00 HOUSE BILL NO. 196 01 "An Act relating to carbon offset revenue; and relating to the renewable energy grant 02 fund." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 38.95.430 is amended to read: 05 Sec. 38.95.430. Carbon offset revenue. The legislature shall appropriate  06 [TWENTY PERCENT OF] the revenue generated from the carbon offset program as  07 follows: 08 (1) 20 percent to [SHALL BE DEPOSITED INTO] the renewable 09 energy grant fund (AS 42.45.045); 10 (2) [. THE REMAINING] 80 percent for any other public purpose 11 [OF THE REVENUE FROM THE CARBON OFFSET PROGRAM SHALL BE 12 SEPARATELY ACCOUNTED FOR UNDER AS 37.05.142 AND MAY BE 13 APPROPRIATED BY THE LEGISLATURE].  14  * Sec. 2. AS 42.45.045(a) is amended to read: 01 (a) A renewable energy grant fund is established as a separate fund to finance 02 certain energy projects in Alaska for the purpose of providing affordable energy to  03 all communities in the state. 04  * Sec. 3. AS 42.45.045(b) is amended to read: 05 (b) The authority shall administer the fund as a fund distinct from other funds 06 of the authority. The fund consists of appropriations to the fund, including 07 (1) [MONEY APPROPRIATED TO THE FUND BY THE 08 LEGISLATURE TO PROVIDE GRANTS FOR CERTAIN ENERGY PROJECTS 09 DETERMINED BY THE LEGISLATURE; 10 (2)] gifts, bequests, contributions from other sources, and federal 11 money; 12 (2) [(3)] interest earned on the fund balance; and 13 (3) [(4)] investments to be managed by the Department of Revenue, 14 which shall be the fiduciary of the fund under AS 37.10.071. 15  * Sec. 4. AS 42.45.045(d) is amended to read: 16 (d) The authority shall, in consultation with the advisory committee 17 established under (i) of this section and the Department of Natural Resources, 18 (1) develop a methodology for determining the order of projects that 19 may receive assistance, including separate requirements for grant eligibility, and adopt 20 regulations identifying criteria to evaluate the benefit and feasibility of projects for 21 which an applicant applies for a grant under this section [SUPPORT FROM THE 22 LEGISLATURE], with the most weight being given to projects that serve any area in 23 which the average cost of energy to each resident of the area exceeds the average cost 24 to each resident of other areas of the state, and significant weight being given to a 25 statewide balance of grant funds and to the amount of matching funds an applicant is 26 able to make available; 27 (2) provide technical assistance to communities with a population  28 of less than 2,000 to help the community prepare and submit grant applications  29 for projects;  30 (3) annually solicit and review grant applications for projects; 31 (4) provide [MAKE RECOMMENDATIONS TO THE 01 LEGISLATURE FOR] renewable power production reimbursement grants; and 02 (5) [(3)] not later than 10 days after the first day of each regular 03 legislative session, submit to the legislature a report summarizing and reviewing each 04 grant application submitted under this section and an explanation of the authority's  05 decision to approve or deny the grant [A RECOMMENDED PRIORITY FOR 06 AWARDING GRANTS]. 07  * Sec. 5. AS 42.45.045(e) is amended to read: 08 (e) In consultation with the advisory committee established in (i) of this 09 section, the authority shall make determinations [RECOMMENDATIONS TO THE 10 LEGISLATURE] regarding eligible applicants' projects that finance feasibility 11 studies, reconnaissance studies, energy resource monitoring, and construction of 12 renewable energy projects, natural gas projects, or transmission or distribution 13 infrastructure located in Alaska that meet the requirements of (f), (g), or (h) of this 14 section, as applicable, and shall, at least once each year and before making the  15 determinations, solicit from the advisory committee funding recommendations for all 16 grants. 17  * Sec. 6. AS 42.45.045(f) is amended to read: 18 (f) For a renewable energy project to qualify for a grant 19 [RECOMMENDATION] under (e) of this section, the project must 20 (1) be a new project not in operation on August 20, 2008, or an 21 addition to an existing project made after August 20, 2008; and 22 (2) be a 23 (A) hydroelectric facility; 24 (B) direct use of renewable energy resources; 25 (C) facility that generates electricity from fuel cells that use 26 hydrogen from renewable energy resources or natural gas; or 27 (D) facility that generates energy from renewable energy 28 resources. 29  * Sec. 7. AS 42.45.045(g) is amended to read: 30 (g) To qualify for a grant [RECOMMENDATION] under (e) of this section, a 31 project that is a natural gas project must benefit a community that 01 (1) has a population of 10,000 or less; and 02 (2) does not have economically viable renewable energy resources it 03 can develop. 04  * Sec. 8. AS 42.45.045(h) is amended to read: 05 (h) To qualify for a grant [RECOMMENDATION] under (e) of this section, 06 transmission or distribution infrastructure must link a renewable energy project or 07 natural gas project to the transmission or distribution infrastructure. The authority  08 may provide a [A] grant [MAY BE RECOMMENDED] under this subsection even if 09 the grant applicant is not itself financing the construction of the renewable energy 10 project or natural gas project. 11  * Sec. 9. AS 42.45.045(k) is repealed and reenacted to read: 12 (k) The authority may spend money appropriated to the fund for grants for 13 renewable energy projects described in this section without further appropriation. 14 Money appropriated to the fund does not lapse. 15  * Sec. 10. AS 42.45.045 is amended by adding a new subsection to read: 16 (m) The advisory committee appointed under (i) of this section shall elect a 17 chair from among its members. The chair serves for a term of two years. The chair 18 may not serve for consecutive terms. After a year of not serving as chair, the member 19 is eligible for election as chair again. The advisory committee shall meet at the call of 20 the chair.