CSSB 42(RES): "An Act establishing the Alaska Railbelt energy fund and relating to the fund; relating to and repealing the Railbelt energy fund; relating to the quorum of the Alaska Energy Authority; relating to the powers of the Alaska Energy Authority regarding employees and the transfer of certain employees of the Alaska Industrial Development Export Authority to the Alaska Energy Authority; relating to the acquisition or construction of certain projects by the Alaska Energy Authority; relating to the Alaska Energy Authority's creating subsidiary corporations for power projects; providing approval by law for the Alaska Energy Authority to create a subsidiary corporation relating to the Watana Hydroelectric Power Project; relating to the definition of 'feasibility study' in the Alaska Energy Authority Act; and providing for an effective date."
00 CS FOR SENATE BILL NO. 42(RES) 01 "An Act establishing the Alaska Railbelt energy fund and relating to the fund; relating 02 to and repealing the Railbelt energy fund; relating to the quorum of the Alaska Energy 03 Authority; relating to the powers of the Alaska Energy Authority regarding employees 04 and the transfer of certain employees of the Alaska Industrial Development Export 05 Authority to the Alaska Energy Authority; relating to the acquisition or construction of 06 certain projects by the Alaska Energy Authority; relating to the Alaska Energy 07 Authority's creating subsidiary corporations for power projects; providing approval by 08 law for the Alaska Energy Authority to create a subsidiary corporation relating to the 09 Watana Hydroelectric Power Project; relating to the definition of 'feasibility study' in 10 the Alaska Energy Authority Act; and providing for an effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 37.05.520 is amended to read:
01 Sec. 37.05.520. Railbelt energy fund. There is established in the general fund 02 the Railbelt energy fund. The fund consists of money appropriated to it by the 03 legislature and interest received on money in the fund. The Department of Revenue 04 [DEPARTMENT OF REVENUE] shall manage the fund. The legislature may 05 appropriate money from the fund to capitalize the Alaska Railbelt energy fund 06 (AS 42.45.035) or for programs, projects, and other expenditures to assist in meeting 07 Railbelt energy needs, including projects for retrofitting state-owned buildings and 08 facilities for energy conservation. 09 * Sec. 2. AS 39.25.110 is amended by adding a new paragraph to read: 10 (44) the executive director and other staff of the Alaska Energy 11 Authority appointed under AS 44.83.040. 12 * Sec. 3. AS 42.45 is amended by adding a new section to read: 13 Sec. 42.45.035. Alaska Railbelt energy fund. (a) The Alaska Railbelt energy 14 fund is established as a separate fund. The fund consists of 15 (1) money appropriated to the fund by the legislature; 16 (2) gifts, bequests, contributions from other sources, and federal 17 money; 18 (3) interest earned on the fund balance; and 19 (4) investments, to be managed by the Department of Revenue, which 20 shall be the fiduciary of the fund under AS 37.10.071. 21 (b) The fund is not a dedicated fund. 22 (c) The legislature may appropriate from the fund to conduct feasibility 23 studies on, license, permit, acquire, construct, or make grants for power projects and 24 electrical transmission lines and interties that serve the Railbelt region. 25 (d) In this section, "Railbelt region" means the service territories of the 26 electrically interconnected electric utilities that serve Fairbanks, Wasilla, Palmer, 27 Anchorage, the Kenai Peninsula, and other electrically interconnected communities. 28 * Sec. 4. 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 Authority. The powers of the 31 Alaska Energy Authority are vested in the directors, and four [THREE] directors of
01 the authority constitute a quorum. Action may be taken and motions and resolutions 02 adopted by the Alaska Energy Authority at a meeting by the affirmative vote of a 03 majority of the directors. The directors of the Alaska Energy Authority serve without 04 compensation, but they shall receive the same travel pay and per diem as provided by 05 law for board members under AS 39.20.180. 06 * Sec. 5. AS 44.83.040 is amended by adding a new subsection to read: 07 (e) The authority may appoint persons as staff, including an executive 08 director, and may employ professional advisors, counsel, technical experts, agents, and 09 other employees. The executive director and employees of the authority are in the 10 exempt service under AS 39.25.110. 11 * Sec. 6. AS 44.83.080 is amended to read: 12 Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 13 purposes, the authority has the following powers in addition to its other powers: 14 (1) to sue and be sued; 15 (2) to have a seal and alter it at pleasure; 16 (3) to make and alter bylaws for its organization and internal 17 management; 18 (4) to adopt regulations governing the exercise of its corporate powers; 19 (5) to improve, equip, operate, and maintain power projects and bulk 20 fuel, waste energy, energy conservation, energy efficiency, and alternative energy 21 facilities and equipment; 22 (6) to issue bonds to carry out any of its corporate purposes and 23 powers, including the acquisition or construction of a project to be owned or 24 leased, as lessor or lessee, by the authority or by another person or the 25 acquisition of an interest in a project or a right to capacity of a project, the 26 establishment or increase of reserves to secure or to pay the bonds or interest on them, 27 and the payment of all other costs or expenses of the authority incident to and 28 necessary or convenient to carry out its corporate purposes and powers; 29 (7) to sell, lease as lessor or lessee, exchange, donate, convey, or 30 encumber in any manner by mortgage or by creation of any other security interest, real 31 or personal property owned by it, or in which it has an interest, when, in the judgment
01 of the authority, the action is in furtherance of its corporate purposes; 02 (8) to accept gifts, grants, or loans from, and enter into contracts or 03 other transactions regarding them, with any person; 04 (9) to deposit or invest its funds, subject to agreements with 05 bondholders; 06 (10) to enter into contracts with the United States or any person and, 07 subject to the laws of the United States and subject to concurrence of the legislature, 08 with a foreign country or its agencies, for the construction, financing, acquisition, 09 operation, and maintenance of all or any part of a power project or bulk fuel, waste 10 energy, energy conservation, energy efficiency, or alternative energy facilities or 11 equipment, either inside or outside the state, and for the sale or transmission of power 12 from a project or any right to the capacity of it or for the security of any bonds of the 13 authority issued or to be issued for the project; 14 (11) to enter into contracts with any person and with the United States 15 [,] and, subject to the laws of the United States and subject to the concurrence of the 16 legislature, with a foreign country or its agencies for the purchase, sale, exchange, 17 transmission, or use of power from a project, or any right to the capacity of it; 18 (12) to apply to the appropriate agencies of the state, the United States, 19 and a foreign country and any other proper agency for the permits, licenses, or 20 approvals as may be necessary, to acquire, construct, maintain, and operate power 21 projects in accordance with the licenses or permits, and to obtain, hold, and use the 22 licenses and permits in the same manner as any other person or operating unit; 23 (13) to enter into contracts or agreements with respect to the exercise 24 of any of its powers, and do all things necessary or convenient to carry out its 25 corporate purposes and exercise the powers granted in this chapter; 26 (14) to recommend to the legislature 27 (A) the pledge of the credit of the state to guarantee repayment 28 of all or any portion of revenue bonds issued to assist in construction of power 29 projects; 30 (B) an appropriation from the general fund 31 (i) for debt service on bonds or other project purposes;
01 or 02 (ii) to reduce the amount of debt financing for the 03 project; 04 (15) to carry out the powers and duties assigned to it under AS 42.45; 05 (16) to make grants or loans to any person and enter into contracts or 06 other transactions regarding the grants or loans; 07 (17) to promote energy conservation, energy efficiency, and alternative 08 energy through training and public education; 09 (18) to acquire power projects, whether by construction, purchase, 10 gift, or lease; 11 (19) to perform feasibility studies and engineering and design with 12 respect to power projects. 13 * Sec. 7. AS 44.83 is amended by adding a new section to read: 14 Sec. 44.83.085. Creation of subsidiaries. The authority may, if approved by 15 law, create a subsidiary corporation for the purpose of constructing, financing, 16 acquiring, owning, operating, or maintaining a power project. A subsidiary 17 corporation created under this section may be incorporated under AS 10.20.146 - 18 10.20.166. The authority may transfer assets of the authority to a subsidiary 19 corporation created under this section. A subsidiary corporation created under this 20 section may borrow money and issue bonds as evidence of that borrowing and has all 21 the powers of the authority that the authority grants to the subsidiary corporation. 22 Unless otherwise provided by the authority, the debts, liabilities, and obligations of a 23 subsidiary corporation created under this section are not the debts, liabilities, or 24 obligations of the authority. 25 * Sec. 8. AS 44.83.090 is amended by adding a new subsection to read: 26 (c) In this section, "authority" includes a subsidiary corporation created under 27 AS 44.83.085. 28 * Sec. 9. AS 44.83.396(a) is amended to read: 29 (a) A power project that was acquired or constructed under AS 44.83.080(18) 30 or as part of the former energy program for Alaska is owned, and shall be 31 administered, by the authority.
01 * Sec. 10. AS 44.83.396 is amended by adding a new subsection to read: 02 (f) In this section, in reference to a specific power project, "authority" means 03 the subsidiary corporation created under AS 44.83.085, if the authority has created a 04 subsidiary corporation under AS 44.83.085 to construct, finance, acquire, own, 05 operate, or maintain the specific power project. 06 * Sec. 11. AS 44.83.990(3) is amended to read: 07 (3) "feasibility study" 08 (A) means a study conducted for the purpose of establishing the 09 economic and environmental practicality of completing a proposed power 10 project [UNDER FORMER AS 44.83.181]; 11 (B) includes engineering and design work to meet the 12 requirements for submission of a license application for a proposed new 13 project to the Federal Energy Regulatory Commission; 14 * Sec. 12. AS 37.05.520 is repealed. 15 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 APPROVAL FOR SUBSIDIARY. The Alaska Energy Authority is authorized to 18 create a subsidiary corporation as provided under AS 44.83.085 for the purpose of acquiring, 19 constructing, owning, maintaining, operating, or financing the Watana Hydroelectric Power 20 Project. This authorization constitutes the approval by law required under AS 44.83.085, 21 enacted by sec. 7 of this Act. In this section, "Watana Hydroelectric Power Project" means the 22 hydroelectric power project to be located at or near river mile 184 on the Susitna River, 23 including dams, buildings, improvements, land, equipment, engineering and design plans, 24 transmission lines, permits, licenses, governmental approvals, and other assets or property of 25 any kind associated with the hydroelectric power project. 26 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 TRANSITION: CERTAIN STATE EMPLOYEES. The Alaska Energy Authority and 29 the Alaska Industrial Development and Export Authority shall jointly identify the employees 30 of the Alaska Industrial Development and Export Authority who will be transferred as staff to 31 the Alaska Energy Authority. The transfer of employees to the Alaska Energy Authority shall
01 be completed not later than December 31, 2011. 02 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change the 05 heading of AS 44.83.040 from "Officers; meetings; quorum" to "Officers; meetings; quorum; 06 employees." 07 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 CONDITIONAL EFFECT; NOTIFICATION. Section 12 of this Act takes effect only 10 if the Twenty-Seventh Alaska State Legislature makes an appropriation that becomes law that 11 appropriates the unexpended and unobligated balance in the Railbelt energy fund 12 (AS 37.05.520) (1) to the Alaska Railbelt energy fund (AS 42.45.035), created by sec. 3 of 13 this Act, or (2) for other authorized purposes. The commissioner of administration shall notify 14 the lieutenant governor and the revisor of statutes when the conditions described in this 15 section are met. 16 * Sec. 17. If, under sec. 16 of this Act, sec. 12 of this Act takes effect, it takes effect on the 17 day after the effective date of the appropriation described in sec. 16 of this Act. 18 * Sec. 18. Except as provided in sec. 17 of this Act, this Act takes effect immediately under 19 AS 01.10.070(c).