Alaska 33rd Legislature (2023-2024) Status: In Committee

SB 217 — An Act relating to the taxation of independent power producers; and increasing the efficiency of integrated transmission system charges and use for the benefit of ratepayers.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 33rd Legislature (2023-2024). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

76 added · 477 removed

Plain-language change summary

The updated version of Senate Bill 217 focuses on making changes to the way independent power producers are taxed and how electricity transmission systems are charged. The most significant change is the removal of provisions that previously regulated public utilities and required the approval of various energy agreements. This simplification is aimed at lowering transmission costs and improving efficiency, which could ultimately benefit consumers by lowering their electricity bills.

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33-GS2489\U CS FOR SENATE BILL NO.
33-GS2489\A SENATE BILL NO.
217(RES) IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - SECOND SESSION BY THE SENATE RESOURCES COMMITTEE Referred:
217 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - SECOND SESSION BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR Introduced:
Finance Sponsor(s):
2/2/24 Referred:
SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR A BILL FOR AN ACT ENTITLED "An Act relating to the Regulatory Commission of Alaska;
Resources, Labor and Commerce, Finance A BILL FOR AN ACT ENTITLED "An Act relating to the taxation of independent power producers;
relating to regulation of public utilities and pipeline carriers;
and increasing the efficiency of integrated transmission system charges and use for the benefit of ratepayers." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
relating to net metering;
relating to approval of wholesale power agreements;
relating to preapproval for construction of energy facilities;
relating to electric reliability organizations;
relating to the taxation of independent power producers;
relating to the Alaska Energy Authority;
relating to the Railbelt Transmission Organization;
and providing for an effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
AS 42.04.020(a) is amended to read:
The uncodified law of the State of Alaska is amended by adding a new section to read:
(a) The commission consists of five commissioners appointed by the governor and confirmed by the legislature in joint session.
PURPOSE.
To qualify for appointment as a commissioner, a person must (1) be a member in good standing of the Alaska Bar Association with at least five years of actual experience in the practice of law;
The purpose of this Act is to eliminate the charging of inefficient transmission rates for integrated transmission systems that are also subject to the integrated resource planning process of an electric reliability organization.
SB0217B -1- CSSB 217(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U (2) be a professional engineer registered under AS 08.48;
* Sec.
or (3) have a degree from an accredited college or university with a major in [ENGINEERING,] finance, economics, accounting, business administration, or public administration and at least five years of actual experience in the field associated with the degree.
[ACTUAL EXPERIENCE FOR A PERIOD OF FIVE YEARS IN THE PRACTICE OF LAW OR IN THE FIELD OF ENGINEERING, FINANCE, ECONOMICS, ACCOUNTING, BUSINESS ADMINISTRATION, OR PUBLIC ADMINISTRATION IS EQUIVALENT TO A DEGREE.] * Sec.
AS 42.04.020(f) is amended to read:
AS 10.25.540(b) is amended to read:
(f) Members of the commission are in the exempt service and are entitled to a monthly salary equal to a step in Range 29 [RANGE 27] of the salary schedule in AS 39.27.011(a) for Juneau, Alaska.
(b) Before March 1 of each year, (1) each telephone cooperative shall pay to the state, instead of state and local ad valorem, income, and excise taxes that may be assessed or levied, a percentage of its gross revenue earned during the preceding calendar year;
The chair of the commission is entitled to a monthly salary equal to a step in Range 29 [RANGE 27] of the salary schedule in AS 39.27.011(a) for Juneau, Alaska.
SB0217A -1- SB 217 New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\A (2) each electric cooperative and independent power producer shall pay to the state, instead of state and local ad valorem, income, and excise taxes that may be assessed or levied, a tax on the number of kilowatt hours of electricity sold at retail by the cooperative or independent power producer during the preceding calendar year;
for the purposes of this paragraph, "independent power producer" means a utility that only sells wholesale power to cooperative or municipal utilities.
AS 42.05.254(a) is amended to read:
AS 42.05 is amended by adding new sections to read:
(a) A regulated public utility or a certificated utility that provides telecommunications services operating in the state shall pay to the commission an annual regulatory cost charge in an amount not to exceed the maximum percentage of adjusted gross revenue that applies to the utility sector of which the utility is a part.
Article 11A.
The regulatory cost charges that the commission expects to collect from all regulated utilities and certificated utilities providing telecommunications services may not exceed the sum of the following percentages of the total adjusted gross revenue of all regulated public utilities and certificated utilities providing telecommunications services derived from operations in the state:
Integrated Transmission System Cost Recovery.
(1) not more than .98 [.7] percent to fund the operations of the commission, and (2) not more than .22 [.17] percent to fund operations of the public advocacy function under AS 42.04.070(c) and AS 44.23.020(e) within the Department of Law.
An exempt utility that does not provide telecommunications services shall pay the actual cost of services provided to it by the commission.
* Sec.
4.
AS 42.05.381 is amended by adding a new subsection to read:
(p) A determination of whether an electric utility's rate is just and reasonable CSSB 217(RES) -2- SB0217B New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U may consider whether the purpose of the rate is to increase diversity of supply, promote load growth, or enhance energy reliability or energy security.
* Sec.
5.
AS 42.05 is amended by adding a new section to read:
42.05.395.
42.05.900.
Net metering.
Findings.
(a) A load-serving entity shall monthly credit in a tariff the account of a retail customer for the number of kilowatt-hours, at the full retail rate per kilowatt-hour, of electric energy supplied by the customer's distributed energy system to the load-serving entity.
The legislature finds that, for an integrated transmission system that is subject to the integrated resources planning process of an electric reliability organization, (1) the elimination of per-unit wholesale transmission charges will increase the efficiency by which electricity service is provided;
The tariff may not limit the aggregate capacity that customers may install unless the commission, after a hearing, finds that capacity limitation is necessary to protect system reliability.
(2) the elimination of multiple pancaked rates is essential to the people of the state;
(b) For up to seven years after a customer's distributed energy system is connected to the load-serving entity and generates power, a credit under (a) of this section that exceeds the customer's monthly bill for service will roll over to the following month and continue to roll over until used.
and (3) the actual, reasonable costs to own and operate an integrated transmission system should be fairly recovered from the load-serving entities connected to the integrated transmission system.
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Unused credits expire on March 31 of each year.
(c) The credits under (b) of this section are not available for a distributed energy system installed before July 1, 2024.
(d) In this section, (1) "distributed energy system" means a renewable energy resource that is located on any property owned or leased by a customer within the service territory of the load-serving entity that is interconnected on the customer's side of the utility meter;
(2) "load-serving entity" has the meaning given in AS 42.05.790.
* Sec.
6.
AS 42.05.431(b) is amended to read:
(b) A wholesale power agreement between public utilities, or between a public utility and an independent power producer, is subject to advance approval of the commission.
A rate set in accordance with a wholesale power agreement must reflect a tax exemption or government subsidy provided to a utility or independent power producer.
After a wholesale power agreement is in effect, the commission may not invalidate any purchase or sale obligation under the agreement.
However, if the commission finds that rates set in accordance with the agreement violate this subsection or are not just and reasonable, the commission may order the SB0217B -3- CSSB 217(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U parties to negotiate an amendment to the agreement and if the parties fail to agree, to use the dispute resolution procedures contained in the contract.
In this subsection, "independent power producer" means a person, other than a public utility, that owns or operates a facility for the generation of electricity.
* Sec.
7.
AS 42.05 is amended by adding a new section to read:
42.05.705.
42.05.905.
Preapproval for construction of energy facility.
Integrated transmission system cost recovery.
The commission may not require preapproval under this chapter for construction of an energy facility that is (1) an electric power generating plant or combination of plants at a single site with a combined capacity of less than 15,000 kilowatts;
(a) The commission shall establish a transmission cost recovery mechanism to ensure that the actual, reasonable costs of owning and operating an integrated transmission system are recovered to achieve the findings stated in AS 42.05.900.
or (2) an energy storage device or combination of devices at a single site with a combined capacity of less than 15,000 kilowatts.
The transmission cost recovery mechanism must take into account each load-serving entity's load in comparison to the total load on the integrated transmission system.
* Sec.
(b) The commission shall develop a process to gradually transition the collection of transmission costs recovered through a load-serving entity's base rates and wheeling charges to tariffs that reflect the transmission cost recovery mechanism.
8.
AS 42.05.762 is amended to read:
42.05.762.
42.05.910.
Duties of an electric reliability organization.
Integrated transmission system association.
An electric reliability organization shall (1) develop reliability standards that provide for an adequate level of reliability of an interconnected electric energy transmission network;
(a) The commission shall require all utilities that own or operate a portion of an integrated transmission system and are subject to an electric reliability organization to form an SB 217 -2- SB0217A New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\A integrated transmission system association to assist in administering the system of transmission cost recovery.
(2) develop integrated resource plans under AS 42.05.780(a);
The commission shall require the association to file tariffs to achieve the purposes of AS 42.05.900 - 42.05.915.
(3) establish rules to (A) ensure that the directors of the electric reliability organization and the electric reliability organization act independently from users, owners, and operators of the interconnected electric energy transmission network;
(b) The integrated transmission system association may not own assets of the integrated transmission system.
(B) equitably allocate reasonable dues, fees, and other charges among all load-serving entities connected to the interconnected electric energy transmission network for all activities under AS 42.05.760 - 42.05.790;
(c) Notwithstanding (b) of this section, the integrated transmission system association is a public utility.
(C) provide fair and impartial procedures for the enforcement of reliability standards;
(D) provide for reasonable notice and opportunity for public comment, due process, openness, and balancing of interests in exercising its duties;
[AND] CSSB 217(RES) -4- SB0217B New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U (4) be governed by a board that (A) includes as nonvoting members the chair of the commission or the chair's designee and the attorney general or the attorney general's designee;
and (B) is formed as (i) an independent board;
(ii) a balanced stakeholder board;
or (iii) a combination independent and balanced stakeholder board;
and (5) prioritize the reliability and stability of the interconnected bulk-electric system served by the electric reliability organization while considering cost to the consumer.
* Sec.
9.
AS 42.05.770 is amended to read:
42.05.770.
42.05.915.
Regulations.
The commission shall adopt regulations governing electric reliability organizations, reliability standards, and modifications to reliability standards consistent with this section.
Regulations under AS 42.05.760 - 42.05.790 must (1) require that an electric reliability organization's tariff include [(A) STANDARDS FOR] nondiscriminatory standards for [OPEN ACCESS TRANSMISSION AND] interconnection;
[(B) STANDARDS FOR TRANSMISSION SYSTEM COST RECOVERY;] (2) provide a process to ideny and resolve conflicts between a reliability standard and a function, rule, tariff, rate schedule, or agreement that has been accepted, approved, adopted, or ordered by the commission;
(3) allow an electric reliability organization to recover its costs through surcharges added to the rate for each participating load-serving entity.
* Sec.
10.
AS 42.05.772 is amended by adding a new subsection to read:
(b) A load-serving entity, including a load-serving entity otherwise exempt from regulation under this chapter, in an interconnected bulk-electric system served by an electric reliability organization shall adhere to the electric reliability organization's SB0217B -5- CSSB 217(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U reliability standards and coordinate with the electric reliability organization and, if applicable, the Railbelt Transmission Organization to integrate the electric reliability organization's reliability standards into operational procedures.
* Sec.
11.
AS 42.05.790 is amended by adding new paragraphs to read:
(8) "Railbelt" has the meaning given in AS 44.83.750;
(9) "Railbelt Transmission Organization" means the transmission organization established by AS 44.83.700.
* Sec.
12.
AS 42.06.286(a) is amended to read:
(a) A pipeline carrier operating in the state shall pay to the commission an annual regulatory cost charge in an amount not to exceed the sum of the following percentages of gross revenue derived from operations in the state:
(1) not more than .98 [.7] percent to fund the operations of the commission, and (2) not more than .22 [.17] percent to fund operations of the public advocacy function under AS 42.04.070(c) and AS 44.23.020(e) within the Department of Law.
A regulatory cost charge may not be assessed on pipeline carrier operations unless the operations are within the jurisdiction of the commission.
* Sec.
13.
AS 43.98 is amended by adding a new section to read:
Article 2A.
Taxation of Independent Power Producers.
Sec.
43.98.100.
Taxation of independent power producers.
(a) An independent power producer is not subject to state and local ad valorem, income, and excise taxes if the independent power producer only sells (1) wholesale power;
and (2) to cooperative or municipal utilities.
(b) In this section, (1) "independent power producer" means a person, other than a public utility, that owns or operates a facility for the generation of electricity;
(2) "public utility" and "utility" have the meaning given in AS 42.05.990.
* Sec.
14.
AS 44.83.030 is amended to read:
Sec.
44.83.030.
Membership of the authority.
The members of the board of directors of the authority [ALASKA ENERGY AUTHORITY] are CSSB 217(RES) -6- SB0217B New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U (1) the commissioner of revenue;
(2) the commissioner of commerce, community, and economic development;
and (3) six public members appointed by the governor as follows:
(A) one member with expertise or experience in managing or operating an electric utility that is not connected to an interconnected electric energy transmission network as defined in AS 42.05.790;
(B) one member with expertise or experience in developing energy projects in rural communities;
(C) one member with expertise or experience in managing or operating an electric utility connected to an interconnected electric energy transmission network as defined in AS 42.05.790;
(D) one member with financial expertise in large power generation project development;
and (E) two members with expertise or experience in finance, energy policy, energy technology, engineering, law, or economics [THE MEMBERS OF THE ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY].
* Sec.
15.
AS 44.83.030 is amended by adding new subsections to read:
(b) If the commissioner described in (a)(1) or (a)(2) of this section is unable to attend a meeting of the authority, the commissioner may, by an instrument in writing filed with the authority, designate a deputy or director to act in the commissioner's place as a member of the board at the meeting.
For all purposes of this chapter, the designee is a member of the board at the meeting.
(c) Public board members described in (a)(3) of this section serve for three- year terms.
(d) If a vacancy occurs in the membership of the board, the governor shall immediately appoint a member for the unexpired portion of the term.
* Sec.
16.
AS 44.83.040(a) is amended to read:
(a) The board of directors of the authority shall elect a chair and vice-chair every two years from among its members [OF THE ALASKA INDUSTRIAL SB0217B -7- CSSB 217(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U DEVELOPMENT AND EXPORT AUTHORITY SHALL SERVE AS OFFICERS OF THE ALASKA ENERGY AUTHORITY].
The powers of the authority [ALASKA ENERGY AUTHORITY] are vested in the board of directors, and five board members [FOUR DIRECTORS OF THE AUTHORITY] constitute a quorum.
Action may be taken and motions and resolutions adopted by the authority [ALASKA ENERGY AUTHORITY] at a meeting by the affirmative vote of at least five board members [A MAJORITY OF THE DIRECTORS].
The members of the board of directors of the authority [ALASKA ENERGY AUTHORITY] serve without compensation, but they shall receive the same travel pay and per diem as provided by law for board members under AS 39.20.180.
* Sec.
17.
AS 44.83.080 is amended to read:
Sec.
44.83.080.
Powers of the authority.
In furtherance of its corporate purposes, the authority has the following powers in addition to its other powers:
(1) to sue and be sued;
(2) to have a seal and alter it at pleasure;
(3) to make and alter bylaws for its organization and internal management;
(4) to adopt regulations governing the exercise of its corporate powers;
(5) to improve, equip, operate, and maintain power projects and bulk fuel, waste energy, energy conservation, energy efficiency, and alternative energy facilities and equipment;
(6) to issue bonds to carry out any of its corporate purposes and powers, including the establishment or increase of reserves to secure or to pay the bonds or interest on them, and the payment of all other costs or expenses of the authority incident to and necessary or convenient to carry out its corporate purposes and powers;
(7) to sell, lease as lessor or lessee, exchange, donate, convey, or encumber in any manner by mortgage or by creation of any other security interest, real or personal property owned by it, or in which it has an interest, when, in the judgment of the authority, the action is in furtherance of its corporate purposes;
(8) to accept gifts, grants, or loans from, and enter into contracts or CSSB 217(RES) -8- SB0217B New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U other transactions regarding them, with any person;
(9) to deposit or invest its funds, subject to agreements with bondholders;
(10) to enter into contracts with the United States or any person and, subject to the laws of the United States and subject to concurrence of the legislature, with a foreign country or its agencies, for the construction, financing, operation, and maintenance of all or any part of a power project or bulk fuel, waste energy, energy conservation, energy efficiency, or alternative energy facilities or equipment, either inside or outside the state, and for the sale or transmission of power from a project or any right to the capacity of it or for the security of any bonds of the authority issued or to be issued for the project;
(11) to enter into contracts with any person and with the United States and, subject to the laws of the United States and subject to the concurrence of the legislature, with a foreign country or its agencies for the purchase, sale, exchange, transmission, or use of power from a project, or any right to the capacity of it;
(12) to apply to the appropriate agencies of the state, the United States, and a foreign country and any other proper agency for the permits, licenses, or approvals as may be necessary, to acquire, construct, maintain, and operate power projects in accordance with the licenses or permits, and to obtain, hold, and use the licenses and permits in the same manner as any other person or operating unit;
(13) to enter into contracts or agreements with respect to the exercise of any of its powers, and do all things necessary or convenient to carry out its corporate purposes and exercise the powers granted in this chapter;
(14) to recommend to the legislature (A) the pledge of the credit of the state to guarantee repayment of all or any portion of revenue bonds issued to assist in construction of power projects;
(B) an appropriation from the general fund (i) for debt service on bonds or other project purposes;
or (ii) to reduce the amount of debt financing for the SB0217B -9- CSSB 217(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U project;
(15) to carry out the powers and duties assigned to it under AS 42.45 and AS 44.83.700 - 44.83.750;
(16) to make grants or loans to any person and enter into contracts or other transactions regarding the grants or loans;
(17) to promote energy conservation, energy efficiency, and alternative energy through training and public education;
(18) to acquire a Susitna River power project, whether by construction, purchase, gift, or lease, including the acquisition of property rights and interests by eminent domain under AS 09;
(19) to perform feasibility studies and engineering and design with respect to power projects;
(20) to acquire energy storage systems, whether by direct ownership, purchase, grant, gift, or lease.
* Sec.
18.
AS 44.83 is amended by adding new sections to read:
Article 5A.
Railbelt Transmission Organization.
Sec.
44.83.700.
Railbelt Transmission Organization.
(a) The Railbelt Transmission Organization is established for the purpose of overseeing, managing, and developing the backbone transmission system serving the Railbelt and conducting strategic planning to enhance the future transfer capabilities, resilience, reliability, and efficiency of the backbone transmission system.
For administrative purposes, the transmission organization is in the Alaska Energy Authority.
(b) The governance structure for the transmission organization must (1) provide for oversight of the transmission organization by a management committee that is made up of (A) representatives from each of the Railbelt utilities;
(B) the executive director of the authority;
(C) the chief executive officer of the applicable electric reliability organization, or the chief executive officer's designee;
(D) an individual, appointed by the governor, who represents a person, other than a public utility, that owns or operates a facility for the CSSB 217(RES) -10- SB0217B New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U generation of electricity;
and (E) an individual, appointed by the governor, who represents a labor organization engaged in collective bargaining with a Railbelt utility;
(2) include a conflict resolution process;
and (3) facilitate substantial public participation in the operations of the transmission organization.
(c) The provisions of AS 44.83.700 - 44.83.750 do not limit, extend, or otherwise alter the rights and obligations as provided in AS 42.05.221 - 42.05.281 of a public utility that is certificated under AS 42.05.221.
Sec.
44.83.710.
Powers and duties.
(a) The transmission organization shall (1) manage backbone transmission assets;
(2) follow reliability standards developed by the applicable electric reliability organization;
(3) ensure the safe, resilient, reliable, efficient, and economical operation and development of the backbone transmission system;
(4) preserve nondiscriminatory open access to the backbone transmission system subject to legitimate technical constraints and congestion;
(5) maintain the capacity rights of legacy transmission owners to access firm load and legacy generation resources served by the backbone transmission system;
(6) perform integrated transmission planning under AS 44.83.730;
(7) purchase, lease, or otherwise acquire effective operational control of backbone transmission assets;
(8) subject to the approval of the commission, establish tariffs related to the backbone transmission system under AS 44.83.720.
(b) The transmission organization may (1) construct, own, and operate new backbone transmission assets;
and (2) enter into contracts, agreements, and partnerships that enhance safety, resiliency, reliability, and efficiency of the backbone transmission system.
(c) The transmission organization may not exchange, donate, sell, or otherwise convey a backbone transmission asset owned by the transmission organization without SB0217B -11- CSSB 217(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U approval of the legislature in advance of the effective date of the conveyance.
(d) The transmission organization shall ensure that work performed on new construction and maintenance of backbone transmission assets controlled by the transmission organization is prioritized to give first preference to the Railbelt utility that serves the area in which the work is performed.
The transmission organization shall compensate the utility for reasonable and necessary expenses the utility incurs in performing the work.
The work must be performed subject to the terms and conditions of any existing collective bargaining agreements.
(e) The transmission organization may adopt regulations necessary to implement AS 44.83.710 - 44.83.750.
Sec.
44.83.720.
Revenue mechanism.
(a) The transmission organization shall hold and administer a commission-approved open access transmission tariff that ensures nondiscriminatory access to the backbone transmission system.
(b) The transmission organization shall adopt a commission-approved transmission cost recovery methodology that ensures the reliability and sufficient capacity of the backbone transmission system to support and promote state and regional energy policies and a rigorous, dynamic economy.
(c) The cost recovery methodology for the transmission organization must, as approved by the commission, (1) pool backbone transmission system costs and allocate those costs through certificated load-serving entities on a coincident peak or load ratio share basis, or a combination of both;
and (2) account for (A) required backbone transmission system ancillary services;
(B) backbone transmission system congestion;
and (C) disruptions to the backbone transmission system that result in the isolation of one geographical area of the backbone transmission system from another for more than 24 hours.
(d) A Railbelt utility shall pass the commission-approved transmission costs directly and transparently to the utility's customers.
(e) Notwithstanding AS 44.83.090(b), the transmission organization is subject CSSB 217(RES) -12- SB0217B New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U to the jurisdiction of the commission for the purpose of this section.
The commission shall adopt regulations under AS 44.62 (Administrative Procedure Act) necessary to implement this section.
Sec.
44.83.730.
Integrated transmission planning.
(a) At least once every 10 years, the transmission organization shall, in consultation with stakeholders, create and review an integrated transmission plan for the backbone transmission system.
(b) The integrated transmission plan must set clear goals and articulate the strategic trajectory, operational blueprint, capital improvement funding requirements, and developmental outlook for the backbone transmission system, considering regulatory and legal frameworks, projected load growth, technological advancement, fuel supply projections, generation plans, safety, resiliency, reliability, efficiency, and economic impacts.
The integrated transmission plan must analyze performance on and alignment with prior integrated transmission plans.
(c) The transmission organization shall seek feedback and input from the public throughout the integrated transmission plan development process to ensure that the plan reflects a broad range of perspectives and addresses community and industry concerns.
When the integrated transmission plan is complete, the transmission organization shall publish the plan on the Alaska Energy Authority's Internet website.
Sec.
44.83.740.
Transfer management of assets.
(a) To achieve the integrated and streamlined governance of the backbone transmission system, the commission shall, on or before July 1, 2025, determine which assets are backbone transmission assets, and the Railbelt utilities shall transfer management of those assets to the transmission organization on or before July 1, 2026.
(b) The transmission organization shall manage the backbone transmission assets identified under (a) of this section that are owned or managed by the authority.
(c) A Railbelt utility shall pay penalties as determined by the commission for failure to transfer management of backbone transmission assets to the transmission organization as required under this section.
The commission shall adopt regulations under AS 44.62 (Administrative Procedure Act) necessary to implement this subsection, including defining by regulation the term "backbone transmission asset." Sec.
44.83.750.
In AS 44.83.700 - 44.83.750, SB0217B -13- CSSB 217(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U (1) "backbone transmission system" means the backbone transmission assets in the Railbelt that facilitate the transfer of large-scale electrical power between or across separate geographical areas;
In AS 42.05.900 - 42.05.915, (1) "electric reliability organization" has the meaning given in AS 42.05.790;
"backbone transmission system" does not include assets that would be considered distribution facilities or radial facilities under the standards established by the Federal Energy Regulatory Commission;
(2) "integrated transmission system" means the non-generation assets of an interconnected electric energy transmission network;
(2) "commission" means the Regulatory Commission of Alaska;
a radial transmission line constructed after the effective date of AS 42.05.900 - 42.05.915 for the purpose of connecting a single generation asset to the interconnected electric energy transmission network to effectuate contractual sales of energy to load serving entities is part of the integrated transmission system only if the commission determines that the line is economically necessary to enable the establishment of multiple new generation assets;
(3) "Railbelt" means the geographic region from the Kenai Peninsula to Interior Alaska that is connected to a common electric transmission backbone;
(3) "load-serving entity" has the meaning given in AS 42.05.790;
(4) "Railbelt utility" means a public electric utility certificated to operate in the Railbelt;
(4) "transmission costs" include the costs to own and operate the integrated transmission system, as established by the commission or by contract, including costs associated with the Bradley Lake hydroelectric project.
(5) "transmission organization" means the Railbelt Transmission Organization established by AS 44.83.700.
SB0217A -3- SB 217 New Text Underlined [DELETED TEXT BRACKETED]
* Sec.
19.
The uncodified law of the State of Alaska is amended by adding a new section to read:
TRANSITION:
AGREEMENT BETWEEN ALASKA ENERGY AUTHORITY AND RAILBELT UTILITIES.
To ensure the successful implementation of AS 44.83.700 - 44.83.750, added by sec.
18 of this Act, on or before July 1, 2025, the Alaska Energy Authority and the Railbelt utilities, as defined in AS 44.83.750, added by sec.
18 of this Act, shall develop an agreement to implement AS 44.83.700 - 44.83.750, added by sec.
18 of this Act.
The agreement must establish (1) a governance structure for the Railbelt Transmission Organization established under AS 44.83.700, added by sec.
18 of this Act, that is modeled after the governance structure of the Bradley Lake Hydroelectric Project, as outlined in the Bradley Lake Power Sales Agreement, including the creation, duties, and methods of the Bradley Lake Project Management Committee, dispute resolution, budgeting, financing, and delegation of operations, with any adjustments the parties to the agreement determine are necessary to accommodate the requirements of AS 44.83.700 - 44.83.750, added by sec.
18 of this Act;
and (2) a backbone transmission system revenue mechanism under AS 44.83.720, added by sec.
18 of this Act, that is modeled after the provisions governing transmission cost allocation and recovery in 16 Texas Administrative Code 25.192, as it reads on the effective date of this section, with modifications as necessary.
CSSB 217(RES) -14- SB0217B New Text Underlined [DELETED TEXT BRACKETED] 33-GS2489\U * Sec.
20.
The uncodified law of the State of Alaska is amended by adding a new section to read:
TRANSITION:
INITIAL INTEGRATED TRANSMISSION PLAN AND CAPITAL IMPROVEMENT PROGRAM.
The Alaska Energy Authority shall immediately assume the integrated transmission planning duties under AS 44.83.730, added by sec.
18 of this Act, develop an initial integrated transmission plan as soon as practicable, and begin execution of a five-year transmission capital improvement program based on the plan as soon as practicable.
The authority shall transfer the responsibility for the plan and program to the Railbelt Transmission Organization established under AS 44.83.700, added by sec.
18 of this Act, after the agreement establishing the governance structure of the organization under sec.
19 of this Act has been executed.
* Sec.
21.
The uncodified law of the State of Alaska is amended by adding a new section to read:
TRANSITION:
REGULATORY COMMISSION OF ALASKA MEMBERS.
An individual who is a member of the Regulatory Commission of Alaska on the day before the effective date of sec.
1 of this Act continues to serve on the Regulatory Commission of Alaska until the member's term expires and a successor is appointed and qualified.
The governor shall make appointments for vacancies that occur on or after the effective date of sec.
1 of this Act in accordance with AS 42.04.020(a), as amended by sec.
1 of this Act.
* Sec.
22.
The uncodified law of the State of Alaska is amended by adding a new section to read:
TRANSITION:
ALASKA ENERGY AUTHORITY BOARD MEMBERS.
Notwithstanding AS 44.83.030(c), added by sec.
15 of this Act, the governor shall appoint two public members of the initial Alaska Energy Authority board of directors to one-year terms, two public members to two-year terms, and two public members to three-year terms.
* Sec.
23.
Sections 19 and 20 of this Act take effect immediately under AS 01.10.070(c).
* Sec.
24.
Except as provided in sec.
23 of this Act, this Act takes effect July 1, 2024.
SB0217B -15- CSSB 217(RES) New Text Underlined [DELETED TEXT BRACKETED]
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Action History

  1. (S) Minutes (SFIN)

  2. (S) Heard & Held -- Meeting Postponed until 12:30 PM --

  3. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  4. (S) Scheduled but Not Heard -- Recessed to a Call of the Chair --

  5. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  6. (S) Scheduled but Not Heard

  7. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  8. (S) Scheduled but Not Heard

  9. (S) FINANCE at 02:00 PM SENATE FINANCE 532

  10. (S) Minutes (SFIN)

  11. (S) Heard & Held -- Recessed to 3 PM --

  12. (S) FINANCE at 10:00 AM SENATE FINANCE 532

  13. (S) Heard & Held

  14. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  15. (S) Minutes (SFIN)

  16. (S) Heard & Held

  17. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  18. (S) Heard & Held -- Recessed to 1:30 pm --

  19. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  20. (S) Minutes (SFIN)

  21. (S) -- Please Note Time Change --

  22. (S) FINANCE at 01:30 PM SENATE FINANCE 532

  23. (S) Minutes (SFIN)

  24. (S) Heard & Held

  25. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  26. (S) -- MEETING CANCELED --

  27. (S) FINANCE at 01:30 PM SENATE FINANCE 532

  28. (S) Minutes (SFIN)

  29. (S) <Bill Hearing Rescheduled to 05/01/24 1:30pm > -- Please Note Time Change --

  30. (S) FINANCE at 01:30 PM SENATE FINANCE 532

  31. (S) REFERRED TO FINANCE

  32. (S) L&C REFERRAL REMOVED

  33. (S) FN2: (CED)

  34. (S) FN1: ZERO(CED)

  35. (S) NR: WIELECHOWSKI

  36. (S) DP: DUNBAR

  37. (S) AM: BISHOP, GIESSEL, KAWASAKI, CLAMAN, KAUFMAN

  38. (S) RES RPT CS 1DP 1NR 5AM NEW TITLE

  39. (S) Moved CSSB 217(RES) Out of Committee

  40. (S) RESOURCES at 03:30 PM BUTROVICH 205

  41. (S) Minutes (SL&C)

  42. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  43. (S) Scheduled but Not Heard

  44. (S) RESOURCES at 03:30 PM BUTROVICH 205

  45. (S) Heard & Held

  46. (S) RESOURCES at 03:30 PM BUTROVICH 205

  47. (S) Minutes (SRES)

  48. (S) Heard & Held

  49. (S) RESOURCES at 03:30 PM BUTROVICH 205

  50. (S) Minutes (SRES)

  51. (S) Heard & Held

  52. (S) RESOURCES at 03:30 PM BUTROVICH 205

  53. (S) Minutes (SRES)

  54. (S) Heard & Held

  55. (S) RESOURCES at 03:30 PM BUTROVICH 205

  56. (S) GOVERNOR'S TRANSMITTAL LETTER

  57. (S) FN2: (CED)

  58. (S) FN1: ZERO(CED)

  59. (S) RES, L&C, FIN

  60. (S) READ THE FIRST TIME - REFERRALS

Sponsors

  • Senate Rules · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 64 not signed on

Sponsors (1)

  • Senate Rules

Co-sponsors (0)

None.

Not signed on (64)

64 members have not signed on to this bill.

Show all 64 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation energy
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Frequently asked questions

Who sponsors SB 217?
SB 217 is sponsored by Senate Rules.
What is the current status of SB 217?
This bill died with 33rd Legislature (2023-2024). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 217?
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