Fairbanks North Star Borough mayor mulls state of emergency in energy crisis
Published Thursday, May 1, 2008
Mayor Jim Whitaker will ask the Fairbanks North Star Borough Assembly to declare a state of emergency at its May 8 meeting.
He announced the news to about 150 people Wednesday night at the Carlson Center for the Town Hall Meeting held by Steve Haagenson, executive director of the Alaska Energy Authority.
The purpose of the Town Hall Meeting was to figure out what resources are available specifically in Alaska and how Alaska can regain its self-sufficiency when it comes to energy.
Whitaker spoke on behalf of Haagenson’s efforts.
“Our state has the ability to be independent. No other state has a budget surplus and the resources like we do,” Whitaker said.
The declaration would give the borough authority to accept funding from the Alaskan Housing Finance Corp. in an expedited process by suspending rules that would normally slow such a process.
The $300 million surplus was put into weatherization and energy efficiency programs run by the AHFC. The money is from a budget bill Gov. Sarah Palin signed into law last March.
The program provides free home weatherization services for low-income Alaskans. The income limit was set at 60 percent of the federal poverty level, but a bill moving through the Legislature, SB 289, would move it up to 100 percent.
“We are the single largest community in the state in need of declaring an energy crisis,” Whitaker said.
Haagenson is asking 25 different communities about how the energy crisis is affecting them.
He’s asking two questions:
“My first question for everyone is what do you know about local energy resources and which could be developed to help lower costs?” he said.
He also wanted to know which resources locals prefer not to develop and why.
“I’m looking for the cleanest and least expensive way to solve this,” he said.
The meeting’s roundtable format gave members a chance to speak freely and without time constraints.
Topographic maps were spread out on several tables and Haagenson asked residents to circle, highlight and mark up places around the area that could potentially produce some form of energy. This included rivers with heavy flow, windy areas, sunny hillsides and just about anything else that came to mind.
Many commentators expressed concern about having to choose between buying groceries and paying for heat. Others mentioned leaving the state due to skyrocketing prices for fuel and electricity.
“I’m expecting nearly 20 percent of Fairbanks to leave by this fall,” Denny Schlotfeldt said. “No one is able to pay for heat from this last winter — how are we supposed to afford next winter?”
After glancing out the window at the morning’s snow, Whitaker reminded everyone that next winter is just five months away.
Schlotfeldt compared the energy crisis to the hardship locals faced after the 1967 flood.
“We need temporary relief for the energy bills right now,” he said.
The average income for Fairbanks residents is about $27,000 a year. The average household is spending about $6,000 a year on fuel alone, according to Haagenson.
Whitaker suggested help could arrive by June if the borough declares a state of emergency and if Gov. Palin will approve the funds.
“Fairbanks is going to be the next poster child for energy conservation for the state of Alaska,” Whitaker said.
Both Whitaker and Haagenson said their biggest concern was the impact of the energy crisis on the local economy.
“I’m all about local control for local energy,” Haagenson said.
After surveying other communities, Haagenson explained that some northern communities have given up trying to survive off diesel, and that Anchorage and Southeast Alaska aren’t quite aware of the seriousness of the matter.
“The truth is we’re all on the same train — we’re just going to hit the wall at different times,” he said.
Alaska produces roughly $400 million worth of fuel every year, but the majority of it is exported Outside.
“I want it to stay here and provide jobs. We need to keep that money in the local economy,” he said.
Haagenson expects the rapid statewide deployment of an energy plan to take hold by December. The plan is broken down into a five-step process that will identify the local resources available for each region of the state, develop the technology to tap into those resources, calculate real delivery costs and return to the local level to recommend the most cost-effective way to produce energy for electricity, transportation and heat.
“It’s not about the state telling you what the solution is,” he said, “We’re leaving the ultimate decision up to you.”
As for what local Alaskans can do today to conserve energy, Haagenson offered a simple piece of advice near the end of the meeting:
“The cheapest form of energy is the one you never use,” he said.
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Community Discussion
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Okay, if winter is five months away, that gives everybody a lot of time to figure out what they will do PERSONALLY to conserve energy.
I said this yesterday, but it did not take much effort at all for me to use 30% less heating oil this winter than last. That was to benefit my own budget AND to do my part to decrease demand.
If you're one of those people who likes complain about the high price of heating your house in one breath and how annoying it is when your husband wants to turn the thermostat down in another, there might be a problem.
Okay, I am lost. Does this mean the money will be available to help everyone living in the borough who owns a home or just the low-income home owners? It seems that if you change the requirements of eligiblty, be aware of the repercussions it will create.
Flowerjay ... it means basically if you don't work for a living, or "sort" of work, then more free stuff for you so that you have as much or more than those who do work. The FNSB is a BIG area ... lol. By suspending the rules it is easier to miss-manage the funds and have less accountability. The folks in the outlying areas will certainly love it.
Steve, bless his heart, is putting a nice spin on this. His entire life was at GVEA and that is all he knows ... how GVEA works. He is a good man but GVEA isn't in the mainstream of energy usage and GVEA has been very irresponsible over the last several years. Just look at you power bill and compare that to others … highest in the nation for similar distribution and production facilities. Bad decisions date back all the way to Huffman with multiple million dollar radio systems to money hole fiber optic cable networks …. none of which deal with our energy needs.
Remember GVEA even tried to disconnect the power generation from the members awhile back. Why all the hocus pocus about "local energy resources". We basically have two, oil and coal. We had three but the naysayer’s killed hydro 25 years ago.
If the mayor really thinks the "average income for Fairbanks residents is about $27,000 a year” then he has not looked at his pay check or anyone else’s. The average is allot more than that … for those that work. There are those that don’t work or part timers and they don’t count; however, they are always factored in the numbers to skew them.
What all the buzz really is about? The state paying the tab for each of us …
James: "...it means basically if you don't work for a living, or "sort" of work, then more free stuff for you so that you have as much or more than those who do work."
You seem to be bothered by this. Why? Isn't it, generally speaking, the poorest among us whom we should help the most? And isn't it the better-off who can most afford heating oil?
I suspect -- though, granted, I do not know -- that most poor are either *working* poor, or *trying* to be working, or coping with some situation that prevents them from working.
To suggest that it's a problem for the poor to receive disproportionate public assistance is to say either (a) that the financial need of the better-off is just as great as that of the poor, which is patently absurd, or (b) that it is wrong to help the poor more than the rich, and that the rich should in fact get richer and the poor poorer. What could be less charitable?
So james- If you are able to categorize the people that would be eligible for these programs as "it means basically if you don't work for a living, or "sort" of work, then more free stuff for you so that you have as much or more than those who do work" THEN PLEASE TELL ME what are those income limits that they are talking about? Do you even know? I DOUBT YOU DO, according to Housing and Ubban Development 100% of median income for a family of ONE is $49,900. The median (that means middle just in case you are not familiar with the term) Income for a family of four in the city of Fairbanks according to last falls quarterly report put out by the North Star Borough is only $37- 39,000 depending on where you live in the borough. So technically, that means that our whole town is eligible.
People are not "sort of working" to pull down $40,000 a year they just arient rich. To use the programs that you work to pay for is not abuse of the system, you may not like it but no one is making you use the programs, so please DONT sign up for it if you feel that way.
Rampart Dam,, Remember that ? God bless the "save the ducks", they won... now pay you energy bill and be quiet...
At the GVEA meeting they told us that it's not their fault that oil prices have gone up. They are half right. Throughout the US only 2% of all electricity comes from petroleum. For GVEA ratepayers 40% of our electricity comes from petroleum. The reason you don't hear about increasing electric costs on the national level is because it is not happening. We are the only ones paying more because of increased oil costs.
I am able to keep my energy consumption to an extremely low amount. But, renters on the other hand. How do you control their thermostat?
You contract with them that any fuel consumption beyond a certain amount is their responsibility.
I am glad Mayor Whitaker understands that we have a crisis. Now where were the legislators? Not one was quoted in the article. Did any of them even bother to attend?
This is a crisis that will hurt EVERY member of our community- rich or poor. Why? When the population begins to collapse, all of the real estate within the FNSB will become worth much less.
Already homes that had been valued above $300,000 are nearly impossible to sell. Want to sell that $300,000 + home? Just slash the price by about $75,000 or $100,000 and you might have a chance at finding a buyer.
Might.
The All Alaska Gasline could begin work THIS year, boosting the economy with high paying jobs that could mitigate the high property taxes and fuel prices we are currently paying.
Gas could be flowing here in less than five years. Call it a light at the end of a very dark tunnel.
Right now we have no hope for reasonable energy prices. And the irony is we are sitting on TRILLIONS of cubic feet of low cost, clean burning natural gas.
And what do we need to do to make that happen? You need to tell your elected officials to support that project. The voters have already voted for this project multiple times.
Ask them why they have ignored the wishes of the voters. Ask them why they have allowed this terrible crisis to happen by not supporting construction of this critical pipeline infrastructure. Ask them why they deserve your vote this year.
I'd tell 'em that they are going to be fired if they do not vote to build the All Alaska Gasline at the coming special session.
Fair is fair...if one person gets it, we all should get it. My wife and I both work. OK, we're not below the poverty level, but only because we work hard. We could use some help with our fuel bills too. Just so all you people who benefit from the non-profit agencies in town know...the extra income I used to donate to them has been eaten up with inflation.
Considering Mayor Whitaker was the Chairman of the Alaska Gasline Port Authority, why didn't he do a better job with it when he had the leadership of it? I notice he doesn't speak about the particulate program anymore even thought it is still on the agenda. This program could bring even more problems for Fairbanks if it restricts coal, wood and even oil burning. Anchorage received 25 million from the Sate for a wind farm on Fire Island, what has the state given Fairbanks for alternative energy production? Our delegation and local leadership have failed in this community in the alternative energy area. They find it easier to declare an emergency and let others deal with it, while they plan on retiring and moving to Arizona( remember Mayor Thompson). Let the dog and pony show go on to avoid the real problems.
Randy, what is your point?
First, do you know the difference between a CEO and a board chairman?
Come back to us when you have that figured out.
Your buddy Frank Murkowski was the one who told the voters who have voted multiple times for an All Alaska Gasline to take a hike- to put it politely. (Same with Tony Knowles and his pal Bill Allen).
Try building an instate gas pipline when the governor is actively working against you.
Good luck.
STATE OF EMERGENCY for an ENERGY CRISIS. Wake up Anchorage your the next one on the panic mode.
Why is the term "ENTITLEMENT PROGRAM" used for the denial of ones own property or assets? If the State of Alaska (meaning: WE THE CITIZENS OF ALASKA) own vast amounts of renewable and non-renewable resources and WE decide to use a portion of that wealth to heat and power our homes...why should we be denied?
THE STATE OF EMERGENCY is that we are exporting our Royalty Oil down the pipeline like SCROOGE MCDUCK so that we can say our piggy bank is busting at the seams...and mean time, the "Beagle Boys" are hauling it away, as fast as we stuff the loot into the vault.
The Constitution of the State of Alaska, Article 8 - Natural Resources
Section 1. Statement of Policy.
"It is the policy of the State to encourage the settlement of its land and the development of its resources by making them available for maximum use consistent with the public interest."
Section 2. General Authority.
"The Legislature shall provide for the utilization, development and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people."
LOWER THE ROYALTY "TAX" FOR IN-STATE USE OF ALASKA OIL AND ALLOW ALASKANS AFFORDABLE ENERGY, NOW. Then, get on with the development of long range sustainable energy production.
hey, you either have to be upper class to afford it, or lower class to have the government pay for you to live. We in the middle class are being hit the hardest as usual... low income....gets healthcare, fuel assistance, tax break...low income housing, why not increased funding for scholarships so people can go get a better job rather than just keep paying for everything for them.
Paul, Charity is not government programs or grants. Charity is the personal giving of one human to another. Government programs are redistribution of wealth.
5050, Gas might be flowing in 5 years in a perfect scenario. But how many more years would it take to build the infrastructure to deliver it to our homes?
Is GVEA evil?
How many years of law suits did GVEA have to fight to get the new power lines in? Last law suit save the ferns
Do you think GVEA could turn that new coal power plant on without a law suit stopping it?
Yes go put in a wind farm. How will you get a power line in to get the power to you? Law suits, Laws suits, ten years later maybe.
Solar cells: unless you have 10,000 to 20,000 dollars and stop using your computer.
Solar farm: need to run power lines, law suits, law suits you get the ideal.
A dam on a river: law suits, law suits, 10, 20 years will never get done.
Nuke plant Yea right.
GVEA has no choice but to use fuel oil to meet power demands.
Nuclear power. Cheap. Clean. Relatively safe- especially in modern times. Oil will run out. Coal hurts the ozone. Dams hurt the fish. Not much wind here in Fairbanks. 8 months of darkness limits solar energy. We may not have many options. It works well in lots of places, but public "hysteria" of nuclear power will keep us locked into oil and lining the pockets of BP and Conoco until there is none left.
Chris: Would you use U-235 or PU-239 fission reactor or do you think a fusion breeder reactor would be more creative thinking. Where shall we store the spent fuel? Do you have a site location selected that would not be susceptible to earth quake disturbance?
How about we stick that nuclear reactor right next to the center of population so we can keep the transmission lines to a minimum. Yep right next to downtown Anchorage would be a wonderful location. Or maybe you would prefer the facility to be built closer to your house.
lakloey1: "Paul, Charity is not government programs or grants. Charity is the personal giving of one human to another. Government programs are redistribution of wealth."
When I asked, "What could be less charitable?", I meant: What could be less charitable (of an individual) than to hold one of the opinions expressed in the previous sentence?
Since you make the distinction, I'll point out that charity is also the redistribution of wealth -- but on a personal scale, up to the individual's sense of compassion or duty.
It is often said that the purpose of government is to help us do those things we cannot do by ourselves. The very existence of crippling poverty shows one thing we apparently cannot do by ourselves: act toward the poor with justice and charity. (That is, in sufficient numbers of "haves" toward sufficient numbers of "have-nots". I don't mean that there's *nobody* capable of just, charitable behavior.)
I am pleased to have a government that offers aid more readily to the disadvantaged than to the privileged -- even when it means I am not poor enough to qualify. It is the government of a charitable people, and it speaks for me.
Charity is the voluntary redistribution of wealth. Government’s job is to do for us what is in the constitution. The forced government redistribution of wealth doesn’t fall under the definition of Charity. There are many causes of “crippling poverty” some of which can be attributed to the Government policies.
Go to natural gas. Get the state to lease out some of the areas on the Tanana Flats or any other place where there's a likelihood for natural gas production. Build a natural gas refinery. Consume the gas locally, haul it around in trucks and/or pipelines.
Keep the gas production down to a level that meets the needs of Fairbanks-Northstar residents. The winter air will be cleaner, your heating bill should go down quite a bit, and it'll add jobs to the local economy. Plus if the FNSB adds a slight tax (1 or 2 cents per gallon), it should greatly help out the local government.
Think about it.
Gov Palin, we are in a crisis here in the interior!! Fairbanks, while in a state of emergency or a sort, is in pretty good shape compared to the villages in the bush. The fuel in villages is MUCH more expensive, opportunities for making money much fewer, infastructure much less developed, all the receipe for financial disaster. I live part of my year in Galena and spent time before that in Ft Yukon, and I honestly do not see how people can survive living in the bush. With prices like they are, and such few places to make cash, it seems that there would be people literally starving out in the far flung villages. I was also here in the mid 80s when it went to crap. I told someone today, the way things are looking, that period of time might be a walk in the park compared to what we are facing soon. While I am NOT for the Govt. getting us out of any tight spot, we need to be able to use our OWN resources to help us out of the spot. Please help us free up those resources Gov. Palin.
That's it I final have a reason to do it. I'll go to my neighbors SUV take all four tires off turn off the thermostat then use the tires as a new source of energy! But some friends of mine said that the toxic gases would be fatal. But the gas in he's gas tank sure starts a fire up with the quickness! Solved at least one or the environmentalist's problems....hysrchrd@yahoo.360.com
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