Enrolled HB 267: Authorizing the Alaska Railroad Corporation to provide financing for the acquisition, construction, improvement, maintenance, equipping, and operation of a natural gas pipeline and related facilities for the transportation of natural gas recovered from the North Slope of this state; authorizing the Alaska Railroad Corporation to issue bonds to finance those facilities; and providing for an effective date.
00Enrolled HB 267 01 Authorizing the Alaska Railroad Corporation to provide financing for the acquisition, 02 construction, improvement, maintenance, equipping, and operation of a natural gas pipeline 03 and related facilities for the transportation of natural gas recovered from the North Slope of 04 this state; authorizing the Alaska Railroad Corporation to issue bonds to finance those 05 facilities; and providing for an effective date. 06 _______________ 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 FINDINGS, INTENT, AND PURPOSE. (a) The legislature finds that 10 (1) the Alaska Railroad Corporation is uniquely suited to serve essential 11 functions of the state by providing financing for a facility for the transportation of certain 12 natural gas resources located within the state; 13 (2) providing financing for that facility furthers the purposes of both the state
01 and the Alaska Railroad Corporation by assuring that the state's natural gas resources will be 02 transported to their appropriate markets, thus creating revenue for the Alaska Railroad 03 Corporation and for the state and providing employment opportunities for residents of the 04 state; 05 (3) the facility also will enhance and improve the state's ability to develop and 06 transport other natural resources of the state, including oil and gas resources located off the 07 North Slope of this state; and 08 (4) these results are essential purposes of the state and the achievement of 09 these purposes is critical to the health and welfare of the state. 10 (b) A purpose of this Act is to clarify the statutory functions and powers of the Alaska 11 Railroad Corporation by expressly including the power to provide financing for transportation 12 facilities as described in this Act. 13 (c) It is the intent of the legislature that 14 (1) this Act be construed broadly to permit the Alaska Railroad Corporation 15 the greatest flexibility to accomplish the purpose described in (b) of this section within the 16 limitations set out in this Act; and 17 (2) other provisions of AS 42.40 in existence before the enactment of this Act 18 be similarly construed to complement the provisions of this Act. 19 * Sec. 2. AS 42.40.250 is amended by adding a new paragraph to read: 20 (31) provide financing for the acquisition, construction, improvement, 21 maintenance, equipping, and operation of a natural gas pipeline and related facilities 22 for the transportation of natural gas recovered from the North Slope of this state 23 without regard to whether the facilities are or will be owned in whole or in part by the 24 corporation or located on land owned by the corporation. 25 * Sec. 3. AS 42.40.630 is amended by adding a new subsection to read: 26 (b) Before issuing bonds to provide the financing described in 27 AS 42.40.250(31) for a facility to be owned in whole or in part by an entity other than 28 the corporation, the corporation shall enter into a contract, lease, or other form of 29 agreement that will, in the judgment of the corporation, provide sufficient 30 consideration to 31 (1) pay the principal of and interest on the bonds as they become due;
01 (2) create and maintain the reserves for the bond payments that the 02 corporation considers necessary or desirable; and 03 (3) pay all costs necessary to service or additionally secure the bonds, 04 including trustee's fees and bond insurance premiums, unless these costs are to be paid 05 by a party other than the corporation. 06 * Sec. 4. AS 42.40 is amended by adding a new section to read: 07 Sec. 42.40.695. Public purpose of bonds. Bonds of the corporation issued to 08 finance facilities described in AS 42.40.250(31) are issued by a public corporation and 09 an instrumentality of the state for an essential public and governmental purpose. 10 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 LEGISLATIVE AUTHORIZATION AND APPROVAL. (a) Subject to the 13 requirements of AS 42.40.630(b), enacted by sec. 3 of this Act, the Alaska Railroad 14 Corporation is authorized to issue bonds under the power granted to it in AS 42.40 to finance 15 the construction of a natural gas pipeline and related facilities for the transportation of natural 16 gas recovered from the North Slope of this state. The maximum principal amount of bonds 17 that the Alaska Railroad Corporation may issue under this section is $17,000,000,000. The 18 Alaska Railroad Corporation may issue the bonds in a single issuance or in several issuances, 19 without limitation as to number of issuances or timing, and as the Alaska Railroad 20 Corporation determines best furthers the purpose of financing the gas pipeline and related 21 facilities described in this section. The Alaska Railroad Corporation shall negotiate with the 22 producers of the gas or with one or more other entities as the Alaska Railroad Corporation 23 considers appropriate, and shall enter into agreements with those producers or one or more 24 other entities to provide revenue sufficient to accomplish the purposes described in 25 AS 42.40.630. 26 (b) This section constitutes the approval required by AS 42.40.285 for the issuance of 27 the bonds described in this section. 28 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).