Conservation Watch 2011 #2 January 25th, 2011

State of the State: A Conservation "Close-up"

One evening every year the Governor of Alaska travels from his office on the Third Floor of the Capitol building to the House Chambers on the second to deliver the State of the State address.  When he finishes this short walk, he enters a Joint Session of the Alaska Legislature.  Some asked the question how do you fit 60 fancy chairs in space intended for only 40.  Well, the smart folks that run the House and Senate floors solved that problem long ago which lets the rest of us focus on what Gov. Parnell had to say.  

At the end of the Governor’s address, we were left with few surprises.  As promised during his campaign, Gov. Parnell big issues are: resource development, investing in Alaska’s energy infrastructure, supporting economic development by cutting taxes, and creating jobs with state infrastructure projects.   For conservationists, this is a mixed bag.  

We like that Gov. Parnell wants to continue to invest in smart energy programs like the Renewable Energy Grant fund and the Weatherization program.  We are concerned about environmentally challenging resource extraction projects that featured prominently in his speech and a clean 21st Century economy only had a supporting role.  Like most Alaskans, Voters supports resource development done in an environmentally responsible way so we will be keeping a close eye on the progress of the Governor’s priorities. 

Budget Fights Already?

House Finance was pretty much the only committee up and

 running during the first few days of session and tensions are already mounting.  The Governor’s Office of Management and Budget presented the Governor’s budget Wednesday, and then the legislature’s high-powered accountants, Legislative Finance, presented their version the following day.  Apparently, numbers don’t always tell the truth because OMB and Legislative Finance don’t agree on whether the Governor presented a balanced budget or not.  The claims are that the Governor has introduced a budget $25m over projected revenue for the 2012 Fiscal Year, and is digging into savings accounts to make it appear we have a surplus.   If true, many legislators may not take kindly to Gov. Parnell talking about restraining government spending and establishing a spending limit in the State of the State.  Voters will be tracking what always and inevitably turns into a fight, budget talks.

Committees are Organized, Scheduled, and Ready to Go

After a week of legislators mingling and settling in, the legislature is now getting to work.  Most committees are holding their first hearing this week and despite the introductory nature of these meetings some important overviews and presentations are going on.

Session's First Look at Susitna

Legislators will begin taking a close look at the Susitna mega-hydro project.  Senate Resources and House Energy will both have the Alaska Energy Authority before them to present why Susitna is the preferred project.  Don’t expect too many fireworks.  Legislators are trying to get up to speed on this project that became a major priority of the Governor only two months ago.  Senate Resources will be meeting at 3:30p, Wed., January 26th, and House Energy at 3:00p, Thurs., January 27th.  Voters will be in the room and you’ll get a full report next week.

Mt. Spurr Geothermal

Yesterday Ormat Technologies presented on their

proposed Mt. Spurr project to both Senate and House Resources.  For those of you who haven’t tracked the project closely, Ormat is planning to build a 50-100MW geothermal plant near, well, Mt. Spurr which is across Cook Inlet from Anchorage.  The project seems to be economically feasible as it would provide power at 12-13 cents / kWh to utilities and price would rise 1.5% annually, far lower than the expected inflation of fossil fuels, but Ormat and the utilities have yet to sign a Power Purchase Agreement.  

Beyond providing an overview, Ormat asked the legislature for help making the project more economically viable.  They asked for support building transmission lines and an access road, establishing a 20% tax credit, or both.  Voters will be tracking this project closely as it promises to provide reliable, consistent renewable energy to the Railbelt. 

Conservation Bills Overview

Last week the Conservation Watch listed the conservation bills that have been introduced to date and promised to provide analysis of each of those bills this week.  Well, we’re living up to that promise.  Below you’ll find useful and factual information about the specifics of each bill.  If you ever want more information, give us a call!

SB 20—Sen. Wagoner is sponsoring this legislation to establish a new type of fishing permit, the “personal use fishing permit”.   Currently, sport fishing permits encompass personal use.  This bill would change that.  Fees collected for the $25 personal use permit would be deposited into a new fund that will have it’s money directed to personal use fishery projects and programs.

SB 24—Sen. McGuire is proposing substantial changes to how sport fishing is regulated in Alaska.  The bill would create the Sport Fishing Guide Services Board.  The Board is tasked with creating guiding licensure and certification, and the Board would have the authority to place limits on the number of sport fishing licenses for resource conservation.

SB 25—This is a big ticket appropriation bill that would funnel $2 billion to AIDEA during fiscal years 2013 and 2014.  Beyond providing an incredible amount of money to AIDEA, the bill would also expand the agency’s authority to fund energy projects.  This is no guidance on what type of energy projects should be funded.

SB 27—Sen. Wielechowski introduced this bill and it would accomplish a conservation goal for the session.  The bill would phase out the sale of a dangerous class of chemicals known as PBDEs that are found in many household items including mattresses, TVs, and computers.

SB 32—The bill, also sponsored by Sen. Wielechowski and also another conservation community priority, makes a $10m appropriation to capitalize the Alternative Energy Revolving Loan Fund.  The fund would provide loans at premium rates to businesses and non-profits to complete energy efficiency projects.  

SB 37—Sponsored by Sen. Thomas, the bill would create a new transportation infrastructure fund and appropriate $1 billion into the fund.  Motor fuel taxes and vehicle registration fees would be directed into the fund.   A provision of the bill would expand the Dept. of Transportation’s duties to promote and support public transportation.  The bill is very similar to one that Rep. Peggy Wilson introduced last session and has reintroduced this year.

HB 18—Rep. Kerttula introduced this bill establishing the Alaska Public Garden Day on the Saturday before Memorial Day each year.  Besides promoting Alaska’s beautiful public gardens, it highlights the gardens’ role in promoting environmental stewardship , education, plant conservation,  recreation, and research.

HB 20—Rep. Stoltze is proposing changes to the order in which catch restrictions are placed fisheries.  The bill would make personal use fisheries the last to receive a restriction to reach a management goal.

HN 30—Rep. Peggy Wilson has re-introduced her Transportation Infrastructure fund bill.  If passed, money from the motor fuel tax, vehicle registration fees, airport leases, and airspace leases into the fund.  A provision of the bill would expand the Dept. of Transportation’s duties to promote and support public transportation.

HB 31—The second in a set of transportation fund related bills from Rep. Peggy Wilson.  This one would appropriate $1b into the infrastructure fund.

HB 32—Rep. Millet proposes to change the royalty payment rates for oil and gas and gas only leasing.

HB 36—Rep. Kurt Olson introduced the bill to create a small business energy efficiency grant fund to be administered by the Alaska Housing Finance Corporation.   Structures valued at less $1m would be eligible for grants.

HB 37—Rep. Kurt Olson is sponsoring this bill to change net metering law in Alaska.  The bill would do a number of things including the following:  limit all net metered generation on a grid to 1.5 percent of total generation on the grid; limit nameplate capacity for consumer projects to 25kW; prohibit consumer generators from receiving compensation for electricity generated to the non-firm power cost; and requiring utilities to pay consumer generators the non-firm power cost tariff.

HB 57—Rep. Seaton introduced this bill to establish a grant fund for bicycle safety and transportation programs within the Dept. of Transportation.  Municipalities and non-profits could apply for grants.

HB 58—Rep. Seaton has re-introduced a bill to reform the mining royalty and tax structure.  This is a fairly complicated bit of legislation but, generally, it increases the tax and royalty rates and decreases the time royalty and lease rate can be locked in.

HB 59—Rep. Seaton is offering this proposed amendment to the Commercial Fishery loan program.  The bill would provide a 2% discount on the interest rate of the loan if at least 50% is used for product quality or energy efficiency improvements, and the improvements use products manufactured in-state. 

HB 60—Rep. Seaton, as it turns out, was really on top of filing his bills in order (he locked down HB 57-60).  This bill, though, would change the permitting procedures for geoduck farms.  It would prohibit a permit denial for a geoduck farm because geoducks do not occur in the wild.  However, when a permit was issued for a farm without wild geoducks being present, no farming could occur in the intertidal zone.

HB 63—Rep. Holmes introduced the House companion to SB 27 that would phase out the sale of PBDEs.  

HB 85—Rep. Seaton filed this bill which would create a reporting requirement for those who have a mixing zone permit.  The report would include the amount of the pollutant discharged but not water temperature, acidity, alkalinity, and dissolved oxygen levels.  The bill also creates a strict prohibition on mixing zones in salmon streams.

HB 85—Rep. Gara filed this bill which would create a similar prohibition on mixing zones in salmon streams.  It does not include a reporting requirement as Rep. Seation’s HB 85 does.

HB 91—Rep. Peggy Wilson introduced this bill that would require the safety standards for logging close to areas of human habitation, particularly in steep areas.