Murkowski approves fuel loan changes
Alaska Gov. Frank Murkowski has signed a bill to boost the amount rural villages can borrow from the state to buy their fuel supplies for the year.
Many communities have a limited window each year when rivers or other transportation corridors can be used for fuel shipments, and so they have to buy enough to last for months at a time.
Under the measure sponsored by Democratic Sen. Donny Olson of Nome, the limit for a single borrower from the bulk fuel revolving loan fund is raised to $400,000. The limit previously was $300,000.
For cooperatives, the limit is $400,000 times the number of communities that banded together in the co-op, up to a maximum of $1.5 million.
Murkowski said the change was one of the recommendations of the Governor’s Rural Energy Action Council. He signed the bill June 19.
Loans from the fund must be repaid within a year, and can’t be more than 90 percent of the wholesale price of the fuel purchased. The loan fund is administered by Alaska Energy Authority, an agency of the Department of Commerce, Community and Economic Development. The bill takes effect 90 days after signing.
—Petroleum News
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