Article 1. Alternative Energy Revolving Loan Fund.
Chapter 88. Energy Loan and Grant Programs.
Sec. 45.88.010. Fund established.
(a) There is established in the Department of Commerce, Community, and Economic Development the alternative energy conservation revolving loan fund to carry out the purposes of
AS 45.88.010 — 45.88.090. Loans made under
AS 45.88.010 — 45.88.090 are to be used
(1) to develop means of energy production utilizing one or more alternative energy systems; and
(2) to purchase, construct, and install energy conservation improvements in commercial buildings.
(b) Money in the fund may be used by the legislature to make appropriations for costs of administering
AS 45.88.010 — 45.88.090.
(c) [Repealed, § 38 ch 83 SLA 2010.]
(d) Notwithstanding any other provision in
AS 45.88.010 — 45.88.090, a multifuel heating system that uses the combination of wood or fossil fuel for fuel does qualify under this loan fund.
(e) The alternative energy conservation revolving loan fund consists of
(1) money appropriated to the fund by the legislature;
(2) gifts, bequests, or contributions from other sources;
(3) principal and interest payments or other income earned on loans or investments in the fund; and
(4) money chargeable to principal or interest that is collected through liquidation by foreclosure or other processes on loans made under
AS 45.88.010 — 45.88.090.
Sec. 45.88.015. Special account established.
(a) There is established, as a special account within the revolving loan fund established under
AS 45.88.010, the foreclosure expense account. This account is established as a reserve from fund equity.
(b) The commissioner of commerce, community, and economic development may expend money credited to the foreclosure expense account when necessary to protect the state's security interest in collateral on loans made under
AS 45.88.020 or to defray expenses incurred during foreclosure proceedings after a default by an obligor.
Sec. 45.88.020. Powers and duties of the department in administering the fund.
(a) The department may
(1) make loans for the purchase, construction, and installation, in commercial buildings that are located in the state, of
(A) alternative energy systems; and
(B) energy conservation improvements;
(2) adopt regulations necessary to carry out the provisions of
AS 45.88.010 — 45.88.090, including regulations to establish reasonable fees for services provided and charges for collecting the fees;
(3) collect the fees and collection charges established under this subsection.
(b) The department shall develop eligibility standards for loans made under
AS 45.88.010 — 45.88.090 and adopt guidelines for the determination of loan terms.
(c) The department may not make a loan under
AS 45.88.010 — 45.88.090 to a person who has a past due child support obligation established by court order or by the child support services agency under
AS 25.27.160 — 25.27.220 at the time of application.
Sec. 45.88.025. Eligibility.
To be eligible for a loan under
AS 45.88.010 — 45.88.090, an applicant must
(1) physically reside in the state and maintain a domicile in the state during 12 consecutive months before the date of application for a loan and may not have
(A) declared or established residency in another state; or
(B) received residency or a benefit based on residency from another state;
(2) be at least 51 percent owned by individuals described in (1) of this section if the applicant is a corporation, joint venture, or partnership; or
(3) be a nonprofit organization under
AS 10.20.
Sec. 45.88.030. Loan terms.
(a) A loan made under
AS 45.88.010 — 45.88.090 may not exceed $50,000. If the requested loan amount exceeds $30,000, the applicant must deliver to the department a document from a financial institution stating that
(1) the applicant has been denied a loan for the same purpose; or
(2) the loan from the financial institution is contingent on the applicant also receiving a loan from the fund.
(b) The duration for repayment of the loan may not exceed 20 years.
(c) [Repealed, § 38 ch 83 SLA 2010.]
(d) [Repealed, § 38 ch 83 SLA 2010.]
(e) The rate of interest for a loan under
AS 45.88.010 — 45.88.090 is the prime rate, as defined by
AS 44.88.599, plus one percentage point, but may not be less than five percent a year.
(f) A loan under
AS 45.88.010 — 45.88.090 must be secured by a mortgage or other security instrument in the real property to be improved and a lien on the improvements financed with the loan.
Sec. 45.88.040. Sale or transfer of mortgages and notes. [Repealed, § 38 ch 83 SLA 2010.]
Sec. 45.88.050. Disposal of property acquired by default or foreclosure.
The Department of Commerce, Community, and Economic Development shall dispose of property acquired through default or foreclosure of a loan made under
AS 45.88.010 — 45.88.090. Disposal shall be made in a manner that serves the best interests of the state, and may include the amortization of payments over a period of years.
Sec. 45.88.090. Definitions.
(a) In
AS 45.88.010 — 45.88.090,
(1) “alternative energy system”
(A) means a source of thermal, mechanical or electrical energy that is not dependent on oil or gas or a nuclear fuel for the supply of energy for space heating and cooling, refrigeration and cold storage, electrical power, mechanical power, or the heating of water;
(B) includes
(i) an alternative energy property as defined by 26 U.S.C. 48(a)(3)(A) (Sec. 301, P.L. 95-618, Internal Revenue Code);
(ii) a method of architectural design and construction that provides for the collection, storage, and use of direct radiation from the sun;
(iii) a woodstove that complies with the provisions of 40 C.F.R. 60.530;
(iv) a steam, hot water, or ducted hot air central heating system that uses wood or coal for fuel; and
(v) a high efficiency wood pellet or grain stove;
(C) does not include
(i) a stove that uses only coal or oil for fuel; or
(ii) a fireplace or fireplace insert;
(2) “commercial building”
(A) means a building that is intended to be used for commercial purposes;
(B) does not include
(i) a residential structure or mobile home that contains one to four family housing units; or
(ii) individual units of condominiums or cooperatives;
(3) “energy conservation improvement” means
(A) structural insulation;
(B) thermal windows and doors;
(C) a furnace replacement burner designed to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency;
(D) a device for modifying flue openings designed to increase the efficiency of operation of the heating system;
(E) an electrical or mechanical furnace ignition system that replaces a gas pilot light;
(F) an automatic energy-saving setback thermostat;
(G) a meter that displays the cost of energy usage;
(H) caulking and weather-stripping of doors and windows;
(I) insulating shades and shutters;
(J) air and water recuperators.
(b) [Renumbered as
AS 45.88.010(d).]
Article 2. Residential Energy Conservation Fund.
Sec. 45.88.100. Fund established.
(a) There is established in the Department of Commerce, Community, and Economic Development the residential energy conservation fund to carry out the purposes of
AS 45.88.100 — 45.88.190. Loans and grants made under
AS 45.88.100 — 45.88.190 may be used to purchase, construct, and install an energy conservation improvement in residential buildings.
(b) Money in the fund may be used by the legislature to make appropriations for costs of administering
AS 45.88.100 — 45.88.190.
(c) On June 30 of each fiscal year the unexpended and unobligated cash balance of the fund that is attributable to loans owned by the fund lapses into the general fund.
Sec. 45.88.110. Special account established.
(a) There is established as a special account within the residential energy conservation fund the foreclosure expense account. This account is established as a reserve from fund equity.
(b) The commissioner may expend money credited to the foreclosure expense account when necessary to protect the state's security interest in collateral on loans made under
AS 45.88.120 or to defray expenses incurred during foreclosure proceedings after a default by an obligor.
Sec. 45.88.120. Loans.
(a) The department may make loans for the purchase, construction, and installation of an energy conservation improvement in a residential building.
(b) A loan for the purchase, construction, and installation of an energy conservation improvement under
AS 45.88.100 — 45.88.190 may not exceed the lesser of
(1) an amount, as determined by an energy audit, that is equal to the estimated total energy cost saving attributable to the energy conservation improvement at a date that is 10 years after purchase, construction, or installation of the energy conservation improvement;
(2) $5,000.
(c) A loan for the purchase, construction, and installation of an energy conservation improvement under
AS 45.88.100 — 45.88.190 may be made for only an energy conservation improvement that has been recommended, in any energy audit, as a measure that is likely to result in energy conservation or energy cost savings.
(d) A loan made under
AS 45.88.100 — 45.88.190 may be used to finance
(1) all of the cost of purchasing, constructing, and installing an energy conservation improvement; and
(2) the costs of labor for the installation of an energy conservation improvement.
(e) Interest shall be charged on a loan made under
AS 45.88.100 — 45.88.190. If a loan is made before January 1, 1984, interest shall be five percent. If the loan is made after December 31, 1983, interest shall equal the percentage of the average weekly yield of municipal bonds for the 12 months preceding the loan, as determined by the commissioner from the municipal bond yield rates reported in the 30-year revenue index of the Weekly Bond Buyer.
(f) The duration of repayment of a loan made under
AS 45.88.100 — 45.88.190 may not exceed 10 years.
(g) The department may require security for a loan under this section. When a loan is made under this section, the department may require the loan applicant to present copies of invoices or billings for expenses which the proceeds of the loan will be used to pay.
(h) All principal and interest payments, and money chargeable to principal or interest that is collected through liquidation by foreclosure or other process on a loan made under
AS 45.88.100 — 45.88.190, shall be paid into the residential energy conservation fund.
(i) A person who receives a loan under this section and knowingly uses the loan proceeds for purposes other than those set out in (d) of this section is guilty of the crime of misapplication of property under
AS 11.46.620.
(j) If, in the opinion of the department, it is not necessary to conduct an energy audit to determine that a loan application meets the requirements of this section, the department may waive the audit requirement for the applicant.
(k) The department may not make a loan under
AS 45.88.100 — 45.88.190 to a person who has a past due child support obligation established by court order or by the child support services agency under
AS 25.27.160 — 25.27.220 at the time of application.
Sec. 45.88.130. Sale or transfer of mortgages and notes.
The commissioner may sell or transfer at par value or at a premium or discount to any bank or other private purchaser for cash or other consideration the mortgages and notes held by the department as security for loans made under
AS 45.88.100 — 45.88.190.
Sec. 45.88.140. Disposal of property acquired by default or foreclosure.
The department shall dispose of property acquired through default or foreclosure of a loan made under
AS 45.88.100 — 45.88.190. Disposal shall be made in a manner that serves the best interests of the state, and may include the amortization of payments over a period of years.
Sec. 45.88.150. Regulations.
(a) The department shall adopt regulations necessary to carry out the provisions of
AS 45.88.100 — 45.88.190, including regulations to establish reasonable fees for services provided and charges for collecting the fees.
(b) The department may collect the fees and collection charges established under (a) of this section.
Sec. 45.88.190. Definitions.
In
AS 45.88.010 — 45.88.190,
(1) “commissioner” means the commissioner of commerce, community, and economic development;
(2) “department” means the Department of Commerce, Community, and Economic Development;
(3) “energy audit” means
(A) [Repealed, § 10 ch 79 SLA 1983.]
(B) an energy audit performed under § 215(b)(1)(A) of the federal residential energy conservation program of the National Energy Conservation Policy Act (42 U.S.C. 8216(b)(1)(A)); or
(C) an energy audit completed before July 1, 1980, that has been approved by the commissioner as an audit that fairly demonstrates the energy consumption characteristics of a residence and that indicates likely energy conservation and cost savings measures;
(4) “energy conservation improvement” means
(A) structural insulation;
(B) thermal windows and doors;
(C) a furnace replacement burner designed to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency;
(D) a device for modifying flue openings designed to increase the efficiency of operation of the heating system;
(E) an electrical or mechanical furnace ignition system which replaces a gas pilot light;
(F) an automatic energy-saving setback thermostat;
(G) a meter which displays the cost of energy usage;
(H) caulking and weatherstripping of doors and windows;
(I) insulating shades and shutters;
(J) air and water recuperators;
(K) any other energy-saving device approved by the commissioner.
Sec. 45.88.500. [Subsection (a) renumbered as AS 45.88.090; subsection (b) renumbered as AS 45.88.010(d).]