Alaska 2025-2026 Regular Session

Alaska Senate Bill SB149 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	SB0149ASB0149A -1- SB 149SB 149
3	3	New Text Underlined [DELETED TEXT BRACKETED]
4	4
5	5	34-LS0627\N
6	6
7	7
8	8
9	9
10	10
11	11	SENATE BILL NO. 149
12	12
13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
16	16
17	17	BY SENATOR WIELECHOWSKI
18	18
19	19	Introduced: 3/28/25
20	20	Referred: Labor and Commerce, Resources
21	21
22	22
23	23	A BILL
24	24
25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act relating to generation of electricity from renewable energy resources; relating 1
28	28	to a renewable portfolio standard; relating to power cost equalization; and providing for 2
29	29	an effective date." 3
30	30	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
31	31	* Section 1. AS 42.05.780(a) is amended to read: 5
32	32	(a) An electric reliability organization shall file with the commission in a 6
33	33	petition for approval an integrated resource plan for meeting the reliability 7
34	34	requirements of all customers within its interconnected electric energy transmission 8
35	35	network in a manner that provides the greatest value, consistent with the load-serving 9
36	36	entities' obligations. An integrated resource plan must contain an evaluation of the full 10
37	37	range of cost-effective means for load-serving entities to meet the service 11
38	38	requirements of all customers, including additional generation, transmission, battery 12
39	39	storage, and conservation or similar improvements in efficiency. An integrated 13
40	40	resource plan must include options to meet customers' collective needs in a manner 14 34-LS0627\N
41	41	SB 149SB 149 -2- SB0149ASB0149A
42	42	New Text Underlined [DELETED TEXT BRACKETED]
43	43
44	44	that provides the greatest value, consistent with the public interest, regardless of the 1
45	45	location or ownership of new facilities or conservation activities. An integrated 2
46	46	resource plan must include options for satisfying the renewable portfolio 3
47	47	standard under AS 42.05.900. 4
48	48	* Sec. 2. AS 42.05.785(a) is amended to read: 5
49	49	(a) A public utility, including a public utility that is exempt from other 6
50	50	regulation under AS 42.05.711 or another provision of this chapter, that is 7
51	51	interconnected with an interconnected electric energy transmission network served by 8
52	52	an electric reliability organization certificated by the commission may not construct a 9
53	53	large energy facility unless the commission determines that the facility 10
54	54	(1) is necessary to the interconnected electric energy transmission 11
55	55	network with which it would be interconnected; 12
56	56	(2) complies with reliability standards; [AND] 13
57	57	(3) would, in a cost-effective manner, meet the needs of a load-serving 14
58	58	entity that is substantially served by the facility; and 15
59	59	(4) is not detrimental to a load-serving entity's ability to meet the 16
60	60	renewable portfolio standard under AS 42.05.900. 17
61	61	* Sec. 3. AS 42.05.785(c) is amended to read: 18
62	62	(c) The commission may not require preapproval for a 19
63	63	(1) project for refurbishment or capitalized maintenance; 20
64	64	(2) hydropower project licensed by the Federal Energy Regulatory 21
65	65	Commission before September 30, 2016; 22
66	66	(3) project that generates electricity from a renewable energy 23
67	67	resource and helps a load-serving entity meet the renewable portfolio standard 24
68	68	under AS 42.05.900. 25
69	69	* Sec. 4. AS 42.05.785(e) is amended to read: 26
70	70	(e) In this section, 27
71	71	(1) "large energy facility" means 28
72	72	(A) [(1)] an electric power generating plant or combination of 29
73	73	plants at a single site with a combined capacity of 15,000 kilowatts or more 30
74	74	with transmission lines that directly interconnect the plant with the 31 34-LS0627\N
75	75	SB0149ASB0149A -3- SB 149SB 149
76	76	New Text Underlined [DELETED TEXT BRACKETED]
77	77
78	78	transmission system; 1
79	79	(B) [(2)] a high-voltage, above-ground transmission line that 2
80	80	(i) [(A)] has a capacity of 69 kilovolts or more; and 3
81	81	(ii) [(B)] is longer than 10 miles; 4
82	82	(C) [(3)] a high-voltage submarine or underground cable that 5
83	83	(i) [(A)] has a capacity of 69 kilovolts or more; and 6
84	84	(ii) [(B)] is longer than three miles; 7
85	85	(D) [(4)] an energy storage device or combination of devices at 8
86	86	a single site with a combined capacity of 15,000 kilowatts and one hour or 9
87	87	more of energy storage that directly connects with the interconnected bulk-10
88	88	electric system; and 11
89	89	(E) [(5)] a reactive compensation device or combination of 12
90	90	devices at a single site with a combined reactive capability of 15,000 kilovars 13
91	91	or more with a step-up device to regulate interconnected bulk-electric system 14
92	92	voltage; 15
93	93	(2) "renewable energy resource" has the meaning given in 16
94	94	AS 42.05.925. 17
95	95	* Sec. 5. AS 42.05 is amended by adding new sections to read: 18
96	96	Article 11A. Renewable Portfolio Standard. 19
97	97	Sec. 42.05.900. Renewable portfolio standard. The portfolio of a load-20
98	98	serving entity that is subject to the standards of an electric reliability organization 21
99	99	under AS 42.05.760 must include megawatt hours of electricity generated from 22
100	100	renewable energy resources, adjusted according to AS 42.05.905, in the following 23
101	101	percentages: 24
102	102	(1) 40 percent by December 31, 2030; 25
103	103	(2) 55 percent by December 31, 2035. 26
104	104	Sec. 42.05.905. Compliance incentives. (a) To calculate a load-serving 27
105	105	entity's compliance with the renewable portfolio standard, the megawatt hours of 28
106	106	electricity from a project that generates electricity from wind energy are multiplied by 29
107	107	a factor of 1.25 if 30
108	108	(1) the project is operational before January 1, 2033; 31 34-LS0627\N
109	109	SB 149SB 149 -4- SB0149ASB0149A
110	110	New Text Underlined [DELETED TEXT BRACKETED]
111	111
112	112	(2) the project has a nameplate generation capacity of at least 100 1
113	113	megawatts; and 2
114	114	(3) more than one load-serving entity acquires electricity production 3
115	115	from the project and each entity acquires at least the entity's load ratio share or 20 4
116	116	percent of the project's energy output, whichever is less; in this paragraph, "load ratio 5
117	117	share" means a percentage calculated by dividing a load-serving entity's total retail 6
118	118	electricity sales by the sum of retail electricity sales from all load-serving entities that 7
119	119	acquire electricity from the project. 8
120	120	(b) A load-serving entity may satisfy the renewable portfolio standard through 9
121	121	megawatt hours of electricity generated by distributed energy systems, multiplied by a 10
122	122	factor of 2.0, regardless of whether the electricity is acquired by the load-serving 11
123	123	entity or used by the customer. Each load-serving entity shall file a tariff with the 12
124	124	commission that establishes and justifies the average capacity factor for each 13
125	125	distributed energy system technology connected to the interconnected electric energy 14
126	126	transmission network within the entity's service area. 15
127	127	(c) A load-serving entity may satisfy the renewable portfolio standard through 16
128	128	renewable electricity credits that qualify as part of the load-serving entity's portfolio 17
129	129	under AS 42.05.910. 18
130	130	(d) A load-serving entity may satisfy the renewable portfolio standard with 19
131	131	electricity consumption displaced because of investments in energy efficiency 20
132	132	technologies made in whole or in part with payments under AS 42.05.915(g), if the 21
133	133	displaced consumption is documented under a program established by the state. 22
134	134	Sec. 42.05.910. Renewable electricity credits. (a) To qualify as part of a load-23
135	135	serving entity's portfolio, a renewable electricity credit must be from generation 24
136	136	connected to the same interconnected electric energy transmission network that serves 25
137	137	the load-serving entity's customers or must be purchased from generation located 26
138	138	within the service area of an electric utility that serves customers who receive power 27
139	139	cost equalization under AS 42.45.100 - 42.45.150. 28
140	140	(b) A renewable electricity credit may be used only once. A renewable 29
141	141	electricity credit expires one year after it was created. 30
142	142	(c) A load-serving entity shall track the life cycle of a renewable electricity 31 34-LS0627\N
143	143	SB0149ASB0149A -5- SB 149SB 149
144	144	New Text Underlined [DELETED TEXT BRACKETED]
145	145
146	146	credit created, transferred, or used by the load-serving entity. Each load-serving entity 1
147	147	is responsible for demonstrating that a renewable electricity credit used to comply 2
148	148	with the renewable portfolio standard is derived from a renewable energy resource and 3
149	149	that the renewable electricity credit has not been previously used or transferred. 4
150	150	(d) A renewable electricity credit may be traded, sold, or otherwise transferred 5
151	151	for value. A load-serving entity that transfers a renewable electricity credit may not 6
152	152	use the renewable electricity associated with the transferred credit to comply with the 7
153	153	renewable portfolio standard. 8
154	154	Sec. 42.05.915. Noncompliance fine; waiver. (a) A load-serving entity that 9
155	155	fails to meet the renewable portfolio standard is subject to a noncompliance fine for 10
156	156	each year that the entity fails to meet the renewable portfolio standard. After notice 11
157	157	and an opportunity for hearing, the commission may impose a fine of $45 for every 12
158	158	megawatt hour that the entity is below the renewable portfolio standard. The 13
159	159	commission shall increase the dollar amount of the noncompliance fine under this 14
160	160	subsection annually by a percentage equal to the average percentage increase over the 15
161	161	prior calendar year in all items of the Consumer Price Index for all urban consumers 16
162	162	for urban Alaska prepared by the United States Department of Labor, Bureau of Labor 17
163	163	Statistics. A load-serving entity shall itemize the effect of a noncompliance fine on the 18
164	164	entity's monthly customer bills. 19
165	165	(b) The commission shall waive all or part of a load-serving entity's 20
166	166	noncompliance fine to the extent that the load-serving entity 21
167	167	(1) has entered into a power purchase agreement for renewable 22
168	168	electricity before the next compliance period; 23
169	169	(2) begins receiving renewable electricity under the power purchase 24
170	170	agreement not later than two years after the prior compliance period; and 25
171	171	(3) files with the commission an annual estimate of the megawatt 26
172	172	hours the load-serving entity expects to receive from the power purchase agreement 27
173	173	that contribute to compliance with the renewable portfolio standard; if the megawatt 28
174	174	hours of renewable electricity received by the load-serving entity within two years 29
175	175	after the prior compliance period falls below the amount estimated under this 30
176	176	paragraph, the load-serving entity is subject to a retroactive noncompliance fine. 31 34-LS0627\N
177	177	SB 149SB 149 -6- SB0149ASB0149A
178	178	New Text Underlined [DELETED TEXT BRACKETED]
179	179
180	180	(c) If electricity transmission constraints prevent delivery of renewable 1
181	181	electricity that a load-serving entity is obligated to purchase from a third party, the 2
182	182	megawatt hours of undelivered renewable electricity, adjusted according to 3
183	183	AS 42.05.905, count toward the load-serving entity's compliance with the renewable 4
184	184	portfolio standard. 5
185	185	(d) The commission may waive the noncompliance fine in whole or in part if 6
186	186	the commission determines that a load-serving entity is unable to meet the renewable 7
187	187	portfolio standard because of reasons outside the reasonable control of the load-8
188	188	serving entity as set out in (e) of this section, or the entity establishes good cause for 9
189	189	noncompliance as set out in (f) of this section. 10
190	190	(e) The following events or circumstances are outside of a load-serving 11
191	191	entity's reasonable control: 12
192	192	(1) weather-related damage to generation or transmission assets; 13
193	193	(2) natural disasters; 14
194	194	(3) failure of renewable electricity producers to meet contractual 15
195	195	obligations to the load-serving entity; 16
196	196	(4) lower than reasonably expected electricity production at a project 17
197	197	that generates electricity from a renewable energy resource if the lower electricity 18
198	198	production is caused by variation in renewable energy resource availability; 19
199	199	(5) global pandemics; and 20
200	200	(6) acts of war. 21
201	201	(f) The following factors may establish good cause for noncompliance: 22
202	202	(1) the extent of good faith efforts by the load-serving entity to 23
203	203	comply, including the actions taken by the load-serving entity to procure the 24
204	204	renewable electricity and the lack of past failures to comply; 25
205	205	(2) the likelihood and amount of future renewable electricity to be 26
206	206	acquired by the load-serving entity. 27
207	207	(g) A load-serving entity may, within one year after the commission imposes a 28
208	208	noncompliance fine, satisfy the fine by paying a customer all or a portion of the 29
209	209	customer's costs of installing a distributed energy system or energy efficiency 30
210	210	technologies. 31 34-LS0627\N
211	211	SB0149ASB0149A -7- SB 149SB 149
212	212	New Text Underlined [DELETED TEXT BRACKETED]
213	213
214	214	(h) If a load-serving entity's portfolio includes at least 40 percent of electricity 1
215	215	generated from renewable energy resources, adjusted according to AS 42.05.905, the 2
216	216	load-serving entity may, instead of paying a noncompliance fine associated with the 3
217	217	load-serving entity's failure to comply with the renewable portfolio standard by 4
218	218	December 31, 2035, deposit an amount equal to the fine into an account, approved by 5
219	219	the commission, for use by the load-serving entity to defray the costs of future 6
220	220	renewable electricity projects or purchases. 7
221	221	Sec. 42.05.920. Exemptions. A load-serving entity is exempt from compliance 8
222	222	with the renewable portfolio standard if the aggregate percentage of electricity 9
223	223	generated from renewable energy resources by all load-serving entities on the 10
224	224	interconnected electric energy transmission network, adjusted according to 11
225	225	AS 42.05.905, meets or exceeds the aggregate renewable portfolio standard for those 12
226	226	entities. 13
227	227	Sec. 42.05.925. Definitions. In AS 42.05.900 - 42.05.925, 14
228	228	(1) "compliance period" means each period identified in AS 42.05.900; 15
229	229	(2) "distributed energy system" means a community energy facility as 16
230	230	that term is defined in AS 42.05.735 or a renewable energy resource that is located on 17
231	231	any property owned or leased by a customer within the service territory of the load-18
232	232	serving entity that is interconnected on the customer's side of the utility meter; 19
233	233	(3) "interconnected electric energy transmission network" has the 20
234	234	meaning given in AS 42.05.790; 21
235	235	(4) "load-serving entity" has the meaning given in AS 42.05.790; 22
236	236	(5) "megawatt hour" means 1,000,000 watts of electricity being used in 23
237	237	one hour and includes the steam equivalent of a megawatt hour; 24
238	238	(6) "renewable electricity" means electricity or energy generated from 25
239	239	renewable energy resources; 26
240	240	(7) "renewable electricity credit" means one credit equal to the 27
241	241	generation attributes of one megawatt hour that is derived from a renewable energy 28
242	242	resource; where fossil and renewable fuels are co-fired in the same generating unit, the 29
243	243	unit is considered to generate renewable electricity in direct proportion to the 30
244	244	percentage of the total heat input value represented by the heat input value of the 31 34-LS0627\N
245	245	SB 149SB 149 -8- SB0149ASB0149A
246	246	New Text Underlined [DELETED TEXT BRACKETED]
247	247
248	248	renewable fuels; 1
249	249	(8) "renewable energy resource" means a resource, other than 2
250	250	petroleum, nuclear, natural gas, or coal, that naturally replenishes over a human, not a 3
251	251	geological, time frame, is ultimately derived from solar power, water power, or wind 4
252	252	power, comes from the sun or from thermal inertia of the earth, and minimizes the 5
253	253	output of toxic material in the conversion of the energy; in this paragraph, "resource" 6
254	254	includes 7
255	255	(A) solar and solar thermal energy, wind energy, and kinetic 8
256	256	energy of moving water, including 9
257	257	(i) waves, tides, or currents; 10
258	258	(ii) run-of-river hydropower, in-river hydrokinetic; 11
259	259	(iii) conventional hydropower, lake tap hydropower; 12
260	260	(iv) water released through a dam; and 13
261	261	(v) geothermal energy; 14
262	262	(B) waste to energy systems, including 15
263	263	(i) wood; 16
264	264	(ii) landfill gas produced by municipal solid waste or 17
265	265	fuel that has been manufactured in whole or significant part from 18
266	266	waste; 19
267	267	(iii) biofuels produced in the state; and 20
268	268	(iv) thermal energy produced from a geothermal heat 21
269	269	pump using municipal solid waste, including biogenic and 22
270	270	anthropogenic factions. 23
271	271	(9) "renewable portfolio standard" means the percentage of electricity 24
272	272	in a load-serving entity's portfolio that must be generated from renewable energy 25
273	273	resources under AS 42.05.900, adjusted according to AS 42.05.905. 26
274	274	* Sec. 6. AS 42.45.110(a) is amended to read: 27
275	275	(a) The costs used to calculate the amount of power cost equalization for all 28
276	276	electric utilities eligible under AS 42.45.100 - 42.45.150 include all allowable costs, 29
277	277	except return on equity, used by the commission to determine the revenue requirement 30
278	278	for electric utilities subject to rate regulation under AS 42.05. The costs used in 31 34-LS0627\N
279	279	SB0149ASB0149A -9- SB 149SB 149
280	280	New Text Underlined [DELETED TEXT BRACKETED]
281	281
282	282	determining the power cost equalization per kilowatt-hour shall exclude any other type 1
283	283	of assistance that reduces the customer's costs of power on a kilowatt-hour basis and 2
284	284	that is provided to the electric utility within 60 days before the commission determines 3
285	285	the power cost equalization per kilowatt-hour of the electric utility. In calculating 4
286	286	power cost equalization, the commission may not consider validated costs or kilowatt-5
287	287	hour sales associated with a United States Department of Defense facility, revenue 6
288	288	from the sale of recovered heat, or revenue from the sale of renewable electricity 7
289	289	credits acquired under AS 42.05.910. 8
290	290	* Sec. 7. AS 42.05.785(c)(3) is repealed December 31, 2030. 9
291	291	* Sec. 8. This Act takes effect July 1, 2025. 10