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ENGROSSED SENATE
BILL NO. 1091 By: Thompson and Hall of the
Senate
and
Wallace and Martinez of the
House
An Act relating to municipal utilities; defining
terms; creating the February 2021 Winter Storm Grant
Revolving Fund; providing for sources of revenue;
stating purpose of fund; establishing procedures for
expenditures from fund; requiring t he Oklahoma
Department of Agriculture, Food, a nd Forestry to
create grant program; providing eligibility
requirements; requiring promulgation of ru les;
requiring the Department to provide certain report;
providing for codification; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE O F THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11-11 of Title 2, unless there
is created a duplication in numbering, reads as follows:
As used in this act:
1. "Extraordinary costs" means costs incurred by an
incorporated municipality 's unregulated utility related t o the
extreme weather that occurred beginning February 7, 2021, and ending
February 21, 2021, including but not limited to fuel -related storage
and associated costs, emergency compressed or liquified natural gas
supplies, contracts for services providing a dditional pressurization
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on lines and transportation pipeline penalties. Extraordinary costs
shall not include extreme purchase costs, as defined in thi s
section;
2. "Extreme purchase costs " means expenses incurred for the
purchase of fuel, purchased pow er, natural gas commodity, or any
combination thereof, whether at spot pricing, index pricing , or
otherwise with delivery beginning February 7, 2021, and ending
February 21, 2021;
3. "Utility" shall mean any person or entity doing business in
this state that furnishes natural gas or electric current to its
customers located at an address within this st ate and within the
service area of the utility; and
4. "Unregulated utility" shall mean any utility, as defined in
this section, which is not subject to the regulatory jurisdiction of
the Corporation Commission with respect to its rates, charges, and
terms and conditions of service.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11-12 of Title 2, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the Oklahoma Department of Agriculture, Food, and Forest ry to be
designated the "February 2021 Winter Storm Grant Revolving Fund".
The fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all monies received by the
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Department in the form of appropriations, donations, or other monies
designated for deposit in the fund. All monies accruing to the
credit of the fund are hereby appropriated and may be budgeted and
expended by the Department for the purpose of providing grants to an
incorporated municipality as provided by this act. Expenditures
from the fund shall be made upon wa rrants issued by the State
Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Servic es for
approval and payment.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11-13 of Title 2, unless there
is created a duplication in numbering, reads as follo ws:
A. The Oklahoma Departm ent of Agriculture, Food, and Forestry
shall develop a grant program for the purpose of providing grants to
incorporated municipalities to mitigate extreme purchase costs,
extraordinary costs, or both, incurred by the incorporate d
municipality's owned or controlled unregulated utility affected by
the extreme weather event that began February 7, 2021. To qualify
for a grant, the following requirements shall be met :
1. The incorporated municipality must show proof of extreme
purchase costs, extraordinary co sts, or both incurred by the
incorporated municipality 's owned or controlled unregulated utility ;
2. The population of the incorporated municipality shall be no
greater than three thousand five hundred (3,500) persons according
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to the most recent Federal D ecennial Census or most recent annual
estimate of the population by the United States Census Bureau ; and
3. The incorporated municipality's owned or controlled
unregulated utility has had no costs mitigated through
securitization as provided by Sections 9 070 through 9081 of Title 74
of the Oklahoma Statutes .
B. The Department shall promulgate rules necessary fo r
determining the eligibility and priority of applicants for the
grants. In determining the priority of applicants, the D epartment
shall consider the implications of the extraordinary costs and
extreme purchase costs regarding the incorporated municipalit y's
solvency and the amount of the incorporated municipality 's
extraordinary costs and extreme purchase costs on a per cap ita
basis.
C. On or before February 1, 2023, the Oklahoma Department of
Agriculture, Food, and Forestry shall provide a report to the
Governor, President Pro Tempore of the Senate, and the Speaker of
the House of Representatives that includes the list of
municipalities who applied for the grant, the amount requested by
each municipality, municipalities that were awarded grants, the
amount of each grant awarded, and any other information the
Department determines to be necessary .
SECTION 4. It being immediately nece ssary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
Passed the Senate the 18th day of May, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2022.
Presiding Officer of the House
of Representatives