Conservation Watch #11 - 3/30

In This Issue:
* 2nd Round of Renewable Energy Projects
* On The Move
* New In Town
* Calendar

Demand for Renewable Energy Projects outstrips Governor Palin’s Capital Budget Request

This past week the Alaska Energy Authority (AEA) released their ranking and funding allocations for Round 2 of the Alaska Renewable Energy Fund, a fund created by the passage of HB152 last year.  As we all know, the Governor originally included $50 million in her budget for this year to honor the intentions of Legislators when they passed HB152 ($50 million was to be put into the Renewable Energy Fund every year for 5 years). However, due to the current fiscal climate, that amount was reduced to $25 million in the Governor’s amended budget, released in February.  Now, AEA has provided the Governor and Legislators with the information needed to make a reasonable allocation of funds based on ready to go projects.  Out of 118 projects, AEA has recommended 58 projects for funding, a total of $36.8 million.

If Legislators stick to the Governor’s $25 million in the proposed budget there will be 30 additional renewable energy projects started across the state.  However, that last $11 million holds many gems that should not be overlooked due to artificial budget constraints.  Projects at risk of not being funded include projects in the Lower Yukon-Kuskokwim, Bristol Bay, Southeast, Railbelt, Bering Straights, Northwest Arctic, and Copper River/Chugach Energy Regions.  They include, but are not limited to: 

• A biomass project proposed by the City and Borough of Sitka.
• An assessment of the geothermal potential of the Pilgrim Hot Springs in the Bering Straights energy region by UAF’s Alaska Center for Energy and Power.
• The Camp Hill Wind Project proposed by the Native Village of Eyak.
• A solar hot water project by the Northwest Inupiat Housing Authority.
• A biofuels project proposed by the City of Kotzebue.
  
• Alaska Village Electric Cooperative wind analysis at New Stuyahok, Stebbins, St. Mary’s and Scammon Bay.
• A high penetration wind/diesel project for the City of Pilot Point.
• Several hyrdo projects on the Railbelt and in Southeast.
• Download the list of projects here.

The Senate Finance Committee is reviewing the capital budget and has the power to allocate the $38 million needed to fund all of AEA’s recommended renewable energy projects. Please email or write a letter to the Senate Finance Committee asking them to fund the entire amount for AEA’s recommended projects: $38 million.  If you can, point out the project in your community that may not be funded unless they increase the amount in the budget.

Senate Finance Members:

Co-Chairs: Senator Hoffman &  Senator Stedman

Senator Ellis

Senator Huggins

Senator Olson

Senator Thomas

On The Move

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. The bill was moved out of Senate Resources Committee last week. 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 heard and held in Senate Resources last week. 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 passed the Senate last week and has been sent to the House where it received a House Finance Committee referral. ACV supports this bill that is likely to pass the Legislature soon.

SB 150 Emerging Energy Technology Fund – Sen. McGuire (R-Anchorage)
One of ACV’s legislative priorities, we are pleased 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 received a great deal of support at its first hearing in Senate Energy where it was heard and held.  Senate Energy was able to pick the bill up again on Friday and pass it on to its next committee, Senate Resources, where it will have a hearing on Wednesday, April 1st at 3:30pm in room 205.

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 once again pushed off the agenda last week.  If ‘third time’s a charm’ it should be heard on Thursday, April 2nd at 11am in Room 205. HB163 had its first hearing in House Energy and was heard and held. No additional hearings have been scheduled for HB163.  Questions have been asked about whether the amendments will actually make any difference in getting a pipeline built.

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.  Both SB136 and HB163 were heard and held.  Legislators had many questions about the bill but no additional hearings have been scheduled.

HB182 / SB 143 Railbelt Energy & Transmission Corp. – Rules by request of the Governor
SB143 and HB182 are companion bills 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). Both bills have referrals to Energy, Resources and Finance committees and both have had just one hearing in their respective Energy Committees.  This is a complicated arrangement that is still a work in progress. Legislators are curious about oversight of the corporation, potential power sources and utility buy-in.  No hearings are expected this week for either bill.

SB 162 Heating Fuel Energy Relief – Sen. Paskvan (D-Fairbanks)
SB162 would establish a program in the Department of Commerce, Community, and Economic Development, Whenever the average monthly light sweet commodity price per barrel of low sulfur, easily refined grade of crude oil, traded on the New York Mercantile Exchange for the previous month exceeds $75, the retail price of heating fuel would be reduced by between $2.50 and $3.  The bill received Senate Energy, Resources and Finance referrals and is scheduled to be heard in Senate Energy on April 2nd at 11am in room 205.

HB 20 Fisheries Loans for Energy Efficiency - Rep. Edgmon (D-Dillingham) | Rep. Buch (D-Anchorage) | Rep. Austerman (R-Kodiak) | Rep. Thomas (R-Haines) | Rep. Wilson (R-Wrangell) | Rep. Munoz (R-Juneau) | Rep. Johansen (R-Ketchikan)
ACV supports HB20, a bill that adds efficiency upgrades as a possible criteria for commercial fishing loans. HB20 has been stuck in House Finance where some unexpected criticism of the bill cropped up because the loans aren’t available for sport fishing and it allows fishermen to buy new boats with the money.  It is up again today at 1:30pm in Senate Finance in room 519.

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 was heard and held last week.

HB 46 Mixing Zones/Sewage Systems – Rep. Seaton (R-Homer) | Rep. Gara (D-Anchorage)
HB46, introduced by Representative Seaton, is a combination of two of his bills from last year designed to give Alaskans more information about what is being discharged into Alaska’s water and stopping some mixing zones.  HB46 would require the Department of Environmental Conservation to collect and make available to the public certain information relating to water pollution and prohibit certain mixing zones in freshwater spawning waters and require a public comment period for certain sewage system or treatment works modifications.  It has been scheduled for a hearing tomorrow, March 31st at 10:15am in room 124.  ACV supports this bill.

HB 49 Eminent Domain: Recreational Structures – Rep. Johnson (R-Anchorage) | Rep. Ramras (R-Fairbanks) | Hawker | Rep. Lynn | Rep. Tuck (D-Anchorage)
HB49 would amend the State’s eminent domain laws to prohibit the exercise of the power of eminent domain on recreational structures for the purposes of developing a recreational facility or project. It passed out of the House last month with strong support and will have its first hearing in Senate Judiciary on Friday, April 3rd at 1:30pm in room 211.

HB 66 Net Energy Metering – Rep. Seaton (R-Homer) | Rep. Austerman | Rep. Gatto (R-Palmer) | Rep. Ramras (R-Fairbanks) | Rep. Munoz (R-Juneau) | Wilson | Rep. Buch| Rep. Gara (D-Anchorage)
HB66 directs the implementation of net energy metering by certain retail suppliers of electricity in order to promote the use of alternative energy resources from solar, wind, tidal, geothermal, or hydropower sources to complement electrical distribution using power generated by retail supplies. It will have its first hearing on Tuesday, March 31st at 3pm in room 124.  ACV supports this bill.

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) | Rep. Harris (R-Valdez)
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 it was held for further discussion. Up for  more discussion last week, the hearing was postponed and no make-up hearing has been scheduled for this week.

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 has gone through a lot of changes over the past week but ACV’s position remains unchanged – this bill is premature.  The original draft of HB134 removed the words: “at the point of discharge”, essentially granting 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. The current draft maintains the ‘at the point of discharge’ measurement but permanently allows DEC to grant 2-year permits to the cruise industry to exceed the discharge levels.  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 1-2 years to develop the technology. The bill passed out of House Resources on Thursday, expect to see it for consideration on the House Floor any day now.

HB 166 Southeast Energy Fund – Rep. Thomas (R-Haines) | Rep. Johansen (R-Ketchikan) | Rep. Wilson (R-Wrangell) | Rep. Kerttula (D-Juneau) | Rep. Austerman (R-Kodiak) | Rep. Munoz (R-Juneau)
This bill would create the Southeast Energy Fund, a fund that would make grants for power projects, the repayment of loans and the payment of bonds for hydroelectric projects serving Southeast Alaska or for other projects to assist in meeting the energy needs of Southeast Alaska. HB166 was referred to House Energy and Finance Committees. HB 166 is the companion bill to SB 132. ACV supports this bill.

HB 194 Low-Speed Motor Vehicles – Rep. Wilson (R-Wrangell)
HB194 has the same language as 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 35,000; is not connected by road to Anchorage or Fairbanks; and has passed an ordinance allowing for the operation of low-speed vehicles.  At its first hearing, it passed out of House Transportation and moved on the Judiciary.  ACV supports this bill.

HB 196 Alternative Energy Revolving Loan Fund – House Energy Committee
This bill changes the definition of alternative energy, allowing high efficiency wood pellet stoves to be eligible for the alternative energy revolving loan fund.  It will be heard in House Energy on Tuesday, March 31st at 3pm in room 124.

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) | Sen. Wagoner (R-Kenai) | Sen. Bunde (R-Anchorage)
These bills relate to providing energy security for Alaskans by working to support a gas “bullet” pipeline to meet in-state energy needs.  All four of these resolutions have passed Senate Resources and are on their way to Senate Finance.

HJR19/SJR 11 Oil Tanker Escort Vessels/Oil Spill Anniversary – Sen. Stevens (R-Kodiak) | Sen. French (D-Anchorge) | Sen. Wagoner (R-Kenai) | Sen. Ellis (D_Anchorage) | Sen. Wielechowski (D-Anchorage) | Sen. Paskvan (D-Fairbanks) | Sen. Menard (R-Wasilla) | Sen. Thomas (D-Fairbanks) | Rep. Austerman (R-Kodiak) | Rep. Harris (R-Valdez) | Rep. Gara (D-Anchorage) | Rep. Guttenberg (D-Fairbanks) | Rep. Lynn | Gardner | Kerttula | Seaton | Thomas | Stoltze | Herron | Buch (D-Anchorage)
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 ended up being the final vehicle for this bill that was passed last week and is on its way to the Governor. ACV supports this resolution.

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. HJR25 was moved from House Energy and referred to House Resources. 

New In Town

SB 162 Heating Fuel Energy Relief – Sen. Paskvan (D-Fairbanks)
SB162 would establish a program in the Department of Commerce, Community, and Economic Development that, whenever the average monthly light sweet commodity price per barrel of low sulfur, easily refined grade of crude oil, traded on the New York Mercantile Exchange for the previous month exceeds $75, the retail price of heating fuel would be reduced by between $2.50 and $3.  The bill received Senate Energy, Resources and Finance referrals and is scheduled in Senate Energy on April 2nd at 11am in room 205.

SB 167 Statewide Energy Code/Plumbing Code – Senate Resources Committee
Under SB167 the state fire marshal shall adopt by regulation a statewide building energy code for residential buildings and a statewide building energy code for commercial buildings. The residential energy code must meet or exceed the requirements of the most recently published version of the International Energy Conservation Code. The commercial energy code must meet or exceed the requirements of the most recently published version of the ANSI/ASHRAE/IESNA Standard 90.1, Energy Standard for Buildings Except for Low-Rise Residential Buildings, as published by the American Society of Heating, Refrigerating and Air-Conditioning Engineers. The bill received Resources and Finance Committee referrals.  If passed, it is generally understood that this would satisfy the Federal requirements for receiving the statewide energy plan stimulus funds. ACV supports this bill.

HB 196 Alternative Energy Revolving Loan Fund – House Energy Committee
This bill changes the definition of alternative energy, allowing high efficiency wood pellet stoves to be eligible for the alternative energy revolving loan fund.  It will be heard in House Energy on Tuesday, March 31st at 3pm in room 124.

HB 200 Clean Water Fund: Linked Deposits – Rep. Seaton (R-Homer)
HB200 modifies the Alaska Clean Water Fund to require the Department of Environmental Conservation to establish a linked deposit loan program to provide a source of low-interest financing for certain non-point source pollution control programs or projects undertaken by a person, municipality, or other qualified entity.  The bill was referred to House Resources and Finance Committees. 

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