Gov. Sarah Palin has trimmed back her support for renewable energy in the face of declining oil revenues, but the Legislature is still pushing forward with last year's proposed projects. ...Palin budget director Karen Rehfeld said the governor was still committed to renewable energy, but with next year's budget likely to have a significant deficit at estimated oil prices, it wasn't a good idea to take money out of savings for new spending now.

Kodiak Electric Association's Pillar Mountain wind generation project is now $1 million closer to a $14 million renewable energy project to offset diesel fuel consumption in Kodiak. Gov. Sarah Palin recently signed a bill in the 2008 state capital budget to assist KEA in offsetting a portion of the costs for the Pillar Mountain wind project. Sen. Gary Stevens and Rep. Gabrielle LeDoux helped push the appropriation through as part of a program to lower costs and reduce emissions in Kodiak.

Last week, the Legislative Budget and Audit Committee (LBA) quietly approved $100 million in taxpayer money to be used for a collection of renewable energy projects funded through the Alaska Energy Authority (AEA). Shockingly, lawmakers approved the money just hours after the Division of Legislative Audit released a report that raised serious questions about AEA's due diligence in determining the economic viability of these speculative projects. The report found that four out the five randomly selected energy projects they reviewed showed "there is a higher than necessary risk that the projects will not be successful."