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Are there strings attached to the $28 million in stimulus funds that former Gov. Sarah Palin vetoed earlier this year? Yes.
Do they matter? No more than the conditions on billions of other federal dollars that Alaska has accepted without reservation over the years. A full conference table of lawmakers heard Larry Persily, an aide to Rep. Mike Hawker, R-Anchorage, testify Monday to the obligations that come with federal stimulus money. Alaska has nothing to worry about. First, as Persily pointed out, we already receive federal funds to help with weatherization and energy conservation programs. The feds required accountability and reporting on what Alaska does with those funds -- why would we expect anything else? Second, nothing in the federal program requires a statewide energy building code. Alaska doesn't have a statewide code. Alaska isn't going to have one in the foreseeable future. Those codes are up to local governments and market demands. And thirdly, the U.S. Department of Energy has made clear that a certification letter to accept the money obligates a state to encourage, promote and support codes and energy efficiency standards that reduce costs, consumption and reliance on foreign sources while increasing efficiencies and effective delivery of energy. Those are the same goals the state is already promoting with its weatherization and conservation programs. And, as Alaska Housing Finance Corp. director Dan Fauske pointed out at a legislative energy hearing Monday, Alaska is already well ahead of most states in those efforts. Alaska can decide how to spend the $28 million. Yes, the state must submit a plan to Uncle Sam, and Uncle Sam could reject our plan. But that's hardly likely. Our agencies' energy conservation work is solid and consistently passes federal muster. Although he supported Palin's veto, Gov. Sean Parnell has said he'll certify the application for the $28 million if lawmakers override the veto at their special session in August -- with the least restrictive conditions possible. That shouldn't be a problem. Persily pointed out that the state of Missouri had similar misgivings about accepting the energy stimulus money, but resolved them with a certification letter that pledges the state to work with and encourage municipalities that choose to adopt new building codes for energy efficiency. In other words, they must work toward a goal through voluntary compliance, not coercion. Any public agency that is not at least encouraging energy efficiency at this point in U.S. history isn't acting responsibly. Accept the $28 million during the Aug. 10 special session. That will give the state plenty of time to craft a certification letter before the new federal deadline of Sept. 30. Then let's put the money to work to provide jobs and cut energy costs. BOTTOM LINE: Lawmakers should override stimulus money veto, and the Parnell administration should make sure that $28 million pays off.