Legislature(2015 - 2016)BARNES 124
03/28/2015 10:00 AM House COMMUNITY & REGIONAL AFFAIRS
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB149 | |
| HB118 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 149 | TELECONFERENCED | |
| += | HB 118 | TELECONFERENCED | |
HB 118-MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS
10:22:24 AM
CHAIR TILTON announced that the final order of business would be
HOUSE BILL NO. 118, "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." [Before the committee is CSHB
118(ENE).]
10:22:49 AM
REPRESENTATIVE SEATON moved to adopt CSHB 118, Version 29-
GH1021\H, Shutts, 3/25/15, as the working document. There being
no objection, Version H was adopted.
10:23:12 AM
HEATH HILYARD, Staff, Alaska State Legislature, explained that
although Version H is substantively similar [to CSHB 118(ENE)],
Version H does address Title 29 questions that were brought
forth in a March 21, 2015, Legislative Legal Services
memorandum. He pointed out that the language in CSHB 118(ENE)
regarding extraterritorial jurisdiction and public hearing
requirements were removed as Ms. Shutts believes those two
references are unnecessary under the provisions of Title 29.
Although Representative Vazquez had asked in her memorandum [to
Legislative Legal Services] questions regarding applicability
and general law municipalities, no changes were made with regard
to general law municipalities because the drafter felt they were
unnecessary given the provisions of AS 29.35.210(c) and (d).
The only changes to CSHB 118(ENE) were deletions to language on
page 3, lines 15-17, which refers to the extraterritorial
jurisdiction, and on page 4, lines 20-21, which refers to public
hearings.
10:25:17 AM
GENE THERRIAULT, Deputy Director, Energy Policy, Alaska Energy
Authority (AEA), Department of Commerce, Community & Economic
Development (DCCED), noted that he was aware of the Legislative
Legal Services memorandum and agreed with the fix embodied in
Version H. With regard to the deletion of the extraterritorial
powers of the borough language on page 3, lines 15-17, of CSHB
118(ENE), Mr. Therriault agreed that boroughs should discuss
areas outside of its jurisdiction.
10:26:48 AM
The committee took a brief at ease.
10:27:46 AM
MR. THERRIAULT explained that the deletion of the language on
page 3, lines 15-17, of CSHB 118(ENE) makes it clear that for
purposes of implementing the Property Assessed Clean Energy
(PACE) program a local government can't apply it to anything
outside of its jurisdictional territory. The second deletion on
page 4, lines 20-21, of CSHB 118(ENE) removes language requiring
a description of each of the programs included and additional
public comment and process prior to any changes. The
aforementioned was removed as the drafters felt it was extra
language because when a municipality initiates a PACE program
through an ordinance process, another ordinance process is
required to change that ordinance. The aforementioned would
require a first, second, and third reading, he explained.
10:30:02 AM
MR. THERRIAULT provided the committee with a letter from AEA
dated March 27, 2015, which responds to a number of questions
brought forth in the previous House Community and Regional
Affairs Standing Committee meeting.
10:30:31 AM
The committee took an at ease from 10:30 a.m. to 10:36 a.m.
10:36:56 AM
REPRESENTATIVE SEATON noted his appreciation of the agency
speaking with the Alaska Housing Finance Corporation (AHFC) as
it holds many of the properties in Alaska, but pointed out that
AHFC isn't sure how the people who hold their bonds would
respond. He related that he is comfortable leaving the
legislation to only address commercial buildings, but mentioned
that AHFC may find another financing opportunity in the future.
10:38:22 AM
REPRESENTATIVE DRUMMOND acknowledged the analysis for mixed use
properties illustrates it's a national challenge, and thus she
opined that there is no reason for Alaska to address something
for a relatively small number of buildings in the state.
10:38:57 AM
REPRESENTATIVE HUGHES continued to express concern that the
legislation allows for municipalities to create winners and
losers [based on where the boundaries are established]. She
then related her understanding that in Alaska boroughs assess
and collect property taxes, and thus if a borough wanted to
implement a PACE program but a city within the borough did not,
a commercial entity within the city wouldn't need to work with
the city but rather would just work with the borough.
Representative Hughes said she felt it was acceptable for a
smaller government within a larger local government to have the
option to opt out. However, she said she didn't believe the
larger local government should be able to section out areas
[within the larger area] but rather the larger local government
should offer the program to the entire area. Representative
Hughes reiterated concern with providing a mechanism in which
[winners and losers could be created by the location of the
boundaries]. Furthermore, she opined that it's not fair to the
private sector. Moreover, she said she couldn't grasp a good
reason to [provide the PACE program] in this way. Perhaps Texas
counties and cities have property tax assessment and collection
powers. She then suggested exploring the option of opting-out
at the local level.
10:43:30 AM
CHAIR TILTON announced that HB 149 would be set aside to address
concerns. She then noted that the committee packet includes a
letter from the Alaska Municipal League (AML) that states AML's
support for HB 149.
10:44:16 AM
MR. THERRIAULT mentioned that he will continue to work with
Representative Hughes, but expressed the need to speak with
Kathie Wasserman, Executive Director, AML, regarding why the
legislation was crafted to provide such local government control
with the boundaries.
10:44:53 AM
REPRESENTATIVE SEATON related he shares Representative Hughes'
concern. He then directed attention to page 8, line 23, which
allows municipalities wanting to do a pilot project the ability
to use "reserves established by the municipality from grants,
bonds, or net proceeds or other lawfully available funds". A
pilot project couldn't proceed if every commercial building in
the borough can qualify for the proposed [PACE financing] rather
something would have to be established, he said.
10:46:06 AM
REPRESENTATIVE HUGHES questioned whether Representative Seaton
is referring to a situation in which a borough with reserves
that were collected areawide could use those reserves for the
PACE program, although a city within the borough may be left out
of the program.
REPRESENTATIVE SEATON explained that the reserves to which the
legislation is referring does not necessarily refer to tax
reserves. In fact, the language specifies that bonds or notes
issued for [PACE financing] can't be a general obligation bond,
and thus has to be funding that is in reserves from lawful
purposes. If a municipality wanted to utilize PACE financing
without committing everything, they couldn't use the reserves
function because the municipality would commit every area of the
entire borough. Representative Seaton said he wasn't sure why
the option is listed as an opportunity, but said he could see
the need to start small. He clarified that he wanted it to be a
discussion as to whether it's an issue or not.
10:48:46 AM
REPRESENTATIVE NAGEAK recalled his time as an assemblyman and
mayor when he looked at reserves to make transfers or changes.
He then noted that using reserves require public meetings.
10:49:44 AM
REPRESENTATIVE HUGHES surmised that the language "lawfully
available funds" on page 8, line 24, provides assurance that
funds intended for an entire municipality aren't being used for
only one region [within the municipality].
10:50:55 AM
REPRESENTATIVE NAGEAK assured everyone that regions [within a
municipality not included in the PACE financing] would be up in
arms.
10:51:09 AM
MR. THERRIAULT agreed that [the bonds or notes] have to be
legally available. Furthermore, the local governments do have
specific limitations on those funds generated region-wide and
how they can be spent. As Representative Seaton indicated, a
municipality with grant language allowing grant funds to be used
for a pilot project would be available; however those funds
weren't generated on an areawide basis. In fact, last year AEA
on behalf of the Fairbanks North Star Borough applied for a U.S.
Department of Energy grant that would've come through AEA, the
money was going to the Fairbanks North Star Borough to be the
pilot program and flesh out how the program would work. If the
grant had been awarded and the pilot program established, the
nuances of structuring an ordinance to initiate PACE and bring
in the commercial businesses and lenders would have provided an
example. However, the grant was not obtained.
10:52:55 AM
CHAIR TILTON announced that HB 118 would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 118, Version H.pdf |
HCRA 3/28/2015 10:00:00 AM |
HB 118 |
| HB 149 - Updated Flow Chart 3-27-15.pdf |
HCRA 3/28/2015 10:00:00 AM |
HB 149 |