Legislature(2009 - 2010)

04/12/2010 10:05 AM ENE


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10:05:46 AM Start
10:05:58 AM SB220
11:22:27 AM Adjourn
* first hearing in first committee of referral
+ 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.                                                                                                                         

Document Name Date/Time Subjects