Energy Issues Update

The House of Representatives, having passed the gasline bill into the Senate’s hands, is reviewing the proposed short term energy solutions, while the Senate is dealing with both issues simultaneously. We have summarized the different energy proposals below. You can find additional information regarding AGIA on our website at http://www.akdemocrats.org/juneau/ and we are working to get information on energy on the website shortly.

Energy Bills Summary

Energy Rebate (HB 4002 & SB 4002)

This bill establishes the Resource Rebate Program to distribute $1200 to each eligible Alaskan. It includes a “hold harmless” provision that protects people from losing public assistance benefits because of additional income. Because of concerns over possible litigation relating to eligibility issues, the version passed out of the House Community & Regional Affairs Committee on July 23 simply adds the $1200 payment to the 2008 Permanent Fund Dividend. The Senate has not yet amended its version – in addition to PFD recipients, people residing in Alaska since April 1 of this year would also be eligible.

Energy-Related Appropriations (HB 4003 & SB 4003)

This bill designates funds to pay for the other legislation in this special session and covers a shortfall in funding for the Power Cost Equalization Program.

Suspension of Fuel Tax (HB 4004 & SB 4004)

This bill suspends the state’s motor fuels tax of eight cents per gallon for one year. The tax break would also apply to aviation and marine fuel.

Power Cost Equalization (HB 4005 & SB 4006)

The Power Cost Equalization (PCE) program traditionally provided economic assistance to Alaskan communities where electricity charges can be many times higher than elsewhere in the state. However, this legislation makes substantial changes to the structure of the program in order to account for recent steep rises in energy costs including broadening the eligibility to include more communities such as Homer, Kodiak and Fairbanks.  If Juneau were to experience another energy crisis we would qualify while the rates remained high.   

Essentially, the bill would bring every community’s electricity rates down to just 20% more than the weighted average of Anchorage, Fairbanks, and Juneau. The bill changes the minimum electrical rate a community must experience to be eligible for PCE and raises the amount PCE will cover. This change would be a relief to many villages with costs that are now much higher than urban rates even after PCE. The amount of power eligible for PCE would also be changed. Current law allows for 500 kWh per residential customer per month; the change allows reimbursement during the summer months up to 300 kWh per month and up to 700 kWh a month during the winter months while maintaining the annual limit of 6,000 kWh.

Heating Assistance Program (HB 4006 & SB 4005)

This bill would make more Alaskans eligible for heating assistance and raise payment amounts. Last session, the legislature created a state-funded program that mirrored the federal Low Income Home Energy Assistance Program (LIHEAP) called the Alaska Heating Assistance Program (AKHAP). The two programs together cover households with gross incomes up to 225% of the federal poverty level guidelines for Alaska. This legislation would increase the allowable gross income to 350% of the federal poverty guideline. This could help an additional 22,000 Alaskans. Payments would be tied to income (as income increases, benefits decrease).

Visit the Juneau Legislative Delegation Website
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