Legislature(2009 - 2010)BUTROVICH 205

02/24/2010 03:30 PM RESOURCES


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Audio Topic
03:41:05 PM Start
03:42:04 PM SB220
04:59:22 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Overview: Alaska Railroad Bonding
Authority and Gasline Development
+= SB 220 ENERGY EFFICIENCY/ ALTERNATIVE ENERGY TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
                    SB 220-ENERGY EFFICIENCY/ ALTERNATIVE ENERGY                                                            
                                                                                                                                
3:42:04 PM                                                                                                                    
CO-CHAIR       MCGUIRE      announced        SB   220     to   be    up   for    consideration                                  
[CSSB 220(RES) version K was before the committee].                                                                             
                                                                                                                                
MIKE    PAWLOWSKI,       aide    to   Senator      McGuire,      said    Amendment       K.13    [1]                            
was    the   first     amendment       they    would     take     up   today    and    Jay    Livey                             
would explain it.                                                                                                               
                                                                                                                                
CO-CHAIR MCGUIRE said this would be called Amendment 1.                                                                         
                                                                                                                                
                                                                        26-LS1197\K.13                                          
                                                                        Chenoweth/Kane                                          
                                     AMENDMENT 1                                                                            
                                                                                                                                
        OFFERED IN THE SENATE TO:                                                                                             
        CSSB 220(RES), Draft Version "K"                                                                                      
                                                                                                                                
        Page 1, line 3, following "cooperative,":                                                                             
                Insert        "to      the      Alaska         affordable          heating                                    
        program,"                                                                                                             
                                                                                                                                
        Page 13, following line 18:                                                                                             
        Insert new bill sections to read:                                                                                       
           "* Sec. 21. AS 47.25.621 is amended to read:                                                                     
                Sec.       47.25.621.           Alaska        affordable           heating                                  
        [ASSISTANCE]           program.        (a)      The      Alaska       affordable                                  
        heating       [ASSISTANCE]         program       is    established         in    the                                    
        Department        of   Health      and    Social      Services       to    provide                                      
        expanded       eligibility         for     Alaska      residents        for     home                                    
        heating      assistance,        to   the    extent     funds     are    available                                   
        in   the   Alaska     affordable        heating      fund    [APPROPRIATED         BY                               
        THE LEGISLATURE FOR THAT PURPOSE].                                                                                      
                (b)  The Alaska affordable heating [ASSISTANCE]                                                             
        program      established        under     this    section      is   in   addition                                       
        to     the      federal         low-income          heating        and      energy                                      
        assistance       provided       under     42   U.S.C.     8621    -   8629    (Low-                                     
        Income       Home      Energy       Assistance         Act     of     1981),       as                                   
        amended, and implementing regulations.                                                                                  
             *  Sec.    22.    AS  47.25.621       is   amended      by   adding      a  new                                  
        subsection to read:                                                                                                     
                (c)  The Alaska affordable heating fund is                                                                      
        established        as    a  separate       fund     to   be    managed      by   the                                    
        Department          of      Revenue.         The       fund      consists          of                                   
        appropriations         made    to   it.    Interest      earned     by   the    fund                                    
        may    be   appropriated         to    it.    The    Department        of   Health                                      
        and    Social     Services       shall     use    money     in    the    fund    for                                    
        Alaska affordable heating payments.                                                                                     
           * Sec. 23. AS 47.25.622 is amended to read:                                                                        
                Sec. 47.25.622. Duties. The Department of Health                                                          
        and Social Services [DEPARTMENT] shall                                                                              
                       (1)  administer the Alaska affordable                                                                
        heating          [ASSISTANCE]             program          provided           under                                     
        AS 47.25.621;                                                                                                           
                       (2)          adopt       regulations          under       AS   44.62                                     
        (Administrative            Procedure         Act)      to    carry       out     the                                    
        purpose of the program;                                                                                                 
                       (3)      coordinate       payments       among    other     heating                                      
        assistance programs to avoid duplication of payments.                                                                   
           * Sec. 24. AS 47.25.623 is amended to read:                                                                        
                Sec. 47.25.623. Eligibility; payment amount. An                                                             
        individual        is    eligible        for    home     heating       assistance                                        
        payments         under        the       Alaska        affordable           heating                                  
        [ASSISTANCE] program if the individual                                                                                  
                       (1)  is a resident of the state;                                                                         
                       (2)      is   physically        present      and   resides      in   a                                   
        home     in   the     state     when     the    home     heating       costs     are                                    
        incurred;                                                                                                               
                       (3)      for   assistance        calculated       under     (b)   and                                
        (c)   of   this    section,      has    gross    household       income     not    to                               
        exceed,       as     a    percentage         of     the     federal        poverty                                  
        guideline         for     Alaska       set      by     the     United       States                                  
        Department        of   Health      and    Human      Services       and    revised                                  
        under 42 U.S.C. 9902(2),                                                                                            
                       (A)      225    percent      for    a   determination         to    be                               
        made under (c)(1) - (3) of this section; and                                                                        
                       (B)      250    percent      for    a   determination         to    be                               
        made     under     (c)(4)      of    this     section;        and    [HAS     GROSS                                 
        HOUSEHOLD       INCOME      ABOVE     150   PERCENT      BUT    THAT     DOES    NOT                                    
        EXCEED      225    PERCENT      OF    THE    FEDERAL      POVERTY       GUIDELINE                                       
        FOR    ALASKA      SET     BY    THE    UNITED      STATES      DEPARTMENT         OF                                   
        HEALTH     AND    HUMAN     SERVICES      AND    REVISED      UNDER    42   U.S.C.                                      
        9902(2);]                                                                                                               
                       (4)        meets     other      eligibility         requirements                                         
        specified in regulations adopted under AS 47.25.622.                                                                    
             *  Sec.     25.    AS   47.25.623       is    amended      by   adding      new                                  
        subsections to read:                                                                                                    
                (b)  The Department of Health and Social Services                                                               
        shall    determine       the    number     of   points     for   each    eligible                                       
        individual        based     on   the    point      formula      used     under     42                                   
        U.S.C.     8621    -   8629    (Low-Income         Home    Energy     Assistance                                        
        Act      of       1981),        as      amended,         and       implementing                                         
        regulations.          Except       as     provided        in     (d)     of     this                                    
        section,       the    amount     of   the    Alaska      affordable        heating                                      
        payment       for     an    individual         equals      the     base     amount                                      
        calculated       under     (c)    of   this    section      minus     the   amount                                      
        the     individual         is    eligible        to     receive       under      the                                    
        federal       low-income         home      energy       assistance         program                                      
        under      42     U.S.C.       8621      -     8629,      as     amended,        and                                    
        implementing regulations.                                                                                               
                (c)  The Department of Health and Social Services                                                               
        shall      calculate         the      base      amount       of     the     Alaska                                      
        affordable       heating      payment      for   the    individual       based     on                                   
        points     determined       under     (b)   of   this    section      and   on   the                                    
        average      price    a  barrel     of   Alaska     North     Slope     crude    oil                                    
        for     sale     on    the     United       States      West     Coast      during                                      
        September        through       February       of    the    preceding        fiscal                                      
        year as follows:                                                                                                        
                       (1)      $130    a   point    when    the    average      price     is                                   
        not more than $75 a barrel;                                                                                             
                       (2)      $140    a   point    when    the    average      price     is                                   
        more than $75 and not more than $100 a barrel;                                                                          
                       (3)      $150    a   point    when    the    average      price     is                                   
        more than $100 and not more than $150 a barrel;                                                                         
                       (4)      $165    a   point    when    the    average      price     is                                   
        more than $150 a barrel.                                                                                                
                (d)  Under the program authorized by AS 47.25.621                                                               
        -    47.25.626,         taking       into     consideration           the     gross                                     
        household        income      rates      established         in    (a)     of    this                                    
        section      and    the    base     amounts      to    be   calculated        under                                     
        (b) and (c) of this section,                                                                                            
                       (1)       if   insufficient         money      is   appropriated                                         
        to   fully     fund     the    Alaska     affordable        heating      payments                                       
        during the fiscal year, the department                                                                                  
                       (A)      shall,     for    the    duration      of   that    fiscal                                      
        year,     suspend      calculation        and    payment      under     (a)(3)(B)                                       
        of   this     section       and    calculate        and    pay    all    eligible                                       
        individuals under (a)(3)(A) of this section; and                                                                        
                       (B)      may,    to    the   extent      there     is   or   may    be                                   
        an     appropriation           balance        surplus        to     the     amount                                      
        required       to     make     all     payments        under     (A)     of     this                                    
        passenger,       by   regulation,        establish       at   any   time    during                                      
        the    fiscal      year    a   prospective         pro    rata    reduction        of                                   
        the    payment       rates     that     the     department        will     pay     to                                   
        eligible       individuals         under      the     program      during       that                                    
        fiscal     year    qualifying       under     (a)(3)(B)       of   this    section                                      
        and,     thereafter,        may     provide      for     prorated       payments;                                       
        and                                                                                                                     
                       (2)            if     the       commissioner           reasonably                                        
        determines        that    the    total     of    appropriations          from    all                                    
        sources      during     the    fiscal      year    may    exceed      the   amount                                      
        required      to   fully     fund    all   applications         for   assistance                                        
        for       Alaska         affordable          heating          payments,          the                                    
        commissioner         may    expend      the    amount      of    excess     money,                                      
        not   to    exceed     the    total    amount      of   the   appropriations,                                           
        to   carry     out   the    purpose      of   AS   47.25.621       -  47.25.626;                                        
        under        the      authority          of      this        paragraph,          the                                    
        commissioner          shall      distribute        the     estimated        excess                                      
        money     pro   rata     among     individuals        receiving       assistance                                        
        under     this    section       without      regard     to    the    limitations                                        
        set    out     in    the    dollar      value      of    the    point      formula                                      
        expressed in (c)(1) - (4) of this section.                                                                              
           * Sec. 26. AS 47.25.626(a) is amended to read:                                                                     
                (a)  The Department of Health and Social Services                                                           
        [DEPARTMENT]         may     develop       a   regional        Alaska      heating                                      
        [ASSISTANCE]           program        for      the      administration             of                                   
        AS   47.25.621        -    47.25.626        to     provide       home      heating                                      
        assistance       in   a  uniform      and    cost-effective         manner     in   a                                   
        region     of   this    state     if   an   Alaska      Native     organization                                         
        is   authorized       to   implement       a  federally       approved      tribal                                      
        family     assistance        plan     that    includes       that     region     and                                    
        has   been     awarded      a  tribal     energy      assistance       grant     for                                    
        a   program      that     includes      that     region      under     42   U.S.C.                                      
        8623(d).                                                                                                                
           * Sec. 27. AS 47.25.626(b) is amended to read:                                                                     
                (b)  The department may award contracts to                                                                      
        implement        a    program       developed         under      (a)     of     this                                    
        section.       A   contract       authorized        for    delivery       of    home                                    
        heating       assistance        under      a   regional        Alaska      heating                                      
        [ASSISTANCE]        program      under     this    section      is  exempt      from                                    
        the    competitive         bid    requirements          of   AS   36.30     (State                                      
        Procurement          Code).        Subject        to      appropriation,            a                                   
        contract      under     this    section      must    be   in   an   amount      that                                    
        represents        a   fair     and    equitable        share     of    the    money                                     
        appropriated           for      the      Alaska        affordable          heating                                  
        [ASSISTANCE]        program      under     AS   47.25.621      -   47.25.626       to                                   
        serve     the    state      residents       specified        in    (a)    of    this                                    
        section.      The    authority       provided       under    this     section      to                                   
        contract      is    in   addition       to   the    authority       to   contract                                       
        in AS 47.05.015 or other law.                                                                                           
           * Sec. 28. AS 47.25.626(f) is amended to read:                                                                     
                (f)  If the department establishes a regional                                                                   
        Alaska       heating       [ASSISTANCE]          program       and     awards       a                                   
        contract      to   provide      home    heating      assistance       under     this                                    
        section,      a  person      applying      for   home    heating      assistance                                        
        under     AS   47.25.621       -   47.25.626       in    the    region      of   the                                    
        state       covered        by      the      regional         Alaska        heating                                      
        [ASSISTANCE]            program         may      obtain         home       heating                                      
        assistance         from      the     department          only      through       the                                    
        organization        designated        by   the   department        to   serve    the                                    
        region."                                                                                                                
                                                                                                                                
        Renumber the following bill sections accordingly.                                                                       
                                                                                                                                
JAY    LIVEY,      aide     to   Senator       Hoffman,       turned     to    Amendment       K.13                             
version labeled for this meeting as Amendment 1.                                                                                
                                                                                                                                
CO-CHAIR       WIELECHOWSKI         moved      to   adopt      Amendment       1   labeled       26-                            
LS1197\K.13.                                                                                                                    
                                                                                                                                
SENATOR FRENCH objected for discussion purposes.                                                                                
                                                                                                                                
MR.     LIVEY      explained        that     the     first      change       appears       in    the                            
previous      section      on   page    3,  lines     2-8.    He   recalled      that    when    the                            
numbers      of   points     an   applicant      would     achieve      through     the    heating                              
assistance        programs       were     calculated        before,      they     included       one                            
additional        point      for    applying       to    the     weatherization          program.                               
From    a  policy      perspective        they    thought      it  was    a  good    way    to   get                            
folks     into     that    program.       In   further      talks      with    the    department                                
they    determined        that    is   a   very    administratively           burdensome       item                             
for them. So it was deleted.                                                                                                    
                                                                                                                                
3:44:29 PM                                                                                                                    
MR.    PAWLOWSKI      thanked      Mr.    Livey    for    working      with    them    to   find    a                           
way   to   fit    efficiency       standards       into    this    amendment,       but    finding                              
out it was too difficult to do. It was a good effort.                                                                           
                                                                                                                                
CO-CHAIR      WIELECHOWSKI         asked    if   the    administration         had    a  position                               
on the amendment.                                                                                                               
                                                                                                                                
WILDA     LAUGHLIN,        Legislative        Liaison,       Department         of   Health      and                            
Social     Services       (DHSS),      said    this    amendment       was    currently       under                             
consideration and they didn't have a position on it.                                                                            
                                                                                                                                
SENATOR      FRENCH     withdrew      his   objection       and    Amendment       1  [K.13]     was                            
adopted.                                                                                                                        
                                                                                                                                
CO-CHAIR       MCGUIRE      found     no   further      objection       to   Amendment       1   and                            
so it was adopted.                                                                                                              
                                                                                                                                
3:46:18 PM                                                                                                                    
CO-CHAIR       WIELECHOWSKI         moved     to    adopt     Amendment       2,    labeled      26-                            
LS1197\K.2, Kane [referred to as K.2 in 2/18/10 meeting].                                                                       
                                                                                                                                
                                                                            26-LS1197\K.2                                       
                                                                                        Kane                                    
                                                                                                                                
                                     AMENDMENT 2                                                                            
                                                                                                                                
                   OFFERED IN THE SENATE SENATORS WIELECHOWSKI AND                                                              
        MCGUIRE TO:  CSSB 220(RES), Draft Version "K"                                                                           
                                                                                                                                
        Page 1, line 3:                                                                                                         
                Delete the first occurrence of "and"                                                                          
                                                                                                                                
        Page     1,   line     5,    following       the     second      occurrence        of                                   
        "fund":                                                                                                               
                Insert "establishing an Alaska energy efficiency                                                              
        revolving       loan     fund;     and    authorizing        and    relating       to                                 
        the    issuance       of   bonds     by    the    Alaska      Housing      Finance                                    
        Corporation"                                                                                                          
                                                                                                                                
        Page 3, line 18:                                                                                                        
                Delete "sec. 15"                                                                                                
                Insert "secs. 6, 17, and 29"                                                                                    
                                                                                                                                
        Page 3, following line 20:                                                                                              
                Insert a new bill section to read:                                                                              
           "* Sec. 4. AS 14.08.101 is amended to read:                                                                      
                Sec. 14.08.101. Powers. A regional school board                                                               
        may                                                                                                                     
                       (1)  sue and be sued;                                                                                    
                       (2)  contract with the department, the                                                                   
        Bureau       of     Indian       Affairs,        or     any      other      school                                      
        district,       agency,      or   regional      board     for    the    provision                                       
        of services, facilities, supplies, or utilities;                                                                        
                       (3)  determine its own fiscal procedures,                                                                
        including       but    not    limited      to    policies      and    procedures                                        
        for     the     purchase        of    supplies        and     equipment;         the                                    
        regional        school       boards       are     exempt       from      AS   37.05                                     
        (Fiscal         Procedures           Act)        and       AS  36.30        (State                                      
        Procurement Code);                                                                                                      
                       (4)  appoint, compensate, and otherwise                                                                  
        control      all    school      employees       in   accordance        with     this                                    
        title;      these     employees        are     not    subject       to   AS   39.25                                     
        (State Personnel Act);                                                                                                  
                       (5)               adopt          regulations             governing                                       
        organization,            policies,         and      procedures          for      the                                    
        operation of the schools;                                                                                               
                       (6)              establish,           maintain,           operate,                                       
        discontinue,          and      combine       schools        subject       to     the                                    
        approval of the commissioner;                                                                                           
                       (7)  recommend to the department projects                                                                
        for    construction,          rehabilitation,           and    improvement         of                                   
        schools      and    education-related            facilities       as    specified                                       
        in    AS  14.11.011(b),          and    plan,      design,      and     construct                                       
        the   project      when     the   responsibility          for    it   is   assumed                                      
        under AS 14.11.020;                                                                                                     
                       (8)  by resolution adopted by a majority of                                                              
        all    the     members      of    the     board     and     provided       to    the                                    
        commissioner         of    the    department,         assume      ownership        of                                   
        all   land    and    buildings      used    in   relation       to  the    schools                                      
        in     the     regional        educational          attendance         area,       as                                   
        provided for in AS 14.08.151(b);                                                                                        
                       (9)  provide housing for rental to teachers,                                                             
        by   leasing       existing       housing      from     a   local      agency      or                                   
        individual,        by    entering      into     contractual        arrangements                                         
        with     a   local     agency      or    individual        to    lease     housing                                      
        that     will      be    constructed         by    the     local      agency       or                                   
        individual       for    that    purpose,      or,   without      using     for   the                                    
        purpose      that     portion       of    public      school      funding       that                                    
        consists       of    state      aid     provided       under      AS  14.17,       by                                   
        constructing         or    otherwise        acquiring       housing       that     is                                   
        owned       and      managed        by     the      regional         educational                                        
        attendance area for rental to teachers;                                                                                 
                       (10)  employ a chief school administrator;                                                               
                       (11)  apply for and use the proceeds of a                                                            
        loan    from    the    Alaska     energy      efficiency       revolving        loan                                
        fund (AS 18.56.855);                                                                                                
                       (12)  exercise those other functions that                                                            
        may    be    necessary       for     the    proper      performance        of    its                                    
        responsibilities."                                                                                                      
                                                                                                                                
        Renumber the following bill sections accordingly.                                                                       
                                                                                                                                
        Page 3, following line 25:                                                                                              
                Insert a new bill section to read:                                                                              
           "* Sec. 6. AS 18.56 is amended by adding a new section to read:                                                  
                                                                                                                                
                Sec. 18.56.855. Alaska energy efficiency revolving loan fund. (a) The                                         
                                                                                                                                
        Alaska  energy  efficiency revolving  loan fund  is established in the corporation  to                                  
                                                                                                                                
        carry out the purposes  of this section. The revolving  loan fund  consists of money                                    
                                                                                                                                
        or assets appropriated   or transferred  to the corporation   for the revolving  loan                                   
                                                                                                                                
        fund, including  money    and assets  deposited  in the revolving  loan  fund  by  the                                  
                                                                                                                                
        corporation  and  earnings  on  investments  of  money   held  in the revolving  loan                                   
                                                                                                                                
        fund.  The   corporation   may   establish  separate   accounts   in the  fund.   The                                   
                                                                                                                                
        corporation  shall establish the interest rates, security provisions, and other terms                                   
                                                                                                                                
        of a loan made   under this section taking into consideration  the corporation's  cost                                  
                                                                                                                                
        of funds and other factors the corporation considers appropriate.                                                       
                                                                                                                                
                (b)  Money and other assets of the Alaska energy efficiency revolving loan                                      
        fund may be used to                                                                                                     
                                                                                                                                
                       (1)  make loans to regional educational attendance areas or to                                           
                                                                                                                                
        municipal  governments,   including  subdivisions  of municipal   governments,   or to                                  
                                                                                                                                
        the state for the purpose of financing energy  efficiency improvements   to buildings                                   
                                                                                                                                
        owned  by  regional educational  attendance  areas, by the state, or by municipalities                                  
                                                                                                                                
        in the state;                                                                                                           
                                                                                                                                
                       (2)  secure bonds issued by the corporation to finance the loans                                         
                                                                                                                                
        described in (1) of this subsection;                                                                                    
                                                                                                                                
                       (3)  pay costs of administering the revolving loan fund; and                                             
                                                                                                                                
                       (4)  pay the costs of administering and enforcing the terms of loans                                     
                                                                                                                                
        made by the corporation from the revolving loan fund.                                                                   
                                                                                                                                
                (c)  Before a regional educational attendance area, a municipal                                                 
                                                                                                                                
        government,   or a  subdivision  of a  municipal  government,   may   borrow   money                                    
                                                                                                                                
        from  the corporation  under  this section, the regional educational attendance  area                                   
                                                                                                                                
        or the municipal  government   shall waive  any sovereign  immunity   defense  it may                                   
                                                                                                                                
        have  available  to it with  respect to enforcement    of the  terms  of the  loan. A                                   
                                                                                                                                
        regional  educational  attendance   area  or a  municipal   government    may   waive                                   
                                                                                                                                
        sovereign  immunity   to comply  with  the requirement  of this subsection. The  state                                  
                                                                                                                                
        waives  any  sovereign  immunity   defense  against  enforcement   of the  terms of  a                                  
                                                                                                                                
        loan made   to the state under this section. A person or corporation  having  a claim                                   
                                                                                                                                
        under  this section  shall bring  an  action  in a  state court  in Alaska   that has                                   
                                                                                                                                
        jurisdiction over the claim.                                                                                            
                                                                                                                                
                (d)  All regional educational attendance areas and municipal governments                                        
                                                                                                                                
        in the state are authorized to borrow  from  the corporation  under this section. The                                   
                                                                                                                                
        corporation  shall set out the terms of a loan to a regional  educational  attendance                                   
                                                                                                                                
        area in a loan agreement  or similar document.  At  the discretion of the corporation,                                  
                                                                                                                                
        a borrowing  by  a regional educational attendance  area or a municipal  government                                     
                                                                                                                                
        under this section may  be effected by use  of a loan agreement  or similar document                                    
                                                                                                                                
        evidencing  and  setting out the terms of the loan  or by issuance  of a bond  by  the                                  
                                                                                                                                
        municipal  government    to the  corporation.  Notwithstanding   a  charter provision                                   
                                                                                                                                
        requiring public  sale by a regional educational  attendance  area  or a municipality                                   
        of its municipal  bonds  or other  indebtedness,  a regional  educational  attendance                                   
                                                                                                                                
        area or municipality  may  sell its bonds under  this section to the corporation  at a                                  
                                                                                                                                
        negotiated, private sale. At  the discretion of the corporation,  the bonds  or other                                   
                                                                                                                                
        indebtedness  of the municipality  may   be general  obligations of  the municipality                                   
                                                                                                                                
        or may  be secured  by an identified revenue  source  or by a combination  of the full                                  
                                                                                                                                
        faith and credit of the municipality and an identified revenue source.                                                  
                                                                                                                                
                (e)  Notwithstanding any other provision of law, to the extent that a                                           
                                                                                                                                
        department  or agency  of the state is the custodian of money   payable  to a regional                                  
                                                                                                                                
        educational attendance  area or to a municipality, at any time after written notice to                                  
                                                                                                                                
        the department  or agency  head  from  the corporation  that the regional educational                                   
                                                                                                                                
        attendance  area or  municipality  is in default on  the payment   of principal of  or                                  
                                                                                                                                
        interest on municipal   bonds  or  other indebtedness   then  held or  owned   by  the                                  
                                                                                                                                
        corporation, or  amounts  due  under  an agreement   between   the corporation  and  a                                  
                                                                                                                                
        regional educational  attendance  area or a municipality,  the department  or agency                                    
                                                                                                                                
        shall withhold   the  payment    of  that money    from   that  regional  educational                                   
                                                                                                                                
        attendance  area or municipality and  pay over  the money  to the corporation  for the                                  
                                                                                                                                
        purpose  of paying  the principal of and interest on the bonds  or indebtedness.  The                                   
                                                                                                                                
        notice must  be  given in each  instance  of default. If a notice is given under  this                                  
                                                                                                                                
        subsection  and  under   AS  44.85.170   and  the default  is continuing   under  this                                  
                                                                                                                                
        subsection   and  under   AS  44.85.170,  the  department    or  agency   shall make                                    
                                                                                                                                
        payment   to the corporation and  to the Alaska Municipal   Bond  Bank  Authority  on                                   
                                                                                                                                
        a pro rata basis, taking into consideration  the principal amount   of the respective                                   
                                                                                                                                
        default amounts.                                                                                                        
                                                                                                                                
                (f)  An authorized state officer may borrow from the corporation under                                          
                                                                                                                                
        this section for buildings  owned   by  the state. The superintendent   of a regional                                   
                                                                                                                                
        educational   attendance   area,  at  the  direction  of  the  regional   educational                                   
                                                                                                                                
        attendance  area school board, may   borrow  from  the corporation under  this section                                  
                                                                                                                                
        for buildings owned by the regional educational attendance area.                                                        
                                                                                                                                
                (g)  In addition to other security that may be given with respect to a loan                                     
                                                                                                                                
        made   under  this section, the  corporation  may   require  a deed  of  trust on  the                                  
                                                                                                                                
        building  that is the subject of the energy  efficiency  loan and  the real estate on                                   
        which   the building   is located. A   regional  educational  attendance   area  or  a                                  
                                                                                                                                
        municipality  may   grant  a deed  of  trust to the corporation   as needed   for this                                  
                                                                                                                                
        purpose.  An  authorized  state officer may grant  a deed of trust to the corporation                                   
                                                                                                                                
        as needed for this purpose.                                                                                             
                                                                                                                                
                (h)  The corporation shall administer the Alaska energy efficiency                                              
                                                                                                                                
   revolving loan fund in accordance with regulations adopted by the corporation.                                               
                                                                                                                                
      The corporation may adopt regulations under AS 18.56.088 to carry out the                                                 
                                                                                                                                
        purposes of this section.                                                                                               
                                                                                                                                
                (i)  This section applies to home rule municipalities.                                                          
                                                                                                                                
                (j)  In this section, "authorized state officer" means                                                          
                                                                                                                                
                       (1)  the commissioner of the department of the state for a building                                      
                                                                                                                                
        owned by the state;                                                                                                     
                                                                                                                                
                       (2)  the executive director of a public corporation for a building                                       
                                                                                                                                
        owned by the public corporation;                                                                                        
                                                                                                                                
                       (3)  the legislative council for a building owned by the legislature;                                    
                                                                                                                                
                       (4)  the administrative director of courts for a building owned by                                       
                                                                                                                                
        the judicial system;                                                                                                    
                                                                                                                                
                       (5)  any other person designated in writing by a person listed in (1)                                    
                                                                                                                                
        - (4) of this subsection."                                                                                              
                                                                                                                                
                                                                                                                                
        Renumber the following bill sections accordingly.                                                                       
                                                                                                                                
        Page 13, line 20:                                                                                                       
                Delete     "sec.    15"                                                                                         
                Insert     "sec.    17"                                                                                         
                                                                                                                                
        Page 13, line 21:                                                                                                       
                Delete     "sec.    11"                                                                                         
                Insert     "sec.    13"                                                                                         
                                                                                                                                
        Page 13, lines 21 - 22:                                                                                                 
                Delete     "sec.    12"                                                                                         
                Insert     "sec.    14"                                                                                         
                                                                                                                                
        Page 13, line 27:                                                                                                       
                Delete     "sec.    13"                                                                                         
                Insert     "sec.    15"                                                                                         
                                                                                                                                
        Page 14, following line 10:                                                                                             
                Insert new bill sections to read:                                                                               
             "*   Sec.     29.    The     uncodified        law    of    the    State      of                               
        Alaska is amended by adding a new section to read:                                                                      
                BOND AUTHORIZATION AND PROVISIONS. (a) In addition to the                                                       
                                                                                                                                
        powers   in AS  18.56.090,  the  Alaska  Housing   Finance   Corporation   may   issue                                  
                                                                                                                                
        bonds  in an amount   not to exceed  $250,000,000    to make  loans  from  the energy                                   
                                                                                                                                
        efficiency revolving  loan fund  established by  AS  18.56.855,  enacted by  sec. 6 of                                  
                                                                                                                                
        this Act, and to finance the  purposes  permitted by  AS  18.56.855,  enacted by  sec.                                  
                                                                                                                                
        6 of this Act. AS  18.56.110  - 18.56.190  and  18.56.855,  enacted  by sec. 6 of this                                  
                                                                                                                                
        Act, apply  to bonds issued  under this section, except that bonds  issued under  this                                  
                                                                                                                                
        section are  not subject  to, and may   not be  counted  against, the  bond  issuance                                   
                                                                                                                                
        limitation set out in AS 18.56.110(g).                                                                                  
                                                                                                                                
                (b)  The Alaska Housing Finance Corporation shall deposit the proceeds                                          
                                                                                                                                
        of bonds  issued under (a) of this section in the Alaska energy  efficiency revolving                                   
                                                                                                                                
        loan fund in accordance with AS 18.56.855, enacted by sec. 6 of this Act.                                               
                                                                                                                                
           * Sec. 30. The  uncodified  law of the  State of Alaska  is amended   by  adding  a                                
                                                                                                                                
        new section to read:                                                                                                    
                                                                                                                                
                REVISOR'S INSTRUCTION. The revisor of statutes is instructed to                                                 
                                                                                                                                
        change  the heading  of art. 6 of AS  18.56  from "Article  6. Energy  Conservation"                                    
                                                                                                                                
        to "Article 6. Energy Efficiency and Conservation Programs.""                                                           
                                                                                                                                
                                                                                                                                
SENATOR FRENCH objected for discussion purposes.                                                                                
                                                                                                                                
MR.    PAWLOWSKI       reminded       members      that     this    was    the    AHFC     program                              
that    took    the    federal      money    and    worked     it   into    a  revolving       loan                             
fund    for    energy      efficiency.        The    change      that    was    made     from    the                            
governor's        bill    in   this    amendment       was    the   inclusion       of   regional                               
education       attendance        areas    so   that    they     could    qualify      to   borrow                              
from    the    fund.     This    in   large     part    was   to   be   included       in   the    CS                           
in   lieu    of   the    Energy      Efficiency       Grant     Fund    that    was    taken     out                            
of   the   K   version      of   SB   220.    Originally       that    fund    was    dealt    with                             
through       grant      funds       where      one-time        monies      would      be     spent                             
upgrading       buildings        and    state     public     facilities.         The    revolving                               
loan    fund    was   viewed     as   a   more    sustainable       mechanism       where     money                             
could     be    loaned      out,    the    work     could     be    done,     and    the    energy                              
savings would come in and refill the coffers for the next round                                                                 
of work.                                                                                                                        
                                                                                                                                
CO-CHAIR       WIELECHOWSKI         said    he   was    pleased      with     this    amendment.                                
It    will     take     $18    million       of   the     federal      stimulus       money      and                            
leverage      it   into    $250    million.      It   will    save    Alaskans      tens    if   not                            
hundreds of millions of dollars and create about 1500-2000 jobs.                                                                
                                                                                                                                
CO-CHAIR MCGUIRE said she is also pleased.                                                                                      
                                                                                                                                
SENATOR FRENCH withdrew his objection and Amendment 2 was                                                                       
adopted.                                                                                                                        
                                                                                                                                
3:49:50 PM                                                                                                                    
CO-CHAIR WIELECHOWSKI moved Amendment 3, labeled 26-LS1197\K.3.                                                                 
                                                                                                                                
                                                                            26-LS1197\K.3                                       
                                                                                        Kane                                    
                                                                                                                                
                                     AMENDMENT 3                                                                            
                                                                                                                                
        OFFERED       IN    THE     SENATE      TO:        CSSB      220(RES),        Draft                                     
        Version "K"                                                                                                             
                                                                                                                                
        Page 1, line 3:                                                                                                         
                Delete the first occurrence of "and"                                                                          
                                                                                                                                
        Page     1,   line     5,    following       the     second      occurrence        of                                   
        "fund":                                                                                                               
                Insert "; and directing the Department of                                                                     
        Transportation           and     Public      Facilities         to    prepare       a                                 
        report     on   the    feasibility        of   using     compressed        natural                                    
        gas   to   power     vehicles      in   the   state,     including       vehicles                                     
        owned     or   operated      by   the    state,     and    including       in   that                                  
        study,      if    warranted,         a   pilot      program       proposal       for                                  
        powering      some    vehicles       owned     or   operated      by   the    state                                   
        with compressed natural gas"                                                                                          
                                                                                                                                
        Page 14, following line 10:                                                                                             
                Insert a new bill section to read:                                                                              
             "*   Sec.     27.    The     uncodified        law    of    the    State      of                               
        Alaska is amended by adding a new section to read:                                                                      
                USE OF COMPRESSED NATURAL GAS TO POWER VEHICLES;                                                                
        PILOT      PROGRAM;        STUDY;       PROPOSAL;         REPORT.        (a)     The                                    
        Department         of    Transportation           and     Public      Facilities                                        
        shall,       under      the     authority         of    AS   44.42.020(a)(3),                                           
        study     the   feasibility         of   using     compressed       natural      gas                                    
        to power vehicles in the state. The study must                                                                          
                       (1)      review     existing      government        programs      and                                    
        incentives        offered      in    Utah     and    other     North     American                                       
        jurisdictions           that     promote        the     use     of    compressed                                        
        natural gas to power vehicles;                                                                                          
                       (2)       review      and    summarize       relevant       studies                                      
        and       investigations            on       existing         public        policy                                      
        incentives         that      encourage         the     use     of     compressed                                        
        natural gas to power vehicles;                                                                                          
                       (3)      evaluate      the    environmental         benefits      and                                    
        technical       merits      of    using     compressed        natural       gas    to                                   
        power vehicles;                                                                                                         
                       (4)       consider       the    economic,        environmental,                                          
        and     technological           advantages         and     disadvantages           of                                   
        using     and   promoting       the    use    of   compressed       natural      gas                                    
        to power vehicles in the state; and                                                                                     
                       (5)       if    warranted        by   the    findings       of    the                                    
        study,     set    out    a  proposal       for    a  pilot     program      in   the                                    
        state     to    test    the    use     of   compressed        natural       gas    to                                   
        power     vehicles       owned      or   operated       by    the    state;      the                                    
        proposal must                                                                                                           
                       (A)       recommend       the    most     cost-effective          and                                    
        appropriate        departments        and   geographic        locations       for   a                                   
        pilot program;                                                                                                          
                       (B)         detail       how     the     pilot      program,        if                                   
        successful,        could    be   expanded       to   provide     for    increased                                       
        use   of    compressed       natural      gas    to   power     vehicles      owned                                     
        or   operated       by   the    state,     as   well     as   privately       owned                                     
        or operated vehicles;                                                                                                   
                       (C)       estimate      the    costs     to    the    state     of   a                                   
        pilot      program       in     which      the     state      would      purchase                                       
        vehicles      powered      by   compressed        natural      gas    or   convert                                      
        existing      vehicles       to   be   powered      by   compressed        natural                                      
        gas, including                                                                                                          
                       (i)         the     costs      of     maintaining         vehicles                                       
        powered        by     compressed         natural        gas      and     training                                       
        maintenance personnel;                                                                                                  
                       (ii)       the   costs     of   adapting,       or    encouraging                                        
        the    adapting       of,    state     vehicle       fueling      locations        to                                   
        provide compressed natural gas;                                                                                         
                       (iii)       the   costs     of   using    compressed        natural                                      
        gas instead of diesel fuel or gasoline;                                                                                 
                       (iv)         the     costs      of    expanding        the     pilot                                     
        program      or   developing        additional        pilot    programs       under                                     
        (B) of this paragraph;                                                                                                  
                       (v)  other costs or savings that can be                                                                  
        reasonably expected to accompany the pilot program.                                                                     
        (b)        The     Department        of     Transportation           and    Public                                      
        Facilities         shall      prepare       a    report       containing         the                                    
        results      of    the    study     under     (a)     of   this     section      not                                    
        later      than     December      1,    2010.      The     department         shall                                     
        notify the legislature when the report is available."                                                                   
                                                                                                                                
SENATOR FRENCH objected for discussion purposes.                                                                                
                                                                                                                                
MR.    PAWLOWSKI       recalled      that    Amendment       3   was   offered      through      the                            
chair     at  the    request     of   Senator      Dyson.     It   directs      the   Department                                
of    Transportation          and    Public      Facilities        (DOTPF)       to    prepare      a                           
report      on   the    feasibility         of    using     compressed        natural      gas    to                            
power transportation vehicles.                                                                                                  
                                                                                                                                
CO-CHAIR      MCGUIRE      remarked      that    Barrow     was    considering        setting     up                            
a compressed natural gas station.                                                                                               
                                                                                                                                
SENATOR       DYSON      thanked       them     for    bringing        this     issue      up    for                            
consideration.          He  said    he   could     have    lined    up   a  number     of   people                              
to   testify      on   how    this    works     very    well     in   their     jurisdictions,                                  
but he didn't. He assumed there was support for it.                                                                             
                                                                                                                                
CO-CHAIR      WIELECHOWSKI         commented       that    he  thought      this    was    a  great                             
amendment,         particularly         as    people       reach     points       in    the    next                             
decade     where     we    have    oil    to   gas    price     ratios     of   15:1     or   20:1.                             
This    is    a  great     step    forward.       This    makes     all    the    sense     in   the                            
world     in  terms     of   cost    and   environmental         savings.      It   also    starts                              
moving      the    state      in   the     direction       of    powering       vehicles       with                             
natural gas seeing as how the state has so much of it.                                                                          
                                                                                                                                
SENATOR      DYSON    added     that    Merrill     Field     has   enough     gas    coming     off                            
of   the   regional      landfill       to   power    all    of  the    government       vehicles                               
in   the    Anchorage       Bowl    area    nearly     for    free.     Environmental         folks                             
always     like     this.    Most     of   the   resistance        he   has    had   is   from     is                           
"bureaucratic          inertia."        This     study      would      help     get     past     the                            
"sticking        point"       of     getting       some      high     compression          filling                              
stations that can fill a vehicle up quickly.                                                                                    
                                                                                                                                
SENATOR FRENCH removed his objection.                                                                                           
                                                                                                                                
CO-CHAIR      MCGUIRE      found     no   further      objection       and   Amendment       3   was                            
adopted.                                                                                                                        
                                                                                                                                
3:53:19 PM                                                                                                                    
CO-CHAIR MCGUIRE brought up an Amendment labeled 26-LS1197\K.6.                                                                 
                                                                                                                                
SENATOR WAGONER said he withdrew it the other day and that he                                                                   
wanted to work on it for later.                                                                                                 
                                                                                                                                
CO-CHAIR MCGUIRE moved Amendment 4, labeled 26-LS1197\K.11.                                                                     
                                                                                                                                
                                                                           26-LS1197\K.11                                       
                                                                                        Kane                                    
                                     AMENDMENT 4                                                                            
                                                                                                                                
               OFFERED IN THE SENATE               BY SENATOR MCGUIRE                                                           
        TO:  CSSB 220(RES), Draft Version "K"                                                                                   
                                                                                                                                
        Page 12, line 3, through page 13, line 18:                                                                              
                Delete all material and insert:                                                                                 
           "* Sec. 17. 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.    18.    AS  45.88.010       is   amended      by   adding      a  new                                  
        subsection to read:                                                                                                     
                (e)  The Alaska 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 appropriated to 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 and appropriated to the fund.                                                           
           * Sec. 19. 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.    20.    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     prior    to   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.       21.      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. 22. 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        shall     be   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.    23.    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. 24. 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 13, line 19, following "45.88.010(c),":                                                                            
                Delete "45.88.030(e)"                                                                                           
                Insert "45.88.030(c), 45.88.030(d),"                                                                            
                                                                                                                                
        Page 14, following line 10:                                                                                             
                Insert a new bill section to read:                                                                              
                   "* Sec. 31. The uncodified law of the State of                                                           
        Alaska is amended by adding a new section to read:                                                                      
                REVISOR'S INSTRUCTION. The revisor of statutes                                                                  
        shall     change      the   heading       of   art.     1  of    AS   45.88     from                                    
        "Alternative            Energy         Revolving          Loan        Fund"        to                                   
        "Alternative           Energy        Conservation            Revolving          Loan                                    
        Fund.""                                                                                                                 
                                                                                                                                
SENATOR FRENCH objected for discussion purposes.                                                                                
                                                                                                                                
MR.    PAWLOWSKI       clarified       that    members'      amendments        on   line    19   and                            
22   should     be   crossed     out.    This    repeals      and   replaces       Sections      20-                            
23   of    the    K   version      of   SB    220.    It    resurrects       the    Alternative                                 
Energy      Loan     Fund,      an    old    program       through       the    Department         of                           
Commerce,         Community        and      Economic        Development          (DCCED)       that                             
provided       small     loans     to   residences        and   businesses        that     allowed                              
for     conservation           programs.        He     recalled        that      this      program                              
actually       returned       money     to   the    state     in   the    long     run    and    the                            
money     was   appropriated         out   of   what     was   a   successful       program.       So                           
they     have    lain     dormant      on   the    statute      books.      The    idea     was    to                           
resurrect         that     program        and     extend       it     to    more      commercial                                
entities.       However,       when     this     amendment       was    brought       up   in    the                            
last    committee,        they     had    just    learned      from     the   DCCED      that    the                            
federal       laws     relating       to    how    mortgage       lenders       were     governed                               
changed      July     1,   getting      in   the    way    of   helping       residences.        So,                            
K.11     is    only     for     commercial        alternative          energy      conservation                                 
loans.      The   important        points     are    that     language      on    page    1,   line                             
19,     was     crossed        out     at     the     direction        of     the     department                                
specifically         because     the    intent     was    to   be   a  revolving       loan    fund                             
similar      to   the    AHFC     fund    and    this    created      problems       in   the    way                            
the money would revolve through the fund.                                                                                       
                                                                                                                                
The    other     final     important       point     is   that     Section      21   on   page     2,                           
lines     22-28     -   the    "turn     down    provision"        for    loans     of   $30,000-                               
$50,000      to    work     with    private       sector      commercial        banks.     It    was                            
found      that      it     was     better        to    work      with      the     traditional                                 
marketplace         of    public      banks      for     amounts       over     $30,000.       This                             
allows      businesses        to   borrow      from     the    state     usually       when    they                             
don't     have     access     to    other     financing        to   do   small      projects       to                           
provide       efficiency.         It     fills      an    important        hole     within       the                            
Omnibus as a whole to get to the commercial side.                                                                               
                                                                                                                                
CO-CHAIR      MCGUIRE      said    many    Alaskans,       particularly         small    business                               
owners,      have     asked     for    this    kind     of   a   provision.        And    it   does                             
fill a hole.                                                                                                                    
                                                                                                                                
MR.    PAWLOWSKI       thanked      Greg    Winegar      who   presented       this     amendment                               
for    the     DCCED      at   the     last     committee        hearing.       This     actually                               
started      as    an   idea     in   Senator       Egan's     office,       and    they    worked                              
closely with his staff to integrate his concepts.                                                                               
                                                                                                                                
SENATOR       FRENCH       withdrew       his     objection        and     Amendment        4    was                            
adopted.                                                                                                                        
                                                                                                                                
3:58:33 PM                                                                                                                    
CO-CHAIR MCGUIRE offered Amendment 5, labeled 26-LS1197\K.10.                                                                   
                                                                                                                                
                                                                           26-LS1197\K.10                                       
                                                                                        Kane                                    
                                     AMENDMENT 5                                                                            
                                                                                                                                
        OFFERED IN THE SENATE                      TO:  CSSB 220(RES), Draft                                                    
        Version "K"                                                                                                             
                                                                                                                                
        Page 1, line 5, following "loan fund,":                                                                               
                Insert "to nuclear waste material, to nuclear                                                                 
        energy     production       and    facilities,        to   the   definition        of                                 
        'power      project'      or    'project'       as    it   relates       to   rural                                   
        and    statewide       energy      programs       and    the     Alaska     Energy                                    
        Authority,        to    the    definition        of    'alternative         energy                                    
        system,'"                                                                                                             
                                                                                                                                
        Page 3, line 18:                                                                                                        
                Delete "sec. 15"                                                                                                
                Insert "sec. 20"                                                                                                
                                                                                                                                
        Page 3, following line 20:                                                                                              
        Insert new bill sections to read:                                                                                       
           "* Sec. 4. AS 18.45.020 is amended to read:                                                                      
                Sec. 18.45.020. United States licenses or permits                                                             
        required.        A   person      may     not     manufacture,         construct,                                      
        produce,        transfer,        acquire,        or     possess       a    special                                      
        nuclear      material,       by-product       material,       special      nuclear                                  
        material         facility,         by-product          material         facility,                                   
        production        facility,       or    utilization        facility,        or   act                                    
        as   an   operator      of   a  production       facility       or   utilization                                    
        facility,         wholly       within       the     state      without        first                                 
        obtaining        a   license       or   permit       for    the    activity        in                                   
        which     the    person     proposes       to   engage      from    the    Nuclear                                      
        Regulatory        Commission         if    the    commission         requires       a                                   
        license      or   permit     to   be   obtained       by   persons      proposing                                       
        to engage in the activities.                                                                                          
           * Sec. 5. AS 18.45.025(a) is amended to read:                                                                      
                (a)  A person may not construct a nuclear fuel                                                                  
        production         facility,         nuclear       utilization          facility,                                   
        utilization           facility,         reprocessing            facility,          or                                   
        nuclear      waste     disposal       facility       in   the    state     without                                      
        first      obtaining        a    permit       from      the     Department         of                                   
        Environmental          Conservation         to    construct       the    facility                                       
        on   land     designated        by    the    legislature         under     (b)     of                                   
        this section.                                                                                                           
           * Sec. 6. AS 18.45.025(b) is amended to read:                                                                      
                (b)  The legislature shall designate by law the                                                                 
        land    in   the    state     on   which     a   nuclear      fuel    production                                        
        facility,        nuclear       utilization         facility,         utilization                                
        facility,        nuclear      reprocessing          facility,        or    nuclear                              
        waste    disposal       facility      may    be  located.       In   designating                                        
        the land in the state on which                                                                                          
                       (1)  a nuclear utilization facility or                                                               
        utilization        facility       may    be    located,       the    legislature                                    
        shall     act   in   the    interest      of    regulating       the    economics                                   
        of nuclear energy;                                                                                                  
                       (2)  a nuclear fuel production facility,                                                         
        [NUCLEAR       UTILIZATION,]         nuclear       reprocessing         facility,                                   
        or   nuclear     waste     disposal      facility       may   be   located,      the                                    
        legislature        shall    act    to   protect     the    public     health     and                                    
        safety.                                                                                                                 
             *  Sec.    7.   AS   18.45.025(c)        is   repealed      and    reenacted                                     
        to read:                                                                                                                
                (c)  The Department of Environmental Conservation                                                               
        shall      adopt      regulations         governing        the     issuance        of                                   
        permits      required       by   (a)    of    this     section.      However,       a                                   
        permit     may    not    be   issued      until     the    municipality         with                                    
        jurisdiction          over      the     proposed        facility       site      has                                    
        approved the permit."                                                                                                   
                                                                                                                                
        Renumber the following bill sections accordingly.                                                                       
                                                                                                                                
        Page 7, following line 28:                                                                                              
        Insert a new bill section to read:                                                                                      
           "* Sec. 15. AS 42.45.990(4) is amended to read:                                                                  
                       (4)       "power      project"       or   "project"        means     a                                   
        plant,       works,      system,        or    facility,         together        with                                    
        related       or    necessary        facilities         and     appurtenances,                                          
        including        a   divided       or   undivided        interest        in   or    a                                   
        right     to   the    capacity      of    a  power     project      or   project,                                       
        that is used or is useful for the purpose of                                                                            
                       (A)      electrical       or   thermal      energy     production                                        
        [OTHER THAN NUCLEAR ENERGY PRODUCTION];                                                                                 
                       (B)        waste      energy      utilization         and    energy                                      
        conservation; or                                                                                                        
                       (C)      transmission,         purchase,       sale,     exchange,                                       
        and     interchange         of     electrical         or     thermal       energy,                                      
        including district heating or interties;"                                                                               
                                                                                                                                
        Renumber the following bill sections accordingly.                                                                       
                                                                                                                                
        Page 12, following line 2:                                                                                              
        Insert a new bill section to read:                                                                                      
           "* Sec. 22. AS 44.83.990(6) is amended to read:                                                                  
                       (6)       "power      project"       or   "project"        means     a                                   
        plant,       works,      system,        or    facility,         together        with                                    
        related       or    necessary        facilities         and     appurtenances,                                          
        including        a   divided       or   undivided        interest        in   or    a                                   
        right     to   the    capacity      of    a  power     project      or   project,                                       
        that is used or is useful for the purpose of                                                                            
                       (A)      electrical       or   thermal      energy     production                                        
        [OTHER THAN NUCLEAR ENERGY PRODUCTION];                                                                                 
                       (B)        waste      energy      utilization         and    energy                                      
        conservation; or                                                                                                        
                       (C)  transmission, purchase, sale, exchange,                                                             
                  and interchange of electrical or thermal energy,                                                              
        including district heating or interties;"                                                                               
                                                                                                                                
        Renumber the following bill sections accordingly.                                                                       
                                                                                                                                
        Page 13, following line 18:                                                                                             
                Insert a new bill section to read:                                                                              
           "* Sec. 27. AS 46.11.900(1) is amended to read:                                                                  
                       (1)  "alternative energy system"                                                                         
                       (A)  means a source of thermal, mechanical,                                                              
        or   electrical        energy     that     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)  includes                                                                                            
                       (i)  an alternative energy property as                                                                   
        defined by 26 U.S.C. 48(a)(3)(A); and                                                                                   
                       (ii)  a method of architectural design and                                                               
                   construction that provides for the collection,                                                               
        storage, and use of direct radiation from the sun;"                                                                     
                                                                                                                                
        Renumber the following bill sections accordingly.                                                                       
                                                                                                                                
        Page 13, line 19:                                                                                                       
                Delete "AS 45.88.010(c)"                                                                                        
                Insert "AS 18.45.027; AS 45.88.010(c)"                                                                          
                                                                                                                                
        Page 13, line 20:                                                                                                       
                Delete     "sec.    15"                                                                                         
                Insert     "sec.    20"                                                                                         
                                                                                                                                
        Page 13, line 21:                                                                                                       
                Delete     "sec.    11"                                                                                         
                Insert     "sec.    16"                                                                                         
                                                                                                                                
        Page 13, lines 21 - 22:                                                                                                 
                Delete     "sec.    12"                                                                                         
                Insert     "sec.    17"                                                                                         
                                                                                                                                
        Page 13, line 27:                                                                                                       
                Delete     "sec.    13"                                                                                         
                Insert     "sec.    18"                                                                                         
                                                                                                                                
SENATOR FRENCH objected for discussion purposes.                                                                                
                                                                                                                                
CO-CHAIR      MCGUIRE      explained       that    fundamentally         the   notion     is   that                             
nuclear      is  a   type    of   energy     production       that    may   be   beneficial       to                            
Alaska;      it    might     solve     problems       particularly         in    rural     Alaska.                              
She    said    it   was   left    it   out    of   the   original       legislation        because                              
it is controversial.                                                                                                            
                                                                                                                                
MR.    PAWLOWSKI        said     Section      4   provides       conforming        language        to                           
include      "special       nuclear       material       facility",        kind     of   grabbing                               
the    universe       of    facilities        on    page    1,    lines     16-17,      into     the                            
express provision in state law that says you have to go to NRC.                                                                 
                                                                                                                                
4:00:19 PM                                                                                                                    
SENATOR HUGGINS joined the committee.                                                                                           
                                                                                                                                
MR.     PAWLOWSKI        explained        that     Section       5   was     more     conforming                                
language       including       that     new    form    of   facility.        Section      6   deals                             
with    some    questionable         law   on   how    the    state    can    regulate      health                              
and    safety     on   nuclear      waste     disposal       facilities,        while     it   does                             
have    the   ability      to   regulate      on   the   economics       of   nuclear      energy.                              
Section      6   gives     the    state      and    the    legislature        the    ability       of                           
regulating the economics of nuclear energy.                                                                                     
                                                                                                                                
He    said      Section       7   changes       existing        statute       to    repeal       the                            
governor       from    issuing      a   permit     for    nuclear      facility      within      the                            
state;       it     would      be     NRC,     the      Department         of    Environmental                                  
Conservation         (DEC),     and    then    the    municipality         with    jurisdiction                                 
would     be  allowed      to   overrule      the    sighting      of   a  facility.       Section                              
15   is   a   revision      in   the    Power     Project      Loan    statutes       within     AEA                            
allowing nuclear projects to qualify. Right now they can't.                                                                     
                                                                                                                                
Section 22 is the Power Project Fund information.                                                                               
                                                                                                                                
4:02:34 PM                                                                                                                    
Section      27    is    in   the     definition        of   alternative         energy      as    it                           
relates        to      the      consideration            of      financing         for      energy                              
improvements.          So   when     banks     are    financing        energy      improvements                                 
they     have      to    look     at     alternative         energy      life-cycle         costs.                              
Current      law    would     not    allow     nuclear      to   be    considered        in   that.                             
So,   if   the    state     was   building      a   school     in   Galena     and    they    had   a                           
small     nuclear      reactor,       the    state     would     consider       what    the    long                             
term life-cycle costs of that energy system.                                                                                    
                                                                                                                                
On   page    4,   lines     9-11,    were     crossed     out    because      it   repealed      the                            
prohibition         against      the    transportation           of   nuclear       material       in                           
statue.      When    they    did   further      research,       they    found    that    language                               
wasn't     necessary       because      the   prohibition        was   on   the    transport       of                           
high     level     nuclear      waste      material       except     for    the     purposes       of                           
disposal      out    of   state.      Therefore,       the    existing      prohibition        made                             
sense      and    rather       than     repealing        it,     they     crossed       out    that                             
language.                                                                                                                       
                                                                                                                                
CO-CHAIR      MCGUIRE      said    this    should     be   a  Huggins      amendment       and   she                            
asked if he wanted to add anything to the discussion.                                                                           
                                                                                                                                
SENATOR      HUGGINS       said     there     was    discussion         about     the    approval                               
authority       and    the   attempt      he   is   making     is   to   depoliticize         that.                             
He   recalled      that    the    governor      doesn't     have    approval       authority       on                           
other energy projects.                                                                                                          
                                                                                                                                
MR.   PAWLOWSKI       said    the    governor      has   the    line    item    veto    authority                               
if   the    state     was   funding      projects.        He   said    it's    also     important                               
to   recognize       that    the   governor,       being    the    head    of  state,      and   the                            
DEC    being    tasked      with    permitting,        that    the    relationship         between                              
the department and the governor is fairly direct.                                                                               
                                                                                                                                
SENATOR      HUGGINS      said    the   governor       is   the   control      factor,      but    he                           
doesn't      have     the    final     approval       and    he   didn't      have     a   problem                              
with that.                                                                                                                      
                                                                                                                                
CO-CHAIR       WIELECHOWSKI          applauded        the     effort      in    bringing       this                             
issue     forward.      They     heard     a  lot    from    people      when    they    traveled                               
the    state     that    they     wanted     the    option      and    opportunity        to   talk                             
about     nuclear      energy     in   Alaska.      He   had   one    slight     philosophical                                  
difference        on   the    approval      issue     in   Section      7.   He   thought      this                             
was    a  major     policy     shift     in   moving     towards      nuclear     and    he   would                             
feel    more    comfortable        letting      the    governor      have    the    final     say   -                           
only    because      when    you    give    it   to    one   department,        the    DEC,    they                             
would     look    at    DEC    issues.      Whereas      the    governor      would      bring     in                           
other     departments         like    Public      Safety,      for    instance,        to   verify                              
that     this    couldn't       be   accessed,        or   Health      And   Social      Services                               
commissioners          and    staff     to    assess      whether      or    not    this     was    a                           
public health issue, or other departments like ADF&G.                                                                           
                                                                                                                                
SENATOR      HUGGINS      said     he   hoped     any    projects,        not    just    nuclear,                               
would      have     those      considerations           and     balances.        This      doesn't                              
change     the    fact    that    the   governor       has   a   chief    of   staff     that    has                            
all the agencies working through him to the governor.                                                                           
                                                                                                                                
CO-CHAIR      WIELECHOWSKI         asked    if   the    administration         has    a  position                               
on this issue.                                                                                                                  
                                                                                                                                
4:08:13 PM                                                                                                                    
CO-CHAIR MCGUIRE called an at ease from 4:08:13 to 4:08:25.                                                                     
                                                                                                                                
GENE    THERRIAULT,        Senior      Policy     Advisor,       In-state      Energy,      Office                              
of   the   Governor,       said    they    have    to   make    a  policy     call.    Right     now                            
if   the    requirement        is   that    the   governor       makes    the    decision,       all                            
the     departments         are     below      him;     so     he    would      be    soliciting                                
information        out   of   the    agencies      where    it   might     be   applicable.        If                           
they    put    the   responsibility          into    one    of   the   agencies,       they    have                             
to   decide     if    there    is    a  guarantee       that    that     agency     would     reach                             
across      to    another      and     bring     information         in.    He    mentioned        an                           
email     from    "geologic       folks"      saying     there     could     be   some     seismic                              
issues.      In    conversation         with    Senator       Huggins'       staff     it's    been                             
said      that     maybe      the     federal       process        reviews       all     of    that                             
adequately.                                                                                                                     
                                                                                                                                
He    said     if    they      give     authority        to    an    agency,       there      would                             
probably       be   some    language       either     in   statute      or    regulation       that                             
they    will    render     a  decision       in   consultation        with    another      agency.                              
It's     possible       that     some    valuable       information         to    the    decision                               
that is to be made could be lost otherwise.                                                                                     
                                                                                                                                
MR.    PAWLOWSKI       clarified        that    language       on   page     2,   lines     17-18,                              
directs      the    DEC   to    adopt    regulations         to   govern     the    universe       of                           
options to them in granting permits; it's very broad language.                                                                  
                                                                                                                                
CO-CHAIR         MCGUIRE        asked       him     to      comment        on     the      federal                              
regulations.                                                                                                                    
                                                                                                                                
MR. PAWLOWSKI said he wouldn't feel comfortable doing that.                                                                     
                                                                                                                                
CO-CHAIR       MCGUIRE       said      her    concern       is    if    a    governor       had     a                           
particular        opinion      about    nuclear,       that    could     somehow      infiltrate                                
the decision making process and be the preventative first step.                                                                 
                                                                                                                                
4:11:04 PM                                                                                                                    
SHARON     LONG,     aide    to   Senator      Huggins,      said    she    had   not    read    all                            
of   the    federal      regulations,         but    she    had    talked     to    someone      who                            
had    taken      a   nuclear      project      farther       than     anyone      else    had     in                           
Alaska.      He   said    the    NRC    has   control      over    all    health      and   safety                              
issues       -    the     seismic,       the     geologic,         the     air,     the     water.                              
According        to   the     legislature's         legal      advisors,       the     state     can                            
legislate       only    on   economic       issues     related      to   a  nuclear      project.                               
This    legislation        is   wide    open    for   the    state    to   adopt    regulations                                 
requiring        whatever       level      of    scrutiny       it    they     may    think      are                            
necessary       to   look     at   it.    The    State     of   Alaska     doesn't       have    any                            
nuclear      regulations        on    the    books.     Thirty-one        other     states     have                             
commercial       nuclear      industry      and    she   assumed      Alaska     wouldn't      have                             
to reinvent the wheel.                                                                                                          
                                                                                                                                
SENATOR      HUGGINS     said    it's    important       to   get   nuclear      on   the   books,                              
and    he    preferred        to   not     belabor      the     approval       or   disapproval                                 
part.     He  agreed     with    Senator      McGuire      on   the   political       piece,     but                            
politics       plays    in    about    everything        they    do.    He   didn't      think     it                           
was    that    huge    of   a  deal.     He   was   firmly     convinced       that    no   matter                              
who    was    governor      or    commissioners         that    the    NRC    will    be    in   the                            
driver's seat.                                                                                                                  
                                                                                                                                
CO-CHAIR       WIELECHOWSKI          said     he    thought      this     was     an    important                               
amendment       in   moving     Alaska     into     the   nuclear      age.    He   didn't     know                             
enough     about     nuclear     to   know    whether      the   NRC   would     do   enough     and                            
he   was   concerned       about     taking     away    an   extra    layer     of  protection.                                 
When      nuclear       goes      wrong,       it's      big.      He     would      feel      more                             
comfortable         in    having      the     governor       ultimately         approving        the                            
permit.                                                                                                                         
                                                                                                                                
CO-CHAIR      MCGUIRE      said,     "Depending       on   who    is   the    governor      at   the                            
time."                                                                                                                          
                                                                                                                                
CO-CHAIR       WIELECHOWSKI         said    you    can't     escape      politics.       Removing                               
Section 7 on page 2, lines 16-20, would alleviate his concerns.                                                                 
                                                                                                                                
CO-CHAIR       WIELECHOWSKI         moved      to   amend      Amendment       5   by    deleting                               
Section 7 on page 2, lines 16-20.                                                                                               
                                                                                                                                
CO-CHAIR MCGUIRE called an at ease from 4:17:31 to 4:18:03.                                                                     
                                                                                                                                
4:18:03 PM                                                                                                                    
SENATOR      HUGGINS      objected.       A   roll    call     vote    was    taken:     Senators                               
French     and    Wielechowski        voted     yea;    Senators      Huggins,      Wagoner      and                            
McGuire      voted     nay.    So   the    Amendment       1  to   Amendment        5  failed     to                            
pass.                                                                                                                           
                                                                                                                                
SENATOR FRENCH removed his objection to Amendment 5.                                                                            
                                                                                                                                
CO-CHAIR      MCGUIRE      found     no   further      objections       and    so   Amendment       5                           
was adopted.                                                                                                                    
                                                                                                                                
SENATOR HUGGINS moved conceptual Amendment 6 as follows:                                                                        
                                                                                                                                
On page 2, line 24 to insert "nuclear" after "including".                                                                       
                                                                                                                                
There were no objections and it was so ordered.                                                                                 
                                                                                                                                
CO-CHAIR       MCGUIRE      recapped      that    SB    220   had    6   amendments       and    set                            
it aside.                                                                                                                       
                                                                                                                                

Document Name Date/Time Subjects
SB 220 version K.pdf SRES 2/15/2010 3:30:00 PM
SRES 2/18/2010 3:30:00 PM
SRES 2/22/2010 3:30:00 PM
SRES 2/24/2010 3:30:00 PM
SB 220
Possible Amendment - 26-LS1197K.13.pdf SRES 2/24/2010 3:30:00 PM
Possible Amendment - 26-LS1197K.2 - Energy Efficiency.pdf SRES 2/24/2010 3:30:00 PM
Possible Amendment - 26-LS1197K.3.pdf SRES 2/24/2010 3:30:00 PM
Possible Amendment - 26-LS1197K.11 - Alternative Energy Conservation Loan Program 2.pdf SRES 2/24/2010 3:30:00 PM
Possible Amendment - 26-LS1197K.10.pdf SRES 2/24/2010 3:30:00 PM
Possible Amendment - Energy Policy_Nuclear.pdf SRES 2/24/2010 3:30:00 PM