Enrolled HB 196: Relating to the power project fund and to the bulk fuel revolving loan fund; establishing a bulk fuel loan account and making the bulk fuel loan account and the bulk fuel bridge loan account separate accounts in the bulk fuel revolving loan fund; providing for technical assistance to rural borrowers under the bulk fuel bridge loan program; relating to the administration and investment of the bulk fuel revolving loan fund by the division in the Department of Commerce, Community, and Economic Development responsible for community and regional affairs; and providing for an effective date.
00Enrolled HB 196 01 Relating to the power project fund and to the bulk fuel revolving loan fund; establishing a 02 bulk fuel loan account and making the bulk fuel loan account and the bulk fuel bridge loan 03 account separate accounts in the bulk fuel revolving loan fund; providing for technical 04 assistance to rural borrowers under the bulk fuel bridge loan program; relating to the 05 administration and investment of the bulk fuel revolving loan fund by the division in the 06 Department of Commerce, Community, and Economic Development responsible for 07 community and regional affairs; and providing for an effective date. 08 _______________ 09 * Section 1. AS 42.45.010(b) is amended to read: 10 (b) The authority may make loans from the power project fund 11 (1) to electric utilities, regional electric authorities, municipalities,
01 regional and village corporations, village councils, and independent power producers 02 to pay the costs of 03 (A) reconnaissance studies, feasibility studies, license and 04 permit applications, preconstruction engineering, and design of power projects; 05 and 06 (B) constructing, equipping, modifying, improving, and 07 expanding small-scale power production facilities that are designed to produce 08 less than 10 megawatts of power, bulk fuel storage facilities, and transmission 09 and distribution facilities, including energy production, transmission and 10 distribution, waste energy, energy conservation, energy efficiency, and 11 alternative energy facilities and equipment; 12 (2) to a borrower for a power project or for bulk fuel, waste energy, 13 energy conservation, energy efficiency, or alternative energy facilities or equipment if 14 (A) the loan is entered into under a leveraged lease financing 15 arrangement; 16 (B) the party that will be responsible for the power project or 17 the bulk fuel, waste energy, energy conservation, energy efficiency, or 18 alternative energy facilities or equipment is an electric utility, regional electric 19 authority, municipality, regional or village corporation, village council, or 20 independent power producer; and 21 (C) the borrower seeking the loan demonstrates to the authority 22 that the financing arrangement for the power project or the bulk fuel, waste 23 energy, energy conservation, energy efficiency, or alternative energy facilities 24 or equipment will reduce financing costs for the project, facilities, or 25 equipment below costs of comparable public power projects, facilities, or 26 equipment [; 27 (3) TO THE BULK FUEL REVOLVING LOAN FUND FOR THE 28 PURPOSES DESCRIBED IN AS 42.45.250(l) UNDER TERMS, INCLUDING 29 INTEREST, THAT THE AUTHORITY DETERMINES ARE APPROPRIATE TO 30 MAINTAIN THE VIABILITY OF THE POWER PROJECT FUND AND THE 31 BULK FUEL REVOLVING LOAN FUND; HOWEVER, THE AUTHORITY MAY
01 NOT MAKE A LOAN UNDER THIS PARAGRAPH IF 02 (A) THE CUMULATIVE OUTSTANDING BALANCE OF 03 THE LOANS WOULD EXCEED THE LESSER OF $2,000,000 OR 10 04 PERCENT OF THE CASH BALANCE OF THE POWER PROJECT FUND 05 ON JUNE 30 OF THE PRECEDING FISCAL YEAR; OR 06 (B) THE CASH BALANCE OF THE POWER PROJECT 07 FUND IS LESS THAN $5,000,000]. 08 * Sec. 2. AS 42.45.250(a) is amended to read: 09 (a) The bulk fuel revolving loan fund is established in the division 10 [AUTHORITY] to assist communities, utilities providing power in communities, and 11 fuel retailers in communities in purchasing bulk fuel to generate power or supply the 12 public with fuel for use in communities. A community, or a person generating power 13 or selling fuel in a community or maintaining community facilities or 14 infrastructure [WHO HAS WRITTEN ENDORSEMENT FROM THE 15 GOVERNING BODY OF EACH COMMUNITY FOR WHICH A LOAN FROM 16 THE FUND IS SOUGHT,] is eligible for a bulk fuel loan under AS 42.45.260 or a 17 bulk fuel bridge loan under AS 42.45.270 to purchase [FROM THE BULK FUEL 18 REVOLVING LOAN FUND FOR A PURCHASE OF AN EMERGENCY SUPPLY 19 OR A SEMIANNUAL OR ANNUAL SUPPLY OF] bulk fuel to be used in the 20 community. 21 * Sec. 3. AS 42.45.250(b) is amended to read: 22 (b) Money in the fund may be used by the legislature to make appropriations 23 for costs of administering AS 42.45.250 - 42.45.299 [THIS SECTION]. 24 * Sec. 4. AS 42.45.250 is amended by adding new subsections to read: 25 (n) The fund consists of 26 (1) money appropriated to, transferred to, or received by gift, grant, 27 devise, bequest, or donation to the fund; 28 (2) principal and interest payments or other income earned on loans or 29 investments of the fund and appropriated to the fund. 30 (o) The fund is not a dedicated fund. 31 (p) The division shall establish and implement a technical assistance program
01 for borrowers. Technical assistance shall be provided to borrowers who need 02 assistance in applying for a loan or who have received a bulk fuel loan to help those 03 borrowers improve creditworthiness or other financial criteria likely to be considered 04 by the division if the borrower applies for another bulk fuel loan in the future. The 05 division may contract with a state agency or private contractor to administer or 06 implement the technical assistance program. 07 * Sec. 5. AS 42.45 is amended by adding new sections to article 4 to read: 08 Sec. 42.45.260. Bulk fuel loan account; loans. (a) The bulk fuel loan account 09 is established as a separate account within the fund. The division may make loans 10 from the bulk fuel loan account as provided in AS 42.45.250 - 42.45.299. 11 (b) The division shall establish by regulation criteria under which 12 communities or entities eligible under AS 42.45.250(a) may obtain a bulk fuel loan. 13 The criteria must require the division to consider the applicant's creditworthiness and 14 repayment history and may require the consideration of other factors. 15 (c) The division shall evaluate each application for a bulk fuel loan and shall 16 make findings if the application is denied. 17 (d) Loans made from the bulk fuel loan account to one borrower 18 (1) may not exceed $750,000 or, if the borrower is a cooperative 19 corporation organized under AS 10.15 or an electric cooperative organized under AS 20 10.25 and uses the loan to purchase bulk fuel on behalf of more than one community, 21 may not exceed $750,000 multiplied by the number of communities on whose behalf 22 the bulk fuel is to be purchased or $1,800,000, whichever is less; 23 (2) shall be repaid within one year after the date of the loan 24 disbursement; and 25 (3) may include additional terms and conditions required by the 26 division. 27 (e) The division may contract with a private contractor to administer the loan 28 account. 29 Sec. 42.45.270. Bulk fuel bridge account; loans. (a) The bulk fuel bridge 30 loan account is established as a separate account within the fund. Subject to 31 availability of funds in the account, the division may make bulk fuel bridge loans from
01 the bulk fuel bridge loan account as provided in AS 42.45.250 - 42.45.299. 02 (b) A community or person is eligible for a bulk fuel bridge loan only if the 03 community or person 04 (1) meets the requirements of AS 42.45.250(a); and 05 (2) has been denied an application for a bulk fuel loan under AS 06 42.45.260. 07 (c) Loans made from the bulk fuel bridge loan account to one borrower in a 08 fiscal year 09 (1) may not exceed $750,000; 10 (2) shall be repaid within one year after the date of the loan 11 disbursement; and 12 (3) may include additional terms and conditions required by the 13 division. 14 (d) The division shall implement a technical assistance and counseling plan 15 for borrowers who have received a bulk fuel bridge loan to help those borrowers 16 improve creditworthiness or other financial criteria likely to be considered by the 17 division if the borrower applies for another bulk fuel loan in the future. The division 18 may contract with a state agency or outside contractor to administer or implement the 19 technical assistance and counseling plan. 20 Sec. 42.45.280. Bulk fuel loan and bulk fuel bridge loan interest rates. (a) 21 Except as provided under (b) and (c) of this section, interest shall be charged on a bulk 22 fuel loan and bulk fuel bridge loan at a base rate of four percent. 23 (b) The division may establish by regulation a program to reduce the interest 24 rate on the second and subsequent bulk fuel loans obtained by a borrower. In 25 evaluating a potential interest rate reduction, the division shall consider the borrower's 26 repayment history and any other criteria that may be established by regulation. The 27 division may by regulation reduce the interest rate on a bulk fuel loan made by the 28 division by one percent for a borrower who has had at least one previous bulk fuel 29 loan made by the division or by two percent for a borrower who has had two or more 30 previous bulk fuel loans made by the division. The division shall make findings if an 31 application for an interest rate reduction is denied.
01 (c) For the first time a borrower receives a bulk fuel bridge loan, the interest 02 rate shall be zero percent. For all loans made after the first bulk fuel bridge loan to a 03 borrower, the interest rate shall be set according to the procedure described in (a) of 04 this section. 05 Sec. 42.45.299. Definitions. In AS 42.45.250 - 42.45.299, unless the context 06 otherwise requires, 07 (1) "community" means an organized municipality or an 08 unincorporated village that is a social unit if the organized municipality or 09 unincorporated village has a population of less than 2,000 people; 10 (2) "division" means the division in the Department of Commerce, 11 Community, and Economic Development that is responsible for community and 12 regional affairs; 13 (3) "fund" means the bulk fuel revolving loan fund established in AS 14 42.45.250(a) and administered under AS 42.45.250 - 42.45.299; 15 (4) "person" 16 (A) has the meaning given in AS 01.10.060; 17 (B) includes a cooperative, a joint venture, and a governmental 18 entity. 19 * Sec. 6. AS 29.60.660; AS 42.45.250(c), 42.45.250(d), 42.45.250(e), 42.45.250(f), 20 42.45.250(g), 42.45.250(h), 42.45.250(i), 42.45.250(j), 42.45.250(k), 42.45.250(l), and 21 42.45.250(m) are repealed. 22 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 TRANSITION: TRANSFER OF MONEY IN BULK FUEL BRIDGE LOAN FUND. 25 Subject to appropriation, the money in the bulk fuel bridge loan fund in AS 29.60.660, 26 repealed by sec. 6 of this Act, is transferred to the bulk fuel revolving loan fund in AS 27 42.45.250 for deposit into the bulk fuel bridge loan account established in AS 42.45.270, 28 added by sec. 5 of this Act. 29 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 TRANSITION: COLLECTIONS. Notwithstanding the repeal of AS 29.60.660 by sec.
01 6 of this Act, subject to appropriation, amounts collected by the Department of Commerce, 02 Community, and Economic Development from enforcement of contracts, rights, liabilities, 03 and obligations created by or under AS 29.60.660 are transferred to the bulk fuel revolving 04 loan fund in AS 42.45.250 for deposit into the bulk fuel bridge loan account established in AS 05 42.45.270, added by sec. 5 of this Act. 06 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 TRANSITION: PENDING PROCEEDINGS; EXISTING CONTRACTS, RIGHTS, 09 LIABILITIES, AND OBLIGATIONS. (a) All litigation, hearings, and other proceedings 10 pending under a law repealed by this Act continue in effect and may be continued and 11 completed by the Department of Commerce, Community, and Economic Development. 12 (b) Contracts, rights, liabilities, and obligations created by or under a law amended or 13 repealed by this Act and in effect on the day before the effective date of sec. 6 of this Act 14 remain in effect and may be enforced by the Department of Commerce, Community, and 15 Economic Development, notwithstanding the repeal of AS 29.60.660 by sec. 6 of this Act or 16 another repeal or amendment in this Act. 17 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 TRANSITION: REGULATIONS. The division in the Department of Commerce, 20 Community, and Economic Development that is responsible for community and regional 21 affairs may adopt regulations necessary to implement this Act. The regulations take effect 22 under AS 44.62 (Administrative Procedure Act), but not before January 1, 2013. 23 * Sec. 11. Section 10 of this Act takes effect immediately under AS 01.10.070(c). 24 * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect January 1, 2013.