00                            SENATE BILL NO. 212                                                                         
01 "An Act authorizing municipalities to designate energy improvements areas and to                                        
02 establish energy improvements programs and relating to those programs."                                                 
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 29.35 is amended by adding a new section to read:                                                  
05            Sec. 29.35.052. Energy improvements program. (a) A municipality may by                                     
06       ordinance designate an energy improvements area and establish an energy                                           
07       improvements program to make loans to owners of real property within the area for                                 
08       cost-effective energy improvements to existing residential, commercial, or industrial                             
09       buildings on the property. At least 30 days before adopting an ordinance under this                               
10       section, the municipality shall provide an explanation of the proposed program to                                 
11       utilities that distribute electricity or natural gas in the area in which the proposed                            
12       program will operate. The ordinance may establish                                                                 
13                 (1)  a loan application process that includes an energy audit of the                                    
14       building proposed to be improved and other requirements to ensure that the loan will                              

01       be used for energy improvements that are cost-effective and otherwise consistent with                             
02       the purpose of the program;                                                                                       
03                 (2)  loan terms, including interest rates;                                                              
04                 (3)  application and loan fees sufficient to pay the administrative and                                 
05       financing costs of the program, included costs associated with loan delinquencies; and                            
06                 (4)  requirements and conditions to ensure timely repayment of loans                                    
07       and fees imposed under the program.                                                                               
08            (b)  A municipality that establishes an energy improvements program may                                      
09       secure a loan under the program with a lien on the benefited property and enforce the                             
10       lien as provided for special assessments. In addition, the municipality may require any                           
11       other security for a loan that the municipality determines to be reasonable.                                      
12            (c)  A municipality may issue special assessment bonds under AS 29.46.140 to                                 
13       finance its energy improvements program. The municipality may apply for grants or                                 
14       other funding from the state or federal government for the program and enter into                                 
15       agreements regarding the grants or funding.                                                                       
16            (d)  Subject to appropriations for the purpose, the department may lend money                                
17       to a municipality that establishes an energy improvements program under this section                              
18       for costs of the program. The department shall, by regulation, establish the types and                            
19       extent of energy improvements that may be financed in whole or part with money                                    
20       provided by the department under this subsection. In determining the types and extent                             
21       of energy improvements that may be financed, the department shall consider the                                    
22       amount of energy that can be conserved and the cost-effectiveness of particular types                             
23       of energy improvements.                                                                                           
24            (e)  In this section, "energy improvements" means energy efficiency or                                       
25       renewable energy improvements that are authorized under an energy improvements                                    
26       program adopted by a municipality under this section.