Legislation
New laws point Alaska toward a brighter energy future
On June 16, Gov. Sean Parnell signed into law two energy bills passed by the legislature that will provide long-term, far-reaching benefits for communities around the state, and help secure a more sustainable energy future for Alaska – Senate Bill 220 (the Alaska Sustainable Energy Act) and House Bill 306 (establishing a statewide energy policy).
House Bill 306 will establish a 50% by 2025 renewable electricity goal for the state, one of the most aggressive in the country. The bill, which was drafted with the help of a diverse group of energy stakeholders from across the state that the House Special Committee on Energy pulled together, also sets a goal to reduce per capita electricity use in the state by 15% by 2020.
Among other things, Senate Bill 220 gives the Alaska Housing Finance Corporation bonding power to create a $250 million revolving loan fund to help finance energy-efficiency retrofits in public buildings across the state. The legislation also mandates 25% of the state’s public buildings actually be retrofitted by 2020. Buildings consume nearly 40 percent of the energy in United States.
Both bills are the result of an extensive public process, which involved hearings across the state over the past two years by the Senate Resources Committee and House Special Committee on Energy. House Bill 306 was also unique in that a diverse group of 16 citizen stakeholders, including business leaders, federal agency officials, and environmental and civic group representatives, spent six months helping craft the legislation.
REAP applauds the stakeholder group and the legislature on their work, including House Special Energy Committee co-chairs Charisse Millett (R-Anchorage) and Bryce Edgmon (D-Dillingham) and Senate Resources Committee co-chairs Sen. Lesil McGuire (R-Anchorage) and Bill Wielechowski (D-Anchorage).
Across the country and world, governments and citizens are recognizing the need to be more efficient with their use of energy, and to diversify their energy sources. Six states, including Texas and Minnesota, now get more than 5% of their electricity from wind power, and Iowa generates nearly 19% of its electricity from wind. Alaskan communities are also making strides to diversify their energy sources using wind and geothermal power, and to make their homes and businesses more energy efficient. This legislation builds on those efforts, and moves Alaska in the right direction.
Highlights of the Legislation:
SB 220: Alaska Sustainable Energy Act
• Authorizes the Alaska Housing Finance Corporation to issue $250 million in bonds to capitalize a new revolving, low-interest loan program to fund energy efficiency improvements in public buildings
• Mandates energy efficiency retrofits by 2020 in 25% of the state’s public buildings that are 10,000 square feet or larger not including legislative or court buildings
•Establishes a new Emerging Energy Technology Fund to demonstrate energy technologies likely to become commercially viable within five years
•Tasks the governor with evaluating how best to coordinate the State’s energy departments and programs in order to avoid duplication of efforts and provide a plan to the legislature by January of 2011.
HB 306: House Omnibus Energy Bill
• Establishes a statewide energy policy that focuses on how Alaskans will get their energy in the future
• Sets a goal for Alaska to have 50% of its electricity from renewable energy by 2025
• Sets a goal to reduce per capita electricity use in the state by 15% by 2020
The state budget also contains more than $78 million more for various energy efficiency and renewable energy projects and initiatives across the state, including:
Renewable Energy Grant Fund: $25 million
Power Project Fund – $10 million
Large-scale hydro planning for the Railbelt – $10 million
Alaska Energy Authority – Alternative Energy and Energy Efficiency - $8 million
Statewide Energy Plan Development – $2 million
AVTEC Alternative Energy Training Facility Expansion – $1 million
Alaska Housing Finance Corporation (AHFC) State Energy Program Special Projects -$300,000
AHFC Weatherization Program – $4 million
AEA – Interest from Renewable Energy Fund – $2 million
AHFC Energy Assurances/Smart Grid Resiliency Program – $262,000
AHFC Energy Efficiency Monitoring Research – $1 million
Emerging Energy Technology Fund – $2.4 million
Blue Lake hydro expansion in Sitka – $15 million
April 12 Legislative update: SB 220 and HB 306
SB 220 will help ensure Alaskans have a steady, long-term supply of energy at stable prices. Among other things, it establishes a statewide energy policy, creates an Emerging Energy Technology Fund, and encourages energy efficiency improvements in public buildings.
“This bill will help Alaskan families, businesses, schools, and communities to cut their energy costs and find more sustainable ways of meeting their energy needs,” said Senator Bill Wielechowski, D-Anchorage, co-chair of the Resources Committee. “It lays the foundation for Alaska to become a global leader in renewable energy and energy efficiency, and tasks the state with leading by example.”
In other good news, the Alaska House of Representatives has passed HB 306, a bill that creates an overarching energy vision and policy for the state of Alaska. The vote was 38-0 and the bill is now in the Senate Finance committee. The same language that passed the House is contained in SB 220, and will hopefully add momentum toward ultimate passage of both bills.
HB 306 has four main goals in establishing a statewide energy policy: establishing a thorough and coordinated approach to supporting energy efficiency and conservation; encouraging economic development in Alaska; supporting energy research, education and workforce development; and coordinating governmental functions.
“Now we have a roadmap to reaching our energy goals,” House Special Committee on Energy Co-Chair Charisse Millett, R-Anchorage, said. “The policy outlines priorities for renewable and nonrenewable energy, conservation and efficiency and balances the needs between urban and rural Alaska.”
“The credit for the energy policy bill doesn’t belong to legislators—it belongs to the stakeholders who created it,” Co-Chair Rep. Bryce Edgmon, D-Dillingham, said. “We brought together a diverse group who spent six months working to find common ground to build an energy policy that recognizes Alaska is a resource development state but conservation and efficiency measures also play an important role in our energy future.”
REAP Executive Director Chris Rose was among the 16 stakeholders who helped create the bill. Other stakeholder group members associated with REAP are:
- Caitlin Higgins, Alaska Conservation Alliance (REAP Board member)
- Meera Kohler, Alaska Village Electric Cooperative (REAP Board member)
- Marilyn Leland, Alaska Power Association (REAP Board member)
- John Davies, Cold Climate Housing Research Center (REAP Organizational member)
- Bill Popp, Anchorage Economic Development Corporation (REAP Organizational member)
- Kathy Wasserman, Alaska Municipal League (REAP Contributing member)
- Gwen Holdmann, Alaska Center for Energy and Power (REAP Contributing member)
- Denali Daniels, Denali Commission (REAP Contributing member)
S.B. 220 – “Senate Omnibus Energy Bill”
This bill wraps several energy bills into one omnibus bill. It includes proposals to establish an Emerging Energy Technology Fund; add a tax credit for renewable energy production; and improve energy efficiency in public buildings by requiring energy audits and mandating the state prepare and adopt a state energy-use reduction plan. The bill also includes the state House proposal to establish a statewide energy policy (HB 306).
H.B. 306 – “State Energy Policy”
This bill would create a statewide energy policy, which Alaska currently does not have. Items that the bill would cover include instituting a comprehensive and coordinated approach to energy efficiency and conservation; and promoting the development of renewable energy resources, including geothermal, wind, solar, hydroelectric, hydrokinetic, tidal, and biomass energy, for use by Alaskans and for export. The bill also states that it is the intent of the legislature for Alaska to reach certain energy goals, including increasing energy efficiency by 15% per capita by 2020, and getting 50 percent of the state’s electrical generation from renewable energy sources by 2025.
H.B. 305 – “House Omnibus Energy Bill”
Like SB 220, this omnibus bill wraps several of the energy-related proposals into one overall bill. It calls for creating a state Department of Energy, establishing an Emerging Energy Technology Fund, and adding a tax credit for renewable energy production. It also seeks to improve energy efficiency in public buildings by requiring energy audits, and mandating the state prepare and adopt a state energy use reduction plan.
“State Energy Policy”
This would institute a comprehensive and coordinated approach to energy efficiency and conservation, and promote the development of renewable energy resources, including geothermal, wind, solar, hydroelectric, hydrokinetic, tidal, and biomass energy, for use by Alaskans and for export. It also would state that it is the intent of the legislature for Alaska to reach certain energy goals, including increasing energy efficiency by 15% per capita by 2020, and getting 50 percent of the state’s electrical generation from renewable energy sources by 2025.
“Alternative Energy Production Tax Credit”
This would provide incentives for power producers and utilities to develop renewable resources by offering a corporate tax credit of 15% of electricity retail price up to $0.05 for each kilowatt-hour of renewable energy produced. The tax credit would be applicable for the first five years a project is in service, and unused credits could be used in subsequent years.
“Energy Efficiency in Public Buildings”
This would call for energy audits of all state buildings and facilities in Alaska, and aims to reduce energy consumption in state buildings 20% within 15 years of the completion of the energy use index. It would reduce state energy costs and foster employment in energy efficiency industries by retrofitting public buildings to be more energy efficient through performance contracting.
“Emerging Energy Technology Fund”
The fund, which would be financed by appropriations from the state legislature, federal appropriations, and contributions from other sources, would be available to utilities, independent power producers, local and tribal governments, Alaskan businesses, and non-profits. In order to receive grants from the fund, the benefiting project must be for the research, development, or demonstration of a new energy or conservation technology or for the improvement of an existing technology, with the reasonable expectation that the technology would be commercially viable within 5 years.
•To see a list of all energy-related bills being considered this session, click here
