AK
Alaska House Bill HB368

Alaska 2023-2024 Regular Session

Alaska House Bill HB368 Compare Versions

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2-HB0368b -1- CSHB 368(ENE)
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10-CS FOR HOUSE BILL NO. 368(ENE)
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11+ HOUSE BILL NO. 368
1112
1213 IN THE LEGISLATURE OF THE STATE OF ALASKA
1314
1415 THIRTY-THIRD LEGISLATURE - SECOND SESSION
1516
1617 BY THE HOUSE SPECIAL COMMITTEE ON ENERGY
1718
18-Offered: 3/22/24
19-Referred: Finance
19+Introduced: 2/20/24
20+Referred: House Special Committee on Energy, Finance
2021
21-Sponsor(s): HOUSE SPECIAL COMMITTEE ON ENERGY
22+
2223 A BILL
2324
2425 FOR AN ACT ENTITLED
2526
2627 "An Act relating to clean energy standards and a clean energy transferable tax credit; 1
2728 and providing for an effective date." 2
2829 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
2930 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 4
3031 to read: 5
3132 PURPOSE. The purpose of this Act is to establish a clean energy standard that 6
3233 requires certain electric utilities to derive increasing percentages of the utility's net electricity 7
3334 sales from clean energy sources. Nothing in this Act is intended to constitute implementation 8
3435 by the Regulatory Commission of Alaska of the federal Public Utility Regulatory Policies Act 9
3536 of 1978 (16 U.S.C. 2705). 10
3637 * Sec. 2. AS 42.05.381 is amended by adding a new subsection to read: 11
3738 (p) The rate for transmission of clean energy generated from capacity 12
3839 constructed on or after July 1, 2024, to comply with a clean energy standard under 13
39-AS 42.05.900 shall be a uniform transmission services rate, developed by the electric 14 33-LS1170\Y
40-CSHB 368(ENE) -2- HB0368b
40+AS 42.05.900 shall be a uniform transmission services rate, developed by the electric 14 33-LS1170\H
41+HB 368 -2- HB0368a
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4344 reliability organization for the Railbelt, subject to review and approval by the 1
4445 commission. A load-serving entity may not charge more than the uniform transmission 2
4546 services rate for energy transmitted to comply with a clean energy standard under 3
4647 AS 42.05.900. 4
4748 * Sec. 3. AS 42.05.780(a) is amended to read: 5
4849 (a) An electric reliability organization shall file with the commission in a 6
4950 petition for approval an integrated resource plan for meeting the reliability 7
5051 requirements of all customers within its interconnected electric energy transmission 8
5152 network in a manner that provides the greatest value, consistent with the load-serving 9
5253 entities' obligations. An integrated resource plan must contain an evaluation of the full 10
5354 range of cost-effective means for load-serving entities to meet the service 11
5455 requirements of all customers, including additional generation, transmission, battery 12
5556 storage, and conservation or similar improvements in efficiency. An integrated 13
5657 resource plan must include options to meet customers' collective needs in a manner 14
5758 that provides the greatest value, consistent with the public interest, regardless of the 15
5859 location or ownership of new facilities or conservation activities. An integrated 16
5960 resource plan must identify the most cost-effective strategies for the 17
6061 interconnected electric energy transmission network to satisfy the clean energy 18
6162 standard under AS 42.05.900. 19
6263 * Sec. 4. AS 42.05.785(a) is amended to read: 20
6364 (a) A public utility, including a public utility that is exempt from other 21
6465 regulation under AS 42.05.711 or another provision of this chapter, that is 22
6566 interconnected with an interconnected electric energy transmission network served by 23
6667 an electric reliability organization certificated by the commission may not construct a 24
6768 large energy facility unless the commission determines that the facility 25
6869 (1) is necessary to the interconnected electric energy transmission 26
6970 network with which it would be interconnected; 27
7071 (2) complies with reliability standards; [AND] 28
7172 (3) would, in a cost-effective manner, meet the needs of a load-serving 29
7273 entity that is substantially served by the facility; and 30
73-(4) is not detrimental to a load-serving entity's ability to meet the 31 33-LS1170\Y
74-HB0368b -3- CSHB 368(ENE)
74+(4) is not detrimental to a load-serving entity's ability to meet the 31 33-LS1170\H
75+HB0368a -3- HB 368
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7778 clean energy standard under AS 42.05.900. 1
7879 * Sec. 5. AS 42.05 is amended by adding new sections to read: 2
7980 Article 11A. Clean Energy Standard. 3
8081 Sec. 42.05.900. Clean energy standard. (a) A load-serving entity that is 4
8182 subject to the standards of an electric reliability organization under AS 42.05.760 shall 5
8283 comply with the clean energy standard established in this section. Under the clean 6
8384 energy standard, a load-serving entity's portfolio shall include clean energy in the 7
8485 following percentages: 8
8586 (1) 35 percent by December 31, 2036; 9
8687 (2) 60 percent by December 31, 2051. 10
8788 (b) A power purchase agreement entered into between a load-serving entity 11
8889 and a clean energy producer may be included when calculating the load-serving 12
8990 entity's compliance with the clean energy standard required under this section if 13
9091 (1) the effective date of the power purchase agreement is before the 14
9192 end of the compliance period; 15
9293 (2) the power purchase agreement guarantees that the clean electrical 16
9394 energy producer will deliver the clean energy to the load-serving entity not later than 17
9495 two years after the compliance period; and 18
9596 (3) the power purchase agreement is approved by the commission in 19
9697 accordance with AS 42.05.381 and 42.05.431(a) and (b) before the end of the 20
9798 compliance period. 21
9899 (c) A load-serving entity may satisfy the clean energy standard through energy 22
99100 produced by distributed energy systems, regardless of whether the energy is acquired 23
100101 by the load-serving entity or used by the customer. 24
101102 (d) A load-serving entity's compliance with the clean energy standard shall be 25
102103 based on historical data, collected in a manner consistent with industry standards and 26
103104 commission regulations. 27
104105 (e) A load-serving entity shall design and implement an accounting system to 28
105106 verify compliance with the clean energy standard, to ensure that clean energy is 29
106107 counted only once for the purpose of meeting the clean energy standard, and to track 30
107-energy consumption displaced because of energy efficiency investments under (g) of 31 33-LS1170\Y
108-CSHB 368(ENE) -4- HB0368b
108+energy consumption displaced because of energy efficiency investments under (g) of 31 33-LS1170\H
109+HB 368 -4- HB0368a
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111112 this section. The accounting system must be approved by the commission. 1
112113 (f) The commission shall, by regulation, develop a proxy for the ratio of net 2
113114 energy acquired by a load-serving entity at metered intervals to total energy produced 3
114115 from distributed energy systems. Using the proxy, the commission shall determine an 4
115116 estimate of total energy produced by distributed energy systems available to satisfy a 5
116117 load-serving entity's clean energy standard. The commission shall update the proxy 6
117118 developed under this subsection not less than once every five years. 7
118119 (g) A load-serving entity may satisfy the clean energy standard with energy 8
119120 consumption displaced because of energy efficiency investments, including 9
120121 investment in consumer efficiency upgrades, if the displaced consumption is 10
121122 documented by the accounting system required under (e) of this section. 11
122-(h) The commission shall adopt a minimum standard for electric power 12
123-transmission lines sufficient to ensure seamless end-to-end electrical energy 13
124-transmission. A load-serving entity may not increase rates paid by ratepayers to fund 14
125-transmission intertie upgrades required under this subsection, but a load-serving entity 15
126-may increase rates to fund other required transmission line upgrades. Notwithstanding 16
127-AS 42.05.900 - 42.05.935, load-serving entities subject to the standards of an electric 17
128-reliability organization are not subject to the clean energy standard before electric 18
129-power transmission lines in the interconnected electric energy transmission network 19
130-served by the electric reliability organization are upgraded to the minimum standard 20
131-required by this subsection. If the upgrade required under this subsection is not 21
132-completed before December 31, 2026, 22
133-(1) 35 percent of sales in the load-serving entity's portfolio must be 23
134-from clean energy within 10 years after the upgrade is complete; and 24
135-(2) 60 percent of sales must be from clean energy within 25 years after 25
136-the upgrade is complete, or when electric power transmission lines connect the 26
137-interconnected electric energy transmission network in the Railbelt to the service area 27
138-of the Copper Valley Electric Association, whichever is later. 28
139-Sec. 42.05.905. Reporting. (a) Beginning March 1, 2025, a load-serving entity 29
140-subject to the clean energy standard shall submit an annual report to the commission 30
141-that documents the load-serving entity's progress toward satisf
142-ying the clean energy 31 33-LS1170\Y
143-HB0368b -5- CSHB 368(ENE)
123+(h) The commission shall adopt regulations that establish a mechanism for a 12
124+load-serving entity to opt out of the clean energy standard if the commission 13
125+determines that it is impossible for the load-serving entity to comply with the standard 14
126+using current technology without long-term effects on the load-serving entity's rates. 15
127+Regulations adopted by the commission must provide the criteria and procedure for a 16
128+load-serving entity to opt out of each required percentage in (a)(1) and (2) of this 17
129+section. A load-serving entity is not eligible to apply for clean energy transferable tax 18
130+credits under AS 42.05.910 if the entity has opted out of the clean energy standard 19
131+under this subsection. 20
132+(i) The commission shall adopt a minimum standard for electric power 21
133+transmission lines sufficient to ensure seamless end-to-end electrical energy 22
134+transmission. A load-serving entity may not increase rates paid by ratepayers to fund 23
135+transmission intertie upgrades required under this subsection, but a load-serving entity 24
136+may increase rates to fund other required transmission line upgrades. Notwithstanding 25
137+AS 42.05.900 - 42.05.935, load-serving entities subject to the standards of an electric 26
138+reliability organization are not subject to the clean energy standard before electric 27
139+power transmission lines in the interconnected electric energy transmission network 28
140+served by the electric reliability organization are upgraded to the minimum standard 29
141+required by this subsection. If the upgrade required under this subsection is not 30
142+completed before December 31, 2026, 31 33-LS1170\H
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146-standard in the preceding calendar year. The annual report must document the entity's 1
147-total production from distributed energy systems and net electricity sales from clean 2
148-energy for the applicable calendar year and include the information required by the 3
149-commission. 4
150-(b) The commission shall adopt regulations governing the reporting 5
151-requirements to document compliance and minimize the administrative costs and 6
152-burden on a load-serving entity. 7
153-(c) The commission may investigate a load-serving entity's compliance with a 8
154-clean energy standard and collect any information reasonably necessary to verify and 9
155-audit the information provided to the commission by the load-serving entity. 10
156-Sec. 42.05.910. Clean energy transferable tax credits. (a) A load-serving 11
157-entity or independent power producer may apply for the clean energy transferable tax 12
158-credit under AS 43.98.080 in the amount of 0.2 cents for each kilowatt-hour of clean 13
159-energy that is 14
160-(1) produced by the load-serving entity or independent power producer 15
161-at a facility that meets the qualifications in (b) of this section; and 16
162-(2) sold by the load-serving entity or independent power producer to 17
163-an unrelated person during the taxable year. 18
164-(b) A facility qualifies for the clean energy transferable tax credit under this 19
165-section if the facility 20
166-(1) is owned by the load-serving entity or independent power producer; 21
167-(2) is used to generate clean energy; 22
168-(3) is placed into service after the effective date of this section; and 23
169-(4) has been in service for 10 years or less. 24
170-(c) If the owner of a facility places a new generating unit or additional 25
171-generating capacity into service that is used to generate clean energy at the facility 26
172-after the effective date of this section, the owner may apply for the clean energy 27
173-transferable tax credit for 10 years from the date the new unit or additional capacity is 28
174-placed into service, but only to the extent of the increased amount of clean energy 29
175-produced at the facility because of the new unit or additional capacity. 30
176-(d) A school district may apply for the clean energy transferable tax credit 31 33-LS1170\Y
177-CSHB 368(ENE) -6- HB0368b
146+(1) 35 percent of sales in the load-serving entity's portfolio must be 1
147+from clean energy within 10 years after the upgrade is complete; and 2
148+(2) 60 percent of sales must be from clean energy within 25 years after 3
149+the upgrade is complete, or when electric power transmission lines connect the 4
150+interconnected electric energy transmission network in the Railbelt to the service area 5
151+of the Copper Valley Electric Association, whichever is later. 6
152+Sec. 42.05.905. Reporting. (a) Beginning March 1, 2025, a load-serving entity 7
153+subject to the clean energy standard shall submit an annual report to the commission 8
154+that documents the load-serving entity's progress toward satisfying the clean energy 9
155+standard in the preceding calendar year. The annual report must document the entity's 10
156+total production from distributed energy systems and net electricity sales from clean 11
157+energy for the applicable calendar year and include the information required by the 12
158+commission. 13
159+(b) The commission shall adopt regulations governing the reporting 14
160+requirements to document compliance and minimize the administrative costs and 15
161+burden on a load-serving entity. 16
162+(c) The commission may investigate a load-serving entity's compliance with a 17
163+clean energy standard and collect any information reasonably necessary to verify and 18
164+audit the information provided to the commission by the load-serving entity. 19
165+Sec. 42.05.910. Clean energy transferable tax credits. (a) A load-serving 20
166+entity may apply for the clean energy transferable tax credit under AS 43.98.080 in the 21
167+amount of 0.2 cents for each kilowatt-hour of clean energy that is 22
168+(1) produced by the load-serving entity at a facility that meets the 23
169+qualifications in (b) of this section; and 24
170+(2) sold by the load-serving entity to an unrelated person during the 25
171+taxable year. 26
172+(b) A facility qualifies for the clean energy transferable tax credit under this 27
173+section if the facility 28
174+(1) is owned by the load-serving entity; 29
175+(2) is used to generate clean energy; 30
176+(3) is placed into service after the effective date of this section; and 31 33-LS1170\H
177+HB 368 -6- HB0368a
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180-under AS 43.98.080 for clean energy produced from a distributed energy system that 1
181-is located on property owned by the school district and that meets the qualifications in 2
182-(b)(2) - (4) of this section, regardless of whether the energy is sold to an unrelated 3
183-person. A school district is entitled to the same amount of credit as a load-serving 4
184-entity under this section for the number of kilowatt-hours of clean energy produced by 5
185-the school district's distributed energy system. In this subsection, "school district" 6
186-means a city or borough school district or regional educational attendance area. 7
187-(e) The owner of a facility that qualifies for a clean energy transferable tax 8
188-credit under (b) of this section and produces clean energy for an electric utility that 9
189-receives power cost equalization under AS 42.45.100 - 42.45.150 is eligible for an 10
190-increased clean energy transferable tax credit in the amount of an additional one cent 11
191-for each kilowatt-hour of clean energy that meets the requirements in (a) of this 12
192-section and is produced for the electric utility. The owner of the facility may be the 13
193-electric utility. In this subsection, "electric utility" has the meaning given in 14
194-AS 42.45.150. 15
195-Sec. 42.05.915. Waiver. (a) The commission may waive the requirement that a 16
196-load-serving entity comply with the clean energy standard if, after notice and 17
197-opportunity for a hearing, the commission determines that a load-serving entity is 18
198-unable to meet the clean energy standard because of reasons outside the reasonable 19
199-control of the load-serving entity as set out in (b) of this section or the entity 20
200-establishes a good cause as set out in (c) of this section. The commission may grant a 21
201-waiver under this section for a period of not longer than five years. 22
202-(b) The following events or circumstances are outside of a load-serving 23
203-entity's reasonable control: 24
204-(1) weather-related damage; 25
205-(2) natural disasters; 26
206-(3) failure of clean energy producers to meet contractual obligations to 27
207-the load-serving entity; 28
208-(4) transmission network constraint that prevents the load-serving 29
209-entity from partially or fully using clean energy for net electricity sales; 30
210-(5) global pandemics; and 31 33-LS1170\Y
211-HB0368b -7- CSHB 368(ENE)
180+(4) has been in service for 10 years or less. 1
181+Sec. 42.05.915. Waiver. (a) The commission may waive the requirement that a 2
182+load-serving entity comply with the clean energy standard if, after notice and 3
183+opportunity for a hearing, the commission determines that a load-serving entity is 4
184+unable to meet the clean energy standard because of reasons outside the reasonable 5
185+control of the load-serving entity as set out in (b) of this section or the entity 6
186+establishes a good cause as set out in (c) of this section. The commission may grant a 7
187+waiver under this section for a period of not longer than five years. 8
188+(b) The following events or circumstances are outside of a load-serving 9
189+entity's reasonable control: 10
190+(1) weather-related damage; 11
191+(2) natural disasters; 12
192+(3) failure of clean energy producers to meet contractual obligations to 13
193+the load-serving entity; 14
194+(4) transmission network constraint that prevents the load-serving 15
195+entity from partially or fully using clean energy for net electricity sales; 16
196+(5) global pandemics; and 17
197+(6) acts of war. 18
198+(c) The following factors may establish good cause for a waiver: 19
199+(1) the actions taken by the load-serving entity to procure the clean 20
200+energy; 21
201+(2) the extent of good faith efforts by the load-serving entity to 22
202+comply; 23
203+(3) the lack of past failures to comply; 24
204+(4) the likelihood and amount of future clean energy to be procured by 25
205+the load-serving entity; 26
206+(5) the effect of the noncompliance fine on the load-serving entity 27
207+considering the size or ownership of the load-serving entity; 28
208+(6) the good faith effort by the load-serving entity to meet the clean 29
209+energy standard after an event or circumstance enumerated in (b) of this section. 30
210+(d) A load-serving entity is not eligible to apply for the clean energy 31 33-LS1170\H
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214-(6) acts of war. 1
215-(c) The following factors may establish good cause for a waiver: 2
216-(1) the actions taken by the load-serving entity to procure the clean 3
217-energy; 4
218-(2) the extent of good faith efforts by the load-serving entity to 5
219-comply; 6
220-(3) the lack of past failures to comply; 7
221-(4) the likelihood and amount of future clean energy to be procured by 8
222-the load-serving entity; 9
223-(5) the effect of the noncompliance fine on the load-serving entity 10
224-considering the size or ownership of the load-serving entity; 11
225-(6) the good faith effort by the load-serving entity to meet the clean 12
226-energy standard after an event or circumstance enumerated in (b) of this section. 13
227-Sec. 42.05.920. Exemptions. (a) A load-serving entity is exempt from 14
228-compliance with the clean energy standard if the aggregate net electricity sales for all 15
229-load-serving entities on the interconnected electric energy transmission network meets 16
230-or exceeds the aggregate clean energy standard for all load-serving entities on the 17
231-interconnected electric energy transmission network. 18
232-(b) If an exemption under (a) of this section does not apply, a load-serving 19
233-entity is exempt from its first noncompliance with a clean energy standard. 20
234-Sec. 42.05.925. Net billing. (a) A load-serving entity subject to the clean 21
235-energy standard shall credit in a tariff the account of a retail customer for the number 22
236-of kilowatt-hours, at the export credit rate set by the commission in accordance with 23
237-(b) of this section, of electric energy supplied by the customer's distributed energy 24
238-system to the load-serving entity. The tariff may not limit the aggregate capacity that 25
239-customers may install unless the commission, after a hearing, finds that capacity 26
240-limitation is necessary to protect system reliability. 27
241-(b) The commission shall by regulation establish a method to determine 28
242-annually the amount of a reasonable seasonal and time variant export credit rate for 29
243-electric energy supplied to a load-serving entity by a customer's distributed energy 30
244-system. In determining the export credit rate, the commission may consider any 31 33-LS1170\Y
245-CSHB 368(ENE) -8- HB0368b
214+transferable tax credit under AS 42.05.910 while a waiver under this section is in 1
215+effect. 2
216+Sec. 42.05.920. Exemptions. (a) A load-serving entity is exempt from 3
217+compliance with the clean energy standard if the aggregate net electricity sales for all 4
218+load-serving entities on the interconnected electric energy transmission network meets 5
219+or exceeds the aggregate clean energy standard for all load-serving entities on the 6
220+interconnected electric energy transmission network. 7
221+(b) If an exemption under (a) of this section does not apply, a load-serving 8
222+entity is exempt from its first noncompliance with a clean energy standard. 9
223+Sec. 42.05.925. Net billing. (a) A load-serving entity subject to the clean 10
224+energy standard shall credit in a tariff the account of a retail customer for the number 11
225+of kilowatt-hours, at the export credit rate set by the commission in accordance with 12
226+(b) of this section, of electric energy supplied by the customer's distributed energy 13
227+system to the load-serving entity. The tariff may not limit the aggregate capacity that 14
228+customers may install unless the commission, after a hearing, finds that capacity 15
229+limitation is necessary to protect system reliability. 16
230+(b) The commission shall by regulation establish a method to determine 17
231+annually the amount of a reasonable seasonal and time variant export credit rate for 18
232+electric energy supplied to a load-serving entity by a customer's distributed energy 19
233+system. In determining the export credit rate, the commission may consider any 20
234+relevant factors, including avoided costs of load-serving entities. 21
235+Sec. 42.05.930. Additional clean energy resources. At least once every five 22
236+years, the Alaska Energy Authority shall submit a report to the legislature identifying 23
237+whether the authority recommends that the legislature add any available technologies 24
238+to the definition of "clean energy" in AS 42.05.935 for purposes of complying with the 25
239+clean energy standard. The authority shall submit a report required under this section 26
240+to the senate secretary and the chief clerk of the house of representatives and notify the 27
241+legislature that the report is available. 28
242+Sec. 42.05.935. Definitions. In AS 42.05.900 - 42.05.935, 29
243+(1) "clean energy" means electrical energy that 30
244+(A) when generated by a load-serving entity, does not release 31 33-LS1170\H
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248-relevant factors, including avoided costs of load-serving entities. 1
249-Sec. 42.05.930. Additional clean energy resources. At least once every five 2
250-years, the Alaska Energy Authority shall submit a report to the legislature identifying 3
251-whether the authority recommends that the legislature add any available technologies 4
252-to the definition of "clean energy" in AS 42.05.935 for purposes of complying with the 5
253-clean energy standard. The authority shall submit a report required under this section 6
254-to the senate secretary and the chief clerk of the house of representatives and notify the 7
255-legislature that the report is available. 8
256-Sec. 42.05.935. Definitions. In AS 42.05.900 - 42.05.935, 9
257-(1) "clean energy" means electrical energy that 10
258-(A) when generated by a load-serving entity, does not release 11
259-carbon dioxide or releases carbon dioxide in an amount that is offset by the 12
260-amount of carbon dioxide the load-serving entity absorbs or removes from the 13
261-atmosphere; 14
262-(B) is generated from coal with a sulfur content of one percent 15
263-or less by weight; 16
264-(C) is generated from renewable energy resources; or 17
265-(D) is generated from nuclear energy; 18
266-(2) "clean energy standard" means the required percentage of a load-19
267-serving entity's net electrical energy sales to customers in the entity's service area that 20
268-is represented by clean energy as required under AS 42.05.900; 21
269-(3) "compliance period" means each period identified in 22
270-AS 42.05.900(a) or (h); 23
271-(4) "distributed energy system" means a renewable energy resource 24
272-that is located on any property owned or leased by a customer within the service 25
273-territory of the load-serving entity that is interconnected on the customer's side of the 26
274-utility meter; 27
275-(5) "independent power producer" means a person, other than a load-28
276-serving entity, that owns or operates a facility for the generation of electricity for use 29
277-primarily by the public; 30
278-(6) "interconnected electric energy transmission network" has the 31 33-LS1170\Y
279-HB0368b -9- CSHB 368(ENE)
248+carbon dioxide or releases carbon dioxide in an amount that is offset by the 1
249+amount of carbon dioxide the load-serving entity absorbs or removes from the 2
250+atmosphere; 3
251+(B) is generated from coal with a sulfur content of one percent 4
252+or less by weight; 5
253+(C) is generated from renewable energy resources; or 6
254+(D) is generated from nuclear energy; 7
255+(2) "clean energy standard" means the required percentage of a load-8
256+serving entity's net electrical energy sales to customers in the entity's service area that 9
257+is represented by clean energy as required under AS 42.05.900; 10
258+(3) "compliance period" means each period identified in 11
259+AS 42.05.900(a) or (i); 12
260+(4) "distributed energy system" means a renewable energy resource 13
261+that is located on any property owned or leased by a customer within the service 14
262+territory of the load-serving entity that is interconnected on the customer's side of the 15
263+utility meter; 16
264+(5) "interconnected electric energy transmission network" has the 17
265+meaning given in AS 42.05.790; 18
266+(6) "load-serving entity" has the meaning given in AS 42.05.790; 19
267+(7) "Railbelt" means the geographic region from the Kenai Peninsula 20
268+to Interior Alaska that is connected to a common electric transmission backbone; 21
269+(8) "renewable energy resource" means a resource, other than 22
270+petroleum, natural gas, or coal, that naturally replenishes over a human, not a 23
271+geological, time frame, is ultimately derived from solar power, water power, or wind 24
272+power, comes from the sun or from thermal inertia of the earth, and minimizes the 25
273+output of toxic material in the conversion of the energy; in this paragraph, "resource" 26
274+includes 27
275+(A) solar and solar thermal energy, wind energy, and kinetic 28
276+energy of moving water, including 29
277+(i) waves, tides, or currents; 30
278+(ii) run-of-river hydropower, in-river hydrokinetic; 31 33-LS1170\H
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282-meaning given in AS 42.05.790; 1
283-(7) "load-serving entity" has the meaning given in AS 42.05.790; 2
284-(8) "Railbelt" means the geographic region from the Kenai Peninsula 3
285-to Interior Alaska that is connected to a common electric transmission backbone; 4
286-(9) "renewable energy resource" means a resource, other than 5
287-petroleum, natural gas, or coal, that naturally replenishes over a human, not a 6
288-geological, time frame, is ultimately derived from solar power, water power, or wind 7
289-power, comes from the sun or from thermal inertia of the earth, and minimizes the 8
290-output of toxic material in the conversion of the energy; in this paragraph, "resource" 9
291-includes 10
292-(A) solar and solar thermal energy, wind energy, and kinetic 11
293-energy of moving water, including 12
294-(i) waves, tides, or currents; 13
295-(ii) run-of-river hydropower, in-river hydrokinetic; 14
296-(iii) conventional hydropower, lake tap hydropower; 15
297-(iv) water released through a dam; and 16
298-(v) geothermal energy; 17
299-(B) waste to energy systems, including 18
300-(i) wood; 19
301-(ii) landfill gas produced by municipal solid waste or 20
302-fuel that has been manufactured in whole or significant part from 21
303-waste; 22
304-(iii) biofuels produced in the state; and 23
305-(iv) thermal energy produced from a geothermal heat 24
306-pump using municipal solid waste, including biogenic and 25
307-anthropogenic factions; 26
308-(10) "transmission network constraint" means a lack of transmission 27
309-line capacity to deliver electricity without exceeding thermal, voltage, and stability 28
310-limits designed to ensure reliability of the interconnected electric energy transmission 29
311-network. 30
312- * Sec. 6. AS 42.45.110(a) is amended to read: 31 33-LS1170\Y
313-CSHB 368(ENE) -10- HB0368b
282+(iii) conventional hydropower, lake tap hydropower; 1
283+(iv) water released through a dam; and 2
284+(v) geothermal energy; 3
285+(B) waste to energy systems, including 4
286+(i) wood; 5
287+(ii) landfill gas produced by municipal solid waste or 6
288+fuel that has been manufactured in whole or significant part from 7
289+waste; 8
290+(iii) biofuels produced in the state; and 9
291+(iv) thermal energy produced from a geothermal heat 10
292+pump using municipal solid waste, including biogenic and 11
293+anthropogenic factions; 12
294+(9) "transmission network constraint" means a lack of transmission 13
295+line capacity to deliver electricity without exceeding thermal, voltage, and stability 14
296+limits designed to ensure reliability of the interconnected electric energy transmission 15
297+network. 16
298+ * Sec. 6. AS 42.45.110(a) is amended to read: 17
299+(a) The costs used to calculate the amount of power cost equalization for all 18
300+electric utilities eligible under AS 42.45.100 - 42.45.150 include all allowable costs, 19
301+except return on equity, used by the commission to determine the revenue requirement 20
302+for electric utilities subject to rate regulation under AS 42.05. The costs used in 21
303+determining the power cost equalization per kilowatt-hour shall exclude any other type 22
304+of assistance that reduces the customer's costs of power on a kilowatt-hour basis and 23
305+that is provided to the electric utility within 60 days before the commission determines 24
306+the power cost equalization per kilowatt-hour of the electric utility. In calculating 25
307+power cost equalization, the commission may not consider validated costs or kilowatt-26
308+hour sales associated with a United States Department of Defense facility or revenue 27
309+from the sale of recovered heat. 28
310+ * Sec. 7. AS 43.98 is amended by adding a new section to read: 29
311+Article 5. Clean Energy Transferable Tax Credit. 30
312+Sec. 43.98.080. Clean energy transferable tax credit. (a) The department 31 33-LS1170\H
313+HB 368 -10- HB0368a
314314 New Text Underlined [DELETED TEXT BRACKETED]
315315
316-(a) The costs used to calculate the amount of power cost equalization for all 1
317-electric utilities eligible under AS 42.45.100 - 42.45.150 include all allowable costs, 2
318-except return on equity, used by the commission to determine the revenue requirement 3
319-for electric utilities subject to rate regulation under AS 42.05. The costs used in 4
320-determining the power cost equalization per kilowatt-hour shall exclude any other type 5
321-of assistance that reduces the customer's costs of power on a kilowatt-hour basis and 6
322-that is provided to the electric utility within 60 days before the commission determines 7
323-the power cost equalization per kilowatt-hour of the electric utility. In calculating 8
324-power cost equalization, the commission may not consider validated costs or kilowatt-9
325-hour sales associated with a United States Department of Defense facility or revenue 10
326-from the sale of recovered heat. 11
327- * Sec. 7. AS 43.98 is amended by adding a new section to read: 12
328-Article 5. Clean Energy Transferable Tax Credit. 13
329-Sec. 43.98.080. Clean energy transferable tax credit. (a) The department 14
330-shall provide a clean energy transferable tax credit certificate for qualified clean 15
331-energy production under AS 42.05.910. The department shall publish the name and 16
332-contact information for each person provided a clean energy transferable tax credit 17
333-certificate under this subsection. 18
334-(b) A clean energy transferable tax credit certificate may be sold, assigned, 19
335-exchanged, conveyed, or otherwise transferred in whole or in part. 20
336-(c) A taxpayer acquiring a clean energy transferable tax credit certificate may 21
337-use the credit or a portion of the credit to offset taxes imposed under AS 10.25 and this 22
338-title. Except as provided in (e) of this section, any portion of the credit not used may 23
339-be used at a later period or transferred under (b) of this section. 24
340-(d) The department shall adopt regulations necessary for the administration of 25
341-this section. 26
342-(e) A clean energy transferable tax credit certificate, whether sold, assigned, 27
343-exchanged, conveyed, or otherwise transferred, in whole or in part, must be used 28
344-within five years after being provided by the department. 29
345-(f) A clean energy transferable tax credit certificate may not be applied to 30
346-reduce a person's tax liability to below zero. 31 33-LS1170\Y
347-HB0368b -11- CSHB 368(ENE)
316+shall provide a clean energy transferable tax credit certificate to a load-serving entity, 1
317+as defined in AS 42.05.790, for qualified clean energy production under 2
318+AS 42.05.910. The department shall publish the name and contact information for 3
319+each person provided a clean energy transferable tax credit certificate under this 4
320+subsection. 5
321+(b) A clean energy transferable tax credit certificate may be sold, assigned, 6
322+exchanged, conveyed, or otherwise transferred in whole or in part. 7
323+(c) A taxpayer acquiring a clean energy transferable tax credit certificate may 8
324+use the credit or a portion of the credit to offset taxes imposed under AS 10.25 and this 9
325+title. Except as provided in (e) of this section, any portion of the credit not used may 10
326+be used at a later period or transferred under (b) of this section. 11
327+(d) The department shall adopt regulations necessary for the administration of 12
328+this section. 13
329+(e) A clean energy transferable tax credit certificate, whether sold, assigned, 14
330+exchanged, conveyed, or otherwise transferred, in whole or in part, must be used 15
331+within five years after being provided by the department. 16
332+(f) A clean energy transferable tax credit certificate may not be applied to 17
333+reduce a person's tax liability to below zero. 18
334+(g) A person acquiring two or more clean energy transferable tax credit 19
335+certificates may combine the unused amounts of the credits for sale, assignment, 20
336+exchange, conveyance, or other transfer. At the request of a person holding a clean 21
337+energy transferable tax credit, the department shall replace a certificate that represents 22
338+the full amount of tax credits available with multiple certificates that each represent a 23
339+portion of the total tax credits available for the purpose of sale, assignment, exchange, 24
340+conveyance, or other transfer under this subsection or, upon request, shall provide one 25
341+tax credit certificate that represents the combined value of multiple tax credit 26
342+certificates. A tax credit certificate replaced or provided by the department under this 27
343+subsection must state the expiration date and the amount of each credit that is included 28
344+in the certificate. Combining or splitting unused amounts of credits under this 29
345+subsection does not change or extend the period in which each credit that is included 30
346+in the combination or split must be used. 31 33-LS1170\H
347+HB0368a -11- HB 368
348348 New Text Underlined [DELETED TEXT BRACKETED]
349349
350-(g) A person acquiring two or more clean energy transferable tax credit 1
351-certificates may combine the unused amounts of the credits for sale, assignment, 2
352-exchange, conveyance, or other transfer. At the request of a person holding a clean 3
353-energy transferable tax credit, the department shall replace a certificate that represents 4
354-the full amount of tax credits available with multiple certificates that each represent a 5
355-portion of the total tax credits available for the purpose of sale, assignment, exchange, 6
356-conveyance, or other transfer under this subsection or, upon request, shall provide one 7
357-tax credit certificate that represents the combined value of multiple tax credit 8
358-certificates. A tax credit certificate replaced or provided by the department under this 9
359-subsection must state the expiration date and the amount of each credit that is included 10
360-in the certificate. Combining or splitting unused amounts of credits under this 11
361-subsection does not change or extend the period in which each credit that is included 12
362-in the combination or split must be used. 13
363- * Sec. 8. AS 44.83.940 is amended by adding a new subsection to read: 14
364-(b) Not later than the first day of the first regular session of each legislature, 15
365-the authority shall submit a report to the senate secretary and chief clerk of the house 16
366-of representatives and notify the legislature that the report is available. The report 17
367-must identify the authority's progress in developing clean energy in rural regions of 18
368-the state, evaluate clean energy development in rural regions, identify infrastructure 19
369-necessary for rural clean energy projects, and evaluate the feasibility and cost of rural 20
370-clean energy projects. 21
371- * Sec. 9. This Act takes effect July 1, 2024. 22
350+ * Sec. 8. AS 44.83.940 is amended by adding a new subsection to read: 1
351+(b) Not later than the first day of the first regular session of each legislature, 2
352+the authority shall submit a report to the senate secretary and chief clerk of the house 3
353+of representatives and notify the legislature that the report is available. The report 4
354+must identify the authority's progress in developing clean energy in rural regions of 5
355+the state, evaluate clean energy development in rural regions, identify infrastructure 6
356+necessary for rural clean energy projects, and evaluate the feasibility and cost of rural 7
357+clean energy projects. 8
358+ * Sec. 9. This Act takes effect July 1, 2024. 9