Energy policy in Alaska, 2008-2020

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Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy requirements, and energy efficiency standards in Alaska.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in Alaska.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in Alaska, and the electric reliability organizations in Alaska.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of Alaska, a state profile of Alaska from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

Policy

State regulations

The Alaska Oil and Gas Conservation Commission has statutory authority to issue rules and regulations related to oil and gas production, energy conservation, and environmental protection in the state. The commission requires oil and gas operators to submit an application for permission to drill. Operators must receive the agency's approval before they can drill or re-drill a well for oil and gas exploration. Oil and gas operators must file a bond or other financial resource with the commission to ensure that each well is drilled, operated, maintained, and abandoned in accordance with state regulations. All surface production equipment involved in oil and gas operations must follow environmental and safety regulations. State regulations on oil and gas production in Alaska are found in Title 20, Chapter 25 of the Alaska Administrative Code.

Fracking

See also: Fracking in Alaska

State regulations require that before hydraulic fracturing (also known as fracking) can occur, an operator must inform all owners, such as landowners and subsurface mineral owners, within a half-mile radius of a proposed well. Operators must also submit an application to the Alaska Oil and Gas Conservation Commission. The application must include the location of the proposed well(s), the location of any water wells and fresh water aquifers within a half-mile radius of the well's surface location, a plan for sampling these water wells before fracking occurs, and information on the selection process used to identify the wells to sample.

Other information required in the application includes detailed information about the casing and cementing of a well, pressure test information, a detailed copy of the proposed fracking program, the fluids and additives used, the weight and volume of each substance injected into a well, the height and length of each proposed fracture, and a detailed description of the operator's plan for cleanup at a well and the recovery of fluid used. Title 20, Chapter 25.283 of the Alaska Administrative Code outlines all of Alaska's regulations of fracking.

Renewable energy policies

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.

Renewable Portfolio Standard

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.

As of February 2017, Alaska was one of 20 states that did not have a Renewable Portfolio Standard or a voluntary renewable energy standard or target.

Grant programs

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.

As of March 2015, Alaska was one of 15 states with a state-run grant program for renewable energy.

Alaska Renewable Energy Fund

The Alaska Energy Authority, the state's lead agency for statewide energy policy, operates the Alaska Renewable Energy Fund (REF), which was established by the Alaska State Legislature in 2008 and extended for 10 years in 2012. From 2008 to 2015, approximately $257 million in grants were issued for renewable energy projects. Additional funding came from local contributors during this period. As of January 2017, grants for wind energy totaled $91.5 million followed by $84.8 million for hydroelectric power and $27.5 million for biomass. Heat recovery systems, solar energy, heat pumps, and transmission lines accounted for the remainder. For more information about the program and the projects in operation, click here.

See the map below for grant programs by state.

States with grant programs for renewable energy as of March 2015 (Source: Environmental Protection Agency)

Loan programs

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.

As of March 2015, Alaska was one of 12 states with a state-run loan program for renewable energy technologies. The Alaska Energy Authority operates the Power Project Loan Fund, which provides loans to local governments and local utilities to install conservation, heat recovery, and bulk fuel storage technologies. As of November 30, 2016, the outstanding balance of the Power Project loans was approximately $9 million. Examples of projects funded by the program as of January 2017 included the Waterfall Creek hydroelectric power facility and the Hiilangaay hydroelectric facility on Prince of Wales Island. For more information about the program, click here.

A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in Alaska can be found here.

See the map below for renewable energy loan programs by state.

States with loan programs for renewable energy as of March 2015 (Source: Environmental Protection Agency)

Energy efficiency regulations

As of February 2017, Alaska required that all new residential, commercial, and communal-owned buildings constructed on or after January 1, 1992, comply with the Alaska Building Energy Efficiency Standard (BEES) if these buildings are financed by the Alaska Housing Finance Corporation. BEES is based upon the International Energy Conservation Code (IECC), which can be found here. To comply with the standards, authorized individuals, such as architects, engineers, state-licensed home inspectors, or local building code officials, must complete a compliance form as part of any application submitted to the AHFC. As of July 1, 2013, Alaska implemented updated residential building codes based on the 2012 version of the IECC in addition to Alaska-specific amendments.

Net metering

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.

As of October 2016, Alaska was one of 41 states with a statewide net metering policy. In October 2009, the Regulatory Commission of Alaska (RCA) approved net metering regulations, which went into effect on January 15, 2010. All electric utilities subject to state regulation must offer net metering to customers. Independently owned electric systems with retail sales of less than 5 million kilowatt hours (kWh) are exempt from the regulations. Electric utilities that generate 100 percent of electricity from renewable energy sources that are approved by the state government are also exempt from the regulations.

Recent legislation

The following is a list of recent energy policy bills that have been introduced in or passed by the Alaska State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Ballot measures

Energy policy ballot measures

See also: Energy on the ballot and List of Alaska ballot measures

Ballotpedia has not covered any ballot measures relating to state and local energy policy in Alaska.

Utility policy ballot measures

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in Alaska.

Production

The sections below include statistics on total energy production in Alaska, oil and natural gas production in Alaska, oil and gas production in Alaska over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in Alaska for production.

Total energy production

The table below provides information regarding energy production in Alaska in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.

Energy production, 2014 (in billion Btu)
State	Biomass	Coal	Crude oil	Nuclear energy	Natural gas	Renewable	Total*
Alaska	--	22,944	1,050,815	--	381,633	19,737	1,475,129
California	25,373	--	1,184,760	177,656	284,953	766,125	2,438,867
Oregon	5,844	--	--	--	974	478,961	485,779
Washington	--	--	--	99,332	--	928,071	1,027,403
U.S. average	38,759	404,181	307,301	160,980	585,731	187,132	1,684,085
*Total figures were computed by Ballotpedia. Source: U.S. Energy Information Administration, "Google Sheets API"

Nonrenewable energy production

The table below provides information regarding nonrenewable energy production in Alaska. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.

Nonrenewable energy production
State	Coal, productive capacity (short tons)	Natural gas (million cubic feet)	Crude oil (thousand barrels)
Date	2014	December 2014	April 2016
Alaska	3,000,000	29,976	14,667
California	--	21,085	15,676
Oregon	--	80	--
Washington	--	--	--
U.S. average	24,874,314	43,350	4,388
Source: U.S. Energy Information Administration, "Google Sheets API"

Oil and gas production (2004-2014)

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

The graph and table below provide information about crude oil production in Alaska. Information from select surrounding states is provided for comparative purposes.

Crude oil production in Alaska and select surrounding states, in thousand barrels
State	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	Percent of total 2014 production	2014 Rank
Alaska	332,441	315,387	270,481	263,595	249,874	235,491	218,904	204,829	192,368	187,954	181,425	5.7%	4
California	240,138	229,291	223,378	218,456	214,465	206,976	201,241	194,194	197,211	198,928	204,269	6.42%	3
Oregon	0	0	0	0	0	0	0	0	0	0	0	0.0%	N/A
Washington	0	0	0	0	0	0	0	0	0	0	0	0.0%	N/A
United States	1,991,394	1,891,227	1,857,044	1,853,166	1,830,002	1,952,670	2,000,861	2,060,398	2,377,806	2,722,171	3,180,813	--	--
Source: U.S. Energy Information Administration, "Crude Oil Production" Note: The data above are field production data.

The graph and table below provide information about natural gas production in Alaska. Information from select surrounding states is provided for comparative purposes.

Natural gas production in Alaska and select surrounding states, in million cubic feet (MMCF)
State	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	Percent of total 2013 production	2013 rank
Alaska	3,900,315	3,978,209	4,023,516	3,560,567	3,853,494	3,804,072	3,669,876	3,567,248	3,527,624	3,472,097	3,547,760	11.82%	2
California	375,306	355,793	358,729	355,946	346,678	340,048	312,315	325,445	284,293	251,873	257,780	0.86%	16
Oregon	731	467	454	621	409	778	821	1,407	1,344	770	770	0.0%	29
Washington	0	0	0	0	0	0	0	0	0	0	0	0.0%	N/A
United States	24,118,978	23,969,678	23,456,822	23,535,018	24,663,656	25,636,257	26,056,893	26,816,085	28,479,026	29,542,313	30,005,254	--	--
Source: U.S. Energy Information Administration, "Natural Gas Gross Withdrawals and Production" The data presented above are gross withdrawals in million cubic feet (MMCF). Production data for 2014 were estimated for some, but not all, states; "--" indicates data were not available.

Oil and gas production on federal land

See also: Oil and natural gas extraction on federal land

The federal government leases federally managed land to private individuals and companies for energy development, including crude oil and natural gas drilling, solar energy development, and geothermal energy development. Approximately 166 million acres of federal land were available to be leased for energy development as of December 2014. The U.S. Bureau of Land Management (BLM) is responsible for regulating oil and gas drilling on federal lands in the United States.

The table below provides information about oil and natural gas production on federal lands in Alaska in 2014. Information from select surrounding states is provided for comparison.

Oil and natural gas production on federal land, 2014
State	Oil production (in thousands of barrels)	Natural gas production (in million cubic feet)
Alaska	594	13,079
California	14,967	7,077
Oregon	0	0
Washington	0	0
U.S. average	2,976.06	49,996.92
Source: Office of Natural Resource Revenue, "Statistical Information"

Land leased

Private oil and natural gas companies apply for leases from the U.S. Bureau of Land Management (BLM) to develop energy resources on federal lands. After a lease is approved, the company must submit information to the BLM about how it will conduct its drilling and production operations. The BLM also inspects a company’s operations during production.

The table below provides information about oil and gas producing leases and acres on federal lands in Alaska from 2013 to 2015. Information from select surrounding states is provided for comparison.

Oil and gas producing leases and acres on federal land by state, 2013-2015
State	FY 2015		FY 2014		FY 2013
	Producing leases	Producing acres	Producing leases	Producing acres	Producing leases	Producing acres
Alaska	28	16,882	29	18,555	29	23,115
California	320	80,921	323	82,697	325	82,736
Oregon	0	0	0	0	0	0
Washington	0	0	0	0	0	0
U.S. average	485	257,505	483	258,996	480	262,870
Source: U.S. Bureau of Land Management, "Oil and Gas Statistics"

Energy usage

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

Consumption

The table below provides information about energy consumption by source in Alaska in 2014. Information from select surrounding states is provided for comparison.

Energy consumption in Alaska, 2014 (in billion Btu)
State	Coal	Crude oil and petroleum products	Natural gas	Nuclear energy	Solar	Wind	Geothermal	Hydropower	Wood and wood waste	Biomass
Alaska	18,225	235,572	329,585		10	1,445	186	14,633	3,463	5,476
California	39,486	3,371,579	2,417,476	177,656	180,287	123,559	117,226	157,213	162,466	298,473
Oregon	34,238	339,434	225,576		3,585	71,852	2,977	335,341	59,361	72,449
Washington	76,547	715,873	319,784	99,332	875	69,117	1,136	755,695	101,249	121,119
U.S. average	359,931	716,746	544,353	172,585	20,739	531,323	16,555	61,397	65,345	101,581
Source: U.S. Energy Information Administration, "Google Sheets API"

Prices and taxes

The sections below include information on energy prices and spending in Alaska, fuel taxes and state taxes in Alaska and in neighboring states, and an overview of the federal tax on gasoline.

Energy prices

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.

The table below provides information about energy prices in Alaska as of April 2016. Information from select surrounding states is provided for comparison.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Energy prices in Alaska
State	Natural gas Dollars per thousand cubic foot	Electricity Cents per kilowatthour
Date	April 2016	April 2016
Alaska	$9.63	18.6
California	$10.50	12.7
Oregon	$13.70	8.7
Washington	$9.50	7.6
U.S. average	$11.20	10.41
Source: U.S. Energy Information Administration, "Google Sheets API"

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The ratemaking process is both political and economic. The table below presents information about electricity prices by consumer type in Alaska in April 2016. Information from select surrounding states is provided for comparison.

Electricity prices in Alaska by sector (in cents per kilowatthour)
State	Commercial	Industrial	Residential	Transportation	Average (all sectors)
Date	April 2016	April 2016	April 2016	April 2016	April 2016
Alaska	18.4	16.1	20.7	0.0	18.4
California	13.8	10.7	12.4	8.8	11.4
Oregon	8.9	5.8	10.5	9.1	8.6
Washington	8.3	4.4	9.3	8.8	7.7
U.S. average	10.48	7.45	13.05	10.47	10.36
Source: U.S. Energy Information Administration, "Google Sheets API"

Energy spending

The table below provides information about energy spending in Alaska as of 2014. Information from select surrounding states is provided for comparison.

Energy spending in Alaska, 2014 (in millions of dollar except per capita spending)
State	Petroleum	Coal	Natural gas	Nuclear	Per capita spending
Alaska	$5,537	$89	$481	$0	$9,349
California	$86,002	$135	$16,128	$115	$3,550
Oregon	$9,426	$87	$1,498	$0	$3,744
Washington	$17,219	$200	$2,158	$79	$3,653
U.S. average	$17,267	$1,322	$3,786	$574	$5,304
Source: U.S. Energy Information Administration, "Google Sheets API"

Fuel taxes

Click to enlarge.

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in Alaska as of January 2016. As of January 2016, Alaska levied a 12.3 cent state gasoline tax and a 12.8 cent state diesel tax. Alaska ranked 50th highest in total gasoline taxes (federal and state) and 50th highest in total diesel fuel taxes as of January 2016.

State motor fuel taxes in cents per gallon, January 2016
State	State gasoline tax	Total gasoline tax	Rank	State diesel tax	Total diesel tax	Rank
Alaska	12.3	30.7	50	12.8	37.2	50
California	40.6	59.0	5	34.3	58.7	10
Oregon	31.1	49.5	16	30.4	54.8	20
Washington	44.5	62.9	2	44.5	68.9	3
U.S. average	30.29	48.69	N/A	30.01	54.41	N/A
Source: American Petroleum Institute, "Motor Fuel Taxes"

Federal tax

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.

Utilities

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in Alaska, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in Alaska.

Background

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.

Electricity markets

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utility rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.

As of February 2017, Alaska was one of 40 states with a regulated electricity market. The Regulatory Commission of Alaska is tasked with overseeing the state's electric utilities. According to Section 42.05.221 of the Alaska Statutes, a public utility cannot operate or receive compensation for providing service to customers unless it obtains a certificate from the commission. As of February 2017, Alaska had 82 electric utilities. For a complete list, click here.

Electric reliability organizations

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are composed of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.

Alaska EROs

As of February 2017, neither Alaska nor Hawaii had a NERC-affiliated regional electricity reliability organization and was exempt under the Federal Power Act as amended in 2005.

Background

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of Alaska (from the U.S. Energy Information Administration), a general profile of Alaska (from the 2016 edition of the Almanac of American Politics), and various economic indicators in Alaska.

Background on energy resources

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota—given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.

Alaska energy profile

According to the U.S. Energy Information Administration, "The oil and natural gas industry is a key part of Alaska's economy." The North Slope of Alaska contains six of the 100 largest oil fields in the United States and one of the 100 largest natural gas fields. The oil field in Alaska's Prudhoe Bay is one of the ten largest oil fields in the United States. The state also has coal reserves and rivers with hydroelectric power potential. The Alaskan coastline has potential for wind energy, and the state's volcanic fields contain geothermal energy potential. The state's energy demand is below the national median given its small population; meanwhile, per capita energy consumption was the fourth-highest as of 2014 primarily given the state's winters and its energy-intensive industrial sector.

Most of Alaska's crude oil production occurs on the North Slope. The Trans-Alaska Pipeline System delivers oil from the North Slope to the port at Valdez along the state's southern coast. The oil is then transported by tanker to refineries in Alaska, California, and Washington.

From 2010 to 2015, Alaska ranked third in the United States for natural gas withdrawals. During this period, natural gas supply in general exceeded local demand. Large volumes of natural gas are extracted during oil production and re-injected into oil fields to maintain oil production rates. From 2010 to 2015, approximately 75 percent of the state's natural gas withdrawals were consumed at the production site. In southern Alaska, natural gas is either consumed in the state or exported as liquefied natural gas.

Alaska's electricity infrastructure is not linked to interconnected grids through transmission lines. Approximately 75 percent of the state's population, which is concentrated in the area from Fairbanks to south of Anchorage, is served by an interconnected grid called the Railbelt. According to the U.S. Energy Information Administration, several of the state's rural areas use consumer-owned electric cooperatives for electricity rather use the interconnected grid. Several rural electric providers use diesel to generate some or all of their electricity. As of February 2016, Alaska ranked second after Hawaii in per capita electricity generation from petroleum liquids such as diesel. As of 2016, natural gas accounted for half of the state's electricity generation followed by one-fourth from hydroelectric power.

As of 2015, Alaska was one of eight states with power plants that generated electricity using geothermal energy. The Chena Hot Springs plant, which was built in 2006, was the first geothermal plant to be completed in the state.

State profile

Demographic data for Alaska
	Alaska	U.S.
Total population:	737,709	316,515,021
Land area (sq mi):	570,641	3,531,905
Race and ethnicity**
White:	66%	73.6%
Black/African American:	3.4%	12.6%
Asian:	5.9%	5.1%
Native American:	13.8%	0.8%
Pacific Islander:	1.2%	0.2%
Two or more:	8.4%	3%
Hispanic/Latino:	6.5%	17.1%
Education
High school graduation rate:	92.1%	86.7%
College graduation rate:	28%	29.8%
Income
Median household income:	$72,515	$53,889
Persons below poverty level:	11.3%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Alaska. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Alaska

Alaska voted Republican in all seven presidential elections between 2000 and 2024.

More Alaska coverage on Ballotpedia

• Elections in Alaska
• United States congressional delegations from Alaska
• Public policy in Alaska
• Endorsers in Alaska
• Alaska fact checks
• More...

Economic indicators

See also: Economic indicators by state

Alaska's GDP decreased by 1.3 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

During 2013, Alaska had the smallest percentage of families under the federal poverty line when compared to other West Coast states. Alaska also had the highest median annual household income of any of those states, at $61,749.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Alaska	11%	16%	29%	44%	$61,749	6.6%	6.8%	$59,355
California	15%	21%	28%	36%	$57,161	8.8%	7.3%	$2,202,678
Oregon	15%	19%	31%	35%	$54,066	7.6%	7.1%	$219,590
Washington	12%	19%	28%	41%	$60,520	6.9%	5.7%	$408,049
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

See also

• Energy policy in the U.S.
• Fracking in Alaska
• Net metering
• Renewable Portfolio Standard
• Environmental policy in Alaska

Recent news

The link below is to the most recent stories in a Google news search for the terms Alaska energy policy. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Energy policy in Alaska, 2008-2020 - Google News

Footnotes

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