Conservation Watch #4 - 2/9

Debate Continues over the $100 Million for Renewable Energy Projects

Last year the Legislature passed HB152, a bill to create the Renewable Energy Fund, and appropriated $100 million for funding renewable energy projects.  In doing so, they placed their trust in the Alaska Energy Authority (AEA) and the Advisory Committee to create a mechanism for choosing the best projects for funding and managing the grants. While it is important to exercise caution with the state’s money, legislative uncertanty is raising concerns about the fate of funding for 77 renewable energy projects.

Senators and Representatives on the Joint Legislative Audit and Budget Committee were quick to ask questions about the process AEA went through to choose projects for funding.  Some also wondered if we are getting the cart before the horse by not having a full energy plan in place before making major spending decisions.

To address these concerns, Steve Haagenson and Peter Crimp from AEA explained the lengthy review process these projects went through at the Legislative Budget and Audit Committee meeting last week.  They described the three stages of project review and agreed to the LB&A Committee’s request to do their own audit of AEA’s process. Chris Rose of REAP, an advisory committee member, also talked about the process and outcomes. In response to the planning issue, Haagenson pointed out that the perfect can be the enemy of the good – there is no compelling reason to delay these carefully considered projects.

Representative Thomas had strong words for the committee - pointing out that the faster the state acts to put money towards renewable energy projects the faster we start addressing the energy crisis affecting Alaska.  His concern was focused on rural Alaskan communities struggling with volatile gas prices where even small projects can make a big difference in a monthly energy bill. Please take a moment to thank Representative Thomas for his unwavering support for the Renewable Energy Fund and the $100 million in funding for the project.

The Anchorage Daily News also followed up with their own critical take on AEA’s process, raising questions about the agency’s ability to oversee 77 projects.  However, what the article does not convey is the fact that there are already mechanisms in place to safeguard that state’s money. In other words - this is not AEA’s first rodeo.

However, the ADN editorial was right about one thing: the $100 million should still be invested in renewable energy despite a tight budget this year.  The editorial points out that “the oil price spike showed that many parts of Alaska are dangerously dependent on high-cost energy.”  We also will continue to push hard for the next installment of $50 million proposed in the Governor’s budget.

The Committee will meet again on Tuesday, February 17th to make a final funding decision on the $100 million for renewable energy projects.  According to Chair Senator Meyer, the committee is hoping to approve ‘most, if not all’ of the projects on AEA’s list.

Under HB 152, the process calls for detailed consultation with AEA but the final go or no go decisions are in the hands of the Administration - unless the money is re-appropriated.

On The Move

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 will be heard today at 1pm in House Judiciary Committee in room 120.

HB 74 Coastal Management Program – Reps. Joule (D-Kotzebue) | Rep. Edgmon (D-Dillingham) | Rep. Buch (D-Anchorage)

HB74 is an attempt to correct problems with Alaska’s Coastal Management Program resulting from changes made several years ago by the Murkowski Administration.  This bill has quite a bit of support from coastal districts and local coastal communities.  There will be a hearing in Community and Regional Affairs this Tuesday, February 10th at 8am in Barnes room 124.

SB 31 Geothermal Electricity Production Tax Credit – Sen. McGuire (R-Anchorage) | Sen. Elis (D-Anchorage)

SB31 would allow a taxpayer that owns a commercial geothermal electric energy system capable of producing at least 400 kilowatts of electricity to claim a geothermal electricity production tax credit if the commercial geothermal electric energy system supplies all or part of the energy required by commercial units owned or used by the taxpayer; or the taxpayer sells all or part of the energy produced by the commercial geothermal electric energy system as a commercial enterprise.  It was referred to Senate Energy, Resources and Finance Committees and has its first hearing in the Senate Special Committee on Energy this Thursday at 11am in room 205. ACV supports this legislation.

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 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.   Committee members had several questions about the PCE formula and requested more information.  The bill was held in Senate Finance to a later date.

ACV supports HB 20, a bill that provides commercial fishing loans for energy efficiency upgrades.  The bill was heard last week in House Fisheries Committee and passed on to its next committee of referral, House Finance.

SB 4 Coastal Management Program - Sen. Olson (D-Nome)

A committee substitute (CS) for SB4 was passed out of the Senate Committee on Community and Regional Affairs and will be heard next in Senate Resources. The CS is the exact language of HB74 and attempts to give coastal districts greater input to the management of Alaska’s coastal regions. This bill has quite a bit of support from coastal districts and local coastal communities but has been opposed by the Department of Natural Resources.  

New In Town

SB 91 Emergency Energy Relief Program - Senate Finance Committee

"An Act relating to the emergency energy relief program of the Alaska Energy Authority; and providing for an effective date." SB91 was referred to Senate Resources and Finance Committees.

SB 93  Municipal Air Quality Property Tax Credit - Senator Paskvan (D-Fairbanks) | Elton (D-Juneau) |Thomas (D-Fairbanks)

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. SB 93 will have its first hearing in Senate CRA on Tuesday, February 10^th at 3:30pm in room 211.  Its other committee of referral is Finance.