HCS CSSB 337(FIN): "An Act relating to the powers of the Alaska Energy Authority to make grants and loans, to enter into contracts, and to improve, equip, operate, and maintain bulk fuel, waste energy, energy conservation, energy efficiency, and alternative energy facilities and equipment; 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 continuation of the motor fuel tax rate for fuel produced from the processing of lignocellulose from wood or waste seafood; 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 CS FOR CS FOR SENATE BILL NO. 337(FIN) 01 "An Act relating to the powers of the Alaska Energy Authority to make grants and 02 loans, to enter into contracts, and to improve, equip, operate, and maintain bulk fuel, 03 waste energy, energy conservation, energy efficiency, and alternative energy facilities 04 and equipment; relating to the bulk fuel revolving loan fund; relating to the Alaska 05 Energy Authority's liability for the provision of technical assistance to rural utilities; 06 relating to the continuation of the motor fuel tax rate for fuel produced from the 07 processing of lignocellulose from wood or waste seafood; relating to the Alaska Energy 08 Authority's investment of the power development fund; repealing the electrical service 09 extension fund; and providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. AS 42.45.010(b) is amended to read: 12 (b) The [SUBJECT TO AS 42.45.060, THE] authority may make loans from
01 the power project fund 02 (1) to electric utilities, regional electric authorities, municipalities, 03 regional and village corporations, village councils, independent power producers, and 04 nonprofit marketing cooperatives to pay the costs of 05 (A) reconnaissance studies, feasibility studies, license and 06 permit applications, preconstruction engineering, and design of power projects; 07 (B) constructing, equipping, modifying, improving, and 08 expanding small-scale power production facilities that are designed to produce 09 less than 10 megawatts of power, [CONSERVATION FACILITIES,] bulk fuel 10 storage facilities, and transmission and distribution facilities, including energy 11 production, transmission and distribution, [AND] waste energy, energy 12 conservation, energy efficiency, and alternative energy facilities and 13 equipment [THAT DEPEND ON FOSSIL FUEL, WIND POWER, TIDAL, 14 GEOTHERMAL, BIOMASS, HYDROELECTRIC, SOLAR, OR OTHER 15 NONNUCLEAR ENERGY SOURCES]; and 16 (C) reconnaissance studies, preconstruction engineering, 17 design, construction, equipping, modification, and expansion of potable water 18 supply including surface storage and groundwater sources and transmission of 19 water from surface storage to existing distribution systems; 20 (2) to a borrower for a power project or for bulk fuel, waste energy, 21 energy conservation, energy efficiency, or alternative energy facilities or 22 equipment if 23 (A) the loan is entered into under a leveraged lease financing 24 arrangement; 25 (B) the party that will be responsible for the power project is an 26 electric utility, regional electric authority, municipality, regional or village 27 corporation, village council, independent power producer, or nonprofit 28 marketing cooperative; and 29 (C) the borrower seeking the loan demonstrates to the authority 30 that the financing arrangement for the power project will reduce project 31 financing costs below costs of comparable public power projects.
01 * Sec. 2. AS 42.45.010 is amended by adding a new subsection to read: 02 (j) The authority may not enter into a loan from the power project fund for a 03 major project unless it has legislative approval of the project and the amount. An 04 appropriation for the loan that names the project constitutes approval required by this 05 subsection. A major project is a project in which the cumulative state monetary 06 involvement, through loans, grants, and bonds, is at least $5,000,000 or a project for 07 which a loan of more than $5,000,000 has been requested. 08 * Sec. 3. AS 42.45.020(b) is amended to read: 09 (b) The [SUBJECT TO AS 42.45.060, THE] authority may make loans from 10 the rural electrification revolving loan fund to electric utilities certified under 11 AS 42.05. A loan from the fund may be made only for the purpose of extending new 12 electric service into an area of the state that an electric utility may serve under a 13 certificate of public convenience and necessity issued under AS 42.05. A loan may be 14 made from the fund to an electric utility if the utility invests the money necessary to 15 provide one pole, one span of line, one transformer, and one service drop for each 16 consumer for whom immediate service would be provided by the extension of electric 17 service. However, a loan may not be made from the fund unless the extension of 18 electric service would provide immediate service to at least three consumers. 19 * Sec. 4. AS 42.45.170(a) is amended to read: 20 (a) An electric utility that is not subject to rate regulation by the Regulatory 21 Commission of Alaska under AS 42.05 may receive power cost equalization if the 22 utility is otherwise eligible for equalization assistance under AS 42.45.100 - 42.45.150 23 and if the utility 24 (1) files with the commission financial data necessary to determine the 25 power cost equalization per kilowatt-hour as prescribed by the commission and that is 26 in compliance with AS 42.45.100 - 42.45.150; 27 (2) reports monthly to the authority, within the time and in the form 28 required, the information required in (b) of this section; 29 (3) sets rates 30 (A) that consider the power cost equalization provided under 31 AS 42.45.100 - 42.45.150 by subtracting from its revenue requirements for
01 electric services the power cost equalization per kilowatt-hour that it is eligible 02 to receive; and 03 (B) under which the power cost equalization provided in 04 AS 42.45.070 - 42.45.110 [AS 42.45.060 - 42.45.110] is applied as a credit 05 only against the cost of kilowatt-hours eligible for equalization assistance 06 under AS 42.45.100 - 42.45.150 that are consumed by each customer in any 07 month; 08 (4) allows audits that the commission determines are necessary to 09 ensure compliance with this section; and 10 (5) furnishes its electric service customers eligible under this program 11 a notice as specified in AS 42.45.120. 12 * Sec. 5. AS 42.45.250(a) is amended to read: 13 (a) The bulk fuel revolving loan fund is established in the authority to assist 14 communities, utilities providing power in communities, and fuel retailers in 15 communities in purchasing bulk fuel to generate power or supply the public with 16 fuel for use in communities. A community, or a person generating power or 17 selling fuel in a community [PRIVATE INDIVIDUAL] who has written 18 endorsement from the governing body of each [THE] community for which a loan 19 from the fund is sought, is eligible for a loan from the bulk fuel revolving loan fund 20 for a [BULK FUEL] purchase of an emergency supply or a semiannual or annual 21 supply of bulk fuel to be used in the community. 22 * Sec. 6. AS 42.45.250(e) is amended to read: 23 (e) Loans made from the bulk fuel revolving loan fund to one borrower in any 24 fiscal year [ARE NOT SUBJECT TO AS 42.45.060 AND] 25 (1) may not exceed $300,000; 26 (2) shall be repaid in one year or less; and 27 (3) may not exceed 90 percent of the wholesale price of the fuel 28 purchased. 29 * Sec. 7. AS 42.45.250(l) is amended by adding a new paragraph to read: 30 (3) "person" has the meaning given in AS 01.10.060 and includes a 31 corporation, a cooperative, a joint venture, and a governmental entity.
01 * Sec. 8. AS 42.45.400 is amended by adding a new subsection to read: 02 (c) This section does not create a duty in tort, and may not be the basis for an 03 action against the state, the authority, or the officers, employees, agents, or contractors 04 of either for damages, injury, or death. 05 * Sec. 9. AS 43.40.010(a) is amended to read: 06 (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 07 otherwise transferred within the state, except that 08 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; 09 (2) the tax on motor fuel used in and on watercraft of all descriptions is 10 five cents a gallon; 11 (3) the tax on all aviation fuel other than gasoline is three and two- 12 tenths cents a gallon; and 13 (4) the tax rate on motor fuel that is blended with alcohol is the same 14 tax rate a gallon as other motor fuel; however, 15 (A) in an area and during the months in which fuel containing 16 alcohol is required to be sold, transferred, or used in an effort to attain air 17 quality standards for carbon monoxide as required by federal or state law or 18 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a 19 gallon less than the tax on other motor fuel not described in (1) - (3) of this 20 subsection; 21 (B) notwithstanding (A) of this paragraph, through June 30, 22 2009 [2004], the tax on motor fuel sold or otherwise transferred within the 23 state is eight cents a gallon less than the tax on other motor fuel not described 24 in (1) - (3) of this subsection if the motor fuel 25 (i) is at least 10 percent alcohol by volume, has been 26 produced from the processing of lignocellulose derived from wood, and 27 was produced in a facility that processes lignocellulose from wood, but 28 this reduction in the rate of tax applies to motor fuel sold or transferred 29 that contains alcohol that was produced only during the first five years 30 of the facility's processing of lignocellulose from wood; or 31 (ii) is at least 10 percent alcohol by volume, has been
01 produced from the processing of waste seafood, and was produced in a 02 facility that processes alcohol from waste seafood, but this reduction in 03 the rate of tax applies to motor fuel sold or transferred that contains 04 alcohol that was produced only during the first five years of the 05 facility's processing of alcohol from waste seafood. 06 * Sec. 10. AS 43.40.010(b) is amended to read: 07 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed by a 08 user, except that 09 (1) the tax on aviation gasoline consumed is four and seven-tenths 10 cents a gallon; 11 (2) the tax on motor fuel used in and on watercraft of all descriptions is 12 five cents a gallon; 13 (3) the tax on all aviation fuel other than gasoline is three and two- 14 tenths cents a gallon; and 15 (4) the tax rate on motor fuel that is blended with alcohol is the same 16 tax rate a gallon as other motor fuel; however, 17 (A) in an area and during the months in which fuel containing 18 alcohol is required to be sold, transferred, or used in an effort to attain air 19 quality standards for carbon monoxide as required by federal or state law or 20 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a 21 gallon less than the tax on other motor fuel not described in (1) - (3) of this 22 subsection; 23 (B) notwithstanding (A) of this paragraph, through June 30, 24 2009 [2004], the tax on motor fuel consumed by a user within the state is eight 25 cents a gallon less than the tax on other motor fuel not described in (1) - (3) of 26 this subsection if the motor fuel 27 (i) is at least 10 percent alcohol by volume, has been 28 produced from the processing of lignocellulose derived from wood, and 29 was produced in a facility that processes lignocellulose from wood, but 30 this reduction in the rate of tax applies to motor fuel consumed by a 31 user that contains alcohol that was produced only during the first five
01 years of the facility's processing of lignocellulose from wood; or 02 (ii) is at least 10 percent alcohol by volume, has been 03 produced from the processing of waste seafood, and was produced in a 04 facility that processes alcohol from waste seafood, but this reduction in 05 the rate of tax applies to motor fuel consumed by a user that contains 06 alcohol that was produced only during the first five years of the 07 facility's processing of alcohol from waste seafood. 08 * Sec. 11. AS 44.83.080 is amended to read: 09 Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 10 purposes, the authority has the following powers in addition to its other powers: 11 (1) to sue and be sued; 12 (2) to have a seal and alter it at pleasure; 13 (3) to make and alter bylaws for its organization and internal 14 management; 15 (4) to adopt regulations governing the exercise of its corporate powers; 16 (5) to improve, equip, operate, and maintain power projects and bulk 17 fuel, waste energy, energy conservation, energy efficiency, and alternative energy 18 facilities and equipment; 19 (6) to issue bonds to carry out any of its corporate purposes and 20 powers, including the establishment or increase of reserves to secure or to pay the 21 bonds or interest on them, and the payment of all other costs or expenses of the 22 authority incident to and necessary or convenient to carry out its corporate purposes 23 and powers; 24 (7) to sell, lease as lessor or lessee, exchange, donate, convey, or 25 encumber in any manner by mortgage or by creation of any other security interest, real 26 or personal property owned by it, or in which it has an interest, when, in the judgment 27 of the authority, the action is in furtherance of its corporate purposes; 28 (8) to accept gifts, grants, or loans from, and enter into contracts or 29 other transactions regarding them, with any person; 30 (9) to deposit or invest its funds, subject to agreements with 31 bondholders;
01 (10) to enter into contracts with the United States or any person and, 02 subject to the laws of the United States and subject to concurrence of the legislature, 03 with a foreign country or its agencies, for the construction, financing, operation, and 04 maintenance of all or any part of a power project or bulk fuel, waste energy, energy 05 conservation, energy efficiency, or alternative energy facilities or equipment, 06 either inside or outside the state, and for the sale or transmission of power from a 07 project or any right to the capacity of it or for the security of any bonds of the 08 authority issued or to be issued for the project; 09 (11) to enter into contracts with any person and with the United States, 10 and, subject to the laws of the United States and subject to the concurrence of the 11 legislature, with a foreign country or its agencies for the purchase, sale, exchange, 12 transmission, or use of power from a project, or any right to the capacity of it; 13 (12) to apply to the appropriate agencies of the state, the United States, 14 and [TO] a foreign country and any other proper agency for the permits, licenses, or 15 approvals as may be necessary, [AND] to maintain and operate power projects in 16 accordance with the licenses or permits, and to obtain, hold, and use the licenses and 17 permits in the same manner as any other person or operating unit; 18 (13) to enter into contracts or agreements with respect to the exercise 19 of any of its powers, and do all things necessary or convenient to carry out its 20 corporate purposes and exercise the powers granted in this chapter; 21 (14) to recommend to the legislature 22 (A) the pledge of the credit of the state to guarantee repayment 23 of all or any portion of revenue bonds issued to assist in construction of power 24 projects; 25 (B) an appropriation from the general fund 26 (i) for debt service on bonds or other project purposes; 27 or 28 (ii) to reduce the amount of debt financing for the 29 project; 30 (15) to carry out the powers and duties assigned to it under AS 42.45; 31 (16) to make grants or loans to any person and enter into contracts
01 or other transactions regarding the grants or loans. 02 * Sec. 12. AS 44.83.386 is amended to read: 03 Sec. 44.83.386. Investment of fund. The authority [DEPARTMENT OF 04 REVENUE] shall invest the money in the fund in the manner provided in 05 [ACCORDANCE WITH] AS 37.10.070, 37.10.071, and 37.10.075. The authority 06 may withdraw [DEPARTMENT OF REVENUE SHALL PROVIDE] money from 07 [IN] the fund [TO THE AUTHORITY] only after costs have been incurred or amounts 08 in the fund have been otherwise obligated under contracts for the acquisition and 09 construction of a project. [AMOUNTS THAT HAVE BEEN OBLIGATED, BUT 10 FOR WHICH COSTS HAVE NOT YET BEEN INCURRED, MAY BE 11 SEGREGATED BY THE DEPARTMENT OF REVENUE OR TRANSFERRED TO 12 THE AUTHORITY ONLY WITH THE PRIOR APPROVAL OR AGREEMENT OF 13 THE COMMISSIONER OF REVENUE. INCOME RECEIVED ON MONEY THAT 14 IS SEGREGATED OR TRANSFERRED UNDER THIS SECTION MUST BE 15 DEPOSITED IN THE GENERAL FUND.] 16 * Sec. 13. AS 42.45.060, 42.45.250(l)(1); and AS 44.25.020(5) are repealed. 17 * Sec. 14. AS 42.45.200 is repealed. 18 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 TRANSITION. ELECTRICAL SERVICE EXTENSION FUND. Subject to 21 appropriation, the money in the electrical service extension fund established in former 22 AS 42.45.200, repealed by sec. 14 of this Act, is transferred to the general fund. 23 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 RETROACTIVITY. Sections 5 and 7 of this Act are retroactive to June 1, 1984. 26 * Sec. 17. Sections 14 and 15 of this Act take effect July 1, 2004. 27 * Sec. 18. Except as provided in sec. 17 of this Act, this Act takes effect immediately under 28 AS 01.10.070(c).