CSHB 152(FIN): "An Act establishing a renewable energy project account and a renewable energy fund and describing their uses and purposes."
00 CS FOR HOUSE BILL NO. 152(FIN) 01 "An Act establishing a renewable energy project account and a renewable energy fund 02 and describing their uses and purposes." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 LEGISLATIVE FINDINGS. The legislature finds that 07 (1) an adequate, reliable, reasonably priced, and safe supply of electrical 08 energy is necessary for Alaska's basic infrastructure, and economic and technological 09 development; 10 (2) Alaska possesses vast amounts of renewable energy resources in the form 11 of wind, solar, geothermal, wave, tidal, biomass, river, in-stream, and hydropower; 12 (3) the legislature established the Alaska Energy Policy Task Force in 2003 to 13 review and analyze the state's current and long-term energy needs; 14 (4) the task force found that one of Alaska's long-term energy needs is to
01 identify and evaluate long-term fuel resources, and recommended that the state should 02 increase the proportion of renewables in long term-fuel sources; 03 (5) the cost of fuels such as natural gas and diesel that Alaskans rely on in 04 large part to generate electric power is steadily rising; 05 (6) residents of rural Alaska pay far more for electricity than residents who 06 live on the Railbelt energy grid; 07 (7) there is virtually no fuel cost associated with renewable energy resources; 08 (8) other states and nations are working successfully to develop their 09 renewable energy resources; 10 (9) the continued competitiveness and stability of the state's economy requires 11 that the legislature consider national trends toward renewable energy development; 12 (10) renewable energy technology development promotes industry and creates 13 jobs; 14 (11) clean renewable energy has many environmental and health benefits; 15 (12) locally produced renewable energy has many security benefits; 16 (13) modern, affordable, and efficient renewable energy technologies now 17 exist; 18 (14) it is in the interest of the public for Alaska to develop its zero fuel cost 19 renewable energy resources; and 20 (15) natural gas should be considered as a last alternative for communities 21 with no other reasonable renewable resources. 22 * Sec. 2. AS 42.45.010 is amended by adding a new subsection to read: 23 (k) The renewable energy project account is established as a special account 24 within the power project fund. The renewable energy project account consists of 25 appropriations to the account, loan repayments, and interest earned by loans from the 26 account, and money from the power project fund allocated to the account by the 27 authority. The authority, in consultation with the advisory committee established 28 under AS 42.45.045(j), may make loans from the renewable energy project account for 29 renewable energy projects described in AS 42.45.045(f). 30 * Sec. 3. AS 42.45 is amended by adding a new section to read: 31 Sec. 42.45.045. Renewable energy fund. (a) A renewable energy fund is
01 established as a separate fund to finance certain energy projects in Alaska. 02 (b) The authority shall administer the fund as a fund distinct from other funds 03 of the authority. The fund consists of 04 (1) money appropriated to the fund by the legislature to provide grants 05 for certain energy projects; 06 (2) gifts, bequests, contributions from other sources, and federal 07 money; 08 (3) interest earned on the fund balance; and 09 (4) investments to be managed by the Department of Revenue. 10 (c) The fund is not a dedicated fund. 11 (d) The authority shall, in consultation with the advisory committee 12 established under (j) of this section, 13 (1) develop a methodology for determining the order of projects that 14 receive assistance, including separate requirements for grant eligibility, and adopt 15 regulations identifying criteria to evaluate the benefit and feasibility of projects for 16 which an applicant applies for support from the fund, with significant weight being 17 given to the amount of matching funds an applicant is able to make available; 18 (2) develop a methodology for allocating money from the fund; 19 (3) provide for renewable power production debt reimbursement grants 20 to help reduce the principal balance of loans for projects meeting the requirements of 21 (f), (g), or (h) of this section; and 22 (4) apply for and be able to receive contributions from other sources 23 for distribution as grants to eligible applicants. 24 (e) In consultation with the advisory committee established in (j) of this 25 section, the authority shall make grants to eligible applicants to finance feasibility 26 studies, reconnaissance studies, energy resource monitoring, and construction of 27 renewable energy projects, natural gas projects, or transmission or distribution 28 infrastructure located in Alaska that meet the requirements of (f), (g), or (h) of this 29 section, as applicable, and shall at least once each year, solicit from the advisory 30 committee funding recommendations for all grants. 31 (f) For a renewable energy project to qualify for a grant under (e) of this
01 section, the project must 02 (1) be a new project not in operation on the effective date of this Act or 03 an addition to an existing project made after the effective date of this Act; and 04 (2) be 05 (A) a hydroelectric facility; 06 (B) a direct use of renewable energy resources; 07 (C) a facility that generates energy from fuel cells that run on 08 renewable energy resources or natural gas; 09 (D) a facility that generates energy from in-stream kinetic 10 turbines; or 11 (E) a facility that generates energy from renewable energy 12 resources. 13 (g) To qualify for a grant under (e) of this section, a project that is a natural 14 gas project must benefit a community that 15 (1) has a population of 10,000 or less; and 16 (2) does not have economically viable renewable energy resources it 17 can develop. 18 (h) To qualify for a grant under (e) of this section, transmission or distribution 19 infrastructure must link a renewable energy project or natural gas project to the 20 transmission or distribution infrastructure. A grant may be made under this subsection 21 even if the grant applicant is not itself financing the construction of the renewable 22 energy project or natural gas project. 23 (i) Not more than five percent of the market value of the fund on June 30 of 24 the preceding fiscal year may be used for grants under this section in a fiscal year. The 25 authority may not grant more than five percent of the amount of the fund available on 26 June 30 of the preceding fiscal year for natural gas projects under (g) of this section. 27 (j) An advisory committee is established and consists of seven members 28 appointed by the governor to staggered three-year terms, with one representative to be 29 appointed from each of the following groups: 30 (1) small Alaska rural utilities serving not more than 10,000 people; 31 (2) large Alaska urban utilities;
01 (3) nonprofit environmental groups; 02 (4) nonprofit consumer groups; 03 (5) Alaska Native organizations; 04 (6) businesses engaged in the renewable energy sector; and 05 (7) the Denali Commission established under P.L. 105-277, 42 U.S.C. 06 3121 note. 07 (k) A member of the advisory committee appointed under (j) of this section 08 serves without compensation but is entitled to travel and per diem expenses as 09 provided in AS 39.20.180. 10 (l) In this section, 11 (1) "eligible applicant" means an electric utility holding a certificate of 12 public convenience and necessity under AS 42.05, independent power producer, local 13 government, or other governmental utility, including a tribal council and housing 14 authority; 15 (2) "fund" means the renewable energy fund; 16 (3) "hydroelectric facility" has the meaning given to the term "project" 17 under AS 42.45.350(g); 18 (4) "natural gas project" means use or access of natural gas other than 19 landfill or digester gas; 20 (5) "renewable energy resources" means 21 (A) wind, solar, geothermal, wave, tidal, river, in-stream, or 22 hydropower; 23 (B) low-emission nontoxic biomass based on solid or liquid 24 organic fuels from wood, forest and field residues, or animal products; 25 (C) dedicated energy crops available on a renewable basis; or 26 (D) landfill gas and digester gas. 27 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 TRANSITION. AS 39.05.055(5) applies to the initial appointments by the governor to 30 the advisory committee under AS 42.45.045(j), added by sec. 3 of this Act.