Legislature(1993 - 1994)
1993-05-07 Senate Journal
Full Journal pdf1993-05-07 Senate Journal Page 2171 SB 126 Senator Taylor moved and asked unanimous consent that the Senate rescind its previous action in passing CS FOR SENATE BILL NO. 126(RLS) "An Act making special appropriations to fund the energy authority revolving fund; making special appropriations for design and construction of power transmission interties between Anchorage and the Kenai Peninsula, between Healy and Fairbanks, between the Swan Lake and Tyee Lake hydroelectric projects, and between Sutton and Glennallen; making special appropriations for energy project assistance, repair, improvements, acquisition, and development and for renewal and replacement funds at facilities owned by the Alaska Energy Authority; and providing for an effective date." Senator Duncan objected. The question being: "Shall the Senate rescind its previous action in passing CS FOR SENATE BILL NO. 126(RLS)?" The roll was taken with the following result: CSSB 126(RLS) Rescind Previous Action 1993-05-07 Senate Journal Page 2172 SB 126 YEAS: 11 NAYS: 9 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp, Taylor Nays: Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo, Zharoff and so, the Senate rescinded its previous action. CS FOR SENATE BILL NO. 126(RLS) was before the Senate in third reading on reconsideration. Senator Taylor moved and asked unanimous consent that the Senate return to second reading for the purpose of a specific amendment, that being Amendment No. 2. Senator Duncan objected. The question being: "Shall CS FOR SENATE BILL NO. 126(RLS) be returned to second reading for the purpose of a specific amendment?" The roll was taken with the following result: CSSB 126(RLS) Return to Second for Specific Amendment YEAS: 11 NAYS: 9 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp, Taylor Nays: Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo, Zharoff and so, the bill was returned to second reading. Senators Sharp, Taylor offered Amendment No. 2 : Page 1, line 1, through page 4, line 17: Delete all material. Insert a new title and bill sections to read: 1993-05-07 Senate Journal Page 2173 SB 126 ""An Act making appropriations for grants and loans for hydroelectric projects including power transmission interties, to capitalize certain funds for energy grant and loan programs in the state, including the power cost equalization and rural electric capitalization fund, to the Department of Community and Regional Affairs for operating costs related to power projects and programs and to capitalize the Railbelt energy fund; and providing for an effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. (a) Subject to the conditions set out in (b) and (c) of this section, the sum of $43,200,000 is appropriated from the Railbelt intertie reserve (sec. 159, ch. 208, SLA 1990) to the Department of Administration for payments as a grant under AS37.05.316 to Golden Valley Electric Association for the benefit of all the utilities participating in the intertie for design and construction of a power transmission intertie of at least 138 kilovolts between Healy and Fairbanks. (b) The appropriation made by (a) of this section is contingent upon the execution of a written agreement between the electric utilities participating in the Healy-Fairbanks power transmission intertie and the Department of Administration that provides that the participating utility or utilities agree to (1) pay the design and construction costs for the Healy-Fairbanks power transmission intertie that exceed $43,200,000; (2) pay the operation and maintenance costs of the Healy-Fairbanks power transmission intertie; and (3) allocate, in proportion to the system peak demands of the utilities participating in the intertie, less a 1.5 mill per kilowatt hour charge for all energy assessed to the line paid by the receiving utility, (A) the costs of construction that exceed the amount of the grant under this section; (B) the operation and maintenance costs; and 1993-05-07 Senate Journal Page 2174 SB 126 (C) the costs that may reasonably be charged for services provided, including transmission to the intertie. (c) The appropriation made by (a) of this section is contingent upon the execution of a written agreement between the electric utilities participating in the intertie and the department in which Golden Valley Electric Association agrees to provide the other participating utilities access to the intertie for the purpose of assured access to resources, economy energy transactions, and other similar uses. * Sec. 2. (a) Subject to the conditions set out in (b) and (c) of this section, the sum of $46,800,000 is appropriated from the Railbelt intertie reserve (sec. 159, ch. 208, SLA 1990) to the Department of Administration for payment as a grant under AS37.05.316 to Chugach Electric Association for the benefit of all the utilities participating in the intertie for design and construction of a power transmission intertie of at least 138 kilovolts between Anchorage and the Kenai Peninsula. (b) The appropriation made by (a) of this section is contingent upon the execution of a written agreement between the electric utilities participating in the Anchorage-Kenai Peninsula power transmission intertie and the Department of Community and Regional Affairs that provides that the participating utility or utilities agree to (1) pay the design and construction costs for the Anchorage-Kenai Peninsula power transmission intertie that exceed $46,800,000; (2) pay the operation and maintenance costs of the Anchorage-Kenai Peninsula power transmission intertie; and (3) allocate, in proportion to the system peak demands of the utilities participating in the intertie less a 1.5 mill per kilowatt hour charge for all energy generated by the Bradley Lake hydroelectric project purchased by the receiving utility, (A) the costs of construction that exceed the amount of the grant under this section; (B) the operation and maintenance costs; and 1993-05-07 Senate Journal Page 2175 SB 126 (C) the costs that may reasonably be charged for services provided, including transmission to the intertie. (c) The appropriation made by (a) of this section is contingent upon the execution of a written agreement between the electric utilities participating in the intertie and the department in which Chugach Electric Association agrees to provide the other participating utilities access to the intertie for the purpose of assured access to resources, economy energy transactions, and other similar uses. * Sec. 3. The balance in the Railbelt intertie reserve, after the appropriations made by secs.1 and 2 of this Act are paid, is appropriated to the Railbelt energy fund (AS37.05.520). * Sec. 4. (a) Subject to the conditions set out in (b) - (d) of f this section, the sum of $35,000,000 is appropriated from the Railbelt energy fund (AS37.05.520) for deposit in the power project fund (AS42.45.010) for payment as a loan under AS42.45.010 to the participating utilities for the design and construction of a power transmission intertie of at least 138 kilovolts between Sutton and Glennallen. (b) Notwithstanding AS42.45.010(g), repayments of principal and interest on the loan for which an appropriation is made under (a) of this section are appropriated to the Railbelt energy fund (AS37.05.520). (c) The appropriation made by (a) of this section is contingent on the participating utility or utilities and the Department of Community and Regional Affairs entering into an agreement for a loan at zero interest for a term of 50 years. (d) The appropriation made by (a) of this section is contingent upon the completion of a feasibility study and finance plan satisfactory to the Department of Community and Regional Affairs as set out in former AS44.83.181. (e) In this section, "participating utilities" means the utility or utilities participating in the design, construction, operation, and maintenance of the power transmission intertie between Sutton and Glennallen. 1993-05-07 Senate Journal Page 2176 SB 126 * Sec. 5. (a) Subject to the conditions set out in (b) and (c) o of this section, the sum of $20,000,000 is appropriated from the Railbelt energy fund (AS37.05.520) for deposit in the power project fund (AS42.45.010) for payment as a loan under AS42.45.010 to the participating utilities for design and construction of a power transmission intertie of at least 115 kilovolts between the Swan Lake and Tyee Lake hydroelectric projects. (b) Notwithstanding AS42.45.010(g), repayments of principal and interest on the loan for which an appropriation is made under (a) of this section are appropriated to the Railbelt energy fund (AS37.05.520). (c) The appropriation made by (a) of this section is contingent on the participating utility or utilities and the Department of Community and Regional Affairs entering into an agreement for a loan at three percent interest for a term of 15 years. (d) In this section, "participating utilities" mean the utilities participating in the design, construction, operation, and maintenance of the power transmission intertie between the Swan Lake and Tyee Lake hydroelectric projects. * Sec. 6. The sum of $3,900,000 is appropriated from the general fund to the Department of Community and Regional Affairs for operating costs for carrying out its powers and duties under AS42.45 and AS44.47.050(19) and (20). * Sec. 7. The unexpended and unobligated balances of the following appropriations are repealed and reappropriated to the Railbelt energy fund (AS37.05.520): (1) that portion of the appropriation made by sec. 25, ch. 80, SLA 1979, page 66, line 38, as amended by sec. 448(a), ch. 105, SLA 1985, and sec. 275(a), ch. 130, SLA 1986, that is allocated by sec. 25, ch. 80, SLA 1979, page 67, line 5 (Bradley Lake hydro project- $80,000); (2) that portion of the appropriation made by sec. 1(a), ch. 90, SLA 1981, as amended by sec. 69, ch. 92, SLA 1981, and sec. 236, ch. 141, SLA 1982, that is allocated by sec. 1(a)(1), ch. 90, SLA 1981, as amended by sec. 69, ch. 92, SLA 1981 (Bradley Lake- $5,000,000); 1993-05-07 Senate Journal Page 2177 SB 126 (3) that portion of the appropriation made by sec. 1(b), ch. 90, SLA 1981, as amended by sec. 69, ch. 92, SLA 1981, and sec. 236, ch. 141, SLA 1982, that is allocated by sec. 1(b)(1), ch. 90, SLA 1981, as amended by sec. 69, ch. 92, SLA 1981 (Bradley Lake- $10,000,000); (4) sec. 241, ch. 141, SLA 1982 (Bradley Lake hydroelectric project- $3,000,000); (5) AS44.83.420, repealed by sec. 318, ch. 171, SLA 1984 (Bradley Lake hydroelectric project); (6) sec. 5, ch. 41, SLA 1986 (Bradley Lake hydroelectric project- $50,000,000); (7) sec. 3, ch. 128, SLA 1986, page 8, line 7, as amended by sec. 1, ch. 96, SLA 1987 (Alaska Power Authority, Bradley Lake hydroelectric project- $50,000,000); (8) sec. 6, ch. 172, SLA 1988 (Bradley Lake power project- $7,000,000). * Sec. 8. (a) The sum of $13,200,000 is appropriated from the general fund to the Railbelt energy fund (AS37.05.520). (b) The sum of $66,900,000 is appropriated from the general fund to the Railbelt energy fund (AS37.05.520). (c) The sum of $66,900,000 is appropriated from the Railbelt energy fund (AS37.05.520) to the power cost equalization and rural electric capitalization fund (AS42.45.060) to capitalize the fund. * Sec. 9. The sum of $5,000,000 is appropriated from the general fund to the Department of Community and Regional Affairs for payment as a grant under AS37.05.316 to the Iliamna-New Halen-Nondalton Electric Cooperative for the design and construction of a 700 kilowatt hydroelectric power project on the Tazimina River and for the associated distribution system. * Sec. 10. The balances in the following funds on the effective date of this section are appropriated from the named former funds or accounts under the Alaska Energy Authority to the named funds established in the Department of Community and Regional Affairs to capitalize the funds: 1993-05-07 Senate Journal Page 2178 SB 126 ALASKA ENERGY FUND OR ACCOUNT DEPARTMENTAL FUND Power cost equalization fund Power cost equalization and rural electric (AS44.83.162) capitalization fund (AS42.45.060) Power project fund (AS44.83.170) Power project fund (AS42.45.010) Rural electrification revolving Rural electrification revolving loan fund (AS44.83.361) loan fund (AS42.45.020) Power development revolving loan Four dam pool transfer fund (AS44.83.500) (AS42.45.050) Bulk fuel revolving loan fund Bulk fuel revolving loan fund (AS44.83.600) (AS42.45.250) * Sec. 11. The sum of $3,000,000 is appropriated from the general fund to the power project fund (AS42.45.010) for payment as a loan to the City of Seward for completion of the electric transmission line from Seward to the Lawing substation. * Sec. 12. A sum equal to the amounts deposited in the Southeast energy fund (AS42.45.040) beginning on the effective date of this Act and ending on June 30, 1994, is appropriated from the Southeast energy fund to the Department of Administration for payment as a grant under AS37.05.316 to the Ketchikan Public Utilities for expenses related to the power transmission intertie between the Swan Lake and Tyee Lake hydroelectric projects. * Sec. 13. The sum of $126,600 is appropriated from federal receipts to the Department of Community and Regional Affairs for federally authorized energy programs and projects. * Sec. 14. A sum equal to the retained money held by the Alaska Energy Authority that is related to the authority's rural programs is transferred and appropriated to the Department of Community and Regional Affairs for the purposes originally intended and for other energy-related purposes and projects. * Sec. 15. (a) This Act takes effect only if the Eighteenth Alaska State Legislature enacts an Act that gives the Department of Community and Regional Affairs responsibility for rural power projects and programs. (b) If this Act takes effect under (a) of this section, it takes effect on the effective date of those sections of an Act that give the Department of Community and Regional Affairs responsibility for rural power projects and programs." 1993-05-07 Senate Journal Page 2179 SB 126 Senator Taylor moved for the adoption of Amendment No. 2. Senator Duncan objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSSB 126(RLS) Second Reading Amendment No. 2 YEAS: 11 NAYS: 9 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp, Taylor Nays: Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo, Zharoff and so, Amendment No. 2 was adopted. CS FOR SENATE BILL NO. 126(RLS) am was automatically in third reading. The question to be reconsidered: "Shall CS FOR SENATE BILL NO. 126(RLS) am "An Act making appropriations for grants and loans for hydroelectric projects including power transmission interties, to capitalize certain funds for energy grant and loan programs in the state, including the power cost equalization and rural electric capitalization fund, to the Department of Community and Regional Affairs for operating costs related to power projects and programs and to capitalize the Railbelt energy fund; and providing for an effective date" pass the Senate?" The roll was taken with the following result: CSSB 126(RLS) AM Third Reading - On Reconsideration 1993-05-07 Senate Journal Page 2180 SB 126 YEAS: 13 NAYS: 7 EXCUSED: 0 ABSENT: 0 Yeas: Donley, Frank, Halford, Jacko, Kelly, Leman, Little, Miller, Pearce, Phillips, Rieger, Sharp, Taylor Nays: Adams, Duncan, Ellis, Kerttula, Lincoln, Salo, Zharoff Donley changed from "Nay" to "Yea". and so, CS FOR SENATE BILL NO. 126(RLS) am passed the Senate on reconsideration. Senator Taylor moved the effective date clause. The question being: "Shall the effective date clause be adopted?" The roll was taken with the following result: CSSB 126(RLS) AM Effective Date YEAS: 11 NAYS: 9 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp, Taylor Nays: Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo, Zharoff and so, the effective date clause failed. CS FOR SENATE BILL NO. 126(RLS) am(efd fld) was referred to the Secretary for engrossment.