03/24/2015 10:15 AM House ENERGY

         HB 118-MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS                                                                     
                                                                                                                                
10:17:05 AM                                                                                                                   
                                                                                                                                
CO-CHAIR COLVER announced that the  first 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."                                                                                               
                                                                                                                                
10:18:44 AM                                                                                                                   
                                                                                                                                
CO-CHAIR   VAZQUEZ  moved   to  adopt   the  proposed   committee                                                               
substitute  (CS)   for  HB  118,  labeled   29-GH1021\W,  Shutts,                                                               
3/21/15, as the work draft.                                                                                                     
                                                                                                                                
10:18:51 AM                                                                                                                   
                                                                                                                                
CO-CHAIR COLVER objected.                                                                                                       
                                                                                                                                
10:18:58 AM                                                                                                                   
                                                                                                                                
GENE THERRIAULT, Deputy Director  for Energy Policy and Outreach,                                                               
Alaska Energy Authority (AEA),  Department of Commerce, Community                                                               
& Economic  Development (DCCED),  reminded the committee  that at                                                               
the hearing  on 3/17/15, two  proposed amendments to HB  118 were                                                               
incorporated into one  motion and adopted.  However,  in order to                                                               
explain how  both amendments  were included in  Version W  of the                                                               
bill,  he addressed  both of  the amendments  separately as  they                                                               
were labeled  on 3/17/15.   The amendment previously  labeled 29-                                                               
GH1021\A. 1, Shutts, 3/11/15 read:                                                                                              
                                                                                                                                
     Page 1, following line 5:                                                                                                  
          Insert a new bill section to read:                                                                                    
       "* Section 1. AS 29.10.200 is amended by adding a                                                                      
     new paragraph to read:                                                                                                     
               (65) AS 29.49 (energy improvement assessment                                                                     
     programs)."                                                                                                                
                                                                                                                                
     Page 1, line 6:                                                                                                            
          Delete "Section 1"                                                                                                  
          Insert "Sec. 2"                                                                                                     
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 10, following line 12:                                                                                                
     Insert a new section to read:                                                                                              
          "Sec. 29.49.890. Application of chapter. This                                                                     
          chapter applies to home rule and general law                                                                          
     municipalities."                                                                                                           
                                                                                                                                
MR. THERRIAULT said the first  part of the foregoing amendment is                                                               
found  in the  proposed CS  on page  1, lines  6 and  7, and  the                                                               
second part appears on page 10,  beginning on line 31; AEA agreed                                                               
that   the  language   of  the   amendment   has  been   properly                                                               
incorporated  into the  bill.   The amendment  previously labeled                                                               
29-GH1021\A.3, Shutts, 3/16/15 read:                                                                                            
                                                                                                                                
     Page 4, lines 9 - 10:                                                                                                      
          Delete "as provided by"                                                                                               
          Insert "required under"                                                                                               
                                                                                                                                
     Page 4, line 14, following "(I)":                                                                                          
          Delete "a"                                                                                                            
                                                                                                                                
     Page 4, line 19:                                                                                                           
          Delete ", including the report required by"                                                                           
          Insert "and the report required under"                                                                                
                                                                                                                                
     Page 4, line 20:                                                                                                           
          Delete "a resolution"                                                                                                 
          Insert "an ordinance"                                                                                                 
                                                                                                                                
     Page 4, line 22:                                                                                                           
          Following "report":                                                                                                   
          Insert "required"                                                                                                     
          Following "AS 29.49.070":                                                                                             
          Insert ", which may be incorporated by reference"                                                                     
                                                                                                                                
     Page 4, lines 25 - 29:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
MR. THERRIAULT directed attention to  Version W, page 4, line 30,                                                               
and stated that the word  "resolution" has been replaced with the                                                               
word "ordinance,"  and on  page 5, lines  5-9, language  has been                                                               
struck.  Again,  AEA agreed that the amendment  has been properly                                                               
incorporated.   The  CS also  includes a  number of  other small,                                                               
stylistic  changes  recommended  by  Legislative  Legal  Services                                                               
(LLS), Legislative Affairs Agency.   Finally, LLS suggested - and                                                               
AEA agreed  - that remaining  questions about the  bill regarding                                                               
the proposed powers  of municipalities could be  addressed in the                                                               
next  committee of  referral, the  House  Community and  Regional                                                               
Affairs  Standing  Committee.   In  that  regard, Mr.  Therriault                                                               
advised  that the  administration has  no intention  to expand  a                                                               
municipality's  power  of  taxation  beyond  that  which  already                                                               
exists.                                                                                                                         
                                                                                                                                
10:22:25 AM                                                                                                                   
                                                                                                                                
CO-CHAIR VAZQUEZ  directed attention to letters  in the committee                                                               
packet from the Alaska Bankers  Association and AEA in support of                                                               
the bill.  She read a  letter from the Alaska Bankers Association                                                               
dated 3/16/15 in part:                                                                                                          
                                                                                                                                
     Mortgage  holders  have  a  provision  that  safeguards                                                                    
     their  interest  starting line  31,  page  6:   Section                                                                    
     29.49.080.  Notice  of  mortgage  holder  required  for                                                                    
     participation.  Before a municipality  may enter into a                                                                    
     written  contract  ...  with a  record  owner  of  real                                                                    
     property  to   impose  an   assessment  to   repay  the                                                                    
     financing of  a qualified  project under  this chapter,                                                                    
     the property owner shall give  the holder of a mortgage                                                                    
     lien on the property at least 30 days' written notice.                                                                     
                                                                                                                                
CO-CHAIR VAZQUEZ  suggested the  following technical change:   by                                                               
certified mail.                                                                                                                 
                                                                                                                                
10:24:08 AM                                                                                                                   
                                                                                                                                
CO-CHAIR COLVER  removed his objection.   Co-Chair  Colver [moved                                                               
to report  CSHB 118, Version  29-GH1021\W, Shutts,  3/21/15], out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying zero  fiscal note.   There being no  objection, CSHB
(ENE)  was reported  out  of the  House  Special Committee  on                                                               
Energy.