2015-02-18                     House Journal                      Page 0238
HB 118                                                                                                                        
HOUSE BILL NO. 118 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
    "An Act adopting the Municipal Property Assessed Clean Energy                                                               
    Act; authorizing municipalities to establish programs to impose                                                             
    assessments for energy improvements in regions designated by                                                                
    municipalities; imposing fees; and providing for an effective                                                               
    date."                                                                                                                      
                                                                                                                                
was read the first time and referred to the House Special Committee on                                                          
Energy and the Community & Regional Affairs and Finance                                                                         
Committees.                                                                                                                     
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Commerce, Community, & Economic Development                                                                  
                                                                                                                                
The Governor's transmittal letter dated February 17, 2015, follows:                                                             
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to establishing a                                                               
municipal property assessed clean energy program.                                                                               
                                                                                                                                
Implementing energy efficiency measures in commercial buildings                                                                 
offers an opportunity for owners to reduce energy consumption. This                                                             
not only can reduce operating costs to the building owner, but also can                                                         
reduce energy demand on local utilities and improve the reliability of                                                          
local energy and electrical systems. Financing energy efficiency                                                                
measures can be a substantial barrier for building owners.                                                                      
                                                                                                                                
The bill would empower local governments to establish property                                                                  
assessed clean energy programs. These local programs would enable                                                               
building owners to more easily borrow money from either the                                                                     
municipality or a private lender to implement energy efficiency                                                                 

2015-02-18                     House Journal                      Page 0239
measures by making property tax assessments available to ensure                                                                 
repayment of the debt obligation. Municipalities may issue bonds to                                                             
fund a municipal lending. Building owners would voluntarily allow                                                               
the local municipality to impose a tax assessment on their property.                                                            
The tax assessment would be payable annually with property taxes,                                                               
with the proceeds used to repay the lender or bond holders over the                                                             
full life of the loan. Because the lender or bondholder would have a                                                            
more assured revenue source for loan repayment, the financing costs                                                             
should be reduced. The net effect of the program is that commercial                                                             
building owners will be able to more easily implement energy                                                                    
efficiency measures. The owners will reap benefits from reduced                                                                 
energy and financing costs associated with the energy efficiency                                                                
improvements.                                                                                                                   
                                                                                                                                
The program would be known as the Municipal Property Assessed                                                                   
Clean Energy Act.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"