Committee approves $800,000 grant program for nonprofit utilities that lost fuel in typhoon

Alaska House Finance Committee · April 1, 2026

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Summary

Lawmakers adopted an amendment to create a grant program aimed at nonprofit utilities that bought fuel lost in a storm; sponsors said federal and other sources were exhausted and communities face accruing interest on loans tied to lost fuel.

The House Finance Committee approved an amendment establishing a grant program to help nonprofit bulk‑fuel utilities replace or address outstanding debt from fuel lost in a recent typhoon.

Representative Jimmy described communities whose fuel supplies were destroyed and said insurance and FEMA individual assistance do not cover consumable fuel losses. Rachel Gunn, staff to Representative Jimmy, told the committee the program would be tailored to entities that are carrying loan debt for fuel that is 'gone' and said department and federal partners were contacted but no ready program existed.

Committee members asked whether legal and statutory authority exists to create such a grant; Gunn said preliminary talks suggested the program could be implemented, though a formal memo had not been requested. Director Alexi Painter advised the committee that for consistency they should match any disaster relief fund capitalization reductions to the appropriation on paper.

After a set of conceptual adjustments (including reducing a larger $5 million reduction to $800,000 in one iteration), the committee adopted the amended language and marked Amendment 38 as adopted as amended.

The approved language directs the Department of Commerce and other implementing offices to stand up a small, targeted grant program and to coordinate with legislative finance on technical drafting and any required reporting.

Next steps include drafting conforming language and guidance for grant administration and any required statutory clarifications prior to disbursement.