Action now can help relieve pain of energy prices

MARK BEGICH

June 12, 2008 at 11:03AM AKST

From the Interior to rural villages, Anchorage to Southeast, skyrocketing energy prices are causing a real financial emergency to many Alaskans.

In Fairbanks, a record number of residents are disconnecting their electricity because families can’t pay their bills. In coastal communities, fishermen are staying tied up at the docks because they can’t afford marine fuel.

In rural Alaska, entire communities are at risk because subsistence providers can’t afford fuel to hunt and fish. Across the state, Alaskans are even forgoing medical appointments so they can spend their money on gasoline and heating fuel instead of their health.

As the Legislature convenes this month in a special session to consider the governor’s natural gas pipeline proposal, I think an issue that should be at the top of the state’s agenda is addressing the energy crisis facing Alaska families.

Gov. Sarah Palin recently offered a couple of proposals for short-term relief, and I support emergency assistance for Alaskans. But a one-year fix is not enough. We need permanent solutions.

Paradoxically, record-high oil prices are the root cause of much of the problem. In March, the state predicted record-high oil revenue of $8.5 billion. Just two months later, the estimate was adjusted upward by $2.7 billion. Let’s use some of this windfall to relieve the burden on Alaskans.

I have developed a $650 million, four-part energy plan with long-term benefits for Alaskans, which I urge the Legislature and state administration to consider:

First, improve energy efficiency. The Legislature recently approved $300 million for weatherization, making available $100 million regardless of income level, to Alaskans eligible for $10,000 grants and $30,000 home loans for energy efficiency improvements through the Alaska Housing Finance Corp.

I suspect this program will be the hit of the summer, overwhelming both energy consultants and city inspectors. I urge the Legislature to allocate another $150 million to make sure money doesn’t run out.

In Anchorage, we’re ramping up for increased building inspections and permits.

Second, focus on renewable energy. The state currently has no overall energy policy and certainly doesn’t have a clear direction on renewable energy.

Fortunately, the governor OK’d $25 million in legislative funding for the Fire Island Wind Project, which could generate about 10 percent of Southcentral’s electricity needs, replacing dwindling natural gas. And others, such as Fairbanks’ Cold Climate Research Housing Center, are doing cutting-edge renewable and energy efficiency work.

We need a focused renewable energy policy, with funding to the University of Alaska and other entities, to help communities decide, develop and test appropriate technology and get projects off the ground.

Third, address public transportation and a commuter rail. Every day, 11,000 commuters travel between the Mat-Su Valley and Anchorage, most of them alone in their vehicles.

That’s expected to grow to 30,000 in about 15 years.

At the same time, bus systems in Anchorage, Fairbanks, Juneau and Ketchikan could potentially serve 74 percent of the state’s entire population.

Today, local governments put a modest $30 million into mass transit systems statewide. Let’s increase that by half again.

I also urge the Legislature to approve $200 million, plus $10 million a year, for a newly created Alaska Public Transportation Authority, to provide sustainable, long-term funding for mass transit services among Alaska communities.

Fourth, invest in Alaska’s electrical generation infrastructure. For more than a year, we’ve been working with Southcentral’s two largest electric utilities to merge operations to save ratepayers money. These utilities estimate a fuel savings of 30 percent or more.

With state participation in the capital cost of new generation facilities, we could save even more. I propose the state set up a $300 million matching fund within the Alaska Energy Authority for energy-efficient electrical projects like this across the state.

Alaskans are hurting from high energy prices. Let’s work with the state administration and Legislature now to put new policies and programs in place to provide relief now and into the future.

Mark Begich has been the mayor of Anchorage since 2003. He is campaigning for the U.S. Senate. Begich can be reached at (907) 343-7100. His campaign office number is (907) 297-2530.