2010-01-19                     Senate Journal                      Page 1239
SB 223                                                                                                                        
SENATE BILL NO. 223 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act authorizing and relating to the issuance of                                                                   
          bonds by the Alaska Housing Finance Corporation;                                                                      
          establishing the Alaska energy efficiency revolving                                                                   
          loan fund and relating to the fund; authorizing                                                                       
          municipalities and the State of Alaska to borrow                                                                      
          money from the Alaska Housing Finance Corporation                                                                     
          for the purposes of the Alaska energy efficiency                                                                      
          revolving loan fund; and providing for an effective                                                                   
          date."                                                                                                                
                                                                                                                                
was read the first time and referred to the Senate Special Committee                                                            
on Energy and Finance Committee.                                                                                                
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Revenue                                                                                 
 Fiscal Note No. 2, zero, Department of Transportation and Public                                                               
      Facilities                                                                                                                
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Stevens,                                                                                                         
                                                                                                                                
Under the authority of Art. III, Sec. 18, of the Alaska Constitution, I                                                         
am transmitting a bill authorizing and relating to the issuance of bonds                                                        
by the Alaska Housing Finance Corporation; establishing the Alaska                                                              
energy efficiency revolving loan fund and relating to the fund; and                                                             
authorizing municipalities and the State of Alaska to borrow money                                                              
from the Alaska Housing Finance Corporation for the purposes of the                                                             
Alaska energy efficiency revolving loan fund.                                                                                   

2010-01-19                     Senate Journal                      Page 1240
The Federal American Recovery and Reinvestment Act of 2009                                                                      
appropriated $28.3 million to Alaska for the State Energy Program. Of                                                           
that, I recommended spending $18 million to make energy efficiency                                                              
improvements to public buildings. The bill leverages that $18 million                                                           
by allowing the AHFC to issue up to $250 million in bonds for the                                                               
purpose of financing energy efficiency improvements to state and                                                                
municipal buildings in the state.                                                                                               
                                                                                                                                
The bill creates the Alaska energy efficiency revolving loan fund                                                               
within AHFC. All earnings and loan payments would be retained by                                                                
the fund for future loans. Money and other assets of the Alaska energy                                                          
efficiency revolving loan fund may be used to make loans to                                                                     
municipal governments or to state agencies for the purpose of                                                                   
financing energy efficiency improvements to buildings owned by                                                                  
municipalities in the state or by the State of Alaska.                                                                          
                                                                                                                                
As an example, a municipal government or school district would have                                                             
an energy audit done on its building. That audit might determine that                                                           
$120,000 in work would make the building more energy efficient and                                                              
that those improvements would reduce energy costs by $20,000 a year.                                                            
The local government could take out a loan with the AHFC to do the                                                              
work and then repay the loan with the funds made available due to the                                                           
savings achieved through the energy efficiency improvements. After                                                              
the debt is settled, those funds would be available to that government                                                          
for other purposes or to reduce the size of the budget.                                                                         
                                                                                                                                
This program will result in less energy used by public buildings as                                                             
well as ultimately saving public money. Alaska's economy will also                                                              
benefit from contracted projects, and will put Alaskans to work.                                                                
                                                                                                                                
I urge your prompt and favorable consideration of this bill.                                                                    
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor