HCS CSSB 337(FIN) am H: "An Act relating to the powers of the Alaska Energy Authority to make grants and loans, to enter into contracts, and to improve, equip, operate, and maintain bulk fuel, waste energy, energy conservation, energy efficiency, and alternative energy facilities and equipment; relating to the bulk fuel revolving loan fund; relating to the Alaska Energy Authority's liability for the provision of technical assistance to rural utilities; relating to the continuation of the motor fuel tax rate for fuel produced from the processing of lignocellulose from wood or waste seafood; establishing a hydrogen energy partnership; relating to the Alaska Energy Authority's investment of the power development fund; repealing the electrical service extension fund; and providing for an effective date."
00 HOUSE CS FOR CS FOR SENATE BILL NO. 337(FIN) am H 01 "An Act relating to the powers of the Alaska Energy Authority to make grants and 02 loans, to enter into contracts, and to improve, equip, operate, and maintain bulk fuel, 03 waste energy, energy conservation, energy efficiency, and alternative energy facilities 04 and equipment; relating to the bulk fuel revolving loan fund; relating to the Alaska 05 Energy Authority's liability for the provision of technical assistance to rural utilities; 06 relating to the continuation of the motor fuel tax rate for fuel produced from the 07 processing of lignocellulose from wood or waste seafood; establishing a hydrogen energy 08 partnership; relating to the Alaska Energy Authority's investment of the power 09 development fund; repealing the electrical service extension fund; and providing for an 10 effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 41.98 is amended by adding a new section to read:
01 Sec. 41.98.190. Hydrogen energy partnership. (a) There is established in the 02 Department of Community and Economic Development the hydrogen energy 03 partnership. 04 (b) Members of the partnership shall be appointed by the commissioner of 05 community and economic development to represent 06 (1) the federal government; 07 (2) state government; 08 (3) the University of Alaska; 09 (4) political subdivisions of the state; 10 (5) tribal organizations of the state; 11 (6) the electric utility industry; 12 (7) the fossil fuel industry; 13 (8) nonfossil fuel energy industry; and 14 (9) private environmental conservation groups. 15 (c) The partnership members shall serve without compensation but are entitled 16 to transportation expenses and per diem as authorized for members of boards and 17 commissions under AS 39.20.180. 18 (d) The hydrogen energy partnership shall facilitate the development of a 19 hydrogen fuel industry in Alaska by means including 20 (1) meeting with hydrogen energy interests to plan hydrogen energy 21 research and development; 22 (2) proposing policy to promote federal and private industry 23 investment in hydrogen energy research and development; 24 (3) evaluating the market for hydrogen energy production; 25 (4) proposing tax incentives for investment in a hydrogen energy 26 infrastructure; and 27 (5) reporting annually to the legislature on or before the 20th day of 28 each regular session on the development of hydrogen energy production in the state. 29 * Sec. 2. AS 42.45.010(b) is amended to read: 30 (b) The [SUBJECT TO AS 42.45.060, THE] authority may make loans from 31 the power project fund
01 (1) to electric utilities, regional electric authorities, municipalities, 02 regional and village corporations, village councils, independent power producers, and 03 nonprofit marketing cooperatives to pay the costs of 04 (A) reconnaissance studies, feasibility studies, license and 05 permit applications, preconstruction engineering, and design of power projects; 06 (B) constructing, equipping, modifying, improving, and 07 expanding small-scale power production facilities that are designed to produce 08 less than 10 megawatts of power, [CONSERVATION FACILITIES,] bulk fuel 09 storage facilities, and transmission and distribution facilities, including energy 10 production, transmission and distribution, [AND] waste energy, energy 11 conservation, energy efficiency, and alternative energy facilities and 12 equipment [THAT DEPEND ON FOSSIL FUEL, WIND POWER, TIDAL, 13 GEOTHERMAL, BIOMASS, HYDROELECTRIC, SOLAR, OR OTHER 14 NONNUCLEAR ENERGY SOURCES]; and 15 (C) reconnaissance studies, preconstruction engineering, 16 design, construction, equipping, modification, and expansion of potable water 17 supply including surface storage and groundwater sources and transmission of 18 water from surface storage to existing distribution systems; 19 (2) to a borrower for a power project or for bulk fuel, waste energy, 20 energy conservation, energy efficiency, or alternative energy facilities or 21 equipment if 22 (A) the loan is entered into under a leveraged lease financing 23 arrangement; 24 (B) the party that will be responsible for the power project is an 25 electric utility, regional electric authority, municipality, regional or village 26 corporation, village council, independent power producer, or nonprofit 27 marketing cooperative; and 28 (C) the borrower seeking the loan demonstrates to the authority 29 that the financing arrangement for the power project will reduce project 30 financing costs below costs of comparable public power projects. 31 * Sec. 3. AS 42.45.010 is amended by adding a new subsection to read:
01 (j) The authority may not enter into a loan from the power project fund for a 02 major project unless it has legislative approval of the project and the amount. An 03 appropriation for the loan that names the project constitutes approval required by this 04 subsection. A major project is a project in which the cumulative state monetary 05 involvement, through loans, grants, and bonds, is at least $5,000,000 or a project for 06 which a loan of more than $5,000,000 has been requested. 07 * Sec. 4. AS 42.45.020(b) is amended to read: 08 (b) The [SUBJECT TO AS 42.45.060, THE] authority may make loans from 09 the rural electrification revolving loan fund to electric utilities certified under 10 AS 42.05. A loan from the fund may be made only for the purpose of extending new 11 electric service into an area of the state that an electric utility may serve under a 12 certificate of public convenience and necessity issued under AS 42.05. A loan may be 13 made from the fund to an electric utility if the utility invests the money necessary to 14 provide one pole, one span of line, one transformer, and one service drop for each 15 consumer for whom immediate service would be provided by the extension of electric 16 service. However, a loan may not be made from the fund unless the extension of 17 electric service would provide immediate service to at least three consumers. 18 * Sec. 5. AS 42.45.170(a) is amended to read: 19 (a) An electric utility that is not subject to rate regulation by the Regulatory 20 Commission of Alaska under AS 42.05 may receive power cost equalization if the 21 utility is otherwise eligible for equalization assistance under AS 42.45.100 - 42.45.150 22 and if the utility 23 (1) files with the commission financial data necessary to determine the 24 power cost equalization per kilowatt-hour as prescribed by the commission and that is 25 in compliance with AS 42.45.100 - 42.45.150; 26 (2) reports monthly to the authority, within the time and in the form 27 required, the information required in (b) of this section; 28 (3) sets rates 29 (A) that consider the power cost equalization provided under 30 AS 42.45.100 - 42.45.150 by subtracting from its revenue requirements for 31 electric services the power cost equalization per kilowatt-hour that it is eligible
01 to receive; and 02 (B) under which the power cost equalization provided in 03 AS 42.45.070 - 42.45.110 [AS 42.45.060 - 42.45.110] is applied as a credit 04 only against the cost of kilowatt-hours eligible for equalization assistance 05 under AS 42.45.100 - 42.45.150 that are consumed by each customer in any 06 month; 07 (4) allows audits that the commission determines are necessary to 08 ensure compliance with this section; and 09 (5) furnishes its electric service customers eligible under this program 10 a notice as specified in AS 42.45.120. 11 * Sec. 6. AS 42.45.250(a) is amended to read: 12 (a) The bulk fuel revolving loan fund is established in the authority to assist 13 communities, utilities providing power in communities, and fuel retailers in 14 communities in purchasing bulk fuel to generate power or supply the public with 15 fuel for use in communities. A community, or a person generating power or 16 selling fuel in a community [PRIVATE INDIVIDUAL] who has written 17 endorsement from the governing body of each [THE] community for which a loan 18 from the fund is sought, is eligible for a loan from the bulk fuel revolving loan fund 19 for a [BULK FUEL] purchase of an emergency supply or a semiannual or annual 20 supply of bulk fuel to be used in the community. 21 * Sec. 7. AS 42.45.250(e) is amended to read: 22 (e) Loans made from the bulk fuel revolving loan fund to one borrower in any 23 fiscal year [ARE NOT SUBJECT TO AS 42.45.060 AND] 24 (1) may not exceed $300,000; 25 (2) shall be repaid in one year or less; and 26 (3) may not exceed 90 percent of the wholesale price of the fuel 27 purchased. 28 * Sec. 8. AS 42.45.250(l) is amended by adding a new paragraph to read: 29 (3) "person" has the meaning given in AS 01.10.060 and includes a 30 corporation, a cooperative, a joint venture, and a governmental entity. 31 * Sec. 9. AS 42.45.400 is amended by adding a new subsection to read:
01 (c) This section does not create a duty in tort, and may not be the basis for an 02 action against the state, the authority, or the officers, employees, agents, or contractors 03 of either for damages, injury, or death. 04 * Sec. 10. AS 43.40.010(a) is amended to read: 05 (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 06 otherwise transferred within the state, except that 07 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; 08 (2) the tax on motor fuel used in and on watercraft of all descriptions is 09 five cents a gallon; 10 (3) the tax on all aviation fuel other than gasoline is three and two- 11 tenths cents a gallon; and 12 (4) the tax rate on motor fuel that is blended with alcohol is the same 13 tax rate a gallon as other motor fuel; however, 14 (A) in an area and during the months in which fuel containing 15 alcohol is required to be sold, transferred, or used in an effort to attain air 16 quality standards for carbon monoxide as required by federal or state law or 17 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a 18 gallon less than the tax on other motor fuel not described in (1) - (3) of this 19 subsection; 20 (B) notwithstanding (A) of this paragraph, through June 30, 21 2009 [2004], the tax on motor fuel sold or otherwise transferred within the 22 state is eight cents a gallon less than the tax on other motor fuel not described 23 in (1) - (3) of this subsection if the motor fuel 24 (i) is at least 10 percent alcohol by volume, has been 25 produced from the processing of lignocellulose derived from wood, and 26 was produced in a facility that processes lignocellulose from wood, but 27 this reduction in the rate of tax applies to motor fuel sold or transferred 28 that contains alcohol that was produced only during the first five years 29 of the facility's processing of lignocellulose from wood; or 30 (ii) is at least 10 percent alcohol by volume, has been 31 produced from the processing of waste seafood, and was produced in a
01 facility that processes alcohol from waste seafood, but this reduction in 02 the rate of tax applies to motor fuel sold or transferred that contains 03 alcohol that was produced only during the first five years of the 04 facility's processing of alcohol from waste seafood. 05 * Sec. 11. AS 43.40.010(b) is amended to read: 06 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed by a 07 user, except that 08 (1) the tax on aviation gasoline consumed is four and seven-tenths 09 cents a gallon; 10 (2) the tax on motor fuel used in and on watercraft of all descriptions is 11 five cents a gallon; 12 (3) the tax on all aviation fuel other than gasoline is three and two- 13 tenths cents a gallon; and 14 (4) the tax rate on motor fuel that is blended with alcohol is the same 15 tax rate a gallon as other motor fuel; however, 16 (A) in an area and during the months in which fuel containing 17 alcohol is required to be sold, transferred, or used in an effort to attain air 18 quality standards for carbon monoxide as required by federal or state law or 19 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a 20 gallon less than the tax on other motor fuel not described in (1) - (3) of this 21 subsection; 22 (B) notwithstanding (A) of this paragraph, through June 30, 23 2009 [2004], the tax on motor fuel consumed by a user within the state is eight 24 cents a gallon less than the tax on other motor fuel not described in (1) - (3) of 25 this subsection if the motor fuel 26 (i) is at least 10 percent alcohol by volume, has been 27 produced from the processing of lignocellulose derived from wood, and 28 was produced in a facility that processes lignocellulose from wood, but 29 this reduction in the rate of tax applies to motor fuel consumed by a 30 user that contains alcohol that was produced only during the first five 31 years of the facility's processing of lignocellulose from wood; or
01 (ii) is at least 10 percent alcohol by volume, has been 02 produced from the processing of waste seafood, and was produced in a 03 facility that processes alcohol from waste seafood, but this reduction in 04 the rate of tax applies to motor fuel consumed by a user that contains 05 alcohol that was produced only during the first five years of the 06 facility's processing of alcohol from waste seafood. 07 * Sec. 12. AS 44.33.020 is amended by adding a new paragraph to read: 08 (44) provide staff support for the hydrogen energy partnership 09 established under AS 41.98.190, and the University of Alaska shall provide assistance 10 to the commissioner upon request. 11 * Sec. 13. AS 44.83.080 is amended to read: 12 Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 13 purposes, the authority has the following powers in addition to its other powers: 14 (1) to sue and be sued; 15 (2) to have a seal and alter it at pleasure; 16 (3) to make and alter bylaws for its organization and internal 17 management; 18 (4) to adopt regulations governing the exercise of its corporate powers; 19 (5) to improve, equip, operate, and maintain power projects and bulk 20 fuel, waste energy, energy conservation, energy efficiency, and alternative energy 21 facilities and equipment; 22 (6) to issue bonds to carry out any of its corporate purposes and 23 powers, including the establishment or increase of reserves to secure or to pay the 24 bonds or interest on them, and the payment of all other costs or expenses of the 25 authority incident to and necessary or convenient to carry out its corporate purposes 26 and powers; 27 (7) to sell, lease as lessor or lessee, exchange, donate, convey, or 28 encumber in any manner by mortgage or by creation of any other security interest, real 29 or personal property owned by it, or in which it has an interest, when, in the judgment 30 of the authority, the action is in furtherance of its corporate purposes; 31 (8) to accept gifts, grants, or loans from, and enter into contracts or
01 other transactions regarding them, with any person; 02 (9) to deposit or invest its funds, subject to agreements with 03 bondholders; 04 (10) to enter into contracts with the United States or any person and, 05 subject to the laws of the United States and subject to concurrence of the legislature, 06 with a foreign country or its agencies, for the construction, financing, operation, and 07 maintenance of all or any part of a power project or bulk fuel, waste energy, energy 08 conservation, energy efficiency, or alternative energy facilities or equipment, 09 either inside or outside the state, and for the sale or transmission of power from a 10 project or any right to the capacity of it or for the security of any bonds of the 11 authority issued or to be issued for the project; 12 (11) to enter into contracts with any person and with the United States, 13 and, subject to the laws of the United States and subject to the concurrence of the 14 legislature, with a foreign country or its agencies for the purchase, sale, exchange, 15 transmission, or use of power from a project, or any right to the capacity of it; 16 (12) to apply to the appropriate agencies of the state, the United States, 17 and [TO] a foreign country and any other proper agency for the permits, licenses, or 18 approvals as may be necessary, [AND] to maintain and operate power projects in 19 accordance with the licenses or permits, and to obtain, hold, and use the licenses and 20 permits in the same manner as any other person or operating unit; 21 (13) to enter into contracts or agreements with respect to the exercise 22 of any of its powers, and do all things necessary or convenient to carry out its 23 corporate purposes and exercise the powers granted in this chapter; 24 (14) to recommend to the legislature 25 (A) the pledge of the credit of the state to guarantee repayment 26 of all or any portion of revenue bonds issued to assist in construction of power 27 projects; 28 (B) an appropriation from the general fund 29 (i) for debt service on bonds or other project purposes; 30 or 31 (ii) to reduce the amount of debt financing for the
01 project; 02 (15) to carry out the powers and duties assigned to it under AS 42.45; 03 (16) to make grants or loans to any person and enter into contracts 04 or other transactions regarding the grants or loans. 05 * Sec. 14. AS 44.83.386 is amended to read: 06 Sec. 44.83.386. Investment of fund. The authority [DEPARTMENT OF 07 REVENUE] shall invest the money in the fund in the manner provided in 08 [ACCORDANCE WITH] AS 37.10.070, 37.10.071, and 37.10.075. The authority 09 may withdraw [DEPARTMENT OF REVENUE SHALL PROVIDE] money from 10 [IN] the fund [TO THE AUTHORITY] only after costs have been incurred or amounts 11 in the fund have been otherwise obligated under contracts for the acquisition and 12 construction of a project. [AMOUNTS THAT HAVE BEEN OBLIGATED, BUT 13 FOR WHICH COSTS HAVE NOT YET BEEN INCURRED, MAY BE 14 SEGREGATED BY THE DEPARTMENT OF REVENUE OR TRANSFERRED TO 15 THE AUTHORITY ONLY WITH THE PRIOR APPROVAL OR AGREEMENT OF 16 THE COMMISSIONER OF REVENUE. INCOME RECEIVED ON MONEY THAT 17 IS SEGREGATED OR TRANSFERRED UNDER THIS SECTION MUST BE 18 DEPOSITED IN THE GENERAL FUND.] 19 * Sec. 15. AS 42.45.060, 42.45.250(l)(1); and AS 44.25.020(5) are repealed. 20 * Sec. 16. AS 42.45.200 is repealed. 21 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 TRANSITION. ELECTRICAL SERVICE EXTENSION FUND. Subject to 24 appropriation, the money in the electrical service extension fund established in former 25 AS 42.45.200, repealed by sec. 16 of this Act, is transferred to the general fund. 26 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 FUNDING FOR HYDROGEN ENERGY PARTNERSHIP. The commissioner of 29 community and economic development shall seek federal and private sources of funding to 30 cover the costs of the establishment of and operation of the hydrogen energy partnership 31 established in sec. 3 of this Act.
01 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 CONDITIONAL EFFECT. Sections 1 and 12 of this Act take effect only if the 04 Department of Community and Economic Development obtains sufficient funding under sec. 05 18 of this Act. 06 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 RETROACTIVITY. Sections 6 and 8 of this Act are retroactive to June 1, 1984. 09 * Sec. 21. If secs. 1 and 12 of this Act have not taken effect under sec. 19 of this Act by 10 June 30, 2009, secs. 1, 12, 18, and 19 of this Act are repealed June 30. 2009. 11 * Sec. 22. Sections 1 and 12 of this Act take effect 30 days after the commissioner of 12 community and economic development notifies the revisor of statutes that sufficient funding 13 required under sec. 18 of this Act has been obtained. 14 * Sec. 23. Sections 16 and 17 of this Act take effect July 1, 2004. 15 * Sec. 24. Except as provided in secs. 22 and 23 of this Act, this Act takes effect 16 immediately under AS 01.10.070(c).