Representing the neighborhoods of Airport Heights, Campbell Park, College Village, Downtown, Fairview,
Geneva Woods, Government Hill, Green Acres, Midtown, Rogers Park, Spenard, South Addition, Tudor and Waldron
 

Working hard • Solving problems • Getting things done

August 12, 2008
 

Senator
Johnny Ellis

August 12th, 2008

ENERGY RELIEF: IMPERFECT, BUT NEEDED

Friends and Neighbors,

         Thursday evening the Legislature passed an energy relief package, the main component of which will be adding $1,200 to every Permanent Fund dividend check this year. This legislation went through a number of forms as it moved between the Senate and the House, and each side made compromises. Highlights of the final version include:

• The $1,200 add-on to the PFD mentioned above. Some are calling this a “resource rebate,” because it will be paid for with the surplus oil revenue the state has at this time. There is no means testing under this plan, so some parts of the state will not receive the energy relief they would have received in different versions of the bill. Final cost to the state: approximately $750 million.
• A one-year suspension of the $.08/ gallon motor fuel tax. Time will tell if this causes consumers to actually see a drop in what they pay at the pump.
• An additional $60 million for the AHFC weatherization program. During the regular session $300 million was put into this program, which has become very popular. Click here for information about the weatherization program.
• $23.6 million for Power Cost Equalization, which helps rural residents pay their electric bills.
• $50 million for the renewable energy fund. This is in addition to $50 million appropriated during the regular session.

         When the final version was sent from the House to the Senate, I was a “yes” vote. This was far from a perfect bill, and not what I would have crafted if I were a legislature of one. I was most pleased that money for weatherization and renewable energy were included in the bill as these are forward-looking programs that invest in long-term solutions.

         In the end, some sort of energy relief was needed since there are parts of the state facing a very cold and very expensive winter. Many of my colleagues vowed to come up with a long-term energy plan when we return to Juneau in January. I intend to hold them to this.

         Until next week,

        Senator Johnny Ellis

http://ellis.aksenate.org