Legislature(1993 - 1994)

1993-05-07 Senate Journal

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1993-05-07                     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.