04/15/2010 08:30 AM House FINANCE

CS FOR SENATE BILL NO. 220(FIN)                                                                                               
                                                                                                                                
     "An   Act  relating   to   energy  efficiency,   energy                                                                    
     conservation,  and alternative  energy, to  an emerging                                                                    
     energy technology fund,  to the lease of  state land to                                                                    
     a  public  electric  utility,  to  the  Alaska  heating                                                                    
     assistance program,  to state  energy use data,  to the                                                                    
     Southeast  energy fund,  to  nuclear energy  production                                                                    
     and facilities,  to the  definition of  'power project'                                                                    
     or  'project'  as it  relates  to  rural and  statewide                                                                    
     energy programs  and the  Alaska Energy  Authority, and                                                                    
     to  the  definition  of  'alternative  energy  system';                                                                    
     establishing  an  Alaska  energy  efficiency  revolving                                                                    
     loan fund;  directing the Department  of Transportation                                                                    
     and  Public  Facilities  to prepare  a  report  on  the                                                                    
     feasibility of  using compressed  natural gas  to power                                                                    
     vehicles  in the  state,  including  vehicles owned  or                                                                    
     operated by the state, and  including in that study, if                                                                    
     warranted, a  pilot program proposal for  powering some                                                                    
     vehicles   owned  or   operated  by   the  state   with                                                                    
     compressed  natural gas;  authorizing  and relating  to                                                                    
     the  issuance of  bonds by  the Alaska  Housing Finance                                                                    
     Corporation;   relating  to   a   report  regarding   a                                                                    
     municipal energy improvements  financing program and to                                                                    
     an energy  report by  the Office  of the  Governor; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
8:03:54 PM                                                                                                                    
                                                                                                                                
SENATOR BILL  WIELECHOWSKI explained the bill,  which he saw                                                                    
as a prime  example of bipartisan workmanship  with a modest                                                                    
fiscal note of  $624 thousand. He pointed out  that the bill                                                                    
will  save the  state money  over  the long  term. The  bill                                                                    
provides  an  example of  lowering  energy  costs by  making                                                                    
simple  investments.  Businesses  will benefit  from  a  new                                                                    
interest loan program that will increase profitability.                                                                         
                                                                                                                                
SENATOR    LESIL    MCGUIRE   complemented    Representative                                                                    
Fairclough for her work on  the legislation. She highlighted                                                                    
the policy passed  from the house including  the adoption of                                                                    
Alaska   Housing   Finance   Corporation's   (AHFC)   energy                                                                    
efficiency  revolving loan  fund. The  veto on  the stimulus                                                                    
money   was  converted   to  $250   million  in   bonds  for                                                                    
capitalization  of the  fund. She  mentioned changes  in the                                                                    
area  of nuclear  energy. Old  references to  nuclear energy                                                                    
created a second layer of  bureaucracy leading to reflection                                                                    
of statutes to allow nuclear  projects to go forward through                                                                    
the federal  process. The  emerging energy  technology grant                                                                    
is one aspect  of the bill capitalized at  $2.3 million. She                                                                    
mentioned the Low Income  Energy Assistance Program (LIHEAP)                                                                    
whose  benefits are  linked to  the price  of oil.  When the                                                                    
price  of  oil  soars,  costs  increase  for  Alaskans.  She                                                                    
explained  the  need for  a  list  of regulations  from  the                                                                    
governor, directing  the legislature about  the coordination                                                                    
of the  current plans,  to avoid duplication.  She discussed                                                                    
the feasibility study on the  use of compressed natural gas.                                                                    
The old  alternative energy loan  program is revised  in the                                                                    
legislation.                                                                                                                    
                                                                                                                                
8:15:11 PM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas  expressed appreciation for the  help from                                                                    
Senator  McGuire  and  the other  legislators  for  visiting                                                                    
Haines. He asked if there  was allowance for general fund to                                                                    
be  used  as  a  match  in  the  emerging  technology  fund.                                                                    
Senator  McGuire answered  no. She  explained that  the fund                                                                    
will  be  capitalized with  the  initial  $2.3 million.  The                                                                    
grants will be awarded based on criteria.                                                                                       
                                                                                                                                
MICHAEL POWLOWSKI,  STAFF, LESIL  MCGUIRE stated  that there                                                                    
is no  prohibition against using  general funds  as matching                                                                    
funds. He mentioned  that the criterion for  the awarding of                                                                    
the grants was listed on Lines 4 through 15.                                                                                    
                                                                                                                                
Vice-Chair  Thomas  stated  that the  community  in  Yakutat                                                                    
would be supportive of the language.                                                                                            
                                                                                                                                
Co-Chair Stoltze recalled similar past efforts.                                                                                 
                                                                                                                                
Representative Gara  commended the bipartisan nature  of the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair  Hawker asked  Mr. Pawlowski  to  walk through  the                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
STEPHAN   HAAGENSON,  EXECUTIVE   DIRECTOR,  ALASKA   ENERGY                                                                    
AUTHORITY, stated that the implementation  is to support the                                                                    
renewable   energy  fund.   He  noted   that  the   emerging                                                                    
technology  fund allows  production  of  areas like  Yakutat                                                                    
with untapped resources.                                                                                                        
                                                                                                                                
8:21:22 PM                                                                                                                    
                                                                                                                                
SARA FISHER-GOAD,  DEPUTY DIRECTOR, ALASKA  ENERGY AUTHORITY                                                                    
commented on  the double  counting of  the fiscal  note. She                                                                    
noted  that the  Alaska Energy  Authority (AEA)  fiscal note                                                                    
has  the cost  for the  program while  the AIDA  fiscal note                                                                    
includes interagency receipts.                                                                                                  
                                                                                                                                
Co-Chair Hawker  stated that the duplicate  appropriation is                                                                    
noted in the fiscal note.                                                                                                       
                                                                                                                                
8:22:39 PM                                                                                                                    
                                                                                                                                
MARY    SOROKY,    LEGISLATIVE   LIASON,    DEPARTMENT    OF                                                                    
TRANSPORTATION  AND PUBLIC  FACILITIES,  testified that  the                                                                    
Department of Transportation  and Public Facilities (DOT/PF)                                                                    
is asking  for funding for  one engineer architect  who will                                                                    
lead the  retrofit program for state  buildings. The request                                                                    
is  for   $90  thousand   for  the  feasibility   study  for                                                                    
compressed natural  gas for state vehicles.  Co-Chair Hawker                                                                    
asked  if the  outcomes were  desirable. Ms.  Soroky replied                                                                    
that  the  department  believed   that  the  revolving  loan                                                                    
program will  be beneficial to the  municipalities and state                                                                    
government agencies that choose to access it.                                                                                   
                                                                                                                                
Co-Chair  Hawker asked  that all  agencies look  through the                                                                    
amendments and the fiscal impact.                                                                                               
                                                                                                                                
Representative Gara  asked if Ms. Soroky  would be available                                                                    
for future discussions. Ms. Soroky responded yes.                                                                               
                                                                                                                                
Co-Chair Hawker closed public testimony.                                                                                        
                                                                                                                                
8:25:42 PM                                                                                                                    
                                                                                                                                
SB  220  Was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.