00 CS FOR SENATE BILL NO. 330(FIN) 01 "An Act relating to water quality enhancement, water supply, wastewater, and 02 solid waste grants; the Alaska clean water fund; the establishment of the Alaska 03 clean water account, the Alaska drinking water fund, and the Alaska drinking 04 water account; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 46.03.030(b) is repealed and reenacted to read: 07  (b) The department may grant to a municipality, as funds are available, a grant 08 for any of the following: 09  (1) a water quality enhancement project; 10  (2) a public water supply, treatment, or distribution system; 11  (3) a wastewater collection, treatment, or discharge system; 12  (4) a solid waste processing, disposal, or resource recovery system. 13 * Sec. 2. AS 46.03.030(c) is amended to read: 14  (c) There is a water quality enhancement program and water supply, 01 wastewater [SEWAGE], and solid waste systems [FACILITIES] fund created in the 02 department to carry out the purposes of this section. 03 * Sec. 3. AS 46.03.030(d) is amended to read: 04  (d) The department shall, by regulation, identify those costs that are eligible 05 costs for the purposes of this section. Eligible costs [INCLUDE THE COSTS 06 ESTABLISHED IN A CONSTRUCTION CONTRACT THAT ARE NECESSARY 07 FOR CONSTRUCTION OF A PROJECT, BUT] do not include [THE COST OF] 08 interest and financing and right-of-way acquisition, or costs that are related to the 09 operation, maintenance, or repair of a system [PROJECT]. 10 * Sec. 4. AS 46.03.030(e) is repealed and reenacted to read: 11  (e) A grant under this section to a municipality for a project funded by an 12 appropriation made by the legislature 13  (1) before July 1, 1994, may not exceed 50 percent of the eligible costs 14 of the project; 15  (2) after July 1, 1994, may not exceed 16  (A) 85 percent of the eligible costs for a municipality with a 17 population of 1,000 persons or less; 18  (B) 70 percent of the eligible costs for a municipality with a 19 population of 1,001 to 5,000 persons; and 20  (C) 50 percent of the eligible costs for a municipality with a 21 population greater than 5,000 persons; however, if a municipality with a 22 population greater than 5,000 persons seeks a grant for a project that relates to 23 a solid waste processing or disposal system that incorporates resource recovery, 24 the department may provide a grant for up to 60 percent of the eligible costs 25 of the project. 26 * Sec. 5. AS 46.03.030 is amended by adding new subsections to read: 27  (g) The match required for grants made under this section may include 28  (1) federal funds; or 29  (2) state funds, other than those funds received under this section or 30 AS 37.06. 31  (h) Construction of a project for which a grant is made under this section may 01 commence only after the department has approved in writing the plans and 02 specifications for the project. 03 * Sec. 6. AS 46.03.032(d) is amended to read: 04  (d) Except as otherwise limited by federal law, the Alaska clean water fund 05 may be used for 06  (1) buying or refinancing the debt obligations of a municipality for 07 a public wastewater treatment system or a [WORKS AND] solid waste management 08 system [DEBT OBLIGATIONS OF MUNICIPALITIES]; 09  (2) planning, designing, building, constructing, and rehabilitating a 10 [FACILITIES ASSOCIATED WITH] solid waste management system or a [AND] 11 public wastewater [SEWAGE] collection, treatment, and discharge system 12 [FACILITIES]; 13  (3) collateral for [CONSTRUCTING, EQUIPPING, MODIFYING, 14 IMPROVING, AND EXPANDING SOLID WASTE MANAGEMENT AND PUBLIC 15 WATER SUPPLY, TREATMENT, AND DISTRIBUTION SYSTEMS; 16  (4) GUARANTEEING] or purchasing insurance for a public agency 17 debt obligation [OBLIGATIONS] related to the construction of a solid waste 18 management system or a public wastewater [AND] treatment system; 19  (4) developing and implementing a management program for 20 controlling water pollution from nonpoint sources under 33 U.S.C. 1329; and 21  (5) developing and implementing an estuary conservation and 22 management program under 33 U.S.C. 1330 [WORKS CONSTRUCTION]. 23 * Sec. 7. AS 46.03.032(f) is amended to read: 24  (f) The department may spend money from the Alaska clean water fund to 25 pay the costs of administering the fund. 26 * Sec. 8. AS 46.03.032(g) is amended to read: 27  (g) A municipality wishing to borrow money from the Alaska clean water 28 fund shall demonstrate to the satisfaction of the department that the municipality [,] 29  (1) has sufficient legal authority to incur the debt for which it is 30 applying; and 31  (2) [THAT IT] will establish and maintain a dedicated source of 01 revenue or other acceptable revenue source for repayment of the loan. 02 * Sec. 9. AS 46.03.032(l) is amended to read: 03  (l) Loan [EXCEPT AS PROVIDED IN (n) OF THIS SECTION, LOAN] 04 repayments and interest earned by loans from the Alaska clean water fund shall be 05 deposited in the Alaska clean water fund. 06 * Sec. 10. AS 46.03.032(m) is amended to read: 07  (m) Annual principal payments shall commence within one year after project 08 completion [, OR WITHIN TWO YEARS AFTER THE DATE THE LOAN IS 09 MADE, WHICHEVER IS EARLIER]. 10 * Sec. 11. AS 46.03 is amended by adding a new section to read: 11  Sec. 46.03.034. ALASKA CLEAN WATER ACCOUNT. (a) The Alaska 12 clean water account is established as a separate account which is distinct from other 13 money or funds in the treasury. 14  (b) The Alaska clean water account consists of state appropriations to the 15 Alaska clean water fund in excess of that amount required as a match for a federal 16 capitalization grant under 33 U.S.C. 1381 - 1387 (Clean Water Act). 17  (c) The department shall administer the Alaska clean water account. 18  (d) The Alaska clean water account may be used for purposes described in 19 AS 46.03.032(d). 20  (e) Principal repayments received on loans from the Alaska clean water 21 account shall be deposited in the Alaska clean water fund. Interest payments and 22 earnings shall be deposited in the clean water account. 23 * Sec. 12. AS 46.03 is amended by adding a new section to read: 24  Sec. 46.03.036. ALASKA DRINKING WATER FUND. (a) The Alaska 25 drinking water fund is established as a separate fund which is distinct from other 26 money or funds in the treasury. The Alaska drinking water fund consists of (1) federal 27 capitalization grants; (2) money appropriated by the legislature to meet federal 28 matching requirements; (3) loan repayments; and (4) if required by federal law or by 29 appropriation, interest received from loan repayments and interest received from 30 investment of money in the Alaska drinking water fund. 31  (b) The department may adopt regulations necessary to ensure that the 01 department administers and uses the Alaska drinking water fund in a manner consistent 02 with federal law. 03 * Sec. 13. AS 46.03 is amended by adding a new section to read: 04  Sec. 46.03.038. ALASKA DRINKING WATER ACCOUNT. (a) The Alaska 05 drinking water account is established as a separate account which is distinct from other 06 money or funds in the state treasury. 07  (b) The Alaska drinking water account consists of state appropriations to the 08 Alaska drinking water fund in excess of that amount required as a match for a federal 09 capitalization grant. 10  (c) The department shall administer the Alaska drinking water account. 11  (d) The Alaska drinking water account may be used for any purpose for which 12 the Alaska drinking water fund may be used. 13  (e) Principal repayments received on loans from the Alaska drinking water 14 account shall be deposited in the Alaska drinking water fund. Interest payments on 15 loans from the Alaska drinking water account and earnings on the Alaska drinking 16 water account shall be deposited in the Alaska drinking water account. 17 * Sec. 14. AS 46.03.030(f) and 46.03.032(n) are repealed. 18 * Sec. 15. Unless repealed by the department, regulations adopted by the Department of 19 Environmental Conservation before July 1, 1994, relating to water quality enhancement, water 20 supply, wastewater, and solid waste system grants, the Alaska clean water fund, or the Alaska 21 clean water account remain in effect until the effective date of regulations adopted by the 22 department to implement changes made by this Act. 23 * Sec. 16. Sections 1 - 11 and 14 - 15 of this Act take effect July 1, 1994. 24 * Sec. 17. Sections 12 and 13 of this Act take effect on the effective date of a federal law 25 authorizing changes to the federal Safe Water Drinking Act to allow the state to participate 26 in federal capitalization grants to finance projects related to drinking water. The commissioner 27 of environmental conservation shall certify to the revisor of statutes the effective date of a 28 federal law described in this section.