Legislature(2007 - 2008)
2008-08-04 Senate Journal
Full Journal pdf2008-08-04 Senate Journal Page 3252 SB 4002 CS FOR SENATE BILL NO. 4002(FIN) "An Act amending the bulk fuel bridge loan fund; amending the power cost equalization program, repealing the exclusion from eligibility for power cost equalization for certain power projects that take their power from hydroelectric facilities, and amending the definition of 'eligible electric utility' as it applies to the power cost equalization program and the grant program for small power projects for utility improvements; establishing the Alaska resource rebate program and relating to that program; and providing for an effective date" was read the third time. Amendment No. 1 was not offered. Senator Bunde moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 2. Without objection, the bill was returned to second reading. 2008-08-04 Senate Journal Page 3253 Senators Wagoner, Bunde offered Amendment No. 2 : Page 1, line 1, through page 10, line 5: Delete all material and insert: ""An Act establishing the Alaska resource rebate program and relating to that program; and providing for an effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. The uncodified law of the State of Alaska is amended by adding a new section to read: ALASKA RESOURCE REBATE PROGRAM ESTABLISHED. (a) Subject to appropriations and availability of funds for the program, the Alaska resource rebate program is established to provide adult residents and residents who are emancipated minors with resource rebates. (b) The amount of the 2008 permanent fund dividend shall be increased for recipients who are at least 18 years of age and for emancipated minors whose disabilities have been removed for general purposes under AS 09.55.590. After calculating the amount of the 2008 dividend under AS 43.23.025, the commissioner of revenue shall add $1,200 to determine the total amount of that dividend for recipients who qualify for the resource rebate under this subsection. The commissioner may require proof that an individual is an emancipated minor for purposes of this subsection. (c) A veteran or the spouse or dependent of a living or deceased veteran who did not apply for the 2008 permanent fund dividend and is eligible for veterans' benefits under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 may apply to the Department of Revenue for a $1,200 Alaska resource rebate payment for 2008. The individual shall apply not later than October 1, 2008, on a form provided by the department and shall demonstrate that the individual would have been eligible to receive a 2008 permanent fund dividend under AS 43.23, except that the individual did not apply for that dividend. (d) A veteran or the spouse or dependent of a living or deceased veteran who is eligible for veterans' benefits under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 who is denied or receives reduced payments under those provisions or reduced health care benefits solely because the $1,200 increase in the dividend under (b) of this section or the $1,200 payment under (c) of this section received by the individual is counted as income is eligible for cash assistance under 2008-08-04 Senate Journal Page 3254 AS 47.25.120 - 47.25.300 (general relief assistance). Notwithstanding the limit in AS 47.25.130, the individual is entitled to receive the same amount as the individual would have received under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 and as a health care benefit as a result of being eligible under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542, had the $1,200 increase or payment not been received under (b) or (c) of this section. (e) Subject to appropriation, the amount necessary for resource rebates to increase 2008 permanent fund dividends under (b) of this section shall be transferred from the general fund to the dividend fund (AS 43.23.045). * Sec. 2. This Act takes effect immediately under AS 01.10.070(c)." Senator Bunde moved for the adoption of Amendment No. 2. Senator French objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSSB 4002(FIN) Second Reading Amendment No. 2 YEAS: 4 NAYS: 13 EXCUSED: 3 ABSENT: 0 Yeas: Bunde, Dyson, Huggins, Wielechowski Nays: Davis, Ellis, Elton, French, Green, Hoffman, Kookesh, McGuire, Olson, Stedman, Stevens, Thomas, Wilken Excused: Cowdery, Therriault, Wagoner and so, Amendment No. 2 failed. CS FOR SENATE BILL NO. 4002(FIN) was automatically in third reading. Senator Davis moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 3. Without objection, the bill was returned to second reading. 2008-08-04 Senate Journal Page 3255 Senators Davis, Wielechowski, Ellis, French offered Amendment No. 3 . Page 1, line 1, following "fund": Insert "and the bulk fuel revolving loan fund" Page 1, line 5, following "improvements;": Insert "relating to establishing a gas pipeline development fund in the Department of Revenue;" Page 1, line 6, following "program;": Insert "relating to heating assistance;" Page 4, line 28, through page 5, line 2: Delete all material and insert: "* Sec. 8. AS 43.98 is amended by adding a new section to read: Sec. 43.98.030. Gas pipeline development fund. (a) A gas pipeline development fund is established in the Department of Revenue as a separate fund to finance a gas pipeline project in the state. (b) The Department of Revenue shall administer the fund as a fund distinct from other funds in the Department of Revenue. The fund consists of (1) money appropriated to the fund by the legislature to provide for development of a gas pipeline as determined by the legislature; (2) gifts, bequests, contributions from other sources, and federal money; (3) interest earned on the fund balance; and (4) investments to be managed by the Department of Revenue, which shall be the fiduciary of the fund under AS 37.10.071. (c) The fund is not a dedicated fund. * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to read: ALASKA RESOURCE REBATE PROGRAM ESTABLISHED. Because the recent high cost of energy has simultaneously burdened consumers and provided additional revenue to the state, the Alaska resource rebate program is established to provide residents with resource rebates under sec. 10 of this Act to help offset those energy costs and to provide persons with emergency energy relief under sec. 11 of this Act." 2008-08-04 Senate Journal Page 3256 Renumber the following bill sections accordingly. Page 5, line 29, through page 10, line 5: Delete all material and insert: "* Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to read: EMERGENCY ENERGY RELIEF. (a) The Alaska Energy Authority shall provide persons with emergency energy relief payments to offset the cost of fuel or electricity used for residences. (b) Subject to (h) of this section, a person may receive an emergency energy relief payment based on the amount that exceeds $3.00 a gallon that the person pays for each gallon of heating oil or propane delivered September 1, 2008, through March 31, 2009, and September 1, 2009, through March 31, 2010, for a building in the state that is primarily used for one or more residences. Payments may not be made for more than 850 gallons of heating oil or propane used for a single family residence during September 1, 2008, through March 31, 2009, and 850 gallons of heating oil or propane for a single family residence during September 1, 2009, through March 31, 2010. Payments may not be made for more than 300 gallons of heating oil or propane for each unit in a multi-family building used for that building during September 1, 2008, through March 31, 2009, and 300 gallons of heating oil or propane for each unit in a multi-family building used for that building during September 1, 2009, through March 31, 2010. (c) A customer may receive an emergency energy relief credit from a natural gas supplier on the qualified distributor list prepared under (i) of this section. The credit is based on the amount that exceeds $3.00 an Mcf that the customer pays for each Mcf of natural gas delivered September 1, 2008, through March 31, 2009, and September 1, 2009, through March 31, 2010, for a building in the state that is primarily used for one or more residences. The credit is limited to not more than 100 Mcf of natural gas used for a single family residence, or 50 Mcf of natural gas used for each unit in a multi-unit structure, during September 1, 2008, through March 31, 2009, and not more than 100 Mcf used for a single family residence, or 50 Mcf used for each unit in a multi-unit structure, during September 1, 2009, through March 31, 2010. The natural gas supplier may submit to the authority its billing statements for purchases of natural gas used to heat residences. The supplier shall also submit customer and sales information that may be required by the authority with each billing 2008-08-04 Senate Journal Page 3257 statement so that the authority may determine the amount to pay directly to the supplier to be treated by the supplier as a credit to the natural gas customer. Thirty days after submitting a billing statement to the authority, the supplier may submit the statement to the customer for payment of that portion not paid by the authority and appearing on the billing statement as an emergency energy relief credit. For purposes of calculating the credit amount, the amount a customer pays for natural gas is based on the actual cost to the customer, including taxes, regulatory and other charges, and cost adjustments. In this subsection, "multi-unit structure" means a residential building containing at least four separate dwelling units. (d) A person who heats with electricity a building or dwelling unit in the state that is primarily used for a residence may receive an emergency energy relief payment to reimburse the person for amounts the person pays for costs of electricity for that residence. The amount of reimbursement equals five cents a kilowatt-hour for the cost of up to 2,300 kilowatt-hours each month of electricity purchased between September 1, 2008, and March 31, 2009, both inclusive, and for the cost of up to 2,300 kilowatt-hours each month of electricity purchased between September 1, 2009, and March 31, 2010, both inclusive, except that no reimbursement applies for the first 500 kilowatt-hours each month purchased during each of those periods. To receive an emergency energy relief payment under this subsection, a person shall provide proof that the building or dwelling unit is heated with electricity and shall meet the requirements of (h) of this section. (e) The amount of the payment or credit under (b), (c), or (d) of this section must include an amount to reimburse the sales tax that the person paid for the fuel or electricity for which the emergency energy relief payment or credit is made. The amount of reimbursement for sales taxes included in the payment or credit must be based on the sales tax rate in effect on the effective date of this section. A payment may not be made for fuel, and a credit may not be given for electricity, used for a building owned by a governmental entity. A person may apply for and receive more than one emergency energy relief payment or credit; however, a person may not receive a payment or credit for more than one type of fuel delivered or for electricity purchased September 1, 2008, through March 31, 2009, or for more than one type of fuel delivered or electricity purchased September 1, 2009, through March 31, 2010. If the authority estimates that appropriations to the authority are insufficient to fully fund emergency energy relief, the 2008-08-04 Senate Journal Page 3258 authority may eliminate or reduce the payments and credits under (b), (c), and (d) of this section on an equitable basis. (f) A landlord or lessor that receives a payment under (b) or (d) of this section or a credit under (c) of this section shall pass on a benefit to the landlord's or lessor's tenant by lowering the amount of rent by the amount attributable to the tenant's unit. A landlord or lessor may retain up to 10 percent of the payment or credit otherwise required to be passed on to the tenant to cover administrative costs. Failure to comply with the requirement of this subsection is a violation of AS 45.50.471. The authority may audit the books and records of a landlord or lessor for compliance with this subsection. (g) The authority (1) shall administer this section, but may contract for the performance of some or all of those administrative duties; AS 36.30 (State Procurement Code) does not apply to contracts entered into by the authority under this paragraph; (2) may adopt regulations under AS 44.62 to implement this section. (h) A person who is an individual is eligible to receive a payment under (b) or (d) of this section only if the individual is a state resident under AS 01.10.055. In addition, to receive a payment under (b) or (d) of this section, a person shall (1) apply, before July 1, 2010, for the payment on a form provided by the authority; (2) if the person is applying for payment for heating oil or propane, provide, with each application, proof of purchase of fuel from a qualified distributor on the list prepared under (i) of this section; (3) if the person is applying for a payment for electricity, provide proof of payment as required by the authority; (4) verify that the fuel is used for a building that is primarily used for one or more residences, identify the building, and identify the number of residential units in the building; (5) verify that the building is not owned by a government entity; (6) supply other information that may be required by the authority. (i) A business or other entity that supplies fuel for use in residential buildings may apply in a manner required by the authority for inclusion on the qualified distributor list prepared and kept updated 2008-08-04 Senate Journal Page 3259 by the authority under this subsection. As a condition of becoming a qualified distributor, the business or other entity must submit a signed statement to the authority, under penalty of unsworn falsification, on a form or in a format prescribed by the authority, that the business or other entity will not increase its price for fuel solely in response to this section, and that the business's or other entity's pricing policy will remain consistent with prior practices and be based on the same criteria, as though this section had not been enacted. The authority may audit a qualified distributor's books and records to confirm that the statement made under this subsection is complete and accurate. If the distributor reasonably believes a delivery of fuel is made to a building primarily used for one or more residences, during September 1, 2008, through March 31, 2009, or during September 1, 2009, through March 31, 2010, the distributor shall agree to identify the delivery as residential in a manner prescribed by the authority. The distributor shall agree to submit to the authority its billing statements for purchases of fuel for residences and related customer and sales information that may be requested by the authority from time to time. The distributor shall provide other information required by the authority. (j) A person aggrieved by a decision of the authority regarding the person's eligibility to receive emergency energy relief under this section, other than a determination based on insufficient funding for emergency energy relief, may request a hearing before the office of administrative hearings established under AS 44.64. (k) A person is liable to the state for the value of emergency energy relief improperly paid or credited under this section if the improper payment or credit was based on inaccurate or false information provided by the person. In a civil action brought by the state to recover from the person the value of the emergency energy relief improperly paid or credited, the state may recover from the person the costs of investigation and prosecution of the civil action, including attorney fees as determined under court rules. (l) In determining the eligibility of an individual under a public assistance program administered by the Department of Health and Social Services in which eligibility for assistance is based on financial need, the Department of Health and Social Services may not consider a payment or credit under this section as income or resources received by the individual or by a member of the individual's household unless required to do so by federal law. The Department of Health and Social 2008-08-04 Senate Journal Page 3260 Services shall notify all recipients of public assistance of the effects of receiving emergency energy relief. (m) An individual who is denied medical assistance under 42 U.S.C. 1396 - 1396v (Title XIX, Social Security Act) solely because of the receipt of a payment or credit under this section by the individual or by a member of the individual's household is eligible for state-funded medical assistance under AS 47.25.120 - 47.25.300 (general relief assistance). The individual is entitled to receive, for a period not to exceed four months, the same level of medical assistance as the individual would have received under 42 U.S.C. 1396 - 1396v had the emergency energy relief not been received. (n) An individual who is denied assistance solely because a payment or credit under this section received by the individual or by a member of the individual's household is counted as income or resources under federal law is eligible for cash assistance under AS 47.25.120 - 47.25.300 (general relief assistance). Notwithstanding the limit in AS 47.25.130, the individual is entitled to receive, for a period not to exceed four months, the same amount as the individual would have received under other public assistance programs had the emergency energy relief not been received. (o) A program that is established before the effective date of this section, that is administered by the state or any of its instrumentalities or municipalities or by a Native organization under AS 47.27.070, 47.27.200, or 47.27.300, and for which eligibility is based on financial need may not consider a payment or credit under this section as income or resources unless required to do so by federal law. (p) A veteran or the spouse or dependent of a living or deceased veteran who is denied or receives reduced disability payments solely because a payment or credit received under this section by the individual is counted as income is eligible for cash assistance under AS 47.25.120 - 47.25.300 (general relief assistance). Notwithstanding the limit in AS 47.25.130, the veteran or the spouse or dependent of a living or deceased veteran is entitled to receive the same amount as the individual would have received under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 had the emergency energy relief not been received. (q) Notwithstanding any contrary provision of state law, a payment under this section is exempt from levy, execution, garnishment, or any other remedy for debt collection until after the payment has been received by the person. No other exemption applies to emergency energy relief payments received under this section. 2008-08-04 Senate Journal Page 3261 (r) A form provided by the authority under (h) of this section must include a warning that the submission of incomplete or inaccurate information is punishable as unsworn falsification in the second degree under AS 11.56.210. (s) A person is guilty of a class A misdemeanor if the person (1) uses heating oil, propane, or electricity, payment for which has been partially reimbursed with a payment under this section, (A) for a purpose other than use in a building that is primarily used for one or more residences; or (B) for a building that is owned by a governmental entity; or (2) resells heating oil or propane, payment for which has been partially reimbursed with a payment under (b) of this section. (t) In this section, (1) "authority" means the Alaska Energy Authority created under AS 44.83.020; (2) "fuel" means heating oil, natural gas, or propane. * Sec. 12. AS 42.45.110(k) is repealed June 30, 2010. * Sec. 13. AS 42.45.115 is repealed. * Sec. 14. Sections 11(a) - (e), (g) - (i), (l) - (r), and (t) of this Act are repealed September 1, 2010. * Sec. 15. Sections 1 and 7 - 11 of this Act take effect immediately under AS 01.10.070(c). * Sec. 16. Sections 2, 4, 5, 12, and 13 ofthis Act take effect October 1, 2008. * Sec. 17 Sections 3 and 6 of this Act take effect June 30, 2010." Senator Davis moved for the adoption of Amendment No. 3. Without objection, Amendment No. 3 was adopted. CS FOR SENATE BILL NO. 4002(FIN) am "An Act amending the bulk fuel bridge loan fund and the bulk fuel revolving loan fund; amending the power cost equalization program, repealing the exclusion from eligibility for power cost equalization for certain power projects that take their power from hydroelectric facilities, and amending the definition of 'eligible electric utility' as it applies to the power cost equalization program and the grant program for small power projects for utility improvements; relating to establishing a gas pipeline development fund in the Department of Revenue; establishing 2008-08-04 Senate Journal Page 3262 the Alaska resource rebate program and relating to that program; relating to heating assistance; and providing for an effective date" was automatically in third reading. Senator Thomas moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 4. Without objection, the bill was returned to second reading. Senators Thomas, Wilken offered Amendment No. 4 : Page 1, line 1, following "Act": Insert "relating to grants from the renewable energy grant fund;" Page 1, following line 13: Insert new bill sections to read: "* Section 2. AS 42.45.045(e), as enacted in sec. 3, ch. 31, SLA 2008, is amended to read: (e) In consultation with the advisory committee established in (i) of this section, the authority shall make recommendations to the legislature regarding eligible applicants' projects that finance feasibility studies, reconnaissance studies, energy resource monitoring, and construction of renewable energy projects, alternative energy projects, natural gas projects, or transmission or distribution infrastructure located in Alaska that meet the requirements of (f), (g), [OR] (h), or (m) of this section, as applicable, and shall, at least once each year, solicit from the advisory committee funding recommendations for all grants. * Sec. 3. AS 42.45.045, as enacted in sec. 3, ch. 31, SLA 2008, is amended by adding a new subsection to read: (m) For an alternative energy project to qualify for a grant recommendation under (e) of this section, the project must be a (1) new project not in operation on the effective date of this bill section or an addition to an existing project made after the effective date of this bill section; and (2) facility that generates energy or fuel that is less expensive, more efficient, or has a less adverse effect on the environment than the energy or fuel that was previously used by a community." Renumber the following bill sections accordingly. 2008-08-04 Senate Journal Page 3263 Correct internal references to bill sections accordingly. Page 4, following line 27: Insert new bill sections to read: "* Sec. 10. The uncodified law of the State of Alaska enacted in sec. 1(b), ch. 31, SLA 2008, is amended to read: (b) It is the intent of the legislature that each year for the next five years $50,000,000 in capital funds be appropriated to fund renewable energy projects recommended by the Alaska Energy Authority as described in AS 42.45.045(f) and sec. [SECS. 3 AND] 6 of this Act. * Sec. 11. The uncodified law of the State of Alaska enacted in sec. 6, ch. 31, SLA 2008, is amended to read: RENEWABLE ENERGY GRANTS DURING STATE FISCAL YEAR 2009. (a) For the fiscal year ending June 30, 2009, from an appropriation made under the statement of intent set out in sec. 1(b) of this Act, the Alaska Energy Authority shall distribute grants to applicants determined by the authority and that meet the criteria in AS 42.45.045(f) - (h) and (m) [, ADDED BY SEC. 3 OF THIS ACT,] based on the procedure described in (b) of this section. (b) For administering grants under AS 42.45.045(f) - (h) and (m) [, ADDED BY SEC. 3 OF THIS ACT,] for the fiscal year ending June 30, 2009, notwithstanding AS 42.45.045(d), (e), and (i) - (l), added by sec. 3 of this Act, (1) the Alaska Energy Authority shall submit to the Legislative Budget and Audit Committee for review a revised program setting out the proposed grants; (2) 45 days shall elapse before commencement of expenditures under the revised program unless the Legislative Budget and Audit Committee earlier recommends otherwise; (3) should the Legislative Budget and Audit Committee recommend within the 45-day period that the Alaska Energy Authority not award the grants as set out in the revised program, the Alaska Energy Authority shall again review the grant applications and, if the Alaska Energy Authority determines to authorize the expenditures, the Alaska Energy Authority shall provide the Legislative Budget and Audit Committee with a statement of the Alaska Energy Authority's reasons before commencement of expenditures making the approved grants." 2008-08-04 Senate Journal Page 3264 Renumber the following bill sections accordingly. Correct internal references to bill sections accordingly. Page 10, line 1: Delete "Sections 10(a), (b), (d) - (f), (i) - (o), and (q)" Insert "Sections 14(a), (b), (d) - (f), (i) - (o), and (q)" Page 10, line 3: Delete "Sections 3 and 6" Insert "Sections 5 and 8" Page 10, line 4: Delete "Sections 2, 4, 5, 11, and 12" Insert "Sections 4, 6, 7, 15, and 16" Page 10, line 5: Delete "Sections 1 and 7 - 10" Insert "Sections 1 - 3 and 9 - 14" Senator Thomas moved for the adoption of Amendment No. 4. Objections were heard. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSSB 4002(FIN) am Second Reading Amendment No. 4 YEAS: 9 NAYS: 8 EXCUSED: 3 ABSENT: 0 Yeas: Bunde, Dyson, Hoffman, McGuire, Olson, Stedman, Stevens, Thomas, Wilken Nays: Davis, Ellis, Elton, French, Green, Huggins, Kookesh, Wielechowski Excused: Cowdery, Therriault, Wagoner and so, Amendment No. 4 was adopted. 2008-08-04 Senate Journal Page 3265 CS FOR SENATE BILL NO. 4002(FIN) am was automatically in third reading. The question being: "Shall CS FOR SENATE BILL NO. 4002(FIN) am "An Act relating to grants from the renewable energy grant fund; amending the bulk fuel bridge loan fund and the bulk fuel revolving loan fund; amending the power cost equalization program, repealing the exclusion from eligibility for power cost equalization for certain power projects that take their power from hydroelectric facilities, and amending the definition of 'eligible electric utility' as it applies to the power cost equalization program and the grant program for small power projects for utility improvements; relating to establishing a gas pipeline development fund in the Department of Revenue; establishing the Alaska resource rebate program and relating to that program; relating to heating assistance; and providing for an effective date" pass the Senate?" The roll was taken with the following result: CSSB 4002(FIN) am Third Reading - Final Passage Effective Dates YEAS: 14 NAYS: 3 EXCUSED: 3 ABSENT: 0 Yeas: Davis, Ellis, Elton, French, Hoffman, Huggins, Kookesh, McGuire, Olson, Stedman, Stevens, Thomas, Wielechowski, Wilken Nays: Bunde, Dyson, Green Excused: Cowdery, Therriault, Wagoner and so, CS FOR SENATE BILL NO. 4002(FIN) am passed the Senate. Senator Ellis moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clauses. Without objection, it was so ordered.