late summer energy updates
Hello friends! This month’s energy newsletter is legislation heavy. We have updates about some state legislation that could be very beneficial for clean energy in Alaska - the Renewable Portfolio Standard (RPS), which would mandate renewable energy generation at the utility scale, and legislation to close the “S-Corp loophole,” which would mean actually taxing large oil and gas corporations.
We also talk about what the passage of the Big Garbage Budget Bill would mean for those pieces of legislation.
Next, we dive deeper into the budget bill and look at the double standard for energy subsidies that undergirds it, as it ends tax credits for renewables and gives away yet more tax dollars to oil & gas companies that are continuing to make record-setting profits.
In that story, we talk about the myth of the free market in comparisons of different kinds of energy, and end with an urgent call to action to protect the renewable energy funding our community has already secured.
Last, we have some info about drilling proposals in the Yukon Flats, and some further ways to get involved with renewable energy issues in the Interior!
This legislative session had many energy-related bills, but we were most interested in the Renewable Portfolio Standard (HB 153/ SB 149) and the S-Corp "loophole" (SB 92).
Unfortunately for the Renewable Portfolio Standard, neither the House bill nor the Senate bill made it out of their committees before the session ended, and we were not able to hear feedback from utilities. The main concern posed by legislators was fines being passed along to ratepayers - however, this perspective fails to account for the long-term costs associated with increasingly expensive and volatile fossil fuels that will be borne by ratepayers.
For more information on the Renewable Portfolio Standard, click here. For more information on the proposed fines, check out the Alaska Energy Blog's post.
The S-Corp "loophole" received a lot of attention and public comment. After 5 hearings in committee and 5 additional hearings in the Finance committee, this bill was referred to the Rules committee but was never heard. We anticipate hearing more on this bill next session. For more information on the S-Corp "loophole," click here.
With the recent passage of the Big Bad Budget Bill, these pieces of state legislation become more important than ever. This bill will end the tax credit program for renewables which has been driving a lot of the interest in new renewable development across Alaska. Without that incentive, it becomes more important to pass legislation like a Renewable Portfolio Standard with strong mandates for renewable generation.
The State could also add new revenue sources by passing legislation to close the S-Corp loophole and tax large oil and gas corporations, thereby creating potential funding sources for state investment in renewable energy.
Keep an eye out for these two pieces of legislation as they come up again in 2026!
With the passage of the Big Bad Budget Bill, the Trump Administration and congressional Republicans have stripped away the tax credits for renewable energy made possible under the Inflation Reduction Act. But the budget bill doesn’t just cut tax credits for renewables. It also adds billions of dollars in new subsidies for the fossil fuel industry, under the lie of “cutting wasteful spending” (all while adding $3.4 trillion to the national debt).
In this piece, we look at the lie that is used to sell this kind of policy - the myth of fossil fuels competing in a free market with no government influence, and the idea that renewables should do the same - when in reality, there is a two-way money pipeline between the fossil fuel industry and the politicians subsidizing this industry.
We end with an urgent call to action, asking people to contact their GVEA board member and US Senators to push them to work as fast as possible to sign power purchase agreements with the two wind projects on the table, in order to not lose the millions in funding opportunities provided through the IRA, which will otherwise get clawed back next year due to the new budget bill.
Since the energy world is made up of a soup of acronyms, we like to offer an alphabet explainer in each issue in order to demystify the language of Alaskan energy!
RPS - A Renewable Portfolio Standard would require electric utilities to generate a specified percentage of their electricity from renewable resources according to a specific timeline.
S-Corp - S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Alaska’s tax code includes a loophole that allows S corporations to avoid corporate income taxes entirely.
New solar farm in Galena
Sustainable Energy for Galena Alaska, or SEGA, has nearly completed a 1.5 MW solar farm to "reduce its reliance on expensive, imported diesel" and "protect residents from blackouts during extreme weather." Galena already has the state's first (and most rural!) large biomass plant providing heat for the school. These projects show the enormous benefits renewable can bring to our communities: resilience, cost savings, and job creation.
Protect the Yukon Flats
An oil exploration project in the Yukon Flats has been proposed to BLM, about which very little is known at this point. For this most recent proposal, the comment period has closed, but stay tuned for further opportunities to take action.
For some further perspective on this issue, you can read Edward Alexander's 2021 letter to the Doyon board about drilling in the Yukon Flats here, Tanana Chiefs Conference's standing resolution against oil development in the Yukon Flats region here, a community perspective from Chief Rhonda Pitka of Beaver, Chief David Kriska of Stevens Village, and Second Chief Michael Peter of Gwichyaa Zhee here, and FCAC's comment here.
Tell GVEA to move faster on wind
The GVEA board of directors have decided not to sign a preliminary agreement for Shovel Creek, a major Interior wind project, which could spell out millions in lost federal funding opportunities, given the newly imposed timelines from Republicans' recently passed budget bill.
We are calling on our community to ask the board to move more quickly to sign agreements with Shovel Creek and Delta Wind in order to not lose out on this once in a lifetime renewable funding opportunity.
Let your voice be heard!
If you are a member of Golden Valley Electric Association, there is an important opportunity to provide feedback to the National Rural Electric Cooperative Association before Tuesday, August 5th.
Check your email inbox for the link from MarketResearch@nreca.coop
Get involved in your local electric co-op at one of the most critical times in history!
The GVEA board’s District 3 seat is up next year, and we’re looking for people in this district who are interested in running. District 3 includes the Riverview/Westgate area, Dale Rd area, South Fairbanks, most of Chena Pump on the river side, the Van Horn area, and a good portion of Badger Road. Check out the map here. If you know someone in this district who you think might make a good candidate, let us know! Email lee@fbxclimateaction.org with candidate ideas, or if you want more information on running yourself!
Become a Member of FCAC!
By signing up for membership, you become part of the climate justice movement in creating a sustainable and equitable future for Alaska. As a member, you can join others and contribute to our coalition projects and campaigns while getting exclusive resources and engaging in opportunities for climate action, community gatherings, organizing training, and leadership development.
