Legislature(2017 - 2018)SENATE FINANCE 532

04/06/2017 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 87 SCHOOL CONSTRUCTION ENERGY EFFICIENCY STD TELECONFERENCED
Heard & Held
+ SB 96 EDUCATION:SCHOOLS/TEACHERS/FUNDING TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 87                                                                                                            
                                                                                                                                
     "An  Act relating  to energy  efficiency standards  and                                                                    
     standardized   options  for   building  and   equipment                                                                    
     components   for   school    construction   and   major                                                                    
     maintenance; relating to  school construction and major                                                                    
     maintenance   grants  and   bond  debt   reimbursement;                                                                    
     establishing  a working  group to  make recommendations                                                                    
     relating   to   energy  efficiency   and   standardized                                                                    
     components in  schools; and providing for  an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:05:16 AM                                                                                                                    
                                                                                                                                
]Brittany Hutchison, Staff, Senator Anna MacKinnon{                                                                             
introduced the legislation. She stated that //                                                                                  
                                                                                                                                
9:06:49 AM                                                                                                                    
                                                                                                                                
Ms. Hutchison discussed the Sectional Analysis (copy on                                                                         
file):                                                                                                                          
                                                                                                                                
     Section  10  (pg.   8  Line  26  -  pg.   11  line  2):                                                                    
     Establishes  the Public  School  Energy Efficiency  and                                                                    
     Standardized Components  Working Group.  Established in                                                                    
     the Department  of Education and Early  Development for                                                                    
     the   purpose   of   recommending   energy   efficiency                                                                    
     standards   and   standardized   options   for   energy                                                                    
     efficient building and  equipment components for public                                                                    
     school  facilities construction  and major  maintenance                                                                    
     projects  who receive  a grant  or reimbursement  in an                                                                    
     amount  equal to  50  percent or  more  of the  project                                                                    
     costs.                                                                                                                     
     a.  The  working  group   consists  of  eleven  members                                                                    
     appointed by the Commissioner.                                                                                             
     b. The  working group  shall select  a chair  and vice-                                                                    
     chair. Majority  establishes quorum. Decision  are made                                                                    
     on majority vote.                                                                                                          
     c. Develop recommendations  appropriate to each climate                                                                    
     zone in the state:                                                                                                         
     1.  Establish  energy efficiency  standards  consistent                                                                    
     with  relevant   building,  plumbing,   and  electrical                                                                    
     copes.                                                                                                                     
     2. Standardized  options for energy  efficient building                                                                    
     and  equipment components  from which  school districts                                                                    
     may choose from.                                                                                                           
     3. Best  practices for improving energy  efficiency for                                                                    
     existing  and newly  constructed  school facilities  in                                                                    
     order to  maximize the  energy efficiency  of buildings                                                                    
     and equipment components.                                                                                                  
     4. The  maximum cost standard  for each square  foot of                                                                    
     construction  of an  energy  efficient school  facility                                                                    
     that  uses   components  identified  in  (2)   of  this                                                                    
     subsection. The  maximum cost  must be  appropriate for                                                                    
     designs  that prioritize  classroom infrastructure  and                                                                    
     functional  design.  The  costs must  be  adjusted  for                                                                    
     different regions within each climate zone.                                                                                
     d. The standardized component options must:                                                                                
     1. Result in designs for  buildings with a 50 year life                                                                    
     for new  construction and 20  years for  renovations or                                                                    
     energy efficiency upgrades                                                                                                 
     2.  Achieve economic  savings, as  measured  by a  life                                                                    
     cycle  cost analysis  through the  use of  standardized                                                                    
     options   and   fuel   cost  reductions   from   energy                                                                    
     efficiency upgrades.                                                                                                       
     3.   Focus   the   state's  investment   in   education                                                                    
     facilities  by   prioritizing  functional   design  and                                                                    
     classroom infrastructure.                                                                                                  
     e.   The  working   group  shall   complete  a   report                                                                    
     summarizing  their  recommendations,   and  submit  the                                                                    
     report electronically.                                                                                                     
     f.  The   working  group  may  meet   by  telephone  or                                                                    
     videoconference. They  will not  receive reimbursement,                                                                    
     compensation or per diem.                                                                                                  
     g. The working  group terminates on the  date 18 months                                                                    
     after the effective date of this section.                                                                                  
                                                                                                                                
     Section 9  (pg. 7 line  1 - pg.  8 line 25):  Creates a                                                                    
     new  section   in  state  law:  AS   14.11.104.  School                                                                    
     Facility Design and  Maintenance Standards. It requires                                                                    
     DEED to:                                                                                                                   
     1.   Establish,   by  regulation,   energy   efficiency                                                                    
     standards   that  include   standardized  options   for                                                                    
     building and equipment  components, appropriate to each                                                                    
     climate  zone in  the state  for  the construction  and                                                                    
     major   maintenance    of   school    facilities.   The                                                                    
     regulations must include:                                                                                                  
     a. Energy efficiency standards  that are consistent and                                                                    
     relevant  to building,  plumbing  and electrical  codes                                                                    
     that will reduce long-term operating costs.                                                                                
     b.  Provide standardized  options for  energy efficient                                                                    
     building and  equipment components from which  a school                                                                    
     district may  choose when  designing a  school facility                                                                    
     or renovating an existing facility.                                                                                        
     c.  Establish  best   practices  for  improving  energy                                                                    
     efficiency  for existing  and newly  constructed school                                                                    
     facilities.                                                                                                                
     d.  Establish the  maximum  acceptable  costs for  each                                                                    
     square foot  for construction  or major  maintenance of                                                                    
     an  energy efficient  school  facility. The  department                                                                    
     shall:                                                                                                                     
     i. Base  the maximum  costs on designs  that prioritize                                                                    
     classroom infrastructure and functional design.                                                                            
     ii. The maximum acceptable  cost must be adjustable for                                                                    
     different regions within each climate zone.                                                                                
     2.  Create   a  maintenance  manual  for   schools  and                                                                    
     maintenance  crews  that   provides  information  about                                                                    
     maintaining   and    repairing   standardized   options                                                                    
     identified in the energy efficiency standards.                                                                             
     3. Consider  establishing a statewide  maintenance team                                                                    
     to  help schools  in  maintaining  and repairing  their                                                                    
     standardized components. The  department may enter into                                                                    
     a contract with a  regional or local organization, AEA,                                                                    
     DOT, or  another state agency to  create this statewide                                                                    
     maintenance team.                                                                                                          
     4.   Requirements  for   a   school   district  and   a                                                                    
     maintenance team, if established,  to submit reports to                                                                    
    the Department of Education and Early Development:                                                                          
     a.  The date  that maintenance  was performed  and what                                                                    
     maintenance was performed                                                                                                  
     b. The condition of school facilities                                                                                      
     c. Monitoring data:  occupancy, electricity usage, fuel                                                                    
     usage, temperature, etc.                                                                                                   
     5.  Acquire  ownership of  the  design  for any  school                                                                    
     facility  for which  a grant  or bond  reimbursement is                                                                    
     approved  in an  amount of  50 percent  or more  of the                                                                    
     cost of construction.                                                                                                      
     6.  DEED   must  assess,   in  consultation   with  the                                                                    
     Department  of  Administration  and the  Department  of                                                                    
     Transportation, all  state lease payments,  state owned                                                                    
     facilities and  the use of  school facilities  in rural                                                                    
     areas  to  determine  whether   other  state  or  local                                                                    
     services can be  located in the same  facility in order                                                                    
     to  reduce  state funding  needs.  Any  state or  local                                                                    
     service  that may  be co-located  with a  public school                                                                    
     must  have all  their employees  meet background  check                                                                    
     requirements   equivalent  to   the  requirements   for                                                                    
     teachers.                                                                                                                  
     a. Rural is defined                                                                                                        
     b. State or local service  is defined with the words or                                                                    
     "similar entity"                                                                                                           
                                                                                                                                
     Section 1  (pg. 2  Lines 3-11): Amends  AS 14.11.011(b)                                                                    
     by  increasing  the  information  needed  in  a  school                                                                    
     district's  grant   application.  The   district  shall                                                                    
     submit:                                                                                                                    
     1.   Information   demonstrating   that   the   project                                                                    
     incorporates  standardized  options  for  building  and                                                                    
     equipment  components and  is  in  compliance with  the                                                                    
     recommendations made under Section 9 of the bill.                                                                          
     2. Documentation of  the building commissioning process                                                                    
     the district  uses for both new  construction and major                                                                    
     maintenance projects.                                                                                                      
                                                                                                                                
     Section  2 (pg.  3 Lines  11-12 and  22-25): Amends  AS                                                                    
     14.11.013 by                                                                                                               
     a.  Adding to  the  duties of  the Capital  Improvement                                                                    
     Project  grant schedule,  the requirement  for DEED  to                                                                    
     verify  that the  project  follows the  recommendations                                                                    
     made in Section 9 and                                                                                                      
     b. Requiring  that a capital improvement  project grant                                                                    
     request must  achieve savings measured by  a life-cycle                                                                    
     cost   analysis  through   the  use   of:  standardized                                                                    
     options,  energy  efficiency  upgrades, and  fuel  cost                                                                    
     reductions                                                                                                                 
                                                                                                                                
     Section  3  (pg. 4  Line  10):  Amends AS  14.11.013(d)                                                                    
     which allows  DEED to  reduce a  project budget  by the                                                                    
     cost of  those portions of  a project design  that they                                                                    
     determine does  not meet  the criteria  set out  by the                                                                    
     Section 9 of the bill.                                                                                                     
                                                                                                                                
     Section 4 (pg. 4 lines 13-17):                                                                                             
     a.  When a  school district  is applying  for a  grant,                                                                    
     DEED  shall consult  with  Alaska  Energy Authority  to                                                                    
     make sure that the projects  are in compliance with the                                                                    
     criteria from Section 9.                                                                                                   
     b. Defines  ""life-cycle cost" as the  meaning given in                                                                    
     AS 46.11.900                                                                                                               
     -  "life-cycle cost"  means the  total cost  of owning,                                                                    
     operating, and  maintaining a building over  its useful                                                                    
     life, including  its energy and fuel  costs, determined                                                                    
     on a  basis of a  systematic evaluation  and comparison                                                                    
     of  alternative building  systems, except  that in  the                                                                    
     case of  leased buildings the life-cycle  cost shall be                                                                    
     calculated  over the  effective remaining  term of  the                                                                    
     lease;                                                                                                                     
                                                                                                                                
     Section 5 (pg.  4 Line 29 and pg. 5  Lines 4-5): Amends                                                                    
     AS  14.11.014(b) Requiring  the Bond  Reimbursement and                                                                    
     Grant  Review  Committee  to, along  with  their  other                                                                    
     duties:                                                                                                                    
    1. Analyze designs acquired by the Department, and                                                                          
     2. Set  standards based on the  standards adopted under                                                                    
     Section 9.                                                                                                                 
                                                                                                                                
     Section 6 (pg. 5 Lines 13-14,  16-17, 30- line 6 on pg.                                                                    
     6): Amends AS 14.11.017(a)                                                                                                 
     1.  Requires  that  a   school  district  must  include                                                                    
     criteria developed  in Section 9 when  they are seeking                                                                    
     a grant for school construction.                                                                                           
     2.  Requires that  the school  district not  exceed the                                                                    
     maximum cost standards established by Section 9.                                                                           
     3.   Disallows  any   school  districts,   contractors,                                                                    
     architects, or  designers involved with the  design and                                                                    
     building  of a  school  facility from  applying for  an                                                                    
     architectural  or  design award,  if  the  grant is  an                                                                    
     amount  equal to  or  greater than  50  percent of  the                                                                    
     project.  This  does   not  exclude  energy  efficiency                                                                    
     grants or innovative design grants.                                                                                        
                                                                                                                                
     Section 7  (pg. 6 Lines  7-11): Amends AS  14.11.017 to                                                                    
     state that if  a cost of a project  exceeds the maximum                                                                    
     cost  standards  established  by Section  9,  then  the                                                                    
     municipality or  REAA must pay  for the excess  cost of                                                                    
     the building outside of state funds.                                                                                       
                                                                                                                                
     Section 8 (pg.  6 Lines 12-31): Amends  AS 14.11.100 by                                                                    
     adding   three  sections   to.   The  commissioner   of                                                                    
     Education  may  not  approve an  application  for  bond                                                                    
     reimbursement, unless the  municipality, as a condition                                                                    
     of reimbursement:                                                                                                          
     1.  Agrees  to  construction  of  an  appropriate  size                                                                    
     school facility  that meets  criteria developed  by the                                                                    
     Department  and section  9 of  this bill.  In assessing                                                                    
     this criteria,  the Commissioner of DEED  shall consult                                                                    
     with AEA.                                                                                                                  
     2.  Provides  reasonable  assurance  that  the  project                                                                    
     costs  will  not  exceed   the  maximum  cost  standard                                                                    
     established  by the  Department under  Section 9.  If a                                                                    
     school district does exceed  the maximum cost standard,                                                                    
     the municipality or  REAA will pay for  the excess with                                                                    
     funds from outside of state government.                                                                                    
     3.  If  a project  receives  bond  reimbursement of  50                                                                    
     percent  or  more  of  the cost  of  the  project,  the                                                                    
     municipality, architects,  engineers and  designers are                                                                    
     prohibited from submitting  for an architectural design                                                                    
     award.                                                                                                                     
                                                                                                                                
     Section 11 (pg. 11 lines 3 - 9): Applicability                                                                             
                                                                                                                                
     Section 12 (pg. 11 Lines 10 - 19):                                                                                         
     a. DEED shall adopt  regulations necessary to implement                                                                    
     the changes made by this act.                                                                                              
     b.  The  regulations  required  under  section  9  must                                                                    
     implement  the  recommendations  of the  public  school                                                                    
     energy efficiency  and standardized  components working                                                                    
     group established in section 10.                                                                                           
     c.  The  regulations take  effect  after  18 months  of                                                                    
     enactment of this legislation.                                                                                             
                                                                                                                                
     Section 13  (pg. 11 Lines  20-21): Sections 1-9  and 11                                                                    
     take  effect  24 months  after  the  effective date  of                                                                    
     section 10                                                                                                                 
                                                                                                                                
     Section 14  (pg. 11 Line  22): Section 10  takes effect                                                                    
     immediately.                                                                                                               
                                                                                                                                
     Section  15  (pg. 11  Lines  23-24):  Section 12  takes                                                                    
     effect 18  months after the  effective date  of section                                                                    
     10 of this act.                                                                                                            
                                                                                                                                
9:13:59 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
9:14:08 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:14:28 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon REOPENED public testimony.                                                                                   
                                                                                                                                
9:15:03 AM                                                                                                                    
                                                                                                                                
ALYSE  GALVIN, SELF,  JUNEAU, testified  in  support of  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
SENATOR PETE KELLY,                                                                                                             
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
9:16:43 AM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon   announced   that  there   were   many                                                                    
individuals  from  the  Department of  Education  and  Early                                                                    
Development (DEED).                                                                                                             
                                                                                                                                
9:17:31 AM                                                                                                                    
                                                                                                                                
HEIDI  TESHNER,  ADMIN   SERVICES  DIRECTOR,  DEPARTMENT  OF                                                                    
EDUCATION AND EARLY DEVELOPMENT, introduced herself.                                                                            
                                                                                                                                
TIM  MEARIG, FACILITIES  ARCHITECT ASSISTANT,  DEPARTMENT OF                                                                    
EDUCATION AND EARLY DEVELOPMENT, introduced himself.                                                                            
                                                                                                                                
9:17:34 AM                                                                                                                    
                                                                                                                                
Ms. Teshner //                                                                                                                  
                                                                                                                                
Mr. Mearig had no comment on the bill.                                                                                          
                                                                                                                                
9:18:02 AM                                                                                                                    
                                                                                                                                
Senator Olson queried // Mr. Mearig replied that //                                                                             
                                                                                                                                
9:19:23 AM                                                                                                                    
                                                                                                                                
Senator Olson // Mr. Mearig /                                                                                                   
                                                                                                                                
9:20:09 AM                                                                                                                    
                                                                                                                                
Senator  von Imhof  // Mr.  Mearig stated  that the  working                                                                    
group was  currently diverse, and the  individuals from each                                                                    
agency was //                                                                                                                   
                                                                                                                                
9:22:00 AM                                                                                                                    
                                                                                                                                
Senator von Imhof // Mr. Mearig //                                                                                              
                                                                                                                                
9:24:21 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy // Mr. Mearig /                                                                                                
                                                                                                                                
9:25:32 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy surmised that the // Mr. Mearig agreed,                                                                        
and explained that //                                                                                                           
                                                                                                                                
9:25:54 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy //                                                                                                             
                                                                                                                                
9:27:07 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon disagreed //                                                                                                 
                                                                                                                                
9:28:49 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy stressed that many school //                                                                                   
                                                                                                                                
9:29:27 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon //                                                                                                           
                                                                                                                                
9:30:59 AM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop /                                                                                                             
                                                                                                                                
9:32:20 AM                                                                                                                    
                                                                                                                                
Senator von Imhof //                                                                                                            
                                                                                                                                
9:33:57 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon announced that she hoped to move the                                                                         
bill from committee in the following legislative session.                                                                       
She remarked that //                                                                                                            
                                                                                                                                
SB 87 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 87 - Letter of Opposition Architects Alaska, Inc..pdf SFIN 4/6/2017 9:00:00 AM
SB 87
SB 87 A4LE Position Letter.pdf SFIN 4/6/2017 9:00:00 AM
SB 87
SB 87 2017 School Capacity.pdf SFIN 4/6/2017 9:00:00 AM
SB 87
SB 87 Climate Zones.pdf SFIN 4/6/2017 9:00:00 AM
SB 87
SB 87 DEED Capital Improvement Projects 15 year analysis.pdf SFIN 4/6/2017 9:00:00 AM
SB 87
SB 87 DEED Energy Data FY02 - FY17.pdf SFIN 4/6/2017 9:00:00 AM
SB 87
SB 87 Sectional Analysis Changes.pdf SFIN 4/6/2017 9:00:00 AM
SB 87
SB 87 Sectional Analysis.pdf SFIN 4/6/2017 9:00:00 AM
SB 87
SB 87 Sponsor Statement.pdf SFIN 4/6/2017 9:00:00 AM
SB 87
SB 96 public testimony Poumagoux.pdf SFIN 4/6/2017 9:00:00 AM
SB 96
CSSB 96(EDC) - Sectional Analysis.pdf SFIN 4/6/2017 9:00:00 AM
SB 96
SB 96 CSSB 96(EDC) - Supporting Document - Response to SFIN Questions - 4-6-17.pdf SFIN 4/6/2017 9:00:00 AM
SB 96