00 HOUSE BILL NO. 56 01 "An Act relating to power cost equalization; relating to the power cost equalization 02 endowment fund; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 42.45.070(a) is amended to read: 05 (a) The power cost equalization endowment fund is established as a separate 06 fund of the authority. The fund consists of money appropriated to the fund by the 07 legislature, including 08 (1) [LEGISLATIVE] appropriations to the fund that are not designated 09 for annual expenditure for the purpose of power cost equalization; 10 (2) [ACCUMULATED] earnings of the fund accumulated before 11 July 1, 2021; and 12 (3) gifts, bequests, contributions of money and other assets, and federal 13 money given to the fund that are not designated for annual expenditure for power cost 14 equalization [; AND 01 (4) REPEALED]. 02 * Sec. 2. AS 42.45.070 is amended by adding new subsections to read: 03 (d) The authority shall separately account for the earnings of the fund 04 accumulated on or after July 1, 2021. The legislature may appropriate the earnings of 05 the fund to the fund. 06 (e) The authority may expend money appropriated to the fund for the purposes 07 of the fund described in AS 42.45.085 without further appropriation. 08 * Sec. 3. AS 42.45.080(c) is amended to read: 09 (c) On July 1 of each year, the commissioner shall determine 10 [(1) THE MONTHLY AVERAGE MARKET VALUE OF THE 11 FUND FOR THE PREVIOUS THREE CLOSED FISCAL YEARS; AND 12 (2)] the earnings of the fund for the previous closed fiscal year. 13 * Sec. 4. AS 42.45.085(a) is amended to read: 14 (a) Each fiscal year, the legislature may appropriate an amount from the 15 fund [FIVE PERCENT OF THE AMOUNT DETERMINED BY THE 16 COMMISSIONER OF REVENUE ON JULY 1 OF EACH YEAR UNDER 17 AS 42.45.080(c)(1) MAY BE APPROPRIATED] for the following purposes: 18 (1) [FUNDING THE POWER COST EQUALIZATION AND 19 RURAL ELECTRIC CAPITALIZATION FUND (AS 42.45.100); 20 (2)] reimbursement to the Department of Revenue for the costs of 21 establishing and managing the fund; and 22 (2) [(3)] reimbursement of other costs of administration of the fund. 23 * Sec. 5. AS 42.45.085(d) is amended to read: 24 (d) If the earnings of the fund for the previous closed fiscal year, as calculated 25 under AS 42.45.080(c) [AS 42.45.080(c)(2)], exceed the amount of the transfer 26 [APPROPRIATION] under (e) [(a)] of this section for the current fiscal year, the 27 legislature may appropriate 70 percent of the difference between the earnings of the 28 fund for the previous closed fiscal year, as calculated under AS 42.45.080(c) 29 [AS 42.45.080(c)(2)], and the transfer [APPROPRIATION] made under (e) [(a)] of 30 this section for the current fiscal year as follows: 31 (1) if the amount calculated under this subsection is less than 01 $30,000,000, that amount to a community revenue sharing or community assistance 02 fund; or 03 (2) if the amount calculated under this subsection is $30,000,000 or 04 more, 05 (A) $30,000,000 to a community revenue sharing or 06 community assistance fund; and 07 (B) the remaining amount, not to exceed $25,000,000, to the 08 renewable energy grant fund established under AS 42.45.045, to the bulk fuel 09 revolving loan fund established under AS 42.45.250, or for rural power system 10 upgrades or to a combination of the funds or purposes listed in this 11 subparagraph. 12 * Sec. 6. AS 42.45.085 is amended by adding a new subsection to read: 13 (e) Each fiscal year, the authority shall transfer the amount necessary to pay 14 each eligible electric utility the amount determined under AS 42.45.110 to the power 15 cost equalization and rural electric capitalization fund (AS 42.45.100). 16 * Sec. 7. AS 42.45.100(b) is amended to read: 17 (b) The fund shall be administered by the authority as a fund distinct from the 18 other funds of the authority. The fund is composed of 19 (1) money appropriated to provide power cost equalization to eligible 20 electric utilities and to provide grants for utility improvements; 21 (2) money appropriated from the National Petroleum Reserve - Alaska 22 special revenue fund under AS 37.05.530(g); 23 (3) money transferred [APPROPRIATED] from the power cost 24 equalization endowment fund (AS 42.45.070) under AS 42.45.085(e) 25 [AS 42.45.085(a)]; 26 (4) gifts, bequests, contributions from other sources, and federal 27 money; and 28 (5) interest earned on the fund balance. 29 * Sec. 8. AS 42.45.110(i) is amended to read: 30 (i) The authority shall review the report required under (h) of this section. 31 After review and approval of the report, the authority shall [, SUBJECT TO 01 APPROPRIATION,] pay to each eligible electric utility an amount equal to the power 02 cost equalization per kilowatt-hour determined under (a) and (c) of this section, 03 multiplied by the number of kilowatt-hours eligible for power cost equalization that 04 were sold during the preceding month to all customers of the utility under (b) of this 05 section. Payment shall be made by the authority within 30 days after receipt from the 06 utility of the report required under (h) of this section. [IF APPROPRIATIONS THAT 07 HAVE BEEN MADE FOR THE PURPOSE BY JULY 1 OF A FISCAL YEAR ARE 08 INSUFFICIENT FOR PAYMENT IN FULL, THE AMOUNT PAID TO EACH 09 ELECTRIC UTILITY SHALL BE REDUCED ON A PRO RATA BASIS. IN 10 MAKING THE PRO RATA REDUCTIONS REQUIRED BY THIS SUBSECTION, 11 THE AUTHORITY MAY NOT CONSIDER ANY POTENTIAL SUPPLEMENTAL 12 APPROPRIATION UNTIL THE APPROPRIATION HAS BEEN ENACTED.] 13 * Sec. 9. AS 42.45.085(c) is repealed. 14 * Sec. 10. This Act takes effect June 30, 2021.