Protecting Your Rights: Serving West Anchorage

January 26, 2024

In this issue:



  • Renewable Energy
  • Update on SB 140
  • Community Events



Dear Friends and Neighbors,


Legislative work is in full swing. Last week, the House Rules Committee made amendments to Senate Bill 140, which involves broadband funding and public education, and the Senate Resource Committee continued work on the ongoing energy resources in Alaska.

Renewable Energy

We're all hearing more and more about the future natural gas shortages facing the Cook Inlet region and Alaska's Railbelt. In 2022, the major Cook Inlet gas producer, Hilcorp, informed utilities that they would not automatically renew their contracts to provide natural gas due to uncertain supplies. While Hilcorp may be able to extend the supply of natural gas from Cook Inlet through additional drilling and field development, the possibility of a natural gas shortage as early as 2027 remains a concern.


With 70% of Alaskans connected to the Railbelt, the Cook Inlet gas crisis is a statewide problem. There will be a number of options to close the gap in energy production in Alaska, and we must carefully consider the implications of all options. Our decisions will impact Alaska's energy productions systems for decades to come.


The decline in natural gas supplies may be a positive outlook for renewable energy in Alaska. Last week, the Senate Resources Committee heard a presentation from the Alaska Center for Energy and Power (ACEP) on decarbonizing Alaska's Railbelt. ACEP detailed four energy generation 2050 scenarios incorporating different combinations of wind, solar, hydro, and nuclear.


One takeaway from the report is that solar and wind are the cheapest forms of energy in Alaska. But they are highly variable and can't always provide the necessary output during peak demand - particularly during the winter. This dynamic means that additional energy generation or storage is needed. ACEP provided four scenarios for the year 2050:


  • Business as Usual (BAU). Existing power plants, plus several new fossil fuel units, provide all generation. Renewables generate 11% of required energy. 50 MW of new batteries help maintain reliability. Required capital investment, after use of investment tax credits (ITC), is $2.3 billion in 2023 dollars. The generation & transmission cost of electricity (G&T cost) is $119 per megawatt-hour (MWh).


  • Wind/Solar/Hydro adds Susitna-Watana hydro (475 MW), plus 1,022 MW wind and 472 MW utility solar. Renewables generate 88% of required energy.  1,243 MW of new batteries help smooth wind & solar output and maintain reliability. The Alaska Intertie from Southcentral to Fairbanks is upgraded to 230 kV, which helps share energy. Required capital investment = $11.8 billion; G&T cost = $134/MWh. According to ACEP, Susitna-Watana is the most expensive option for 2050.


  • Wind/Solar/Tidal adds a 400 MW tidal plant in Cook Inlet plus 924 MW wind and 190 MW utility solar. Renewables generate 70% percent of required energy. 750 MW of new batteries and the Alaska Intertie upgrade are added. Required capital investment = $7.7 billion; G&T cost = $128/MWh.


  • Wind/Solar/Nuclear. Small, modular nuclear reactors in the Northern (243 MW) and Southern (324 MW) regions, plus 1,056 MW of new wind and 328 MW of new utility solar are added. Generated energy is 96% zero-carbon. 1,518 MW of new batteries and the Alaska Intertie upgrade are added. Required capital investment = $10.1 billion; G&T cost = $128/MWh


Decarbonization of Alaska's Railbelt is possible by 2050, but it will require significant capital investment and updates to our utility infrastructure. You can read the full report here. You can read an abbreviated version of the report here.

Update Senate Bill 140:

Broadband Access and Education


Last Saturday, the House Rules Committee hosted a public hearing on Senate Bill 140. It lasted nearly eight hours as many teachers and parents testified in opposition to its recent amendments. SB 140 originally passed the Senate as a bill to expand broadband internet access to schools in rural Alaska. Last week, the House Majority amended the bill to include several policies that impact the delivery of public education in Alaska and have not been fully vetted by either Senate or House Committees.


One of the most concerning changes that the House Majority introduced into SB 140 is a reduction in the Base Student Allocation, from $680 to $300 per student. Since 2016, inflation has risen nearly 27% in Anchorage, while the BSA has only increased by 0.5% in 2017. The Senate Majority has already announced that $300 is not reasonable funding and would continue to short-fund our public schools.


Another addition to SB 140 is a teacher bonus program. The Governor originally proposed this policy as an idea to improve teacher recruitment and retention. But this program omits support for all other staff, including counselors and teacher aids, who are critical to the well-being and success of students and teachers. The funds necessary to operate a teacher bonus program are better used for a higher increase to the BSA.


The amended version of SB 140 also includes two policies related to charter and correspondence schools. The first policy would replace local school boards with the State Board of Education as the authority to authorize new charter schools. This provision would reduce local control, as the Governor appoints the State Board of Education. Under current law, local school boards are made up of locally elected members.


The second policy involves correspondence schools and would increase per student funding for programs that provide advanced placement classes or vocation/technical curriculum. Correspondence schools do not have overhead, including building maintenance and transportation, like traditional public schools, but this policy would allot nearly the same per student funding to correspondence students as is currently allotted to students in brick-and-mortar public schools. This proposal raises questions of inequity by using State resources to benefit a small portion of the total student population.


With all of these unvetted policies packed into SB 140, I'm concerned that it jeopardizes the bill's original goal of expanding broadband internet access in rural Alaska.


I'm also concerned that our State is failing to meet its Constitutional obligation to adequately fund public education. I will continue to support efforts that meaningfully increase investment in Alaska's public schools. Public education is our best investment in Alaska's future.



In my latest video, I address the recent events surrounding education funding, and provide information on ways to stay engaged and informed during session.

Watch this week's video update

Community Events


Mark your calendar for these upcoming events:


Turnagain Community Council

When: Thursday, February 1st, from 6:30 to 9:00 PM

Where: Online only via Zoom. Click here for more information.

Spenard Community Council

When: Wednesday, February 7th from 7:00 to 8:00 PM

Where: In person at Spenard Recreation Center (2020 W 48th Ave). Click here for more information.

Sand Lake Community Council

When: Monday, February 12th from 6:30 - 8:30 PM

Where: In person at Sand Lake Elementary School (7500 Jewel Lake Rd). Click here for details.

Bayshore/Klatt Community Council

When: Thursday, February 15th starting at 7:00 PM

Where: Hybrid. In person at Bayshore Clubhouse (3131 Amber Bay Loop) or via Zoom. Click here for details.

Westchester Family Skate

When: Saturdays in January and February 1-3 PM

Where: Westchester Lagoon

Ready to help Anchorage GLIDE into winter? If so, consider volunteering at the Westchester Lagoon Family Skate and make this fun, family event unforgettable! We need your help with setup, skate distribution, slinging hot chocolate, and more!  To volunteer or learn more, visit this page.

Ski 4 Kids

When: Saturday, February 17, 2:00-5:00 PM

Where: Kincaid Park

Help instill a love of skiing and the outdoors by volunteering at the one-day outdoor Ski 4 Kids festival on Saturday, February 17th, 2024! We are seeking volunteers to help with registration, ensure young skiers don't crash on the obstacle course, and to pass out hot chocolate! Click here for details.

Sen. Matt Claman

CONTACT INFORMATION

(907) 465-4919

Sen.Matt.Claman@akleg.gov

State Capitol Bldg. Rm 429

Juneau, Alaska 99801

https://www.alaskasenate.org/matt-claman/

CONTACT THE GOVERNOR
(907) 465-3500
550 West 7th Ave. Suite 1700
Anchorage, Alaska 99501
STATE OF ALASKA
State Info: (907) 269-5111
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