By CHERYL MARKWOOD
Starting next year, homeowners in Alaska will be required to obtain an energy rating before listing their home for sale. Not only will you be responsible for paying for this rating, but you must also file the results with the Alaska Department of Environmental Conservation and provide the energy report to any prospective buyers.
This applies to all home sellers in the Fairbanks North Start Borough, including those who list their own homes and for those who are selling burned-out, frozen, or foreclosed homes. Every home will have to have an energy rating even if it sells again the following year.
The first time we in real estate heard about this final rule was when we received this letter from the State Department of Environmental Conservation on Jan. 21:
This regulation, 18 AAC 50.081, has already been signed and will take effect after Dec. 31, 2025. It is part of the State’s Implementation Plan for improving air quality in the Interior, but it will have a profound and negative impact on Alaska’s entire housing market and economy.
There is only one week left to make your voice heard on this issue. The public comment period ends Feb. 7.
I encourage you to read the regulation (pasted at the bottom of this column) and submit your comments to help prevent this unnecessary government overreach. You can comment here: EPA Regulation Comment Page. You can send a message to Gov. Mike Dunleavy here. You can send a message to the commissioner of DEC by writing to [email protected]
Read the Greater Fairbanks Board of REALTORS’ call to action, with many important points that impact all Alaska homeowners, here:
The regulation in question mandates that before you can list your home for sale, you must have an energy rating completed by an energy rater.
The cost for this rating can be $950 or more, which is an additional cost on top of the already expensive process of selling a home. The results of the energy rating must be provided to buyers and submitted to the DEC.
This is blatant government overreach. It will severely impact Alaska’s housing economy and put a strain on homeowners who simply want to buy or sell property. The regulation applies to all residential buildings, regardless of age or condition, even homes that have already been significantly improved to lower energy costs over the years.
As an example, I live in a house built in 1939. Despite making numerous upgrades, the energy rating for my home may only be 3 out of 6 stars- a rating that could negatively impact the sale price of my property. The energy rating system is arbitrary, and if the State of Alaska DEC continues to adjust the scales, properties could see even lower ratings in the future.
The regulation raises more questions than answers:
Does a dry cabin need an energy rating?
What about a condo or a house that was previously damaged by fire and is being sold as a shell?
What happens when a property is sold and resold multiple times over the course of a few years?
Will the energy rating be required each time?
This law also opens the door to what is essentially a $950 tax on every home, condo, or cabin sale in this part of the state. There’s a lot of uncertainty about how this will be enforced and how it will affect the value of homes, especially older properties with lower energy ratings.
Most importantly, this regulation infringes on the fundamental rights of homeowners. It places unnecessary barriers between us and our ability to sell property we rightfully own. This is a clear overreach by the government into our personal rights and responsibilities. The law will force homeowners to pay for an energy rating before being allowed to sell, taking away our right to dispose of property freely.
I strongly encourage everyone to submit comments on this regulation by Feb. 7 to ensure we protect our ability to sell homes without excessive government interference. Let’s work together to protect our housing market, our property rights, and the future of real estate in Alaska.
Cheryl Markwood owns Markwood Realty in Fairbanks and writes as an individual Alaska and not in her capacity as a member of the Alaska Real Estate Commission.
The regulatory code discussed in this column is provided below.
18 Alaska Admin. Code § 50.081
Section 18 AAC 50.081 – Real estate transaction requirements; weatherization and energy efficiency
(a) In an area identified in 18 AAC 50.015(b)(3), the following requirements apply:
(1) after December 31, 2025, a residential building owner must have an energy ratingcompleted by an energy rater before listing the building or property for sale; the residential building owner shall pay for the costs of the energy rating; the energy rater shall provide information about weatherization resources as part of the energy rating report; the residential building owner must give the energy rating report to the buyer simultaneously with the seller’s Residential Real Property Transfer Disclosure Statement from the Real Estate Commission; the residential building owner must submit the energy rating report to the department in a format provided by or approved by the department;
(2) the owner of any building being sold in which a wood-fired heating device is located must register the device, using a form or method provided by the department unless the wood-fired device previously has been registered under 18 AAC 50.077(h);
(3) the buyer of any building in which a wood-fired heating device is located must submit a change of ownership notification to the department for any device previously registered under 18 AAC 50.077(h) or (2) of this subsection and must register any previously
undisclosed wood-fired heating devices, using a form or method provided by the department;
(4) the owner, seller, and buyer of any building being sold in which a wood- or coal-fired heating device is located must comply with all applicable requirements under 18 AAC 50.077(h) and (l) – (n) and 18 AAC 50.079(b) and (f) – (h).
(b) An agent shall ensure compliance with all requirements of this section. To ensure compliance, the agent must
(1) inform the seller or buyer, as applicable, of the seller’s or buyer’s obligations under this section, 18 AAC 50.077, and 18 AAC 50.079; and
(2) ensure during a real estate transaction that the seller or buyer, as applicable, has performed all activities required under 18 AAC 50.077(h) and (l) – (n) and 18 AAC 50.079(b) and (f) – (h) or must personally ensure compliance with those requirements.
(c) If the agent has complied with (b)(1) of this section, the agent may not be liable for the failure to disclose to a buyer the presence of a noncompliant wood-fired heating device known by a seller but not disclosed to the agent.
(d) In this section,
(1) “agent” means any party who enters into a contract with an owner, seller, or buyer,
including any party who enters into a contract with a representative of the seller or buyer,
for the purpose of selling or buying any building;
(2) “energy rater” means a person authorized to perform energy ratings by the Alaska Housing Finance Corporation under 15 AAC 155.530, revised as of June 14, 2010, and adopted by reference;
(3) “energy rating” has the meaning given in 15 AAC 155.990, revised as of April 3, 2013, and adopted by reference;
(4) “residential building” has the meaning given in 15 AAC 155.990, revised as of April 3, 2013, and adopted by reference. 18 AAC 50.081
Eff. 12/8/2024, Register 252, January 2025
Authority:AS 46.03.020
AS 46.14.010
AS 46.14.020
AS 46.14.030
Sec. 30, ch. 74, SLA 1993
The information is available from the utility companies. Ask for a 5-year average for electrical and gas. We don’t need the Devil’s Castle to interfere in our lives. The more dependent you become, the closer to slavery you are. Don’t trade your success for failure. Be responsible and keep your head up.
More and more like California.
Where is the governor? Silent.
More commie control for the LibTard matrix.
This sh$+ never ends.
Govt should focus on infrastructure and public safety.
Our legislature is being run by traitorous RINO’s and Librard progressives.
Sic Semper Tyrannis!
First off, knee jerk reaction. Will read more fully in a bit.
is this from an overstepping agency regulator(s)? Or is this passed by the legislature?
If legislature, we need to know who proposed it, all cosponsors, and all “yes” voters.
The AAC is an entity of each department creating their own regulations without legal advice and instituting them into regulations administratively through their department head and on to the Lt. Governor’s office to add to the Administrative regulations that the public is not aware of and is not a [art of the statutes, AS, unless and until it is worded into language for a separate bill to address an issue to go before the legislative body to be voted on for signature of the governor.
The author is mixing apples and oranges to “lie to and fool” the public into making comments under one section in order for this to pass without you, the public, being fully aware of the ramifications without legal advice in either circumstances. Don’t be fooled and don’t accept the lie by this author. Think, and don’t react without legal advice of a property attorney.
Not all group activity is legal activity. Was this don on the job? Where and when exactly did they get this personal jurisdiction over private properties within the boundaries of this state. Show me exactly in the US Constitution, the letter of the the law that gave anyone personal jurisdiction over someone else’s property
What a super important person. Oh There is no one with that authority? What day how exactly did they get subject matter jurisdiction. To have that subject matter jurisdiction do they also have to have a license? You can’t just imagine a nice ladylike subject matter jurisdiction expressed by the people with their consent I writing before you can snatch it and bequeath to yourself except in Alaska. So supra.
And thot is why we need sheriffs for instance
You know enforce only US Constitutional things.
I would encourage everyone in Alaska to submit their comments. Many outside of Fairbanks will say they don’t care because it doesn’t affect them. Well this is just the start and it will eventually reach everywhere if not challenged. The woodstoves in Fairbanks are a public health hazard and need to be addressed, but the energy rating thing is a bridge too far.
Stop electing the people who are breaking you.