Energy programs receive fund boost; rebate still possible
Published Tuesday, June 24, 2008
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Stumble It!JUNEAU — While many Alaskans are hoping for some extra cash from the state to handle high fuel costs, others are already taking advantage of state programs to reduce their energy usage at home.
As part of a short-term energy relief program, Gov. Sarah Palin is proposing to give every Alaskan $1,200 this year to help with energy costs. But state lawmakers and the governor have already approved $300 million in funding for a pair of state programs offering home weatherization services to low-income residents and cash rebates to all homeowners who improve the efficiency of their homes.
The appropriation provided a huge cash influx into the two programs — previous funding totaled about $6 million a year — and state officials hope to triple the number of homes receiving weatherization services this year.
“Three hundred million dollars is an awfully large amount of money,” said Bryan Butcher of the Alaska Housing Finance Corp., which administers the two programs. “We’ve definitely been inundated, but we’re going full steam ahead.”
For the weatherization program, AHFC has teamed up with more than a dozen regional housing authorities in addition to its five regular service providers to get the weatherization work done faster, according to Butcher.
Instead of upgrading 600 homes a year, AHFC hopes to reach at least 1,800, he said.
There’s also more money per home.
In recent years, weatherization providers have only had about $2,000 to $3,000 to spend on each home, forcing them to tackle only “the most extreme repairs,” Butcher said. Now, the limit per home is $11,000.
Some people who’ve already received weatherization services may qualify for additional help now, Butcher added.
For the home energy rebate program, AHFC is training dozens of additional home energy raters to handle the demand. Under the program, homeowners are required to get an energy rating before and after they upgrade their homes. Rebates are given based on the extent of the upgrades made.
Butcher said 130 people — about half of them from the Fairbanks area — have already had their homes rated and requested reimbursement from AHFC. Energy raters are booked into the fall with appointments, he added.
Ryan Colgan, project coordinator at the Cold Climate Housing Research Center in Fairbanks, said improvements in home energy efficiency can offer short- and long-term relief by permanently reducing the use of energy, therefore reducing energy costs.
In some instances, efficiency upgrades can pay for themselves in one year through energy savings, according to Colgan.
“The cheapest energy is the energy the person doesn’t use,” he said.
AHFC is also offering loans to homeowners who want to improve the efficiency of their homes and grants of $7,500 to those who build new homes to the highest efficiency standard — those rated 5 Star Plus under the state’s AkWarm energy rating system.
People in Fairbanks and the surrounding area will benefit disproportionately from both programs. The $300 million was allocated by region based in part on the severity of the climate and the cost of heating fuel, according to Butcher.
In all, Fairbanks and Interior Alaska will receive $60 million through the two programs.
Butcher said it will take years to deliver the services, but he added the huge increase in funding likely won’t cover everyone.
“By no means is it going to come anywhere close to meeting the demands of the entire state,” he said of the weatherization program, which received two-thirds of the new funding.
For more information about either program, visit www.ahfc.us or call 1-877-325-2508.
For more news from the capital, visit www.newsminer.com and look for the Capital Focus blog.
Contact staff writer Stefan Milkowski at 388-6141.
Community Discussion
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what about the people who don't need weatherization upgrades? just need help with the fuel bills.
Weatherization programs are a pain, due to all the formaility you have to go through. I've already upgraded my windows, insulation and other numerous appliance over the last 4 years, but would have to start all over again. Send the energy rebate checks, and that would help everyone with heating fuel, gas and upgrading there homes for the upcoming winter. Now that would be a great relief for Alaskans, it is their oil anyway. $750 million is pretty cheap, when the state coffers are over flowing again and will continue to over flow.
What happen to all the money the Borough got for weatherization. Sitting collecting interest.
WOW, up to 65 people in Fairbanks have jumped through the first hoop to try and get their rebate. I guess that the energy crisis has been solved.
Energy raters, tax assessors, building inspectors, appraisors, fire inspectors, boiler inspectors, and yes even out house inspectors, all feeding from the same tit, now why do we need more money??? Simply raise taxes, that takes care of them.... will it ever end??
BigMike, thanks for the info. Both programs need to be audited, today !!
No matter how much you weatherize your home, you still need fuel to put in it.
How come the people of Alaska weren't allowed to vote on this????????????????????????????????
Why can't they give us the choice as to where we need to put the money. This plan obviously is not helping very many people out & weatherization has always been an option.
Improving long term efficiency is always a good idea, but the higher price of oil means that improvements that were not affordable last year are more feasible. Even though there are administrative "hoops", if you can qualify for one these programs, do it!
Efficiency means sure savings this winter and in coming winters, unlike the still vaporware $1200 cash relief. And, even if you move before the improvements pay for themselves, your house will be more sellable.
We need to start talking about large-sscale SOLUTIONS, not temporary fixes. This is a small step in the right direction.
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