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HB 148: "An Act relating to a state energy use reduction plan and energy efficiency improvement contracts and to energy audits of public buildings conducted by the Department of Transportation and Public Facilities; relating to agency capital budget requests; establishing an energy efficiency grant fund in the Alaska Housing Finance Corporation; and providing for an effective date."

00 HOUSE BILL NO. 148 01 "An Act relating to a state energy use reduction plan and energy efficiency improvement 02 contracts and to energy audits of public buildings conducted by the Department of 03 Transportation and Public Facilities; relating to agency capital budget requests; 04 establishing an energy efficiency grant fund in the Alaska Housing Finance 05 Corporation; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 LEGISLATIVE INTENT. It is the intent of the legislature to 10 (1) reduce state expenditures for utility costs associated with inefficient 11 building structures and environmental systems; 12 (2) promote energy cost savings in municipalities, unincorporated 13 communities, and school districts;

01 (3) spur energy efficiency related jobs and industry in Alaska. 02 * Sec. 2. AS 18.56.090 is amended by adding a new subsection to read: 03 (f) The corporation shall make and administer grants from the energy 04 efficiency grant fund (AS 18.56.310). 05 * Sec. 3. AS 18.56 is amended by adding a new section to read: 06 Sec. 18.56.310. Energy efficiency grant fund. (a) An energy efficiency grant 07 fund is established in the corporation as a separate fund to provide grants for energy 08 efficiency projects. 09 (b) The corporation shall administer the energy efficiency grant fund as a fund 10 separate from other funds of the corporation. The energy efficiency grant fund consists 11 of money appropriated to the fund by the legislature to provide grants for energy 12 efficiency projects. 13 (c) The energy efficiency grant fund is not a dedicated fund. 14 (d) The corporation may provide grants from the energy efficiency grant fund 15 to 16 (1) municipalities and unincorporated communities for energy 17 efficiency improvements of municipal or unincorporated community buildings or to 18 enhance the energy efficiency of buildings to be constructed; 19 (2) school districts for energy efficiency improvements of schools or 20 other school district buildings or to enhance the energy efficiency of schools or other 21 school district buildings to be constructed; and 22 (3) the University of Alaska for energy efficiency improvements of 23 university buildings or to enhance the energy efficiency of university buildings to be 24 constructed. 25 (e) For a new construction project to qualify for a grant under this section, the 26 project must be designed and constructed in accordance with applicable standards 27 listed in the most recent edition of the International Energy Conservation Code or the 28 minimal standards listed in the Leadership in Energy and Environmental Design rating 29 system for a certified building. 30 (f) In awarding grants from the energy efficiency grant fund under this 31 section, the corporation shall give priority to projects that

01 (1) propose the highest level of energy savings for each dollar spent; 02 (2) have obtained funding for the project from sources other than state 03 sources; 04 (3) serve a municipality or unincorporated community with a 05 population of less than 15,000. 06 (g) The corporation shall adopt regulations necessary to carry out the 07 provisions of this section. 08 * Sec. 4. AS 22.05.025(a) is amended to read: 09 (a) The supreme court has authority over 10 (1) all matters relating to the 11 (A) maintenance, occupancy, and operation of all court 12 facilities; 13 (B) rent or lease of facilities for court system purposes, subject 14 to AS 36.30.080(c); and 15 (C) acquisition of facilities for court system purposes by lease- 16 purchase or lease-financing agreements, subject to AS 36.30.085; and 17 (2) the planning, design, and construction of court facilities but, in the 18 exercise of its authority under this paragraph, the supreme court shall cooperate and 19 coordinate with the Department of Transportation and Public Facilities so that court 20 facility construction projects are carried out in accordance with the statutes and 21 regulations applicable to state public works projects and comply with the state 22 energy use reduction plan under AS 44.42.067. 23 * Sec. 5. AS 37.07.062 is amended by adding a new subsection to read: 24 (d) In addition to the requirements of (a) of this section, if an agency is 25 requesting an appropriation of $1,000,000 or more for capital improvements to an 26 existing public facility, the agency must submit with the request for review by the 27 legislature 28 (1) the most recent energy audit report as described in AS 44.42.065 29 for the public facility; 30 (2) a proposal for energy efficiency improvements for the public 31 facility; and

01 (3) a cost-savings analysis for the proposed energy efficiency 02 improvements for the public facility. 03 * Sec. 6. AS 44.42.065 is amended by adding a new subsection to read: 04 (d) The department shall submit to the legislature a report summarizing the 05 energy audits conducted under this section not later than one year after the completion 06 of an energy audit required under this section. 07 * Sec. 7. AS 44.42 is amended by adding a new section to read: 08 Sec. 44.42.067. State energy use reduction plan and energy efficiency 09 improvements. (a) The department shall prepare and adopt a state energy use 10 reduction plan that will allow the state to achieve a reduction of energy consumption 11 for state facilities, starting one year after the effective date of this section. 12 (b) The state energy use reduction plan prepared under (a) of this section must 13 contain 14 (1) a plan to improve, to the extent feasible, the energy efficiency of all 15 state facilities managed by the department; 16 (2) a requirement that new public facilities managed by the department 17 be designed and constructed in accordance with applicable standards listed in the most 18 recent addition of the International Energy Conservation Code; and 19 (3) a plan for recovery of costs of efficiency improvements to state 20 facilities managed by the department, including lighting projects, that start after the 21 effective date of this Act through energy cost savings over the 15-year period 22 following completion of the project. 23 (c) In implementing the plan, the department may waive a requirement listed 24 in (b)(2) of this section if the department makes a determination that a requirement is 25 ineffective or inappropriate due to the climate conditions of the state. 26 (d) In implementing the plan, the department shall, if cost-effective, consider 27 entering into performance energy contracts. In this subsection, "performance energy 28 contract" means a contract for which payment is conditional on achieving 29 contractually specified energy savings. 30 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:

01 ENERGY AUDIT REPORT. Not later than January 31, 2010, the Department of 02 Transportation and Public Facilities shall submit to the legislature a report summarizing the 03 information gathered and recommendations made by the department related to the 04 department's most recent energy audit conducted under AS 44.42.065. 05 * Sec. 9. Section 5 of this Act takes effect July 1, 2010.