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State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

January 2, 2025

Dear friends and neighbors,

 

Happy New Year!

 

Let's get right to work on the really big pieces coming forward this year.

 

For starters:

·    The Permanent Fund and the Corporation's Trustee Paper #10. I've included the document in this newsletter for the 3rd or 4th time in the last year. I hope you will take the time to read it and absorb it. I've also included the information about Common Ground/Institute of the North event next Tuesday (7th) that will talk about the Trustee Paper and the implications. The recommendations in the Paper will be on the table in the Legislature this coming year. I urge you to be informed.

 

·    Energy for the Railbelt is on everyone's mind. I've included some information from Chugach Electric, one of the 5 utilities on the Railbelt, regarding the elements in their billings, and a map of their service area. A point to remember: the utilities generate electricity using natural gas (about 80%) as well as renewables (about 20%). Enstar, our gas utility, distributes the natural gas to homes & businesses to use for heat.

 

 

Items in this Newsletter:

·    Permanent Fund Corporations Trustee Paper No. 10

·    Chugach Electric Utility costs

·    Why to WATER your Christmas Tree (graphic reason!)

·    ALPAR Christmas Tree Recycling

·    Child Care Task Force - Report #2

·    Juneau Fleet's Name a Snowplow Contest

·    BLM Alaska Resource Advisory Council Meeting Notice

·    Current Topics, Stuff I Found Interesting, National Security, Fisheries, Economy, Politics, Healthcare

·    Resource Values, Permanent Fund

Alaska Permanent Fund Corporation

Trustee Paper Number 10

This is a critical document for the future of the Permanent Fund.

 

When "Permanent Fund" is named, many Alaskans only think "dividend".

 

The Fund is so much more than a dividend.

 

The Fund earnings now make up nearly 50% of the State's revenue.

The Earnings are the only reason that Alaskans are not paying a state income tax today.

 

But the current, outdated structure of the Fund is threatening its future. Revisions are needed. In the Trustee paper you will read about changes to modernize and protect the Fund's future.

 

None of these needed changes threaten the existence of a Dividend, which many Alaskans cherish.

But if the changes aren't made, the existence of the Dividend is threatened.

 

Many of us in the Legislature, who have wrestled with these issues for the past 10 years, understand the importance of making those changes recommended by the Trustees.

Those changes involve merging the Earning Reserve Account into the Principle of the Fund so it is all one. The Percent of Market Value of the earnings would still be available to spend but no more than 5% of it. The Fund would automatically be "inflation proofed" because the rest of the earnings would just stay in the Fund.

 

Read more about the recommended changes by clicking on the document below.

Alaska Common Ground

Institute of the North

 

Event: Protecting the Permanent Fund:

Board of Trustees' Recommendation

 

January 7, 2025

5:30-7:30

49th State Brewing

(717 W 3rd)

 

These two Alaska-grown organizations are hosting this important conversation.

Join in by attending in person OR view is streaming at Alaska Common Ground website. I plan to be there!

Chugach Electric Utility

 

The following information from Chugach Electric shows how much of their bill is attributed to the energy used to generate the electrons. You can see that a large part of the bill is for the infrastructure that gets those electrons to homes and businesses.



Why To WATER Your Christmas Tree!

 

A video explanation from National Institute of Standards and Technology. Its pretty graphic!

Something to remember for next year.

REPORT #2 is here.

 

The #2 report has some great recommendations. The Children's Caucus will look at these and consider policy to address them.

 

State task force report includes 56 recommendations for improving child care across Alaska. Alaska's News Source

The report is the second in a pair, with the first report — issued on Dec. 31, 2023 — focusing on childcare challenges related to background checks, licensing, and workforce.

Meet Juneau’s Snowplow Fleet:

2024 Name a Snowplow Contest!

 

(JUNEAU, Alaska) – The Alaska Department of Transportation & Public Facilities (DOT&PF) is excited to reveal the winning names for Juneau's snowplow fleet! After receiving over 400 imaginative submissions from Alaskans across the state, the hardworking Maintenance & Operations team in Juneau has chosen the following names to represent the fleet:

 

·    Berminator

·    Salt-O-Saurus Rex

·    Ka-PLOW

 

These snowplows are the backbone of the Juneau's winter maintenance fleet, helping our operators clear roads to support DOT&PF’s mission: Keep Alaska Moving. Facing the challenges of Alaska’s harsh winters, our dedicated snowplow operators and these plows ensure that Egan Drive and the rest of Juneau’s road system remain safe and accessible for everyone.

 

The Name-a-Snowplow Contest is a fun and lighthearted way for Alaskans to connect with the vital work of our Maintenance & Operations team. It’s also a chance to recognize the critical role snowplow operators play in keeping communities safe and roads open during the Alaska's toughest conditions. With Berminator, Salt-O-Saurus Rex, and Ka-PLOW ready to lead the charge, Juneau is ready for another winter season!

 

A big thank you to everyone who participated in this year’s contest. Your creativity and enthusiasm help make Alaska winters a little brighter!

 

·    Information about the contest: dot.alaska.gov/nameasnowplow

·    Information about the 2024 Snow Summit: dot.alaska.gov/events/snowsummit

·    Snowplow safety tips: dot.alaska.gov/snowplowsafety

·    Watch a video of the newly named snow plows here!

Bureau of Land Management Alaska Resource Advisory Council to hold meeting

 

ANCHORAGE, Alaska — The Bureau of Land Management will hold an Alaska Resource Advisory Council (RAC) meeting on February 12-13, 2025, in Anchorage. Both in-person and virtual participation options are available, and the public is welcome to attend. 

 

The Alaska RAC serves in an advisory capacity concerning issues relating to land use planning and the management of public land resources located within the State of Alaska. Members represent a variety of interests reflective of the Bureau’s multiple-use mission and Alaska’s diverse population. Members meet to collaborate with each other and make recommendations to the BLM Alaska State Director. Over the years, consensus-based recommendations made by RACs have proven effective and lasting. 

 

Planned agenda items include updates about the BLM Alaska Strategic Plan, Tribal relations, recreation projects, youth and hiring initiatives, and cooperative efforts. A full agenda will be posted to the BLM’s website no less than two weeks prior to the scheduled meeting date. Public comment will be accepted at 1:50 p.m. on February 12. The agenda and other RAC information, such as previous meeting minutes and presentations, are available on the Alaska Resource Advisory Council webpage: www.blm.gov/Alaska/RAC

 

Interested members of the public may attend all or portions of the resource advisory council meeting and provide input during the public comment period.

·        The public is welcome to attend the in-person meetings at the BLM Alaska State Office (4th Floor), 222 W. 7th Ave #13 Anchorage, AK 99513.

·        To attend virtually through Teams, please visit the BLM Alaska RAC website to obtain the link and password to the meeting.

 

Depending on the number of people wishing to comment and the time available, individual verbal comments may be time-limited. Written comments to address the council may be sent in advance: 

·        By mail to Azure Hall, RAC Coordinator, BLM Alaska State Office, 222 W. 7th Ave. Mailstop #13, Anchorage AK, 99513-7504; or 

·        By email to ahall@blm.gov with the subject line “BLM AK RAC Meeting.” 

 

For more information about the meeting, or the BLM Alaska RAC, please contact RAC Coordinator Azure Hall at ahall@blm.gov or 307-775-6208.

Current Topics

DOT introduces revised alternatives for Seward to Glenn Highway connector. Alaska's News Source

he state’s Department of Transportation presented newly revised alternatives for the Seward to Glenn Connection during Tuesday’s open house. The study is working to evaluate options to improve safety, livability, regional travel between the Seward and Glenn Highways, and local travel within the surrounding neighborhoods like Fairview, as well as improve access between the Port of Alaska and the highway network.

 

 

Arctic Issues

New U.S. Arctic icebreakers won't be ready until 2030, lawmakers say. The Washington Times

On Wednesday, lawmakers on Capitol Hill said the first of the new Polar Security Cutter icebreakers won’t be operational until 2030 at the earliest. It was supposed to be in the fleet this year, even as Russia forges ahead with a far more massive fleet already deployed in the region. “Despite being announced in 2018, we’re no closer to having an operational polar security cutter now than we were then,” said Rep. Carlos Gimenez, a Florida Republican who chairs the Transportation and Maritime subcommittee of the House Homeland Security Committee.

(My comment: This jeopardizes our Arctic security. It’s massively disappointing.)

 

Kentucky Air Guard helps alleviate arctic housing shortage with airlift mission to North Slope. DVIDS

Thirty-six Airmen from the Kentucky Air National Guard conducted Operation Arctic Haven here Aug. 30 to Sept. 6, airlifting 39 tons of residential building supplies to the North Slope of Alaska to support local communities in need.

 

China launches deep-sea icebreaker to help forget path in research and Arctic influence. SCMP

As China asserts itself as a “near-Arctic power”, it has launched its first icebreaker ship capable of scientific and archaeological research in deep and distant seas that can support crewed deep dives in icy regions, according to state media.

 

 

Arctic National Security

NORAD jets intercept 4 Russian aircraft off Alaska's coastlines. Alaska Public Media

The North American Aerospace Defense Command detected and tracked four Russian military aircraft Tuesday as they passed through international airspace off Alaska’s coasts.

 

UNOLS Arctic Marine Research Capabilities Committee. UNOLS

The AMRCC was established with support from the federal funding agencies to develop Science Missions and Science Mission Requirements to provide guidance to U.S. federal agencies regarding icebreaker support for Arctic marine research.

(My comment: The map shows a photo of Greenland. This attention is misdirected. The US border with the attention is Alaska. Federal agencies are far behind and

glacially slow.)

 

Has Russia's Shadow Fleet, built to evade sanctions, added sabotage to its list? NYT

Western officials have long been concerned about Moscow’s so-called shadow fleet, an assemblage of aged tankers created to covertly carry Russian crude oil around the world. Since Russia invaded Ukraine, the worry primarily concerned the use of such off-the-books ships to circumvent Western sanctions and generate revenue to fuel the Kremlin’s war machine. But Russia’s shadow fleet may now present a more pressing danger to the West.

(My comment: Aged vessels. Shadow fleet transporting oil, and who knows what else. Through the Bering Straits?)

 

Russian Navy launches second Arctic 'Combat Icebreaker'. G Captain

Over the course of the past twelve months, Russia sent the fourth nuclear icebreaker of the new Arktika-class on sea trials, launched a fifth, and laid down a sixth vessel. These vessels will serve along the Northern Sea Route for Rosatomflot. The Russian Navy also commissioned icebreaker Evpatiy Kolovrat for its Pacific Fleet. These come in addition to the completion and launch of the two combat icebreakers. 

 

 

Economy

Tariff threats cast shadow over US reliance on Canada for majority of its oil imports. ABC News

The U.S. increasingly relies on Canadian crude oil to meet domestic demand. That relationship faces potential strain amid the threat of tariffs from President-elect Donald Trump. More than 50% of crude oil imported to the U.S. comes from Canada, up from 33% in 2013. The increase follows a jump in production from Canada’s western provinces and growing pipeline capacity to the U.S.

 

Driving an EV? Big Oil hopes you don't cut down on plastic too. The Wall Street Journal

“One word: plastics.” Career advice given to Dustin Hoffman’s aimless character in “The Graduate” turned out to be pretty solid. Since the film’s 1967 release, global plastic use has risen twentyfold. But the plot is thickening just as Big Oil grows dependent on the wonder-material. 

 

Governor delays salary study as staffing shortages continue to hobble Alaskan government. ADN

Challenges in recruitment and retention of state employees continue to bog down state services, according to budget documents released earlier this month. In recent months, the Fairbanks Pioneer Home, a public assisted-living facility, has reduced its capacity because of a shortage of staff. The Alaska Psychiatric Institute, the only public inpatient mental health facility in the state, relies on contracted staff, rather than employees, to provide care. The Division of Juvenile Justice has closed its Fairbanks facility due to staffing shortages.

 

States where workers are getting a raise. Axios

Millions of workers are getting a raise on Wednesday, when the minimum wage is set to rise across 21 states, and 48 cities and counties

 

 

Education

Alaska has resolved school funding equity concerns, feds say, $17.5M in pandemic aid. ADN

The U.S. Department of Education on Friday told state education officials that a one-time funding boost this year had resolved a dispute over how COVID-19 aid was disbursed to Alaska schools.

 

 

Politics

US Senate likely to vote in legislation to increase Social Security benefits. Alaska's News Source

Those who support the legislation say the provisions unfairly reduce the Social Security benefits received by public employees. Currently, the Windfall Elimination Provision reduces Social Security payments for some retirees who also receive a pension from state or federal employment, while the GPO decreases Social Security benefits for the surviving spouses and family members of these workers.

 

US Senate voter sends bill boosting Social Security benefits for 15,000 Alaskans to Biden's desk. Alaska Public Media

A bill that would repeal the windfall elimination provision and government pension offset — and, in effect, increase some 15,000 Alaskans’ Social Security benefits — is headed for President Biden’s desk and is expected to become law after passing the Senate 76-20 early Saturday ahead of a vote averting a government shutdown.

 

 

Health Care

1 big thing: Door opened to hospital reforms. Axios

The most substantial reforms, known as site-neutral payments, would have Medicare pay hospital outpatient departments the same amount for the same service as independent physician offices. Site-neutral payments could save more than $100 billion over a decade.

(My comment: Ever wonder why so many doctors offices are locating in hospital properties? They can charge a lot more for those services. This needs to be addressed.)

 

Steward debacle but private equity in spotlight. Axios

(My comment: This affected Ketchican hospital emergency room doctors, who went without pay for months.)

 

Nurse union charges against Providence Alaska for 'illegal union-busting tactics'. Alaska Public Media

A union representing nurses at Providence Alaska filed three unfair labor practice charges against the hospital with the National Labor Relations Board. The charges were filed Dec. 13 in response to what the union calls “illegal union-busting tactics.”

 

State task force report includes 56 recommendations for improving child care across Alaska. Alaska's News Source

The report is the second in a pair, with the first report — issued on Dec. 31, 2023 — focusing on childcare challenges related to background checks, licensing, and workforce.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (12/31/24): $73.43

FY24 budget (beginning 7/1) is fully funded at a

forecast of $73/barrel of oil.

Price on 9/30/23: $87.99

Price on 9/30/22: $86.91

Price on 6/29/22: $116.84

Price on 3/08/22: $125.44

Price on 12/22/21: $75.55

ANS production (12/30/24): 491,218 bpd

 

Japan sees nuclear as cheapest baseload power source in 2040. Bloomberg

Nuclear power is forecast to be the cheapest baseload electricity source in Japan in 2040, highlighting the government’s desire to restart more of the nation’s idled reactors. The cost of constructing and operating a new nuclear power plant for 2040 is estimated at 12.5 yen ($0.08) per kilowatt-hour, according to documents released from a trade ministry panel meeting on Dec. 16. This cost assumes reactors will be used for 40 years at a 70% operational rate. The meeting was held to discuss the levelized cost of electricity for each power asset, the document said.

 

$10.9M from State North Slope Lease Sale. Alaska Business

A lease sale for the North Slope region brought an estimated $10.9 million “cash bonus” to the State of Alaska, the largest since 2018. The annual sale also saw the first bid in the North Slope Foothills in a decade.

 

U.S. Department of Energy releases $10 million to support research on used nuclear fuel recycling technologies. U.S. Department of Energy

The U.S. Department of Energy (DOE) today announced a $10 million funding opportunity to support research and development activities to advance used nuclear fuel recycling technologies. The funding will encourage innovation and competitiveness of domestic used nuclear fuel recycling processes in the United States. 

(My comment: This is great news! France has been recycling used nuclear fuel for quite a while.)

 

Waha gas prices: the cheapest gas on earth. Global LNG Hub

The surge in associated gas production means that gas output has been growing more quickly than takeaway capacity, both in terms of processing plants and pipelines. As a consequence, infrastructure became saturated in recent years, driving down gas prices often to negative territory, effectively meaning that producers had to pay for someone taking there gas… so that they can continue to produce something more valuable: crude oil.

(My comment: With prices averaging zero, how will a $10-40 Billion Alaska project compete?)

 

U.S. oil exports to China dwindle as demand wanes, buying shifts. Yahoo Finance

China’s slowing economic growth and its increasing use of electric vehicles and energy sources such as liquefied natural gas are reducing the country’s appetite for crude, with its imports from all nations sliding 7.2% from a year earlier. That softening demand in China has helped drive global oil prices lower this year, and the outlook for 2025 is a top focus for the market. China also is shifting its sources of oil and imported about 26% of its seaborne crude from Russia, Iran and Venezuela this year, up from 24% a year earlier, the Kpler data show. Overall, the country still relies primarily on the Middle East, accounting for about 60% of seaborne oil imports.

 

 

Precious Metal Prices

December 31, 2024

Gold - $2625.60

Silver - $28.96

Platinum - $915

Palladium - $934

Rhodium - $923

 

Alaska Permanent Fund

website

 

Fund value December 30, 2024 - $81,424,000,000

PFD payout from ERA, Fiscal years 1980-2024: $43.9 Billion

$100 Billion total earnings over lifetime of the Permanent Fund

Feedback is always welcome.

Have a great week!

 

Cathy 

 

Personal Contact:

907.465.4843

sen.cathy.giessel@akleg.gov

 

Past Newsletters on my website



My Staff:

·    Chief of Staff: Jane Conway (from Soldotna)

·    Legislative Staff: Paige Brown (from Anchorage/Girdwood)

·    Resources Committee Staff: Inti Harbison (from Anchorage)

·    Office Manager: Jane Rohr (from Homer)

 

 

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Senator Cathy Giessel's Newsletter | 12701 Ridgewood Rd | Anchorage, AK 99516 US