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HB 388

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

34th Legislature (2025-2026)

The bill raises per-borrower caps for bulk fuel loans to up to $1,500,000 (or $1,500,000 times the number of communities served for eligible cooperatives) with a one-year repayment

(H) EFFECTIVE DATE(S) OF LAW 7/3/26
#energy #funds #loans #oil&gas #utilities
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Bill Summary · HB 388

Summary of HB 388 (Alaska) – 34th Legislature, Second Session

Overview

HB 388 is an Alaska bill introduced by the House Finance Committee. The act relates to loans made from the bulk fuel loan account and the bulk fuel bridge loan account, establishing specific loan limits, repayment terms, and applicability dates. The bill takes effect immediately upon enactment.

Purpose and Intent

  • To modify and clarify the borrowing limits and repayment requirements for two state-administered loan programs that support bulk fuel purchases and bridge financing for borrowers.
  • To standardize limits on loan amounts per borrower and align terms for loans issued in a fiscal year.
  • To specify applicability to loans entered into on or after the act’s effective date.

Key Provisions

Section 1: Amendments to AS 42.45.260(d) – Bulk Fuel Loan Account

  • Per-borrower loan cap:
    • General rule: Loans may not exceed $1,500,000 (previously listed as $750,000 in brackets—likely indicating a prior limit or an alternate calculation).
    • Special provision for certain cooperative entities:
    • If the borrower is a cooperative corporation organized under AS 10.15 or an electric cooperative organized under AS 10.25 and the loan is used to purchase bulk fuel on behalf of more than one community, the maximum loan amount may be $1,500,000 multiplied by the number of communities served (with an explicit bracketed alternative of $750,000 and an alternate maximum of $1,800,000, whichever is less). The text presents both numbers in brackets/brackets indicating a potential change or clarification; the operative figure appears to be $1,500,000 times the number of communities (subject to the “whichever is less” construct).
  • Repayment: Loans must be repaid within one year after the date of disbursement.
  • Additional terms: May include other terms and conditions required by the division.

Section 2: Amendments to AS 42.45.270(c) – Bulk Fuel Bridge Loan Account

  • Per-borrower loan cap (in a fiscal year):
    • Loans may not exceed $1,500,000 (previously $750,000 in brackets).
  • Repayment: Loans must be repaid within one year after the date of disbursement.
  • Additional terms: May include other terms and conditions required by the division.

Section 3: Applicability

  • The amendments apply to loans existing on or entered into on or after the act’s effective date.

Section 4: Effective Date

  • The act takes effect immediately upon enactment.

Who/What Is Affected

  • Borrowers of the bulk fuel loan account and the bulk fuel bridge loan account.
  • Specifically, cooperative corporations organized under AS 10.15 and electric cooperatives under AS 10.25 may be affected by the more favorable per-community cap if they serve multiple communities.
  • The Alaska Division responsible for administering these loan programs (the Finance division in practice) will implement the terms and conditions.

Procedural/Timelines

  • Referred to the House Finance Committee for consideration.
  • If enacted, the changes apply to loans entered into on or after the effective date.
  • The bill includes an immediate effective date, meaning there is no waiting period after enactment.

Observations

  • The language around the per-community calculation for cooperatives suggests an intention to provide scalability of the loan cap based on the number of communities served, potentially enabling larger aggregate financing for multi-community systems.
  • The repeated emphasis on a one-year repayment period indicates short-term financing design intended to facilitate timely bulk fuel procurement and bridge financing.
  • The brackets in the original text imply there may be drafting adjustments or alternatives, but the operative provisions set a $1,500,000 cap per borrower (or per communities served for eligible cooperatives) with a one-year repayment term.

If you’d like, I can provide a side-by-side comparison with the current statutory language or a brief impact assessment for stakeholders (cooperatives, communities served, and the state finance division).

Compiled from official sources — confirm details with the bill’s official record.

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