Legislature(2011 - 2012)BUTROVICH 205
04/12/2011 03:00 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
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| Start | |
| HB197 | |
| HJR27 | |
| HJR17 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HJR 17 | TELECONFERENCED | |
| + | HB 197 | TELECONFERENCED | |
| + | HJR 27 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 12, 2011
3:04 p.m.
MEMBERS PRESENT
Senator Donald Olson, Chair
Senator Thomas Wagoner
Senator Albert Kookesh
Senator Linda Menard
MEMBERS ABSENT
Senator Johnny Ellis
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 197(FIN)
"An Act recognizing the Alaska Housing Finance Corporation as
the authorizing agency to approve home energy rating systems for
the state; and providing for an effective date."
- MOVED CSHB 197(FIN) OUT OF COMMITTEE
HOUSE JOINT RESOLUTION NO. 27
Supporting the relocation of the home port of the Coastal
Villages Region Fund fishing fleet from Seattle to Alaska.
- MOVED HJR 27 OUT OF COMMITTEE
CS FOR HOUSE JOINT RESOLUTION NO. 17(CRA)
Urging the United States Congress to pass legislation concerning
regulation of drinking water and wastewater treatment by the
United States Environmental Protection Agency.
- MOVED CSHJR 17(CRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 197
SHORT TITLE: HOME ENERGY RATING SYSTEM
SPONSOR(s): REPRESENTATIVE(s) PRUITT
03/16/11 (H) READ THE FIRST TIME - REFERRALS
03/16/11 (H) ENE, FIN
03/29/11 (H) ENE AT 3:00 PM BARNES 124
03/29/11 (H) Moved Out of Committee
03/29/11 (H) MINUTE(ENE)
03/30/11 (H) ENE RPT 3DP 3NR
03/30/11 (H) DP: SADDLER, LYNN, PRUITT
03/30/11 (H) NR: TUCK, PETERSEN, FOSTER
04/05/11 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/05/11 (H) Moved CSHB 197(FIN) Out of Committee
04/05/11 (H) MINUTE(FIN)
04/06/11 (H) FIN RPT CS(FIN) 11DP
04/06/11 (H) DP: GARA, FAIRCLOUGH, GUTTENBERG,
T.WILSON, HAWKER, COSTELLO, EDGMON,
DOOGAN,
04/06/11 (H) JOULE, STOLTZE, THOMAS
04/07/11 (H) TRANSMITTED TO (S)
04/07/11 (H) VERSION: CSHB 197(FIN)
04/08/11 (S) READ THE FIRST TIME - REFERRALS
04/08/11 (S) CRA, FIN
04/11/11 (S) CRA AT 3:00 PM BELTZ 105 (TSBldg)
04/11/11 (S) -- Rescheduled to 4/12/11 --
04/12/11 (S) CRA AT 3:00 PM BUTROVICH 205
BILL: HJR 27
SHORT TITLE: RELOCATE COASTAL VILLAGES REGION FUND
SPONSOR(s): REPRESENTATIVE(s) SEATON
04/04/11 (H) READ THE FIRST TIME - REFERRALS
04/04/11 (H) RES
04/05/11 (H) RES REFERRAL REMOVED
04/05/11 (H) EDT REFERRAL ADDED BEFORE RLS
04/07/11 (H) EDT RPT 6DP
04/07/11 (H) DP: GARDNER, THOMPSON, OLSON, TUCK,
FOSTER, HERRON
04/07/11 (H) EDT AT 8:00 AM BARNES 124
04/07/11 (H) Moved Out of Committee
04/07/11 (H) MINUTE(EDT)
04/08/11 (H) TRANSMITTED TO (S)
04/08/11 (H) VERSION: HJR 27
04/11/11 (S) READ THE FIRST TIME - REFERRALS
04/11/11 (S) CRA
04/12/11 (S) CRA AT 3:00 PM BUTROVICH 205
BILL: HJR 17
SHORT TITLE: WATER & WASTE WATER REGULATION
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS
03/07/11 (H) READ THE FIRST TIME - REFERRALS
03/07/11 (H) CRA, RES
03/15/11 (H) CRA AT 8:00 AM BARNES 124
03/15/11 (H) Moved CSHJR 17(CRA) Out of Committee
03/15/11 (H) MINUTE(CRA)
03/16/11 (H) CRA RPT CS(CRA) 5DP
03/16/11 (H) DP: AUSTERMAN, DICK, GARDNER, SADDLER,
MUNOZ
03/25/11 (H) RES REFERRAL WAIVED
04/04/11 (H) TRANSMITTED TO (S)
04/04/11 (H) VERSION: CSHJR 17(CRA)
04/06/11 (S) READ THE FIRST TIME - REFERRALS
04/06/11 (S) CRA
04/11/11 (S) CRA AT 3:00 PM BELTZ 105 (TSBldg)
04/11/11 (S) HOME ENERGY RATING SYSTEM
04/12/11 (S) CRA AT 3:00 PM BUTROVICH 205
WITNESS REGISTER
JEREMIAH CAMPBELL
Staff to Representative Lance Pruitt
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Introduced HB 197 on behalf of the sponsor,
Representative Lance Pruitt.
BOB GREEN
Rural Housing and Research Programs
Alaska Housing Finance Corporation
Department of Revenue (DOR)
POSITION STATEMENT: Provided supporting information on HB 197.
REPRESENTATIVE PAUL SEATON
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of HJR 27.
PHILLIP OATES, Manager
City of Seward
Seward, AK
POSITION STATEMENT: Testified in support of HJR 27.
NEIL RODRIGUEZ, Regulatory Manager
Coastal Villages Region Fund (CVRF)
Anchorage, AK
POSITION STATEMENT: Testified in support of HJR 27.
PAUL LABOLLE
Staff to Representative Neal Foster
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Introduced HJR 17 on behalf of the sponsor,
Representative Foster.
SHIRLEY MARQUARDT, Mayor
City of Unalaska
Unalaska, Alaska
POSITION STATEMENT: Testified in support of HJR 17.
ACTION NARRATIVE
3:04:41 PM
CHAIR DONALD OLSON called the Senate Community and Regional
Affairs Standing Committee meeting to order at 3:04 p.m. Present
at the call to order were Senators Kookesh, Wagoner and Chair
Olson.
HB 197-HOME ENERGY RATING SYSTEM
3:05:14 PM
CHAIR OLSON announced the consideration of HB 197. [CSHB
197(FIN) was before the committee.]
3:05:26 PM
JEREMIAH CAMPBELL, staff to Representative Lance Pruitt, sponsor
of HB 197, stated that HB 197 recognizes the Alaska Housing
Finance Corporation (AHFC) as the state's authorizing agency for
the Home Energy Rating System (HERS). This legislation seeks to
protect the investment that AHFC has already made in developing
its own Alaska-specific rating system software called AkWarm.
This investment is jeopardized because non-governmental, for-
profit, third-parties are currently attempting to be identified
in federal legislation as the state's HERS verifying agency. If
successful, these outside entities would control state policy on
the issue. The AkWarm software is directly tied to the state's
home energy rebate and weatherization programs, interest rate
reductions, and Alaska Building Energy Efficiency Standards. HB
197 will enable AHFC to ensure that any home energy rating
system utilized in Alaska will be appropriate for Alaska's
climate.
SENATOR KOOKESH asked if he could name a specific non-government
third-party.
MR. CAMPBELL replied the Residential Energy Services Network
(RESNET) is the entity that's currently active in the Lower 48.
He deferred further questions to Mr. Green from AHFC.
3:07:42 PM
BOB GREEN, Rural Housing and Research Programs, Alaska Housing
Finance Corporation, Department of Revenue (DOR), explained that
RESNET started as the national organization for state energy
rating officials that segued first into a 501(c)(3) and then
into a for-profit corporation called RESNET. Its role is to help
approve home energy rating systems used in the Lower 48,
particularly for states that do not want to get into that
business. By comparison, Alaska, through AHFC, already plays a
significant role in the HERS. The AkWarm software was
specifically developed for Alaska and about 100 home energy
raters have been trained. The AHFC wants to ensure that it has a
direct relationship with the federal government and that a
third-party doesn't insert itself and dictate policy in this
state.
MR. GREEN explained that the AkWarm software was specifically
developed to acknowledge Alaska's different weather patterns and
unique conditions. He opined that it's unlikely that any rating
system software that's created in the Lower 48 would do the
same. HB 197 assures that any rating system that's used in the
state will be closely examined to make sure that it's
appropriate with regard to energy conservation and home
construction in the state of Alaska.
3:10:45 PM
CHAIR OLSON asked why a government entity should run the program
when a private entity such as RESNET can do it more efficiently.
He noted he didn't see a fiscal note.
MR. CAMPBELL responded that the bill has a zero fiscal note.
CHAIR OLSON questioned giving the state what is essentially a
monopoly when private enterprise tends to operate more
efficiently.
MR. GREEN explained that the AHFC is statutorily prohibited from
issuing loans on homes that do not meet the minimum building
energy efficiency standard. Currently this is four star plus.
The AkWarm software is used to measure homes to make sure that
they meet that mark and thus qualify for AHFC financing. He
noted that several years ago AHFC looked at the same
public/private question and concluded that it was most important
to ensure that home ratings are accurate. AHFC decided that the
best way to do this was to create and maintain public domain
energy rating software and to invest in training home energy
raters. To date, about 100 home energy raters have been trained
and they're all proficient and certified. The private sector has
used this mechanism as a marketing tool to sell an energy
efficient product, which makes a nice working partnership
between the AHFC and the building industry.
3:14:02 PM
CHAIR OLSON asked if it would adversely affect home builders to
have an effective date that falls in the middle of the
construction season.
MR. GREEN said he didn't believe so because the AkWarm software
tool and AHFC trained energy raters are already in widespread
use. There is the possibility today, however, for a builder from
the Lower 48 to build a house in Alaska that's rated three star
plus and have it financed by Freddy Mac or Fanny Mae. But AHFC
couldn't finance that home in the event of a resale because it
doesn't meet the minimum four star plus rating. The Alaska
building industry has keyed in on this and recognizes the
benefit of building to AHFC energy specifications such that
financing is available from any funding source.
CHAIR OLSON asked if that puts other lending institutions at a
disadvantage.
MR. GREEN replied Freddie Mac and Fannie Mae recognize the
standard that AHFC is encouraging builders to achieve and the
building industry is telling the financing institutions that it
is building energy efficient products that will qualify for all
available financing. It's a good marketing tool.
3:16:59 PM
CHAIR OLSON asked who opposes the bill.
MR. CAMPBELL replied there's been no opposition and both AARP
and the Homebuilders Association have stated support for the
bill.
CHAIR OLSON noted that no one had signed up to testify.
3:17:31 PM
SENATOR WAGONER moved to report CSHB 197(FIN), version B, from
the committee with individual recommendations and attached
fiscal note(s).
CHAIR OLSON announced that without objection, CSHB 197(FIN)
moved from the Senate Community and Regional Affairs Standing
Committee.
At ease from 3:18 p.m. to 3:19 p.m.
HJR 27-RELOCATE COASTAL VILLAGES REGION FUND
3:19:01 PM
CHAIR OLSON announced the consideration of HJR 27.
3:19:14 PM
REPRESENTATIVE PAUL SEATON, sponsor of HJR 27, said this
resolution supports "Alaskanizing" the fishing fleet, including
the large vessels that operate in the Bering Sea and within one
of the six Community Development Quota (CDQ) groups. These CDQ
groups were established to give communities along the Bering Sea
access to the fisheries resource. The Coastal Villages Region
Fund (CVRF) is the largest CDQ group with a 341 foot Bering Sea
Pollack trawler, four 100 plus foot crab boats, seven 100 plus
foot ground fish vessels as well as smaller tenders and other
vessels. The homeport for this fleet has been Seattle, but CVRF
made a decision to find a homeport in Alaska. The City of Seward
has what the fleet needs including an ice-free port, upland
space for development, the Alaska Vocational Technical Center
(AVTEC) training facility, and a large vessel lift facility. HJR
27 supports the return of this private industry to Alaska and
hopefully it will bring economic development to from Seward to
Anchorage.
REPRESENTATIVE SEATON noted that the packets contain numerous
expressions of support for the resolution and bringing private
industry jobs to Alaska.
3:22:19 PM
CHAIR OLSON asked why the CVRF initially made the decision to
homeport in Seattle.
REPRESENTATIVE SEATON replied Seattle had long all the necessary
facilities in one place, including road and rail access and
sufficient dock space. In anticipation of becoming the homeport
for the CVRF fleet, Seward did a preliminary analysis to make
sure it had sufficient dock space. In addition, the capital
budget allocates $400,000 to do a more detailed economic study.
CHAIR OLSON asked if he had an idea of what it might cost the
community of Seward to be able to handle these large vessels.
REPRESENTATIVE SEATON replied the detailed facility design will
give the economic analysis.
CHAIR OLSON asked who will maintain this large facility.
REPRESENTATIVE SEATON replied it will probably be the City of
Seward.
3:25:15 PM
CHAIR OLSON asked if the City of Seward would look to the state
for operating capital if it had trouble maintaining the
facility.
REPRESENTATIVE SEATON said he hopes the facility will be built
to a standard such that major maintenance wouldn't be necessary
for 15-20 years.
CHAIR OLSON asked what adverse effects the large vessels and
increased traffic will have on the smaller vessels.
REPRESENTATIVE SEATON replied that shouldn't be a problem; the
large vessels will be located on the east side of the bay across
from Seward. At this point there is no intention to place these
large vessels inside the municipal boat harbor. He added that he
doesn't foresee a traffic problem.
CHAIR OLSON asked if he'd sought comment from the local CDQ
group.
REPRESENTATIVE SEATON answered yes. He offered to provide a copy
of the video presentation CVRF made. This will be a great
economic development for not just Seward but also the Kenai
Peninsula to Anchorage.
CHAIR OLSON asked when the actual move will take place.
REPRESENTATIVE SEATON replied 2014 is the timeline.
3:27:38 PM
SENATOR WAGONER asked how much of its own money the CDQ will
invest and if that would be enough to ensure that CVRF will stay
in Seward.
REPRENTATIVE SEATON replied that's a question for the CDQ but
there has been talk about contractual obligations to use the
facilities over time.
3:28:43 PM
PHILLIP OATES, Manager, City of Seward, informed the committee
that the CDQ groups were formed as a result of the Magnuson-
Stevens Act. The vision in the '70s was first to Americanize the
foreign-dominated fishing fleets. Second, it was to give some of
the fishing quota to the communities that surround the prime
fishing areas of the Bering Sea. Third, it was to allow those
communities and development groups to reinvest their earnings
into the fishing industry through training and education.
Finally, the vision was to "Alaskanize" the fishing fleets. That
is the current focus.
Responding to the question about why the CVRF vessels have been
homeported in Seattle, he explained that the location of the
homeport is an owner's decision and the CDQ groups initially
didn't own their vessels. The Coastal Villages Region Fund is
the most successful of the six CDQ groups in terms of vessel
ownership and as owner they made the decision to leave Seattle
and homeport in Alaska. Mr. Oates opined that this is probably
happening sooner than those initial visionaries thought it
would.
Responding to the question about cost, Mr. Oates said the City
of Seward has paid for the initial engineering concept and
economic analysis and has received input from the U.S. Army
Corps of Engineers. The project appears to be economic. The
$400,000 capital appropriation is to complete both the
engineering concept and economic analysis before committing more
money to the project. At this point the rough estimate of the
cost is approximately $34 million. That builds on the existing
$70 million infrastructure on the east side of Resurrection Bay.
He noted that there are two additional phases to the project if
the remaining five CDQ groups move to Alaska. The City of Seward
would maintain the infrastructure, just as it does now for the
existing industrial area. Revenue is currently generated from
land leases and the lease with Seward Ship's Drydock & Ship's
Chandlery. The Coastal Villages Region Fund would have skin in
the game through binding contracts sufficient to secure the
bonding for the project. Funding for the project could be a
combination of state GEO bonding, revenue bonding through
contracts with CVRF and others, or public/private financing. The
Coastal Villages Region Fund can't build the infrastructure
itself because the Magnuson-Stevens Act mandates it spend
earnings in the Bering Sea area or the vessels that fish in
those areas. CVRF can be a tenant.
3:32:58 PM
SENATOR MENARD joined the committee.
MR. OATES said CVRF found that only Seward met all its needs.
The initiative to move came from the president of the board of
the Coastal Villages Region Fund and the board produced a DVD
that does a good job of articulating their reasons for moving.
He noted that every year CVRF spends approximately $2 million to
fly crewmembers to and from Seattle, about $20 million in
moorage and maintenance in Seattle, and $2 million to fill the
fleet's fuel tanks just one time so there are business and
economic reasons for the move. He agreed with Representative
Seaton that the fleet wouldn't interfere with smaller vessel
traffic in Seward because the facility is on the other side of
Resurrection Bay. The timeline is December 2014.
3:35:16 PM
CHAIR OLSON asked if the City of Seward had considered bonding
for the capital project.
MR. OATES replied revenue bonding would be one approach for
funding the project.
SENATOR WAGONER asked if there is any opportunity for funding
through the U.S. Army Corps of Engineers ("Corps").
MR. OATES replied the initial phase can be done at the state
level, but the Corps might need to be involved in the permitting
and funding stream in phases 2 and 3. The initial phase is
economic and will be sufficient to establish both land and water
infrastructure. Finally, he said, many of the Coastal Villages
Region Fund crew members already come to Seward for the AVTEC
training and are familiar with the area.
3:37:57 PM
SENATOR WAGONER asked if the Seward shipyard was currently under
lease.
MR. OATES replied it's under lease to the private company Seward
Ship's Drydock & Ship's Chandlery. That ship repair facility
does major work on Coast Guard and other vessels, which provides
another reason for coastal villages to come to this area.
SENATOR WAGONER asked if the entire acreage was leased or if
there was a place for other vendors to locate.
MR. OATES replied there's plenty of expansion room for all user
groups; some of the available land is municipal and some is in
private ownership.
SENATOR KOOKESH reminded the committee that this is only a
resolution.
3:40:04 PM
NEIL RODRIGUEZ, Coastal Villages Region Fund (CVRF) said CVRF
already uses the Seward facility as a dry dock for some of its
vessels, but they aren't there on a full-time basis. One thing
to take into consideration, he said, is that CVRF has been
growing at a rapid rate and it has partnerships in other CDQ
groups.
MR. RODRIGUES noted that a number of regional residents do
maintenance on CVRF boats and it's an overwhelming trip for
Western Alaska residents to travel to and from Seattle. Sending
these workers to Seward would help the city and keep the work in
Alaska.
CHAIR OLSON asked Representative Seaton if he would like to make
any closing comments.
REPRESENTATIVE SEATON said the City of Seward bonded to build
the Spring Creek Prison, which is another indication that the
business community will find the municipality approachable when
a long-term project makes sense.
3:43:36 PM
SENATOR KOOKESH moved to report HJR 27 from the committee with
individual recommendations and attached fiscal note(s).
CHAIR OLSON announced that without objection, HJR 27 moved from
the Senate Community and Regional Affairs Standing Committee.
At ease from 3:44 p.m. to 3:45 p.m.
HJR 17-WATER & WASTE WATER REGULATION
3:45:18 PM
CHAIR OLSON announced the consideration of HJR 17. [CSHJR
17(CRA) was before the committee.
3:45:35 PM
PAUL LABOLLE, staff to Representative Neal Foster, sponsor of
HJR 17, said this resolution calls on Congress to pass
legislation that provides reasonable standards for wastewater
treatment. That includes prohibiting the U.S. Environmental
Protection Agency (EPA) from adopting new policy or regulations
for at least two years and requiring the EPA to lay out a 10-
year plan for regulatory activities.
CHAIR OLSON asked if there is a precedent to show that a
resolution like this can effectively rein in the EPA.
MR. LABOLLE replied he didn't believe there is precedent to show
that a resolution has ever been effective.
CHAIR OLSON observed that in this state the Legislature likes to
see resolutions from communities, particularly if finances are
involved.
3:47:22 PM
SHIRLEY MARQUARDT, Mayor, City of Unalaska stated that what was
once a wastewater issue for the City of Unalaska, has turned
into a significant future problem for Alaska. To design and
finance a wastewater treatment plant is a time-consuming process
that is extremely costly to ratepayers, municipalities, and the
state. HJR 17 is a reasonable message to send to Congress in
light of diminished federal funding and uncertain future state
funding for these very expensive projects. The national "one
size fits all" standard that EPA has adopted doesn't work in
this state.
CHAIR OLSON expressed support for the resolution and the notion
of reining in the EPA.
MS. MARQUARDT said it is extremely important to have support
from legislators and the state and the municipality will
continue to fight this battle for Unalaska and the rest of the
state to the extent possible. She offered her belief that
resolutions are beneficial to let Congress know just how
important certain issues are to the state.
SENATOR WAGONER expressed empathy and noted that several
communities on the Kenai Peninsula are going through the same
process.
3:51:17 PM
SENATOR WAGONER moved to report CSHJR 17(CRA), version I, from
the committee with individual recommendations and attached
fiscal note(s).
CHAIR OLSON announced that without objection, CSHJR 17(CRA)
moved from the Senate Community and Regional Affairs Standing
Committee.
3:51:52 PM
There being no further business to come before the committee,
Chair Olson adjourned the Senate Community and Regional Affairs
Standing Committee at 3:51 p.m.
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