HOUSE BILL NO. 446 An Act establishing and relating to the power cost equalization endowment fund; relating to the power cost equalization and rural electric capitalization fund; authorizing and relating to the sale of the four dam pool hydroelectric project; establishing and relating to joint action agencies created to purchase power projects; and providing for an effective date. Vice Chair Bunde MOVED to adopt work draft 1-GH2082\D, Cramer, 4/14/00, as the version of the bill before the Committee. There being NO OBJECTION, it was adopted. KEITH LAUFER, CHIEF FINANCIAL OFFICIER, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY (AIDEA), DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT, ANCHORAGE, explained the technical changes which needed for the work draft. ? Section 4, Page 4, list the full names of the entities: Copper Valley Electric Association, the City of Ketchikan, Kodiak Electric Association, the City of Petersburg, and the City of Wrangell. Co-Chair Therriault MOVED to ADOPT that language change. There being NO OBJECTION, it was adopted. Mr. Laufer continued with the proposed changes: ? Page 8, Section 11, a technical change to the statutes, which would only occur in the event that the sale is consummated. In such an event, the inserted bottom lines would not be needed: "For purposes of this section, Tyee Lake, Swan Lake, Solomon Gulch, and Terror Lake hydroelectric facilities are considered to be one power project, and this power project is referred to as the initial project". Representative J. Davies asked why that language should be deleted. Mr. Laufer explained that it no longer applies to the Four Dam Pool projects. Mr. Laufer continued, listing changes to: ? Section 13, adding a new repealler to AS 42.45.07c. Co-Chair Therriault stated that section would only be appropriate when the sale has been finalized. Co-Chair Therriault MOVED to ADOPT the two changes recommended by Mr. Laufer. There being NO OBJECTION, they were adopted. Mr. Laufer noted that the following sections need change: ? Sections 16, 17, and 18 of the bill, refers to the "memorandum of understanding" (MOU) but do not provide a definition. He recommended that there be a reference to another MOU in the bill to be the definition for MOU's in those sections. Co-Chair Therriault suggested that they could refer back to Section 15(d) which provides the definition for the uncodified law in Subsection #11, on Page 10, Line 30. Co- Chair Therriault noted that there could not be a definition that applies to multiple sections. Every time the definition must be repeated. Representative G. Davis suggested that the names should also be changed in the definition section. Mr. Laufer agreed for purposes of the definition, the legal names are appropriate. Co-Chair Therriault MOVED to ADOPT Amendment #3 which would indicate that in the various definition sections, the legal names of the entities be used. There being NO OBJECTION, it was adopted. Co-Chair Therriault referenced Sections 16, 17 and 18. Co- Chair Therriault MOVED to ADOPT Amendment #4 which would instruct the drafters to insert a reference back to the MOU definition sections. BRIAN BJORKQUIST, (TESTIFIED VIA TELECONFERNCE), ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW, ANCHORAGE, interjected that amendment should also apply to Section 19 of the bill. Co-Chair Therriault agreed and AMENDED the MOTION to include Section 19. There being NO OBJECTION, all four sections were changed. Mr. Laufer continued: ? Delete Section 21 of the bill, which was a "hold-over" from a very early draft. At that time, AIDEA understood that they needed a delayed repealler. With the current drafting of the bill, that would not be necessary. He noted that Sections #3 and #12 would have the same effective date, July 1st, 2000. Co-Chair Therriault pointed out that there had been discussion on the "findings" section. Representative J. Davies noted for the record that $15.7 would be a subsidy for the residential. He added that having the residential subsidy does help to move the power on the commercial side and it does not subsidize that area. MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, spoke to the proposed amendment. He noted that since there was a reference to the initial project on Line 20, the option would be to delete all of #525 or put the description that is being deleted under AS 44.83.398. Mr. Laufer asked to consult Mr. Bjorkquist regarding that change. Mr. Laufer suggested the reference to the initial project was no longer necessary. Mr. Bjorkquist advised that provision would not be applicable after the sale of the Four Dam Pool. It should only be applicable to other contracts. If it does not apply to other power projects, then the entire section should be deleted. He reiterated that there should be no reference to initial project. Mr. Laufer asked if Mr. Bjorkquist thought that language would work. Mr. Bjorkquist replied that it would work. Mr. Laufer clarified the language: ? "A power sales agreement for the sale of power from a project financed with a loan under AS 44.83.510"; including the rest of the provision as written and then deleting the new language at the bottom. Co-Chair Therriault MOVED to ADOPT Amendment #5 the above language. There being NO OBJECTION, it was adopted. Representative Foster MOVED to report CS HB 446 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS HB 446 (FIN) was reported out of Committee with a "do pass" recommendation and with a new fiscal note by Department of Revenue and a note by the Alaska Industrial Development and Export Authority dated 4/12/00.