Sept. 15, 2008

BETHEL -- When U.S. Sen. Lisa Murkowski heard that the price of milk hit $11 a gallon in some areas of rural Alaska, and that energy costs in the Bush are forcing families deeper into poverty, she pleaded with villagers not to move into the cities.

"I urge you not to give up your way of life, your culture and your connection to the land and move into urban areas. We will find a creative way to beat this," she told Bethel residents at a gathering in late August.

Murkowski was in Bethel chairing a field hearing of the Senate Committee on Indian Affairs to hear how the high price of petroleum has impacted rural Alaska residents.

She received loud applause from witnesses and the public after her statement asking village residents to stay.

Alaska's air carriers, Sen. Ted Stevens and Murkowski have all noted that 1,000 fewer passengers were carried this spring from Hooper Bay to Bethel when compared to the same period last year, signaling what may be a population shift from rural to urban Alaska, they said.

"Out migration," or moving to Alaska's urban areas, was on the lips of everyone concerned about rural residents moving from the Bush to hubs, or into Fairbanks or Anchorage.

"This is not only an energy crisis, but a social and cultural crisis that is unacceptable in the 21st century," said Robert Middleton, director of the office of Indian Energy and Economic Development for the U.S. Department of the Interior.

For four hours, Alaska Native leaders explained the economic hardships their communities have endured. Afterward, the crowd seemed energized to find its own solution to the dilemma.

"We believe that we have our own answers, and we have a plan, we just need help getting it put in place," said Matthew Nikolai, president of Calista Corp., the Alaska Native regional corporation in the Yukon-Kuskokwim area.

Testifying were Ralph Andersen, CEO of the Bristol Bay Native Association and Chair of the Alaska Federation of Natives Energy Committee; Janie Leask, president and CEO of First Alaskans Institute Board of Trustees; Chris Mello, program manager, Alaska Energy Authority; Myron Naneng, president of Alaska Village Council Presidents; Matthew Nicolai, president and CEO of Calista Corp.; Gene Peltola, president and CEO of the Yukon-Kuskokwim Health Corp.; Ronald Hoffman, CEO of AVCP's housing authority; Mike Williams, chairman of the Alaska Intertribal Council; Steve Morello, director of Indian Energy Policy and Programs for the U.S. Department of Energy; and Robert Middleton, director of Indian Energy and Economic Development for the U.S. Department of the Interior.

LOOKING FOR SOLUTIONS

Despite the urgent tone of the testimony, Murkowski, who spent two days in Bethel, had done her homework and asked questions of the witnesses after their testimony.

"What do you think could be done?" Murkowski asked.

Naneng suggested that Alaska should create more refineries to produce heating fuel, gasoline, diesel and aviation fuels.

Calista President Matthew Nicolai suggested tax incentives and bond financing to meet immediate needs.

Middleton suggested technical help from the government.

Leask suggested strengthening the Power Cost Equalization Program by examining and refining its mission.

AVCP's Hoffman suggested developing central bulk fuel storage areas using ex-military areas like the Adak Naval Base.

BBNC's President Anderson suggested developing renewable energy sources, especially hydropower using Alaska's rivers

The Senate oversight hearing was held in the Yupiit Piciryarait Cultural Center, which was overflowing with stern faces that nodded at every example of rising costs to live here.

Testimony was heard over the sound of Native voices singing school rhymes in the room next door at a preschool and kindergarten workshop.

Murkowski said she hopes the information gathered will help her craft some creative policy in Washington, D.C., that will not only aid the issue, but to solve it.

"I think that there is technical help from BIA (Bureau of Indian Affairs) and the Department of Energy that is immediately available that will go a long way to solving energy issues," said Murkowski. "I've heard some innovative ideas about renewable energy sources that are available right now."

STAGGERING FIGURES

Middleton was joined by nine other witnesses who testified to offer facts and figures that dropped the jaws of Alaska legislators who were in the crowd.

One example: Ron Hoffman noted that 48 percent of a $3 million shipment of materials to build new houses for Association of Village Council Presidents' Regional Housing Authority went to transportation alone.

Testimony of figures that compared the percentage cost per annual household income showed that in some areas the cost of energy is has high as 83.57 percent of a year's earnings.

In villages like Kokhanok on Lake Iliamna, the price of gasoline is $8.83 a gallon with heating oil in Lime village topping out at $9.50 a gallon.

"We need immediate relief," said AITC's Williams. "I don't want to see all the young people and families leave to live in Anchorage and leave the elders behind in the village."

The cost of fuel has risen to as much as $9.25 a gallon for diesel/heating oil in Kokhanok, a village on Lake Iliamna.

"This has reached a critical point to where we will now have decide if we are going to feed our young or keep them warm," said Ron Hoffman president and CEO of the Association of Village Council Presidents Regional Housing Authority.

The comparisons are not complete until you understand that places like Emmonak, located in the Wade Hampton Census area, and other small villages have an annual median household income slightly above $25,000 also has 26 percent of its population below the poverty level, according to 2004 Census data.

HEATING OIL ASSISTANCE

Murkowski heard from three panels of witnesses how the cost of living has skyrocketed for Alaska's poorest residents. Those residents are trying to find ways to help themselves, however, coming up with preliminary plans to develop hydro, geothermal and wind energy methods in rural Alaska.

Not mentioned during the testimony was how Venezuela owned Citgo's 100-gallon fuel oil giveaway impacted the villages, or if the program would continue this year.

Citgo's oil program provides an estimated 112 million gallons of fuel in winter to be distributed in more than 224,000 households and 250 social service providers in 23 states. These totals include the Citgo-Venezuela Tribal Heating Oil Program administered in Alaska by the Alaska Inter-Tribal Council.

The program, being implemented in partnership with the Bolivarian Republic of Venezuela and Citizens Energy Corp., was created in 2005 to offset catastrophic events within some of the poorest and most vulnerable communities in the United States.

Decreased supplies, resulting from hurricanes Katrina and Rita, led to steep increases in fuel costs, while cuts in the federal heating oil assistance program placed additional financial burdens on low-income families.

Williams, however, mentioned the arrival of Bolivian President Morales, who is coming to Anchorage in the place of Venezuela's Hugo Chavez to a gathering scheduled at the Dena'ina Center in Anchorage on Sept. 19-20. The event is said to trigger the signing of a charter that will be taken to the United Nations.

"All of the oil companies in Alaska were invited to participate in this philanthropic effort for rural residents. So far Citgo is the only one who has offered any help," said Williams.

Calista's Nicolai summed up the feeling of many who expressed a need for immediate relief.

"Rural Alaska has provided cheap energy to urban Alaska. It's time our villages are afforded the same opportunity," he said. "Resolution to rural energy issues will bring new opportunities to rural Alaskans and to our state."

www.adn.com/news/alaska/story/526301.html