Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

January 30, 2025

Dear friends and neighbors,

 

The Senate Resources committee opened our work last week with hearings on Cook Inlet gas supply for 70% of Alaska's population.

 

We learned that at least one company with gas on their lease is held back by limited access to the only drill rig in Cook Inlet, that is owned by another company. This began a discussion among committee members about AIDEA (Alaska Industrial Development and Export Authority) using their funds to buy a drill rig and making it available to lease holders in Cook Inlet.

LISTEN HERE about other constraints such as the availability of boats & helicopters to resupply the offshore platforms.

 

Enstar presented their public information regarding importing gas. That presentation can be HEARD HERE

 

Alaska Gasline Development Corporation (AGDC) spoke to the committee, advocating that the gas pipeline from the North Slope is closer than ever. Committee members had many questions. In addition, the committee heard from Wood Mackenzie (a consultant) who spoke about a study they did comparing AGDC plan with the imported gas plan. If you LISTEN HERE, you will note that the committee members seriously questioned the inadequate date and outdated numbers that were used by Wood Mac in their work.

 

If you have questions about the above topics, or anything Resource related, please call my office (907.465.4843). If I'm not available, ask to talk to Inti Harbison, the Resources committee aide. Inti is very equipped to answer your questions.

 

ENSTAR briefs regulators on Nikiski LNG import proposal. KDLL

ENSTAR Natural Gas’ proposed liquefied natural gas import project in Nikiski got mixed reactions from state commissioners Wednesday. The company hopes the project will bridge the gap between natural gas supply and demand. But some on the commission worry the proposal may be too little, too late.

 

Enstar sues Hilcorp in dispute over supply contract, citing potential for 'catastrophic' gas shortage. ADN

One Texas-owned company controls natural gas supply for 70% of Alaska homes and businesses.

Detail: Hilcorp has more than 80% of the leases, owns the only drill rig, has vast majority of gas storage, and controls support services. One Texas owned company decides who brings gas to Alaska homes.

 

 

Items in this Newsletter:

·     Fall Revenue Forecast

·     Repealing the 90-day session limit

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

·     Resource Values, Permanent Fund

Fall Revenue Forecast

On Friday, Senate Finance met to hear the Department of Revenue's Fall 2024 Forecast Presentation. You can watch the whole meeting here, or take a look at the presentation here.

 

The graphic shows what a dependence Alaska has on Federal funds at 40.7%! The freeze on Federal funds was very impactful for us. On the reaction in Alaska to a partial federal spending freeze: “For me, it was pandemic-level chaotic.” (Nils Andreassen, Alaska Municipal League).

 

Investment earnings is 37.3% of our revenue; this is Permanent Fund earnings!

 

Compare that to Petroleum revenue at only 13.8%.

 

The Permanent Fund now provides more than 60% of the state-generated income for state services like schools, safety, roads, and more.

 

In 1976 the people of Alaska voted to create the Permanent Fund because they wanted to ensure funds coming from oil would be invested, grow, and supply future generations with funds.

 

That is the reality now.

This is the last slide presented by the Office of Budget and Management, to Senate Finance.

The meeting recording IS HERE. Specific discussion of this 10 year plan from the Governor was at THIS MEETING.

 

The RED numbers are negative numbers - in other words, overspending of available funds/deficits.

 

The Governor's plan puts the State into deficit spending totaling $12 billion in 2035.

It is clear from the document that the very large PFDs are the driver of the deficit. The Governor has invited the Legislature to change the law that is about these large PFDs.

 

You will see the Legislature take on this serious task in the coming weeks.

Repealing the 90-day session limit

 

One of my bills this year, SB 34, is looking to eliminate the statute requiring that legislative sessions be no longer than 90 days.

 

The statute was originally a ballot proposition presented to voters in 2006 and enacted in 2008. Since then, the legislative session has lasted 90 days or less three times—twice after the statute was enacted, and again in 2020 due to COVID-19. When the legislature adjourned early in 2020, we had to return for an extended 217-day session the following year to make up for lost time.

 

A 90-day session simply isn't enough time to complete the necessary work in Juneau. This statute also creates confusion for the public, who often expect us to adjourn within 90 days. Repealing this statute would eliminate that confusion, while still keeping us bound by the Constitution's 121-day limit, which is the length of most legislative sessions anyway.

Senate President Gary Stevens Issues Statement After Governor Dunleavy’s State of the State Address

 

JUNEAU, AK – Tonight, Governor Mike Dunleavy delivered his annual State of the State address to a joint legislature. Senate President Gary Stevens, R-Kodiak, issued the following statement:

 

"Alaska faces significant challenges, including inadequate education funding, a seafood industry in crisis, the need for affordable and reliable energy along the Railbelt, and ongoing workforce shortages. While there may be areas where the Governor and the Senate differ, we recognize the shared responsibility to address these challenges for the benefit of all Alaskans. The Senate remains committed to crafting effective policies and balanced budgets to ensure essential services for Alaskans.

 

“Among these challenges, education stands out as one of the most urgent. Classroom sizes in many of our schools exceed 40 students, schools are closing across all districts, and essential programs—from advanced placement courses to extracurricular activities—are being cut due to insufficient resources. We must tackle this crisis now or risk falling further behind. Education is a cornerstone of our economy, and a strong public education system is essential if we want to attract young families to Alaska and provide them with opportunities for growth and success.

 

“But we cannot just stop there. We continue to lose our best and brightest to outside opportunities with which we are not competitive. Changing our approach to recruiting and retaining a highly qualified workforce will help our state and local economies, increase public safety, and provide opportunities for the next generation to continue to call Alaska home.

 

“Despite these challenges, Alaska’s future is bright. Over the next 112 days, our responsibility is to identify solutions and develop them into the best possible policies. The Senate is already starting off strong on this process and looks forward to working with the Governor, the House, and stakeholders to achieve these goals.”

Current Topics

World's top snow art. Axios

The World Snow Sculpting Championship in Stillwater, Minnesota, crowned a new winner.

 

An ancient Dene cache discovered at JBER highlights Anchorage's Indigenous history. Alaska Public Media

Archeologists found a cache near Cook Inlet this summer that dates back almost a thousand years. The discovery is another testament that the Dene people have been the stewards of the lands in Southcentral Alaska for at least a millennia, tribal officials said.

 

Opinion: Trump push to rename Denali is an insult to Alaskans. ADN

President-elect Trump has injected a jarring note into Alaska affairs with his call for the name of Denali to be restored to Mount McKinley. Historical analysis confirms that William McKinley is the wrong public figure for Alaskans to commemorate. He was an imperial colonialist who viewed colonized populations as inferior people in need of “uplifting” by their white Christian betters. He oversaw the creation, or at least vast expansion, of the American colonial empire with the occupation of Cuba, Puerto Rico, Guam, the Philippines and Hawaii.

 

Alaska House resolution urges Trump administration to keep the name Denali. Alaska Public Media

The House resolution, sponsored by Rep. Maxine Dibert, D-Fairbanks, says the name Denali is “deeply ingrained in the state’s culture and identity” and urges Trump to maintain Denali as the peak’s official name in federal databases.

 

How China's DeepSeek Outsmarted America. The Wall Street Journal

SINGAPORE—Take a team of young Chinese engineers, hired by a boss with disdain for experience. Add some clever programming shortcuts, and a loophole in American rules that allowed them to get advanced chips.

 

DeepSeek Chief's Journey From Math Geek to Global Disruptor. The Wall Street Journal

Artificial-intelligence models from China’s DeepSeek, the company led by Liang, have taken the world by surprise, racing to the global top 10 in both performance and popularity. The company has done it with less-advanced chips than those available in the U.S., jolting technology executives in Silicon Valley, politicians in Washington and investors around the globe.

 

 

Arctic Issues

This icebreaker has design problems and a history of failure. It's America's latest military vessel. ADN

The icebreaker Aiviq is a gas guzzler with a troubled history. The ship was built to operate in the Arctic, but it has a type of propulsion system susceptible to failure in ice. Its waste and discharge systems weren’t designed to meet polar code, its helicopter pad is in the wrong place to launch rescue operations and its rear deck is easily swamped by big waves. On its maiden voyage to Alaska in 2012, the 360-foot vessel lost control of the Shell Oil drill rig it was towing, and Coast Guard helicopter crews braved a storm to pluck 18 men off the wildly lurching deck of the rig before it crashed into a rocky beach. An eventual Coast Guard investigation faulted bad decision-making by people in charge but also flagged problems with the Aiviq’s design. But for all this, the same Coast Guard bought the Aiviq for $125 million late last year.

(My comment: Meanwhile, China and Russia are building a fleet of nuclear powered, state-of-the-art icebreakers to cruise our borders in the Arctic.)

 

Denmark unveils $2.8 billion in Arctic defense, including ships, drones, & satellites. Eye on the Arctic

 The security and political tensions between Russia, China, and the USA have spread to the Arctic, and the goal of low tension in the region is under pressure.”

 

 

Economy

Alaska's agriculture industry poised for growth in 2025. Alaska Division of Agriculture

 

Alaska lawmakers told by DOR to expect state revenue losses in near future. Alaska's News Source

State revenue is expected to decrease in the next couple of years after a slight increase for Fiscal Year 2025, according to Department of Revenue leadership, who addressed the House Finance Committee Thursday afternoon.

 

Charted: The last U.S. population surge. Axios

Any increase in GDP is, mathematically, just the increase in the number of workers multiplied by any increase in their productivity.

 

 

Education

ARE awarded DOE energy education grant. Mining News North

In support of fostering a new generation of Alaskan natural resource workers, the U.S. Department of Energy has awarded the Alaska Resource Education (ARE) $300,000 to fund the mission of spreading awareness about careers in the energy sector.

 

State education board proposes statewide cellphone policy. Alaska Public Media

The Alaska Board of Education and Early Development released a draft statewide cellphone policy during its Wednesday meeting. The policy allows school districts to restrict student cellphone use in class, with exemptions for medical reasons and other educational purposes. The board recommends districts adopt the restrictions, but the policy stops short of requiring it.

 

Dunleavy's recycled education 'reform' plan fails. Reporting from Alaska

“The governor drew an invalid conclusion that Peterson had found Alaskan charter schools more effective than neighborhood schools. Peterson did not compare charter and neighborhood schools, but simply compared charter schools across the country,” they said. “We find that, after accounting for students’ socioeconomic status, the charter schools and neighborhood schools in Alaska communities which had charter schools at the time of the Peterson study do not statistically differ in the percentage of their students scoring proficient in the English language arts standards…We find instead that proficiency declines as family income declines,” Zirbes and Bronson wrote. Zirbes contacted Peterson, who declined to provide data about sample sizes, names of the charter schools in the sample or test score summaries.

(My comment: The simple lesson in this is to always check the data and assumptions made by the researchers. In this case I suspect the researcher was promoting their own bias. Thank you to our Alaska teachers who dug into the data and demonstrated the real facts.)

 

Alaska House plans fast action on bill that would boost school funding and tie it to inflation. Alaska Public Media

Introduction of new education legislation part of closing out first week of session. Alaska's News Source

Alaska House to 'expedite' consideration of education funding increase. ADN

Education matters to every Alaskan: parents, employers, workforce.

 

Districts across Alaska are considering closing schools. Alaska Public Media

Among the most visible signs of Alaska’s shrinking population: several school districts are considering school closures. School districts in Anchorage and Kodiak have already decided to close at least one school later this year, and the Fairbanks North Star Borough School Board will vote on Feb. 4 whether to close five elementary schools. Meanwhile, districts in KetchikanSitka and the Matanuska-Susitna Borough have also warned residents of looming budget shortfalls that may result in school closures or consolidation of programs.

 

 

Fisheries

Invasive freshwater fish able to swim through Alaska's Cook Inlet, study proves. Alaska Beacon

It was the first documented case in North America of invasive northern pike, considered an exclusively freshwater fish, swimming in an estuary, an area where freshwater and saltwater meet.

 

 

Energy

Rolling blackouts could loom for urban Alaska as natural gas crunch intensifies. Northern Journal

(My comment: This headline is overly dramatic; rolling blackouts are not imminent. It’s a fact that a shortage is coming in a couple years. The utilities are working to make sure no rolling blackouts or brownouts become real. The Legislature plays nearly no role in that. This is a private sector business decision by utilities that are mandated and regulated to provide the lowest cost to consumers. Legislators will only gum up this process.)

 

Trump is desperate for more energy, as long as it's not from the wind. ADN

Cutting production of wind power is perhaps the most paradoxical aspect of Trump’s sweeping plan to reorient America’s energy economy, which he and his energy team contend will lower costs for consumers while boosting the amount of electricity available for economic growth.

 

$50 million gas line question goes unanswered. Reporting from Alaska

The Alaska Legislature has yet to be given a good reason to hand over the $50 million that Gov. Mike Dunleavy wants for the Alaska Industrial Development & Export Authority for a gas pipeline study.

(My comment: I’m told, by a Senate Finance Committee member, that we’ve invested about $650 Million in work on a North Slope gas pipeline, not counting salaries for the staff of the Alaska Gasline Development Corporation (AGDC). The President of AGDC is the highest paid employee of the state, so salaries will push that total number a lot higher. The question is: how much do we want to keep putting into this project?)

 

 

Politics

Alaska Legislature opens new session on time and in order, a first since 2017. Alaska Beacon

For the first time in eight years, the Alaska Legislature has opened its two-year session without a deadlock in its lower chamber.

 

The Alaska Legislature by the numbers. ADN

27 (correction – 26) Number of women in the Legislature. The Alaska House will have a female majority this year, for the first time in the state’s history. In the Senate, meanwhile, only a quarter of members are women.

 

Alaska senators outline key priorities in the opening day of the 34th Legislature. Juneau Empire

Giessel said when it comes to energy in the state it’s great that Alaska will be open to resource development following President Donald Trump’s executive orders signed on Monday. However, she stressed the importance of the state managing its own resources. “By throwing open all of the regulations related to resource development we could be jeopardizing our lands and waters,” she said. “This is the time for us to look at managing our own land and water.” There is also a special committee on Arctic affairs that will review security, defense and sustainability of Alaska, and the role the state plays in making the U.S. an Arctic nation.

 

Here are the Alaska legislative priorities to watch this session. ADN

Giessel is again expected to lead an effort to reform Alaska’s public-sector retirement system in an effort to boost the state’s recruitment and retention of public employees, including teachers, public safety workers and others. Giessel foreshadowed the argument she would make in favor of the overhaul: Though the new pension system was expected to cost the state $46 million annually in new expenses, it was simultaneously expected to save the state more than $70 million a year in costs associated with staff turnover and filling vacated positions.

 

'A lot of work ahead of us': Alaska lawmakers talk priorities on smooth first day of session. Alaska Public Media

Sen. Cathy Giessel, R-Anchorage, who shepherded a pension bill through the Senate this year, said the state was feeling the squeeze with large numbers of positions left vacant. “Doing nothing is costing us right now,” she said. Giessel said she also expected to discuss energy issues early in the session, too, as the Railbelt rides out another winter with gas supplies dwindling. “We'll be talking about Cook Inlet gas, the potential for importing, we'll be talking about the LNG pipeline,” she said. Earlier this month, state officials announced a framework agreement with Glenfarne Group, based in New York and Houston Texas, to take over development of the long-dreamed gas pipeline between the North Slope and Southcentral. The announcement came after the state’s development agency offered a $50 million letter of credit to backstop front-end engineering design work — and Giessel said she’s skeptical. “We're offering now a completely risk-free $50 million to a company,” she said. “We don't know what the product is going to be, and if it's a nothing product, we still are paying $50 million.”

 

Testing new limits: Trump token. Axios

Most Americans don't realize there are basically no limitations on presidents profiting off their reins of power through new businesses or business deals. Thanks to the Supreme Court, presidents also enjoy the presumption of immunity for "official acts" if they're ever accused of crossing any legal lines.

 

State celebrates Trump support for LNG project, some lawmakers remain skeptical. Alaska Public Media

Anchorage Republican state Sen. Cathy Giessel criticized a $50 million backstop Alaska Industrial Development and Export Authority, or AIDEA, OK’d for a company to update the project’s 10-year-old engineering and design work. The money was included in the governor’s proposed budget for the upcoming fiscal year. “We’re offering now a completely risk-free $50 million to a company,” she said. “We don’t know what the product is going to be and if it’s a nothing product, we are still paying $50 million. I question whether it was AIDEA’s authority to take the $50 million they actually owed us as a dividend and appropriate it for this.” Bethel Democrat Sen. Lyman Hoffman co-chairs the Senate Finance Committee. He says energy is a priority this session, but called AIDEA’s backstop a “bad precedent.”

 

Dunleavy proposes new limits on early voting in Alaska. ADN

Alaska Gov. Mike Dunleavy is proposing legislation that would shorten the window for early voting in statewide elections and make other changes to the way elections are conducted. The bill would require all mail ballots to be received by the Division of Elections by Election Day, altering statutes that have existed for decades. Currently, ballots must be postmarked by Election Day but can be received up to 10 days later for most voters, and 15 days after Election Day for overseas voters.

 

Speaking with legislative leadership in Juneau. Alaska Insight

PODCAST: What are the goals for this coming session? Senate President Gary Stevens, along with one of my Representatives, Chuck Kopp, outline goals.

 

Alaskans don't have a right to correct errors on absentee ballots, state judge rules. ADN

An Anchorage judge has ruled that Alaskans don’t have a constitutional right to correct errors they make on absentee ballots. Lawyers from the American Civil Liberties Union of Alaska, the Native American Rights Fund and the firm Perkins Coie sued the state in 2022, arguing that the lack of a process to fix defective by-mail ballots violated the Alaska Constitution.

(My comment: The Legislature needs to change this. We have a bill to do that.)

 

Gov. Dunleavy reintroduces bill to penalize unpermitted public protests as felonies. Alaska Beacon

One year after a similar proposal failed to pass the state legislature, Alaska Gov. Mike Dunleavy has reintroduced legislation that could result in felony charges against homeless Alaskans and the organizers of unpermitted protests.

 

 

Health Care

Virus season roars back with a "quad-demic". Axios

Transmission of influenza A, COVID and RSV is "high" or "very high" across much of the U.S. at the same time norovirus cases are well above normal levels, CDC and wastewater surveillance data shows.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (1/29/25): $74.37

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 (1/28/25): 489,476 bpd

 

 

Oil markets may help Trump on prices, but "drill, baby, drill" is another story. Axios

Domestic output is already at record highs and rising, outpacing other nations' increases in recent years. "[T]here is tension between growing oil production and lowering prices at the same time," their note states. While costs in major shale plays are manageable, there's a "long tail of wells that require much higher oil prices.

 

The world's largest zinc mine is fading. Mining News North

Teck Resources Ltd.'s Red Dog Mine in Alaska produced a whopping 555,600 metric tons (1.22 billion pounds) of zinc during 2024, accounting for roughly 5% of all the galvanizing metal mined on Earth last year. The phenomenal Northwest Alaska zinc-lead-silver-germanium mine, however, has reached its apex. Over the coming years, Red Dog's output and status as the world's largest zinc-producing mine is expected to fade as crews mop up the last of the ore that has fed the mill for more than three decades.

 

Pogo produces 279,427 oz gold in 2024. Mining News North

Northern Star Resources Ltd. Jan. 21 announced that its Pogo Mine produced 72,786 ounces of gold during the final three months of calendar year 2024, pushing the annual total to the brink of 280,000 oz.

 

Oil industry unlikely to rush to Alaska despite Trump's call to drill. Reuters

Drilling in the Arctic and Alaska is a high-risk endeavor, involving decades of work and billions of dollars of investment.

 

Precious Metal Prices

January 29, 2025

Gold - $2775.01

Silver - $31.08

Platinum - $968.50

Palladium - $1005.80

Rhodium - $2690.00

 

Alaska Permanent Fund

website

 

Fund value January 28, 2025 - $82,157,100,000

PFD payout from ERA, Fiscal years 1982-2024: $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)

·     Legislation Aide: Paige Brown (from Anchorage/Girdwood)

·     Resources Committee Staff: Inti Harbison (from Anchorage)

·     Office Manager: Jane Rohr (from Homer)

 

Copyright © 2025. All Rights Reserved.

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