Energy omnibus passes first committee

A sweeping energy bill survived hours of testimony to meet with the Senate Resource Committee's unanimous approval Monday afternoon.

Next stop for Senate Bill 220? The Senate Finance Committee.

Resource co-chairs Sens. Bill Wielechowski, D-Anchorage, and Lesil McGuire, R-Anchorage, discussed the bill's particulars with reporters on Tuesday morning. Here's  a press release they sent out with the details.

This is a big deal. It wasn't that long ago that oil prices spiked, sending heat, power and fuel costs sky-high throughout many Alaska communities that still rely predominantly on diesel. In the more remote areas, the cost spikes haven't come down proportionate to the price of oil.

Accompanying the omnibus bill is a roughly $300 million spending plan ( track that here ). The omnibus bill alone carries a $1.2 million estimated cost, which McGuire said could be recouped within two years as the state realizes greater efficiency in heating public buildings and schools.

Wielechowski said the state is in a prime position to pay out the $300 million, with $10 billion in state savings and a projected $2.2 billion surplus.

"After seeing what happened to Alaskans all over the state two years ago when we saw oil prices spike, in my opinion we need to make investments all across the state - in the Railbelt, in Southeast and in rural Alaska - to try to solve some of the extremely high energy costs," he said. "This is the time to invest in the future so we can save money."

McGuire also pushed for the bigger payout, saying it would do more in the long-term than a $1,200 energy rebate proposed by Gov. Sarah Palin in 2008 - and approved by lawmakers.

"Some of us look back at the handout of the $1200 subsidies, $750 million that went out in just sort of a vacuum - it helped Alaskans, I don't want to say it didn't, but it'd be nice to invest in some infrastructure that would pay those dividends out for a longer term," McGuire said.

Meanwhile, the House Energy Committee introduced a bill establishing a statewide energy policy, HB 306. The measure passed Energy on Feb. 5 and is waiting for a hearing in House Resources.