02/11/2013 07:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| HB35 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 35 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
February 11, 2013
7:01 p.m.
MEMBERS PRESENT
Representative Doug Isaacson, Co-Chair
Representative Charisse Millett, Co-Chair
Representative Neal Foster
Representative Pete Higgins
Representative Shelley Hughes
Representative Andy Josephson
MEMBERS ABSENT
Representative Benjamin Nageak
COMMITTEE CALENDAR
HOUSE BILL NO. 35
"An Act creating a low-interest loan program for homeowners who
improve or replace their home heating systems; and providing for
an effective date."
- MOVED HB 35 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 35
SHORT TITLE: HOME HEATING CONVERSION LOANS
SPONSOR(s): REPRESENTATIVE(s) T.WILSON, THOMPSON, HIGGINS,
ISAACSON, KREISS-TOMKINS
01/16/13 (H) PREFILE RELEASED 1/7/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) ENE, FIN
02/11/13 (H) ENE AT 7:00 PM CAPITOL 106
WITNESS REGISTER
REPRESENTATIVE TAMMIE WILSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking as a joint prime sponsor,
introduced HB 35.
BRANDON BREFCZYNSKI, Staff
Representative Tammie Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered a question during the hearing on
HB 35.
DAN FAUSKE, CEO/Executive Director
Alaska Housing Finance Corporation (AHFC)
Department of Revenue (DOR)
Anchorage, Alaska
POSITION STATEMENT: Answered a question during the hearing on
HB 35.
ACTION NARRATIVE
7:01:01 PM
CO-CHAIR DOUG ISAACSON called the House Special Committee on
Energy meeting to order at 7:01 p.m. Representatives Higgins,
Josephson, Millett, and Isaacson were present at the call to
order. Representatives Foster and Hughes arrived as the meeting
was in progress.
HB 35-HOME HEATING CONVERSION LOANS
7:01:42 PM
CO-CHAIR ISAACSON announced that the only order of business
would be HOUSE BILL NO. 35, "An Act creating a low-interest loan
program for homeowners who improve or replace their home heating
systems; and providing for an effective date."
7:02:01 PM
REPRESENTATIVE TAMMIE WILSON, Alaska State Legislature, informed
the committee HB 35 authorizes a loan program for loans up to
$15,000 through the Alaska Housing Finance Corporation (AHFC) to
upgrade to a more efficient "heating system." A heating system
includes the system, labor, and the charge for the required
inspection of the existing heating system by an energy rater or
a mechanical contractor. The inspector will write a report to
the homeowner stating what savings may be expected with a new
heating system. A qualified home is an owner-occupied home -
single family dwelling or duplex. If qualified for this
program, the homeowner can still participate in AHFC's home
energy rebate or weatherization program. Representative T.
Wilson expressed her hope that natural gas will soon be
available in Fairbanks, but other residents of the state have a
variety of heating systems that can be more energy efficient.
There is a zero fiscal note attached to the bill as there is no
funding authorized at this time.
7:04:32 PM
CO-CHAIR MILLETT advised that Representative T. Wilson has
letters of support from the Fairbanks North Star Borough (FNSB),
Aurora Energy Services LLC, the City of Fairbanks, and Southeast
Conference. Furthermore, AHFC has no problem with this
legislation.
REPRESENTATIVE T. WILSON confirmed that the sponsors of the bill
worked very closely with AHFC to put "all the right pieces in
all the right places."
7:05:18 PM
REPRESENTATIVE JOSEPHSON expressed his concern that a homeowner
may convert from a fuel-oil system to a more efficient fuel-oil
system and still not be in a better position to utilize natural
gas.
REPRESENTATIVE T. WILSON agreed that a loan can be used to
convert to a more efficient oil furnace; in fact, converting
from a furnace installed before 1990 may save 25 percent to 50
percent of oil consumption, and this would be helpful in many
areas of FNSB until gas is available. The energy rater will
advise the homeowner about the expected savings. Furthermore,
she has been advised that newer oil furnaces can easily be
converted to gas.
CO-CHAIR ISAACSON understood this loan is only available once.
REPRESENTATIVE T. WILSON agreed, and added that through the
rebate program a homeowner can also apply for a loan up to
$30,000 at 3.5 percent interest. She opined this program was
not being used to change out furnaces because "most of it was
not paid back and it ended up being a pretty major cost and we
saw a great need in this."
REPRESENTATIVE JOSEPHSON asked about the funding and how many
loans are anticipated to be issued.
REPRESENTATIVE T. WILSON explained that the number of loans
would depend on the amount of funding secured; following that,
the funds will revolve as loans are repaid. She pointed out
that some homeowners may apply for loans under the maximum of
$15,000.
REPRESENTATIVE JOSEPHSON observed the bill repeals AS 46.11.050
(b), which applies to the financing of energy efficient homes
and buildings and the requirement of estimated heating and
lighting costs by an audit.
7:09:02 PM
BRANDON BREFCZYNSKI, Staff, Representative Tammie Wilson, Alaska
State Legislature, explained that the repeal of AS 46.11.050(b)
exempts applicants from the requirement of an energy audit
because the loan program proposed by HB 35 only requires a brief
inspection of the heating unit.
REPRESENTATIVE HUGHES referred to the existing $30,000 loan at 3
percent available through the rebate program. She asked why the
proposed loan program is needed in addition to the existing one.
REPRESENTATIVE T. WILSON responded that the existing loan
program requires a full [energy audit] inspection. The energy
audit may not identify a heating system improvement - for
example, converting a heating system from oil to gas - as a
qualified cost, but that improvement would qualify under the
proposed loan program. Also, the proposed program is available
to those who have already used the rebate program, but did not
improve their heating system because the change in efficiency
was not sufficient to qualify.
REPRESENTATIVE HUGHES asked whether an applicant could qualify
for the $30,000 loan and the proposed $15,000 loan concurrently.
In addition, she asked how an applicant qualifies for the loan.
REPRESENTATIVE T. WILSON deferred to AHFC.
7:11:48 PM
DAN FAUSKE, CEO/Executive Director, AHFC, Department of Revenue
(DOR), advised that an applicant must apply through an AHFC
approved lender. The proposed loan program is funded by a
general fund (GF) contribution and is a 1 percent loan to
qualified individuals.
CO-CHAIR MILLETT clarified that this is a revolving loan fund
that is replenished by the repayment of loans once it is funded
through the GF.
REPRESENTATIVE T. WILSON said yes.
CO-CHAIR ISAACSON asked for the purpose of the $15,000 limit as
some clean-burning coal systems cost up to $45,000.
REPRESENTATIVE T. WILSON stated that a variety of providers
estimated that $15,000 would take care of most needs.
REPRESENTATIVE HIGGINS relayed that the price of furnaces range
from about $7,000 to $12,000. He expressed his support of the
program.
7:15:06 PM
CO-CHAIR ISAACSON opened public testimony. Seeing or hearing
none, public testimony was closed.
7:15:43 PM
REPRESENTATIVE JOSEPHSON referred to the statistics on [the cost
of] thermal heating in the Interior and urged for remedies to
the high rates.
7:16:27 PM
CO-CHAIR MILLETT moved to report HB 35 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HB 35 was reported out of the House
Special Committee on Energy with individual recommendations and
the accompanying fiscal notes.
7:16:58 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 7:16 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB35 Fiscal Note.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| Energy Committee Agenda.pdf |
HENE 2/11/2013 7:00:00 PM |
|
| HB 35_Sponsor_Statement.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35_Oil_Prices.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35_Fuel_Comparison.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35_Cost_of_Living.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35_Estimated_Savings.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35_AFUE.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35_Sierra_Research_Memo.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| Mayor Cleworth.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35_Aurora_Energy_Support.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35 supp letter FNSB.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35 supp letter Southeast Conference.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |
| HB 35 Supp Letter ACoA.pdf |
HENE 2/11/2013 7:00:00 PM |
HB 35 |