Legislature(2011 - 2012)HOUSE FINANCE 519

04/05/2011 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 30 DEDICATED TRANSPORT FUND/PUB TRANSPORT TELECONFERENCED
Heard & Held
*+ HB 31 TRANSPORT. INFRASTRUCTURE FUND APPROP. TELECONFERENCED
Heard & Held
+ HB 197 HOME ENERGY RATING SYSTEM TELECONFERENCED
Moved CSHB 197(FIN) Out of Committee
+ HB 173 SPORT FISHING GUIDING SERVICES TELECONFERENCED
Moved Out of Committee
+ HCR 9 STATE ENERGY PRODUCTION WORKING GROUP TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 197                                                                                                            
                                                                                                                                
     "An Act recognizing the Alaska Housing Finance                                                                             
     Corporation as the authorizing agency to approve home                                                                      
     energy rating systems for the state; and providing for                                                                     
     an effective date."                                                                                                        
                                                                                                                                
1:41:20 PM                                                                                                                    
                                                                                                                                
Co-Chair   Stoltze    stated   that   after    the   initial                                                                    
presentation, HB 30 and HB  31 would be further discussed in                                                                    
subcommittee.                                                                                                                   
                                                                                                                                
REPRESENTATIVE   LANCE  PRUITT,   SPONSOR,  introduced   the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough  MOVED  to   ADOPT  work  draft  CSHB
197(FIN) as a working document before the committee.                                                                            
                                                                                                                                
Co-Chair Stoltze OJBECTED for further discussion.                                                                               
                                                                                                                                
JEREMIAH  CAMPBELL,  STAFF,   REPRESENTATIVE  LANCE  PRUITT,                                                                    
explained  that  the  bill  recognized  the  Alaska  Housing                                                                    
Finance Corporation (AHFC) as  the home energy rating system                                                                    
authorizing agency for the purpose  of approving energy home                                                                    
rating   systems  used   in  the   state.  Currently,   non-                                                                    
governmental, third-party,  for-profit party  companies were                                                                    
attempting  to  become  federally  recognized,  which  would                                                                    
result in the parties controlling  state policy on the issue                                                                    
of energy home  rating. The bill was crafted  to protect the                                                                    
investment of the  state (via AHFC) in  AkWarm; the software                                                                    
used for energy design,  retrofit, and in determining energy                                                                    
ratings. The  software was specifically designed  for Alaska                                                                    
and was recognized by the  Alaska building, real estate, and                                                                    
home  loan industries.  The software  was  directly tied  to                                                                    
AHFC's   weatherization  rebate   programs,  interest   rate                                                                    
reductions for  home loans, and  the Alaska  Building Energy                                                                    
Efficiency  Standards. The  bill  would enable  the AHFC  to                                                                    
insure  that  home energy  rating  systems  utilized in  the                                                                    
state were appropriate for Alaska's climates.                                                                                   
                                                                                                                                
Co-Chair Stoltze queried the technical changes in the CS.                                                                       
                                                                                                                                
Mr. Campbell  replied that the  CS changed "may"  to "shall"                                                                    
on page  1 line 9; this  was to clearly define  AHFC's scope                                                                    
of  responsibility. Secondly,  the  word  "any" was  removed                                                                    
from  page 1  line 9.  There  had been  concern that  having                                                                    
"any" in the bill would  put homebuilders, who used a system                                                                    
that was  not approved,  in violation  of the  law. Thirdly,                                                                    
"system"  was changed  to "systems"  on  page 1  line 10  to                                                                    
imply that more  than one system may be approved  for use in                                                                    
the state.                                                                                                                      
                                                                                                                                
1:45:04 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  REMOVED  his OBJECTION.  There  being  NO                                                                    
further  OBJECTION CSHB  197(FIN) was  ADOPTED as  a working                                                                    
document before the committee.                                                                                                  
                                                                                                                                
Mr.  Campbell introduced  his  support  staff available  for                                                                    
technical questions.                                                                                                            
                                                                                                                                
BOB BREAN, DIRECTOR, RESEARCH  AND RURAL DEVELOPMENT, ALASKA                                                                    
HOUSING   FINANCE   CORPORATION,  DEPARTMENT   OF   REVENUE,                                                                    
testified  in support  of the  legislation.  He shared  that                                                                    
AHFC had the  authority by statute to ensure  that any homes                                                                    
that  the corporation  issued home  loans on  met a  minimum                                                                    
building and energy efficiency standard.  The way to measure                                                                    
the  standard was  through the  home energy  rating software                                                                    
system, which the AHFC  had developed, maintained, upgraded,                                                                    
and trained approximately 100 energy  raters to utilize. The                                                                    
software was  used for home  loans, weatherization,  and the                                                                    
energy rebate program. There  were approximately 50 thousand                                                                    
home energy ratings in the system based on the software.                                                                        
                                                                                                                                
Mr. Brean  stated that  industry supported  the legislation.                                                                    
The  software ensured  that appropriate  home energy  rating                                                                    
systems  were utilized  in the  state. He  relayed that  the                                                                    
software   recognized  five   different  climactic   regions                                                                    
statewide,  which  made  the  program  unique  to  different                                                                    
programs used  in other  parts of  the country.  He believed                                                                    
that  it  was  prudent  to link  AkWarm  with  the  building                                                                    
industry.                                                                                                                       
                                                                                                                                
Representative Edgmon  questioned whether  there could  be a                                                                    
bill introduced in  the future that would speak  to the role                                                                    
of  AHFC in  the commercial  property aspect  of the  energy                                                                    
efficiency revolving loan program.                                                                                              
                                                                                                                                
Mr. Brean responded  that the AkWarm rating  system was used                                                                    
primarily for residential  properties. However, the platform                                                                    
was  used   to  build  the  additional   libraries  for  the                                                                    
revolving loan  fund; this  would include  calculations more                                                                    
relative to the commercial aspect of the system.                                                                                
                                                                                                                                
Representative Edgmon  asked if  there were  any justifiable                                                                    
reason to  remove the  word "home"  from Home  Energy Rating                                                                    
System. Mr.  Brean replied  that he did  not think  that was                                                                    
necessary  at the  present time.  He  added that  commercial                                                                    
tables and libraries were being  developed for the software.                                                                    
The  corporation  would  clearly differentiate  between  the                                                                    
two.                                                                                                                            
                                                                                                                                
1:50:36 PM                                                                                                                    
                                                                                                                                
Representative   Edgmon   thought   that  there   could   be                                                                    
opportunity in the future to add clean-up language.                                                                             
                                                                                                                                
Representative   Gara   understood   that   the   commercial                                                                    
revolving  loan program  would be  available  to the  public                                                                    
regardless  of which  department  ended up  housing it.  Mr.                                                                    
Brean replied  in the  affirmative. He  added that  AHFC was                                                                    
confident in the research that  had gone into developing the                                                                    
commercial  system and  that  other  agencies would  benefit                                                                    
from access to the system.                                                                                                      
                                                                                                                                
Representative  Guttenberg understood  that the  AHFC rating                                                                    
system was  not recognized  by the Internal  Revenue Service                                                                    
(IRS) for an energy efficient home tax credit.                                                                                  
                                                                                                                                
Representative Pruitt responded that that was correct.                                                                          
                                                                                                                                
Representative  Guttenberg  asked  whether people  who  took                                                                    
advantage of  the program  the previous  year would  have to                                                                    
apply for  an updated  rating to  receive credits  under the                                                                    
program.                                                                                                                        
                                                                                                                                
Mr. Brean  said that  to receive the  tax credit  the rating                                                                    
would have  to be performed  by an approved agency  that had                                                                    
been vetted by a  national organization. Home energy rebates                                                                    
in the  state were done  using AkWarm; if a  resident wanted                                                                    
to go back  retroactively a rating would need to  be done by                                                                    
nationally approved software.                                                                                                   
                                                                                                                                
Representative Guttenberg  wondered if the  legislation were                                                                    
to  pass  giving federal  recognition  to  the AHFC  program                                                                    
could residents who participated in  the program in the past                                                                    
receive tax  credits retroactively. Mr. Brean  believed that                                                                    
the question would be referred to AHFC's legal tax counsel.                                                                     
                                                                                                                                
Representative  Guttenberg  hypothesized  that if  a  person                                                                    
wanted to sell  their home using a past AHFC  rating and the                                                                    
bank required a current rating  that the house would need to                                                                    
be rated again.                                                                                                                 
Representative  Pruitt responded  that  the resident  should                                                                    
not have to have their house  rerated. He shared that one of                                                                    
the  most important  reasons for  the  legislation was  that                                                                    
AHFC could  not purchase  homes that did  not meet  the home                                                                    
energy rating  standards. If the  house was rated  using the                                                                    
AkWarm program the AHFC could purchase the home loan.                                                                           
                                                                                                                                
Representative Costello  asked whether HB 197  would address                                                                    
federal recognition of the AkWarm program.                                                                                      
                                                                                                                                
1:56:37 PM                                                                                                                    
                                                                                                                                
Representative   Pruitt   replied    that   it   would   not                                                                    
automatically give recognition, but  that it would begin the                                                                    
process.                                                                                                                        
                                                                                                                                
Representative  Costello asked  what  steps  would be  taken                                                                    
after passage of the bill  to ensure that the AkWarm program                                                                    
was federally recognized. Mr. Brean  said that the next step                                                                    
would be to  approach the IRS and inform them  that AHFC was                                                                    
the authorized  state agency for  a state  recognized rating                                                                    
system. On the federal level  there were two current methods                                                                    
of approval:  one was  to approve a  rating system  that was                                                                    
vetted by another  organization in the Lower 48,  or a state                                                                    
acknowledged comparable system. The  IRS had been approached                                                                    
for the  second status and  had taken the software  and sent                                                                    
it  to the  third  party in  the Lower  48  for vetting.  He                                                                    
believed that  once the legislation was  passed Alaska would                                                                    
have equal  standing with other  states in the  country that                                                                    
had  in-state   recognized  systems.  The  passage   of  the                                                                    
legislation  would  give  the state  firm  standing  on  the                                                                    
federal level  to engage in  conversations with  the federal                                                                    
government  on  certification  of  the  home  energy  rating                                                                    
software.                                                                                                                       
                                                                                                                                
Co-Chair Stoltze OPENED public testimony.                                                                                       
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
Vice-chair Fairclough  MOVED to report CSHB  197(FIN) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  197(FIN) was  REPORTED  out of  Committee  with a  "do                                                                    
pass"  recommendation and  with previously  published fiscal                                                                    
note: FN1, REV.                                                                                                                 
                                                                                                                                
2:00:05 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:00:24 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 30 Legal opinion aviation fuel tax.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 MatSu Reso 3-11.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 support email sorenson.htm HFIN 4/5/2011 1:30:00 PM
HB 30
CSHB 30 ACoA Support Letter (2).pdf HFIN 4/5/2011 1:30:00 PM
HB 30
CSHB30 Ver T Sectional.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 -ATIF Sponsor Stmt ver T.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 Legal opinion aviation fuel tax.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 ltr support businesses.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 ltr support chamber.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 ltr support Mobility coalition.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 Persily Report.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 support AML.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 support Harbormasters.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 30 supt ltr Johansen.pdf HFIN 4/5/2011 1:30:00 PM
HB 30
HB 31 SponsorStmt Ver A.pdf HFIN 4/5/2011 1:30:00 PM
HB 31
HB0031A.pdf HFIN 4/5/2011 1:30:00 PM
HB 31
HB31 ATIF Payout 4.5.pdf HFIN 4/5/2011 1:30:00 PM
HB 31
HB31 ATIF Payout 4.75.pdf HFIN 4/5/2011 1:30:00 PM
HB 31
HB31 ATIF payout 5.0 (1).pdf HFIN 4/5/2011 1:30:00 PM
HB 31
HB31 ATIF payout 5.0.pdf HFIN 4/5/2011 1:30:00 PM
HB 31
HB31 ATIF payout 5.25.pdf HFIN 4/5/2011 1:30:00 PM
HB 31
HB31 ATIF Payout 6.0.pdf HFIN 4/5/2011 1:30:00 PM
HB 31
TRANSPORTATION_Fiscal_Plan_FY2011.pdf HFIN 4/5/2011 1:30:00 PM
HB 197
HB 197 AARP Letter of Support.pdf HFIN 4/5/2011 1:30:00 PM
HB 197
HB 197 Sponsor Statement.pdf HFIN 4/5/2011 1:30:00 PM
HB 197
HB 197 Sectional Summary.pdf HFIN 4/5/2011 1:30:00 PM
HB 197
HCR 9 - 2 Sponsor Statement.pdf HFIN 4/5/2011 1:30:00 PM
HCR 9
HCR 9 - 3 Wyoming Producer States Agreement.pdf HFIN 4/5/2011 1:30:00 PM
HCR 9
HCR 9 - 4 Utah Producer States Agreement.pdf HFIN 4/5/2011 1:30:00 PM
HCR 9
HB 173 - KRSA Sportfishing Overview Slide 19am - Feb 15 Meeting - Transition Team Topics - Sportfishing Guide Service Board.pdf HFIN 4/5/2011 1:30:00 PM
HB 173
HB 173 - Licensing Reauthorization Sport Fish Briefing - ADF&G - 2011.pdf HFIN 4/5/2011 1:30:00 PM
HB 173
HB 173 - UFA Ltr - Support.pdf HFIN 4/5/2011 1:30:00 PM
HB 173
HB 173 - Sponsor Statement.pdf HFIN 4/5/2011 1:30:00 PM
HB 173
HB 197 CS WORKDRAFT 27-LS0628-B 040411.pdf HFIN 4/5/2011 1:30:00 PM
HB 197
HB 197 Summary of changes From Ver. A to Ver. B.pdf HFIN 4/5/2011 1:30:00 PM
HB 197
HB 197 Letter of Support - Homebuilders.pdf HFIN 4/5/2011 1:30:00 PM
HB 197