SB 220: "An Act declaring a state energy policy; relating to energy efficiency and alternative energy; establishing the energy efficiency grant fund, an emerging energy technology fund, a renewable energy production tax credit, and an energy use index; and relating to a fuel purchasing cooperative, to energy codes and efficiency standards, to energy conservation targets in public buildings, to a state agency energy use reduction plan, to the alternative energy revolving loan fund, and to the renewable energy grant fund."
00 SENATE BILL NO. 220 01 "An Act declaring a state energy policy; relating to energy efficiency and alternative 02 energy; establishing the energy efficiency grant fund, an emerging energy technology 03 fund, a renewable energy production tax credit, and an energy use index; and relating to 04 a fuel purchasing cooperative, to energy codes and efficiency standards, to energy 05 conservation targets in public buildings, to a state agency energy use reduction plan, to 06 the alternative energy revolving loan fund, and to the renewable energy grant fund." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 SHORT TITLE. This Act may be known as the Alaska Sustainable Energy Act. 11 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 LEGISLATIVE INTENT. For AS 44.99.115, enacted by sec. 19 of this Act, it is the
01 intent of the legislature that the state 02 (1) achieve a 10 percent increase in energy efficiency on a per capita basis by 03 2015 and a 15 percent increase in energy efficiency by 2020; 04 (2) receive 50 percent of its electric generation from renewable energy sources 05 by 2025; 06 (3) work to ensure a reliable in-state gas supply for residents of the state. 07 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 PURPOSE. The purpose of secs. 14 - 16, 18, 27, and 28 of this Act is to reduce the 10 amount of energy consumed by public facilities by 20 percent not later than 15 years after the 11 completion of the energy use index database, thereby reducing costs to the state and 12 increasing jobs in energy efficiency industries. 13 * Sec. 4. AS 18.56.090 is amended by adding a new subsection to read: 14 (f) In furtherance of its corporate purpose, the corporation may, in cooperation 15 with the Alaska Energy Authority, provide technical assistance to municipalities 16 related to residential and commercial building energy codes and energy efficiency 17 standards. 18 * Sec. 5. AS 18.56 is amended by adding a new section to read: 19 Sec. 18.56.310. Energy efficiency grant fund. (a) An energy efficiency grant 20 fund is established in the corporation as a separate fund to provide grants for energy 21 efficiency projects. 22 (b) The corporation shall administer the energy efficiency grant fund as a fund 23 separate from other funds of the corporation. The energy efficiency grant fund consists 24 of money appropriated to the fund by the legislature to provide grants for energy 25 efficiency projects. 26 (c) The energy efficiency grant fund is not a dedicated fund. 27 (d) The corporation may provide grants from the energy efficiency grant fund 28 to 29 (1) municipalities and unincorporated communities for energy 30 efficiency improvements of municipal or unincorporated community buildings or to 31 enhance the energy efficiency of buildings to be constructed;
01 (2) school districts for energy efficiency improvements of schools or 02 other school district buildings or to enhance the energy efficiency of schools or other 03 school district buildings to be constructed; and 04 (3) the University of Alaska for energy efficiency improvements of 05 university buildings or to enhance the energy efficiency of university buildings to be 06 constructed. 07 (e) For a new construction project to qualify for a grant under this section, the 08 project must be designed and constructed in accordance with applicable standards 09 listed in the most recently published edition of the ASHRAE/IESNA Standard 90.1, 10 Energy Standard for Buildings Except Low-Rise Residential Buildings, as published 11 by the American Society of Heating, Refrigerating, and Air-Conditioning Engineers or 12 the minimal standards listed in the Leadership in Energy and Environmental Design 13 rating system for a certified building. 14 (f) In awarding grants from the energy efficiency grant fund under this 15 section, the corporation shall give priority to projects that 16 (1) propose the highest level of energy savings for each dollar spent; 17 (2) have obtained funding for the project from sources other than state 18 sources. 19 (g) The corporation shall adopt regulations necessary to carry out the 20 provisions of this section. 21 * Sec. 6. AS 35.10 is amended by adding a new section to article 1 to read: 22 Sec. 35.10.085. Alternative energy for public works. (a) When preparing and 23 adopting plans and specifications and determining standards for the construction of a 24 public work under AS 35.10.010, the department shall review the option of using a 25 viable alternative energy system for heat or electrical power for the public work. 26 (b) If a viable alternative energy resource is available and can be used as a 27 primary or secondary source of heat or electrical power or the department determines a 28 viable alternative energy source will become available, a public work constructed 29 under this chapter shall be constructed to accommodate or be compatible with the 30 viable alternative energy system. 31 (c) In this section, "viable alternative energy system" means a system that uses
01 a nonfossil fuel fired system for heat or electrical power that, if used over the course of 02 the life of the facility, will cost not more than a fossil fuel fired system to purchase, 03 install, maintain, and operate and will have less measurable adverse effect on the 04 environment than a fossil fuel fired system. 05 * Sec. 7. AS 36.30 is amended by adding a new section to read: 06 Sec. 36.30.323. Preference for energy efficient appliances, equipment, and 07 vehicles. (a) The commissioner shall, by regulation, provide for a preference for 08 appliances and equipment that have received an Energy Star under the Energy Star 09 program of the United States Environmental Protection Agency and the United States 10 Department of Energy when equipment and appliances are being procured by the state. 11 If Energy Star equipment or appliances are not available for a procurement, preference 12 shall be given to the most energy efficient equipment or appliances that are available. 13 (b) The commissioner shall, by regulation, set standards for the procurement 14 of energy-efficient vehicles when state vehicles are being replaced. 15 * Sec. 8. 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 support from the legislature, with the most weight being 22 given to projects that serve any area in which the average cost of energy to each 23 resident of the area exceeds the average cost to each resident of other areas of the 24 state, and significant weight being given to a statewide balance of grant funds, [AND] 25 to the amount of matching funds an applicant has verified to the authority that are 26 [IS ABLE TO MAKE] available for a project, and to projects that are likely to 27 have a financial benefit that exceeds the amount of grant funds received; 28 (2) make recommendations to the legislature for renewable power 29 production reimbursement grants; [AND] 30 (3) not later than 10 days after the first day of each regular legislative 31 session, submit to the legislature a report summarizing and reviewing each grant
01 application submitted under this section and a recommended priority for awarding 02 grants; and 03 (4) require activity reports for each project funded at intervals 04 determined by the authority. 05 * Sec. 9. AS 42.45.045 is amended by adding a new subsection to read: 06 (m) The authority shall enter into a contract or agreement with an economist 07 with experience in the area of renewable energy for the economist to prepare a written 08 evaluation for each project the authority recommends under (e) of this section and 09 submit a report to the legislature detailing the results of the evaluation. 10 * Sec. 10. AS 42.45 is amended by adding a new section to article 5 to read: 11 Sec. 42.45.260. Fuel purchasing cooperative. (a) The authority shall organize 12 or provide for the organization of a statewide fuel purchasing cooperative, or may 13 participate with others in the organization of a statewide fuel purchasing cooperative, 14 and shall adopt regulations to allow communities, utilities, and school districts to 15 participate in a statewide fuel purchasing cooperative. 16 (b) The authority shall create a procedure by which a community that is not 17 eligible initially to participate in the fuel purchasing cooperative under this section 18 may join the cooperative at a later date by providing satisfactory proof to the authority 19 that good standing has been restored. 20 * Sec. 11. AS 42.45 is amended by adding a new section to read: 21 Article 7A. Emerging Energy Technology Fund. 22 Sec. 42.45.375. Emerging energy technology fund. (a) The emerging energy 23 technology fund is established. The fund consists of 24 (1) money appropriated to the fund by the legislature to provide grants 25 for energy projects; and 26 (2) gifts, bequests, contributions from other sources, and federal 27 money appropriated to the fund. 28 (b) The fund is not a dedicated fund. 29 (c) The fund shall be administered by the interdisciplinary research unit of the 30 arm of the College of Engineering and Mines of the University of Alaska known as the 31 Alaska Center for Energy and Power, whose mission is to research energy sources and
01 the way in which energy fits into the state's economic development, but the Alaska 02 Center for Energy and Power may contract for the investment of money appropriated 03 to the fund but not disbursed for a grant. The Alaska Center for Energy and Power, in 04 consultation with the advisory committee established under (f) of this section, may 05 make grants from the fund to eligible applicants for 06 (1) research, development, or demonstration projects designed to 07 (A) test new energy technologies or methods of conserving 08 energy; or 09 (B) improve an existing energy technology; and 10 (2) applied research projects that employ energy technology with a 11 reasonable expectation that the technology will be commercially viable in not more 12 than five years. 13 (d) In making grants under this section, the Alaska Center for Energy and 14 Power, in consultation with the advisory committee established under (f) of this 15 section, shall give priority to 16 (1) Alaska residents, associations, organizations, or institutions; 17 (2) projects that demonstrate partnership with the University of Alaska 18 or another Alaska postsecondary institution; and 19 (3) projects supported by matching funds or in-kind partnerships. 20 (e) If the University of Alaska alters the status of the Alaska Center for Energy 21 and Power, the president of the University of Alaska shall promptly notify the revisor 22 of statutes and the presiding officer of each house of the state legislature of that 23 change. 24 (f) An advisory committee is established and consists of five members. Each 25 member of the committee shall have a degree in science or engineering and at least 26 two years of experience working in the state. Members of the committee shall be 27 appointed by the governor to staggered three-year terms. The committee consists of 28 one representative of each of the following groups: 29 (1) a business or organization engaged in the renewable energy sector; 30 (2) a business or organization engaged in the fossil fuel energy sector; 31 (3) the Alaska Power Association or an Alaska electric utility;
01 (4) the Denali Commission established under P.L. 105-277 and 02 mentioned in a note at 42 U.S.C. 3121; 03 (5) a department or agency of the state. 04 (g) A member of the advisory committee appointed under (f) of this section 05 serves without compensation but is entitled to per diem and travel expenses as 06 provided in AS 39.20.180. 07 (h) In this section, 08 (1) "eligible applicant" means 09 (A) an electric utility holding a certificate of public 10 convenience and necessity under AS 42.05; 11 (B) an independent power producer; 12 (C) a local government, quasi-governmental entity, or other 13 governmental entity, including a tribal council or housing authority; 14 (D) a business holding an Alaska business license; or 15 (E) a nonprofit organization. 16 (2) "energy technology" means technology that promotes, enhances, or 17 expands the diversity of available energy supply sources or means of transmission, 18 increases energy efficiency, or reduces negative energy-related environmental effects; 19 "energy technology" includes technology related to renewable sources of energy, 20 conservation of energy, enabling technologies, efficient and effective use of 21 hydrocarbons, and integrated energy systems; 22 (3) "fund" means the emerging energy technology fund. 23 * Sec. 12. AS 43.20.021(d) is amended to read: 24 (d) Where a credit allowed under the Internal Revenue Code is also allowed in 25 computing Alaska income tax, it is limited to 18 percent for corporations of the 26 amount of credit determined for federal income tax purposes that [WHICH] is 27 attributable to Alaska. This limitation does not apply to a special industrial incentive 28 tax credit under AS 43.20.042 or to a renewable energy production tax credit 29 under AS 43.20.046. 30 * Sec. 13. AS 43.20 is amended by adding a new section to article 1 to read: 31 Sec. 43.20.046. Renewable energy production tax credit. (a) An energy
01 producer that produces renewable energy may claim a renewable energy production 02 tax credit in the amount of 15 percent of the retail rate for each kilowatt-hour of 03 electricity charged by the energy producer, as determined by the Regulatory 04 Commission of Alaska; however, a tax credit may not be less than 2.1 cents for each 05 kilowatt-hour of renewable energy produced or more than five cents for each kilowatt- 06 hour of renewable energy produced. 07 (b) An energy producer may claim a renewable energy tax credit under this 08 section for each kilowatt-hour of renewable energy produced or sold for each of the 09 first five tax years after the date the capital investment used to produce renewable 10 energy is placed into service if the energy producer sells all or part of the energy 11 produced. 12 (c) A renewable energy tax credit under this section may be claimed only for a 13 capital investment 14 (1) to produce renewable energy that is placed into service on or after 15 July 1, 2009; or 16 (2) to expand production of renewable energy if the investment for 17 production expansion is made on or after July 1, 2009. 18 (d) An unused renewable energy tax credit under this section may be carried 19 forward and applied against the tax liability of the energy producer. 20 (e) A renewable energy tax credit provided under this section may be sold, 21 assigned, exchanged, conveyed, or otherwise transferred, in whole or in part. 22 (f) A taxpayer acquiring a renewable energy tax credit under (a) or (e) of this 23 section may use the tax credit or a portion of the tax credit to offset taxes imposed 24 under this chapter. Any portion of the credit not used may be used at a later time or 25 transferred under (e) of this section. 26 (g) A renewable energy tax credit acquired under (a) or (e) of this section, 27 when combined with any state aid that the energy producer receives for the capital 28 investment made to produce renewable energy for which the credit is acquired, may 29 not exceed 10 percent of the energy producer's capital investment for production of 30 renewable energy, aggregated over the five years within which the credit is allowed to 31 be claimed under (b) of this section.
01 (h) An energy producer that claims a renewable energy tax credit under this 02 section and that wishes to transfer the unused tax credit to a taxpayer under (e) of this 03 section may apply to the department for a transferable tax credit certificate. An 04 application under this subsection must be in a form prescribed by the department and 05 must include supporting information and documentation that the department 06 reasonably requires. The department shall grant or deny the tax credit certificate, or 07 grant the tax credit certificate as to a lesser amount than that for which application is 08 made and deny it as to the excess, not later than 120 days after it receives the 09 application. 10 (i) An energy producer that uses a renewable energy production tax credit to 11 offset the tax imposed by this chapter or transfers the credit under (e) of this section 12 may not also claim the federal renewable energy credit under 26 U.S.C. 45, authorized 13 by AS 43.20.021, for a capital investment associated with the production or expansion 14 of renewable energy that generated the credit under this section. 15 (j) The department shall 16 (1) prescribe an application form for a tax credit under this section; and 17 (2) adopt regulations necessary for the administration of this section. 18 (k) In this section, 19 (1) "capital investment" means an expenditure made 20 (A) as a cash expenditure or binding payment agreement for 21 real property or tangible personal property used in this state in the production 22 of renewable energy; and 23 (B) for an asset first placed in service for the production of 24 renewable energy in the state during or before the tax year in which the credit 25 is claimed; in this subparagraph, "placed in service for the production of 26 renewable energy in the state" means that the first use of the capital investment 27 is in this state; if the property on which the claim of the credit is based has 28 been used elsewhere in the tax year of acquisition and is brought to this state 29 during that year or a subsequent year, the property does not qualify as a capital 30 investment; 31 (2) "energy producer" means
01 (A) an electric utility or independent power producer holding a 02 certificate of public convenience and necessity under AS 42.05; or 03 (B) an independent power producer producing more than 100 04 kilowatts of electricity from renewable energy; 05 (3) "renewable energy" means geothermal, solar, hydroelectric, wind, 06 biomass, hydrokinetic or tidal, and wave energy. 07 * Sec. 14. AS 44.42.065 is amended to read: 08 Sec. 44.42.065. Energy use index database maintenance; energy audit 09 [CONSERVATION OF ENERGY IN PUBLIC BUILDINGS]. (a) The department 10 shall 11 (1) update the energy use index database established in 12 AS 44.83.955 not later than December 31 of each year; and 13 (2) conduct [, AT LEAST ONCE EVERY SEVEN YEARS, 14 PERFORM] an energy audit of each public facility whenever, in updating the 15 energy use index under (1) of this subsection, the department determines there is 16 substantial energy inefficiency for the public facility [BUILDING]. 17 (b) The department shall include in each energy audit required by (a)(2) [(a)] 18 of this section recommendations for corrective measures to improve the energy 19 efficiency and to minimize the life-cycle cost of the public facility [BUILDING] 20 surveyed. These measures may include (1) energy conservation measures, (2) 21 measures involving solar technology and other renewable [ALTERNATIVE] energy 22 systems, (3) energy management, and (4) maintenance and operating procedures and 23 energy-related modifications. In recommending the corrective measures, the 24 department shall give priority to changes in maintenance and operating procedures 25 over measures requiring substantial structural modification or installation of 26 equipment. 27 (c) In this section, "energy audit" means a determination of 28 (1) the energy consumption characteristics of a public facility 29 [BUILDING], including the size, type, and rate of energy consumption of major 30 energy-consuming systems of the public facility [BUILDING] and the climate 31 characterizing the region where the public facility [BUILDING] is located; and
01 (2) a determination of the energy conservation and cost savings likely 02 to result from appropriate energy-conserving maintenance and operating procedures 03 and modifications, including the purchase and installation of energy-related fixtures. 04 * Sec. 15. AS 44.42.065 is amended by adding a new subsection to read: 05 (d) The department shall annually, not later than December 31, determine an 06 appropriate energy conservation target for each public building and report the energy 07 conservation targets for all buildings to each agency of the state. 08 * Sec. 16. AS 44.42 is amended by adding a new section to read: 09 Sec. 44.42.067. Retrofits; performance contracting for energy efficiency. 10 (a) In addition to its obligation under AS 44.42.065, the department shall 11 (1) retrofit all public facilities listed in the energy use index described 12 in AS 44.83.955; and 13 (2) retrofit, replace, or redesign inefficient lighting fixtures to be as 14 efficient as possible while meeting federal guidelines. 15 (b) In carrying out the duty under (a) of this section, the department may, if no 16 other funding or partial funding for a project is available, 17 (1) enter into an energy performance contract; and 18 (2) administer a performance contract for a public facility by 19 contracting with an energy service company that is a member of the National 20 Association of Energy Service Companies. 21 (c) If the department uses an energy performance contract under (b) of this 22 section for a project retrofitting a public facility, the contract may also include 23 renewable energy projects and capital improvements not related to energy retrofitting. 24 (d) The department shall manage its duties under (a) of this section so that the 25 retrofitting of public facilities identified in the energy use index database described in 26 AS 44.83.955 shall be completed not later than 15 years after completion of the energy 27 use index database. 28 (e) If the department determines that an energy retrofit described under (a) of 29 this section is not cost-effective, the department may postpone the retrofit until it is 30 determined to be cost-effective or additional capital improvements are required. In 31 making the determination under this subsection, the department may consider if the
01 energy retrofit will be able to meet a return on investment within 15 years after the 02 project is completed. 03 (f) Any retrofit, new construction, or deferred maintenance of a public facility 04 performed under this section must meet or exceed the most recently published edition 05 of the ASHRAE/IESNA Standard 90.1, Energy Standard for Buildings Except for 06 Low-Rise Residential Buildings, as published by the American Society of Heating, 07 Refrigerating and Air-Conditioning Engineers. 08 (g) In this section, 09 (1) "performance contract" means an agreement for the provision of 10 energy services and equipment in which a private entity or qualified third party agrees 11 to finance, design, construct, install, maintain, operate, or manage energy systems or 12 equipment to improve the energy efficiency of, or produce energy for, a facility in 13 exchange for a portion of the cost savings, lease payments, or specified revenue, and 14 by which the level of payments is made contingent on verified energy savings, energy 15 production, avoided maintenance, avoided energy equipment replacement, or any 16 combination of verified energy savings, energy production, avoided maintenance, or 17 avoided energy equipment replacement; 18 (2) "public facility" means a facility owned or controlled and held by 19 the state for government or public use. 20 * Sec. 17. AS 44.83.080 is amended by adding a new subsection to read: 21 (b) In furtherance of its corporate purpose, the authority shall annually plan 22 and conduct, in cooperation with the Alaska Housing Finance Corporation, a public 23 education campaign to promote energy efficiency and conservation. 24 * Sec. 18. AS 44.83 is amended by adding a new section to read: 25 Sec. 44.83.955. Energy use index. (a) The authority shall 26 (1) develop an energy use index for public facilities to measure 27 baseline energy consumption; 28 (2) establish an energy use index database to include baseline energy 29 use data for all public facilities evaluated in (1) of this subsection; and 30 (3) adopt regulations establishing the methodology to be used in 31 determining the energy use index described in (1) of this subsection.
01 (b) In this section, "public facility" means a facility owned or controlled and 02 held by the state for government or public use. 03 * Sec. 19. AS 44.99 is amended by adding a new section to read: 04 Sec. 44.99.115. Declaration of state energy policy. The State of Alaska 05 recognizes that the state's economic prosperity is dependent on available, reliable, and 06 affordable residential, commercial, and industrial energy to supply the state's electric, 07 heating, and transportation needs. The state also recognizes that worldwide supply and 08 demand for fossil fuels and concerns about global climate change will affect the price 09 of fossil fuels consumed by Alaskans and exported from the state to other markets. In 10 establishing a state energy policy, the state further recognizes the immense diversity of 11 the state's geography, cultures, and resource availability. Therefore, it is the policy of 12 the state to 13 (1) institute a comprehensive and coordinated approach to supporting 14 energy efficiency and conservation by 15 (A) establishing statewide energy efficiency codes for new and 16 renovated public buildings and by assisting local communities interested in 17 adopting energy efficiency codes for new and renovated residential and 18 commercial buildings; 19 (B) decreasing public building energy consumption through 20 conservation measures and energy-efficient technologies; and 21 (C) educating state residents on the benefits of energy 22 efficiency and conservation, including dissemination of information on state 23 and federal programs that reward energy efficiency; 24 (2) encourage economic development by 25 (A) promoting the development of renewable energy resources, 26 including geothermal, wind, solar, hydroelectric, hydrokinetic, tidal, and 27 biomass energy, for use by Alaskans and for export; 28 (B) promoting the development, transport, and efficient use of 29 nonrenewable energy resources, including natural gas, coal, oil, gas hydrates, 30 and heavy oil, for use by Alaskans, for export, and as feedstock for value- 31 added enterprises;
01 (C) working to identify and assist with development of the 02 most cost-effective, long-term sources of energy for each community 03 statewide; 04 (D) creating and maintaining a state fiscal regime that 05 encourages private sector development of the state's energy resources; 06 (3) support energy research, education, and workforce development by 07 investing in 08 (A) training and education programs that address energy 09 conservation, efficiency, and availability, including programs that address 10 workforce development and workforce transition; and 11 (B) applied energy research and development of emerging 12 technologies, including university programs, to achieve reductions in state 13 energy costs and stimulate industry investment in the state; 14 (4) coordinate governmental functions by 15 (A) actively collaborating with federal agencies to achieve the 16 state's energy goals and to meet national emissions, renewable energy, and 17 energy production targets; and 18 (B) reviewing and streamlining regulatory processes and 19 balancing the economic costs of review with the level of review necessary to 20 protect the public interest. 21 * Sec. 20. AS 45.88.010 is amended by adding a new subsection to read: 22 (e) The fund consists of 23 (1) money appropriated to the fund by the legislature; 24 (2) gifts, bequests, or contributions from other sources; and 25 (3) principal and interest payments or other income earned on loans or 26 investments in the fund and appropriated to the fund. 27 * Sec. 21. AS 45.88.020(a) is amended to read: 28 (a) The department may 29 (1) make loans for the purchase, construction, and installation of 30 alternative energy systems that are located in the state; 31 (2) adopt regulations necessary to carry out the provisions of
01 AS 45.88.010 - 45.88.090, including regulations to establish reasonable fees for 02 services provided and charges for collecting the fees; 03 (3) collect the fees and collection charges established under this 04 subsection. 05 * Sec. 22. AS 45.88.030 is amended by adding new subsections to read: 06 (f) A loan must be secured by a mortgage or other security instrument in the 07 real property to be improved, and a lien on the improvements financed under 08 AS 45.88.010. 09 (g) The interest rate 10 (1) may not exceed the maximum rate of eight percent a year and may 11 not be less than five percent a year; 12 (2) shall be established by the department based on the bank prime rate 13 listed in the Wall Street Journal during the previous quarter plus one percentage point, 14 set to the nearest one-half point for loans made; and 15 (3) set for a quarter remains in effect until the department changes the 16 rate. 17 * Sec. 23. AS 45.88.090(a) is amended to read: 18 (a) In AS 45.88.010 - 45.88.090, "alternative energy system" 19 (1) means a source of thermal, mechanical, or electrical energy that 20 [WHICH] is not dependent on oil or gas or a nuclear fuel for the supply of energy for 21 space heating and cooling, refrigeration and cold storage, electrical power, mechanical 22 power, or the heating of water; 23 (2) includes 24 (A) an alternative energy property as defined by 26 U.S.C. 25 48(a)(3)(A) (Sec. 301, P.L. 95-618, Internal Revenue Code); 26 (B) a method of architectural design and construction which 27 provides for the collection, storage, and use of direct radiation from the sun; 28 (C) a woodstove with a catalytic converter or a catalytic 29 converter for a wood stove; [AND] 30 (D) a steam, hot water, or ducted hot air central heating system 31 that uses wood or coal for fuel; and
01 (E) a high efficiency wood pellet stove; 02 (3) does not include 03 (A) a stove that uses only [WOOD,] coal, [OR] oil, or 04 unprocessed wood for fuel; or 05 (B) a fireplace or fireplace insert. 06 * Sec. 24. AS 45.88.010(c), 45.88.030(e), and 45.88.040(a) are repealed. 07 * Sec. 25. AS 43.20.046 is repealed January 1, 2025. 08 * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 EXHAUSTION OF UNUSED RENEWABLE ENERGY PRODUCTION TAX 11 CREDITS. Notwithstanding the repeal of AS 43.20.046 by sec. 25 of this Act, an unused 12 portion of a tax credit acquired under AS 43.20.046(a) or (e), enacted by sec. 13 of this Act, 13 may be carried forward until exhausted, except that the unused portion of the tax credit may 14 not be carried forward to tax years beginning after December 31, 2025. 15 * Sec. 27. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 ENERGY USE INDEX DATABASE. The Alaska Energy Authority shall establish 18 the energy use index database described in AS 44.83.955, added by sec. 18 of this Act, not 19 later than six months after the effective date of this Act. 20 * Sec. 28. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 ENERGY PERFORMANCE REPORT. Not later than January 31 of each of the three 23 years following the completion of an energy retrofit project, the Department of Transportation 24 and Public Facilities shall submit to the legislature an energy performance report detailing the 25 effectiveness of the energy efficiency measures provided for in secs. 14, 16, and 18 of this 26 Act. 27 * Sec. 29. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 STATE AGENCY ENERGY USE REDUCTION PLAN AND REPORTS. The 30 Department of Administration shall, in consultation with the Department of Transportation 31 and Public Facilities, submit a plan to the legislature not later than December 1, 2010, to
01 reduce state agency energy use by 10 percent by 2015 and, until that date, shall annually 02 report to the legislature and the public on progress achieved in implementing the plan.