Legislature(2011 - 2012)BARNES 124
03/15/2011 03:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| HB36 | |
| HB37 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 36 | TELECONFERENCED | |
| *+ | HB 37 | TELECONFERENCED | |
HB 36-SMALL BUSINESS ENERGY EFFICIENCY GRANTS
3:06:14 PM
CO-CHAIR PRUITT announced that the first order of business would
be HOUSE BILL NO. 36," An Act establishing the Alaska energy
efficient small business grant fund and program."
3:08:22 PM
JENNIFER SENETTE, Staff for Representative Kurt Olson, Alaska
State Legislature, stated that HB 36 "mirrors" the existing
successful Alaska Housing Finance Corporation (AHFC) energy
rebate program. The existing energy rebate program benefits
residential buildings and HB 36 intends to establish an energy
rebate program to benefit small businesses, such that small
business owners wishing to make energy efficiency improvements
on their businesses can receive a rebate for some of their
expenditures. In a manner similar to the residential program,
an energy rater will evaluate the business structure before and
after the improvements are made, thus the rebate is based on the
amount of energy efficiency gained. Furthermore, HB 36 includes
guidelines that businesses must meet as follows: 1. The
assessed value of the structure does not exceed $1 million; 2.
The structure must be owned by a business owner licensed in
Alaska and who does not have outstanding liabilities to the
state; 3. The structure must meet the additional criteria set by
AHFC. Ms. Senette explained that extending the energy
efficiency rebates to the commercial sector will encourage small
businesses in the state to embrace energy efficiency. She
acknowledged that some details of the proposed legislation are
yet to be worked out, such as how the program will be
capitalized.
3:11:42 PM
REPRESENTATIVE OLSON further explained that a committee
substitute (CS) is being prepared; one change under
consideration is to base the evaluation of a structure on its
square footage - instead of its assessed value - in order to
better serve rural communities. He urged the chair to hear
public testimony, but to hold the bill in committee.
REPRESENTATIVE SADDLER asked why rebates will be extended to new
construction.
3:13:17 PM
MS. SENETTE acknowledged that most new buildings are built with
energy efficiency in mind, however, the bill follows the
parameters set by AHFC's home energy rebate program, and new
homes are included in that program.
REPRESENTATIVE SADDLER then asked whether the bill will
authorize the state to provide second mortgages to businesses.
CARY BOLLING, Government Relations Officer, Alaska Housing
Finance Corporation (AHFC), Department of Revenue (DOR),
responded that the present home energy rebate program has a
separate component that allows an applicant to apply for a
$30,000 loan for energy-saving improvements. After the work is
done, the rebate is applied to the loan balance. However, AHFC
does not have a loan program for businesses at this time. In
further response to Representative Saddler, he said AHFC would
undertake a similar program for businesses if one were
appropriated by the legislature.
3:16:23 PM
REPRESENTATIVE SADDLER called attention to page 2, line 11, of
the bill and read, "None of the applicants for the grant has
outstanding liabilities to the state." He asked what the
sponsor intended by this language.
REPRESENTATIVE OLSON indicated he was unsure; however, it is
prudent to ensure that any previous liabilities to the state are
current.
REPRESENTATIVE PETERSEN asked whether a student loan from the
state would disqualify an applicant.
3:17:53 PM
MS. SENETTE offered to further define the language.
3:18:20 PM
REPRESENTATIVE PETERSEN asked whether a large chain store like
Wal-Mart would be able to apply if it had a small building.
MS. SENETTE indicated yes, if it met the guidelines.
REPRESENTATIVE OLSON opined the fiscal note would grow if
applicants are qualified on their assets and liabilities. His
personal experience with AHFC's home energy program was
favorable, and his intent by this legislation is to extend the
same benefits to small businesses.
3:20:22 PM
REPRESENTATIVE PETERSEN agreed with the idea, and asked whether
the legislation needs to define "a small business." The federal
definition of 100 employees may not apply in Alaska.
REPRESENTATIVE OLSON recalled legislation on this issue was to
be included in the "omnibus energy bill" that passed last year,
and offered to reassign HB 36 to the energy committee for
further refinement.
REPRESENTATIVE PETERSEN reminded the committee AHFC estimated an
additional $75 million was required to continue its existing
rebate and weatherization programs.
3:23:28 PM
SEAN SKALING, Program Manager for Energy Efficiency, Alaska
Energy Authority (AEA), Department of Commerce, Community &
Economic Development (DCCED), informed the committee AEA has in
place a commercial energy audit program funded by the American
Recovery and Reinvestment Act of 2009 (ARRA). During the six-
week application period, one hundred and thirty-five
applications were received. He explained that this program will
subsidize the cost of an energy audit for an amount from $1,000-
$6,000 on a commercial building up to one hundred and twenty-
five thousand square feet in size. Mr. Skaling opined the
number of applications received indicates that there is a need
for energy-related programs for the privately-owned commercial
sector.
3:26:35 PM
REPRESENTATIVE PETERSEN asked whether rental property would
qualify for the small business energy rebate program established
by HB 36.
MS. SENETTE said she was unsure.
REPRESENTATIVE SADDLER supported the idea of the bill.
3:27:26 PM
[HB 36 was held for further testimony.]
3:27:48 PM
The committee took an at-ease from 3:27 p.m. to 3:27 p.m.
3:30:34 PM