This legislative report provides an overview and results of Alaska Housing Finance Corporation's (AHFC) energy programs from 2008 to 2011. It summarizes that $360 million was appropriated, with $200 million going towards weatherization and $160 million for rebates. As of January 2011, over 17,320 homes have been made more energy efficient, saving on average 30% in energy costs. It also estimates that the programs have created 2,500 jobs so far. Both the weatherization and rebate programs have been fully funded and obligated, with weatherization expected to complete 4,000 homes annually going forward.

1. LEGISLATIVE REPORTFebruary 3, 2011 AHFC Energy Programs Rebate and Weatherization Update

2. Overview $360 million total appropriation in 2008: $200 million for weatherization Income-based, no-cost to tenant or homeowner program $160 million for rebates For those not qualifying for weatherization program Rebate provided for eligible improvements Ratings required Training & job component

3. Home Energy Rebate & Weatherization Results April 2008 – January 26, 2011 Ratings 37,264 Rebates 11,376 5+ Homes 941 Weatherized 5,003 17,320 homes now more energy efficient since 2008

4. Home Energy Rebate & Weatherization Results AFTER April 2008 – January 26, 2011 BEFORE 1996 - March 2008 Ratings 25,557 Rebates n/a 5+ Homes 2,345 Weatherized 10,704 37,264 11,376 941 5,003 17,320 homes now more energy efficient since 2008

5. Energy & CO2 Results Average energy use reduced 33.15 percent Equivalent energy savings: 168,766 barrels of crude oil 7 million gallons of fuel oil 717 gallons of fuel oil per home 1.24.2011

6. Average savings per home by fuel type 9,840 sampled homes Projected average energy cost reduced 30 percent 1.24.2011

8. 1,000 from rebate

9. ISER confirmation in progressJob Creation & Retention

10. $200 Million Obligated: 2008-2009 $74 million 2010 $63 million 2011 projection $63 million

11. Homes Weatherized 1978-2008: 600 annually 2009: 1,864 2010: 3,139 (current) 2011: 4,000 (projected based on funding) Statewide weatherization providers and housing authorities have now achieved a sustainable capacity.

12. Communities Served 2008: 56 2009: 90 2010: 100+ 2011: 100+

13. $160 Million Funds: Fully obligated Expended: $88.6 million 1.26.2011

14. As-Is Ratings Paid : 24,956 Existing Homes 11,376 rebates paid $6,287 average 63.3 percent participation rate 18 month deadline New 5 Star Plus Homes 941 rebates paid 1.25.2011

15. Wait List December 2008 = 9,492 (full funding) December 2009 = 463 (all funds obligated) December 2010 = 3,548 (“recycled funds”) 1.21.2011

16. Program Snapshot Average Costs of 11,800 Homeowners $10,869 spent -$6,287 rebate = $4,582 homeowner investment $1,535 annual energy savings 3 year payback 1.21.2011

17. Second Mortgage for Energy Conservation Second mortgage up to $30,000 -15 Year Loan at the Taxable Rate -Loans Paid Off: 93 -Active Loans: 33 1.26.2011

18. Summary 17,320 homes completed Reduced costs 30 percent and energy savings 32 percent Created 2,500 jobs at a minimum, with projections to 4000 Achieved annual capacity of 4,000 Weatherization program homes All funds obligated

19. Alaska Energy Efficiency Revolving Loan Fund (AEERLF) “Alaska Sustainable Energy Act” - $250 million revolving loan fund Energy efficiency improvements for Regional Educational Attendance Areas (REAAs) University of Alaska State facilities Municipal facilities Guaranteed savings from energy efficiency improvements are used to pay off the loan Requires Retrofit Energy Assessment for Loan (REAL)

20. Retrofit Energy Assessment for Loan (REAL) Prior to applying for the loan… Initial Project Evaluation Energy benchmark Energy Audits Audits by Certified Energy Auditor (CEA) or Certified Energy Manager (CEM) certification through the Association of Energy Engineers (AEE), or an AHFC-approved equivalent. Energy Performance Contracts (EPCs) Energy Service Companies (ESCos) qualified by Alaska Housing Finance Corporation (AHFC) and Alaska Department of Transportation and Public Facilities (DOT/PF) may be used. Retrofits may be managed by qualified Energy Service Companies (ESCos), or the facility owner (if under $250,000).