State of Alaska
Fiscal Note
Bill Version: SB 123
2021 Legislative Session
Fiscal Note Number: 2
(S) Publish Date: 4/9/2021
Identifier: LL0074-2-CAP-AEIF-04-08-21 Department: Fund Capitalization
Title: ENERGY INDEPENDENCE PROGRAM & FUND: Appropriation: No Further Appropriation Required
AIDEA Allocation: Alaska Energy Independence Fund
Sponsor: RLS BY REQUEST OF THE GOVERNOR OMB Component Number:
Requester: Governor
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2022 Governor's
Appropriation FY2022 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2022 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous 10,000.0
Total Operating 10,000.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
1004 Gen Fund (UGF) 10,000.0
Total 10,000.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2021) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2022) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? Yes
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? Yes
If yes, by what date are the regulations to be adopted, amended or repealed? 01/01/22
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Alan Weitzner, Executive Director Phone: (907)771-3050
Division: Alaska Industrial Development and Export Authority Date: 04/07/2021 05:00 PM
Approved By: Micaela Fowler, Administrative Services Director, DCCED Date: 04/08/21
Agency: Office of Management and Budget
Printed 4/9/2021 Page 1 of 2 Control Code: hapRg
 SB 123 - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. LL 0074-2
2021 LEGISLATIVE SESSION
Analysis
This legislation would create and establish parameters for the Alaska Energy Independence Fund (Fund) and the Alaska
Energy Independence Program (Program) within the Alaska Industrial Development and Export Authority (AIDEA). It
provides AIDEA with the ability to arrange financing to suit Alaskas unique energy finance needs, particularly with regard
to addressing urban and rural energy requirements. It is estimated that establishing the Fund would create new jobs and
businesses, lower commercial and household energy costs for redeployment in Alaskas economy, and improve Alaskas
energy independence.
Estimated Fund Capitalization: $10 million
The appropriation represents the minimum level of capitalization required to optimally fulfill the mission and growth of
the Fund. The amount required for the fund capitalization is based on the initial capitalization received by the State of
New York and the State of Connecticut, as well as Montgomery County, Maryland in the establishment of similar
programs. The fund capitalization analysis factored in the percentage of the initial capitalization against each respective
states annual Gross Domestic Product and the state/county population per initial capitalization.
Additional factors that determined the capitalization estimate were sourced from the Coalition of Green Capital (CGC)
May 2020 Green Bank Opportunity Report, Municipality of Anchorage, which highlighted addressable market segments
for the program. In that report, CGC estimated that an initial capitalization of $5 million could finance 25 C-PACE projects
in Anchorage alone, ultimately resulting in over $700 thousand in energy savings and the creation of 70 jobs. All
municipalities within the State of Alaska will have access to the benefits of the Fund and its programs.
Once combined, the analysis suggested an initial capitalization for the fund to be between $7 million and $10 million. The
higher capitalization figure is requested due to Alaskas energy consumption per capita representing a 100% to 150%
premium to the comparable states and municipalities used in this analysis.
(Revised 8/20/20 OMB/LFD) Page 2 of 2
LL0074-2-CAP-AEIF-04-08-21 Page 2 of 2 Control Code: hapRg


Statutes affected:
SB0123A, AM SB 123, introduced 04/09/2021: 44.88.070, 44.88.010, 44.88.172, 44.88.159, 44.88.660, 44.88.650, 44.88.690, 44.88.810, 44.88.800, 44.88.840, 44.88.452, 44.88.450, 44.88.456, 44.88.155, 44.88.085, 44.88.178, 10.20.146, 10.20.166, 39.20.180, 44.88.060, 37.10.071, 37.10.010, 37.10.050, 37.25.050, 37.05.130, 37.05.140, 44.88.205, 44.88.454, 36.30.085, 29.55.100, 44.88.900