Legislature(2007 - 2008)
03/12/2008 02:57 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB289 | |
| SB260 | |
| SB120 | |
| SB246 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 289
"An Act relating to home energy conservation and
weatherization for purposes of certain programs of the
Alaska Housing and Finance Corporation."
Co-Chair Hoffman, sponsor, announced that SB 289 was
introduced to address energy needs throughout the state.
JOHN WEISE, STAFF, CO-CHAIR HOFFMAN, referred to a handout
entitled "SB 289 Home Energy" (copy on file.) He explained
page 1, the Housing Assessment Survey 2005. It was
estimated that in 2005 there were about 277,000 housing
units in Alaska. The percentage of older housing was
increasing and the percentage of newer housing was
decreasing. Households eligible for weatherization - 60
percent of median income - numbered about 45,000. The
number of households that reported being drafty was about 45
percent or about half of all houses in Alaska.
Mr. Weise explained on page 2 that SB 289 would work with
the Alaska Housing Finance Corporation (AHFC) to be more
responsive to Alaskan's being impacted by high energy costs.
The bill updates and expands the home energy efficiency and
weatherization programs within AHFC.
Mr. Weise turned to page 3, weatherization. The focus is on
energy efficient improvements and directs available funding
to items that will save the most energy. Typical
improvements include air sealing, insulating, and improving
heating efficiencies.
Mr. Weise commented on page 4, Energy Efficiency and
Weatherization Program. He related that after meeting with
AHFC, a two-pronged approach was decided. The first was to
focus on the weatherization program already in effect. It
is a grant program available to Alaskans at the 60 percent
median income level. This bill would raise the level to 100
percent median income. Low income Alaskans would continue
to receive priority.
Mr. Weise reviewed a graph on page 5, Median Income
Guidelines.
3:02:33 PM
Mr. Weise pointed out the impact of SB 289 as shown on page
6. In past years roughly $4.8 million was spent a year and
600 households were helped. Funding at the 60 percent level
would not meet Alaska's needs. The expanded program, which
would request $200 million, adjusts the median to 100
percent and would serve 17,400 households.
Mr. Weise turned to the second program as describe on page
7, Home Energy Rating Rebate Program. Homeowners would need
to self finance or get a loan and an energy audit would be
required. The rebate would be based on improved energy star
ratings.
Mr. Weise detailed the Energy Star Ratings on page 8. Each
step would equal an increase in the rebate. He shared
expectations based on past research listed on page 9. There
is an expected 30 percent reduction in home energy costs.
Mr. Weise summarized SB 289 by saying it would be an
improved and more flexible process for AHFC to respond to
rising fuel costs. Existing AHFC programs will be more
responsive and more Alaskans will be helped.
3:06:33 PM
Mr. Weise summarized that the bill removes two programs no
longer in existence. It adds energy efficiency, as shown on
page 3, line 6 of the bill, and moves to 100 percent median
income.
Co-Chair Stedman requested a synopsis of the program's
beginnings and successes.
3:07:47 PM
DAN FAUSKE, CEO/EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE, thought that the
weatherization program has been around for about 20 years.
SCOTT WATERMAN, VALDEZ, reported that the weatherization
program has been around since 1978. The home energy rebate
program was in existence from 1992 to about 1995 when the
funding ran out. It has not been reauthorized for refunding
since then.
Co-Chair Stedman asked how many years it has been
underfunded. Mr. Fauske replied that there is a line item
in the capital budget for weatherization. It was generally
funded between $3.5 million and $6 million. He reported
that the weatherization is especially effective now with
high oil prices. He detailed how weatherization results in
savings to a homeowner.
Co-Chair Hoffman pointed out that housing construction is
down at this time. Mr. Fauske explained that prior to the
bill there was interest by home builders in home
weatherization under the existing program. There is a great
deal of excitement by home builders to implement an expanded
program.
3:13:26 PM
KATE TROLL, EXECUTIVE DIRECTOR, ALASKA CONSERVATION ALLIANCE
(ACA), testified in support of SB 289. She related that
energy issues are a priority in ACA's goals, especially in
light of the energy crisis in rural Alaska. Many states
have implemented such energy programs and have provided
savings to home owners. She shared statistics about savings
from such programs and about the possible reduction of
carbon emissions. She emphasized that the bill provides
short-term assistance and she encouraged support, also, for
HB 252, which deals with investing in renewable energy. She
added that SB 289 would create more jobs.
3:18:19 PM
MEGAN WAGGONER, JUNEAU, testified in support of SB 289. She
thought it was increasingly important for homes to be more
energy efficient. She termed the subsidy an excellent
incentive for people to start looking at their energy
habits. She noted that rural communities would benefit the
most from this legislation, but that all communities would
be grateful.
MADELIN SIEDLER, JUNEAU, spoke in support of SB 289. She
related that she belongs to a generation that is beginning
to value responsible resource consumption, and home energy
efficiency is a keystone issue in this movement. She
maintained that we have a duty to ourselves and to the
future to conserve resources. She mentioned the financial
benefits from this legislation. She called SB 289 a
tremendous step in the right direction to a more sustainable
energy future.
SB 289 was heard and HELD in Committee for further
consideration.
AT-EASE: 3:21:06 PM
RECONVENE: 4:01:20 PM
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