Tag Archive for: alaska resources

Our Piece of the Pie

/in , , ,

Getting a piece of the pie can be a great motivator for states. The sweet aroma is hard to resist when there is a $27 Billion pie to be allocated to energy efficiency, renewable energy, clean transportation, battery storage projects, and more. As the benefits of the Inflation Reduction Act programs begin to spread across the nation, we can almost see Biden and his administration smiling at the kitchen window of the White House in the spring sun, wearing flour-dusted aprons.

Earlier this year, the Environmental Protection Agency (EPA) unveiled guidance on how states and nonprofit groups can apply for $27 billion in funding from a Green Bank that will provide low-cost financing for projects intended to cut planet-warming greenhouse gas emissions. The EPA expects to award $20 billion in competitive grants to as many as 15 nonprofit groups that will work with local banks and other financial institutions to invest in projects that reduce pollution and lower energy costs for families. Another $7 billion will be awarded to states, Tribes, and municipalities to deploy a range of solar energy projects, including residential rooftop solar, community solar, and solar storage.

We are glad, then, that Alaska has chosen to go after new federal clean energy benefits in earnest and not die of deprivation on some hill of partisan spite while other states gobble up the positives. Alaska has, along with every other state in the United States (except the self-sabotaging states of Florida, Iowa, South Dakota, and Kentucky), applied for funding under the EPA’s climate pollution reduction grant program, which will help our state lay the foundation for climate action. The Dunleavy Administration has also reprised a state Green Bank framework in legislation to position Alaska to receive federal start-up funding.

As a refresher, because The Alaska Center and our partners have supported its establishment in Alaska for many years now, a Green Bank is an entity established in state statute – but it can be established as a nonprofit – which facilitates public/private lending partnerships to move large scale clean energy projects forward. Having the support of government capital to take the risk out of private lending arrangements increases the security of large-scale loans and brings traditional financing entities to the table.

Last year, the Dunleavy Administration proposed establishing a Green Bank structure in the Alaska Industrial Development and Export Authority (AIDEA). This put a lot of NGOs and Tribes on edge due to the lack of transparency in the AIDEA board decision-making process and the fact that AIDEA has invested heavily in questionable endeavors – buying up oil and gas leases in the Arctic National Wildlife Refuge after no actual petroleum company found them economic, for instance. This time around, the Dunleavy Administration is proposing the state Green Bank be established in the Alaska Housing Finance Corporation (AHFC), a more trusted entity with a track record of overseeing numerous successful energy efficiency projects such as the Home Energy Efficiency Rebate Program, and the Weatherization Program.

Senate Bill 125 and House Bill 154 to establish a Green Bank for the state of Alaska were introduced on April 5th, and the House version received a hearing this week in the House Energy Committee. These bills do not specifically reference a Green Bank, choosing instead to call it the Alaska Energy Independence Fund, but the functions will be the same. The legislative findings at the beginning of the bill state it simply enough:

“The legislature finds that permitting the Alaska Housing Finance Corporation to create a subsidiary to assist in the financing of sustainable energy development serves a public purpose benefiting the people of the state. The Alaska Housing Finance Corporation is empowered to act on behalf of the state and its people in serving this public purpose for the benefit of the general public.”
This is a simple but key statement. Sustainable energy development will create jobs, make our communities more efficient, independent, and resilient, and will decrease carbon emissions. If that is not a public purpose benefiting the people, we don’t know what is.
We expect that with the immediacy of EPA funding for states, and the fact that having a Green Bank in place will put Alaska in a competitive position to receive additional grants, the legislature will approve this concept, if not this year than next. There will be arguments about the unacceptable amount of federal spending – arguments that ignore the future cost of federal spending on climate-related disaster relief, arguments that ignore the cost of the Trump tax cuts, and the trillions we spend on other programs like national defense. Overall, though, the benefit of this smart federal spending – and a legal structure that will lead to additional private lending – will win the day. Alaska can and should get a piece of the pie on its plate. We deserve it!

Happy Spring,
The Alaska Center

Wing-and-a-Prayer budgeting for DEC

/in , , ,

[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 your senator you oppose 404 Primacy\n\n[/cs_content_seo][cs_element_gap _id=”5″ ][cs_element_text _id=”6″ ][cs_content_seo]The State of Alaska Department of Environmental Conservation (DEC) hopes to sell the Alaska State Legislature on a costly program to take over responsibility for federal permitting of wetland development. This comes at a time when the legislature faces a deficit of between $400 and $600 million, depending on the level of funding they arrive at for a boost to our education system. It also comes when the state lacks any credible fiscal plan to bridge the deficit gap aside from drawing down savings accounts.
The program DEC hopes to burden the state with is called “Clean Water Act Section 404 primacy”. The 404 permitting program regulates the dredging and filling of wetlands and waterways for construction projects, including large mining projects, often in sensitive salmon habitat. The federal government handles this responsibility for (almost) all states because the federal government has the resources to do the vast and complicated job. States generally do not have the resources. Alaska definitely does not. Exhibit A) $½ Billion deficit and no fiscal plan. Three states: Michigan, New Jersey, and Florida have assumed 404 permitting primacy, and all of these states are having trouble maintaining them.
Under the Clean Water Act, a state can apply to take over the program if it can demonstrate that the state program is equivalent to the federal program. Already, the lowball cost estimates that DEC has provided make it clear that Alaska intends to take over the program and do the bare minimum to meet the federal requirements. Currently, the federal program requires 49 staff with an annual budget of $7.9 million. DEC has requested $5 million for a program run by 28 staff. The likelihood that an understaffed and underfunded state permitting program will do a lousy job and be hit with lawsuits is absolute. Part of the DEC’s rationale for wanting to assume the program is to “speed up” the permitting process. Remember that these are highly complex permits, often in sensitive salmon wetland habitat, in a state with the most wetland habitat. A state that is drawn together by salmon, if nothing else. The true cost of this program to state coffers has been grossly underestimated.
Lawmakers in the House Finance Committee saw the wisdom of denying the proposed $5 million increment increase to create a new DEC bureaucracy and took it out of the budget, allocating the money to a program that actually has a proven track record: Head Start. The budget then moved to the full House floor and the wild and wooly full House amendment process, where it was added back in through some clever political maneuvering on a vote of 18 against, 22 for. The hypocrisy is rich in lawmakers acceding to the creation of a new bureaucracy with only the vaguest idea about outcomes – especially those who bemoan “outcomes” in education while voting to starve that critical system.
If the idea is that DEC wetland permitting will improve economic outcomes for Alaska, one has to only look to our takeover of federal wastewater permitting. In the decade since we took over the responsibility for wastewater permitting, under the same rationale as today’s push for 404 primacy, our state’s economy has not been bolstered by more lax wastewater permitting. In fact, we have plummeted and are stubbornly at the bottom of most national rating systems as far as economic activity. The argument that assuming wetland permitting will ultimately pay for itself through increased permit issuance and permit fees is also a sham. Since DEC took over the federal wastewater permitting agency, funding has consistently dropped, causing many of its core programs to be severely underfunded. The legislature would do well by revisiting self-serving assumptions made by extractive industry boosters about the connection between permitting and the overall economy. To be open for business, a lot of actual choices will have to be made about broad-based individual taxes, closing corporate tax loopholes, and funding early childhood and social services programs. Creating a new state bureaucracy to craft shoddy development permits that will not protect salmon, will be constantly challenged in court, and will cost Alaskans well over the $5 million a year figure being foisted on the legislature (easily $10 million a year by some estimates) is no way to get there.
The state Senate still has yet to start working on its version of the operating budget. From there, the budget differences will be hashed out by House and Senate conference committees, so there remain plenty of opportunities to call on the legislature to remove the proposed money for DEC wetland permitting primacy. The fact that the House Finance Committee chose Head Start over creating more DEC bureaucracy should give us hope that many lawmakers in the Senate will choose the future instead of the past in their decision-making.\n\n[/cs_content_seo][cs_element_gap _id=”7″ ][cs_element_button _id=”8″ ][cs_content_seo]Tell Alaska’s legislators to protect our budget and defend our fisheries\n\n[/cs_content_seo][cs_element_gap _id=”9″ ][/cs_element_layout_column][/cs_element_layout_row][cs_element_layout_row _id=”10″ ][cs_element_layout_column _id=”11″ ][cs_element_button _id=”12″ ][cs_content_seo]Bills To Watch\n\n[/cs_content_seo][/cs_element_layout_column][cs_element_layout_column _id=”13″ ][cs_element_button _id=”14″ ][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]

An RPS Revival

/in , , ,

[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]The Renewable Portfolio Standard (RPS) policy has been revived and resurrected from the past legislature, and looks at this point much better than the version that died in committee last year. SB 101 was recently introduced in the Senate, and a companion was introduced in the House, HB 121. These bills establish renewable energy benchmarks for electric utilities to meet in an effort to transform our electric energy sources away from fossil fuels. Like last year’s proposal, utilities would be required to provide electricity from renewable energy resources in the following percentages and by the following dates – 25% by December 31, 2027; 55% by December 31, 2035; and 80% by December 31, 2040. If a good faith effort is not made by utilities to reach these percentages, fines are levied.
Unlike last year’s severely watered-down and over-complicated version – this new legislation starts fresh. It does not allow nuclear energy to be considered “renewable,” nor does it allow waste heat recovery from natural gas combustion to be categorized as “renewable.” Both items will surely be on the utility wish list for amendments to the RPS as it moves forward. To increase residential solar energy as a way of contributing more renewable electrons to the grid, the new RPS policy modifies the existing net energy metering policy by allowing home and business owners who put up solar panels and accrue credits for the energy production beyond what they use, to use these credits throughout the year. Current regulations require that all surplus energy is credited to your next month’s bill. This RPS also sweetens the solar pot by requiring that the credits for surplus energy be at the utility’s retail rate. Current solar regulations nickel-and-dime home solar producers by crediting their surplus energy at a much lower rate.
Anticipate electric utilities uniformly chafing at the idea of having their investment decisions mandated by the legislature, but don’t be fooled – transmission, generation, and distribution of electricity are inextricably linked to public regulation and swayed by public policy decisions. This happens daily, across the nation. To be fair, these decisions are complex. The process of filing tariffs and making rate cases before regulators can be time-consuming and costly, but it is simply the price of doing business as a utility.
Utility managers have a unique advantage in swaying lawmakers as they are the experts in the energy field, while most of our elected officials juggle general knowledge of multiple matters and seek out experts to inform their decisions. Hence, when a complex piece of legislation is brought up in committee, those with significant technical, financial, and legal knowledge are often given greater deference. However, in the case of our unique, member-owned, Board of Director-governed non-profit utilities, we Alaskan rate-payers need to be heard, loudly, in the legislative process. We are the ones paying extremely high electric rates as the price of natural gas increases due to looming supply shortages.
This is the right time for an RPS policy. The legislature has recently mandated that utilities work together to craft system reliability standards and a planning process for new generation. The federal government has unleashed billions of dollars for renewable energy, including a direct payment for non-profit utilities that build new renewable generation facilities. Utility managers are working together more collaboratively than in decades past on upgrading the railbelt transmission system and battery storage facilities. Also, of vast importance, the price of renewable energy is plummeting at a rate never before seen in history. At the same time, we are tied to a monopoly supply of natural gas in the Cook Inlet basin, ever increasing in cost despite years of subsidies from the state’s general fund.
Let’s keep the new RPS policy from falling prey to complex and unending rewrites and delay tactics, utility in-fighting, byzantine attorney tricks, and old costly dogmas about Alaska always and forever needing oil and gas to thrive. It’s time we move in an orderly fashion into the future that is renewable energy guided by a clear RPS policy. Write your legislators today, tell them Alaskans support the RPS.
Keep up the good work, friends, and we will talk to you soon.
The Alaska Center

\n\n[/cs_content_seo][cs_element_gap _id=”5″ ][/cs_element_layout_column][/cs_element_layout_row][cs_element_layout_row _id=”6″ ][cs_element_layout_column _id=”7″ ][cs_element_button _id=”8″ ][cs_content_seo]Bills To Watch\n\n[/cs_content_seo][/cs_element_layout_column][cs_element_layout_column _id=”9″ ][cs_element_button _id=”10″ ][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]

Do Your Damnedest, and Fight

/in , , , ,

With Representative David Eastman grabbing headlines as he is prone to through his outrageous, racist, stupid, dull, and performative statements, and with Senator Murkowski offering the sobering reminder that our great state is losing population like a deflating balloon, it is tempting to fall into the trap of the February blahs.

Take heart! The fact that the whole State House unanimously and rapidly condemned Eastman’s latest statements on the deaths of violently abused children is a sign that we have not lost our collective sanity. The fact that Education funding is top of mind with many lawmakers is a sign that we have an eye on the state’s future. The fact that a multipartisan caucus of first-year lawmakers has formed in the House and a mega-gigantic super bipartisan majority has formed in the Senate is important.

We have seen food security, bycatch reduction, and renewable energy become more than just vague talking points on the lips of our politicians over the past few years. We have seen our federal delegation come together to support broad infrastructure legislation. We have a new marine highway vessel in the works. The Pebble Mine has been set back significantly by the Environmental Protection Agency. Juneteenth and Indigenous Peoples Day have just been added as Anchorage Municipal holidays. Things are looking up (perhaps we caught the eddy in the metaphorical climate change river rushing towards floods, searing heat waves, drought, pestilence, and swarms of insects).

Now is not the time to give up.

In the immortal lines of poet Robert Service, “You’re sick of the game!” Well, now, that’s a shame. You’re young, and you’re brave, and you’re bright. “You’ve had a raw deal!” I know — but don’t squeal, Buck up, do your damnedest, and fight. It’s the plugging away that will win you the day, So don’t be a piker, old pard! Just draw on your grit; it’s so easy to quit: It’s the keeping-your-chin-up that’s hard.
We will be back in Juneau next week, meeting with lawmakers on our priority Democracy legislation. The specific bills we are supporting are SB 19 and HB 37, which would require the Alaska Division of Elections would to provide stamped return envelopes for absentee ballots, automatically check voters’ signatures, allow voters to fix their absentee ballot signature if there’s a problem, and create a ballot-tracking system viewable by the public. While the effort to repeal our Ranked Choice Voting/Open Primary law will go nowhere in the legislature (but will be a significant fight as a ballot proposition), bills to protect voters’ rights are in the hopper. These must move forward to ensure that all votes, and all voices, are heard in these critical elections that will help rebuild our state.

We will also circle back with lawmakers on our priority clean energy legislation: extension of the Renewable Energy Fund, creation of a Community Solar law, a Renewable Portfolio Standard, and a Green Bank for Alaska. The passage of these bills will help us create the Alaska we want to see for our children and grandchildren.

Thank you for your support,
The Alaska Center

In the shadow of the clean energy wave

/in , , ,

[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]Since the passage of the federal Inflation Reduction Act (IRA) last summer, there has been a sense that a great tsunami is brewing, originating in Washington D.C. (at the Department of Treasury, Department of Energy, Environmental Protection Agency, and other solemn bureaucratic bunkers) rumbling and growing and about to sweep across the nation with transformational power.
In the interim between the passage of the act and the process of developing rules and programs to implement the IRA, skeptics have filled the void with dark muttering about the cost (while ignoring the cost of the Trump tax cuts and ignoring the cost of doing nothing on climate change) and the States, Local Governments, Tribes, Utilities, Nonprofits and others who will see the benefit have endured a vague worry that they are not doing enough to prepare, not hiring enough grant writers and researchers and/or creating programs that can receive federal funds.
We know the following is about to roll across the nation: $9 Billion in Home Energy Rebates, $1 Billion in Energy Code Assistance, $14 Billion in Clean Energy Business Loans, $ 9 Billion in Energy Grid upgrades, $1 Billion for Affordable Housing, $7 Billion for Clean Transportation, $277 Billion in Energy Tax Credits, $27 Billion for the Greenhouse Gas Reduction Fund, $3 Billion for Environmental Justice Block Grants, $12 Billion for Rural Energy Assistance, $2.6 Billion for Coastal Climate Resilience programs, and $7 Billion for various other clean energy initiatives. Soon programs associated with these pots of money will start to take shape, and that is when we will begin to see the impacts of this most historic investment.
On Feb. 14, the Environmental Protection Agency rolled out its plans for the $27 Billion Greenhouse Gas Reduction Fund with a goal to open up competitive funding rounds this summer for two separate programs – a General and Low Income Assistance competition and a Zero Emissions Technology Fund competition. Also recently, the Department of Energy created the Office of State and Community Energy Programs to implement programs flowing from the IRA and the previous Bipartisan Infrastructure Law.
Don’t expect to go to sleep in an unjust, carbon-belching world and wake up in an electric futurama where environmental equity is solved. The IRA is going to take time. Probably the benefit of many programs will not be fully realized before the next presidential election. While it is up to the Biden Administration to tell the story of the clean energy, clean transportation, clean jobs, and resilient infrastructure, the environmental justice in the IRA, the transformation spurred by the IRA will well outlast this administration and the subsequent foreseeable administrations.
Some things will be realized sooner than later. The energy tax credits alone, with the provision that nonprofit utilities can receive a direct payment for renewable energy generation – this will completely transform the economics of the construction and operation of grid-scale wind, hydro, and solar in the near term. We also know right now that those paternalistic Boomer tropes about petroleum being the lifeblood of the American economy will soon be shaken, and soon, with the rumblings of the oncoming clean energy tsunami.
You can get involved as soon as next week! On Feb. 22 at 3 PM, the EPA will hold a listening session to hear ideas from community-based organizations and grassroots energy and environmental justice organizations to create an effective and equitable Home Energy Rebate program. >>> Register here
On Feb. 23, 9 AM, the EPA will hold a similar listening session but for equity-focused implementors and advocacy organizations. >>> Register here
Reach out to your lawmaker and Governor Dunleavy and ensure they know that you support their efforts to create programs in Alaska that can utilize the firehose of federal funding.
Take care,
The Alaska Center

\n\n[/cs_content_seo][cs_element_gap _id=”5″ ][/cs_element_layout_column][/cs_element_layout_row][cs_element_layout_row _id=”6″ ][cs_element_layout_column _id=”7″ ][cs_element_button _id=”8″ ][cs_content_seo]Bills To Watch\n\n[/cs_content_seo][/cs_element_layout_column][cs_element_layout_column _id=”9″ ][cs_element_button _id=”10″ ][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]

OPINION: Time to prep your solar garden

/in

Alaskans understand working together to help each other thrive. We have community hunts, mutual aid networks and community gardens all across the state. We come together to use a common plot of land to increase the harvest for all, but we can garden more than food: We can garden electricity!

Gardening is a great way to boost your mood, spend some time outside and save a bit of money on food. We could all use the extra sunshine and a few dollars saved on groceries, but how do you garden if you live in an apartment? What if your yard just doesn’t get the sun you need, or you’re not quite sure how to make those nice raised garden beds? Join a community garden! You can build community, share space with your neighbors, and get all the benefits of a garden in your backyard without needing a backyard. Solar gardens can solve the same problems for people looking to invest in renewable energy.

Solar energy has been gaining a lot of popularity in Alaska over the last few years. The same summer sun that grows us record-breaking veggies also produces power that helps Alaskans all across the state save money on their energy bills and reduce their dependence on fossil fuels. I help facilitate Solarize programs in Mat-Su and Anchorage communities whose goal is to help people get solar on their homes, but as the renter of a log cabin hidden in the woods, I can’t put solar on my roof. It wouldn’t get enough sunlight, and I would have to pay for structural remodels of a house I don’t own. A solar garden would let me, and others like me, invest in a solar setup located in a clear sunny patch and save money on my electric bill without the cost of a remodel.

Solar gardens are made possible by community solar programs. Community solar is a system where individuals can invest in and share the benefits of a solar array not located on their property. Each person who holds a share of the community solar array will see their portion of clean, sustainable energy on their utility bill each month. Programs like these significantly reduce solar costs, helping make solar more accessible to folks who don’t have a roof to put their solar on and who can’t afford to put solar on their roof.

While Alaska does have the second-highest energy prices in the U.S., we do not have legislation permitting community solar. Forty-one other states already have community solar projects up and running, and we can join them if our legislators pass a bill allowing us access to solar gardens. For many of us, access to energy is just as important as access to food, and both commodities’ prices are increasingly challenging to afford. If you want to grow some electricity in a solar garden near you like I do, then we will need our leaders to make policy decisions to ensure community solar is possible here. It’s time to plant those seeds for community solar this legislative session.
Rachel Christensen is a community organizer for The Alaska Center who loves clean energy, dog walks and new crafts.

Originally published on January 27, 2023 by the Anchorage Daily News.

Tall Mike tap dances carbon policy?

/in , ,

[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]Predicting the actual future from a Governor’s State of the State address is often pointless. They are crude indicators at best. As a ceremony, they are at least consistent: handshaking upon entry, some levity, the introduction of noteworthy Alaskans including the love of their life spouses, lots of clapping, people standing awkwardly in the gallery for recognition, then onto the meat and potatoes of the speech – usually, no, definitely always – this is an aspirational monologue containing bits about hope for the future, the promise of our people, the threats we must face and fight, being open for business, having lots of trees and gold and fishes and petroleum, looking ok or bad financially, etcetera, add a personal story here or there and a wrap up with god blessing us all each and everyone and the great state as well amen.
Governor Dunleavy is noteworthy because, in his State of the State speeches, he is very tall. He also looks seriously P.O.d most of the time. When he says he will go after criminals and lock them away for good, you tend to believe he is serious in his intent and means to do it himself physically. As he has warmed to the job of Governor and is looking at a whole new four years, many commentators and lawmakers noted that his State of the State seemed more conciliatory than in the past. But wait! In the middle of his address, he stated he wanted Alaska to be the “most pro-life state” in the nation. Historically, the Governor has wasted a lot of time with controversy, so throwing anti-choice bombs is in line with his former approach. The rumor is that pragmatic strains could be emerging on the third floor. There is certainly plenty of work to do, as the Governor alluded to, from fentanyl overdoses to food security, that will benefit from a working relationship with the lawmaking body.
One area the Governor highlighted as a policy direction is the exploration of the carbon sequestration credit market for Alaska. We have yet to see the specifics. Generally, a carbon credit represents 1 ton of carbon dioxide removed from the atmosphere. A company can purchase credits to make up for carbon dioxide emissions that come from industrial activities, delivery vehicles, or travel. The State of Alaska currently needs a legal structure in place to participate in existing carbon markets by designating forest, tundra, peat bog, and other lands, and kelp forests as carbon sequestration acreage.
If he devotes time, energy, and resources to this policy option, he could score a win. The catch is that it might require cooperation with hippy states like California – California’s carbon cap-and-trade program is one of the world’s largest multi-sectoral emissions trading systems. It will also require a solid ground-game in the legislature to convince skeptical members of the benefit of leaving certain forests un-clearcut, certain wetlands un-mined, etc. It will be a delicate dance, and we have yet to see this Governor step onto the ballroom floor. Perhaps he is a secret Fred Astaire.
Valuing forests and tundra for their ability to sequester carbon naturally can mean that these green things are afforded more protection. The whole “mechanically capturing carbon from the atmosphere and pumping it into caverns in the earth” is a bit vaguer of a concept. The jury is out because no bill has been introduced, but we will be watching with interest. It is by no means a simple fix or a simple issue. Some of our good friends and allies in the climate fight view the carbon market issue with great skepticism. Other friends like The Nature Conservancy have worked for years to promote the carbon market in Alaska and America.
The last time the legislature paid heed to carbon sequestration was in 2004 when former Representative Ethan Berkowitz sponsored, and Governor Frank Murkowski signed legislation requiring the state to investigate the issue. Many elections and events transpired after that, causing the issue to fall by the wayside. The recent success of Alaska Native Corporations gaining revenue by committing lands to carbon sequestration has provided some concrete evidence. Of course, there is the whole issue of the planet heating rapidly due to carbon emissions, and some adults in the room better do something soon, or we will all broil, but that is the part not said out loud. It will be a tacit recognition of the fact implicit in the policy action. There is plenty of that in the Dunleavy Administration, from last year’s Renewable Portfolio Standard and Green Bank bill to the current carbon discussion.
Many in the legislature and the Governor recognize that renewable energy is critical to addressing high energy prices. The Alaska Center applauds this and encourages bold policy action during this session. We will be hitting the ground running next week in Juneau, meeting with members of the legislature to discuss our top legislative priority this session which also seeks to address high energy costs: Community Solar. Here is the elevator pitch:
The majority of Alaskans support solar power. Net Energy Metering has proven to be extremely popular on the Alaska Railbelt. However, most Alaskans cannot install their own solar panels because they rent rather than own their homes or cannot afford the upfront installation costs. Community Solar allows communities and individuals to come together and purchase shared solar arrays at affordable prices. Community Solar puts the power in the hands of communities and individuals to decide where their energy comes from.
We will be shopping the concept around, addressing questions, and learning about concerns next week. Stay tuned for legislation shortly. All Alaskans deserve to benefit from solar energy, and we intend to help bring it to them.
See you soon,
The Alaska Center

\n\n[/cs_content_seo][cs_element_gap _id=”5″ ][/cs_element_layout_column][/cs_element_layout_row][cs_element_layout_row _id=”6″ ][cs_element_layout_column _id=”7″ ][cs_element_button _id=”8″ ][cs_content_seo]Bills To Watch\n\n[/cs_content_seo][/cs_element_layout_column][cs_element_layout_column _id=”9″ ][cs_element_button _id=”10″ ][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]

Climate Progress Ahead

/in , , ,

There is a thread in these facts. Joe Biden is arguably the most aggressive president on climate we have had, and this administration has shepherded through Congress the most significant investment in clean energy our country has ever seen. A national party has a majority in the U.S. Senate and will hopefully treat climate change as the dire threat it is. Alaska just elected the first Indigenous Alaskan woman to Congress who knows first-hand the impacts of climate change on northern lands, waters, and communities. The Governor, no great champion of Salmon or Democracy, has put forward bold renewable energy policies in the past and is compelled to diversify energy sources by a looming Southcentral natural gas shortage bearing down.

Similarly, major electric utilities are awakening to the fact that they must quickly diversify. The State Senate has organized a moderate bi-partisan majority with the goal of driving down energy costs as a key pillar of the coalition. While the State House has yet to organize, it will be hard for any majority to oppose further clean energy investment and legislation if it helps drive down costs for Alaskans. If we mind the connections, progress seems inevitable – but that is never the case. Progress will take a lot of work, a lot of voices, and a little time.
The Alaska Center understands that there are enormous resources now available to states, local governments, and utilities from the Inflation Reduction Act and that the political stars are fairly aligned. For our climate-oriented legislative priorities we will be working to pass a suite of state legislation that will move the needle on climate impacts. Our top priority is a bill that authorizes and provides clear guidelines for community solar projects. We will also be working with a coalition of organizations to pass legislation that sets a renewable portfolio standard for railbelt electric utilities, creates a clean energy investment bank, and extends the Renewable Energy Fund to facilitate utility-scale renewable energy projects.

All Alaskans should have access to the cost reductions and pollution reductions available to those with the financial means to take advantage of residential solar. Alongside individual and large-scale solar, Community Solar is a way for everyone to benefit from solar energy, even if they cannot afford or install a solar PV system. An array is built, and residents, from homeowners to business owners to organizations, can invest in the array. The production of that array will be reflected in our energy bills. This array can be managed by a utility or a community for off-grid regions and villages. Electric utilities like Chugach and Homer Electric Association have come close to adopting versions of community solar programs. We believe that providing a clear statutory framework for utilities and the Regulatory Commission of Alaska to follow will provide for community solar arrays in underserved communities.

Electric utilities in Alaska have been told by the sole provider of natural gas in Southcentral Alaska that long-term natural gas contracts will end after 2024. This injects instability into future budget forecasting for utilities, and monopolistic control of the gas supply generally guarantees utility customers will pay increased premiums for the cost of power from natural gas. A renewable portfolio standard bill must be re-introduced to push our utilities toward the inevitable and the cost-effective: more renewable energy, lots more, and fast. When Congress passed the Inflation Reduction Act this year, they authorized a provision that non-profit rural electric cooperatives across the nation have sought for years – direct payment equivalent to the federal tax credit that for-profit utilities and Independent Power Producers claim. This means that our utilities have significant federal backing for numerous shovel-ready renewable projects, which also deeply undercuts the utility manager’s argument that individual utilities cannot afford a massive transition to renewables and battery storage. As envisioned by the Governor last session, a renewable portfolio standard would have utilities reach 80% renewable generation by 2040. We will be working to see this framework pass the legislature.

Our other policy goals align with and will help our state achieve the 80% goal. Reauthorization of the Renewable Energy Fund (REF)-due to sunset this year, will maintain an essential space for new utility-scale renewable projects to be vetted and funded. Funding for the REF has lately been derived from the earnings of the Power Cost Equalization endowment. When the state was flush with oil money, the REF was capitalized by appropriations from the general fund. We must maintain a way to provide direct grants for large-scale renewable projects as we simultaneously mandate that utilities incorporate more renewable energy.

Alaska needs a clean energy investment organization to help coax the private lending industry into making low-interest loans for large-scale energy efficiency projects, clean transportation, and clean energy programs. The Inflation Reduction Act authorized the Greenhouse Gas Reduction Fund (GGRF), a $27 billion clean energy deployment bank housed at the Environmental Protection Agency. The GGRF is the largest single pot of funding enacted in the IRA. It gave EPA broad discretion to invest in clean energy technologies through Green Banks (entities that leverage public funding to attract private financing and advance green energy or energy efficiency projects). We will be working this session to ensure a state office is established to take advantage of federal GGRF funds, a significant portion of which is designated for investment in underserved communities.

The Biden climate investment, favorable political conditions in Alaska, decreasing natural gas supply and price certainty, and the upcoming legislative session are primed for clean energy progress.

2023 can be the year for clean energy progress in our state if we keep pushing our leadership to enact policy that works with and for all Alaskans.

To the future!

The Dust Settles and the Future Takes (a bit of) Shape

/in , ,

[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]After the fanfare of the general election fades away and the nail-biter races are called, the action moves to the task of legislative organization – who will be in charge of what, who will wield the levers of power, and who will not. This can take no time or a very, very long time, depending on the ideological schisms of those elected.
The State Senate has rapidly coalesced around a 17-member bipartisan majority. Likely this formation was in the works after the August primary numbers came in, given the patchy trend (but trend indeed) of voters electing the more moderate candidate. This organization has many strong champions of education at the helm, and recent statements indicate that the coalition’s focus will be to protect education, grow the economy and address high energy costs in Alaska. At this point, we are prepared for a pretty low-key fireworks show in the Senate compared to the last four years. We anticipate the Senate will be a strong barrier against Governor Dunleavy’s more damaging budget proposals.
The fact that the Governor previously proposed a Renewable Portfolio Standard and a Green Bank for clean energy investments last session, the fact that long-term natural gas supply contracts in SouthCentral Alaska are ending in 2024, the fact that the floodgates are open on federal clean energy infrastructure program money, and the fact that the state Senate is clearly indicating it wants to work on energy costs – are good facts for our legislative priorities at The Alaska Center.
Our priority goals to help Alaskans lower energy costs and to address climate change are as follows: 

Pass a Renewable Portfolio Standard that will allow Alaska Railbelt utilities customers to purchase energy from 80% renewable sources by 2040.
Pass Community Solar legislation that will allow more Alaskans to benefit from renewable energy.
Extend the Renewable Energy Fund. 

Stay tuned for more on these and other clean energy priorities in our next blog!
Whether the State House will rally around similar general goals (education, economy, energy) as the Senate is now an open question. The House is in a more protracted organizing process and will not know until after December 21 if one member is eligible to take his seat until the courts determine if he is in violation of the Alaska Constitution’s Disloyalty Clause. However the House organizes, the numbers trend toward moderation with 6 Independents, 13 Democrats, and 21 Republicans. We hope for a continued Bipartisan Coalition in the House that will work towards a more thriving, just, and sustainable future.
If the Governor is moderated by the Senate bipartisan coalition, the House Republicans will be moderated by the Governor’s goals – that is our prediction anyway. It bodes well for meat and potato issues like driving down energy costs for Alaskans through increases in clean energy, and we can work with that.
Talk to you soon,
The Alaska Center\n\n[/cs_content_seo][cs_element_gap _id=”5″ ][cs_element_button _id=”6″ ][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]

Alaska power companies look at building community solar farms that households can invest in

/in

[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]Two Alaska electric utilities are taking steps that could lead to the construction of the state’s first community solar farms, while a consumer interest group is drafting legislation that could support the efforts.
Advocates say the moves by the Anchorage and Fairbanks utilities could lead to projects that allow any household to invest in solar panels to reap their benefits, including low-income residents who can’t afford to install their own rooftop array like many Alaskans are doing.
Tom DeLong, board chair for the Golden Valley Electric Association in Fairbanks, said participants could invest in a share of a farm in potentially different ways, depending on how the utility might structure a plan. A ratepayer could make a one-time payment upfront, perhaps, or pay a tiny amount over time through a slightly higher electric bill. They could see lower electric bills in the years to come.
“It’s a hedge against rising rates,” DeLong said.
Chugach Electric Association, the largest utility in Alaska, is also beginning to take a new look at the idea of a community solar farm in Anchorage, after the Regulatory Commission of Alaska in 2019 rejected an earlier proposal from the utility, citing problems with details of the plan.
“Our members have expressed interest in community solar, so we are looking at the feasibility of another project,” said Julie Hasquet, a Chugach Electric spokeswoman.
Interest in the community farms, which have been implemented in many other states, comes as renewable use is growing in Alaska, and not just on rooftops. Private companies are undertaking ambitious efforts to build solar and wind farms, while utilities are also pursuing upgrades to the grid to support renewables. Driving factors include new federal tax incentives and uncertainty over future natural gas supply in Cook Inlet, the main source of electricity in Alaska.
[Construction of Alaska’s largest solar project gets underway in Houston]

‘Significant and vocal’ interest
Golden Valley Electric has directed its staff to study the idea of building a community solar array in Fairbanks, after a task force recommended that one be built on utility-owned land, DeLong said.
“We’re a cooperative, we’re owned by our members, and a significant and vocal group has expressed an interest in this,” DeLong said.
The task force recommended that residential ratepayers be allowed to buy a share of a panel to start with, and up to a full panel or more later, to facilitate broad participation in the project.
“We also recommend flexible eligibility that allows members to pre-purchase the panels in a six month or one year plan, in essence a Community Solar layaway plan,” the task force said in a report to the utility board. ”Smaller monthly payments will help accessibility by low to moderate income members in the community solar.”
The task force recommended the utility should quickly file a plan with the Regulatory Commission of Alaska.
The agency would approve how the payment is structured for participants, and would make sure a program does not discriminate against non-participants, DeLong said.

Chugach Electric will be informed by past effort
The Regulatory Commission in 2019 called Chugach Electric’s proposal for a community solar farm “confusing and undefined.” The agency raised concerns that all ratepayers would bear financial responsibility, not just the participants. But the regulators emphasized the state’s strong interest in renewable energy and said it did not want to discourage innovative programs.
That earlier proposal envisioned a solar farm built on utility-owned land in Anchorage, costing $2 million or less, with 2,000 panels. It could have generated about 15% of the power for about 500 participating households. Retail ratepayers could have made a prepaid investment or subscribed monthly, with the energy output of their share provided as a credit on monthly bills over the project’s 25-year life.
That earlier effort can inform this new proposal, Hasquet said. But Chugach Electric has no details proposed for this new round, Hasquet said.
“Understanding the concerns of the RCA with our previous project should help us craft a project that could get regulatory approval,” Hasquet said. “Many factors still need to be determined, including size, scope, and costs.”
[A small Fairbanks company wants to build Alaska’s biggest wind farms]
Chugach Electric recently sent a survey to “the more than 600 members who had shown interest in our 2017/2018 community solar project,” Hasquet said in an email. “We had a list of members who had asked to be kept informed of progress on a project. We believe that is a good place to start on determining the feasibility of a newly designed project.”

Groups working on draft legislation
The Alaska Public Interest Research Group is working with groups such as The Alaska Center to finalize draft legislation that could help enable the creation of the projects in Alaska, if it is approved by the Legislature, said Phil Wight, a policy analyst with the group.
The consumer interest group supports community solar farms because they’re another way to lower electric rates, he said. The Alaska Center also highlights climate benefits as another good outcome, as solar power replaces energy from fossil-fuel sources such as natural gas.
Legislation supporting community solar farms could create jobs, diversify the economy and help Alaska achieve its goal of 50% renewable energy by 2025, said Rachel Christensen, clean energy organizer with The Alaska Center.
[CIRI looks to triple power at Fire Island wind farm]
Wight said it’s a promising time for the projects in part because tax credits in the federal Inflation Reduction Act passed in August could cut project costs in half, or more.
“It’s really about bringing the lowest-cost energy to Alaskans,” he said.

Originally published on November 27, 2022 by the Anchorage Daily News.\n\n[/cs_content_seo][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content]