CSHB 312(FIN): "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 providing for an effective date."
00 CS FOR HOUSE BILL NO. 312(FIN) 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 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 18.56 is amended by adding a new section 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 inspection performed by an energy rater approved 14 under regulations adopted by the corporation or by a registered mechanical contractor.
01 The cost of the inspection shall be borne by the homeowner. The energy rater or 02 contractor shall, under regulations adopted by the corporation, 03 (1) perform an on-site inspection of the home; 04 (2) determine if converting to a natural gas-fired, propane-fired, 05 biomass, or electric heating device or district heat as the primary heating method for 06 the home would increase the energy efficiency of the home; and 07 (3) provide the homeowner with an estimate of the cost savings and 08 change in the energy efficiency of the home as a result of converting to a natural gas- 09 fired, propane-fired, biomass, or electric heating device or district heat as the primary 10 heating method for the home. 11 (c) For purposes of this section, a home is eligible if it is a substantially 12 complete owner-occupied, single-family dwelling or duplex used as a permanent 13 residence by the loan applicant, as determined by the corporation, and is located in the 14 state. Not more than 25 percent of the gross floor area of the building for which a loan 15 is received may be devoted to commercial use. An eligible home does not include a 16 home 17 (1) that is to be destroyed, abandoned, or converted to another purpose 18 within 12 months after an inspection performed under (b) of this section; 19 (2) to which the energy source fueling or powering the new heating 20 method is not available; or 21 (3) for which a loan was previously received under this program. 22 (d) 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 the new natural gas-fired, propane-fired, 28 biomass, or electric heating device or district heat equipment that will be used 29 as the primary heating method for the home; or 30 (B) $7,500. 31 (e) Repayments of principal on a loan made under this section shall be used by
01 the corporation for the purposes of providing loans under this section or paying the 02 administrative costs related to providing loans under this section. Interest paid on 03 loans made under this section shall be deposited in the general fund and may be 04 appropriated for the loan program under this section or for any other public purpose. 05 (f) In making loans under this section, the corporation is exempt from the 06 requirements of AS 46.11.050(b). 07 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).