CS FOR SENATE BILL NO. 220(FIN) "An Act relating to energy efficiency, energy conservation, and alternative energy, to an emerging energy technology fund, to the lease of state land to a public electric utility, to the Alaska heating assistance program, to state energy use data, to the Southeast energy fund, to nuclear energy production and facilities, to the definition of 'power project' or 'project' as it relates to rural and statewide energy programs and the Alaska Energy Authority, and to the definition of 'alternative energy system'; establishing an Alaska energy efficiency revolving loan fund; directing the Department of Transportation and Public Facilities to prepare a report on the feasibility of using compressed natural gas to power vehicles in the state, including vehicles owned or operated by the state, and including in that study, if warranted, a pilot program proposal for powering some vehicles owned or operated by the state with compressed natural gas; authorizing and relating to the issuance of bonds by the Alaska Housing Finance Corporation; relating to a report regarding a municipal energy improvements financing program and to an energy report by the Office of the Governor; and providing for an effective date." 8:03:54 PM SENATOR BILL WIELECHOWSKI explained the bill, which he saw as a prime example of bipartisan workmanship with a modest fiscal note of $624 thousand. He pointed out that the bill will save the state money over the long term. The bill provides an example of lowering energy costs by making simple investments. Businesses will benefit from a new interest loan program that will increase profitability. SENATOR LESIL MCGUIRE complemented Representative Fairclough for her work on the legislation. She highlighted the policy passed from the house including the adoption of Alaska Housing Finance Corporation's (AHFC) energy efficiency revolving loan fund. The veto on the stimulus money was converted to $250 million in bonds for capitalization of the fund. She mentioned changes in the area of nuclear energy. Old references to nuclear energy created a second layer of bureaucracy leading to reflection of statutes to allow nuclear projects to go forward through the federal process. The emerging energy technology grant is one aspect of the bill capitalized at $2.3 million. She mentioned the Low Income Energy Assistance Program (LIHEAP) whose benefits are linked to the price of oil. When the price of oil soars, costs increase for Alaskans. She explained the need for a list of regulations from the governor, directing the legislature about the coordination of the current plans, to avoid duplication. She discussed the feasibility study on the use of compressed natural gas. The old alternative energy loan program is revised in the legislation. 8:15:11 PM Vice-Chair Thomas expressed appreciation for the help from Senator McGuire and the other legislators for visiting Haines. He asked if there was allowance for general fund to be used as a match in the emerging technology fund. Senator McGuire answered no. She explained that the fund will be capitalized with the initial $2.3 million. The grants will be awarded based on criteria. MICHAEL POWLOWSKI, STAFF, LESIL MCGUIRE stated that there is no prohibition against using general funds as matching funds. He mentioned that the criterion for the awarding of the grants was listed on Lines 4 through 15. Vice-Chair Thomas stated that the community in Yakutat would be supportive of the language. Co-Chair Stoltze recalled similar past efforts. Representative Gara commended the bipartisan nature of the bill. Co-Chair Hawker asked Mr. Pawlowski to walk through the fiscal notes. STEPHAN HAAGENSON, EXECUTIVE DIRECTOR, ALASKA ENERGY AUTHORITY, stated that the implementation is to support the renewable energy fund. He noted that the emerging technology fund allows production of areas like Yakutat with untapped resources. 8:21:22 PM SARA FISHER-GOAD, DEPUTY DIRECTOR, ALASKA ENERGY AUTHORITY commented on the double counting of the fiscal note. She noted that the Alaska Energy Authority (AEA) fiscal note has the cost for the program while the AIDA fiscal note includes interagency receipts. Co-Chair Hawker stated that the duplicate appropriation is noted in the fiscal note. 8:22:39 PM MARY SOROKY, LEGISLATIVE LIASON, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, testified that the Department of Transportation and Public Facilities (DOT/PF) is asking for funding for one engineer architect who will lead the retrofit program for state buildings. The request is for $90 thousand for the feasibility study for compressed natural gas for state vehicles. Co-Chair Hawker asked if the outcomes were desirable. Ms. Soroky replied that the department believed that the revolving loan program will be beneficial to the municipalities and state government agencies that choose to access it. Co-Chair Hawker asked that all agencies look through the amendments and the fiscal impact. Representative Gara asked if Ms. Soroky would be available for future discussions. Ms. Soroky responded yes. Co-Chair Hawker closed public testimony. 8:25:42 PM SB 220 Was HEARD and HELD in Committee for further consideration.