Alaska alternative energy proposal gets mixed reviews from lawmakers

Published Tuesday, July 22, 2008

KENAI -- Lawmakers representing the Kenai Peninsula are giving mixed reviews about creating a huge alternative energy grant program, an idea floated recently by House Speaker John Harris.

Harris, a Republican from Valdez, proposed expanding the renewable energy fund created earlier this year to nearly $21 billion. The money would be used to fund certain alternative energy projects recommended by the Alaska Energy Authority.

An advisory committee would review proposed projects for the authority, which would then make recommendations to the Legislature regarding possible grants.

John Bitney, Harris' chief of staff, said Fairbanks North Star Borough Mayor Jim Whitaker approached Harris about possible state funding for a project near Fairbanks that would turn coal into liquid fuel. He said a rough estimate put the project at between $1 billion and $2 billion.

Harris has voiced support in the past for other energy big-ticket generation proposals, including a dam on the Susitna River, nuclear power and the Chakachamna hydro tunnel.

The big-ticket proposals would require access to a large funding source.

Coal may be a realistic approach to solving the state's energy crisis, because Alaska has one of the world's largest reserves, said Sen. Tom Wagoner, R-Kenai.

Clean-coal technology, geothermal and hydroelectric dams are likely viable long-term fixes, he said.

"I don't believe in a shotgun approach on energy issues," Wagoner said. "I think we should pick one or two, put resources into them and see what happens."

Hydro projects give us "free fuel," and geothermal "is perpetual," he said.

Wind energy is a different matter, Wagoner said.

"If people want to do wind, let the private sector do it," he said.

Rep. Mike Chenault, R-Nikiski, expressed concern about how the Legislature might spend fund money. For instance, he suggested millions of dollars - perhaps even more - could be wasted investigating power production schemes proven uneconomical that are never built.

He said he's been working with utility companies looking for ways to affect consumer energy rates in the short term. For a longer-term fix, a dam on the Susitna River should be considered.

"That is something the state could build," he said.

Rep. Kurt Olson, R-Soldotna, said he sees one problem with Harris' proposal.

"It uses coal. That's not considered by a lot of people as a renewable energy source," he said.

Sen. Gary Stevens, R-Kodiak, said lawmakers were "looking seriously" at many energy issues, including expanding the Power Cost Equalization program, low-income energy assistance, possible changes in state taxes on fuel oil and maritime fuels, and cash payments to Alaskans withering under rapidly rising energy costs.

Stevens said Alaska is "doing enormously well" because of the high price of oil and has an obligation to help Alaskans facing rising energy costs. It is up to lawmakers to find a fair way to share the largess with the public, while also saving sufficient money to meet state needs when oil revenues decline, he said.

Community Discussion

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  1. fbksdonna
    7/22/2008, 5:54 p.m.
    Suggest removal

    That is nice but we need relief from high costs of heating fuel now!!!

  2. woodman
    7/22/2008, 6 p.m.
    Suggest removal

    Wagnoner wants the private sector to develop wind power. Did Wagoner forget the Legislators and the Governor approved a budget in which Anchorage received 25 million for a wind farm.

  3. DistantThunder
    7/22/2008, 7:27 p.m.
    Suggest removal

    Alaska has a terrible problem with lost-orphans...
    Alaska's Lost-Orphans could power the whole state..
    but Juneau is too rich and indolent to care about it's lost-orphans..

    There's more lost-orphan methane evaporating to atmosphere at a rate faster than Juneau will ever ship to market in it's big goldplated pipeline.

    Much of this neglected orphan methane can be collected in networks of HDPE gas-gathering pipes.

    http://www.youtube.com/watch?v=B36EoEuKj...

    I have some methods figured out how to farm the frozen lakes in winter to minimize the methane losses in summer. Getting more methane in the winter makes sense, eh?

    Until Juneau divests from it's BigOil portfolio it would be hypocrisy for Juneau to make real progress working in the sustainable-alternate-energy field.
    This would only serve to demonstrate the Multiple Personality Character Disorder endemic in this government.
    It's wise to avoid crazy people, even if they're trying to throw money at you.

    Juneau should move the PFD portfolio into more productive stocks..
    ..investing just $50mil in a little company like this will expand Alaska's gas reserves by 1000times.
    http://www.carbonrecovery.com/index.asp

    .......a forest of paradoxes

  4. out_in_the_cold
    7/22/2008, 9:14 p.m.
    Suggest removal

    As windy as the Legislature is; if they put a wind farm down near the Capital, probably generate a Zillion Giga-Volts of electricity. But as stingy as bunch of them are, they would keep all the power to themselves.

    ALASKA NEEDS AN ENERGY PLAN: 1.) Short term ~ something to help Alaskan get through this winter ASAP, if not sooner. 2.) Mid range ~ a bridge to diversify energy sources, for say the next 10 years, that has practical application for the varied regional needs and is cost effective. 3.) Long range ~ Energy independence that uses Alaska abundant energy resource for the next 100 years or more.

    The problem we have in Juneau is; not sure if the politicians are thinking about how they can keep their jobs for the next 100 years and continue to short circuit any intelligent decisions that would help ALASKANS???

  5. Nightshade
    7/22/2008, 9:39 p.m.
    Suggest removal

    This step puts Alaskans one step closer to having the tarp ripped out of the companies that have be deceitful for years. Taking away their smoke and mirrors is one step for total transparency. Crippling there wishes to monopolize the total production network. This is one great day for all Alaskans and chances are there will be some more to come.

  6. woodman
    7/23/2008, 8:42 a.m.
    Suggest removal

    Less we forget: the State has more money than God has green apples. So,now is the time to develop alternative energy sources. Yes;short term relief would be nice but we should not depend upon the State to support the LIFESTYLE we have chosen to live!!! If I can not afford to live the way I am living: then I must change to live the way that I can afford.

  7. DistantThunder
    7/25/2008, 10:18 a.m.
    Suggest removal

    Geothermal--??????

    Maybe Juneau should hire the Pinoys to do the geothermal for us..
    it looks like their installed cost per megawatt in the Philippines is much less than the cost estimates floating around Alaska.

    http://goodnewspilipinas.com/wp/?p=2222

    http://www.gmanews.tv/story/107644/Geoth...
    =======================================

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