Senate Majority Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

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Issues affecting

your family, community and jobs.

Legislative Day 115

May 9, 2024

Dear Friends and Neighbors,

 

Photo: Lathrop High School’s Academic Decathlon Team (Fairbanks, Alaska) won first place among medium-sized schools at last month’s competition in Pittsburgh, Pennsylvania. This team won a record number of awards this year.

Join me in applauding and congratulating these young people and their fantastic teacher, Chris Benshoof, Decathlon coach!

(I'm super proud of the students of my high school alma mater!)

 

Alaska Mining Day - May 10

It was an honor for me to carry SB 123, which passed in 2011 with Bipartisan cosponsors and support. It was the first bill that I sponsored and saw passed as a state senator.

 

The bill stated: Alaska Mining Day is established on May 10 of each year to recognize and honor the intrepid individuals and industry that played an enormous role in developing and settling the territory and the state and that continue to contribute to the economy of the state. Mining served as a driving force behind the creation of the Alaska Railroad in the early twentieth century, and continuing development of the mineral resources of the state, including rare earth minerals, contributes to the security and economy of the state and the nation. Alaska Mining Day may be observed by educational and celebratory events, projects, and activities to increase public awareness of and appreciation for mining and miners in Alaska and the many uses for the minerals mined in the state.

 

These statements are even more true today, 13 years later. Mining remains our best future for resource development potential, financial impact, good paying jobs, and private sector economic growth. 

 

If it can’t be grown, it must be mined.

 

Major Policy Work this Week:

House Bill 50 - Carbon Capture, Utilization, and Sequestration: This is a top priority of the Governor. The bill predominately targets sequestration (storage) in Cook Inlet gas and oil reservoirs that have been emptied. Japan is very interested in possibly paying Alaska for this service and was in Washington, DC last week, discussing this with the Federal government. Japan is looking at other areas in the Pacific basin as well.

 

HB 50 was reviewed in my Senate Resources committee. Other policies that the Resources committee put into the bill included the release of Cook Inlet seismic information for use by developers, Cook Inlet natural gas storage regulation of price by the Regulatory Commission of Alaska (RCA), and a funding policy called Reserve-Based Lending which would allow producers in Cook Inlet to secure loans from the Alaska Industrial Development and Export Authority (AIDEA).

 

Also added to HB 50 was a policy that would require the Texas owner of Hilcorp to pay corporate income tax in Alaska. Right now, Alaska has no personal income tax or tax on IRS designated S-corporations. What this means is that Hilcorp's owner and the company itself has a huge tax advantage loophole that the policy hoped to correct. Correcting this corporate tax policy loophole would mean approximately more than $100 Million to the State every year.

 

At this time, the Senate Finance committee has pared back HB 50 policies related to seismic, natural gas storage, reserve-based lending, and the tax provision for IRS-designated S-corporations.

 

Senate Bill 217 Integrated Transmission Systems

This bill would create a modernized, efficiently-managed transmission grid for the Railbelt from Homer to Fairbanks. This would

·     remove "wheeling rates" (that is the "toll" that electrons pay as they pass through differently owned portions of the transmission "highway")

·     provide open access to Independent Power Producers (renewable energy like solar, wind, geothermal, hydro)

·     increase the surcharge that the Regulatory Commission of Alaska (RCA) could collect to support its services (regulating the cost of energy for consumers). An important example of this is the rate increase being requested by Chugach Electric that will significantly raise electric rates in Anchorage, and ripple out to the rest of the transmission grid; RCA is reviewing this request and will determine if this is justified.

·     create an Alaska Energy Authority (AEA) Board. (Currently AEA shares a board with AIDEA, which means energy issues get minimal attention.)

The bill is in Senate Finance right now.

 

Royalty Relief on Cook Inlet Oil & Gas

Purpose: Increase natural gas production from Cook Inlet to supply the Railbelt with sufficient supply of electric power and heat.

Bills being considered: SB 194, HB 223 and HB 393

If you have lived in Alaska more than 14 years, you will remember the "brown out" exercises that Anchorage was having in 2012-2013 due to the impending shortage of natural gas development from Cook Inlet.

The Governor stated, in October 2023, that he wished to reduce the royalty payment levied on oil & gas producers in the Inlet to incentivize them to explore for and produce more natural gas.

My Senate Resource committee is exploring the cost of such actions. On May 8 we had a robust conversation with the Dept of Natural Resources and our consultants, GaffneyCline on these costs. You can listen in to the conversation right here. The committee is continuing work on this. Goal: incentivize gas production but...not make the same mistake we made in 2014 when we gave out cash to companies to cover their expenses in Cook Inlet. Big, expensive mistake that we repealed in 2018. We want to "get it right" this time.

 

 

Items in this Newsletter:

·     What Do Women Think About Retirement

·     Alaska DOT Bike Month

·     Alaska Trends May Issue

·     Senate Committee Meetings

·     Current Topics: Education, Economy, Minerals, Healthcare, Politics

·     Resource Values, Permanent Fund

WHAT DO WOMEN THINK ABOUT RETIREMENT?

Alaska DOT&PF Celebrates Alaska Bike Month

DOT&PF Teams Up with Department of Health to Support Active Transportation

 

(ANCHORAGE, Alaska) – Governor Mike Dunleavy has proclaimed May 2024 to be Bike Month in Alaska. Alaska joins states across the nation in celebrating Bike Month, established in 1956. The state offers spectacular scenery for biking and recreation across a multitude of roads, trails, and bike lanes. The Alaska Department of Transportation & Public Facilities (DOT&PF) is dedicated to building non-motorized access throughout the state, as part of comprehensive transportation corridor projects and stand-alone non-motorized improvements.

 

Biking is an excellent way to combine physical activity with transportation to work, school, home, or shopping. Bicycling and walking infrastructure connects people to places they regularly visit, increasing levels of physical activity for transportation, recreation, and all other purposes.

 

The Alaska Department of Health and DOT&PF are working together to educate the public on the intersection of transportation and public health, sharing materials on safety and health practices related to transportation.

 

The two departments are also disseminating information on how to enjoy biking safely, recommending that bicyclists be visible and predictable at all times, wear helmets and bright clothing, and use signals to ensure personal bike safety. Motorists are asked to be on the lookout for bicyclists and pedestrians at all times, to moderate speeds, and to give non-motorized users plenty of room when driving near them.

 

"National and State Bike Month is a wonderful opportunity for Alaskans to explore their communities on two wheels," said DOT&PF Commissioner Ryan Anderson. "Whether you bike for leisure, fitness, or as a means of transportation, we are committed to making biking safe and enjoyable for everyone."

 

The Alaska Department of Transportation and Public Facilities oversees 237 airports, 9 ferries serving 35 communities, over 5,600 miles of highway and 839 public facilities throughout the state of Alaska. The mission of the department is to “Keep Alaska Moving through service and infrastructure.”

Senate Committee Meetings

Week of May 2-8

 

Finance

May 2 - SB 217: Integrated Transmission Systems

 

May 3 - HB 66: Controlled Substances, Homicide, Crimes; Sentencing; SB 217: Integrated Transmission Systems

 

May 6 - SB 217: Integrated Transmission Systems

 

May 6 - HB 50: Carbon Storage; HB 219: Repeal Assistive Technology Loan Program

 

May 7 - HB 219: Repeal Assistive Technology Loan Program; SB 125: Trapping Cabins on State Land; HB 50: Carbon Storage

 

May 8 - HB 50: Carbon Storage

 

May 8 - Report: AIDEA's March to Autonomy

 

 

Community and Regional Affairs

May 2 - SB 264: Loans Under $25,000; Payday Loans

 

May 7 - HB 347: Property Assessment

 

 

Education

May 3 - SB 266: Correspondence Study Program: Student Accounts

 

May 6 - SB 266: Correspondence Study Program: Student Accounts; HJR 17: Support Federal Trust and Healing Commission

 

 

Judiciary

May 2 - HB 66: Controlled Substances, Homicide, Crimes; Sentencing; SB 223: Assistant Adjutant General Appointment

 

May 3 - HB 29: Insurance Discrimination; HB 97: Self-Storage Units; Liens; Sales

 

May 6 - HB 228: Mental Health/Psychedelic Medicine Task Force; HB 238: Criminal Mischief 3rd Degree

 

May 8 - HB 29: Insurance Discrimination

 

 

Labor and Commerce

May 3 - SB 225: Occupational Licensing Fees; HB 253: Federally Designated Refrigerants; HB 17: Contraceptives Coverage: Insure; Medical Assistant; HB 237: Temporary Permit for for Lapsed Nurse License; HB 309: Delegation of Routine Optometry Services; HB 254: Block Pornography to Minors; Social Media

 

May 6 - HB 88: Warehouse Work Quotas; HB 203: Payment of Wages; Payroll Card Account

 

May 8 - HB 88: Warehouse Work Quotas; HB 203: Payment of Wages; Payroll Card Account; HB 226: Pharmacies/Pharmacists/Benefits Managers; HB 189: Sale of Alcohol by Persons Under 21; HB 233: Rates: Motor Vehicle Warranty Work; HB 146: Regulation of Fireworks

 

 

Resources

May 3 - HB 50: Carbon Storage

 

May 6 - SB 194: Reduce Royalty on Cook Inlet Oil & Gas

 

May 8 - SB 194: Reduce Royalty on Cook Inlet Oil & Gas

 

 

State Affairs

May 2 - HB 129: Voter Registration; SB 286: Crime Victim Restitution; HB 81: Vehicles/Boats: Transfer on Death Title; HB 146: Regulation of Fireworks; SB 229: Gun Violence Protective Orders

 

May 7 - HB 330: Restrict Prisoner Access Digital Devices; HJR 18: Social Security Benefit Reduction Repeal

 

 

Transportation

May 2 - HB 395: Transfer of Railroad Property

Current Topics

Hats to go at the Kentucky Derby. Axios

(My Comment - I have no idea that this was a “thing”!)

 

Wife to auction off late husband's one-of-a-kind wagon. Alaska's News Source

Radio Flyer Car: There’s a car currently up for auction in Anchorage that almost everyone has a childhood connection to. It’s not a station wagon—but it is a wagon.

 

Report: Internal emails at Alaska Permanent Fund show financial manager raising ethical concerns about fund's vice chair. ADN

A top financial manager with the $80 billion Alaska Permanent Fund Corp. in emails raised concerns about efforts by the fund’s vice chair to set up meetings between Permanent Fund staff and business associates or companies with ties to a company she owns.

 

The U.S. was supposed to get keys to a new heavy icebreaker this year. Instead, construction is years late as costs soar. Alaska Public Media

The Coast Guard’s plan to build three heavy icebreakers is five years behind schedule and the price has ballooned to $5.1 billion from an initial estimate of less than $2 billion, according to projections from Congressional Budget Office and other watchdogs.

 

 

Economy

Alaska lawmakers aim for last-minute review of public pension reform. ADN

Amid high vacancies and turnover in the ranks of public employees, some lawmakers are hoping that a major overhaul of Alaska’s public retirement system could be adopted in the final days of the legislative session.

 

Permanent Fund should divest from a bad investment bet. ADN

Once again, Alaska Permanent Fund Corp. trustee Gabrielle Rubenstein is making headlines for all the wrong reasons. 

 

$100 million-plus tax boost on oil company Hilcorp added to carbon storage bill. ADN

The House bill was amended in the Senate Resources Committee on Friday to close the so-called S-corporation loophole. Hilcorp, which is privately owned, does not pay state corporate income taxes. Hilcorp is among Alaska’s top oil companies as the current operator of the Prudhoe Bay oil field, and is by far the largest producer of Cook Inlet natural gas. Luke Saugier, senior vice president at Hilcorp Alaska, sent an email to electric utilities and Enstar: “Due to this new tax’s vague and uncertain language, as well as the provision not being sufficiently modeled, we are unsure what the impact will be on our ability to meet your gas supply needs as we will need to re-examine the investment we had planned for Cook Inlet,” he said. ”Unfortunately, it will also negatively impact our ongoing negotiations related to gas storage options, jack-up rig availability, new gas supply contracts, and could harm our ability to meet existing interruptible contracts.”

 

Ratings firms upgrade Alaska's credit rating, outlook. Alaska Beacon

The two largest credit rating firms issued positive reports for Alaska’s state government last week, noting growing state budget reserves and progress on future North Slope oil projects.

 

 

Education

Judge grants stay until June 30 on correspondence school ruling, says state 'mischaracterizes' order. ADN

Zeman wrote Dunleavy’s administration “mischaracterizes and misreads” the court’s April decision. The judge went on to reiterate that his decision only affects two state statutes that expanded correspondence programs when they were enacted in 2014. Those statutes were originally proposed by Dunleavy in 2013, when he was a state senator. Correspondence programs, which generally allow homeschooled students to receive public funds to pay for educational materials under the direction of certified teachers, long predated Dunleavy’s proposal. That proposal limited the guardrails that the state and districts could implement on the uses of correspondence allotments.

 

Dunleavy says lawmakers shouldn't pass bills to address homeschool decision. Lawmakers say that's risky. Alaska Public Media

Gov. Mike Dunleavy is calling on lawmakers to pause their efforts to address a court ruling that threatens the state’s homeschool system, saying they should wait for a ruling from the Alaska Supreme Court.

 

In reversal, Gov. Dunleavy signals support for correspondence school program legislation. ADN

In a course reversal, Gov. Mike Dunleavy said Friday that he would support legislation to ensure correspondence schools can continue to operate, after an Anchorage Superior Court judge last month found some public spending on the programs violated the state constitution.

 

State lawmakers hear public testimony on possible legislative actions to ruling on homeschools reimbursements. Alaska's News Source

As the State of Alaska appeals a ruling that would delay a decision on Alaska’s homeschool correspondence funding until the end of June, public testimony was heard Friday in Juneau on separate House and Senate bills that are viewed as possible, legislative actions to a judge’s ruling.

 

Competing Alaska House and Senate bills propose fixes to homeschool laws ruled unconstitutional. Alaska Public Media

Just 14% of students at Alaska’s largest statewide correspondence school participated in state reading and math tests last year, but, speaking remotely alongside Dunleavy, Education Commissioner Deena Bishop said that’s no cause for alarm. “I don’t have a concern. In fact, statistically speaking, a 14% return is an excellent way to understand how, you know, a survey or some type of program, if you look at any type of research, is doing,” Bishop said.

 

 

Politics

As session end looms, Alaska lawmakers juggle bills addressing Southcentral natural gas crunch. Alaska Beacon

Because the issue is so important, several bills are making progress, said Senate Majority Leader Cathy Giessel, R-Anchorage. Even as lawmakers in both the House and Senate debate the details, they are united in a common search for solutions, she said.

 

Alaska gas line leaders ask lawmakers to support year-end deadline for signs of progress. ADN

“At some point, you’ve got to wind it down if there’s not a project, and those discussions will go on between now and when we wrap up conference committee with the administration,” Stedman said. Anchorage Democratic Sen. Bill Wielechowski said Alaska LNG and the gas line corporation should probably be “shut down.” He said a variety of trans-Alaska gas line projects have come and gone over the decades, never to be built.

 

Energy bills intended to address Cook Inlet gas shortage in doubt as end of legislative session approaches. ADN

Lawmakers have broadly said that passing energy bills this year is a top priority. But the Legislature did not have an oil and gas consultant under contract until April, which could threaten some bills from passing into law.

 

Ranked choice voting works for the overseas military. Why not for everybody? Governing

It’s difficult to understand. RCV is such an effective tool that military voters can continue using it as they have for years. So why this panicked rush to ban it for others? It doesn’t make sense. Here’s why RCV helps, especially in races with more than two candidates that might be forced into a runoff. In an RCV election, voters can rank the candidates in order of preference — first choice, second choice and so on. If no candidate receives more than 50 percent of the vote, the race goes to an “instant runoff.” The candidate with the fewest votes is eliminated. Voters who ranked that candidate as their first choice have their vote count for their second choice. This process repeats until a candidate wins with a majority of the vote.

 

Judy Woodruff discusses political division on America. Alaska Insight

Longtime PBS NewsHour anchor Judy Woodruff has been traveling the country talking to Americans in the lead up to the next Presidential election to explore the causes and effects of intense political division. Woodruff was in Alaska recently to report on the state’s open primary system and ranked choice voting and she joins host Lori Townsend to discuss her series on this Alaska Insight.

 

Alaska Senate committee proposes same-day voter registration, but key Republicans oppose the idea. Alaska Beacon

The Senate State Affairs Committee turned the bill into a comprehensive elections overhaul with a major amendment that incorporates elements of other bills: 

·     Voters would be allowed to register for an election within 30 days of Election Day, something currently allowed only for presidential votes. 

·     The Division of Elections would have to create a method for voters to fix errors on absentee ballots that have already been mailed.

·     Absentee ballots would no longer require the signature of someone who witnesses the voter fill out the ballot.

·     Ballots filled out by voters with special needs couldn’t be rejected because of errors by poll workers or the person delivering the ballot to the polls.

·     If someone uses AI computer software to fake a candidate’s appearance in an election ad, the fake would have to include a legal disclaimer.

·     A candidate would be able to transfer leftover campaign donations to a legal fund for election-related lawsuits.

·     The Division of Elections would have to develop a cybersecurity program and develop procedures for audits intended to reduce risks.

 

Alaska House votes to require that schools stock overdose-reversal drugs. Alaska Beacon

Alaska schools may soon be required to stock drugs that reverse opioid overdoses.

 

Alaska House nears vote on big increase for public school maintenance statewide. Alaska Beacon

A key Alaska House committee has approved funding for the most school maintenance projects in several years — from new roofs to copper pipe and electrical replacements.

 

Alaska House committee kills state-owned corporation's plan to borrow up to $300 million. Alaska Beacon

Members of the Alaska House have refused a request by the Alaska Industrial Development and Export Authority for permission to borrow up to $300 million for unspecified mining-related projects.

 

 

Healthcare

Alaska officials announce "One Pill Can Kill" campaign to address fentanyl crisis. Alaska Public Media

Alaska officials have announced a new awareness campaign aimed at highlighting and combating the growing danger of the synthetic opioid fentanyl.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (5/8/24): $86.12

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 (5/8/24): 463,999 bpd



Pogo mine gold reserves drop slightly. Mining News North

According to the new calculation, Pogo hosts 9.99 million metric tons of indicated resource averaging 9.8 grams per metric ton (3.14 million ounces) gold and 10.5 million metric tons of inferred resource averaging 10.5 g/t (3.43 million oz) gold.

 

Gas shortage planning. Petroleum News

In recent months the electric utilities in the Alaska Railbelt have conducted presentations to the Regulatory Commission of Alaska about contingency arrangements for dealing with power shortages, should normal electricity supply arrangements fall short of demand.

 

ANS slips to mid-$80s. Petroleum News

Alaska North Slope crude plunged $2.77 May 1 to close at $84.05 per barrel, as West Texas Intermediate slumped below $80 -- tumbling $2.93 to close at $79 -- and Brent plummeted $4.42 to close at $83.44.

 

China continues rapid growth of nuclear power capacity. EIA

 

This oil platform stopped pumping 30 years ago. Alaska still won't make the owner tear it down. Alaska Beacon

Removing all the offshore oil infrastructure from Cook Inlet could cost $1 billion. But some platforms have sat idle for decades, as inspectors say they’re in an “advanced state of disrepair.” “The state has not been willing to bite down and go, ‘We have allowed this to go on for far too long. Let’s begin an adult conversation about what we’re going to do with these platforms."

 

Could Alaska be the final destination for Japan's carbon population? The Biden administration wants to find out. Northern Journal

Alaska lawmakers are currently debating a bill sponsored by GOP Gov. Mike Dunleavy that would establish a legal system for carbon injection and storage. And one Japanese company recently hired an Alaska-based lobbyist, at $7,500 a month, to track carbon-related policy developments in the state.

 

 

Precious Metal Prices

May 8, 2024

Gold - $2322.23

Silver - $27.57

Platinum - $992.03

Palladium - $990.93

 

Alaska Permanent Fund

website

 

Fund value May 8 - $80,243,100,000

PFD payout from ERA, Fiscal years 1980-2024: $29.7 Billion

Cost of PFD in Oct. 2022: $2.2 B

Cost of PFD Oct. 6, 2023: $881.5 Million



May is the final month of our spring health fair season. After that, Alaska Health Fair (AHF) will go on a short break and begin work on fall health fairs. Now is the perfect time to visit one of our remaining events, connect with local health and wellness resources, and take advantage of the affordable, comprehensive blood screenings (prices begin at $20). See event schedule and make appointment online (www.alaskahealthfair.org) or simply walk-in at any of our events.

 

·     Fairbanks– Thursday, 5/9/24, 1pm – 4pm – Fairbanks 50+ – Art & Science of Aging – DAY 1 (exhibiting & screening only), Carlson Center, 2010 2nd Ave., Fairbanks, AK 99701

·     Fairbanks– Friday, 5/10/24, 8am – 2pm – Fairbanks 50+ – Art & Science of Aging – DAY 2 (blood draw, screenings & exhibitors), Carlson Center, 2010 2nd Ave., Fairbanks, AK 99701

·     Gustavus– Saturday, 5/11/24, 8am – 12pm – Gustavus Community Health Fair, Gustavus School14 Gustavus Rd, Gustavus, AK 99826

·     Wasilla– Saturday, 5/11/24, 8:00am – 12:00pm – Mat-Su Community Health Fair at Evangelical Covenant Church, 5201 E May Flower Lane, Wasilla AK 99654

·     Fairbanks– Tuesday, 5/14/24, 8am – 1pm – Fairbanks Office Draw, 725 26th Ave., Suite 201, Fairbanks, AK 99701

·     Anchorage– Saturday, 5/18/24, 8am – 12pm – Anchorage Community Health Fair, St. John United Methodist Church 1801 O’Malley Rd., Anchorage AK 99507

·     Central – Saturday, 5/18/24, 8am – 11am – Central Community Health Fair, Circle District Historical Society Museum, Mile 128 Steese Hwy., Central, AK 99730

·     Nikiski– Saturday, 5/18/24, 9:00am – 1:00pm – Nikiski Community Health Fair, 50097 Kenai Spur Hwy, Nikiski AK 99611

·     Fairbanks– Tuesday, 5/21/24, 8am – 1pm – Fairbanks Office Draw, 725 26th Ave., Suite 201, Fairbanks, AK 99701

 

Affordable Blood Tests Available at All Events:

 

·     27 panels – Comprehensive Blood Chemistry Screen – covers infection, anemia, liver disease, clotting ability, kidney and adrenal function, liver function, bone disease, tissue disease or damage, heart function, liver function, muscle function, coronary heart disease, & more – $45

·     Thyroid Screen – $35

·     Prostate Disease Screen – $25

·     Vitamin D Screen – $50

·     A1C diabetes – $25

·     Blood Typing – $20

More tests and details on our website, www.alaskahealthfair.org.​ 

 

Alaska Health Fair, Inc. is a nonprofit serving Alaskans since 1980. We are committed to providing communities with affordable blood screenings and valuable health education. Our mission is to empower individuals to make informed decisions about their health and well-being. Join us at one of our upcoming health fairs and take a step towards a healthier you. See our schedule at www.alaskahealthfair.org.



We look forward to seeing you at the health fairs!

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)

·     Office Manager: Paige Brown (from Anchorage/Girdwood)

·     Resources Committee Staff: Julia O'Connor (from Juneau)

·     Legislative Analyst: Angela Rodell (from Juneau)

 

 

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