Legislature(2009 - 2010)KOTZEBUE
02/07/2009 01:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| Overview(s): Aea Statewide Energy Report | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
February 7, 2009
1:04 p.m.
MEMBERS PRESENT
Representative Bryce Edgmon, Co-Chair
Representative Charisse Millett, Co-Chair
Representative Kyle Johansen
Representative Jay Ramras
Representative Pete Petersen
Representative Chris Tuck
MEMBERS ABSENT
Representative Nancy Dahlstrom
OTHER LEGISLATORS PRESENT
Senator Donald Olson
Representative Reggie Joule
COMMITTEE CALENDAR
OVERVIEW(S): AEA STATEWIDE ENERGY REPORT
PREVIOUS COMMITTEE ACTION
No previous action to report.
WITNESS REGISTER
SIIKAURAQ MARTHA WHITING, Mayor
Northwest Arctic Borough (NWABOR)
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
WALTER SAMPSON, Assembly President
Northwest Arctic Borough; Vice President
Lands and Natural Resources
NANA Regional Corporation
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
ANDY BAKER, Co-Chair
Kotzebue Community Emergency Task Force
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
CRAIG MCCONNELL, Member
Kotzebue Community Emergency Task Force; Maintenance
Director
Northwest Arctic Borough School District
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
DEAN WESTLAKE, Village Economic Development Director
NANA Regional Corporation
Kotzebue, Alaska
POSITION STATEMENT: Answered questions during public
testimony.
ROGER CLARK, City Administrator
City of Selawik
Selawik, Alaska
POSITION STATEMENT: Testified during the hearing.
CLYDE RAMOTH, Delegate
Village of Selawik
Selawik, Alaska
POSITION STATEMENT: Testified during the hearing.
HANNAH LOON
Selawik, Alaska
POSITION STATEMENT: Testified during the hearing.
HENDY BALLOT, Tribal Administrator
Noorvik Native Community
Noorvik, Alaska
POSITION STATEMENT: Testified during the hearing.
GUY ADAMS, Executive Director
Northwest Inupiat Housing Authority (NIHA)
Kotzebue, Alaska
POSITION STATEMENT: Testified and answered questions
during the hearing.
CHUCK GREENE, Vice President
NANA Development Corporation
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
TOM OKLEASIK, Planning Director
Northwest Arctic Borough (NWABOR)
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
LINDA JOULE, Executive Director
Native Village of Kotzebue
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
EUGENE SMITH, Chief Investment Officer
Maniilaq Association; Mayor
City of Kotzebue
Kotzebue, Alaska
POSITION STATEMENT: Testified on behalf of the
Maniilaq Association Health Center.
MARLENE MOTO
Deering, Alaska
POSITION STATEMENT: Testified during the hearing.
JADE HILL, Assistant to the Mayor
Northwest Arctic Borough
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
DEAN WESTLAKE, Village Economic Development Director
NANA Regional Corporation
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
BRIAN YANITY, Project Engineer
NANA Pacific Corporation
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing.
D'ANNE HAMILTON, Economic Development Director
Northwest Arctic Borough
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
CALEB PUNGOWIYI
Kotzebue, Alaska
POSITION STATEMENT: Testified during the hearing.
CALVIN SCHAEFFER, Airport Manager
Department of Transportation & Public Facilities
(DOT&PF)
Kotzebue, Alaska
POSITION STATEMENT: Testified on behalf of the
Department of Transportation & Public Facilities
(DOT&PF).
ANNMARIE O'BRIEN, Assistant Superintendent
Northwest Arctic Borough School District
Kotzebue, Alaska
POSITION STATEMENT: Answered questions on behalf of
the Northwest Arctic Borough School District.
ACTION NARRATIVE
1:04:40 PM
CO-CHAIR MILLETT called the House Special Committee on
Energy meeting to order at 1:04 p.m. Present at the
call to order were Representatives Ramras, Johansen,
Petersen, Tuck, Edgmon, and Millett. Also in
attendance were Representative Joule and Senator Olson.
^OVERVIEW(S): AEA Statewide Energy Report
1:05:40 PM
CO-CHAIR MILLETT announced that the only order of
business would be public testimony on the Alaska Energy
Authority (AEA) Statewide Energy Report.
1:06:00 PM
REPRESENTATIVE JOULE made opening remarks regarding the
intent of the community to communicate, not only the
challenges, but also to share with the committee some
of the work that has been done regarding the energy
needs in the area. He welcomed the witnesses and the
listening gallery and thanked everyone involved in
arranging the array of activities for the committee.
1:07:46 PM
[Audio was lost due to technical difficulties.]
1:08:37 PM
CO-CHAIR MILLETT informed the committee that the
purpose of the meeting was to listen to the witnesses
and learn about the concerns of the residents in the
Kotzebue region.
[Audio was lost due to technical difficulties.]
REPRESENTATIVE EDGMON introduced himself as the
representative representing Southwest Alaska, Bristol
Bay, and the Aleutians, and said that he was born and
raised in Dillingham. He expressed his pleasure at
being in Kotzebue and welcomed everyone's testimony
regarding energy issues and the effectiveness of the
state's current programs. Representative Edgmon
pledged to carry the witnesses' messages back to
Juneau.
SENATOR OLSON introduced himself and expressed his
anticipation of the challenges and the ideas presented
by the local residents.
REPRESENTATIVE PETERSEN introduced himself as the
representative from the Muldoon area of Anchorage. He
said that he has lived in Alaska for 28 years and this
was his first trip to Western Alaska. He expressed his
hope that residents and the committee can create an
energy plan that will make a difference in this part of
the state.
REPRESENTATIVE TUCK introduced himself as the
representative from Southcentral Anchorage and noted
that he was proud to return to Kotzebue. He said that
he understood the impact high energy costs have on
families, communities, businesses, and schools.
REPRESENTATIVE JOHANSEN introduced himself as a
representative from Southeast Alaska, and stated his
interest in listening to [the residents of] the
wonderful community of Kotzebue.
[Audio was restored.]
1:13:46 PM
REPRESENTATIVE RAMRAS introduced himself as a
representative from Fairbanks, and related his search
for parody in the energy fields across Alaska and how
to address the issue of fairness. He said that energy
is at the core of fairness, and cited the cost of
diesel fuel in different areas of the state.
Representative Ramras opined the purpose of the
committee was to learn empathy for the challenges of
other parts of the state.
CO-CHAIR MILLETT introduced herself as a representative
from South Anchorage, and said that she was honored to
be in Kotzebue. She announced one of the goals of the
committee was to take information learned from the
different regions back to the legislature and start the
framework for a statewide energy plan. The statewide
energy plan will be divided into regional plans and
each region must have a voice. Finally, the
legislature must develop policy on how to lower and
stabilize energy costs statewide. Co-Chair Millett
stressed that without rural Alaska, the state would be
without natural resources. She then invited public
testimony.
1:18:28 PM
SIIKAURAQ MARTHA WHITING, Mayor, Northwest Arctic
Borough (NWABOR), welcomed the legislators and stated
the importance of their visit to the community. She
informed the committee that residents in the Northwest
Arctic region are known to come together during a time
of crisis. This strength provides a resiliency to the
community and creates the reputation of working
together. Although the community is self-sufficient,
at this time it must ask for help. Mayor Whiting
affirmed resources do come from rural Alaska, but
despite this her community pays the highest prices for
food and fuel; in fact, the grocery stores in Kotzebue
charge from $12 to $18 per gallon of milk, and prices
are higher in the surrounding villages. Families
suffer in other ways too; toys are not purchased, trips
to camp have been cancelled, hunting trips are
carefully planned, and other measures have been taken
in the community to conserve. She stated the need for
additional revenue-sharing to bring equity to Kotzebue,
especially in education funding. Also, the state needs
to subsidize gas prices so that rural and urban
residents pay the same for gas.
MAYOR WHITING relayed that many people moved from the
region after receiving the energy rebate and Permanent
Fund Dividend (PFD) last year; she cautioned that
residents can not afford to live in rural areas
anymore. In fact, those who resisted the construction
of roads and railroads five years ago now support them,
hoping for lower transportation costs for goods and
services. Mayor Whiting said the borough is creating
an energy authority that will develop a regional energy
plan and she is optimistic that this crisis will be met
and the area will continue to flourish. "We need to
make sure that, as decisions are made on our behalf in
Juneau, that we are part of that policy-making body,"
she said.
1:26:20 PM
WALTER SAMPSON, Assembly President, Northwest Arctic
Borough; Vice President, Lands and Natural Resources,
NANA Regional Corporation, thanked the committee for
visiting the community in order to listen to the views,
needs, and concerns of the residents. He pointed out
that the seal of the State of Alaska is a reminder that
at the encouragement of the state, city governments
were created in this region with the caveat that
services would be provided by the state. Forty years
hence, many of the villages are not receiving the
benefit of that promise. Mr. Sampson stated that out
of the eleven villages in the region, there is one
Village Public Safety Officer (VPSO); thus services are
not being provided. Moreover, when an Alaska State
Trooper (AST) is called it may take two to three days
for a response, compared with the ten minute response
in Anchorage or Fairbanks. He reminded the committee
that his region is part of the state and there should
not be such a disparity of services, considering that
the NWABOR was established by the state specifically to
support education and to create opportunities for its
residents.
1:30:57 PM
MR. SAMPSON further explained that, since its creation,
the NWABOR has been working hard and has constructed
new schools in seven communities. He opined the
borough has done its share, and has "maxed out" its
bonding capacity, although four more new schools are
needed. The Red Dog Mine is the only tax base in the
area at this time. Mr. Sampson turned to the topic of
transportation and said that transportation costs are
the cause for $14 per gallon gas in some villages.
Currently, barges have limited access to parts of the
region and many villages are dependent on air freight
only. If the state can spend millions on projects such
as the Four Dam Pool, there is no reason for the State
of Alaska to ignore the rest of the communities
throughout this region. For example, as a potential
source of income, the NWABOR has been attempting to
purchase the Delong Mountain Regional Transportation
System (DMTS), that is the deep port facility owned by
the Alaska Industrial Development & Export Authority
(AIDEA), Department of Commerce, Community & Economic
Development (DCCED), at the Red Dog Mine. The intent
of AIDEA was to create employment opportunities for the
region during the construction of the facility, and
then to transfer that facility over to a local entity
for operation. Currently, 100 percent of the profits
from the operation of the DMTS continues to go to
AIDEA. He encouraged the governor to direct AIDEA to
begin the transfer of this source of income to the
NWABOR for the benefit of the region.
1:36:02 PM
ANDY BAKER, Co-Chair, Kotzebue Community Emergency Task
Force, informed the committee that the Kotzebue
Community Emergency Task Force [(task force)] was
formed in the fall of 2008, at the encouragement of
members of the Northwest Arctic Leadership Team (NWALT)
who anticipated the difficulties of the winter ahead.
The task force searched for short- and long-term
answers to the problem of higher energy [costs]. Its
short-term focus was on immediate solutions to help
elders in the community and $50,000 was raised from
private industry sources to weatherize each elder's
home. November 18th was "Elder Energy Day" and 100
volunteers weatherized nearly 100 homes in one day.
Mr. Baker emphasized that although the problems are
many, efforts are being made "[to] figure out how do we
help ourselves." The task force also aired Public
Service Announcements that encouraged residents to use
their Permanent Fund Dividend for energy offsets.
1:41:30 PM
MR. BAKER stated that the task force then encouraged
residents to utilize the new Alaska Housing Finance
Corporation (AHFC) Home Energy Rebate program; however,
it was difficult finding raters and there are about 100
homes waiting for an energy audit. Another problem
with this program is that homeowners are required to
pay for the approved improvements and then wait to be
reimbursed. The long-term focus for the task force is
to return to the community and complete large jobs; for
example, replacing the furnaces at the 10 homes most in
need. Although AHFC has promised a $100,000 grant for
this project, the arrangement has not been finalized.
Lastly, Mr. Baker suggested that a tax credit, similar
to the tax credit available to private companies that
donate funds for education, would also work to support
energy self-sufficiency in the Northwest Arctic region.
1:44:38 PM
CRAIG MCCONNELL, Member, Kotzebue Community Emergency
Task Force; Maintenance Director, Northwest Arctic
Borough School District, reiterated the residents'
intent to be resourceful and self-sufficient. He
heralded the success of Elder Energy Day that involved
a morning training session, over 100 volunteers, and
the installation of five types of insulation in homes.
However, improvements at this level will not make $14
per gallon fuel affordable. Mr. McConnell, as
maintenance director for the NWABOR School District,
relayed that the new Noatak school received a December
electric bill for $40,000, and is scheduled to have
$50,000 heating bills throughout the year. He opined
that fuel in Kotzebue is more expensive than in Nome
because there is no competition for the fuel vendor.
Mr. McConnell concluded that help from the state was
needed to build infrastructure "so that we can take
care of ourselves."
1:49:22 PM
SENATOR OLSON acknowledged the shortage of qualified
energy raters was causing a problem for the [AHFC Home
Energy Rebate] program. He asked for suggestions such
as waivers, to avoid further delays.
1:49:53 PM
MR. MCCONNELL said one of the problems is that raters
are required to attend lengthy training sessions that
are not offered locally. If they were, local workers
could easily conduct the ratings.
1:50:29 PM
DEAN WESTLAKE, Village Economic Development Director,
NANA Regional Corporation, responded to Senator Olson
and explained that the regional housing authority
builds houses but is not authorized by the state to
conduct energy ratings. He recommended utilizing the
local talent so that residents can get access to this
fund. "The money may as well be on the moon," he said.
1:51:46 PM
REPRESENTATIVE RAMRAS asked whether Kotzebue residents
would be willing to spend three weeks in Anchorage or
Fairbanks for training.
MR. WESTLAKE agreed it would be of help to a certain
portion of the population; however, the second problem
is that many people can not "front" the $10,000 that is
required.
1:53:21 PM
REPRESENTATIVE RAMRAS acknowledged that the $10,000 "up
front" was a universal problem. He restated his
question about training.
MR. WESTLAKE said that many people who would be
qualified to become raters may not be able to leave for
three weeks of training. He deferred the question to
the executive director of the regional housing
authority.
1:54:21 PM
REPRESENTATIVE EDGMON agreed that the Home Energy
Rebate program is well intended but, he confirmed, a
better mechanism is needed "to allow the state
resources to get down to you ... so you can apply the
weatherization techniques ...."
1:55:16 PM
ROGER CLARK, City Administrator, City of Selawik,
stated that Selawik is experiencing problems similar to
that of Kotzebue and Noatak. For the buildings in
Selawik, most of the cost is for water and sewage and
to keep the lines heated, as they must rest above the
ground due to permafrost. There was an early freeze-up
in October and some subsequent cold snaps that have run
up the bill to keep to keep these lines open. He
encouraged an increase in revenue-sharing funds as
small cities are bearing the brunt of the burden for
providing basic services that larger cities take for
granted. Mr. Clark listed the prices for fuel in his
community and pointed out that some residents must use
money from the state assistance for energy costs to buy
food. He stated the need to explore alternative
sources of energy, such as wind power, and to conserve.
He emphasized that any state help would be appreciated.
2:00:49 PM
CLYDE RAMOTH, Delegate, Village of Selawik, informed
the committee that the cost of heating fuel in Selawik
is $6.60 without tax. Fortunately, many of the people
in the village qualify for state support to offset
energy costs. He thanked the legislators for their
continued support of the Power Cost Equalization (PCE)
program that helps people pay their electric bills.
Mr. Ramoth stated that Selawik is also a community that
can work together to solve problems as long as there is
some financial backing. He expressed his support for a
bulk fuel tank for the region because that would bring
cheaper fuel to the communities. In addition, he
informed the committee that Selawik and five other
villages are unable to receive KOTZ National Public
Radio (NPR) broadcasts; reception would allow them to
benefit from Public Service Announcements (PSAs) and
educational programming.
2:05:58 PM
REPRESENTATIVE JOULE asked whether there was local
hiring for the installation of the new boardwalk.
MR. RAMOTH said the contractor who was to build the
board road hired one or two local people. There was
very little money that stayed in the village from that
project, although it is only 50 percent completed. He
opined local hire was very minimal.
2:08:17 PM
HANNAH LOON cited the village's lack of control over
the economic recession or over the climate change that
is causing low water in the rivers. She agreed with
the previous speaker than an increase in revenue-
sharing for municipalities would be helpful, especially
for schools and clinics. High fuel prices have made
life difficult. Residents are making every effort to
keep homes and the water and sewer systems from
freezing, which causes a health hazard. Ms. Loon
described winter life in Selawik. She concluded by
stating her support of long-term solutions, such as a
road to Anchorage or Fairbanks, and invited everyone to
visit Selawik.
2:13:12 PM
HENDY BALLOT, Tribal Administrator, Noorvik Native
Community, cautioned that the northern communities are
all affected by the energy crisis in one way or
another. In fact; many of the homes are "shifting" on
the ground, causing the home to lose heat. During cold
spells a homeowner must pay about $1,600 per month for
enough heat to keep children healthy. Furthermore,
with the price of gas at $7.60, traffic between the
villages is at a minimum. He estimated that collecting
one week's worth of firewood would cost $165 in gas and
oil for the snowmobile. Mr. Ballot cited other energy
costs in the area that affect tribal members,
particularly the elders, and those on fixed incomes.
Noorvik village has begun a wind energy study and
everyone is interested in the results. Fortunately,
the Northwest Inupiat Housing Authority (NIHA) is
planning to come to the village to perform
weatherization work. Mr. Ballot expressed his hope
that the window repairs and leveling of homes will be
done by local workers to lower the high rate of
unemployment, and pointed out that the housing
authority is currently building five new homes using 15
local workers. Mr. Ballot concluded by saying that
high transportation costs are expected to hinder the
ability for subsistence hunting, both in winter and in
summer.
2:19:57 PM
REPRESENTATIVE EDGMON offered the number for the low-
income assistance program: 1-888-804-6330. This
program is designed to provide low-income households
with home heating fuel assistance. He noted that the
legislature adjusted the guidelines so more households
qualify.
2:21:17 PM
GUY ADAMS, Executive Director, Northwest Inupiat
Housing Authority (NIHA), addressed Representative
Ramras' question regarding [the shortage of] energy
raters. He observed that three or four local
individuals are in the process of becoming certified
energy raters. The housing authority has been keeping
in touch with AHFC regarding the wait-list and the
availability of raters. He reiterated the shortcomings
of the Weatherization and Home Energy Rebate programs
and estimated the cost to build a 1,400 square foot
home in a village is $400,000, not including water and
sewer. Two factors that help NIHA are supplemental
funds for water and sewer infrastructure and the
weatherization fund. He explained that the region is
entitled to $5.3 million over five years from the
weatherization fund. Although insufficient, this money
will provide long-term benefits. During FY 2008, NIHA
spent $1.1 million on weatherization and intends to
continue work in the villages of Noorvik and Noatak.
The state weatherization funds have been matched by
Native American Housing Assistance & Self Determination
Act of 1996 (NAHASDA) funds and Indian Community
Development Block Grant (ICDBG) funds to help in this
effort. Mr. Adams re-stated the current difficulties
residents are having, and added that draining fuel
storage tanks dry causes an array of additional
problems. He then turned to the subject of the Home
Energy Rebate program and echoed the testimony of
previous speakers: The program does not work well in
rural Alaska due to the upfront costs that are
required. He then raised the problem of villages that
run out of fuel between deliveries and stressed that
solutions must be found. He expressed his support for
proposed legislation to cap fuel prices at $3 per
gallon; the type of legislation that is good for all of
Alaska. Mr. Adams suggested that the committee search
for a baseline cost for energy so that people can focus
on other quality-of-life issues such as education.
2:29:07 PM
CHUCK GREENE, Vice President, NANA Development
Corporation, reported that copies of NANA's energy plan
are available to the committee. He warned that the
residents in the NANA region "are living basically in
survival mode," as a result of the cost of energy, and
many other amenities such as water and sewer systems
are being affected. He encouraged the committee to
consider alternative sources of energy and noted that
NANA has submitted a grant application to take
advantage of wind energy options and is considering
geothermal prospects. In addition, NANA would like to
explore for natural gas. Mr. Greene discussed the
large amount of money approved for [the Alaska Gasline
Inducement Act (AGIA)] and asked, "Why couldn't we use
some of those funds to help us alleviate the situation
that we have?" He also spoke of a proposal to build a
natural gas pipeline from the North Slope through
Northwest Alaska to Southwest Alaska, thereby weaning
consumers away from diesel to natural gas.
2:33:08 PM
REPRESENTATIVE RAMRAS recalled his earlier opinion of
the AGIA pipeline contract.
2:33:32 PM
TOM OKLEASIK, Planning Director, Northwest Arctic
Borough (NWABOR), informed the committee that energy
has become a high priority for each of the communities
in the region. He directed the committee's attention
to his letter contained in the committee packet. Mr.
Okleasik referred to the energy summit held by the
Northwest Arctic Borough's Economic Development
Department and NANA, and noted the recommendations made
at the summit regarding the unique arctic environment.
Also, he said that a comprehensive energy plan for the
region is in the packet. Highlights of the borough
energy plan prepared in March of 1993 included:
continuing efforts to ensure full funding for PCE;
working to establish basic levels of service of
utilities for all of the villages in the borough and
Kotzebue; and working to upgrade substandard utility
systems. At a meeting of the Denali energy advisory
committee in Kotzebue there was agreement that "panels
of [the] utility systems need to be upgraded." He
opined these panels are part of the substandard
systems; in fact, an increase in efficiency of the
panels can be as high as 10 percent. Another major
reason to upgrade utilities is that some villages could
not add alternative sources, such as wind, without a
change to the panels.
2:37:14 PM
REPRESENTATIVE RAMRAS asked for a further explanation
of the panels.
2:37:28 PM
MR. OKLEASIK explained that the control panels are set
up for delivering power and metering the consumption of
power per home. The panels are designed only for
diesel; in fact, in Selawik, plugging in an alternative
energy source would shut down the generator. This is a
basic infrastructure issue that creates a barrier for
bringing alternative energy on-line for the
communities. Other parts of the borough energy plan
included coordination with all community and regional
utilities to ensure adequate funding and training
systems for operations and maintenance; and working
with village utilities to strive to find innovative and
cost-effective alternatives and technologies to fund
and administer public utilities. A very basic energy
component in this plan is how to utilize waste heat
from diesel powered generators. Mr. Okleasik observed
that the City of Selawik was anticipating a $250,000
utility bill for simply heating the water and sewer
system with heat tape; this amount compares with that
of Anchorage, and he suggested using waste heat to keep
the city utilities ice free. He stressed that an
investment made by the state to upgrade the basic
systems already in place can realize solutions that can
be saving energy in one or two years. Mr. Okleasik
encouraged legislators to ensure that funding for
programs actually reaches villages. His frustration is
with programs that are tied up in red tape and can not
reach those in need. He pointed out that the bulk fuel
storage grant process funded by the Denali Commission
is accessible to the communities in need. The Denali
Commission uses a formula to adjust for variables such
as poverty rates and the costs of goods and services.
Also, he pointed out the serious equity issue in that
oil and gas from mostly Inupiat land funds 85 percent
of the state's revenue; however, Inupiat villages are
not receiving the equitable benefit.
2:43:52 PM
MR. OKLEASIK, in response to a question from the
committee, repeated the factors taken into account by
the Denali Commission: the poverty rates of
communities; the cost of utilities and fuel; and the
cost of construction.
2:44:22 PM
LINDA JOULE, Executive Director, Native Village of
Kotzebue, informed the committee that this year is the
70th anniversary of the village's recognition as a
federal Tribe. She said the Tribe consists of 2,800
members, many of whom are low-income, elderly, or
families in need. Her organization is a resource for
and an avenue to assistance for the community; in fact,
tribal members are often the first to know when a
villager is in need. The Kotzebue Tribe compacts
directly with the federal government for program
funding; therefore the village is not supported by AHFC
or any of the state regional housing authorities and
"falls through the cracks." Although efforts were made
through AHFC, the appropriation from the legislature
for weatherization and home energy rebates has been
withheld from the village. Ms. Joule opined this
situation may be the same for other communities in the
region. The Tribe hopes to receive [funding] for the
weatherization of at least 10 homes, although 20 more
are in need. She assured the committee that the
Tribe's housing authority personnel are capable of
performing the energy ratings and completing the
improvements. Ms. Joule requested that the committee
find a way for her community to receive its share of
the funds that are available.
2:48:33 PM
EUGENE SMITH, Chief Investment Office, Maniilaq
Association; Mayor, City of Kotzebue, directed the
committee's attention to a proposal first submitted to
the legislature and [federal agencies] five years ago.
This proposal is sponsored by NWALT and its goal is to
create a way for the region to become sustainable
without subsidies. Mr. Smith stated that generating
energy for heating and electricity by diesel fuel is a
"nightmare" for the villages, and explained that the
proposal is an ambitious effort to create a new
infrastructure that uses a centralized energy source.
The cost comparisons in the proposal have been updated
since it was first developed in 2002; however, updated
numbers provided through the Regulatory Commission of
Alaska (RCA) and AEA are still one year behind. He
opined opportunities exist to create a sustainable
source of energy for the villages, but it will take a
commitment of funding support from state and federal
governments to implement these alternatives. He
stressed that the proposal is a "very ambitious,
proactive plan that can help sustain our region." For
example, combining a road from Noatak to the Red Dog
Mine haul road would give access to the fuel at the
mine 20 miles away, thus providing sustainability to
the village. This type of initiative would help
communities thrive, he said. Mr. Smith then pointed
out that the cost of living in the area is inflated to
the point that a person considered middle income is
actually at poverty level. In fact, a person employed
full time is unable to pay for his or her fuel, yet
makes too much money to qualify for assistance through
state programs; this process is not equitable between
urban and rural residents. He urged the committee to
review the proposal and focus on intertie and
alternative energy solutions.
2:57:12 PM
MARLENE MOTO emphasized that an audit of fuel
consumption in the village is needed. Furthermore,
U.S. Coast Guard regulations need to be fixed at the
tank farm. She said she would like to see a regional
report made to the board, as she suspects price fixing
is occurring.
2:59:32 PM
JADE HILL, Assistant to the Mayor, Northwest Arctic
Borough, concurred with previous testimony and
underscored the efforts toward, and intent for, self
sufficiency. She reiterated Mayor Whiting's testimony
regarding the community spirit that exists. Ms. Hill
stressed that solutions, ideas, and suggestions have
been provided to this and other committees and she
highlighted the need for the legislators to act on what
has been suggested. She reminded the committee of the
energy resolution in Kotzebue that recommended
increased support for PCE, and the energy summit that
resulted in immediate action by the community task
force. However, the residents have reached their
capacity. Access to fuel and urban areas requires help
on the state level for increased transportation and
road infrastructure, such as the road to Cape Blossom
and its deep water port. Finally, Ms. Hill noted the
need to provide money for the Alaska Technical Center
and Chukchi College so a work force is trained to build
and sustain the new energy infrastructure, whether it
is wind, solar, or geothermal energy.
3:07:11 PM
DEAN WESTLAKE, Village Economic Development Director,
NANA Regional Corporation, informed the committee that
Kotzebue is not included in the state's average gas
prices; moreover, this has been an ongoing issue with
state cost-of-living indices. He referred to the
intertie proposal between Noorvik, Kiana, and Selawik,
and described other possible "efficiencies." In
addition, he said, the NANA strategic energy plan is
just starting up and is inclusive of the other agencies
in the region.
3:09:37 PM
BRIAN YANITY, Project Engineer, NANA Pacific
Corporation, reported on the five proposals for wind
farms in the NWABOR and urged the legislators to fund
the Renewable Energy Grant Recommendation Program.
3:10:09 PM
REPRESENTATIVE EDGMON, in response to Mr. Westlake,
noted that the Alaska Gas Line Pricing Report gives an
explanation of gas pricing in Alaska; furthermore, the
committee will be hearing from fuel suppliers and
distributors at a later date.
MR. WESTLAKE added that Fairbanks is a logical choice
as it is 300 miles closer.
3:11:14 PM
D'ANNE HAMILTON, Economic Development Director,
Northwest Arctic Borough, referred to the
technological innovations that are occurring at the
Northwest Arctic Borough. She pointed out that for
every dollar spent on technology there is a cost in
energy consumption; for example, her work required that
she download a multi-media piece and it took 16 hours
on the equipment she has available. She encouraged the
committee to keep in mind the cost of productivity and
the slowdown of business when considering the
infrastructure that is needed for viable
sustainability. She also urged that the committee take
the opportunity to unite and integrate the state and
communities so they may work together. Ms. Hamilton
observed that funds from the federal stimulus package
will be available for true innovation and new ideas.
3:13:41 PM
CALEB PUNGOWIYI stressed that the immediate need for
energy is an issue that can not wait until the end of
the legislative session. He opined eliminating
bureaucracy is the best way to provide assistance to
residents.
3:15:02 PM
CALVIN SCHAEFFER, Kotzebue Airport Manager, Department
of Transportation & Public Facilities (DOT&PF), shared
some examples of the effects high energy costs have had
on residents. Some airports have not been able to buy
enough fuel to keep the runways open, although it is a
priority. From his past experience, he related that
most of the vehicles used for hunting have two-cycle
engines and a gallon of the proper oil costs $80.00.
Finally, Mr. Schaeffer said that the fuel crisis has
led to the theft of wood from an elderly resident.
3:19:14 PM
ANNMARIE O'BRIEN, Assistant Superintendent, Northwest
Arctic Borough School District, in response to
Representative Joule, said that the overall cost for
maintaining schools has increased significantly, which
impacts not only running the school system, but also
who they are able to hire and retain as teachers. She
opined basic services such as rent and utilities are
beyond the means of a teacher's wages.
3:20:54 PM
CO-CHAIR MILLETT thanked all of the participants and
pledged to take their comments into consideration in
the framework and policy of the energy plan.
3:21:25 PM
REPRESENTATIVE JOULE said that "good, actual
information" can bridge some of the distance between
urban and rural Alaska. He praised those who
testified, and the committee for coming to hear from
rural residents in their communities. Secondly, it is
important to make sure that young people take advantage
of the educational systems available. Representative
Joule spoke about the many specialized jobs that could
be filled by local residents with the proper training.
He remarked:
... and holding [our young people] accountable
to get the training that's necessary, to get
the education, at our universities and [at
technical] schools, and expecting them to do
well, like we all know they can, we can build a
healthier future for ourselves. And I think
that is the biggest opportunity in some of
these hard times.
CO-CHAIR MILLETT encouraged witnesses to take home the
information available from AEA.
3:23:32 PM
ADJOURNMENT
There being no further business before the committee,
the House Special Committee on Energy meeting was
adjourned at 3:23 p.m.
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