Legislature(2021 - 2022)

2021-04-09 Senate Journal

Full Journal pdf

2021-04-09                     Senate Journal                      Page 0665
SB 123                                                                                                                        
SENATE BILL NO. 123 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
          "An Act establishing the Alaska energy independence                                                                   
          program and the Alaska energy independence fund in                                                                    
          the Alaska Industrial Development and Export                                                                          
          Authority; and providing for an effective date."                                                                      

2021-04-09                     Senate Journal                      Page 0666
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Commerce, Community, and                                                                      
  Economic Development                                                                                                          
 Fiscal Note No. 2, Department of Commerce, Community, and                                                                      
  Economic Development                                                                                                          
Governor's transmittal letter dated April 8:                                                                                    
Dear President Micciche:                                                                                                        
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the Alaska Energy                                                            
Independence Fund.                                                                                                              
This legislation amends AS 44.88 to establish the Alaska Energy                                                                 
Independence Fund within the Alaska Industrial Development and                                                                  
Export Authority (AIDEA).                                                                                                       
AS 44.88.450 – 44.88.456 provides AIDEA with the ability to receive                                                             
private and public funding, manage the fund and arrange affordable                                                              
financing for defined sustainable energy developments to suit Alaska’s                                                          
unique energy needs, particularly with regard to addressing urban and                                                           
rural energy requirements.                                                                                                      
Alaska's total energy expenditures per capita of $8,060, $5.8 billion                                                           
per annum, is the third highest in the country and is nearly double the                                                         
national average of $4,291. The Alaska Energy Independence Fund is                                                              
designed to make a meaningful economic development and fiscal                                                                   
impact as it gains scale and adoption throughout Alaskan                                                                        
communities. A reduction in total energy expenditures by Alaskans                                                               
provides a tangible reduction in Alaska’s cost of energy and allows                                                             
Alaskans to redeploy energy savings back into Alaska's economy to                                                               
drive incremental GDP growth.                                                                                                   
The Alaska Energy Independence Fund would be established to make                                                                
loans, provide credit enhancement structures, purchase loans, provide                                                           
development funding and other forms of financing for sustainable                                                                

2021-04-09                     Senate Journal                      Page 0667
energy development in Alaska’s residential, commercial, and                                                                     
industrial market sectors. The Alaska Energy Independence Fund                                                                  
would make capital more accessible to borrowers for clean energy                                                                
projects and incentivize co-investment in Alaska’s emerging clean                                                               
energy sector between the public sector, Alaska’s financial sector, and                                                         
private investors. This bill would take effect January 1, 2022, to                                                              
provide time to develop the program and ensure a successful and                                                                 
robust launch.                                                                                                                  
Please join me in acting to provide this pathway to create new jobs and                                                         
businesses, decrease commercial and household energy costs for                                                                  
redeployment in Alaska’s economy, and increase Alaska’s energy                                                                  
Mike Dunleavy