Alaskans have heard the governor announce a goal of generating 50 percent of our energy from renewable sources by 2025. We've seen the state compile an inventory of energy resources. While these are laudable efforts, it's now time to move past just talking about solutions. State leaders should consider a menu of proposals that lead to energy independence and reflect fiscal responsibility. Here are a few suggestions.
1. Level the playing field — Adopt policies, in particular production tax credits, that treat renewable energy resources the same as oil and gas. Policies should provide competitors a level playing field, and not play favorites among different energy resources and technologies.
2. Equalize Power Cost Equalization (PCE) — Power Cost Equalization should promote energy self-sufficiency in communities instead of fostering dependence on government programs. Currently, PCE payments only apply to high-cost energy sources, which means subsidized diesel has an unfair competitive advantage against cheaper local wind or biomass sources.
3. Use the state's purchasing power to get a better deal — As every Costco shopper knows, buying in bulk means better prices for consumers. Coordinating government purchases for federal, state, local and school districts generates economies of scale for everything from light bulbs to heat pumps to wind turbines.
4. Job training in renewables — Regional vocational and technical training centers should teach Alaskans to build, operate and maintain renewable energy developments.
5. Infrastructure for independence — High energy costs present substantial obstacles to setting up the greenhouses and cold storage that Alaska needs to grow our own food and become more food secure. Currently food costs don't reflect the carbon costs of transporting imported food and are subsidized by the federal government through programs like bypass mail and earmark appropriations to our ports, harbors and railroad. Given the uncertain future of such funding, we have to do better at taking care of ourselves.
6. Stop wasting waste — Every village has a dump and sewage. There's gas in garbage and wattage in waste. We have the technology so that burnables and methane gas can turn turbines and generate electricity. Public health also benefits by converting waste to fuel instead of allowing it to become a source of dust and disease.
7. Permit reform for renewables — Regulators should clarify and simplify the permitting needed to develop renewable projects. Confusion, uncertainty and delay are opponents of renewable resource development.
8. Clear rules for producing power — Utilities have an effective monopoly over power production, depriving consumers of the benefits of competition. Alaska should establish rules that encourage non-utility power production. "Net metering" will reward households that produce their own electricity and send surplus power back into the grid. Independent power producers need to know they can sell electricity to utilities at a fair and competitive price.
9. Energy research — Harness Alaskan ingenuity in our communities and in the universities to lead the way on energy research and development. For example, Alaska, with 90 percent of America's potential tidal energy, should be a national center for tidal energy research.
I suspect that 50 years from now we'll live in a world with distributed power, where every building will be energy self-sufficient. With planning and long-term vision, we can have energy independence and economic opportunity — and we can renew Alaska's promise.
