HB 196 — An Act relating to carbon offset revenue; and relating to the renewable energy grant fund.

34-LS0502\H34-LS0502\I CS FOR HOUSE BILL NO.

196(ENE)196 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - SECONDFIRST SESSION BY THEREPRESENTATIVES HOUSEBURKE, SPECIALFields COMMITTEEIntroduced: ON ENERGY Referred:

Finance4/15/25 Sponsor(s):Referred:

REPRESENTATIVESHouse BURKE,Special FieldsCommittee on Energy, Finance A BILL FOR AN ACT ENTITLED "An Act relating to thecarbon renewableoffset energyrevenue; grant fund and recommendation program." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

and relating to the renewable energy grant fund." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

AS 42.45.045(a)38.95.430 is amended to read:

(a)Sec. A renewable energy grant fund is established as a separate fund to finance certain energy projects in Alaska for the purpose of providing affordable energy to all communities in the state.

38.95.430.

Carbon offset revenue.

The legislature shall appropriate [TWENTY PERCENT OF] the revenue generated from the carbon offset program as follows:

(1) 20 percent to [SHALL BE DEPOSITED INTO] the renewable energy grant fund (AS 42.45.045);

(2) [.

THE REMAINING] 80 percent for any other public purpose [OF THE REVENUE FROM THE CARBON OFFSET PROGRAM SHALL BE SEPARATELY ACCOUNTED FOR UNDER AS 37.05.142 AND MAY BE APPROPRIATED BY THE LEGISLATURE].

AS 42.45.045(a) is amended to read:

HB0196a -1- HB 196 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0502\I (a) A renewable energy grant fund is established as a separate fund to finance certain energy projects in Alaska for the purpose of providing affordable energy to all communities in the state.

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3.

AS 42.45.045(b) is amended to read:

(b) The authority shall administer the fund as a fund distinct from other funds of the authority.

The fund consists of appropriations to the fund, including (1) [MONEY APPROPRIATED TO THE FUND BY THE LEGISLATURE TO PROVIDE GRANTS FOR CERTAIN ENERGY PROJECTS DETERMINED BY THE LEGISLATURE;

(2)] gifts, bequests, contributions from other sources, and federal money;

(2) [(3)] interest earned on the fund balance;

and (3) [(4)] investments to be managed by the Department of Revenue, which shall be the fiduciary of the fund under AS 37.10.071.

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4.

(d) The authority shall, in consultation with the advisory committee established under (i) of this section and the Department of Natural Resources, (1) develop a methodology for determining the order of projects that may receive assistance, including separate requirements for grant eligibility, and adopt regulations identifying criteria to evaluate the benefit and feasibility of projects for which an applicant applies for supporta fromgrant theunder legislature,this section [SUPPORT FROM THE LEGISLATURE], with the most weight being given to projects that serve any area in which the average cost of energy to each resident of the area exceeds the average cost to each resident of other areas of the HB0196b -1- CSHB 196(ENE) New Text Underlined [DELETED TEXT BRACKETED] 34-LS0502\H state, and significant weight being given to a statewide balance of grant funds and to the amount of matching funds an applicant is able to make available;

(4) makeprovide recommendations[MAKE toRECOMMENDATIONS theTO legislatureTHE forHB 196 -2- HB0196a New Text Underlined [DELETED TEXT BRACKETED] 34-LS0502\I LEGISLATURE FOR] renewable power production reimbursement grants;

and (5) [(3)] not later than 10 days after the first day of each regular legislative session, submit to the legislature a report summarizing and reviewing each grant application submitted under this section and aan recommendedexplanation priorityof forthe awardingauthority's grants.decision to approve or deny the grant [A RECOMMENDED PRIORITY FOR AWARDING GRANTS].

3.5.

AS 42.45.045(e) is amended to read:

(e) In consultation with the advisory committee established in (i) of this section, the authority shall make determinations [RECOMMENDATIONS TO THE LEGISLATURE] regarding eligible applicants' projects that finance feasibility studies, reconnaissance studies, energy resource monitoring, and construction of renewable energy projects, natural gas projects, or transmission or distribution infrastructure located in Alaska that meet the requirements of (f), (g), or (h) of this section, as applicable, and shall, at least once each year and before making the determinations, solicit from the advisory committee funding recommendations for all grants.

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6.

AS 42.45.045(f) is amended to read:

(f) For a renewable energy project to qualify for a grant [RECOMMENDATION] under (e) of this section, the project must (1) be a new project not in operation on August 20, 2008, or an addition to an existing project made after August 20, 2008;

and (2) be a (A) hydroelectric facility;

(B) direct use of renewable energy resources;

(C) facility that generates electricity from fuel cells that use hydrogen from renewable energy resources or natural gas;

or (D) facility that generates energy from renewable energy resources.

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