Legislature(2017 - 2018)CAPITOL 17

02/14/2017 10:15 AM ENERGY

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Audio Topic
10:17:58 AM Start
10:18:23 AM HB81
10:25:46 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 81 AK ENERGY EFFICIENCY LOANS: ELIGIBILITY TELECONFERENCED
Moved CSHB 81(ENE) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                       February 14, 2017                                                                                        
                           10:17 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Adam Wool, Chair                                                                                                 
Representative Ivy Spohnholz, Vice Chair                                                                                        
Representative Matt Claman                                                                                                      
Representative Dean Westlake                                                                                                    
Representative DeLena Johnson                                                                                                   
Representative Jennifer Johnston                                                                                                
Representative George Rauscher                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 81                                                                                                               
"An Act  making an  entity that  is exempt  from federal  taxation                                                              
under  26 U.S.C.  501(c)(3),  (4), (6),  (12),  or (19)  (Internal                                                              
Revenue  Code) and  a federally  recognized tribe  eligible for  a                                                              
loan  from  the  Alaska energy  efficiency  revolving  loan  fund;                                                              
relating  to loans  from the  Alaska  energy efficiency  revolving                                                              
loan fund;  and relating  to the  annual report  published  by the                                                              
Alaska Housing Finance Corporation."                                                                                            
                                                                                                                                
     - MOVED CSHB 81(ENE) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 81                                                                                                                   
SHORT TITLE: AK ENERGY EFFICIENCY LOANS: ELIGIBILITY                                                                            
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS                                                                                    
                                                                                                                                
01/25/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        

01/25/17 (H) ENE, FIN

01/31/17 (H) ENE AT 10:15 AM CAPITOL 17

01/31/17 (H) Heard & Held

01/31/17 (H) MINUTE(ENE) 02/07/17 (H) ENE AT 10:15 AM CAPITOL 17 02/07/17 (H) Heard & Held 02/07/17 (H) MINUTE(ENE) 02/14/17 (H) ENE AT 10:15 AM CAPITOL 17 WITNESS REGISTER CHRIS ROSE, Executive Director Renewable Energy Alaska Project (REAP) Anchorage, Alaska POSITION STATEMENT: Testified in support of HB 81. STACY SCHUBERT, Director Governmental Affairs & Public Relations Alaska Housing Finance Corporation (AHFC) Department of Revenue Anchorage, Alaska POSITION STATEMENT: Testified in support of HB 81. REPRESENTATIVE JONATHAN KREISS-TOMKINS Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions as the sponsor of HB 81. ACTION NARRATIVE 10:17:58 AM CHAIR ADAM WOOL called the House Special Committee on Energy meeting to order at 10:17 a.m. Representatives Wool, Claman, Johnston, Johnson, Rauscher, and Spohnholz were present at the call to order. Representative Rauscher arrived as the meeting was in progress. HB 81-AK ENERGY EFFICIENCY LOANS: ELIGIBILITY 10:18:23 AM CHAIR WOOL announced that the only order of business would be HOUSE BILL NO. 81, "An Act making an entity that is exempt from federal taxation under 26 U.S.C. 501(c)(3), (4), (6), (12), or (19) (Internal Revenue Code) and a federally recognized tribe eligible for a loan from the Alaska energy efficiency revolving loan fund; relating to loans from the Alaska energy efficiency revolving loan fund; and relating to the annual report published by the Alaska Housing Finance Corporation." 10:18:41 AM CHAIR WOOL re-opened public testimony. 10:18:53 AM CHRIS ROSE, Executive Director, Renewable Energy Alaska Project (REAP), explained that REAP was a statewide coalition of more than 80 organizations which supported more renewable energy and energy efficiency in the state. He declared support for HB 81, and stated that energy efficiency worked, and it "saves a ton of money for the community" which helps the state economy. He reported that the average savings in the residential program was 30 percent, and he opined that there could be similar savings for public and other commercial buildings. He stated that, as this proposed bill addressed tribal and non-profit buildings, it could also make these buildings more efficient. He emphasized that this was "simply a loan program [and] AHFC's very good at making loans and doing the job at underwriting this money." He opined that the proposed bill could make money for the State of Alaska, as it would be part of the Alaska Housing Finance Corporation (AHFC) portfolio. He pointed out that this would be another tool for tribal entities and non-profits to make their buildings more energy efficient, and thereby keeping more money in the economy. 10:20:42 AM REPRESENTATIVE RAUSCHER asked how the AHFC dividend to the state worked. MR. ROSE explained that Alaska Housing Finance Corporation (AHFC) and Alaska Industrial Development and Export Authority (AIDEA) paid back dividends from the loan repayments which were part of their portfolios. He added that the loans resulting from proposed HB 81 would be part of these portfolios and would potentially increase the dividend. 10:21:39 AM STACY SCHUBERT, Director, Governmental Affairs & Public Relations, Alaska Housing Finance Corporation (AHFC), Department of Revenue, in response to Representative Rauscher, acknowledged that AHFC paid a dividend to the State of Alaska, which added $30 million to the current budget. She explained that this dividend was based on activity from the mortgages and returns from investments, and was calculated as 75 percent of the adjusted net earnings. 10:23:09 AM REPRESENTATIVE JONATHAN KREISS-TOMKINS, Alaska State Legislature, expressed his appreciation for the diligence in vetting the proposed bill, stating that "we're all on the same team towards the common goal." CHAIR WOOL mused about earlier questions for using assets of the loan, or depleting the loan, and the potential for not having enough money available for its original intent to public buildings. 10:24:17 AM CHAIR WOOL closed public testimony. 10:24:24 AM REPRESENTATIVE WESTLAKE offered his belief that the money realized from energy savings would be spent at the local level. 10:25:01 AM REPRESENTATIVE SPOHNHOLZ moved to report HB 81, labeled 30- LS0353\A, as amended, out of committee with individual recommendations and the accompanying zero fiscal notes. There being no objection, CSHB 81(ENE) was moved from the House Special Committee on Energy. 10:25:46 AM ADJOURNMENT There being no further business before the committee, the House Special Committee on Energy meeting was adjourned at 10:25 a.m.

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