HB 335: "An Act creating the Alaska energy research and development program in the Alaska Energy Authority and providing for a Committee on Alaska Energy Research and Development to assist in the development of that program; and providing for an effective date."
00 HOUSE BILL NO. 335 01 "An Act creating the Alaska energy research and development program in the Alaska 02 Energy Authority and providing for a Committee on Alaska Energy Research and 03 Development to assist in the development of that program; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 44.83 is amended by adding new sections to read: 07 Article 3A. Alaska Energy Research and Development Program. 08 Sec. 44.83.201. Energy research and development. The authority shall 09 conduct a program of energy research, development, demonstration, and application. 10 The program shall be known as the Alaska energy research and development program. 11 The objectives of the program are to 12 (1) improve the development and application of reliable and cost- 13 efficient alternative energy sources in the state to reduce the cost of energy paid by 14 Alaska communities and make them less dependent on nonrenewable fuels and costly
01 energy supplies; 02 (2) attract advanced technology development companies for research, 03 development, testing, and deployment of alternative energy sources; and 04 (3) advance Alaska's competitiveness in the developing field of 05 alternative energy research and development. 06 Sec. 44.83.203. Administration and regulations. The authority shall 07 administer the Alaska energy research and development program. The authority shall 08 adopt regulations necessary to carry out the provisions of AS 44.83.201 - 44.83.229. 09 Sec. 44.83.205. Statewide surveys and report. The authority shall 10 (1) determine statewide by community and region the viability of 11 alternative energy sources and shall do so by assessing existing surveys and studies 12 and providing for the conduct of surveys and studies as needed, including a statewide 13 reconnaissance of available wind resource data; and 14 (2) produce a timely and periodical statewide report identifying by 15 individual community and region alternative energy resources that have the highest 16 likelihood of providing a long-term, cost-effective energy supply. 17 Sec. 44.83.207. Community meetings. The authority shall, at the request of a 18 community or region, conduct a public meeting in that community or region to discuss 19 the report published under AS 44.83.205, to help communities or regions understand 20 possible alternative energy options and decide whether to invest in one or more of 21 those options. 22 Sec. 44.83.209. Wind resource site visiting and monitoring. (a) For 23 communities or regions that decide to invest in development of a local wind-powered 24 energy supply, the authority shall provide, as needed, for 25 (1) site visits by experts to assess the wind power potential, if any, in 26 the interested community or region; and 27 (2) the installation of equipment to monitor wind resources for a time 28 determined by the authority as necessary to accurately assess the wind-powered 29 energy potential in the interested community or region. 30 (b) On completion of the on-site wind resource assessment and a preliminary 31 finding of significant wind power energy potential by the authority, the authority shall
01 provide for a preliminary design based on the wind resource assessment, real and 02 potential energy consumption, and other energy resources, real and potential. The 03 completed preliminary design must include an analysis of its feasibility. 04 (c) To the greatest extent practicable, site visits, deployment of monitoring 05 equipment, preliminary designs, and all other matters related to the Alaska energy 06 research and development program shall be managed to avoid redundancies and 07 unnecessary costs. 08 Sec. 44.83.211. Energy loan fund. (a) The energy loan fund is established. 09 The fund consists of 10 (1) appropriations made to the fund; 11 (2) repayment of principal of and interest on loans made under this 12 section; and 13 (3) funds acquired through the state sale of alternative energy and 14 carbon credits. 15 (b) The authority may make loans from the energy loan fund to energy 16 providers to pay the costs of 17 (1) license and permit applications, preconstruction engineering, and 18 design of alternative energy facilities; 19 (2) constructing and equipping alternative energy facilities; and 20 (3) training local residents to operate and maintain the local alternative 21 energy facility. 22 (c) A loan from the energy loan fund shall bear an annual rate of interest of 23 two percent of the unpaid balance of the loan. 24 (d) Money in the energy loan fund may be used by the legislature to make 25 appropriations for costs of administering the fund. 26 Sec. 44.83.213. Energy production incentive credits and debt reduction. (a) 27 An energy production incentive credit for power produced from an alternative energy 28 source is available to energy providers to reduce the principal of loans from the energy 29 loan fund. 30 (b) The authority may approve energy production incentive credits on receipt 31 of an application that establishes that the applicant is eligible to receive a credit. The
01 application shall be presented in a manner the authority establishes by regulation. 02 (c) Energy production incentive credits shall be applied annually to reduce the 03 principal of a loan from the energy loan fund. 04 (d) The energy production incentive credit is 1.5 cents a kilowatt hour 05 generated from an alternative energy facility that is subject to debt under the energy 06 loan fund. 07 (e) Application of energy production incentive credits to loans under this 08 section may not exceed 15 years for each loan. 09 Sec. 44.83.215. Energy portfolio standard; energy credits. (a) The authority 10 shall design 11 (1) a proposed energy portfolio standard requiring that energy 12 providers derive a portion of produced electricity through alternative energy sources; 13 and 14 (2) a system of tradable energy credits to meet the energy portfolio 15 standard requirement. 16 (b) The authority's proposed energy portfolio standard and its system of 17 tradable energy credits shall be presented by the authority to the legislature in the form 18 of draft legislation for consideration in January 2007 and may be submitted to the 19 legislature every January thereafter as needed to satisfy the requirements of (a) of this 20 section. 21 (c) In developing the energy portfolio standard and system of tradable energy 22 credits, the authority shall consider and give equal weight to the following goals: 23 (1) increase the use of alternative energy in communities and regions 24 statewide so all citizens and businesses may benefit; 25 (2) maintain or reduce the rate costs of electricity and lessen their 26 volatility; 27 (3) create jobs in Alaska and attract investors and investments to 28 Alaska. 29 Sec. 44.83.217. Direction to seek grant funds. The authority shall seek and 30 apply for assistance and grant funding from appropriate federal and private sources to 31 avoid, offset, or pay the financial costs of the Alaska energy research and development
01 program. 02 Sec. 44.83.221. Committee on Alaska Energy Research and Development. 03 (a) The Committee on Alaska Energy Research and Development is created in the 04 Department of Commerce, Community, and Economic Development. 05 (b) The committee consists of nine members appointed under AS 39.05.080 as 06 follows: 07 (1) two members who represent for-profit energy providers; 08 (2) two members who represent nonprofit energy cooperatives; 09 (3) one member who represents municipally owned electric utilities; 10 (4) two members who represent consumers; 11 (5) one member who represents a relevant academic field; and 12 (6) one member who represents energy investors. 13 (c) The committee shall elect a chair and, as needed, other officers from 14 among its members. 15 (d) Members of the committee serve staggered terms of four years and, on 16 expiration of their terms, continue to serve until their successors are appointed. 17 (e) A member of the committee may serve not more than two consecutive 18 terms. 19 Sec. 44.83.223. Powers and duties of the committee. The Committee on 20 Alaska Energy Research and Development shall 21 (1) assist the authority in designing and implementing the energy 22 portfolio standards and the system of tradable energy credits; 23 (2) provide oversight of the Alaska energy research and development 24 program; 25 (3) provide oversight of the bidding and awarding of contracts to 26 encourage the use of the most appropriate, cost-effective, and efficient technology in 27 alternative energy projects; and 28 (4) recommend to the legislature, the governor, state agencies, and 29 private entities the most appropriate policy and action to enhance the development of 30 alternative energy projects. 31 Sec. 44.83.229. Definitions. In AS 44.83.201 - 44.83.229,
01 (1) "alternative energy" means energy or fuel that is used for the 02 production of electricity, heat, or mechanical power and that is derived from 03 renewable or local sources other than liquid petroleum and includes 04 (A) wind, solar, geothermal, hydrogen, wave and tidal, and 05 biomass power sources; 06 (B) hydroelectric power sources first developed after the 07 effective date of this Act; and 08 (C) local sources of natural gas; 09 (2) "carbon credits" means tradable credits issued, if applicable, under 10 AS 44.37.200(b), or otherwise according to the amount of absorption of carbon and 11 then sold to emission sources to offset their emissions; 12 (3) "energy providers" means electric utilities, regional electric 13 authorities, municipalities, regional and village corporations, village councils, 14 independent power producers, and nonprofit marketing cooperatives. 15 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 APPOINTMENT OF INITIAL MEMBERS OF THE COMMITTEE ON ALASKA 18 ENERGY RESEARCH AND DEVELOPMENT. Notwithstanding AS 44.83.221(d), added 19 by sec. 1 of this Act, the persons first appointed as the members of the Committee on Alaska 20 Energy Research and Development shall serve terms as follows: 21 (1) three members serve for two years; 22 (2) three members serve for three years; 23 (3) three members serve for four years. 24 * Sec. 3. This Act takes effect July 1, 2006.