Conservation Watch #6 - 2/23
* Legislative Committee approves $100 million in Renewable Energy Grants * On The Move * New in Town
Contents:
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Legislative Committee approves $100 million in Renewable Energy Grants
On Tuesday, February 17, 2009 the Joint Legislative Budget and Audit Committee (LB&A) voted 8 to 2 to approve grants worth $100 million for 77 renewable energy projects across Alaska. These funds have been a long time in the making. HB152, the bill passed last session creating the Renewable Energy Fund, was debated for two years before being passing in April of last year. Once the fund was created, the Alaska Energy Authority (AEA) and the Advisory Committee created protocols for collecting and vetting potential renewable energy project proposals. The projects were chosen at the start of the year and set before the Joint Legislative Budget and Audit Committee for review, as stipulated in HB152. This final step in the process was to insure that AEA and the Legislature had done due diligence with the $100 million of the State’s money – especially important in tight budget times and at this critical point in Alaska’s energy crisis. We have to get this right.
The Projects that have been approved will impact communities across. A few that received funding are highlighted here to demonstrate the variety of projects, funding and regions benefiting. To view the complete list please click here.
- In the Aleutians, Umnak Power / Nikolski IRA applied for funds for Nikolski Wind Integration. The total project cost is $451,030 with a match of $41,600. They requested and were approved for a grant of $409,430.
- In the Northwest Arctic electric region, Alaska Village Electric Cooperative (AVEC) applied for funds to build the Ambler Solar PV project. The total project amount is $605,000 with about $55,000 in matching funds. They received a grant for $550,000.
- On the Railbelt, Delta/Greely School District Government received funds to do a feasibility study on Delta Junction Wood Chip Heating. The grant award was $2 million. Other Railbelt projects included $2 million to the Municipality of Anchorage for construction of the Anchorage Landfill Gas Electricity project and $816,000 for a feasibility study by Kenai Hydro, LLC. On Grant Lake/Falls Creek hydro potential.
- In Southeast, the construction of a Ground Source Heat Pump by the City & Borough of Juneau Government for the new community aquatics facility was funded for $1,450,000
- In the Yukon-Koyukuk/Upper Tanana region the Yukon River Inter-Tribal Watershed Council got a grant for $446,950 for the construction of their Ruby Hydrokinetic project.
At LB&A’s first hearing on the projects over two weeks ago committee members raised important questions about the timing of the projects, the vetting process, AEA’s ability to administer such a large number of grants, to name just a few. While Steve Haagenson and Peter Crimp of AEA and Chris Rose of the Advisory Committee and Executive Director of the Renewable Energy Alaska Project (REAP) were able to answer most of these questions, the LB&A committee members requested a review by legislative auditors of five projects chosen randomly from the selected 77 renewable energy projects to help ensure that the $100 million would do what it was intended to do – add good, clean megawatts of stably priced renewable energy into the equation.
At last week’s hearing, the results of this review were mixed. Important questions were again raised and discussed. In the end, most committee members appeared to be comfortable with AEA’s selection process and voted to approve the projects with three wise qualifications. The first was that any Independent Power Producers (IPPs) receiving grants from the Renewable Energy Fund are required to get a certificate from the RCA. Second, Steve Haagenson will report back to the committee on the progress of the 77 projects, flagging any potential problems, in six months or less. Third, if any projects do not meet the granting benchmarks along the way LB&A will re-appropriate the grant money to another project on AEA’s list. This responds to a suggestion by the legislative auditors that AEA establish “stop points” at key stages. It seems that these additional safeguards are a thoughtful and helpful addition to the Renewable Energy Fund and should give even more assurance of success for these projects.
The LB&A Committee, chaired by Senator Meyer, deserves credit and thanks for putting such a great amount of thought into this process to make it better while still ensuring that the grants are awarded on schedule. Please send a quick thank you email to Senator Meyer and the Joint Legislative Budget and Audit Committee. Feel free to use the sample text below:
Dear Sen. Meyer and the Joint Budget and Audit Committee,
I am writing to thank you for your work in reviewing the renewable energy projects proposed by the Alaska Energy Authority as part of the Renewable Energy Fund. While I know we all recognize the importance of promoting renewable energy in Alaska, I appreciate the difficult questions you asked during the hearings and the review you conducted on the projects. I feel very confident in the review your committee did and look forward to seeing these proposals become a reality of clean energy for communities across Alaska.
Thank you very much for your hard work.
We truly appreciate Governor Palin’s and the Legislature’s efforts to move Alaska towards a renewable energy future. For many in the conservation community this is a dream finally coming true. While the Governor’s proposal to reduce this year appropriation to $25 million, down from $50 million, is not too surprising in these days of declining revenues we hope the Legislature will continue to make renewable energy policy and funding a high priority. We must find a way this session to keep making significant and manageable progress, especially in rural Alaska. There is no turning back.
On The Move
HB 12 Alaska Council on Invasive Species – Rep. Johnson (R-Anchorage)
HB12 establishes the Alaska Council on Invasive Species in the Department
of Fish and Game, an effort spearheaded in the legislature by
Representative Johnson. ACV supports this bill that continues efforts
to tackle an issue of major concern to the conservation community.
However, it is important to underscore our longstanding view that
invasive species management should be undertaken with the least amount
of the least toxic method available and that you will avoid much
pesticide use by tackling invasive species before they take hold in
Alaska. At the hearing last week there was overwhelming support for the
bill in public testimony. Committee members raised important questions
about creating a council. The bill was heard and held but we expect to
see it move whenever it is next heard.
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)
ACV
supports HB 20, a bill that adds efficiency upgrades as a possible
criteria for commercial fishing loans. Already through its first
committee of referral, House Fisheries Committee, HB20 was heard last
week in the House Finance Committee. The hearing ran long due to a
full agenda, leaving no time for public testimony and only a brief
discussion between the committee members. Most comments were positive.
HB 43 Geoduck Aquatic Farming/Seed Transfer – Rep. Seaton (R-Homer)
HB43
prohibits the absence of wild geoduck stock within a management area as
the reason for denial of an aquatic farm permit. Now, if a permit is
issued for an aquatic farm to culture geoducks, in a management area
that does not have wild geoduck stocks when the permit is issued, the
permit may not allow operations for that purpose in the intertidal
habitat or environment. The bill will be heard in House Fisheries on
Tuesday, February 24th at 10:15am in room 124. The bill’s other committee of referral is House Resources.
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 but has been strongly opposed
by DNR. It will have its second hearing in House Community and Regional
Affairs Committee on Tuesday, February 24th at 8am in room
124. No public testimony will be heard but expect a good dialog with
the potential for some amendments to the bill.
HB 121 Municipal Air Quality Property Tax Credit – Rep. Coghill (R-North Pole) | Rep. Kawasaki (D-Fairbanks)
Like
SB93 by Senator Paskvan and others, 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. HB121 was
heard last week in House Community and Regional Affairs and passed.
Next stop: House Finance... This could be a very useful tool in the
toolbox.
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)
HB134 amends the voter mandated cruise ship wastewater discharge law to
remove 5 critical words: “at the point of discharge”. This very small
change would essentially grant cruise ships a mixing zone, allowing
their wastewater discharge to exceed clean water act standards until
the cruiseship waste mixes with enough ocean water for dilution to
occur. The cruise ship association is taking the very first opportunity
to amend the voter-approved initiative, claiming that the discharge
levels are too onerous. However, testimony reflected varying opinions
on the cruise ship industry's claims. This bill appears to be
fast-tracked and has already passed its first committee of referral,
House Community and Regional Affairs Committee. Its next hearing will
be in House Resources Committee, as yet unscheduled.
HJR 7 Endorsing ANWR Leasing - Rep. Millett (R-Anchorage) | Rep. Lynn (R-Anchorage) | Rep. Dahlstrom (R-Anchorage) | Rep. Johnson (R-Anchorage) | Rep. Chenault (R-Nikiski)
House
Joint Resolution 7 urges “the United States Congress to pass
legislation to open the coastal plain of the Arctic National Wildlife
Refuge to oil and gas exploration, development, and production.” A
regular gesture by the House, it will be heard in House Resources on
Monday, February 23rd at 1pm in room 124.
HJR 18 Opposing ANWR Wilderness Designation – Rep. Millett (R-Anchorage)
| Rep. Stoltze (R-Chugiak) | Rep. Lynn (R-Anchorage) | Rep. Johnson
(R-Anchorage) | Rep. Neuman (R-Wasilla) | Rep. Keller (R-Wasilla) |
Rep. Ramras (R-Anchorage) | Rep. Wilson (R-Wrangell | Rep. Kelly
(R-Fairbanks)
HJR
18 urges “the United States Congress to refrain from passing
legislation that designates land in Area 1002 of the Arctic National
Wildlife Refuge as wilderness.” It will be heard in House Resources on
Monday, February 23rd at 1pm in room 124.
SB 31 Geothermal Electricity Production Tax Credit – Sen. McGuire (R-Anchorage) | Sen. Elis (D-Anchorage)
At
its last hearing a committee substitute for SB31 was adopted that
opened the tax credit up to any type of alternative energy. The bill’s
sponsor, Senator McGuire, indicated that more work was needed to hammer
out some details about the amount of credit to be given and other
technicalities. However, testimony was overwhelmingly supportive of
the bill. ACV also supports this bill The bill will have its second
hearing in Senate Energy at 11am on Friday, February 27th in room 211.
SB 59 Medium-Speed Motor Vehicles – Sen. Stedman (R-Sitka)
SB59
changes the limitations on low-speed vehicles to allow them on roads
with a speed limit under 45 miles per hour, an increase from the
current 35 miles per hour max. It also allows for low speed vehicles
to cross highways at designated intersections. Despite some logistical
and safety concerns to work out, this bill could have a very positive
impact on widening the use of electric cars. It will be heard for a
second time in Senate Transportation Committee on Tuesday, February 24th at 1pm in room 205.
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. Already through its first committee of referral, Senate
Community and Regional Affairs, it will be heard this Monday, February
23rs at 9am in Senate Finance in room 532.
SB 115 Rural Energy Assistance Program – Senate Finance Committee
SB1would
create a rural community energy assistance program in the Department of
Commerce, Community, and Economic Development (DCCED) to provide grants
for energy assistance to rural communities in the state. DCCED would
then develop criteria, including requirements regarding the population
of a community and the price a community pays for energy, for
evaluating the rural communities most in need of energy assistance for
disbursement of grants. There are no provisions to encourage energy
efficiency and conservation.While it is important to address rural
energy needs this will only act as a band-aid until measures and
policies are put into place to reduce energy demand and provide rural
communities with STABILY priced clean energy. This bill will have its
first hearing in Senate Finance, its only committee of referral, on
Monday, February 23rd at 9am in room 532.
SB 116 Approp: Rural Energy Assistance – Senate Finance Committee
This is a $5 million appropriation bill for SB115. It will also be heard on Monday at 9am in Senate Finance room 532.
New In Town
SB 108 Stampede State Recreation Area – Sen. Thomas (D-Fairbanks)
"An Act creating the Stampede State Recreation Area." This bill was referred to both resources and finance committees.
SB 115 Rural Energy Assistance Program – Senate Finance Committee
SB1would
create a rural community energy assistance program in the Department of
Commerce, Community, and Economic Development (DCCED) to provide grants
for energy assistance to rural communities in the state. DCCED would
then develop criteria, including requirements regarding the population
of a community and the price a community pays for energy, for
evaluating the rural communities most in need of energy assistance for
disbursement of grants. There are no provisions to encourage energy
efficiency and conservation. While it is important to address immediate
and pressing rural energy needs this will only act as a band-aid until
a long-term energy plan is put into place to reduce energy demand and
provide rural communities with stably priced clean energy. It will be
heard in the Senate Finance Committee on Monday, February 23 at 9am in
room 532.
SB 116 Approp: Rural Energy Assistance – Senate Finance Committee
This is a $5 million appropriation bill for SB115. It will also be heard on Monday at 9am in Senate Finance room 532.
SB 119 Energy Efficiency Plan and Grant Fund – Sen. Thomas (D-Fairbanks) | Sen. Ellis (D-Anchorage)
SB119
puts in place a plan, and funds necessary, to reduce the state's energy
use through efficiency. It requires the Department of Transportation
and Public Facilities to prepare and adopt a state energy use reduction
plan that will allow the state to achieve a reduction of energy
consumption for state facilities, starting one year after the effective
date of this section. The plan must improve the energy efficiency of
all state facilities managed by the department, new public facilities
managed by the department must be designed and constructed in
accordance with the most recent addition of the International Energy
Conservation Code, and must achieve cost recovery over the 15-year
period following completion of the project. The energy efficiency
grant fund would be placed in the Alaska Housing Finance Corporation.
This welcome bill, along with SB 121 (see below), shine a spotlight
on the critical need to focus on energy efficiency measures to round
out the energy package. Huge gains are possible. This discussion also
should be a high priority for the Legislature this session. The bill
was referred to Senate Resources and Finance Committees.
SB 121 Energy Efficiency Bldgs/Public Works – Senate Resource Committee
SB121
was introduced by the Senate Resources Committee with the intent to
reduce the amount of energy consumed by public facilities between 2000
and 2020 by 20 percent before January 1, 2021, thereby reducing costs
to the state and increasing jobs in energy efficiency industries. To
accomplish this goal SB121 requires the Department of Public
Transportation and Public Facilities to create an Energy use index for
all heated public facilities to monitor baseline energy consumption
data and energy efficiency data. With information from the energy use
index, DOTPF is then required to retrofit all heated public facilities
listed in the index. SB121 allows for performance contracting and has
a 3-year self-reporting requirement to ensure that the program is
working. The bill has been referred to Senate Resources and Senate
Finance Committees.
SJR 7 Oppose UN Designation of Arctic Ocean – Sen. Therriault (R-North Pole) | Sen. Dyson (R-Eagle River)
SJR
opposes the United Nations designating the Arctic Ocean as a World
Heritage Site. It has been referred to Senate Energy and Resources
Committees.
