Alaska 2025-2026 Regular Session

Alaska Senate Bill SB91 Compare Versions

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

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11	11	SENATE BILL NO. 91
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
16	16
17	17	BY THE SENATE RESOURCES COMMITTEE
18	18
19	19	Introduced: 2/10/25
20	20	Referred: Resources, Finance
21	21
22	22
23	23	A BILL
24	24
25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act relating to clean energy project development licenses and leases of state land 1
28	28	for clean energy projects." 2
29	29	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
30	30	* Section 1. AS 38.04.045(b) is amended to read: 4
31	31	(b) Before the issuance of a long-term lease under AS 38.05.070, a lease
32	32	5
33	33	under AS 38.05.430, or [OF] a patent for state land, an official cadastral survey shall 6
34	34	be accomplished, unless a comparable, approved survey exists that has been conducted 7
35	35	by the federal Bureau of Land Management. Before land may be offered under 8
36	36	AS 38.08 or AS 38.09, or before land may be offered under AS 38.05.055 or 9
37	37	38.05.057, except land that is classified for agricultural uses, an official rectangular 10
38	38	survey grid shall be established. The rectangular survey section corner positions shall 11
39	39	be monumented and shown on a cadastral survey plat approved by the state. For those 12
40	40	areas where the state may wish to convey surface estate outside of an official 13
41	41	rectangular survey grid, the commissioner may waive monumentation of individual 14 34-LS0513\A
42	42	SB 91 -2- SB0091A
43	43	New Text Underlined [DELETED TEXT BRACKETED]
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45	45	section corner positions and substitute an official control survey with control points 1
46	46	being monumented and shown on control survey plats approved by the state. The 2
47	47	commissioner may not issue more than one conveyance for each section within a 3
48	48	township outside of an official rectangular survey grid. Land to be conveyed may not 4
49	49	be located more than two miles from an official survey control monument except that 5
50	50	the commissioner may waive this requirement on a determination that a single purpose 6
51	51	use does not justify the requirement if the existing status of the land is known with 7
52	52	reasonable certainty. The lots and tracts in state subdivisions shall be monumented and 8
53	53	the cadastral survey and plats for the subdivision shall be approved by the state. Where 9
54	54	land is located within a municipality with planning, platting, and zoning powers, plats 10
55	55	for state subdivisions shall comply with local ordinances and regulations in the same 11
56	56	manner and to the same extent as plats for subdivisions by other landowners. State 12
57	57	subdivisions shall be filed and recorded in the district recorder's office. The 13
58	58	requirements of this section do not apply to land made available for material sales, for 14
59	59	short-term leases, or for parcels adjoining a surveyed right-of-way, to land subject to 15
60	60	a clean energy project development license issued under AS 38.05.410, or to 16
61	61	[FOR] land that has been open to random staking under the homestead program in the 17
62	62	past; however, for short-term leases, the lessee shall comply with local subdivision 18
63	63	ordinances unless waived by the municipality under procedures specified by 19
64	64	ordinance. In this subsection, "a single purpose use" includes a communication site, an 20
65	65	aid to navigation, and a park site. 21
66	66	* Sec. 2. AS 38.05.035(a) is amended to read: 22
67	67	(a) The director shall 23
68	68	(1) have general charge and supervision of the division and may 24
69	69	exercise the powers specifically delegated to the director; the director may employ and 25
70	70	fix the compensation of assistants and employees necessary for the operations of the 26
71	71	division; the director is the certifying officer of the division, with the consent of the 27
72	72	commissioner, and may approve vouchers for disbursements of money appropriated to 28
73	73	the division; 29
74	74	(2) manage, inspect, and control state land and improvements on it 30
75	75	belonging to the state and under the jurisdiction of the division; 31 34-LS0513\A
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79	79	(3) execute laws, rules, regulations, and orders adopted by the 1
80	80	commissioner; 2
81	81	(4) prescribe application procedures and practices for the sale, lease, or 3
82	82	other disposition of available land, resources, property, or interest in them; 4
83	83	(5) prescribe fees or service charges, with the consent of the 5
84	84	commissioner, for any public service rendered; 6
85	85	(6) under the conditions and limitations imposed by law and the 7
86	86	commissioner, issue deeds, leases, or other conveyances disposing of available land, 8
87	87	resources, property, or any interests in them; 9
88	88	(7) have jurisdiction over state land, except that land acquired by the 10
89	89	Alaska World War II Veterans Board and the Agricultural Loan Board or the 11
90	90	departments or agencies succeeding to their respective functions through foreclosure 12
91	91	or default; to this end, the director possesses the powers and, with the approval of the 13
92	92	commissioner, shall perform the duties necessary to protect the state's rights and 14
93	93	interest in state land, including the taking of all necessary action to protect and enforce 15
94	94	the state's contractual or other property rights; 16
95	95	(8) maintain the records the commissioner considers necessary, 17
96	96	administer oaths, and do all things incidental to the authority imposed; the following 18
97	97	records and files shall be kept confidential upon request of the person supplying the 19
98	98	information: 20
99	99	(A) the name of the person nominating or applying for the sale, 21
100	100	lease, or other disposal of land by competitive bidding; 22
101	101	(B) before the announced time of opening, the names of the 23
102	102	bidders and the amounts of the bids; 24
103	103	(C) all geological, geophysical, meteorological, and other 25
104	104	engineering data supplied, whether or not concerned with the extraction or 26
105	105	development of natural resources; 27
106	106	(D) except as provided in AS 38.05.036, cost data and financial 28
107	107	information submitted in support of applications, bonds, leases, and similar 29
108	108	items; 30
109	109	(E) applications for rights-of-way or easements; 31 34-LS0513\A
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113	113	(F) requests for information or applications by public agencies 1
114	114	for land that is being considered for use for a public purpose; 2
115	115	(G) the name of an applicant for a clean energy project 3
116	116	development license under AS 38.05.410; 4
117	117	(9) account for the fees, licenses, taxes, or other money received in the 5
118	118	administration of this chapter including the sale or leasing of land, identify their 6
119	119	source, and promptly transmit them to the proper fiscal department after crediting 7
120	120	them to the proper fund; receipts from land application filing fees and charges for 8
121	121	copies of maps and records shall be deposited immediately in the general fund of the 9
122	122	state by the director; 10
123	123	(10) select and employ or obtain at reasonable compensation cadastral, 11
124	124	appraisal, or other professional personnel the director considers necessary for the 12
125	125	proper operation of the division; 13
126	126	(11) be the certifying agent of the state to select, accept, and secure by 14
127	127	whatever action is necessary in the name of the state, by deed, sale, gift, devise, 15
128	128	judgment, operation of law, or other means any land, of whatever nature or interest, 16
129	129	available to the state; and be the certifying agent of the state, to select, accept, or 17
130	130	secure by whatever action is necessary in the name of the state any land, or title or 18
131	131	interest to land available, granted, or subject to being transferred to the state for any 19
132	132	purpose; 20
133	133	(12) on request, furnish records, files, and other information related to 21
134	134	the administration of AS 38.05.180 to the Department of Revenue for use in 22
135	135	forecasting state revenue under or administering AS 43.55, whether or not those 23
136	136	records, files, and other information are required to be kept confidential under (8) of 24
137	137	this subsection; in the case of records, files, or other information required to be kept 25
138	138	confidential under (8) of this subsection, the Department of Revenue shall maintain 26
139	139	the confidentiality that the Department of Natural Resources is required to extend to 27
140	140	records, files, and other information under (8) of this subsection; 28
141	141	(13) when reasonably possible, give priority to and expedite the 29
142	142	processing of an application for a lease or assignment of a lease of state land for 30
143	143	development and operation of a clean energy project under AS 38.05.400 - 31 34-LS0513\A
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147	147	38.05.460 or a gas storage facility, for a right-of-way necessary for a clean energy 1
148	148	project under AS 38.05.400 - 38.05.460 or [TO] a gas storage facility, for a change 2
149	149	to the allocation of production within a unit, and for a permit necessary for the 3
150	150	operation of a gas storage facility; in this paragraph, "gas storage facility" has the 4
151	151	meaning given in AS 31.05.032; 5
152	152	(14) prepare and submit to the senate secretary and chief clerk of the 6
153	153	house of representatives on or before the first day of each regular session of the 7
154	154	legislature an annual report in electronic form concerning site lease applications 8
155	155	submitted under AS 38.05.083; in preparing and submitting the report, the director 9
156	156	shall 10
157	157	(A) include in the report 11
158	158	(i) a list of all applications pending with the department, 12
159	159	including applications for a new lease and applications for renewal, 13
160	160	amendment, and assignment of a lease, and the length of time each 14
161	161	application has been pending with the department; 15
162	162	(ii) for an application that has not been granted, the 16
163	163	reason the application has not been granted; and 17
164	164	(iii) the number of leases that the director elected not to 18
165	165	renew under AS 38.05.070; 19
166	166	(B) notify the legislature that the report is available. 20
167	167	* Sec. 3. AS 38.05.035(e) is amended to read: 21
168	168	(e) Upon a written finding that the interests of the state will be best served, the 22
169	169	director may, with the consent of the commissioner, approve contracts for the sale, 23
170	170	lease, or other disposal of available land, resources, property, or interests in them. In 24
171	171	approving a contract under this subsection, the director need only prepare a single 25
172	172	written finding. In addition to the conditions and limitations imposed by law, the 26
173	173	director may impose additional conditions or limitations in the contracts as the director 27
174	174	determines, with the consent of the commissioner, will best serve the interests of the 28
175	175	state. The preparation and issuance of the written finding by the director are subject to 29
176	176	the following: 30
177	177	(1) with the consent of the commissioner and subject to the director's 31 34-LS0513\A
178	178	SB 91 -6- SB0091A
179	179	New Text Underlined [DELETED TEXT BRACKETED]
180	180
181	181	discretion, for a specific proposed disposal of available land, resources, or property, or 1
182	182	of an interest in them, the director, in the written finding, 2
183	183	(A) shall establish the scope of the administrative review on 3
184	184	which the director's determination is based, and the scope of the written 4
185	185	finding supporting that determination; the scope of the administrative review 5
186	186	and finding may address only reasonably foreseeable, significant effects of the 6
187	187	uses proposed to be authorized by the disposal; 7
188	188	(B) may limit the scope of an administrative review and finding 8
189	189	for a proposed disposal to 9
190	190	(i) applicable statutes and regulations; 10
191	191	(ii) the facts pertaining to the land, resources, or 11
192	192	property, or interest in them, that the director finds are material to the 12
193	193	determination and that are known to the director or knowledge of which 13
194	194	is made available to the director during the administrative review; and 14
195	195	(iii) issues that, based on the statutes and regulations 15
196	196	referred to in (i) of this subparagraph, on the facts as described in (ii) of 16
197	197	this subparagraph, and on the nature of the uses sought to be authorized 17
198	198	by the disposal, the director finds are material to the determination of 18
199	199	whether the proposed disposal will best serve the interests of the state; 19
200	200	and 20
201	201	(C) may, if the project for which the proposed disposal is 21
202	202	sought is a multiphased development, limit the scope of an administrative 22
203	203	review and finding for the proposed disposal to the applicable statutes and 23
204	204	regulations, facts, and issues identified in (B)(i) - (iii) of this paragraph that 24
205	205	pertain solely to the disposal phase of the project when 25
206	206	(i) the only uses to be authorized by the proposed 26
207	207	disposal are part of that phase; 27
208	208	(ii) the disposal is the issuance of a clean energy 28
209	209	project development license under AS 38.05.410, a disposal of oil 29
210	210	and gas, or of gas only, and, before the next phase of the project may 30
211	211	proceed, public notice and the opportunity to comment are provided 31 34-LS0513\A
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215	215	under regulations adopted by the department; 1
216	216	(iii) the department's approval is required before the 2
217	217	next phase of the project may proceed; and 3
218	218	(iv) the department describes its reasons for a decision 4
219	219	to phase; 5
220	220	(2) the director shall discuss in the written finding prepared and issued 6
221	221	under this subsection the reasons that each of the following was not material to the 7
222	222	director's determination that the interests of the state will be best served: 8
223	223	(A) facts pertaining to the land, resources, or property, or an 9
224	224	interest in them other than those that the director finds material under (1)(B)(ii) 10
225	225	of this subsection; and 11
226	226	(B) issues based on the statutes and regulations referred to in 12
227	227	(1)(B)(i) of this subsection and on the facts described in (1)(B)(ii) of this 13
228	228	subsection; 14
229	229	(3) a written finding for an oil and gas lease sale or gas only lease sale 15
230	230	under AS 38.05.180 is subject to (g) of this section; 16
231	231	(4) a contract for the sale, lease, or other disposal of available land or 17
232	232	an interest in land is not legally binding on the state until the commissioner approves 18
233	233	the contract, but if the appraised value is not greater than $50,000 in the case of the 19
234	234	sale of land or an interest in land, or $5,000 in the case of the annual rental of land or 20
235	235	interest in land, the director may execute the contract without the approval of the 21
236	236	commissioner; 22
237	237	(5) public notice requirements relating to the sale, lease, or other 23
238	238	disposal of available land or an interest in land for oil and gas, or for gas only, 24
239	239	proposed to be scheduled in the five-year oil and gas leasing program under 25
240	240	AS 38.05.180(b), except for a sale under (6)(F) of this subsection, are as follows: 26
241	241	(A) before a public hearing, if held, or in any case not less than 27
242	242	180 days before the sale, lease, or other disposal of available land or an interest 28
243	243	in land, the director shall make available to the public a preliminary written 29
244	244	finding that states the scope of the review established under (1)(A) of this 30
245	245	subsection and includes the applicable statutes and regulations, the material 31 34-LS0513\A
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249	249	facts and issues in accordance with (1)(B) of this subsection, and information 1
250	250	required by (g) of this section, on [UPON] which the determination that the 2
251	251	sale, lease, or other disposal will serve the best interests of the state will be 3
252	252	based; the director shall provide opportunity for public comment on the 4
253	253	preliminary written finding for a period of not less than 60 days; 5
254	254	(B) after the public comment period for the preliminary written 6
255	255	finding and not less than 90 days before the sale, lease, or other disposal of 7
256	256	available land or an interest in land for oil and gas or for gas only, the director 8
257	257	shall make available to the public a final written finding that states the scope of 9
258	258	the review established under (1)(A) of this subsection and includes the 10
259	259	applicable statutes and regulations, the material facts and issues in accordance 11
260	260	with (1) of this subsection, and information required by (g) of this section, on 12
261	261	[UPON] which the determination that the sale, lease, or other disposal will 13
262	262	serve the best interests of the state is based; 14
263	263	(6) before a public hearing, if held, or in any case not less than 21 days 15
264	264	before the sale, lease, or other disposal of available land, property, resources, or 16
265	265	interests in them other than a sale, lease, or other disposal of available land or an 17
266	266	interest in land for oil and gas or for gas only under (5) of this subsection, the director 18
267	267	shall make available to the public a written finding that, in accordance with (1) of this 19
268	268	subsection, sets out the material facts and applicable statutes and regulations and any 20
269	269	other information required by statute or regulation to be considered on [UPON] which 21
270	270	the determination that the sale, lease, or other disposal will best serve the interests of 22
271	271	the state was based; however, a written finding is not required before the approval of 23
272	272	(A) a contract for a negotiated sale authorized under 24
273	273	AS 38.05.115; 25
274	274	(B) a lease of land for a shore fishery site under AS 38.05.082; 26
275	275	(C) a permit or other authorization revocable by the 27
276	276	commissioner; 28
277	277	(D) a mineral claim located under AS 38.05.195; 29
278	278	(E) a mineral lease issued under AS 38.05.205; 30
279	279	(F) an exempt oil and gas lease sale or gas only lease sale under 31 34-LS0513\A
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283	283	AS 38.05.180(d) of acreage subject to a best interest finding issued within the 1
284	284	previous 10 years or a reoffer oil and gas lease sale or gas only lease sale under 2
285	285	AS 38.05.180(w) of acreage subject to a best interest finding issued within the 3
286	286	previous 10 years, unless the commissioner determines that substantial new 4
287	287	information has become available that justifies a supplement to the most recent 5
288	288	best interest finding for the exempt oil and gas lease sale or gas only lease sale 6
289	289	acreage and for the reoffer oil and gas lease sale or gas only lease sale acreage; 7
290	290	however, for each oil and gas lease sale or gas only lease sale described in this 8
291	291	subparagraph, the director shall call for comments from the public; the 9
292	292	director's call for public comments must provide opportunity for public 10
293	293	comment for a period of not less than 30 days; if the director determines that a 11
294	294	supplement to the most recent best interest finding for the acreage is required 12
295	295	under this subparagraph, 13
296	296	(i) the director shall issue the supplement to the best 14
297	297	interest finding not later than 90 days before the sale; 15
298	298	(ii) not later than 45 days before the sale, the director 16
299	299	shall issue a notice describing the interests to be offered, the location 17
300	300	and time of the sale, and the terms and conditions of the sale; and 18
301	301	(iii) the supplement has the status of a final written best 19
302	302	interest finding for purposes of (i) and (l) of this section; 20
303	303	(G) a surface use lease under AS 38.05.255; 21
304	304	(H) a permit, right-of-way, or easement issued under 22
305	305	AS 38.05.430(a) or 38.05.850 [AS 38.05.850]; 23
306	306	(7) the director shall include in 24
307	307	(A) a preliminary written finding, if required, a summary of 25
308	308	agency and public comments, if any, obtained as a result of contacts with other 26
309	309	agencies concerning a proposed disposal or as a result of informal efforts 27
310	310	undertaken by the department to solicit public response to a proposed disposal, 28
311	311	and the department's preliminary responses to those comments; and 29
312	312	(B) the final written finding a summary of agency and public 30
313	313	comments received and the department's responses to those comments. 31 34-LS0513\A
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317	317	* Sec. 4. AS 38.05.070(e) is amended to read: 1
318	318	(e) The director may renew a lease issued under this section, AS 38.05.075, 2
319	319	38.05.083, 38.05.430, or 38.05.810 upon its expiration if the lease is in good standing 3
320	320	and the lease renewal is determined to be in the best interests of the state. A renewal 4
321	321	issued under this subsection is not subject to AS 38.05.035(e). A lease under this 5
322	322	section, AS 38.05.075, 38.05.430, or 38.05.810 may be renewed only once for a term 6
323	323	not longer than the initial term of the lease. The director shall provide notice of the 7
324	324	lease renewal decision. 8
325	325	* Sec. 5. AS 38.05.075(a) is amended to read: 9
326	326	(a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.081, 10
327	327	38.05.082, 38.05.083, 38.05.087, 38.05.102, 38.05.400 - 38.05.460, 38.05.565, 11
328	328	38.05.600, 38.05.810, and this section, when competitive interest has been 12
329	329	demonstrated or the commissioner determines that it is in the state's best interests, 13
330	330	leasing shall be made at public auction or by sealed bid, at the discretion of the 14
331	331	director, to the highest qualified bidder as determined by the commissioner. A bidder 15
332	332	may be represented by an attorney or agent at a public auction. In the public notice of 16
333	333	a lease to be offered at public auction or by sealed bid, the commissioner shall specify 17
334	334	a minimum acceptable bid and the lease compensation method. The lease 18
335	335	compensation method shall be designed to maximize the return on the lease to the 19
336	336	state and shall be a form of compensation set out in AS 38.05.073(m). An aggrieved 20
337	337	bidder may appeal to the commissioner within five days for a review of the 21
338	338	determination. The leasing shall be conducted by the commissioner, and the successful 22
339	339	bidder shall deposit at the public auction or with the sealed bid the first year's rental or 23
340	340	other lease compensation as specified by the commissioner, or that portion of it that 24
341	341	the commissioner requires in accordance with the bid. The commissioner shall require, 25
342	342	under AS 38.05.860, qualified bidders to deposit a sum equal to any survey or 26
343	343	appraisal costs reasonably incurred by another qualified bidder acting in accordance 27
344	344	with the regulations of the commissioner or incurred by the department under 28
345	345	AS 38.04.045 and AS 38.05.840. If a bidder making a deposit of survey or appraisal 29
346	346	costs is determined by the commissioner to be the highest qualified bidder under this 30
347	347	subsection, the deposit shall be paid to the unsuccessful bidder who incurred those 31 34-LS0513\A
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351	351	costs or to the department if the department incurred the costs. All costs for survey and 1
352	352	appraisal shall be approved in advance in writing by the commissioner. The 2
353	353	commissioner shall immediately issue a receipt containing a description of the land or 3
354	354	interest leased, the price bid, and the terms of the lease to the successful qualified 4
355	355	bidder. If the receipt is not accepted in writing by the bidder under this subsection, the 5
356	356	commissioner may offer the land for lease again under this subsection. A lease, on a 6
357	357	form approved by the attorney general, shall be signed by the successful bidder and by 7
358	358	the commissioner. 8
359	359	* Sec. 6. AS 38.05.102 is amended to read: 9
360	360	Sec. 38.05.102. Lessee preference. Except for a lease under AS 38.05.081, 10
361	361	[OR] 38.05.083, or 38.05.430, if land within a leasehold created under AS 38.05.070 - 11
362	362	38.05.105 is offered for sale or long-term lease at the termination of the existing 12
363	363	leasehold, the director may, upon a finding that it is in the best interest of the state, 13
364	364	allow a holder in good standing of the existing leasehold to purchase or lease the land 14
365	365	for its appraised fair market value at the time of the sale or long-term lease. 15
366	366	* Sec. 7. AS 38.05.125(a) is amended to read: 16
367	367	(a) Each contract for the sale, lease, or grant of state land, and each deed to 17
368	368	state land, properties, or interest in state land, made under AS 38.05.045 - 38.05.120, 18
369	369	38.05.321, 38.05.400 - 38.05.460, 38.05.810 - 38.05.825, AS 38.08, or AS 38.50 19
370	370	except as provided in AS 38.50.050 is subject to the following reservations: "The 20
371	371	party of the first part, Alaska, hereby expressly saves, excepts, and reserves out of the 21
372	372	grant hereby made, unto itself, its lessees, successors, and assigns forever, all oils, 22
373	373	gases, coal, ores, minerals, fissionable materials, geothermal resources, and fossils of 23
374	374	every name, kind, or description, and which may be in or upon said land above 24
375	375	described, or any part thereof, and the right to explore the same for such oils, gases, 25
376	376	coal, ores, minerals, fissionable materials, geothermal resources, and fossils, and it 26
377	377	also hereby expressly saves and reserves out of the grant hereby made, unto itself, its 27
378	378	lessees, successors, and assigns forever, the right to enter by itself, its or their agents, 28
379	379	attorneys, and servants upon said land, or any part or parts thereof, at any and all times 29
380	380	for the purpose of opening, developing, drilling, and working mines or wells on these 30
381	381	or other land and taking out and removing therefrom all such oils, gases, coal, ores, 31 34-LS0513\A
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385	385	minerals, fissionable materials, geothermal resources, and fossils, and to that end it 1
386	386	further expressly reserves out of the grant hereby made, unto itself, its lessees, 2
387	387	successors, and assigns forever, the right by its or their agents, servants, and attorneys 3
388	388	at any and all times to erect, construct, maintain, and use all such buildings, 4
389	389	machinery, roads, pipelines, powerlines, and railroads, sink such shafts, drill such 5
390	390	wells, remove such soil, and to remain on said land or any part thereof for the 6
391	391	foregoing purposes and to occupy as much of said land as may be necessary or 7
392	392	convenient for such purposes hereby expressly reserving to itself, its lessees, 8
393	393	successors, and assigns, as aforesaid, generally all rights and power in, to, and over 9
394	394	said land, whether herein expressed or not, reasonably necessary or convenient to 10
395	395	render beneficial and efficient the complete enjoyment of the property and rights 11
396	396	hereby expressly reserved." 12
397	397	* Sec. 8. AS 38.05.127(a) is amended to read: 13
398	398	(a) Except as provided in (e) of this section, before [BEFORE] the sale, 14
399	399	lease, grant, or other disposal of any interest in state land adjacent to a body of water 15
400	400	or waterway, the commissioner shall, 16
401	401	(1) determine if the body of water or waterway is navigable water, 17
402	402	public water, or neither; 18
403	403	(2) upon finding that the body of water or waterway is navigable or 19
404	404	public water, provide for the specific easements or rights-of-way necessary to ensure 20
405	405	free access to and along the body of water, unless the commissioner finds that 21
406	406	regulating or limiting access is necessary for other beneficial uses or public purposes. 22
407	407	* Sec. 9. AS 38.05.127(e) is repealed and reenacted to read: 23
408	408	(e) For a clean energy project under AS 38.05.400 - 38.05.460 or an oil and 24
409	409	gas, gas only, or mineral lease, the determination required under (a)(1) of this section 25
410	410	and, if applicable, the provision of an easement or right-of-way under (a)(2) of this 26
411	411	section are required only once the lease under AS 38.05.430 or oil and gas, gas only, 27
412	412	or mineral lease is ready to be developed. 28
413	413	* Sec. 10. AS 38.05 is amended by adding new sections to read: 29
414	414	Article 12A. Clean Energy Projects. 30
415	415	Sec. 38.05.400. Clean energy project program. (a) The commissioner may 31 34-LS0513\A
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419	419	issue clean energy project development licenses under AS 38.05.410 for the use of 1
420	420	state land, including tide, submerged, and shoreland, that entitle a licensee to exclusive 2
421	421	use of the licensed land for the purposes of determining the feasibility of a clean 3
422	422	energy project and preparing a development plan and, upon approval of the licensee's 4
423	423	development plan under AS 38.05.420, to a preference right for a lease and for rights-5
424	424	of-way and other land use rights and authorizations necessary to implement the 6
425	425	development plan. 7
426	426	(b) The commissioner shall adopt regulations to implement AS 38.05.400 - 8
427	427	38.05.460, including regulations 9
428	428	(1) setting fees to be paid to the department for submission of clean 10
429	429	energy project development license applications and for issuance of licenses; 11
430	430	(2) providing for departmental review of a licensee's development plan 12
431	431	and lease application; 13
432	432	(3) addressing rights-of-way and other necessary land use 14
433	433	authorizations and payment to the state for those land use rights. 15
434	434	(c) AS 38.05.400 - 38.05.460 authorize the issuance of land use authorizations 16
435	435	to develop clean energy projects only on the state's surface estate. 17
436	436	Sec. 38.05.410. Clean energy project development licenses. (a) A clean 18
437	437	energy project development license issued under this section is limited to a maximum 19
438	438	of 3,000,000 acres of state land. The commissioner may identify state land eligible for 20
439	439	development and operation of clean energy projects and notify the public that the land 21
440	440	is available for those purposes. State land may also be identified by an applicant in an 22
441	441	application submitted under (e) of this section. 23
442	442	(b) Subject to the bonding requirements of AS 38.05.440, a clean energy 24
443	443	project development license authorizes the licensee to conduct feasibility studies and 25
444	444	prepare a development plan for the licensed land. A licensee may conduct sampling, 26
445	445	mapping, data collection, and limited construction and development activities needed 27
446	446	to determine the feasibility of a project and complete a development plan under 28
447	447	AS 38.05.420. In this subsection, "limited construction" includes installing a 29
448	448	meteorological tower, performing geotechnical work, establishing a personnel camp, 30
449	449	constructing a helicopter landing pad, and other similar activi
450	450	ties. 31 34-LS0513\A
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454	454	(c) An initial clean energy project development license issued under this 1
455	455	section may be issued for a maximum term of 10 years. A license may be extended 2
456	456	twice for a period of up to 10 years each time if the commissioner determines that the 3
457	457	licensee 4
458	458	(1) is in compliance with the license terms, conditions, and 5
459	459	stipulations; 6
460	460	(2) has diligently pursued the licensed activities; and 7
461	461	(3) is likely to complete a feasibility study if granted an extension. 8
462	462	(d) The commissioner may, subject to the acreage limits of (a) of this section, 9
463	463	amend the area covered by a clean energy project development license during the 10
464	464	license term. The commissioner shall provide public notice of an amendment under 11
465	465	this subsection that increases the area covered by a license by 5,000 acres or more. 12
466	466	(e) A person may submit to the department an application requesting a clean 13
467	467	energy project development license. An applicant must meet qualifications established 14
468	468	in regulations adopted by the commissioner. An application for a license under this 15
469	469	section must, at a minimum, contain detailed information including 16
470	470	(1) a description of the proposed clean energy project; 17
471	471	(2) the proposed area to be covered by the license; 18
472	472	(3) a description of the nature and scope of activities to be completed 19
473	473	during the term of the license; 20
474	474	(4) a description of performance benchmarks and project milestones 21
475	475	for each phase of the proposed clean energy project, including feasibility studies and 22
476	476	project design, funding, construction, and operation; and 23
477	477	(5) information relating to project viability, including financing plans, 24
478	478	market demand, and anticipated revenue. 25
479	479	(f) In addition to information required under (e) of this section, the 26
480	480	commissioner may require an applicant to provide additional information that the 27
481	481	commissioner determines is necessary to evaluate the application. 28
482	482	(g) Upon receiving an application for a clean energy project development 29
483	483	license, the department shall solicit competitive interest by issuing a public notice in 30
484	484	the manner prescribed in AS 38.05.945. The notice must contain an announcement 31 34-LS0513\A
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488	488	seeking competitive interest. If competing applications are received following notice, 1
489	489	the commissioner shall evaluate the applications as described in (h) of this section. 2
490	490	(h) If the commissioner receives two or more clean energy project 3
491	491	development license applications for the same land, the commissioner shall review 4
492	492	each application and evaluate each application against the others. In evaluating 5
493	493	competing applications, the commissioner shall consider 6
494	494	(1) whether the applications are for clean energy projects that are 7
495	495	similar, compatible, or mutually exclusive for the area proposed; 8
496	496	(2) the proposed monetary terms; 9
497	497	(3) the potential revenue to the state; 10
498	498	(4) the qualifications of each applicant, including the applicant's 11
499	499	previous experience with the type of clean energy project proposed; 12
500	500	(5) how the proposed use would accommodate multiple uses of the 13
501	501	land; and 14
502	502	(6) any additional considerations established by the department in 15
503	503	regulation. 16
504	504	(i) The commissioner may issue a clean energy project 17
505	505	development license only after the director issues a finding under 18
506	506	AS 38.05.035(e)(6) that the license is in the best interests of the state. 19
507	507	In addition to the requirements of AS 38.05.035(e), the best interest 20
508	508	finding for a clean energy project development license must 21
509	509	(1) describe the area of state land subject to the license by aliquot parts 22
510	510	or another descriptive method that reasonably describes the land; 23
511	511	(2) include any limitations, stipulations, conditions, or changes to the 24
512	512	proposal that the director determines are required for the license to conform to the best 25
513	513	interests of the state; 26
514	514	(3) outline the specific benchmarks and work that must be satisfied 27
515	515	during the license term; and 28
516	516	(4) when competing applications are received, address the 29
517	517	considerations listed under (h) of this section. 30
518	518	(j) State land subject to a clean energy project development license must, to 31 34-LS0513\A
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522	522	the extent not incompatible with the licensee's approved activities, remain open to 1
523	523	(1) the public for access, hunting, fishing, and other generally allowed 2
524	524	uses as determined by the department; and 3
525	525	(2) other resource exploration and development, including mining. 4
526	526	(k) A licensee's use of water within an area covered by a clean energy project 5
527	527	development license is limited to those uses necessary to complete a feasibility study 6
528	528	and prepare a development plan. Use of water within a license area is governed by 7
529	529	AS 46.15. 8
530	530	Sec. 38.05.420. Development plans. (a) Before the commissioner may issue a 9
531	531	lease for a clean energy project under AS 38.05.430 or other related authorization, a 10
532	532	licensee under AS 38.05.410 must submit and the commissioner must approve a 11
533	533	development plan for the project. The development plan must 12
534	534	(1) identify all infrastructure required for the completed project; 13
535	535	(2) identify all locations where proposed infrastructure would be 14
536	536	located; 15
537	537	(3) include a schematic design for the overall project; 16
538	538	(4) list all land use authorizations needed to construct and operate the 17
539	539	project; 18
540	540	(5) include the timeline for completing design development and 19
541	541	construction; and 20
542	542	(6) contain other information the commissioner determines is 21
543	543	necessary to facilitate the commissioner's determination to approve or disapprove the 22
544	544	development plan under this section. 23
545	545	(b) The commissioner shall review a development plan submitted under (a) of 24
546	546	this section and prepare a written finding approving, approving in part, modifying, or 25
547	547	disapproving the development plan. The commissioner shall determine and include in 26
548	548	the written finding 27
549	549	(1) whether any changes or additions to information considered in the 28
550	550	best interest finding conducted under AS 38.05.410(i) are needed for the licensee's 29
551	551	clean energy project development license, considering the factors described in 30
552	552	AS 38.05.035(e)(1) and (2); 31 34-LS0513\A
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556	556	(2) the likelihood that the project will be constructed and successfully 1
557	557	operated; 2
558	558	(3) the potential monetary return to the state; and 3
559	559	(4) the cumulative effects of the project, taking into account all aspects 4
560	560	of the project considered as a whole and the context in which the project would be 5
561	561	developed. 6
562	562	(c) The commissioner's written finding under (b) of this section is subject to 7
563	563	public notice as required by AS 38.05.945. 8
564	564	Sec. 38.05.430. Leases, easements, rights-of-way, and other land use 9
565	565	authorizations. (a) Subject to the bonding requirements of AS 38.05.440, after the 10
566	566	commissioner approves, or approves in part, a development plan under AS 38.05.420, 11
567	567	the commissioner may, upon an application from the licensee, enter into leases with 12
568	568	and issue authorizations to a clean energy project development licensee that are 13
569	569	identified in the development plan approved by the commissioner under AS 38.05.420 14
570	570	and within the area licensed under AS 38.05.410. A separate best interest finding 15
571	571	under AS 38.05.035(e) is not required for a lease, easement, or right-of-way accounted 16
572	572	for in the licensee's approved development plan. AS 38.05.070(d) does not apply to 17
573	573	leases issued under this section. The commissioner may issue a lease, easement, or 18
574	574	right-of-way under this section for a maximum period of 55 years and may renew a 19
575	575	lease, easement, or right-of-way under this section once for a period not to exceed 55 20
576	576	years. A lease agreement under this section must include land use restrictions and 21
577	577	authorizations consistent with the purpose of the lease. 22
578	578	(b) A lease, easement, or right-of-way that is not accounted for in a licensee's 23
579	579	development plan is subject to the requirements of AS 38.05.070 - 38.05.105 and 24
580	580	38.05.850, including best interest findings and public notice. A clean energy project 25
581	581	development licensee under AS 38.05.410 or lessee under this section shall apply for a 26
582	582	permit, right-of-way, or easement under AS 38.05.850 for any necessary road, 27
583	583	pipeline, facility, or other infrastructure necessary for development of the clean energy 28
584	584	project. A lease, easement, or right-of-way issued under this section is subject to the 29
585	585	following requirements: 30
586	586	(1) a right-of-way for an oil or natural gas pipeline is subject to
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591	591	AS 38.35, as applicable; 1
592	592	(2) the commissioner may include in a lease or right-of-way reasonable 2
593	593	provisions and conditions the commissioner determines are required by the public 3
594	594	interest; 4
595	595	(3) a lease, easement, or right-of-way, including a pipeline right-of-5
596	596	way, must also contain terms and conditions that, to the extent reasonably practicable, 6
597	597	(A) prevent conflict with other existing beneficial uses of the 7
598	598	land; 8
599	599	(B) protect state and private interests in real property; 9
600	600	(C) prevent significant adverse environmental effects to 10
601	601	(i) land, including erosion; and 11
602	602	(ii) fish and wildlife and fish and wildlife habitat; 12
603	603	(D) ensure that the land is protected during the term of the lease 13
604	604	and, at termination of the lease, is restored and revegetated; 14
605	605	(E) protect the interests of individuals living in the general area 15
606	606	of the lease, right-of-way, or easement who rely on the fish, wildlife, and 16
607	607	replenishable resources of the area for subsistence purposes. 17
608	608	(c) Except as provided in (d) of this section, the commissioner shall ensure 18
609	609	that compensation for a lease, easement, or right-of-way under this section shall be a 19
610	610	form of compensation provided under AS 38.05.073(m), selected to provide the 20
611	611	greatest economic benefit to the state and the development of its resources. 21
612	612	Compensation for land leased under this section shall be separately accounted for 22
613	613	under AS 37.05.142. The lease must stipulate that, at five-year intervals, the lease rent 23
614	614	is subject to adjustment to ensure that the state receives the maximum benefit from the 24
615	615	lease. 25
616	616	(d) Compensation for a pipeline right-of-way lease under this section shall be 26
617	617	determined by the commissioner in accordance with AS 38.35.140 and 38.35.145. 27
618	618	(e) Land leased under this section must remain open to mineral exploration 28
619	619	and development, unless the commissioner determines that mineral exploration and 29
620	620	development are incompatible with the lessee's clean energy project and closes the 30
621	621	land to mineral development under AS 38.05.300(c). 31 34-LS0513\A
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625	625	Sec. 38.05.440. Bonding. Before the commissioner may issue a clean energy 1
626	626	project development license under AS 38.05.410 or a lease under AS 38.05.430, an 2
627	627	applicant for a license under AS 38.05.410(e) or lease under AS 38.05.430(a) shall 3
628	628	post a performance bond or provide other security acceptable to the commissioner to 4
629	629	cover the costs to the department of one or more of the following, as determined by 5
630	630	the commissioner: 6
631	631	(1) administering and managing the license or lease to ensure 7
632	632	completion of the clean energy project and compliance with the terms and conditions 8
633	633	of the license or lease; 9
634	634	(2) administrating and managing the license or lease to ensure that 10
635	635	development occurs according to the terms and conditions of the license or lease; and 11
636	636	(3) restoring the land at the conclusion of the license period or lease 12
637	637	term, upon the termination of the license or lease, or upon a finding that work 13
638	638	associated with the clean energy project has been abandoned. 14
639	639	Sec. 38.05.450. Termination of clean energy project development license or 15
640	640	lease; improvements. (a) A violation of a provision of a clean energy project 16
641	641	development license or a lease under AS 38.05.430, or any terms, conditions, or 17
642	642	stipulations in the license or lease, subjects the licensee or lessee to appropriate legal 18
643	643	action, including revocation of the license or forfeiture of the lease. 19
644	644	(b) The commissioner has the discretion to terminate or revoke a clean energy 20
645	645	project development license issued under AS 38.05.410 if the licensee fails to meet 21
646	646	benchmarks set out in the license. If a license or a lease under AS 38.05.430 is 22
647	647	terminated or work contemplated in the license or lease is abandoned, improvements 23
648	648	remaining on the land are subject to AS 38.05.090. 24
649	649	Sec. 38.05.460. Definitions. In AS 38.05.400 - 38.05.460, 25
650	650	(1) "applicant" means a person submitting a clean energy project 26
651	651	development license application, development plan, or other application for a land use 27
652	652	authorization under AS 38.05.400 - 38.05.460; 28
653	653	(2) "competing applications" means the commissioner has received 29
654	654	two or more applications to license the same state land, or to license overlapping areas 30
655	655	of state land, for which only one proposal can be granted to ensure the licensee has 31 34-LS0513\A
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659	659	exclusive use of the land; 1
660	660	(3) "exclusive use" means the exclusive right to conduct activities on 2
661	661	land subject to a clean energy project development license for the purposes of 3
662	662	determining the feasibility of a clean energy project and preparation of a development 4
663	663	plan. 5
664	664	* Sec. 11. AS 38.05.945(a) is amended to read: 6
665	665	(a) This section establishes the requirements for notice given by the 7
666	666	department for the following actions: 8
667	667	(1) classification or reclassification of state land under AS 38.05.300 9
668	668	and the closing of land to mineral leasing or entry under AS 38.05.185; 10
669	669	(2) zoning of land under applicable law; 11
670	670	(3) issuance of a 12
671	671	(A) preliminary written finding under AS 38.05.035(e)(5)(A) 13
672	672	regarding the sale, lease, or disposal of an interest in state land or resources for 14
673	673	oil and gas, or for gas only, subject to AS 38.05.180(b); 15
674	674	(B) written finding for the sale, lease, or disposal of an interest 16
675	675	in state land or resources under AS 38.05.035(e)(6), except a lease sale 17
676	676	described in AS 38.05.035(e)(6)(F) for which the director must provide 18
677	677	opportunity for public comment under the provisions of that subparagraph; 19
678	678	(4) a competitive disposal of an interest in state land or resources after 20
679	679	final decision under AS 38.05.035(e); 21
680	680	(5) a preliminary finding under AS 38.05.035(e) concerning sites for 22
681	681	aquatic farms and related hatcheries; 23
682	682	(6) a decision under AS 38.05.132 - 38.05.134 regarding the sale, 24
683	683	lease, or disposal of an interest in state land or resources; 25
684	684	(7) an exchange of state land under AS 38.50; 26
685	685	(8) solicitation of competitive interest under AS 38.05.081(c); 27
686	686	(9) a written finding required under AS 38.05.410(i), 38.05.420(c), 28
687	687	or 38.05.430(b). 29
688	688	* Sec. 12. AS 38.05.965 is amended by adding a new paragraph to read: 30
689	689	(29) "clean energy project" means a power generating utility or 31 34-LS0513\A
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693	693	industrial project that includes development of and primary reliance on one or more of 1
694	694	the following technologies: 2
695	695	(A) solar; 3
696	696	(B) wind; 4
697	697	(C) hydropower; 5
698	698	(D) biomass; 6
699	699	(E) energy storage, including pumped storage hydropower and 7
700	700	compressed air storage; or 8
701	701	(F) advanced nuclear technologies. 9