HB 118-MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS  10:17:05 AM CO-CHAIR COLVER announced that the first order of business would be HOUSE BILL NO. 118, "An Act adopting the Municipal Property Assessed Clean Energy Act; authorizing municipalities to establish programs to impose assessments for energy improvements in regions designated by municipalities; imposing fees; and providing for an effective date." 10:18:44 AM CO-CHAIR VAZQUEZ moved to adopt the proposed committee substitute (CS) for HB 118, labeled 29-GH1021\W, Shutts, 3/21/15, as the work draft. 10:18:51 AM CO-CHAIR COLVER objected. 10:18:58 AM GENE THERRIAULT, Deputy Director for Energy Policy and Outreach, Alaska Energy Authority (AEA), Department of Commerce, Community & Economic Development (DCCED), reminded the committee that at the hearing on 3/17/15, two proposed amendments to HB 118 were incorporated into one motion and adopted. However, in order to explain how both amendments were included in Version W of the bill, he addressed both of the amendments separately as they were labeled on 3/17/15. The amendment previously labeled 29- GH1021\A. 1, Shutts, 3/11/15 read: Page 1, following line 5: Insert a new bill section to read: "* Section 1. AS 29.10.200 is amended by adding a new paragraph to read: (65) AS 29.49 (energy improvement assessment programs)." Page 1, line 6: Delete "Section 1" Insert "Sec. 2" Renumber the following bill section accordingly. Page 10, following line 12: Insert a new section to read: "Sec. 29.49.890. Application of chapter. This chapter applies to home rule and general law municipalities." MR. THERRIAULT said the first part of the foregoing amendment is found in the proposed CS on page 1, lines 6 and 7, and the second part appears on page 10, beginning on line 31; AEA agreed that the language of the amendment has been properly incorporated into the bill. The amendment previously labeled 29-GH1021\A.3, Shutts, 3/16/15 read: Page 4, lines 9 - 10: Delete "as provided by" Insert "required under" Page 4, line 14, following "(I)": Delete "a" Page 4, line 19: Delete ", including the report required by" Insert "and the report required under" Page 4, line 20: Delete "a resolution" Insert "an ordinance" Page 4, line 22: Following "report": Insert "required" Following "AS 29.49.070": Insert ", which may be incorporated by reference" Page 4, lines 25 - 29: Delete all material. Reletter the following subsections accordingly. MR. THERRIAULT directed attention to Version W, page 4, line 30, and stated that the word "resolution" has been replaced with the word "ordinance," and on page 5, lines 5-9, language has been struck. Again, AEA agreed that the amendment has been properly incorporated. The CS also includes a number of other small, stylistic changes recommended by Legislative Legal Services (LLS), Legislative Affairs Agency. Finally, LLS suggested - and AEA agreed - that remaining questions about the bill regarding the proposed powers of municipalities could be addressed in the next committee of referral, the House Community and Regional Affairs Standing Committee. In that regard, Mr. Therriault advised that the administration has no intention to expand a municipality's power of taxation beyond that which already exists. 10:22:25 AM CO-CHAIR VAZQUEZ directed attention to letters in the committee packet from the Alaska Bankers Association and AEA in support of the bill. She read a letter from the Alaska Bankers Association dated 3/16/15 in part: Mortgage holders have a provision that safeguards their interest starting line 31, page 6: Section 29.49.080. Notice of mortgage holder required for participation. Before a municipality may enter into a written contract ... with a record owner of real property to impose an assessment to repay the financing of a qualified project under this chapter, the property owner shall give the holder of a mortgage lien on the property at least 30 days' written notice. CO-CHAIR VAZQUEZ suggested the following technical change: by certified mail. 10:24:08 AM CO-CHAIR COLVER removed his objection. Co-Chair Colver [moved to report CSHB 118, Version 29-GH1021\W, Shutts, 3/21/15], out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, CSHB 118(ENE) was reported out of the House Special Committee on Energy.