Funding for the Small Municipality Energy Assistance Program is the result of a special appropriation requested by Governor Murkowski to address historically high fuel costs that have created a significant financial hardship on small municipalities and their residents. Funding is available to pay for fuel purchases made by eligible municipalities during the period of July1, 2004 through

June 30, 2005. Eligible municipalities have until June 30, 2006 to submit the necessary paperwork to document the fuel purchase and the municipality’s budget and CFS.

Eligibility

To be eligible to receive an energy assistance grant a municipality MUST:

• Be classified as a home rule, first class or second class city or borough as of July 1, 2005 (under AS 29.04.010 – 29.04.030);
• Have had a 2003 resident population of less than 2,500 persons (as set out in sec. 2, ch. 6, SLA 2005)

Use of Grant Funds

A grant awarded under this chapter to a city or borough must be used in the following manner:

• First used to repay any indebtedness of the city or borough to the Bulk Fuel Revolving Loan Fund administered by the Alaska Energy Authority;
• Secondly used to repay any indebtedness of the city or borough to a fuel company or fuel vendor;
• Used for the purchase of fuel by the city or borough.

Documentation Required for Payment of Grant Money

To receive reimbursement for the purchase of fuel made after July 1, 2004, a city or borough must submit to the department documentation of the fuel payment including a copy of the paid fuel invoice, cancelled municipal check, or other documentation satisfactory to the department.

A municipality may request that the department make direct payment to a fuel vendor on its behalf provided that the purchase agreement with the vendor is signed prior to June 30, 2005. Prior to making the payment, the department must receive written authorization from the municipality and a copy of the unpaid fuel invoice or signed purchase agreement.

Submit to the department a copy of the municipality’s approved budget for FY 05.

Submit to the department a copy of the municipality’s audit or Certified Financial Statement for FY 03.

All documentation for fuel payment reimbursements or requests for direct fuel vendor payment should be directed to the following address:

Small Municipality Energy Assistance Program
Division of Community and Regional Affairs
Attn: Bill Rolfzen, Program Administrator
P.O. Box 110809
Juneau, AK 99811

Additional Information

Click here to view the Emergency regulations.

Contact Information