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DAVID PELUNIS-MESSIER, Rural Energy Coordinator, Tanana Chiefs Conference (TCC), said the TCC region consists of 42 member villages representing 37 federally recognized tribes throughout the Interior, who live in some of coldest regions in the nation. The mission of TCC is to provide a unified voice in advancing sovereign tribal governments through the promotion of physical and mental wellness, education, socioeconomic development, and the culture of the Interior Alaska Native people [slide 2]. His organization believes one way to fulfill this mission is by the use of sustainable energy. The TCC region covers about 235,000 square miles and makes up about 37 percent of the state; the size of the region creates challenges in the transportation of energy, goods, and individuals [slide 3]. In Arctic Village fuel costs $10 per gallon and electric rates are very high. Mr. Pelunis-Messier displayed a map provided by the Alaska Energy Authority (AEA), Department of Commerce, Community & Economic Development, showing the different resources that are available across the state. In the TCC region, most of the area is still dependent upon diesel fuel for heating and for electrical generation, however, there are efforts to return to biomass for heating schools, city buildings, and tribal buildings. Fuel from biomass provides employment, is sustainable, does not have to be imported into the region, and provides energy security. For example, because there is limited storage for diesel fuel, in winter villages may only have one week's supply of fuel for electrical generation. Energy security is a serious problem, in addition to the fact that the cost is equivalent to six to ten times that of Anchorage. Also, high energy costs are a barrier to economic development [slide 4]. Information provided by the Institute for Social and Economic Research (ISER), University of Alaska Anchorage (UAA), shows that low-income households in remote communities spend up to 47 percent of their income on fuel [slide 5]. The high cost of fuel also has a detrimental effect on subsistence activities and on the cost of travel and goods. For example, a roundtrip flight from Galena costs about $380, and freight to some communities costs $0.85 per pound [slide 6]. 8:12:28 AM MR. PELUNIS-MESSIER continued, saying that space heating is the biggest challenge in rural communities; in fact, about $0.75 of every "energy dollar" per household goes to pay for space heating. Schools and community buildings suffer from this cost, as do businesses [slide 7]. He noted that TCC passed a resolution to increase efficiency standards in Tanana, which HOUSE ENE COMMITTEE -3- March 27, 2013PDF Image | ALASKA ENERGY PROBLEMS SOLUTIONS
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