03/29/2012 03:00 PM House ENERGY

        HB 323-NONATTAIN AREA HOME HEATING SYSTEM GRANTS                                                                    
                                                                                                                                
3:43:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER announced  that the next order  of business would                                                               
be HOUSE  BILL NO.  323, "An  Act relating  to the  Alaska energy                                                               
efficient  home grant  fund;  and creating  a  grant program  for                                                               
converting  homes in  regions  designated  as particulate  matter                                                               
nonattainment areas to efficient home heating systems."                                                                         
                                                                                                                                
3:44:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TAMMIE   WILSON,   Alaska   State   Legislature,                                                               
clarified  statements   made  by   the  Alaska   Housing  Finance                                                               
Corporation  (AHFC),  Department  of Revenue  (DOR),  during  the                                                               
3/27/12 hearing on  HB 323.  She stated HB  323 applies to owner-                                                               
occupied  housing   units  only,  of  which   there  are  21,410,                                                               
according  to  2010 U.S.  Census  data.   Furthermore,  501  wood                                                               
stoves in  the Fairbanks North  Star Borough (FNSB)  have already                                                               
been  replaced and  2,256  homes have  participated  in the  AHFC                                                               
energy rebate program,  with 324 homes pending, so  they would be                                                               
disqualified for  the program proposed  by HB 323.   In addition,                                                               
940 homes  are disqualified  by their  participation in  the AHFC                                                               
weatherization  program.    Representative  T.  Wilson  said  her                                                               
office  took a  survey of  constituents and  found that  about 40                                                               
percent  have  old   oil  furnaces.    She   concluded  that  the                                                               
$1,000,000  cap on  the appropriation  for  HB 323  is more  than                                                               
sufficient to test the program.                                                                                                 
                                                                                                                                
3:46:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  observed that  the options  in the  bill are                                                               
grants in  the amount of $7,500  to replace a furnace,  or $5,000                                                               
to replace  a wood  stove.  Also,  participation in  this program                                                               
will  disqualify a  homeowner from  participation  in the  energy                                                               
rebate program.   Representative Tuck  pointed out the  intent of                                                               
the legislation  was to achieve  attainment so FNSB is  no longer                                                               
out of compliance with the  Environmental Protection Agency (EPA)                                                               
and to help  people have more energy efficient homes.   He opined                                                               
residents should  not have  to choose  between the  programs, and                                                               
suggested  that  they  could  apply   for  both  programs  for  a                                                               
cumulative amount not to exceed $10,000.                                                                                        
                                                                                                                                
REPRESENTATIVE T. WILSON  said most people who  take advantage of                                                               
the  energy rebate  program  spend  in excess  of  $10,000.   She                                                               
advised that HB 323 should  advance without changes for one year,                                                               
after  which  the  response  to   the  program  and  the  raters'                                                               
experiences can be reevaluated.                                                                                                 
                                                                                                                                
3:49:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON moved to report  the proposed CS for HB 323,                                                               
Version  27-LS1275\I, Kirsch/Nauman,  3/26/12,  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.  There being no  objection, CSHB 323(ENE) was reported out                                                               
of the House Special Committee on Energy.                                                                                       
                                                                                                                                
[Although  the maker  of  the  motion stated  HB  232, the  clear                                                               
intent of the committee was to move HB 323.]                                                                                    
                                                                                                                                
3:50:04 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:50 p.m. to 3:55 p.m.