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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).