Enrolled SB 220: Relating to energy efficiency, energy conservation, and alternative energy, to an emerging energy technology fund, to the lease of state land to a public electric utility, to an exemption from taxation by a municipality of certain residential renewable energy systems, to the Alaska heating assistance program, to state energy use data, to the Southeast energy fund, to the alternative energy revolving loan fund, to nuclear energy production and facilities, to the definition of "power project" or "project" as it relates to rural and statewide energy programs and the Alaska Energy Authority, and to the definition of "alternative energy system"; establishing an Alaska energy efficiency revolving loan fund; directing the Department of Transportation and Public Facilities to prepare a report on the feasibility of using compressed natural gas to power vehicles in the state, including vehicles owned, operated, or paid for in whole or in part by the state, and including in that study, if warranted, a pilot program proposal for powering some vehicles owned, operated, or paid for in whole or in part by the state with compressed natural gas; authorizing and relating to the issuance of bonds by the Alaska Housing Finance Corporation; relating to a report regarding a municipal energy improvements financing program and to an energy report by the Office of the Governor; and providing for an effective date.
00Enrolled SB 220 01 Relating to energy efficiency, energy conservation, and alternative energy, to an emerging 02 energy technology fund, to the lease of state land to a public electric utility, to an exemption 03 from taxation by a municipality of certain residential renewable energy systems, to the Alaska 04 heating assistance program, to state energy use data, to the Southeast energy fund, to the 05 alternative energy revolving loan fund, to nuclear energy production and facilities, to the 06 definition of "power project" or "project" as it relates to rural and statewide energy programs 07 and the Alaska Energy Authority, and to the definition of "alternative energy system"; 08 establishing an Alaska energy efficiency revolving loan fund; directing the Department of 09 Transportation and Public Facilities to prepare a report on the feasibility of using compressed 10 natural gas to power vehicles in the state, including vehicles owned, operated, or paid for in 11 whole or in part by the state, and including in that study, if warranted, a pilot program
01 proposal for powering some vehicles owned, operated, or paid for in whole or in part by the 02 state with compressed natural gas; authorizing and relating to the issuance of bonds by the 03 Alaska Housing Finance Corporation; relating to a report regarding a municipal energy 04 improvements financing program and to an energy report by the Office of the Governor; and 05 providing for an effective date. 06 _______________ 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 SHORT TITLE. This Act may be known as the Alaska Sustainable Energy Act. 10 * Sec. 2. AS 14.08.101 is amended to read: 11 Sec. 14.08.101. Powers. A regional school board may 12 (1) sue and be sued; 13 (2) contract with the department, the Bureau of Indian Affairs, or any 14 other school district, agency, or regional board for the provision of services, facilities, 15 supplies, or utilities; 16 (3) determine its own fiscal procedures, including but not limited to 17 policies and procedures for the purchase of supplies and equipment; the regional 18 school boards are exempt from AS 37.05 (Fiscal Procedures Act) and AS 36.30 (State 19 Procurement Code); 20 (4) appoint, compensate, and otherwise control all school employees in 21 accordance with this title; these employees are not subject to AS 39.25 (State 22 Personnel Act); 23 (5) adopt regulations governing organization, policies, and procedures 24 for the operation of the schools; 25 (6) establish, maintain, operate, discontinue, and combine schools 26 subject to the approval of the commissioner; 27 (7) recommend to the department projects for construction, 28 rehabilitation, and improvement of schools and education-related facilities as specified 29 in AS 14.11.011(b), and plan, design, and construct the project when the responsibility
01 for it is assumed under AS 14.11.020; 02 (8) by resolution adopted by a majority of all the members of the board 03 and provided to the commissioner of the department, assume ownership of all land and 04 buildings used in relation to the schools in the regional educational attendance area, as 05 provided for in AS 14.08.151(b); 06 (9) provide housing for rental to teachers, by leasing existing housing 07 from a local agency or individual, by entering into contractual arrangements with a 08 local agency or individual to lease housing that will be constructed by the local agency 09 or individual for that purpose, or, without using for the purpose that portion of public 10 school funding that consists of state aid provided under AS 14.17, by constructing or 11 otherwise acquiring housing that is owned and managed by the regional educational 12 attendance area for rental to teachers; 13 (10) employ a chief school administrator; 14 (11) apply for and use the proceeds of a loan from the Alaska 15 energy efficiency revolving loan fund (AS 18.56.855); 16 (12) exercise those other functions that may be necessary for the 17 proper performance of its responsibilities. 18 * Sec. 3. AS 14.40.170(b) is amended to read: 19 (b) The Board of Regents may 20 (1) adopt reasonable rules, orders, and plans with reasonable penalties 21 for the good government of the university and for the regulation of the Board of 22 Regents; 23 (2) determine and regulate the course of instruction in the university 24 with the advice of the president; 25 (3) set student tuition and fees; 26 (4) receive university receipts and, subject to legislative appropriation, 27 expend university receipts in accordance with AS 37.07 (Executive Budget Act); 28 (5) apply for and use the proceeds of a loan from the Alaska 29 energy efficiency revolving loan fund (AS 18.56.855). 30 * Sec. 4. AS 18.45.020 is amended to read: 31 Sec. 18.45.020. United States licenses or permits required. A person may
01 not manufacture, construct, produce, transfer, acquire, or possess a special nuclear 02 material, by-product material, special nuclear material facility, by-product material 03 facility, production facility, or utilization facility, or act as an operator of a production 04 facility or utilization facility, wholly within the state without first obtaining a license 05 or permit for the activity in which the person proposes to engage from the Nuclear 06 Regulatory Commission if the commission requires a license or permit to be obtained 07 by persons proposing to engage in the activities. 08 * Sec. 5. AS 18.45.025(a) is amended to read: 09 (a) A person may not construct a nuclear fuel production facility, nuclear 10 utilization facility, utilization facility, reprocessing facility, or nuclear waste disposal 11 facility in the state without first obtaining a permit from the Department of 12 Environmental Conservation to construct the facility on land designated by the 13 legislature under (b) of this section. 14 * Sec. 6. AS 18.45.025(b) is amended to read: 15 (b) The legislature shall designate by law the land in the state on which a 16 nuclear fuel production facility, nuclear utilization facility, utilization facility, 17 nuclear reprocessing facility, or nuclear waste disposal facility may be located. In 18 designating the land in the state on which 19 (1) a nuclear utilization facility or utilization facility may be 20 located, the legislature shall act in the interest of regulating the economics of 21 nuclear energy; 22 (2) a nuclear fuel production facility, [NUCLEAR UTILIZATION,] 23 nuclear reprocessing facility, or nuclear waste disposal facility may be located, the 24 legislature shall act to protect the public health and safety. 25 * Sec. 7. AS 18.45.025(c) is repealed and reenacted to read: 26 (c) The Department of Environmental Conservation shall adopt regulations 27 governing the issuance of permits required by (a) of this section. However, a permit 28 may not be issued until the municipality with jurisdiction over the proposed facility 29 site has approved the permit. 30 * Sec. 8. AS 18.56.090 is amended by adding a new subsection to read: 31 (f) In furtherance of its corporate purpose, the corporation may, in cooperation
01 with the Alaska Energy Authority, provide technical assistance to municipalities 02 related to residential and commercial building energy codes and energy efficiency 03 standards. 04 * Sec. 9. AS 18.56 is amended by adding a new section to read: 05 Sec. 18.56.855. Alaska energy efficiency revolving loan fund. (a) The 06 Alaska energy efficiency revolving loan fund is established in the corporation to carry 07 out the purposes of this section. The revolving loan fund consists of money or assets 08 appropriated or transferred to the corporation for the revolving loan fund, including 09 money and assets deposited in the revolving loan fund by the corporation and earnings 10 on investments of money held in the revolving loan fund. The corporation may 11 establish separate accounts in the fund. The corporation shall establish the interest 12 rates, security provisions, and other terms of a loan made under this section taking into 13 consideration the corporation's cost of funds and other factors the corporation 14 considers appropriate. 15 (b) Money and other assets of the Alaska energy efficiency revolving loan 16 fund may be used to 17 (1) make loans to regional educational attendance areas or to municipal 18 governments, including subdivisions of municipal governments, to the University of 19 Alaska, or to the state for the purpose of financing energy efficiency improvements to 20 buildings owned by regional educational attendance areas, by the University of 21 Alaska, by the state, or by municipalities in the state; 22 (2) secure bonds issued by the corporation to finance the loans 23 described in (1) of this subsection; 24 (3) pay costs of administering the revolving loan fund; and 25 (4) pay the costs of administering and enforcing the terms of loans 26 made by the corporation from the revolving loan fund. 27 (c) Before a regional educational attendance area, the University of Alaska, a 28 municipal government, or a subdivision of a municipal government, may borrow 29 money from the corporation under this section, the regional educational attendance 30 area, the University of Alaska, or the municipal government shall waive any sovereign 31 immunity defense it may have available to it with respect to enforcement of the terms
01 of the loan. A regional educational attendance area, the University of Alaska, or a 02 municipal government may waive sovereign immunity to comply with the requirement 03 of this subsection. The state waives any sovereign immunity defense against 04 enforcement of the terms of a loan made to the state under this section. A person or 05 corporation having a claim under this section shall bring an action in a state court in 06 Alaska that has jurisdiction over the claim. 07 (d) All regional educational attendance areas and municipal governments in 08 the state and the University of Alaska are authorized to borrow from the corporation 09 under this section. The corporation shall set out the terms of a loan to a regional 10 educational attendance area in a loan agreement or similar document. At the discretion 11 of the corporation, a borrowing by a regional educational attendance area, the 12 University of Alaska, or a municipal government under this section may be effected 13 by use of a loan agreement or similar document evidencing and setting out the terms 14 of the loan or by issuance of a bond by the municipal government to the corporation. 15 Notwithstanding a charter provision requiring public sale by a regional educational 16 attendance area or a municipality of its municipal bonds or other indebtedness, a 17 regional educational attendance area or municipality may sell its bonds under this 18 section to the corporation at a negotiated, private sale. At the discretion of the 19 corporation, the bonds or other indebtedness of the municipality may be general 20 obligations of the municipality or may be secured by an identified revenue source or 21 by a combination of the full faith and credit of the municipality and an identified 22 revenue source. 23 (e) Notwithstanding any other provision of law, to the extent that a department 24 or agency of the state is the custodian of money payable to a regional educational 25 attendance area, to the University of Alaska, or to a municipality, at any time after 26 written notice to the department or agency head from the corporation that the regional 27 educational attendance area, the University of Alaska, or the municipality is in default 28 on the payment of principal of or interest on municipal bonds or other indebtedness 29 then held or owned by the corporation, or amounts due under an agreement between 30 the corporation and a regional educational attendance area, the University of Alaska, 31 or a municipality, the department or agency shall withhold the payment of that money
01 from that regional educational attendance area, the University of Alaska, or that 02 municipality and pay over the money to the corporation for the purpose of paying the 03 principal of and interest on the bonds or indebtedness. The notice must be given in 04 each instance of default. If a notice is given under this subsection and under 05 AS 44.85.170 and the default is continuing under this subsection and under 06 AS 44.85.170, the department or agency shall make payment to the corporation and to 07 the Alaska Municipal Bond Bank Authority on a pro rata basis, taking into 08 consideration the principal amount of the respective default amounts. 09 (f) An authorized state officer may borrow from the corporation under this 10 section for buildings owned by the state. The superintendent of a regional educational 11 attendance area, at the direction of the regional educational attendance area school 12 board, may borrow from the corporation under this section for buildings owned by the 13 regional educational attendance area. The president of the University of Alaska, at the 14 direction of the Board of Regents, may borrow under this section for buildings owned 15 by the University of Alaska. 16 (g) In addition to other security that may be given with respect to a loan made 17 under this section, the corporation may require a deed of trust on the building that is 18 the subject of the energy efficiency loan and the real estate on which the building is 19 located. A regional educational attendance area, the University of Alaska, or a 20 municipality may grant a deed of trust to the corporation as needed for this purpose. 21 An authorized state officer may grant a deed of trust to the corporation as needed for 22 this purpose. 23 (h) The corporation shall administer the Alaska energy efficiency revolving 24 loan fund in accordance with regulations adopted by the corporation. The corporation 25 may adopt regulations under AS 18.56.088 to carry out the purposes of this section. 26 (i) This section applies to home rule municipalities. 27 (j) In this section, "authorized state officer" means 28 (1) the commissioner of the department of the state for a building 29 owned by the state; 30 (2) the executive director of a public corporation for a building owned 31 by the public corporation;
01 (3) the legislative council for a building owned by the legislature; 02 (4) the administrative director of courts for a building owned by the 03 judicial system; 04 (5) any other person designated in writing by a person listed in (1) - (4) 05 of this subsection. 06 * Sec. 10. AS 29.45.050(b) is amended to read: 07 (b) A municipality may by ordinance 08 (1) classify and exempt from taxation 09 (A) the property of an organization not organized for business 10 or profit-making purposes and used exclusively for community purposes if the 11 income derived from rental of that property does not exceed the actual cost to 12 the owner of the use by the renter; 13 (B) historic sites, buildings, and monuments; 14 (C) land of a nonprofit organization used for agricultural 15 purposes if rights to subdivide the land are conveyed to the state and the 16 conveyance includes a covenant restricting use of the land to agricultural 17 purposes only; rights conveyed to the state under this subparagraph may be 18 conveyed by the state only in accordance with AS 38.05.069(c); 19 (D) all or any portion of private ownership interests in property 20 that, based upon a written agreement with the University of Alaska, is used 21 exclusively for student housing for the University of Alaska; property may be 22 exempted from taxation under this subparagraph for no longer than 30 years 23 unless the exemption is specifically extended by ordinance adopted within the 24 six months before the expiration of that period; 25 (E) a residential renewable energy system that is used to 26 develop means of energy production using energy sources other than fossil 27 or nuclear fuel, including windmills and water and solar energy devices 28 located in the municipality; 29 (2) classify as to type and exempt or partially exempt some or all types 30 of personal property from ad valorem taxes. 31 * Sec. 11. AS 37.07.040 is amended to read:
01 Sec. 37.07.040. Office of management and budget. The Alaska office of 02 management and budget shall 03 (1) assist the governor in meeting the requirements of AS 37.07.020, 04 including the coordination and analysis of state agency goals and objectives, plans, 05 and budget requests; 06 (2) prepare for submission to the governor an annually updated six- 07 year capital improvements program and the proposed capital improvements budget for 08 the coming fiscal year, the latter to include individual project justification with 09 documentation of estimated project cost; 10 (3) develop procedures to produce the information needed for effective 11 policy decision making, including procedures to provide for the dissemination of 12 information about plans, programs, and budget requests to be included in the annual 13 budget and opportunity for public review and comment during the period of budget 14 preparation; 15 (4) assist state agencies in their statement of goals and objectives to 16 achieve, among other things, the legislature's mission and desired results, preparation 17 of plans, assessments of the extent to which missions and desired results have been 18 achieved, budget requests, and reporting of program performance; all documents 19 forwarded by the office to a state agency containing instructions for the preparation of 20 program plans and budget requests and the reporting of program performance are 21 public information after the date they are forwarded; 22 (5) administer its responsibilities under the program execution 23 provisions of this chapter so that the policy decisions and budget determinations of the 24 governor and the legislature are implemented; 25 (6) provide the legislative finance division with the budget information 26 it may request; 27 (7) provide the legislative finance division with an advance copy of the 28 governor's budget workbooks at least seven days before the legislature convenes in a 29 regular session; 30 (8) prepare the proposed capital improvements budget for the coming 31 fiscal year evaluating both state and local requests from the standpoint of need, equity,
01 and priorities of the jurisdiction; other factors such as project amounts, population, 02 local financial match, federal funds being used for local match, municipality or 03 unincorporated community acceptance of the facility, and all associated costs of the 04 facility may be considered; 05 (9) for each department in the executive branch, report to the 06 legislature by the 45th day of each regular session the amount of money appropriated 07 to the department that is expected to lapse into the general fund at the end of the 08 current fiscal year; 09 (10) establish and administer a state agency program performance 10 management system involving planning, performance budgeting, performance 11 measurement, and program evaluation; the office shall ensure that information 12 generated under this system is useful for managing and improving the efficiency and 13 effectiveness of agency operations; 14 (11) by January 15, list each lease-purchase agreement entered into by 15 an agency during the immediately preceding fiscal year for the acquisition of 16 equipment or other personal property, together with a description of the property 17 acquired and financial details, including the purchase price, the term for payments, the 18 amount of each payment, and the amount of interest or financing charges paid; 19 (12) work with state agencies to develop a standardized 20 methodology to collect and store energy consumption and expense data. 21 * Sec. 12. AS 38.05.810(e) is amended to read: 22 (e) The lease, sale, or other disposal of state land at appraised fair market 23 value may be negotiated with a licensed public utility or a licensed common carrier by 24 the director with the approval of the commissioner if the utility or carrier reasonably 25 requires the land for the conduct of its business under its license. A lease with a 26 licensed public utility that is an electric utility entered into under this subsection 27 may not include, as part of the rent or other fee that is negotiated or charged, an 28 amount that is based on or determined by a percentage of gross revenue for 29 renewable energy produced by the electric utility. 30 * Sec. 13. AS 42.45.040 is repealed and reenacted to read: 31 Sec. 42.45.040. Southeast energy fund. (a) The Southeast energy fund is
01 established as a separate fund. The fund consists of 02 (1) money appropriated to the fund by the legislature; 03 (2) money transferred to it under former AS 42.45.050; 04 (3) gifts, bequests, contributions from other sources, and federal 05 money; 06 (4) interest earned on the fund balance; and 07 (5) investments, to be managed by the Department of Revenue, which 08 shall be the fiduciary of the fund under AS 37.10.071. 09 (b) The fund is not a dedicated fund. 10 (c) The authority may make grants from the Southeast energy fund to a 11 municipality of the state, a joint action agency established under AS 42.45.300 and 12 42.45.310, a member-owned electric cooperative established under AS 10.25, or 13 another electric utility holding a certificate of public convenience and necessity under 14 AS 42.05 for power projects, repayment of loans, and payments on bonds for 15 hydroelectric projects and electrical transmission lines or interties serving Southeast 16 Alaska that are entirely owned by the grantee. 17 (d) An appropriation from the fund for a project described in (c) of this section 18 lapses back into the fund if substantial, ongoing work on the project has not begun 19 within seven years after the effective date of the appropriation. 20 * Sec. 14. 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) In order to promote 23 the expansion of energy sources available to Alaskans, the emerging energy 24 technology fund is established. The fund consists of 25 (1) money appropriated to the fund by the legislature to provide grants 26 for energy projects; and 27 (2) gifts, bequests, contributions from other sources, and federal 28 money appropriated to the fund. 29 (b) The fund is not a dedicated fund. 30 (c) The fund shall be administered by the authority, but the authority may 31 contract for the investment of money appropriated to the fund but not disbursed for a
01 grant. The authority, in consultation with the advisory committee established under (f) 02 of this section, may make grants from the fund to eligible applicants for demonstration 03 projects of technologies that have a reasonable expectation to be commercially viable 04 within five years and that are designed to 05 (1) test emerging energy technologies or methods of conserving 06 energy; 07 (2) improve an existing energy technology; or 08 (3) deploy an existing technology that has not previously been 09 demonstrated in the state. 10 (d) In making grants under this section, the authority, in consultation with the 11 advisory committee established under (f) of this section, shall give priority to 12 (1) Alaska residents, associations, organizations, or institutions; 13 (2) projects that demonstrate partnership with the University of Alaska 14 or another Alaska postsecondary institution; 15 (3) projects supported by matching funds or in-kind partnerships; and 16 (4) projects with potential for widespread deployment in the state. 17 (e) In administering the fund, the authority may enter into a contract or 18 agreement with the University of Alaska to provide technical and economic review 19 and analysis for the advisory committee established under (f) of this section and data 20 acquisition and analysis of the projects awarded grants. 21 (f) An advisory committee is established and consists of seven members. Each 22 member of the committee shall have a degree in science or engineering, or equivalent 23 professional experience, and at least two years of experience working in the state. 24 Members of the committee shall be appointed by the governor to staggered three-year 25 terms. The committee consists of one representative of each of the following groups: 26 (1) a business or organization engaged in the renewable energy sector; 27 (2) a business or organization engaged in the fossil fuel energy sector; 28 (3) the Alaska Power Association or an Alaska electric utility; 29 (4) the Denali Commission established under P.L. 105-277 and 30 mentioned in a note at 42 U.S.C. 3121; 31 (5) the National Renewable Energy Laboratory;
01 (6) the Arctic Energy Office of the National Energy Technology 02 Laboratory; 03 (7) the Alaska Industrial Development and Export Authority. 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) If a member of the advisory committee appointed under (f)(4), (5), or (6) 08 of this section is not available to serve as a member of the committee, the governor 09 shall appoint a representative from a federal agency or department with a comparable 10 mission or purpose to the agency listed in (f)(4), (5), or (6) of this section to fill the 11 position on the committee. If a representative from a federal agency or department is 12 not available to fill the position, the governor may appoint a member from a state 13 agency or department. 14 (i) A business or organization represented by a member of the advisory 15 committee under (f) of this section is not eligible to receive a grant from the fund. 16 (j) In this section, 17 (1) "eligible applicant" means 18 (A) an electric utility holding a certificate of public 19 convenience and necessity under AS 42.05; 20 (B) an independent power producer; 21 (C) a local government, quasi-governmental entity, or other 22 governmental entity, including a tribal council or housing authority; 23 (D) a business holding an Alaska business license; or 24 (E) a nonprofit organization; 25 (2) "energy technology" means technology that promotes, enhances, or 26 expands the diversity of available energy supply sources or means of transmission, 27 increases energy efficiency, or reduces negative energy-related environmental effects; 28 "energy technology" includes technology related to renewable sources of energy, 29 conservation of energy, enabling technologies, efficient and effective use of 30 hydrocarbons, and integrated energy systems; 31 (3) "fund" means the emerging energy technology fund.
01 * Sec. 15. AS 42.45.990(4) is amended to read: 02 (4) "power project" or "project" means a plant, works, system, or 03 facility, together with related or necessary facilities and appurtenances, including a 04 divided or undivided interest in or a right to the capacity of a power project or project, 05 that is used or is useful for the purpose of 06 (A) electrical or thermal energy production [OTHER THAN 07 NUCLEAR ENERGY PRODUCTION]; 08 (B) waste energy utilization and energy conservation; or 09 (C) transmission, purchase, sale, exchange, and interchange of 10 electrical or thermal energy, including district heating or interties; 11 * Sec. 16. AS 44.42.020(a) is amended to read: 12 (a) The department shall 13 (1) plan, design, construct, and maintain all state modes of 14 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 15 and similar facilities; 16 (2) study existing transportation modes and facilities in the state to 17 determine how they might be improved or whether they should continue to be 18 maintained; 19 (3) study alternative means of improving transportation in the state 20 with regard to the economic costs of each alternative and its environmental and social 21 effects; 22 (4) develop a comprehensive, long-range, intermodal transportation 23 plan for the state; 24 (5) study alternatives to existing modes of transportation in urban areas 25 and develop plans to improve urban transportation; 26 (6) cooperate and coordinate with and enter into agreements with 27 federal, state, and local government agencies and private organizations and persons in 28 exercising its powers and duties; 29 (7) manage, operate, and maintain state transportation facilities and all 30 docks, floats, breakwaters, and buildings, including all state highways, vessels, 31 railroads, pipelines, airports, and aviation facilities;
01 (8) study alternative means of transportation in the state, considering 02 the economic, social, and environmental effects of each alternative; 03 (9) coordinate and develop state and regional transportation systems, 04 considering deletions, additions, and the absence of alterations; 05 (10) develop facility program plans for transportation and state 06 buildings, docks, and breakwaters required to implement the duties set out in this 07 section, including but not limited to functional performance criteria and schedules for 08 completion; 09 (11) supervise and maintain all state automotive and mechanical 10 equipment, aircraft, and vessels, except vessels and aircraft used by the Department of 11 Fish and Game or the Department of Public Safety; for state vehicles maintained by 12 the department, the department shall, every five years, evaluate the cost, efficiency, 13 and commercial availability of alternative fuels for automotive purposes, and the 14 purpose for which the vehicles are intended to be used, and convert vehicles to use 15 alternative fuels or purchase energy efficient vehicles [TO USE ALTERNATIVE 16 FUELS] whenever practicable; the department may participate in joint ventures with 17 public or private partners that will foster the availability of alternative fuels for all 18 automotive fuel consumers; 19 (12) supervise aeronautics inside the state, under AS 02.10; 20 (13) implement the safety and financial responsibility requirements for 21 air carriers under AS 02.40; 22 (14) inspect weights and measures; 23 (15) at least every four years, study alternatives available to finance 24 transportation systems in order to provide an adequate level of funding to sustain and 25 improve the state's transportation system. 26 * Sec. 17. AS 44.42 is amended by adding a new section to read: 27 Sec. 44.42.067. Retrofits and new construction for energy efficiency; 28 energy efficiency report. (a) Not later than January 1, 2020, the department shall 29 work with other state agencies to retrofit at least 25 percent of all public facilities, 30 starting with those it determines are the least energy efficient, if the department 31 determines that retrofitting the public facilities will result in a net savings in energy
01 costs to the state within 15 years after completion of the retrofits for a public facility 02 and if funding for the retrofits is available. 03 (b) A retrofit or deferred maintenance of a public facility performed under this 04 section, to the extent feasible, shall 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 (c) New construction of a public facility under this section shall meet or 09 exceed the most recently published edition of the ASHRAE/IESNA Standard 90.1, 10 Energy Standard for Buildings Except for Low-Rise Residential Buildings, as 11 published by the American Society of Heating, Refrigerating and Air-Conditioning 12 Engineers. 13 (d) Not later than January 1 of each year, the department, in consultation with 14 the Department of Administration, shall submit a report to the legislature detailing the 15 department's progress in meeting the requirements of this section to reduce state 16 energy consumption and costs and carrying out the duties listed in AS 44.42.020 as 17 they relate to energy use. The department shall include in the report an analysis of the 18 consumption and expense data recorded by the office of management and budget 19 under AS 37.07.040, comparing energy consumption levels in each year with past 20 years to determine if reductions are being achieved. 21 (e) In this section, "public facility" means a facility owned and controlled by 22 the state for government or public use that is 10,000 square feet or more and is not a 23 legislative building or court building. 24 * Sec. 18. AS 44.83.080 is amended by adding a new paragraph to read: 25 (17) to promote energy conservation, energy efficiency, and alternative 26 energy through training and public education. 27 * Sec. 19. AS 44.83.990(6) is amended to read: 28 (6) "power project" or "project" means a plant, works, system, or 29 facility, together with related or necessary facilities and appurtenances, including a 30 divided or undivided interest in or a right to the capacity of a power project or project, 31 that is used or is useful for the purpose of
01 (A) electrical or thermal energy production [OTHER THAN 02 NUCLEAR ENERGY PRODUCTION]; 03 (B) waste energy utilization and energy conservation; or 04 (C) transmission, purchase, sale, exchange, and interchange of 05 electrical or thermal energy, including district heating or interties; 06 * Sec. 20. AS 45.88.010(a) is amended to read: 07 (a) There is established in the Department of Commerce, Community, and 08 Economic Development the alternative energy conservation revolving loan fund to 09 carry out the purposes of AS 45.88.010 - 45.88.090. Loans made under AS 45.88.010 10 - 45.88.090 are to be used 11 (1) to develop means of energy production utilizing one or more 12 alternative energy systems; and 13 (2) to purchase, construct, and install energy conservation 14 improvements in commercial buildings [ENERGY SOURCES OTHER THAN 15 FOSSIL OR NUCLEAR FUEL, INCLUDING, BUT NOT LIMITED TO, 16 WINDMILLS, WATER AND SOLAR ENERGY DEVICES]. 17 * Sec. 21. AS 45.88.010 is amended by adding a new subsection to read: 18 (e) The alternative energy conservation revolving loan fund consists of 19 (1) money appropriated to the fund by the legislature; 20 (2) gifts, bequests, or contributions from other sources; 21 (3) principal and interest payments or other income earned on loans or 22 investments in the fund; and 23 (4) money chargeable to principal or interest that is collected through 24 liquidation by foreclosure or other processes on loans made under AS 45.88.010 - 25 45.88.090. 26 * Sec. 22. AS 45.88.020(a) is amended to read: 27 (a) The department may 28 (1) make loans for the purchase, construction, and installation, in 29 commercial buildings that are located in the state, of 30 (A) alternative energy systems; and 31 (B) energy conservation improvements;
01 (2) adopt regulations necessary to carry out the provisions of 02 AS 45.88.010 - 45.88.090, including regulations to establish reasonable fees for 03 services provided and charges for collecting the fees; 04 (3) collect the fees and collection charges established under this 05 subsection. 06 * Sec. 23. AS 45.88 is amended by adding a new section to read: 07 Sec. 45.88.025. Eligibility. To be eligible for a loan under AS 45.88.010 - 08 45.88.090, an applicant must 09 (1) physically reside in the state and maintain a domicile in the state 10 during 12 consecutive months before the date of application for a loan and may not 11 have 12 (A) declared or established residency in another state; or 13 (B) received residency or a benefit based on residency from 14 another state; 15 (2) be at least 51 percent owned by individuals described in (1) of this 16 section if the applicant is a corporation, joint venture, or partnership; or 17 (3) be a nonprofit organization under AS 10.20. 18 * Sec. 24. AS 45.88.030(a) is repealed and reenacted to read: 19 (a) A loan made under AS 45.88.010 - 45.88.090 may not exceed $50,000. If 20 the requested loan amount exceeds $30,000, the applicant must deliver to the 21 department a document from a financial institution stating that 22 (1) the applicant has been denied a loan for the same purpose; or 23 (2) the loan from the financial institution is contingent on the applicant 24 also receiving a loan from the fund. 25 * Sec. 25. AS 45.88.030(e) is amended to read: 26 (e) The rate of interest for a loan under AS 45.88.010 - 45.88.090 is the 27 prime rate, as defined by AS 44.88.599, plus one percentage point, but may not be 28 less than five percent a year [FOR AN ALTERNATIVE ENERGY SYSTEM IS 29 FIVE PERCENT FOR THE FIRST $15,000 OF THE LOAN AND 15 PERCENT 30 FOR THE AMOUNT OF THE LOAN THAT EXCEEDS $15,000]. 31 * Sec. 26. AS 45.88.030 is amended by adding a new subsection to read:
01 (f) A loan under AS 45.88.010 - 45.88.090 must be secured by a mortgage or 02 other security instrument in the real property to be improved and a lien on the 03 improvements financed with the loan. 04 * Sec. 27. AS 45.88.090(a) is amended to read: 05 (a) In AS 45.88.010 - 45.88.090, 06 (1) "alternative energy system" 07 (A) [(1)] means a source of thermal, mechanical or electrical 08 energy that [WHICH] is not dependent on oil or gas or a nuclear fuel for the 09 supply of energy for space heating and cooling, refrigeration and cold storage, 10 electrical power, mechanical power, or the heating of water; 11 (B) [(2)] includes 12 (i) [(A)] an alternative energy property as defined by 26 13 U.S.C. 48(a)(3)(A) (Sec. 301, P.L. 95-618, Internal Revenue Code); 14 (ii) [(B)] a method of architectural design and 15 construction that [WHICH] provides for the collection, storage, and 16 use of direct radiation from the sun; 17 (iii) [(C)] a woodstove that complies with the 18 provisions of 40 C.F.R. 60.530 [WITH A CATALYTIC 19 CONVERTER OR A CATALYTIC CONVERTER FOR A WOOD 20 STOVE]; 21 (iv) [AND (D)] a steam, hot water, or ducted hot air 22 central heating system that uses wood or coal for fuel; and 23 (v) a high efficiency wood pellet or grain stove; 24 (C) [(3)] does not include 25 (i) [(A)] a stove that uses only coal [WOOD, COAL,] 26 or oil for fuel; or 27 (ii) [(B)] a fireplace or fireplace insert; 28 (2) "commercial building" 29 (A) means a building that is intended to be used for 30 commercial purposes; 31 (B) does not include
01 (i) a residential structure or mobile home that 02 contains one to four family housing units; or 03 (ii) individual units of condominiums or 04 cooperatives; 05 (3) "energy conservation improvement" means 06 (A) structural insulation; 07 (B) thermal windows and doors; 08 (C) a furnace replacement burner designed to achieve a 09 reduction in the amount of fuel consumed as a result of increased 10 combustion efficiency; 11 (D) a device for modifying flue openings designed to 12 increase the efficiency of operation of the heating system; 13 (E) an electrical or mechanical furnace ignition system that 14 replaces a gas pilot light; 15 (F) an automatic energy-saving setback thermostat; 16 (G) a meter that displays the cost of energy usage; 17 (H) caulking and weather-stripping of doors and windows; 18 (I) insulating shades and shutters; 19 (J) air and water recuperators. 20 * Sec. 28. AS 46.11.900(1) is amended to read: 21 (1) "alternative energy system" 22 (A) means a source of thermal, mechanical, or electrical energy 23 that is not dependent on oil or gas [OR A NUCLEAR FUEL] for the supply of 24 energy for space heating and cooling, refrigeration and cold storage, electrical 25 power, mechanical power, or the heating of water; 26 (B) includes 27 (i) an alternative energy property as defined by 26 28 U.S.C. 48(a)(3)(A); and 29 (ii) a method of architectural design and construction 30 that provides for the collection, storage, and use of direct radiation from 31 the sun;
01 * Sec. 29. AS 47.25.621 is amended to read: 02 Sec. 47.25.621. Alaska affordable heating [ASSISTANCE] program. (a) 03 The Alaska affordable heating [ASSISTANCE] program is established in the 04 Department of Health and Social Services to provide expanded eligibility for Alaska 05 residents for home heating assistance, to the extent funds are available in the Alaska 06 affordable heating fund [APPROPRIATED BY THE LEGISLATURE FOR THAT 07 PURPOSE]. 08 (b) The Alaska affordable heating [ASSISTANCE] program established 09 under this section is in addition to the federal low-income heating and energy 10 assistance provided under 42 U.S.C. 8621 - 8629 (Low-Income Home Energy 11 Assistance Act of 1981), as amended, and implementing regulations. 12 * Sec. 30. AS 47.25.621 is amended by adding a new subsection to read: 13 (c) The Alaska affordable heating fund is established as a separate fund to be 14 managed by the Department of Revenue. The fund consists of appropriations made to 15 it. Interest earned by the fund may be appropriated to it. The Department of Health and 16 Social Services shall use money in the fund for Alaska affordable heating payments. 17 * Sec. 31. AS 47.25.622 is amended to read: 18 Sec. 47.25.622. Duties. The Department of Health and Social Services 19 [DEPARTMENT] shall 20 (1) administer the Alaska affordable heating [ASSISTANCE] 21 program provided under AS 47.25.621; 22 (2) adopt regulations under AS 44.62 (Administrative Procedure Act) 23 to carry out the purpose of the program; 24 (3) coordinate payments among other heating assistance programs to 25 avoid duplication of payments. 26 * Sec. 32. AS 47.25.623 is amended to read: 27 Sec. 47.25.623. Eligibility; payment amount. An individual is eligible for 28 home heating assistance payments under the Alaska affordable heating 29 [ASSISTANCE] program if the individual 30 (1) is a resident of the state; 31 (2) is physically present and resides in a home in the state when the
01 home heating costs are incurred; 02 (3) for assistance calculated under (b) and (c) of this section, has 03 gross household income not to exceed, as a percentage of the federal poverty 04 guideline for Alaska set by the United States Department of Health and Human 05 Services and revised under 42 U.S.C. 9902(2), 06 (A) 225 percent for a determination to be made under (c)(1) 07 - (3) of this section; and 08 (B) 250 percent for a determination to be made under (c)(4) 09 of this section; and [HAS GROSS HOUSEHOLD INCOME ABOVE 150 10 PERCENT BUT THAT DOES NOT EXCEED 225 PERCENT OF THE 11 FEDERAL POVERTY GUIDELINE FOR ALASKA SET BY THE UNITED 12 STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES AND 13 REVISED UNDER 42 U.S.C. 9902(2);] 14 (4) meets other eligibility requirements specified in regulations 15 adopted under AS 47.25.622. 16 * Sec. 33. AS 47.25.623 is amended by adding new subsections to read: 17 (b) The Department of Health and Social Services shall determine the number 18 of points for each eligible individual based on the point formula used under 42 U.S.C. 19 8621 - 8629 (Low-Income Home Energy Assistance Act of 1981), as amended, and 20 implementing regulations. Except as provided in (d) of this section, the amount of the 21 Alaska affordable heating payment for an individual equals the base amount calculated 22 under (c) of this section minus the amount the individual is eligible to receive under 23 the federal low-income home energy assistance program under 42 U.S.C. 8621 - 8629, 24 as amended, and implementing regulations. 25 (c) The Department of Health and Social Services shall calculate the base 26 amount of the Alaska affordable heating payment for the individual based on points 27 determined under (b) of this section and on the average price a barrel of Alaska North 28 Slope crude oil for sale on the United States West Coast during September through 29 February of the preceding fiscal year as follows: 30 (1) $130 a point when the average price is not more than $75 a barrel; 31 (2) $140 a point when the average price is more than $75 and not more
01 than $100 a barrel; 02 (3) $150 a point when the average price is more than $100 and not 03 more than $150 a barrel; 04 (4) $165 a point when the average price is more than $150 a barrel. 05 (d) Under the program authorized by AS 47.25.621 - 47.25.626, taking into 06 consideration the gross household income rates established in (a) of this section and 07 the base amounts to be calculated under (b) and (c) of this section, 08 (1) if insufficient money is appropriated to fully fund the Alaska 09 affordable heating payments during the fiscal year, the department 10 (A) shall, for the duration of that fiscal year, suspend 11 calculation and payment under (a)(3)(B) of this section and calculate and pay 12 all eligible individuals under (a)(3)(A) of this section; and 13 (B) may, to the extent there is or may be an appropriation 14 balance surplus to the amount required to make all payments under (A) of this 15 paragraph, by regulation, establish at any time during the fiscal year a 16 prospective pro rata reduction of the payment rates that the department will 17 pay to eligible individuals under the program during that fiscal year qualifying 18 under (a)(3)(B) of this section and, thereafter, may provide for prorated 19 payments; and 20 (2) if the commissioner reasonably determines that the total of 21 appropriations from all sources during the fiscal year may exceed the amount required 22 to fully fund all applications for assistance for Alaska affordable heating payments, the 23 commissioner may expend the amount of excess money, not to exceed the total 24 amount of the appropriations, to carry out the purpose of AS 47.25.621 - 47.25.626; 25 under the authority of this paragraph, the commissioner shall distribute the estimated 26 excess money pro rata among individuals receiving assistance under this section 27 without regard to the limitations set out in the dollar value of the point formula 28 expressed in (c)(1) - (4) of this section. 29 * Sec. 34. AS 47.25.626(a) is amended to read: 30 (a) The Department of Health and Social Services [DEPARTMENT] may 31 develop a regional Alaska heating [ASSISTANCE] program for the administration of
01 AS 47.25.621 - 47.25.626 to provide home heating assistance in a uniform and cost- 02 effective manner in a region of this state if an Alaska Native organization is authorized 03 to implement a federally approved tribal family assistance plan that includes that 04 region and has been awarded a tribal energy assistance grant for a program that 05 includes that region under 42 U.S.C. 8623(d). 06 * Sec. 35. AS 47.25.626(b) is amended to read: 07 (b) The department may award contracts to implement a program developed 08 under (a) of this section. A contract authorized for delivery of home heating assistance 09 under a regional Alaska heating [ASSISTANCE] program under this section is exempt 10 from the competitive bid requirements of AS 36.30 (State Procurement Code). Subject 11 to appropriation, a contract under this section must be in an amount that represents a 12 fair and equitable share of the money appropriated for the Alaska affordable heating 13 [ASSISTANCE] program under AS 47.25.621 - 47.25.626 to serve the state residents 14 specified in (a) of this section. The authority provided under this section to contract is 15 in addition to the authority to contract in AS 47.05.015 or other law. 16 * Sec. 36. AS 47.25.626(f) is amended to read: 17 (f) If the department establishes a regional Alaska heating [ASSISTANCE] 18 program and awards a contract to provide home heating assistance under this section, 19 (1) a person applying for home heating assistance under AS 47.25.621 20 - 47.25.626 in the region of the state covered by the regional Alaska heating 21 [ASSISTANCE] program may obtain home heating assistance from the department 22 only through the organization designated by the department to serve the region; 23 (2) the department may require the contractor 24 (A) to operate and administer the contract in a manner 25 consistent with the organization's federally approved energy assistance 26 grant and plan; or 27 (B) to apply the provisions of AS 47.25.623 to determine 28 eligibility for home heating assistance to a person for whom assistance 29 may be paid under the contract or may allow the contractor to use other 30 criteria to determine that eligibility. 31 * Sec. 37. AS 42.45.375, enacted by sec. 14 of this Act, is repealed January 1, 2015.
01 * Sec. 38. AS 45.88.010(c), 45.88.030(c), 45.88.030(d), and 45.88.040(a) are repealed. 02 * Sec. 39. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 OFFICE OF MANAGEMENT AND BUDGET. Not later than January 31, 2011, the 05 office of management and budget shall develop a standardized methodology to collect and 06 store energy consumption and expense data as described in AS 37.07.040(12), as enacted by 07 sec. 11 of this Act. 08 * Sec. 40. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 OFFICE OF THE GOVERNOR ENERGY REPORT. Not later than January 31, 2011, 11 the governor shall submit a report to the legislature providing recommendations for how best 12 to structure state energy programs and offices to increase the coordination and efficiency of 13 the state's efforts and describing state energy services and programs in their entirety. The 14 report must also include an examination of existing powers and duties and the structure of the 15 Alaska Energy Authority and its board of directors, specifically analyzing the relationship 16 between the Alaska Energy Authority and the Alaska Industrial Development and Export 17 Authority. 18 * Sec. 41. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 USE OF COMPRESSED NATURAL GAS TO POWER VEHICLES; PILOT 21 PROGRAM; STUDY; PROPOSAL; REPORT. (a) The Department of Transportation and 22 Public Facilities shall, under the authority of AS 44.42.020(a)(3), study the feasibility of using 23 compressed natural gas to power vehicles in the state. The study must 24 (1) review existing government programs and incentives offered in Utah and 25 other North American jurisdictions that promote the use of compressed natural gas to power 26 vehicles; 27 (2) review and summarize relevant studies and investigations on existing 28 public policy incentives that encourage the use of compressed natural gas to power vehicles; 29 (3) evaluate the environmental benefits and technical merits of using 30 compressed natural gas to power vehicles; 31 (4) consider the economic, environmental, and technological advantages and
01 disadvantages of using and promoting the use of compressed natural gas to power vehicles in 02 the state; and 03 (5) if warranted by the findings of the study, set out a proposal for a pilot 04 program in the state to test the use of compressed natural gas to power vehicles owned, 05 operated, or paid for in whole or in part by the state; the proposal must 06 (A) recommend the most cost-effective and appropriate departments 07 and geographic locations for a pilot program; 08 (B) detail how the pilot program, if successful, could be expanded to 09 provide for increased use of compressed natural gas to power vehicles owned or 10 operated by the state, as well as privately owned or operated vehicles; 11 (C) estimate the costs to the state of a pilot program in which the state 12 would purchase vehicles powered by compressed natural gas or convert existing 13 vehicles to be powered by compressed natural gas, including 14 (i) the costs of maintaining vehicles powered by compressed 15 natural gas and training maintenance personnel; 16 (ii) the costs of adapting, or encouraging the adapting of, state 17 vehicle fueling locations to provide compressed natural gas; 18 (iii) the costs of using compressed natural gas instead of diesel 19 fuel or gasoline; 20 (iv) the costs of expanding the pilot program or developing 21 additional pilot programs under (B) of this paragraph; 22 (v) other costs or savings that can be reasonably expected to 23 accompany the pilot program. 24 (b) The Department of Transportation and Public Facilities shall prepare a report 25 containing the results of the study under (a) of this section not later than January 31, 2011. 26 The department shall notify the legislature when the report is available. 27 * Sec. 42. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 BOND AUTHORIZATION AND PROVISIONS. (a) In addition to the powers in 30 AS 18.56.090, the Alaska Housing Finance Corporation may issue bonds in an amount not to 31 exceed $250,000,000 to make loans from the Alaska energy efficiency revolving loan fund
01 established by AS 18.56.855, enacted by sec. 9 of this Act, and to finance the purposes 02 permitted by AS 18.56.855, enacted by sec. 9 of this Act. AS 18.56.110 - 18.56.190 and 03 18.56.855, enacted by sec. 9 of this Act, apply to bonds issued under this section, except that 04 bonds issued under this section are not subject to, and may not be counted against, the bond 05 issuance limitation set out in AS 18.56.110(g). 06 (b) The Alaska Housing Finance Corporation shall deposit the proceeds of bonds 07 issued under (a) of this section in the Alaska energy efficiency revolving loan fund in 08 accordance with AS 18.56.855, enacted by sec. 9 of this Act. 09 * Sec. 43. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 MUNICIPAL ENERGY IMPROVEMENTS FINANCING PROGRAM 12 RECOMMENDATION. Not later than January 31, 2011, the Department of Revenue shall 13 submit to the legislature a report and recommendations regarding the feasibility of a 14 municipal energy improvements financing program. The report must 15 (1) address financing programs for energy efficiency and renewable energy 16 projects on residential, commercial, and industrial property through property tax assessments; 17 and 18 (2) identify the costs and benefits of a municipal energy improvements 19 financing program in the state. 20 * Sec. 44. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: REGULATIONS. (a) To the extent consistent with secs. 29 - 36 of 23 this Act, regulations of the Department of Health and Social Services adopted under the 24 authority of AS 47.25.622 that are in effect on the effective date of secs. 29 - 36 of this Act 25 remain in effect until the department adopts regulations consistent with secs. 29 - 36 of this 26 Act. 27 (b) A state agency affected by this Act with the authority to adopt regulations under 28 state law may proceed to adopt regulations necessary to implement the changes made by this 29 Act. The regulations take effect in accordance with applicable state law but not before the 30 effective date of the law implemented by the regulation. 31 * Sec. 45. The uncodified law of the State of Alaska is amended by adding a new section to
01 read: 02 REGULATIONS ATTORNEY'S INSTRUCTION. Throughout the Alaska 03 Administrative Code, the regulations attorney is instructed to change the phrase "Alaska 04 Heating Assistance Program" to "Alaska Affordable Heating Program," as appropriate, if 05 consistent with the changes made in secs. 29 - 36 of this Act. 06 * Sec. 46. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES. Not later 09 than one year after the effective date of this section, the Department of Transportation and 10 Public Facilities, in consultation with the Alaska Energy Authority, shall adopt and implement 11 a systematic process for prioritizing the retrofitting of state facilities for a long-term increase 12 in energy efficiency and reduction of energy costs. 13 * Sec. 47. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 REVISOR'S INSTRUCTIONS. (a) The revisor of statutes is instructed to change the 16 heading of art. 6 of AS 18.56 from "Energy Conservation" to "Energy Efficiency and 17 Conservation Programs." 18 (b) The revisor of statutes is instructed to change the heading of art. 4 of AS 47.25 19 from "Alaska Heating Assistance Program" to "Alaska Affordable Heating Program." 20 * Sec. 48. Section 44(b) of this Act takes effect immediately under AS 01.10.070(c).