Alaska House committee kills state-owned corporation’s plan to borrow up to $300 million

AIDEA News

Alaska House committee kills state-owned corporation’s plan to borrow up to $300 million
Alaska LegislatureMiningNeal Foster
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The Alaska Industrial Development and Export Authority did not identify specific projects or a timeline for spending.

Members of the Alaska House Finance Committee, at left, listen to budget aide Remond Henderson during a break in amendment discussions on Monday, March 27, 2023.

AIDEA’s request for up to $300 million in bonding authority was subsequently amended into the bill by the House Transportation Committee at the urging of Rep. Tom McKay, R-Anchorage, but the finance committee was critical of the idea.

Contacted after the vote, AIDEA officials said they “supported the amendment as part of a strategy to be ready to leverage Department of Energy funds and loan guarantees for critical mineral projects under Title 17,” a federal program through which Congress“AIDEA qualified as a State Energy Financing Institution or SEFI to gain easier access to these federal funds and a more advantageous matching rate which could run as high as 95% Fed to 5% SEFI,” AIDEA said in a statement provided by a...

The investment bank has not presented a plan to lawmakers that indicates which of the state’s many mining and mining-related projects might receive state funding.

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