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CSSB 220(RES): "An Act declaring a state energy policy; relating to energy efficiency, energy conservation, and alternative energy; relating to an emerging energy technology fund and a renewable energy refundable tax credit; relating to a fuel purchasing cooperative, to the Alaska heating assistance program, to energy codes and efficiency standards, to a state agency energy use reduction program and to state energy use data, to the Southeast energy fund, to the alternative energy revolving loan fund, to nuclear energy production and facilities, to the definition of 'power project' or 'project' as it relates to rural and statewide energy programs and the Alaska Energy Authority, to the definition of 'alternative energy system,' and to the renewable energy grant fund; establishing an Alaska energy efficiency revolving loan fund; directing the Department of Transportation and Public Facilities to prepare a report on the feasibility of using compressed natural gas to power vehicles in the state, including vehicles owned or operated by the state, and including in that study, if warranted, a pilot program proposal for powering some vehicles owned or operated by the state with compressed natural gas; authorizing and relating to the issuance of bonds by the Alaska Housing Finance Corporation; and relating to an energy report by the Office of the Governor."

00 CS FOR SENATE BILL NO. 220(RES) 01 "An Act declaring a state energy policy; relating to energy efficiency, energy 02 conservation, and alternative energy; relating to an emerging energy technology fund 03 and a renewable energy refundable tax credit; relating to a fuel purchasing cooperative, 04 to the Alaska heating assistance program, to energy codes and efficiency standards, to a 05 state agency energy use reduction program and to state energy use data, to the 06 Southeast energy fund, to the alternative energy revolving loan fund, to nuclear energy 07 production and facilities, to the definition of 'power project' or 'project' as it relates to 08 rural and statewide energy programs and the Alaska Energy Authority, to the definition 09 of 'alternative energy system,' and to the renewable energy grant fund; establishing an 10 Alaska energy efficiency revolving loan fund; directing the Department of 11 Transportation and Public Facilities to prepare a report on the feasibility of using 12 compressed natural gas to power vehicles in the state, including vehicles owned or

01 operated by the state, and including in that study, if warranted, a pilot program 02 proposal for powering some vehicles owned or operated by the state with compressed 03 natural gas; authorizing and relating to the issuance of bonds by the Alaska Housing 04 Finance Corporation; and relating to an energy report by the Office of the Governor." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 SHORT TITLE. This Act may be known as the Alaska Sustainable Energy Act. 09 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 LEGISLATIVE POLICY. The legislature recognizes that the state's economic 12 prosperity is dependent on available, reliable, and affordable residential, commercial, and 13 industrial energy to supply the state's electric, heating, and transportation needs. The 14 legislature further recognizes that energy efficiency, renewable energy, fossil fuels, and 15 conservation will each play an important role in meeting the state's energy needs, which vary 16 widely across the state's diverse geographic regions. In establishing a state energy policy, the 17 legislature intends for the state to achieve a 10 percent increase in energy efficiency from 18 2010 levels by 2015 and a 15 percent increase in energy efficiency by 2020, after accounting 19 for growth in population and economy. Therefore, it is the policy of the state to 20 (1) institute a comprehensive and coordinated approach to supporting energy 21 efficiency and conservation by 22 (A) establishing statewide energy efficiency codes for new and 23 renovated public buildings and by assisting local communities interested in adopting 24 energy efficiency codes for new and renovated residential and commercial buildings; 25 (B) decreasing public building energy consumption through 26 conservation measures and energy-efficient technologies; and 27 (C) educating state residents on the benefits of energy efficiency and 28 conservation, including dissemination of information on state and federal programs 29 that reward energy efficiency;

01 (2) encourage economic development by 02 (A) promoting the development of renewable energy resources, 03 including geothermal, wind, solar, hydroelectric, hydrokinetic, tidal, and biomass 04 energy with a goal of generating 50 percent of the state's electricity using renewable 05 energy resources by 2020; 06 (B) promoting the development, transport, and efficient use of 07 nonrenewable energy resources, including natural gas, coal, oil, nuclear energy, gas 08 hydrates, and heavy oil, for use by Alaskans, for export, and as feedstock for value- 09 added enterprises; 10 (C) working to identify and assist with development of the most cost- 11 effective, long-term sources of energy for each community statewide; 12 (D) creating and maintaining a state fiscal regime that encourages 13 private sector development of the state's energy resources; 14 (E) ensuring a reliable in-state gas supply for residents of the state; 15 (3) support energy research, education, and workforce development by 16 investing in 17 (A) training and education programs that address energy conservation, 18 efficiency, extraction, processing, and transportation, including programs that address 19 workforce development and workforce transition; and 20 (B) applied energy research and development of emerging 21 technologies, including university programs, to achieve reductions in state energy 22 costs and stimulate industry investment in the state; 23 (4) coordinate governmental functions by 24 (A) actively collaborating with the private sector and local and federal 25 agencies to achieve the state's energy goals and to meet emissions, renewable energy, 26 and energy production targets; and 27 (B) reviewing and streamlining regulatory processes and balancing the 28 economic costs of review with the level of review necessary to protect the public 29 interest. 30 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:

01 PURPOSE. The purpose of AS 44.42.067, enacted by sec. 23 of this Act, is to reduce 02 the amount of energy consumed by public facilities in use in 2010 by 15 percent by 2020, 03 thereby reducing costs to the state and increasing jobs in energy efficiency industries. 04 * Sec. 4. AS 14.08.101 is amended to read: 05 Sec. 14.08.101. Powers. A regional school board may 06 (1) sue and be sued; 07 (2) contract with the department, the Bureau of Indian Affairs, or any 08 other school district, agency, or regional board for the provision of services, facilities, 09 supplies, or utilities; 10 (3) determine its own fiscal procedures, including but not limited to 11 policies and procedures for the purchase of supplies and equipment; the regional 12 school boards are exempt from AS 37.05 (Fiscal Procedures Act) and AS 36.30 (State 13 Procurement Code); 14 (4) appoint, compensate, and otherwise control all school employees in 15 accordance with this title; these employees are not subject to AS 39.25 (State 16 Personnel Act); 17 (5) adopt regulations governing organization, policies, and procedures 18 for the operation of the schools; 19 (6) establish, maintain, operate, discontinue, and combine schools 20 subject to the approval of the commissioner; 21 (7) recommend to the department projects for construction, 22 rehabilitation, and improvement of schools and education-related facilities as specified 23 in AS 14.11.011(b), and plan, design, and construct the project when the responsibility 24 for it is assumed under AS 14.11.020; 25 (8) by resolution adopted by a majority of all the members of the board 26 and provided to the commissioner of the department, assume ownership of all land and 27 buildings used in relation to the schools in the regional educational attendance area, as 28 provided for in AS 14.08.151(b); 29 (9) provide housing for rental to teachers, by leasing existing housing 30 from a local agency or individual, by entering into contractual arrangements with a 31 local agency or individual to lease housing that will be constructed by the local agency

01 or individual for that purpose, or, without using for the purpose that portion of public 02 school funding that consists of state aid provided under AS 14.17, by constructing or 03 otherwise acquiring housing that is owned and managed by the regional educational 04 attendance area for rental to teachers; 05 (10) employ a chief school administrator; 06 (11) apply for and use the proceeds of a loan from the Alaska 07 energy efficiency revolving loan fund (AS 18.56.855); 08 (12) exercise those other functions that may be necessary for the 09 proper performance of its responsibilities. 10 * Sec. 5. AS 18.45.020 is amended to read: 11 Sec. 18.45.020. United States licenses or permits required. A person may 12 not manufacture, construct, produce, transfer, acquire, or possess a special nuclear 13 material, by-product material, special nuclear material facility, by-product material 14 facility, production facility, or utilization facility, or act as an operator of a production 15 facility or utilization facility, wholly within the state without first obtaining a license 16 or permit for the activity in which the person proposes to engage from the Nuclear 17 Regulatory Commission if the commission requires a license or permit to be obtained 18 by persons proposing to engage in the activities. 19 * Sec. 6. AS 18.45.025(a) is amended to read: 20 (a) A person may not construct a nuclear fuel production facility, nuclear 21 utilization facility, utilization facility, reprocessing facility, or nuclear waste disposal 22 facility in the state without first obtaining a permit from the Department of 23 Environmental Conservation to construct the facility on land designated by the 24 legislature under (b) of this section. 25 * Sec. 7. AS 18.45.025(b) is amended to read: 26 (b) The legislature shall designate by law the land in the state on which a 27 nuclear fuel production facility, nuclear utilization facility, utilization facility, 28 nuclear reprocessing facility, or nuclear waste disposal facility may be located. In 29 designating the land in the state on which 30 (1) a nuclear utilization facility or utilization facility may be 31 located, the legislature shall act in the interest of regulating the economics of

01 nuclear energy; 02 (2) a nuclear fuel production facility, [NUCLEAR UTILIZATION,] 03 nuclear reprocessing facility, or nuclear waste disposal facility may be located, the 04 legislature shall act to protect the public health and safety. 05 * Sec. 8. AS 18.45.025(c) is repealed and reenacted to read: 06 (c) The Department of Environmental Conservation shall adopt regulations 07 governing the issuance of permits required by (a) of this section. However, a permit 08 may not be issued until the municipality with jurisdiction over the proposed facility 09 site has approved the permit. 10 * Sec. 9. AS 18.56.090 is amended by adding a new subsection to read: 11 (f) In furtherance of its corporate purpose, the corporation may, in cooperation 12 with the Alaska Energy Authority, provide technical assistance to municipalities 13 related to residential and commercial building energy codes and energy efficiency 14 standards. 15 * Sec. 10. AS 18.56 is amended by adding a new section to read: 16 Sec. 18.56.855. Alaska energy efficiency revolving loan fund. (a) The 17 Alaska energy efficiency revolving loan fund is established in the corporation to carry 18 out the purposes of this section. The revolving loan fund consists of money or assets 19 appropriated or transferred to the corporation for the revolving loan fund, including 20 money and assets deposited in the revolving loan fund by the corporation and earnings 21 on investments of money held in the revolving loan fund. The corporation may 22 establish separate accounts in the fund. The corporation shall establish the interest 23 rates, security provisions, and other terms of a loan made under this section taking into 24 consideration the corporation's cost of funds and other factors the corporation 25 considers appropriate. 26 (b) Money and other assets of the Alaska energy efficiency revolving loan 27 fund may be used to 28 (1) make loans to regional educational attendance areas or to municipal 29 governments, including subdivisions of municipal governments, or to the state for the 30 purpose of financing energy efficiency improvements to buildings owned by regional 31 educational attendance areas, by the state, or by municipalities in the state;

01 (2) secure bonds issued by the corporation to finance the loans 02 described in (1) of this subsection; 03 (3) pay costs of administering the revolving loan fund; and 04 (4) pay the costs of administering and enforcing the terms of loans 05 made by the corporation from the revolving loan fund. 06 (c) Before a regional educational attendance area, a municipal government, or 07 a subdivision of a municipal government, may borrow money from the corporation 08 under this section, the regional educational attendance area or the municipal 09 government shall waive any sovereign immunity defense it may have available to it 10 with respect to enforcement of the terms of the loan. A regional educational 11 attendance area or a municipal government may waive sovereign immunity to comply 12 with the requirement of this subsection. The state waives any sovereign immunity 13 defense against enforcement of the terms of a loan made to the state under this section. 14 A person or corporation having a claim under this section shall bring an action in a 15 state court in Alaska that has jurisdiction over the claim. 16 (d) All regional educational attendance areas and municipal governments in 17 the state are authorized to borrow from the corporation under this section. The 18 corporation shall set out the terms of a loan to a regional educational attendance area 19 in a loan agreement or similar document. At the discretion of the corporation, a 20 borrowing by a regional educational attendance area or a municipal government under 21 this section may be effected by use of a loan agreement or similar document 22 evidencing and setting out the terms of the loan or by issuance of a bond by the 23 municipal government to the corporation. Notwithstanding a charter provision 24 requiring public sale by a regional educational attendance area or a municipality of its 25 municipal bonds or other indebtedness, a regional educational attendance area or 26 municipality may sell its bonds under this section to the corporation at a negotiated, 27 private sale. At the discretion of the corporation, the bonds or other indebtedness of 28 the municipality may be general obligations of the municipality or may be secured by 29 an identified revenue source or by a combination of the full faith and credit of the 30 municipality and an identified revenue source. 31 (e) Notwithstanding any other provision of law, to the extent that a department

01 or agency of the state is the custodian of money payable to a regional educational 02 attendance area or to a municipality, at any time after written notice to the department 03 or agency head from the corporation that the regional educational attendance area or 04 municipality is in default on the payment of principal of or interest on municipal 05 bonds or other indebtedness then held or owned by the corporation, or amounts due 06 under an agreement between the corporation and a regional educational attendance 07 area or a municipality, the department or agency shall withhold the payment of that 08 money from that regional educational attendance area or municipality and pay over the 09 money to the corporation for the purpose of paying the principal of and interest on the 10 bonds or indebtedness. The notice must be given in each instance of default. If a notice 11 is given under this subsection and under AS 44.85.170 and the default is continuing 12 under this subsection and under AS 44.85.170, the department or agency shall make 13 payment to the corporation and to the Alaska Municipal Bond Bank Authority on a 14 pro rata basis, taking into consideration the principal amount of the respective default 15 amounts. 16 (f) An authorized state officer may borrow from the corporation under this 17 section for buildings owned by the state. The superintendent of a regional educational 18 attendance area, at the direction of the regional educational attendance area school 19 board, may borrow from the corporation under this section for buildings owned by the 20 regional educational attendance area. 21 (g) In addition to other security that may be given with respect to a loan made 22 under this section, the corporation may require a deed of trust on the building that is 23 the subject of the energy efficiency loan and the real estate on which the building is 24 located. A regional educational attendance area or a municipality may grant a deed of 25 trust to the corporation as needed for this purpose. An authorized state officer may 26 grant a deed of trust to the corporation as needed for this purpose. 27 (h) The corporation shall administer the Alaska energy efficiency revolving 28 loan fund in accordance with regulations adopted by the corporation. The corporation 29 may adopt regulations under AS 18.56.088 to carry out the purposes of this section. 30 (i) This section applies to home rule municipalities. 31 (j) In this section, "authorized state officer" means

01 (1) the commissioner of the department of the state for a building 02 owned by the state; 03 (2) the executive director of a public corporation for a building owned 04 by the public corporation; 05 (3) the legislative council for a building owned by the legislature; 06 (4) the administrative director of courts for a building owned by the 07 judicial system; 08 (5) any other person designated in writing by a person listed in (1) - (4) 09 of this subsection. 10 * Sec. 11. AS 35.10 is amended by adding a new section to article 1 to read: 11 Sec. 35.10.012. Alternative energy for public works. (a) For each public 12 work subject to AS 35.10.010 - 35.10.080, the construction of which begins on or after 13 January 1, 2011, the department shall consider using a nonfossil fuel fired alternative 14 energy system for heat or electrical power if the department reasonably believes that 15 an alternative energy system to supply heat or power is available that 16 (1) is comparably reliable to a fossil fuel fired system; and 17 (2) if used over the course of the life of the facility, 18 (A) will not cost more than a fossil fuel fired system to 19 purchase, install, maintain, and operate; and 20 (B) will have less measurable adverse effect on the 21 environment than a fossil fuel fired system. 22 (b) If the department determines that an alternative energy system described in 23 (a) of this section is available and can be used as a primary or secondary source of heat 24 or electrical power, as to a public work the construction of which under this chapter 25 begins on or after January 1, 2011, the department shall construct the public work to 26 accommodate or be compatible with the alternative energy system. 27 (c) In this section, "construction" does not include reconstruction, alteration, 28 improvement, or major repair. 29 * Sec. 12. AS 36.30 is amended by adding a new section to read: 30 Sec. 36.30.323. Consideration of energy efficient equipment. When the 31 Department of Administration enters into contracts to purchase equipment that uses

01 energy, it shall give consideration to the energy efficiency of the equipment where 02 credible and objective information on efficiency levels is readily available. 03 * Sec. 13. AS 37.07.040 is amended to read: 04 Sec. 37.07.040. Office of management and budget. The Alaska office of 05 management and budget shall 06 (1) assist the governor in meeting the requirements of AS 37.07.020, 07 including the coordination and analysis of state agency goals and objectives, plans, 08 and budget requests; 09 (2) prepare for submission to the governor an annually updated six- 10 year capital improvements program and the proposed capital improvements budget for 11 the coming fiscal year, the latter to include individual project justification with 12 documentation of estimated project cost; 13 (3) develop procedures to produce the information needed for effective 14 policy decision making, including procedures to provide for the dissemination of 15 information about plans, programs, and budget requests to be included in the annual 16 budget and opportunity for public review and comment during the period of budget 17 preparation; 18 (4) assist state agencies in their statement of goals and objectives to 19 achieve, among other things, the legislature's mission and desired results, preparation 20 of plans, assessments of the extent to which missions and desired results have been 21 achieved, budget requests, and reporting of program performance; all documents 22 forwarded by the office to a state agency containing instructions for the preparation of 23 program plans and budget requests and the reporting of program performance are 24 public information after the date they are forwarded; 25 (5) administer its responsibilities under the program execution 26 provisions of this chapter so that the policy decisions and budget determinations of the 27 governor and the legislature are implemented; 28 (6) provide the legislative finance division with the budget information 29 it may request; 30 (7) provide the legislative finance division with an advance copy of the 31 governor's budget workbooks at least seven days before the legislature convenes in a

01 regular session; 02 (8) prepare the proposed capital improvements budget for the coming 03 fiscal year evaluating both state and local requests from the standpoint of need, equity, 04 and priorities of the jurisdiction; other factors such as project amounts, population, 05 local financial match, federal funds being used for local match, municipality or 06 unincorporated community acceptance of the facility, and all associated costs of the 07 facility may be considered; 08 (9) for each department in the executive branch, report to the 09 legislature by the 45th day of each regular session the amount of money appropriated 10 to the department that is expected to lapse into the general fund at the end of the 11 current fiscal year; 12 (10) establish and administer a state agency program performance 13 management system involving planning, performance budgeting, performance 14 measurement, and program evaluation; the office shall ensure that information 15 generated under this system is useful for managing and improving the efficiency and 16 effectiveness of agency operations; 17 (11) by January 15, list each lease-purchase agreement entered into by 18 an agency during the immediately preceding fiscal year for the acquisition of 19 equipment or other personal property, together with a description of the property 20 acquired and financial details, including the purchase price, the term for payments, the 21 amount of each payment, and the amount of interest or financing charges paid; 22 (12) work with state agencies to develop a standardized 23 methodology to collect and store energy consumption and expense data. 24 * Sec. 14. AS 42.45.040 is repealed and reenacted to read: 25 Sec. 42.45.040. Southeast energy fund. (a) The Southeast energy fund is 26 established as a separate fund. The fund consists of money appropriated to the fund by 27 the legislature, including 28 (1) money transferred to it under former AS 42.45.050; 29 (2) gifts, bequests, contributions from other sources, and federal 30 money; and 31 (3) interest earned on the fund balance.

01 (b) The fund is not a dedicated fund. 02 (c) The authority may make grants from the Southeast energy fund for power 03 projects, repayment of loans, and payments on bonds 04 (1) for hydroelectric projects serving Southeast Alaska; or 05 (2) for other projects or programs designated by the legislature, to 06 assist in meeting the energy needs of Southeast Alaska. 07 (d) An appropriation from the fund for a project described in (c) of this section 08 lapses back into the fund if substantial, ongoing work on the project has not begun 09 within five years after the effective date of the appropriation. 10 * Sec. 15. AS 42.45.045(d) is amended to read: 11 (d) The authority shall, in consultation with the advisory committee 12 established under (i) of this section and the Department of Natural Resources, 13 (1) develop a methodology for determining the order of projects that 14 may 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 legislature, with the most weight being 17 given to projects that serve any area in which the average cost of energy to each 18 resident of the area exceeds the average cost to each resident of other areas of the 19 state, and significant weight being given to a statewide balance of grant funds, [AND] 20 to the amount of matching funds an applicant is able to make available for a project, 21 and to projects that are likely to have a financial benefit that exceeds the amount 22 of grant funds received; 23 (2) make recommendations to the legislature for renewable power 24 production reimbursement grants; [AND] 25 (3) not later than 10 days after the first day of each regular legislative 26 session, submit to the legislature a report summarizing and reviewing each grant 27 application submitted under this section and a recommended priority for awarding 28 grants; and 29 (4) require activity reports for each project funded at intervals 30 determined by the authority. 31 * Sec. 16. AS 42.45.045 is amended by adding a new subsection to read:

01 (m) The authority shall enter into contracts or agreements with experts to 02 assist in conducting an independent economic or financial analysis for each 03 recommended application. The information shall be included in the report to the 04 legislature required by (d) of this section. 05 * Sec. 17. AS 42.45 is amended by adding a new section to article 5 to read: 06 Sec. 42.45.260. Fuel purchasing cooperative. The authority shall facilitate 07 the organization of a statewide fuel purchasing cooperative by contacting and 08 providing technical assistance to potential participants in the cooperative, including 09 local governments, utilities, school districts, state agencies, tribal governments, 10 housing authorities, and other interested nonprofit entities. 11 * Sec. 18. AS 42.45 is amended by adding a new section to read: 12 Article 7A. Emerging Energy Technology Fund. 13 Sec. 42.45.375. Emerging energy technology fund. (a) The emerging energy 14 technology fund is established. The fund consists of 15 (1) money appropriated to the fund by the legislature to provide grants 16 for energy projects; 17 (2) amounts deposited under (f) of this section; and 18 (3) gifts, bequests, contributions from other sources, and federal 19 money appropriated to the fund. 20 (b) The fund is not a dedicated fund. 21 (c) The fund shall be administered by the authority, but the authority may 22 contract for the investment of money appropriated to the fund but not disbursed for a 23 grant. The authority, in consultation with the advisory committee established under (g) 24 of this section, may make grants from the fund to eligible applicants for 25 (1) research, development, or demonstration projects designed to 26 (A) test new energy technologies or methods of conserving 27 energy; or 28 (B) improve an existing energy technology; and 29 (2) applied research projects that employ energy technology with a 30 reasonable expectation that the technology will be commercially viable in not more 31 than five years.

01 (d) In making grants under this section, the authority, in consultation with the 02 advisory committee established under (g) of this section, shall give priority to 03 (1) Alaska residents, associations, organizations, or institutions; 04 (2) projects that demonstrate partnership with the University of Alaska 05 or another Alaska postsecondary institution; and 06 (3) projects supported by matching funds or in-kind partnerships. 07 (e) In administering the fund, the authority may enter into a contract or 08 agreement with the University of Alaska to provide technical and economic analysis 09 for the advisory committee established under (g) of this section and a review of the 10 projects awarded grants. 11 (f) As a condition of all grants awarded under this section, the authority shall 12 require that the grantee pay to the authority a fair and reasonable return to the fund, as 13 determined by the authority, from the revenue, economic value, or profits derived by 14 the grantee from the grant project. The authority shall deposit the amounts received 15 under this subsection into the fund. To secure payment of sums owed to the authority 16 under a grant agreement, the authority may own and take a security interest in patents, 17 copyrights, and other intellectual property. 18 (g) An advisory committee is established and consists of seven members. Each 19 member of the committee shall have a degree in science or engineering, or equivalent 20 professional experience, and at least two years of experience working in the state. 21 Members of the committee shall be appointed by the governor to staggered three-year 22 terms. The committee consists of one representative of each of the following groups: 23 (1) a business or organization engaged in the renewable energy sector; 24 (2) a business or organization engaged in the fossil fuel energy sector; 25 (3) the Alaska Power Association or an Alaska electric utility; 26 (4) the Denali Commission established under P.L. 105-277 and 27 mentioned in a note at 42 U.S.C. 3121; 28 (5) the National Renewable Energy Laboratory; 29 (6) the Arctic Energy Office of the National Energy Technology 30 Laboratory; 31 (7) the Alaska Industrial Development and Export Authority.

01 (h) A member of the advisory committee appointed under (g) of this section 02 serves without compensation but is entitled to per diem and travel expenses as 03 provided in AS 39.20.180. 04 (i) If a member of the advisory committee appointed under (g)(4), (g)(5), or 05 (g)(6) is not available to serve as a member of the committee, the governor shall 06 appoint a representative from a federal agency or department with a comparable 07 mission or purpose to the agency listed in (g)(4), (g)(5), or (g)(6) to fill the position on 08 the committee. If a representative from a federal agency or department is not available 09 to fill the position, the governor may appoint a member from a state agency or 10 department. 11 (j) In this section, 12 (1) "eligible applicant" means 13 (A) an electric utility holding a certificate of public 14 convenience and necessity under AS 42.05; 15 (B) an independent power producer; 16 (C) a local government, quasi-governmental entity, or other 17 governmental entity, including a tribal council or housing authority; 18 (D) a business holding an Alaska business license; or 19 (E) a nonprofit organization. 20 (2) "energy technology" means technology that promotes, enhances, or 21 expands the diversity of available energy supply sources or means of transmission, 22 increases energy efficiency, or reduces negative energy-related environmental effects; 23 "energy technology" includes technology related to renewable sources of energy, 24 conservation of energy, enabling technologies, efficient and effective use of 25 hydrocarbons, and integrated energy systems; 26 (3) "fund" means the emerging energy technology fund. 27 * Sec. 19. AS 42.45.990(4) is amended to read: 28 (4) "power project" or "project" means a plant, works, system, or 29 facility, together with related or necessary facilities and appurtenances, including a 30 divided or undivided interest in or a right to the capacity of a power project or project, 31 that is used or is useful for the purpose of

01 (A) electrical or thermal energy production [OTHER THAN 02 NUCLEAR ENERGY PRODUCTION]; 03 (B) waste energy utilization and energy conservation; or 04 (C) transmission, purchase, sale, exchange, and interchange of 05 electrical or thermal energy, including district heating or interties; 06 * Sec. 20. AS 43.20 is amended by adding a new section to read: 07 Sec. 43.20.046. Renewable energy credit. For purposes of calculating the tax 08 payable under this chapter, a taxpayer shall apply as a credit against tax liability any 09 renewable energy refundable tax credits earned under AS 43.98.040. 10 * Sec. 21. AS 43.98 is amended by adding a new section to read: 11 Sec. 43.98.040. Renewable energy refundable tax credit. (a) A person that 12 produces renewable energy may claim a renewable energy refundable tax credit in the 13 amount of 15 percent of the retail rate charged by the person, as determined by the 14 Regulatory Commission of Alaska for each kilowatt-hour of electricity produced from 15 renewable energy. 16 (b) A person may claim a credit under this section in the first year the capital 17 investment used to produce electricity from renewable energy is placed into service 18 and for the four years following that year. 19 (c) A person may claim a credit under this section only for a capital 20 investment 21 (1) to produce electricity from renewable energy that is placed into 22 service on or after the effective date of this Act; or 23 (2) to expand production of electricity from renewable energy if the 24 investment for production expansion is made on or after the effective date of this Act. 25 (d) A person 26 (1) shall use a credit under this section to offset taxes imposed under 27 AS 43.20 (Alaska Net Income Tax Act); and 28 (2) may not calculate and apply the credit against the alternative 29 minimum tax levied under the authority of AS 43.20.021(f). 30 (e) The department shall prescribe a form or format and adopt procedures to 31 allow a person to claim a refundable credit under this section. The commissioner shall

01 pay the amount of a tax credit under this section to a person who submits a form and 02 follows procedures adopted under this subsection. A credit under this section shall be 03 paid in the manner provided in AS 43.20.030(e) for the payment of refunds. Payments 04 may not be made under the authority of this subsection without an appropriation for 05 that purpose. 06 (f) A credit claimed under this section may not exceed 10 percent of the 07 person's capital investment for the production of electricity from renewable energy or 08 $30,000,000 for each project, whichever is less. In calculating a person's capital 09 investment, a person may not include any state or federal grant the person received for 10 the capital investment. 11 (g) In this section, 12 (1) "capital investment" means an expenditure made 13 (A) for real property or tangible personal property used in this 14 state in the production of electricity from renewable energy; and 15 (B) for an asset first placed in service for the production of 16 electricity from renewable energy in the state during or before the tax year in 17 which the credit is claimed; in this subparagraph, "placed in service for the 18 production of electricity from renewable energy in the state" means that the 19 first use of the capital investment is in this state; if the property on which the 20 claim of the credit is based has been used outside the state in the tax year of 21 acquisition and is brought to this state during that year or a subsequent year, 22 the property does not qualify as a capital investment; 23 (2) "credit" means the renewable energy refundable tax credit 24 authorized by this section; 25 (3) "project" means a plant, works, system, or facility, together with 26 related or necessary facilities and appurtenances, including a divided or undivided 27 interest in or a right to the capacity of a power project or project, that is used or is 28 useful for the purpose of renewable energy production; 29 (4) "renewable energy" means geothermal, solar, hydroelectric, wind, 30 biomass, hydrokinetic or tidal, and wave energy. 31 * Sec. 22. AS 44.42.020(a) is amended to read:

01 (a) The department shall 02 (1) plan, design, construct, and maintain all state modes of 03 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 04 and similar facilities; 05 (2) study existing transportation modes and facilities in the state to 06 determine how they might be improved or whether they should continue to be 07 maintained; 08 (3) study alternative means of improving transportation in the state 09 with regard to the economic costs of each alternative and its environmental and social 10 effects; 11 (4) develop a comprehensive, long-range, intermodal transportation 12 plan for the state; 13 (5) study alternatives to existing modes of transportation in urban areas 14 and develop plans to improve urban transportation; 15 (6) cooperate and coordinate with and enter into agreements with 16 federal, state, and local government agencies and private organizations and persons in 17 exercising its powers and duties; 18 (7) manage, operate, and maintain state transportation facilities and all 19 docks, floats, breakwaters, and buildings, including all state highways, vessels, 20 railroads, pipelines, airports, and aviation facilities; 21 (8) study alternative means of transportation in the state, considering 22 the economic, social, and environmental effects of each alternative; 23 (9) coordinate and develop state and regional transportation systems, 24 considering deletions, additions, and the absence of alterations; 25 (10) develop facility program plans for transportation and state 26 buildings, docks, and breakwaters required to implement the duties set out in this 27 section, including but not limited to functional performance criteria and schedules for 28 completion; 29 (11) supervise and maintain all state automotive and mechanical 30 equipment, aircraft, and vessels, except vessels and aircraft used by the Department of 31 Fish and Game or the Department of Public Safety; for state vehicles maintained by

01 the department, the department shall every five years evaluate the cost, efficiency, and 02 commercial availability of alternative fuels for automotive purposes, and the purpose 03 for which the vehicles are intended to be used, and convert vehicles to use alternative 04 fuels or purchase energy efficient vehicles [TO USE ALTERNATIVE FUELS] 05 whenever practicable; the department may participate in joint ventures with public or 06 private partners that will foster the availability of alternative fuels for all automotive 07 fuel consumers; 08 (12) supervise aeronautics inside the state, under AS 02.10; 09 (13) implement the safety and financial responsibility requirements for 10 air carriers under AS 02.40; 11 (14) inspect weights and measures; 12 (15) at least every four years study alternatives available to finance 13 transportation systems in order to provide an adequate level of funding to sustain and 14 improve the state's transportation system. 15 * Sec. 23. AS 44.42 is amended by adding a new section to read: 16 Sec. 44.42.067. Retrofits and new construction for energy efficiency; 17 energy efficiency report. (a) Not later than January 1, 2020, the department shall 18 work with other state agencies to retrofit at least 25 percent of all public facilities, 19 starting with those it determines are the least energy efficient, if the department 20 determines that retrofitting the public facilities will result in a net savings in energy 21 costs to the state within 15 years after completion of the retrofits for a public facility 22 and if funding for the retrofits is available. 23 (b) A retrofit or deferred maintenance of a public facility performed under this 24 section, to the extent feasible, shall meet or exceed the most recently published edition 25 of the ASHRAE/IESNA Standard 90.1, Energy Standard for Buildings Except for 26 Low-Rise Residential Buildings, as published by the American Society of Heating, 27 Refrigerating and Air-Conditioning Engineers. 28 (c) New construction of a public facility under this section shall meet or 29 exceed the most recently published edition of the ASHRAE/IESNA Standard 90.1, 30 Energy Standard for Buildings Except for Low-Rise Residential Buildings, as 31 published by the American Society of Heating, Refrigerating and Air-Conditioning

01 Engineers. 02 (d) Not later than January 1 of each year, the department, in consultation with 03 the Department of Administration, shall submit a report to the legislature detailing the 04 department's progress in meeting the requirements of this section to reduce state 05 energy consumption and costs and carrying out the duties listed in AS 44.42.020 06 related to energy use. The department shall include in the report an analysis of the 07 consumption and expense data recorded by the office of management and budget 08 under AS 37.07.040, comparing energy consumption levels in each year with past 09 years to determine if reductions are being achieved. 10 (e) In this section, "public facility" means a facility owned and controlled by 11 the state for government or public use that is 10,000 square feet or more and is not a 12 legislative building or court building. 13 * Sec. 24. AS 44.83.080 is amended by adding a new subsection to read: 14 (b) In furtherance of its corporate purpose, the authority shall annually plan 15 and conduct, in cooperation with the Alaska Housing Finance Corporation, a public 16 education campaign to promote energy efficiency and conservation. 17 * Sec. 25. AS 44.83.990(6) is amended to read: 18 (6) "power project" or "project" means a plant, works, system, or 19 facility, together with related or necessary facilities and appurtenances, including a 20 divided or undivided interest in or a right to the capacity of a power project or project, 21 that is used or is useful for the purpose of 22 (A) electrical or thermal energy production [OTHER THAN 23 NUCLEAR ENERGY PRODUCTION]; 24 (B) waste energy utilization and energy conservation; or 25 (C) transmission, purchase, sale, exchange, and interchange of 26 electrical or thermal energy, including district heating or interties; 27 * Sec. 26. AS 45.88.010(a) is amended to read: 28 (a) There is established in the Department of Commerce, Community, and 29 Economic Development the alternative energy conservation revolving loan fund to 30 carry out the purposes of AS 45.88.010 - 45.88.090. Loans made under AS 45.88.010 31 - 45.88.090 are to be used

01 (1) to develop means of energy production utilizing one or more 02 alternative energy systems; and 03 (2) to purchase, construct, and install energy conservation 04 improvements in commercial buildings [ENERGY SOURCES OTHER THAN 05 FOSSIL OR NUCLEAR FUEL, INCLUDING, BUT NOT LIMITED TO, 06 WINDMILLS, WATER AND SOLAR ENERGY DEVICES]. 07 * Sec. 27. AS 45.88.010 is amended by adding a new subsection to read: 08 (e) The alternative energy conservation revolving loan fund consists of 09 (1) money appropriated to the fund by the legislature; 10 (2) gifts, bequests, or contributions from other sources; 11 (3) principal and interest payments or other income earned on loans or 12 investments in the fund; and 13 (4) money chargeable to principal or interest that is collected through 14 liquidation by foreclosure or other processes on loans made under AS 45.88.010 - 15 45.88.090. 16 * Sec. 28. AS 45.88.020(a) is amended to read: 17 (a) The department may 18 (1) make loans for the purchase, construction, and installation, in 19 commercial buildings that are located in the state, of 20 (A) alternative energy systems; and 21 (B) energy conservation improvements; 22 (2) adopt regulations necessary to carry out the provisions of 23 AS 45.88.010 - 45.88.090, including regulations to establish reasonable fees for 24 services provided and charges for collecting the fees; 25 (3) collect the fees and collection charges established under this 26 subsection. 27 * Sec. 29. AS 45.88.025 is amended by adding a new section to read: 28 Sec. 45.88.025. Eligibility. To be eligible for a loan under AS 45.88.010 - 29 45.88.090, an applicant must 30 (1) physically reside in the state and maintain a domicile in the state 31 during 12 consecutive months before the date of application for a loan and may not

01 have 02 (A) declared or established residency in another state; or 03 (B) received residency or a benefit based on residency from 04 another state; 05 (2) be at least 51 percent owned by individuals described in (1) of this 06 section if the applicant is a corporation, joint venture, or partnership; or 07 (3) be a nonprofit organization under AS 10.20. 08 * Sec. 30. AS 45.88.030(a) is repealed and reenacted to read: 09 (a) A loan made under AS 45.88.010 - 45.88.090 may not exceed $50,000. If 10 the requested loan amount exceeds $30,000, the applicant must deliver to the 11 department a document from a financial institution stating that 12 (1) the applicant has been denied a loan for the same purpose; or 13 (2) the loan from the financial institution is contingent on the applicant 14 also receiving a loan from the fund. 15 * Sec. 31. AS 45.88.030(e) is amended to read: 16 (e) The rate of interest for a loan under AS 45.88.010 - 45.88.090 is the 17 prime rate, as defined by AS 44.88.599, plus one percentage point, but may not be 18 less than five percent a year [FOR AN ALTERNATIVE ENERGY SYSTEM IS 19 FIVE PERCENT FOR THE FIRST $15,000 OF THE LOAN AND 15 PERCENT 20 FOR THE AMOUNT OF THE LOAN THAT EXCEEDS $15,000]. 21 * Sec. 32. AS 45.88.030 is amended by adding a new subsection to read: 22 (f) A loan under AS 45.88.010 - 45.88.090 must be secured by a mortgage or 23 other security instrument in the real property to be improved and a lien on the 24 improvements financed with the loan. 25 * Sec. 33. AS 45.88.090(a) is amended to read: 26 (a) In AS 45.88.010 - 45.88.090, 27 (1) "alternative energy system" 28 (A) [(1)] means a source of thermal, mechanical or electrical 29 energy that [WHICH] is not dependent on oil or gas or a nuclear fuel for the 30 supply of energy for space heating and cooling, refrigeration and cold storage, 31 electrical power, mechanical power, or the heating of water;

01 (B) [(2)] includes 02 (i) [(A)] an alternative energy property as defined by 26 03 U.S.C. 48(a)(3)(A) (Sec. 301, P.L. 95-618, Internal Revenue Code); 04 (ii) [(B)] a method of architectural design and 05 construction which provides for the collection, storage, and use of 06 direct radiation from the sun; 07 (iii) [(C)] a woodstove with a catalytic converter or a 08 catalytic converter for a wood stove; [AND] 09 (iv) [(D)] a steam, hot water, or ducted hot air central 10 heating system that uses wood or coal for fuel; and 11 (v) a high efficiency wood pellet stove; 12 (C) [(3)] does not include 13 (i) [(A)] a stove that uses only wood, coal, or oil for 14 fuel; or 15 (ii) [(B)] a fireplace or fireplace insert; 16 (2) "commercial building" 17 (A) means a building that is intended to be used for 18 commercial purposes; 19 (B) does not include 20 (i) a residential structure or mobile home that 21 contains one to four family housing units; or 22 (ii) individual units of condominiums or 23 cooperatives; 24 (3) "energy conservation improvement" means 25 (A) structural insulation; 26 (B) thermal windows and doors; 27 (C) a furnace replacement burner designed to achieve a 28 reduction in the amount of fuel consumed as a result of increased 29 combustion efficiency; 30 (D) a device for modifying flue openings designed to 31 increase the efficiency of operation of the heating system;

01 (E) an electrical or mechanical furnace ignition system that 02 replaces a gas pilot light; 03 (F) an automatic energy-saving setback thermostat; 04 (G) a meter that displays the cost of energy usage; 05 (H) caulking and weather stripping of doors and windows; 06 (I) insulating shades and shutters; 07 (J) air and water recuperators. 08 * Sec. 34. AS 46.11.900(1) is amended to read: 09 (1) "alternative energy system" 10 (A) means a source of thermal, mechanical, or electrical energy 11 that is not dependent on oil or gas [OR A NUCLEAR FUEL] for the supply of 12 energy for space heating and cooling, refrigeration and cold storage, electrical 13 power, mechanical power, or the heating of water; 14 (B) includes 15 (i) an alternative energy property as defined by 26 16 U.S.C. 48(a)(3)(A); and 17 (ii) a method of architectural design and construction 18 that provides for the collection, storage, and use of direct radiation from 19 the sun; 20 * Sec. 35. AS 47.25.621 is amended to read: 21 Sec. 47.25.621. Alaska affordable heating [ASSISTANCE] program. (a) 22 The Alaska affordable heating [ASSISTANCE] program is established in the 23 Department of Health and Social Services to provide expanded eligibility for Alaska 24 residents for home heating assistance, to the extent funds are available in the Alaska 25 affordable heating fund [APPROPRIATED BY THE LEGISLATURE FOR THAT 26 PURPOSE]. 27 (b) The Alaska affordable heating [ASSISTANCE] program established 28 under this section is in addition to the federal low-income heating and energy 29 assistance provided under 42 U.S.C. 8621 - 8629 (Low-Income Home Energy 30 Assistance Act of 1981), as amended, and implementing regulations. 31 * Sec. 36. AS 47.25.621 is amended by adding a new subsection to read:

01 (c) The Alaska affordable heating fund is established as a separate fund to be 02 managed by the Department of Revenue. The fund consists of appropriations made to 03 it. Interest earned by the fund may be appropriated to it. The Department of Health and 04 Social Services shall use money in the fund for Alaska affordable heating payments. 05 * Sec. 37. AS 47.25.622 is amended to read: 06 Sec. 47.25.622. Duties. The Department of Health and Social Services 07 [DEPARTMENT] shall 08 (1) administer the Alaska affordable heating [ASSISTANCE] 09 program provided under AS 47.25.621; 10 (2) adopt regulations under AS 44.62 (Administrative Procedure Act) 11 to carry out the purpose of the program; 12 (3) coordinate payments among other heating assistance programs to 13 avoid duplication of payments. 14 * Sec. 38. AS 47.25.623 is amended to read: 15 Sec. 47.25.623. Eligibility; payment amount. An individual is eligible for 16 home heating assistance payments under the Alaska affordable heating 17 [ASSISTANCE] program if the individual 18 (1) is a resident of the state; 19 (2) is physically present and resides in a home in the state when the 20 home heating costs are incurred; 21 (3) for assistance calculated under (b) and (c) of this section, has 22 gross household income not to exceed, as a percentage of the federal poverty 23 guideline for Alaska set by the United States Department of Health and Human 24 Services and revised under 42 U.S.C. 9902(2), 25 (A) 225 percent for a determination to be made under (c)(1) 26 - (3) of this section; and 27 (B) 250 percent for a determination to be made under (c)(4) 28 of this section; and [HAS GROSS HOUSEHOLD INCOME ABOVE 150 29 PERCENT BUT THAT DOES NOT EXCEED 225 PERCENT OF THE 30 FEDERAL POVERTY GUIDELINE FOR ALASKA SET BY THE UNITED 31 STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES AND

01 REVISED UNDER 42 U.S.C. 9902(2);] 02 (4) meets other eligibility requirements specified in regulations 03 adopted under AS 47.25.622. 04 * Sec. 39. AS 47.25.623 is amended by adding new subsections to read: 05 (b) The Department of Health and Social Services shall determine the number 06 of points for each eligible individual based on the point formula used under 42 U.S.C. 07 8621 - 8629 (Low-Income Home Energy Assistance Act of 1981), as amended, and 08 implementing regulations. Except as provided in (d) of this section, the amount of the 09 Alaska affordable heating payment for an individual equals the base amount calculated 10 under (c) of this section minus the amount the individual is eligible to receive under 11 the federal low-income home energy assistance program under 42 U.S.C. 8621 - 8629, 12 as amended, and implementing regulations. 13 (c) The Department of Health and Social Services shall calculate the base 14 amount of the Alaska affordable heating payment for the individual based on points 15 determined under (b) of this section and on the average price a barrel of Alaska North 16 Slope crude oil for sale on the United States West Coast during September through 17 February of the preceding fiscal year as follows: 18 (1) $130 a point when the average price is not more than $75 a barrel; 19 (2) $140 a point when the average price is more than $75 and not more 20 than $100 a barrel; 21 (3) $150 a point when the average price is more than $100 and not 22 more than $150 a barrel; 23 (4) $165 a point when the average price is more than $150 a barrel. 24 (d) Under the program authorized by AS 47.25.621 - 47.25.626, taking into 25 consideration the gross household income rates established in (a) of this section and 26 the base amounts to be calculated under (b) and (c) of this section, 27 (1) if insufficient money is appropriated to fully fund the Alaska 28 affordable heating payments during the fiscal year, the department 29 (A) shall, for the duration of that fiscal year, suspend 30 calculation and payment under (a)(3)(B) of this section and calculate and pay 31 all eligible individuals under (a)(3)(A) of this section; and

01 (B) may, to the extent there is or may be an appropriation 02 balance surplus to the amount required to make all payments under (A) of this 03 paragraph, by regulation, establish at any time during the fiscal year a 04 prospective pro rata reduction of the payment rates that the department will 05 pay to eligible individuals under the program during that fiscal year qualifying 06 under (a)(3)(B) of this section and, thereafter, may provide for prorated 07 payments; and 08 (2) if the commissioner reasonably determines that the total of 09 appropriations from all sources during the fiscal year may exceed the amount required 10 to fully fund all applications for assistance for Alaska affordable heating payments, the 11 commissioner may expend the amount of excess money, not to exceed the total 12 amount of the appropriations, to carry out the purpose of AS 47.25.621 - 47.25.626; 13 under the authority of this paragraph, the commissioner shall distribute the estimated 14 excess money pro rata among individuals receiving assistance under this section 15 without regard to the limitations set out in the dollar value of the point formula 16 expressed in (c)(1) - (4) of this section. 17 * Sec. 40. AS 47.25.626(a) is amended to read: 18 (a) The Department of Health and Social Services [DEPARTMENT] may 19 develop a regional Alaska heating [ASSISTANCE] program for the administration of 20 AS 47.25.621 - 47.25.626 to provide home heating assistance in a uniform and cost- 21 effective manner in a region of this state if an Alaska Native organization is authorized 22 to implement a federally approved tribal family assistance plan that includes that 23 region and has been awarded a tribal energy assistance grant for a program that 24 includes that region under 42 U.S.C. 8623(d). 25 * Sec. 41. AS 47.25.626(b) is amended to read: 26 (b) The department may award contracts to implement a program developed 27 under (a) of this section. A contract authorized for delivery of home heating assistance 28 under a regional Alaska heating [ASSISTANCE] program under this section is exempt 29 from the competitive bid requirements of AS 36.30 (State Procurement Code). Subject 30 to appropriation, a contract under this section must be in an amount that represents a 31 fair and equitable share of the money appropriated for the Alaska affordable heating

01 [ASSISTANCE] program under AS 47.25.621 - 47.25.626 to serve the state residents 02 specified in (a) of this section. The authority provided under this section to contract is 03 in addition to the authority to contract in AS 47.05.015 or other law. 04 * Sec. 42. AS 47.25.626(f) is amended to read: 05 (f) If the department establishes a regional Alaska heating [ASSISTANCE] 06 program and awards a contract to provide home heating assistance under this section, 07 a person applying for home heating assistance under AS 47.25.621 - 47.25.626 in the 08 region of the state covered by the regional Alaska heating [ASSISTANCE] program 09 may obtain home heating assistance from the department only through the 10 organization designated by the department to serve the region. 11 * Sec. 43. AS 43.20.046, enacted by sec. 20 of this Act and AS 43.98.040, enacted by sec. 12 21 of this Act, are repealed January 1, 2018. 13 * Sec. 44. AS 44.42.067(d), enacted by sec. 23 of this Act, is repealed January 1, 2021. 14 * Sec. 45. AS 45.88.010(c), 45.88.030(c), 45.88.030(d), and 45.88.040(a) are repealed. 15 * Sec. 46. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 OFFICE OF MANAGEMENT AND BUDGET. Not later than November 1, 2010, the 18 Office of Management and Budget shall develop a standardized methodology to collect and 19 store energy consumption and expense data as described in AS 37.07.040(12), as enacted by 20 sec. 13 of this Act. 21 * Sec. 47. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES. Not later 24 than one year after the effective date of this Act, the Department of Transportation and Public 25 Facilities, in consultation with the Alaska Energy Authority, shall adopt and implement a 26 systematic process for prioritizing the retrofitting of state facilities for a long-term increase in 27 energy efficiency and reduction of energy costs. 28 * Sec. 48. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 OFFICE OF THE GOVERNOR ENERGY REPORT. Not later than November 1, 31 2010, the governor shall submit a report to the legislature providing recommendations for

01 how best to structure state energy programs and offices to increase the coordination and 02 efficiency of the state's efforts. 03 * Sec. 49. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 USE OF COMPRESSED NATURAL GAS TO POWER VEHICLES; PILOT 06 PROGRAM; STUDY; PROPOSAL; REPORT. (a) The Department of Transportation and 07 Public Facilities shall, under the authority of AS 44.42.020(a)(3), study the feasibility of using 08 compressed natural gas to power vehicles in the state. The study must 09 (1) review existing government programs and incentives offered in Utah and 10 other North American jurisdictions that promote the use of compressed natural gas to power 11 vehicles; 12 (2) review and summarize relevant studies and investigations on existing 13 public policy incentives that encourage the use of compressed natural gas to power vehicles; 14 (3) evaluate the environmental benefits and technical merits of using 15 compressed natural gas to power vehicles; 16 (4) consider the economic, environmental, and technological advantages and 17 disadvantages of using and promoting the use of compressed natural gas to power vehicles in 18 the state; and 19 (5) if warranted by the findings of the study, set out a proposal for a pilot 20 program in the state to test the use of compressed natural gas to power vehicles owned or 21 operated by the state; the proposal must 22 (A) recommend the most cost-effective and appropriate departments 23 and geographic locations for a pilot program; 24 (B) detail how the pilot program, if successful, could be expanded to 25 provide for increased use of compressed natural gas to power vehicles owned or 26 operated by the state, as well as privately owned or operated vehicles; 27 (C) estimate the costs to the state of a pilot program in which the state 28 would purchase vehicles powered by compressed natural gas or convert existing 29 vehicles to be powered by compressed natural gas, including 30 (i) the costs of maintaining vehicles powered by compressed 31 natural gas and training maintenance personnel;

01 (ii) the costs of adapting, or encouraging the adapting of, state 02 vehicle fueling locations to provide compressed natural gas; 03 (iii) the costs of using compressed natural gas instead of diesel 04 fuel or gasoline; 05 (iv) the costs of expanding the pilot program or developing 06 additional pilot programs under (B) of this paragraph; 07 (v) other costs or savings that can be reasonably expected to 08 accompany the pilot program. 09 (b) The Department of Transportation and Public Facilities shall prepare a report 10 containing the results of the study under (a) of this section not later than December 1, 2010. 11 The department shall notify the legislature when the report is available. 12 * Sec. 50. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 BOND AUTHORIZATION AND PROVISIONS. (a) In addition to the powers in 15 AS 18.56.090, the Alaska Housing Finance Corporation may issue bonds in an amount not to 16 exceed $250,000,000 to make loans from the energy efficiency revolving loan fund 17 established by AS 18.56.855, enacted by sec. 10 of this Act, and to finance the purposes 18 permitted by AS 18.56.855, enacted by sec. 10 of this Act. AS 18.56.110 - 18.56.190 and 19 18.56.855, enacted by sec. 10 of this Act, apply to bonds issued under this section, except that 20 bonds issued under this section are not subject to, and may not be counted against, the bond 21 issuance limitation set out in AS 18.56.110(g). 22 (b) The Alaska Housing Finance Corporation shall deposit the proceeds of bonds 23 issued under (a) of this section in the Alaska energy efficiency revolving loan fund in 24 accordance with AS 18.56.855, enacted by sec. 10 of this Act. 25 * Sec. 51. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 EXHAUSTION OF UNUSED RENEWABLE ENERGY REFUNDABLE TAX 28 CREDITS. Notwithstanding the repeal of AS 43.98.040 by sec. 43 of this Act, an unused 29 portion of a tax credit acquired under AS 43.98.040, enacted by sec. 21 of this Act, may be 30 carried forward until exhausted, except that the unused portion of the tax credit may not be 31 carried forward to tax years beginning after December 31, 2023.

01 * Sec. 52. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 REVISOR'S INSTRUCTIONS. (a) The revisor of statutes is instructed to change the 04 heading of art. 6 of AS 18.56 from "Article 6. Energy Conservation" to "Article 6. Energy 05 Efficiency and Conservation Programs. 06 (b) The revisor of statutes is instructed to change the heading of art. 1 of AS 45.88 07 from "Alternative Energy Revolving Loan Fund" to "Alternative Energy Conservation 08 Revolving Loan Fund."