00                      CS FOR SENATE BILL NO. 277(RES)                                                                   
01 "An Act exempting from regulation by the Regulatory Commission of Alaska and by                                         
02 municipalities certain generators of electricity from renewable energy resources that sell                              
03 electricity to regulated utilities."                                                                                    
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 29.35.070(a) is amended to read:                                                                   
06            (a)  The assembly acting for the area outside all cities in the borough and the                              
07       council acting for the area in a city may regulate, fix, establish, and change the rates                          
08       and charges imposed for a utility service provided to the municipality or its inhabitants                         
09       by a utility that is not subject to regulation under AS 42.05 unless that utility is                              
10       exempted from regulation under AS 42.05.711(a), (d) - (k), (o), [OR] (p), or (q), or is                       
11       exempted under regulations adopted under AS 42.05.810 from complying with all or                                  
12       part of AS 42.05.141 - 42.05.721.                                                                                 
13    * Sec. 2. AS 42.05.711(l) is amended to read:                                                                      
14            (l)  A person, utility, joint action agency established under AS 42.45.310, or                               

01       cooperative that is exempt from regulation under (a), (d) - (k), [OR] (o), or (q) of this                     
02       section is not subject to regulation by a municipality under AS 29.35.060 and                                     
03       29.35.070.                                                                                                        
04    * Sec. 3. AS 42.05.711 is amended by adding a new subsection to read:                                              
05            (q)  A plant or facility that generates electricity entirely from renewable energy                           
06       resources, as that term is defined in AS 42.45.045, is exempt from regulation under                               
07       this chapter if                                                                                                   
08                 (1)  the plant or facility is                                                                           
09                      (A)  first placed into service on or after the effective date of this                              
10            subsection and before January 1, 2016; and                                                                   
11                      (B)  does not generate more than 65 megawatts of electricity;                                      
12                 (2)  the electricity generated by the plant or facility is sold only to one                             
13       or more public utilities that are regulated by the commission; and                                                
14                 (3)  the person that owns the plant or facility has not received from the                               
15       state                                                                                                             
16                      (A)  a grant that was used to generate the electricity from the                                    
17            renewable energy resources; or                                                                               
18                      (B)  a tax credit related to the generation of electricity from the                                
19            renewable energy resources.