Conservation Watch #21 3/02/2010

Week seven pushes past the mid point of the session. A slow week ahead as legislators head off to attend the Energy Conference. New bills abound.

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In This Issue

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A quieter week while many legislators leave town to attend the Energy Conference. The pressure will return with a vengeance next week with less than half of the session remaining. New bills abound.

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Compressed Natural Gas Vehicles

Chesapeake Energy American Chopper CNG bike, courtesy KrishSpeak from flickr, originally uploaded by Current News Stories

Compressed Natural Gas: Gas is for burning, oil is for selling

Natural gas is a relatively clean-burning abundant source of energy for Alaskans. The state’s future as an energy exporter and world leader pivots on our ability to develop our rich natural gas resources. As the Cook Inlet gas fields wane, new sources must be tapped and new markets developed to ensure the cost-saving that come with economies of scale.

Wold wide there are more than 7 million NG vehicles on the road

State legislators are now contemplating legislation that allows the state to outfit its fleet with CNG vehicles, setting precedent and building the infrastructure needed for a state-wide CNG fleet. Currently, Alaskans face a dearth of refueling stations when contemplating purchasing a CNG vehicle. It is believed that sufficient number of state vehicles running on natural gas, a stable customer, will incentivize the building of private CNG stations.

CNG vs LNG

Compressed Natural Gas (CNG) does not require the ultra-high pressures and / or low temperatures to make and sophisticated structures to store liquefied natural gas. The process of filing a CNG tank is a far less energy-intensive, volatile and sophisticated process. In fact, CNG vehicle owners in Alaska and around the world currently fill their cars from the line leading to their homes. It is a process as simple as plug-in hybrid’s, and provides at least a 240 mile range.

Anchorage and Mat-Su Valley residents could potentially fill directly from an Enstar line. However, the process typically is slow and not available away from home.

12 thousand students ride NG busses to school in Oregon

Home refueling takes place in New York and California and by at least one gentleman in the Mat-Su Valley, Paul Farnsworth. Farnsworth was featured in an article by Anchorage Daily News reporter Rindi White in February last year. The article said Farnsworth received $5,000 in tax credits to offset the extra cost of CNG conversion and the fueling station. Now however, Farnsworth pays about half the price per mile as an average small sedan.

http://www.adn.com/2009/02/24/701206/valley-man-goes-green-for-anchorage.html

New Developments in CNG Technology

As an emerging technology, CNG storage systems vary from low-pressure, metal-organic crystalline structures that trap Methane (CH4) in microscopic pores to light, crush-resistant carbon fiber cylinders that store large quantities of highly compressed NG.
CNG vehicles are commonly used in the four rapidly developing countries commonly referred to as BRIC: Brazil, Russia, India and China. Most notably are India, China and Brazil, each in the top ten countries with the highest percentage of CNG vehicles. Iran and Pakistan also lead the world in CNG vehicle use. Iran has developed its own CNG technology and is said to prefer burning the country’s natural gas and selling its oil. A similar argument could be made for Alaska.
Multi-fuel engines that give the option to burn ethanol, gasoline and natural gas.

Advantages of CNG

Clean burning, and Alaska has a whole bunch. Alaska’s population center, Anchorage and the Mat-Su Valley is already outfitted with NG infrastructure.
Reports of 9,000 miles between oil changes and CNG

trucks with 1 million miles on their odometers.
CNG produces significantly lesser emissions of pollutants like carbon dioxide (CO2), hydrocarbons(UHC), carbon monoxide (CO), nitrogen oxides (NOx), sulfur oxides (SOx) and particulate matter (PM), as compared to petrol.
Natural gas vehicles produce 25 percent less carbon than their gasoline counterparts. Alaska has the opportunity to tap in to its relatively-clean natural gas reserves while the state’s renewable energy economy matures. Developing natural gas markets improves the viability of a natural gas pipeline, the profitability of existing infrastructure.
CNG vehicles can run off of any methane (CH4) source. Such as from the Anchorage Municipal landfill, which, Sen. Fred Dyson (R)-Eagle River said, produces the methane equivalent of 5,000 gallons of diesel a day. This much methane, the Senator said, could power the entire public and private vehicle fleet in Anchorage.

Drawbacks

Because natural gas is not as dense as liquid hydrocarbons, its storage takes up much more space in a CNG vehicle, especially converted vehicles. Purpose-built CNG vehicles hide the fuel tanks under the body leaving room for familiar trunk space and back seats. Being less dense also means natural gas has less energy density. CNG cars have been known to be sluggish compared to gasoline vehicles. Performance is commonly improved with exhaust gas recirculation, turbocharging and intercooling and three-way catalytic converters. In theory a CNG could have higher power output than a petrol vehicle due to CNG’s high octane level.
Alaska needs to develop its CNG refueling capacity. As Paul Farnsworth said in the ADN article about his CNG car, he is currently unable to travel to Seward, Homer, Valdez or Fairbanks from the Valley due to lack of infrastructure. For improve convenience, CNG vehicle owner need fast-fill retail CNG sites scattered around the state.

Legislation to the Rescue

Sen. Fred Dyson (R) – Eagle River testified to the Senate Resources Committee recently that making compressed natural gas work in Alaska is a chicken and egg kind of thing. In CNG delivery technology, cost and speed are at odds.

“The fast-fill compressors are a bit expensive and until there’s a network of them folks are much less likely to convert to natural gas,” Dyson said.

Senate Bill 34: Compressed Natural Gas for State Vehicles directs the Department of Transportation and Public Facilities to prepare a report on the feasibility of using compressed natural gas to power vehicles in the state, including vehicles owned or operated by the state, and including in that study, if warranted, a pilot program proposal for powering some vehicles owned or operated by the state with compressed natural gas. Sponsored by Sen. Fred Dyson (R)-Eagle River the bill was easily passed out of (S) Transportation Committee and on to (S) Energy then (S) Finance Committees. Dyson also successfully submitted the bill as an amendment to the Senate’s omnibus energy bill, SB 220 Energy Efficiency / Alternative Energy.

Dyson’s bill requests the Department of Transportation and Public Facilities to report on the feasibility of using CNG in vehicles owned or operated by the state of Alaska. If warranted, the report would also propose a pilot program for powering some state vehicles with CNG.

If, Sen. Dyson believes, the DOT/PF comes back and says that embracing CNG is a no-brainer, once the public sector starts a pilot project of high-speed compressors, the private sector will quickly follow.

“All we’re doing here is getting us going,” Dyson said. "If we don’t do this now we’ll be answering the question 'Why haven’t you guys done this?' It’s well past time to get going.”

ALSO:

SR7 Relating to vehicles powered by propane or compressed natural gas.

SR10 Supporting expansion of the use of domestic natural gas and alternative energies and urging agencies to use vehicles that run on compressed natural gas.

Sources:

GAIL (India) Limited – A Government of India Natural Gas Undertaking

http://www.gailonline.com/gailnewsite/businesses/citygasdistributionadvantage.html

Gavel to Gavel KTOO (final ten minutes)

http://www.ktoo.org/gavel/new/player.cfm?evid=SRES100218A

Senate Bill 34

Wikipedia

http://en.wikipedia.org/wiki/Compressed_natural_gas#cite_note-GAIL-11

http://en.wikipedia.org/wiki/NGV

http://en.wikipedia.org/wiki/List_of_natural_gas_vehicles

Legislative Potpourri

Vital Invasive Species Response Pushed in Capitol Event

Addressing a critical issue that continues to grow in Alaska, House Bill 12 took center stage at a Friday Lunch and Learn regarding invasive species across the state.

Sponsored by Representatives Craig Johnson and Bob Buch, the bill seeks to establish the Alaska Council on Invasive Species within the Department of Fish and Game. It would be the responsibility of the proposed 14-member council to coordinate the state effort to combat invasive species already in Alaska and prevent further infestation through trade, tourism, travel, and other delivery pathways. A triennial strategic plan would be the cornerstone of those efforts, and the council would be given the right to seek cooperation with and funding from federal and other agencies to carry out Alaska’s defense.

Invasive species cost the United States hundreds of billions of dollars a year. Relatively isolated, Alaska has thus far escaped much of the destruction non-native species can cause. However, decreases in the salmon population due to predation from the northern pike and competition from the Atlantic salmon provide evidence of how Alaska’s delicate natural and environmental balances can be offset by even minimal introduction.

With increased interconnectedness promising even greater species migration even in Alaska, the time for action is now. HB 12 is a necessary positive first step in protecting Alaska’s environment and economy, and its passage is strongly supported by Alaska Conservation Alliance.

From the Blog

Click here to be redirected to our new Alaska Conservation Blog.

Monday, March 01, 2010

3:38 PM - Propelled By Fears of Negative Economic Impact, HJR 40 Moves On

Today the House passed House Joint Resolution 40: Cook Inlet Kachemak Beluga Population. The bill now moves to the Senate.

The resolution, sponsored by Representative Charise Millett and co-sponsored by a host of other Republican legislators, opposes the designation of 3,000 square miles of Cook Inlet as critical habitat for the endangered beluga whale. The arguments for passage of HJR 40 have centered on the fear that Alaska cannot both protect the Beluga and continue to grow our economy. This claim is in dispute.

The population of beluga whales was estimated at 321 in 2009, and has been on the rise since outcries over their endangerment caused regulations be put in place over the past decade. By designating critical habitat, the National Marine Fisheries Services says it aims to further that protection to ensure continued healthy growth of the still endangered population.

A host of testifiers lined up on Wednesday to argue against that protection on Wednesday.

Members of the commercial and sport fishing industries all the way through representatives from the oil and gas sector have spoken out against the designation, claiming it will have major negative economic consequences. Although it is unknown what effect the continuation of current use practices and further pollution will have on the beluga whale, it was made very clear that any further regulation through a critical habitat designation will have negative economic repercussions.

This economic forecast carried the day as the resolution, with overwhelming support in the hearing, was moved out of committee. Carrying Zero Fiscal Note, HJR 40 passed out of the House on March 1st, after its third reading and a Reconsideration request by Rep. Kyle Johansen. On reconsideration, one no vote switched and the Bill passed 31 Yes to 2 No. The current version, CSHJR40(RES), is headed for the Senate.

Thursday, February 25, 2010

3:45 PM -- Fly Over. Fly By. Fly Around. And finally, the 2010 Legislative Fly-In

For those folks who have ever lived or worked in Juneau, you know what I’m talking about: the plane is angled on a downward descent as you prepare to land in the Capitol of Alaska. You hear the wheels come down and the wing flaps moving as the pilot readies for touchdown. Suddenly, there it is: the fog. With a sudden lurch of acceleration, the plane rapidly ascends and you know, before the voice on the intercom says anything, that landing in Juneau is just not in the cards. The only question is, where are we headed now?

In the years the Alliance and Voters have been hosting the legislative Fly-In, bringing to Juneau Alaskans from across the state to advocate on conservation issues, the glacial fog has never reaped such havoc as this one. While a large group of participants did make it into town, most were scattered throughout the Southeast, Ketchikan, Wrangell, Petersburg, Sitka and even Seattle. In spite of Mother Nature, the 2010 Fly-In was undoubtedly a success as participants made the most of all opportunities and a group of 12 stranded in Sitka even managed to proceed with the agenda in the first ever Sitka Fly-In! Many eventually did make it to the legislative capitol and were able to meet with their elected officials, participate in the breakfast reception and Alaska

Conservation Alliance’s energy efficiency press conference on the REEL in Alaska Roadmap release (link goes to Alaska Conservation Alliance). A big thank you to all of our Fly-In participants for your flexibility, support and willingness to roll with weather and make the most of a foggy situation.

Bill Spotlight

HR 13 Anchorage Vehicle Inspection Program encourages the repeal of the Anchorage Vehicle Inspection and Management Program. Sponsored by Rep. Bill Stoltze (R)-Chugiak/Eagle River the newest version of the bill, CSHR 13(RLS), passed out of the House and is awaiting transmittal to the Governor.

A Notice of Reconsideration by Rep. Beth Kerttula slowed the bill down a bit. It eventually passed by a vote of 27 yes to 11 no.

The bill picked up a long list of co-sponsors: Reps. Bob Lynn, Mike Hawker, Nancy Dahlstrom, Craig Johnson, Charisse Millett, Jay Ramras, Carl Gatto.

HB 399 Community Health Assessments an Act establishing a health impact assessment program in the Department of Health and Social Services; and providing for an effective date.

Sponsored by Reps. Sharon Cissna, Max Gruenberg, Woodie Salmon, Beth Kerttula, the bill was referred to (H) Health and Social Services then to Finance. HB 399 was released on 02/23/10.

HJR 45 Oppose Federal Cap and Trade Legislation urges the United States Congress not to enact Cap and Trade legislation. Sponsored by Rep. Bill Stoltze, the bill is in (H) Finance. Released on February 17th, the bill passed out of House Energy Committee last week with Due Pass votes from Reps. Nancy Dahlstrom, Pete Petersen, Kyle Johansen, Chris Tuck, Bryce Edgmon, Charisse Millett.

The bill has added a long list of co-sponsors: Reps. Charisse Millett, Mike Chenault, Nancy Dahlstrom, Carl Gatto, Wes Keller, Kurt Olson, Peggy Wilson, Mike Hawker, Jay Ramras, Bob Lynn, Mark Neuman, Kelly, Kyle Johansen, Bryce Edgmon

HB 264 Pipeline from Outer Continental Shelf is an Act Relating to the Right-of-Way for, and a State Property Tax Exemption Concerning, a Pipeline Transporting Oil Produced on the Outer Continental Shelf to an Established Pipeline in the State. Sponsored by Rep. Jay Ramras (R)-Fairbanks the bill was referred to Community and Regional Affairs then Resources then Finance committees. Released as a prefile in early January it passed out of CRA last Friday.

HB 276 Fort Rousseau Causeway Historic Park An Act amending the description of parcels within the Fort Rousseau Causeway State Historical Park; and providing for an effective date. Sponsored by Rep. Peggy Wilson, the bill passed out of the House on February 10th and referred to (S) Community and Regional Affairs Committee. Last Wednesday HB 276 passed out of CRA and was referred to (S) Rules Committee. It is not scheduled for hearing.

HB 296 Energy Efficiency Bonds; Loans; Fund an Act authorizing and relating to the issuance of bonds by the Alaska Housing Finance Corporation; establishing the Alaska energy efficiency revolving loan fund and relating to the fund; authorizing municipalities and the State of Alaska to borrow money from the Alaska Housing Finance Corporation for the purposes of the Alaska energy efficiency revolving loan fund; and providing for an effective date. Released the first day of the session, HB 296 was referred to (H) Energy then Finance Committees. It was sponsored by (H) Rules Committee by Request of the Governor. HB 296 passed out of Energy Committee last Friday.

More on HB296 from the Alaska Conservation Alliance Conservation Blog

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New plan for state building energy efficiency retrofits comes into focus

A new plan for energy efficiency retrofits to state buildings is gaining momentum in the legislature. The concept was first introduced in January at the governor's request as HB 296, but was also adopted yesterday by the Senate Resources Committee as an amendment to SB 220. This amendment would create an energy efficiency revolving loan fund managed by the Alaska Housing Finance Corporation (AHFC), which would provide loans to state agencies and municipalities to complete energy efficiency retrofits. The process would involve an innovative financing method that allows state and municipal building managers to pay back the loans through energy savings resulting from the retrofits.

Here's how the AHFC describes how this program would work:

As an example, a municipal government or school district would have an energy audit done on their building. Let’s say the building needs $120,000 to make it more energy efficient and that those improvements would reduce their energy costs by $20,000 a year. They would take a loan out with AHFC to do the work and then pay the loan back with the funds available due to the savings achieved through the energy efficiency improvements. After the loan is paid back those funds would be available to that government for other purposes or to reduce the size of its budget. This would result in less energy used by public buildings as well as ultimately saving public money.

There's a bit of an interesting back story to this fund. Remember when former Gov. Palin rejected the State Energy Program funds in the federal Stimulus Bill last year? The legislature overrode her rejection, and Gov. Parnell decided to use $18 million of these stimulus funds for energy efficiency retrofits to public buildings. This new bill/amendment would allow the AHFC to turn that $18 million into up to $250 million by selling bonds on the bond market. The $250 million would become the start-up capital for the Energy Efficiency Revolving Loan Fund.

This is a new approach to retrofits to public buildings in Alaska--one that incorporates some of the benefits of the performance contracting language previously featured in SB 220 and SB 121. The main difference is that the state (through AHFC) will be essentially being running the performance contracts instead of private businesses--though this bill would still create a lot of private sector jobs, especially for companies that complete energy audits on commercial buildings and for construction workers completing these retrofits.

Dan Lesh, Strategies for Alaska's Future Legislative Liaison for Energy Efficiency said, "I'm optimistic about this new concept and will keep a close watch as it moves through the Senate within SB 220 and in the House as HB 296. It has the potential to get these retrofits going more quickly." Stay tuned for more details.

This Week in Committee

 Tuesday, March 2, 2010

(S)Natural Resources, Finance Subcommittee

1:30 PM Sen Conf Rm 103 TSB

Division of Mining, Land and Water

Division of Geological and Geophysical Services

Testimony <Invitation Only>

(S)Environmental Conservation, Finance Subcommittee

3:30 PM Fahrenkamp Rm 203

Division of Water (if necessary)

Wednesday, March 3, 2010

(S)Resources Standing Committee

10:00 AM Butrovich Rm 205

-- Time Change --

Overview: AHFC Weatherization Program

TELECONFERENCED

Thursday, March 4, 2010

(H)Finance Standing Committee

1:30 PM House Finance Rm 519

Bills Previously Heard/Scheduled

TELECONFERENCED

Friday, March 5, 2010

(H)Finance Standing Committee

1:30 PM House Finance Rm 519

Bills Previously Heard/Scheduled

TELECONFERENCED

Monday, March 8, 2010

(S)Administrative Regulation Review, Joint Committee

3:00 PM Capitol Rm 17

(18 AAC 32) Proposed Regulations Relating to Cheese Production -- Public Testimony - (11 AAC 65.010 - 11 AAC 65.900, particularly 11 AAC 65.010)

Regulations Relating to Personal Use Cabin Permits

-- Public Testimony –

Executive Session

New in Town

HB 362 In-State Use ff State Royalty Oil

Tweet of the Week

Follow Alaska Conservation Voters on Facebook and Twitter!

Thursday, February 24, 2010

This week the Alaska Conservation Alliance (sister organization to the Alaska Conservation Voters) released the REEL in Alaska Roadmap. The REEL Roadmap shows that Alaska could create nearly $1 billion in economic output and over 9,000 jobs by embracing energy efficiency and clean energy.

1:48 PM - REEL in Alaska Roadmap- http://akvoice.org/policy-positions/reel-in-alaska-roadmap Via web

12:54 PM - News Coverage of the release of the REEL Report with ACA's staff! The coverage starts at about 5 1/2 minutes: http://tinyurl.com/y95oej5

12:47 PM - Report Organized by AK Conservation Alliance shows potential for energy savings and job creation in the railbelt: http://tinyurl.com/yf7l9xo

Additional Resources

- Alaska Conservation Voters Environmental Priorities

- Voters' Legislative Scorecard

- The Alaska Conservation Blog

- Alaska Conservation Alliance, our sister organization

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Conservation Watch #21 3/02/2010

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In This Issue

Compressed Natural Gas Vehicles

Sources:

Legislative Potpourri

From the Blog

Bill Spotlight

This Week in Committee

New in Town

Tweet of the Week

Additional Resources

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