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SB 330: "An Act relating to water quality enhancement, water supply, wastewater, and solid waste grants; the Alaska clean water fund; the establishment of the Alaska clean water account, the Alaska drinking water fund, and the Alaska drinking water account; and providing for an effective date."

00 SENATE BILL NO. 330                                                                                                     
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  AS 46.03.030(b) is repealed and reenacted to read:                                                     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)  [CONSTRUCTING, EQUIPPING, MODIFYING, IMPROVING,                                                                 
14 AND EXPANDING SOLID WASTE MANAGEMENT AND PUBLIC WATER                                                                   
15 SUPPLY, TREATMENT, AND DISTRIBUTION SYSTEMS;                                                                            
16   (4)]  guaranteeing or purchasing insurance for a public agency debt                                               
17 obligation [OBLIGATIONS] related to the construction of a solid waste management                                     
18 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 or                                     
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.