Energy rebate
Published Thursday, August 7, 2008
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Stumble It!To the editor:
Concerning the House/Senate debate on the proposed energy rebate, I propose the following equitable solution.
Alaskans who pay rent for their housing should receive a cash rebate attached to their Permanent Fund Dividend. I’m realistic about this; in our free state, renters could use this money to offset high fuel or beer prices.
Homeowners or owners of rental property should receive an equal dollar amount of conservation credit. If homeowners are willing to get the work done by installing a couple triple pane windows, adding insulation, upgrading the efficiency of their heat source, they can turn in their receipts for reimbursement from the state.
A couple of clerks and supervisors could easily administer this simple program.
Value added efficiency means homeowners will pay less each month for their energy for as long as they own their home. It will also help drive down local demand, take pressure off the grid, and may help stabilize prices. Homeowners will “win” twice, because the value of their homes will rise.
If our government has convinced itself that it must hand out money to the people, it might as well do it right and positively influence future consumption behavior.
Community Discussion
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Very nicely stated.
If we can increase efficiency significantly with very minimal added bureaucracy (as this plan explains), that would be a great use of the state's (our) money.
"offset high fuel or beer prices"? If that line hadn't been added to the letter, I may have taken it seriously, but as it is, this writer sounds like a renting begger. Put your hand back in your pocket, the government isn't giving handouts for beer purchases.
Gimme Gimme Gimme
It'll take more then a couple clerks to oversee your plan. In addition to taking in reciepts and cutting checks, someone actually has to make sure the work was done. Someone has to make the bill for the work done is in line with what was done.
Any plan like yours will cost a lot of money to implement. Better to make the payouts in cash and continue the expansion of the weatherization program which already has those things.
(the above assumes they even make a revenue windfall payout/energy assistance payout)
I have a new home and it is rated at 5 stars. The inspectors have suggested a few things to improve efficiency. On their report, it states that I've taken the low hanging fruit; everything on their report would be very expensive to do. Here are two examples:
1. Add rigid foam insulation to the exterior or interior. So this means I would either need to re-side or re-sheetrock my house. I would expect this to cost around $25K either way I went.
2. Place more foam around crawl space and basement. This, of course, would require me to completely ruin my landscaping and dig up my basement.
We have a catalytic wood stove and a new boiler. We have maxed our insultation and it states adding more would not improve anything. It follows the law of diminishing returns.
So...for your plan...how does it benefit me? I did it right in the first place. Maybe I should get the most money because I wasn't cheap when building? How about in order to qualify you need to get an inspection on your building. Then you get paid so much per star rating. Want more money? Increase your rating. Simple.
I for one would like to know who has all the money required fir these modifications in there bank account to have this work done, and then wait for a rebate, if one ever comes. If anyone has this amount in the bank, I doubt if fuel cost is an issue. I also think it is a little to late in the year to even consider this an option. Maybe next year, when they have more than 6 or 7 energy experts on hand to evaluate your home this may happen, but I doubt it. By next year it may not matter for many, they will have already left. I would also like to know how much it would cost the average home owner to have the work mentioned done? Can any builders out there help out with a rough cost? Also, why is it so tough to help the people of Alaska with a $1,200.00 check anyway. They have 10 Billion extra in the bank. The feds helped out the public with there rebate with nothing in the bank!
I do not like the term "energy rebate". The state is making more than 600 million a month EXTRA above the huge profits it is bringing in normally. WE ARE THE STATE!! We should not only be expecting a revenue share, but should demand one. If a legislator is not in favor of a decent dividend from this HUGE WINDFALL we should work to oust them immediately. Granted, I do not like the govt. handing out money for no reason, but we, the state, have happened into a windfall that should be utilized by current Alaskans and have a sizeable chunk put into the PF for future Alaskans. A 3 to 5 thousand dividend would certainly not be out of the question though.
HEY! I don't drink beer, I drink vodka.
...and I WANTS me 1200 mola! Oak & Keg, here I come!
I believe that a energy rebate isn't the best course of action, but it is an action, and that is better than the status-quo of government, both state and federal, these days.
To quote an above post; "Gimme, gimme, gimme". In jest I say, aren't we all partially to blame for fuel prices? Yes we all are. We all have had our moments of conservation weakness where we drive 3 blocks instead of walking, we leave the refrig door open when we pour a glass of milk, we let our cars idle in the winter because a cold seat is unpleasant. The state is known for untidy spending of our cash, so why look down your nose at their decision when it finally comes to your turn needing help?
As responsible adults, as responsible Alaskans, I challenge any one of you who wholeheartedly disagree with this energy rebate to deny your claim and refund the state your stake in the rebate. I for one, will not. Whatever rebate is sent my way I will allocate to spend where needed, also trying to make sure to use it in Alaskan owned businesses when possible.
We are all Alaskans, we are in this together, and this is our money
High fuel or beer prices? Are you serious?
Maybe renters shouldn't get the rebate at all since the homeowner is responsible in the end. But at the same time property owners who lease property should NOT be raising rents. I have a friend who said 2 months ago the owners raised his rent $100, and then again another $100 this month. He is really upset because it is summer and the fuel oil isn't even being used.
I may be confusing myself. Let me just get back to the state sending this money to the energy providers on behalf of the property dwellers. Then no matter whether the dweller is a landlord or a lessee, each home gets help with energy costs this winter.
With regard to the one letter, I agree...how is one supposed to come up with funds to make improvements before the rebate will be sent.
dee99709 - that is unfortunate that your friend's landlord has raised the rent $200 in the last few months; however, the fact that fuel isnt being used in the summer is not the issue. We own 1 property and as a landlord I am going to "eat" about $700 in January alone (as I average the costs over the last few years). Even though we own property AND pay taxes, we are not getting the $1200 because we no longer live in AK (unfortunately), but the tenants will receive it. Maybe we are in the minority, but we will not be raising our rent because we love our tenants dearly and would hate to lose them. The bottom line is that fuel prices are up and the money has to come from somewhere.
While cash is nice, it's also taxable. I'd prefer the cost of electricity and fuel subsidized.
A thing about energy ratings. I've felt for many years that the so called five star ratings were misleading. There are many short cuts to achieve that rating and end up with a house not a whole lot more energy efficient than a quality built house under previous standards. Many of these homes have poor layouts, excessive square footage, and higher electric usage. The energy star program concept is basically good but needs to evolve and simplify.
That said there is not too much you can do to a house under ten years old that would have a dramatic effect on heating short of closing off a section for winter. Changing a double pane window for a triple will have little practical effect. Instead cover all or a portion of the window with any rigid foam placed on the outside and remove it come spring. For example reduce the visible area from 6x4 to 3x2. If the foam is placed on the inside condensation will freeze it to the window. The easiest way to add insulating value to a basement is to lay foam boards flat (parallel to the ground) around the house perimeter. This is best done a foot below the surface but can have a positive effect just laid on the ground. It will break if stepped on. If you bury it the finish grade should be 6-8 inches below any untreated framing.
NANA said it best. I don't want to pay taxes on this, which just helps the govt grow. IF they have to "help" us out, just put where it should go anyway, in my fuel tank.
Back before heating fuel, I believe folks(and their kids) spent time outside collecting and cutting firewood for the inevitable winter. A little here, a little there until they had enough. It was called - "being prepared" or "planning ahead".
Today, if you set aside some money here and there throughout the summer, you can plan ahead for what you know is coming. Yet, if it's that simple, why haven't more of you done it? Quit begging for money that YOU should have made towards providing your heat this winter. If you don't learn your lesson this year, you will only be in the same boat next year.
I find it amazing that in a state where we get a PFD and pay no state taxes, some people still want more. That money alone could cover a part of your energy costs, it covers a lot of mine, plus car insurance.
Do you think energy will cost you less in the future? It won't, so you better start figuring that out now. Teach the next generation how to plan ahead and be better prepared in the future so they won't have to rely on Govt handouts. PFD's and "rebates" will never set anyone back on track, only YOU can do that.
I really don't find it right that the "state" should bail people out for not knowing what it takes to live in the COLDEST state in the union. You need heat here, and if you cannot set aside enough of your PERSONAL income to do so, well, I suggest warmer climates.
Most of this money will just be wasted, and we all know it.
Anyone who receives the dividend should qualify for the energy relief. Although it may not bail anyone out, it will help in the short term until someone get the balls to either start drilling, setting up some wind fans or getting us a gas pipeline. We pay the highest gas prices in the nation, and as for finding warmer climate, well Mr. Green must be rich and just not care about us who aren't. And for teaching the next generation better, good luck there.
I make too much money to qualify for the home improvement plan. But I do not make enough to be able to do the reimbursement plan. I would have to at least add foam insulation and more than likely windows and then reside my house. I don;t have 30-40 grand to do that, and get a fraction of that back on a reimbursement. So I have to keep my house colder. I have done everything I can to make it as energy efficient as possible.
I don't have the extra money for a wood stove or coal stove. I keep my furnace tuned up every year and change my air filter more than once a month. I'm not sure how I will afford $5.00 a gallon home fuel..
Darknight:
How about your PFD, as others have suggested?
Let's assume you'll get $2000 from the PFD payout.
Let's also assume that you will buy, according to the averages published a couple of weeks ago, 1300 gallons of fuel. My thought is that if you're using that much fuel, there's something *really* wrong with your heating system, but whatever, that's a topic for another day.
That's $6500 that you need to pay out before the end of the winter.
Minus $2000 for your PFD, leaving you with a $4500 payment.
Let's also assume that you'll start paying for that fuel now.
That leaves you 8 months to come up with $4500
That's $563 a month. That's a lot, sure. Wow! How can anybody afford that!?
But, let's look at the numbers again, shall we?
Remember that $2000 the state gave you? If you apply that to the price of your fuel, it lowers the price per gallon from $5 to roughly $3.46, which is probably what you were paying last year, right? Or close to it?
So, everybody, please. Stop with the "woe is me" panic situation that you're trying to create. Use your PFD to pay for fuel.
Has anyone noticed that eregy prices all falling all across the lower 48. I have read that in many places below the $4.00 Mark, seems I heard $3.60 or so in some areas. But we haven't moved in the slightest.
The commodities and futures have been falling daily.
Why are we still stuck in limbo???
That's very odd. Really. Seems to me that I paid $4.48 for fuel a couple of weeks ago. I'm pretty sure I paid $4.33 last night for a couple of gallons.
Perhaps my math is wrong.
...but that seems like I'm paying less.
Am I wrong?
Oh, wait, here, lemme call to check on the price of milk and potato chips, too.
*insert a phone call to the lower48 here*
Holy crap you guys! Holy crap!
Did you know that a bag of Tostito chips is only $2 in the lower 48, but they're $4 here? What the hell is going on? We're getting ripped off! Somebody should call....somebody....and complain. The state should give us a Corn-Chip-assistance program. I don't know how I'm going to afford to live this winter.
And milk! Holy Jesus. We have cows here. We make the milk. THE COWS EAT OUR GRASS. THAT GRASS BELONGS TO THE PEOPLE OF THE STATE OF ALASKA!!! Milk is $4/gallon here, but in the lower 48, people are paying.......get this.......$3.25! WE CANNOT STAND FOR THIS!!!!
I'm calling Sarah Palin.
Hee. Hee. Hee. Where have you been all our lives Allan?
Use money from the PFD to buy something frivolous like fuel-oil?
Are you nuts?
C'mon, we're Alaskans. We're the entitled. We should have everything we desire served up to us on a silver platter. We won't have any money left from our dividends after we buy necessities like trucks, four-wheelers, snow machines, boats, and such.
That's the dumbest idea I've ever heard.
I think that Alaskans know how to spend their money better than any politician. What would you spend your rebate on?
www.fairbanksgas.com/#Poll
"I don't want to pay taxes on this, which just helps the govt grow. IF they have to "help" us out, just put where it should go anyway, in my fuel tank."
Just to point out a stupid argument and lack of thought. If the State government keeps all of the surplus and only spends it on what 3 of 40 representatives and 20 senators decide is best, the Government will most definately grow. Programs that don't exist or will need to be expanded creates more government and how long is it going to take to create the beauracracy to distribute the money through those programs and how much is it going to cost? No one opposed to the resource rebate is thinking of those consequences.
If the State gives it back to the people, and we the people pay 25% of it to the Federal Government, then the economy will grow and we will be paying down the federal deficit.
Allen, seems like you must be well heeled, hopefully... A chip off of someone elses block maybe, just to crash the party.
You'll probably need a little Hot Salsa to go with those chips, We don't manufacture those here in AK. But as you know they burn going in and coming out...
You better buy lot's of milk to passify your indigestion, or go borrow it from the neighbor with six kids and a mortgage.
Then tell them about the new machines out this year...
Pathetic.
Step one for energy relief is to get the Governor's plan approved. Step two is develop a bridge plan and long range plans. Step three is to build the bridge and implement the long range plans.
Tick Tock. That is the sound the oil revenue makes when it hits the state bank account and our Legislators make plans to spend it on our behalf without our input.
Yeah, but if your input is, "Just give it to me." (I know, you say "us" to make it sound better), do you really think they'll listen?
Irony of ironies. The answer given above is common sense. Use your PFD to pay for your fuel. This is a good answer to treat the symptom, but let's look into curing the ailment as well.
When you really look into it, we as Alaskans have a stake in the permanent fund which is derived from oil and gasoline. And then cooincidently the price of gas and oil here is suddenly, not gradually, but suddenly spiked by speculators.
The answer given of "if you don't like it, move south..." or the rationale of everything is more expensive in Alaska is a cop-out answer given by someone obviously not effected as much as others. everything is more expensive in Alaska only partly because of transportation costs. It is more-so because everyone seems to have their hand out. Not just the people hoping for an energy rebate, but the businesses, workers, supervisors, butchers/bakers/candlestick makers that all want a piece of the pie. You've all seen the "PFD Sale"s going on in Fairbanks right before the first week in October. Mostly over inflated prices pawning themselves off as bargains to get a chunk of someone's PFD. We do this to ourselves, people. That's why new car lots have been sitting on the same overpriced marked up traded in gas guzzling rigs. Because "we" think we are entitled. "We" is no more and no less than any person who has a hand out trying to turn a buck in commerce. So the next time someone gets a pay raise, ask yourself where it comes from. I know mine comes from State tax dollars. Some of us it comes from oil, gold, trees, fishing, automobiles, all of it. We complainabout prices, yet we want our pay raises.
See the irony, or am I way off base?
All - Here is another thought.. Earlier in the news the Senate had stated setting the price for say heating fuel at $3.00 per gallon and anything the consumer pays over that the state would cover. To me a home owner but I do not claim the permanent fund due to being active military and could transfer at anytime.. I think across the board that would seem more realistic then to simply add $1200.00 to the permanent fund. Do all of you really feel that money will be put to good use by most? Realistically the economy would be stimulated but not affect the fuel prices. Something fair across the board is what needs done. Now I will take all crisis from everyone now..
All - Here is another thought.. Earlier in the news the Senate had stated setting the price for say heating fuel at $3.00 per gallon and anything the consumer pays over that the state would cover. To me a home owner but I do not claim the permanent fund due to being active military and could transfer at anytime.. I think across the board that would seem more realistic then to simply add $1200.00 to the permanent fund. Do all of you really feel that money will be put to good use by most? Realistically the economy would be stimulated but not affect the fuel prices. Something fair across the board is what needs done. Now I will take all criticism from everyone now..
Proposed HB4002 was submitted to the legislature by Governor Palin as the "Alaska Resource Rebate Program" and was to be a $1200 one-time appropriation request.
The other special session line items except the AGIA license were tacked on to the proposed bill. Summary is below:
1 Approve AGIA license
2 Establish a resource rebate program
3 Power cost equalization changes
4 Temporarily suspend motor fuel tax
5 Renewable energy and alternative energy grant fund
6 Making appropriations
Allegheny touche. You have itemized the rescue benefits for the needy...
The paid??? trouble-makers will probably be initiating comments some-where around the equator, when its 50 below here. Saying everything is OK and not to worry...
Too bad the message I just wrote disappeared again..
Gov. Palin is not offering a continual alternative to the current situation... As this has only transpired within the past year...
The state coffers are bloated and she is attempting to offer a one time relief, while still looking over, and considering all options.
As for the flies that keep buzzing around, where did we import them from... Or who is importing them.
Just read their posts, and you will recognize the stink...
What really grinds my gears, is the price of crack has gone out the roof. I sure love the old days ( 2 months ago ) when I could afford it!!!
What Idiot??? your are on the wrong forum boy....
We can direct you to the Trooper forum, boy...
If you don't have a stake in this state as a resident then tell your own state that you want a tax refund and please ignore Alaska politics. If you plan to become a resident then you need to see that this budget situation is going to repeat in the future as oil is still flowing through the pipe. Our State has a surplus of money. By the State constitution it belongs to the residents of Alaska. The question for us residents is what to do when the state has a surplus. We have a plan for lean times, what is the plan for boom times. Our Senators want to establish more government. Our legislators do also, but they have appropriated 10% as a rebate.
For those tracking this from outside Alaska the rebate equates to your state cutting state taxes by about 2% across the board. We residents paid nearly 16 billion to the state last year in oil revenue or over $22,000 per man woman and child that is a resident of Alaska. The result is that we now have fully funded our budget reserve, and have over 8 billion left. So out of the remaining $11,000 per resident the Governor proposed refunding $1,200 to offset the effect of our cost of fuel and energy doubling in the last 12 months. But we already had one of the highest costs of living, so $1,200 is just a band-aid until the State can figure out how to permanently reduce the cost of energy.
For those residents opposed to the payout, what action should the Government take when we eventually have the lowest energy costs and the State has a surplus? Increase the Government, or give the money to the FEDS to pay down the deficit. I didn't declare the energy cost emergency. But the costs are outrageous when we have a budget surplus. We cannot let our government get so out of control that when we switch to natural gas and our state revenue drops, we end up with an income tax to pay for basic services.
Listening to those individuals, coorporations, and local businesses that don't qualify for the rebate isn't fiscally responsible. Our Legislators don't represent businesses, they represent people. Businesses in an area without customers fail. If they are smart they will support putting more money in their customer's pockets and less in the beauracracy's.
The Governor ran for office on less government and fiscal responsibility. She is keeping her promise but we have to hold the Senate to that standard as well.
I'm sure that Rep. Mike Kelly is disappointed that all us morphine addicts on welfare are going to get a $1,200 check so that we can sit at home all day.
I am tired of people staying "well you live in the coldest place deal with it" yes we do and we all love it here but there comes a time when the price of things are just out of control!
Fairbanksgas, apreciate your comment but don't you think you might be creating more welfare addicts?? Along with Onnapa?? If (They) don't do (Something)...
In my opinion follow the Governor...
ONAPA,
Great write-up!
Also, since the PFD is taxed by the Federal government, Alaskans partially pay for the federal funds received.
What other states provide additional revenue to feds from the state coffer?
THANK YOU SARAH! : )
Hmmm-interesting. Wonder how it will all play out. Will this be per person or per household? Will this take into consideration the families that don't have heating concerns (such as military who live on base or those who have fuel and electric included in their rent). Glad to see some proactive responses to a huge pending crisis but this does open some other issues with the who is eligible and who isn't. I do have to say thanks to Palin though - with winter looming around the corner and many people panicking this is something to help alleviate fears.
As long as the pull-tab places, liquor stores, meth labs, massage parlors, and strip joints still have a steady supply of regulars, we are going to keep on paying high prices. Don't think that the people who control the prices don't know where our money is going. These people want all of our disposable income, and they are getting it through our addiction to oil. "These people" are the Federal Reserve Bank and US Government.
Bluetarp, you must run in a different crowd. I know NO ONE of my group of friends who will be putting either their dividend or their $1200 towards any of that type thing. There are bills to pay fuels to buy & savings accounts to nest for the cold days ahead.
Hmmm, I take that back. I may splurge & spend $15 to get a nice bottle of Folie a' Deux for Thanksgiving dinner.
Hardly tawdry.
I understand they passed $1,200 per person.
I am curious how a new born baby drinking mother's milk can consume $1,200 dollars worth of #2 fuel or 5,217 Kwh worth of electricity at 23 cents per Kwh or 6 cords of birch at $200?
As a mater of interest, IRS will probably end up getting $300 of the $1,200. And, flat screen TVs will sell very well.
Be sure and get a good one ie 1080p with 120 refresh rate - less then 8 ms refresh rate - 25,000:1 contrast ratio LCD.
Any thing left over will go for crack, pot, and to price gouging fuel dealers who will NOT cut the price till they get your PFD and $1,200.
Also, the state of Alaska will continue to collect $3-$4 royalty oil fuel tax on each gallon.
If you buy 1,000 gal @ $5 for $5,000 you are STILL paying $4,000 in royalty oil tax!!!! The state of Alaska will get most of the $1,200 back. Ha!!!
"Fools and their money are soon parted!"
I use my PFD to pay my property taxes. This 1,200$ will pay about a third of my fuel oil this winter. No drinking,snow machines or flat screen TV's here.
But you do have an airboat. Which is pretty cool.
Every year weve been here (10 years), we have used the PFD to fill our heating fuel tank. This year is no different. There usually isnt anything left over, and if there is, we go out to dinner. This extra money will go for a new bedroom window (which is very leaky) and also to get more fuel. Im with Darknight in their thoughts. We have a cold house (55-60). We make too much for assistance, but dont make enough to have a 70F degree house. This money is a blessing of which we are truly thankful. I would never move to the Valley, but if I had all the extra money that people down there will have to blow, WOW!!! I could get some cool toys! And a 24-pack!
As an example for the fairbanks area, it should have been, any person with accounts at GVEA, AURORA or GOLDEN VALLEY will get a rebate of say $5000.00.
I know this will make people say angry things, but before you blog some nasty comments....
My family owns rental units (which we have not raised the price for, but we really should since our prices have more than tripled) so I am against people getting the rebate that don't actually deserve it. On the other hand I have a large family (lets not get into size or use/lack of birth control) so I am for every person in a family to get a rebate, I really need it to pay my bills GVEA & AURORA not VISA!
There are always going to be people who are not happy. I look at the whole rebate/dividend thing as; We have been ripped off so much, this is the governments way of saying sorry
Keep looking at it that way. It only shows that you're welcome to being on welfare.
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