End of the Year Energy Updates
In this last energy update of the year, we give a rundown of the recommendations made under Dunleavy’s Alaska Energy Security Task Force, and look ahead to some of the exciting climate legislation that will come up in the next state legislature session. We also take a look at Alaska’s role in the Fifth National Climate Assessment, and ways to learn more and get involved in upcoming legislative issues in the new year.
Why we're skeptical of Dunleavy's recent statewide energy plan
On November 20th, Dunleavy’s Alaska Energy Security Task Force recommended over 80 actions to be immediately taken by the state amid a massive influx of federal funding dollars and Cook Inlet fossil fuel supply pressures. Dunleavy’s Task Force was announced in February 2023 by administrative order “to develop a comprehensive statewide energy plan that will evaluate energy generation, distribution, and transmission for the State of Alaska and its communities.” Ultimately, the Task Force’s report will likely be revisited as a planning tool for decision makers, including potentially legislators next spring.
We wanted to give a huge thank you to everyone who showed up and commented. This report, which will hold significant influence in shaping our state’s energy future, has numerous areas of concern, both in how it was developed and what is/is not included in the final version.
Challenges with the process:
Of the 15-member Energy Security Task Force selected by Governor Dunleavy in the spring of 2023, a third of the members represented business and industry with no direct representation for consumers outside of utility participation.
There was little public notice and public engagement opportunities. Opportunity for public comment was announced only through the Alaska Energy Authority (AEA)’s social media presence.
The public engagement opportunities that did take place were less than fully accessible. There were only two public testimony opportunities, one of which was scheduled during work hours. The first one was also scheduled a mere 6 days after the draft report was released, not allowing nearly enough time for community members to fully process and respond to the draft plan.
In addition, the public comment periods were held days before the report draft was to be finalized. This shows that any public opinions given were not seriously being considered, since the time frame between closure of public comment period and release of a final plan was not long enough to fully take into account the given feedback.
Challenges with the content:
The final plan endorses a Clean Energy Standard (CES), which is simply a watered-down version of the Renewable Portfolio Standard (RPS) bill. We must keep pushing for a strong, equitable RPS and not settle for less.
Though the Task force did not complete a comprehensive analysis or cost estimate for potential energy generation projects, the report nonetheless recommends full state support of the AKLNG pipeline and Bullet Line to bring North Slope gas to Southcentral Alaska as well as advancing mega-project Susitna-Watana Hydro. Long term lock-in on fossil fuels will absolutely divert Alaska from diversifying electricity generation at a time when we simply cannot afford the distraction of throwing more money away on a pipe dream.
Stay tuned for likely legislative shenanigans this next session and watch out for omnibus energy legislation that follows the Task Force’s report recommendations and Dunleavy’s “all of the above” energy policy platform, with special favoritism for AK LNG and a Clean Energy Standard instead of an RPS.
Statewide Energy Legislation Preview
On January 16th, the Alaska State Legislature will reconvene and their agenda includes numerous energy bills and policies. There's a huge opportunity this legislative session to move away from fossil fuels and towards renewable sources owned in community-centered, equitable models.
Here’s a brief preview of what we’re keeping eyes on:
Bills we support:
SB 114 is a bill that would dramatically reduce the amount of subsidies we pay to oil and gas companies and would make private companies like Hilcorp pay a corporate income tax
HB 121 & SB 101 address a Renewable Portfolio Standard (RPS). As fuel costs rise, developing renewable energy sources now will save millions for utilities down the road. An RPS would set realistic, enforceable targets and deadlines for Railbelt utilities to achieve energy transition. Most of the voluntary renewables goals that the utilities have established to date will not add a meaningful amount of renewable energy generation, and the projections they submit to regulators do not reflect even the modest reductions of gas demand that would result from meeting these voluntary goals. Without an RPS, the utilities are still quite stuck on a fossil fuel future.
SB 152 advances all forms of community energy generation, including wind, hydro, storage, and especially solar while focusing on alliances with labor and equitable access – landlords and tenants could equally participate.
HB 150 would require the adoption of nationally recognized building codes, adjusted for Alaska’s unique context, for energy efficient structural design and construction to reduce overall energy consumption and lower consumer costs.
Bills we oppose:
Dunleavy recently announced that he will propose legislation to subsidize the cost of new drilling in the Cook Inlet to try to help increase production there. We will be watching and opposing this legislation.
Alaska on the Frontlines: The Fifth National Climate Assessment
As statewide developments continue to unfold, a major federal report on climate change impacts, risks, and responses was released on November 14th, with Alaska featured in its own chapter among regions across the US. Mandated by Congress since 1990 and representing the efforts of 13 federal agencies and a host of university, tribal and nonprofit experts, this edition of the report provides updated scientific assessments and explores in greater detail environmental inequities and climate change’s broader economic impact.
For example, the report found that the impacts of extreme climate events are costing the nation an estimated $150 billion each year and this cost is expected to grow in the near term. In coordination with the release of the report, President Biden announced more than $6 billion through his Investing in America agenda to make communities across the country more resilient to climate change. Learn more about what the report says about Alaska here.
FCAC Energy Legislation Internal Strategy Conversation
Join other FCAC members and staff on Monday, December 11th from 5:30-7pm for a discussion around narrative and strategy for FCAC’s approach to statewide energy legislation in 2024. To get the zoom link and calendar invite for the discussion please email arleigh@fbxclimateaction.org.
FCAC Energy Legislative Public Info Session
And mark your calendar for the evening of Wednesday, February 7th for an Energy Legislative Info Session! At this event we’ll share information about the energy bills we’re advocating for, including real-time updates of where they stand within the legislative process, and provide support in reaching out to your elected House and Senate reps in support of these policies.
Fifth National Climate Assessment Webinars
The U.S. Global Change Research Program (USGCRP) is hosting a series of webinars dedicated to the Fifth National Climate Assessment. Please join to learn more about each chapter, ask questions, and hear directly from the chapter authors. The webinar on Alaska will be held on January 17 from 11am-12pm AKST.
