HB 370: "An Act relating to broadband; relating to the Alaska Energy Authority; and relating to the Regulatory Commission of Alaska."
00 HOUSE BILL NO. 370 01 "An Act relating to broadband; relating to the Alaska Energy Authority; and relating to 02 the Regulatory Commission of Alaska." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 LEGISLATIVE FINDINGS. The legislature finds that 07 (1) many communities in the state have limited access to the Internet because 08 the communities lack broadband and advanced telecommunications that enable high-speed 09 access to the Internet necessary to support modern civic, governmental, cultural, economic 10 development, health care, public safety, educational, and community resources; 11 (2) although the state is connected to the rest of the world through several 12 fiber-optic cables, many areas in the state lack sufficient access to affordable broadband data 13 services and broadband Internet access services because of insufficient connectivity to fiber- 14 optic cables;
01 (3) removing barriers to broadband deployment by using a technology and 02 competitively neutral approach will encourage lower prices for broadband service, expand 03 availability, and offer more choices to consumers; 04 (4) access to broadband and advanced telecommunications services 05 throughout the state is essential for the state to keep pace with global changes in economic 06 diversification, education, health care, energy and environmental technology, and public 07 safety; 08 (5) affordable and nondiscriminatory access is necessary to support 09 investment in and development of accessible broadband networks in the state and action 10 should be taken to ensure that broadband services are affordable and reasonably comparable 11 in all areas of the state; 12 (6) insufficient and unaffordable Internet connectivity between unserved or 13 underserved locations and existing fiber-optic cables that provide high-speed Internet service 14 is the greatest and most costly obstacle to wider deployment of broadband and advanced 15 telecommunications services in remote areas of the state; 16 (7) funding from federal, private, or other sources is essential to offset the 17 high cost of deployment, ownership, and operation of facilities providing Internet 18 connectivity; and 19 (8) a coordinated approach is necessary to ensure that facilities that provide 20 Internet connectivity are deployed efficiently and have sufficient capacity to reach unserved 21 and underserved areas of the state and that Internet connectivity is made available on a 22 nondiscriminatory basis to all potential users and service providers. 23 * Sec. 2. AS 18.56.090(e) is amended to read: 24 (e) In furtherance of its corporate purpose, the corporation may, in cooperation 25 with the Alaska Energy and Broadband Authority, provide technical assistance to 26 municipalities related to residential and commercial building energy codes and energy 27 efficiency standards. 28 * Sec. 3. AS 24.08.035(g) is amended to read: 29 (g) In (f) of this section, "agency" includes the Alaska Housing Finance 30 Corporation, the Alaska Industrial Development and Export Authority, the Alaska 31 Energy and Broadband Authority, the Alaska Public Offices Commission, and the
01 Alaska Oil and Gas Conservation Commission, but does not include other boards or 02 commissions. 03 * Sec. 4. AS 36.90.300(c)(4) is amended to read: 04 (4) "public agency" means a department, institution, board, 05 commission, division, authority, public corporation, committee, school district, 06 political subdivision, or other administrative unit of a municipality, of a political 07 subdivision, or of the executive or legislative branch of state government, including 08 the University of Alaska, the Alaska Aerospace Corporation, the Alaska Housing 09 Finance Corporation, the Alaska Industrial Development and Export Authority, the 10 Alaska Energy and Broadband Authority, the Alaska Railroad Corporation, and a 11 regional educational attendance area. 12 * Sec. 5. AS 42.05.145 is amended by adding a new subsection to read: 13 (c) Upon application, the commission shall designate the Alaska Energy and 14 Broadband Authority, created in AS 44.83.020, as an eligible telecommunications 15 carrier for the purposes of 47 U.S.C. 214(e). 16 * Sec. 6. AS 42.05.431(c) is amended to read: 17 (c) Notwithstanding (b) of this section, 18 (1) a wholesale agreement for the sale of power from a project licensed 19 by the Federal Energy Regulatory Commission on or before January 1, 1987, and 20 related contracts for the wheeling, storage, regeneration, or wholesale repurchase of 21 power purchased under the agreement, entered into between the Alaska Energy and 22 Broadband Authority and one or more other public utilities or among the utilities 23 after October 31, 1987, and before January 1, 1988, and amendments to the wholesale 24 agreement or related contract, and the wholesale agreement or related contract 25 assigned by the Alaska Energy and Broadband Authority to a joint action agency 26 formed under AS 42.45.310 that purchases the project from the Alaska Energy and 27 Broadband Authority, are not subject to review or approval by the commission until 28 all long-term debt incurred for the project is retired, or, for a wholesale agreement or 29 related contract assigned to a joint action agency formed under AS 42.45.310, until all 30 long-term debt incurred to pay the purchase price to the Alaska Energy and 31 Broadband Authority is retired; and
01 (2) a wholesale agreement or related contract described in (1) of this 02 subsection may contain a covenant for the public utility to establish, charge, and 03 collect rates sufficient to meet its obligations under the contract; the rate covenant is 04 valid and enforceable. 05 * Sec. 7. AS 42.05.431(d) is amended to read: 06 (d) Meetings between the Alaska Energy and Broadband Authority and 07 public utilities concerning a wholesale agreement for the sale of power or other matter 08 exempted from review of the commission under (c) of this section must comply with 09 AS 44.62.310. 10 * Sec. 8. AS 42.05.711(o) is amended to read: 11 (o) A joint action agency established under AS 42.45.310 is exempt from 12 regulation under this chapter, including the requirement to obtain a certificate of 13 public convenience and necessity under AS 42.05.221, for the operation of, sale of 14 power from, and other activities related to the power project the joint action agency 15 purchases from the Alaska Energy and Broadband Authority until the wholesale 16 agreement and any related contract assigned by the authority becomes subject to 17 review or approval by the commission under AS 42.05.431. The exemption provided 18 by this subsection extends to repairs and improvements to the power project the joint 19 action agency purchases from the authority but does not extend to any other power 20 project or other activity of the joint action agency. 21 * Sec. 9. AS 42.05.990(6) is amended to read: 22 (6) "public utility" or "utility" includes every corporation whether 23 public, cooperative, or otherwise, company, individual, or association of individuals, 24 their lessees, trustees, or receivers appointed by a court, that owns, operates, manages, 25 or controls any plant, pipeline, or system for 26 (A) furnishing, by generation, transmission, or distribution, 27 electrical service to the public for compensation; 28 (B) furnishing telecommunications service, including 29 broadband Internet access, to the public for compensation; 30 (C) furnishing water, steam, or sewer service to the public for 31 compensation;
01 (D) furnishing by transmission or distribution of natural or 02 manufactured gas to the public for compensation; 03 (E) furnishing for distribution or by distribution petroleum or 04 petroleum products to the public for compensation when the consumer has no 05 alternative in the choice of supplier of a comparable product and service at an 06 equal or lesser price; 07 (F) furnishing collection and disposal service of garbage, 08 refuse, trash, or other waste material to the public for compensation; 09 (G) furnishing the service of natural gas storage to the public 10 for compensation; 11 (H) furnishing the service of liquefied natural gas storage to the 12 public for compensation; 13 * Sec. 10. AS 42.05.990 is amended by adding a new paragraph to read: 14 (14) "broadband Internet access" means high-speed Internet access that 15 is always on and that is faster than traditional dial-up access. 16 * Sec. 11. AS 42.45.990(1) is amended to read: 17 (1) "authority" means the Alaska Energy and Broadband Authority; 18 * Sec. 12. AS 44.83.020 is amended to read: 19 Sec. 44.83.020. Creation of authority. The [THERE IS CREATED THE] 20 Alaska Energy and Broadband Authority is created. The authority is a public 21 corporation and instrumentality of the state in the Department of Commerce, 22 Community, and Economic Development but with separate and independent legal 23 existence. 24 * Sec. 13. AS 44.83.030 is amended to read: 25 Sec. 44.83.030. Membership of the authority. The directors of the Alaska 26 Energy and Broadband Authority are the members of the Alaska Industrial 27 Development and Export Authority. 28 * Sec. 14. AS 44.83.040(a) is amended to read: 29 (a) The chair and vice-chair of the Alaska Industrial Development and Export 30 Authority shall serve as officers of the Alaska Energy and Broadband Authority. The 31 powers of the Alaska Energy and Broadband Authority are vested in the directors,
01 and four directors of the authority constitute a quorum. Action may be taken and 02 motions and resolutions adopted by the Alaska Energy and Broadband Authority at a 03 meeting by the affirmative vote of a majority of the directors. The directors of the 04 Alaska Energy and Broadband Authority serve without compensation, but they shall 05 receive the same travel pay and per diem as provided by law for board members under 06 AS 39.20.180. 07 * Sec. 15. AS 44.83.070 is amended to read: 08 Sec. 44.83.070. Purpose of the authority. The purpose of the authority is to 09 (1) promote, develop, and advance the general prosperity and 10 economic welfare of the people of the state by providing a means of financing and 11 operating power projects and facilities that recover and use waste energy and by 12 carrying out the powers and duties assigned to it under AS 42.45; 13 (2) facilitate, upgrade, plan, and finance the installation, operation, 14 and promotion of effective use of a broadband system throughout the state by 15 carrying out the powers and duties assigned to it under AS 44.83.660 and 16 44.83.670; and 17 (3) increase and improve the availability, affordability, and 18 performance of broadband data services and broadband Internet access services 19 in unserved and underserved areas of the state by lessening the barriers to entry 20 posed by a lack of sufficient and affordable access to high-speed, low-latency 21 connectivity between unserved and underserved customer areas and fiber-optic 22 cables that connect to the Internet in the state, and to facilitate the development 23 of competitive options for customers in unserved and underserved areas. 24 * Sec. 16. AS 44.83.382(a) is amended to read: 25 (a) A power development fund is established in the Alaska Energy and 26 Broadband Authority to carry out the purposes of former AS 44.83.380 - 44.83.425. 27 * Sec. 17. AS 44.83 is amended by adding new sections to read: 28 Article 5A. Broadband. 29 Sec. 44.83.660. Broadband. (a) The authority shall 30 (1) provide or enable affordable and nondiscriminatory access to high- 31 speed, low-latency telecommunications connectivity between points in the state that
01 are unserved or underserved by high-speed, low-latency telecommunications 02 connectivity to existing fiber-optic cables that connect to the Internet; 03 (2) deploy the necessary broadband networking facilities to provide 04 high-speed, low-latency telecommunications connectivity in a coordinated manner; 05 and 06 (3) ensure the efficient use of state or other funds for the purposes 07 described in this subsection. 08 (b) For the purposes listed in AS 44.83.670, the authority may use 09 (1) federal financial assistance, including federal grant awards, loans, 10 and support from universal service support mechanisms authorized by the Federal 11 Communications Commission; and 12 (2) sources of private or other funding or property. 13 (c) An area is unserved or underserved if the authority determines that 14 (1) the terrestrial network facilities that connect the location to the 15 Internet lack the sufficient high-speed, low-latency capacity to deliver service to all 16 customers in that area at minimum speed and usage allowances that are reasonably 17 comparable to those available in urban areas of the state and at rates and under terms 18 and conditions that are reasonably comparable to those available in urban areas of the 19 state; or 20 (2) most of the facilities in the area are owned or controlled by a single 21 entity or affiliates of the entity. 22 (d) To make the determination under (c) of this section, the authority may 23 (1) determine and consider the current level of broadband Internet 24 access in urban and rural areas of the state; 25 (2) determine an acceptable level of broadband Internet access 26 throughout the state and in so doing may consider the findings of the Federal 27 Communications Commission under 47 U.S.C. 1302(b) (sec. 706(b), 28 Telecommunications Act of 1996); or 29 (3) monitor the ongoing deployment and capacity of high-speed, low- 30 latency telecommunications transport network facilities between points in the state, 31 including projects that are currently being developed and projects that are in the
01 planning and predevelopment stage. 02 (e) In this section, 03 (1) "affiliate" means a person or entity that directly or indirectly owns 04 or controls, is owned or controlled by, or is under common ownership or control with, 05 another person or entity; 06 (2) "entity" means the controlling entity and its affiliates; 07 (3) "own" means to own an equity interest of more than 10 percent. 08 Sec. 44.83.670. Broadband powers of the authority. (a) The authority may 09 (1) apply for and accept a gift, grant, or loan from a federal agency, an 10 agency or instrumentality of the state or of a municipality, or a private source for the 11 purpose of planning, constructing, deploying, owning, operating, maintaining, 12 repairing, or replacing broadband networking infrastructure in order to provide 13 sufficient and affordable high-speed, low-latency connectivity between unserved and 14 underserved customer areas and fiber-optic cables that connect to the Internet; 15 (2) use a gift, grant, or loan accepted under (1) of this section to 16 (A) plan efficient routing and deployment of 17 telecommunications facilities between points in the state that are unserved or 18 underserved by high-speed, low-latency telecommunications connectivity to 19 existing fiber-optic cables; or 20 (B) construct, upgrade, install, own, or operate 21 telecommunications facilities described in (A) of this paragraph; 22 (3) subject to the limitations in this paragraph, sell transmission 23 services and lease capacity to retail providers of broadband data services and Internet 24 access services at a wholesale price and on just, reasonable, and nondiscriminatory 25 rates, terms, and conditions for the use of those retail providers to offer the services to 26 retail end-user customers in unserved and underserved areas; the authority may not 27 enter into a sale or lease of capacity if, following the transaction, the purchaser or an 28 affiliate of the purchaser, at the time of the transaction, would own, operate, or 29 otherwise control more than 30 (A) one-third of the total terrestrial network capacity serving 31 the area; or
01 (B) one-half of the total terrestrial network capacity available 02 for sale to serve the area; 03 (4) enter into a contract or other transaction with a federal agency, with 04 an agency or instrumentality of the state or of a municipality, or with a private 05 organization or other party; 06 (5) employ appropriate consultative, technical, legal, clerical, and other 07 personnel for the implementation of AS 44.83.660 and this section, within the limits of 08 available funds; 09 (6) prepare reports of the authority's activities, including changes in the 10 number of areas that remain unserved or underserved by high-speed, low-latency 11 telecommunications connectivity to existing fiber-optic cables that connect to the 12 Internet; the authority shall submit a report under this paragraph to the governor, chief 13 clerk of the house of representatives, and senate secretary and notify the legislature 14 when the report is available; and 15 (7) take an action, not inconsistent with AS 44.83.660, as is necessary 16 to execute the function of the authority. 17 (b) In this section, "affiliate" has the meaning given in AS 44.83.660(e). 18 * Sec. 18. AS 44.83.990(1) is amended to read: 19 (1) "authority" means the Alaska Energy and Broadband Authority 20 established by this chapter; 21 * Sec. 19. AS 44.83.995 is amended to read: 22 Sec. 44.83.995. Short title. This chapter may be cited as the Alaska Energy 23 and Broadband Authority Act. 24 * Sec. 20. AS 44.88.080(30) is amended to read: 25 (30) with legislative approval and notwithstanding AS 44.88.060, to 26 purchase from the Alaska Energy and Broadband Authority as an investment of the 27 revolving fund, loans of the power project fund established under AS 42.45.010; 28 * Sec. 21. AS 44.99.030(a) is amended to read: 29 (a) Notwithstanding other provisions of law, the following entities may not 30 contract with a person to pay the person money or other thing of value to lobby the 31 state, a municipality of the state, or an agency of the state or municipality:
01 (1) Alaska Aerospace Corporation; 02 (2) Alaska Commercial Fishing and Agriculture Bank; 03 (3) Alaska Energy and Broadband Authority; 04 (4) Alaska Housing Finance Corporation; 05 (5) Alaska Industrial Development and Export Authority; 06 (6) Alaska Medical Facility Authority; 07 (7) Alaska Mental Health Trust Authority; 08 (8) Alaska Municipal Bond Bank Authority; 09 (9) Alaska Permanent Fund Corporation; 10 (10) Alaska Railroad Corporation; 11 (11) [REPEALED 12 (12)] Alaska Seafood Marketing Institute; 13 (12) [(13)] Alaska Student Loan Corporation. 14 * Sec. 22. AS 44.99.040(b)(2) is amended to read: 15 (2) "state or municipal agency" means the University of Alaska, the 16 Alaska Aerospace Corporation, the Alaska Housing Finance Corporation, the Alaska 17 Industrial Development and Export Authority, the Alaska Energy and Broadband 18 Authority, the Alaska Railroad Corporation, or a department, institution, board, 19 commission, division, council, committee, authority, public corporation, school 20 district, regional educational attendance area, or other administrative unit of a 21 municipality or of the executive, judicial, or legislative branch of state government, 22 and includes employees of those entities.