Addressing the high cost of energy in Alaska is one of my top priorities. Infrastructure investments and effective public policy can play significant roles in saving Alaskan businesses and households money.
As part of our evaluation of the Governor’s FY2013 Capital Budget, the Senate Finance Committee has been reviewing the topic of energy and how state projects and policy can improve the quality of life for Alaskans.
This week, the Committee received an update from the Alaska Energy Authority on the state’s Renewable Energy Grant Fund. So far, the program has funded over 200 projects and there are 165 grants in place. Renewable energy projects in hydropower, biomass, wind energy, and geothermal technologies are being developed through this program to decrease the cost of energy. Projects funded by the Renewable Energy Fund span the state, highlighting the unique assets of each region. Southeast is focusing on expanding hydropower, while Kodiak and areas in western Alaska have seen savings through wind energy. These projects have saved millions of gallons of diesel fuel since the Fund’s inception in 2008, and reduced and stabilized energy costs to Alaskans.
The Senate Finance Committee also received an update on the Weatherization and Home Energy Rebate Programs from the Alaska Housing Finance Corporation.
The Weatherization Program is income-based and has assisted homeowners for thirty years. The Program operates in over 100 communities and is on track to weatherize 10,000 homes by 2013. The Weatherization Program creates jobs, invests in local communities, and provides direct energy savings to Alaskans, saving participants an average of 33% on their heating bills. In the senate district I represent, 333 households have participated in the Program since 2008, saving an average of $1,587 annually.
The Home Energy Rebate Program is open to all Alaskans. Rebates of up to $10,000 are offered for homeowners making energy efficiency improvements. Over 16,000 homeowners have participated in this program. Also, the Program offers a $7,500 incentive for new construction to build 5 star plus energy rated homes. In the senate district I represent, 530 households have participated in the Home Energy Rebate Program since 2008, receiving an average rebate of $6,240, and average energy savings of 38%. Additionally, in my district the Program helped realize an annual redution of 130,000 gallons of fuel oil and a 10% reduction in electrical use.
Investments in renewable energy and energy efficiency will have positive ramifications across the economy and help Alaskans keep up with rising costs. Click here to see both the Renewable Energy Fund and Weatherization and Energy Home Rebate Programs presentations to the Senate Finance Committee.
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