This page is no longer used please use www.akleg.gov
28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled SB 99                                                                                                          
01 Relating to the Alaska Industrial Development and Export Authority revolving fund; limiting                             
02 the use of the Alaska Industrial Development and Export Authority sustainable energy                                    
03 transmission and supply development fund for certain loans and loan guarantees and allowing                             
04 the development fund to be used as security for a bond guarantee; amending the definition of                            
05 "qualified energy development"; authorizing the Alaska Industrial Development and Export                                
06 Authority to issue bonds to finance the infrastructure and construction costs of the Bokan-                             
07 Dotson Ridge rare earth element project and the Niblack project; and relating to legislative                            
08 approval for a loan from the power project fund for the Blue Lake hydroelectric project.                                
09                           _______________                                                                               
10    * Section 1. AS 44.88.660 is amended to read:                                                                      
11            Sec. 44.88.660. Alaska Industrial Development and Export Authority                                         
01       sustainable energy transmission and supply development fund. The Alaska                                         
02       Industrial Development and Export Authority sustainable energy transmission and                                   
03       supply development fund is established in the authority. The development fund                                     
04       consists of appropriations made to the development fund by the legislature, money or                              
05       other assets transferred to the development fund by a vote of the members of the                              
06       authority under AS 44.88.050 from any other fund controlled by the authority,                                 
07       and unrestricted loan repayments, interest, or other income earned on loans,                                      
08       investments, or assets of the development fund. The development fund is not an                                    
09       account in the revolving [LOAN] fund established in AS 44.88.060, and the authority                               
10       shall account for the development fund separately from the revolving fund. The                                    
11       authority may create additional accounts in the development fund. Subject to                                      
12       agreements made with the holders of the authority's bonds or with other persons, the                              
13       authority may transfer amounts in an account in the development fund to another                                   
14       account in the development fund. Amounts deposited in the development fund may be                                 
15       pledged to the payment of bonds of the authority or expended for the purposes of                                  
16       AS 44.88.650 - 44.88.690. The authority has the powers and responsibilities                                       
17       established in AS 37.10.071 with respect to the investment of amounts held in the                                 
18       development fund.                                                                                                 
19    * Sec. 2. AS 44.88.690(a) is amended to read:                                                                      
20            (a)  Unless the authority has obtained legislative approval by law, the authority                            
21       may not use the Alaska Industrial Development and Export Authority sustainable                                
22       energy transmission and supply development fund established in AS 44.88.660 to                                
23       make [FINANCE OR PARTICIPATE IN FINANCING OF]                                                                 
24                 (1)  a loan for more than one-third of the capital cost of qualified                                
25       energy development; or                                                                                            
26                 (2)  a loan guarantee if the amount of the guarantee [THAT] exceeds                                 
27       $20,000,000.                                                                                                      
28    * Sec. 3. AS 44.88.690 is amended by adding a new subsection to read:                                              
29            (c)  Notwithstanding (a) of this section, the authority may use the Alaska                                   
30       Industrial Development and Export Authority sustainable energy transmission and                                   
31       supply development fund established in AS 44.88.660 as security for a bond                                        
01       guarantee.                                                                                                        
02    * Sec. 4. AS 44.88.900(14) is amended to read:                                                                     
03                 (14)  "qualified energy development" means a development                                            
04       [PROJECT] in the state that involves                                                                              
05                      (A)  transmission, generation, conservation, storage, or                                           
06            distribution of heat or electricity;                                                                         
07                      (B)  liquefaction, regasification, distribution, storage, or use of                                
08            natural gas except a natural gas pipeline project for transporting natural gas                               
09            from the North Slope or Cook Inlet to market;                                                                
10                      (C)  distribution or storage of refined petroleum products;                                        
11    * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to                          
12 read:                                                                                                                   
13       LEGISLATIVE APPROVAL; BOKAN-DOTSON RIDGE RARE EARTH                                                               
14 ELEMENT PROJECT. (a) The Alaska Industrial Development and Export Authority may                                         
15 issue bonds to finance the infrastructure and construction costs of the Bokan-Dotson Ridge                              
16 rare earth element project. The Bokan-Dotson Ridge rare earth element project's surface                                 
17 complex shall be owned and operated by the authority or financed under AS 44.88.172. The                                
18 principal amount of the bonds provided by the authority for the Bokan-Dotson Ridge rare                                 
19 earth element project may not exceed $145,000,000 and may include the costs of issuing                                  
20 bonds considered reasonable and appropriate by the Alaska Industrial Development and                                    
21 Export Authority.                                                                                                       
22       (b)  This section constitutes legislative approval required by AS 44.88.095(g).                                   
23    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
24 read:                                                                                                                   
25       LEGISLATIVE APPROVAL; NIBLACK PROJECT. (a) The Alaska Industrial                                                  
26 Development and Export Authority may issue bonds to finance the infrastructure and                                      
27 construction costs of the Niblack project. The Niblack project includes a mineral processing                            
28 mill, associated dock, and loading and related infrastructure facilities at the Gravina Island                          
29 Industrial Complex, as well as infrastructure at the project site on Prince of Wales Island. The                        
30 mineral processing mill, associated dock, and loading and related infrastructure facilities at                          
31 the Gravina Island Industrial Complex, as well as infrastructure at the project site on Prince of                       
01 Wales Island, shall be owned and operated by the authority or financed under AS 44.88.172.                              
02 The principal amount of the bonds provided by the authority for the Niblack project may not                             
03 exceed $125,000,000 and may include the costs of issuing bonds considered reasonable and                                
04 appropriate by the Alaska Industrial Development and Export Authority.                                                  
05       (b)  This section constitutes legislative approval required by AS 44.88.095(g).                                 
06    * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to                        
07 read:                                                                                                                   
08       LEGISLATIVE APPROVAL OF LOAN FROM THE POWER PROJECT FUND. If                                                      
09 the Alaska Energy Authority approves a loan to the City and Borough of Sitka for the Blue                               
10 Lake hydroelectric project, the legislature authorizes the Alaska Energy Authority to loan an                           
11 amount not to exceed $18,600,000 from the power project fund (AS 42.45.010) to the City                                 
12 and Borough of Sitka for the Blue Lake hydroelectric project. This section constitutes                                  
13 legislative approval under AS 42.45.010(j) for a loan from the fund that exceeds $5,000,000.                            
New Text Underlined     [DELETED TEXT BRACKETED]