BULK FUEL LOAN CAP

Plain English Breakdown

The official text states the act takes effect 'immediately' but does not provide a specific calendar date in this excerpt.

SB288: Bulk Fuel Loan Cap

This law raises the maximum loan amount from Alaska's bulk fuel accounts to $1,500,000 per borrower and requires all loans to be paid back within one year.

What This Bill Does

• Increases the single-borrower loan limit for the bulk fuel loan account from $750,000 to $1,500,000.
• Allows cooperative corporations buying fuel for multiple communities to receive up to $1,500,000 multiplied by the number of communities served.
• Increases the single-borrower loan limit for the bulk fuel bridge loan account from $750,000 to $1,500,000 per fiscal year.
• Requires all loans from these accounts to be repaid within one year after the money is given out.
• Applies these new rules to both existing loans and any new loans made on or after the effective date.

Who It Names or Affects

• Borrowers who receive funds from the bulk fuel loan account.
• Cooperative corporations organized under AS 10.15 that purchase fuel for multiple communities.
• Electric cooperatives organized under AS 10.25 that purchase fuel for multiple communities.

Terms To Know

Bulk Fuel Loan Account

A state fund used to lend money so groups can buy large amounts of heating or vehicle fuel at once.

Bridge Loan Account

A separate state fund that provides short-term loans for bulk fuel purchases until other funding is available.

Limits and Unknowns

• The bill text does not list a specific calendar date when the law becomes effective, only stating it takes effect immediately.
• The exact number of communities served by any borrower must be determined to calculate their maximum loan amount under the new rules.

Official Summary Text

BULK FUEL LOAN CAP
An Act relating to loans made from the bulk fuel loan account; and providing for an effective date.

Current Bill Text

SB0288A -1- SB 288
New Text Underlined [DELETED TEXT BRACKETED]

34-LS1680\A

SENATE BILL NO. 288

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE SENATE FINANCE COMMITTEE

Introduced: 5/6/26
Referred: Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to loans made from the bulk fuel loan account; and providing for an 1
effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 42.45.260(d) is amended to read: 4
(d) Loans made from the bulk fuel loan account to one borrower 5
(1) may not exceed $1,500,000 [$750,000] or, if the borrower is a 6
cooperative corporation organized under AS 10.15 or an electric cooperative 7
organized under AS 10.25 and uses the loan to purchase bulk fuel on behalf of more 8
than one community, may not exceed $1,500,000 [$750,000] multiplied by the number 9
of communities on whose behalf the bulk fuel is to be purchased [OR $1,800,000, 10
WHICHEVER IS LESS]; 11
(2) shall be repaid within one year after the date of the loan 12
disbursement; and 13
(3) may include additional terms and conditions required by the 14
34-LS1680\A
SB 288 -2- SB0288A
New Text Underlined [DELETED TEXT BRACKETED]

division. 1
* Sec. 2. AS 42.45.270(c) is amended to read: 2
(c) Loans made from the bulk fuel bridge loan account to one borrower in a 3
fiscal year 4
(1) may not exceed $1,500,000 [$750,000]; 5
(2) shall be repaid within one year after the date of the loan 6
disbursement; and 7
(3) may include additional terms and conditions required by the 8
division. 9
* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 10
read: 11
APPLICABILITY. AS 42.45.260(d), as amended by sec. 1 of this Act, and 12
AS 42.45.270(c), as amended by sec. 2 of this Act, apply to loans existing on or entered into 13
on or after the effective date of this Act. 14
* Sec. 4. This Act takes effect immediately under AS 01.10.070(c). 15