Federal energy bill blasted by McCain contained several 'Alaska ornaments'

Published Tuesday, September 30, 2008

In the presidential debate Friday, Sen. John McCain criticized Sen. Barack Obama for supporting a 2005 energy bill that McCain said was “festooned with Christmas tree ornaments.”

“It had all kinds of breaks for the oil companies, I mean, billions of dollars worth. I voted against it; Sen. Obama voted for it,” McCain said.

Alaska’s three-member Republican Congressional delegation voted for the bill. Sen. Lisa Murkowski played a key role as one of 14 senators on the conference committee that drafted the final version, which included several Alaska ornaments.

At the time, Murkowski said the bill was a rational approach to energy policy and described the finished product as “comprehensive and balanced.”

In a campaign appearance this summer, McCain said the bill “had $2.8 billion in corporate welfare to big oil companies, and they’re already making record profits as you know.”

Obama said in 2005 that he voted for the bill reluctantly, saying it was a first step toward reducing dependence on foreign oil.

As for the claim of tax breaks for the oil companies, the Congressional Research Service said the bill contained $2.6 billion in oil industry tax cuts and $2.9 billion in oil tax increases, creating a net tax increase of $300 million.

In comments and statements three years ago, Murkowski highlighted the Alaska specifics in the bill, citing their value to the 49th State.

McCain also highlighted the Alaska provisions, but not in a positive light.

In a speech July 29, 2005, McCain said that a proposed $80 million loan for the experimental coal plant in Healy in the bill was not structured with a guarantee that it would be repaid. The language said the loan would be approved if there was a “reasonable prospect that the borrower will repay the principal and interest on the loan.”

“That doesn’t sound like the type of stringent criteria and risk assessment that would be weighed by many lending institutions that I am aware of,” he said. “And why does this particular facility merit a federal loan over other clean-energy technologies?”

(The loan language remained in the bill, but the Alaska Industrial Development and Export Authority never applied for the money.)

McCain also objected to a provision to give Alaska authority over small hydroelectric energy projects. He said it would allow the state “to completely ignore any recommendations” from federal agencies about protecting fish. He objected to a provision that said if the federal government collected lease money for geothermal resources, in every state except Alaska the money would go into a fund and some would go back to the state.

“But in the case of Alaska, seems that they will get to keep all of the monies generated,” McCain said.

Turning to another section of the bill, he objected, as he has on many other occasions, to federal funding for the Denali Commission, a federal-state partnership that, among other things, supports Alaska infrastructure projects. That bill authorized, but did not appropriate, $55 million annually from 2006-2015. McCain has said the federal government should not fund the commission because its work only benefits Alaskans.

McCain also questioned a provision to provide annual grants of $18 million to set up an Arctic Engineering Research Center at the University of Alaska Fairbanks. The language authorizing the center was approved, but the money was not appropriated, according to university spokeswoman Kate Ripley.

•••

DANCE POLICY: Viletta Knight, president of the West Valley parent-teacher-student association, said the term “sexually explicit dancing” could substitute for the words “grinding” and “freaking” when describing what is banned at school dances. I had suggested here that a glossary might help parents who may not know the terms.

“Our student council at West Valley is concerned that dances will be canceled altogether, so they have taken the lead in trying to get students to have ‘good, clean fun’ at the dances rather than making it R-rated, both in dance style and clothes worn by some attending,” Knight said.

“I’m glad you mentioned it in your column,” she said, adding that the topic was discussed with students at the first PTSA meeting this school year.

“Even though it seems like a lighthearted issue, it really isn’t because it is a real challenge to administrators to provide an avenue for the students to have fun but avoid encouraging inappropriate behavior and dress.”

A Lathrop teacher who asked students in one class about “grinding” said they responded that it means “freaking.”

•••

GLOW PUTT OPEN: Glow Putt Alaska owners Mike Shultz and Darwin Thompson announced that they have sold the business to Mario and Kim Gatto, who reopened the indoor course last weekend. Shultz and Thompson began the enterprise three years ago.

The glow-in-the-dark miniature golf course is in the Sadler’s Building on Cushman Street. It is open 3 p.m. to 9 p.m. Monday through Thursday, with longer hours on weekends. For more information, call 374-4965.

Mario Gatto is the principal at Eielson Junior/Senior High School.

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