BULK FUEL LOAN CAP, the official text

Enrolled HB 388 
 Relating to loans made from the bulk fuel loan account; and providing for an effective date. 
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 * Section 1. AS 42.45.260(d) is amended to read: 
 (d) Loans made from the bulk fuel loan account to one borrower 
 (1) may not exceed $1,500,000 [$750,000] or, if the borrower is a 
 cooperative corporation organized under AS 10.15 or an electric cooperative 
 organized under AS 10.25 and uses the loan to purchase bulk fuel on behalf of more 
 than one community, may not exceed $1,500,000 [$750,000] multiplied by the number 
 of communities on whose behalf the bulk fuel is to be purchased [OR $1,800,000, 
 WHICHEVER IS LESS]; 
 (2) shall be repaid within one year after the date of the loan 
 disbursement; and 
 (3) may include additional terms and conditions required by the

division. 
 * Sec. 2. AS 42.45.270(c) is amended to read: 
 (c) Loans made from the bulk fuel bridge loan account to one borrower in a 
 fiscal year 
 (1) may not exceed $1,500,000 [$750,000]; 
 (2) shall be repaid within one year after the date of the loan 
 disbursement; and 
 (3) may include additional terms and conditions required by the 
 division. 
 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 APPROPRIATIONS TO THE BULK FUEL REVOLVING LOAN FUND. (a) For the 
 fiscal years ending June 30, 2026, and June 30, 2027, 
 (1) if the unexpended and unobligated balance of the bulk fuel revolving loan 
 fund (AS 42.45.250) is insufficient to make a loan to an eligible borrower as provided in 
 AS 42.45.260(d), as amended by sec. 1 of this Act, and AS 42.25.270(c), as amended by sec. 
 2 of this Act, the legislature may appropriate to the bulk fuel revolving loan fund the amount 
 necessary to make a loan to the eligible borrower; 
 (2) the legislature may appropriate an amount equal to an appropriation made 
 in (1) of this subsection, along with applicable interest, from the bulk fuel revolving loan fund 
 to the funding source from which the appropriation made in (1) of this subsection was made. 
 (b) It is the intent of the legislature that appropriations made under (a)(2) of this 
 section be made as soon as practicable after a borrower repays a loan made from the bulk fuel 
 revolving loan fund. 
 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 APPLICABILITY. AS 42.45.260(d), as amended by sec. 1 of this Act, and 
 AS 42.45.270(c), as amended by sec. 2 of this Act, apply to loans existing on or entered into 
 on or after the effective date of this Act. 
 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).