HomeMy WebLinkAboutSLA2008_Chapter31_HB152 2008
Enrolled HB 152
LAWS OF ALASKA
2008
Source Chapter No.
SCS CSHB 152(FIN) am S _______
AN ACT
Establishing a renewable energy grant fund and describing its uses and purposes; establishing
a renewable energy grant recommendation program; for the fiscal year ending June 30, 2009,
authorizing the Alaska Energy Authority to distribute renewable energy grants and setting out
the procedures to be followed to award those grants; establishing a state heating assistance
program in addition to the federal heating assistance program; establishing an Alaska
Renewable Energy Task Force; and providing for an effective date.
_______________
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1
-1- Enrolled HB 152
AN ACT
Establishing a renewable energy grant fund and describing its uses and purposes; establishing 1
a renewable energy grant recommendation program; for the fiscal year ending June 30, 2009, 2
authorizing the Alaska Energy Authority to distribute renewable energy grants and setting out 3
the procedures to be followed to award those grants; establishing a state heating assistance 4
program in addition to the federal heating assistance program; establishing an Alaska 5
Renewable Energy Task Force; and providing for an effective date. 6
_______________ 7
* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 8
to read: 9
LEGISLATIVE FINDINGS AND INTENT. (a) For secs. 3 and 6 of this Act, the 10
legislature finds that 11
(1) an adequate, reliable, reasonably priced, and safe supply of energy is 12
Enrolled HB 152 -2-
necessary for Alaska's basic infrastructure and economic and technological development; 1
(2) Alaska possesses vast amounts of renewable energy resources in the form 2
of wind, solar, geothermal, hydrothermal, wave, tidal, biomass, river in-stream, and 3
hydropower; 4
(3) the legislature established the Alaska Energy Policy Task Force in 2003 to 5
review and analyze the state's current and long-term energy needs; 6
(4) the task force found that one of Alaska's long-term energy needs is to 7
identify and evaluate long-term fuel resources, and recommended that the state should 8
increase the proportion of renewables in long-term fuel sources; 9
(5) the cost of fuels such as natural gas and diesel that Alaskans rely on in 10
large part to generate electric power is steadily rising; 11
(6) residents of rural Alaska pay far more for electricity than residents who 12
live on the Railbelt energy grid; 13
(7) there is virtually no fuel cost associated with renewable energy resources; 14
(8) other states and nations are working successfully to develop their 15
renewable energy resources; 16
(9) the continued competitiveness and stability of the state's economy requires 17
that the legislature consider national trends toward renewable energy development; 18
(10) renewable energy technology development promotes industry and creates 19
jobs; 20
(11) clean renewable energy has many environmental and health benefits; 21
(12) locally produced renewable energy has many security benefits; 22
(13) modern, affordable, and efficient renewable energy technologies now 23
exist; 24
(14) it is in the interest of the public for Alaska to develop its renewable 25
energy resources; and 26
(15) natural gas can be considered as a last alternative for communities with 27
no other reasonable renewable resources. 28
(b) It is the intent of the legislature that each year for the next five years $50,000,000 29
in capital funds be appropriated to fund projects recommended by the Alaska Energy 30
Authority as described in secs. 3 and 6 of this Act. 31
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(c) For sec. 7 of this Act, the legislature finds that 1
(1) energy issues are among the most critical issues in the state; and 2
(2) a thorough assessment of present and future state energy needs and 3
requirements is necessary. 4
* Sec. 2. AS 36.30.850(b) is amended by adding a new paragraph to read: 5
(46) contracts for delivery of home heating assistance under 6
AS 47.25.626. 7
* Sec. 3. AS 42.45 is amended by adding a new section to read: 8
Sec. 42.45.045. Renewable energy grant fund and recommendation 9
program. (a) A renewable energy grant fund is established as a separate fund to 10
finance certain energy projects in Alaska. 11
(b) The authority shall administer the fund as a fund distinct from other funds 12
of the authority. The fund consists of 13
(1) money appropriated to the fund by the legislature to provide grants 14
for certain energy projects determined by the legislature; 15
(2) gifts, bequests, contributions from other sources, and federal 16
money; 17
(3) interest earned on the fund balance; and 18
(4) investments to be managed by the Department of Revenue, which 19
shall be the fiduciary of the fund under AS 37.10.071. 20
(c) The fund is not a dedicated fund. 21
(d) The authority shall, in consultation with the advisory committee 22
established under (i) of this section and the Department of Natural Resources, 23
(1) develop a methodology for determining the order of projects that 24
may receive assistance, including separate requirements for grant eligibility, and adopt 25
regulations identifying criteria to evaluate the benefit and feasibility of projects for 26
which an applicant applies for support from the legislature, with the most weight being 27
given to projects that serve any area in which the average cost of energy to each 28
resident of the area exceeds the average cost to each resident of other areas of the 29
state, and significant weight being given to a statewide balance of grant funds and to 30
the amount of matching funds an applicant is able to make available; 31
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(2) make recommendations to the legislature for renewable power 1
production reimbursement grants; and 2
(3) not later than 10 days after the first day of each regular legislative 3
session, submit to the legislature a report summarizing and reviewing each grant 4
application submitted under this section and a recommended priority for awarding 5
grants. 6
(e) In consultation with the advisory committee established in (i) of this 7
section, the authority shall make recommendations to the legislature regarding eligible 8
applicants' projects that finance feasibility studies, reconnaissance studies, energy 9
resource monitoring, and construction of renewable energy projects, natural gas 10
projects, or transmission or distribution infrastructure located in Alaska that meet the 11
requirements of (f), (g), or (h) of this section, as applicable, and shall, at least once 12
each year, solicit from the advisory committee funding recommendations for all 13
grants. 14
(f) For a renewable energy project to qualify for a grant recommendation 15
under (e) of this section, the project must 16
(1) be a new project not in operation on the effective date of this 17
section or an addition to an existing project made after the effective date of this 18
section; and 19
(2) be a 20
(A) hydroelectric facility; 21
(B) direct use of renewable energy resources; 22
(C) facility that generates electricity from fuel cells that use 23
hydrogen from renewable energy resources or natural gas; or 24
(D) facility that generates energy from renewable energy 25
resources. 26
(g) To qualify for a grant recommendation under (e) of this section, a project 27
that is a natural gas project must benefit a community that 28
(1) has a population of 10,000 or less; and 29
(2) does not have economically viable renewable energy resources it 30
can develop. 31
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(h) To qualify for a grant recommendation under (e) of this section, 1
transmission or distribution infrastructure must link a renewable energy project or 2
natural gas project to the transmission or distribution infrastructure. A grant may be 3
recommended under this subsection even if the grant applicant is not itself financing 4
the construction of the renewable energy project or natural gas project. 5
(i) An advisory committee is established and consists of seven members, 6
appointed as follows: 7
(1) five members shall be appointed by the governor to staggered 8
three-year terms, with one representative to be appointed from each of the following 9
groups: 10
(A) small Alaska rural electric utilities; 11
(B) large Alaska urban electric utilities; 12
(C) Alaska Native organizations; 13
(D) businesses or organizations engaged in the renewable 14
energy sector; and 15
(E) the Denali Commission established under P.L. 105-277, 42 16
U.S.C. 3121 note; 17
(2) one member of the house of representatives shall be appointed by 18
the speaker of the house of representatives; and 19
(3) one member of the senate shall be appointed by the president of the 20
senate. 21
(j) A member of the advisory committee appointed under (i) of this section 22
serves without compensation but is entitled to travel and per diem expenses as 23
provided in AS 39.20.180. 24
(k) The legislature may appropriate money for grants from the renewable 25
energy grant fund for renewable energy projects described in this section. 26
(l) In this section, 27
(1) "eligible applicant" means an electric utility holding a certificate of 28
public convenience and necessity under AS 42.05, independent power producer, local 29
government, or other governmental utility, including a tribal council and housing 30
authority; 31
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(2) "fund" means the renewable energy grant fund; 1
(3) "hydroelectric facility" has the meaning given to the term "project" 2
under AS 42.45.350; 3
(4) "natural gas project" means use or access of natural gas other than 4
landfill or digester gas; 5
(5) "renewable energy resources" means 6
(A) wind, solar, geothermal, wasteheat recovery, hydrothermal, 7
wave, tidal, river in-stream, or hydropower; 8
(B) low-emission nontoxic biomass based on solid or liquid 9
organic fuels from wood, forest and field residues, or animal or fish products; 10
(C) dedicated energy crops available on a renewable basis; or 11
(D) landfill gas and digester gas. 12
* Sec. 4. AS 47.25 is amended by adding new sections to read: 13
Article 3A. Alaska Heating Assistance Program. 14
Sec. 47.25.621. Alaska heating assistance program. (a) The Alaska heating 15
assistance program is established in the Department of Health and Social Services to 16
provide expanded eligibility for Alaska residents for home heating assistance, to the 17
extent funds are appropriated by the legislature for that purpose. 18
(b) The heating assistance program established under this section is in addition 19
to the federal low-income heating and energy assistance provided under 42 U.S.C. 20
8621 - 8629 (Low-Income Home Energy Assistance Act of 1981), as amended, and 21
implementing regulations. 22
Sec. 47.25.622. Duties. The department shall 23
(1) administer the Alaska heating assistance program provided under 24
AS 47.25.621; 25
(2) adopt regulations under AS 44.62 (Administrative Procedure Act) 26
to carry out the purpose of the program; 27
(3) coordinate payments among other heating assistance programs to 28
avoid duplication of payments. 29
Sec. 47.25.623. Eligibility. An individual is eligible for home heating 30
assistance payments under the Alaska home heating assistance program if the 31
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individual 1
(1) is a resident of the state; 2
(2) is physically present and resides in a home in the state when the 3
home heating costs are incurred; 4
(3) has gross household income above 150 percent but that does not 5
exceed 225 percent of the federal poverty guideline for Alaska set by the United States 6
Department of Health and Human Services and revised under 42 U.S.C. 9902(2); 7
(4) meets other eligibility requirements specified in regulations 8
adopted under AS 47.25.622. 9
Sec. 47.25.624. Appeal rights. Except as provided in AS 47.25.626(e), an 10
individual who receives a determination from the department that denies, limits, or 11
modifies home heating payments under AS 47.25.621 - 47.25.626, other than a 12
determination based on insufficient funding of the program, may request a hearing 13
before the department under regulations adopted by the department. 14
Sec. 47.25.625. Ability to recover or recoup improper home heating 15
assistance payments. An individual is liable to the department for the value of 16
assistance improperly paid under AS 47.25.623 if the improper payment was based on 17
inaccurate or incomplete information provided by the individual. In a civil action 18
brought by the state to recover from the individual the value of the assistance 19
improperly paid, the state may recover from the individual the costs of investigation 20
and prosecution of the civil action, including attorney fees as determined under court 21
rules. 22
Sec. 47.25.626. Regional heating assistance program. (a) The department 23
may develop a regional Alaska heating assistance program for the administration of 24
AS 47.25.621 - 47.25.626 to provide home heating assistance in a uniform and cost-25
effective manner in a region of this state if an Alaska Native organization is authorized 26
to implement a federally approved tribal family assistance plan that includes that 27
region and has been awarded a tribal energy assistance grant for a program that 28
includes that region under 42 U.S.C. 8623(d). 29
(b) The department may award contracts to implement a program developed 30
under (a) of this section. A contract authorized for delivery of home heating assistance 31
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under a regional Alaska heating assistance program under this section is exempt from 1
the competitive bid requirements of AS 36.30 (State Procurement Code). Subject to 2
appropriation, a contract under this section must be in an amount that represents a fair 3
and equitable share of the money appropriated for the Alaska heating assistance 4
program under AS 47.25.621 - 47.25.626 to serve the state residents specified in (a) of 5
this section. The authority provided under this section to contract is in addition to the 6
authority to contract in AS 47.05.015 or other law. 7
(c) The department may award a contract under this section only to an 8
organization that 9
(1) has been awarded a tribal energy assistance grant under 42 U.S.C. 10
8623(d) for a program that includes that region; 11
(2) agrees to administer home heating assistance under AS 47.25.621 - 12
47.25.626 to state residents in the region; and 13
(3) agrees to implement an appeals process as described in (e) of this 14
section. 15
(d) Records pertaining to recipients of home heating assistance under a 16
contract awarded under this section are confidential and not subject to disclosure 17
under AS 40.25.100 - 40.25.220. 18
(e) An organization that receives a contract under this section shall provide an 19
appeals process to applicants for or recipients of home heating assistance covered by 20
the contract awarded under this section. The appeals process must be the same as the 21
method available under AS 47.25.624, except that the decision reached shall be 22
considered a recommended decision to the department. Within 30 days after receiving 23
a recommended decision, the department shall review the recommended decision and 24
issue a decision accepting or rejecting the recommended decision. If the department 25
rejects the recommended decision, the department shall independently review the 26
record and issue its final decision. The final decision of the department on the matter 27
is appealable to the courts of this state. 28
(f) If the department establishes a regional Alaska heating assistance program 29
and awards a contract to provide home heating assistance under this section, a person 30
applying for home heating assistance under AS 47.25.621 - 47.25.626 in the region of 31
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the state covered by the regional Alaska heating assistance program may obtain home 1
heating assistance from the department only through the organization designated by 2
the department to serve the region. 3
* Sec. 5. AS 42.45.045 is repealed June 30, 2013. 4
* Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 5
read: 6
RENEWABLE ENERGY GRANTS DURING STATE FISCAL YEAR 2009. (a) For 7
the fiscal year ending June 30, 2009, from an appropriation made under the statement of intent 8
set out in sec. 1(b) of this Act, the Alaska Energy Authority shall distribute grants to 9
applicants determined by the authority and that meet the criteria in AS 42.45.045(f) - (h), 10
added by sec. 3 of this Act, based on the procedure described in (b) of this section. 11
(b) For administering grants under AS 42.45.045(f) - (h), added by sec. 3 of this Act, 12
for the fiscal year ending June 30, 2009, notwithstanding AS 42.45.045(d), (e), and (i) - (l), 13
added by sec. 3 of this Act, 14
(1) the Alaska Energy Authority shall submit to the Legislative Budget and 15
Audit Committee for review a revised program setting out the proposed grants; 16
(2) 45 days shall elapse before commencement of expenditures under the 17
revised program unless the Legislative Budget and Audit Committee earlier recommends 18
otherwise; 19
(3) should the Legislative Budget and Audit Committee recommend within the 20
45-day period that the Alaska Energy Authority not award the grants as set out in the revised 21
program, the Alaska Energy Authority shall again review the grant applications and, if the 22
Alaska Energy Authority determines to authorize the expenditures, the Alaska Energy 23
Authority shall provide the Legislative Budget and Audit Committee with a statement of the 24
Alaska Energy Authority's reasons before commencement of expenditures making the 25
approved grants. 26
* Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 27
read: 28
ALASKA RENEWABLE ENERGY TASK FORCE. (a) There is established in the 29
legislative branch of state government the Alaska Renewable Energy Task Force. The task 30
force consists of seven voting members appointed as follows: 31
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(1) the speaker of the house of representatives shall appoint three members 1
from the house of representatives; 2
(2) the president of the senate shall appoint three members from the senate; 3
and 4
(3) the governor shall appoint one member. 5
(b) The chair of the task force shall be a legislative member selected by a majority 6
vote of the members of the task force. The staff of the members who are legislators shall serve 7
as staff to the task force. 8
(c) The task force shall prepare a report that includes 9
(1) an assessment of future statewide renewable energy needs; and 10
(2) recommendations for a statewide energy plan to fulfill the state's 11
renewable energy needs. 12
(d) Members of the task force are entitled to transportation expenses and per diem 13
allowances provided by law. 14
(e) The task force shall meet at least four times. The task force may meet in 15
communities in the state that are using or considering sources of renewable energy. 16
(f) The task force shall submit written reports of its findings and recommendations to 17
the legislature 18
(1) before March 1, 2009; and 19
(2) before March 1, 2010. 20
(g) The Alaska Renewable Energy Task Force is terminated on April 16, 2010. 21
* Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 22
read: 23
TRANSITION: RENEWABLE ENERGY PROJECT ADVISORY COMMITTEE. 24
For the initial appointments made to the advisory committee under AS 42.45.045(i)(1), added 25
by sec. 3 of this Act, two members serve for one year, two for two years, and three for three 26
years. 27
* Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 28
read: 29
TRANSITION: RETROACTIVITY OF REGULATIONS. Notwithstanding a contrary 30
provision of AS 44.62.240, if the Department of Health and Social Services expressly 31
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designates in a regulation adopted under AS 47.25.622(2), enacted by sec. 4 of this Act, that 1
the regulation applies retroactively to November 1, 2007, and is necessary to implement, 2
interpret, make specific, or otherwise carry out AS 47.25.621 and 47.25.623, enacted by sec. 4 3
of this Act, the regulation may apply retroactively to November 1, 2007. 4
* Sec. 10. Sections 1(c) and 7 of this Act are repealed April 16, 2010. 5
* Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 6
read: 7
RETROACTIVITY OF CERTAIN PROVISIONS OF THIS ACT. AS 47.25.621 and 8
47.25.623, enacted by sec. 4 of this Act, are retroactive to November 1, 2007. 9
* Sec. 12. Sections 2, 4, 9, and 11 of this Act takes effect immediately under 10
AS 01.10.070(c). 11