(a) The Southeast energy fund is established as a separate fund. The fund consists of
(1) money appropriated to the fund by the legislature;
(2) money transferred to it under former AS 42.45.050;
(3) gifts, bequests, contributions from other sources, and federal money;
(4) interest earned on the fund balance; and
(5) investments, to be managed by the Department of Revenue, which shall be the fiduciary of the fund under AS 37.10.071.
(b) The fund is not a dedicated fund.
(c) The authority may make grants from the Southeast energy fund to a municipality of the state, a joint action agency established under AS 42.45.300 and 42.45.310, a member-owned electric cooperative established under AS 10.25, or another electric utility holding a certificate of public convenience and necessity under AS 42.05 for power projects, repayment of loans, and payments on bonds for hydroelectric projects and electrical transmission lines or interties serving Southeast Alaska that are entirely owned by the grantee.
(d) An appropriation from the fund for a project described in (c) of this section lapses back into the fund if substantial, ongoing work on the project has not begun within seven years after the effective date of the appropriation.