00                             HOUSE BILL NO. 79                                                                          
01 "An Act establishing a gas royalty and production tax fund, describing its purpose, and                                 
02 authorizing use of fund proceeds to support power cost equalization."                                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 37.05 is amended by adding a new section to read:                                                  
05            Sec. 37.05.535. Gas royalty and production tax fund. (a) The gas royalty                                   
06       and production tax fund is established in the general fund. Except for money deposited                            
07       in the budget reserve fund under art. IX, sec. 17(a), Constitution of the State of                                
08       Alaska, the fund consists of the proceeds                                                                         
09                 (1)  from the sale, exchange, or other disposal of gas that is obtained by                              
10       the state as royalty under AS 38.05.182, whether taken in cash or in kind, from gas                               
11       production delivered into an in-state gas pipeline for consumption or use within the                              
12       state, excluding amounts deposited in the Alaska permanent fund under                                             
13       AS 37.13.010(a)(1) or (2);                                                                                        
14                 (2)  received from the production tax under AS 43.55.011 for gas that is                                

01       exported from the state and for which the state does not receive royalties.                                       
02            (b)  The department shall separately account for the receipts described in (a) of                            
03       this section.                                                                                                     
04            (c)  The legislature may appropriate money in the gas royalty and production                                 
05       tax fund to the power cost equalization endowment fund (AS 42.45.070), the power                                  
06       cost equalization and rural electric capitalization fund (AS 42.45.100), or for any other                         
07       public purpose.                                                                                                   
08    * Sec. 2. AS 42.45.070(a) is amended to read:                                                                      
09            (a)  The power cost equalization endowment fund is established as a separate                                 
10       fund of the authority. The fund consists of                                                                       
11                 (1)  legislative appropriations to the fund that are not designated for                                 
12       annual expenditure for the purpose of power cost equalization;                                                    
13                 (2)  accumulated earnings of the fund;                                                                  
14                 (3)  gifts, bequests, contributions of money and other assets, and federal                              
15       money given to the fund that are not designated for annual expenditure for power cost                             
16       equalization; and                                                                                                 
17                 (4)  legislative appropriations from the gas royalty and production                                 
18       tax fund under AS 37.05.535 [REPEALED].                                                                       
19    * Sec. 3. AS 42.45.100(b) is amended to read:                                                                      
20            (b)  The fund shall be administered by the authority as a fund distinct from the                             
21       other funds of the authority. The fund is composed of                                                             
22                 (1)  money appropriated to provide power cost equalization to eligible                                  
23       electric utilities and to provide grants for utility improvements;                                                
24                 (2)  money appropriated from the National Petroleum Reserve - Alaska                                    
25       special revenue fund under AS 37.05.530(g);                                                                       
26                 (3)  money appropriated from the power cost equalization endowment                                      
27       fund (AS 42.45.070) under AS 42.45.085(a);                                                                        
28                 (4)  gifts, bequests, contributions from other sources, and federal                                     
29       money; [AND]                                                                                                      
30                 (5)  interest earned on the fund balance; and                                                       
31                 (6)  legislative appropriations from the gas royalty and production                                 

01       tax fund under AS 37.05.535.