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submit your 225 word letter to the Anchorage Daily News via e-mail letter@adn.com, or fax them to 258-2157, attn: letters to the editor.

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Governor Palin's Anchorage office may be reached at 269-7450, or e-mail her at sarah.palin@alaska.gov
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Congressional Delegation
Congressman Don Young,
Anchorage Office:
907-271-5978
don.young@mail.house.gov

Senator Lisa Murkowski,
Anchorage Office:
907-271-3735,
EMAIL: Sen. Lisa Murkowski

Senator Ted Stevens,
Anchorage Office:
907-271-5915
EMAIL: Sen. Ted Stevens

August 8, 2008

Energy Relief Legislation Passes Legislature

Dear Neighbor,

Last night the legislature gaveled out after passing an energy relief bill, which includes increasing every Permanent Fund dividend check by $1200 this year and suspending state fuel taxes.  While this legislation will help Alaskans deal with high energy costs in the immediate future, I hope that our discussions over the previous month lead to a comprehensive statewide energy plan when we return to Juneau in January. 

Two very different visions of energy relief were proposed during the special session.  One plan, drafted by the Senate, focused on longer term energy needs.  It would have lowered the price of electricity and heating fuels for all households during cold winter months for two years, while still providing immediate relief through a $500 resource rebate.  The legislation provided assistance to all Alaskans while targeting additional help to those who need it the most, and included the intent to fund $50 million of renewable energy projects annually for the next five years.  I was pleased to vote in favor of this proposal, as it acknowledged that we will likely be facing high energy costs for years to come.

Once the proposal left the Senate and went over to the House, many of the targeted, long term relief provisions were removed from the legislation.  The resource rebate was raised back to $1200 dollars, while the electric and heating subsidies that would have benefited Alaskans for the next two winters were removed.  Increased support for the Power Cost Equalization program, which helps to lower high energy costs in certain rural communities, was included in the final House version of the legislation, but unlike the Senate proposal, the increases don’t expand the program, and they only last one year.  The fuel tax suspension, which should result in an $0.08 reduction in the price of gasoline and diesel, also sunsets during 2009. 

Before gaveling out, the legislature also passed a bill financing the final legislation.  Major appropriations include:

- $744.6 million to cover the $1200 resource rebates
- A $60 million addition to the weatherization grant program
- $23.6 million for increases to the Power Cost Equalization program
- A $50 million addition to the renewable energy fund
- $30.9 million towards bulk fuel loans

In addition to the expenditures above, the state will not collect $40 million in fuel taxes, bringing the total cost of the energy relief package to $950 million.

While I supported many of these appropriations, my final vote was a ‘no.’ I could not support the large individual payout.  While the payout will certainly help some people with high energy costs, it does nothing in the way of providing long term relief.  I expect this energy conversation to continue taking place over the next several years, and I will continue to push for sustainable solutions.

As always, feel free to contact my Anchorage office at (907) 269-0234, or send me an email at senator_hollis_french@legis.state.ak.us.  I look forward to hearing from you.

Yours truly,

Hollis French
Alaska State Senator
District M Anchorage