Skip to content
Back to Top

Bulk Fuel Revolving Loan Program

The Division of Community & Regional Affairs (DCRA) administers the bulk fuel loan program to assist communities, utilities, and fuel retailers with purchases of bulk fuel to generate power or supply the public with fuel for use in rural communities. Effective January 1, 2013, this program replaced bulk fuel loan programs previously administered by the Alaska Energy Authority (AEA) and DCRA. Loan applications are accepted year round; there is no deadline for applying for a bulk fuel loan. There are no fees to apply for a fuel loan from the program. Click on the button below to download the Bulk Fuel Loan Program Application.

Bulk Fuel Revolving Loan Program Year End Report

This report provides an annual summary of the Bulk Fuel Revolving Loan Program highlighting loans to communities across the state and the activity of the Bulk Fuel Revolving Loan Fund.


Alaska Fuel Price Report: Summer 2022

This report provides summary information about July/August 2022 fuel prices across Alaska, comparisons of historical fuel prices in the surveyed communities versus the national average, and historical pricing data from 2005 to 2022 for 100 surveyed communities.


Bulk Fuel Dashboard

An encompassing tool looking at bulk fuel facilities, combining data sources from multiple entities. Data represented includes facility owner contact information, U.S.C.G. bulk fuel inspections and enforcement action, bulk fuel loans, Bulk Fuel Storage Compliance, and data from the DCRA bi-annual Alaska Fuel Price Survey. Agencies contributing data include Alaska Energy Authority (AEA), United States Coast Guard (USCG) Sector Anchorage, State of Alaska Department of Environmental Conservation (DEC), State of Alaska Division of Community and Regional Affairs (DCRA).


Application IconBulk Fuel Loan Application and Checklist


Submit all applications to:

Division of Community and Regional Affairs
Bulk Fuel Revolving Loan Program
550 W. 7th Ave., Suite 1650
Anchorage, Alaska 99501
Telephone Number: (907) 269-4614
Fax to: 907-269-4539
Email: bulkfuel@alaska.gov


Loan Purposes
Loans may be made to assist communities in purchasing bulk fuel oil or gasoline including the shipping costs of the fuel to the community.
Statutes
Sec. 42.45.250. Definitions. [See delayed amendment note]..

(a) The bulk fuel revolving loan fund is established in the division to assist communities, utilities providing power in communities, and fuel retailers in communities in purchasing bulk fuel to generate power or supply the public with fuel for use in communities. A community, or a person generating power or selling fuel in a community or maintaining community facilities or infrastructure is eligible for a bulk fuel loan under AS 42.45.260 or a bulk fuel bridge loan under AS 42.45.270 to purchase bulk fuel to be used in the community.
(b) Money in the fund may be used by the legislature to make appropriations for costs of administering AS 42.45.250 - 42.45.299.
(c) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(d) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(e) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(f) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(g) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(h) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(i) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(j) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(k) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(l) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(m) [Repealed, Sec. 2 ch 46 SLA 2012, effective January 1, 2013].
(n) [Effective January 1, 2013]. The fund consists of
  (1) money appropriated to, transferred to, or received by gift, grant, devise, bequest, or donation to the fund;
  (2) principal and interest payments or other income earned on loans or investments of the fund and appropriated to the fund.
(o) [Effective January 1, 2013]. The fund is not a dedicated fund.
(p) [Effective January 1, 2013]. The division shall establish and implement a technical assistance program for borrowers. Technical assistance shall be provided to borrowers who need assistance in applying for a loan or who have received a bulk fuel loan to help those borrowers improve creditworthiness or other financial criteria likely to be considered by the division if the borrower applies for another bulk fuel loan in the future. The division may contract with a state agency or private contractor to administer or implement the technical assistance program.

Sec. 42.45.260. Bulk fuel loan account; loans. [Effective January 1, 2013]..

(a) The bulk fuel loan account is established as a separate account within the fund. The division may make loans from the bulk fuel loan account as provided in AS 42.45.250 - 42.45.299.
(b) The division shall establish by regulation criteria under which communities or entities eligible under AS 42.45.250(a) may obtain a bulk fuel loan. The criteria must require the division to consider the applicant's creditworthiness and repayment history and may require the consideration of other factors.
(c) The division shall evaluate each application for a bulk fuel loan and shall make findings if the application is denied.
(d) Loans made from the bulk fuel loan account to one borrower
  (1) may not exceed $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 $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.
(e) The division may contract with a private contractor to administer the loan account.

Sec. 42.45.270. Bulk fuel bridge account; loans. [Effective January 1, 2013]..

(a) The bulk fuel bridge loan account is established as a separate account within the fund. Subject to availability of funds in the account, the division may make bulk fuel bridge loans from the bulk fuel bridge loan account as provided in AS 42.45.250 - 42.45.299.   (b) A community or person is eligible for a bulk fuel bridge loan only if the community or person     (1) meets the requirements of AS 42.45.250(a); and<     (2) has been denied an application for a bulk fuel loan under AS 42.45.260.   (c) Loans made from the bulk fuel bridge loan account to one borrower in a fiscal year     (1) may not exceed $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.   (d) The division shall implement a technical assistance and counseling plan for borrowers who have received a bulk fuel bridge loan to help those borrowers improve creditworthiness or other financial criteria likely to be considered by the division if the borrower applies for another bulk fuel loan in the future. The division may contract with a state agency or outside contractor to administer or implement the technical assistance and counseling plan.

Sec. 42.45.280. Bulk fuel loan and bulk fuel bridge loan interest rates. [Effective January 1, 2013]..

(a) Except as provided under (b) and (c) of this section, interest shall be charged on a bulk fuel loan and bulk fuel bridge loan at a base rate of four percent.
(b) The division may establish by regulation a program to reduce the interest rate on the second and subsequent bulk fuel loans obtained by a borrower. In evaluating a potential interest rate reduction, the division shall consider the borrower's repayment history and any other criteria that may be established by regulation. The division may by regulation reduce the interest rate on a bulk fuel loan made by the division by one percent for a borrower who has had at least one previous bulk fuel loan made by the division or by two percent for a borrower who has had two or more previous bulk fuel loans made by the division. The division shall make findings if an application for an interest rate reduction is denied.
(c) For the first time a borrower receives a bulk fuel bridge loan, the interest rate shall be zero percent. For all loans made after the first bulk fuel bridge loan to a borrower, the interest rate shall be set according to the procedure described in (a) of this section.

Sec. 42.45.299. Definitions. [Effective January 1, 2013]..

Article 05. JOINT ACTION AGENCIES In AS 42.45.250 - 42.45.299, unless the context otherwise requires,
(1) "community" means an organized municipality or an unincorporated village that is a social unit if the organized municipality or unincorporated village has a population of less than 2,000 people;
(2) "division" means the division in the Department of Commerce, Community, and Economic Development that is responsible for community and regional affairs;
(3) "fund" means the bulk fuel revolving loan fund established in AS 42.45.250(a) and administered under AS 42.45.250 - 42.45.299;
(4) "person"
  (A) has the meaning given in AS 01.10.060;
  (B) includes a cooperative, a joint venture, and a governmental entity.

Regulations
3 AAC 161.010. Application process

To apply for a loan for the purchase and transportation of bulk fuel under AS 42.45.250 - 42.45.299, an applicant must file with the division
    (1) a completed application for a bulk fuel loan, on a form provided by the division;
    (2) proof that the application is for a community within the meaning given in AS 42.45.299;
    (3) a letter of intent, on a form provided by division, stating the amount requested and the intended use of the proposed loan money;
    (4) a bulk fuel loan agreement and promissory note, on a form provided by the division;
    (5) if the applicant is a Native village council, a resolution waiving sovereign immunity from suit for claims related to the loan, on a form provided by the division;
    (6) a resolution by community or corporate applicants approving the purchase of bulk fuel, on a form provided by the division; and
    (7) any other information requested by the division to demonstrate the applicant's eligibility for a loan.
History: Eff. 9/2/2008, Register 188; am 1/28/2009, Register 189; am 3/8/2013, Register 205 Ref.: 3 AAC 161.020
Authority: AS 42.45.250, AS 42.45.260, AS 42.45.270

3 AAC 161.020. Examination

(a) The division will process the material described in 3 AAC 161.010 and 3 AAC 161.040 and evaluate
    (1) the eligibility of the community;
    (2) the applicant's eligibility, financial and credit records, and ability to repay the loan; and
    (3) any other information relevant to eligibility for or the issuance of a bulk fuel loan or bulk fuel bridge loan.
(b) If the application is incomplete, or if the division needs additional information in order to complete an evaluation described in (a) of this section, the division will request the information necessary from the applicant. The applicant must provide the requested information not later than 30 days after the date that the division received the application. If the applicant fails to provide the requested information timely, the division will inactivate the application.
(c) On the basis of the evaluation described in (a) of this section, the division will
    (1) deny the application, if the applicant is ineligible; or
    (2) approve the application as a bulk fuel loan or a bulk fuel bridge loan; in its approval, the division may include modifications to the applicant's original request.
(d) The division will fix, in accordance with AS 42.45.250 - 42.45.299, the terms of a loan, including the interest rate and a repayment schedule.
(e) If the division denies or significantly modifies a loan request, the division will provide the applicant with a written statement of the reasons for the action and the information on which the division relied for the denial or modification.
(f) An applicant's material misstatement or omission of fact constitutes grounds for denial of a loan request.
History: Eff. 9/2/2008, Register 188; am 1/28/2009, Register 189; am 3/8/2013, Register 205
Authority: AS 42.45.250, AS 42.45.260, AS 42.45.270

3 AAC 161.030. Eligibility

To be eligible for a loan,
    (1) an applicant must intend to use the loan for purchase of fuel to generate power or supply the public with fuel for use, including the necessary costs of transporting the fuel;
    (2) an applicant must agree to repay the loan in one year or less, according to a repayment plan determined by the division;
    (3) the amount of the loan, added to the amounts of all other bulk fuel revolving loan principal balances to the same borrower
        (A) may not exceed $750,000, unless the loan is from the bulk fuel loan account and the borrower
            (i) is a cooperative corporation organized under AS 10.15 or an electric cooperative organized under AS 10.25; and
            (ii) uses the loan to purchase bulk fuel on behalf of more than one community; and
        (B) may not exceed the lesser of
            (i) $750,000 multiplied by the number of eligible communities on whose behalf the bulk fuel is to be purchased; or
            (ii) $1,800,000.
History: Eff. 9/2/2008, Register 188; am 1/28/2009, Register 189; am 3/8/2013, Register 205
Authority: AS 42.45.250, AS 42.45.260, AS 42.45.270

3 AAC 161.040. Financial and credit record

The division may consider the following in evaluating an applicant's financial and credit record:
    (1) existing and prior debts;
    (2) credit reports obtained from creditors and private credit reporting services;
    (3) prior loan history with other known fuel lenders or the division;
    (4) timeliness in making payments on loans and other debts;
    (5) the existence of tax liens;
    (6) unpaid judgments and prior foreclosures;
    (7) the applicant's financial and credit reputation.
History: Eff. 9/2/2008, Register 188; am 1/28/2009, Register 189; am 3/8/2013, Register 205
Ref.: 3 AAC 161.020
Authority: AS 42.45.250, AS 42.45.260, AS 42.45.270

3 AAC 161.045. Interest

(a) In evaluating a potential interest rate reduction under AS 42.45.280 (b), the division will reduce the interest rate by
    (1) one percent for a borrower whom the division considers not to have been delinquent in repayment on at least one previous bulk fuel loan made by the division;
    (2) two percent for a borrower whom the division considers not to have been delinquent in repayment on two or more bulk fuel loans made by the division.
(b) If an application for an interest rate reduction is denied, the division will provide the applicant with a written statement of the reasons for the denial.
History: Eff. 3/8/2013, Register 205
Authority: AS 42.45.250, AS 42.45.280

3 AAC 161.050. Lending practices

(a) The division will fix a loan period based on the needs of the borrower. However, the borrower shall repay a loan not later than one year after the date of the disbursement.
(b) Proceeds of a bulk fuel loan may not be used to
    (1) purchase fuel other than bulk fuels; or
    (2) make a profit, unless the profit is used to purchase additional community fuel supplies.
History: Eff. 9/2/2008, Register 188; am 1/28/2009, Register 189; am 3/8/2013, Register 205; am 10/27/2018, Register 228
Authority: AS 42.45.250, AS 42.45.260, AS 42.45.270

3 AAC 161.060. Disbursement of loan money

(a) Loan money will be disbursed after the borrower has complied with the provisions of the loan documents and the requirements of this chapter.
(b) Loan money will be disbursed upon receipt by the division of delivery bills and fuel invoices.
History: Eff. 9/2/2008, Register 188; am 1/28/2009, Register 189; am 3/8/2013, Register 205
Authority: AS 42.45.250, AS 42.45.260, AS 42.45.270

3 AAC 161.070. Modifications

A request for a modification to a loan made under AS 42.45.250 - 42.45.299 will be processed in the same manner as a loan application. The division may require the applicant to provide additional information in support of the request.

3 AAC 161.080. Reconsideration of a loan request

(a) If the division denies, inactivates, or significantly modifies a loan request, an applicant may file, not later than 30 days after receipt of notice of the division's decision, a written request for reconsideration of that decision.
(b) The division will consider a request for reconsideration if the applicant submits information to show that
    (1) a substantial change has occurred in the circumstances leading to the division's decision;
    (2) additional relevant information can be provided to the division that was not initially available; or
    (3) the division made administrative errors.
History: Eff. 9/2/2008, Register 188; am 1/28/2009, Register 189; am 3/8/2013, Register 205
Authority: AS 42.45.250, AS 42.45.260, AS 42.45.270

3 AAC 161.090. Confidentiality of loan information (Repealed)

Repealed.
History: Eff. 9/2/2008, Register 188; am 1/28/2009, Register 189; am 3/8/2013, Register 205

3 AAC 161.100. Definitions (Repealed)

Repealed.
History: Eff. 3/8/2013, Register 205

3 AAC 161.110. Default

The division may consider a borrower to be in default on a loan made under AS 42.45.250 - 42.45.299 if the borrower
    (1) violates a provision of AS 42.45.250 - 42.45.299, this chapter, or the loan documents; or
    (2) fails to make a necessary payment during the 30-day period after the date that the payment is due; or
    (3) fails to maintain any insurance that the division requires as a condition for the loan.
History: Eff. 3/8/2013, Register 205
Authority: AS 42.45.250, AS 42.45.260, AS 42.45.270

3 AAC 161.900. Definitions

In this chapter, unless the context requires otherwise,
     (1) "bulk fuel" means bulk petroleum fuels or biomass fuel;
     (2) "bulk fuel loan" means a loan made under AS 42.45.260 from the bulk fuel loan account;
     (3) "bulk fuel bridge loan" means a loan made under AS 42.45.270 from the bulk fuel bridge loan account;
     (4) "division" means the division in the Department of Commerce, Community, and Economic Development that is responsible for community and regional affairs;
     (5) "Native village council" means
         (A) a council organized under 25 U.S.C. 476 (sec. 16 of the Indian Reorganization Act);
         (B) the council for the Annette Island Reserve established by 25 U.S.C. 495 for the Metlakatla Indian Community; or
         (C) a traditional village council recognized by the United States as eligible for federal aid to Indians;
     (6) "biomass fuel" means a product that is
         (A) derived from wood, such as wood pellets, wood chips, or cordwood, or from other organic matter; and
         (B) proven and feasible for use as fuel to generate heat or electricity.
History: Eff. 1/28/2009, Register 189; am 3/8/2013, Register 205; am 10/27/2018, Register 228
Authority: AS 42.45.250, AS 42.45.260, AS 42.45.270

Eligibility

Loans may be made to a municipality or unincorporated village with a population under 2,000, or a private individual or company retailing fuel or electricity in such a community. Determination of eligibility will be evaluated on an individual basis by the State of Alaska Department of Commerce, Community, and Economic Development (DCCED), Division of Community and Regional Affairs (DCRA). The Division shall make loans from the Bulk Fuel Revolving Loan Fund as either bulk fuel loans or bulk fuel bridge loans as provided in AS 42.45.250-42.45.299.

Interest Rates

Interest shall be charged on a bulk fuel loan or bulk fuel bridge loan at a base rate of four percent except as provided by AS 42.45.280(b) and (c);

  1. First time borrowers of a bulk fuel bridge loan shall be charged zero percent; second and subsequent bridge loans shall be charged at the base rate of four percent.
  2. For recipients of bulk fuel loans, interest rates will be determined by the Division based on the borrowers repayment history and other criteria. The interest may be reduced by one percent for borrowers with at least one previous bulk fuel loan or two percent for a borrower with two or more previous bulk fuel loans made by the Division. There are no other fees to apply or receive a fuel loan from the program.
Loan Terms

Loans are payable in nine equal monthly payments and must be repaid during that term unless an alternate payment schedule has been approved by the DCRA. Shorter terms may be required in special circumstances as determined by the DCRA. All loans must be paid within one year from date of disbursement. The amount of the loan, added to the amounts of all other bulk fuel revolving loan principle balances to the same borrower may not exceed $750,000. A cooperative organization representing more than one community may qualify for a maximum loan amount not to exceed $1.8 million.

Loan Payments

Loan payments can be made to:

Division of Investments
Department of Commerce, Community, and Economic Development
PO Box 110802
Juneau, AK 99811-0802
Phone: (907) 465-2510 or (800) 478-LOAN (5626) in Alaska
Fax: (907) 465-2103

Security

Borrowers agree to secure bulk fuel revolving loans with fuel revenues and other legally available monies. Applicants are required to secure loans by submitting the borrower resolution included in the application packet. The resolution must be adopted by the governing body of the borrowing entity. The bulk fuel loan program may require the assignment of payments from the State of Alaska for funds provided by Community Revenue Sharing, Payment in Lieu of Taxes (PILT), Power Cost Equalization (PCE), or other programs to the Bulk Fuel Revolving Loan Program.

For more information please contact

Jed Cox
Division of Community and Regional Affairs
Department of Commerce, Community, and Economic Development
Phone: 907-269-4614
Email: jed.cox@alaska.gov

Melody Nibeck
Division of Community and Regional Affairs
Department of Commerce, Community, and Economic Development
Phone: 907-269-5939
Email: melody.nibeck@alaska.gov

Revised 10/20/2022