Volume 4 number 4, May/June 2002 A Renewable Future Over a year ago Governor Tony Knowles formed the Alaska Highway Natural Gas Policy Council (AHNGP) to examine how the state could promote a gas line project that maximizes benefits to all Alaskans. The council spent months conducting public hearings and examining issues surrounding gas line development. In mid-December the council presented its final report to the governor. That report left out a crucial component: providing for the conservation of all natural resources belonging to the state for the maximum benefit of all Alaskans. The state is obligated, by our constitution, to do no less than utilize our resources in a manner consistent with our own best and long-term interest. So what component was lacking from the report? The report failed to recommend the creation of an Alaska Energy Futures Trust. This trust would assure the maximum benefit by providing for the state’s long-term energy security. The Alaska Energy Futures Trust (AEFT) concept is a grassroots proposal that was submitted to the AHNGP Council in written testimony last summer, but ignored in the final report to the governor. The proposal calls for creation of an Alaska systems benefit program that would be funded by the natural gas line revenue stream (or, it could be funded by a combination of revenue streams, including, for example, the Alaska oil pipeline, coal mines, existing natural gas wells, utilities, etc.). Once in place, the proposed systems benefit program—the AEFT—would eventually fund all statewide renewable energy research and development and energy efficiency programs. The trust would benefit ALL Alaskans no matter where they reside and no matter what their income. The systems benefit concept is not new. The funding mechanism is now in place in about half of the states in a variety of forms. The central goal of the AEFT is for Alaska to be totally powered by renewable energy in fifty years. Energy efficiency programs—from energy efficiency mortgage programs to programs that benefit low-income residents—are an important component of this transition to renewable energy sources. They are inseparable. This goal—for Alaska to achieve full reliance on renewable energy in fifty years—is a reasonable, attainable, and most desirable goal. It dovetails well with the self-sufficiency philosophy of all independent-minded Alaskans. The AEFT would be funded by a dedicated small percent of revenue from the state’s royalty gas, pipeline tariff, or other related charges that would be deposited into the trust. Economic efficiency, environmental protection, and ensuring all Alaskan consumers receive a fair share of the natural gas and pipeline benefits are excellent reasons for supporting the AEFT concept. The AEFT will provide a flexible and transparent funding mechanism for renewable energy and energy efficiency programs in the state. It would free up capital from current limited-funding sources, such as the Alaska Housing Finance Corporation and the capital reserve funds, which are now being tapped to fund the state’s budget. Initial funds could be used to assist in financing the transition from traditional power delivery infrastructures, such as pipelines, combustion generators, and transmission lines, to name a few. Combustion-generated energy use would continue as alternative technology, such as hydrogen-powered fuel cells, wind farms, and small hydro projects, becomes more economical to develop, purchase, and operate. Eventually, construction of renewable energy power and delivery systems would be funded by the AEFT. Renewable energy resources, as distributed generation resources, will provide better utilization of the distribution system and allow generation to be sited closer to electrical loads, thus reducing losses associated with central power plants. This will also allow remote areas to be served more efficiently. Critics who think that renewables and energy efficiency-related technologies are naïve "tree-hugger" fantasies conjured up by romantics or anarchists living outside the "real" world should think again. Renewables are becoming more mainstream every year. Bottom-line energy producers worldwide are currently investing millions of dollars in researching and building renewable energy resources that continue to drop in cost and increase in reliability. Oil companies, auto manufacturers, and utilities are all partaking in such investments because of the potential for increasing profits and for reducing the escalating costs related to conventional energy production. Renewable energy resources are inevitable. The growth in renewable energy generation and improvements in technology are a reality right now—not a pipe dream. Alaskans not currently accepting this view will eventually be shown otherwise. It does not matter that Alaska has a full tank of gas right now. It will go empty, just as Prudhoe Bay is doing. Depletion of oil and gas reserves, environmental impact, escalating costs, and national security are accelerating this inevitability. Renewable energy, combined with energy efficiency, will help achieve all the bright expectations contained in the AHNGP Council report: it will strengthen and diversify the state’s economy; help extend the life of existing oil fields; stimulate training, strengthen the skills of the work force and provide good jobs; supply affordable, environmentally friendly energy; and contribute to the nation’s energy and economic security. We can either protect our future and increase our wealth—as the Permanent Fund has done—or we can foolishly waste the limited resources we have been fortunate enough to inherit. It is important to realize the potential of the AEFT and to work together to ensure that Alaska’s needs are put first. Our comfort need not be sacrificed. The AEFT will comfortably meet political, regulatory, economic, and social objectives necessary to guide us into a truly clean, reliable, and energy-prosperous future. It’s time, again, for our "leaders" to follow their constituents. | ||
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