00                       CS FOR HOUSE BILL NO. 46(FIN)                                                                    
01 "An Act relating to grants to certain public utilities for water quality enhancement                                    
02 projects and water supply and wastewater systems."                                                                      
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 46.03.030(b) is amended to read:                                                                  
05            (b)  The department may grant to a municipality or, to the extent allowed                                
06       under (i) of this section, to a public utility, as funds are available, a grant for any of                    
07       the following:                                                                                                    
08                 (1)  a water quality enhancement project;                                                               
09                 (2)  a public water supply, treatment, or distribution system;                                          
10                 (3)  a wastewater collection, treatment, or discharge system;                                           
11                 (4)  a solid waste processing, disposal, or resource recovery system.                                   
12    * Sec. 2.  AS 46.03.030(e) is amended to read:                                                                     
13            (e)  A grant under this section to a municipality or public utility eligible                             
14       under (i) of this section for a project funded by an appropriation made by the                                

01       legislature                                                                                                       
02                 (1)  before July 1, 1994, may not exceed 50 percent of the eligible costs                               
03       of the project;                                                                                                   
04                 (2)  after July 1, 1994, may not exceed                                                                 
05                      (A)  85 percent of the eligible costs for a utility serving                                    
06            [MUNICIPALITY WITH] a population of 1,000 persons or less;                                                   
07                      (B)  70 percent of the eligible costs for a utility serving                                    
08            [MUNICIPALITY WITH] a population of 1,001 to 5,000 persons; and                                              
09                      (C)  50 percent of the eligible costs for a utility serving                                    
10            [MUNICIPALITY WITH] a population greater than 5,000 persons; however,                                        
11            if a utility serving [MUNICIPALITY WITH] a population greater than 5,000                                 
12            persons seeks a grant for a project that relates to a solid waste processing or                              
13            disposal system that incorporates resource recovery, the department may                                      
14            provide a grant for up to 60 percent of the eligible costs of the project.                                   
15    * Sec. 3.  AS 46.03.030 is amended by adding new subsections to read:                                              
16            (i)  A public water and sewer utility is eligible for a grant for projects described                         
17       in (b)(1) - (3) of this section if                                                                                
18                 (1)  the rates of the public utility are regulated by the Regulatory                                    
19       Commission of Alaska under AS 42.05; or                                                                           
20                 (2)  the utility is owned or operated by a political subdivision of the                                 
21       state that is a municipality.                                                                                     
22            (j)  A grant must be repaid in full by a public utility that is not owned or                                 
23       operated by a municipality if                                                                                     
24                 (1)  the public utility is sold within five years after receipt of the grant;                           
25       and                                                                                                               
26                 (2)  the rates of the entity buying the public utility that is sold under (1)                           
27       of this subsection are not regulated by the Regulatory Commission of Alaska under                                 
28       AS 42.05.