Legislature(2015 - 2016)CAPITOL 106
03/05/2015 10:15 AM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HB78 | |
| HB58 | |
| HB118 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 58 | TELECONFERENCED | |
| *+ | HB 118 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 78 | TELECONFERENCED | |
HB 118-MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS
12:00:11 PM
CO-CHAIR VAZQUEZ 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."
12:00:19 PM
EMILY FORD, Energy Policy and Outreach Manager, Alaska Energy
Authority (AEA), Department of Commerce, Community & Economic
Development (DCCED), provided a PowerPoint presentation entitled
"HB 118 Property Assessed Clean Energy (PACE)," and dated
3/5/15. Ms. Ford informed the committee HB 118 creates a
property-assessed clean energy program known as Commercial PACE.
The program applies to commercial property, and allows property
owners to finance qualifying energy efficiency improvements over
time through a voluntary assessment on their property tax bill.
The legislation provides: voluntary participation by
municipalities and commercial business owners; mortgage holder
consent required before applications are approved and
assessments are placed; improvements can include energy
efficiency upgrades, renewable energy, conversion to natural
gas, high-efficiency boilers, and more. The repayment
obligation transfers with the sale of the property (slide 2).
Energy efficiency upgrades are financed by capital secured by a
primary lien on the property, and lower-interest capital and
favorable repayment terms can be raised from the private sector.
Ms. Ford said the goal is to lower energy costs, thus PACE would
allow for longer repayment periods and for the use of
traditional lending sources. In Alaska, PACE provides
consistency with state energy goals, including energy efficiency
and renewable energy targets (slide 3). Thirty-one states have
authorized PACE programs, and state legislatures must provide
authority for local governments to expand their taxing
authority. Municipalities are to create the program and select
financing models, using resources available from the U.S.
Department of Energy (slide 4). The bill includes statutory
language that provides consistency statewide for municipalities
that choose to opt-in to the program, which can be done through
municipal bonds, a private sector model, or a hybrid model that
would identify all funding sources (slide 5). Further, HB 118
is authorizing legislation for local governments that collect
property taxes and choose to create a PACE program and allow
commercial property owners to opt-in to the program; there are
24 eligible local communities in Alaska representing a total
population of 639,314 (slide 6). Turning to the sectional
analysis of the bill, she highlighted the following: section 1
amends AS 29 by a new proposed chapter AS 29.49: Municipal
Property Assessed Clean Energy Act, which would allow for
property tax assessments to be added for financing of qualified
projects on real property, and would require a written contract
between the local government and the record owner of the real
property (slide 7). Proposed AS 29.49.040: Establishes the
program, and directs agreements related to financing,
assessments, and other costs (slide 8). Proposed AS 29.49.060:
Defines the Procedure to Create the Program, and requires that
the governing body of the municipality adopt a resolution
containing certain elements (slide 9). Proposed AS 29.49.060
also requires the municipality to hold a public hearing with
public comment, adopt a resolution, hire and set compensation
for an administrator, and impose fees to offset the costs of
administering the program (slide 10).
12:05:38 PM
MS. FORD further advised proposed AS 29.49.070 details the
requirements for a publically available report including a
description of qualified projects, sample forms and contracts, a
plan to ensure sufficient capital, and guidelines for bonding
and repayment (slide 11). The report must also include a
description of the application process, a method to ensure that
qualified applicants can demonstrate financial ability, the
collection process, lender notice requirements, review
requirements, marketing and education services, quality
assurance and antifraud measures, collection procedures, and the
report must be available to the pubic online and by hardcopy
(slide 12). Proposed AS 29.49.080: Notice to Mortgage Holder
Required, requires proper notice, proposed AS 29.49.090: Review
Required, requires a third-party baseline energy audit and
projected energy savings and that, after completion, the
municipality shall obtain third-party verification (slide 13).
Proposed AS 29.49.110: Contractual Assessment must be Noticed,
requires further notice, and proposed AS 29.49.210: Contractual
Assessments and any Interest or Penalties are Primary Liens on
the Property, requires liens stay with the land and are not
eliminated by foreclosure, penalties and interest may be added
to delinquent installments, and municipalities may recover cost
and expenses to collect delinquent installments. Proposed AS
29.49.130: Collection of Assessments, allows municipalities to
contract with other governing bodies of another taxing unit to
perform assessments and collections (slide 14). Proposed AS
24.49.140: Municipalities may Issue Bonds or Notes to Finance
Qualified Projects, allows municipalities to issue bonds or
notes to finance qualified projects, but they may not be general
obligation bonds and must be secured by payments from the
contractual assessments, municipal reserves, municipal bond
insurance, and any other fund lawfully available for purposes
consistent with this chapter (slide 15). Proposed AS 29.49.150:
Joint Implementation, allows any combination of municipalities
to agree to jointly implement or administer a program or
contract with a third party, and further proposed statutes in
the bill are related to definitions, the short title, and the
effective date.
12:08:51 PM
HB 118 was held over.