The Alaska House of Representatives has approved a bill that provides a way to fund a revised state revenue sharing program for municipalities.

In a 32-0 vote, the House on Friday approved a compromise version of Senate Bill 196 that was drafted by a House-Senate conference committee. The Senate failed to take up the compromise version in its Friday floor session.

If also approved by the Senate, SB 196 would give 70 percent of the excess earnings of the Power Cost Equalization fund to a revised revenue sharing program expounded in Senate Bill 210. That latter bill is awaiting the approval or veto of Gov. Bill Walker.

The remaining 30 percent of excess earnings would be returned to the PCE fund for future investment.

The state’s Power Cost Equalization program, begun in 1980 as the Power Production Cost Assistance program, subsidizes electricity rates in rural areas.

In 2000, lawmakers established an endowment fund with $100 million to keep the program running even in years with low state revenue. By July 1, the fund is expected to hold more than $1 billion, courtesy of surging investments.

In fiscal year 2017, which ends June 30, the fund is expected to earn 12 percent, while paying PCE program costs alone would require an earnings rate of only 4.3 percent.

The revised state revenue sharing program anticipates distributing $30 million per year to communities across Alaska, and Rep. Bryce Edgmon, D-Dillingham, said on the floor that it’s likely that the PCE fund can pay for both programs, as well as for rural renewable energy efforts.

“The probability of that $30 million for revenue sharing … I think is pretty good,” he said.

In years where the PCE fund underperforms, the Legislature would have to come up with an alternative source of money for revenue sharing.

The Senate is expected to vote on SB 196 early next week.