Conservation Watch #13 - 4/13

In This Issue

10...9...8...7...
Alaska Department of Energy
Energy Roundtable Talks
On The Move
New In Town
Calendar

10…9…8…7…

Just 7 days left until the end of the first half of the 26th Legislative Session.  That’s right – we’re less than a week away from the finish line.  Don’t worry, if your bill doesn’t pass by Sunday night it will get a second chance come January 2010 when the fun starts up again.  Legislators have already made it clear that very few bills will pass this session, choosing instead to focus on the budgets and the Federal stimulus funds.  While there has yet to be talk of a special session Legislators are talking about the work that needs to be done  during the interim around the state’s energy plan.  We expect to see some type of town hall meetings  and other efforts to discuss the proposed Department of Energy, energy building codes, energy efficiency and emerging energy technology.

House Energy Committee's new bill to Create a Department of Energy for Alaska

The House Special Committee on Energy last week introduced HB 218, a bill that would set up a Department of Energy for Alaska, potentially simplifying the jumble of agencies, departments and corporations in Alaska's energy governance system. Under this proposal, the new Department would initially house the Alaska Energy Authority, Alaska Natural Gas Development Authority and the weatherization program from the Alaska Housing Finance Corporation (AHFC), three big players in Alaska's energy governance. This proposal came as a way to streamline the current system. The Senate Energy Committee, chaired by Sen. Lesil McGuire R-Anchorage introduced the bill's companion, SB 185.

“The state currently has several energy programs and agencies tasked with everything from home weatherization to in-state gas pipeline development spread across several departments. With one mission, it seeks to aggressively improve the long-term, sustainable availability of more affordable energy for Alaska,” according to a House Energy Committee press release from April 6.  House Energy Committee members are not trying to get the bill passed this year. Instead, they will be taking to the road this summer to hone their ADOE idea at community energy meetings around the state.  Already they have held meetings in Nome, Kotzebue, Dillingham and other communities where they learned how Alaskans are already dealing with rural energy issues.  “It’s a real challenge in rural communities to get permits, funding and information on energy programs when they are housed in several departments,” said House Energy Co-chair Bryce Edgmon, D-Dillingham. “The energy department will be a one stop shop for rural residents.”

The bill is structured to acquire departments in whole, as in the case of AEA, or individual programs or projects like in the case of AHFC's weatherization program. A map of Alaska's energy governance shows many programs that could be excised from their current agency and placed under control of the Department.   This new assemblage is not designed to increase the size of government, by creating new departments or corporations, but instead it would coalesce existing organization and expertise.  “The importance of our approach is that it reorganizes state government and we are committed to insuring a coordinated, streamlined department,” said House Energy Co-chair Charisse Millett, R–Anchorage. “It simply transfers current programs and agencies over to the energy department so they work more efficiently and deliver better service to urban and rural regions of the state.” Co-Chair Millet also has said that she has an open mind about how best to get this done.

The House Energy Committee plans to work with the Governor's administration to identify other agencies or programs that would benefit from being incorporated into the Department of Energy and hopes to finalize the bill for 2010. The proposed Department of Energy could also accept Federal Funds for energy projects.  

Legislators Give Alaska’s Energy Governance A Hard Look at Recent Roundtable Discussion

While there is some support for creating a Department of Energy, there are still many other ideas out there about how to tackle Alaska's energy crisis.  In fact, the heads of many of Alaska's energy interests met recently at a weekend roundtable to discuss energy plans, policy and practice.  The meeting was held by the House Special Committee on Energy and was a culmination of its 30 meetings this year - including meetings in Kotzebue, Dillingham and Nome.  House Energy plans to continue its work after the session with policy summits in nine communities, said co-chair Charisse Millett R-Anchorage. Most every region of the state already has an energy plan and policy of own. The House Energy Committee, Millett said, will bring these policies and plans together to form a statewide plan.  “Take those parts and pieces that everyone put their hard work and effort … and from that we can start deriving the beginning of our energy policy,” Millet said.

In addition to the committee members of House Energy, the roundtable also featured statewide energy leaders: Marilyn Leeland of Alaska Power Association, Meera Kohler of the Alaska Village Electric Cooperative, Chairman Robert Picket of the Regulatory Commission of Alaska, Bryan Butcher with Alaska Housing Finance Corporation, John Davies of the Cold Climate Housing Research Center, Gwen Holdmann Organization Director for Alaska Center for Energy and Power, Commissioner George Cannelos of the Denali Commission, Steve Haggenson Alaska Energy Authority, Chris Rose of Renewable Energy Alaska Project.

The general tone at the meeting was that the time for action was now - and that the action should be focused around energy efficiency, clean energy and streamlined energy governance. While most energy leaders at the roundtable agreed that the state needs high-level governance, how that governance should look was up for debate.

• Chris Rose, Executive director of Renewable Energy Alaska Project said that Alaska should have a 50-year vision, a vision that can adapt to a changing world. Alaska should have a policy regulatory structure that promotes and incentivises energy efficiency, education, workforce development and electrifying transportation, he said.  “If we make our buildings more efficient and our transportation more efficient, we can pass that technology on to the rest of the world because everybody's going to want to do it,” Rose said.
• John Davies, Research Director for the Cold Climate Housing Research Center said Alaska should create an energy system where “there is no such concept as waste, where all the energy we produce gets used,” Davies said. “A future where we use our current wealth to get there and the future is a sustainable system.”
•  Steve Haggenson, Executive Director for Alaska Energy Authority, said that the energy plan Alaska needs is one that communities and individuals create and carry out.   “I don't think we need an energy plan, we need a successful energy plan. The most critical part is engaging Alaskans in the process,” Haggenson said. It is critical to get Alaskans to take ownership in the decisions and practice of energy efficiency, electricity, heating and transportation, “the whole energy gamut,” Haggenson said.
• Marilyn Leeland of the Alaska Power Association said her organization supports a cabinet-level energy department.   “Having an energy department or some entity that can come up with a way of prioritizing,” Leeland said.

At the roundtable, the Energy Committee's DOE idea had a mixed response.   John Davies of Cold Climate Housing said a Department of Energy could be redundant.  “We'd spend a lot of energy rearranging the chairs on the deck of the titanic, in terms of creating a new dept that could be better spent actually trying to solve the problem,” Davies said. “I think that we have the tools to solve the problem.”  Commissioner Bob Picket of the RCA, who said he would like to see the Alaska Energy Authority be the cabinet-level department as opposed to creating a new Department of Energy.

On The Move

SB 88 Power Cost Equalization - Senate Finance Committee
SB 88 was introduced by the Senate Finance Committee and would make the changes made to the Power Cost Equalization program during the July 2008 Special Session permanent.  In July, legislators raised the PCE ceiling from 52.5 cents to $1.00, set to expire on June 30, 2009. SB88 would make the change to $1.00 permanent.   After two months of sitting in the Senate Finance Committee this bill sprang to life late last week.  It was passed out of the Senate Finance Committee, passed out of the Senate and then moved on to the House with only a Finance referral.  It was heard and held on Friday but expect to see some more action on this bill in the coming week. 

SB 108 Stampede State Recreation Area – Sen. Thomas (D-Fairbanks)
SB108 would create the Stampede State Recreation Area. ACV supports this bill. This bill was referred to both Resources and Finance committees and was passed out of Senate Resources on Friday with very little discussion.  It is on its way to Senate Finances. 

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.  Despite this being one of the Governor’s priority bills it is unlikely that this issue will be resolved before the end of the session. HB163 was passed out of House Energy and moved to House Resources where it was heard and held over the weekend.

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.  House Energy committee heard and held HB 182 on Thursday, April 9. SB 143 was heard and held on Monday and again on Thursday in Senate Energy.  Neither bills have been scheduled for additional hearings. The Administration has decided to continue work on the bills over the interim and bring them back next year for further legislative consideration.

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) | Rep. Kerttula (D-Juneau) | Rep. Seaton (R-Homer) | Rep. Gara (D-Anchorage) | Rep. Tuck (D-Anchorage) | Rep. Lynn (R-Anchorage)
ACV supports HB20, a bill that adds efficiency upgrades as possible criteria for commercial fishing loans. HB20 finally passed through the House and was read across in the Senate where it was referred to Senate Resource and Finance Committees.

HB 36 Initiatives: Contributions/Procedures - Rep. Johansen (R-Ketchikan) | Rep. Millett (R-Anchorage) | Rep. Wilson (R-Wrangell) | Rep. Johnson (R-Anchorage)
SSHB 36 makes four key changes to the initiative process. One change would impose a two-year moratorium on restarting a defeated initiative. Because of the timing of filing this requirement would in reality turn into a four-year delay. Another change would require the sponsors to hold public hearings in at least 30 house districts within one year after the Application is certified. A third change would tip the balance of power in the initiative process toward the Legislature, requiring a standing committee of the Legislature to review each initiative certified by the Lieutenant Governor for the ballot. And the fourth change requires petitioners to disclose who contributed to their efforts before the Lieutenant Governor approves the ballot proposal. At the Monday House Judiciary committee hearing, committee members voiced concern that the requisite 30 meetings would be too onerous a requirement of an initiative sponsor.  It will be heard in House Judiciary again on Monday at 8am in room 120.  ACA strongly opposes this bill.

HB 49 Eminent Domain: Recreational Structures – Rep. Johnson (R-Anchorage) | Rep. Ramras (R-Fairbanks) | Hawker | Rep. Lynn | Rep. Tuck (D-Anchorage)
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 April 13 at 1:30pm in Room 205.

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)
The current draft of this bill would allow a municipality that includes within its boundaries an area that fails to meet federal or state air quality standards for fine particles that are less than or equal to 2.5 micrometers in diameter to provide for 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 ACV supports this bill but would prefer that the option for a tax credit be available to all municipalities.  The bill has passed the House and was referred to Senate Finance where it is awaiting a hearing.

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 many changes since its introduction.  The current version would allow the Department of Environmental Conservation (DEC) to issue a two-year permit to the cruise ships to exceed waste discharge limitations if they can demonstrate that it is not economically or technologically feasible to meet the required water quality standards. The bill also establishes a science advisory panel to assist and advise DEC in conducting the analysis and preparing reports on methods to prevent pollution. The most recent version sets a time limit of 2014 for sunsetting of both the science panel and the permitting.  This compromise version is now on its way to Senate Finance and is poised to pass by the end of the session.

HB 194 Low-Speed Motor Vehicles – Rep. Wilson (R-Wrangell)
HB 194 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.  It passed out of House Judiciary and is now in the Rules Committee awaiting scheduling on the House Calendar.

HB 210 Izembek State Game Refuge Land Exchange – Rep. Edgmon (D-Dillingham) | Rep. Johnson | Rep. Olson | Rep. Wilson | Rep. Neuman | Rep. Austerman
HB 210 designates Kinzarof Lagoon as part of the Izembek State Game Refuge. It authorizes a land exchange with the federal government in which state land adjacent to the Izembek National Wildlife Refuge and within the Alaska Peninsula National Wildlife Refuge is exchanged for federal land to serve as a road corridor through the Izembek National Wildlife Refuge and federal land located on Sitkinak Island. HB 210 was heard in House Resources on Friday where it was passed out of committee.  On Saturday it passed out of the House and on to the Senate. 

HB 214 Grant authority for air quality – House Finance Committee
HB 214 authorizes the Department of Environmental Conservation to award grants for the control of air emissions or the development and administration of air quality control programs. HB 214 was heard in House Finance, its only House Committee referral, on Tuesday, where it passed.  It is now in the Rules Committee awaiting scheduling on the House Calendar. 

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)
HJR25 is 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. The resolution focuses on “high elevation lakes and run of river systems that have few or no negative environmental effects”. HJR25 is on the House Calendar for Monday.

New In Town

SB 183 Grant Authority For Air Quality – Sen. Finance Committee
SB 183, a companion bill to HB 214, was introduced on Monday and would authorize the Department of Environmental Conservation (DEC) to award grants for the control of air emissions or the development and administration of air quality control programs.  It has already been heard in Senate Finance, its only Senate committee referral and is on the Calendar for Monday.

SB 185 Creating Department of Energy/AEA Board – Senate Energy Committee
SB185 would establish a Department of Energy that would house the Alaska Energy Authority, the Alaska Natural Gas Authority along with the home energy and weatherization programs.  It is understood that this bill is not going to pass this session and is intended more as a conversation starter and much of the work will be done over the interim. The bill has been referred to Senate Energy, Resource and Finance Committees. 

HB 219/SB 186 Renewable Energy Grant Requirements – House and Senate Energy Committees
HB219 changes the requirements of the renewable energy grant fund to give preference to projects that are likely to have a financial benefit that exceeds the amount of grant funds received.  The bill was referred to the House Special Committee on Energy, Resources and Finance Committees.

HB 224  Muni Tax Exemption For Energy Efficiency – Rep. Kawasaki (D-Fairbanks)
HB224 give municipalities the power to partially or wholly exempt an improvement to real property that, for the year for which the exemption is granted, is also eligible for a federal tax credit for energy efficiency. The bill was referred to Community and Regional Affairs and Finance.

Calendar – 24 Hour Rule in Effect

Once a conference committee is formed to hammer out the final budget details, the 24-hour rule goes into effect.  This happened on Wednesday, meaning that committees only have to give 24-hours notice, instead of five days, before hearing a bill. The best way to keep track of what is being heard is to check the Committee schedule every day.  Here’s what’s been scheduled so far…