Legislature(2013 - 2014)BARNES 124

03/18/2014 01:00 PM House TRANSPORTATION

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Heard & Held
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
         HB 343-STATE BUILDINGS: CONSTRUCTION & MAINT.                                                                      
1:12:19 PM                                                                                                                    
CHAIR P. WILSON announced that  the first order of business would                                                               
be  HOUSE BILL  NO. 343,  "An Act  relating to  the construction,                                                               
major rehabilitation,  and deferred  maintenance of  state agency                                                               
public  buildings based  on standardized  designs; and  providing                                                               
for an effective date."                                                                                                         
1:12:45 PM                                                                                                                    
VASILIOS  GIALOPSOS,  Staff,   Representative  Charisse  Millett,                                                               
Alaska  State  Legislature, stated  that  HB  343 represents  the                                                               
collaboration  between  the  Alaska Housing  Finance  Corporation                                                               
(AHFC) and other  stakeholder groups.  The bill  also builds upon                                                               
the legislature's success in crafting  a state energy policy.  He                                                               
explained that in lean economic  times tradeoffs are made between                                                               
programs  that affect  Alaskans or  infrastructure.   The sponsor                                                               
hopes  HB  343  will  foster dialogue  on  funding  for  deferred                                                               
maintenance  during major  construction and  major rehabilitation                                                               
of  state-owned  buildings and  the  overall  effect of  deferred                                                               
maintenance   costs  on   all  state   programs.     The  sponsor                                                               
anticipates  significant  changes  to  the  bill  but  hopes  the                                                               
committee will  listen to  the expertise;  in particular,  by the                                                               
Department  of  Transportation  &  Public  Facilities,  the  Cold                                                               
Climate Housing  Research Center, and  the AHFC.  He  related the                                                               
sponsor  believes a  shift in  the state's  focus from  inputs to                                                               
outcomes  means  being  able  to  use  cost-effective  technology                                                               
available today.   This  means the state  shouldn't have  to come                                                               
back  in  five  years  to   fix  mistakes  made  during  building                                                               
1:17:06 PM                                                                                                                    
DAVE KEMP,  P.E.; Engineer,  Statewide Facilities,  Department of                                                               
Transportation   &   Public   Facilities  (DOT&PF),   began   his                                                               
presentation.   He  stated that  the Statewide  Public Facilities                                                               
(SWPF)  provides project  management services  for the  planning,                                                               
design,  and   construction  for   new  and   renovated  vertical                                                               
buildings.   He  pointed out  a photograph  of the  Department of                                                               
Labor &  Workforce Development  - AVTEC  - Alaska's  Institute of                                                               
Technology Dormitory in Seward [slide 2].                                                                                       
1:17:43 PM                                                                                                                    
MR.  KEMP described  the statewide  public facilities'  functions                                                               
[slide  3].    He  read AS  35.10.190(a):  The  department  shall                                                               
coordinate the  procurement of physical facilities  for the state                                                               
to  insure the  greatest cost  savings of  planning, design,  and                                                               
contractual  techniques.    He  stated  that  this  shop  has  11                                                               
professional  engineers, three  licensed architects,  two project                                                               
manager professionals, and four engineers-in-training (EITs).                                                                   
CHRISTOPHER   HODGIN,  P.E.   Program  Manager,   Energy  Office,                                                               
Department  of  Transportation   &  Public  Facilities  (DOT&PF),                                                               
outlined  the  energy  savings  performance  contracting  program                                                               
[slide 4].  He said he works  with state agencies in an effort to                                                               
make state  facilities more energy  efficient.  He  described the                                                               
bill as  a method for  accomplishing energy  improvement projects                                                               
that are funded  by the energy savings from the  projects.  Since                                                               
2011,  the  state  has  achieved  combined  energy  cost  savings                                                               
greater  than  $2.1 million  per  year  on  projects in  over  40                                                               
facilities  statewide.   He stated  that the  program is  ongoing                                                               
with  several   projects  in  development,   implementation,  and                                                               
construction  phases  at any  given  time.   The  energy  savings                                                               
office  has  worked  with  the  Department  of  Corrections,  the                                                               
Department  of  Transportation  & Public  Facilities  -  Northern                                                               
Region,  and Mount  Edgecombe High  School in  Sitka through  the                                                               
Department of Education and Early Development.                                                                                  
1:19:29 PM                                                                                                                    
REPRESENTATIVE  GATTIS suggested  that  the state  owns far  more                                                               
than  40 buildings.   She  expressed an  interest in  schools and                                                               
asked whether the  DOT&PF participates in new  schools.  Although                                                               
this program  began in  2011, she wondered  if the  energy office                                                               
has  been using  cost savings  during the  design, planning,  and                                                               
contractual techniques  when constructing  new schools in  in the                                                               
Matanuska-Susitna valley.                                                                                                       
MR. KEMP  answered that  the DOT&PF does  not have  any authority                                                               
over  public  school  buildings.     In  further  response  to  a                                                               
question,  Mr. Kemp  answered that  the local  school boards  and                                                               
communities   have  the   authority  and   purview  over   school                                                               
1:21:46 PM                                                                                                                    
CHAIR  P. WILSON  understood schools  were  a local  issue.   She                                                               
wondered a legislative change would be necessary to change this.                                                                
MR.  KEMP understood  a  similar bill  has  been introduced  that                                                               
would accomplish this [HB 341].                                                                                                 
1:22:45 PM                                                                                                                    
CHAIR P.  WILSON said  she was  familiar with  the weatherization                                                               
programs  and  asked whether  this  process  is similar  to  that                                                               
MR. HODGIN answered yes.  He  explained that when the DOT&PF uses                                                               
its energy  performance contracting program, an  investment grade                                                               
energy audit  is performed to  conduct an in-depth review  of the                                                               
facility to assess the  heating, mechanical, electrical, windows,                                                               
walls,  and building  envelope system.   The  department receives                                                               
the  results  with  the  best  cost  savings  measures  from  the                                                               
analysis.   In response to  a question, Mr. Hodgin  indicated the                                                               
energy  auditors are  private  companies.   He  related that  the                                                               
department has a term contract with Cue Energy Services Ltd.                                                                    
1:24:25 PM                                                                                                                    
REPRESENTATIVE  GATTIS expressed  concern  about  the "wants  and                                                               
needs"  in  her  district.    She said  that  some  people  think                                                               
architects  are the  benefactors of  the larger  buildings.   She                                                               
suggested  the  end  result  is  that  the  legislature  and  the                                                               
district want  quality buildings  designed for the  specific area                                                               
and region  of the state.   She acknowledged that the  state pays                                                               
energy and deferred maintenance and should do a better job.                                                                     
CHAIR  P. WILSON  solicited input  from  testifiers on  suggested                                                               
statute  changes since  the  goal is  to  achieve efficiency  and                                                               
energy savings.                                                                                                                 
MR. KEMP  highlighted the energy savings  performance contracting                                                               
that the legislature required the  department to undergo as being                                                               
one  "shining star".   The  department has  been reviewing  older                                                               
buildings that  were built 30-40  years ago since  the technology                                                               
has changed significantly  since then.  He said  this program has                                                               
been saving the state over $2 million per year.                                                                                 
1:27:28 PM                                                                                                                    
REPRESENTATIVE  ISAACSON   asked  how  many  of   the  40  public                                                               
buildings  still need  improvements.   He  further asked  whether                                                               
these improvements are a result  of the Alaska Sustainable Energy                                                               
Act.   Finally, he  asked whether the  department has  been doing                                                               
this in conjunction with AHFC or any other department.                                                                          
1:28:27 PM                                                                                                                    
CHAIR P. WILSON  also asked how many public  facilities the state                                                               
has in total.                                                                                                                   
Mr. HODGIN was  unsure of the exact number  of public facilities.                                                               
He  referred  to the  2011  master  building inventory  list  and                                                               
indicated  approximately 167  state facilities  were over  10,000                                                               
square feet.   He acknowledged many more facilities  are owned by                                                               
agencies that are less than 10,000 square feet.                                                                                 
MR. KEMP  said it would also  depend on the definition  of public                                                               
facilities  since   municipalities  and  school   districts  have                                                               
facilities.   Further,  DOT&PF doesn't  manage, design,  or track                                                               
all  facilities.   He  offered  to  provide  the figures  to  the                                                               
committee  ranging from  a small  utility building  to an  80,000                                                               
square-foot office building.                                                                                                    
CHAIR P. WILSON offered to distribute the information.                                                                          
1:30:25 PM                                                                                                                    
REPRESENTATIVE  ISAACSON said  he appreciated  the clarification.                                                               
He  suggested it  would also  be helpful  to know  the number  of                                                               
buildings  the department  has been  involved in  that relate  to                                                               
1:31:48 PM                                                                                                                    
MR.  HODGINS, in  response to  Representative Isaacson's  earlier                                                               
question  on the  role the  Alaska Sustainability  Act (ASA)  has                                                               
played, responded that  it absolutely did.  In 2010,  the ASA was                                                               
enrolled and since then his  office has been working closely with                                                               
the agencies  and the  AHFC, in  particular, on  investment grade                                                               
energy audits so the AHFC can help fund the projects.                                                                           
1:32:54 PM                                                                                                                    
REPRESENTATIVE GATTIS referred to  40 statewide public facilities                                                               
for which the department has  obtained energy savings.  She asked                                                               
for further clarification on the figure.                                                                                        
MR.   HODGINS  answered   that  the   aforementioned  40   public                                                               
facilities represent  the public  facilities that  the department                                                               
has  accomplished  through  the  energy  savings  program.    The                                                               
projects  include  ones   in  the  DOT&PF,  the   DEED,  and  the                                                               
Department of  Corrections.  Of  course, the  DOT&PF's facilities                                                               
include many more than the  40 buildings the program has assisted                                                               
since it operates maintenance shops and storage buildings, too.                                                                 
REPRESENTATIVE  GATTIS  recapped  that   the  department  has  40                                                               
facilities that garnered $2.1 million  in savings [per year], but                                                               
acknowledged the department has many more buildings.                                                                            
MR.   KEMP  clarified   that  the   energy  savings   performance                                                               
contracting has been  focused on all buildings  not just DOT&PF's                                                               
buildings.  He said that the  DOT&PF moves forward with any state                                                               
agency who would like to have  the audits done and participate in                                                               
the program with AHFC.                                                                                                          
1:35:20 PM                                                                                                                    
CHAIR P.  WILSON asked whether  the Department  of Administration                                                               
(DOA) selects the projects or if the DOT&PF makes the selection.                                                                
MR. HODGINS  answered that it is  a combination of methods.   The                                                               
DOA identifies  which facilities use  more energy and  the DOT&PF                                                               
works with  the DOA to determine  whether the project would  be a                                                               
good candidate  for the energy  savings performance project.   In                                                               
other  instances,  the  department   uses  a  state  database  to                                                               
identify some energy use and prioritizes accordingly.                                                                           
1:36:53 PM                                                                                                                    
CHAIR P. WILSON asked for the average cost of the audit.                                                                        
MR. HODGIN answered that the energy  audit cost ranges from 25 to                                                               
35  cents per  square foot.   He  agreed the  state pays  for the                                                               
energy audit  through departmental funds  or by using  the AHFC's                                                               
loan program.                                                                                                                   
1:37:46 PM                                                                                                                    
REPRESENTATIVE  GATTIS  asked  whether  the  DOT&PF  does  energy                                                               
audits  prior  to construction  in  order  to build  more  energy                                                               
efficient buildings.                                                                                                            
MR.  KEMP answered  that  he will  cover this  a  bit during  the                                                               
presentation.    However,  Senate  Bill  220,  which  passed  the                                                               
legislature in  2010 [26th  Legislature] requires  the department                                                               
to  follow  national  standards   for  energy  efficiency.    The                                                               
department must  consider all types of  energy efficiency, energy                                                               
savings, options,  as well as  ways to weatherize.   He confirmed                                                               
that  the DOT&PF  currently follows  the  national standards  for                                                               
energy efficiency.   Mr. Hodgin's  program has been in  charge of                                                               
making  energy efficiency  improvements  in  older buildings,  he                                                               
1:39:20 PM                                                                                                                    
MR.  HODGIN reported  that the  cost of  audit is  repaid through                                                               
energy  cost savings  [slide  5].   He  explained  that under  AS                                                               
44.42.067  (b-c),  as  part of  the  Alaska  Sustainability  Act,                                                               
requires retrofitting  and new construction to  meet the American                                                               
Society of Heating, Refrigerating  and Air Conditioning Engineers                                                               
{ASHRAE)  90.1, Energy  Standards for  Buildings.   This standard                                                               
has  been  adopted  by  most states,  including  Alaska,  and  it                                                               
provides  energy  efficiency  requirements  for  the  design  and                                                               
construction of buildings.   The nature of this  standard is that                                                               
it includes both  prescriptive and performance-based requirements                                                               
allowing  flexibility in  design  approaches.   Additionally,  it                                                               
provides energy efficiency  performance requirements for building                                                               
envelope  and walls,  heating and  ventilation systems,  interior                                                               
and exterior  lighting, power  systems, and  more.   He described                                                               
this  as   a  continuously  evolving   standard  with   over  100                                                               
professionals working to update the standard every few years.                                                                   
1:41:09 PM                                                                                                                    
MR. KEMP emphasized  the importance of having  a prescriptive and                                                               
performance  based  standard,  especially  in  Alaska  since  the                                                               
DOT&PF plans, designs, and constructs  projects from Ketchikan to                                                               
Nome.   The state has a  wide range of climate  conditions so the                                                               
department's standards must be flexible  enough for DOT&PF to use                                                               
the best  technology for  each specific location  in Alaska.   He                                                               
concluded that this is what ASHRAE 90.1, does.                                                                                  
MR.  KEMP  said  the  next slide  entitled  "Capital  Improvement                                                               
Projects in  Alaska" clarifies who has  responsibility in Alaska.                                                               
The large  circle represents the  entire state,  including school                                                               
districts and  schools that  fall within  and outside  the circle                                                               
representing  the State  of Alaska,  the AHFC,  the Alaska  Court                                                               
System, and  the University  of Alaska.   Another  circle depicts                                                               
the statewide public facilities and  various state agencies.  His                                                               
agency is  in charge  of the  construction, planning,  design and                                                               
construction  of  facilities  for   agencies  within  this  inner                                                               
1:42:54 PM                                                                                                                    
REPRESENTATIVE ISAACSON asked for  clarification on where the DOA                                                               
falls in terms of the circle.                                                                                                   
MR. KEMP said  the DOT&PF gives the DOA  authorization to perform                                                               
projects on an authority basis.                                                                                                 
1:43:36 PM                                                                                                                    
KIM  RICE, Deputy  Commissioner, Department  of Transportation  &                                                               
Public Facilities  (DOT&PF), pointed  out that this  slide [slide                                                               
6]  refers to  capital projects,  but not  to maintenance  costs.                                                               
She acknowledged that  the department should also  create a slide                                                               
for maintenance  costs, but maintenance is  managed by individual                                                               
departments.  She  emphasized that the DOA's  primary function is                                                               
space,  space standards,  and allocation  among the  departments.                                                               
Most of the  work on capital projects for contracting  is done by                                                               
a delegation from the DOT&PF.   The DOT&PF performs the standards                                                               
for   contracting.     She   estimated   that   the  DOT&PF   has                                                               
approximately  750  buildings  if   every  shed  and  maintenance                                                               
facility were  counted.   She surmised  that thousands  of public                                                               
buildings  exist   in  the  state,   but  the   statewide  public                                                               
facilities  group   handles  capital  programs  for   design  and                                                               
construction of  facilities.  She  characterized it as  being the                                                               
consultant agency that helps other  agencies through the process,                                                               
including fish hatcheries and sand storage buildings.                                                                           
1:45:11 PM                                                                                                                    
MR.  KEMP  explained that  the  information  on the  next  slide,                                                               
entitled "Public Buildings in Alaska"  has already been discussed                                                               
in terms of  the wide variety of facilities in  Alaska [slide 7].                                                               
For  example, LED  lights are  very  appropriate for  communities                                                               
with high fuel costs since the  cost of LED lighting is high, but                                                               
in  other locations  that sustain  lower fuel  costs, it  may not                                                               
make sense.   This illustrates  the type of flexibility  that the                                                               
department needs to  "fit" the technology to  the location within                                                               
the state.                                                                                                                      
1:46:11 PM                                                                                                                    
CHAIR   P.   WILSON   reiterated  that   the   department   needs                                                               
MR. KEMP answered  that the statutes accomplish  the AHFC's white                                                               
paper  and House  Bill [343]  will  direct the  department.   The                                                               
problem  has been  the terminology  since  it could  take a  huge                                                               
effort  to  develop  a  standard   design  that  will  work  from                                                               
Ketchikan to Nome  or for a crime lab or  a State Library Archive                                                               
and Museum (SLAM) project.                                                                                                      
1:47:21 PM                                                                                                                    
CHAIR P.  WILSON referred  to the  Alaska Sustainable  Energy Act                                                               
Annual Report in members' packets.   She asked if Mr. Kemp helped                                                               
prepare the report.                                                                                                             
MR.  KEMP  answered  yes;  that   the  aforementioned  report  is                                                               
prepared by the  Statewide Public Facilities office.   In further                                                               
response  to a  question, he  agreed it  contains information  on                                                               
progress made, which will be updated annually.                                                                                  
1:48:10 PM                                                                                                                    
TOM  MAYER,  Division  Director, Division  of  General  Services,                                                               
Central  Office, Department  of  Administration  (DOA), said  the                                                               
department has reviewed  the bill and would like  to outline some                                                               
of  the challenges  this bill  presents  for the  division.   The                                                               
division  manages  multiple  state-owned buildings;  however,  as                                                               
written,  this bill  will affect  buildings operated  by multiple                                                               
agencies  from airports  to health  centers,  fish hatcheries  to                                                               
pioneer  homes.   Each building  in the  state's portfolio  has a                                                               
specific  purpose,   which  varies  greatly  in   terms  of  age,                                                               
condition and  systems, including  electrical and plumbing.   Due                                                               
to  varying needs  across the  state  and the  varying roles  the                                                               
buildings  play  for  state  agencies,   the  public,  and  their                                                               
communities, what is  best for one region may  not be recommended                                                               
for another community due to climatic conditions.                                                                               
MR.  MAYER said  it would  be very  challenging to  establishment                                                               
detailed specifications  that would  apply to all  regions across                                                               
the state.   In practical terms, standardization  could result in                                                               
DOT&PF  needing developing  hundreds  of detailed  specifications                                                               
for building  systems with DOA  and other agencies  attempting to                                                               
balance  the  tension  between  applying a  set  standard  for  a                                                               
deferred  maintenance   project  on  existing   structures  while                                                               
finding the  best dollar approach to  replacing outdated systems.                                                               
As  technology  and  building techniques  change,  specifications                                                               
need continual  evaluation and  updates.   This type  of standard                                                               
based evaluation  represents a cost  to the state for  any agency                                                               
that  needs  space.   He  estimated  costs  for the  Division  of                                                               
General Services  is $614,000  annually.   The unknown  cost that                                                               
can't  be estimated  at  this  time is  the  cost  of a  building                                                               
component  based on  an  unknown  design that  has  not yet  been                                                               
created by DOT&PF.                                                                                                              
MR. MAYER stated that the intent  of this bill is commendable but                                                               
the solution  is already in  place.   He explained that  the goal                                                               
for  procurement  and  construction  is to  be  as  efficient  as                                                               
possible with  state funds.   For example, the  original estimate                                                               
for  a  new DNR  Geological  Materials  Center building  was  $45                                                               
million,  but with  careful analysis  the  DOA reached  agreement                                                               
with  the purchase  of the  old  Sam's Club  building on  Penland                                                               
Parkway in Anchorage  for $16 million, with  Wal-Mart paying $2.5                                                               
million of the  costs.  Including the current  remodel costs, the                                                               
overall total cost will be $24  million or a cost savings of over                                                               
$20  million.    Additionally,  the  DNR will  be  able  to  take                                                               
occupancy  this  fall   many  years  ahead  of   schedule.    The                                                               
department strives for an efficient  well-designed building for a                                                               
specific site and  region as the best overall  cost Regardless of                                                               
the project.  He reported that  best practices are already in use                                                               
with  in-house design  experts and  design consultants  to ensure                                                               
new construction and  renovation projects meet ASHRAE  90.1.  The                                                               
guidelines set minimums for energy requirement designs, he said.                                                                
1:52:07 PM                                                                                                                    
CHAIR P.  WILSON asked for  the length  of time this  process has                                                               
been in use.                                                                                                                    
MR. MAYER answered  that the Public Building Fund  (PBF) has been                                                               
in place  since 2003.   The department  manages 20  buildings, of                                                               
which 14 are in the PBF, and the remaining 5 are in the Non-                                                                    
Public Building  fund (NPBF).  Those  buildings include warehouse                                                               
types of facilities, which are not traditional office buildings.                                                                
MR.   MAYER,   in  response   to   a   question,  answered   that                                                               
approximately 30  people are involved in  this process statewide,                                                               
including   for   maintenance,   management,   and   to   perform                                                               
solicitations for the design.                                                                                                   
1:54:07 PM                                                                                                                    
STACY  SHUBERT, Director,  Governmental  Affairs, Alaska  Housing                                                               
Finance  Corporation (AHFC)  noted that  in 2008  the legislature                                                               
funded  AHFC's weatherization  and home  energy rebate  programs.                                                               
She related  that to a lesser  extent AHFC is also  known for its                                                               
work with  public facilities and  energy use.  She  indicated her                                                               
presentation will include references to  the case study of AHFC's                                                               
headquarters building.                                                                                                          
1:54:32 PM                                                                                                                    
JOHN  ANDERSON,   Operations  Officer,  Alaska   Housing  Finance                                                               
Corporation (AHFC), began  his presentation.  He  noted that AHFC                                                               
was selected  as a consultant.   In 2010, with passage  of Senate                                                               
Bill 220 the Revolving Loan Fund  was created with a $250 million                                                               
appropriation.   At  the same  time,  AHFC was  working with  the                                                               
DOT&PF and the Alaska Energy  Authority (AEA) to develop plans to                                                               
use the  American Recovery  and Reinvestment  Act of  2009 (ARRA)                                                               
funds [slide  2].   The AHFC  developed a  process and  created a                                                               
team to begin implement the program.   The goal was to assess the                                                               
public facility energy use.                                                                                                     
MR.  ANDERSON  added  that  the  AHFC  also  created  the  Alaska                                                               
Retrofit  Information  System  (ARIS)  that also  ties  into  its                                                               
weatherization  and  rebate program  [slide  3].   This  has  now                                                               
become the  clearinghouse or  depository for all  the data.   The                                                               
DOT&PF uses it and anyone can request to use it, he said.                                                                       
1:56:22 PM                                                                                                                    
MR. ANDERSON  said other reasons  the AHFC is  currently involved                                                               
in public buildings include the  Home Energy Rating System (HERS)                                                               
and Building  Energy Efficiency  Standard (BEES)  [slide 4].   He                                                               
related that the AHFC is  statutorily required to maintain energy                                                               
codes and  building codes  within AHFC when  its funds  are being                                                               
used.  The AHFC uses AkWarm  software for this process.  In fact,                                                               
most of  the audits contain  AkWarm files  and are all  listed in                                                               
the AHFC's  retrofit information  system.   He reported  that the                                                               
database contains over 75,000 unique records.                                                                                   
MR.  ANDERSON  related that  the  technical  service provider  is                                                               
comprised  of  40-50  professionals, including  certified  energy                                                               
auditors [slide 5].   The team benchmarked as  many facilities as                                                               
possible,  totaling 1,200  facilities  statewide.   He  described                                                               
benchmarking as  compiling basic building  information, including                                                               
attempting  to  collect two  years  of  energy  data.   The  team                                                               
selected   the  highest   energy   users  based   on  the   data.                                                               
Subsequently, AHFC conducted 327  ASHRAE investment grade audits.                                                               
In response to a question,  Mr. Anderson defined investment grade                                                               
audits as  audits that provide  a detailed look at  the facility,                                                               
representing a  national standard that AHFC  adopted from ASHRAE.                                                               
He explained that this audit  "dives in" and examines all aspects                                                               
of the building, including examining  controls and all components                                                               
and makes recommendations for the best energy improvements.                                                                     
1:58:48 PM                                                                                                                    
MR.  ANDERSON  related   each  of  the  327   audits  consist  of                                                               
approximately  50-70 pages  and  cost a  total  of $7.2  million.                                                               
Additionally,  the  AHFC  provided  another  $1  million  to  the                                                               
university  system to  conduct audits.    At the  same time,  the                                                               
DOT&PF had $10 million in ARRA funds for audits.                                                                                
MS. SCHUBERT  reported that all  of the AHFC's audits  are posted                                                               
on the agency's website so members can access the data.                                                                         
MR.  ANDERSON related  that the  327 buildings  also resulted  in                                                               
approximately  $14.7 million  in  energy savings.   He  estimated                                                               
over 5,000  statewide public  facilities exist,  including state,                                                               
schools, cities,  and boroughs.   He estimated  approximately 184                                                               
of the 479 schools statewide were audited [slide 6].                                                                            
2:00:49 PM                                                                                                                    
MR. ANDERSON said the AHFC  took advantage of a great opportunity                                                               
to make  improvements to its own   building [slide 7].   In 2011,                                                               
the AHFC  purchased its headquarters  following a  14-year lease.                                                               
The  agency immediately  began  implementing efficiency  measures                                                               
including lighting  and heating,  as well  as completing  a major                                                               
roof  repair.    Additionally,  the AHFC  has  begun  to  replace                                                               
exterior lighting and  some of its outdated control  systems.  He                                                               
estimated that  based on improvements,  AHFC has reduced  gas use                                                               
by 40 percent  and electric by 30 percent.   He said that through                                                               
the  audit  process,   benchmarking,  collaboration,  and  "white                                                               
paper" the agency asked entities  to make recommendations to move                                                               
forward.   He has reviewed these  recommendations, which included                                                               
suggestions for appropriately-size new  buildings, to establish a                                                               
level of accountability, to meter  and track energy use data, and                                                               
to consolidate  facility use where  possible [slide 8].   He said                                                               
AHFC  believes, in  particular, in  the smaller  communities that                                                               
consolidation makes more sense such  as housing a post office and                                                               
school in one building.                                                                                                         
2:02:31 PM                                                                                                                    
MR. ANDERSON  discussed recommendations  for the  building design                                                               
process [slide  10].   He understood this  could be  construed as                                                               
controversial, but the "white paper"  showed the need to consider                                                               
life-cycle costing.   This process determines  whether to install                                                               
better pumps that  can last longer than 30 years  and whether the                                                               
cost to  benefit ratio make  sense.  Especially in  rural Alaska,                                                               
with its  high energy costs,  designers should  consider building                                                               
use,  system  sizes,  controlled  ventilation,  and  lighting  to                                                               
maximize efficiency.  Further,  designers should reduce excessive                                                               
glass and  maximize daylight with  the orientation of  the school                                                               
or  other  building.    Additionally,  the  commissioning  aspect                                                               
includes    commissioning,   retro-commissioning    and   ongoing                                                               
commissioning.  In  response to a question,  Mr. Anderson defined                                                               
commissioning  as  essentially  consisting  of an  audit  of  the                                                               
constructed facility.  For  example, commissioning would consider                                                               
whether  the  building  was  operating  properly  and  if  things                                                               
installed  correctly.     The  audit  process   highlighted  that                                                               
commissioning was  often not  done so  systems were  not balanced                                                               
properly.   Retro-commissioning  occurs  later  and would  review                                                               
plans  and drawings  to determine  if the  building was  designed                                                               
properly.  If  not, rebalancing and other  improvements have been                                                               
found to reap benefits.   Interestingly, the AHFC discovered that                                                               
there wasn't  any correlation between  the age of a  building and                                                               
energy  use.   For example,  two  similar schools  were built  in                                                               
adjacent  communities  but  one  facility  used  five  times  the                                                               
energy.   The AHFC audited some  buildings that were at  least 30                                                               
years old.                                                                                                                      
2:05:34 PM                                                                                                                    
CHAIR P.  WILSON asked whether  the audits are only  performed on                                                               
existing buildings.                                                                                                             
MR. ANDERSON answered yes.                                                                                                      
2:05:49 PM                                                                                                                    
CHAIR P.  WILSON asked  whether the  AHFC discusses  these issues                                                               
when new buildings are being built.                                                                                             
MR.  ANDERSON answered  that  AHFC believes  it  brings a  unique                                                               
perspective  and as  consultants are  willing to  be part  of the                                                               
2:06:05 PM                                                                                                                    
REPRESENTATIVE GATTIS asked if anyone asking for assistance.                                                                    
MR.  ANDERSON answered  yes; the  Department of  Transportation &                                                               
Public  Facilities,   the  Alaska  Vocational   Technical  Center                                                               
(AVTEC),  and  several  of  the  schools  have  requested  AHFC's                                                               
assistance.   He explained that  the AHFC works closely  with the                                                               
DOT&PF.    Based   on  the  AHFC's  audit   process  some  energy                                                               
efficiency projects have been completed  with other funding.  The                                                               
organization either  found in-house  funds, bonding,  or arranged                                                               
for other financing, he said.                                                                                                   
2:07:04 PM                                                                                                                    
REPRESENTATIVE  GATTIS  noted  challenges,   such  that  she  has                                                               
observed some  people open  windows in cold  climates.   She also                                                               
pointed out  that highly technical  equipment has  sometimes been                                                               
installed but people  often don't know how to operate  or fix it.                                                               
For example,  she has  seen people "rip  out" some  equipment and                                                               
put  in a  simple value.   Additionally,  she noticed  some smoke                                                               
alarms  were not  working in  some buildings.   She  recalled the                                                               
DEED has  used less insulation  in order to enhance  the interior                                                               
size of their  buildings.  She hoped that  improvements in energy                                                               
efficiency will happen.                                                                                                         
MS. SHUBERT responded  that one of AHFC's  recommendations in its                                                               
"white  paper" is  to property  train maintenance  staff.   These                                                               
buildings require proactive management  and maintenance to ensure                                                               
equipment is being  appropriately controlled.  One  of the things                                                               
AHFC does  in its  own building  is to meter  the building.   For                                                               
example, employees  actively monitor  whether the lights  come on                                                               
at 2 a.m.                                                                                                                       
2:10:25 PM                                                                                                                    
RYAN  COLGAN,  Chief  Programs   Officer,  Cold  Climate  Housing                                                               
Research  Center, explained  the  Cold  Climate Housing  Research                                                               
Center (CCHRC) is a 501  (c)(3) non-profit organization formed by                                                               
the Alaska State Homebuilding Association  (ASHBA) to address the                                                               
challenges of  building in  Alaska's extreme  environment through                                                               
applied research,  policy research,  design consulting  and other                                                               
means [[slide 1].                                                                                                               
MR.  COLGAN referred  to  a familiar  image of  a  map of  Alaska                                                               
superimposed on the Lower 48.   This image illustrates how remote                                                               
and  diverse the  communities of  Alaska, which  is important  in                                                               
terms of standards.   He characterized the  necessary approach as                                                               
being  not focused  on  the  "cookie cutter"  but  on the  cookie                                                               
recipe.   Another factor to  consider in Alaska is  the logistics                                                               
since  it is  difficult  to  get to  construction  sites in  many                                                               
places [slide 3].  In addition,  work itself can be difficult due                                                               
to the environment [slide 4].                                                                                                   
MR.  COLGAN  said  one  of  Alaska's assets  is  that  the  state                                                               
consists of  problem solvers,  which is  inherent in  its people.                                                               
In fact, it is necessary to  problem solve in order to survive in                                                               
parts of Alaska [slides 5-6].                                                                                                   
2:13:37 PM                                                                                                                    
MR.  COLGAN turned  to slide  7, entitled  "How does  CCHRC Solve                                                               
Problems?"   The  CCHRC first  works to  understand the  problem,                                                               
gathers information,  and identifies  solutions.  He  showed some                                                               
slides that illustrate the types  of problems encountered [slides                                                               
MR.  COLGAN said  that CCHRC  gathers information  through peers,                                                               
those  who  have  researched and  found  solutions,  and  through                                                               
advanced modeling [as shown on the  top of slide 11].  This slide                                                               
shows  the mobile  test  lab and  the  research testing  facility                                                               
[slide 11].                                                                                                                     
MR.  COLGAN explained  that CCHRC  has identified  several unique                                                               
wall solutions to meet and  exceed building standards and address                                                               
unique challenges that stem from  Alaska's extreme climate [slide                                                               
2:15:10 PM                                                                                                                    
MR. COLGAN turned to the  next slice, which illustrates how CCHRC                                                               
incorporates  solutions   into  designs  [slides  13-14].     For                                                               
example,  this   shows  the  sustainable  village   at  UAF,  and                                                               
prototypes  at Quinhagak  and Anaktuvuk  Pass.   The CCHRC  helps                                                               
find solutions for heating, ventilation, water, and wastewater.                                                                 
MR. COLGAN  reported that CCHRC  communicates with end  users and                                                               
has about  50,000 hits per year  on its website, 20,000  hits per                                                               
year  on  its blog  for  homeowners,  and  200,000 views  on  the                                                               
website  podcasts.   The  CCHRC works  with  Alaskans and  either                                                               
deliver  or work  with partners  to provide  over 50  classes per                                                               
year [slides 16-17].                                                                                                            
MR. COLGAN  turned to demonstration  projects that show  what can                                                               
be accomplished [slide 18-19].   He then returned to the question                                                               
of how  CCHRC solves  problems [slide  20].   He related  that to                                                               
understand the  problem, CCHRC recognizes that  high energy costs                                                               
exist  in some  public  facilities and  with  budget deficit  can                                                               
create  long-term  burdens for  the  state.   The  agencies  have                                                               
reported today that a significant  amount of information has been                                                               
gathered  through  benchmark,  investment  grade  audits  and  by                                                               
consulting with numerous experts to  produce the "white paper" on                                                               
public facilities.   The state has also been  working to identify                                                               
solutions   using    the   revolving   loan    program,   holding                                                               
conversations about  standards, and  recognizing that it  is hard                                                               
to   implement   the   standard   without   involving   multiple-                                                               
DUSTIN MADDEN,  Policy Researcher, Cold Climate  Housing Research                                                               
Center (CCHRC),  offered a presentation that  covers some history                                                               
about energy in  Alaska.  In the 1970s natural  gas use lessened,                                                               
primarily  due   to  energy  codes   that  required   "2x6"  wall                                                               
construction and  energy heel trusses  [slide 21].  In  the early                                                               
1990s  usage  reached  a  plateau until  the  AHFC  instituted  a                                                               
building energy  efficiency standard, which like  ASHRAE 90.1 has                                                               
a prescriptive  performance.  The  graph illustrates  that energy                                                               
use  in  Alaska  has  continued   to  decrease  as  the  building                                                               
efficiency standard  has become more widespread  and reflects the                                                               
current technology of the industry  [slide 21].  He observed that                                                               
energy standards over time have proven effective.                                                                               
2:20:50 PM                                                                                                                    
MR. MADDEN  highlighted the pie  chart that shows the  energy use                                                               
for public schools in Alaska with  about 75 percent of energy use                                                               
due  to  space heating.    He  reported  that many  schools  have                                                               
received energy  audits or have  been benchmarked.  Over  half of                                                               
the 75  percent of energy use  for space heating is  lost through                                                               
ventilation and  air leakage.   He reported that  heating outside                                                               
air at minus 20 degree air  to 70 degrees for indoor comfort uses                                                               
considerable energy.   It's important  that energy  efficiency is                                                               
well managed [slide 23].                                                                                                        
MR. MADDEN  explained the graph  with energy  efficiency depicted                                                               
on the "y" axis and the  total annual ventilation is shown on "x"                                                               
axis  [slide 24].    He acknowledged  that  some older  buildings                                                               
often performed  better than newer buildings;  however, the CCHRC                                                               
did find that  one driver of space heating  energy efficiency was                                                               
the ventilation rate.  He  identified the ventilation rate as one                                                               
ingredient of  the "cookie"  recipe that  can be  standardized to                                                               
increase  efficiency.    Many  systems   are  quite  complex  for                                                               
controlling ventilation,  such as direct digital  control systems                                                               
so having a more standard set  of these systems will increase the                                                               
effectiveness  of  the  systems   used  and  operated  throughout                                                               
Alaska.     Factors  such  as  standardization   of  ventilation,                                                               
depending on the design depending on  the number of zones and the                                                               
equipment  used, have  the potential  to save  energy and  reduce                                                               
operating  costs.    In  response   to  a  question,  Mr.  Madden                                                               
explained  that the  "DHW" on  slide 22  refers to  "domestic hot                                                               
2:24:15 PM                                                                                                                    
REPRESENTATIVE  KREISS-TOMKINS referred  to the  graph [on  slide                                                               
24] and asked what outlier was  close to 40 billion cubic feet of                                                               
MR. MADDEN was unsure.   He offered to look it  up and provide it                                                               
to  the  committee.    In  further response  to  a  question,  he                                                               
answered that "HDD" stands for "heating degree days."                                                                           
2:25:40 PM                                                                                                                    
BRYAN  BUTCHER,   Executive  Director/Chief   Executive  Officer,                                                               
Alaska  Housing Finance  Corporation  (AHFC),  added that  energy                                                               
efficiency is what AHFC does.                                                                                                   
CHAIR P. WILSON  said this presentation has  helped the committee                                                               
get a  handle on the  energy efficiency issues. She  suggested it                                                               
might  be  necessary to  get  rid  of  the  silos and  work  more                                                               
cooperatively to address these issues.                                                                                          
[HB 343 was held over.]                                                                                                         
2:27:08 PM                                                                                                                    

Document Name Date/Time Subjects
HB371 AGC Support Letter.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
HB 371 Testimony of Dick Mylius .pdf HTRA 3/18/2014 1:00:00 PM
HB 371
HB 371 comments Smith.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
HB0343A.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343-Sponsor Statement.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343-Sectional Anaylsis.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB343 DOTPF Presentation 3-13.msg HTRA 3/18/2014 1:00:00 PM
HB 343
HB343-DOA-FAC-03-07-14.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB343-DOR-AHFC-03-07-14.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB343-DOT-SPF-3-13-14.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
Sustainable Energy Act Annual Report to Legislature 2013 (2013 12 26).pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343 ASHRAE 90_1 Article.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343 Standardized Designs DOTPF 3-13-14.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB-343 AHFC 3 13 14 FINAL.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343 CCHRC Presentation.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
4407 MOU (wo exhibits).pdf HTRA 3/18/2014 1:00:00 PM
HB 371
SB 211
Egan SB211 Response.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
SB 211
Happy Valley Docs.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
SB 211
HB 371 - letter Milles 3-12-14.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
Project Flow Chart.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
SB 211
HB 371 Sectional Analysis.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
Wilson HB371 Response.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
CSHB 371 Ver C Work Draft.pdf HTRA 3/18/2014 1:00:00 PM
HB 371