00 HOUSE BILL NO. 312
01 "An Act creating a low-interest loan program for homeowners who convert their homes
02 to natural gas-fired heating; and creating the natural gas home heating conversion loan
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
05 * Section 1. AS 18.56 is amended by adding new sections to read:
06 Article 6A. Natural Gas Home Heating Conversion Loan Program.
07 Sec. 18.56.870. Natural gas home heating conversion loan program. (a)
08 The corporation shall establish a program under which the owner of a home that is
09 eligible under (c) of this section may apply for a loan to convert a home that uses an
10 oil, coal, wood, or other non-natural gas-fired heating device so that the home
11 becomes heated primarily by a natural gas-fired heating device.
12 (b) To qualify for a loan under the program established in (a) of this section,
13 the homeowner shall obtain an energy audit performed by an energy rater approved
14 under regulations adopted by the corporation. The cost of the audit shall be borne by
01 the homeowner. The energy rater shall, under regulations adopted by the corporation,
02 (1) perform an on-site inspection of the home;
03 (2) estimate the cost savings that would result from a conversion to a
04 natural gas-fired heating device as the primary heating method for the home; and
05 (3) estimate the cost of converting an existing heating method to a
06 natural gas-fired heating device that will serve as the primary heating method for the
08 (c) For purposes of this section, a home is eligible if it is a substantially
09 complete owner-occupied, single-family dwelling or duplex used as a permanent
10 residence by the loan applicant, as determined by the corporation, and is located in the
11 state. Not more than 25 percent of the gross floor area of the building for which a loan
12 is received may be devoted to commercial use. An eligible home does not include a
14 (1) that is to be destroyed, abandoned, or converted to another purpose
15 within 12 months after an energy audit performed under (b) of this section;
16 (2) to which natural gas is not available; or
17 (3) for which a loan was previously received under this program.
18 Sec. 18.56.873. Natural gas home heating conversion loan fund. (a) The
19 natural gas home heating conversion loan fund is established in the corporation. The
20 loan fund consists of money appropriated to the corporation for natural gas home
21 heating conversion loans under AS 18.56.870.
22 (b) Loans made under this program
23 (1) shall have an interest rate of one percent;
24 (2) shall be repaid over a term of 10 years;
25 (3) may not be subject to income limitations;
26 (4) may not exceed, for a home, the lesser of
27 (A) the cost of converting to a natural gas-fired heating device
28 as the primary heating method, as estimated by an energy rater under
29 AS 18.56.870(b); or
30 (B) $7,500.
31 (c) The natural gas home heating conversion loan fund may be used to
01 (1) make loans to owners of eligible homes for the purpose of
02 financing conversion to a natural gas-fired heating device to be used as the primary
03 heating method in an eligible home;
04 (2) pay costs of administering the loan fund; and
05 (3) pay the costs of administering and enforcing the terms of loans
06 made by the corporation from the loan fund.
07 Sec. 18.56.875. Energy audit exemption. In making loans under
08 AS 18.56.870 and 18.56.873, the corporation is exempt from the requirements of
09 AS 46.11.050(b).