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Home My WebLink AboutExecutive Summary, Alaska's Energy Plan 1986Executive Summary Alaska’s Energy Plan 1986 BILL SHEFFIELD GOVERNOR STATE OF ALASKA OFFICE OF THE GOVERNOR JuNEAU Alaska’s Energy Policy, Past and Future by Governor Bill Sheffield Dear Alaskan: Energy programs have been a large and important part of Alaska’s public policy over the past decade. A lot has happened in that time, too. Ten years back, Alaskans were gazing across what looked like a limitless ocean of oil wealth. Now, we can see the other shore. Over the past 10 years, we Alaskans have modified our expectations to fit our income. In the same way, we have modified components in our energy programs to fit the fiscal realities. However, the basic policy behind those programs has not changed. There is a common sense logic and persistent pattern to the State’s involvement in energy matters over the last 10 years. That logic continues to motivate our energy program planning. All of Alaska’s energy programs share this primary goal: to use our resources to reduce consumer expenditures on energy. Our programs can be broken down into these general categories: e Identify and assist in the construction of “optimum” electric generation systems, from hydroelec- tric dams to waste heat systems; ¢ Reduce individual consumption of energy, especially for home heating purposes; ¢ Hold down electric bills in high cost, rural areas. Optimum Generation By far, the State’s major initiative has been to find electric generation systems that would—over the long term—provide electricity at the lowest cost. The Alaska Legislature has pursued this objective primarily through the Energy Program for Alaska, administered by the Alaska Power Authority (APA). These are the major components of the program: ¢ Four hydroelectric dams that are providing power today in southeast and southcentral Alaska— Tyee Lake, for Wrangell and Petersburg; Swan Lake, for Ketchikan; Terror Lake, for Kodiak; and Solomon Gulch, for Valdez and Glennallen. ¢ The Bradley Lake hydro project, which will provide power to the Kenai Peninsula by 1990. Con- struction should start this spring. e The Susitna River hydro project, which is in the planning stages. ¢ The Fairbanks-to-Anchorage intertie, a 170-mile 345 kilovolt transmission line connecting the power grids of our two largest cities. The Legislature has committed about $1.4 billion (including appropriations to the Power Develop- ment Fund, a savings account for future Railbelt power projects). That is a powerful commitment to providing the people of Alaska with long-term, dependable power at the lowest possible cost. On a smaller but stil! impressive scale, this commitment is reflected in other APA programs such as the waste heat recovery program, the Rural Electrification Revolving Loan Fund, and the Power Project Fund. Seventeen waste-heat recovery facilities have been built in rural Alaska since 1981. Numerous low- interest loans and cash grants (some administered by other State agencies) have helped expand and upgrade rural electric distribution systems. Direct grants and loans from the Department of Com- munity and Regional Affairs have allowed villages to purchase and store their diesel fuel in larger bulk quantities, reducing the overall cost to those consumers. Reduced Consumption Energy conservation programs have helped Alaskans reduce their energy costs by using less fuel, especially home heating fuel. State energy conservation measures include consumer education and outreach programs, weatheriza- tion, home energy audits, and better thermal efficiency standards for new buildings. Both federal and State money support our conservation efforts. The agencies include the APA, the University of Alaska, the Cooperative Extension Service, and the State Department of Community and Regional Affairs, which is the lead agency in energy conservation. Direct Energy Support The Power Cost Equalization Program (about $20 million in FY 86) is a major subsidy program. Through a statutory formula, it pays a part of the monthly electric bill of the residents in many high-cost rural communities. It was designed by the Legislature to assist rural communities in attaining some measure of equity in State spending for energy projects. Additionally, the federal Low Income Energy Assistance Program, administered through the State Department of Health and Social Services, helps qualifying households defray energy costs. Looking Ahead Alaska’s energy programs have entered a new phase. It is a time for consolidation and refinement. As times change, we need to ask ourselves which of our existing energy programs most effectively implement—or can be tailored to implement—our existing energy policy. We need to streamline the programs we have and make them work better. The State of Alaska remains committed to its primary goals of reducing energy costs for Alaskans. We can achieve this by continuing our hydroelectric program and encouraging conservation through coordinated State programs. We can adapt our programs to changing times and conditions, with the cooperation of the public, our Legislature, and local public officials. Sincerely, Bill Sheffield Governor VOLUME | — EXECUTIVE SUMMARY ALASKA’S ENERGY PLAN 1986 Bill Sheffield, Governor State of Alaska Prepared by: Department of Commerce & Economic Development Loren H. Lounsbury, Commissioner Alaska Power Authority Robert D. Heath, Executive Director February 1, 1986 For additional copies of this report write to: Alaska Power Authority Box 190869 Anchorage, AK 99519-0869 Contents ALASKA’S ENERGY PLAN—1986 EXECUTIVE SUMMARY TABLE OF CONTENTS PAGE List of Figures List of Tables PART | PART Il INTRODUCTION sr sacis eco ele senets se eee io oe vee ets ele 3 1 q ENERGY PLAN ENERGY POLICIES......... 0.00... c cece eects 7 i ENERGY FORECASTS ssc o eae ead) voce cree cee meies 16 i RECOMMENDATIONS... 5... 26 cei cinco st cece nese sre eters 21 i ENERGY REPORT RESOURCES Premera rete lene eyerercrevodiedeneicesbeeiletstelts on siorravel aieicransner eit 22 i STATE) ENERGY PROGRAMS inca. a. eae ars ae cia satel ash. 29 i NON-STATE/FEDERAL ENERGY PROGRAMS................ 33 i Contents N FP AQ FF YO DN o @ 10. FIGURES PAGE State Population — Historic and Forecast Through 2000 ........... 0... cece ee eee eee 16 State Thermal Forecast Through 2000............ cece cece een teen eee ee 17 State Electrical — Use and Forecast, 1981-2000........... 0... ccc cece eee eens 18 Location of ‘Oil |Provinces! Im Alaska o\s)is). a2 ia) jaeialatoloh ale syaie olts|+ anole slate linia elle: shania feiss [ae fa 23 Net Generation of Electricity in Alaska, 1980-1984. ....... 0.0... cece cece 24 Installed Capacity by Region and Generation Source — 1984........ 0... ccc eee eeee 24 Transportation Consumption of Petroleum by Use — 1982-1984......... 0.0... 00. c eee eee 25 Alaska’s Known Coal and Peat Resources... ......... 6. ec cee eee eee 26 Alaska’s Known Hydroelectric Resources and Major Transmission Lines.................. 27 Alaska Known Geothermal Resources........... 0... cece cece cece eee eee eee eens 28 ia: 3. Do > © @ 10. als 12: TABLES PAGE 1986) Energy GoalSaor tt araraltelctetelatalt fe leveleste le Meese 4 nce A oan allel clel et eredcle li ltatadalass Males A acaes 2 Priority Policies; for 1986 Energy Plan)... sus s5oce 4 aaa tly siclel clelclelelelslajeleleles Syatsm soon + aac 3 Major Points of Energy Planning Statute (AS 44.83.224).........00.0.00 0000 c ccc cece cee 5 and How They are Addressed in Plan. PIMMINNITIG: PHOPILY FROTICIOS: | leteteyets te mater siento sr ieacere cet elated octal che el ttetteya ts levtevettalo terteeicame sername che 8 Major Projects) Priority) Policies) 7 fi tie acin + snare | otcaeel = aera ayalislile|o}> folletole lt llars. > Suan aa ne 9 Energy Support and Efficiency Priority Policies............ 0... ccc ccc cee ete teens 10 Energy Gongervation Prigrity Policles)ssic5 sat teks ie cs alatelelel okaieateys faltntarie ld t:-oleo.l6 Waldiens 11 Hhermal ‘Energy: Priority) Policies ais elon sisuece 4s wigce te petal rcarchelcratettalisrolonallallsfodeatile: acebigeale Getadiatins 12 Rosell Fuels: Priority, POHCI@Ss 1) janine es euec e rcioe eect artchet aetedteleletaete ts levatae & erate ne aces 13 Transportation! Priority | Poticlesi). b5 % sci scien oi cesne ol crstele clenelstelclolel=larielelegaieies arate inate. 14 Alaskan Energy Policies to be Implemented at a Later Date.....................0.00005 15 State Agency Enemy Responsibilities... 6.6 5 ces ccs) le aete oaie ee cio es mam en cowie nue bone 31 INTRODUCTION 1985 marked a year of transition for Alaska; a year that took us from an oil-rich to an oil-sensitive posture, and one that reminded us that our future destiny must be shaped by comprehensive, cost-effective deci- sions made through a coordinated plan of economic development balanced by basic needs fulfillment. Within this framework, the four volume “Alaska’s Energy Plan—1986” was developed. It is the sixth in a series of reports prepared under Alaska Statute 44.83.224. Previous plans have included informa- tion regarding energy demand, assessment of energy supply options, research, conservation, and emergency planning. These plans have provided basic information and examined the long-term view of Alaska’s energy future to the year 2000. Emphasis was directed to reporting current energy produc- tion and consumption, and assessing Alaska’s energy future. Until 1985, those plans failed to highlight energy policy and Alaska’s future in the near-term. The 1985 Energy Plan combined the efforts of nine State agencies into a plan that defined each agency's energy programs, provided guidelines for future State action, and set the energy policy direction for Alaska in the coming years. That Plan adopted the view that long-range planning does not deal with future decisions, but with the future of present decisions. Acting as a “snapshot,” the 1985 plan defined the baseline against which all future energy programs could be measured. “Alaska’s Energy Plan—1986” prepares the State for a future of reduced oil revenues and increasing energy needs. Working from the basic statute that requires a long-term energy plan addressing five key areas, this plan includes the identification of specific policies that will be the road map against which the Governor and Legislature may fashion their programmatic appropriations, while providing the basic information to produce long-term solutions without major upheavals in the near term. “Alaska’s Energy Plan—1986” sets the direction for comprehensive, cost effective energy implementation activities in the coming years, and provides reasonable expectations of where State action will occur on energy issues in the future. Goals and Policies Alaska’s energy goals and policies through FY 85 were the product of governmental regulatory and budgetary actions fostered during a period of increasing State revenues. During that time, key pieces of legislation were enacted within Senate Bill 25, Senate Bill 26, and Senate Bill 438. This legislation included power development and energy conservation components. These actions have led Alaska’s energy policy to fall within four key areas: Finance Power Development Projects Mitigate Electrical Costs In Rural Alaska Manage Federal Conservation Programs Leasing of resources on state lands to maximize state benefits and encourage in- state and export use of those resources Son= Starting into the second half of the 1980's, the competition for State and federal appropriations has become more intense, and the ability to fund energy projects has come under question. During the 14th Legislature, House Concurrent Resolution 29 was placed before the Legislature for discussion. The session terminated before passage was complete, but public hearings on HCR 29 heard strong support for comprehensible State policies that would allow legislators and the public to consciously determine Alaska’s energy future. Simultaneously, “Alaska’s Energy Plan—1985” was being completed as a snapshot of where Alaskan energy programs and policies stood and as a first attempt to identify where Alaska should be going on energy issues in the future. Introduction “Alaska’s Energy Plan—1986” has been designed to build on the 1985 plan. Seven issue area goals (Table 1) were formulated under the State’s long-term, overall goal which is: “Seek to assure that all Alaskans have an adequate supply of energy at lowest reasonable costs to the consumer, the environment, and the State.” Energy policies were formulated under the direction of this overall goal, and the individual issue area goals. Originally, 38 policies were developed, and these were later consolidated into a total of 29 policies. Sixteen policies were highlighted for immediate attention, and others set for implementation over the next several years (Table 2). TABLE 1 — 1986 ENERGY GOALS ISSUE AREA: Energy Planning GOAL: Alaska will prepare an annual energy document that reports thermal, transportation, and electrical power energy use and production for the previous 5 years, forecasts consumption and production incrementally for the next 20 years, prepares and updates emergency contingencies, and outlines govern- mental policies for energy involvement. ISSUE AREA: Major Projects GOAL: Alaska will encourage major energy projects that provide reduced long-term energy costs to consumers and promote development of those projects through leverage financing and attractive regulatory environment while preserving the historic, scenic, and cultural heritage of the State. ISSUE AREA: Energy Support and Efficiency GOAL: Energy support and efficiency development in the form of general fund appropriations and loans, will be designed to ultimately reduce the total level of residential and commercial energy consumption through increased energy system efficiencies, that lead to producing the lowest long-term cost for electric generation and home heat requirements, and reduce or replace the need for fossil fuels with an emphasis on regionally available renewable energy resources. ISSUE AREA: Energy Conservation GOAL: Alaska’s role in the field of energy conservation will be one that supports the development of systems that reduce the per capita consumption of nonrenewable energy resources, encourages the efficient consumption of renewable resources, and provides for long-term reliability security for Alaskans statewide. ISSUE AREA: Thermal Energy GOAL: Thermal energy in the form of fuel oil, natural gas, wood, and coal is used extensively to heat Alaska’s building stock, and given Alaska’s harsh environment, it is imperative that all Alaskans be assured a continuous supply of thermal fuels at a reasonable price. In addition, the production of fossil fuels for export from Alaska has been, and will continue to be for the foreseeable future, the cornerstone of Alaskas economy. ISSUE AREA. Fossil Fuels GOAL: Alaska will develop fossil fuel energy resources to maximize state economic return in both development of the state’s economy through development projects and through lower energy costs to Alaskan consumers. In addition. the production of fossil fuels for export from Alaska has been, and will continue to be for the foreseeable future, the cornerstone of Alaska’s economy. ISSUE AREA: Transportation GOAL: Alaska will support transportation schemes that reduce the overall consumption of energy resources per mile of travel, provide for greater in-state availability of transportation fuels, and increase the opportunities for closer contact between all Alaskans in an expeditious manner. ISSUE AREA Planning Major Projects Major Projects Major Projects Major Projects Energy Support & Efficiency Energy Support & Efficiency Energy Support & Efficiency Energy Support & Efficiency POLICY Prepare an annual energy report that provides an update for energy policies and programs and coor- dinates the efforts and activities of energy planning groups statewide. Bradley Lake—Support the completion of the Bradley Lake hydroelectric project by 1990, as part of the least cost, most reliable energy strategy for the Railbelt. Susitna—Continue state support required for acquisi- tion of the FERC license, including encouraging utility support and other evaluations and activities necessary to determine financial feasibility and completing the construction of the Susitna hydroelectric project. Evaluate the desirability of transferring of federal hydroprojects in Alaska to state or local control. Continue evaluating and seeking to identify major energy projects that result in the lowest life cycle costs, as determined by reconnaissance and feasibility studies. Institute a two-year analysis of all State supported energy programs beginning in FY 87. Review existing avenues and develop new alternatives for State and private sector financing of energy capital Projects. Establish an accountability system to insure State agency statutory compliance and maximum delivery of service of State energy programs. Institute the recently completed Memorandum of Agreement between the Alaska Power Authority and the Department of Community and Regional Affairs. RESPONSIBLE AGENCY APA DCED APA APA OMB APA APA OMB APA DCRA DHSS APA DCRA DHSS APA DCRA ISSUE AREA Energy Conservation Energy Conservation Energy Conservation Energy Conservation Thermal Energy Fossil Fuels Transportation POLICY Energy efficiency will be encouraged through develop ment of minimal thermal and lighting standards Facilities which are constructed or where construction costs are funded by the State of Alaska, will comply with State thermal standards. Continue to seek federal Low Income Housing Energy Assistance Program (LIHEAP) funds to complete weatherization projects and to support specific conser- vation programs offering reduced reliance on nonrenewable energy resources. Alaska will pursue appropriate technologies that provide reliable, long-term power by using federal and state incentives to promote demonstration of applied research by private investors. Generate revenue and encourage the diversification of the development of Alaska’s energy resource base by offering for lease appropriate state lands for explo- ration and potential development of oil, gas, coal, and geothermal energy resources. Also provide oppor- tunities for obtaining firewood from State-owned lands. Disposition of royalty oil shall be awarded in a manner which will optimize benefits to citizens of the State through proposals that maximize State revenues, supply existing in-State refineries and oil and gas based utilities at market prices, promote new in-State refineries and oil and gas based utilities which are economically feasible at market prices, and promote foreign markets. Evaluate projected energy use of alternative routes for new transportation links and traffic management decisions shall be evaluated. Table 2 — Priority Policies for 1986 Energy Plan RESPONSIBLE AGENCY DCRA DOTI/PF DHSS APA DCRA DHSS DNR DNR DOT/PF Introduction Plan Development The development process for this plan was delayed until July 1985, due to the transfer of planning responsibilities from the Office of Energy, eliminated as a budget cut in the FY 86 budget delibera- tions, to the Alaska Power Authority. There was limited time to carry the strategies and program options presented in last year's “Alaska’s Energy Plan—1985” into policy, but the use of a high level steering committee supported by staff workers from within State agencies and numerous comments from the public allowed policy development as concise and wide-ranging as time allowed. Policy and long-term goals were also formulated under declining State revenues, and pessimistic revenue predictions for the FY 87 budget process. The Energy Policy Steering Committee was assembled to set the direction and tone for energy policy development. The Steering Committee was composed of cabinet officials (commissioners of major State departments), top counsels to the Governor, and individuals from both the State Senate and State House of Representatives. This committee was staffed by an interagency Working Committee com- posed of State mid-level managers. General public direction was solicited from energy and nonprofit groups, and private citizens. Through a series of letters, telephone contacts, and one statewide teleconference, policy ideas were obtained. These were subsequently incorporated with ideas from top State officials to form the goals and policy action statements in this report. Procedurely, general public comments were incorporated into the Steering Committee and Working Committee process which prepared draft goals and policy statements. These were disseminated for comment and aired at a statewide teleconference. Based on the general public outreach program and teleconference comments, the goals and policies shown in this report were finalized. Plan Organization Alaska’s Energy Plan—1986 attempts to address each of the five main components of AS 44.83.224 (Table 3), prepare a series of energy policy statements, and consolidate known energy data into a central document. Alaska’s Energy Plan—1986 is presented as a four volume set, which includes: ¢ Volume |—Executive Summary ¢ Summarizes salient points of Energy Planning Report ¢ Highlights policy options ¢ Volume Il—Planning Report ¢ Part |, Energy Plan—Provides the long-term energy plan and does so through the identification of priority policies and by forecasting Alaska’s energy future for the state’s three main regions; Railbelt, Southeast, and Rural. ¢ Part Il, Energy Report—Examines Alaska’s energy resources and energy programs today. Resource location and potential long-term production are discussed, consumption levels are identified, and technologies for their use are examined briefly. State, federal and private nonprofit programs are also identified. ¢ Volume IIl—Regional Data Summary ¢ Presents energy data by community organized into 23 energy (census) regions, and in larger com- posite summaries. e Includes data on consumption of energy, energy assistance, and energy project development. Introduction Table 3 — Major Points of Energy Planning Statute (AS 44.83.224) and How They are Addressed in the Plan MAJOR POINT End Use Study Energy Development Component Energy Conservation Emergency Energy Conservation Research and Development WHERE DESCRIBED VOLUME II—Planning Report II|—Regional Data Summary II—Planning Report I|—Planning Report I|—Planning Report II—Planning Report III—Regional Data Summary l1—Planning Report !!—Planning Report ||—Planning Report CHAPTER Resources Resources Resources Resources Energy Support & Efficiency Resources Energy Support & Efficiency Non-State Federal Programs EXPLANATION Consumption and production of Alaskan energy resources Historic Energy Data by Community Energy resources and their technologies are highlighted Major development projects discussed Energy programs discussed Energy goals and programs to reduce consumption Outlines agency programs that foster conservation and encourage energy reductions Cites recommendations from reconnaissance and feasibility studies Not prepared for this plan, see 1985 plan for compliance, which is still valid. Demonstration projects ongoing and anticipated Summary of State sponsored projects Private sector achievements reviewed *Volume | — Executive Summary briefly addresses each point of Plan’s other volumes. Introduction ¢ Volume IV—Appendix ¢ Additional background and support data Combined, these documents portray Alaska’s energy status in the first half of the 1980's, and defines a planning direction through policy implementation the State of Alaska should take to resolve energy issues in the coming years. These documents show where Alaska wants to go on energy issues and how it hopes to get there. Although the picture these documents paint does not have complete detail on how Alaska’s energy future will look, it does provide enough image to set the general policy tone in the next few years, and pave the way for a complete legislative package in FY 87 that plots out Alaska’s energy plan in the long-term. PART | — ENERGY PLAN Policies ENERGY POLICIES Alaska’s overall energy goal is to “assure that all Alaskans have an adequate supply of energy at lowest reasonable costs to the consumer, the environment, and the state,” and the cornerstone of Alaska’s Energy Plan—1986 is the expression of state energy goals and policies flowing from that overall goal. This section highlights those issue area goals and policies that will begin to formulate a preferred action plan with near-term and long-term implementing actions. Policy is the key to determining the complexion of the long-range plan and the importance of chosen policies is substantial. Knowing what Alaska has to offer in the energy field and understanding what has been accomplished to use those resources wisely is only part of Alaska’s energy picture. What Alaska plans to do with available resources in the long-term is the challenge in developing energy policy. Energy policy presented in this report is the result of two year’s work. Commencing with the effort to develop Alaska’s Energy Plan—1985, issue areas were defined, and specific strategies and program options were organized for analysis and discussion by top State leaders. Priority policies were selected on the basis of five criteria: 1. Impact—Effect of implementing policy now, or of delay, on Alaskans and ongoing programs. 2. Fiscal Impact—Expense to the state now and in the long-term. 3. Return on Costs—Will policy assure long-term economic development and provide an adequate return on investment. 4. Political Feasibility—Political climate right for change. 5. Legislation—Must legislation be enacted now to meet future policy requirements. Presentation of those priority policies is the focus of the following sections. Policies PLANNING Prior State energy plans have been compilations of historical data, broad attempts at forecasting Alaska’s energy future, and minimal efforts to define State energy policies on which the Administration could focus programmatic attention. These planning efforts were completed under the auspices of AS 44.82.224 which requires an annual energy plan be completed for Alaska addressing major points, listed on Table . Changing conditions have necessitated a change in the way Alaska addresses energy. Alaska needs to look at each of the five areas of the present legislation and address each one with direction that permits the development of energy policy. Updating information pertinent to the development of concise energy policies is central to good plan- ning. A concentrated effort must be undertaken to assess the cost and availability of energy resources by community. Good, current energy data must be combined with equally good socio-economic data to prepare reliable forecasts on which sound energy planning can rely. A process to forecast energy demand through the next 20 years on a regional basis is a serious need of long-range planning efforts. Coordinating the efforts and activities of energy planning groups statewide is another primary element of this policy. The policy does not speak to an equally important topic of an economic development policy as an integral part of energy planning. The State must work to develop an economic development plan, in which an energy development component, such as Alaska’s Energy Plan—1986, will be an integral part. Table 4 — Planning Priority Policies ISSUE AREA: PLANNING GOAL: Alaska will prepare an annual energy document that reports thermal, transportation, and electrical power energy use and production for the previous five years, forecasts consumption and production incrementalty for the next 20 years, prepares and updates emergency contingencies, and outlines governmental policies tor energy involvement. Governor's RESPON- | fy a7 sso | OTHER SIBLE | | POLICY OBJECTIVE IMPLEMENTING ACTION neewstoom | BUDGETS | AGENCY | 1 | Prepare an annual energy report that provides an | Prepare @ document that will describe Alaska’s long-term | Modity Alaska energy planning statutes to reflect the 75.0 APA | update tor energy policies and programs and coor. | energy policy options, define “long-term” (specified in years, | need for a policy document, an energy inventory report. | dinates the efforts and activities of energy planning | i. 10, 20. 30, etc.) incorporate a summary of statewide | and a completion date of August 15 to coincide with | statewide economic and energy forecasts, and provide for a comple- | annual budget preparations. | tion date in line with, executive budget preparation Prepare a report on energy information that is historic, most | Modify Alaska energy planning statute to require and (150.0) APA recent year, and comparative. information type determined | to designate lead agency to request appropriation to by definable core group of State agency and legisiative | support data collection by agencies and provide for- designees, provide for review of data type every five years, | mulae for distribution of those funds through separate an end-use study, and provide a date of publication initially | agencies. Includes the consolidation and compilation | | and annually coinciding wih long-term energy policy | of agency information. | | | gocument. | | | i (J Indicates dudget estimate for planning purposes to complete action. but not included in Governor s FY 87 Budget Request Other Budget — Federal or program receipt funds u MAJOR PROJECTS Alaska has financed several major projects through the Energy Program for Alaska, and has supported the development of natural resources for energy use both in-State and for export. For the purpose of this plan, major projects are identified as those not of a small or dispersed nature. (These are discussed in the Energy Support & Efficiency section.) Initial projects developed under the Energy Program for Alaska include the Anchorage/Fairbanks Inter- tie and the Four Dam Pool consisting of Solomon Gulch (Valdez), Swan Lake (Ketchikan), Tyee Lake (Wrangell/Petersburg) and Terror Lake (Kodiak). The Power Projects Revolving Loan Fund was also developed to finance $210 million interim costs prior to the completion of long-term power sales agreements for the Four Dam Pool. The State has also expressed strong financial interest in providing a long-term solution to the power needs of the Railbelt. Based on current estimates for the amount of recoverable natural gas that is available for Railbelt power generation, a substitute for natural gas will be needed soon after the turn of the century. Energy resources which could provide a substitute include hydropower, coal, natural gas (new Cook Inlet discoveries or North Slope natural gas), or a mix of these resources. The Alaska Power Authority has filed license applications with the Federal Energy Regulatory Com- mission (FERC) for the Bradley Lake and Susitna hydroelectric projects. Current schedules call for the Susitna FERC license to be issued in 1989. Bradley Lake’s FERC license was completed in December 1985 with construction expected to commence in early 1986. Both projects have been funded through the Power Development Fund which provided a continuing appropriation of $250 million in FY 85 and FY 86. A Superior Court action in October 1985 declared that appropriation unconstitutional, but later clarification allowed expenditures for the Bradley Lake project to stand. Only the Susitna portion of the appropriation was detained by the court ruling. A major consideration in the upcoming legislative session will be to reappropriate funding for the Susitna project, and annually appropriate funds for both Bradley Lake and Susitna. Additionally, Alaska is studying the potential of transferring federal hydroelectric projects to State or local control, supporting western Alaskan resource development projects, and installation of other energy resource extraction projects. In combination, these potential major projects could be a dominant part of Alaska’s energy future. Table 5 — Major Projects Priority Policies ISSUE AREA: MAJOR PROJECTS Goat: Alaska will encourage major energy projects that provide reduced long-term energy costs to consumers and promote development of those projects through leverage financing and attractive reguiatory environment while preserving the historic. scenic, and cultural heritage of the state. T | | cana | | Freres | OTHER | wSIOLE POLICY OBJECTIVE IMPLEMENTING ACTION | Mewwnoom | BUDGETS | AGENCY + eis at Bradley Lake Support the comoiet y Continue ongoing process to project completion Continue annual State appropnation for the project. | 50,0000 | APA Lake Mydroeiecinic project by 1990 as cart | Cost. most reliable energy strategy | Susitna Continue state support requir Continue ongoing process to project completion Continue State pursuit of FERC license. 1100 000 09° | APA tion of the FERC license. including enc | Support and other evaluations and activ Reinstatment of $200 million FY 86 appropriation 1200 000 01° | to determine financial feasibility and completing the | | construction of the Susitna hydroelectric project | | Evaluate the desirability of transferring of federal | To determine whether acquisition of federal projects would | Specific enabling legislation will be required to incor | To be de: | APA hydroprojects in Alaska to state or local control —_|_ be financially prudent and in the best long-term interest of | porate projects under State controt. Will depend upon | termined ome the State and the citizens these projects serve, recommendations of ongoing State/tederal study to | | determine consequences of transter. Report to be com- | pleted about January 1986. | Continue evaluating and seeking to identity major | Large-scale hydroelectric projects (5 MW or greater) should | Continue reconnaissance and feasibility assessment | (125 0) 500 APA energy projects that result in the lowest lite cycle costs, | continue to be investigated of technical and economic viability of large-scale | a8 determined by reconnaissance and feasibility hydroelectric projects. | studies | Alaska will promote electrical interties that result in lower | Continue reconnaissance and feasibility assessment 4000 | APA | long-term costs for consumers and where a reasonable return | of technical and economical viability of interties in | (10300) | OMB on State investment may be expected through economic | Southcentral. Southeast and rural Alaska development Evaluate State reguiations to replace ihose of FERC ang | Analyze potential legislation parallel to governing | To be de | APA design regulations to fit Alaskas unique environment federal legisiation that exerts State authority over | termined project development i - _ — = = oleae () Indicates puaget estimate for planning purposes to complete action. Dut not included in Governor s FY 87 Budget Request 9 Other Budget — Federal or program receipt funds * Request to reinstate continuing appropriation trom previous years. nol a new Dudaet request Policies ENERGY SUPPORT AND EFFICIENCY The level of State funding support and number of programs to reduce the economic burden of thermal and electrical requirements of Alaskans have grown dramatically and proportionately in response to the demonstrated public need in the past years. During this period, increasing State revenues afforded a reliable avenue in providing equitable economic distribution through Alaskan energy programs. Pro- gram support in the form of general fund appropriations and loans to provide a portion of home heating and electrical costs, insulating building shells, improving efficiencies and reducing the level of fossil fuel consumption through upgrades to community electrical systems have, and are benefiting a great number of Alaskans statewide. No concise effort has been made to coordinate the many support and efficiency programs to allow for these programs to work for the maximum benefit to the State. The roles and responsibilities of State agencies providing energy support and efficiency program services must be considered to assure that the service is technically appropriate, cost effective, and consistently reliable. These policies seek to provide reliable, appropriate solutions to thermal and electrical needs of Alaskans by examining ways to coordinate the activities of energy support and efficiency programs that would provide quality, long-term benefits to Alaskan residents. Table 6 — Energy Support & Efficiency Priority Policies ISSUE AREA: ENERGY SUPPORT AND EFFICIENCY GOAL Energy support and efficiency development in the form of general fund appropriations and loans, will be designed to ultimately reduce the total level of residential and commercial energy consumption through increased energy system efficiencies, that lead to producing the lowest long-term cost for electrical generation and home heat requirements, and reduce or replace the need for fossil fuels with an emphasis on regionally available renewable energy resources. Cosme RESPON eviereeteetl|| OTHER SIBLE POLICY | OBJECTIVE ij IMPLEMENTING ACTION Reavest'$000 | BUDGETS AGENCY = eee —— two year analysis of all State supported | Institute a two-year analysis and review energy assistance | Administrative order directing one agency to complete | To be de ms Deginzing in FY 87 | costs and effects, generating a series of policy and funding | analysis termined ous. recommendations to the 1988 Legisiature | \ Review existing avenues and develop new alternatives. Complete review within routine program budget in FY 87 to | Begin review process after July 1. 1986 Within C FY 68 routine budget Establish an accountab ” Determine maximum effectiveness of State delivered | Internal review process within agency statutory com mum delivery programs. | routine of service of State energ | budget ttute tne recently completes Ve Coordinate agency rural energy programs within Memoran. | Enact projects in agency FY 87 request To be de apa Detween Ine Alaska Pca Department of Community and dum of Agreement | termined ocra | | | | | Q Indicates Budget estimate for planning purposes to complete action, but not included in Governors FY 87 Budget Request Other Budget — Federal or program receipt funds, 10 a St ENERGY CONSERVATION Alaska is blessed with abundant natural resources, but availability of those resources is many times limited to imports from out-of-State or from distant Alaskan sites. Conserving scarce local resources is an important part of Alaska’s energy policy, and policies created show an Alaska commitment to: using appropriate technologies to enhance the use of local resources weatherization and securing energy efficiencies through cost-effective measures coordinating State and federal financing schemes to provide a maximum effort toward assuring Alaska’s long-term energy security. Conservation is considered a resource in Alaska, and the policies set for action this year demonstrate the Alaskan commitment to conservation efforts. Conservation policies developed collectively seek to provide minimal thermal and lighting standards, provide the maximum leverage for state and federal appropriations, and institute a program to encourage the use of appropriate technologies matched to individual situations. Together, these policies can change the total consumption of energy resources through reductions in line with cost effective conservation measures, and energy security through development of energy technologies that maximize the use of local resources. Table 7 — Energy Conservation Priority Policies ISSUE AREA: ENERGY CONSERVATION GOAL: resources, encourages the efficient consumption of renewable resources, and provides for long-term reliability for Alaskans statewide. ] Alaska's role in the field of energy conservation will be one that supports the development of systems that reduce the per capita consumption of nonrenewable energy Governors | RESPON. Fr er eva | OTHER SIBLE PoLicy | OBJECTIVE IMPLEMENTING ACTION newent00% | BUDGETS AGENCY t | Energy etticiency will be encouraged through develop: | Complete thermal and lighting standards presently being | Adopt regulations establishing standards for new con: 58.7 1394 | DCRA | ment of minimal thermal and lighting standards. | prepared under the direction of the Department of Community | struction of non-public buildings financed with State | and Regional Attairs and enact them into statute no later than | funds. | 1987 | Facilities which are constructed or where construction | Complete thermal and lighting standards presently being | Design Standards Manual for Buildings and contract | None | DOTPF costs are funded by the State of Alaska. will comply | prepared under the direction of the Department of Transpor- | specifications for buildings would be updated to | | with State thermal standards tation and Public Facilities include these standards. | | | | | Modity Transfer of Responsibility Agreement Regula. | None | DoTPF tions to require recipients to comply with the | standards. | Utilize AS 35.10.160-200 as a means to institute con: | To be | | poTPr | Servation standards in State financed buildings. provided | later | i | Continue to seek federal Low Income Housing Energy | Develop energy consumption reduction targets for govern: | Work with Congressional stalf to enhance funding for. | To be | Oss Assistance Program (LIHEAP) funds 0 complete | ment buildings (both owned and leased) at the State and local | mulas for Alaska that will garner a larger share of the | provided weatherization projects and to support specific con: | level LIHEAP funds on an annual basis. later | servation programs offering reduced reliance on nonrenewable energy resources | Use annual federal appropriations fo finance assistance to low income families to pay energy bills | | | To decrease annual fuel bills and increase comfort and health | Annual appropriations trom State and lederal sources | 1.0000 1,600 0 ocra of assisted households. to fund weathenzation activities Alaska will pursue appropriate tech 3 #5 ‘at pro. | Alternative energy demonstration projects will emphasize | Budget for project manager procedure which esta: | (1000) | | apa | vide reliable, long term power dy using ‘eceral and | applied research and commercial applications. blishes tasks, data requirements, etc., for alternative | OCRA | State incentives to promote demonstrator >! applied | energy demonstration projects that are completed by OHSS research by private investors | State agencies, utilizing coordinator position | Establish regulations and tax laws that favor investments in | Expand State loan terms and provide tax credits for | To be de APA alternative energy and evaluate the merits of such invest: | alternative energy development projects in Alaska. | termined | Oceo | ments through caretul analysis of proposals | bor | | | Consider the use of third party financing in order to provide | Enact legisiation to provide third party financing with | To be de. | OcEO | | the State with a market test for @ proposed project and to | revolving lund to supply loans and recycle interest back | termined oR | tap state-of-the-art expertise. into fund, and review existing statutes to remove limita- | | tions, if any, to third party financing | | | Utilize the federal wood waste and biomass program to | Continue to seek federal appropriations and define (1520) | 1900 | APA | demonstrate cost effective use of alternative technologies | projects to implement effective programs. ONR | associated with biomass, municipal solid waste, and other | discard products | The State loan program for alternative technologies should | Expand loans for alternative energy technology | To be | Oceo De examined to permit appropriate modification to larger | installations. provided | | residential and commercial installation ioans. later j | Small scale hydroelectric and other renewable power | Continue to request annual capital projects | 13000 | 60700 APA | Generation technologies will De evaluated within each recon: | appropriations (41200 | | Naissance and feasibility study undertaken by the State. | | Construct waste heat and geothermal projects in those loca. Continue to request annual capital proyects appropria- 3513 3160 4 APA tions found appropriate in reconnarssance and feasibility | tions on an annual Dasis (45287) | (25808) () Indicates budget estimate for planning purposes 10 complete action but not included in Governor s FY 87 Budget Request OTHER — Federal or receipt tunds studies. Policies THERMAL ENERGY Alaskans, per capita, consume three times the national average number of Btu's. This consumption requires a continuous supply of thermal energy resources, and Alaska has been active on the State and private level to assure these thermal needs are met. The State has given grants for bulk fuel storage facilities and new power generation, loans to purchase winter fuel supplies, made State forest land available for wood cutting, and leased State land for thermal resource extraction. The private sector has developed new refinery capacity, petroleum dealers have supplied remote locations on a routine basis, and transportation logistics have improved. Despite these efforts, there are annual fuel shor- tages in rural Alaska, prices continue to be high, and many communities have not been afforded the benefit of weatherization and improved power generation. Unlike the Energy Assistance or Fossil Fuel issue discussions, this thermal policy section concen- trates on the State’s participation to assure thermal schemes are instituted and a continuing effort is made to assure long-term energy supplies are available. Table 8 — Thermal Energy Priority Policies GOAL: imperative that all Alaskans be assured # continuous supply of ISSUE AREA: THERMAL ENERGY has been, and will continue to be for the foreseeable future, the cornerstone of Alaska's economy. Thermal energy in the form of fuel oll, natural gas, wood, and coal is used extensively to heat Alaska's building stock, and given Alaska's harsh environment, it is thermal fuels at @ reasonable price. in addition, the production of fossil fuels for export from Alaska Governor's | FY eT Beeet | OTHER *SreLe. | POLICY OBJECTIVE IMPLEMENTING ACTION Seen | BUDGETS | AGENCY i | | | Generate revenue and encourage the development of | Conduct the States Five-Year Oil and Gas Leasing Program. | Conduct four oil and gas lease sales during FY 87and | $21963 | | ONR Alaskas energy resources by offering for lease | issue competitive leases. and administer existing oil andgas | complete all necessary steps for oi! and gas lease | appropiate state lands for potential development of | leases. sales planned beyond FY 87. Prepare award notices, | oll. gas. coal, and geothermal energy resources Also issue leases to successtul bidders. and administer all | provide opportunities for obtaining firewood from state- existing oi! and gas leases. | owned lands Evaluate proposed oil and gas lease sale areas. and assess | Conduct sale-specitic geological, geophysical, and | $1.6643 | ONR other State-owned lands for inclusion in the leasing program. | economic ns of Oil and gas lease sale areas | rior to each lease sale to determine appropriate bid: | | ding terms, | | | Continue efforts to determine Alaska’s marine boundaries in | Continue technical and legal eforts to establish tne | $9838 | $5500 ONR | areas where 1d federal oi! and gas lease sales are | location of the boundary between the State offshore | | planned and cre: 1S1Ng tract Maps and legal descriptions Jed lands and those of the federal government | for State oil and gas lease sales accurate legal descriptions and tract maps | | | ‘and gas lease sales. | | Continue to determine the location, size. and power poten. a regional geother as for the Alaska $955 | ONR tial of Alaska’s geothermal resources so that the feasibility and Aleutian Islands. conduct geochemical | of developing these sources can be evaluated. Studies of the Copper River basin geothermal area. | complete studies of the Mt. Spurr and St. Augustine | Volcano geothermal areas, complete a bibliography of | references on geothermal studies in Alaska. and in | | ttate a “Call tor Comments” in response to a request | | tor @ geothermal lease | Make available State-owned lands for coal development and | Competitively lease State lands with high to moderate | $3555 ONR Continue Studies and appraisals in preparation for expected | coal potential. offer lands with low potential non. additional coal extraction in Northern Alaska and in the | competitively. administer existing coal leases, and Rauibelt implement the Alaska Surface Coal Mining and Control and Reclamation Program Conduct field work and laboratory studies of coal and | $2871 ONR overburden samples. and provide technical assistance | | to land-management agencies Make firewood available {rom State-owned lands Continue to open selected State-owned lands tor | $2840 ONR 1 firewood collection near poy | offer small-scale timber sale: | suppliers | Jesigned for firewood ‘ | Indicates Budget estimate for planning purposes to complete action but not included in Governors FY 87 Budget Request Other Budget — Feaeral or program receipt funds 12 lation centers. and to | FOSSIL FUELS Alaska’s economic prosperity has been dominated by the extraction of oil, gas, and coal. Since statehood, Alaska has been developing enlarged refining capacity, expanding markets for coal and natural gas, and working to provide a firm supply of fossil fuels. Despite these efforts, there continues to be supply shortages to portions of rural Alaska, prices remain high, and much of the resource extraction goes to markets preordained by federal laws. It is imperative that Alaska be responsible for its natural resources and pave the destiny for its citizens in a fashion that allows for strong economic development without undue restraint by outside sources. The State also has a responsibility to its citizens to provide a fair price of energy to consumers. In 1985, the State took one step closer to determining its own schedule for production and use of State resources. The Reagan Administration granted a waiver for the State to export up to 6,000 barrels of Cook Inlet crude oil a day to foreign markets in the Pacific Rim. Although a contract for this sale and the logistics necessary for export transfer of crude oil will not occur until 1986, the way has been paved for this, and potentially other, crude oil exports. Table 9 — Fossil Fuels Priority Policies GOAL: ISSUE AREA: FOSSIL FUELS Alaska will develop fossil fuel energy resources to maximize state economic retum in both development of the state's economy through development projects and lower energy costs to Alaskan consumers. in addition, the production of fossil fuels for export from Alaska has been, and will continue to be for the foreseeable future, the cornerstone of Alaska's economy. \ POLICY OBJECTIVE IMPLEMENTING ACTION | RESPON. | SIBLE AGENCY | Disposals of royalty oil shall be made to optimize Denefits to citizens of the State. Proposals for purchase of royalty oi! shall De evaluated to determine whether | they maximize State revenues, supply existing in-state | refineries and oi! and gas based utilities at market prices. promote new in-state refineries and oil and gas Dased utilities which are economically feasible at market prices, of promote foreign markets Conduct short-term competitive royalty oi! sales that will increase the price received for the Slates royalty oil relative to taking the oi! in-vaiue. | Consider and make decisions on proposals for tong-term | royalty otf contracts which include in-state processing of the | royalty ot! at new or existing refineries. Continue efforts to export Alaska crude oi! and natural gas | to Pacitic Rim countries. | Obtain a short term royalty om! back up contract to be used | im conjunction with the Cook Inlet export competitive sale. Assure the timety and correct receipt of royalties. rentals. and | net profit share payments due to the State from the produc: tion amd marketing of its royalty OM and gas. and from its proportionate share of federal receipts trom oi! and gas production on federai ieases Conduct at least one short-term competitive royalty oi! sale during FY 87 Complete negotiations and submit to the Alaska Legisiature a long-term royalty oil contract with Petro Star, inc. and Chevron Oil Company, USA. Also, continue to analyze proposals presented by Arctic Energy Company and Valdez Relining Company, inc to determine whether the proposals protect the States economic interests and whether these long-term con- tracts would otherwise optimize overall benefits to Alaska residents. Conduct a competitive sate of Cook Iniet royalty oil for export to Japan. Negotiate contract. Maintain a current accounting of all oi! and gas pro- duction and corresponding royalty payments trom State and federal lands. and review and approve lessees’ allowable net profit share expenditures from Net Profit Share” leases. (_} Indicates budget estimate for planning purposes to complete action. but not included in Governor's FY 87 Budget Request Other Budget — Federal or program receipt funds $350 $35.0 $350 $6540 ONR | ONR onR | ONR | | ONR pea as } l 13 Policies TRANSPORTATION Traveling from point to point in Alaska has been historically difficult given the terrain and weather. Air transportation has been the historic source of travel across Alaska, but since statehood, road and rail transportation have become important, especially in the metropolitan “Railbelt” area. Much of the air- port, road, port, and rail improvements have come from federal funding managed by the State. Their improvements have resulted in reduced fuel consumption per mile of travel, increased efficiencies, and better safety of additional significance. Alaska assumed sole responsibility for the operation and maintenance of the Alaska railroad system in 1984, elevating the need for conservation in operations and extending the State's ability to provide an economical mode of transportation. It is incumbent on the State to continue to seek additional improvements that will reduce the need for transportation fuel consumption per mile of travel, and to assure that those transportation fuels are available to support the long-term economic health of the State. The State must also encourage the expeditious long-term use of telecommunications and reduced costs of fuel throughout the State. Table 10 — Transportation Priority Policies ISSUE AREA: TRANSPORTATION GOAL: Alaska will support transportation schemes that reduce the overall consumption of energy resources per mite of travel. provide for greater in-state availability of transpor- tation fuels, and increase the opportunities for closer contact between all Alaskans in an expeditious manner. : | | | | | jeer] RESPON. ELSA OTHER SIBLE | POLICY OBJECTIVE IMPLEMENTING ACTION newwmaoom | BUDGETS | AGENCY t t | impact on projected energy use of alternative routes | Implement use by July 1 Preconstruction Manual and Environmental Project | No impact | | porpr | for new transportation links and traffic management Development Manual would be revised to included a | decisions shall be evaluated | procedure for energy analysis on State Funded Projects | (currently required on Federal projects), | 1 1 ( ) Indicates budget estimate tor planning purposes to complete action. but not included in Governor's FY 87 Budget Request Otner Budget — Federal or program receipt funds. 14 OTHER POLICIES Vv r « Thirteen of twenty-nine policies developed were not singled out for action this year, but were put on hold for future consideration. Those policies are shown in Table 11. These policies will be reviewed and analyzed next year for their applicability to reflect changing condi- tions. New policies will be added as appropriate. Table 11 — Alaskan Energy Policies to be Implemented at a Later Date DATE FOR RESPONSIBLE ISSUE AREA POLICY IMPLEMENTATION AGENCY | Planning Supplement the present Natural Disaster/War Plan with an emergency plan that would allow continued economic FY 88 APA stability or growth despite fuel reductions of 10 to 25 percent OCRA | Major Projects Assist private interests seeking to construct a means of natural gas transport to the Railbelt area from the North Slope. FY 88 APA | Seek exemption trom FERC licensing requirements under the 1920 Federal Power Act for projects located on State FY 88 APA | lands and waterways, which do not create serious environmental or cultural impacts on the surrounding area. | Require long-term contracts for sale of power and natural resources prior to the expenditure of State money to design. FY 89 APA | construct, or operate major energy projects. OMB | Energy Conservation Educate consumers on the benefits of energy conservation to reduce overall consumption of energy per capita in Alaska FY 87 OCRA Encourage the use of carpools, vanpools. and other mass transit public transportation systems in Alaska’s larger FY 68 DOTPF | population centers. Utilize funding where appropriate to support [ne implementation of fuel saving devices in Alaska. FY 69 APA OCRA | Alternate energy research and development efforts will be directed to residential and commercial applications that FY 69 APA | reduce the State's reliance on fossil fuels and provide reliable. secure, long-term power. OCRA | Transportation Seek to reduce marine transportation expenses and improve deliveries to marine ports through port development FY 88 OOTPF | programs Increase the quality of transportation fuel use reporting FY 88 DOTPF Establish “minimum level of service” criteria for road. rail, marine, and air transportation into @ long-range plan for FY 89 DoTPF Capital invesiments in refineries. roads. railroads. airports, and marine supply systems. Fossil Fuels Seek exemptions from federal law that restricts or curtails the marketing of North Slope Alaska fossil fuels on the FY 88 ONR international market ome Alaska will pursue ways 10 provide economical and consistent fuel supplying for heating and transportation uses. FY 88 OCRA 15 (Thousends) 400 350 300 250 3 Numbers ( Thousionds) Forecasts ENERGY FORECASTS Alaska’s future energy picture has been projected using various forecast models and studies, all having their own set of assumptions. These projections have been used to determine the economic feasibility of major energy projects. The 1983 Long-Term Energy Plan used the A.D. Little econometric model. The 1984 Energy Plan utilized the ADL model with considerations of the DELPHI study when discussing Alaska’s development through the year 2000 to derive an estimate of parameters that may drive Alaska’s future energy picture. The 1985 Energy Plan gave a very generic summary of combined modeling con- clusions. The 1986 plan does not select one particular model or source of information as best portray- ing Alaska’s energy future, but uses these collectively to provide a glimpse of how Alaska may develop. Forecasts of Alaska’s energy, transportation and thermal needs have been produced from a variety of sources and provides some basis for long range energy planning. Statewide Alaska’s population and economic expansion statewide plays a significant role in determining in-State energy dynamics in the years to come. Alaska’s population statewide is anticipated to increase by 1.0 percent per year (APA forecast) through the year 2000. Figures 1a and 1b show how that increase will look compared to historical growth, and how that increase will be dispersed statewide. Oil and gas consumption is expected to continually increase through the year 2000. DNR forecasts show a 2.0 percent annual increase for oil consumption, and a 1.7 percent annual increase for natural gas. Figures 2a and 2b illustrate the increases graphically. Electrical Energy consumption statewide is forecasted to increase by about 1.5 to 4% annually for the Railbelt and Southeast regions through the year 2000. Rural Alaska is expected to increase at a slightly higher rate. These estimates are based on the latest APA and Railbelt studies for the Susitna Project and somewhat outdated projections by ASCC for Southeast and Rural Alaska (Figure 3) Figure 1 — State Population —Historic and Forecast Through 2000 1a 1b 1970 & 1980-1984(DOL) ey nos a ray lon 1961 to 2000 A Y Wl SS Y Z y KS SXSs N N 1970 1980 1981 1982 1983 1984 Yeors ZZ Rolidert (TY Soutnecst Rural 16 9 (ONR) Projected Oil Demand In Alaska Oil Figure 2 — State Thermal Forecast Through 2000 2a — Projected Oil Demand By Use cededlletleat IEE KG * RG MAMMMWWOAY) 7 SEONG Ej Kdececcccéeesz } SSSI Khas MMS HAVO oOo%ougy * ihe ag aT eee lls IWIN * fg ella’ RIRIKRKROSSSKSRIRASS ewer ere eee W..G. GF ZW CLZILL LL $ ESSREEEEESS RT? 8 2 (00 LL het E KXAN = By Region, 1985 To 199! Aleske, 1985 To 1999 (ONR) eaten eee e- GCeeGCaeKGKG oO OG Projected Demand For Natural Gas 2b — Natural Gas SS SSS Ll 1985 — 1999 (DNR) Aiceka, 1985 To 1889 (ONR) Projected Demand For Natural Gas “N@@Qnentnn--agneonenn-o SN Kee Ke Kee-- GodgcoodsoG 17 18 Forecasts Railbelt Alaska’s Railbelt encompasses that populated area along the Alaskan Railroad, from the Kenai Penin- sula on the south to Fairbanks in the north. Approximately 70 percent of Alaska’s population lives within this geographic area. Railbelt population estimates have grown by 1.5 percent to 3.5 percent annually since 1970, with a similar level of economic growth. The APA forecast predicts an annual population increase of 1.1 percent and total employment of 1.2 percent. The 1983 ADL forecast during the same period predicts a 2.2 percent and a 3.3 percent in- crease, respectively. Electrical power forecasts vary between 1.5 percent and 3.8% increase annually for the 1985-1998 period. The APA forecast is more conservative at 1.5% annual increase in peak demand while the Railbelt utilities estimate a 3.8% annual increase for the 1985-1998 period. ADL forecasts an increase more in line with APA estimates. These estimates are well below the actual peak demand growth rate of 9.6% annually for the 1965-1984 period. Estimates by APA and the Railbelt utilities for growth in net generation range from 3441-3691 GWH in 1985 to 4473-5606 GWH in 1998. DNR has prepared oil consumption forecasts through the year 1999. Annual changes have been predicted for oil, increasing by 2.5 percent for transportation fuel, less than 1.0 percent for space heating, and decreasing by over 35.0 percent for use by utilities for electrical generation, and unchanged for industrial consumption (industrial consumption is 61 percent of total gas consumption in 1985, but will drop to 53 percent by 1999). Natural gas consumption and production have also been given attention in DNR and APA forecasts. DNR projects an annual consumption growth rate of 1.5 percent through 1999. Space heating usage will increase by 3.9 percent annually, utility use by 1.4 percent, and industrial use by 1.2 percent. On the availability side, APA predicts consumption during the period 1985-2000 to be 3.5 TCF, compared to DNR’s estimated 3.6 TCF. APA estimates show a high estimate of proven and undiscovered natural gas reserves to be a total of 4.4 TCF. Meeting the power needs of Railbelt Alaska will be accomplished by a combination of projects. The Bradley Lake hydroelectric project will be on-line by 1990 and studies still continue on the develop- ment of the Susitna hydroelectric project. Alternatives for power generation other than hydroelectric are being evaluated, but which project or group of projects develop to meet the Railbelt’s increasing demand is as yet unsettled. Figure 3 — State Electrical — Use and Forecast, 1981-2000 LA ELITE Coneumption (GWH) Wh Rural For purposes of this report, rural Alaska encompasses all other areas of Alaska that do not fall directly in the Railbelt or Southeast sections described earlier. Although termed rural, there are major Alaskan communities included, from Cordova-Valdez in the east, to Kodiak in the south, Bethel, Dillingham- Kotzebue-Nome in the west, and Barrow in the north. Rural Alaskan population has increased from 61,900 in 1981 to 81,100 in 1983 (ASER, 1984), an annual increase of just 2.6 percent, while there was a decrease in proportion of rural to non-rural population from 19 percent to 15 percent during those years. Electric power forecasts are from studies completed in the early 1980’s. The ASCC combined utility low forecast for rural Alaskan net generation indicates that the 8.5 percent annual increase from 194.6 MWh in 1975 to 359.5 MWh in 1985 will slow moderately to a 4.9 percent annual increase through 2000, when total net generation should approximate 622 MWh annually. By 2000, estimated net generation for rural Alaska will increase 41 percent in AVEC communities, Kodiak and Cordova-Valdez. Fuel consumption estimates for non-Railbelt communities have been prepared by DNR, but for these discussions are difficult to use since both rural and Southeast sectors are combined. Nonetheless, a look at forecasts for transportation and thermal fuels is enlightening and applicable to this discussion of rural projected demand. Non-Railbelt use of oil and gas are expected to continue to be important, but changes to consumption are somewhat surprising. 1985 consumption of gasoline and diesel fuel for transportation use was 203 million gallons, decreasing to 196 million gallons in 1999. Not surprisingly, thermal fuels are expected to increase by 3.5 percent annually from 103 million gallons in 1985 to 154 million gallons in 1999. DNR forecasts break out a rural component for fuel use by utilities, and shows a continuing dependence on diesel generation, increasing 3.7 percent annually from 18 million gallons in 1985 to 27 million gallons in 1999. The use of natural gas is expected to double from 100,000 to 200,000 MCF for thermal use and from 500,000 to 800,000 MCF for utility generation of electricity. Moderate changes to this prognosis are in the offering. The Red Dog lead/zinc mine proposed for north- west Alaska, and potential development of Cape Beaufort coal projects, offer potential opportunities to provide jobs, improve the region’s economy, and provide a long-term source of coal for thermal use in rural areas. Advances in the use of integrated alternative technologies may also reduce costs and improve lifestyles in rural Alaska. On the North Slope, continuing development of marginal oil fields nearshore, and new finds on Alaska’s far northern Outer Continental Shelf, will continue to bring wealth to the State, but given DNR predictions, the prospects for oil flow through TAPS will dwindle to near 100,000 barrels a day in 1999 compared to 1.7 million barrels a day in 1985. Potentially, development of a natural gas pipeline to either Fairbanks or Anchorage wil! help sagging revenues due to reduced crude oil production to be bolstered by increasing natural gas production. Finally, a major electrical need may come from the seafood processing industry in Western Alaska. As foreign fleets are replaced with shoreside processors of groundfish, salmon, and crab, greater needs for production of electricity may be needed. 19 Forecasts Southeast Combined utility electric power forecasts for Southeast Alaskan growth have been made in the past but, except for Juneau, are not current. Southeast includes those towns and communities from Yakutat at the northern terminus of Alaska’s panhandle to Ketchikan in the south. This area includes the State capital of Juneau. Juneau area load forecasts have been prepared by the federal Alaska Power Administration (APA) in cooperation with local utilities. In 1984, this provided the basis for Juneau's 20-year Power Supply Plan, which was completed in late 1984. The forecasts were updated by the federal APA in cooperation with local utilities, in April 1985. Southeast’s population has grown from 44,200 in 1971 to 64,600 in 1983, an increase of 3.8 percent annually. In Juneau alone, the increase was 6.5 percent. Electrical generation forecasts for Southeast have been prepared by the ASCC, Juneau’s Alaska Elec- tric Light and Power utility, and the federal APA. ASCC forecasts prepared in 1983 predicted a change in net generation from 563.3 GWH in 1984 (actual 1984 was 567.6 GWH) to 1100.5 GWH in 2000, an annual increase of over 6.0 percent. Juneau growth from the federal APA forecasts, estimated an increase from 227.4 GWH (actual 1984 was 248.5 GWH) to 439.5 GWH, from 1985 to 2000, an annual increase ranging from 2.0 percent (low forecast) to 3.9 percent (high forecast). Fuel consumption estimates are not available for Southeast Alaska at this time. To meet the predicted increasing need for electricity, several options are being explored or are underway. Underway is the construction. by the Corps of Engineers of the Crater Lake addition to the Snettisham hydroelectric project which provides service to Juneau. Proposed for Juneau, after completion of Crater Lake, is the Dorothy Lake project which would meet potential energy shortfalls in the 1990’s. Electrical interconnection of Southeast communities also remains a viable option. This is particularly true since the recent completion of the State projects at Tyee and Swan Lakes, and the addition of Crater Lake to the Snettisham project provides the power generation capability to support interconnection. A potential transmission line from the Yukon Territory in Canada, through Haines and Skagway, on into Juneau could intertie these communities to surplus Canadian Yukon power. A transmission line from British Columbia could bring power to the proposed Quartz Hill molybdenum mine near Ketchikan, and pro- vide the vital link that could link Canadian power to other Southeastern communities and projects. Other hydropower projects identified as feasible long-term options for some Southeast communities are: the Takatz project near Sitka, Lake Grace and Mahoney Lakes near Ketchikan, and West Creek near Haines/Skagway. State Revenues State revenue forecasts are largely comprised of petroleum revenue projections. Petroleum revenues peaked at 90 percent of total State revenues in FY 80, but since have shrunk slightly to 84 percent. In FY 85, petroleum revenues were $2.71 billion and nonpetroleum revenues $0.52 billion of the total revenue picture of $3.2 billion. By 1988, total unrestricted revenues are expected to decrease to $2.07 billion. By the year 2000, total revenue is expected to shrink to $1.42 billion, at which time it will largely be comprised of and sustained by nonpetroleum revenues. These forecasts act as a navigational aide, keeping the State on track with programs requested by Alaskans, but within the State’s ability to fund such programs. In FY 86, the funded operational and capital budget (including loan programs and supplementals) totaled $2.84 billion. The FY 86 revenue projection, at the conservative level, is $2.86 billion, or $20 million more than presently slated for spending. These numbers are just the beginning of future spending limitations that may confront Alaska, and within those restrictions the need to maximize the use of each dollar in the most efficient manner. Declines in petroleum revenues from reduced North Slope production after 1990 and decreasing world oil prices in the near future require fiscal restraint. With that in mind, it becomes obvious that Alaska needs programs that fit into reduced budgets today while preparing Alaska for the future. Future revenue projections demand it. 20 oy) a ,o c RECOMMENDATIONS Alaska’s Energy Plan—1986 defines what the State's major goals and policy directives should be in the coming year. The primary recommendations that result because of these are: ¢ Energy appropriations should be made to those projects and programs that provide energy at the lowest competitive cost to the consumer, increases system reliability, protects the scenic and cultural aspects of Alaska’s environment, and help build the State’s economy. ¢ Thermal security for all Alaskans can be accomplished through weatherization, conservation, use of Alaska’s indigenous resources, and the use of appropriate technology application. e Alaska’s resource base continues to provide primary economic advantage for the State both in revenue dollars generated and potential for use as an alternative to historical energy con- sumption and it is incumbent on the State to use those resources for the maximum, long- term security of its citizens. ¢ With decreased State revenues available for implementation of energy programs, the State should encourage private development through state incentives. Implementing actions and programmatic budgets have been presented in support of these major recom- mendations. It is incumbent upon the Legislature and the people of Alaska to carefully review the pro- posed energy goals, policies, objectives, and implementing actions, and through the public, political process decide what direction Alaska’s energy future should take. As these recommendations are scrutinized, and supporting documentation evaluated, it should be remembered that Alaska’s Energy Plan—1986 presents the State energy picture in a transition year bet- ween understanding where we have been, as shown in 1985, to showing where we are going in 1986 and beyond. Alaska’s Energy Plan—1986 sets the stage for the important, long-range policy changes that will help direct the State's future energy activities. Only through the public legislative process can those recommendations be fulfilled. 21 PART Il — ENERGY REPORT Oil and Gas RESOURCES Alaska has an abundant supply of nonrenewable and renewable resources. Alaska's primary resources are oil, natural gas, coal, and water for hydroelectric power. In addition, renewable resources include wind, solar, tidal and biomass, as well as peat and geothermal. (There has also been increasing discus- sion on the use of nuclear energy, which is prohibited under present State law.) Alaska relies on these resources as a source of thermal, transportation, and electrical energy, and for use as a valuable ex- port product bolstering the State’s economy. Oil and Natural Gas Oil and natural gas are Alaska’s primary energy resources. Total petroleum production in Alaska since the turn of the century has been over 4.9 billion barrels of oil, and over 9.1 trillion cubic feet (TCF) of natural gas with estimated reserves of 9.1 billion barrels of oil and 39.4 trillion cubic feet of natural gas. Of the natural gas production, over 5.5 TCF were reinjected and 3.0 TCF were either sold, flared, or consumed in field operations. Oil production from Alaska in 1984 was 630 million barrels. More than 95 percent of this oil was produced from the Prudhoe Bay and Kuparuk River Fields on the North Slope of Alaska. The remainder of the oil was produced in the Cook Inlet region, south of Anchorage. Oil and Natural Gas Resource locations are shown in Figure 4. Oil and gas production has been utilized in-State as refined petroleum products and for export out-of- State to refineries in the “Lower 48.” Crude oil production in Alaska was 26.3 million gallons. Of that amount, 25.2 million gallons was ex- ported to Washington and California receiving ports, and 1.1 million gallons was used in-State. Alaska’s consumption of refined petroleum products reached 1.4 million gallons in 1984. That demand was met by five in-State refineries and by transporting refined petroleum products into Alaska from the “Lower 48.” At the present time, federal policy and regulations prohibit the export of crude oil, and North Slope crude oil was specifically prohibited by Congress in the Trans-Alaska Pipeline Authorization Act as amended by the Export Administration Act. In October 1985, prohibition on the export of Cook Inlet crude oil was lifted up to a maximum 6,000 barrels per day. The State is presently negotiating the sale of this crude oil, most likely to a Pacific Rim nation like Japan. Natural gas production in Alaska was 1,212.7 billion cubic feet in 1984, but approximately 75 percent of this gas was reinjected due to the absence of a gas transportation system from the North Slope. Domestic use of natural gas in 1984 was 303.1 billion cubic feet of which 116.1 billion cubic feet left the State in the form of liquefied natural gas (LNG) and ammonia/urea fertilizer, and another 909.6 BCF was reinjected. Natural gas consumed in export operations comes from production at one of the two natural gas processing plants in the Cook Inlet region. Oil, natural gas and hydroelectric resources are used in the production of electricity. Figures 5 and 6 show the net generation and installed capacity for electrical generation from these resources by utilities. 22 UNITED STATES DEPARTMENT OF THE INTERIOR MINERALS MANAGEMENT SERVICE (! DRAFT PROPOSED PROGRAM DEIS JAN. 1986 1986 OFFERINGS 92 N. ALEUTIAN BASIN 100 NORTON BASIN 89 ST. GEORGE BASIN ~ 1988 OFFERINGS 86 SHUMAGIN GULF OF ALASKA 107 NAVARIN BASIN 97 BEAUFORT SEA 108 CHUKCHI SEA 1989 OFFERINGS 101 ST. GEORGE BASIN N. ALEUTIAN BASIN NORTON BASIN 1990 OFFERINGS NAVARIN BASIN BEAUFORT SEA CHUKCHI SEA BUREAU OF LAND MANAGEMENT OFFERINGS [ | STEESEWHITE MOUNTAIN 1986-87 CENTRAL YUKON 1987-88 VENETIE 1068-80 es) / / 1987 OFFERINGS ™< < KAY BROWN, DIRECTOR DIV. OiL & GAS Compiled by O.D. SMITH, CARTOGRAPHER NATURAL RESOURCES BR ses S62 SRRE SBsr ALASKA DEPARTMENT OF DIVISION OF OIL & GAS 1986 SALES | _} KUPARUK UPLANDS FEBRUARY MIKKELSEN FEBRUARY COOK INLET MAY ” BEAUFORT‘: « SEPTEMBER NECHELIK St-TEMBER 1987 SALES PRUDHOE BAY UPLANDS JANUARY CAMDEN BAY MAY ICY CAPE SEPTEMBER HOLITNA BASIN SEPTEMBER WBBSALES! | 1989 SALES [ —] NORTH SLOPE FOOTHILLS JANUARY HOPE BASIN MAY OFFSHORE ICY CAPE SEPTEMBER 1990 SALES [1] COOK INLET JANUARY POINT FRANKLIN MAY SCALE 1:10,100,000 &e Figure 4 — Location of Oil Provinces in Alaska Oil and Gas qa EE EE Total transportation sector use totalled 1.1 billion gallons, utilized 8.5 percent by marine, 57.1 percent by autos, trucks, and off-road vehicles, and 34.4 percent by domestic and international aircraft. (Figure 7) Alaska’s transportation sector uses almost one-half of the total fossil fuel consumed in the State annually. Figure 5 — Net Generation of Electricity in Alaska, 1980-1984 1964 1960 - 1964 Southwest (1.9%) Yukon (13.73%) Southeast (1 3.7%) 41 a Arctic/NW (2.4%) 38 ve 3.6 Wlowatt: (Biitions) 3.5 34 3.3 3.2 31 1980 1981 1982 1983 1984 Southcentra! (68.2%) Figure 6 — Installed Capacity by Region and Generation Source — 1984 Statewide — 1984 1984 Southwest (2.5%) HYDRO (13.9%) Southeast (17.0%) Yukon (18.8%) OIESEL (17.2%) = Aretic/NW (2.7%) GAS (59.0%) i STEAM (9.8%) 1.6 i) 1.4 ws 1.2 wt 1984 Southcentral (59.0%) 09 os 0.7 0.6 os 0.4 Os 0.2 Ot Capacity (Gw ) DSSS) ESSSSSSSSSS) VL bn RSS SSS Z2se (LY Se.Centre: Wa wernw SSN Yukon xy sw 24 Figure 7 — Transportation Consumption of Petroleum by Use — 1982-1984 Alaskan Transportation Fuel Consumed 1962 — 1984 Galions (Millions) Coal COAL Alaska's coal resources are plentiful and widespread, providing long term development potential for export and in-State use. Coal deposits range from Cook Inlet to the North Slope and offer a vast exploitable resource (Figure 8). Alaska’s measured coal reserves are approximate 6.3 billion short tons (one short ton equals 2,000 pounds) with additional hypothetical reserves of 5.6 billion short tons. These reserves are estimated to account for up to half of the total U.S. coal reserves. Despite this potential only one coal mine was active in 1985. This was the Usibelli Coal Mine which produced about 850,000 tons of subbituminous coal from a dragline-strip-mine operation in the Nenana coal field. However, several potential developments are being studied. The Usibelli Coal Mine, the only major coal mine in Alaska, produced 850,000 short tons of coal in 1984 from the Nenana field. Of this amount, about 160,000 short tons were used to fire the Golden Valley Electric Association plant in Healy, and the remaining 650,000 short tons were hauled on the Alaskan railroad to the Fairbanks area for use at the University of Alaska, the Fairbanks Municipal Utility System, and at Ft. Wainwright and Eielson military stations. The Usibelli mine also used coal and cogeneration to provide additional power locally. There were 20,000 short tons used by Usibelli in this fashion, and another 20,000 short tons were sold directly for residential heating. Total coal drilling footage in 1984 was 25,700 feet. Three projects had drilling programs: the Valley Coal project in the Wishbone Hill area of the Matanuska Valley; the Bering River coal project on Chugach Alaska Corporation land near Cordova; and a State-funded project at Cape Beaufort in northwest Alaska. 25 Coal Figure 8 — Alaska’s Known Coal and Peat Resources Arctic Ocean Barrow Explanation Chukchi Sea Cape Beaufort Potential for fuel-grade peat deposits “Low WA High Point Hope ad st Lees Island Bering Sea KS y Ded Gulf of Alaska 3 Q Q Explanation Bristol Bay Herendeen Bay J 4&3 7 oS Gawke © Coal exploration in 1963 a no Se, Atka Island °° SOP ns «@ Coal Field Unalaska Island Hydroelectric HYDROELECTRIC POWER Hydropower is one of Alaska’s greatest renewable resources, and existing sites are located throughout Southeast, Southcentral, and Southwest Alaska. (Figure 9) Hydropower is the basis for productive, long- term economic development, and, in Alaska, can offer a long-term, low-cost source of electrical power. Total installed capacity for hydroelectric facilities in Alaska was 223.0 MW in 1984 and total net generation from hydroelectric facilities was 729.5 GWh. In addition, there are a number of privately owned small scale hydroelectric projects. On a larger scale, the Alaska Power Authority (APA) continued to investigate the feasibility of other potential hydroelectric sites. Two of the sites, Susitna River and Bradley Lake, have advanced the furthest. 26 2 Figure 9 — Alaska’s Known Hydroelectric Resources and Major Transmission Lines Arctic Ocean Barrow eo Existing Transmission Syster’ Cuoper Lake Betne! <s Homer Bering Sea Green Lake Guilt of Alaska ‘ IG Terror Lake Bristol Bay eo? tw e as ° a) SS om Fo. I e Pp Alternatives ALTERNATIVE RESOURCES Alternative energy sources utilize technologies that use renewable sources of energy and tend to be most suitable for energy demands that are relatively small and dispersed. Alaska is considered to have good potential for the introduction of alternative energy technologies because of the high fossil fuel costs encountered throughout most of the State. Wind power, suitable for generation of energy in the form of electricity, heat or mechanical power, occurs most favorably in Alaskan coastal areas and mountain passes. Wind speeds and air density tend to increase in the winter months when most communities experience their peak electrical and heating demand. Applications of solar technology in Alaska range from the simplest form of passive solar heating to the more technologically advanced use of photovotaics for the production of electricity. Solar energy has good potential for use as an additional source of energy in Alaska. Varying levels of daylight ex- perienced in Alaska through the seasons actually permits 230 hours more sunlight in Alaska than at the equator each year. Solar energy production has the advantage of being clean, safe, and could ac- tually become cheaper with time as technology advances are made. Drawbacks of solar include being out of phase with peak heating requirements and lack of full time reliability due to storms or changing seasonal lighting conditions. These drawbacks are less important if solar is used as part of an integrated energy management system. Although the actual experience with solar energy in Alaska is limited, solar can be a valuable energy resource. 97 Alternatives Figure 10 — Alaska Known Geothermal Resources Arctic Ocean Barrow Chukchi Sea St. Lawrence island Bering Sea chixan 7 . Gulf of Alaska Kodiak Potential for geothermal resources * Geothermal Site Dark — Moderate to high temperature (more than 150 C —S generation and cascaded direct use. !ocated .n area active voicanic systems ~ S e Bz Light Low to moderate temperature (less than 150: Aina tstand °° 2 apacethestiighs Unalaska Island an Alaska also has good potential for geothermal resources (Figure 9). Over 100 surface manifestations include hot springs, fumaroles, mud pots, and wells have been identified. Over 11 million acres in the State have significant geologic evidence for geothermal energy development. Geothermal exploratory drilling has been conducted in several western Alaska sites. Biomass wood wastes comprise a potentially significant energy resource. These wastes include unusable portions of the tree, such as bark, small limbs, chips and roots; waste from logging and milling opera- tions and wood from land clearing for agriculture. Rotting, diseased or burn-killed wood and driftwood also add to the State's biomass resource base. Use of municipal solid waste (garbage) and organic waste such as sewage, provide another potential biomass resource that can be used locally. Several MSW projects are functioning in Anchorage, Juneau and Sitka, and others are planned. Alaska’s peat resource with fuel grade potential cover 4.4 million acres. These peat deposits could yield approximately 880 million tons of moisture free, fuel grade peat. The principal tidal resource in Alaska is found in the Cook Inlet area which has the second highest tides in the world. Tidal power options have also been evaluated in Southeast Alaska. High costs associated with development of this resource makes it infeasible, at this time. 28 STATE ENERGY PROGRAMS The State of Alaska continues to give high priority to domestic and export energy issues. Virtually every State agency has some direct or indirect involvement in energy. (Table 12) Several departments have direct responsibility for implementing energy projects or programs. The involvement of the State agencies tends to based on perrpheral concerns, such as environmental permitting. State agencies with direct responsibility for energy programs are: Department of Commerce and Economic Development (DCED) e Alaska Power Authority (APA)—Planning and development of district heating and electrical systems, large scale power projects, Power Cost Equalization Program Administration. e¢ Alaska Public Utilities Commission (APUC)—Regulation of electric and gas utilities and pipeline carriers. * Division of Investments—Energy Loan programs. ¢ Office of Minerals Development—Assists in developing contacts and encouraging mineral development in-State. ¢ Oil and Gas Conservation Commission—Regulates oil and gas production. Department of Community and Regional Affairs (DCRA) * Division of Community Development (DCD)—Weatherization programs, public information efforts, community planning, energy education. e Municipal and Regional Assistance Division (MARAD)—Community grant and bulk fuel loan administration. Department of Health and Social Services (DHSS) ¢ Division of Public Assistance—Low Income Housing Energy Assistance Program. (LIHEAP) Department of Natural Resources (DNR) ¢ Division of Geological and Geophysical Surveys—Investigates oil, gas, coal and geothermal resources. ¢ — Division of Oil and Gas—Manages oil, gas and geothermal leasing programs, royalty oil sales, and issues permits for exploration and development plans. ¢ Division of Mining—Manages coal leasing programs. Department of Transportation and Public Facilities (DOTPF) e Research Section—Energy conservation in public facilities. Department of Administration (DOA) ¢ Direct grants administration of legislative appropriations to unincorporated communities. 29 Energy Programs 10. tit: 30 University of Alaska (UA) e Energy Extension Service—Provide information on energy conservation and conduct alter- native technology research. e Institute of Water Resources—Energy education and research. ¢ Geophysical Institute— Mineral exploration. Department of Revenue (DOR) e Research Section—State revenue forecasting. Department of Military and Veterans Affairs (DMVA) ¢ Division of Emergency Services—Civil defense and natural disaster emergency planning. Office of the Governor(GOV) ¢ Office of Management and Budget (OMB)—State budgeting. Department of Education (DOE) e Elementary, high school and post-secondary education. Functional Area Energy Conservation Conservation Education Energy Grants Institutional Conservation Largescale Electrification Rural Electric Loans Rural Technical Assistance Smallscale Electrification Thermal and Light Standards Waste Heat Weatherization Energy Support and Efficiency Power Cost Equalization LIHEAP Audit Grants Bulk Storage Grants Legislative Grants 31 Energy Programs (Continued) Functional Area | Loans Bulk Fuel Loans Residential Weatherization Loans Alternative Technology Loans Power Development Loans Rural Electrification Loans | Utility Regulation | Resource Extraction Royalty Program Oil and Gas Leasing Coal Leasing Geothermal Leasing Resource Marketing Research 32 Energy Programs NON-STATE/FEDERAL ENERGY PROGRAMS There are significant energy activities taking place across Alaska that are carried out by utilities, local energy groups, private nonprofit entities, municipalities, and private individuals. These groups are coor- dinating programs that promote energy awareness and conservation, or promote innovative uses of appropriate technologies. Some of these are outlined below: ¢ Chugach Electric Association Energy Audit Programs End Use Survey/Flood Management Project CARES Program Joint Utility Team Community Energy Management Plan Information Distribution School and Public Programs ¢ Municipality of Anchorage Weatherization Home Mortgage Valuation Program e Juneau Energy Committee Energy Supply and Demand Planning Building Design and Building Code Electric Rate Restructuring Ridesharing Energy Education Recycling Energy Conservation and Education Workshops e Alaska Electric Light & Power Company Television series on energy conservation Load Management Program Experimental Rates ¢ Tanana Chiefs Conference Community Passive Freezer Program Electrification Projects Bulk Fuel Facilities Space Heating Unit Upgrade Program Supervision of Weatherization Program ¢ RurAL CAP Assistance in housing, thermal security, and electrical generation. Provide economic development climate for all rural Alaskans. ¢ Fairbanks Chamber of Commerce Energy Committee Active in promoting: Borough-wide economic development policy, and Railbelt energy policies. 33 Energy Programs ¢ Resource Development Council Actively promotes energy issues that promote economic development. ¢ Commonwealth North Active on energy issues and promulgating Alaska’s energy future. Study underway entitled “Energy Policy for Alaska.” 34