Alaska families are suffering from skyrocketing energy prices. In urban Alaska, rising gasoline and diesel prices, home heating fuel bills, and electricity rates are straining already tight budgets of families whose incomes cannot keep pace. In rural Alaska, fuel prices have always been high but unaffordable prices are now threatening the viability of entire communities. Alaska’s economy was built around its status as America’s leading energy producer. Alaska sells almost 10 times as much energy as it uses, but these benefits have not been adequately reinvested to help Alaska families or Alaska communities facing today’s energy crisis. We need to take steps now to help Alaska families and invest in Alaska’s energy infrastructure to ensure that we have strong, sustainable economies in every region of our state.

Addressing the national energy crisis will be one of the top issues facing Congress and the White House next year. Alaska’s leaders need to turn the challenge of rising energy prices into an opportunity to rally our state around a new energy vision. As mayor, Mark Begich has taken numerous steps to reduce local energy use, save taxpayers money, and build a more sustainable economy. He has worked with mayors from around Alaska, and with the Matanuska-Susitna and Kenai Peninsula Borough mayors through the Tri-Borough Commission to draft the Southcentral Energy Plan. Most recently, Mayor Begich outlined four key steps the state should take to help Alaska families cope with rising energy prices, including new investments in renewable energy, more efficient electricity generation, and public transportation and commuter rail.

As senator, Mark Begich will work across party lines to secure funds and new legislation to implement a new Alaska energy plan - one that re-establishes Alaska’s leadership in energy advancement and development; one that moves Alaska along the leadership path to strong, sustainable communities and creates a new economic engine for the state. The Begich Plan includes:

Bringing New Approaches to the Table to Advance Responsible Oil and Gas Development

Mark Begich will work with Alaska’s oil and gas industry to regain the state’s stature as a major oil and gas producer. The state that once supplied America one-quarter of the nation’s domestic crude oil production now looks at the trans-Alaska oil pipeline and sees that it is two-thirds empty. Over the past 40 years, Alaska has missed out on critical opportunities to benefit from new oil and gas development. Mark Begich will bring new energy and ideas to the U.S. Senate to fulfill Alaska’s potential as America’s leading oil and gas producer and make sure that Alaska families share in the benefits of a new era of development. Mark Begich will not only fight for responsible development of Alaska’s resources, but also fight to make sure Alaska is no shortchanged by energy policy from Washington, D.C. but instead receives its fair share of oil and gas revenues to provide incentives and investment funds for Alaska families and communities to develop a new, sustainable energy infrastructure.

Securing Alaska’s Fair Share of Offshore Oil and Gas Leases

In February 2008, the U.S. Minerals Management Service sold more than $2.6 billion of leases from the Outer Continental Shelf (OCS) in the Chukchi Sea. Currently, federal law does not provide any revenue sharing with Alaska from oil and gas leases in the Chukchi or Beaufort seas. In comparison, Gulf of Mexico states receive 37.5 percent of the revenues from offshore leases through the Gulf of Mexico Energy Security Act passed in 2006. If Alaska had been included in that legislation, the state would receive more than $900 million from the Chukchi Sea lease bids alone.

Mark Begich supports offshore oil and gas development, but like all Alaskans thinks that we need to proceed carefully to protect subsistence resources. When he is in the U.S. Senate, he will fight for Alaska’s fair share of revenues from any offshore lease sale. The State’s share of these revenues will be dedicated to help develop Alaska’s renewable energy resources, help communities and Alaska families implement energy efficiency measures, and help communities mitigate the economic and environmental impacts of offshore drilling.

Bringing the Benefits of a Gas Pipeline to All Alaska

Alaska is in a better position now more than ever to provide families and businesses in our state and the nation with cleaner-burning energy through the Alaska natural gas pipeline. As U.S. senator, Mark will:

• Work with producers, pipeline companies and the state administration to ensure that any Alaska gasline project puts Alaskans to work by including Alaska-hire provisions, funding training centers and apprenticeship programs, and using Alaska businesses.

• Work with gasline developers to guarantee that spur lines are built within Alaska to bring Alaska gas to Alaska families at the same time the gas pipeline is built. Alaskans deserve access to North Slope gas for their homes and businesses, and to promote new industries and jobs that come with them.

• Insist that a portion of revenues from the project are shared with Alaska’s communities to fund essential public services and provide property tax relief.

• Assign a staff member full time to work with gasline developers and state and federal agencies to ensure there are no delays in the pipeline project.

• Defend existing federal incentives for the gasline against any member of the House or Senate who tries to take away any of the provisions.

• Protect the Alaska gasline project against any congressional attempts to levy new taxes on the profits, which could cut into state revenues from the gas.

Pursue Responsible Oil and Gas Development

Mark Begich has always supported and pushed for responsible development of Alaska’s Arctic National Wildlife Refuge. As Anchorage Mayor, Mark Begich worked within the U.S. Conference of Mayors to build national support for ANWR development, including the defeat of a resolution opposing ANWR drilling. Mark Begich has also supported responsible development and new incentives for enhanced oil and gas production in existing Cook Inlet fields. As U.S. senator, Mark will:

• Work across party lines and with all groups to open ANWR to responsible oil and gas development, including pursuit of ANWR reservoirs through directional drilling at the adjacent Sourdough discovery well. In addition, Mark will ensure that subsistence resources are safeguarded and that ANWR’s fragile environmental values are protected.

• Insist the oil and gas industry employ the most current technology to reduce the “footprint” of development, including directional drilling, smaller drill pads and seasonal restrictions.

• Through targeted incentives, promote CO2 Enhanced Oil Recovery (EOR) projects in Cook Inlet to develop as much as 300 million barrels of additional crude oil production in aging oil fields while reducing net CO2 emissions by industrial facilities in the region.

• Encourage industry to develop energy in areas designated for development, such as the National Petroleum Reserve - Alaska.

Looking to the Future – Harnessing New Energy Resources and Opportunities

Just as Alaska is a leader in oil and gas production, it has the opportunity to develop a diversified energy portfolio and be a leader in renewable energy resource development. This will provide Alaska communities and families with long-term reliable and affordable energy supplies. As Anchorage mayor, Mark Begich has pushed for the development of Southcentral Alaska renewable energy sources, such as Fire Island wind, Mt. Spurr geothermal, and methane recovery and generation from the Anchorage Landfill. Begich also launched several programs to increase energy efficiency while saving taxpayers and consumers money.

Pioneer New Sources of Renewable Energy

Alaska has world-class renewable energy resources: wind, geothermal, tidal, and hydropower. These inexhaustible resources can be tapped all across Alaska. Kotzebue has installed 17 wind turbines and is saving more than 90,000 gallons of diesel a year at a savings of $250,000 at 2007 prices. Kodiak is planning to install its first three wind turbines as part of its plan to produce 95 percent of its energy from renewable sources by 2020. Geothermal resources exist in four large regions in the state, including in Southcentral Alaska and a belt that extends from Chena Hot Springs to Nome. Alaska also has many large and small hydro opportunities that are yet to be tapped. There is also great potential for smaller projects across the state using tidal, biomass and solar resources. Anchorage’s Landfill methane project alone will provide energy for 2,500 homes for the next 40 years.

Utilizing renewable energy sources pays off economically. Not only does it save communities considerable money in fuel costs, but it can also help attract new businesses looking for stable, low cost energy. Developing these resources will also create thousands of new, high-skill jobs - from engineering to construction to maintenance - in an expanded Alaska renewable energy industry. The demand for renewable energy projects is clear. In 2008, the Denali Commission received proposals totaling more than $1 billion for new Alaska renewable energy projects. As U.S. senator, Mark Begich will push to:

• Establish a national and state target of generating at least 25 percent of our electricity from renewable sources by 2025.

• Use revenues from OCS leases to fund a new community-based renewable energy program to help Alaska communities provide affordable, reliable energy to their residents.

• Close tax loopholes for multinational oil companies and use the revenues saved to extend the federal Production Tax Credit for renewable energy for ten years, which currently is set to expire at the end of 2008. Without the PTC, new wind, geothermal, and other renewable energy industries will not make the critical investments needed now. Begich will also work to amend the tax credit so that a higher credit is allowed when U.S. made equipment is purchased.

• Extend the 30% solar energy investment tax credit (ITC) for homeowners and businesses for another five years.

• Invest new funding to research and develop Alaska-based sources of sustainable biofuels.

• Provide accelerated depreciation for capital investments in renewable energy generation, transmission and small distributed generation.

• Invest new funding for training programs to develop the skilled workforce that will be vital to the successful development of renewable energy in Alaska.

Cut Community and Consumer Energy Costs

Alaska ranks near the bottom of national rankings for energy efficiency. Until recently, the state invested little money in helping Alaska families, businesses or communities reduce their energy costs through energy efficiency. Alaska should lead the country in the deploying new, innovative energy efficiency technologies and strategies. Alaska and the nation should set a goal of reducing energy consumption 25% by 2018 through energy efficiency. As we have seen in Anchorage, energy efficiency helps families and taxpayers save money. Mark Begich will support:

• Dedicating OCS revenues to help Alaska communities retire or retrofit inefficient electricity generation systems.

• Reversing the Bush administration cuts to federal weatherization programs and expand their scope to include community facilities and buildings.

• Expanding consumer and business rebate programs to make high-efficiency appliances, automobiles, lighting, hot water heaters and other consumer products affordable to every Alaska family.

• Raising federal efficiency standards for appliances and other consumer products.
• Increasing federal tax credits for purchase of fuel-efficient vehicles.

• Fully funding the Low-Income Home Energy Assistance Program to serve more than 3 million Americans facing another winter of record-breaking heating costs.
• Increasing national motor vehicle fuel efficiency standards to 50 mpg by 2025.
• Stopping Wall Street speculation of oil markets that is driving up oil prices and prevent price gouging by oil producers and distributors.
• Creating a national Energy Efficiency Revolving Loan Fund to retrofit government buildings with energy efficient technology.
• Invest new funding for training programs to develop the skilled workforce that will be vital to the installation of energy efficient technology in Alaska.

Looking to the Future – Meeting Coming Opportunities & Challenges

Building Energy Research and Development Capacity in Alaska

Alaska’s skyrocketing costs for all forms of energy require new thinking and new technological innovations to assure a more stable energy future for Alaskans. Alaska has world-class renewable and non-renewable energy resources; resources that can be tapped to not only reduce the cost of energy for Alaskans, but also to place Alaska in a world leadership role in developing resources sustainably and responsibly.

Mark Begich will seek to:

• Substantially increase national funding for renewable energy generation and storage research and technology development.
• Expand energy research and development programs at the University of Alaska to develop and test cost effective energy efficiency technologies that reduce the cost of energy in Arctic and sub-Arctic regions of the world, renewable energy generation and storage technologies that work on small and large scales, and technologies that help Alaska unlock gas hydrates on the North Slope and help Alaska communities recover methane and hydrates for local energy use.

Alaska can – and should – be exporting these energy innovations into the world market. The University of Alaska can be the driving force to train and educate a new generation of Alaskans in emerging energy-related fields.

Helping Alaska Communities Address Climate Change

The science of climate change is clear: if we don’t act immediately to significantly reduce greenhouse gas emissions the cost of doing nothing will far outweigh the cost of taking action. Mark Begich will support national legislation to reduce greenhouse gas emissions 20 percent by 2020 and 80 percent by 2050 through a cap and trade system. A major portion of the emission allowances should be auctioned off with a fair share of the revenues put into an Alaska Adaptation Fund to provide immediate assistance to Alaska communities already suffering the impacts of climate change and to help protect Alaska infrastructure from future damage caused by climate change.

Mark Begich will also push for a new center of excellence at the University of Alaska that focuses on helping Alaska communities adapt to and minimize the impacts of climate change in coming years.