In June 2010, the Alaska Legislature enacted SB 220, an omnibus energy bill, which created several renewable energy and energy efficiency programs, including the Alaska Energy Efficiency Revolving Loan Fund Program. This program is administered by the Alaska Housing Finance Corporation (AHFC) and offers loans to schools, the University of Alaska, state government, and municipal governments for energy efficiency improvements.
In order to participate in this program, the entity requesting the loan must assess existing energy use by participating in the Retrofit Energy Assessment for Loan (REAL) process. This ensures that energy efficiency measures funded by the loan will provide savings greater than the loan payments. An investment grade audit is also required and the energy efficiency measures eligible for a loan will be determined by this audit. There is a maximum term length of 15 years and no maximum loan amount. However, loans in excess of $1.5 million require special approval.