Legislature(2013 - 2014)SENATE FINANCE 532
04/16/2014 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB297 | |
| HB293 | |
| HB263 | |
| HCR15 | |
| HB268 | |
| HB121 | |
| HB204 | |
| HB379 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 297 | TELECONFERENCED | |
| += | HB 293 | TELECONFERENCED | |
| += | HB 263 | TELECONFERENCED | |
| += | HCR 15 | TELECONFERENCED | |
| += | HB 268 | TELECONFERENCED | |
| + | HB 121 | TELECONFERENCED | |
| + | HB 204 | TELECONFERENCED | |
| + | HB 379 | TELECONFERENCED | |
| + | HB 308 | TELECONFERENCED | |
| + | HB 361 | TELECONFERENCED | |
| + | HB 160 | TELECONFERENCED | |
| + | HB 116 | TELECONFERENCED | |
| += | SB 48 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 297(FIN)
"An Act recognizing the Alaska Housing Finance
Corporation as the authorizing agency to approve home
energy rating systems for the state; and providing for
an effective date."
9:10:15 AM
Senator Bishop MOVED to ADOPT the proposed committee
substitute for HB 279, Work Draft 28-LS1307\C (Nauman,
4/14/14) as working document. There being NO OBJECTION, it
was so ordered.
9:10:49 AM
DIRK CRAFT, STAFF, REPRESENTATIVE LANCE PRUITT, presented
the changes in the new CS found in Section 2 and brought to
the sponsor by Senator Stedman. He reported that the
changes added approval language from the Power Project Loan
Fund for the Alaska Energy Authority (AEA) to approve loans
for the Blue Lake Hydroelectric Project; he added that the
sponsor was in support of the changes.
Senator Dunleavy inquired about the intent of the bill. Mr.
Craft replied that the original purpose of HB 297 was to
recognize the Alaska Housing Finance Corporation (AHFC) as
the state's Home Energy Rating System (HERS) authorizing
agency for the purpose of approving HERS use in Alaska. The
bill would help to protect the investment the state has
made by AHFC in developing its own rating system, AkWarm,
as well as the over $560 million Alaskans invested in the
highly successful home energy rebate and weatherization
programs. He reported that AkWarm's system and software had
been in use and continuously updated since 1996,
specifically designed for Alaska and recognized by the
Alaska building, real estate, and home loan industries. It
was directly tied to AHFC programs such as the home energy
rebate and weatherization programs, interest rate
reductions for home loans, and Alaska building energy
efficiency standards.
Senator Dunleavy noted the CS having made an addition to a
loan program and requested an explanation of that section.
Mr. Craft deferred the question to Senator Stedman.
Vice-Chair Fairclough asked if it was a fair assessment
that the title of the bill allowed for a "hitchhiker" to be
easily attached to it as it came before a committee. Mr.
Craft responded in the affirmative.
Vice-Chair Fairclough noted that two bills had been rolled
into one.
9:13:11 AM
Senator Dunleavy inquired how the addition to the bill
affected the overall fund and the ability to dedicate or
expend funds to the weatherization program. Mr. Craft did
not think the new addition would have an impact.
SENATOR BERT STEDMAN, explained that there was a
hydroelectric expansion project in progress in Sitka in
which a dam face was being raised 83 feet. The dam was
originally constructed in the late 1950s to facilitate the
construction and the development of a pulp mill, which was
no longer in existence. He explained that the electrical
demands of the community of Sitka were such that the dam
needed to be raised to the design height to bank additional
water. The penstock was being redone, a new powerhouse was
being built, and the turbines were being updated. Things
were more expensive than anticipated and the community
needed an additional $40 million to complete the project.
The state historically had discussed contributing a 50
percent match for hydro projects. The state had about $49.5
million invested in the project at present. The community
was required to supply the remainder of the funding,
approximately $40 million. The legislature was unable to
make an appropriation of $18.6 million to match the funding
of 50 percent on the hydro project due to the fiscal shape
of the state. Sitka was looking at other alternatives, one
of which was to go to AEA to borrow the funds, if
available. Sitka tried to put a package together; however,
there was not the ability to do a cash infusion for the
appropriation. By attaching language to the bill before the
committee, it gave AEA authorization to lend the funds,
however, there were no funds to lend. He reported the
existence of another project on the southern end of
Southeast that might not go forward due to ongoing
discussions with AEA. The community was in a peculiar
position, as legislators are aware that Fairbanks was at
$0.23 a kilowatt hour and most community members heated
with oil. Sitka was not far behind Fairbanks in terms of
rates. The landing authorization, if executed, would help
with the kilowatt charges to the customer and residents of
the community. Senator Stedman had hoped the project would
be a part of the capital budget, with an appropriation.
However, that did not appear to be happening.
9:17:37 AM
Vice-Chair Fairclough noted that Senator Hoffman and Co-
Chair Kelly had joined the committee in progress.
Senator Olson noted that the goal was to reduce the cost of
electricity in Sitka to the upper teens per kilowatt hour
and inquired what the rates were currently. Senator Stedman
replied that currently the rate per kilowatt hour (kWh) was
$0.12. He anticipated a rate increase to $0.16 or $0.17 per
kWh. The community was working on keeping the lower
kilowatt consumption users' rates down and balancing
efforts with the commercial sector.
Senator Olson noted that the project had a local
contribution to it and inquired if the community of Sitka
was in favor of the project. Senator Stedman responded that
the community was in full support and that the project was
currently under construction. He opined that the community
was in a position that it had to expand its hydro power. It
did not have any other reasonable alternatives. He
indicated that the project was approximately two-thirds
completed.
Vice-Chair Fairclough CLOSED public testimony.
9:20:39 AM
Vice-Chair Fairclough discussed a forthcoming zero fiscal
note from AEA.
Senator Bishop MOVED to REPORT SCS CSHB 297(FIN), version
C, out of committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 297(FIN) was REPORTED out of committee with "no
recommendation" and with a previously published zero fiscal
note: FN1(REV) and forthcoming zero fiscal note from the
Alaska Energy Authority.
9:21:51 AM
AT EASE
9:22:42 AM
RECONVENED