Conservation Watch #14 - 4/22

26th Legislative Session Recap:

In Like A Lion - Out Like A Lamb
Energy Behind Energy Legislation
Despite Budget Worries - Renewable Energy Remains Priority
Federal Energy Stimulus Funds
Cruise To Compromise
The Take-Home
Senate Bills
House Bills

In Like A Lion – Out Like A Lamb

If we are to take anything from this 90-day session, it is that passing legislation is at least a two-year endeavor.  With that in mind, we take great satisfaction in the positive outcomes from the session and truly appreciate the Legislature’s interest in these critical issues: 

• Introduction of legislation forwarding our three priorities:
  

• Various Energy Efficiency bills (SB121, SB167, HB148, SB119)

• SB150: Emerging Energy Technology Fund

• SB152: Transit Authorities

• ACA and ACV’s contribution to the dialogue on creating a statewide energy plan.
  
• $25 million still in the Capital Budget for the Renewable Energy Fund, despite declining revenues and an overall shrinking budget. 
  
• All Federal Stimulus energy money appropriated by the legislature.
  
• Successful compromise on HB134, a bill addressing waste discharge from cruise ships.

Legislators have said this year is a time for thoughtful reflection on energy matters. While none of our priority bills passed this year, all three were introduced and two moved to the Senate Finance Committee. They are now poised for consideration and action when the session starts next January.  Because Alaska works in two-year legislative cycles, any bills not passed this session will be held over the summer and taken up again in January.  That means in the interim we can gather more support for our legislative priorities before the Legislature gavels back in sometime in mid-January 2010.

Energy Behind Energy Legislation

In other good news, we helped to start a very serious dialogue about Alaska’s energy plan.  Of the 440 bills introduced this year, over 50 related to energy.  While we do not agree with all 50, many of these bills have our fingerprints on them including the bill proposing a Department of Energy - a logical reaction to concerns expressed by ACV, ACA and many others about the need for a more coordinated, “one-stop shopping” approach to energy governance.  Legislators have indicated that they’ll use their time over the interim and during next session to keep talking about it and potentially turn these ideas into a comprehensive energy plan for Alaska.  This will take a lot of work and a good plan will hinge on input from Alaskans asking for energy efficiency, conservation and renewable energy production.

Despite Budget Worries – Renewable Energy Remains Priority

The Renewable Energy Fund twice escaped the budget cutting frenzy.  At the start of the session the $100 million in Alaska Energy Authority (AEA) proposed projects came before the Joint Legislative Budget and Audit Committee (LB&A) for consideration. The Committee decided to conduct five random reviews of recommended projects before making their decision to ultimately approve the projects.  According to the bill passed last year, HB152, Legislators were supposed to appropriate $50 million a year for 5 years to a Renewable Energy Fund for grants to promote renewable energy in Alaska.  Due to the budget windfall last year an additional $50 million was added to the fund. The Governor’s original budget had the $50 million, but her revised budget had that amount cut in half to $25 million and it was uncertain until the end if any money would make it into the final budget for the Renewable Energy Fund.  The budget passed by the Legislature late on Sunday included $25 million for the Renewable Energy Fund.  Additionally, clarifying language included in the bill gives AEA the authority to spend the funds on the first $25 million worth of recommended projects without returning to the Legislature for approval.

Bottomline: $125 million going to fund 107 renewable energy projects around the state. 

In other budget related news, $750,000 originally slated for a conference on the economic impacts of ESA listings from last year’s budget was reappropriated to also include addressing the effects of climate and environmental change on the state for the fiscal years ending June 30, 2009, and June 30, 2010.  Other budget items of interest:

• $1 million to the Alaska Housing Finance Corporation for energy efficiency monitoring research. 
  
• $10 million to the University of Alaska for Climate Projects
  
• $5 million to the University of Alaska for Energy Projects

Federal Energy Stimulus Funds

All of the Federal stimulus funds available through the American Recovery and Reinvestment Act of 2009 for energy related projects were accepted by the Legislature.  Intent language states the federal stimulus money not be expended for any purpose that creates an obligation for the state to replace those funds after they have been exhausted and that stimulus money for energy or energy-related programs be used to help reduce energy costs of Alaskans whenever possible and practical.  To that end, unless vetoed by the Governor, the Alaska Housing Finance Corporation will receive:

• $ 9,593,500 in Energy Efficiency and Conservation Block Grants,
  
• $ 28,563,000 for the State Energy Program, and
  
• $ 18,466,200 for the AHFC Weatherization Program.  For a total amount of $56,622,700.  

The Governor has threatened to veto these funds in the past but it is unclear if she has changed her opinion as more information has become available.

Cruise to Compromise

One piece of legislation we did not expect to see this session was HB134.  As it was originally drafted, the bill would have allowed the cruise industry to continue using a mixing zone for wastewater coming off their ships into Alaskan water.  The wastewater discharge rules for cruise ships were set by an initiative passed by voters several years ago and were scheduled to go into effect in 2010.  Despite the new developments and technology in wastewater discharge already spurred by the initiative, the cruise industry claimed that they would be unable to meet the standards because the technology is not yet commercially available. After several rounds of revisions, a compromise bill was passed that gives the cruise industry more time to comply with water quality standards without diluting the intentions of the voter mandated initiative.   

The Take-Home…

In a year when lawmakers repeatedly stated that their only goal for the session was to pass the budget and deal with the Federal stimulus funds, conservation groups can take pride in helping to start the conversation around Alaska’s energy plan. There is still much work to be done. Most notably we need to thank Legislators for their hard work on the stimulus funds and for giving $25 million to the Renewable Energy Fund.  Make sure you use this interim period to visit your Representative and Senator to thank them for their support of renewable energy funding and talk to them about the importance of energy efficiency, public transit and promoting research and development for greater use of renewable energy sources in Alaska.  See you in 2010!

Senate Bills

House Bills