Tag Archive for: alaska legislature

Beyond Juneau: Renewable Regulations and You!

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If you joined us in celebrating some major policy wins with us this summer, you may have started to wonder what comes next. While we set our sights on our next policy goals for 2025, we also have important opportunities to continue to move toward a clean energy future for Alaska by engaging in the world of regulations. 

On August 13, Community Solar was signed into law by Governor Dunleavy. Now, the Regulatory Commission of Alaska (RCA) has one year from the effective date to determine exactly how this program will function. The RCA regulates public utilities and pipeline carriers throughout the state, making decisions about rates, compliance with regulations, quality of service, safety, and more. In addition to support staff and analysts, the RCA is structured to be led by five full-time Commissioners, but currently only has four serving Commissioners. 

With our partners, we have written about some of the specific decisions the RCA will need to make, including whether to extend its full net metering policy to community energy facilities so that subscribers are equitably compensated for the energy produced. As the RCA considers exactly how Community Solar will be structured, we encourage members of the public to make their voices heard. At the beginning of each biweekly public meeting of the RCA, members of the public are invited to speak for up to five minutes. During this period, you can introduce yourself and make a comment about Community Solar, clean energy, or anything else relevant to their work (as long as it is not related to an open docket). 

Meanwhile, the Railbelt Reliability Council (RRC) is also making key decisions in the world of renewable regulations. This body, created by the legislature to create a more reliable and efficient railbelt energy system, is directed by a fourteen member board of stakeholders with an interest in railbelt reliability, representing the state’s Alaska Energy Authority, consumer advocates, environmental advocates, independent power producers, the electric utilities, and unaffiliated representatives. 

The RRC has been moving forward toward the creation of an Integrated Resource Plan (IRP) for the railbelt, which will lay out the energy priorities for the railbelt for a twenty year period. This process includes identifying how much renewable energy should be brought online, what transmission and grid upgrades are necessary for proper integration and exchange of renewable energy, and how to ensure the overall system functions well (or how to ensure reliability across the system). Each of the railbelt utilities has created or will create their own version of an IRP, but an overarching plan will be an opportunity to build out the railbelt’s renewable energy generation most efficiently. 

This multi-year planning process is underway with the Board currently working on establishing certain reliability standards that must be created before an Integrated Resource Plan is completed. The RRC currently aims to begin the IRP process in earnest by the first half of 2025, and complete that in a year. Additionally, the RRC’s Public Involvement Committee has been working hard to create clear opportunities for public outreach and engagement throughout this process. 

Members of the public are always welcome to attend RRC Board meetings or Public Involvement Committee meetings, and to give feedback to the Board during the public comment section of their meetings. Information about upcoming meetings, including agendas, can be found on the RRC website.

Interested in learning more about the regulatory process or attending one of these meetings with support? Email Alex at alex@akcenter.org or stay tuned for future opportunities.

With energy for the future,
The Alaska Center

Legislative Highlights: Celebrating Wins and Community Action in Alaska

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Is it just us, or does spring feel extra busy this year? In a week with multiple elections closing, we hope you are celebrating Suzanne LaFrance’s significant lead in the Mayoral runoff and plan on joining us Friday for the Chugach Electric Annual Meeting! – we also watched closely as the 2024 Alaska state legislative session came to a close. 

During the final few days of the session, we saw many of our clean energy and climate priorities across the finish line. We’ll have more to come on what this means for our next steps, but for now, we’re excited to share this brief recap. 

PASSED! Community Solar (SAVE Act)
The Alaska Center has worked closely with Alaska Public Interest Research Group outwardly and behind the scenes over the past year to move a community solar bill forward. The goal of the legislation is to allow more people to access clean energy, by subscribing to solar arrays or other clean energy generation that is centrally located rather than placed on individual properties.  We informed the public about community energy, testified ourselves, and encouraged supporters to call or write in to provide testimony, and met with legislators to answer specific questions and concerns about community energy programs. The bill went through many iterations and ultimately became known as the SAVE Act (Saving Alaskans money with Voluntary community Energy). 

In late April, the SAVE Act passed the Senate unanimously, with Senators from various parties and districts speaking in favor of the legislation on the floor. We celebrated but knew we had to keep working to get the word out about the bill and clarify any concerns raised on the House side. Finally, this week, the bill passed the House and will head to Governor Dunleavy’s desk for his signature. 

We are so excited to see community energy programs launch in Alaska and view this as one step toward a more equitable energy future. 

PASSED! Green Bank 
Late Wednesday night, before gaveling out for the year, the legislature passed a bill with language to create a Green Bank. A Green Bank is a financial entity that leverages private financing and invests in renewable energy technology like heat pumps, electric vehicle charging stations, and more critical new infrastructure that a traditional financial institution is less likely to finance. The bill states that the entity “serves a public purpose benefitting the people of the state” by financing sustainable energy development. 

Alaska’s Green Bank will be housed under the Alaska Housing Finance Corporation, a community-oriented agency, that will strive to invest in renewables in a way that best serves the people of Alaska. We look forward to finding opportunities to collaborate with the Green Bank to ensure a transparent and just process. 

STILL WORK TO BE DONE! Renewable Portfolio Standard (RPS)
Although multiple versions of renewable or clean energy standards were introduced this session, they ultimately did not move forward. Utility providers themselves were heavily involved in the conversation, as both Golden Valley Electric Association (GVEA) and Chugach Electric Association (CEA) took up the issue in their own Board meetings. CEA passed a formal resolution in support of a general RPS, but raised issues with the specifics of the legislative proposals. Utility providers generally expressed concerns about the grid’s transmission capacity and limitations, the exact percentages included in proposals, and the enforcement mechanisms associated with standards. 

Grid transmission capacity ultimately became a major focus of the session (more on that below).  In terms of enforcement, we spoke with partners about alternatives to fines or penalties, which utilities said risked raising rates for consumers. One option is to provide significant incentives for meeting goals. Either way, we believe it will only be possible to actually meet these goals if there is some related consequence for achieving them or failing to do so. 

The Alaska Center will continue to advocate for a state standard to be set to ensure we are on track to reduce our overall carbon output. 

PASSED! Railbelt Transmission 
We wrote to you last month to update you on the shift to transmission that took place in the energy space this year. With various bills and conflicting views on the most efficient way forward, this was a complex legislative issue. We weighed in by providing testimony and written analysis throughout the process, as well as meeting directly with legislators about the various transmission issues being addressed. 

First, $30 million was included in the budget as the first phase of a state match for GRIP (Grid Resilience and Innovation Partnerships) funding. This federal grant of $206 million requires a state match, and will be used to upgrade elements of our transmission system, which is key to our ability to send renewable energy from wherever it is generated to wherever the power is needed at that moment. 

The final transmission legislation got rid of duplicative charges to reduce the overall costs of sending energy up and down the railbelt, updated requirements for commissioners to serve on the Regulatory Commission of Alaska, and addressed the taxation of new power projects. It also created a new organization under the Alaska Energy Authority called a railbelt transmission organization (RTO) but left planning in the hands of the existing Railbelt Reliability Council. Instead, this RTO will focus on cost recovery of transmission operations. 

An efficient and upgraded transmission system is a critical part of our clean energy infrastructure, and we look forward to thinking about the next steps in the coming year. 

STILL WORK TO BE DONE! Voting Rights 
Voting rights were a hot topic this session and both the House and the Senate attempted to pass substantial updates to our current systems and policies. HB 4 (the repeal of open primaries and ranked choice voting (RCV)) had a hearing on day one of the session, and HB 129 (purging voter rolls), moved quickly out of the House and into the Senate for consideration. The Senate then turned HB 129 from a bad voting rights bill into a good voting rights bill by adding a provision to remove the witness signature requirement on mail-in ballots, adding a system to fix mistakes on ballots, and allowing Alaskans to register to vote on election day. 

Unfortunately, the House would not support these provisions and this bill did not make it over the finish line. What does this mean for voting rights? It means that many of our leaders and community members want to see voting rights expanded, and that next year we will work even harder to pass positive voting reforms. The repeal of ranked-choice voting and open primaries will likely be on the ballot this November, so we will continue to update you on how you can take action to protect our democracy. 

PASSED! Juneteenth Bill
Finally, at 11:05pm the House voted to pass SB 22 – establishing Juneteenth Day as a legal holiday. Juneteenth is a crucial recognition of our shared history, emphasizing the central role of Black leaders. Specifically in Alaska, many of those leaders were brought up to build both the physical and the political infrastructure of this state, moving Alaska toward statehood. By officially recognizing Juneteenth, we honor the labor and sacrifice Black communities contribute and we join the rest of the nation in one day of celebration and liberation. Thanks to our leaders and community members for helping this get across the finish line! If you are in Anchorage, stop by and say hi at our booth at the Anchorage Juneteenth Celebrations on June 15 and 16!  

We are grateful to the many elected officials who worked hard this session to move forward highly technical, politically charged, and crucial bills for our climate and our communities. We are looking forward to a summer full of advocacy to prepare for what the next session has in store for us! Stay tuned!

Powering forward together,
The Alaska Center

Shifting to Transmission

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Two weeks ago, several members of our team went to Juneau, in Á’akw Kwáan territory, for the Just Transition Summit. Over the course of four days, we heard from Indigenous leaders, youth, elders, labor movement experts, legislators, and other partners of ours about efforts to transition our economy away from extraction and toward resilience and regeneration. 

We discussed a wide swath of issues related to a just transition, including building a true multi-racial democracy, circular economies and waste, and Indigenous Knowledge. We also made time for conversations around healing, and found opportunities to connect with one another between sessions. You can watch some of the keynote panels, and see a complete list of speakers on the Just Transition website. One highlight we are especially proud of: a legislative lunch and learn about transitioning our energy system, featuring three wonderful panelists. Our Alaska Fellow, Marta Ditzler, worked tirelessly on coordinating this over the past few months with support from the rest of our team, and we are so grateful for her work.

From left to right: Sally Rue (The Alaska Center Board Chair), Leila Pyle (AYEA Program Manager), Chantal de Alcuaz (Co-ED), Alex Petkanas (Climate and Clean Energy Program Manager), Marta Ditzler (Organizing Fellow), Jenny Marie-Stryker (Political Director), Vicki Long-Leather (Co-ED)

While there, The Alaska Center staff met with twelve legislators to discuss our energy policy priorities for the remainder of this session. We outlined the importance of things like Community Solar, a Renewable Portfolio Standard, annual net metering, and opposing any new coal projects. All of our conversations, however, turned to one key topic: transmission planning and upgrades.

The “transmission system” refers to all of the infrastructure that allows us to send energy from one place to another along the railbelt – which serves about 75% of the population in Alaska. When we talk about transmission planning, we are referring to a process that currently rests with the Railbelt Reliability Council. This group has been carefully organized to include stakeholder representation of small consumers, environmental groups, labor, regulators, and utility providers. They have been tasked with the responsibility of coming up with a holistic, efficient plan for the railbelt to get energy to everyone from Fairbanks down to the Kenai Peninsula. 

Multiple issues are popping up related to this transmission system in the legislature. One current bill (SB 257) would take planning responsibility away from the Railbelt Reliability Council and create a new organization with less oversight and stakeholder input to handle planning. The Alaska Center has raised concerns about this proposal, as we believe this would result in less public input and transparency in planning. Other proposals would reduce the cost of sending energy back and forth by removing something called “wheeling fees” which utilities currently charge to one another. Another crucial issue is providing a state match for the federal Grid Resilience and Innovation Partnerships (GRIP) funding that will go toward transmission upgrades. 

As the legislative body focuses on energy and transmission, The Alaska Center strives to be a resource on energy policy. We are working collaboratively with our partners to advocate for clean energy and transparency, and have provided legislative staff with our positions on these transmission issues while continuing efforts to bring our other policy goals to the forefront. We will continue our work throughout the rest of this session and will keep our supporters updated on opportunities to provide public testimony or otherwise get involved.

Whether you write to your representatives, call in to testify during public hearings, or author op-eds about your priorities, you are a key part of making sure the Alaska state legislature is acting in the best interest of the people. Looking for ways to participate? Sign up to volunteer with us!

Together for Alaska’s Energy Future,
The Alaska Center

Beyond Bill Numbers: Clean Energy Update

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It’s the year of energy legislation in Alaska – and we’ve seen lots of big ideas introduced in Juneau. As bills make their way through committees and amendments, none of them come out looking exactly the same as the version that was introduced. To that end, we want to highlight the clean energy issues that have popped up in various bills, and update you on our focus: getting clean energy online now.  

THE GOOD NEWS 

We have seen multiple efforts to create new standards along the railbelt for renewable/clean energy generation. The Chugach Electric Association passed a resolution supporting a Renewable Portfolio Standard (RPS) in general, but has not publicly taken a position on any specific bill. While the details of these proposals look different, the basic effect is that utilities along the railbelt (like Chugach Electric Association, Homer Electric Association, and others) would be required to get some amount of their energy from renewable or clean energy sources by a certain deadline. Many states have standards like this, and it is imperative that we develop similar standards in Alaska to achieve our vision of a Just Transition. Critically, these standards mean nothing unless backed by either an enforcement mechanism or a significant incentive for utilities to meet these goals – we have seen nonbinding aspirations like 50% renewable by 2025 fail to materialize without these things. 

Legislation has also been introduced that would make renewable energy more accessible to many Alaskans through a program called Community Solar. This would allow Alaskans who cannot directly install solar panels on their property to subscribe to a solar array elsewhere, opting into renewable energy even if they rent, have a suboptimal property for generation, or do not have the upfront capital to install solar panels. It would also allow Alaskans to develop solar arrays or run of the river hydro projects, and sell the energy generated directly to the local utility provider. This tool for getting more renewables online and in use has been rolled out in 43 states – which gives us the opportunity to learn from the experiences of others as we get things started here. 

Bills to create a Green Bank have been introduced in both the House and Senate in Alaska, which would create an energy independence fund to leverage private financing and invest in renewable energy technology. This could fund things like heat pumps, electric vehicle charging stations, and more critical infrastructure that a traditional financial institution is less likely to finance. More information about Green Banks can be found here. 

And finally, we’ve heard calls to match the federal government’s Grid Resilience and Innovation Partnerships (GRIP) funding awarded to Alaska. The U.S. Department of Energy has allocated $206,500,000 to the Alaska Energy Authority for railbelt resiliency, which will allow our state to modernize transmission infrastructure and make our grid more efficient and affordable across the railbelt. This funding requires the state to make a dollar-for-dollar match. We strongly urge the legislature to allocate a state match to federal GRIP funding in order to secure these critical infrastructure upgrades.

THE BAD NEWS 

At the same time, we’ve seen some troubling things put forth that threaten Alaska’s energy future. While you may have heard about the shocking inclusion of coal as “clean energy,” here’s what else we find concerning about proposed energy legislation this session. 

Rather than focusing on transitioning to alternative energy sources, some legislators are making efforts to expand oil and gas production within our state. One bill suggests creating a working group made up of resource developers and related legislators, whose sole purpose would be “to determine methods to increase oil and gas exploration and production in the state.” Others suggest pouring more public money into subsidizing the oil and gas industry directly, or reducing taxes for gas exploration and production. Whatever the method, we oppose formalizing the favoritism of an extractive industry over renewable energy development. 

Finally, we’ve heard concern that new renewable energy cannot be brought online until grid transmission upgrades have been made. We disagree. Though our railbelt transmission system is in need of physical and policy upgrades, we must move forward on every step of the transition process now in order to reach our decarbonization goals by 2040. 

THE TAKEAWAY

As we close in on the first half of the 2024 legislative session, you can call your legislators and let them know that you support investment in renewable energy for Alaska. While bill numbers may come and go, our message is simple: we must use every tool we have to transition to renewable energy sources now. In order to avoid the most devastating impacts of climate change and secure a liveable future for ourselves and generations to come, we cannot afford to wait.

Thank you for standing with us in pursuit of clean energy. Let’s make 2024 a turning point for renewable energy in Alaska!

Warmly,
The Alaska Center

That’s All Folks!

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The first round of the 33rd Alaska State Legislature is neatly wrapped up, and our lawmakers and their staff are integrating back into the civilian world for the summer. The drama, bruised sentiments, blather, tweets, accusatory statements, pointed fingers, shouts, and slammed doors of the winter session grow less poignant by the day. Alaska Spring has a way of interceding in human affairs. The anger a lawmaker may carry about a bill not getting its due treatment in committee is sure to be unsettled by the ancient cry of a sandhill crane, the smell of cottonwood buds on the wind, or the moose calf ambling across the highway ahead. (Watch out!)

There is a lot that these folks should be proud of as they fade out of the spotlight and into the summer fray. The legislature passed a significant investment into public education – the largest ever in state history. They passed legislation establishing the month of October as Filipino American History Month; they passed legislation to regulate the use and disposal of the “forever chemical” PFAS found in firefighting foams; they began work on a state Renewable Portfolio Standard to have utilities sell 80% renewable generated electricity by 2040; a Community Solar bill was introduced to allow more Alaskans the benefits of low-cost solar power; an omnibus election bill was heard which would allow greater access to the voting process; the state’s Renewable Energy Grant fund was extended indefinitely, and numerous clean energy projects were funded. Necessary for our salmon habitat, the legislature did not allow a state take-over of wetland development permitting duties, which would have led to decreased oversight.

The design of our Democracy serves to slow-roll, often for the best, so we are not surprised that few bills passed this spring. The process is messy, and the 33rd Alaska State Legislature is a completely imperfect and exhausting bundle of humanity, and we love it. It may not be the most remarkable legislature, but Ranked Choice Voting has produced a huge crop of freshmen and moderates, which benefits the state’s health. Alaska has enormous problems, from suicide rates to climate change, and getting away from partisan divisions is crucial. What the 33rd does next session hopefully will be a step toward the betterment of Alaska. It is time that the Governor, the Senate Bi-Partisan Majority, and the House Mish-Mash-Maybe-Majority put their collective shoulder to the wheel and work on a plan.
Whether the legislature is in session or not, our plan at The Alaska Center is to continue advocating for increased voting rights and voting access, increased renewable energy production, and increased equity and justice – in schools, workplaces, homes, and everywhere else. We will fight to protect salmon from habitat loss, climate change, and bycatch.

We will keep our eyes on the horizon for a special session on some broad-based tax proposal, rumored to be scheduled for September or October. We truly appreciate all of the support and feedback you have provided and the work you have put in this session reaching out to lawmakers on issues important to you. Constituent contact is vital to an elected official, even if they don’t give you the answer you may want to hear or any answer at all.

Never ever, ever give up.

Herein follows a brief note from the author (who is headed out to Bristol Bay for gillnetting soon and will be departing The Alaska Center for future pursuits):

“I appreciate you all, and have learned more over the past eight years at The AK Center than I have space to put in words right here in this email/blog. There is no easy way to define the work of this organization. What I can say is this is a non-profit that seeks to empower youth to fight for things that will help them live lives of abundance.
You can always reach out to me directly at louieflora@hotmail.com.
Be excellent to each other,”

Louie Flora/The Alaska Center

Climate Hope in the Community Solar Garden

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Following a familiar pattern – the regular legislative session went into special session – and then in a surprise move at the last minute, voted on a budget with more minority members than majority, and the House did not go into conference committee. Remember: you can always be surprised! Despite messy gridlock and the constant strain of the PFD there are brightnesses among what became of the regular session, and we are pleased to announce the introduction of our top legislative priority – Community Solar garden legislation – SB 152 – on May 15th. We have been working behind the scenes with friends and allies in the legislature for months to see it born, and we are pleased it is now out in the world.

Take Action on Community Solar

SB 152 will clarify the rules for communities wishing to create a Community Solar garden. Generally, a solar garden is a solar panel array that is larger than a single residential array and can benefit renters and others who do not have the space or the financial means to purchase and install their own solar panels. The bill strives to ensure that more Alaskans, those in underserved communities, and those at the lower end of the income spectrum can participate in clean, affordable Solar.

Through our current Solarize programs, we have seen tremendous support for solar. We have always worked to make solar more accessible, and this bill would be a significant step in the right direction. 79,000 Alaskans live below the Federal poverty level, and over 260,000 Alaskans live in rental housing. Community Solar is the smart economic choice because it will reduce energy costs for Alaskans.
All Alaskans deserve to be a part of a renewable future. Community Solar helps lower-income and historically disadvantaged groups at the frontline of our climate crisis get direct access to the benefits of renewable energy and ensures benefits of renewable energy are shared more broadly. Community Solar is a step in the right direction toward climate justice. It’s the simplest, most equitable, and least expensive way to decarbonize Alaska’s energy system!

Current regulations do not allow Alaskans to pursue “Community Solar,” we believe that renewables are a necessary part of a just transition, and this bill will remove some of the barriers that keep too many Alaskans dependent on extractive energies and give them more agency in their utilities. Additionally, Community Solar is poised to become much more common thanks to a new $7 billion fund tied to the Inflation Reduction Act. This federal infusion of funds for a myriad of renewable energy programs and projects will redefine Alaska’s energy mix – and we want Community Solar to be a significant part of this.

At The Alaska Center, we work to bring more awareness to the power people have in the decisions about their utilities. From elections to legislation. We are stoked to celebrate the introduction of Community Solar legislation and the CEA election turnout this week! We hope you are planning to join us tomorrow for our Annual Auction at the Anchorage Museum. (If you haven’t scooped up those tickets yet, we will have a few tickets at the door remaining.) And if you can’t make it…you can always celebrate from afar by bidding on some pretty sweet silent auction items.

It feels fortuitous that our theme this year is “Climate Justice/Climate Hope.” Each of our legislative priorities in this session is key to working for climate justice and forging climate hope and we are seeing the shift in real time. From democracy legislation to clean water protections and renewable energy accessibility, each is needed to achieve our goals of a just transition for our state. And each of you is necessary to make these legislative priorities happen. We are excited to see you tomorrow to reconnect, dance, dine, drink and move forward in our work together!

STATEMENT: The Alaska Center supports introduction of community solar legislation

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On May 16, 2023, Senator Wielechowski introduced SB 152, AN ACT RELATING TO COMMUNITY ENERGY FACILITIES to the Alaska State Senate. This bill will open the door for more Alaskans to benefit from solar power through the use of communal solar gardens, available at an affordable price to anyone who pays an electric bill. Community Solar gardens will bolster our state’s supply of renewable, reliable, and affordable energy for Alaskans, and The Alaska Center supports the passage of this bill through the legislature.

“Community solar is an important step toward making renewable energy accessible to all Alaskans. It will open up energy savings to renters and low-income community members who can’t afford the upfront costs and are at the frontlines of the climate crisis. 79,000 Alaskans are currently living below the Federal poverty level, and over 260,000 Alaskans live in rental housing. This bill opens the door to long-term energy savings, good-paying jobs, and a real pathway towards much-needed energy and economic diversity for all Alaskans.  Through our work in solarizing communities over the past five years, we have seen the upfront cost be a real barrier for families. We are excited to see the opportunity for more Alaskan families to access renewables and cheaper energy bills.”
– Chantal de Alcuaz, Co-Executive Director

Another Great Race

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[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_button _id=”4″ ][cs_content_seo]TAKE ACTION: Tell the House and Senate Finance Committees to support a Green Bank for Alaska!\n\n[/cs_content_seo][cs_element_gap _id=”5″ ][cs_element_text _id=”6″ ][cs_content_seo]We are familiar with races against time in Alaska: think of the Serum Run of 1925, where brave mushers relayed diphtheria antitoxin to the people of Nome through minus eighty temperatures to save the population from devastation by the spreading epidemic. Think of a salmon season when millions of fish pass through a fishing district at the peak of the run and fisherfolk catch as much as they can hold because soon the peak will pass. Think of all the birds and beasts out there feasting furiously in the months of light to get enough fat for winter or migration. Think of the end of the legislative session when staff and lawmakers endure marathon floor sessions, often all night long, trying to get their priorities addressed before the last gavel falls.
The home stretch is before our lawmakers, the end is nigh (May 17th), and it is motivation enough to move some bills along. The obvious trouble is that 60 legislators and a governor are shepherding bills forward with numerous pinch points and gates along the way. Only eight bills have passed the legislature so far this session. We can expect a few more but not many. Traffic is backed up for miles. 
The Governor’s bills to establish an Energy Independence Fund (aka a Green Bank), HB 154 and SB 125 are in the House and Senate Finance Committees. It is crucial these bills pass the legislature this session for a few reasons. States with established Green Banks are in a more competitive position to receive federal funding for clean energy programs under the $27 billion Greenhouse Gas Reduction Fund administered by the Environmental Protection Agency (EPA). Funds are to be allocated by September 2024. Since it will take time for the Alaska Housing Finance Corporation to establish the Green Bank after it is signed into law, it makes great sense for the legislature to act now. The next twelve days could determine whether we are eligible and prepared for a massive investment in clean energy and transportation projects that will save Alaskans billions of dollars on electric, home heating, gasoline, diesel, and car maintenance bills. No pressure!
Federal investment tax credits for renewable energy projects were extended for a ten-year period under the Inflation Reduction Act. Another clear reason for the AK Legislature to pass a Green Bank this year is that the clock is ticking on the decade of available tax credits. These are significant, historic tax credits. With a Green Bank to provide low-interest financing and tax credits to incentivize purchases, energy efficiency construction projects, and rooftop and community solar projects will skyrocket in Alaska, providing good-paying jobs. By not moving the Green Bank bills this year, another year in the life of the IRA tax credits will be gone.
The race is on. Tell the House and Senate Finance Committees to prioritize HB 154 and SB 125 this session. Time is money, as they say.  
Urgently yours,
The Alaska Center

\n\n[/cs_content_seo][cs_element_button _id=”7″ ][cs_content_seo]A Green Bank is Good For Alaska!\n\n[/cs_content_seo][cs_element_gap _id=”8″ ][/cs_element_layout_column][/cs_element_layout_row][cs_element_layout_row _id=”9″ ][cs_element_layout_column _id=”10″ ][cs_element_button _id=”11″ ][cs_content_seo]Bills To Watch\n\n[/cs_content_seo][/cs_element_layout_column][cs_element_layout_column _id=”12″ ][cs_element_button _id=”13″ ][cs_content_seo]More Hot Takes In A Cold Place\n\n[/cs_content_seo][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content]

Sun and Wind 4EVER

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TAKE ACTION: Support the Renewable Portfolio Standard legislation

Sun and Wind. When we hear people say that solar and wind are new and variable energy sources, it calls into question their understanding of historical facts. The sun reportedly has been pumping energy out for 4.5 Billion years. The wind got started on Earth probably at around the same time as the Earth came to have air molecules to move, not long after it came together as a planet, also approximately 4.5 Billion years ago.

There is often an argument that the only reliable energy source is from fossil fuels. The next time some old duffer starts going on about fossil fuel reliability, you just tell them “hooey” – their vaunted fuels are just experimental in the grand scheme of things – the most mature fossil fuels are from a period a mere 419 million years ago. That is barely a blip compared to the reign of solar and wind energy. It makes sense that humankind plans to return rapidly to solar and wind energy after dabbling in strange, experimental energy like fossil fuel. Our sun and wind are ancestral, time-tested, ancient power sources, and people like a sure thing.

The cost to harness the oldest and best energy is falling by the day. Check out any graph comparing the cost of new solar installations with the price of natural gas and coal power generation. The price of solar energy has dropped precipitously over the past decade. Combine this with a federal infrastructure funding package that prioritizes renewable investments and sweetens the pot with tax incentives. Combine this again with a moral case for energy sources that don’t emit greenhouse gasses, and you have a recipe for change. Perhaps not as quick as some would want, or that is sufficient to save us from climate disruption, but a fundamental change.

Right here in Alaska, not only in one, but now in two legislative sessions, legislation has been introduced to force/mandate/require electric utilities to get free from high-cost fossil fuels and switch to 80% renewable sources for generating electricity by the year 2040. There is obviously a belief that electric utilities can achieve this goal, or else the bills would not have been introduced at all, much less receive hearings. Utilities are setting internal goals; for instance, the Homer Electric Association has a board policy that calls for 50% renewable electricity by 2025 – based on the State of Alaska’s own aspirational policy goal.

On Thursday, House Bill 121 had an introductory hearing in the House Special Committee on Energy. This bill would establish a Renewable Portfolio Standard (RPS) for Alaska’s utilities and drive investment in lower-cost renewable energy. As a Cook Inlet natural gas supply shortage and corresponding sharp energy price increases are looming on the horizon, it is high time our utilities act to incorporate more and more and more wind and solar, and battery storage. That is another reason why RPS legislation is getting airplay this year. Even the most stalwart fossil fuel devotee must face the fact that something has to give. If utilities do not diversify into renewable energy, and the state has to import liquified natural gas, the cost to consumers will skyrocket from a place that seems already pretty high. The economy will suffer, homeowners will suffer, business overhead costs and government operating costs will increase, and heads will roll. You get the picture.

The committee heard testimony from Hawaiʻi State Energy Office on the 50th state’s RPS and its transition away from imported fossil fuels. Price volatility in imported fuel drove consumer sentiment in Hawaiʻi toward a successful energy transition. Alaska and Hawaiʻi are related in their remoteness, the timing of their statehood battles, their otherness, and the fact that half of Alaska vacations in Hawaiʻi – these states have a ton in common, not to mention sun and wind. Ours is a different sun and a different wind but just as mighty and ancient. If Hawaiʻi can go renewable, there is no doubt that Alaska can follow suit.

Another hearing or two on HB 121 should be held this session. The bill has a good chance of passing next year with your support. Stay tuned, but first, get out in that spring sun and feel the 4.5 Billion years of past, present, and future awesomeness on your unique and very special face.

Sincerely,
The Alaska Center

The unchecked leaks: Tax Loopholes, and Sliding Scale Credits

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[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_text _id=”4″ ][cs_content_seo]If our state were a car (of course, our state would never be a mere car, it would be a badass F-350 Ford truck with an obnoxious decal on the rearview window and a snowmachine in the back), but say it was an automobile of some kind, it would be wise for the operator to take heed of leaking fluid left on the ground in the parking lot – be it oil or be it antifreeze or any other toxic ooze from the underbelly. A sound and sober assessment would lead the driver to fix the leak so the engine did not blow up.  
We need the Alaska State Legislature to do this with the S-Corporation loophole that allows Hilcorp to reap huge profits in Alaska and pay no corporate income tax, taking all of the money back to Texas HQ. At the same time, our education system teeters in a funding crisis. Of even greater fiscal importance, the legislature needs to address the sliding scale tax credit it gives to oil companies that have already deprived the state of Billions in revenue that could have gone toward building up our state.
Alaska seems stuck in a strange acceptance of a condition that is not right or well or normal. We do not need to accept underfunded schools, leaky roofs, potholes up the wazoo, insignificant investments in renewable energy, bridges, ferry vessels, ports, libraries, and museums. We don’t need to be saved by federal investment (though it helps) – we have the tools to fix the problem, and we have the problem right in front of us seemingly every year since the passage of the abysmal SB 21 oil tax policy/blatant give-away/almost criminally insane financial maneuver.
The good news is that there are options for addressing the roughly $600 million budget deficit. Not all of them are politically realistic in the current zeitgeist – say zeroing out the permanent fund dividend or imposing a progressive income tax. Some are realistic, including requiring oil companies incorporated under IRS Code as S-Corporations, to pay state corporate income tax. The Department of Revenue has estimated this would bring an additional $47 to $61 million per year into state coffers. On the other hand, the oil tax credit system deprived the state of an estimated one Billion dollars in Fiscal Year 2022. Modifying the oil tax credit system through simple tweaks could bring in enough revenue to bridge the deficit gap. These changes could solve our deficit promptly instead of imposing a broad-based sales or income tax, which would take a few years to set up before the state would see increased revenue. The simplicity and the immediacy of this fiscal fix makes it essential.
Another reason to take note this year specifically – is that these changes are proposed in a bipartisan piece of legislation sponsored by the powerful Senate Rules Committee, SB 114. Rumor has it that many lawmakers and the Governor are keeping their ears open to the proposal. As the legislative session enters its final stretch, there seems to be some cohesion around the idea that something needs to happen on the fiscal front and that the oil and gas industry needs to be at the table providing solutions and helping with the hard work. SB 114 is a reasonably moderate proposal – it simply would have Hilcorp pay the same tax that the other majors, Exxon and Conoco, are already paying. It would not do away with tax credits. It reduces them and ties them directly to capital investment in Alaska. 
We know from history that nothing is straightforward regarding the oil tax code or any tax code for that matter. It is a cozy nest and a protective bramble for attorneys, accountants, and few others. Please expect that the legislature will be very deliberative when it comes to significant changes, not wanting to upset the status quo or break any eggs in the process. SB 114 might be just the ticket. It makes fiscal sense, gets us out of our deficit problem, and would make a rounding error dent in the profit of our major oil companies.  
Tell your Senator you support this fix, so Alaska can keep on Truckin’.
Vroom, Vroom,The Alaska Center

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