SB 39-MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS    3:40:14 PM CHAIR BISHOP announced SB 39 to be up for consideration. SENATOR JOHN COGHILL, sponsor of SB 39, Alaska State Legislature, said the two issues before them today are important to help move the economy along. SB 39 is the Commercial Property Assessed Clean Energy Act that allows a municipality to do a bonding with the bill payments attached to municipal payments. Municipalities can contract with banks under that bonding and the debt goes with the real estate rather than the owner. It is a voluntary program that was set up for fuel change-out programs in Fairbanks, but it can be used all over Alaska. He explained that Fairbanks is under pressure for exceeding air quality particulate matter (PM) 2.5 and getting natural gas is important for that reason. He said that right now the fuels cost about the same, but the penalties for not complying combined with the health advantages of natural gas will make change-outs to natural gas a necessity. This issue was brought to him by the Alaska Energy Authority and it is not a new idea. It went through the legislature last session but just didn't get through. CHAIR BISHOP set SB 39 aside until later in the meeting. SB 39-MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS  3:46:06 PM CHAIR BISHOP announced SB 39 to be back up for consideration. 3:46:38 PM RYNNIEVA MOSS, staff to Senator Coghill, Alaska State Legislature, sponsor of SB 39, explained that SB 39 has an amendment that was prepared after consulting with the Alaska Energy Authority (AEA) and the Fairbanks North Star Borough. SENATOR MACKINNON moved Amendment 1. 30-LS0330\D.1 Shutts 1/31/17 AMENDMENT 1 OFFERED IN THE SENATE TO: SB 39 Page 7, lines 25 - 30: Delete all material and insert: "Sec. 29.55.120. Review required. The record owner of eligible property shall obtain from an independent third party the following: (1) for each proposed qualified project, (A) a review of the energy or emissions baseline conditions, as appropriate; and (B) the projected reduction in energy costs, energy consumption or demand, or emissions affecting local air quality, as appropriate; and (2) for each completed qualified project, verification that the qualified project was properly completed and is operating as intended." Page 9, following line 22: Insert a new paragraph to read: "(4) reduction of emissions affecting local air quality;" Renumber the following paragraphs accordingly. Page 10, line 16: Delete "decrease energy consumption or demand, including" Insert "reduce energy consumption or demand, energy costs, or emissions affecting local air quality, and includes" CHAIR BISHOP objected for explanation purposes. MS. MOSS explained that the amendment has two purposes. The first is to clarify on page 7, line 25, that the third party doing an independent assessment does an evaluation at the end of the project, too. The other half of this amendment and the other two amendments are just adds to the list of qualifications that a project will result in the reduction of emissions affecting local air quality. This is because at the current price of oil it's quite possible that converting from oil to natural gas at this time could result in little or no savings, but it would improve the air quality. CHAIR BISHOP removed his objection. SENATOR MACKINNON moved to report SB 39, as amended, from committee with individual recommendations and attached zero fiscal note. CHAIR BISHOP found no objection, and CSSB 39(CRA) moved from the Senate Community and Regional Affairs Standing Committee.