For Alaska politicians, renewable energy use is about the economy, not the environment

During his third convening of the annual Renewable Energy Conference, Gov. Mike Dunleavy touted the economic – rather than environmental – considerations of promoting the state’s green energy potential.

Dunleavy, a Republican, on Wednesday called legislation passed by Alaska lawmakers earlier this month “historic,” referring to a bill allowing the state to develop carbon sequestration regulations and a bill to create a unified transmission organization along the rail right-of-way that could facilitate integration renewable energy projects, and third, facilitating lending for new renewable energy projects.

Taken together, the legislation, which also exempts new renewable energy projects from property taxes, could transform Alaska from a state dependent on fossil fuel production to one that is moving increasingly toward renewable energy and carbon neutrality.

But the governor and lawmakers who spoke about the legislation at the Anchorage conference did not address climate change — which is fueled by greenhouse gas emissions. Rather, they talked about carbon sequestration and renewable energy opportunities as ways to lower Alaskans’ energy bills and attract additional investment into the state — including from carbon emitters like oil and gas companies.

“We need to make sure that our industry and our oil base can remain competitive,” said Sen. Bert Stedman, a Sitka Republican who joined Dunleavy on stage at the conference to talk about the legislation passed earlier this month.

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As Alaska oil producers “try to sell their oil, buyers are now looking at the carbon footprint,” Stedman added. “We want to make sure our partners in Prudhoe Bay and all other oilfields are competitive in this market, otherwise we will be penalized with tougher sales results and possibly lower prices.”

For the past three years, Dunleavy has convened an annual renewable energy conference. He used the platform to tout his efforts to promote carbon offsetting – keeping trees standing on state lands to raise revenue from companies looking to reduce their carbon footprint – and carbon sequestration – injecting carbon dioxide deep underground – to encourage investment in Alaska, even as some oil and gas companies increasingly avoid new investments in the Arctic.

The state has not yet started selling carbon offset credits, and carbon sequestration legislation has not been forwarded to the governor for his signature. But Dunleavy said Wednesday that Alaska’s carbon storage capacity “is absolutely significant.”

Twenty-four states have adopted greenhouse gas reduction goals. Alaska is not one of them, and at the conference Dunleavy reiterated that he has no intention of developing such a goal.

In a speech to conference participants on Tuesday, Dunleavy said he was “agnostic about the electron.”

“In the energy space, many people are focused on reducing or eliminating carbon emissions. My focus is on providing Alaskans with the cheapest electricity possible so that we can afford to live here and afford industrial development. I really think that in this process we will minimize carbon emissions through carbon capture, carbon offsets and technology in the future,” Dunleavy said.

“We can’t afford to keep choosing which energy sources we use,” Dunleavy said. “We need all of this, and we need it ASAP.”

Dunleavy’s views are consistent with those of Republicans across the country, according to a recent survey by the Pew Research Center, which found that few Republicans see climate change as a top priority for the country, but many support some proposals to combat climate change – including the development of carbon dioxide capture technologies.

The governor was joined at the conference by a bipartisan group of 15 lawmakers, all of whom had recently supported the energy bills Dunleavy celebrated. Despite disagreements with lawmakers early in the session, Dunleavy adopted a solemn tone when talking about the Legislature.

“The work they have done this year and the work they will do in the coming years will completely turn this around,” he said. “I think what happened this year bodes well for next year, the year after that, in terms of our ability to work together to pass some important bills in our House and Senate.”

Rep. Will Stapp, a Republican from Fairbanks, said he is skeptical of some of the carbon policies Dunleavy supports, including sequestration and offsets, but said the legislation created a framework for moving “in a positive direction.”

“What does that look like? To me, it looks like being able to move the cheapest electron up and down the Railbelt, regardless of where it comes from or how it’s generated, to the consumer at the lowest possible price.”

House Minority Leader Calvin Schrage, an independent member of parliament for Anchorage, said in an interview that climate change is “one of the major issues facing our generation,” but talking about renewable energy in terms of economic benefits was intended to “meet people where are found.”

“It’s hard to worry about the climate when you can’t afford to buy groceries, heat your home or anything else energy-related,” Schrage said. Alaskans “feel more about energy costs than the effects of climate change.”

“We need to operate in a cleaner and more renewable way, but we also need to meet our energy needs today, and that will require oil and gas. It doesn’t have to be one or the other,” he said.

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