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SCS CSHB 105(FIN) am S: "An Act relating to the programs and bonds of the Alaska Industrial Development and Export Authority; relating to the Alaska Industrial Development and Export Authority sustainable energy transmission and supply development fund; repealing bond authorizations granted to the Alaska Industrial Development and Export Authority; amending the definition of 'qualified energy development'; relating to the financing authorization through the Alaska Industrial Development and Export Authority of a liquefied natural gas production plant and natural gas energy projects and distribution systems in the state; requiring the Alaska Industrial Development and Export Authority to deliver to the legislature reports relating to the Interior energy project; and providing for an effective date."

00              SENATE CS FOR CS FOR HOUSE BILL NO. 105(FIN) am S                                                          
01 "An Act relating to the programs and bonds of the Alaska Industrial Development and                                     
02 Export Authority; relating to the Alaska Industrial Development and Export Authority                                    
03 sustainable energy transmission and supply development fund; repealing bond                                             
04 authorizations granted to the Alaska Industrial Development and Export Authority;                                       
05 amending the definition of 'qualified energy development'; relating to the financing                                    
06 authorization through the Alaska Industrial Development and Export Authority of a                                       
07 liquefied natural gas production plant and natural gas energy projects and distribution                                 
08 systems in the state; requiring the Alaska Industrial Development and Export Authority                                  
09 to deliver to the legislature reports relating to the Interior energy project; and providing                            
10 for an effective date."                                                                                                 
11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
12    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
01 to read:                                                                                                                
02       LEGISLATIVE INTENT. It is the intent of the legislature that                                                      
03            (1)  the increased geographic flexibility provided in sec. 9 of this Act solely                              
04 advance the Interior energy project, a project first authorized by the legislature in ch. 26, SLA                       
05 2013. The goals of the Interior energy project are to bring affordable natural gas to as many                           
06 residents of Interior Alaska communities as possible as quickly as possible. This Act does not                          
07 expand the scope of the project nor authorize any other activity beyond accomplishing those                             
08 stated goals;                                                                                                           
09            (2)  the Alaska Industrial Development and Export Authority use an open and                                  
10 competitive solicitation process to select private entities to participate in developing the                            
11 liquefied natural gas production plant capacity and affiliated infrastructure described in this                         
12 Act.                                                                                                                    
13    * Sec. 2. AS 44.88.095(c) is amended to read:                                                                      
14            (c)  Before entering into a lease or other agreement under AS 44.88.090(e)                                   
15       regarding a project for which the authority agrees to issue bonds in an amount in                                 
16       excess of $10,000,000 [$6,000,000], there must be filed with the authority a certified                        
17       copy of a resolution of the governing body of the political subdivision of the state, if                          
18       any, in which the project is to be located, consenting to the location of the project. The                        
19       consent need only refer to the general nature of the project ultimately to be acquired or                     
20       financed, as set out in a request of the proposed project applicant. Before entering into                     
21       a lease or other agreement under AS 44.88.090(e) regarding a project, the authority                               
22       shall find, on the basis of all information reasonably available to it, that                                      
23                 (1)  the project and its development under this chapter will be                                         
24       economically advantageous to the state and the general public welfare and will                                    
25       contribute to the economic growth of the state;                                                                   
26                 (2)  the project applicant is financially responsible;                                                  
27                 (3)  provision to meet increased demand on [UPON] public facilities                                 
28       that might result from the project is reasonably assured; and                                                     
29                 (4)  the project will provide, or retain, employment reasonably related                                 
30       to the amount of the financing by the authority, considering the amount of investment                             
31       for each [PER] employee for comparable facilities and other relevant factors.                                 
01    * Sec. 3. AS 44.88.095(g) is amended to read:                                                                      
02            (g)  The authority may issue bonds in an amount greater than $25,000,000                                 
03       [$10,000,000] to assist in the financing of a development project under AS 44.88.172 -                            
04       44.88.177 only if approved by the legislature [LAW], excluding refunding bonds.                               
05       Refunding bonds may be issued without further approval by the legislature [LAW] in                            
06       a principal amount sufficient to provide funds for the payment of all bonds to be                                 
07       refunded by them and, in addition, for the payment of all other amounts that the                                  
08       authority considers appropriate in connection with the refunding, including expenses                              
09       incident to the redeeming, calling, retiring, or paying of the outstanding bonds, the                             
10       funding of reserves, and the issuance of the refunding bonds.                                                     
11    * Sec. 4. AS 44.88.155(d) is amended to read:                                                                      
12            (d)  A loan participation purchased by the authority with assets of the                                      
13       enterprise development account or with proceeds of bonds secured by assets of the                                 
14       enterprise development account                                                                                    
15                 (1)  may not exceed $25,000,000 [$20,000,000]; however, in the case                                 
16       of a loan participation for qualified energy development, the loan participation may                              
17       exceed $25,000,000 [$20,000,000] with legislative approval;                                                   
18                 (2)  may not be purchased unless                                                                        
19                      (A)  the project applicant is not, or, if the applicant is not a                                   
20            single proprietorship, all members of the business enterprise or enterprises                                 
21            constituting the project applicant are not, in default on another loan made by                               
22            the state or by a public corporation of the state; and                                                       
23                      (B)  at least 10 percent of the principal amount of the loan is                                    
24            retained by the loan originator, or the loan is for financing improvements in                                
25            energy efficiency;                                                                                           
26                 (3)  may not be purchased if the loan to be purchased exceeds 75                                        
27       percent of the appraised value of the collateral offered as security for the loan unless                          
28       the amount of the loan in excess of this limit is federally insured or guaranteed or is                           
29       insured by a qualified mortgage insurance company, except that the loan to be                                     
30       purchased under this paragraph may not exceed the total of loan proceeds used to                                  
31       refinance an existing debt plus the cost of new construction, expansion, or acquisition                           
01       unless the proceeds from the additional amounts of the loan to be purchased are                                   
02       restricted to uses approved by the authority to finance commercial activity in the state                          
03       by a business enterprise;                                                                                         
04                 (4)  may not be purchased if the participation in the loan to be                                        
05       purchased is for a term longer than the following, except that a loan under (A) or (C)                            
06       of this paragraph may not have a term longer than three-quarters of the authority's                               
07       estimate of the life of the collateral offered as security for the loan:                                          
08                      (A)  40 years from the date the loan is made in the case of a                                      
09            loan participation for a project described in AS 44.88.900(11)(E);                                           
10                      (B)  50 years from the date the loan is made in the case of a loan                                 
11            participation for qualified energy development;                                                              
12                      (C)  25 years from the date the loan is made in the case of a loan                                 
13            participation for other projects;                                                                            
14                 (5)  may be made only if the participation in the loan to be purchased                                  
15       contains amortization provisions; the amortization provisions                                                     
16                      (A)  must be complete and satisfactory to the authority and                                        
17            require periodic payments by the borrower;                                                                   
18                      (B)  may allow the loan originator to amortize the portion of the                                  
19            loan retained by the loan originator using a shorter amortization schedule than                              
20            the amortization schedule for the portion of the loan held by the authority if                               
21                           (i)  in the authority's opinion, the project financed can                                     
22                 support the increased debt service; and                                                                 
23                           (ii)  the accelerated amortization schedule is required to                                    
24                 induce the originator to make the loan;                                                                 
25                 (6)  may be made only if the participation in the loan to be purchased is                               
26       in the form and contains the terms and provisions with respect to insurance, repairs,                             
27       alterations, payment of taxes and assessments, default reserves, delinquency charges,                             
28       default remedies, acceleration of maturity, secondary liens, and other matters the                                
29       authority prescribes; and                                                                                         
30                 (7)  may be made only if the participation in the loan to be purchased is                               
31       secured as to repayment by a mortgage or other security instrument in the manner the                              
01       authority determines is feasible to assure timely repayment under the loan documents                              
02       entered into with the borrower.                                                                                   
03    * Sec. 5. AS 44.88.170(a) is amended to read:                                                                      
04            (a)  Except as provided in (c) of this section, nothing [NOTHING] in this                                
05       chapter prevents the inclusion in a lease or other agreement relating to a project of a                           
06       provision granting the right to purchase the project, or to renew or extend the lease or                          
07       agreement, upon the terms and conditions that [WHICH] may be provided for in the                              
08       lease or agreement.                                                                                               
09    * Sec. 6. AS 44.88.170 is amended by adding a new subsection to read:                                              
10            (c)  The authority, without first obtaining legislative approval, may not enter                              
11       into a gas supply contract with a natural gas producer to provide natural gas to Interior                         
12       Alaska as a primary market unless the contract is for the benefit of a natural gas                                
13       liquefaction or distribution utility that is owned by the authority or a subsidiary of the                        
14       authority and the contract is for the natural gas producer to provide the utility, and                            
15       only the utility, with a natural gas supply that the utility uses to serve customers in                           
16       Interior Alaska.                                                                                                
17    * Sec. 7. AS 44.88.690(a) is amended to read:                                                                      
18            (a)  Unless the authority has obtained legislative approval by law, the authority                            
19       may not use the Alaska Industrial Development and Export Authority sustainable                                    
20       energy transmission and supply development fund established in AS 44.88.660 to                                    
21       [MAKE]                                                                                                            
22                 (1)  make a loan for more than one-third of the capital cost of qualified                           
23       energy development; [OR]                                                                                          
24                 (2)  make a loan guarantee if the amount of the guarantee exceeds                                   
25       $20,000,000; or                                                                                               
26                 (3)  purchase or acquire gas reserves or a gas lease or become a                                    
27       working interest owner of a natural gas lease.                                                                
28    * Sec. 8. AS 44.88.900(16) is amended to read:                                                                     
29                 (16)  "qualified energy development" means a development in the state                                   
30       that involves                                                                                                     
31                      (A)  transmission, generation, conservation, storage, or                                           
01            distribution of heat or electricity;                                                                         
02       (B)  liquefaction, regasification, distribution, storage, or use of natural gas; in this                      
03 subparagraph,                                                                                                       
04                           (i) "distribution" does not include [EXCEPT] a                                            
05                 natural gas pipeline project for transporting natural gas from the North                                
06                 Slope or Cook Inlet to market unless the pipeline has a diameter of                                 
07                 12 inches or less and transports the natural gas to Interior Alaska;                                
08                           (ii) "natural gas" includes propane or propane and                                        
09                 air mixture;                                                                                        
10                      (C)  distribution or storage of refined petroleum products;                                        
11    * Sec. 9. The uncodified law of the State of Alaska enacted by sec. 11(a), ch. 26, SLA 2013,                       
12 is amended to read:                                                                                                     
13            (a)  The Alaska Industrial Development and Export Authority, through the                                     
14       Alaska Industrial Development and Export Authority sustainable energy transmission                                
15       and supply development fund (AS 44.88.660), may provide financing up to a principal                               
16       amount of $275,000,000 for the development, construction, and installation of, and the                            
17       start-up costs of operation and maintenance for, a liquefied natural gas production                               
18       plant and system and affiliated infrastructure in the state that will provide natural                         
19       gas to Interior Alaska as a primary market [ON THE NORTH SLOPE] and [A]                                       
20       natural gas delivery and distribution systems [SYSTEM] and affiliated infrastructure                      
21       that will provide natural gas to [IN] Interior Alaska, if the members of the Alaska                       
22       Industrial Development and Export Authority approve by resolution a project                                   
23       plan. The project plan must                                                                                   
24                 (1)  identify the source of the natural gas;                                                        
25                 (2)  include the estimated cost of the project; and                                                 
26                 (3)  include the estimated price of natural gas supplied to natural                                 
27       gas utilities in Interior Alaska before distribution to consumers.                                            
28    * Sec. 10. The uncodified law of the State of Alaska enacted by sec. 11(g), ch. 26, SLA                          
29 2013, is amended by adding a new paragraph to read:                                                                     
30                 (3) "natural gas" includes                                                                              
31                      (A) propane; and                                                                                   
01                      (B) propane and air mixture.                                                                       
02    * Sec. 11. The uncodified law of the State of Alaska enacted by sec. 25, ch. 123, SLA 1990,                        
03 as repealed and reenacted by sec. 1, ch. 3, FSSLA 1992, is amended to read:                                             
04            Sec. 25. The Alaska Industrial Development and Export Authority may issue                                    
05       bonds to finance the acquisition, design, and construction of aircraft maintenance air                            
06       cargo/air transport support facilities located at Anchorage International Airport, to be                          
07       owned by the Authority. The principal amount of the bonds may not exceed $28,000,000                          
08       [$85,000,000]. This section grants the legislative approval required by AS 44.88.095.                             
09    * Sec. 12. Section 2, ch. 27, SLA 1993, as amended by sec. 19, ch. 111, SLA 1996; sec. 3,                          
10 ch. 27, SLA 1993; sec. 7, ch. 76, SLA 1995; sec. 24, ch. 111, SLA 1996; secs. 24(a) and                                 
11 24(b), ch. 109, SLA 1998; sec. 24(d), ch. 109, SLA 1998, as amended by sec. 1, ch. 93, SLA                              
12 2006; and sec. 1, ch. 37, SLA 2004, are repealed.                                                                       
13    * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to                         
14 read:                                                                                                                   
15       REPORT. (a) The Alaska Industrial Development and Export Authority shall submit                                   
16 quarterly to the legislature a written report on the Interior energy project. The authority shall                       
17 deliver the report to the senate secretary and the chief clerk of the house of representatives                          
18 and notify the legislature that the report is available. The report must include                                        
19            (1)  a description of project progress on all components;                                                    
20            (2)  an update on the status of local distribution infrastructure buildout;                                  
21            (3)  to-date and anticipated conversions; and                                                                
22            (4)  a financial accounting of funds expended and funds anticipated to be spent,                             
23 including loans, grants, and bonds.                                                                                     
24       (b)  If requested, the Alaska Industrial Development and Export Authority shall                                   
25 provide a project briefing on the Interior energy project to the Legislative Budget and Audit                           
26 Committee.                                                                                                              
27    * Sec. 14. Section 13 of this Act is repealed June 30, 2025.                                                       
28    * Sec. 15. This Act takes effect immediately under AS 01.10.070(c).