CSSB 50(NRG): "An Act relating to the programs and bonds of the Alaska Industrial Development and Export Authority; related to the financing authorization through the Alaska Industrial Development and Export Authority of a liquefied natural gas production plant and natural gas energy projects and distribution systems in the state; amending and repealing bond authorizations granted to the Alaska Industrial Development and Export Authority; and providing for an effective date."
00 CS FOR SENATE BILL NO. 50(NRG) 01 "An Act relating to the programs and bonds of the Alaska Industrial Development and 02 Export Authority; related to the financing authorization through the Alaska Industrial 03 Development and Export Authority of a liquefied natural gas production plant and 04 natural gas energy projects and distribution systems in the state; amending and 05 repealing bond authorizations granted to the Alaska Industrial Development and Export 06 Authority; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 44.88.095(c) is amended to read: 09 (c) Before entering into a lease or other agreement under AS 44.88.090(e) 10 regarding a project for which the authority agrees to issue bonds in an amount in 11 excess of $10,000,000 [$6,000,000], there must be filed with the authority a certified 12 copy of a resolution of the governing body of the political subdivision of the state, if 13 any, in which the project is to be located, consenting to the location of the project. The
01 consent need only refer to the general nature of the project ultimately to be acquired or 02 financed, as set out in a request of the proposed project applicant. Before entering into 03 a lease or other agreement under AS 44.88.090(e) regarding a project, the authority 04 shall find, on the basis of all information reasonably available to it, that 05 (1) the project and its development under this chapter will be 06 economically advantageous to the state and the general public welfare and will 07 contribute to the economic growth of the state; 08 (2) the project applicant is financially responsible; 09 (3) provision to meet increased demand on [UPON] public facilities 10 that might result from the project is reasonably assured; and 11 (4) the project will provide, or retain, employment reasonably related 12 to the amount of the financing by the authority, considering the amount of investment 13 for each [PER] employee for comparable facilities and other relevant factors. 14 * Sec. 2. AS 44.88.095(g) is amended to read: 15 (g) The authority may issue bonds in an amount greater than $25,000,000 16 [$10,000,000] to assist in the financing of a development project under AS 44.88.172 - 17 44.88.177 only if approved by the legislature [LAW], excluding refunding bonds. 18 Refunding bonds may be issued without further approval by law in a principal amount 19 sufficient to provide funds for the payment of all bonds to be refunded by them and, in 20 addition, for the payment of all other amounts that the authority considers appropriate 21 in connection with the refunding, including expenses incident to the redeeming, 22 calling, retiring, or paying of the outstanding bonds, the funding of reserves, and the 23 issuance of the refunding bonds. 24 * Sec. 3. AS 44.88.155(d) is amended to read: 25 (d) A loan participation purchased by the authority with assets of the 26 enterprise development account or with proceeds of bonds secured by assets of the 27 enterprise development account 28 (1) may not exceed $25,000,000 [$20,000,000]; however, in the case 29 of a loan participation for qualified energy development, the loan participation may 30 exceed $25,000,000 [$20,000,000] with legislative approval; 31 (2) may not be purchased unless
01 (A) the project applicant is not, or, if the applicant is not a 02 single proprietorship, all members of the business enterprise or enterprises 03 constituting the project applicant are not, in default on another loan made by 04 the state or by a public corporation of the state; and 05 (B) at least 10 percent of the principal amount of the loan is 06 retained by the loan originator, or the loan is for financing improvements in 07 energy efficiency; 08 (3) may not be purchased if the loan to be purchased exceeds 75 09 percent of the appraised value of the collateral offered as security for the loan unless 10 the amount of the loan in excess of this limit is federally insured or guaranteed or is 11 insured by a qualified mortgage insurance company, except that the loan to be 12 purchased under this paragraph may not exceed the total of loan proceeds used to 13 refinance an existing debt plus the cost of new construction, expansion, or acquisition 14 unless the proceeds from the additional amounts of the loan to be purchased are 15 restricted to uses approved by the authority to finance commercial activity in the state 16 by a business enterprise; 17 (4) may not be purchased if the participation in the loan to be 18 purchased is for a term longer than the following, except that a loan under (A) or (C) 19 of this paragraph may not have a term longer than three-quarters of the authority's 20 estimate of the life of the collateral offered as security for the loan: 21 (A) 40 years from the date the loan is made in the case of a 22 loan participation for a project described in AS 44.88.900(11)(E); 23 (B) 50 years from the date the loan is made in the case of a loan 24 participation for qualified energy development; 25 (C) 25 years from the date the loan is made in the case of a loan 26 participation for other projects; 27 (5) may be made only if the participation in the loan to be purchased 28 contains amortization provisions; the amortization provisions 29 (A) must be complete and satisfactory to the authority and 30 require periodic payments by the borrower; 31 (B) may allow the loan originator to amortize the portion of the
01 loan retained by the loan originator using a shorter amortization schedule than 02 the amortization schedule for the portion of the loan held by the authority if 03 (i) in the authority's opinion, the project financed can 04 support the increased debt service; and 05 (ii) the accelerated amortization schedule is required to 06 induce the originator to make the loan; 07 (6) may be made only if the participation in the loan to be purchased is 08 in the form and contains the terms and provisions with respect to insurance, repairs, 09 alterations, payment of taxes and assessments, default reserves, delinquency charges, 10 default remedies, acceleration of maturity, secondary liens, and other matters the 11 authority prescribes; and 12 (7) may be made only if the participation in the loan to be purchased is 13 secured as to repayment by a mortgage or other security instrument in the manner the 14 authority determines is feasible to assure timely repayment under the loan documents 15 entered into with the borrower. 16 * Sec. 4. AS 44.88.900(16) is amended to read: 17 (16) "qualified energy development" means a development in the state 18 that involves 19 (A) transmission, generation, conservation, storage, or 20 distribution of heat or electricity; 21 (B) liquefaction, regasification, distribution, storage, or use of 22 natural gas; in this subparagraph, "distribution" does not include 23 [EXCEPT] a natural gas pipeline project for transporting natural gas from the 24 North Slope or Cook Inlet to market unless the pipeline has a diameter of 12 25 inches or less and transports the natural gas to Interior Alaska; 26 (C) distribution or storage of refined petroleum products; 27 * Sec. 5. The uncodified law of the State of Alaska enacted in sec. 11(a), ch. 26, SLA 2013, 28 is amended to read: 29 (a) The Alaska Industrial Development and Export Authority, through the 30 Alaska Industrial Development and Export Authority sustainable energy transmission 31 and supply development fund (AS 44.88.660), may provide financing up to a principal
01 amount of $275,000,000 for the development, construction, and installation of, and the 02 start-up costs of operation and maintenance for, a liquefied natural gas production 03 plant and system and affiliated infrastructure in the state that will provide natural 04 gas to Interior Alaska as a primary market [ON THE NORTH SLOPE] and [A] 05 natural gas delivery and distribution systems [SYSTEM] and affiliated infrastructure 06 that will provide natural gas to [IN] Interior Alaska. 07 * Sec. 6. The uncodified law of the State of Alaska enacted in sec. 25, ch. 123, SLA 1990, 08 as repealed and reenacted by sec. 1, ch. 3, FSSLA 1992, is amended to read: 09 Sec. 25. The Alaska Industrial Development and Export Authority may issue 10 bonds to finance the acquisition, design, and construction of aircraft maintenance air 11 cargo/air transport support facilities located at Anchorage International Airport, to be 12 owned by the Authority. The principal amount of the bonds may not exceed $28,000,000 13 [$85,000,000]. This section grants the legislative approval required by AS 44.88.095. 14 * Sec. 7. Section 2, ch. 27, SLA 1993, as amended by sec. 19, ch. 111, SLA 1996; sec. 3, 15 ch. 27, SLA 1993; sec. 7, ch. 76, SLA 1995; sec. 24, ch. 111, SLA 1996; secs. 24(a) and 16 24(b), ch. 109, SLA 1998; sec. 24(d), ch. 109, SLA 1998, as amended by sec. 1, ch. 93, SLA 17 2006; and sec. 1, ch. 37, SLA 2004, are repealed. 18 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).