|
This week, the governor held his third annual Alaska Sustainable Energy Conference in Anchorage. I attended the conference to learn more about the energy challenges and solutions facing our state.
In 2022, gas companies warned that they would not have enough Cook Inlet gas to renew their contracts. Since then, advocates have offered a number of proposals to fill the gap expected to emerge from the gas shortage. Importing liquefied natural gas would offer the fastest solution, but this response would likely be expensive and result in higher electricity rates in Southcentral Alaska. Subsidizing additional Cook Inlet gas production might lengthen the timeline for the basin, but it's unclear whether subsidies would lead to more gas production and at what cost. The Alaska LNG Pipeline has long been a goal for many, but that project is not ready and the costs are uncertain.
We've consistently heard that there is no single solution. We will have to work together to encourage additional energy generation from renewable sources, including solar, wind, and hydroelectric generation. We must ensure that our Railbelt is efficient and well-managed. We must produce and store our remaining natural gas wisely. And we must leverage available federal funding for transmission upgrades and renewable energy production.
This legislative session, we passed several energy measures. While there is considerable work left to do to address the looming Cook Inlet gas shortage, these bills are good steps towards ensuring affordable and reliable energy supplies for all Alaskans.
House Bill 307: Integrated Transmission
The Railbelt energy grid consists of a single electrical transmission pathway from Homer to Fairbanks. Four utilities own and operate their respective portions of the Railbelt: Homer Electric Association, Chugach Electric Association, Matanuska Electric Association, and Golden Valley Electric Association. Senate Bill 307 creates an organization for Railbelt utilities and independent stakeholders to fairly determine the costs to share electricity between service areas. The Railbelt Transmission Organization (RTO) will coordinate to eliminate unnecessary tariffs and rates to ensure the cheapest cost energy to consumers.
HB 307 also allows independent power producers to be exempted from local property taxes, just as utilities already are. This will incentivize new power generation, including power generation from renewable sources like wind and solar. And finally, the bill establishes an independent board for the Alaska Energy Authority, which is currently a subsidiary of the Alaska Industrial Development and Export Authority.
House Bill 50: Carbon Capture, Utilization, and Storage
This bill establishes a regulatory framework to allow the State to lease underground pore space to be injected with captured carbon dioxide. New technology allows companies to capture carbon emissions before they are released into the air - often at power plants or increasingly in oil and gas fields. There is increasing demand for space to re-inject this captured carbon back into the ground. This bill ensures that oil companies seeking to re-inject their carbon emissions in Alaska will do so safely and responsibly. As more and more oil companies seek to become carbon-neutral in their operations (if not in the total life cycles of their products), Alaska stands to gain from monetizing this resource.
The bill also mandates the Regulatory Commission of Alaska to regulate natural gas storage to ensure safe storage and fair prices. And it includes a framework for reserve-based lending (originally House Bill 388) to target investment in certain remaining reserves of natural gas in Cook Inlet.
House Bill 273: Green Bank
This bill establishes a fund within the Alaska Housing Finance Corporation (AHFC) to to finance renewable energy projects. It creates a nonprofit subsidiary of AHFC to direct lending and partner with the Alaska Energy Authority when reviewing and assisting sustainable energy loans. It is especially important to have a state green bank to leverage available federal funds from the Inflation Reduction Act. A green bank is a good step towards additional renewable energy generation in Alaska.
Senate Bill 152: Community Solar
Many Alaskans use rooftop solar to power their homes. Solar power is often more affordable and more reliable than other forms of generation. However, rooftop solar isn't an option for people that do not own their homes, have shaded properties, or simply can't afford the cost of installation. Community solar allows for consumers to "subscribe" to a centrally-located solar installation and share the benefits of solar power with neighbors and community members.
These bills are progress towards sustainable and affordable energy for all Alaskans.
| 
