An Act relating to a state energy policy; relating to the green energy grant fund; and providing for an effective date.

HB 312 establishes a green energy grant fund in Alaska by directing 20% of revenue from the state's carbon offset program into it. The fund finances new renewable energy projects, including hydroelectric facilities, direct renewable energy use, and hydrogen fuel cell projects powered by renewable resources, with priority given to projects in areas where average energy costs exceed the state average. It also sets loan terms for eligible projects (up to 50 years) and requires interest rates to be at least 3% below standard rates (but not below 1%). The fund must submit annual reports to the legislature detailing grant applications and recommendations.