Conservation Watch #10 - 3/23

In This Issue:

Energy Stimulus: To be or not to be?
On The Move
New In Town
Calendar

Energy Stimulus: To be or not to be?

The Governor shocked and disappointed most of the state last Friday when she announced that she had decided to reject a third of the stimulus funds available to the state.  However, she also has stated that she is willing to talk about it before final decisions are made. Out of a total $300 million in rejected funds were over $55.5 million for home weatherization, energy efficiency and energy development – funds that could help Alaskans see real money savings on their energy bills over the coming years. Alaskans stand to loose:

• $8.5 million in efficiency funds
• $18.5 million for weatherization
• $28.6 million for a State Energy Program

Why is the Governor saying “Thanks, but No Thanks” to these funds? As Palin stated in her recent press conference, “I will not request stimulus package funds that subject Alaska to more federal control and ever-increasing federal mandates.” According to a research report on “Energy and Telecommunications Provisions in Federal Stimulus Bill” done by Kevin E. McCarthy, the only strings attached to the State Energy Program are that the Governor must certify that within 8 years of the bill’s enactment at least 90% of new and renovated residential and commercial building spaces will meet or exceed the most recently published International Energy Conservation Code (for residential) or the ANSI/ASHRAE/IESNA standard 90.1-2007 (for commercial).  The Alaska Housing Finance Corporation has already adopted the IECC Code and requires any of its loan recipients to build in an energy efficient manner.

As for the $18.5 million for low-income weatherization, it is still unclear what ‘strings’ the Governor is concerned about.  The Alaska Housing Finance Corporation recently oversaw $360 million in low-income weatherization funds from last year’s budget windfall and appears to have the appropriate structures in place to satisfy most  Federal requirements. “As far as I know the only additional requirement attached to these funds is establishing a policy advisory body, which is just good government anyway”, notes Meera Kohler, CEO of Alaska Village Electric Cooperative.

Luckily, despite the Governor’s reluctance to take some of this money, our Legislators do have the ability to request any stimulus funds not requested by Palin – assuming the request survives a veto.  The Governor has until April 3rd to certify that 1) the state will request and use the funds provided by the stimulus bill, and 2) the funds will be used to create jobs and promote economic growth.  After that the Legislators can request the funds.  To that end, Senators Stedman and French introduced a Senate Concurrent Resolution on Friday that would certify the state’s acceptance of all available stimulus funds.  It has been scheduled for discussion on this morning’s Senate Calendar. 

***More information on the federal economic stimulus package is available on the Office of Management & Budget website at alaska.gov/recovery. Audio of the governor’s quote from Thursday’s press conference can be found at the following link: http://www.gov.state.ak.us/audio/StimulusPressConf_Mar19-2009-GovClip.mp3

On The Move

SB 150 Emerging Energy Technology Fund – Sen. McGuire (R-Anchorage)
One of ACV’s legislative priorities, we are excited to see SB150 finally in motion.  This bill would create an emerging energy technology fund through the Alaska Center for Energy and Technology to provide grants and loans to eligible applicants for research, development or demonstration projects designed to test new energy technologies or methodologies of conserving energy and/or to improve an existing energy technology.  The bill has three committee referrals, Energy, Resources and Finance.. The first hearing will take place on Thursday, March 26th at 11am in Senate Energy in room 205. 

SB 4 Coastal Management Program - Sen. Olson (D-Nome)
SB4 is an attempt at correcting problems with Alaska's Coastal Management Program resulting from changes made several years ago by the Murkowski Administration.  This bill has quite a bit of support from coastal districts and local coastal communities but has been opposed by the Governor and the Department of Natural Resources.  While there was more testimony than the committee had time to hear, and the majority of the testimony was in favor of the bill. The committee has not yet scheduled a second hearing to complete public testimony.  ACV supports this bill and urges the Senate Resources Committee to hold another hearing.

SB 59 Medium-Speed Motor Vehicles – Sen. Stedman (R-Sitka)
SB59 changes the limitations on low-speed vehicles to allow them on roads with speed limits under 45 miles per hour, an increase from the current 35 miles per hour max.  It also allows for low speed vehicles to cross highways at designated intersections. This change would help foster greater use of low speed electric vehicles in some communities. ACV supports this bill.  It was heard and held at its last hearing in Senate Judiciary.

SB 71 Alternative Energy For Public Works - Sen. Therriault (R-North Pole)
Sponsored by Senator Therriault, SB71 would encourage new public works facilities to use alternative (defined as non fossil fuel) energy as primary or secondary heat or electricity sources whenever the cost is comparative to fossil fuels. Already through Senate Energy, the bill has been scheduled for its first hearing in Senate Resources Committee on Thursday, March 27th at 3:30pm in room 205. ACV supports this bill.

SB 108 Stampede State Recreation Area – Sen. Thomas (D-Fairbanks)
SB108 would create the Stampede State Recreation Area. This bill was referred to both Resources and Finance committees and was supposed to be heard last week until the hearing was canceled.  The hearing was rescheduled for Thursday, March 27th at 3:30 in Room 205. ACV supports this bill.

SB 116 Appropriation: Rural Energy Assistance – Senate Finance Committee
This is a revised and expanded version of Senator Hoffman’s bills to extend energy cost assistance to low income Alaskans. This approach drops a proposed new program for this purpose and simply places $ 9 million (up from the initially proposed $5 million) into the federal Low Income heating Assistance Program and the Alaska Heating Assistance Program.  It moved out of Senate Finance and was on today’s calendar for a vote.  It will have its third reading on Wednesday. ACV supports this bill.

HB 163/ SB 135 Alaska Natural Gas Development Authority - Rules by Request of the Governor
This late arrival is one of several bills recently introduced by the Governor.  HB163 and SB135, companion bills, would clarify and broaden the scope of the Alaska Natural Gas Development Authority.  The bills have Energy, Resources and Finance referrals in both bodies.  SB135 was scheduled for a meeting but not heard.  A second hearing has been scheduled for Thursday, March 26th at 11am in room 205. HB163 will have its first hearing in the House Energy Committee on Saturday, March 28th at 10am in room 124. 

HB 164 / SB 136 In-State Pipeline: Leases; Certification – Rules by Request of the Governor
Another late arrival from the Governor’s office – HB 164 and SB 136, companion bills, relate to noncompetitive leases of state land and for rights-of-way for oil or natural gas pipelines that originate and terminate within the state. This bill also addresses the regulation and certification of those pipelines and conditional certification for new natural gas pipelines The bills have Energy, Resources and Finance referrals in both bodies.  SB136 was scheduled for a meeting but not heard.  A second hearing has been scheduled for Thursday, March 26th at 11am in room 205. HB164 will have its first hearing in the House Energy Committee on Saturday, March 28th at 10am in room 124.

HB182 / SB 143 Railbelt Energy & Transmission Corp. – Rules by request of the Governor
SB143 is a bill from the Governor to establish the Greater Railbelt Energy and Transmission Corporation – the entity that would unite the various utility operators on the Railbelt (GVA, MEA, HEA, ML&P, Chugach). This is very complex bill with referrals to Energy, Resources and Finance committees.  Its first hearing was last week where several important questions regarding oversight, power sources and utility buy-in were asked.  The bill was heard and held and no additional hearings have been scheduled. On the House side – HB182 will have its first hearing on Thursday, March 26th at 3pm in room 124.

HB 31  Net Energy Metering – Rep. Olson (R-Soldotna)
"An Act relating to net energy metering for retail electricity suppliers and customers; and providing for an effective date." The bill will have its first hearing on Tuesday, March 24th at 3pm in room 124 in House Energy.  The other committee of referral for HB 31 is Labor and Commerce. ACV supports this bill.

HB 43  Geoduck Aquatic Farming/Seed Transfer – Rep. Seaton (R-Homer)
HB43 prohibits the absence of wild geoduck stock within a management area as the reason for denial of an aquatic farm permit. Now, if a permit is issued for an aquatic farm to culture geoducks, in a management area that does not have wild geoduck stocks when the permit is issued, the permit may not allow operations for that purpose in the intertidal habitat or environment.  Already through the House Fisheries Committee, the bill has been stuck in the queue for several weeks awaiting a hearing in the House Resources Committee.  It was scheduled to have its first Resources hearing last week but was not heard.  It has not been rescheduled.

HB 70  Alaska Grown Agricultural Products – Rep. Gatto (R-Wasilla) | Rep. Ramras (R-Fairbanks)
HB70 would establish a farm-to-school program in the Department of Natural Resources, the Alaska grown fresh fruit and vegetable grant program in the Department of Education and Early Development, the farmers' market technology improvement pilot program in the Department of Environmental Conservation, and the farmers to food banks pilot program in the Department of Commerce, Community, and Economic Development.  At its first hearing last week in House Resources several students gave testimony in favor of the bill, citing the importance of healthy and locally grown food for students, the economy and Alaskan farmers. 

HB 121 Municipal Air Quality Property Tax Credit – Rep. Coghill (R-North Pole) | Rep. Kawasaki (D-Fairbanks) | Rep. Gara (D-Anchorage) | Rep. Ramras (R-Fairbanks) | Rep. Kelley (R-Fairbanks)
Like SB93 by Senator Paskvan and others, this bill would allow a municipality to provide an ‘air quality improvement tax credit’ to partially offset the property taxes on a property that is improved in such a way as to improve the air quality in the municipality. Already through House CRA, HB121 was heard in House Finance on Friday morning.  ACV Executive Director Kate Troll testified in favor of the bill, adding a suggestion that the bill not only apply to municipalities with poor air quality but all municipalities.  Healthy debate about the bill followed and the bill was held for further discussion. It is up for discussion again on Thursday, March 26th at 1:30pm in room 519.

HB 132 Bicycle Program – Rep. Seaton (R-Homer) | Rep. Gruenberg (D-Anchorage)
HB132 would authorize municipalities and nonprofit organizations to sponsor programs encouraging the safe use of bicycles as an alternative or supplement to motor vehicles.  It would amend the duties of the Department of Commerce, Community, and Economic Development to include the administration of state funds appropriated for these types of programs and would allow state and federal aid allocated for highways to be used to support bicycle paths.  The bill was referred to Transportation and Finance committees.  At its hearing last week the bill received all favorable testimony and was passed out of House Transportation Committee.  ACV staff testified in favor of the bill and supports passage of HB132.

HB 134 Cruise Ship Wastewater Discharge Permits – Rep. Harris (R-Valdez | Rep. Kelly (R-Fairbanks) | Rep. Millett (R-Anchorage) | Rep. Johansen (R-Ketchikan) | Rep. Foster (D-Nome) | Rep. Keller (R-Wasilla) | Rep. Chenault (R-Nikiski) | Rep. Coghill (R-North Pole) | Rep. Johnson (R-Anchorage) | Rep. Wilson (R-Wrangell) | Rep. Munoz (R-Juneau)| Rep. Hawker (R-Anchorage)
HB134 amends the voter mandated cruise ship wastewater discharge law to remove 5 critical words: “at the point of discharge”. This very small change would essentially grant cruise ships a mixing zone, allowing their wastewater discharge to exceed clean water act standards until the cruiseship waste mixes with enough ocean water for dilution to occur. ACV believes that instead of prematurely changing the law we should work to find appropriate technology to meet the discharge levels or potentially grant the cruise ship industry additional time to develop the technology. Last week was an interesting one for this bill.  Instead of considering the amendment put forward by Representative Seaton, the House Resources Chair, Representative Neuman requested that DEC Commissioner Larry Hartig bring forward a suggested compromise.  A hearing on the bill today was cancelled.  We expect to see DEC’s suggested language at the House Resources Committee some time this week but no suggested language had been released at the time of this posting.

HB 150 Power Cost Equalization – Rep. Austerman (R-Kodiak) | Rep. Joule (D-Kotzebue) | Rep. Edgmon (D-Dillingham) | Rep. Wilson (R-Wrangell) | Rep. Foster (D-Nome) | Rep. Munoz (R-Juneau) | Rep. Thomas (R-Haines) | Rep. Harris (R-Anchorage) | Rep. Herron (D-Bethel) | Rep. Kerttula (D-Juneau) | Rep. Salmon (D-Beaver) | Rep. Johansen (R-Ketchikan)
HB150 would repeal certain provisions relating to modifying the factors that apply to calculate the amount of power cost equalization.  It was referred to House Community and Regional Affairs (CRA) and Finance Committees.  At last week’s hearing HB150 was moved out of CRA and is on its way to House Finance.

*NEW* HB 194 Low-Speed Motor Vehicles – Rep. Wilson (R-Wrangell)
HB194 is the same language of the current CS of SB59, a bill with the same title.  This bill allows the operator of a low-speed vehicle to operate on a highway with a maximum speed limit of 45 miles an hour if the highway is within a municipality that has a population of less than 25,000; is not connected by road to Anchorage or Fairbanks; has passed an ordinance allowing for the operation of low-speed vehicles.  It has been scheduled for a hearing on Thursday, March 26th at 1pm in room 17. ACV supports this bill as well.

HCR 2, HCR 3, HCR 4 and HCR 5 In-State Gas Pipeline - Rep. Ramras (R-Fairbanks) | Rep. Millett (R-Anchorage) | Rep. Johnson (R-Anchorage) | Rep. Chenault (R-Nikiski) | Rep. Hawker (R-Anchorage) | Rep. Dahlstrom (R-Anchorage) | Sen. Therriault (R-North Pole) | Sen. McGuire (R-Anchorage) | Sen. Meyer (R-Anchorage) | Sen. Huggins (R-Wassilla) | Sen. Stevens (R-Kodiak)
These bills relate to providing energy security for Alaskans by working to support the gas pipeline.  All four of these resolutions will be heard in Senate Resources on Friday at 3:30pm in room 205. 

HJR19/SJR 11 Oil Tanker Escort Vessels/Oil Spill Anniversary – Sen. Stevens (R-Kodiak) | Rep. Austerman (R-Kodiak) | Rep. Harris (R-Valdez) | Rep. Gara (D-Anchorage) | Rep. Guttenberg (D-Fairbanks)
Recognizing the 20th anniversary of the Exxon Valdez oil spill and supporting the continued practice of accompanying each oil tanker through Prince William Sound with at least a two-vessel escort.   The House version is through the House and will be heard in State Affairs on Tuesday, March 24th at 9am in room 211.  It also has a Resources referral in the Senate. ACV supports these resolutions.

HJR 25 Hydroelectric Power; Renewable Energy – Rep. Thomas (R-Haines) | Rep. Johansen (R-Ketchikan) | Rep. Edgmon (D-Dillingham) | Rep. Millett (R-Anchorage) | Rep. Austerman (R-Kodiak) | Rep. Kerttula (D-Juneau) | Rep. Munoz (D-Juneau) | Rep. Wilson (R-Wrangell) | Rep. Johnson (R-Anchorage) | Rep. Dahlstrom (R-Anchorage) | Rep. Gruenberg (D-Anchorage) | Rep. Crawford (D-Anchorage) | Rep. Gardner (D-Anchorage) | Rep. Tuck (D-Anchorage)
HJR25is a resolution from the Alaska State Legislature urging the United States Congress to take the necessary action to classify hydroelectric power as a renewable and alternative energy source so that the state can participate in federal programs without restriction to facilitate development of the state's hydroelectric resources for the benefit of its residents. HJR 25 will be heard in House Energy on Tuesday at 3pm in room 124. 

New In town

SB 152  Transportation; Transit Authorities – Sen. Huggins (R-Wasilla)
One of ACV’s legislative priorities, we are pleased to see SB 152 make an appearance.  This bill would allow municipalities to form Regional Transit Authorities to facilitate long-range planning for region-wide transportation needs. The bill was referred to Senate Transportation and Finance Committees.

HB 191 Nuclear Power Production/Waste Transport – Rep. Johnson (R-Anchorage) | Rep. Keller (R-Wasilla)
"An Act relating to nuclear energy production and transportation of nuclear waste material; amending the definition of 'power project' or 'project' as it relates to rural and statewide energy programs and the Alaska Energy Authority; relating to the alternative energy revolving loan fund and amending the definition of 'alternative energy system' as it relates to that fund and to the conservation of energy and materials; and providing for an effective date." The bill was referred to House Energy and Resources Committees.

SCR 4 Accept Federal Economic Stimulus Payments – Sen. Stedman (R-Sitka) | Sen. French (D-Anchorage)
SCR4 certifies that the State of Alaska requests and will use any funds provided to the state, a state agency, a municipality, or a political subdivision of the state under the American Recovery and Reinvestment Act of 2009.  It is a direct response to Governor Palin’s announcement to reject 1/3 of the stimulus funds and has been scheduled for today’s Senate Calendar.

Calendar