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Sponsor Statement for CSSB 280 (RES)
Water/Sewer/Waste Grants To Utilities

An Act permitting grants to certain regulated public utilities for water quality enhancement projects and water, wastewater, and solid waste systems.

Under current law, privately owned public water and wastewater utilities are not eligible to participate in grants made under AS 46.03.030(b), "water quality enhancement, water supply, sewage and solid waste facilities grants." This places the ratepayers of privately owned utilities at a disadvantage when compared to the ratepayers of municipally owned utilities.

Resources Committee Substitute for Senate Bill 280 provides for the inclusion of privately owned water and wastewater utilities in the State's water and wastewater grant program if the utilities are regulated by the Regulatory Commission of Alaska. Regulation insures that all of the economic benefits of the grants are passed on to the ratepayers. The Legislature passed a similar measure in 2000, HB 304, which provided for participation by regulated, privately owned water and wastewater utilities in the State's low interest revolving loan fund.

As is currently the case with municipally owned utilities, the bill would allow privately owned utilities to make utility infrastructure improvements without forcing ratepayers to pay the full burden through increased rates. Additionally, the bill would increase the ability of the utility to expand into areas that are on the peripheral of existing systems, thereby providing water and wastewater services to families that are currently on wells and septic systems.

CS SB 280 (RES) makes grants available to primary public water and sewer utilities for water and wastewater projects only. Grants for solid waste processing, disposal or resource recovery systems would remain available only to municipalities.

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