Alaska 2023-2024 Regular Session

Alaska House Bill HB307 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled HB 307
2		-	LAWS OF ALASKA
3	1
4		-	2024
	2	+	HB0307c -1- CSHB 307(FIN) am
	3	+	New Text Underlined [DELETED TEXT BRACKETED]
5	4
6		-
7		-
8		-	Source Chapter No.
9		-	SCS CSHB 307(FIN) _______
	5	+	33-GH2489\B.A
10	6
11	7
12	8
13	9
14		-	~~AN ACT~~
	10	+	CS FOR HOUSE BILL NO. 307(FIN) am
15	11
16		-	Relating to the Regulatory Commission of Alaska; relating to regulation of public utilities and
17		-	pipeline carriers; relating to approval of wholesale power agreements; relating to electric
18		-	reliability organizations; relating to loans for renewable energy resources projects from the
19		-	power project fund; relating to the taxation of new electricity generation and storage facilities;
20		-	relating to the Alaska Energy Authority; relating to the Railbelt Transmission Organization;
21		-	and providing for an effective date.
	12	+	IN THE LEGISLATURE OF THE STATE OF ALASKA
22	13
	14	+	THIRTY-THIRD LEGISLATURE - SECOND SESSION
23	15
24		-	~~_______________~~
	16	+	BY THE HOUSE FINANCE COMMITTEE
25	17
	18	+	Amended: 5/13/24
	19	+	Offered: 5/7/24
26	20
27		-	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
	21	+	Sponsor(s): HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
	22	+	A BILL
28	23
	24	+	FOR AN ACT ENTITLED
29	25
	26	+	"An Act relating to the Regulatory Commission of Alaska; relating to regulation of 1
	27	+	public utilities, pipeline carriers, and liquefied natural gas import facilities; relating to 2
	28	+	approval of wholesale power agreements; relating to preapproval for construction of 3
	29	+	energy facilities; relating to electric reliability organizations; relating to the taxation of 4
	30	+	new electricity generation facilities; relating to the Alaska Energy Authority; relating to 5
	31	+	the Railbelt Transmission Organization; requiring the Alaska Energy Authority to 6
	32	+	submit a report about issuing rate reduction bonds for financing transmission system 7
	33	+	upgrades; and providing for an effective date." 8
	34	+	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 9
	35	+	* Section 1. AS 39.25.110(11) is amended to read: 10
	36	+	(11) the officers and employees of the following boards, commissions, 11
	37	+	and authorities: 12 33-GH2489\B.A
	38	+	CSHB 307(FIN) am -2- HB0307c
	39	+	New Text Underlined [DELETED TEXT BRACKETED]
30	40
31		-	THE ACT FOLLOWS ON PAGE 1
32		-	-1- Enrolled HB 307
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48		-
49		-
50		-
51		-	AN ACT
52		-
53		-
54		-	Relating to the Regulatory Commission of Alaska; relating to regulation of public utilities and 1
55		-	pipeline carriers; relating to approval of wholesale power agreements; relating to electric 2
56		-	reliability organizations; relating to loans for renewable energy resources projects from the 3
57		-	power project fund; relating to the taxation of new electricity generation and storage facilities; 4
58		-	relating to the Alaska Energy Authority; relating to the Railbelt Transmission Organization; 5
59		-	and providing for an effective date. 6
60		-	_______________ 7
61		-	* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 8
62		-	to read: 9
63		-	LEGISLATIVE INTENT. It is the intent of the legislature that ownership of state-10
64		-	funded new or upgraded backbone transmission assets in the Railbelt be decided when the 11
65		-	financing for the new or upgraded transmission assets is approved by the state. 12
66		-	* Sec. 2. AS 39.25.110(11) is amended to read: 13
67		-	(11) the officers and employees of the following boards, commissions, 14
68		-	and authorities: 15
69		-	Enrolled HB 307 -2-
70	41		(A) [REPEALED] 1
71	42		(B) Alaska Permanent Fund Corporation; 2
72	43		(C) Alaska Industrial Development and Export Authority; 3
73	44		(D) Alaska Commercial Fisheries Entry Commission; 4
74	45		(E) Alaska Commission on Postsecondary Education; 5
75	46		(F) Alaska Aerospace Corporation; 6
76	47		(G) [REPEALED] 7
77	48		(H) Alaska Gasline Development Corporation and subsidiaries 8
78	49		of the Alaska Gasline Development Corporation; 9
79	50		(I) Alaska Energy Authority; 10
80		-	* Sec. 3. AS 42.04.020(a) is amended to read: 11
81		-	(a) The commission consists of five commissioners appointed by the governor 12
82		-	and confirmed by the legislature in joint session. To qualify for appointment as a 13
83		-	commissioner, a person must 14
84		-	(1) be a member in good standing of the Alaska Bar Association with 15
85		-	at least five years of actual experience in the practice of law; 16
86		-	(2) be a professional engineer registered under AS 08.48; or 17
87		-	(3) have a degree from an accredited college or university with a major 18
88		-	in [ENGINEERING,] finance, economics, accounting, business administration, or 19
89		-	public administration and at least five years of actual experience in the field 20
90		-	associated with the degree [ACTUAL EXPERIENCE FOR A PERIOD OF FIVE 21
91		-	YEARS IN THE PRACTICE OF LAW OR IN THE FIELD OF ENGINEERING, 22
92		-	FINANCE, ECONOMICS, ACCOUNTING, BUSINESS ADMINISTRATION, OR 23
93		-	PUBLIC ADMINISTRATION IS EQUIVALENT TO A DEGREE]. 24
94		-	* Sec. 4. AS 42.04.020(f) is amended to read: 25
95		-	(f) Members of the commission are in the exempt service and are entitled to a 26
96		-	monthly salary equal to a step in Range 29 [RANGE 27] of the salary schedule in 27
97		-	AS 39.27.011(a) for Juneau, Alaska. The chair of the commission is entitled to a 28
98		-	monthly salary equal to a step in Range 29 [RANGE 27] of the salary schedule in 29
99		-	AS 39.27.011(a) for Juneau, Alaska. 30
100		-	* Sec. 5. AS 42.05.141(b) is amended to read: 31
101		-	-3- Enrolled HB 307
102		-	(b) The commission shall perform the duties assigned to it under 1
103		-	AS 42.45.100 - 42.45.190 and AS 44.83.700 - 44.83.720. 2
104		-	* Sec. 6. AS 42.05.141 is amended by adding a new subsection to read: 3
105		-	(g) Nothing in this chapter limits the authority of the commission under this 4
106		-	section or AS 42.05.151 necessary to implement provisions that remain applicable 5
107		-	under AS 42.05.321(b) or 42.05.711. 6
108		-	* Sec. 7. AS 42.05.254(a) is amended to read: 7
109		-	(a) A regulated public utility or a certificated utility that provides 8
110		-	telecommunications services operating in the state shall pay to the commission an 9
111		-	annual regulatory cost charge in an amount not to exceed the maximum percentage of 10
112		-	adjusted gross revenue that applies to the utility sector of which the utility is a part. 11
113		-	The regulatory cost charges that the commission expects to collect from all regulated 12
114		-	utilities and certificated utilities providing telecommunications services may not 13
115		-	exceed the sum of the following percentages of the total adjusted gross revenue of all 14
116		-	regulated public utilities and certificated utilities providing telecommunications 15
117		-	services derived from operations in the state: (1) not more than .98 [.7] percent to fund 16
118		-	the operations of the commission, and (2) not more than .22 [.17] percent to fund 17
119		-	operations of the public advocacy function under AS 42.04.070(c) and 18
120		-	AS 44.23.020(e) within the Department of Law. An exempt utility that does not 19
121		-	provide telecommunications services shall pay the actual cost of services provided to 20
122		-	it by the commission. 21
123		-	* Sec. 8. AS 42.05.381 is amended by adding a new subsection to read: 22
124		-	(p) A determination of whether an electric utility's rate is just and reasonable 23
125		-	may consider whether the purpose of the rate is to increase diversity of supply, 24
126		-	promote load growth, or enhance energy reliability or energy security. 25
127		-	* Sec. 9. AS 42.05.431(b) is amended to read: 26
128		-	(b) A wholesale power agreement between public utilities, or between a 27
129		-	public utility and an independent power producer, is subject to advance approval 28
130		-	of the commission. A rate set in accordance with a wholesale power agreement 29
131		-	must disclose a state or local tax exemption provided to a utility or independent 30
132		-	power producer. After a wholesale power agreement is in effect, the commission 31
133		-	Enrolled HB 307 -4-
134		-	may not invalidate any purchase or sale obligation under the agreement. However, if 1
135		-	the commission finds that rates set in accordance with the agreement violate this 2
136		-	subsection or are not just and reasonable, the commission may order the parties to 3
137		-	negotiate an amendment to the agreement and if the parties fail to agree, to use the 4
138		-	dispute resolution procedures contained in the contract. In this subsection, 5
139		-	"independent power producer" means a legal entity, other than a public utility 6
140		-	or a joint action agency established under AS 42.45.310, that owns or operates a 7
141		-	facility for the generation of electricity. 8
142		-	* Sec. 10. AS 42.05.711(b) is amended to read: 9
143		-	(b) Except as otherwise provided in this subsection, [AND IN] (o) of this 10
144		-	section, and AS 44.83.700(d), public utilities owned and operated by a political 11
145		-	subdivision of the state, or electric operating entities established as the instrumentality 12
146		-	of two or more public utilities owned and operated by political subdivisions of the 13
147		-	state, are exempt from this chapter, other than AS 42.05.221 - 42.05.281 and 14
148		-	42.05.385. However, 15
149		-	(1) the governing body of a political subdivision may elect to be 16
150		-	subject to this chapter; and 17
151		-	(2) a utility or electric operating entity that is owned and operated by a 18
152		-	political subdivision and that directly competes with another utility or electric 19
153		-	operating entity is subject to this chapter and any other utility or electric operating 20
154		-	entity owned and operated by the political subdivision is also subject to this chapter; 21
155		-	this paragraph does not apply to a utility or electric operating entity owned and 22
156		-	operated by a political subdivision that competes with a telecommunications utility. 23
157		-	* Sec. 11. AS 42.05.760(a) is amended to read: 24
158		-	(a) An electric utility must participate in an electric reliability organization if 25
159		-	the utility operates in an interconnected electric energy transmission network served 26
160		-	by an electric reliability organization certificated by the commission. The commission 27
161		-	may not require an electric reliability organization for an interconnected bulk-electric 28
162		-	system if 29
163		-	(1) all of the load-serving entities operating in the interconnected bulk-30
164		-	electric system are exempt under AS 42.05.711(b); or 31
165		-	-5- Enrolled HB 307
166		-	(2) the sum of annual electric energy sales made by load-serving 1
167		-	entities operating in the interconnected bulk-electric system is less than 3,000,000 2
168		-	megawatt-hours. 3
169		-	* Sec. 12. AS 42.05.762 is amended to read: 4
170		-	Sec. 42.05.762. Duties of an electric reliability organization. An electric 5
171		-	reliability organization shall 6
172		-	(1) develop reliability standards that provide for an adequate level of 7
173		-	reliability of an interconnected electric energy transmission network; 8
174		-	(2) develop integrated resource plans under AS 42.05.780(a); 9
175		-	(3) establish rules to 10
176		-	(A) ensure that the directors of the electric reliability 11
177		-	organization and the electric reliability organization act independently from 12
178		-	users, owners, and operators of the interconnected electric energy transmission 13
179		-	network; 14
180		-	(B) equitably allocate reasonable dues, fees, and other charges 15
181		-	among all load-serving entities connected to the interconnected electric energy 16
182		-	transmission network for all activities under AS 42.05.760 - 42.05.790; 17
183		-	(C) provide fair and impartial procedures for the enforcement 18
184		-	of reliability standards; 19
185		-	(D) provide for reasonable notice and opportunity for public 20
186		-	comment, due process, openness, and balancing of interests in exercising its 21
187		-	duties; [AND] 22
188		-	(4) be governed by a board that 23
189		-	(A) includes as nonvoting members the chair of the 24
190		-	commission or the chair's designee and the attorney general or the attorney 25
191		-	general's designee; and 26
192		-	(B) is formed as 27
193		-	(i) an independent board; 28
194		-	(ii) a balanced stakeholder board; or 29
195		-	(iii) a combination independent and balanced 30
196		-	stakeholder board; and 31
197		-	Enrolled HB 307 -6-
198		-	(5) prioritize the reliability, stability, and cost to consumers of the 1
199		-	interconnected bulk-electric system served by the electric reliability organization. 2
200		-	* Sec. 13. AS 42.05.770 is amended to read: 3
201		-	Sec. 42.05.770. Regulations. The commission shall adopt regulations 4
202		-	governing electric reliability organizations, reliability standards, and modifications to 5
203		-	reliability standards consistent with this section. Regulations under AS 42.05.760 - 6
204		-	42.05.790 must 7
205		-	(1) require that an electric reliability organization's tariff include 8
206		-	[(A) STANDARDS FOR] nondiscriminatory standards for 9
207		-	[OPEN ACCESS TRANSMISSION AND] interconnection; 10
208		-	[(B) STANDARDS FOR TRANSMISSION SYSTEM COST 11
209		-	RECOVERY;] 12
210		-	(2) provide a process to identify and resolve conflicts between a 13
211		-	reliability standard and a function, rule, tariff, rate schedule, or agreement that has 14
212		-	been accepted, approved, adopted, or ordered by the commission; 15
213		-	(3) allow an electric reliability organization to recover its costs through 16
214		-	surcharges added to the rate for each participating load-serving entity. 17
215		-	* Sec. 14. AS 42.06.286(a) is amended to read: 18
216		-	(a) A pipeline carrier operating in the state shall pay to the commission an 19
217		-	annual regulatory cost charge in an amount not to exceed the sum of the following 20
218		-	percentages of gross revenue derived from operations in the state: (1) not more than 21
219		-	.98 [.7] percent to fund the operations of the commission, and (2) not more than .22 22
220		-	[.17] percent to fund operations of the public advocacy function under 23
221		-	AS 42.04.070(c) and AS 44.23.020(e) within the Department of Law. A regulatory 24
222		-	cost charge may not be assessed on pipeline carrier operations unless the operations 25
223		-	are within the jurisdiction of the commission. 26
224		-	* Sec. 15. AS 42.45.010 is amended by adding new subsections to read: 27
225		-	(m) A loan for a renewable energy resources project in which the cumulative 28
226		-	state monetary involvement, through loans, grants, and bonds, is at least $5,000,000 29
227		-	may not be granted for a term that exceeds 50 years and may, notwithstanding (f)(2) of 30
228		-	this section, be granted at an interest rate that is the lesser of 31
229		-	-7- Enrolled HB 307
230		-	(1) three percent lower than the rate determined under (f)(2)(A) of this 1
231		-	section, but not less than one percent; or 2
232		-	(2) a rate equivalent to the rate determined under (f)(2)(B) of this 3
233		-	section. 4
234		-	(n) In (m) of this section, "renewable energy resources" has the meaning given 5
235		-	in AS 42.45.045(l). 6
236		-	* Sec. 16. AS 43.98 is amended by adding a new section to read: 7
237		-	Article 2A. Taxation of New Electricity Generation and Storage Facilities. 8
238		-	Sec. 43.98.100. Taxation of new electricity generation and storage 9
239		-	facilities. (a) An electricity generation facility or electricity storage facility that is 10
240		-	constructed and placed into service on or after July 1, 2024, is not subject to state and 11
241		-	local ad valorem, income, and excise taxes if the electricity generation facility is 12
242		-	(1) operated by a public utility or joint action agency established under 13
243		-	AS 42.45.310; or 14
244		-	(2) operated by an entity other than a public utility and provides power 15
245		-	only to a public utility. 16
246		-	(b) In this section, "public utility" has the meaning given in AS 42.05.990. 17
247		-	* Sec. 17. AS 44.83.030 is amended to read: 18
248		-	Sec. 44.83.030. Membership of the authority. The members of the board of 19
249		-	directors of the authority [ALASKA ENERGY AUTHORITY] are 20
250		-	(1) the commissioner of revenue; 21
251		-	(2) the commissioner of commerce, community, and economic 22
252		-	development; and 23
253		-	(3) six public members appointed by the governor as follows: 24
254		-	(A) one member with expertise or experience in managing 25
255		-	or operating an electric utility that is not connected to an interconnected 26
256		-	electric energy transmission network as defined in AS 42.05.790; 27
257		-	(B) one member with expertise or experience in developing 28
258		-	energy projects in rural communities; 29
259		-	(C) one member with expertise or experience in managing 30
260		-	or operating an electric utility connected to an interconnected electric 31
261		-	Enrolled HB 307 -8-
262		-	energy transmission network as defined in AS 42.05.790; 1
263		-	(D) one member with expertise or experience in managing a 2
264		-	municipally owned utility located off the interconnected road system or 3
265		-	joint action agency established under AS 42.45.310 located off the 4
266		-	interconnected road system; 5
267		-	(E) one member with financial expertise in large power 6
268		-	generation project development; and 7
269		-	(F) one member with expertise or experience in finance, 8
270		-	energy policy, energy technology, engineering, law, or economics [THE 9
271		-	MEMBERS OF THE ALASKA INDUSTRIAL DEVELOPMENT AND 10
272		-	EXPORT AUTHORITY]. 11
273		-	* Sec. 18. AS 44.83.030 is amended by adding new subsections to read: 12
274		-	(b) If the commissioner described in (a)(1) or (a)(2) of this section is unable to 13
275		-	attend a meeting of the authority, the commissioner may, by an instrument in writing 14
276		-	filed with the authority, designate a deputy or director to act in the commissioner's 15
277		-	place as a member of the board at the meeting. For all purposes of this chapter, the 16
278		-	designee is a member of the board at the meeting. 17
279		-	(c) Public board members described in (a)(3) of this section serve for three-18
280		-	year terms. 19
281		-	(d) If a vacancy occurs in the membership of the board, the governor shall 20
282		-	immediately appoint a member for the unexpired portion of the term. 21
283		-	* Sec. 19. AS 44.83.040(a) is amended to read: 22
284		-	(a) The board of directors of the authority shall elect a chair and vice-chair 23
285		-	every two years from among its members [OF THE ALASKA INDUSTRIAL 24
286		-	DEVELOPMENT AND EXPORT AUTHORITY SHALL SERVE AS OFFICERS 25
287		-	OF THE ALASKA ENERGY AUTHORITY]. The powers of the authority 26
288		-	[ALASKA ENERGY AUTHORITY] are vested in the board of directors, and five 27
289		-	board members [FOUR DIRECTORS OF THE AUTHORITY] constitute a quorum. 28
290		-	Action may be taken and motions and resolutions adopted by the authority 29
291		-	[ALASKA ENERGY AUTHORITY] at a meeting by the affirmative vote of at least 30
292		-	five board members [A MAJORITY OF THE DIRECTORS]. The members of the 31
293		-	-9- Enrolled HB 307
294		-	board of directors of the authority [ALASKA ENERGY AUTHORITY] serve 1
295		-	without compensation, but they shall receive the same travel pay and per diem as 2
296		-	provided by law for board members under AS 39.20.180. 3
297		-	* Sec. 20. AS 44.83.040 is amended by adding a new subsection to read: 4
298		-	(e) The authority may, as the authority considers advisable, appoint persons as 5
299		-	officers, including an executive director, and employ professional advisors, counsel, 6
300		-	technical experts, agents, and other employees. The executive director and employees 7
301		-	of the authority are in the exempt service under AS 39.25. 8
302		-	* Sec. 21. AS 44.83.080 is amended to read: 9
303		-	Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 10
304		-	purposes, the authority has the following powers in addition to its other powers: 11
305		-	(1) to sue and be sued; 12
306		-	(2) to have a seal and alter it at pleasure; 13
307		-	(3) to make and alter bylaws for its organization and internal 14
308		-	management; 15
309		-	(4) to adopt regulations governing the exercise of its corporate powers; 16
310		-	(5) to improve, equip, operate, and maintain power projects and bulk 17
311		-	fuel, waste energy, energy conservation, energy efficiency, and alternative energy 18
312		-	facilities and equipment; 19
313		-	(6) to issue bonds to carry out any of its corporate purposes and 20
314		-	powers, including the establishment or increase of reserves to secure or to pay the 21
315		-	bonds or interest on them, and the payment of all other costs or expenses of the 22
316		-	authority incident to and necessary or convenient to carry out its corporate purposes 23
317		-	and powers; 24
318		-	(7) to sell, lease as lessor or lessee, exchange, donate, convey, or 25
319		-	encumber in any manner by mortgage or by creation of any other security interest, real 26
320		-	or personal property owned by it, or in which it has an interest, when, in the judgment 27
321		-	of the authority, the action is in furtherance of its corporate purposes; 28
322		-	(8) to accept gifts, grants, or loans from, and enter into contracts or 29
323		-	other transactions regarding them, with any person; 30
324		-	(9) to deposit or invest its funds, subject to agreements with 31
325		-	Enrolled HB 307 -10-
326		-	bondholders; 1
327		-	(10) to enter into contracts with the United States or any person and, 2
328		-	subject to the laws of the United States and subject to concurrence of the legislature, 3
329		-	with a foreign country or its agencies, for the construction, financing, operation, and 4
330		-	maintenance of all or any part of a power project or bulk fuel, waste energy, energy 5
331		-	conservation, energy efficiency, or alternative energy facilities or equipment, either 6
332		-	inside or outside the state, and for the sale or transmission of power from a project or 7
333		-	any right to the capacity of it or for the security of any bonds of the authority issued or 8
334		-	to be issued for the project; 9
335		-	(11) to enter into contracts with any person and with the United States 10
336		-	and, subject to the laws of the United States and subject to the concurrence of the 11
337		-	legislature, with a foreign country or its agencies for the purchase, sale, exchange, 12
338		-	transmission, or use of power from a project, or any right to the capacity of it; 13
339		-	(12) to apply to the appropriate agencies of the state, the United States, 14
340		-	and a foreign country and any other proper agency for the permits, licenses, or 15
341		-	approvals as may be necessary, to acquire, construct, maintain, and operate power 16
342		-	projects in accordance with the licenses or permits, and to obtain, hold, and use the 17
343		-	licenses and permits in the same manner as any other person or operating unit; 18
344		-	(13) to enter into contracts or agreements with respect to the exercise 19
345		-	of any of its powers, and do all things necessary or convenient to carry out its 20
346		-	corporate purposes and exercise the powers granted in this chapter; 21
347		-	(14) to recommend to the legislature 22
348		-	(A) the pledge of the credit of the state to guarantee repayment 23
349		-	of all or any portion of revenue bonds issued to assist in construction of power 24
350		-	projects; 25
351		-	(B) an appropriation from the general fund 26
352		-	(i) for debt service on bonds or other project purposes; 27
353		-	or 28
354		-	(ii) to reduce the amount of debt financing for the 29
355		-	project; 30
356		-	(15) to carry out the powers and duties assigned to it under AS 42.45 31
357		-	-11- Enrolled HB 307
358		-	and AS 44.83.700 - 44.83.720; 1
359		-	(16) to make grants or loans to any person and enter into contracts or 2
360		-	other transactions regarding the grants or loans; 3
361		-	(17) to promote energy conservation, energy efficiency, and alternative 4
362		-	energy through training and public education; 5
363		-	(18) to acquire a Susitna River power project, whether by construction, 6
364		-	purchase, gift, or lease, including the acquisition of property rights and interests by 7
365		-	eminent domain under AS 09; 8
366		-	(19) to perform feasibility studies and engineering and design with 9
367		-	respect to power projects; 10
368		-	(20) to acquire battery and other energy storage systems, whether 11
369		-	by direct ownership, purchase, grant, gift, or lease. 12
370		-	* Sec. 22. AS 44.83.090(b) is amended to read: 13
371		-	(b) The authority is not subject to the jurisdiction of the Regulatory 14
372		-	Commission of Alaska, except as provided in AS 44.83.700(d). Nothing in this 15
373		-	chapter, except as provided in AS 44.83.700 - 44.83.720, grants the authority 16
374		-	jurisdiction over the services or rates of a public utility or diminishes or otherwise 17
375		-	alters the jurisdiction of the Regulatory Commission of Alaska with respect to a public 18
376		-	utility, including any right the commission may have to review and approve or 19
377		-	disapprove contracts for the purchase of electricity by a public utility other than 20
378		-	wholesale agreements and contracts described in AS 42.05.431(c)(1). 21
379		-	* Sec. 23. AS 44.83 is amended by adding new sections to read: 22
380		-	Article 5A. Railbelt Transmission Organization. 23
381		-	Sec. 44.83.700. Railbelt Transmission Organization. (a) The Railbelt 24
382		-	Transmission Organization is created for the purpose of establishing an open access 25
383		-	transmission tariff that 26
384		-	(1) provides for recovery of transmission costs and related ancillary 27
385		-	services; and 28
386		-	(2) replaces wholesale charges assessed by unit by each utility in the 29
387		-	Railbelt with a new mechanism that fairly recovers and equitably allocates the costs of 30
388		-	operating the backbone transmission system. 31
389		-	Enrolled HB 307 -12-
390		-	(b) For administrative purposes, the transmission organization is a division of 1
391		-	the Alaska Energy Authority. 2
392		-	(c) To assist in administering the open access transmission tariff, the 3
393		-	governance structure for the transmission organization must be made up of a 4
394		-	representative from the authority, a representative from each Railbelt utility, and, as an 5
395		-	ex officio nonvoting representative, the chief executive officer of the applicable 6
396		-	electric reliability organization or the chief executive officer's designee. 7
397		-	(d) Notwithstanding AS 42.05.711(b) and AS 44.83.090(b), the transmission 8
398		-	organization is subject to the jurisdiction of the commission for the purposes of 9
399		-	AS 44.83.700 - 44.83.720. The commission shall require the transmission organization 10
400		-	to apply for a certificate under AS 42.05.221 and file tariffs to achieve the purposes of 11
401		-	AS 44.83.700 - 44.83.720. 12
402		-	Sec. 44.83.710. Revenue mechanism. (a) The transmission organization shall 13
403		-	hold and administer a commission-approved nondiscriminatory open access 14
404		-	transmission tariff for the backbone transmission system. 15
405		-	(b) The transmission organization shall file with the commission a 16
406		-	nondiscriminatory open access transmission tariff consistent with Federal Energy 17
407		-	Regulatory Commission standards to remove impediments to competition in the 18
408		-	wholesale bulk power marketplace in the state. If the transmission organization does 19
409		-	not file a nondiscriminatory open access transmission tariff with the commission on or 20
410		-	before July 1, 2025, the commission shall, after notice and opportunity for public 21
411		-	comment, establish a nondiscriminatory open access transmission tariff consistent 22
412		-	with this section. 23
413		-	(c) The nondiscriminatory open access transmission tariff must, as approved 24
414		-	by the commission, 25
415		-	(1) pool backbone transmission system costs and allocate those costs 26
416		-	through certificated load-serving entities on a coincident peak or load ratio share basis, 27
417		-	or a combination of both; and 28
418		-	(2) account for 29
419		-	(A) required backbone transmission system ancillary services; 30
420		-	(B) backbone transmission system congestion; 31
421		-	-13- Enrolled HB 307
422		-	(C) disruptions to the backbone transmission system that result 1
423		-	in the isolation of one geographical area of the backbone transmission system 2
424		-	from another for more than 24 hours; and 3
425		-	(D) costs to own and operate the backbone transmission 4
426		-	system, as established by the commission or by contract, including 5
427		-	transmission costs associated with the Bradley Lake hydroelectric project. 6
428		-	(d) A Railbelt utility shall pass the commission-approved transmission costs 7
429		-	directly and transparently to the utility's customers. 8
430		-	Sec. 44.83.720. Definitions. In AS 44.83.700 - 44.83.720, 9
431		-	(1) "backbone transmission system" means the transmission assets in 10
432		-	the Railbelt that facilitate the transmission of electrical power under the standards 11
433		-	established by the Federal Energy Regulatory Commission; 12
434		-	(2) "commission" means the Regulatory Commission of Alaska; 13
435		-	(3) "Railbelt" means the geographic region from the Kenai Peninsula 14
436		-	to Interior Alaska that is connected to a common electric transmission backbone; 15
437		-	(4) "Railbelt utility" means a public electric utility certificated to 16
438		-	operate in the Railbelt that operates backbone transmission system assets; 17
439		-	(5) "transmission organization" means the Railbelt Transmission 18
440		-	Organization established by AS 44.83.700. 19
441		-	* Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 20
442		-	read: 21
443		-	TRANSITION: REGULATORY COMMISSION OF ALASKA MEMBERS. An 22
444		-	individual who is a member of the Regulatory Commission of Alaska on the day before the 23
445		-	effective date of sec. 3 of this Act continues to serve on the Regulatory Commission of Alaska 24
446		-	until the member's term expires and a successor is appointed and qualified. The governor shall 25
447		-	make appointments for vacancies that occur on or after the effective date of sec. 3 of this Act 26
448		-	in accordance with AS 42.04.020(a), as amended by sec. 3 of this Act. 27
449		-	* Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 28
450		-	read: 29
451		-	TRANSITION: ALASKA ENERGY AUTHORITY BOARD MEMBERS. 30
452		-	Notwithstanding AS 44.83.030(c), added by sec. 18 of this Act, the governor shall appoint 31
453		-	Enrolled HB 307 -14-
454		-	two public members of the initial Alaska Energy Authority board of directors to one-year 1
455		-	terms, two public members to two-year terms, and two public members to three-year terms. 2
456		-	* Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 3
457		-	read: 4
458		-	TRANSITION: RAILBELT TRANSMISSION ORGANIZATION. To facilitate t he 5
459		-	development and management of the Railbelt backbone transmission system open access 6
460		-	transmission tariff, the Alaska Energy Authority and the Railbelt utilities, as defined in 7
461		-	AS 44.83.720, added by sec. 23 of this Act, shall form the Railbelt Transmission Organization 8
462		-	under AS 44.83.700, added by sec. 23 of this Act, on or before January 1, 2025, modeled after 9
463		-	the governance structure of the Bradley Lake Hydroelectric Project, as outlined in the Bradley 10
464		-	Lake Power Sales Agreement, including the creation, duties, and methods of the Bradley Lake 11
465		-	Project Management Committee, with any adjustments the parties to the agreement determine 12
466		-	are necessary. On or before January 1, 2025, the Railbelt Transmission Organization shall 13
467		-	apply to the Regulatory Commission of Alaska for a certificate under AS 42.05.221 to 14
468		-	achieve the purposes of AS 44.83.700 - 44.83.720, added by sec. 23 of this Act. 15
469		-	* Sec. 27. Section 8 of this Act takes effect immediately under AS 01.10.070(c). 16
470		-	* Sec. 28. Except as provided in sec. 27 of this Act, this Act takes effect July 1, 2024. 17
	51	+	* Sec. 2. AS 42.04.020(f) is amended to read: 11
	52	+	(f) Members of the commission are in the exempt service and are entitled to a 12
	53	+	monthly salary equal to a step in Range 29 [RANGE 27] of the salary schedule in 13
	54	+	AS 39.27.011(a) for Juneau, Alaska. The chair of the commission is entitled to a 14
	55	+	monthly salary equal to a step in Range 29 [RANGE 27] of the salary schedule in 15
	56	+	AS 39.27.011(a) for Juneau, Alaska. 16
	57	+	* Sec. 3. AS 42.05.254(a) is amended to read: 17
	58	+	(a) A regulated public utility or a certificated utility that provides 18
	59	+	telecommunications services operating in the state shall pay to the commission an 19
	60	+	annual regulatory cost charge in an amount not to exceed the maximum percentage of 20
	61	+	adjusted gross revenue that applies to the utility sector of which the utility is a part. 21
	62	+	The regulatory cost charges that the commission expects to collect from all regulated 22
	63	+	utilities and certificated utilities providing telecommunications services may not 23
	64	+	exceed the sum of the following percentages of the total adjusted gross revenue of all 24
	65	+	regulated public utilities and certificated utilities providing telecommunications 25
	66	+	services derived from operations in the state: (1) not more than .98 [.7] percent to fund 26
	67	+	the operations of the commission, and (2) not more than .22 [.17] percent to fund 27
	68	+	operations of the public advocacy function under AS 42.04.070(c) and 28
	69	+	AS 44.23.020(e) within the Department of Law. An exempt utility that does not 29
	70	+	provide telecommunications services shall pay the actual cost of services provided to 30
	71	+	it by the commission. 31 33-GH2489\B.A
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	75	+	* Sec. 4. AS 42.05.381(e) is amended to read: 1
	76	+	(e) The commission shall adopt regulations for electric cooperatives, [AND 2
	77	+	FOR] local exchange telephone utilities, and refuse utilities, setting a range for 3
	78	+	adjustment of rates by a simplified rate filing procedure. A cooperative, [OR] 4
	79	+	telephone utility, or refuse utility may apply for permission to adjust its rates over a 5
	80	+	period of time under the simplified rate filing procedure regulations. The commission 6
	81	+	shall grant the application if the cooperative, [OR] telephone utility, or refuse utility 7
	82	+	satisfies the requirements of the regulations. The commission shall adopt 8
	83	+	regulations specific to refuse utilities that provide for sufficient public notice and 9
	84	+	an opportunity for ratepayers to meaningfully comment on rate filings. The 10
	85	+	commission may review implementation of the simplified rate filing procedure at 11
	86	+	reasonable intervals and may revoke permission to use the procedure or require 12
	87	+	modification of the rates to correct an error. In this subsection, "refuse utility" 13
	88	+	means a utility furnishing collection and disposal service of garbage, refuse, 14
	89	+	trash, or other waste material to the public for compensation. 15
	90	+	* Sec. 5. AS 42.05.381 is amended by adding new subsections to read: 16
	91	+	(p) A determination of whether an electric utility's rate is just and reasonable 17
	92	+	may consider whether the purpose of the rate is to increase diversity of supply, 18
	93	+	promote load growth, or enhance energy reliability or energy security. 19
	94	+	(q) For rate-making purposes, the commission shall not consider the 20
	95	+	investment of a public utility in a liquefied natural gas import facility as utility 21
	96	+	property, even if the liquefied natural gas import facility is exempt from regulation by 22
	97	+	the commission. In this subsection, 23
	98	+	(1) "investment" includes an investment in land used to connect to a 24
	99	+	liquefied natural gas import facility used by the public utility to render service to the 25
	100	+	public; 26
	101	+	(2) "liquefied natural gas import facility" includes a facility used to receive or 27
	102	+	unload natural gas or to store, transport, gasify, liquefy, or process received or 28
	103	+	unloaded natural gas. 29
	104	+	* Sec. 6. AS 42.05.431(b) is amended to read: 30
	105	+	(b) A wholesale power agreement between public utilities, or between a 31 33-GH2489\B.A
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	109	+	public utility and an independent power producer, is subject to advance approval 1
	110	+	of the commission. A rate set in accordance with a wholesale power agreement 2
	111	+	must disclose a state or local tax exemption provided to a utility or independent 3
	112	+	power producer. After a wholesale power agreement is in effect, the commission 4
	113	+	may not invalidate any purchase or sale obligation under the agreement. However, if 5
	114	+	the commission finds that rates set in accordance with the agreement violate this 6
	115	+	subsection or are not just and reasonable, the commission may order the parties to 7
	116	+	negotiate an amendment to the agreement and if the parties fail to agree, to use the 8
	117	+	dispute resolution procedures contained in the contract. In this subsection, 9
	118	+	"independent power producer" means a legal entity, other than a public utility, 10
	119	+	that owns or operates a facility for the generation of electricity; "independent 11
	120	+	power producer" does not include a joint action agency established under 12
	121	+	AS 42.45.310. 13
	122	+	* Sec. 7. AS 42.05.431 is amended by adding a new subsection to read: 14
	123	+	(i) Costs incurred by an electric cooperative utility organized under AS 10.25 15
	124	+	that participates in an electric reliability organization certificated by the commission 16
	125	+	under AS 42.05.760 must be allowed in the rates charged by the utility if the costs are 17
	126	+	approved by the utility's board of directors in connection with a new or purchased 18
	127	+	renewable energy facility with a nameplate capacity of less than 15,000 kilowatts or 19
	128	+	power purchased from a renewable energy facility with a nameplate capacity of less 20
	129	+	than 15,000 kilowatts. In this subsection, "renewable energy facility" means a facility 21
	130	+	that generates electricity from renewable and alternative energy resources, including 22
	131	+	geothermal, wind, solar, hydroelectric, hydrokinetic, tidal, and biomass energy. 23
	132	+	* Sec. 8. AS 42.05.711(b) is amended to read: 24
	133	+	(b) Except as otherwise provided in this subsection, [AND IN] (o) of this 25
	134	+	section, and AS 44.83.700(d), public utilities owned and operated by a political 26
	135	+	subdivision of the state, or electric operating entities established as the instrumentality 27
	136	+	of two or more public utilities owned and operated by political subdivisions of the 28
	137	+	state, are exempt from this chapter, other than AS 42.05.221 - 42.05.281 and 29
	138	+	42.05.385. However, 30
	139	+	(1) the governing body of a political subdivision may elect to be 31 33-GH2489\B.A
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	143	+	subject to this chapter; and 1
	144	+	(2) a utility or electric operating entity that is owned and operated by a 2
	145	+	political subdivision and that directly competes with another utility or electric 3
	146	+	operating entity is subject to this chapter and any other utility or electric operating 4
	147	+	entity owned and operated by the political subdivision is also subject to this chapter; 5
	148	+	this paragraph does not apply to a utility or electric operating entity owned and 6
	149	+	operated by a political subdivision that competes with a telecommunications utility. 7
	150	+	* Sec. 9. AS 42.05.760(a) is amended to read: 8
	151	+	(a) An electric utility must participate in an electric reliability organization if 9
	152	+	the utility operates in an interconnected electric energy transmission network served 10
	153	+	by an electric reliability organization certificated by the commission. The commission 11
	154	+	may not require an electric reliability organization for an interconnected bulk-electric 12
	155	+	system if 13
	156	+	(1) all of the load-serving entities operating in the interconnected bulk-14
	157	+	electric system are exempt under AS 42.05.711(b); or 15
	158	+	(2) the sum of annual electric energy sales made by load-serving 16
	159	+	entities operating in the interconnected bulk-electric system is less than 1,500,000 17
	160	+	megawatt-hours. 18
	161	+	* Sec. 10. AS 42.05.762 is amended to read: 19
	162	+	Sec. 42.05.762. Duties of an electric reliability organization. An electric 20
	163	+	reliability organization shall 21
	164	+	(1) develop reliability standards that provide for an adequate level of 22
	165	+	reliability of an interconnected electric energy transmission network; 23
	166	+	(2) develop integrated resource plans under AS 42.05.780(a); 24
	167	+	(3) establish rules to 25
	168	+	(A) ensure that the directors of the electric reliability 26
	169	+	organization and the electric reliability organization act independently from 27
	170	+	users, owners, and operators of the interconnected electric energy transmission 28
	171	+	network; 29
	172	+	(B) equitably allocate reasonable dues, fees, and other charges 30
	173	+	among all load-serving entities connected to the interconnected electric energy 31 33-GH2489\B.A
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	177	+	transmission network for all activities under AS 42.05.760 - 42.05.790; 1
	178	+	(C) provide fair and impartial procedures for the enforcement 2
	179	+	of reliability standards; 3
	180	+	(D) provide for reasonable notice and opportunity for public 4
	181	+	comment, due process, openness, and balancing of interests in exercising its 5
	182	+	duties; [AND] 6
	183	+	(4) be governed by a board that 7
	184	+	(A) includes as nonvoting members the chair of the 8
	185	+	commission or the chair's designee and the attorney general or the attorney 9
	186	+	general's designee; and 10
	187	+	(B) is formed as 11
	188	+	(i) an independent board; 12
	189	+	(ii) a balanced stakeholder board; or 13
	190	+	(iii) a combination independent and balanced 14
	191	+	stakeholder board; and 15
	192	+	(5) prioritize the reliability, stability, and cost to consumers of the 16
	193	+	interconnected bulk-electric system served by the electric reliability organization 17
	194	+	while considering cost to the consumer. 18
	195	+	* Sec. 11. AS 42.05.770 is amended to read: 19
	196	+	Sec. 42.05.770. Regulations. The commission shall adopt regulations 20
	197	+	governing electric reliability organizations, reliability standards, and modifications to 21
	198	+	reliability standards consistent with this section. Regulations under AS 42.05.760 - 22
	199	+	42.05.790 must 23
	200	+	(1) require that an electric reliability organization's tariff include 24
	201	+	[(A) STANDARDS FOR] nondiscriminatory standards for 25
	202	+	[OPEN ACCESS TRANSMISSION AND] interconnection; 26
	203	+	[(B) STANDARDS FOR TRANSMISSION SYSTEM COST 27
	204	+	RECOVERY;] 28
	205	+	(2) provide a process to identify and resolve conflicts between a 29
	206	+	reliability standard and a function, rule, tariff, rate schedule, or agreement that has 30
	207	+	been accepted, approved, adopted, or ordered by the commission; 31 33-GH2489\B.A
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	211	+	(3) allow an electric reliability organization to recover its costs through 1
	212	+	surcharges added to the rate for each participating load-serving entity. 2
	213	+	* Sec. 12. AS 42.06.286(a) is amended to read: 3
	214	+	(a) A pipeline carrier operating in the state shall pay to the commission an 4
	215	+	annual regulatory cost charge in an amount not to exceed the sum of the following 5
	216	+	percentages of gross revenue derived from operations in the state: (1) not more than 6
	217	+	.98 [.7] percent to fund the operations of the commission, and (2) not more than .22 7
	218	+	[.17] percent to fund operations of the public advocacy function under 8
	219	+	AS 42.04.070(c) and AS 44.23.020(e) within the Department of Law. A regulatory 9
	220	+	cost charge may not be assessed on pipeline carrier operations unless the operations 10
	221	+	are within the jurisdiction of the commission. 11
	222	+	* Sec. 13. AS 43.98 is amended by adding a new section to read: 12
	223	+	Article 2A. Taxation of New Electricity Generation Facilities. 13
	224	+	Sec. 43.98.100. Taxation of new electricity generation facilities. An 14
	225	+	electricity generation facility that is constructed and placed into service on or after 15
	226	+	July 1, 2024, is not subject to state and local ad valorem, income, and excise taxes if 16
	227	+	the electricity generation facility provides power only to a public utility. In this 17
	228	+	section, "public utility" has the meaning given in AS 42.05.990. 18
	229	+	* Sec. 14. AS 44.83.030 is amended to read: 19
	230	+	Sec. 44.83.030. Membership of the authority. The members of the board of 20
	231	+	directors of the authority [ALASKA ENERGY AUTHORITY] are 21
	232	+	(1) the commissioner of revenue; 22
	233	+	(2) the commissioner of commerce, community, and economic 23
	234	+	development; and 24
	235	+	(3) six public members appointed by the governor as follows: 25
	236	+	(A) one member with expertise or experience in managing 26
	237	+	or operating an electric utility that is not connected to an interconnected 27
	238	+	electric energy transmission network as defined in AS 42.05.790; 28
	239	+	(B) one member with expertise or experience in developing 29
	240	+	energy projects in rural communities; 30
	241	+	(C) one member with expertise or experience in managing 31 33-GH2489\B.A
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	245	+	or operating an electric utility connected to an interconnected electric 1
	246	+	energy transmission network as defined in AS 42.05.790; 2
	247	+	(D) one member with financial expertise in large power 3
	248	+	generation project development; and 4
	249	+	(E) two members with expertise or experience in finance, 5
	250	+	energy policy, energy technology, engineering, law, or economics [THE 6
	251	+	MEMBERS OF THE ALASKA INDUSTRIAL DEVELOPMENT AND 7
	252	+	EXPORT AUTHORITY]. 8
	253	+	* Sec. 15. AS 44.83.030 is amended by adding new subsections to read: 9
	254	+	(b) If the commissioner described in (a)(1) or (2) of this section is unable to 10
	255	+	attend a meeting of the authority, the commissioner may, by an instrument in writing 11
	256	+	filed with the authority, designate a deputy or director to act in the commissioner's 12
	257	+	place as a member of the board at the meeting. For all purposes of this chapter, the 13
	258	+	designee is a member of the board at the meeting. 14
	259	+	(c) Public board members described in (a)(3) of this section serve for three-15
	260	+	year terms. 16
	261	+	(d) If a vacancy occurs in the membership of the board, the governor shall 17
	262	+	immediately appoint a member for the unexpired portion of the term. 18
	263	+	* Sec. 16. AS 44.83.040(a) is amended to read: 19
	264	+	(a) The board of directors of the authority shall elect a chair and vice-chair 20
	265	+	every two years from among its members [OF THE ALASKA INDUSTRIAL 21
	266	+	DEVELOPMENT AND EXPORT AUTHORITY SHALL SERVE AS OFFICERS 22
	267	+	OF THE ALASKA ENERGY AUTHORITY]. The powers of the authority 23
	268	+	[ALASKA ENERGY AUTHORITY] are vested in the board of directors, and five 24
	269	+	board members [FOUR DIRECTORS OF THE AUTHORITY] constitute a quorum. 25
	270	+	Action may be taken and motions and resolutions adopted by the authority 26
	271	+	[ALASKA ENERGY AUTHORITY] at a meeting by the affirmative vote of at least 27
	272	+	five board members [A MAJORITY OF THE DIRECTORS]. The members of the 28
	273	+	board of directors of the authority [ALASKA ENERGY AUTHORITY] serve 29
	274	+	without compensation, but they shall receive the same travel pay and per diem as 30
	275	+	provided by law for board members under AS 39.20.180. 31 33-GH2489\B.A
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	279	+	* Sec. 17. AS 44.83.040 is amended by adding a new subsection to read: 1
	280	+	(e) The authority may, as the authority considers advisable, appoint persons as 2
	281	+	officers, including an executive director, and employ professional advisors, counsel, 3
	282	+	technical experts, agents, and other employees. The executive director and employees 4
	283	+	of the authority are in the exempt service under AS 39.25. 5
	284	+	* Sec. 18. AS 44.83.080 is amended to read: 6
	285	+	Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 7
	286	+	purposes, the authority has the following powers in addition to its other powers: 8
	287	+	(1) to sue and be sued; 9
	288	+	(2) to have a seal and alter it at pleasure; 10
	289	+	(3) to make and alter bylaws for its organization and internal 11
	290	+	management; 12
	291	+	(4) to adopt regulations governing the exercise of its corporate powers; 13
	292	+	(5) to improve, equip, operate, and maintain power projects and bulk 14
	293	+	fuel, waste energy, energy conservation, energy efficiency, and alternative energy 15
	294	+	facilities and equipment; 16
	295	+	(6) to issue bonds to carry out any of its corporate purposes and 17
	296	+	powers, including the establishment or increase of reserves to secure or to pay the 18
	297	+	bonds or interest on them, and the payment of all other costs or expenses of the 19
	298	+	authority incident to and necessary or convenient to carry out its corporate purposes 20
	299	+	and powers; 21
	300	+	(7) to sell, lease as lessor or lessee, exchange, donate, convey, or 22
	301	+	encumber in any manner by mortgage or by creation of any other security interest, real 23
	302	+	or personal property owned by it, or in which it has an interest, when, in the judgment 24
	303	+	of the authority, the action is in furtherance of its corporate purposes; 25
	304	+	(8) to accept gifts, grants, or loans from, and enter into contracts or 26
	305	+	other transactions regarding them, with any person; 27
	306	+	(9) to deposit or invest its funds, subject to agreements with 28
	307	+	bondholders; 29
	308	+	(10) to enter into contracts with the United States or any person and, 30
	309	+	subject to the laws of the United States and subject to concurrence of the legislature, 31 33-GH2489\B.A
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	313	+	with a foreign country or its agencies, for the construction, financing, operation, and 1
	314	+	maintenance of all or any part of a power project or bulk fuel, waste energy, energy 2
	315	+	conservation, energy efficiency, or alternative energy facilities or equipment, either 3
	316	+	inside or outside the state, and for the sale or transmission of power from a project or 4
	317	+	any right to the capacity of it or for the security of any bonds of the authority issued or 5
	318	+	to be issued for the project; 6
	319	+	(11) to enter into contracts with any person and with the United States 7
	320	+	and, subject to the laws of the United States and subject to the concurrence of the 8
	321	+	legislature, with a foreign country or its agencies for the purchase, sale, exchange, 9
	322	+	transmission, or use of power from a project, or any right to the capacity of it; 10
	323	+	(12) to apply to the appropriate agencies of the state, the United States, 11
	324	+	and a foreign country and any other proper agency for the permits, licenses, or 12
	325	+	approvals as may be necessary, to acquire, construct, maintain, and operate power 13
	326	+	projects in accordance with the licenses or permits, and to obtain, hold, and use the 14
	327	+	licenses and permits in the same manner as any other person or operating unit; 15
	328	+	(13) to enter into contracts or agreements with respect to the exercise 16
	329	+	of any of its powers, and do all things necessary or convenient to carry out its 17
	330	+	corporate purposes and exercise the powers granted in this chapter; 18
	331	+	(14) to recommend to the legislature 19
	332	+	(A) the pledge of the credit of the state to guarantee repayment 20
	333	+	of all or any portion of revenue bonds issued to assist in construction of power 21
	334	+	projects; 22
	335	+	(B) an appropriation from the general fund 23
	336	+	(i) for debt service on bonds or other project purposes; 24
	337	+	or 25
	338	+	(ii) to reduce the amount of debt financing for the 26
	339	+	project; 27
	340	+	(15) to carry out the powers and duties assigned to it under AS 42.45 28
	341	+	and AS 44.83.700 - 44.83.720; 29
	342	+	(16) to make grants or loans to any person and enter into contracts or 30
	343	+	other transactions regarding the grants or loans; 31 33-GH2489\B.A
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	346	+
	347	+	(17) to promote energy conservation, energy efficiency, and alternative 1
	348	+	energy through training and public education; 2
	349	+	(18) to acquire a Susitna River power project, whether by construction, 3
	350	+	purchase, gift, or lease, including the acquisition of property rights and interests by 4
	351	+	eminent domain under AS 09; 5
	352	+	(19) to perform feasibility studies and engineering and design with 6
	353	+	respect to power projects; 7
	354	+	(20) to acquire battery and other energy storage systems, whether 8
	355	+	by direct ownership, purchase, grant, gift, or lease. 9
	356	+	* Sec. 19. AS 44.83.090(b) is amended to read: 10
	357	+	(b) The authority is not subject to the jurisdiction of the Regulatory 11
	358	+	Commission of Alaska, except as provided in AS 44.83.700(d). Nothing in this 12
	359	+	chapter, except as provided in AS 44.83.700 - 44.83.720, grants the authority 13
	360	+	jurisdiction over the services or rates of a public utility or diminishes or otherwise 14
	361	+	alters the jurisdiction of the Regulatory Commission of Alaska with respect to a public 15
	362	+	utility, including any right the commission may have to review and approve or 16
	363	+	disapprove contracts for the purchase of electricity by a public utility other than 17
	364	+	wholesale agreements and contracts described in AS 42.05.431(c)(1). 18
	365	+	* Sec. 20. AS 44.83 is amended by adding new sections to read: 19
	366	+	Article 5A. Railbelt Transmission Organization. 20
	367	+	Sec. 44.83.700. Railbelt Transmission Organization. (a) The Railbelt 21
	368	+	Transmission Organization is created for the purpose of establishing an open access 22
	369	+	transmission tariff that 23
	370	+	(1) provides for recovery of transmission costs and related ancillary 24
	371	+	services; and 25
	372	+	(2) replaces wholesale charges assessed by unit by each utility in the 26
	373	+	Railbelt with a new mechanism that fairly recovers and equitably allocates the costs of 27
	374	+	operating the backbone transmission system 28
	375	+	(b) For administrative purposes, the transmission organization is a division of 29
	376	+	the Alaska Energy Authority. 30
	377	+	(c) To assist in administering the open access transmission tariff, the 31 33-GH2489\B.A
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	380	+
	381	+	governance structure for the transmission organization must be made up of 1
	382	+	representatives from the authority, each of the Railbelt utilities, and, as an ex officio 2
	383	+	nonvoting representative, the chief executive officer of the applicable electric 3
	384	+	reliability organization. 4
	385	+	(d) Notwithstanding AS 42.05.711(b) and AS 44.83.090(b), the transmission 5
	386	+	organization is subject to the jurisdiction of the commission for the purposes of 6
	387	+	AS 44.83.700 - 44.83.720. The commission shall require the transmission organization 7
	388	+	to file tariffs to achieve the purposes of AS 44.83.700 - 44.83.720. 8
	389	+	Sec. 44.83.710. Revenue mechanism. (a) The transmission organization shall 9
	390	+	hold and administer a commission-approved open access transmission tariff that 10
	391	+	ensures nondiscriminatory access to the backbone transmission system. 11
	392	+	(b) The transmission organization shall file with the commission a 12
	393	+	transmission cost recovery methodology that ensures the reliability and sufficient 13
	394	+	capacity of the backbone transmission system to support and promote state and 14
	395	+	regional energy policies and a rigorous, dynamic economy. If the transmission 15
	396	+	organization does not file a transmission cost recovery methodology with the 16
	397	+	commission on or before July 1, 2025, the commission shall, after notice and 17
	398	+	opportunity for public comment, establish a transmission cost recovery methodology 18
	399	+	consistent with this section. 19
	400	+	(c) The cost recovery methodology for the transmission organization must, as 20
	401	+	approved by the commission, 21
	402	+	(1) pool backbone transmission system costs and allocate those costs 22
	403	+	through certificated load-serving entities on a coincident peak or load ratio share basis, 23
	404	+	or a combination of both; and 24
	405	+	(2) account for 25
	406	+	(A) required backbone transmission system ancillary services; 26
	407	+	(B) backbone transmission system congestion; 27
	408	+	(C) disruptions to the backbone transmission system that result 28
	409	+	in the isolation of one geographical area of the backbone transmission system 29
	410	+	from another for more than 24 hours; and 30
	411	+	(D) costs to own and operate the backbone transmission 31 33-GH2489\B.A
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	415	+	system, as established by the commission or by contract, including 1
	416	+	transmission costs associated with the Bradley Lake hydroelectric project. 2
	417	+	(d) A Railbelt utility shall pass the commission-approved transmission costs 3
	418	+	directly and transparently to the utility's customers. 4
	419	+	Sec. 44.83.720. Definitions. In AS 44.83.700 - 44.83.720, 5
	420	+	(1) "backbone transmission system" means the transmission assets in 6
	421	+	the Railbelt that facilitate the transmission of electrical power under the standards 7
	422	+	established by the Federal Energy Regulatory Commission; 8
	423	+	(2) "commission" means the Regulatory Commission of Alaska; 9
	424	+	(3) "Railbelt" means the geographic region from the Kenai Peninsula 10
	425	+	to Interior Alaska that is connected to a common electric transmission backbone; 11
	426	+	(4) "Railbelt utility" means a public electric utility certificated to 12
	427	+	operate in the Railbelt that operates backbone transmission system assets; 13
	428	+	(5) "transmission organization" means the Railbelt Transmission 14
	429	+	Organization established by AS 44.83.700. 15
	430	+	* Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 16
	431	+	read: 17
	432	+	REPORT TO THE LEGISLATURE. (a) The Alaska Energy Authority shall, by 18
	433	+	January 1, 2025, submit a report to the legislature that 19
	434	+	(1) evaluates the feasibility of establishing the Railbelt Transmission 20
	435	+	Organization created by AS 44.83.700, added by sec. 20 of this Act, as a special purpose 21
	436	+	entity to issue long-term rate reduction bonds to finance the costs of upgrading and repairing 22
	437	+	transmission infrastructure that supports the backbone transmission system, as defined in 23
	438	+	AS 44.83.720, added by sec. 20 of this Act; 24
	439	+	(2) recommends methods for using a competitive transition charge to retire 25
	440	+	long-term rate reduction bonds; and 26
	441	+	(3) identifies further aspects of a statutory framework needed for rate 27
	442	+	reduction bonds, including recommended statutory provisions. 28
	443	+	(b) The Alaska Energy Authority shall submit the report required 29
	444	+	under (a) of this section to the senate secretary and the chief clerk of the house of 30
	445	+	representatives and notify the legislature that the report is available. 31 33-GH2489\B.A
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	448	+
	449	+	* Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 1
	450	+	read: 2
	451	+	TRANSITION: ALASKA ENERGY AUTHORITY BOARD MEMBERS. 3
	452	+	Notwithstanding AS 44.83.030(c), added by sec. 15 of this Act, the governor shall appoint 4
	453	+	two public members of the initial Alaska Energy Authority board of directors to one-year 5
	454	+	terms, two public members to two-year terms, and two public members to three-year terms. 6
	455	+	* Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 7
	456	+	read: 8
	457	+	TRANSITION: RAILBELT TRANSMISSION ORGANIZATION. The Railbelt 9
	458	+	utilities, as defined in AS 44.83.720, added by sec. 20 of this Act, shall form the Railbelt 10
	459	+	Transmission Organization under AS 44.83.700, added by sec. 20 of this Act, on or before 11
	460	+	January 1, 2025, modeled after the governance structure of the Bradley Lake Hydroelectric 12
	461	+	Project, as outlined in the Bradley Lake Power Sales Agreement, including the creation, 13
	462	+	duties, and methods of the Bradley Lake Project Management Committee, with any 14
	463	+	adjustments the parties to the agreement determine are necessary. On or before January 1, 15
	464	+	2025, the Railbelt Transmission Organization shall file with the Regulatory Commission of 16
	465	+	Alaska a certificate under AS 42.05.221 to achieve the purposes of AS 44.83.700 - 44.83.720, 17
	466	+	added by sec. 20 of this Act. 18
	467	+	* Sec. 24. Sections 4, 5, and 21 of this Act take effect immediately under AS 01.10.070(c). 19
	468	+	* Sec. 25. Except as provided in sec. 24 of this Act, this Act takes effect July 1, 2024. 20