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CSHB 312(CRA): "An Act creating a low-interest loan program for homeowners who convert their homes to natural gas-fired, propane-fired, biomass, or electric heating or district heat; and creating the home heating conversion loan fund."

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