Legislature(2009 - 2010)BARNES 124
02/05/2009 03:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| Overview: Alaska Housing Finance Corporation Programs | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
February 5, 2009
3:06 p.m.
MEMBERS PRESENT
Representative Bryce Edgmon, Co-Chair
Representative Charisse Millett, Co-Chair
Representative Nancy Dahlstrom
Representative Kyle Johansen
Representative Jay Ramras
Representative Pete Petersen
Representative Chris Tuck
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Bob Buch
Representative David Guttenberg
COMMITTEE CALENDAR
OVERVIEW: ALASKA HOUSING FINANCE CORPORATION PROGRAMS
PREVIOUS COMMITTEE ACTION
No previous action to report
WITNESS REGISTER
DAN FAUSKE, Chief Executive Officer/Executive Director
Alaska Housing Finance Corporation (AHFC)
Anchorage, Alaska
POSITION STATEMENT: Participated in the presentation by Alaska
Housing Finance Corporation (AHFC).
CARY BOLLING, Energy Specialist
Research Information Center
Alaska Housing Finance Corporation (AHFC)
Anchorage, Alaska
POSITION STATEMENT: Participated in the presentation by Alaska
Housing Finance Corporation (AHFC).
JOHN ANDERSON, Weatherization Officer
Research and Rural Development
Alaska Housing Finance Corporation (AHFC)
Anchorage, Alaska
POSITION STATEMENT: Participated in the presentation by Alaska
Housing Finance Corporation (AHFC).
BRYAN BUTCHER, Director
Governmental Relations & Public Affairs
Executive Office
Alaska Housing Finance Corporation (AHFC)
Anchorage, Alaska
POSITION STATEMENT: Participated in the presentation by Alaska
Housing Finance Corporation (AHFC).
REPRESENTATIVE DAVID GUTTENBERG
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Asked questions during the presentation by
Alaska Housing Finance Corporation (AHFC).
MARQUAM GEORGE, Associate Professor
Construction Technology Career Education
University of Alaska Southeast
Juneau, Alaska
POSITION STATEMENT: Presented a sample Alaska Housing Finance
Corporation (AHFC) Home Energy Rating Certificate.
ACTION NARRATIVE
3:06:27 PM
CO-CHAIR BRYCE EDGMON called the House Special Committee on
Energy meeting to order at [3:06] p.m. Representatives
Dahlstrom, Petersen, Tuck, Millett, and Edgmon were present at
the call to order. Representatives Ramras and Johansen arrived
as the meeting was in progress. Representatives Guttenberg and
Buch were also in attendance.
^OVERVIEW: ALASKA HOUSING FINANCE CORPORATION PROGRAMS
CO-CHAIR EDGMON announced that the only order of business would
be a two-part presentation by Alaska Housing Finance Corporation
(AHFC). The first part was an overview of the Weatherization
and Home Energy Rebate programs; the second part was a
presentation by an energy rater.
3:07:31 PM
DAN FAUSKE, Chief Executive Officer/Executive Director, Alaska
Housing Finance Corporation (AHFC), introduced a PowerPoint
presentation on the Weatherization and Home Energy Rebate
programs. Although AHFC has been funding low-income
weatherization programs with federal and AHFC funds for many
years, during the last legislative session the corporation was
asked to redesign the program using an additional allocation of
$300 million and eliminating income restrictions.
3:10:05 PM
CARY BOLLING, Energy Specialist, Research Information Center,
AHFC, presented slide 1, titled Overview, that indicated the
following appropriations: $200 million for a weatherization
program that is an income-based, no-cost, existing program; $100
million for a rebate program for those not qualifying for the
weatherization program; $60 million in additional funding for
the rebate program authorized during the legislative special
session in 2008; and the necessary training component for both
programs. Slide 2 indicated the amount of funding that was
allocated to each region based on its climate, fuel costs, and
population.
3:11:09 PM
MR. FAUSKE pointed out that AHFC created the graph on slide 3,
titled Rebate & Weatherization Allocations, to ensure that each
region is aware of the funds available only for that region.
3:11:52 PM
MR. BOLLING continued to explain that the programs were approved
in April 2008, and by using emergency regulations AHFC
immediately began training personnel. The programs were
launched one month later and in July 2008, there were public
hearings and the final regulations were adopted. Training and
the "ramp-up" of operations continued through the summer of
2008.
3:12:14 PM
CO-CHAIR EDGMON recognized Representatives Buch and Guttenberg.
3:13:17 PM
MR. BOLLING presented slide 6, titled Weatherization Program
Progress Report, and said that the previous income-based program
weatherized 600 homes; however, the current program will
weatherize 1,800 homes this year and the number is expected to
grow to 7,500 homes by the third year. He continued to explain
that $30 million is currently "on the street" and approximately
$60 million is projected for next fiscal year; furthermore, 56
communities were served this year and 76 are expected to be
served next year. Slide 8, titled Program Snapshot, indicated
that improvements on 700 homes were completed, 500 homes are
near completion, and 600 homes are being assessed or are in
early construction. Slide 9 listed the statewide weatherization
providers: Alaska Community Development Corporation, Interior
Weatherization, Municipality of Anchorage, Rural Community
Action Program, RuralCap-Juneau, and Tanana Chiefs Conference.
He noted that due to the dramatic increase in funding, 15 Alaska
Housing Authorities are also helping as weatherization
providers.
3:15:10 PM
MR. FAUST observed that the housing authorities have been
encouraged to form partnerships with private contractors and
public entities for the benefit of all.
3:16:37 PM
MR. BOLLING then introduced the Home Energy Rating Rebate
Program and said that [the program] is not based on income and
requires energy ratings before and after the recommended
improvements are made. Slide 12, titled Ratings Processed,
showed that 8,000 ratings have been completed; of those, 5,681
have been processed for a committed amount of $53.8 million. Of
the post-improvement rebates, 329 have been paid out at an
average of $5,907 each. Mr. Bolling opined that the average
pay-out amount will grow as the summer construction season
approaches.
3:17:57 PM
MR. FAUST reminded the committee that AHFC has made a pledge to
the legislature and the administration that AHFC will require
pre- and post-ratings to ensure the quality of work.
Accountability will complete AHFC's oversight of the program.
3:18:37 PM
CO-CHAIR EDGMON asked whether the completed applications have
been broken down by region.
3:18:54 PM
JOHN ANDERSON, Weatherization Officer, Research and Rural
Development, AHFC, answered that the majority of improvements
have been done in urban areas such as Anchorage and Fairbanks.
3:19:23 PM
MR. BOLLING added that 162 "5 Star Plus" rebates have been
funded for new homes. Speaking on the topic of rater
availability, Mr. Bolling said when the program was initiated
there were 38 raters in the state; presently there are 92, and
21 more are in training status. Moreover, AHFC is committed to
pay travel expenses so roving raters can serve small communities
and has centralized sign-up lists from each region to create one
equitable wait-list for homeowners.
3:21:18 PM
CO-CHAIR EDGMON observed raters are private entrepreneurs who
are free to charge whatever price they wish and he has received
complaints about inequities.
3:21:45 PM
BRYAN BUTCHER, Director, Governmental Relations & Public
Affairs, Executive Office, AHFC, agreed that excess fees were
charged; in fact, that was one of the reasons for the
centralized sign-up sheet. The centralized list enabled AHFC to
have some control and stopped raters from charging exorbitant
fees.
3:23:39 PM
MR. ANDERSON, in response to Representative Petersen, said that
AHFC is dispatching from 500 to 800 names per week on the
centralized list, although he was unsure of the waiting time in
each community.
3:24:26 PM
REPRESENTATIVE DAVID GUTTENBERG, Alaska State Legislature,
opined that the average charge for a home energy rating is
higher than the reimbursement of $325.
3:25:11 PM
MR. ANDERSON said he did not know what the average charge is
because the database is not yet complete. The raters have been
asked for figures to see if an increase in the reimbursement
amount is justified.
3:25:54 PM
REPRESENTATIVE GUTTENBERG said that he paid $500. He noted that
some of the raters prefer to advertise in their community and
maintain their own wait-lists.
3:27:02 PM
MR. BUTCHER explained that the problems in Fairbanks, such as
duplicate lists, have been taken care of. At this time, because
the price of oil has dropped, applications in Fairbanks have
slowed and the wait-list is short.
3:28:12 PM
MR. BOLLING presented slide 14 that showed 8,380 applications
are on the statewide waiting list and that 6,441 applications
were dispatched to raters from October [2008] to the end of
January [2009].
3:29:24 PM
MR. ANDERSON, in response to Co-Chair Edgmon, responded that
based on 2000 census data between 70,000 and 75,000 homes
statewide would be eligible to participate in the energy rebate
program and 140,000 homes would be eligible to participate in
the weatherization program.
3:29:57 PM
REPRESENTATIVE DAHLSTROM assumed that the aforementioned
estimate for Anchorage includes the Matanuska-Susitna Valley.
3:30:13 PM
MR. ANDERSON said no.
3:30:38 PM
MR. BUTCHER offered to provide the figures for every community
in the state.
3:31:01 PM
MR. ANDERSON, in response to Representative Dahlstrom, explained
that an applicant is assigned a number on the wait-list that is
their true placement on the list for their community.
3:31:42 PM
MR. BUTCHER added that when an applicant's number is zero it
means they are within two weeks of receiving an appointment with
a rater.
3:32:25 PM
MR. ANDERSON, in response to Representative Petersen,
confirmed that the wait-list is only for applicants awaiting
their first rating. Also, the AHFC reimbursement is $325 for
the [first] rating and $175 for the post-rating.
3:33:15 PM
MR. BOLLING presented slide 15 that indicated the total amount
spent by homeowners to date was $2,841,226, the average rebate
was $5,942, and the average homeowner investment was $3,528.
Slide 16 indicated that the overall energy cost savings per
household was $1,355 per year and carbon dioxide emissions
reductions averaged 12,228 pounds per year per household. Total
energy saved was 17.2 billion British thermal units (Btus).
3:34:55 PM
CO-CHAIR EDGMON asked whether AHFC was in the process of
establishing a higher number on the energy rating system.
3:35:08 PM
MR. ANDERSON said yes. Within six months there will be a "6
Star Green Level."
3:35:49 PM
MR. ANDERSON, in further response, stated that the proposed
[standards] re-write will include appliances and electrical
appliance components.
3:36:02 PM
REPRESENTATIVE GUTTENBERG asked what can be done at the national
level to require manufacturers to save energy by designing
appliances that shut off.
3:36:31 PM
MR. BOLLING advised that there are national standards; in fact,
the "Energy Star Label" is a successful program that has driven
the market toward more efficient appliances.
3:37:27 PM
MR. BUTCHER, Representative Guttenberg, and Representative
Petersen related their personal experiences with water heaters.
3:39:18 PM
MR. BOLLING presented slide 17 that displayed on a bar graph
allocations versus encumbrances by region.
3:40:18 PM
MR. BUTCHER, in response to Co-Chair Edgmon, explained AHFC used
an equation whereby population, heating degree days, and cost of
heat are factors; thus a disproportionate share was allocated to
Fairbanks and rural areas. Although some regions are not ready
to utilize the funds, they still received their allocation.
Furthermore, the additional $60 million allocation is a
contingency fund for areas such as Fairbanks, Haines, and
Wrangell.
3:42:08 PM
CO-CHAIR EDGMON asked for the status of the total appropriation
for these programs.
3:42:25 PM
MR. BUTCHER said that approximately $90 million is encumbered or
will be shortly; AHFC does not anticipate the need for more
funding for FY 2010. At the end of 2009 there will be data that
will reveal the percentage of residents completing improvements
and the total participation in the programs.
3:43:33 PM
MR. BOLLING spoke of the training component illustrated on
slides 20-22. Classes were increased to accommodate for
weatherization service providers, housing authorities, energy
raters, contractors, and the general public. From April to
December 2008, approximately 121 professional classes were
offered to 2,615 students and 13 consumer classes were held for
464 students. These classes were held in 14 areas of the state.
Training Partners include: Alaska Building Science Network,
Alaska Works, Alaska Craftsman Home Program, Northern Building
Science Group, University of Alaska Fairbanks Cooperative
Extension, University Alaska Southeast Building Science Program,
Wisdom & Associates, Cold Climate Housing Research Center,
Opportunity Council, and Building Performance Institute.
3:46:18 PM
MR. BOLLING, in response to Representative Dahlstrom, stated
that the consumer classes are on AHFC's website and are offered
at no charge.
3:46:45 PM
MR. FAUSKE informed the committee that there is national
interest in Alaska's energy and weatherization programs. In
fact, information on the programs will be presented to the
secretary of the [U. S. Department of Energy]. He related his
past experience with the Federal National Mortgage Association
(FNMA) and efforts to provide similar programs on a national
level. Mr. Fauske predicted that these programs will become a
national standard due to their success saving energy and
creating thousands of jobs. He concluded that AHFC was not
asking for more money at this time and the program was in great
shape.
3:51:08 PM
REPRESENTATIVE PETERSEN asked how long before the program runs
out of money.
3:51:30 PM
MR. BUTCHER expects the Weatherization program to go to the end
of 2010. The Home Energy Rebate program should have sufficient
funds until FY 2010, although the total volume is unknown at
this time.
3:52:14 PM
REPRESENTATIVE DAHLSTROM asked whether raters are bonded and
subject to security checks.
3:52:52 PM
MR. ANDERSON stated that raters are required to provide criminal
background checks and insurance, and to hold a current business
license; however, bonding is not required.
3:53:40 PM
REPRESENTATIVE RAMRAS opined that AHFC was the most successful
program ever innovated in the state and he listed its benefits
to Alaskans. Turning to the subject of the allocation of
program funds by region, he pointed out that the lowest
allocations and encumbrances are in Northern, Western, and
Southwest Alaska. These regions have the most expensive energy
costs - $7.79 per gallon for home heating oil - but have the
least allocation. He asked for a program snapshot to show
energy savings by region and thereby take degree days and the
cost of fuel into consideration. Also, he pointed out that
money goes farther in urban areas, and asked whether the program
factors in geographic sensitivity to the cost of labor and
materials. Representative Ramras surmised that although this
program was not affected by affluence, but only by the efforts
of an individual to make improvements, when looking at [slide
17], it was evident that implementation of the program was not
as successful in the areas of Alaska that are most in need.
3:59:28 PM
REPRESENTATIVE RAMRAS continued to compare the costs of
utilities, materials, transportation, and labor throughout the
Pacific Northwest. He stressed that a comparison of these costs
would be very useful information to AHFC and the legislature,
especially for future funding requests.
4:00:42 PM
MR. FAUST pointed out that AHFC expected the majority of money
for the rural areas would be under the Weatherization program,
not the Rebate program. The Weatherization program goes up to
100 percent of [poverty level] income and has a limit of $30,000
per home. This data is being tracked closely and agreed that
rebates are at a lower percentage in rural areas. He predicted
there will be a great deal of Weatherization money spent in
urban areas also.
4:01:32 PM
MR. BUTCHER assured the committee everything asked for will be
provided as the databank increases. The information presented
is but a snapshot of 200 homes; as the post-rating data is
collected it will be broken down by region, community, and fuel
type. Later this year, or certainly by next legislation
session, AHFC will be able to provide a detailed view on what is
happening all over the state. Regarding the discrepancies in
costs for different areas, he said that for the last 20 years
the Weatherization program has broken out the distribution of
funds to communities on the road system from those that only
have summer supplies of fuel. Furthermore, the available funds
averaged $2,000 per home as compared with $11,000 per home that
is now available. The final data from the first season will
show whether funding levels are appropriate; in fact, there may
be the need for a third category of communities that are not
urban but get fuel delivery year around.
4:03:52 PM
MR. FAUST added that the Rebate program encourages homeowners to
make additional [energy-saving and weatherization] improvements
by offering loans of up to $30,000 to finish the job.
4:05:16 PM
REPRESENTATIVE GUTTENBERG asked how the program adjusts for the
regional differences in the cost of materials.
4:06:17 PM
MR. BUTCHER explained that the post rating will include receipts
with all of the actual costs of materials. An applicant can not
go over the limit, but a house in Bethel gets a higher rebate
than a house in Anchorage because of the actual cost.
4:07:20 PM
REPRESENTATIVE PETERSEN, relating the comments of energy
experts, said that the most cost effective way to help in the
field of energy is conservation.
4:08:09 PM
MR. BUTCHER agreed. He said that AHFC is hoping that a
reduction of energy use will not only help the homeowner, but
also reduce pollution [by reducing carbon dioxide emissions],
help the community, and even the utility companies, especially
in rural Alaska.
4:09:53 PM
The committee took an at-ease from 4:09 p.m. to 4:15 p.m.
4:15:24 PM
CO-CHAIR EDGMON called the meeting back to order at 4:15 p.m.
4:15:39 PM
MARQUAM GEORGE, Associate Professor, Construction Technology
Career Education, University of Alaska Southeast, demonstrated
the AkWarm software program that is available for any individual
to download from AHFC's website. The homeowner can then enter
statistics from their home and find details on the effects and
costs of energy improvements to the dwelling. This document -
AkWarm Energy Efficiency Improvement Options - is also the
program used by an official energy rater when rating a home.
4:16:24 PM
MR. GEORGE displayed a sample rating on a home in Juneau. The
database allows the homeowner, or energy rater, to customize the
report for the location of the dwelling and then collects
information specific to the home such as the ventilation rate,
number of occupants, type of building, age, number of bedrooms,
square footage, type of garage, and outside walls that are
exposed to weather. During a home energy audit, a rater will
ask the owner for permission to share previous energy costs so
this information can be added to the AkWarm database. The rater
will also note the type of appliances and equipment in the house
and will look for safety issues. Mr. George said that raters
want a member of the household on site to point out problems and
complete the picture on how the house "operates." The rating
takes three to five hours, but the [heat loss] testing is quick
and he encourages the homeowner to observe the fan and "feel the
air leakage and the defects that are occurring in their home."
After the energy rating report is received homeowners often make
several calls with questions.
4:23:00 PM
MR. GEORGE continued to explain the details on the sample report
such as type and quality of the foundation, type of walls, and
whether the basement is below or above grade. He noted that the
sample house has no insulation in the walls so it is given a
rating of R-1, which is almost equal to "dead air." A rater may
need to make an educated assumption to complete the rating of
unseen materials.
4:25:16 PM
MR. GEORGE, responding to Representative Guttenberg, explained
how to use the database. He then continued to describe further
details of the sample home and demonstrated how the computer
program, as he chose improvement options, changed the rating for
the home. It is very important for the rater to communicate
with the homeowner on what can be accomplished for the home, he
said.
4:29:05 PM
CO-CHAIR EDGMON surmised this information encourages homeowners
to decide to make improvements beyond the amount of the rebate.
4:29:31 PM
MR. GEORGE then described the air leakage test for the sample
house with and without the garage.
4:30:26 PM
MR. BOLLING clarified that the fan used for the test is a device
called a blower door and it measures the air leakage of the
house.
4:30:49 PM
MR. GEORGE noted that the air leakage test will tell the rater
what amount of the house can never be closed - this is referred
to as "the hole in the house" - and determines the pressure
differential between inside and outside measured in pascals.
4:31:36 PM
REPRESENTATIVE TUCK asked how the space was sealed off to
measure the pressure from the inside to the outside.
4:31:49 PM
MR. GEORGE explained that the fan fits to the door with an
adjustable frame and tubing system. He noted that a rater can
determine the efficiency of the home's appliances by contacting
the Gas Appliance Manufacturers Association (GAMA). Mr. George
continued to point out the computer program's ability to allow
the rater to select various heating systems, thermostats, water
heaters, and appliances.
4:34:30 PM
MR. GEORGE, in response to Representative Tuck, described
various water heating systems. He continued his presentation
and said that the improvements recommended for the sample house
are estimated to cost $22,000 and would result in first-year
savings of $9,800. The next display was the Retro-fit Reporter
that gives the homeowner detailed information on the recommended
improvements. Mr. George concluded his presentation with slides
that described the recommended improvements for a median house
in Juneau.
4:42:37 PM
CO-CHAIR EDGMON thanked the presenter for his enlightening
presentation of a beneficial and educational tool.
4:44:08 PM
MR. BOLLING reminded the committee that the computer program is
available to all and is accompanied by a home energy rebate
consumer guide to help citizens understand the applications.
4:44:50 PM
CO-CHAIR MILLETT announced that there will be a joint meeting
with the Senate Special Committee on Energy on 2/10/09.
4:45:54 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 4:45 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AHFC Energy Cmte Presentation 0205.pdf |
HENE 2/5/2009 3:00:00 PM |