05/14/2026 01:30 PM Senate FINANCE

CS FOR HOUSE BILL NO. 388(FIN)                                                                                                
     "An Act relating to loans made from the bulk fuel loan                                                                     
     account; and providing for an effective date."                                                                             
                                                                                                                                
2:08:00 PM                                                                                                                    
                                                                                                                                
PAUL LABOLLE, STAFF,  REPRESENTATIVE NEAL FOSTER, introduced                                                                    
the legislation.  He stated the  bill would double  the fuel                                                                    
loan  cap,  taking it  from  $750,000  to $1.5  million.  He                                                                    
stated that it would  also eliminate the alternative minimum                                                                    
cap  on  pooled  loans.  He explained  the  bulk  fuel  loan                                                                    
program.                                                                                                                        
                                                                                                                                
Co-Chair  Stedman   wondered  when  the  current   limit  of                                                                    
$750,000 was put in place.                                                                                                      
                                                                                                                                
Mr. Labolle deferred to Ms. Moller.                                                                                             
                                                                                                                                
2:11:03 PM                                                                                                                    
                                                                                                                                
SANDRA MOLLER, DIRECTOR, DIVISION  OF COMMUNITY AND REGIONAL                                                                    
AFFAIRS,  DEPARTMENT  OF  COMMERCE, COMMUNITY  AND  ECONOMIC                                                                    
DEVELOPMENT,  ANCHORAGE  (via   teleconference),  agreed  to                                                                    
provide that information.                                                                                                       
                                                                                                                                
Senator Kiehl requested  an update on the  general status of                                                                    
the fund, such as the balance.                                                                                                  
                                                                                                                                
Ms.   Moller   replied   that  the   current   balance   was                                                                    
approximately $20  million. She stated that  there were some                                                                    
loan requests that have recently had submission.                                                                                
                                                                                                                                
Senator Kiehl asked  about the total volume of  lending in a                                                                    
given year.                                                                                                                     
                                                                                                                                
Ms.  Moller  responded  that  the  average  was  around  $18                                                                    
million  to  $20  million  per  year, with  as  high  as  78                                                                    
borrowers.                                                                                                                      
                                                                                                                                
Senator Kaufman  queried the  cost of  capital, specifically                                                                    
the cost of loans.                                                                                                              
                                                                                                                                
Ms.  Moller replied  that the  program had  a range  zero to                                                                    
four  percent  on  the loan,  depending  on  the  borrower's                                                                    
history. She  stated that the fund  was recently transferred                                                                    
to the Permanent Fund Corporation.                                                                                              
                                                                                                                                
2:15:20 PM                                                                                                                    
                                                                                                                                
Senator Kiehl detailed the fiscal noes.                                                                                         
Mr. Labolle explained that there was an indeterminate icon                                                                      
on the zero fiscal note.                                                                                                        
                                                                                                                                
Senator  Kaufman  requested  more  transparency  around  the                                                                    
interest rates, and  felt it was not apparent  in the fiscal                                                                    
notes. He  assumed that the  rates would affect  the capital                                                                    
costs.                                                                                                                          
                                                                                                                                
Mr. Labolle thanked the committee.                                                                                              
                                                                                                                                
CSHB 388(FIN) was HEARD and HELD in committee for further                                                                       
consideration.