HB 485: "An Act relating to the powers of the Alaska Energy Authority to make grants and loans and enter into contracts; relating to the bulk fuel revolving loan fund; relating to the Alaska Energy Authority's liability for the provision of technical assistance to rural utilities; relating to the Alaska Energy Authority's investment of the power development fund; repealing the electrical service extension fund; and providing for an effective date."
00 HOUSE BILL NO. 485 01 "An Act relating to the powers of the Alaska Energy Authority to make grants and 02 loans and enter into contracts; relating to the bulk fuel revolving loan fund; relating to 03 the Alaska Energy Authority's liability for the provision of technical assistance to rural 04 utilities; relating to the Alaska Energy Authority's investment of the power development 05 fund; repealing the electrical service extension fund; and providing for an effective 06 date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 42.45.010(b) is amended to read: 09 (b) The [SUBJECT TO AS 42.45.060, THE] authority may make loans from 10 the power project fund 11 (1) to electric utilities, regional electric authorities, municipalities, 12 regional and village corporations, village councils, independent power producers, and 13 nonprofit marketing cooperatives to pay the costs of
01 (A) reconnaissance studies, feasibility studies, license and 02 permit applications, preconstruction engineering, and design of power projects; 03 (B) constructing, equipping, modifying, improving, and 04 expanding small-scale power production facilities that are designed to produce 05 less than 10 megawatts of power, [CONSERVATION FACILITIES,] bulk fuel 06 storage facilities, and transmission and distribution facilities, including energy 07 production, transmission and distribution, and waste energy, energy 08 conservation, energy efficiency, and alternative energy facilities and 09 equipment [THAT DEPEND ON FOSSIL FUEL, WIND POWER, TIDAL, 10 GEOTHERMAL, BIOMASS, HYDROELECTRIC, SOLAR, OR OTHER 11 NONNUCLEAR ENERGY SOURCES]; and 12 (C) reconnaissance studies, preconstruction engineering, 13 design, construction, equipping, modification, and expansion of potable water 14 supply including surface storage and groundwater sources and transmission of 15 water from surface storage to existing distribution systems; 16 (2) to a borrower for a power project or for bulk fuel, waste energy, 17 energy conservation, energy efficiency, or alternative energy facilities or 18 equipment if 19 (A) the loan is entered into under a leveraged lease financing 20 arrangement; 21 (B) the party that will be responsible for the power project is an 22 electric utility, regional electric authority, municipality, regional or village 23 corporation, village council, independent power producer, or nonprofit 24 marketing cooperative; and 25 (C) the borrower seeking the loan demonstrates to the authority 26 that the financing arrangement for the power project will reduce project 27 financing costs below costs of comparable public power projects. 28 * Sec. 2. AS 42.45.010 is amended by adding a new subsection to read: 29 (j) The authority may not enter into a loan from the power project fund for a 30 major project unless it has legislative approval of the project and the amount. An 31 appropriation for the loan that names the project constitutes approval required by this
01 subsection. A major project is a project in which the cumulative state monetary 02 involvement, through loans, grants, and bonds, is at least $5,000,000 or a project for 03 which a loan of more than $5,000,000 has been requested. 04 * Sec. 3. AS 42.45.020(b) is amended to read: 05 (b) The [SUBJECT TO AS 42.45.060, THE] authority may make loans from 06 the rural electrification revolving loan fund to electric utilities certified under 07 AS 42.05. A loan from the fund may be made only for the purpose of extending new 08 electric service into an area of the state that an electric utility may serve under a 09 certificate of public convenience and necessity issued under AS 42.05. A loan may be 10 made from the fund to an electric utility if the utility invests the money necessary to 11 provide one pole, one span of line, one transformer, and one service drop for each 12 consumer for whom immediate service would be provided by the extension of electric 13 service. However, a loan may not be made from the fund unless the extension of 14 electric service would provide immediate service to at least three consumers. 15 * Sec. 4. AS 42.45.170(a) is amended to read: 16 (a) An electric utility that is not subject to rate regulation by the Regulatory 17 Commission of Alaska under AS 42.05 may receive power cost equalization if the 18 utility is otherwise eligible for equalization assistance under AS 42.45.100 - 42.45.150 19 and if the utility 20 (1) files with the commission financial data necessary to determine the 21 power cost equalization per kilowatt-hour as prescribed by the commission and that is 22 in compliance with AS 42.45.100 - 42.45.150; 23 (2) reports monthly to the authority, within the time and in the form 24 required, the information required in (b) of this section; 25 (3) sets rates 26 (A) that consider the power cost equalization provided under 27 AS 42.45.100 - 42.45.150 by subtracting from its revenue requirements for 28 electric services the power cost equalization per kilowatt-hour that it is eligible 29 to receive; and 30 (B) under which the power cost equalization provided in 31 AS 42.45.070 - 42.45.110 [AS 42.45.060 - 42.45.110] is applied as a credit
01 only against the cost of kilowatt-hours eligible for equalization assistance 02 under AS 42.45.100 - 42.45.150 that are consumed by each customer in any 03 month; 04 (4) allows audits that the commission determines are necessary to 05 ensure compliance with this section; and 06 (5) furnishes its electric service customers eligible under this program 07 a notice as specified in AS 42.45.120. 08 * Sec. 5. AS 42.45.250(a) is amended to read: 09 (a) The bulk fuel revolving loan fund is established in the authority to assist 10 communities, utilities providing power in communities, and fuel retailers in 11 communities in purchasing bulk fuel to generate power or supply the public with 12 fuel for use in communities. A community, or a person generating power or 13 selling fuel in a community [PRIVATE INDIVIDUAL] who has written 14 endorsement from the governing body of each [THE] community for which a loan 15 from the fund is sought, is eligible for a loan from the bulk fuel revolving loan fund 16 for a [BULK FUEL] purchase of an emergency supply or a semi-annual or annual 17 supply of bulk fuel to be used in the community. 18 * Sec. 6. AS 42.45.250(e) is amended to read: 19 (e) Loans made from the bulk fuel revolving loan fund to one borrower in any 20 fiscal year [ARE NOT SUBJECT TO AS 42.45.060 AND] 21 (1) may not exceed $300,000; 22 (2) shall be repaid in one year or less; and 23 (3) may not exceed 90 percent of the wholesale price of the fuel 24 purchased. 25 * Sec. 7. AS 42.45.250(l) is amended by adding a new paragraph to read: 26 (3) "person" has the meaning given in AS 01.10.060; "person" includes 27 a corporation, a cooperative, a joint venture, and a governmental entity. 28 * Sec. 8. AS 42.45.400 is amended by adding a new subsection to read: 29 (c) This section does not create a duty in tort, and may not be the basis for an 30 action against the state, the authority, or the officers, employees, agents, or contractors 31 of either for damages, injury, or death.
01 * Sec. 9. AS 44.83.080 is amended to read: 02 Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 03 purposes, the authority has the following powers in addition to its other powers: 04 (1) to sue and be sued; 05 (2) to have a seal and alter it at pleasure; 06 (3) to make and alter bylaws for its organization and internal 07 management; 08 (4) to adopt regulations governing the exercise of its corporate powers; 09 (5) to improve, equip, operate, and maintain power projects and bulk 10 fuel, waste energy, energy conservation, energy efficiency, and alternative energy 11 facilities and equipment; 12 (6) to issue bonds to carry out any of its corporate purposes and 13 powers, including the establishment or increase of reserves to secure or to pay the 14 bonds or interest on them, and the payment of all other costs or expenses of the 15 authority incident to and necessary or convenient to carry out its corporate purposes 16 and powers; 17 (7) to sell, lease as lessor or lessee, exchange, donate, convey, or 18 encumber in any manner by mortgage or by creation of any other security interest, real 19 or personal property owned by it, or in which it has an interest, when, in the judgment 20 of the authority, the action is in furtherance of its corporate purposes; 21 (8) to accept gifts, grants, or loans from, and enter into contracts or 22 other transactions regarding them, with any person; 23 (9) to deposit or invest its funds, subject to agreements with 24 bondholders; 25 (10) to enter into contracts with the United States or any person and, 26 subject to the laws of the United States and subject to concurrence of the legislature, 27 with a foreign country or its agencies, for the construction, financing, operation, and 28 maintenance of all or any part of a power project or bulk fuel, waste energy, energy 29 conservation, energy efficiency, or alternative energy facilities or equipment, 30 either inside or outside the state, and for the sale or transmission of power from a 31 project or any right to the capacity of it or for the security of any bonds of the
01 authority issued or to be issued for the project; 02 (11) to enter into contracts with any person and with the United States, 03 and, subject to the laws of the United States and subject to the concurrence of the 04 legislature, with a foreign country or its agencies for the purchase, sale, exchange, 05 transmission, or use of power from a project, or any right to the capacity of it; 06 (12) to apply to the appropriate agencies of the state, the United States, 07 and to a foreign country and any other proper agency for the permits, licenses, or 08 approvals as may be necessary, and to maintain and operate power projects in 09 accordance with the licenses or permits, and to obtain, hold, and use the licenses and 10 permits in the same manner as any other person or operating unit; 11 (13) to enter into contracts or agreements with respect to the exercise 12 of any of its powers, and do all things necessary or convenient to carry out its 13 corporate purposes and exercise the powers granted in this chapter; 14 (14) to recommend to the legislature 15 (A) the pledge of the credit of the state to guarantee repayment 16 of all or any portion of revenue bonds issued to assist in construction of power 17 projects; 18 (B) an appropriation from the general fund 19 (i) for debt service on bonds or other project purposes; 20 or 21 (ii) to reduce the amount of debt financing for the 22 project; 23 (15) to carry out the powers and duties assigned to it under AS 42.45; 24 (16) to make grants or loans to any person and enter into contracts 25 or other transactions regarding the grants or loans. 26 * Sec. 10. AS 44.83.386 is amended to read: 27 Sec. 44.83.386. Investment of fund. The authority [DEPARTMENT OF 28 REVENUE] shall invest the money in the fund in the manner provided in 29 [ACCORDANCE WITH] AS 37.10.070, 37.10.071, and 37.10.075. The authority 30 may withdraw [DEPARTMENT OF REVENUE SHALL PROVIDE] money from 31 [IN] the fund [TO THE AUTHORITY] only after costs have been incurred or amounts
01 in the fund have been otherwise obligated under contracts for the acquisition and 02 construction of a project. [AMOUNTS THAT HAVE BEEN OBLIGATED, BUT 03 FOR WHICH COSTS HAVE NOT YET BEEN INCURRED, MAY BE 04 SEGREGATED BY THE DEPARTMENT OF REVENUE OR TRANSFERRED TO 05 THE AUTHORITY ONLY WITH THE PRIOR APPROVAL OR AGREEMENT OF 06 THE COMMISSIONER OF REVENUE. INCOME RECEIVED ON MONEY THAT 07 IS SEGREGATED OR TRANSFERRED UNDER THIS SECTION MUST BE 08 DEPOSITED IN THE GENERAL FUND.] 09 * Sec. 11. AS 42.45.060, 42.45.200, and 42.45.250(l)(1) are repealed. 10 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 RETROACTIVITY. Sections 5 and 7 of this Act are retroactive to June 1, 1984. 13 * Sec. 13. This Act takes effect immediately under AS 01.10.070(c).