Renewable Energy and Energy Efficiency Advocates Question Palin's Rejection of Energy Stimulus Funds

Governor Palin decision to reject $55 million in federal stimulus funds for state energy programs baffles those working closely with the Palin Administration on renewable energy and energy efficiency programs.  “We already have a robust weatherization program trying to address the energy crisis in rural Alaska, so why not add another $18.5 million to the $360 million already committed last year?,” questions Meera Kohler, CEO of Alaska Village Electric Cooperative.  “As far as I know the only additional requirement attached to these funds is establishing a policy advisory body, which is just good government anyway,” adds Kohler.

The largest part of the federal energy funds would appropriate $28.6 million for states to assist in preparing and implementing state energy conservation plans.  According to a guide on the federal stimulus bill prepared for state and local governments, acceptance of these funds would require the state or an applicable unit of local government to implement energy codes for residential and commercial buildings.  “Taking this step has already been recommended by an energy efficiency study commissioned by the Alaska Energy Authority” notes Chris Rose with the Renewable Energy Alaska  Project.  “The political will is moving in this direction anyway, so let’s have a discussion about this before we just say no thanks,” says Rose.  “I welcome the Governor’s offer to have some public dialogue on these stimulus requirements because this is one area where we can reduce long-term energy costs.  It is much more an opportunity than a burden.” says Rose.

The third component on the federal energy funds being left on the table is $8.5 million to develop and implement energy efficiency and conservation strategies. Funding in this category can be used for energy audits, energy efficiency retrofits, installing renewable energy technology and creating private sector incentives for energy efficiency improvements.  “It’s been long demonstrated that the cheapest source of energy is the energy you don’t have to produce. Since we’re doing everything that is attached to these federal funds, accepting these funds should be automatic.” says Kate Troll with the Alaska Conservation Alliance. “Overall there appears to be no burdensome requirements that would preclude acceptance of these energy funds and instead these funds would result in a net benefit to the State,” notes Troll.