SB 154: "An Act creating a low-interest loan program for homeowners who convert their homes to natural gas-fired heating; and creating the natural gas home heating conversion loan fund."
00 SENATE BILL NO. 154 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 03 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. 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 07 home. 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 13 home 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).