Bill would set borrowing limits for Alaska bulk fuel loans

The bill would set a maximum amount for loans from the bulk fuel loan account. One borrower could receive up to $1.5 million. A qualifying cooperative buying fuel for multiple communities could receive up to $1.5 million for each community. A cooperative organized under Alaska law could use the per-community calculation only when it buys bulk fuel for more than one community. The division may set additional loan terms and conditions. These limits would apply immediately to loans already in place and loans made on or after the Act’s effective date.

The bill would set a maximum amount and repayment period for loans from the bulk fuel bridge loan account. One borrower’s bridge loans could total up to $1.5 million in a fiscal year. The division may set additional loan terms and conditions. The one-year repayment period would begin when each loan is paid out. These rules would apply immediately to loans already in place and loans made on or after the Act’s effective date.