2015-02-18                     Senate Journal                      Page 0255
SB 56                                                                                                                         
SENATE BILL NO. 56 BY THE SENATE 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 Community and Regional                                                              
Affairs and Finance Committees.                                                                                                 
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Commerce, Community                                                                     
  and Economic Development                                                                                                      
                                                                                                                                
Governor's transmittal letter dated February 17:                                                                                
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
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.                                                                      
                                                                                                                                

2015-02-18                     Senate Journal                      Page 0256
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                                                                 
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