HB 196 Summary

• Establishes two separate accounts within the bulk fuel revolving loan fund: the bulk fuel loan account and the bulk fuel bridge loan account, transferring administration from the Authority to the Division of Community and Regional Affairs in the Department of Commerce, Community, and Economic Development.

• Allows the Power Project Authority to make loans to the bulk fuel revolving loan fund up to $2,000,000 or 10 percent of the Power Project Fund's cash balance, provided the Power Project Fund maintains a minimum $5,000,000 cash balance.

• Creates bulk fuel loan account with maximum loan limits of $750,000 per borrower (or up to $1,800,000 for cooperatives serving multiple communities), requiring repayment within one year and consideration of applicant creditworthiness.

• Establishes bulk fuel bridge loan account for applicants denied bulk fuel loans, with $750,000 maximum per borrower, one-year repayment terms, and zero percent interest for first-time bridge loan recipients.

• Requires the Division to implement a technical assistance program to help borrowers improve creditworthiness and provides for interest rate reductions (up to 2 percent) for borrowers with previous successful loan repayment history.