Dunleavy bills target Alaska's high energy costs

Lawmakers are considering the future of Gov. Mike Dunleavy's bill, which offers a sustainable solution to the state's rising energy costs.

Senate Bill 125 and its companion bill, House Bill 145, seek to create the Alaska Energy Independence Fund. The House's Energy Committee is scheduled to discuss the bill on Thursday.

If enacted, it would the Alaska Housing Finance Corporation to create a nonprofit to channel funding for sustainable energy projects for renewable and efficient energy generation and storage in Alaska. The newly formed AHFC nonprofit would oversee the financing, both directly and through loans, to tackle improvements for commercial and residential properties, electrical infrastructure projects, cleaner transportation projects and other programs that seek to reduce greenhouse gas emissions in Alaska.

Jeff Turner, Dunleavy's deputy director of communications, said the governor's bill seeks to reduce the state's high and rising energy costs.

"Energy costs in many areas of the state, in particular communities off the road system, can have very high energy costs," Turner told The Center Square. "The AEIF can fund renewable energy projects that lower energy costs in both rural and urban communities."

Turner said that Alaska's energy costs are higher than in other states due to Alaska's locale not allowing them to take advantage of energy-sharing programs, as seen in the continental states. He said that Alaska, unlike most states in the contiguous United States, is not connected to the interstate power grid.

"The state has tremendous renewable and non-renewable energy resources," said Turner. "Its potential for clean, environmentally safe wind, tidal and hydroelectric power projects is unsurpassed anywhere else in the country."

Turner said he does not predict any opposition to Dunleavy's proposal. If passed by both chambers, the bill would be back on the governor's desk for approval, which would go into effect 90 days after his signature, Turner added. Dunleavy said energy independence is a priority of his administration.

"Alaska has the resources, creativity and ability to achieve energy independence that will fuel a growing economy," said Gov. Dunleavy in a statement about the bills. "This is a priority for my second term as your governor, and a priority for Alaskans across our state. I am ready to work with all legislators to secure its swift passage."