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State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

June 13, 2024

Dear Friends and Neighbors,

 

I am getting a lot of question about Southcentral Gas Supply.

 

ENSTAR is making the appropriate, but careful, movements forward to gas imports. They are making the necessary upgrades to Cook Inlet Natural Gas Storage Alaska (CINGSA) and storing gas for next winter right now.

 

Blue Crest (Cosmopolitan lease) is also going forward with plans to utilize the recently authorized reserves-based lending program (which is not ideal for Alaska but could get that project underway to being economic).

We did not provide HEX with the royalty relief it sought because the economic analysis indicated that it was not enough (unless we made it extremely generous) to get their 3-4 year supply of gas in Kitchen Lights lease into pipes.

 

The fact is that we are completely dependent on a Texas billionaire for our future gas. Hilcorp has most of the other producing leases, the jack-up rig, partnership in Beluga gas field, massive gas storage in Cook Inlet…and they are the ones telling us that they won’t renew gas contracts going forward. Oh, and Hilcorp pays no Corp Income Tax as an S-corporation, amounting to about $100 million/year, minimum, “gift” from the State.

 

A small developer, Pantheon, along the Dalton Hwy to Prudhoe Bay announced an agreement to sell gas that if finds to Alaska Gasline Development Corporation (AGDC). (https://alaskapublic.org/2024/06/04/deal-to-buy-north-slope-gas-boosts-alaska-gasline-prospects-but-hurdles-remain/) The gas hasn’t been produced yet and there is no pipeline to carry it. An even larger supply of gas exists on the North Slope. Gas supply is not the barrier; the barrier is no one willing to foot the bill that is a minimum of $10.7 Billion in cost (based on a price estimate pre-COVID).

 

The cost of energy in Alaska is going to go up, not just in rural Alaska, but also in urban Alaska. Not just in Fairbanks, but also in Southcentral.

 

The Legislature gave great latitude in SB 307 for Independent Power Producers to play a larger role with renewable energy for electric generation, sparing gas for heating purposes. But that will take a few years to become reality. And, the Governor has not signed SB 307 yet.

 

Items in this Newsletter:

·    DNR Land Auction Offering

·    Current Hot Topics, Things I Found Interesting, Education, Economy, Minerals, Healthcare, Politics

·    Resource Values, Permanent Fund

DNR Land Auction Offering

 

The Department of Natural Resources, Division of Mining, Land and Water, Land Conveyance Section’s 2024 Land Auction, Offering #496, begins today at 10:00 am. The auction brochure is now available online at https://dnr.alaska.gov/mlw/landsales/auction/496/. Alaska residents are invited to bid on 207 parcels statewide. Bids will be accepted between June 12th and October 1st, 2024. The state also offers qualifying Alaska Veterans a once-in-a-lifetime discount on any parcel in Offering #496.

 

DNR continues to offer competitive in-house financing via state land sales contracts, making our offerings accessible to a broad customer base and improving marketability.

 

You can follow us on Facebook at https://www.facebook.com/alaskaland, Instagram at @Alaska_Land4Sale, or on ‘X’ (formerly Twitter) at @AlaskaLand4Sale.

 

If you would like more information about our land sales program, please contact myself or Hannah Uherkoch, Land Conveyance Section Manager, at hannah.uherkoch@alaska.gov or (907) 269-8599.

Current Topics

New agreement would limit cruise passengers in Juneau. A critic says it doesn't go far enough. ADN

The agreement, finalized late last week, seeks a daily limit of 16,000 cruise passengers Sundays through Fridays and 12,000 on Saturdays. However, officials said that doesn’t necessarily mean there will be that many people every day.

(My comment: when 5 of those huge cruise ships cruise ships come to own, all the internet services are very slow or nonexistent.)

 

State Supreme Court prepares for vacancy as Alaska's Chief Justice set to retire. Alaska's News Source

The Alaska Judicial Council is accepting applications to serve as a justice on the Alaska Supreme Court after it announced Friday that Chief Justice Peter Maassen will retire in January 2025.

 

 

Stuff I Found Interesting

Average price of orange juice frozen concentrate in the U.S.. Axios

Florida orange production plummeted 92% over the past 20 years due to natural disasters and disease, according to a report last month by Citrus Industry Magazine. A USDA forecast last year said the Florida orange crop would be the lowest since 1935.

 

How a 12-year-old got an Anchorage street named after a Harry Potter location. Alaska Public Media

A previously unnamed West Anchorage street sits between West 29th and 31st avenues and Doris Street and Lois Drive. The street serves 10 lots and the city determined that it needed a name to better guide emergency services. That got 12-year-old Janna Wilcox thinking. 

 

In Juneau, years can pass without a thunderstorm. Why are they so rare? Alaska Public Media

It was an exciting day for Juneau’s meteorologists because thunderstorms rarely happen here. On average, they only happen once about every two years. But on June 4, all the right ingredients came together. 

 

ANSEP transformed my future. I want to expand that opportunity for others. ADN

As a young student, I never envisioned the path that would lead me to where I am today. I’ve earned multiple degrees as an Alaska Native Science and Engineering Program student, including being the first Alaska Native with a Ph.D. in civil engineering, and held many roles as an ANSEP staff member. 

 

 

Economy

Women's employment hits a new record high. Axios

A record share of working-aged women are employed, according to new data from the Bureau of Labor Statistics. It's a remarkable comeback story. Women have not only regained their pandemic losses in the job market, they've been exceeding those numbers month after month.  In May, 75.7% of all women 25-54 were working — a record high.

 

How equitable are 401(k) plans? Marketplace

But a new report out of the investment advisor Vanguard, which oversees a lot of retirement accounts, says these plans are inequitable. More than 40% of employer matches go to the richest 20% of workers — and it’s not just because they have the highest salaries.

 

 

Education

Fairbanks math teacher provides essential charter school analysis the Dunleavy administration has studiously avoided. Dermot Cole Reporting from Alaska

When I first saw the results of the Harvard study concerning charter schools I was simultaneously unsurprised and skeptical. I was unsurprised as I have seen many very bright young students in my Advanced Placement classes who have come from charter schools. I was skeptical as I suspected much of this performance could be attributed to the type of student attending Alaska’s charter schools.

 

 

Politics

Alaska Legislature passes comprehensive local tax exemption legislation to benefit farmers and homebuyers. KSRM

This legislation, a result of extensive discussions with realtors, farmers, and municipal representatives, prohibits local governments from adding transfer taxes to the sale of houses and other real property, improves the program that provides property tax breaks to farmers, allows municipalities to defer taxes on property used for economic development, and improves the required assessor qualifications and property tax appeals process.

 

Alaska Gov. Dunleavy will be asked to pick fourth state Supreme Court justice. Alaska Beacon

On Friday, the Alaska Judicial Council announced that it is accepting applications from attorneys and judges interested in replacing Justice Peter Maassen, who will turn 70 — the age limit for Supreme Court justices — early next year. When Gov. Mike Dunleavy picks Maassen’s replacement from a list of finalists chosen by the Alaska Judicial Council later this year, the governor will have selected four of the five judges on Alaska’s high court.

 

Sponsors of petition to repeal Alaska's ranked choice voting score a partial win in court. Alaska Public Media

 

Alaska ranked choice repeal measure wins first round of legal challenge, but trial awaits. Alaska Beacon

Judge Christina Rankin ruled last week that the Division of Elections acted properly early this year when it gave sponsors of a repeal petition an opportunity to correct problems with petition booklets they submitted to the division.

 

 

Healthcare

A new lawsuit over Alaska's Medicaid backlog asks a judge to order faster processing. Alaska Public Media

Last month, state officials told Alaska Public Media more than 15,000 Medicaid applications were caught in a backlog that the state blamed on the expiration of pandemic-era requirements that prevented states from removing people from the insurance program. The Department of Public Assistance said the state’s outdated computer systems made it difficult to comply with new federal requirements preventing children from being kicked off Medicaid, leading the state to temporarily pause application processing.

 

A fundamental tension. Axios

One fascinating debate underway is whether there's a nurse shortage at all, despite undeniable staffing issues. The distinction lies in the question of whether the U.S. doesn't have enough registered nurses, or whether they just don't want to work in certain settings or have soured on the industry entirely because of poor working conditions. Some nurses allege that hospitals are keeping staffing levels low as a form of cost cutting. "We don't have a 'nurse shortage,' but we do have a staffing crisis in our hospitals, brought on by the lack of good nursing jobs," National Nurses United president Nancy Hagans wrote to the Senate health committee last year, adding that hospitals "deliberately refuse" to staff enough nurses to increase profits. A JAMA Health Forum study found that the number of full-time nurses was actually 6% higher in 2022 and 2023 than in 2019, despite tens of thousands of nurses leaving their jobs during the pandemic.

 

Sugar substitute xylitol linked to increased risk of heart attack, stroke. ADN

 

As pharmacies shutter, some Western states, Black and Latino communities are left behind. AP News

Residents of neighborhoods that are largely Black and Latino have fewer pharmacies per capita than people who live in mostly white neighborhoods, according to an Associated Press analysis of licensing data from 44 states, data from the National Council for Prescription Drug Programs and the American Community Survey. It’s consistent with prior research that documents where urban “pharmacy deserts” are more likely to be concentrated.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (6/12/24): $84.64

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 (6/11/24): 434,661 bpd



 

Alarm bells sounding for Southcentral Alaska's energy future. ADN

The notion of importing gas to a state with tremendous proven reserves of the resource is anathema to many Alaskans, who can’t fathom why it doesn’t make more sense to develop the gas within the state’s borders. But the appetite of producers to explore for more gas in Cook Inlet — and take on the associated financial risk — is meager. And the massive natural gas deposits on the North Slope are mostly stranded, with transportation costs (or construction costs for Alaska’s great white whale, a trans-Alaska natural gas pipeline) rendering their delivery uneconomic. As a result, the most cost-effective supply option for Enstar’s gas supply after its contract with Hilcorp expires in 2033 threatens to be imported gas.

 

NERC reports some U.S> regions at risk for energy shortfalls in extreme summer conditions. EIA

Parts of the United States could be at risk for electricity supply shortages if electricity demand peaks are higher than anticipated or if less electricity is generated than expected, according to the North American Electric Reliability Corporation’s (NERC) 2024 Summer Reliability Assessment. Under normal summer demand conditions, NERC expects the continental United States to have adequate power resources this year.

 

 

Precious Metal Prices

June 12, 2024

Gold - $2327.61

Silver - $29.31

Platinum - $963.58

Palladium - $931.50

Rhodium - $4700.00

 

Alaska Permanent Fund

website

 

Fund value May 28, 2024 - $80,634,100,000

PFD payout from ERA, Fiscal years 1980-2023: $29.7 Billion

Cost of PFD in Oct. 2022: $2.2 B

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



Alaska History

 

1906, June 7   Territorial capitol moved from Sitka to Juneau

 

1912, June 7   Mount Katmai exploded

 

1942, June 2   Japanese bombed Dutch Harbor

 

1944, June 14 Fire destroyed Hoonah

 

1947, June 7   Barbara Washburn first woman atop Denali

 

1956, June 9   8.0 earthquake destroyed Yakutat

         June 10  KINY became Juneau’s first TV station

 

1915, June 6   First issue of Anchorage Times

1997, June 3   Last issue of Anchorage Times

 

1988, June 13 Alaska Airlines friendshiop flight from Nome to Provideniya

 

1996, June 22-10       Miller’s Reach fire, Big Lake, $8.8 million damage

 

2000, June 8   Whittier tunnel opened

2006, June 1   Anchorage Aces won Kelly Cup

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 US