Legislature(2009 - 2010)BARNES 124

02/05/2009 03:00 PM House ENERGY


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03:06:27 PM Start
03:07:31 PM Overview: Alaska Housing Finance Corporation Programs
04:45:54 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Alaska Housing Finance TELECONFERENCED
Corporation programs
Presentation by Brian Butcher & Dan
Fauske with AHFC
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                        February 5, 2009                                                                                        
                           3:06 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bryce Edgmon, Co-Chair                                                                                           
Representative Charisse Millett, Co-Chair                                                                                       
Representative Nancy Dahlstrom                                                                                                  
Representative Kyle Johansen                                                                                                    
Representative Jay Ramras                                                                                                       
Representative Pete Petersen                                                                                                    
Representative Chris Tuck                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                              
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                              
Representative Bob Buch                                                                                                         
Representative David Guttenberg                                                                                                 
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  ALASKA HOUSING FINANCE CORPORATION PROGRAMS                                                                          
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to report                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
DAN FAUSKE, Chief Executive Officer/Executive Director                                                                          
Alaska Housing Finance Corporation (AHFC)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the presentation by Alaska                                                               
Housing Finance Corporation (AHFC).                                                                                             
                                                                                                                                
CARY BOLLING, Energy Specialist                                                                                                 
Research Information Center                                                                                                     
Alaska Housing Finance Corporation (AHFC)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the presentation by Alaska                                                               
Housing Finance Corporation (AHFC).                                                                                             
                                                                                                                                
JOHN ANDERSON, Weatherization Officer                                                                                           
Research and Rural Development                                                                                                  
Alaska Housing Finance Corporation (AHFC)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Participated in the  presentation by Alaska                                                             
Housing Finance Corporation (AHFC).                                                                                             
                                                                                                                                
BRYAN BUTCHER, Director                                                                                                         
Governmental Relations & Public Affairs                                                                                         
Executive Office                                                                                                                
Alaska Housing Finance Corporation (AHFC)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Participated in the  presentation by Alaska                                                             
Housing Finance Corporation (AHFC).                                                                                             
                                                                                                                                
REPRESENTATIVE DAVID GUTTENBERG                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Asked questions during  the presentation by                                                             
Alaska Housing Finance Corporation (AHFC).                                                                                      
                                                                                                                                
MARQUAM GEORGE, Associate Professor                                                                                             
Construction Technology Career Education                                                                                        
University of Alaska Southeast                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented  a sample Alaska  Housing Finance                                                             
Corporation (AHFC) Home Energy Rating Certificate.                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:06:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  BRYCE  EDGMON called  the  House  Special Committee  on                                                             
Energy  meeting   to  order  at  [3:06]   p.m.    Representatives                                                               
Dahlstrom, Petersen,  Tuck, Millett,  and Edgmon were  present at                                                               
the call to  order.  Representatives Ramras  and Johansen arrived                                                               
as the meeting  was in progress.   Representatives Guttenberg and                                                               
Buch were also in attendance.                                                                                                   
                                                                                                                                
^OVERVIEW:  ALASKA HOUSING FINANCE CORPORATION PROGRAMS                                                                       
                                                                                                                                
CO-CHAIR EDGMON announced  that the only order  of business would                                                               
be a two-part presentation by  Alaska Housing Finance Corporation                                                               
(AHFC).   The first  part was an  overview of  the Weatherization                                                               
and  Home  Energy   Rebate  programs;  the  second   part  was  a                                                               
presentation by an energy rater.                                                                                                
                                                                                                                                
3:07:31 PM                                                                                                                    
                                                                                                                                
DAN  FAUSKE, Chief  Executive Officer/Executive  Director, Alaska                                                               
Housing  Finance  Corporation  (AHFC),  introduced  a  PowerPoint                                                               
presentation  on  the  Weatherization   and  Home  Energy  Rebate                                                               
programs.      Although   AHFC  has   been   funding   low-income                                                               
weatherization  programs with  federal  and AHFC  funds for  many                                                               
years, during  the last legislative  session the  corporation was                                                               
asked to redesign  the program using an  additional allocation of                                                               
$300 million and eliminating income restrictions.                                                                               
                                                                                                                                
3:10:05 PM                                                                                                                    
                                                                                                                                
CARY  BOLLING, Energy  Specialist,  Research Information  Center,                                                               
AHFC,  presented slide  1, titled  Overview,  that indicated  the                                                               
following appropriations:     $200 million   for a weatherization                                                               
program that is an income-based,  no-cost, existing program; $100                                                               
million for  a rebate  program for those  not qualifying  for the                                                               
weatherization  program; $60  million in  additional funding  for                                                               
the  rebate program  authorized  during  the legislative  special                                                               
session in  2008; and the  necessary training component  for both                                                               
programs.   Slide  2 indicated  the  amount of  funding that  was                                                               
allocated to  each region based  on its climate, fuel  costs, and                                                               
population.                                                                                                                     
                                                                                                                                
3:11:09 PM                                                                                                                    
                                                                                                                                
MR. FAUSKE  pointed out that AHFC  created the graph on  slide 3,                                                               
titled Rebate  & Weatherization Allocations, to  ensure that each                                                               
region is aware of the funds available only for that region.                                                                    
                                                                                                                                
3:11:52 PM                                                                                                                    
                                                                                                                                
MR. BOLLING continued to explain  that the programs were approved                                                               
in  April   2008,  and  by   using  emergency   regulations  AHFC                                                               
immediately  began   training  personnel.    The   programs  were                                                               
launched  one month  later and  in July  2008, there  were public                                                               
hearings and  the final regulations  were adopted.   Training and                                                               
the  "ramp-up"  of operations  continued  through  the summer  of                                                               
2008.                                                                                                                           
                                                                                                                                
3:12:14 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON recognized Representatives Buch and Guttenberg.                                                                 
                                                                                                                                
3:13:17 PM                                                                                                                    
                                                                                                                                
MR.  BOLLING presented  slide  6,  titled Weatherization  Program                                                               
Progress Report, and said that  the previous income-based program                                                               
weatherized  600   homes;  however,  the  current   program  will                                                               
weatherize 1,800  homes this year  and the number is  expected to                                                               
grow to 7,500  homes by the third year.   He continued to explain                                                               
that $30 million  is currently "on the  street" and approximately                                                               
$60 million  is projected for  next fiscal year;  furthermore, 56                                                               
communities  were served  this year  and  76 are  expected to  be                                                               
served next  year.  Slide  8, titled Program  Snapshot, indicated                                                               
that  improvements on  700 homes  were completed,  500 homes  are                                                               
near  completion, and  600 homes  are  being assessed  or are  in                                                               
early construction.  Slide 9  listed the statewide weatherization                                                               
providers:   Alaska  Community Development  Corporation, Interior                                                               
Weatherization,  Municipality   of  Anchorage,   Rural  Community                                                               
Action  Program, RuralCap-Juneau,  and Tanana  Chiefs Conference.                                                               
He noted that due to the  dramatic increase in funding, 15 Alaska                                                               
Housing   Authorities   are   also  helping   as   weatherization                                                               
providers.                                                                                                                      
                                                                                                                                
3:15:10 PM                                                                                                                    
                                                                                                                                
MR.  FAUST  observed  that  the  housing  authorities  have  been                                                               
encouraged  to form  partnerships  with  private contractors  and                                                               
public entities for the benefit of all.                                                                                         
                                                                                                                                
3:16:37 PM                                                                                                                    
                                                                                                                                
MR.  BOLLING  then  introduced  the  Home  Energy  Rating  Rebate                                                               
Program and  said that [the program]  is not based on  income and                                                               
requires  energy   ratings  before  and  after   the  recommended                                                               
improvements  are  made.   Slide  12,  titled Ratings  Processed,                                                               
showed that  8,000 ratings have  been completed; of  those, 5,681                                                               
have been processed for a committed  amount of $53.8 million.  Of                                                               
the  post-improvement  rebates, 329  have  been  paid out  at  an                                                               
average  of $5,907  each.   Mr. Bolling  opined that  the average                                                               
pay-out  amount  will  grow as  the  summer  construction  season                                                               
approaches.                                                                                                                     
                                                                                                                                
3:17:57 PM                                                                                                                    
                                                                                                                                
MR. FAUST reminded  the committee that AHFC has made  a pledge to                                                               
the  legislature and  the administration  that AHFC  will require                                                               
pre-   and  post-ratings   to  ensure   the   quality  of   work.                                                               
Accountability will complete AHFC's oversight of the program.                                                                   
                                                                                                                                
3:18:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EDGMON asked  whether the  completed applications  have                                                               
been broken down by region.                                                                                                     
                                                                                                                                
3:18:54 PM                                                                                                                    
                                                                                                                                
JOHN  ANDERSON,   Weatherization  Officer,  Research   and  Rural                                                               
Development,  AHFC, answered  that the  majority of  improvements                                                               
have been done in urban areas such as Anchorage and Fairbanks.                                                                  
                                                                                                                                
3:19:23 PM                                                                                                                    
                                                                                                                                
MR.  BOLLING added  that  162  "5 Star  Plus"  rebates have  been                                                               
funded  for  new   homes.    Speaking  on  the   topic  of  rater                                                               
availability,  Mr. Bolling  said when  the program  was initiated                                                               
there were  38 raters in the  state; presently there are  92, and                                                               
21 more are  in training status.  Moreover, AHFC  is committed to                                                               
pay travel expenses so roving  raters can serve small communities                                                               
and has centralized sign-up lists  from each region to create one                                                               
equitable wait-list for homeowners.                                                                                             
                                                                                                                                
3:21:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EDGMON observed  raters are  private entrepreneurs  who                                                               
are free to  charge whatever price they wish and  he has received                                                               
complaints about inequities.                                                                                                    
                                                                                                                                
3:21:45 PM                                                                                                                    
                                                                                                                                
BRYAN   BUTCHER,  Director,   Governmental  Relations   &  Public                                                               
Affairs,  Executive Office,  AHFC, agreed  that excess  fees were                                                               
charged;  in  fact,   that  was  one  of  the   reasons  for  the                                                               
centralized sign-up sheet.  The  centralized list enabled AHFC to                                                               
have  some control  and stopped  raters from  charging exorbitant                                                               
fees.                                                                                                                           
                                                                                                                                
3:23:39 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON,  in response to Representative  Petersen, said that                                                               
AHFC  is dispatching  from  500  to 800  names  per  week on  the                                                               
centralized list, although  he was unsure of the  waiting time in                                                               
each community.                                                                                                                 
                                                                                                                                
3:24:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAVID   GUTTENBERG,  Alaska   State  Legislature,                                                               
opined  that the  average  charge  for a  home  energy rating  is                                                               
higher than the reimbursement of $325.                                                                                          
                                                                                                                                
3:25:11 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON  said he  did not  know what  the average  charge is                                                               
because the database  is not yet complete.  The  raters have been                                                               
asked  for figures  to see  if an  increase in  the reimbursement                                                               
amount is justified.                                                                                                            
                                                                                                                                
3:25:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG said that he  paid $500.  He noted that                                                               
some of  the raters  prefer to advertise  in their  community and                                                               
maintain their own wait-lists.                                                                                                  
                                                                                                                                
3:27:02 PM                                                                                                                    
                                                                                                                                
MR. BUTCHER  explained that  the problems  in Fairbanks,  such as                                                               
duplicate lists, have been taken care  of.  At this time, because                                                               
the  price of  oil has  dropped, applications  in Fairbanks  have                                                               
slowed and the wait-list is short.                                                                                              
                                                                                                                                
3:28:12 PM                                                                                                                    
                                                                                                                                
MR.  BOLLING presented  slide 14  that showed  8,380 applications                                                               
are on  the statewide  waiting list  and that  6,441 applications                                                               
were  dispatched to  raters from  October  [2008] to  the end  of                                                               
January [2009].                                                                                                                 
                                                                                                                                
3:29:24 PM                                                                                                                    
                                                                                                                                
MR.  ANDERSON, in  response to  Co-Chair  Edgmon, responded  that                                                               
based  on  2000  census  data between  70,000  and  75,000  homes                                                               
statewide would be  eligible to participate in  the energy rebate                                                               
program and  140,000 homes  would be  eligible to  participate in                                                               
the weatherization program.                                                                                                     
                                                                                                                                
3:29:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   DAHLSTROM   assumed  that   the   aforementioned                                                               
estimate for Anchorage includes the Matanuska-Susitna Valley.                                                                   
                                                                                                                                
3:30:13 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON said no.                                                                                                           
                                                                                                                                
3:30:38 PM                                                                                                                    
                                                                                                                                
MR. BUTCHER  offered to provide  the figures for  every community                                                               
in the state.                                                                                                                   
                                                                                                                                
3:31:01 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON, in response  to Representative Dahlstrom, explained                                                               
that an applicant  is assigned a number on the  wait-list that is                                                               
their true placement on the list for their community.                                                                           
                                                                                                                                
3:31:42 PM                                                                                                                    
                                                                                                                                
MR.  BUTCHER added  that when  an applicant's  number is  zero it                                                               
means they are within two  weeks of receiving an appointment with                                                               
a rater.                                                                                                                        
                                                                                                                                
3:32:25 PM                                                                                                                    
                                                                                                                                
MR.   ANDERSON,   in   response   to   Representative   Petersen,                                                               
confirmed  that the  wait-list is  only  for applicants  awaiting                                                               
their first  rating.   Also, the AHFC  reimbursement is  $325 for                                                               
the [first] rating and $175 for the post-rating.                                                                                
                                                                                                                                
3:33:15 PM                                                                                                                    
                                                                                                                                
MR. BOLLING  presented slide 15  that indicated the  total amount                                                               
spent by  homeowners to date  was $2,841,226, the  average rebate                                                               
was  $5,942, and  the average  homeowner  investment was  $3,528.                                                               
Slide  16 indicated  that  the overall  energy  cost savings  per                                                               
household  was  $1,355  per year  and  carbon  dioxide  emissions                                                               
reductions averaged 12,228 pounds per  year per household.  Total                                                               
energy saved was 17.2 billion British thermal units (Btus).                                                                     
                                                                                                                                
3:34:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EDGMON  asked  whether  AHFC  was  in  the  process  of                                                               
establishing a higher number on the energy rating system.                                                                       
                                                                                                                                
3:35:08 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON  said yes.   Within  six months there  will be  a "6                                                               
Star Green Level."                                                                                                              
                                                                                                                                
3:35:49 PM                                                                                                                    
                                                                                                                                
MR.  ANDERSON,  in further  response,  stated  that the  proposed                                                               
[standards]  re-write  will  include  appliances  and  electrical                                                               
appliance components.                                                                                                           
                                                                                                                                
3:36:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG asked what can  be done at the national                                                               
level  to  require  manufacturers  to save  energy  by  designing                                                               
appliances that shut off.                                                                                                       
                                                                                                                                
3:36:31 PM                                                                                                                    
                                                                                                                                
MR. BOLLING advised  that there are national  standards; in fact,                                                               
the "Energy Star  Label" is a successful program  that has driven                                                               
the market toward more efficient appliances.                                                                                    
                                                                                                                                
3:37:27 PM                                                                                                                    
                                                                                                                                
MR.  BUTCHER,   Representative  Guttenberg,   and  Representative                                                               
Petersen related their personal experiences with water heaters.                                                                 
                                                                                                                                
3:39:18 PM                                                                                                                    
                                                                                                                                
MR.  BOLLING presented  slide 17  that displayed  on a  bar graph                                                               
allocations versus encumbrances by region.                                                                                      
                                                                                                                                
3:40:18 PM                                                                                                                    
                                                                                                                                
MR. BUTCHER, in response to  Co-Chair Edgmon, explained AHFC used                                                               
an equation whereby population, heating  degree days, and cost of                                                               
heat are factors; thus a  disproportionate share was allocated to                                                               
Fairbanks and rural  areas.  Although some regions  are not ready                                                               
to  utilize  the funds,  they  still  received their  allocation.                                                               
Furthermore,  the   additional  $60   million  allocation   is  a                                                               
contingency  fund  for  areas  such  as  Fairbanks,  Haines,  and                                                               
Wrangell.                                                                                                                       
3:42:08 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON asked  for the status of  the total appropriation                                                               
for these programs.                                                                                                             
                                                                                                                                
3:42:25 PM                                                                                                                    
                                                                                                                                
MR. BUTCHER said that approximately  $90 million is encumbered or                                                               
will  be shortly;  AHFC does  not  anticipate the  need for  more                                                               
funding for FY 2010.  At the end  of 2009 there will be data that                                                               
will reveal  the percentage of residents  completing improvements                                                               
and the total participation in the programs.                                                                                    
                                                                                                                                
3:43:33 PM                                                                                                                    
                                                                                                                                
MR.  BOLLING  spoke  of the  training  component  illustrated  on                                                               
slides  20-22.    Classes  were   increased  to  accommodate  for                                                               
weatherization  service  providers, housing  authorities,  energy                                                               
raters,  contractors, and  the  general public.    From April  to                                                               
December  2008,  approximately   121  professional  classes  were                                                               
offered to 2,615  students and 13 consumer classes  were held for                                                               
464 students.  These classes were  held in 14 areas of the state.                                                               
Training  Partners include:    Alaska  Building Science  Network,                                                               
Alaska Works,  Alaska Craftsman  Home Program,  Northern Building                                                               
Science  Group,   University  of  Alaska   Fairbanks  Cooperative                                                               
Extension, University Alaska  Southeast Building Science Program,                                                               
Wisdom  &  Associates,  Cold  Climate  Housing  Research  Center,                                                               
Opportunity Council, and Building Performance Institute.                                                                        
                                                                                                                                
3:46:18 PM                                                                                                                    
                                                                                                                                
MR.  BOLLING, in  response  to  Representative Dahlstrom,  stated                                                               
that the consumer  classes are on AHFC's website  and are offered                                                               
at no charge.                                                                                                                   
                                                                                                                                
3:46:45 PM                                                                                                                    
                                                                                                                                
MR.  FAUSKE  informed  the  committee   that  there  is  national                                                               
interest  in Alaska's  energy and  weatherization  programs.   In                                                               
fact,  information  on the  programs  will  be presented  to  the                                                               
secretary of  the [U. S. Department  of Energy].  He  related his                                                               
past experience  with the  Federal National  Mortgage Association                                                               
(FNMA)  and efforts  to provide  similar programs  on a  national                                                               
level.   Mr. Fauske predicted  that these programs will  become a                                                               
national  standard  due  to  their   success  saving  energy  and                                                               
creating  thousands of  jobs.   He  concluded that  AHFC was  not                                                               
asking for more  money at this time and the  program was in great                                                               
shape.                                                                                                                          
                                                                                                                                
3:51:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN  asked how  long before the  program runs                                                               
out of money.                                                                                                                   
                                                                                                                                
3:51:30 PM                                                                                                                    
                                                                                                                                
MR. BUTCHER expects  the Weatherization program to go  to the end                                                               
of 2010.   The Home Energy Rebate program  should have sufficient                                                               
funds  until FY  2010, although  the total  volume is  unknown at                                                               
this time.                                                                                                                      
                                                                                                                                
3:52:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAHLSTROM asked  whether  raters  are bonded  and                                                               
subject to security checks.                                                                                                     
                                                                                                                                
3:52:52 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON stated that raters  are required to provide criminal                                                               
background checks and  insurance, and to hold  a current business                                                               
license; however, bonding is not required.                                                                                      
                                                                                                                                
3:53:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAMRAS  opined that  AHFC was the  most successful                                                               
program ever  innovated in the  state and he listed  its benefits                                                               
to  Alaskans.   Turning  to  the  subject  of the  allocation  of                                                               
program  funds  by  region,  he   pointed  out  that  the  lowest                                                               
allocations  and  encumbrances  are  in  Northern,  Western,  and                                                               
Southwest Alaska.   These regions have the  most expensive energy                                                               
costs -  $7.79 per  gallon for  home heating oil  - but  have the                                                               
least  allocation.   He  asked  for a  program  snapshot to  show                                                               
energy savings  by region  and thereby take  degree days  and the                                                               
cost  of fuel  into consideration.    Also, he  pointed out  that                                                               
money goes farther in urban  areas, and asked whether the program                                                               
factors  in  geographic sensitivity  to  the  cost of  labor  and                                                               
materials.   Representative  Ramras surmised  that although  this                                                               
program was  not affected by  affluence, but only by  the efforts                                                               
of an  individual to  make improvements,  when looking  at [slide                                                               
17], it  was evident that  implementation of the program  was not                                                               
as successful in the areas of Alaska that are most in need.                                                                     
                                                                                                                                
3:59:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAMRAS   continued  to   compare  the   costs  of                                                               
utilities,  materials, transportation,  and labor  throughout the                                                               
Pacific Northwest.  He stressed  that a comparison of these costs                                                               
would be  very useful  information to  AHFC and  the legislature,                                                               
especially for future funding requests.                                                                                         
                                                                                                                                
4:00:42 PM                                                                                                                    
                                                                                                                                
MR. FAUST  pointed out that  AHFC expected the majority  of money                                                               
for the  rural areas would  be under the  Weatherization program,                                                               
not the  Rebate program.   The Weatherization program goes  up to                                                               
100 percent of [poverty level] income  and has a limit of $30,000                                                               
per home.   This data  is being  tracked closely and  agreed that                                                               
rebates are at  a lower percentage in rural areas.   He predicted                                                               
there  will be  a great  deal  of Weatherization  money spent  in                                                               
urban areas also.                                                                                                               
                                                                                                                                
4:01:32 PM                                                                                                                    
                                                                                                                                
MR. BUTCHER  assured the committee  everything asked for  will be                                                               
provided as  the databank increases.   The  information presented                                                               
is  but a  snapshot  of 200  homes; as  the  post-rating data  is                                                               
collected it will  be broken down by region,  community, and fuel                                                               
type.    Later  this  year,  or  certainly  by  next  legislation                                                               
session, AHFC will be able to  provide a detailed view on what is                                                               
happening all  over the  state.   Regarding the  discrepancies in                                                               
costs for  different areas, he  said that  for the last  20 years                                                               
the  Weatherization program  has broken  out the  distribution of                                                               
funds  to communities  on the  road system  from those  that only                                                               
have summer supplies  of fuel.  Furthermore,  the available funds                                                               
averaged $2,000 per  home as compared with $11,000  per home that                                                               
is now  available.   The final  data from  the first  season will                                                               
show whether funding  levels are appropriate; in  fact, there may                                                               
be the  need for  a third  category of  communities that  are not                                                               
urban but get fuel delivery year around.                                                                                        
                                                                                                                                
4:03:52 PM                                                                                                                    
                                                                                                                                
MR. FAUST added that the  Rebate program encourages homeowners to                                                               
make additional  [energy-saving and  weatherization] improvements                                                               
by offering loans of up to $30,000 to finish the job.                                                                           
                                                                                                                                
4:05:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  asked how the program  adjusts for the                                                               
regional differences in the cost of materials.                                                                                  
                                                                                                                                
4:06:17 PM                                                                                                                    
                                                                                                                                
MR. BUTCHER explained that the  post rating will include receipts                                                               
with all of the actual costs  of materials.  An applicant can not                                                               
go over  the limit, but  a house in  Bethel gets a  higher rebate                                                               
than a house in Anchorage because of the actual cost.                                                                           
                                                                                                                                
4:07:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   PETERSEN,  relating   the  comments   of  energy                                                               
experts, said  that the most  cost effective  way to help  in the                                                               
field of energy is conservation.                                                                                                
                                                                                                                                
4:08:09 PM                                                                                                                    
                                                                                                                                
MR.  BUTCHER  agreed.    He  said that  AHFC  is  hoping  that  a                                                               
reduction of  energy use  will not only  help the  homeowner, but                                                               
also  reduce pollution  [by reducing  carbon dioxide  emissions],                                                               
help the  community, and even  the utility  companies, especially                                                               
in rural Alaska.                                                                                                                
                                                                                                                                
4:09:53 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:09 p.m. to 4:15 p.m.                                                                       
                                                                                                                                
4:15:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON called the meeting back to order at 4:15 p.m.                                                                   
                                                                                                                                
4:15:39 PM                                                                                                                    
                                                                                                                                
MARQUAM  GEORGE,  Associate  Professor,  Construction  Technology                                                               
Career  Education, University  of Alaska  Southeast, demonstrated                                                               
the AkWarm software program that  is available for any individual                                                               
to download  from AHFC's website.   The homeowner can  then enter                                                               
statistics from  their home and  find details on the  effects and                                                               
costs of  energy improvements to  the dwelling.  This  document -                                                               
AkWarm  Energy  Efficiency  Improvement  Options -  is  also  the                                                               
program used by an official energy rater when rating a home.                                                                    
                                                                                                                                
4:16:24 PM                                                                                                                    
                                                                                                                                
MR. GEORGE  displayed a sample rating  on a home in  Juneau.  The                                                               
database allows the homeowner, or  energy rater, to customize the                                                               
report  for  the  location  of the  dwelling  and  then  collects                                                               
information specific  to the home  such as the  ventilation rate,                                                               
number of occupants,  type of building, age,  number of bedrooms,                                                               
square  footage,  type of  garage,  and  outside walls  that  are                                                               
exposed to  weather.  During  a home  energy audit, a  rater will                                                               
ask the  owner for permission  to share previous energy  costs so                                                               
this information can be added to  the AkWarm database.  The rater                                                               
will also note the type of  appliances and equipment in the house                                                               
and will  look for safety  issues.   Mr. George said  that raters                                                               
want a member of the household  on site to point out problems and                                                               
complete the  picture on  how the house  "operates."   The rating                                                               
takes three to  five hours, but the [heat loss]  testing is quick                                                               
and he encourages the homeowner to  observe the fan and "feel the                                                               
air leakage  and the defects  that are occurring in  their home."                                                               
After the energy rating report  is received homeowners often make                                                               
several calls with questions.                                                                                                   
                                                                                                                                
4:23:00 PM                                                                                                                    
                                                                                                                                
MR. GEORGE continued to explain  the details on the sample report                                                               
such as  type and quality of  the foundation, type of  walls, and                                                               
whether the basement is below or  above grade.  He noted that the                                                               
sample house  has no  insulation in  the walls so  it is  given a                                                               
rating of R-1, which is almost equal  to "dead air."  A rater may                                                               
need to  make an  educated assumption to  complete the  rating of                                                               
unseen materials.                                                                                                               
                                                                                                                                
4:25:16 PM                                                                                                                    
                                                                                                                                
MR.  GEORGE, responding  to Representative  Guttenberg, explained                                                               
how to use  the database.  He then continued  to describe further                                                               
details  of the  sample home  and demonstrated  how the  computer                                                               
program, as he chose improvement  options, changed the rating for                                                               
the home.   It  is very  important for  the rater  to communicate                                                               
with the homeowner  on what can be accomplished for  the home, he                                                               
said.                                                                                                                           
                                                                                                                                
4:29:05 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON  surmised this information  encourages homeowners                                                               
to decide to make improvements beyond the amount of the rebate.                                                                 
                                                                                                                                
4:29:31 PM                                                                                                                    
                                                                                                                                
MR. GEORGE  then described  the air leakage  test for  the sample                                                               
house with and without the garage.                                                                                              
                                                                                                                                
4:30:26 PM                                                                                                                    
                                                                                                                                
MR. BOLLING clarified that the fan  used for the test is a device                                                               
called  a blower  door and  it measures  the air  leakage of  the                                                               
house.                                                                                                                          
                                                                                                                                
4:30:49 PM                                                                                                                    
                                                                                                                                
MR. GEORGE  noted that the air  leakage test will tell  the rater                                                               
what amount of  the house can never be closed  - this is referred                                                               
to  as "the  hole in  the house"  - and  determines the  pressure                                                               
differential between inside and outside measured in pascals.                                                                    
                                                                                                                                
4:31:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  asked  how  the space  was  sealed  off  to                                                               
measure the pressure from the inside to the outside.                                                                            
                                                                                                                                
4:31:49 PM                                                                                                                    
                                                                                                                                
MR.  GEORGE explained  that  the fan  fits to  the  door with  an                                                               
adjustable frame  and tubing system.   He noted that a  rater can                                                               
determine the  efficiency of the home's  appliances by contacting                                                               
the Gas  Appliance Manufacturers Association (GAMA).   Mr. George                                                               
continued to  point out the  computer program's ability  to allow                                                               
the rater  to select various heating  systems, thermostats, water                                                               
heaters, and appliances.                                                                                                        
                                                                                                                                
4:34:30 PM                                                                                                                    
                                                                                                                                
MR.  GEORGE,  in  response   to  Representative  Tuck,  described                                                               
various  water heating  systems.   He continued  his presentation                                                               
and said that  the improvements recommended for  the sample house                                                               
are  estimated to  cost $22,000  and would  result in  first-year                                                               
savings of $9,800.   The next display was  the Retro-fit Reporter                                                               
that gives the homeowner detailed  information on the recommended                                                               
improvements.  Mr. George concluded  his presentation with slides                                                               
that described  the recommended improvements  for a  median house                                                               
in Juneau.                                                                                                                      
                                                                                                                                
4:42:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EDGMON  thanked  the  presenter  for  his  enlightening                                                               
presentation of a beneficial and educational tool.                                                                              
                                                                                                                                
4:44:08 PM                                                                                                                    
                                                                                                                                
MR. BOLLING reminded  the committee that the  computer program is                                                               
available  to all  and is  accompanied  by a  home energy  rebate                                                               
consumer guide to help citizens understand the applications.                                                                    
                                                                                                                                
4:44:50 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT  announced that  there will  be a  joint meeting                                                               
with the Senate Special Committee on Energy on 2/10/09.                                                                         
                                                                                                                                
4:45:54 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee on Energy meeting was adjourned at 4:45 p.m.                                                                  
                                                                                                                                

Document Name Date/Time Subjects
AHFC Energy Cmte Presentation 0205.pdf HENE 2/5/2009 3:00:00 PM