LARGE-SCALE CLEAN ENERGY PROJECTS

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SENATE BILL NO. 91

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY THE SENATE RESOURCES COMMITTEE

Introduced: 2/10/25
Referred: Resources, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to clean energy project development licenses a nd leases of state land 1
for clean energy projects." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 38.04.045(b) is amended to read: 4
(b) Before the issuance of a long-term lease under AS 38.05.07 0, a lease 5
under AS 38.05.430, or [OF] a patent for state la nd, an official cadastral survey shall 6
be accomplished, unless a comparable, approved survey exists that has been conducted 7
by the federal Bureau of Land Management. Before land may be of fered under 8
AS 38.08 or AS 38.09, or before land may be offered under AS 38 .05.055 or 9
38.05.057, except land that is classified for agricultural uses , an official rectangular 10
survey grid shall be established. The rectangular survey sectio n corner positions shall 11
be monumented and shown on a cadastral survey plat approved by the state. For those 12
areas where the state may wish to convey surface estate outside of an official 13
rectangular survey grid, the commissioner may waive monumentati on of individual 14
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section corner positions and substitute an official control sur vey with control points 1
being monumented and shown on cont rol survey plats approved by the state. The 2
commissioner may not issue more than one conveyance for each se ction within a 3
township outside of an official rectangular survey grid. Land t o be conveyed may not 4
be located more than two miles from an official survey control monument except that 5
the commissioner may waive this requirement on a determination that a single purpose 6
use does not justify the requirement if the existing status of the land is known with 7
reasonable certainty. The lots and tracts in state subdivisions shall be monumented and 8
the cadastral survey and plats for the subdivision shall be approved by the state. Where 9
land is located within a municipality with planning, platting, and zoning powers, plats 10
for state subdivisions shall comply with local ordinances and r egulations in the same 11
manner and to the same extent a s plats for subdivisions by othe r landowners. State 12
subdivisions shall be filed and re corded in the district record er's office. The 13
requirements of this section do not apply to land made availabl e for material sales, for 14
short-term leases, or for parcels adjoining a surveyed right-of-way, to land subject to 15
a clean energy project develop ment license issued under AS 38.0 5.410, o r to 16
[FOR] land that has been open to random staking under the homes tead program in the 17
past; however, for short-term leases, the lessee shall comply w ith local subdivision 18
ordinances unless waived by th e municipality under procedures s pecified by 19
ordinance. In this subsection, "a single purpose use" includes a communication site, an 20
aid to navigation, and a park site. 21
* Sec. 2. AS 38.05.035(a) is amended to read: 22
(a) The director shall 23
(1) have general charge and supervision of the division and ma y 24
exercise the powers specifically delegated to the director; the director may employ and 25
fix the compensation of assistants and employees necessary for the operations of the 26
division; the director is the cer tifying officer of the divisio n, with the consent of the 27
commissioner, and may approve vouchers for disbursements of money appropriated to 28
the division; 29
(2) manage, inspect, and control state land and improvements o n it 30
belonging to the state and under the jurisdiction of the division; 31
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(3) execute laws, rules, regulations, and orders adopted by th e 1
commissioner; 2
(4) prescribe application procedures and practices for the sale, lease, or 3
other disposition of available land, resources, property, or interest in them; 4
( 5 ) p r e s c r i b e f e e s o r s e r v i c e c h a r g e s , w i t h t h e c o n s e n t o f t h e 5
commissioner, for any public service rendered; 6
(6) under the conditions and limitations imposed by law and th e 7
commissioner, issue deeds, leases, or other conveyances disposi ng of available land, 8
resources, property, or any interests in them; 9
(7) have jurisdiction over state land, except that land acquir ed by the 10
Alaska World War II Veterans Board and the Agricultural Loan Bo ard or the 11
departments or agencies succeeding to their respective function s through foreclosure 12
or default; to this end, the dir ector possesses the powers and, with the approval of the 13
commissioner, shall perform the du ties necessary to protect the state's rights and 14
interest in state land, including the taking of all necessary action to protect and enforce 15
the state's contractual or other property rights; 16
(8) maintain the records the commissioner considers necessary, 17
administer oaths, and do all things incidental to the authority imposed; the following 18
records and files shall be kep t confidential upon request of th e person supplying the 19
information: 20
(A) the name of the person nominating or applying for the sale , 21
lease, or other disposal of land by competitive bidding; 22
(B) before the announced time of opening, the names of the 23
bidders and the amounts of the bids; 24
(C) all geological, geophysical, meteorological, and other 25
engineering data supplied, whether or not concerned with the ex traction or 26
development of natural resources; 27
(D) except as provided in AS 38.05.036, cost data and financia l 28
information submitted in support of applications, bonds, leases , and similar 29
items; 30
(E) applications for rights-of-way or easements; 31
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(F) requests for information or applications by public agencie s 1
for land that is being considered for use for a public purpose; 2
(G) the name of an applicant for a clean energy project 3
development license under AS 38.05.410; 4
(9) account for the fees, licenses, taxes, or other money rece ived in the 5
administration of this chapter including the sale or leasing of land, identify their 6
source, and promptly transmit them to the proper fiscal departm ent after crediting 7
them to the proper fund; receipts from land application filing fees and charges for 8
copies of maps and records shall be deposited immediately in th e general fund of the 9
state by the director; 10
(10) select and employ or obtai n at reasonable compensation cadastral, 11
appraisal, or other professiona l personnel the director conside r s n e c e s s a r y f o r t h e 12
proper operation of the division; 13
(11) be the certifying agent of the state to select, accept, a nd secure by 14
whatever action is necessary in the name of the state, by deed, sale, gift, devise, 15
judgment, operation of law, or o ther means any land, of whateve r nature or interest, 16
available to the state; and be the certifying agent of the stat e, to select, accept, or 17
secure by whatever action is necessary in the name of the state any land, or title or 18
interest to land available, gra nted, or subject to being transf erred to the state for any 19
purpose; 20
(12) on request, furnish record s, files, and other information related to 21
the administration of AS 38.05.180 to the Department of Revenue f o r u s e i n 22
forecasting state revenue under or administering AS 43.55, whet her or not those 23
records, files, and other inform ation are required to be kept c onfidential under (8) of 24
this subsection; in the case of records, files, or other inform ation required to be kept 25
confidential under (8) of this s ubsection, the Department of Re venue shall maintain 26
the confidentiality that the Department of Natural Resources is required to extend to 27
records, files, and other information under (8) of this subsection; 28
(13) when reasonably possible, g ive priority to and expedite t he 29
processing of an application for a lease or assignment of a lea se of state land for 30
development and operation of a clean energy project under AS 38.05.400 - 31
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38.05.460 or a gas storage facility, for a right-of-way necessary for a clean energy 1
project under AS 38.05.400 - 38.05.460 or [TO] a gas storage facility, for a change 2
to the allocation of production w ithin a unit, and for a permit necessary for the 3
operation of a gas storage facility; in this paragraph, "gas st orage facility" has the 4
meaning given in AS 31.05.032; 5
(14) prepare and submit to the senate secretary and chief cler k of the 6
house of representatives on or before the first day of each reg ular session of the 7
legislature an annual report in electronic form concerning site lease applications 8
submitted under AS 38.05.083; in preparing and submitting the r eport, the director 9
shall 10
(A) include in the report 11
(i) a list of all applications pending with the department, 12
including applications for a new lease and applications for ren ewal, 13
amendment, and assignment of a lease, and the length of time ea ch 14
application has been pending with the department; 15
(ii) for an application that has not been granted, the 16
reason the application has not been granted; and 17
(iii) the number of leases that the director elected not to 18
renew under AS 38.05.070; 19
(B) notify the legislature that the report is available. 20
* Sec. 3. AS 38.05.035(e) is amended to read: 21
(e) Upon a written finding that the interests of the state will be best served, the 22
director may, with the consent of the commissioner, approve con t r a c t s f o r t h e s a l e , 23
lease, or other dispos al of available land, resources, property , or interests in them. In 24
approving a contract under this subsection, the director need o nly prepare a single 25
written finding. In addition to the conditions and limitations imposed by law, the 26
director may impose additional conditions or limitations in the contracts as the director 27
determines, with the consent of the commissioner, will best ser ve the interests of the 28
state. The preparation and issuance of the written finding by t he director are subject to 29
the following: 30
(1) with the consent of the commissioner and subject to the di rector's 31
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discretion, for a specific proposed disposal of available land, resources, or property, or 1
of an interest in them, the director, in the written finding, 2
(A) shall establish the scope of the administrative review on 3
which the director's determination is based, and the scope of t he written 4
finding supporting that determination; the scope of the adminis trative review 5
and finding may address only reasonably foreseeable, significan t effects of the 6
uses proposed to be authorized by the disposal; 7
(B) may limit the scope of an administrative review and finding 8
for a proposed disposal to 9
(i) applicable statutes and regulations; 10
(ii) the facts pertaining to the land, resources, or 11
property, or interest in them, th at the director finds are mate rial to the 12
determination and that are known to the director or knowledge of which 13
is made available to the director during the administrative review; and 14
(iii) issues that, based on the statutes and regulations 15
referred to in (i) of this subparagraph, on the facts as described in (ii) of 16
this subparagraph, and on the nature of the uses sought to be authorized 17
by the disposal, the director finds are material to the determi nation of 18
whether the proposed disposal will best serve the interests of the state; 19
and 20
(C) may, if the project for which the proposed disposal is 21
sought is a multiphased development, limit the scope of an admi nistrative 22
review and finding for the propos ed disposal to the applicable statutes and 23
regulations, facts, and issues identified in (B)(i) - (iii) of this paragraph that 24
pertain solely to the disposal phase of the project when 25
(i) the only uses to be authorized by the proposed 26
disposal are part of that phase; 27
( i i ) t h e d i s p o s a l i s the issuance of a clean energy 28
project development license under AS 38.05.410, a disposal of oil 29
and gas, or of gas only, and, before the next phase of the proj ect may 30
proceed, public notice and the opportunity to comment are provi ded 31
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under regulations adopted by the department; 1
(iii) the department's approval is required before the 2
next phase of the project may proceed; and 3
(iv) the department describes its reasons for a decision 4
to phase; 5
(2) the director shall discuss in the written finding prepared and issued 6
under this subsection the reasons that each of the following wa s not material to the 7
director's determination that the interests of the state will be best served: 8
(A) facts pertaining to the land, resources, or property, or a n 9
interest in them other than those that the director finds material under (1)(B)(ii) 10
of this subsection; and 11
(B) issues based on the statutes and regulations referred to i n 12
(1)(B)(i) of this subsection and on the facts described in (1)( B)(ii) of this 13
subsection; 14
(3) a written finding for an oil and gas lease sale or gas onl y lease sale 15
under AS 38.05.180 is subject to (g) of this section; 16
(4) a contract for the sale, lease, or other disposal of avail able land or 17
an interest in land is not legally binding on the state until t he commissioner approves 18
the contract, but if the appraise d value is not greater than $5 0,000 in the case of the 19
sale of land or an interest i n land, or $5,000 in the case of t he annual rental of land or 20
interest in land, the director m ay execute the contract without the approval of the 21
commissioner; 22
(5) public notice requirements relating to the sale, lease, or o t h e r 23
disposal of available land or an interest in land for oil and g as, or for gas only, 24
proposed to be scheduled in the five-year oil and gas leasing p rogram under 25
AS 38.05.180(b), except for a sale under (6)(F) of this subsection, are as follows: 26
(A) before a public hearing, if held, or in any case not less than 27
180 days before the sale, lease, or other disposal of available land or an interest 28
in land, the director shall make available to the public a prel iminary written 29
finding that states the scope o f the review established under ( 1)(A) of this 30
subsection and includes the applicable statutes and regulations , the material 31
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facts and issues in accordance with (1)(B) of this subsection, and information 1
required by (g) of this section, on [ U P O N ] w h i c h t h e d e t e r m i n a t i o n t h a t t h e 2
sale, lease, or other disposal will serve the best interests of the state will be 3
based; the director shall provi de opportunity for public commen t on the 4
preliminary written finding for a period of not less than 60 days; 5
(B) after the public comment period for the preliminary writte n 6
finding and not less than 90 days before the sale, lease, or ot her disposal of 7
available land or an interest in land for oil and gas or for ga s only, the director 8
shall make available to the public a final written finding that states the scope of 9
the review established under (1)(A) of this subsection and incl udes the 10
applicable statutes and regulations, the material facts and iss ues in accordance 11
with (1) of this subsection, and information required by (g) of this section, on 12
[UPON] which the determination that the sale, lease, or other d isposal will 13
serve the best interests of the state is based; 14
(6) before a public hearing, if held, or in any case not less than 21 days 15
before the sale, lease, or othe r disposal of available land, pr operty, resources, or 16
interests in them other than a s ale, lease, or other disposal o f available land or an 17
interest in land for oil and gas or for gas only under (5) of t his subsection, the director 18
shall make available to the public a written finding that, in a ccordance with (1) of this 19
subsection, sets out the material facts and applicable statutes and regulations and any 20
other information required by statute or regulation to be consi dered on [UPON] which 21
the determination that the sale, lease, or other disposal will best serve the interests of 22
the state was based; however, a written finding is not required before the approval of 23
(A) a contract for a nego tiated sale authorized under 24
AS 38.05.115; 25
(B) a lease of land for a shore fishery site under AS 38.05.082; 26
(C) a permit or other authorization revocable by the 27
commissioner; 28
(D) a mineral claim located under AS 38.05.195; 29
(E) a mineral lease issued under AS 38.05.205; 30
(F) an exempt oil and gas lease sale or gas only lease sale under 31
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AS 38.05.180(d) of acreage subject to a best interest finding i ssued within the 1
previous 10 years or a reoffer oil and gas lease sale or gas only lease sale under 2
AS 38.05.180(w) of acreage subject to a best interest finding i ssued within the 3
previous 10 years, unless the commissioner determines that subs tantial new 4
information has become available that justifies a supplement to the most recent 5
best interest finding for the exe mpt oil and gas lease sale or gas only lease sale 6
acreage and for the reoffer oil and gas lease sale or gas only lease sale acreage; 7
however, for each oil and gas lease sale or gas only lease sale described in this 8
subparagraph, the director sha ll call for comments from the pub lic; the 9
director's call for public comme nts must provide opportunity fo r public 10
comment for a period of not less than 30 days; if the director determines that a 11
supplement to the most recent be st interest finding for the acr eage is required 12
under this subparagraph, 13
(i) the director shall issue the supplement to the best 14
interest finding not later than 90 days before the sale; 15
(ii) not later than 45 days before the sale, the director 16
shall issue a notice describing the interests to be offered, th e location 17
and time of the sale, and the terms and conditions of the sale; and 18
(iii) the supplement has the st atus of a final written best 19
interest finding for purposes of (i) and (l) of this section; 20
(G) a surface use lease under AS 38.05.255; 21
(H) a permit, right-of-way, or easement issued under 22
AS 38.05.430(a) or 38.05.850 [AS 38.05.850]; 23
(7) the director shall include in 24
(A) a preliminary written finding, if required, a summary of 25
agency and public comments, if any, obtained as a result of con tacts with other 26
agencies concerning a proposed disposal or as a result of infor mal efforts 27
undertaken by the department to solicit public response to a pr oposed disposal, 28
and the department's preliminary responses to those comments; and 29
(B) the final written finding a summary of agency and public 30
comments received and the department's responses to those comments. 31
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* Sec. 4. AS 38.05.070(e) is amended to read: 1
(e) The director may renew a lease issued under this section, AS 38.05.075, 2
38.05.083, 38.05.430, or 38.05.810 upon its expiration if the lease is in good stand ing 3
and the lease renewal is determined to be in the best interests of the state. A renewal 4
issued under this subsection is not subject to AS 38.05.035(e). A lease under this 5
section, AS 38.05.075, 38.05.430, or 38.05.810 may be renewed only once for a term 6
not longer than the initial term of the lease. The director sha ll provide notice of the 7
lease renewal decision. 8
* Sec. 5. AS 38.05.075(a) is amended to read: 9
(a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.081, 10
38.05.082, 38.05.083, 38.05.087, 38.05.102, 38.05.400 - 38.05.460, 38.05.565, 11
38.05.600, 38.05.810, and this section, when competitive intere st has been 12
demonstrated or the commissioner determines that it is in the s tate's best interests, 13
leasing shall be made at public auction or by sealed bid, at th e discretion of the 14
director, to the highest qualifie d bidder as determined by the commissioner. A bidder 15
may be represented by an attorney or agent at a public auction. In the public notice of 16
a lease to be offered at public auction or by sealed bid, the c ommissioner shall specify 17
a minimum acceptable bid and the lease compensation method. The lease 18
compensation method shall be designed to maximize the return on t h e l e a s e t o t h e 19
state and shall be a form of compensation set out in AS 38.05.0 73(m). An aggrieved 20
bidder may appeal to the commissioner within five days for a re view of the 21
determination. The leasing shall be conducted by the commissioner, and the successful 22
bidder shall deposit at the public auction or with the sealed bid the first year's rental or 23
other lease compensation as specified by the commissioner, or t hat portion of it that 24
the commissioner requires in accordance with the bid. The commissioner shall require, 25
under AS 38.05.860, qualified bidders t o deposit a sum equal to any survey or 26
appraisal costs reasonably incu rred by another qualified bidder acting in accordance 27
with the regulations of the commissioner or incurred by the dep artment under 28
AS 38.04.045 and AS 38.05.840. If a bidder making a deposit of survey or appraisal 29
costs is determined by the commissioner to be the highest quali fied bidder under this 30
subsection, the deposit shall be p aid to the unsuccessful bidde r who incurred those 31
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costs or to the department if the department incurred the costs. All costs for survey and 1
appraisal shall be approved in advance in writing by the commis sioner. The 2
commissioner shall immediately issue a receipt containing a des cription of the land or 3
interest leased, the price bid, and the terms of the lease to t he successful qualified 4
bidder. If the receipt is not accepted in writing by the bidder under this subsection, the 5
commissioner may offer the land for lease again under this subs ection. A lease, on a 6
form approved by the attorney general, shall be signed by the s uccessful bidder and by 7
the commissioner. 8
* Sec. 6. AS 38.05.102 is amended to read: 9
Sec. 38.05.102. Lessee preference. Except for a lease under AS 38.05.081 , 10
[OR] 38.05.083, or 38.05.430, if land within a leasehold created under AS 38.05.070 - 11
38.05.105 is offered for sale or long -term lease at the termina tion of the existing 12
leasehold, the director may, upon a finding that it is in the b est interest of the state, 13
allow a holder in good standing of the existing leasehold to pu rchase or lease the land 14
for its appraised fair market value at the time of the sale or long-term lease. 15
* Sec. 7. AS 38.05.125(a) is amended to read: 16
(a) Each contract for the sale, lease, or grant of state land, and each deed to 17
state land, properties, or intere st in state land, made under A S 38.05.045 - 38.05.120, 18
38.05.321, 38.05.400 - 38.05.460, 38.05.810 - 38.05.825, AS 38.08, or AS 38.50 19
except as provided in AS 38.50.050 is subject to the following reservations: "The 20
party of the first part, Alaska, hereby expressly saves, except s, and reserves out of the 21
grant hereby made, unto itself, its lessees, successors, and as signs forever, all oils, 22
gases, coal, ores, minerals, fissionable materials, geothermal resources, and fossils of 23
every name, kind , or description, and which may be in or upon said land above 24
described, or any part thereof, a nd the right to explore the sa me for such oils, gases, 25
coal, ores, minerals, fissionable materials, geothermal resourc es, and fossils, and it 26
also hereby expressly saves and reserves out of the grant hereb y made, unto itself, its 27
lessees, successors, and assigns forever, the right to enter by itself, its or their agents, 28
attorneys, and servants upon said land, or any part or parts thereof, at any and all times 29
for the purpose of opening, developing, drilling, and working m ines or wells on these 30
or other land and taking out and removing therefrom all such oi ls, gases, coal, ores, 31
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minerals, fissionable materials, geothermal resources, and foss ils, and to that end it 1
further expressly reserves out of the grant hereby made, unto i tself, its lessees, 2
successors, and assigns forever, the right by its or their agen ts, servants, and attorneys 3
at any and all times to erect, construct, maintain, and use all such buildings, 4
machinery, roads, pipelines, powerlines, and railroads, sink su ch shafts, drill such 5
wells, remove such soil, and to r emain on said land or any part t h e r e o f f o r t h e 6
foregoing purposes and to occupy as much of said land as may be necessary or 7
convenient for such purposes hereby expressly reserving to itse lf, its lessees, 8
successors, and assigns, as afor esaid, generally all rights and power in, to, and over 9
said land, whether herein expre ssed or not, reasonably necessar y or convenient to 10
render beneficial and efficient the complete enjoyment of the p roperty and rights 11
hereby expressly reserved." 12
* Sec. 8. AS 38.05.127(a) is amended to read: 13
(a) Except as provided in (e) of this section, before [BEFORE] the sale, 14
lease, grant, or other disposal of any interest in state land a djacent to a body of water 15
or waterway, the commissioner shall, 16
(1) determine if the body of water or waterway is navigable wa ter, 17
public water, or neither; 18
(2) upon finding that the body of water or waterway is navigab le or 19
public water, provide for the sp ecific easements or rights-of-w ay necessary to ensure 20
free access to and along the body of water, unless the commissi oner finds that 21
regulating or limiting access is necessary for other beneficial uses or public purposes. 22
* Sec. 9. AS 38.05.127(e) is repealed and reenacted to read: 23
(e) For a clean energy project under AS 38.05.400 - 38.05.460 or an oil and 24
gas, gas only, or mineral lease, the determination required und er (a)(1) of this section 25
and, if applicable, the provision of an easement or right-of-wa y under (a)(2) of this 26
section are required only once the lease under AS 38.05.430 or oil and gas, gas only, 27
or mineral lease is ready to be developed. 28
* Sec. 10. AS 38.05 is amended by adding new sections to read: 29
Article 12A. Clean Energy Projects. 30
Sec. 38.05.400. Clean energy project program. (a) The commissioner may 31
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issue clean energy project development licenses under AS 38.05. 410 for the use of 1
state land, including tide, submerged, and shoreland, that entitle a licensee to exclusive 2
use of the licensed land for the purposes of determining the fe asibility of a clean 3
energy project and preparing a development plan and, upon appro val of the licensee's 4
development plan under AS 38.05.420, to a preference right for a lease and for rights-5
of-way and other land use rights and authorizations necessary t o implement the 6
development plan. 7
(b) The commissioner shall adopt regulations to implement AS 3 8.05.400 - 8
38.05.460, including regulations 9
(1) setting fees to be paid to the department for submission o f clean 10
energy project development license applications and for issuance of licenses; 11
(2) providing for departmental review of a licensee's developm ent plan 12
and lease application; 13
(3) addressing rights-of-way and other necessary land use 14
authorizations and payment to the state for those land use rights. 15
(c) AS 38.05.400 - 38.05.460 authorize the issuance of land us e authorizations 16
to develop clean energy projects only on the state's surface estate. 17
Sec. 38.05.410. Clean energy projec t development licenses. (a) A clean 18
energy project development license issued under this section is limited to a maximum 19
of 3,000,000 acres of state land. The commissioner may identify state land eligible for 20
development and operation of clean energy projects and notify the public that the land 21
is available for those purposes. State land may also be identif ied by an applicant in an 22
application submitted under (e) of this section. 23
(b) Subject to the bonding r equirements of AS 38.05.440, a cle an energy 24
project development license aut horizes the licensee to conduct feasibility studies and 25
prepare a development plan for the licensed land. A licensee ma y conduct sampling, 26
mapping, data collection, and limited construction and developm ent activities needed 27
to determine the feasibility of a project and complete a develo pment plan under 28
AS 38.05.420. In this subsection, "limited construction" includ es installing a 29
meteorological tower, performi ng geotechnical work, establishin g a personnel camp, 30
constructing a helicopter landing pad, and other similar activities. 31
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(c) An initial clean energy project development license issued under this 1
section may be issued for a maximu m term of 10 y ears. A license may be extended 2
twice for a period of up to 10 years each time if the commissio ner determines that the 3
licensee 4
(1) is in compliance with the license terms, conditions, and 5
stipulations; 6
(2) has diligently pursued the licensed activities; and 7
(3) is likely to complete a feasibility study if granted an extension. 8
(d) The commissioner may, subject to the acreage limits of (a) of this section, 9
amend the area covered by a clean energy project development li cense during the 10
license term. The commissioner sh all provide public notice of a n amendment under 11
this subsection that increases the area covered by a license by 5,000 acres or more. 12
(e) A person may submit to the department an application reque sting a clean 13
energy project development license. An applicant must meet qual ifications established 14
in regulations adopted by the commissioner. An application for a license under this 15
section must, at a minimum, contain detailed information including 16
(1) a description of the proposed clean energy project; 17
(2) the proposed area to be covered by the license; 18
(3) a description of the nature and scope of activities to be completed 19
during the term of the license; 20
(4) a description of performance benchmarks and project milest ones 21
for each phase of the proposed c lean energy project, including feasibility studies and 22
project design, funding, construction, and operation; and 23
(5) information relating to project viability, including finan cing plans, 24
market demand, and anticipated revenue. 25
(f) In addition to information re quired under (e) of this sect ion, the 26
commissioner may require an applicant to provide additional inf ormation that the 27
commissioner determines is necessary to evaluate the application. 28
(g) Upon receiving an applicati on for a clean energy project d evelopment 29
license, the department shall solicit competitive interest by i ssuing a public notice in 30
the manner prescribed in AS 38.05.945. The notice must contain an announcement 31
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SB0091A -15- SB 91
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seeking competitive interest. If competing applications are rec eived following notice, 1
the commissioner shall evaluate the applications as described in (h) of this section. 2
(h) If the commissioner receives two or more clean energy proj ect 3
development license applications for the same land, the commiss ioner shall review 4
each application and evaluate each application against the othe rs. In evaluating 5
competing applications, the commissioner shall consider 6
(1) whether the applications are for clean energy projects tha t are 7
similar, compatible, or mutually exclusive for the area proposed; 8
(2) the proposed monetary terms; 9
(3) the potential revenue to the state; 10
(4) the qualifications of each applicant, including the applic ant's 11
previous experience with the type of clean energy project proposed; 12
(5) how the proposed use would accommodate multiple uses of th e 13
land; and 14
(6) any additional considerati ons established by the departmen t in 15
regulation. 16
(i) The commissioner may issue a clean energy project 17
development license only after th e director issues a finding un der 18
AS 38.05.035(e)(6) that the license i s in the best interests of the state. 19
In addition to the requirement s of AS 38.05.035(e), the best in terest 20
finding for a clean energy project development license must 21
(1) describe the area of state land subject to the license by aliquot parts 22
or another descriptive method that reasonably describes the land; 23
(2) include any limitations, sti pulations, conditions, or chan ges to the 24
proposal that the director determines are required for the license to conform to the best 25
interests of the state; 26
(3) outline the specific benchmarks and work that must be sati sfied 27
during the license term; and 28
(4) when competing applicati ons are received, address the 29
considerations listed under (h) of this section. 30
(j) State land subject to a clean energy project development l icense must, to 31
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SB 91 -16- SB0091A
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the extent not incompatible with the licensee's approved activities, remain open to 1
(1) the public for access, hunting, fishing, and other general ly allowed 2
uses as determined by the department; and 3
(2) other resource exploration and development, including mining. 4
(k) A licensee's use of water within an area covered by a clea n energy project 5
development license is limited to those uses necessary to compl ete a feasibility study 6
and prepare a development plan. Use of water within a license a rea is governed by 7
AS 46.15. 8
Sec. 38.05.420. Development plans. (a) Before the commissioner may issue a 9
lease for a clean energy pro ject under AS 38.05.430 or other re lated authorization, a 10
licensee under AS 38.05.410 must submit and the commissioner mu st approve a 11
development plan for the project. The development plan must 12
(1) identify all infrastructure required for the completed project; 13
(2) identify all locations where proposed infrastructure would b e 14
located; 15
(3) include a schematic design for the overall project; 16
(4) list all land use authoriza tions needed to construct and o perate the 17
project; 18
(5) include the timeline for completing design development and 19
construction; and 20
(6) contain other information the commissioner determines is 21
necessary to facilitate the commissioner's determination to app rove or disapprove the 22
development plan under this section. 23
(b) The commissioner shall review a development plan submitted under (a) of 24
this section and prepare a written finding approving, approving in part, modifying, or 25
disapproving the development pla n. The commissioner shall deter mine and include in 26
the written finding 27
(1) whether any changes or additions to information considered in the 28
best interest finding conduc ted under AS 38.05.410(i) are neede d for the licensee's 29
clean energy project development license, considering the facto rs described in 30
AS 38.05.035(e)(1) and (2); 31
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(2) the likelihood that the pro ject will be constructed and su ccessfully 1
operated; 2
(3) the potential monetary return to the state; and 3
(4) the cumulative effects of the project, taking into account all aspects 4
o f t h e p r o j e c t c o n s i d e r e d a s a whole and the context in which t he project would be 5
developed. 6
(c) The commissioner's written fi nding under (b) of this secti on is subject to 7
public notice as required by AS 38.05.945. 8
Sec. 38.05.430. Leases, easements, rights-of-way, and other lan d use 9
authorizations. (a) Subject to the bonding re quirements of AS 38.05.440, after the 10
commissioner approves, or approves in part, a development plan under AS 38.05.420, 11
the commissioner may, upon an application from the licensee, en ter into leases with 12
and issue authorizations to a clean energy project development licensee that are 13
identified in the development plan approved by the commissioner under AS 38.05.420 14
and within the area license d under AS 38.05.410. A separate bes t interest finding 15
under AS 38.05.035(e) is not required for a lease, easement, or right-of-way accounted 16
for in the licensee's approved development plan. AS 38.05.070(d ) does not apply to 17
leases issued under this section. The commissioner may issue a lease, easement, or 18
right-of-way under this section for a maximum period of 55 year s and may renew a 19
lease, easement, or right-of-way under this section once for a period not to exceed 55 20
years. A lease agreement under this section must include land u se restrictions and 21
authorizations consistent with the purpose of the lease. 22
(b) A lease, easement, or righ t-of-way that is not accounted f or in a licensee's 23
development plan is subject t o the requirements of AS 38.05.070 - 38.05.105 and 24
38.05.850, including best interest findings and public notice. A clean energy project 25
development licensee under AS 38.05.410 or lessee under this section shall apply for a 26
permit, right-of-way, or easement under AS 38.05.850 for any ne cessary road, 27
pipeline, facility, or other infrastructure necessary for development of the clean energy 28
project. A lease, easement, or right-of-way issued under this s ection is subject to the 29
following requirements: 30
(1) a right-of-way for an oil or natural gas pipeline is subje ct to 31
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AS 38.35, as applicable; 1
(2) the commissioner may include in a lease or right-of-way reasonable 2
provisions and conditions the co mmissioner determines are requi red by the public 3
interest; 4
(3) a lease, easement, or right-of-way, including a pipeline r ight-of-5
way, must also contain terms and conditions that, to the extent reasonably practicable, 6
(A) prevent conflict with other existing beneficial uses of th e 7
land; 8
(B) protect state and private interests in real property; 9
(C) prevent significant adverse environmental effects to 10
(i) land, including erosion; and 11
(ii) fish and wildlife and fish and wildlife habitat; 12
(D) ensure that the land is protected during the term of the lease 13
and, at termination of the lease, is restored and revegetated; 14
(E) protect the interests of individuals living in the general area 15
of the lease, right-of-way, or easement who rely on the fish, w ildlife, and 16
replenishable resources of the area for subsistence purposes. 17
(c) Except as provided in (d) of this section, the commissione r shall ensure 18
that compensation for a lease, easement, or right-of-way under this section shall be a 19
form of compensation provided under AS 38.05.073(m), selected t o provide the 20
greatest economic benefit to the state and the development of i ts resources. 21
Compensation for land leased under this section shall be separa tely accounted for 22
under AS 37.05.142. The lease must stip ulate that, at five-year intervals, the lease rent 23
is subject to adjustment to ensure that the state receives the maximum benefit from the 24
lease. 25
(d) Compensation for a pipeline right-of-way lease under this section shall be 26
determined by the commissioner in accordance with AS 38.35.140 and 38.35.145. 27
(e) Land leased under this sec tion must remain open to mineral exploration 28
and development, unless the co mmissioner determines that minera l exploration and 29
development are incompatible with the lessee's clean energy pro ject and closes the 30
land to mineral development under AS 38.05.300(c). 31
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Sec. 38.05.440. Bonding. Before the commissioner may issue a clean energy 1
project development license under AS 38.05.410 or a lease under AS 38.05.430, an 2
applicant for a license unde r AS 38.05.410(e) or lease under AS 38.05.430(a) shall 3
post a performance bond or provide other security acceptable to the commissioner to 4
cover the costs to the department of one or more of the followi ng, as determined by 5
the commissioner: 6
(1) administering and managing the license or lease to ensure 7
completion of the clean energy project and compliance with the terms and conditions 8
of the license or lease; 9
(2) administrating and managing the license or lease to ensure t h a t 10
development occurs according to the terms and conditions of the license or lease; and 11
(3) restoring the land at the conclusion of the license period or lease 12
term, upon the termination of the license or lease, or upon a f inding that work 13
associated with the clean energy project has been abandoned. 14
Sec. 38.05.450. Termination of clean energy project development license or 15
lease; improvements. (a) A violation of a provision of a clean energy project 16
development license or a lease under AS 38.05.430, or any terms , conditions, or 17
stipulations in the license or lease, subjects the licensee or lessee to appropriate legal 18
action, including revocation of the license or forfeiture of the lease. 19
(b) The commissioner has the di scretion to terminate or revoke a clean energy 20
project development license issued under AS 38.05.410 if the li censee fails to meet 21
benchmarks set out in the license. If a license or a lease unde r AS 38.05.430 is 22
terminated or work contemplated in the license or lease is aban doned, improvements 23
remaining on the land are subject to AS 38.05.090. 24
Sec. 38.05.460. Definitions. In AS 38.05.400 - 38.05.460, 25
(1) "applicant" means a person submitting a clean energy proje ct 26
development license application, development plan, or other application for a land use 27
authorization under AS 38.05.400 - 38.05.460; 28
(2) "competing applications" means the commissioner has receiv ed 29
two or more applications to license the same state land, or to license overlapping areas 30
of state land, for which only one proposal can be granted to en sure the licensee has 31
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exclusive use of the land; 1
(3) "exclusive use" means the exclusive right to conduct activ ities on 2
land subject to a clean energy pr oject development license for the purposes of 3
determining the feasibility of a clean energy project and prepa ration of a development 4
plan. 5
* Sec. 11. AS 38.05.945(a) is amended to read: 6
(a) This section establishes th e requirements for notice given b y t h e 7
department for the following actions: 8
(1) classification or reclassifi cation of state land under AS 38.05.300 9
and the closing of land to mineral leasing or entry under AS 38.05.185; 10
(2) zoning of land under applicable law; 11
(3) issuance of a 12
(A) preliminary written finding under AS 38.05.035(e)(5)(A) 13
regarding the sale, lease, or disposal of an interest in state land or resources for 14
oil and gas, or for gas only, subject to AS 38.05.180(b); 15
(B) written finding for the sale, lease, or disposal of an int erest 16
in state land or resources under AS 38.05.035(e)(6), except a l ease sale 17
described in AS 38.05.035(e)(6)(F) f or which the director must provide 18
opportunity for public comment under the provisions of that subparagraph; 19
(4) a competitive disposal of an interest in state land or res ources after 20
final decision under AS 38.05.035(e); 21
(5) a preliminary finding under AS 38.05.035(e) concerning sit es for 22
aquatic farms and related hatcheries; 23
(6) a decision under AS 38.05.132 - 38.05.134 regarding the sa le, 24
lease, or disposal of an interest in state land or resources; 25
(7) an exchange of state land under AS 38.50; 26
(8) solicitation of competitive interest under AS 38.05.081(c); 27
(9) a written finding required under AS 38.05.410(i), 38.05.42 0(c), 28
or 38.05.430(b). 29
* Sec. 12. AS 38.05.965 is amended by adding a new paragraph to read: 30
(29) "clean energy project" means a power generating utility o r 31
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industrial project that includes development of and primary reliance on one or more of 1
the following technologies: 2
(A) solar; 3
(B) wind; 4
(C) hydropower; 5
(D) biomass; 6
(E) energy storage, including pumped storage hydropower and 7
compressed air storage; or 8
(F) advanced nuclear technologies. 9