Legislature(2011 - 2012)BUTROVICH 205
04/12/2011 03:00 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB197 | |
| HJR27 | |
| HJR17 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HJR 17 | TELECONFERENCED | |
| + | HB 197 | TELECONFERENCED | |
| + | HJR 27 | TELECONFERENCED | |
HB 197-HOME ENERGY RATING SYSTEM
3:05:14 PM
CHAIR OLSON announced the consideration of HB 197. [CSHB
197(FIN) was before the committee.]
3:05:26 PM
JEREMIAH CAMPBELL, staff to Representative Lance Pruitt, sponsor
of HB 197, stated that HB 197 recognizes the Alaska Housing
Finance Corporation (AHFC) as the state's authorizing agency for
the Home Energy Rating System (HERS). This legislation seeks to
protect the investment that AHFC has already made in developing
its own Alaska-specific rating system software called AkWarm.
This investment is jeopardized because non-governmental, for-
profit, third-parties are currently attempting to be identified
in federal legislation as the state's HERS verifying agency. If
successful, these outside entities would control state policy on
the issue. The AkWarm software is directly tied to the state's
home energy rebate and weatherization programs, interest rate
reductions, and Alaska Building Energy Efficiency Standards. HB
197 will enable AHFC to ensure that any home energy rating
system utilized in Alaska will be appropriate for Alaska's
climate.
SENATOR KOOKESH asked if he could name a specific non-government
third-party.
MR. CAMPBELL replied the Residential Energy Services Network
(RESNET) is the entity that's currently active in the Lower 48.
He deferred further questions to Mr. Green from AHFC.
3:07:42 PM
BOB GREEN, Rural Housing and Research Programs, Alaska Housing
Finance Corporation, Department of Revenue (DOR), explained that
RESNET started as the national organization for state energy
rating officials that segued first into a 501(c)(3) and then
into a for-profit corporation called RESNET. Its role is to help
approve home energy rating systems used in the Lower 48,
particularly for states that do not want to get into that
business. By comparison, Alaska, through AHFC, already plays a
significant role in the HERS. The AkWarm software was
specifically developed for Alaska and about 100 home energy
raters have been trained. The AHFC wants to ensure that it has a
direct relationship with the federal government and that a
third-party doesn't insert itself and dictate policy in this
state.
MR. GREEN explained that the AkWarm software was specifically
developed to acknowledge Alaska's different weather patterns and
unique conditions. He opined that it's unlikely that any rating
system software that's created in the Lower 48 would do the
same. HB 197 assures that any rating system that's used in the
state will be closely examined to make sure that it's
appropriate with regard to energy conservation and home
construction in the state of Alaska.
3:10:45 PM
CHAIR OLSON asked why a government entity should run the program
when a private entity such as RESNET can do it more efficiently.
He noted he didn't see a fiscal note.
MR. CAMPBELL responded that the bill has a zero fiscal note.
CHAIR OLSON questioned giving the state what is essentially a
monopoly when private enterprise tends to operate more
efficiently.
MR. GREEN explained that the AHFC is statutorily prohibited from
issuing loans on homes that do not meet the minimum building
energy efficiency standard. Currently this is four star plus.
The AkWarm software is used to measure homes to make sure that
they meet that mark and thus qualify for AHFC financing. He
noted that several years ago AHFC looked at the same
public/private question and concluded that it was most important
to ensure that home ratings are accurate. AHFC decided that the
best way to do this was to create and maintain public domain
energy rating software and to invest in training home energy
raters. To date, about 100 home energy raters have been trained
and they're all proficient and certified. The private sector has
used this mechanism as a marketing tool to sell an energy
efficient product, which makes a nice working partnership
between the AHFC and the building industry.
3:14:02 PM
CHAIR OLSON asked if it would adversely affect home builders to
have an effective date that falls in the middle of the
construction season.
MR. GREEN said he didn't believe so because the AkWarm software
tool and AHFC trained energy raters are already in widespread
use. There is the possibility today, however, for a builder from
the Lower 48 to build a house in Alaska that's rated three star
plus and have it financed by Freddy Mac or Fanny Mae. But AHFC
couldn't finance that home in the event of a resale because it
doesn't meet the minimum four star plus rating. The Alaska
building industry has keyed in on this and recognizes the
benefit of building to AHFC energy specifications such that
financing is available from any funding source.
CHAIR OLSON asked if that puts other lending institutions at a
disadvantage.
MR. GREEN replied Freddie Mac and Fannie Mae recognize the
standard that AHFC is encouraging builders to achieve and the
building industry is telling the financing institutions that it
is building energy efficient products that will qualify for all
available financing. It's a good marketing tool.
3:16:59 PM
CHAIR OLSON asked who opposes the bill.
MR. CAMPBELL replied there's been no opposition and both AARP
and the Homebuilders Association have stated support for the
bill.
CHAIR OLSON noted that no one had signed up to testify.
3:17:31 PM
SENATOR WAGONER moved to report CSHB 197(FIN), version B, from
the committee with individual recommendations and attached
fiscal note(s).
CHAIR OLSON announced that without objection, CSHB 197(FIN)
moved from the Senate Community and Regional Affairs Standing
Committee.
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