Legislature(2009 - 2010)
04/16/2010 10:47 AM House FIN
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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."
8:08:49 PM
MIKE POWLOWSKI, STAFF, SENATOR LESIL MCGUIRE, introduced
himself for the record.
8:09:58 PM AT EASE
8:11:15 PM RECONVIENE
Co-Chair Stoltze solicited discussion of the proposed
amendments.
SENATOR BILL WEILECHOWSKI, SPONSOR, communicated that he
had no objection to the proposed amendments.
SENATOR LESIL MCGUIRE noted no objection to the proposed
amendments.
Vice-Chair Thomas MOVED Amendment 1, 26-LS1197\Y.6, Kane,
4/13/10:
Page 11, line 11:
Delete "or"
Insert "and 42.45.310,"
Page 11, line 12, following "AS 10.25":
Insert "or another electric utility holding
certificate of public convenience and necessity
under AS 42.05"
Co-Chair Stoltze OBJECTED for the purpose of discussion.
Mr. Powlowski stated that the amendment 1 made an important
change to the recipients who were eligible to receive
grants from the southeast energy fund that had been re-
enacted and modified within SB 220. The amendment added
electric utilities holding a certificate of public
convenience or necessity, to the list of entities that
could receive grants under the legislation.
Co-Chair Stoltze WITHDREW his OBJECTION to Amendment 1.
There being no further OBJECTION, Amendment 1 was ADOPTED.
Representative Kelly Moved Amendment 2, 26-LS1197\Y.7,
Kane, 4/15/10:
Page 18, lines 15-16:
Delete "with a catalytic converter or a catalytic
converter for a wood stove"
Insert "that complies with the provision of 40
C.F.R. 60.530 [WITH A CATLYTIC CONVERTER OR A
CATALYTIC CONVERTER FOR A WOOD STOVE}"
Page 18, line 21:
Delete "wood, coal,"
Insert "coal [WOOD,COAL,]"
Co-Chair Stoltze OBJECTED for the purpose of discussion.
Mr. Powlowski explained that a simple wood or pellet grain
stove would not work appropriately under 40 C.F.R 60.530,
which established the admissions criteria determined by the
Environmental Protection Agency (EPA).
Co-Chair Stoltze WITHDREW his OBJECTION to Amendment
2.There being no further OBJECTION, Amendment 2 was
ADOPTED.
Representative Gara WITHDREW Amendment 3.
8:17:41 PM
Representative Gara MOVED Amendment 4, 26-LS1197\Y.4, Kane,
4/14/10:
Page 15, following line 24:
Insert a new bill section to read:
"* Sec. 17. AS 44.42 is amended by adding a new section to
read:
Sec. 44.42.067. Retrofits and new construction
for energy efficiency; energy efficiency report. (a)
Not later than January 1, 2020, the department shall
work with other state agencies to retrofit at least 25
percent of all public facilities, starting with those
it determines are the least energy efficient, if the
department determines that retrofitting the public
facilities will result in a net savings in energy
costs to the state within 15 years after completion of
the retrofits for a public facility and if funding for
the retrofits is available.
(b) A retrofit or deferred maintenance of a
public facility performed under this section, to the
extent feasible, shall meet or exceed the most
recently published edition of the ASHRAE/IESNA
Standard 90.1, Energy Standard for Buildings Except
for Low-Rise Residential Buildings, as published by
the American Society of Heating, Refrigerating and
Air-Conditioning Engineers.
(c) New construction of a public facility under
this section shall meet or exceed the most recently
published edition of the ASHRAE/IESNA Standard 90.1,
Energy Standard for Buildings Except for Low-Rise
Residential Buildings, as published by the American
Society of Heating, Refrigerating and Air-Conditioning
Engineers.
(d) Not later than January 1 of each year, the
department, in consultation with the Department of
Administration, shall submit a report to the
legislature detailing the department's progress in
meeting the requirements of this section to reduce
state energy consumption and costs and carrying out
the duties listed in AS 44.42.020 as they relate to
energy use. The department shall include in the report
an analysis of the consumption and expense data
recorded by the office of management and budget under
AS 37.07.040, comparing energy consumption levels in
each year with past years to determine if reductions
are being achieved.
(e) In this section, "public facility" means a
facility owned and controlled by the state for
government or public use that is 10,000 square feet or
more and is not a legislative building or court
building."
Renumber the following bill sections accordingly.
Page 26, line 18:
Delete "secs. 27 - 34"
Insert "secs. 28 - 35"
Page 26, line 20:
Delete "secs. 27 - 34"
Insert "secs. 28 - 35"
Page 26, line 21:
Delete "secs. 27 - 34"
Insert "secs. 28 - 35"
Page 27, line 1:
Delete "secs. 27 - 34"
Insert "secs. 28 - 35"-
Page 27, following line 1:
Insert a new bill section to read:
"* Sec. 45. The uncodified law of the State of Alaska is
amended by adding a new section to read:
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES.
Not later than one year after the effective date of this
section, the Department of Transportation and Public
Facilities, in consultation with the Alaska Energy
Authority, shall adopt and implement a systematic process
for prioritizing the retrofitting of state facilities for a
long-term increase in energy efficiency and reduction of
energy costs."
Renumber the following bill sections accordingly.
Page 27, line 9:
Delete "Section 42(b)"
Insert "Section 43(b)"
Co-Chair Stoltze OBJECTED for the purpose of discussion.
Representative Gara explained that the amendment would
require major retrofits and new construction to certain
state buildings in order to meet energy efficiency
standards. He added that not only would the efficiency
standards be met, but the cost of bringing the DOT managed
buildings up to standard would be reimbursed within 15
years.
Representative Fairclough asked what the life expectancy of
a boiler system was, and the cost of maintenance relative
to the life expectancy. She expressed concern that 15 years
may not allow for reimbursement of all expected upgrades.
Co-Chair Hawker articulated his unease was that the
amendment would codify the most recently published edition
of the American Society of Heating, Refrigerating and Air
Conditioning Engineers/Illuminating Engineering Society of
North America (ASHRAE/IESNA) Standard 90.1 Energy Standard
for Buildings Except for Low-Rise Residential Buildings, as
Published by the American Society of Heating, Refrigerating
and Air Conditioning Engineers. He believed that the
amendment should be scrutinized by an energy committee that
was more familiar with terms of art pertaining to energy
issues and codes.
Representative Fairclough agreed that the amendment needed
more work in order to be codified into state statute.
8:21:51 PM
Senator Weilechowski stated that the ASHRAE standards were
currently being adhered to by the Department of
Transportation and that monetary saving had been
experienced by DOT in the retrofitting of buildings using
language similar to that found in the amendment. The
sponsors had worked closely with the department to craft
the amendment language. He said that 8 buildings had been
retrofitted so far, with an average savings of $570,000 per
year. The estimated savings under the provision was $2.75
million per year.
Senator McGuire stated that she wanted to see the bill
passed adding that, "the possible is better than the
perfect". She furthered that the code was already being
applied by the department.
8:23:57 PM
MARY SIROKY, SPECIAL ASSISTANT TO THE COMMISSIONER,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, stated
that the ASHRAE standard was used as the baseline upon
which the architectural engineering community designed
facilities in Alaska. The code focused on commercial
buildings, and was the national standard used by many
states. She understood that the code was being used, and
would continue to be used, despite the passage of the
amendment.
Co-Chair Hawker clarified that the standard was being used
without being codified and made a mandate, it was used a
matter of policy and practice. Ms. Siroky replied yes. Co-
Chair Hawker asked if DOT was currently engaged in the
retrofitting of 25 different buildings. Ms. Siroky
responded that the department had not received additional
funding for the retrofits needed on all 25 buildings. She
shared that the department had written a fiscal note that
would add an additional body to oversee the necessary
retrofits. She stated that four facilities per year would
be necessary to meet the mandate of completing 25 percent
by 2020. Co-Chair Hawker reiterated his unease with the
codification and mandating of the language as statute.
8:26:44 PM
Representative Gara emphasized that the amendment was the
result of 2 years of work by the Senate Energy Committee,
which had worked with the department and the engineering
community. He stated that the amendment did not limit the
amount of reimbursement to the state. The legislation asked
the department to focus on the projects that would create a
rapid return. The department supported the amendment and
the energy committee had vetted it and worked to craft
language that was adoptable as a standard.
Representative Fairclough asked if the provision had been
included in the legislation when it was passed on the floor
of the other body.
Representative Gara stated that it was inserted by the
Senate Energy Committee after spending 2 years traveling
the state and gathering research. The members of the Senate
Finance Committee had voiced no objection to the addition
of the amendment to the legislation.
Co-Chair Stoltze asked if a similar amendment had been
offered on the senate floor. Representative Fairclough said
that the bill had passed the senate without the amendment
in it. Co-Chair Stoltze rebutted that that information
should not guide the committee's decisions now.
Representative Fairclough agreed. She commented that when
the committee attached itself to a national standard,
adopted in a different committee, mistakes could be made.
Co-Chair Stoltze asked if the administration supported the
amendment. Ms. Siroky stated that the department was
ambivalent.
Co-Chair Stoltze MAINTAINED his OBJECTION.
Representative Gara commented that the provisions of the
national standard that did not make money for the state
would not be followed.
A roll call vote was taken on the motion.
IN FAVOR: Thomas, Doogan, Foster, Gara, Joule, Salmon
OPPOSED: Austerman, Fairclough, Kelly, Stoltze, Hawker
The MOTION PASSED (6-5).
8:32:36 PM
Representative Gara MOVED to ADOPT Amendment 5.
Page 15 following line 24:
Insert "*Sec. 17. AS 44.83.080 is amended by
adding a new paragraph to read:
(17) to promote energy conservation, energy
efficiency, and alternative energy through
training and public education."
Renumber the following bill sections accordingly.
Page 26, line 18, following "secs.":
Insert "28-35"
Delete "27-34"
Page 26, line 20, following "secs.":
Insert "28-35"
Delete "27-34"
Page 26, line 21, following "secs,":
Insert "28-35"
Delete "27-34"
Page 27, line 1, following "secs.":
Insert "28-35"
Delete "27-34"
Page 27, line 1, following "Section":
Insert "43(b)"
Delete "42(b)"
Representative Gara noted that the amendment would allow
the Alaska Energy Authority (AEA) the authority to promote
energy efficiency and conservation, and help the
legislature move forward with the deployment of energy
efficiency where it would save the state money and benefit
communities. He added that if an education campaign was
thought to be beneficial it could be included as a mandate.
Co-Chair Hawker stated that the amendment was well crafted
and recommended it receive full support of the committee.
Co-Chair Stoltze REMOVED his OBJECTION. There being no
further OBJECTION the motion was ADOPTED.
8:35:12 PM
Co-Chair Hawker stated that the bill had been extremely
well crafted and that he was comfortable with the fiscal
notes.
Vice- Chair Thomas MOVED to report HCS CS SB 220(FIN) out
of Committee with individual recommendations and the
accompanying fiscal notes.
HCS CS SB 220(FIN) was REPORTED out of Committee with a "do
pass" recommendation and with attached new fiscal impact
note by the Department of Revenue, new zero note by the
Department of Transportation and Public Facilities, and
previously published fiscal notes: FN3 (DEC), FN 6 (DHS),
FN7 (CED), FN8 (CED, FN9 (REV), and FN11 (ADM).
8:37:01 PM AT EASE
8:50:46 PM RECONVENE
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