Legislature(2013 - 2014)BARNES 124

03/20/2013 08:00 AM House ENERGY


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08:04:46 AM Start
08:05:49 AM Overview(s): Energy Wise Program
09:26:29 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Energy Wise Program TELECONFERENCED
by Sarah Scanlan, Deputy Director & Ellen
Kazary, Development Director, RurAL CAP
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                         March 20, 2013                                                                                         
                           8:04 a.m.                                                                                            
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Doug Isaacson, Co-Chair                                                                                          
Representative Neal Foster                                                                                                      
Representative Pete Higgins                                                                                                     
Representative Shelley Hughes                                                                                                   
Representative Benjamin Nageak                                                                                                  
Representative Andy Josephson                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Charisse Millett, Co-Chair                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW(S): ENERGY WISE PROGRAM                                                                                                
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SARAH SCANLAN, Deputy Director                                                                                                  
Rural Alaska Community Action Program, Inc. (RurAL CAP)                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided a PowerPoint presentation                                                                       
entitled, "Rural Alaska Community Action Program, Inc. Energy                                                                   
Programs:  Designed to Meet the Needs of Alaskans."                                                                             
                                                                                                                                
ELLEN KAZARY, Development Director                                                                                              
Rural Alaska Community Action Program, Inc. (RurAL CAP)                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the PowerPoint presentation                                                              
entitled, "Rural Alaska Community Action Program, Inc. Energy                                                                   
Programs:  Designed to Meet the Needs of Alaskans."                                                                             
                                                                                                                                
TOMMY BALLOT SR.                                                                                                                
Selawik, Alaska                                                                                                                 
POSITION  STATEMENT:   Testified in  support of  the Energy  Wise                                                             
Program during the presentation  by Rural Alaska Community Action                                                               
Program, Inc.                                                                                                                   
                                                                                                                                
KIRK OVIOK JR.                                                                                                                  
Selawik, Alaska                                                                                                                 
POSITION STATEMENT:   Testified in support  of the weatherization                                                             
program during the presentation  by Rural Alaska Community Action                                                               
Program, Inc.                                                                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:04:46 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  DOUG ISAACSON  called  the House  Special Committee  on                                                             
Energy meeting  to order  at 8:04  a.m.   Representatives Foster,                                                               
Higgins, Hughes, Nageak, Josephson,  and Isaacson were present at                                                               
the call to order.                                                                                                              
                                                                                                                                
^OVERVIEW(S): ENERGY WISE PROGRAM                                                                                               
                OVERVIEW(S): ENERGY WISE PROGRAM                                                                            
                                                                                                                              
8:05:49 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  ISAACSON  announced that  the  only  order of  business                                                               
would  be  an overview  of  energy  programs presented  by  Rural                                                               
Alaska Community Action Program, Inc. (RurAL CAP).                                                                              
                                                                                                                                
8:06:03 AM                                                                                                                    
                                                                                                                                
SARAH  SCANLAN, Deputy  Director, Rural  Alaska Community  Action                                                               
Program, Inc.  (RurAL CAP), informed  the committee RurAL  CAP is                                                               
working  statewide to  reduce  the burden  of  energy issues  for                                                               
residents of the  state and seeks capital funds in  the amount of                                                               
$1.6 million which  will be matched by private  and other sources                                                               
of funds.  RurAl CAP is  involved in many areas such as childhood                                                               
development and education,  self-help, weatherization, affordable                                                               
housing,  energy programs,  and  solid-waste management  programs                                                               
and employs over 1,000 residents  in 81 communities [slides 2 and                                                               
3].  The economic impact of  RurAL CAP is further enhanced by its                                                               
energy programs that are designed  to be sustainable over time at                                                               
low cost to the state.                                                                                                          
                                                                                                                                
8:09:35 AM                                                                                                                    
                                                                                                                                
ELLEN  KAZARY,  Development   Director,  Rural  Alaska  Community                                                               
Action  Program,  Inc.  (RurAL  CAP), informed  the  committee  a                                                               
survey of participants  at the 2012 Alaska  Federation of Natives                                                               
(AFN) convention showed that energy is  the top need in rural and                                                               
urban Alaska and has been for a  long time [slides 4 and 5].  The                                                               
Alaska   Housing  Finance   Corporation  (AHFC),   Department  of                                                               
Revenue,  estimates annual  average household  fuel and  electric                                                               
costs are  a huge portion  of income  in every region  [slide 6].                                                               
She advised  the question remains  as to whether  residents "heat                                                               
or  eat" even  though Alaska  has the  resources to  address this                                                               
problem.   In fact, for  the low income population,  energy costs                                                               
can  be  40 percent  to  50  percent  of their  household  income                                                               
[slides  6 and  7].    RurAL CAP  is  the largest  weatherization                                                               
service provider in  the state and will serve about  830 homes in                                                               
the coming  year [slides  8 and 9].   The  weatherization program                                                               
looks  at  the  whole  home including  insulation,  windows,  and                                                               
construction work [slide 10].   The application is a simple four-                                                               
step process beginning with a  home assessment and weatherization                                                               
work  by  local  crews.   Typical  weatherization  work  includes                                                               
ventilation,   safety,  windows,   insulation,  completion,   and                                                               
follow-up visits for quality control  [slides 11-17].  During the                                                               
past  four   to  five   years,  about   8,500  homes   have  been                                                               
weatherized; however,  this year's  governor's budget  request of                                                               
$60  million  for  the weatherization  program  and  home  rebate                                                               
program  will result  in a  reduction  to about  one-half of  the                                                               
current level.                                                                                                                  
                                                                                                                                
8:14:52 AM                                                                                                                    
                                                                                                                                
MS.  KAZARY,  in  response to  Representative  Hughes,  said  the                                                               
governor's  budget   request  was  about  $60   million  for  the                                                               
weatherization  and  home  rebate  programs  and  AHFC  requested                                                               
$101.5 million.                                                                                                                 
                                                                                                                                
CO-CHAIR  ISAACSON said  many homes  have  been weatherized,  but                                                               
many remain to be done and  surmised that new homes are not being                                                               
built to proper standards.   Not providing economic opportunities                                                               
by developing roads and resources is perpetuating poverty.                                                                      
                                                                                                                                
MS. KAZARY agreed there is  an ongoing energy need throughout the                                                               
state and  weatherization is part  of the solution.   Since 2008,                                                               
about 8,500  homes have been  weatherized and she  estimated that                                                               
there are about 29,000 households  in rural Alaska in addition to                                                               
income-eligible households  in Fairbanks, Juneau,  and Anchorage.                                                               
Communities  are eligible  for weatherization  services every  10                                                               
years  because it  is an  ongoing need,  and that  is one  of the                                                               
reasons that the Energy Wise  Program works with residents on how                                                               
to  maintain  and  preserve their  home  and  its  weatherization                                                               
improvements.                                                                                                                   
                                                                                                                                
8:18:53 AM                                                                                                                    
                                                                                                                                
MS. SCANLAN said it is hard  to provide equity and to balance the                                                               
benefits from large energy projects  - such as the Susitna-Watana                                                               
Hydro project - with benefits for  Alaskans who choose to live in                                                               
rural  areas.   All are  Alaskans and  are doing  their part  for                                                               
economic  and  resource   development,  including  Alaska  Native                                                               
Claims Settlement  Act (ANCSA) shareholders.   Ms.  Scanlan urged                                                               
the committee to think deeply about  how to work together for the                                                               
benefit  of  everyone.   As  a  provider,  RurAL CAP  will  share                                                               
resources and  leverage funds for programs  that contain elements                                                               
of self-sufficiency and education for its beneficiaries.                                                                        
                                                                                                                                
REPRESENTATIVE HUGHES  asked how many homes  the proposed funding                                                               
amounts could weatherize, and whether  federal or other funds are                                                               
available.                                                                                                                      
                                                                                                                                
8:22:58 AM                                                                                                                    
                                                                                                                                
MS.  KAZARY  advised  that  U.S.  Department  of  Energy  (USDOE)                                                               
funding to  RurAL CAP  is very low  for weatherization,  and past                                                               
state participation in weatherization  has been added to American                                                               
Recovery and  Reinvestment Act of  2009 (AARA) funds.   This year                                                               
is the  first year that  all of the  AARA funds have  been spent.                                                               
Overall, about  $100 million has been  invested in weatherization                                                               
and rebate programs over the last few years.                                                                                    
                                                                                                                                
REPRESENTATIVE NAGEAK disclosed  he is a past  president of RurAL                                                               
CAP and  currently serves on the  board of directors.   RurAL CAP                                                               
works hard to ease life  in the villages through several programs                                                               
and  its subsidiary,  Rural  Energy Enterprises.    He urged  the                                                               
state  to partner  with  tribes because  more  projects would  be                                                               
completed using the tribes' access  to federal funds.  The tribal                                                               
village  government  in  the  North Slope  has  been  working  on                                                               
weatherization  projects   for  many  years,  and   other  tribal                                                               
governments are willing to help solve problems.                                                                                 
                                                                                                                                
8:28:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIGGINS understood  that  AHFC  awards grants  to                                                               
RurAL CAP  so that  it can provide  weatherization services.   He                                                               
asked  how RurAL  CAP will  utilize its  capital request  of $1.6                                                               
million.                                                                                                                        
                                                                                                                                
MS.  KAZARY explained  that RurAL  CAP administers  two different                                                               
energy  programs,  one of  which  is  the weatherization  program                                                               
funded  through AHFC.   The  Energy  Wise Program  is more  about                                                               
education, efficiency,  and conservation within the  home, and is                                                               
supported by the $1.6 million request for funds.                                                                                
                                                                                                                                
REPRESENTATIVE   FOSTER  asked   how   much   was  received   for                                                               
weatherization last year.                                                                                                       
                                                                                                                                
MS. KAZARY  estimated over  1,000 homes  were completed  with $15                                                               
million.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  FOSTER surmised  the grant  money from  AHFC must                                                               
comply with  federal income  eligibility guidelines,  which allow                                                               
different levels of  income for rural and urban  communities.  He                                                               
asked for suggestions on what  the legislature might do to adjust                                                               
for  the difference  in the  cost of  living in  rural and  urban                                                               
areas.                                                                                                                          
                                                                                                                                
8:32:14 AM                                                                                                                    
                                                                                                                                
MS.  KAZARY   confirmed  that  urban  and   rural  residents  are                                                               
constrained to  follow income  eligibility guidelines  to receive                                                               
and use funding for weatherization.   She observed there are many                                                               
middle   income    homeowners   who   are   not    eligible   for                                                               
weatherization, but still struggle  to pay for home improvements.                                                               
This  is more  common in  rural Alaska  where building  costs are                                                               
very  high.    Alaska  Housing Finance  Corporation  has  a  very                                                               
popular   rebate  program   for  homeowners   who  can   pay  for                                                               
improvements and  wait for  a refund;  however, in  rural Alaska,                                                               
shipping supplies adds  to the cost and the  rebate program fails                                                               
middle income residents who live there.                                                                                         
                                                                                                                                
CO-CHAIR ISAACSON suggested the use  of a voucher for the upfront                                                               
expenses and  then the portion  paid by  the state would  be paid                                                               
directly to the vendor.                                                                                                         
                                                                                                                                
MS.  KAZARY  said  RurAL  CAP   considered  this  option  in  its                                                               
partnership with  NANA Regional Corporation Inc.  (NANA) to bring                                                               
the Energy  Wise Program to their  region.  She pointed  out that                                                               
RurAL CAP  does not  manage the rebate  program, but  this change                                                               
could make the program more accessible.                                                                                         
                                                                                                                                
CO-CHAIR  ISAACSON asked  whether the  legislature or  the agency                                                               
would make this change.                                                                                                         
                                                                                                                                
MS. KAZARY was unsure.                                                                                                          
                                                                                                                                
CO-CHAIR ISAACSON  requested RurAL CAP submit  a written response                                                               
on this option.                                                                                                                 
                                                                                                                                
8:36:03 AM                                                                                                                    
                                                                                                                                
MS.  SCANLAN  spoke  in  support  of  a  change  to  enable  more                                                               
participation in the rebate program.                                                                                            
                                                                                                                                
MS.  KAZARY turned  attention to  the  Energy Wise  Program.   In                                                               
order to  stretch resources  and meet the  needs of  more people,                                                               
RurAL CAP developed  its Energy Wise Program about  10 years ago.                                                               
The program  seeks to provide energy  efficiency and conservation                                                               
education, and  energy improvements  in homes.   The goal  of the                                                               
program is  to work with  local communities and help  relieve the                                                               
burden of high  energy costs [slide 19].  To  develop the program                                                               
RurAL  CAP employees  first asked  residents what  would be  most                                                               
helpful.  Time  was spent in homes with a  kilowatt meter to test                                                               
appliances  and identify  the areas  of high  energy consumption.                                                               
From  these  experiences,  the  program  was  developed  to  make                                                               
individualized assessments  and lower individuals'  energy costs.                                                               
In  2009, RurAL  CAP piloted  the program  which was  designed to                                                               
reduce  energy consumption  and use  local labor  to do  the work                                                               
[slide  20].   Since  2010,  the Energy  Wise  Program served  22                                                               
communities,  benefitted 2,000  households with  lasting results,                                                               
and trained and employed 240  rural Alaskans [slide 21].  Program                                                               
performance  has  been  proven  by the  Alaska  Energy  Authority                                                               
(AEA), Department of Commerce,  Community & Economic Development,                                                               
energy  efficiency working  group;  in fact,  AEA identified  the                                                               
Energy  Wise  project as  a  program  that should  be  replicated                                                               
around  the state.   Many  other organizations  around the  state                                                               
have recognized  that this program  is working, and also  that it                                                               
is a  collaborative effort  with state  and federal  partners and                                                               
with local community organizations  and utilities [slides 21-23].                                                               
Ms.   Kazary  advised   that  the   program   does  not   replace                                                               
weatherization,  but  complements   weatherization  by  educating                                                               
residents on how to maintain  the improvements to their homes and                                                               
how to  access other programs  [slide 24].   The program  is also                                                               
effective  because it  hires, trains,  and  certifies local  crew                                                               
members;  in  fact,  crews can  receive  technical  certification                                                               
through  the  Department of  Labor  &  Workforce Development  for                                                               
future  employment  in  weatherization,  construction  work,  and                                                               
first aid  training [slides 25  and 26].   The program  has three                                                               
parts,  beginning with  an  energy fair  in  the community  where                                                               
residents sign up  for a home visit [slide 28].   During the home                                                               
visit and  assessment, crews  spend a  day in  the home  with the                                                               
residents looking at electric  bills, electronics and appliances,                                                               
and  installing  $300  of  energy  efficiency  supplies  such  as                                                               
compact fluorescent lights and water  heater blankets [slides 29-                                                               
32].  The  final part of the  program is that after  three to six                                                               
months  crews return  to the  home  for follow  up education,  to                                                               
answer questions, and take a survey [slide 33].                                                                                 
                                                                                                                                
8:45:01 AM                                                                                                                    
                                                                                                                                
MS.  KAZARY provided  a budget  breakdown, estimating  a cost  of                                                               
$2,000  per household  for the  Energy  Wise Program.   About  50                                                               
percent  of  that cost  is  attributed  to local  employment  and                                                               
training, 25  percent is for  supplies, and about 27  percent for                                                               
management  of  the program  [slide  34].    In 2010,  120  rural                                                               
Alaskans were  trained and  employed and  sustained a  90 percent                                                               
rate of retention.                                                                                                              
                                                                                                                                
CO-CHAIR  ISAACSON asked  about the  procurement procedures  that                                                               
determine the suppliers of the products used.                                                                                   
                                                                                                                                
MS. KAZARY explained  that RurAL CAP's total budget  is about $40                                                               
million  per year  thus it  must follow  very strict  procurement                                                               
policies.   There is a bid  process for all of  the supplies that                                                               
are purchased  to ensure the  best prices and availability.   For                                                               
the Energy Wise Program, the lowest  cost bid is chosen for every                                                               
item.                                                                                                                           
                                                                                                                                
CO-CHAIR ISAACSON asked how RurAL CAP advertises for bids.                                                                      
                                                                                                                                
MS. KAZARY said  federal policy mandates that if  supplies from a                                                               
single vendor are over $100,000,  it is a closed bidding process.                                                               
The purchasing department advertises, and vendors submit bids.                                                                  
                                                                                                                                
CO-CHAIR  ISAACSON  observed  that   purchases  of  supplies  can                                                               
support not  only Anchorage, but suppliers  throughout the state.                                                               
Purchasing supplies locally may  cut hidden transportation costs,                                                               
and  he asked  whether any  products are  purchased in  Fairbanks                                                               
since energy efficiency equipment is available there.                                                                           
                                                                                                                                
MS.  KAZARY assured  the  committee  RurAL CAP  is  very good  at                                                               
ensuring the  lowest cost of  products by  consolidating shipping                                                               
and storage.   For  the Energy  Wise Program  RurAL CAP  has been                                                               
working in the  NANA region and supplies have  not been purchased                                                               
in Fairbanks; however, if working  in communities near Fairbanks,                                                               
RurAL CAP  will look at  the most  effective shipping.   In fact,                                                               
RurAL CAP  has a  small warehouse in  Anchorage and  would rather                                                               
have  shipments drop-shipped  directly  out.   In Kotzebue,  some                                                               
supplies  are  available,  and   local  purchases  are  made  for                                                               
immediate needs.                                                                                                                
                                                                                                                                
8:49:55 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ISAACSON  stated that local  vendors need to  know about                                                               
the  bidding process  in  order to  build  up regional  economies                                                               
throughout the state.                                                                                                           
                                                                                                                                
MS. KAZARY stated that RurAL  CAP is a statewide organization and                                                               
looks  at development  to support  economies in  all communities.                                                               
She returned  attention to program  outcomes based on  700 follow                                                               
up  surveys   from  homes   served  in   2010:     90-95  percent                                                               
participation  rates; 86  percent of  homes are  still practicing                                                               
energy efficiency and conservation  measures; 82 percent reported                                                               
decreased home  heating costs; and 80  percent reported decreased                                                               
electric bills  [slide 36].   An independent case study  of homes                                                               
in  Kasigluk revealed  an average  savings  of $20  per month  in                                                               
electricity and  the equivalent  of $39 in  savings to  the state                                                               
through  the Power  Cost Equalization  (PCE) subsidy  [slide 37].                                                               
Ms.  Kazary  concluded that  many  people  were already  actively                                                               
conserving energy  use; in  fact, the  national average  is about                                                               
750  kilowatt hours  (kWh)  of electricity  used  per month,  and                                                               
rural Alaska uses an average of  about 350-450 kWh per month.  On                                                               
the  other hand,  savings are  dramatic for  those who  routinely                                                               
exceed  the maximum  500  kWh for  PCE.   Based  on the  Kasigluk                                                               
study, the Energy Wise Program has  a less than three year return                                                               
on  investment in  electrical savings:   an  investment of  about                                                               
$2,000 resulted  in a savings of  about $700 per year  [slides 38                                                               
and 39].                                                                                                                        
                                                                                                                                
8:55:15 AM                                                                                                                    
                                                                                                                                
MS. KAZARY advised that after the  pilot year, RurAL CAP formed a                                                               
corporate  non-profit  partnership  with  NANA in  order  to  use                                                               
private funds to  help support the program.  In  the northwest of                                                               
Alaska, one  in four household  dollars goes to energy  costs and                                                               
NANA  constituents  were  seeking  solutions to  the  high  costs                                                               
[slide  40].    The  corporation contracted  with  RurAL  CAP  to                                                               
provide  the  Energy  Wise  Program to  every  household  in  its                                                               
region,  and  with other  partners  such  as  AEA and  the  local                                                               
communities, RurAL  CAP has  been working in  the region  for the                                                               
last two  years.  For  example, another partner is  the Northwest                                                               
Arctic  Borough which  installs  in-home electric  meters at  the                                                               
same time Energy Wise Program  crews do their work with residents                                                               
[slide 42].                                                                                                                     
                                                                                                                                
REPRESENTATIVE NAGEAK opined that  North Slope residents would be                                                               
interested in the in-home meters also.                                                                                          
                                                                                                                                
MS.  KAZARY observed  that almost  every region  in the  state is                                                               
interested in a  partnership with RurAL CAP.  In  the NANA region                                                               
all 11 communities  have begun assessments, over  60 crew members                                                               
have  been certified,  over  1,000 homes  have  been visited  and                                                               
there is  a 95 percent participation  rate [slide 43].   The data                                                               
from NANA's investments  of $860,000 and $900,000  over two years                                                               
is  now being  collected.   Based  on a  January  2012 follow  up                                                               
survey, the average electric bill  in NANA communities before the                                                               
program was $312 per month, and  the average savings after was 10                                                               
percent.   In  addition,  82 percent  reported  their homes  felt                                                               
warmer  despite record  breaking  cold  temperatures [slide  44].                                                               
Ms. Kazary  concluded, saying RurAL  CAP has submitted  a Capital                                                               
Project Submission  and Information  System (CAPSIS)  request for                                                               
$1.6  million   to  support  the   Energy  Wise  Program   in  12                                                               
communities  during 2013-2014  [slides 46  and 47].   Ms.  Kazary                                                               
expressed   confidence  that   the  program   is  effective   and                                                               
efficient.                                                                                                                      
                                                                                                                                
9:00:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIGGINS  noted RurAL CAP has  many accomplishments                                                               
in   employment,   child  development,   community   development,                                                               
construction  and   housing;  however,   the  expansion   of  the                                                               
weatherization program  into Anchorage  diverts funds  from rural                                                               
areas and  the Interior where energy  costs are much higher.   He                                                               
urged  that 90  percent of  the funds  should be  concentrated on                                                               
areas with the highest energy costs.                                                                                            
                                                                                                                                
MS. KAZARY  acknowledged that the weatherization  program grew in                                                               
Anchorage  because the  Municipality  of  Anchorage withdrew  its                                                               
weatherization  program about  two  years ago.    Thus RurAL  CAP                                                               
expanded its  service area to  about 500 homes in  Anchorage, but                                                               
this does not amount to a large percentage of funding.                                                                          
                                                                                                                                
REPRESENTATIVE  JOSEPHSON   asked  how  RurAL  CAP   selects  the                                                               
communities it serves.                                                                                                          
                                                                                                                                
MS. KAZARY explained  RurAL CAP works with  the Denali Commission                                                               
and  USDOE on  Project Start.   The  Denali Commission  committed                                                               
$100,000 to ensure  that Venetie and Arctic  Village are included                                                               
in the  Energy Wise  Program.   In addition,  RurAL CAP  looks at                                                               
communities that have  the highest energy costs and  that are not                                                               
receiving other  services, and invites  communities to  apply and                                                               
make  commitments   for  providing  storage  space   and  in-kind                                                               
resources.   There  is  also the  desire to  group  two or  three                                                               
communities in each region by location.                                                                                         
                                                                                                                                
9:07:15 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  ISAACSON   asked  whether  RurAL  CAP   contacts  other                                                               
providers.                                                                                                                      
                                                                                                                                
MS. KAZARY said the program  is well-known to local organizations                                                               
such as  the housing authorities  and city councils.   The energy                                                               
fairs provide an opportunity to coordinate services.                                                                            
                                                                                                                                
CO-CHAIR  ISAACSON  inquired  as   to  the  reception  RurAL  CAP                                                               
receives from the local utilities.                                                                                              
                                                                                                                                
MS.  KAZARY  said  RurAL  CAP   has  a  great  relationship  with                                                               
utilities.  More  than half of the communities are  served by the                                                               
Alaska Village Electrical Cooperative  Inc. (AVEC) which provides                                                               
staff time to assist with the  collection of data.  Nuvista Light                                                               
& Electric Cooperative, Inc. is also very supportive.                                                                           
                                                                                                                                
REPRESENTATIVE FOSTER asked where  legislators can submit written                                                               
support for RurAL CAP's funding request.                                                                                        
                                                                                                                                
MS. KAZARY said  RurAL CAP has four CAPSIS  requests for programs                                                               
which  originated from  Senator Ellis's  office.   If the  CAPSIS                                                               
request  is  granted,  the program  will  serve  12  communities,                                                               
benefit  1,000 households,  and employ  70 rural  Alaskans.   The                                                               
total  cost of  the project  is $2  million with  funding in  the                                                               
amount  of $300,000  expected from  the Rasmuson  Foundation, and                                                               
additional   support   from   regional  corporations   has   been                                                               
requested.                                                                                                                      
                                                                                                                                
REPRESENTATIVE JOSEPHSON applauded the work RurAL CAP is doing.                                                                 
                                                                                                                                
9:12:04 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ISAACSON opened the meeting to public testimony.                                                                       
                                                                                                                                
9:12:24 AM                                                                                                                    
                                                                                                                                
TOMMY  BALLOT  SR.  informed  the committee  he  is  the  housing                                                               
director of the  Village of Selawik, which is 30  miles above the                                                               
Arctic Circle.   He said  he and his  wife spend over  $1,200 per                                                               
month on electricity  and heat.  His personal  experience is that                                                               
it is  very expensive to  get materials  to the village  for home                                                               
improvements.  For  example, one 2x4 that costs  $2.40 in Seattle                                                               
costs  $18 in  Selawik.   He said  he was  very thankful  for the                                                               
program, although  additional outside  work needs to  be finished                                                               
in the summer.  Mr. Ballot  said the program helped the community                                                               
by  creating jobs,  and the  greatest  benefit is  to help  young                                                               
people stay sober in the village.                                                                                               
                                                                                                                                
REPRESENTATIVE  NAGEAK  observed  the  RurAL  CAP  weatherization                                                               
program underway when he was in  Selawik last summer.  He praised                                                               
the program  and the local  workers who were  making improvements                                                               
on the houses.                                                                                                                  
                                                                                                                                
9:18:57 AM                                                                                                                    
                                                                                                                                
KIRK OVIOK  JR. provided  a brief  background of  his experience.                                                               
He worked  for the Energy Wise  Program for two months  as a crew                                                               
leader.  In  the village, the tundra shifts and  houses have many                                                               
cracks and spaces open to the  outside.  The availability of jobs                                                               
inspires  residents  to  be  drug-free.     Mr.  Oviok  said  the                                                               
weatherization is effective, and more needs to be done.                                                                         
                                                                                                                                
MS. SCANLAN  relayed that  everyone in a  community comes  to the                                                               
energy   fair,  including   youth  who   are  attracted   to  the                                                               
calculators and meters.   It is valuable experience  for the kids                                                               
to help their parents understand  the math involved in conserving                                                               
energy.                                                                                                                         
                                                                                                                                
MS. KAZARY  stressed that there  are no  eligibility requirements                                                               
for the program thus all in a community receive services.                                                                       
                                                                                                                                
9:26:29 AM                                                                                                                    
                                                                                                                              
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee on Energy meeting was adjourned at 9:26 a.m.                                                                  

Document Name Date/Time Subjects
Agenda (H) ENE 03202013.docx HENE 3/20/2013 8:00:00 AM
(H) ENE Agenda 03202013
Rural Cap Energy Wise Presentation 03202013.pdf HENE 3/20/2013 8:00:00 AM
Rural Cap Energy Wise Presentation (H) ENE 03202013