Rural energy crisis issues prominent in Legislature

MARY NELSON

February 12, 2008 at 10:06AM AKST

For The Tundra Drums

Bush Alaska needs access to reasonably priced energy. We need fuel to stay warm and to run our snowmachines and trucks; but also I believe that without energy security and stability, no community can remain economically stable.

I’m heartened by the number of sensible energy-related bills the Legislature is looking at this session. Never before during my tenure as a state representative have I seen so many forward-thinking proposals on energy.

With our budget surplus, now is the best time to work on short- and long-term solutions to our rural energy predicament.

The high cost of fuel hurts all Alaskans, especially those who live off the road system.

I believe the solution has two major components: First, to continue expanding direct monetary assistance from the state and federal government to offset energy costs, and second, to develop weatherization and alternative energy programs.

Energy-assistance legislation

The following measures will help offset some of the high costs of energy in our area:

• Gov. Sarah Palin is promising to fully fund power-cost equalization at $28 million and to match $10 million for Denali Commission and Energy Authority conservation programs. While this is a good start, I will be supportive of increasing these amounts.

• Sen. Thomas Wagoner, D-Kenai, introduced Senate Bill 217, which would provide an extra energy dividend of $250 to those eligible for the Alaska Permanent Fund Dividend to help offset high energy costs. Wagoner plans to alter the bill so that $750 per customer goes directly to electric utilities that would then be required to lower each customer’s monthly bill by a commensurate amount. This will ensure the money is spent on energy.

• Rep. William Thomas, R-Haines, has publicly suggested sending a $1,000 rebate directly to any Alaskan who received a 2007 PFD. The advantage of this measure would be that Alaska residents suffering from high fuel costs would get help this spring rather than having to wait. While we are optimistic Alaskans will get some relief, it’s likely the amount will be significantly less than the original proposal.

• As mentioned before, I have introduced House Bill 308, heating assistance program to help rural Alaskans combat the high cost of energy. This bill is designed to expand Alaska residents’ eligibility for home heating assistance by establishing a state heating assistance program to supplement the federal low-income heating and energy assistance provided by the Low-Income Home Energy Assistance Act of 1981.

• I have also introduced House Bill 338 authorizing the Alaska Energy Authority to borrow money from the power project fund for temporary use in the bulk fuel revolving loan fund. This will ensure that this important bulk fuel assistance program continues to serve rural Alaskans.

Alternative energy legislation

A large part of our long-term solution to the rural energy crisis lies in the development of alternative energy. Currently, there are several pieces of legislation promoting alternative energies such as wind, geothermal, solar and hydropower:

• House Bill 152 provides the framework for a renewable energy fund, the earnings from which would be distributed in loans and grants for projects like hydro, wind, geothermal and biomass. Such a fund is long overdue, and I welcome the Gov. Sarah Palin’s support of this legislation. I would, however, like to see her suggested funding of $250 million increased.

• House Bill 288 makes electrical utilities provide an option for net energy metering that is capable of registering the flow of electricity in two directions. This is so a customer who owns a less than 25-kilowatt electric generation facility on his or her property that uses solar, wind, tidal, geothermal, or hydropower as its fuel will be able to sell excess electricity back to the electrical utility or trade it for a credit against next month’s heating bill. Presently if someone installed a small wind generator in, say, Kasigluk, he would bear the entire cost of a bi-directional meter and could only sell electricity back to the electric utility at a small fraction of the price the utility sells it for. Most states have already addressed this issue. I believe it’s logical for Alaska to also encourage small-scale alternative electricity generation in this manner.

• House Bill 56 would establish a hydrogen energy research program within the Department of Community and Economic Development. The goal would be to develop a hydrogen fuel industry in Alaska. Hawaii has established a similar program in hopes their vast geothermal energy resources could be used to produce hydrogen for export. If Alaska is going to remain energy competitive, we must prepare for the probability that hydrogen will become a viable fuel. House Bill 56 will provide the basis for the state to accept funding for a hydrogen production project.

State Rep. Mary Nelson is a Democrat representing District 38, which includes Bethel, in the Alaska House of Representatives.