League (AML) had supported previous iterations of the proposed bill, and she expressed her surprise that the proposed bill had not been passed sooner. She stated that it was not a mandate, as the commercial owner and the municipalities could opt in if they so choose. It provided protections for the public as the municipality was required to have a resolution of intent, with boundaries identified, and the public would be aware of the program. She opined that municipalities would get support from its residents. She stated that, as energy issues were some of the most difficult for the state, the proposed bill was a tool to help overcome the deficit. She declared that the members of AML were in support of HB 80. 11:52:55 AM JIM DODSON, President, Fairbanks Economic Development Corporation (FEDC), stated that this was the right type of legislation for the new economic era in Alaska. He pointed out that it was voluntary for the municipality, the borrower, and the lender, and that it gave the community a tool to effectively contribute to lowering the cost of energy. He reiterated that the cost of energy was a barrier to growth of the economy in Alaska. He encouraged support for the proposed bill. 11:54:21 AM BRITTANY SMART, Spokesperson, Office of the Mayor, Fairbanks North Star Borough (FNSB), declared that this was a very important piece of legislation, especially with regard to its air quality issues. CHAIR WOOL asked if there was concern for any administrative burden or costs. MS. SMART acknowledged that there were questions for the best path to implementation of the program, although the proposed bill did offer risk protections. 11:55:45 AM JACK WILBUR, Vice-Chair, Board of Directors, Interior Gas Utility (IGU), stated support of the proposed bill. He explained that the Interior Gas Utility had been created to bring low cost energy in the form of liquefied natural gas (LNG) to the Fairbanks North Star Borough, as it was important to reduce the current air pollution issues. He reported that Alaska Industrial Development and Export Authority (AIDEA) had purchased Pentax Assets, which included a liquefaction facility in Southcentral Alaska, as well as a fleet of trucks and trailers to bring the LNG to Fairbanks. He shared that funding appropriated through the Alaska State Legislature had allowed IGU to install a distribution system in North Pole with subsequent distribution in the City of Fairbanks. He declared that IGU was ready to continue with additional improvements, including storage facilities and further expansion of the distribution system. He shared that a key to additional expansion was for customers to be connected to the distribution system and to generate revenue to pay off the loans and finance further expansion. He acknowledged that it was difficult for businesses to come up with the capital for these conversions. He pointed out that the PACE legislation allowed for low cost financing for energy cost saving measures and would incentivize commercial conversions to LNG. 11:58:41 AM CHAIR WOOL closed public testimony on HB 80. He announced that HB 80 would be held over.
Document Name | Date/Time | Subjects |
---|---|---|
HB 80 - Sponsor Statement.pdf |
HENE 1/26/2017 11:00:00 AM |
HB 80 |
HB 80 Letter of Support - FNSB.pdf |
HENE 1/26/2017 11:00:00 AM |
HB 80 |
HB 80 - Letter of Support - REAP.pdf |
HENE 1/26/2017 11:00:00 AM |
HB 80 |
HB 80 - Fiscal Note - DCCED.pdf |
HENE 1/26/2017 11:00:00 AM |
HB 80 |
HB 80 - Sectional Analysis.PDF |
HENE 1/26/2017 11:00:00 AM |
HB 80 |