CSHB 154(ENE): "An Act relating to subsidiary corporations of the Alaska Housing Finance Corporation; establishing the Alaska energy independence fund; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 154(ENE) 01 "An Act relating to subsidiary corporations of the Alaska Housing Finance 02 Corporation; establishing the Alaska energy independence fund; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 18.56.010 is amended by adding a new subsection to read: 06 (h) The legislature finds that permitting the Alaska Housing Finance 07 Corporation to create a subsidiary to assist in the financing of sustainable energy 08 development serves a public purpose benefitting the people of the state. The Alaska 09 Housing Finance Corporation is empowered to act on behalf of the state and its people 10 in serving this public purpose for the benefit of the general public. 11 * Sec. 2. AS 18.56.086(a) is amended to read: 12 (a) The corporation may create subsidiary corporations for the purpose of 13 financing or facilitating the financing of school construction, facilities for the 14 University of Alaska, facilities for ports and harbors, the acquisition, development,
01 management, or operation of affordable housing, prepayment of all or a portion of a 02 governmental employer's share of unfunded accrued actuarial liability of retirement 03 systems, sustainable energy development, or other capital projects. A subsidiary 04 corporation created under this section may be incorporated under AS 10.20.146 - 05 10.20.166. The corporation may transfer assets of the corporation to a subsidiary 06 created under this section. A subsidiary created under this section may borrow money 07 and issue bonds as evidence of that borrowing, and has all the powers of the 08 corporation that the corporation grants to it. However, a subsidiary created for the 09 purpose of financing or facilitating the financing of prepayment of a governmental 10 employer's share of unfunded accrued actuarial liability of retirement systems may 11 borrow money and issue bonds only after submitting a proposal to the Legislative 12 Budget and Audit Committee under (b) of this section, if the state bond rating is the 13 equivalent of AA- or better, and subject to AS 37.15.903. Unless otherwise provided 14 by the corporation, the debts, liabilities, and obligations of a subsidiary corporation 15 created under this section are not the debts, liabilities, or obligations of the 16 corporation. 17 * Sec. 3. AS 18.56.090(e) is amended to read: 18 (e) In furtherance of its corporate purpose, the corporation may, in cooperation 19 with the Alaska Energy Authority, provide technical assistance to 20 (1) municipalities that is related to residential and commercial 21 building energy codes and energy efficiency standards; and 22 (2) support or establish public, quasi-public, or nonprofit entities 23 that provide financial assistance for sustainable energy development projects in 24 the state, including community and low-income lenders and capital providers. 25 * Sec. 4. AS 18.56 is amended by adding a new section to article 6 to read: 26 Sec. 18.56.870. Alaska energy independence fund. (a) The Alaska energy 27 independence fund is established in the corporation to carry out the purposes of 28 AS 18.56.010(h) and this section. The Alaska energy independence fund consists of 29 money or assets appropriated or transferred to the corporation, including federal 30 grants, money and assets deposited in the fund by the corporation, unrestricted loan 31 payments, and interest or other income earned on loans, investments, or assets of the
01 fund. The corporation may establish separate accounts in the fund. 02 (b) Money and other assets of the Alaska energy independence fund may be 03 used to 04 (1) make loans for the purpose of financing sustainable energy 05 development in the state; 06 (2) secure bonds issued by the corporation to finance the loans 07 described in (1) of this subsection; 08 (3) provide capital, or leverage private capital, for the purpose of 09 financing sustainable energy development in the state in the form of 10 (A) loan guarantees on third-party financing; 11 (B) credit enhancements; 12 (C) equity capital; 13 (D) indirect funding to public, quasi-public, or nonprofit 14 entities that provide financial and technical assistance for sustainable energy 15 development at the regional, tribal, or local level, including community and 16 low-income lenders and capital providers; and 17 (E) other financial products or services approved by the 18 corporation in regulation; 19 (4) pay the costs of administering the fund; and 20 (5) pay the costs of administering and enforcing the terms of loans 21 made by the corporation from the fund. 22 (c) The corporation is the fiduciary of the Alaska energy independence fund 23 under AS 37.10.071 and may invest amounts in the fund in accordance with an 24 investment policy adopted by the corporation. To promote sustainable energy 25 development in the state, the investment policy adopted by the corporation may 26 deviate from the prudent investor rule set out in AS 13.36.230 - 13.36.290. 27 Notwithstanding AS 37.10.010 - 37.10.040, the corporation may disburse money from 28 the fund in accordance with AS 37.25.050. Notwithstanding AS 37.05.130 and 29 37.05.140, the corporation shall report a disbursement from the fund annually in 30 accordance with generally accepted accounting principles. An appropriation made to 31 the fund by the legislature shall be transferred to the corporation for deposit in the
01 fund. 02 (d) The corporation shall establish the interest rates, security provisions, and 03 other terms of a loan made under this section. The corporation shall take into 04 consideration the corporation's cost of funds and other factors the corporation 05 considers appropriate. 06 (e) In addition to other security that may be given with respect to a loan made 07 under this section, the corporation may require a deed of trust on a building that is the 08 subject of the sustainable energy development loan and the real estate on which the 09 building is located. 10 (f) The corporation may contract with the Alaska Energy Authority to provide 11 technical review, energy infrastructure expertise, or analysis of proposed sustainable 12 energy development loans. 13 (g) The corporation may use the Alaska energy independence fund to make a 14 loan guarantee that exceeds $20,000,000 only with legislative approval. 15 (h) In managing the fund, the corporation shall consider the state energy 16 policy described in AS 44.99.115 and shall prioritize sustainable energy development 17 that supports energy efficiency and renewable energy for residential buildings, 18 commercial buildings, and community facilities. 19 (i) The corporation shall administer the Alaska energy independence fund in 20 accordance with regulations adopted by the corporation. The corporation may adopt 21 regulations under AS 18.56.088 to carry out the purposes of this section. 22 (j) Nothing in this section creates a dedicated fund. 23 * Sec. 5. AS 18.56.900 is amended by adding a new paragraph to read: 24 (3) "sustainable energy development" means 25 (A) renewable energy generation from sources that are 26 continually replenished by nature, such as the sun, wind, water, or biological 27 processes; 28 (B) building energy efficiency, including switching to 29 renewable fuels and electrification; 30 (C) electrical infrastructure incorporating 31 (i) energy storage to support clean energy distribution,
01 including remote and non-remote microgrids and smart-grid 02 applications; or 03 (ii) sustainable technologies, including distributed 04 generation, advanced battery, and combined heat and power; 05 (D) clean transportation, including 06 (i) electric vehicles powered by batteries, hydrogen 07 vehicles, plug-in hybrid electric vehicles, and other zero-emissions 08 vehicles for consumers, businesses, government, and public transit; and 09 (ii) electric vehicle charging and fueling infrastructure; 10 or 11 (E) any greenhouse gas emissions reduction, energy efficiency, 12 or zero-emission technology approved by the corporation. 13 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).