HB 196: "An Act relating to the alternative energy revolving loan fund; and providing for an effective date."

00 HOUSE BILL NO. 196 01 "An Act relating to the alternative energy revolving loan fund; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 45.88.010 is amended by adding a new subsection to read: 05 (e) The fund consists of 06 (1) money appropriated to the fund by the legislature; 07 (2) gifts, bequests, or contributions from other sources; and 08 (3) principal and interest payments or other income earned on loans or 09 investments in the fund and appropriated to the fund. 10 * Sec. 2. AS 45.88.030 is amended by adding new subsections to read: 11 (f) A loan must be secured by a mortgage or other security instrument in the 12 real property to be improved, and a first lien on the improvements financed under 13 AS 45.88.010. 14 (g) The interest rate

01 (1) may not exceed the maximum rate of eight percent a year and may 02 not be less than five percent a year; 03 (2) shall be established by the department based on the bank prime rate 04 listed in the Wall Street Journal during the previous quarter plus one percentage point, 05 set to the nearest one-half point for loans made; and 06 (3) set for a quarter remains in effect until the department changes the 07 rate. 08 * Sec. 3. AS 45.88.090(a) is amended to read: 09 (a) In AS 45.88.010 - 45.88.090, "alternative energy system" 10 (1) means a source of thermal, mechanical, or electrical energy that 11 [WHICH] is not dependent on oil or gas or a nuclear fuel for the supply of energy for 12 space heating and cooling, refrigeration and cold storage, electrical power, mechanical 13 power, or the heating of water; 14 (2) includes 15 (A) an alternative energy property as defined by 26 U.S.C. 16 48(a)(3)(A) (Sec. 301, P.L. 95-618, Internal Revenue Code); 17 (B) a method of architectural design and construction which 18 provides for the collection, storage, and use of direct radiation from the sun; 19 (C) a woodstove with a catalytic converter or a catalytic 20 converter for a wood stove; [AND] 21 (D) a steam, hot water, or ducted hot air central heating system 22 that uses wood or coal for fuel; and 23 (E) a high efficiency wood pellet stove; 24 (3) does not include 25 (A) a stove that uses only [WOOD,] coal, [OR] oil, or 26 unprocessed wood for fuel; or 27 (B) a fireplace or fireplace insert. 28 * Sec. 4. AS 45.88.010(c), 45.88.030(e), and 45.88.040(a) are repealed. 29 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).