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CSSB 17(CRA): "An Act relating to the retrofitting of certain public facilities and community facilities; relating to the performance of energy audits on schools and community facilities; relating to the duties of the Alaska Energy Authority and the Alaska Housing Finance Corporation; creating a rapid economic recovery office in the Alaska Industrial Development and Export Authority; and relating to the state energy policy and energy source reporting by state agencies."

00 CS FOR SENATE BILL NO. 17(CRA) 01 "An Act relating to the retrofitting of certain public facilities and community facilities; 02 relating to the performance of energy audits on schools and community facilities; 03 relating to the duties of the Alaska Energy Authority and the Alaska Housing Finance 04 Corporation; creating a rapid economic recovery office in the Alaska Industrial 05 Development and Export Authority; and relating to the state energy policy and energy 06 source reporting by state agencies." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 LEGISLATIVE INTENT. It is the goal of this legislation that the state, by 2026, enter 11 into energy service performance contracts valued at $100,000,000 to retrofit public facilities, 12 public buildings, and public school buildings in a manner that will result in a net savings in 13 energy costs to the state within 15 years after completion of the retrofits. It is the intent of the

01 legislature that those entities be able to capitalize on the abundant cost-saving potential 02 afforded by energy efficiency upgrades, while avoiding an upfront cost to the state, that will 03 ultimately result in reduced costs to building owners, the state, and the power cost 04 equalization program established under AS 42.45.100 - 42.45.150. 05 * Sec. 2. AS 18.56 is amended by adding a new section to article 6 to read: 06 Sec. 18.56.865. Energy audits of community facilities. If requested by the 07 Alaska Energy Authority, the corporation shall coordinate with the Alaska Energy 08 Authority to perform energy audits of community facilities under AS 44.83.088. 09 * Sec. 3. AS 42.45.110 is amended by adding a new subsection to read: 10 (j) The owner or operator of a community facility of over 5,000 square feet for 11 which a utility is entitled to receive power cost equalization under (b) of this section 12 for sales of power to that community facility may allow the Alaska Energy Authority, 13 the Alaska Housing Finance Corporation, or the Department of Transportation and 14 Public Facilities to 15 (1) perform an energy audit of the community facility under 16 AS 44.42.065(a); 17 (2) retrofit the community facility under AS 44.42.067(a). 18 * Sec. 4. AS 44.42.065(a) is amended to read: 19 (a) The department shall, at least once every seven years, perform an energy 20 audit of each public building and public school building. An energy audit 21 performed under this section to determine potential savings must meet the 22 minimum standards of an American Society of Heating, Refrigerating and Air- 23 Conditioning Engineers Level 1 in-person or virtual energy audit. 24 * Sec. 5. AS 44.42.065(c) is amended to read: 25 (c) In this section, 26 (1) "energy audit" means a determination of 27 [(1)] the energy 28 (A) consumption characteristics of a building, including the 29 size, type, and rate of energy consumption of major energy-consuming systems 30 of the building and the climate characterizing the region where the building is 31 located; and

01 (B) [(2) A DETERMINATION OF THE ENERGY] 02 conservation and cost savings likely to result from appropriate energy- 03 conserving maintenance and operating procedures and modifications, including 04 the purchase and installation of energy-related fixtures; 05 (2) "public school" has the meaning given in AS 14.25.220, but 06 does not include a charter school as defined in AS 14.03.290. 07 * Sec. 6. AS 44.42.065 is amended by adding a new subsection to read: 08 (d) The department shall, if requested by the Alaska Energy Authority, 09 coordinate with the Alaska Energy Authority to perform energy audits of community 10 facilities under AS 44.83.088. 11 * Sec. 7. AS 44.42.067(a) is amended to read: 12 (a) Not later than January 1, 2026 [JANUARY 1, 2020], the department shall 13 work with other state agencies to retrofit at least 25 percent of all public facilities, 14 starting with those it determines are the least energy efficient, if the department 15 determines that retrofitting the public facilities will result in a net savings in energy 16 costs to the state within 15 years after completion of the retrofits for a public facility 17 and if funding for the retrofits is available. 18 * Sec. 8. AS 44.42.067(e) is amended to read: 19 (e) In this section, "public facility" means a facility owned and controlled by 20 the state for governmental, educational, [GOVERNMENT] or public use that is 21 5,000 [10,000] square feet or more and is not a legislative building or court building. 22 * Sec. 9. AS 44.83 is amended by adding a new section to read: 23 Sec. 44.83.088. Energy audits. (a) The authority shall coordinate with the 24 Department of Transportation and Public Facilities and the Alaska Housing Finance 25 Corporation, if appropriate, at least once every seven years, to perform an energy audit 26 on each community facility for which a utility receives power cost equalization under 27 AS 42.45.110(b). The requirement under this section may be waived for a community 28 facility that refuses an energy audit. 29 (b) The authority shall include in each energy audit required by (a) of this 30 section recommendations for the corrective measures described in AS 44.42.065(b). 31 (c) The authority shall work with an owner or operator of a community facility

01 for which a utility receives power cost equalization under AS 42.45.110(b) to identify 02 state, federal, or other grant or loan programs, or to coordinate energy service 03 performance contracts, to fund energy audits or retrofits. 04 (d) In this section, "energy audit" has the meaning given in AS 44.42.065(c). 05 * Sec. 10. AS 44.88 is amended by adding a new section to read: 06 Sec. 44.88.179. Rapid economic recovery office. (a) The authority shall 07 create a rapid economic recovery office to facilitate the state energy policy described 08 in AS 44.99.115(b) and encourage private investment in energy upgrades at state 09 facilities and public schools. 10 (b) The rapid economic recovery office shall periodically review energy audits 11 of state facilities and public schools, identify facility retrofit projects that may be 12 bundled, market bundled facility retrofit projects to lenders, and coordinate with the 13 Department of Transportation and Public Facilities to facilitate, support, and contract 14 for bundled facility retrofit projects. 15 * Sec. 11. AS 44.99.115 is amended by adding a new subsection to read: 16 (b) It is a goal of the state energy policy that, by 2026, at least 50 percent of 17 the energy used by the state and state-funded facilities be obtained from renewable 18 energy sources. Each year, the Alaska Energy Authority shall request from each state 19 agency or state-funded facility, and each state agency or state-funded facility shall 20 provide, an estimate of the percentage of energy the state agency or state-funded 21 facility obtains from a renewable energy source. In this subsection, 22 (1) "renewable energy" means energy from wind; solar; geothermal; 23 wasteheat recovery; hydrothermal; wave; tidal; river in-stream; hydropower; low- 24 emission nontoxic biomass based on solid or liquid organic fuels from wood, forest, 25 and field residues, or animal or fish products; landfill gas; digester gas; or a heat 26 pump; 27 (2) "state-funded facility" means a 28 (A) public school building; in this subparagraph, "public 29 school" has the meaning given in AS 14.25.220 but does not include a charter 30 school as defined in AS 14.03.290; and 31 (B) community facility for which a utility receives power cost

01 equalization under AS 42.45.110(b).