Enrolled SB 99: Relating to the Alaska Industrial Development and Export Authority revolving fund; limiting the use of the Alaska Industrial Development and Export Authority sustainable energy transmission and supply development fund for certain loans and loan guarantees and allowing the development fund to be used as security for a bond guarantee; amending the definition of "qualified energy development"; authorizing the Alaska Industrial Development and Export Authority to issue bonds to finance the infrastructure and construction costs of the Bokan-Dotson Ridge rare earth element project and the Niblack project; and relating to legislative approval for a loan from the power project fund for the Blue Lake hydroelectric project.
00Enrolled SB 99 01 Relating to the Alaska Industrial Development and Export Authority revolving fund; limiting 02 the use of the Alaska Industrial Development and Export Authority sustainable energy 03 transmission and supply development fund for certain loans and loan guarantees and allowing 04 the development fund to be used as security for a bond guarantee; amending the definition of 05 "qualified energy development"; authorizing the Alaska Industrial Development and Export 06 Authority to issue bonds to finance the infrastructure and construction costs of the Bokan- 07 Dotson Ridge rare earth element project and the Niblack project; and relating to legislative 08 approval for a loan from the power project fund for the Blue Lake hydroelectric project. 09 _______________ 10 * Section 1. AS 44.88.660 is amended to read: 11 Sec. 44.88.660. Alaska Industrial Development and Export Authority
01 sustainable energy transmission and supply development fund. The Alaska 02 Industrial Development and Export Authority sustainable energy transmission and 03 supply development fund is established in the authority. The development fund 04 consists of appropriations made to the development fund by the legislature, money or 05 other assets transferred to the development fund by a vote of the members of the 06 authority under AS 44.88.050 from any other fund controlled by the authority, 07 and unrestricted loan repayments, interest, or other income earned on loans, 08 investments, or assets of the development fund. The development fund is not an 09 account in the revolving [LOAN] fund established in AS 44.88.060, and the authority 10 shall account for the development fund separately from the revolving fund. The 11 authority may create additional accounts in the development fund. Subject to 12 agreements made with the holders of the authority's bonds or with other persons, the 13 authority may transfer amounts in an account in the development fund to another 14 account in the development fund. Amounts deposited in the development fund may be 15 pledged to the payment of bonds of the authority or expended for the purposes of 16 AS 44.88.650 - 44.88.690. The authority has the powers and responsibilities 17 established in AS 37.10.071 with respect to the investment of amounts held in the 18 development fund. 19 * Sec. 2. AS 44.88.690(a) is amended to read: 20 (a) Unless the authority has obtained legislative approval by law, the authority 21 may not use the Alaska Industrial Development and Export Authority sustainable 22 energy transmission and supply development fund established in AS 44.88.660 to 23 make [FINANCE OR PARTICIPATE IN FINANCING OF] 24 (1) a loan for more than one-third of the capital cost of qualified 25 energy development; or 26 (2) a loan guarantee if the amount of the guarantee [THAT] exceeds 27 $20,000,000. 28 * Sec. 3. AS 44.88.690 is amended by adding a new subsection to read: 29 (c) Notwithstanding (a) of this section, the authority may use the Alaska 30 Industrial Development and Export Authority sustainable energy transmission and 31 supply development fund established in AS 44.88.660 as security for a bond
01 guarantee. 02 * Sec. 4. AS 44.88.900(14) is amended to read: 03 (14) "qualified energy development" means a development 04 [PROJECT] in the state that involves 05 (A) transmission, generation, conservation, storage, or 06 distribution of heat or electricity; 07 (B) liquefaction, regasification, distribution, storage, or use of 08 natural gas except a natural gas pipeline project for transporting natural gas 09 from the North Slope or Cook Inlet to market; 10 (C) distribution or storage of refined petroleum products; 11 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 LEGISLATIVE APPROVAL; BOKAN-DOTSON RIDGE RARE EARTH 14 ELEMENT PROJECT. (a) The Alaska Industrial Development and Export Authority may 15 issue bonds to finance the infrastructure and construction costs of the Bokan-Dotson Ridge 16 rare earth element project. The Bokan-Dotson Ridge rare earth element project's surface 17 complex shall be owned and operated by the authority or financed under AS 44.88.172. The 18 principal amount of the bonds provided by the authority for the Bokan-Dotson Ridge rare 19 earth element project may not exceed $145,000,000 and may include the costs of issuing 20 bonds considered reasonable and appropriate by the Alaska Industrial Development and 21 Export Authority. 22 (b) This section constitutes legislative approval required by AS 44.88.095(g). 23 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 LEGISLATIVE APPROVAL; NIBLACK PROJECT. (a) The Alaska Industrial 26 Development and Export Authority may issue bonds to finance the infrastructure and 27 construction costs of the Niblack project. The Niblack project includes a mineral processing 28 mill, associated dock, and loading and related infrastructure facilities at the Gravina Island 29 Industrial Complex, as well as infrastructure at the project site on Prince of Wales Island. The 30 mineral processing mill, associated dock, and loading and related infrastructure facilities at 31 the Gravina Island Industrial Complex, as well as infrastructure at the project site on Prince of
01 Wales Island, shall be owned and operated by the authority or financed under AS 44.88.172. 02 The principal amount of the bonds provided by the authority for the Niblack project may not 03 exceed $125,000,000 and may include the costs of issuing bonds considered reasonable and 04 appropriate by the Alaska Industrial Development and Export Authority. 05 (b) This section constitutes legislative approval required by AS 44.88.095(g). 06 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 LEGISLATIVE APPROVAL OF LOAN FROM THE POWER PROJECT FUND. If 09 the Alaska Energy Authority approves a loan to the City and Borough of Sitka for the Blue 10 Lake hydroelectric project, the legislature authorizes the Alaska Energy Authority to loan an 11 amount not to exceed $18,600,000 from the power project fund (AS 42.45.010) to the City 12 and Borough of Sitka for the Blue Lake hydroelectric project. This section constitutes 13 legislative approval under AS 42.45.010(j) for a loan from the fund that exceeds $5,000,000.