01/27/2022 10:15 AM House ENERGY

        HB 227-MUNI ENERGY IMPROVEMNT ASSESSMENT PROGRAM                                                                    
                                                                                                                                
10:20:08 AM                                                                                                                   
                                                                                                                                
CHAIR SCHRAGE announced that the  only order of business would be                                                               
HOUSE  BILL NO.  227, "An  Act relating  to municipal  energy and                                                               
resilience improvement assessment programs;  and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
10:20:27 AM                                                                                                                   
                                                                                                                                
CHAIR SCHRAGE opened public testimony on HB 227.                                                                                
                                                                                                                                
10:20:48 AM                                                                                                                   
                                                                                                                                
RYAN MAE  LUCAS, Owner/Broker, Regal North  Commercial, testified                                                               
in support of  the commercial property assessed  clean energy (C-                                                               
PACE) amendments proposed under HB  227.  She highlighted the new                                                               
construction  aspect of  the  bill  and noted  that  some of  the                                                               
buildings in  Anchorage are 30-plus  years old, and  sometimes it                                                               
does not make economic sense  to retrofit these older structures.                                                               
She encouraged  the practical changes  that would  eliminate "the                                                               
bottleneck" and make it possible "to close and execute."                                                                        
                                                                                                                                
10:22:44 AM                                                                                                                   
                                                                                                                                
TOM   NEUKRANZ,   Agent,   Gold   Specific   Capital,   expressed                                                               
enthusiastic support  of the amendment  proposed under HB  227 to                                                               
include new construction.  He  added that he supports the ability                                                               
to use C-PACE in new construction.                                                                                              
                                                                                                                                
10:25:10 AM                                                                                                                   
                                                                                                                                
TOM  BENKERT,  KI  Energy,  LLC,   spoke  about  the  benefit  to                                                               
customers in  obtaining financing on  reasonable terms.   He said                                                               
he has  wished for the  amendments to statute [proposed  under HB
]  for about  three  years  and is  pleased  HB  227 is  under                                                               
consideration.  He  pointed out projects that  would benefit from                                                               
the changes such as the  extension of useful life, which reflects                                                               
new measures for  resiliency.  Further, he said  the expansion of                                                               
the use of  funds would allow for more  flexibility in financing.                                                               
He said  Alaska does not  have tools that incentivize  lenders to                                                               
support desired  projects, and HB  227 would improve  the options                                                               
available.   He shared  his willingness  to answer  any questions                                                               
regarding  C-PACE.    He  stated his  support  of  the  amendment                                                               
proposed under HB 227.                                                                                                          
                                                                                                                                
10:28:53 AM                                                                                                                   
                                                                                                                                
MARK  BEGICH   testified  that  he  owns   and  operates  several                                                               
companies, one  of which  is a  redevelopment company  that turns                                                               
deteriorated  properties in  Anchorage  into premier  properties,                                                               
and  C-PACE  is critical  in  making  properties more  efficient,                                                               
which  results  in money  saved;  it  works in  conjunction  with                                                               
private capital  raised.   He said the  proposed bill  would help                                                               
make the projects more of  a reality by adding language regarding                                                               
new  construction  financing,  including  market  value,  and  by                                                               
keeping money  in the state that  would increase local hire.   He                                                               
said  he  thinks HB  227  would  benefit  the private  sector  in                                                               
increasing economic development.                                                                                                
                                                                                                                                
10:31:41 AM                                                                                                                   
                                                                                                                                
JANE LIU, Global Pacific Capital,  LLC, noted that in addition to                                                               
multi-family  projects,  large  industrial projects  can  benefit                                                               
from  C-PACE,  and those  larger  projects  are  on the  rise  in                                                               
Alaska; therefore,  she surmised that  it would be a  sector that                                                               
could take advantage of the  C-PACE financing [addressed under HB
].                                                                                                                           
                                                                                                                                
10:32:47 AM                                                                                                                   
                                                                                                                                
CHAIR SCHRAGE closed  public testimony on HB 227.   He noted that                                                               
the committee  had not received  any amendments for  the proposed                                                               
legislation.                                                                                                                    
                                                                                                                                
10:33:32 AM                                                                                                                   
                                                                                                                                
SHAINA   KILCOYNE,   Energy   Manager,  Solid   Waste   Services,                                                               
Municipality    of   Anchorage,    affirmed   a    request   from                                                               
Representative Rauscher  to call him to  answer further questions                                                               
sometime following the close of the meeting.                                                                                    
                                                                                                                                
10:33:55 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ZULKOSKY moved  to report HB 227  out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.  There being no objection,  HB 227 was reported out of the                                                               
House Special Committee on Energy.