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HB0247a -1- HB 247
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HOUSE BILL NO. 247
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY REPRESENTATIVES JOSEPHSON, Story
Introduced: 1/20/26
Referred: Resources, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to the climate change response fund and grant program; relating to a 1
new oil surcharge; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 43.55.023(c) is amended to read: 4
(c) A credit or portion of a credit under this section 5
(1) may not be used to reduce a person's tax liability under 6
AS 43.55.011(e) for any calendar year below zero; 7
(2) may, if not used under this subsection, be applied in a later 8
calendar year; 9
(3) may, regardless of when the credit was earned, be used to satisfy a 10
tax, interest, penalty, fee, or other charge that 11
(A) is related to the tax due under this chapter for a prior year, 12
except for a surcharge under AS 43.55.201 - 43.55.299, [OR] 43.55.300, or 13
43.55.400 or the tax levied by AS 43.55.011(i) or 43.55.014; and 14
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(B) has not, for the purpose of art. IX, sec. 17(a), Constitution 1
of the State of Alaska, been subject to an administrative proceeding or 2
litigation. 3
* Sec. 2. AS 43.55.025(h) is amended to read: 4
(h) A producer that purchases a production tax credit certificate may apply the 5
credits against its production tax levied by AS 43.55.011(e). Regardless of the price 6
the producer paid for the certificate, the producer may receive a credit against its 7
production tax liability for the full amount of the credit, but for not more than the 8
amount for which the certificate is issued. A production tax credit or a portion of a 9
production tax credit or a production tax credit certificate or a portion of a production 10
tax credit certificate allowed under this section 11
(1) may not be applied more than once; 12
(2) may be applied in a later calendar year; 13
(3) may, regardless of when the credit was earned, be applied to satisfy 14
a tax, interest, penalty, fee, or other charge that 15
(A) is related to the tax due under this chapter for a prior year, 16
except for a surcharge under AS 43.55.201 - 43.55.299, [OR] 43.55.300, or 17
43.55.400 or the tax levied by AS 43.55.011(i) or 43.55.014; and 18
(B) has not, for the purpose of art. IX, sec. 17(a), Constitution 19
of the State of Alaska, been subject to an administrative proceeding or 20
litigation. 21
* Sec. 3. AS 43.55.165(e)(11) is amended to read: 22
(11) surcharges levied under AS 43.55.201, [OR] 43.55.300, or 23
43.55.400; 24
* Sec. 4. AS 43.55.201(b) is amended to read: 25
(b) The surcharge imposed by (a) of this section is in addition to the tax 26
imposed by AS 43.55.011 and is due on the last day of the month on oil produced 27
from each lease or property during the preceding month. The surcharge is in addition 28
to the surcharges [SURCHARGE] imposed by AS 43.55.300 - 43.55.310 and 29
43.55.400. 30
* Sec. 5. AS 43.55.300(b) is amended to read: 31
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(b) The surcharge imposed by (a) of this section is in addition to the tax 1
imposed by AS 43.55.011 and is due on the last day of the month on oil produced 2
from each lease or property during the preceding month. The surcharge is in addition 3
to the surcharges [SURCHARGE] imposed by AS 43.55.201 - 43.55.231 and 4
43.55.400. 5
* Sec. 6. AS 43.55 is amended by adding a new section to read: 6
Article 3A. Climate Change Response Surcharge on Oil. 7
Sec. 43.55.400. Surcharge levied. (a) A producer of oil shall pay a surcharge 8
of $.20 per barrel of oil produced from each lease or property in the state, less any oil 9
the ownership or right to which is exempt from taxation. 10
(b) The surcharge imposed by (a) of this section is in addition to the tax 11
imposed by AS 43.55.011 and is due on the last day of the month on oil produced 12
from each lease or property during the preceding month. The surcharge is in addition 13
to the surcharges imposed by AS 43.55.201 - 43.55.231 and 43.55.300 - 43.55.310. 14
(c) A producer of oil shall make a report of production on March 31 of the 15
year following the calendar year of production and in the same manner and under the 16
same penalties as required under AS 43.55.011 - 43.55.180. 17
(d) Oil not considered under AS 43.55.020(e) to be produced from a lease or 18
property is not considered to be produced from a lease or property for purposes of this 19
section. 20
(e) The surcharge shall be deposited into the general fund and accounted for 21
under AS 37.05.142. The legislature may appropriate the surcharge to the climate 22
change response fund established in AS 44.46.200. 23
* Sec. 7. AS 43.55.900(24) is amended to read: 24
(24) "surcharge" means 25
(A) when used in AS 43.55.201 - 43.55.299, the surcharge 26
levied by AS 43.55.201; 27
(B) when used in AS 43.55.300 - 43.55.310, the surcharge 28
levied by AS 43.55.300; 29
(C) when used in AS 43.55.400, the surcharge levied by 30
AS 43.55.400; 31
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* Sec. 8. AS 44.46.020(a) is amended to read: 1
(a) The Department of Environmental Conservation shall 2
(1) have primary responsibility for coordination and development of 3
policies, programs, and planning related to the environment of the state and of the 4
various regions of the state; 5
(2) have primary responsibility for the adoption and enforcement of 6
regulations setting standards for the prevention and abatement of all water, land, 7
subsurface land, and air pollution, and other sources or potential sources of pollution 8
of the environment, including by way of example only, petroleum and natural gas 9
pipelines; 10
(3) promote and develop programs for the protection and control of the 11
environment of the state; 12
(4) take actions that are necessary and proper to further the policy 13
declared in AS 46.03.010; 14
(5) adopt regulations for 15
(A) the prevention and control of public health nuisances; 16
(B) the regulation of sanitation and sanitary practices in the 17
interest of public health; 18
(C) standards of cleanliness and sanitation in connection with 19
the construction, operation, and maintenance of a camp, cannery, food 20
handling establishment, food manufacturing plant, mattress manufacturing 21
establishment, industrial plant, school, barbershop, hairdressing, hair braiding, 22
manicuring, esthetics, tattooing, permanent cosmetic coloring, body piercing, 23
or ear piercing establishment, soft drink establishment, beer and wine 24
dispensaries, and for other similar establishments in which lack of sanitation 25
may create a condition that causes disease; 26
(D) the regulation of quality and purity of commercially 27
compressed air sold for human respiration; 28
(6) administer the climate change response fund and award 29
climate change response grants under AS 44.46.200. 30
* Sec. 9. AS 44.46 is amended by adding a new section to read: 31
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Article 2. Climate Change Response. 1
Sec. 44.46.200. Climate change response fund and grants. (a) The climate 2
change response fund is established in the general fund. The fund consists of money 3
appropriated to the fund. 4
(b) Money in the fund may be expended by the department for climate change 5
response grants under (c) of this section without further appropriation. Money in the 6
fund does not lapse. The fund is not a dedicated fund. 7
(c) A nongovernmental organization, political subdivision of the state, or tribal 8
government may apply to the department for a climate change response grant to be 9
used to build, repair, upgrade, or improve a capital asset or other infrastructure in 10
response to climate change. The application must provide evidence acceptable to the 11
department that the applicant 12
(1) meets the threshold for anticipated or real risk from climate change 13
as established by the department; 14
(2) has secured and will maintain adequate property loss insurance for 15
the replacement cost of the capital asset or other infrastructure or has another program 16
of insurance acceptable to the department; and 17
(3) has a preventive maintenance plan for the capital asset or other 18
infrastructure and will adequately adhere to the preventive maintenance plan after 19
completion of the proposed project. 20
(d) The department shall establish priorities for the award of grants under this 21
section. The department shall award grants in the order of priority established. In 22
establishing priorities, the department shall consider how the project will 23
(1) protect or improve public health; 24
(2) protect or improve climate change resiliency; and 25
(3) mitigate environmental damage and loss of life and property caused 26
by adverse weather events and climate change. 27
(e) On or before the 10th day following the convening of each first regular 28
session of the legislature, the commissioner shall submit a report on the fund, 29
including grants made, to the chief clerk of the house of representatives and the senate 30
secretary and notify the legislature that the report is available. 31
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(f) In this section, 1
(1) "commissioner" means the commissioner of environmental 2
conservation; 3
(2) "department" means the Department of Environmental 4
Conservation; 5
(3) "fund" means the climate change response fund. 6
* Sec. 10. This Act takes effect immediately under AS 01.10.070(c). 7