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Monies now available to Small, Alaska Municipalities for Purchase of Fuel


May 06, 2005

As promised by Alaska Governor Frank H. Murkowski in October 2004 during the Alaska Federation of Natives Convention, funding for the Small Municipality Energy Assistance Program is now available. Governor Murkowski, along with the Bush Caucus and the rest of the Alaska Legislature, approved $6.5 million in an emergency supplemental appropriation for the grant program. The grants are to address high fuel costs that have created a significant financial hardship on small municipalities and their residents.

The money is available to pay for fuel purchases made by eligible municipalities during the period of July 1, 2004 through June 30, 2005. Eligible municipalities have until June 30, 2006 to submit the necessary paperwork to document the fuel purchase made in the State's Fiscal Year 2005.

Commerce, Community, and Economic Development Commissioner Edgar Blatchford says it is important that communities are aware of the June 30, 2005 deadline. "The department has been working to ensure that eligible communities know about the deadline for fuel purchases under the grant program," said Blatchford. "According to the Alaska Municipal League, gasoline prices in Rural Alaska run around $5.15 per gallon. This assistance is critical for economic development and we don't want to see any eligible community missed."

To be eligible to receive an energy assistance grant, a municipality must be a home rule, first or second class City or Borough and have a 2003 resident population of less than 2,500 persons. The program will provide funds for reimbursement of fuel costs up to $22,396 for communities with a population of less than 100 people, $44,791 for communities of 100-600 residents, and $67,187 for communities with more than 600 but fewer than 2,500 residents.

The energy assistance program is expected to assist about 135 small Alaska Municipalities that need help in offsetting the high cost of energy.


On the Web:

Information on grant eligibility and payment reimbursements

Source of News:

Department of Commerce, Community and Economic Development
Web Site


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