00 HOUSE BILL NO. 247 01 "An Act relating to the climate change response fund and grant program; relating to a 02 new oil surcharge; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 43.55.023(c) is amended to read: 05 (c) A credit or portion of a credit under this section 06 (1) may not be used to reduce a person's tax liability under 07 AS 43.55.011(e) for any calendar year below zero; 08 (2) may, if not used under this subsection, be applied in a later 09 calendar year; 10 (3) may, regardless of when the credit was earned, be used to satisfy a 11 tax, interest, penalty, fee, or other charge that 12 (A) is related to the tax due under this chapter for a prior year, 13 except for a surcharge under AS 43.55.201 - 43.55.299, [OR] 43.55.300, or  14 43.55.400 or the tax levied by AS 43.55.011(i) or 43.55.014; and 01 (B) has not, for the purpose of art. IX, sec. 17(a), Constitution 02 of the State of Alaska, been subject to an administrative proceeding or 03 litigation. 04  * Sec. 2. AS 43.55.025(h) is amended to read: 05 (h) A producer that purchases a production tax credit certificate may apply the 06 credits against its production tax levied by AS 43.55.011(e). Regardless of the price 07 the producer paid for the certificate, the producer may receive a credit against its 08 production tax liability for the full amount of the credit, but for not more than the 09 amount for which the certificate is issued. A production tax credit or a portion of a 10 production tax credit or a production tax credit certificate or a portion of a production 11 tax credit certificate allowed under this section 12 (1) may not be applied more than once; 13 (2) may be applied in a later calendar year; 14 (3) may, regardless of when the credit was earned, be applied to satisfy 15 a tax, interest, penalty, fee, or other charge that 16 (A) is related to the tax due under this chapter for a prior year, 17 except for a surcharge under AS 43.55.201 - 43.55.299, [OR] 43.55.300, or  18 43.55.400 or the tax levied by AS 43.55.011(i) or 43.55.014; and 19 (B) has not, for the purpose of art. IX, sec. 17(a), Constitution 20 of the State of Alaska, been subject to an administrative proceeding or 21 litigation. 22  * Sec. 3. AS 43.55.165(e)(11) is amended to read: 23 (11) surcharges levied under AS 43.55.201, [OR] 43.55.300, or  24 43.55.400; 25  * Sec. 4. AS 43.55.201(b) is amended to read: 26 (b) The surcharge imposed by (a) of this section is in addition to the tax 27 imposed by AS 43.55.011 and is due on the last day of the month on oil produced 28 from each lease or property during the preceding month. The surcharge is in addition 29 to the surcharges [SURCHARGE] imposed by AS 43.55.300 - 43.55.310 and  30 43.55.400. 31  * Sec. 5. AS 43.55.300(b) is amended to read: 01 (b) The surcharge imposed by (a) of this section is in addition to the tax 02 imposed by AS 43.55.011 and is due on the last day of the month on oil produced 03 from each lease or property during the preceding month. The surcharge is in addition 04 to the surcharges [SURCHARGE] imposed by AS 43.55.201 - 43.55.231 and  05 43.55.400. 06  * Sec. 6. AS 43.55 is amended by adding a new section to read: 07 Article 3A. Climate Change Response Surcharge on Oil. 08 Sec. 43.55.400. Surcharge levied. (a) A producer of oil shall pay a surcharge 09 of $.20 per barrel of oil produced from each lease or property in the state, less any oil 10 the ownership or right to which is exempt from taxation. 11 (b) The surcharge imposed by (a) of this section is in addition to the tax 12 imposed by AS 43.55.011 and is due on the last day of the month on oil produced 13 from each lease or property during the preceding month. The surcharge is in addition 14 to the surcharges imposed by AS 43.55.201 - 43.55.231 and 43.55.300 - 43.55.310. 15 (c) A producer of oil shall make a report of production on March 31 of the 16 year following the calendar year of production and in the same manner and under the 17 same penalties as required under AS 43.55.011 - 43.55.180. 18 (d) Oil not considered under AS 43.55.020(e) to be produced from a lease or 19 property is not considered to be produced from a lease or property for purposes of this 20 section. 21 (e) The surcharge shall be deposited into the general fund and accounted for 22 under AS 37.05.142. The legislature may appropriate the surcharge to the climate 23 change response fund established in AS 44.46.200. 24  * Sec. 7. AS 43.55.900(24) is amended to read: 25 (24) "surcharge" means 26 (A) when used in AS 43.55.201 - 43.55.299, the surcharge 27 levied by AS 43.55.201; 28 (B) when used in AS 43.55.300 - 43.55.310, the surcharge 29 levied by AS 43.55.300; 30 (C) when used in AS 43.55.400, the surcharge levied by  31 AS 43.55.400;  01  * Sec. 8. AS 44.46.020(a) is amended to read: 02 (a) The Department of Environmental Conservation shall 03 (1) have primary responsibility for coordination and development of 04 policies, programs, and planning related to the environment of the state and of the 05 various regions of the state; 06 (2) have primary responsibility for the adoption and enforcement of 07 regulations setting standards for the prevention and abatement of all water, land, 08 subsurface land, and air pollution, and other sources or potential sources of pollution 09 of the environment, including by way of example only, petroleum and natural gas 10 pipelines; 11 (3) promote and develop programs for the protection and control of the 12 environment of the state; 13 (4) take actions that are necessary and proper to further the policy 14 declared in AS 46.03.010; 15 (5) adopt regulations for 16 (A) the prevention and control of public health nuisances; 17 (B) the regulation of sanitation and sanitary practices in the 18 interest of public health; 19 (C) standards of cleanliness and sanitation in connection with 20 the construction, operation, and maintenance of a camp, cannery, food 21 handling establishment, food manufacturing plant, mattress manufacturing 22 establishment, industrial plant, school, barbershop, hairdressing, hair braiding, 23 manicuring, esthetics, tattooing, permanent cosmetic coloring, body piercing, 24 or ear piercing establishment, soft drink establishment, beer and wine 25 dispensaries, and for other similar establishments in which lack of sanitation 26 may create a condition that causes disease; 27 (D) the regulation of quality and purity of commercially 28 compressed air sold for human respiration; 29 (6) administer the climate change response fund and award  30 climate change response grants under AS 44.46.200. 31  * Sec. 9. AS 44.46 is amended by adding a new section to read: 01 Article 2. Climate Change Response.  02 Sec. 44.46.200. Climate change response fund and grants. (a) The climate 03 change response fund is established in the general fund. The fund consists of money 04 appropriated to the fund. 05 (b) Money in the fund may be expended by the department for climate change 06 response grants under (c) of this section without further appropriation. Money in the 07 fund does not lapse. The fund is not a dedicated fund. 08 (c) A nongovernmental organization, political subdivision of the state, or tribal 09 government may apply to the department for a climate change response grant to be 10 used to build, repair, upgrade, or improve a capital asset or other infrastructure in 11 response to climate change. The application must provide evidence acceptable to the 12 department that the applicant 13 (1) meets the threshold for anticipated or real risk from climate change 14 as established by the department; 15 (2) has secured and will maintain adequate property loss insurance for 16 the replacement cost of the capital asset or other infrastructure or has another program 17 of insurance acceptable to the department; and 18 (3) has a preventive maintenance plan for the capital asset or other 19 infrastructure and will adequately adhere to the preventive maintenance plan after 20 completion of the proposed project. 21 (d) The department shall establish priorities for the award of grants under this 22 section. The department shall award grants in the order of priority established. In 23 establishing priorities, the department shall consider how the project will 24 (1) protect or improve public health; 25 (2) protect or improve climate change resiliency; and 26 (3) mitigate environmental damage and loss of life and property caused 27 by adverse weather events and climate change. 28 (e) On or before the 10th day following the convening of each first regular 29 session of the legislature, the commissioner shall submit a report on the fund, 30 including grants made, to the chief clerk of the house of representatives and the senate 31 secretary and notify the legislature that the report is available. 01 (f) In this section, 02 (1) "commissioner" means the commissioner of environmental 03 conservation; 04 (2) "department" means the Department of Environmental 05 Conservation; 06 (3) "fund" means the climate change response fund. 07  * Sec. 10. This Act takes effect immediately under AS 01.10.070(c).