00                            SENATE BILL NO. 168                                                                         
01 "An Act establishing the petroleum engineering research for hydrocarbon optimization                                    
02 grant program and fund in the University of Alaska."                                                                    
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 14.40 is amended by adding a new section to article 1 to read:                                     
05            Sec. 14.40.465. Petroleum engineering research for hydrocarbon                                             
06       optimization grant program and fund. (a) The petroleum engineering research for                                 
07       hydrocarbon optimization grant program and fund are established in the University of                              
08       Alaska to research engineering practices to increase the production of oil and gas from                           
09       the state's producing fields using the latest reservoir optimization technology, to                               
10       conduct studies to promote recovery of technically challenged or unconventional                                   
11       resources such as heavy oil, tight formations, and methane hydrates, and to study the                             
12       application of new technologies to the state's oil and gas resources. The grant fund                              
13       consists of money appropriated to the fund.                                                                       
14            (b)  Appropriations to the grant fund do not lapse.                                                          

01            (c)  The grant fund is not a dedicated fund.                                                                 
02            (d)  The Board of Regents shall act as trustee of the fund and the president of                              
03       the University of Alaska may make grants from the fund, after consultation with the                               
04       research advisory committee established in (e) of this section, for university research                           
05       to                                                                                                                
06                 (1)  develop technology solutions that address the challenges associated                                
07       with the extraction of the state's known oil and gas resources;                                                   
08                 (2)  optimize recovery of oil and gas from existing fields;                                             
09                 (3)  encourage oil and gas exploration and production in                                                
10       underdeveloped or new areas;                                                                                      
11                 (4)  protect and extend the useful life of the state's oil and gas                                      
12       infrastructure; and                                                                                               
13                 (5)  educate future generations of Alaskans through research and                                        
14       development opportunities that increase revenue to the state.                                                     
15            (e)  To provide guidance on grants from the fund, the president of the                                       
16       university shall establish a petroleum engineering research advisory committee                                    
17       consisting of seven members as follows: one member from the governor's office, one                                
18       member from the Department of Natural Resources, one university faculty member,                                   
19       one member from the Alaska Oil and Gas Conservation Commission, and three                                         
20       members from the oil and gas exploration and production industry. The president of                                
21       the university shall establish an application process and evaluation criteria for the                             
22       research advisory committee to apply in recommending grantees. Members of the                                     
23       research advisory committee do not receive reimbursement for travel expenses or per                               
24       diem allowances.                                                                                                  
25            (f)  The president of the university may not make a grant from the fund unless                               
26       the grantee provides matching funds in an amount not less than 20 percent of the total                            
27       proposed grant project costs.                                                                                     
28            (g)  A recipient of a grant from the fund shall provide to the president of the                              
29       university, the legislature, and the Alaska Oil and Gas Conservation Commission an                                
30       annual report and summary of the research or study conducted under the grant.                                     
31            (h)  The president of the university may waive the match requirement in (f) of                               

01       this section if the president determines that matching funds are not available and                                
02       documents that finding in writing.