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CSHB 445(L&C): "An Act relating to the alternative energy grant fund and to alternative energy grants."

00 CS FOR HOUSE BILL NO. 445(L&C) 01 "An Act relating to the alternative energy grant fund and to alternative energy grants." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 42.45 is amended by adding a new section to read: 04 Sec. 42.45.045. Alternative energy grant fund. (a) The alternative energy 05 grant fund is established as a separate fund in the authority. At the end of each 06 calendar year, if the balance in the fund is less than $250,000,000, the Department of 07 Revenue shall calculate an amount equal to 10 cents for each barrel of crude oil 08 produced in the state during that year while the average West Coast prevailing value 09 for crude oil was $35 a barrel or higher and notify the governor and the legislature of 10 that amount. The legislature may appropriate the amount calculated by the Department 11 of Revenue to the alternative energy grant fund together with any income earned on 12 money in the fund. Nothing in this subsection creates a dedicated fund. 13 (b) The authority may use money in the alternative energy grant fund to fund 14 new or previously awarded existing grants to electric utilities for new or existing 15 alternative energy projects. A grant may not exceed $20,000,000; however, more than

01 one grant may be awarded for a particular alternative energy project. 02 (c) The authority may grant money only for an alternative energy project that 03 the authority determines is economically viable and that will result in reduced costs for 04 consumers of the services of the electric utility. To qualify for a grant, the electric 05 utility must provide from other sources a match amount for the alternative energy 06 project that is equal to 25 percent of the grant amount. In awarding grants, the 07 authority shall give priority to alternative energy projects located in areas where fossil 08 fuel costs are higher than in other areas of the state. 09 (d) For purposes of this section, 10 (1) "alternative energy project" means a system that provides a source 11 of thermal, mechanical, or electrical energy that is not dependent on a fossil fuel other 12 than natural gas for the supply of energy; 13 (2) "electric utility" means a corporation, whether public, cooperative, 14 or otherwise, company, individual, or association of individuals, their lessees, trustees, 15 or receivers appointed by a court, that owns, operates, manages, or controls a plant or 16 system for furnishing, by generation, transmission, or distribution, electrical service to 17 the public for compensation.