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Web posted Friday, March 27, 2009

Energy advocates question Palin’s rejection of federal funds

By the Journal of Commerce

Renewable energy advocates who have worked closely with Gov. Sarah Palin on energy programs say they are baffled by the governor's decision not to accept about $55 million in federal stimulus funds for energy.

A joint press release issued by Meera Kohler, CEO of Alaska Village Electric Cooperative, Chris Rose, with the Renewable Energy Alaska Project, and Kate Troll, with the Alaska Conservation Alliance, argued that any "strings" attached to the federal energy funds are relatively unimportant compared to the benefits of using the money.

Palin said she is opposing taking federal stimulus money that carries obligations that could increase future state budgets.

"We already have a robust state weatherization program trying to address the energy crisis in rural Alaska, so why not add another $18.5 million (in stimulus energy funds) to the $360 million already committed last year?" Kohler said. "As far as I know the only requirement attached to these funds is establishing a policy advisory body, which is just good government anyway."

The largest part of the federal energy stimulus funds would appropriate $28.6 million for states to assist in preparing and implementing state energy conservation plans. Acceptance of the funds require the state or a municipal government to implement energy codes for residential and commercial buildings, but states and local governments have eight years to comply with this.

"Taking this step is already a recommendation from an energy efficiency study commissioned by the Alaska Energy Authority," said Rose, with the Renewable Energy Alaska Project. "The political will is moving in this direction anyway (toward encouraging conservation in buildings), so let's have a discussion about this before we just say no thanks."

A third component that could be left on the table is $8.5 million to develop and implement energy efficiency and conservation strategies. This money could be used for energy audits, retrofits, installation of renewable energy technology and creating incentives in the private sector for efficiency technology.

"It has long been demonstrated that the cheapest source of energy is the energy you don't have to produce," said Troll, with the Conservation Alliance. "And since we're doing everything that is attached to these federal funds, accepting those funds would be automatic. Overall, there appears to be no burdensome requirements that would preclude acceptance of these energy funds."

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