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SSSB 217: "An Act relating to the power cost reduction program and to the Alaska Energy Council; and providing for an effective date."

00 SPONSOR SUBSTITUTE FOR SENATE BILL NO. 217 01 "An Act relating to the power cost reduction program and to the Alaska Energy 02 Council; and providing for an effective date." 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 POWER COST REDUCTION PROGRAM. (a) The power cost reduction fund is 07 established in the Department of Commerce, Community, and Economic Development and 08 consists of appropriations to the fund. Money in the fund does not lapse. Interest earned on 09 money held in the fund before expenditure may be appropriated to the fund. 10 (b) The Department of Commerce, Community, and Economic Development may 11 expend money in the power cost reduction fund for monthly power cost reduction payments 12 to utilities and individuals under (c) and (d) of this section without further appropriation. 13 Payments may be made only after the state receives an additional amount of the tax as 14 determined under AS 43.55.011(g) for 12 consecutive months, and payments shall be made

01 for each of the 12 consecutive months thereafter. However, only one monthly power cost 02 reduction payment may be made for the benefit of each residence. Each monthly power cost 03 reduction payment equals $62.50. If there is insufficient money in the fund to make payments 04 for a month, based on the amount available in the fund, the amount of each power cost 05 reduction payment for that month shall be reduced by an equal amount. 06 (c) If a monthly power cost reduction payment is available under (b) of this section 07 for a month, by the 10th day of the immediately following month, each utility shall submit to 08 the Department of Commerce, Community, and Economic Development a list of the 09 residential electric meters to which the utility provided service during that month. The 10 department shall pay to the electric utility the monthly payment for each of the listed 11 residential meters, and the utility shall provide a credit in the amount of the monthly payment 12 to offset charges for each of the listed meters. 13 (d) The head of a household that does not receive electric service from an electric 14 utility may apply to the Department of Commerce, Community, and Economic Development 15 on a form provided by the department for a payment for each month for which power cost 16 reduction payments are available under (b) of this section. Only one monthly payment may be 17 made for the benefit of each household. 18 (e) A person who rents residential property but does not pay directly for electric 19 service is entitled to a credit from the landlord in the amount of the power cost reduction 20 payment for each month for which payments are available under (b) of this section. Only one 21 credit may be granted to each residence for a month. The credit shall be applied to reduce the 22 rent charged for that month. 23 (f) The Department of Commerce, Community, and Economic Development shall 24 adopt regulations under AS 44.62 (Administrative Procedure Act) necessary to carry out the 25 purposes of this section. The department may require information it considers necessary to 26 establish eligibility for power cost reduction payments and may establish application 27 deadlines. 28 (g) In determining the eligibility of an individual under a public assistance program 29 administered by the Department of Health and Social Services in which eligibility for 30 assistance is based on financial need, the Department of Health and Social Services may not 31 consider a payment or credit under this section as income or resources received by the

01 recipient of public assistance or by a member of the recipient's household unless required to 02 do so by federal law or regulation. The Department of Health and Social Services shall notify 03 all recipients of public assistance of the effects of receiving a payment or credit under this 04 section. 05 (h) An individual who is denied medical assistance under 42 U.S.C. 1396 - 1396p 06 (Social Security Act, Title XIX) solely because of the receipt of a payment or credit under this 07 section by the individual or by a member of the individual's household is eligible for state- 08 funded medical assistance under AS 47.25.120 - 47.25.300 (general relief assistance 09 program). The individual is entitled to receive, for a period not to exceed four months, the 10 same level of medical assistance as the individual would have received under 42 U.S.C. 1396 11 - 1396p (Social Security Act, Title XIX) had there been no power cost reduction program. 12 (i) An individual who is denied assistance solely because payments or credits under 13 this section received by the individual or by a member of the individual's household are 14 counted as income or resources under federal law or regulation is eligible for cash assistance 15 under AS 47.25.120 - 47.25.300 (general relief assistance program). Notwithstanding the limit 16 in AS 47.25.130, the individual is entitled to receive, for a period not to exceed four months, 17 the same amount as the individual would have received under other public assistance 18 programs had there been no power cost reduction program. 19 (j) A program administered by the state or any of its instrumentalities or 20 municipalities, the eligibility for which is based on financial need, may not consider a 21 payment or credit under this section as income or resources unless required to do so by federal 22 law or regulation. 23 (k) The Regulatory Commission of Alaska has no jurisdiction over the power cost 24 reduction program and may not consider the program in carrying out its responsibilities under 25 AS 42.05. 26 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 29 Economic Development may adopt regulations to carry out the purposes of the power cost 30 reduction program, enacted in sec. 1 of this Act. However, the regulations may not take effect 31 before the effective date of sec. 1 of this Act.

01 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 ALASKA ENERGY COUNCIL. (a) There is established in the Department of 04 Commerce, Community, and Economic Development the Alaska Energy Council. The 05 council consists of two senators appointed by the president of the senate, two representatives 06 appointed by the speaker of the house of representatives, the commissioner of commerce, 07 community, and economic development or the commissioner's designee, an employee of the 08 Office of the Governor appointed by the governor, and nine public members appointed by the 09 governor. Four of the public members shall represent businesses involved in energy 10 production, transportation, or distribution. Five of the public members shall be appointed from 11 different geographical areas of the state and shall represent energy users, including 12 environmental organizations. 13 (b) The members of the Alaska Energy Council shall elect a chair from among its 14 members and may meet as necessary to accomplish its purpose. Public members of the 15 council are entitled to travel expenses and to per diem under AS 39.20.180. 16 (c) The Alaska Energy Council shall develop an Alaska energy plan to provide an 17 economical energy delivery system. The plan must include specific recommendations for 18 addressing energy needs for 19 (1) residential housing, including weatherization and conservation methods; 20 and 21 (2) municipalities and rural communities, including public facility 22 improvements and conservation methods. 23 (d) The Alaska Energy Council shall submit the Alaska energy plan to the governor 24 and the legislature by February 1, 2010, and the council is terminated on April 1, 2010. 25 * Sec. 4. This Act is repealed July 1, 2011. 26 * Sec. 5. Sections 2, 3 and 4 of this Act take effect immediately under AS 01.10.070(c). 27 * Sec. 6. Section 1 of this Act takes effect July 1, 2008.