Senate Majority Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

 

 

August 3, 2023

 

 

Dear Friends and Neighbors,

 

Energy (light and heat) is a big deal to us in Alaska. We pay particular attention to it starting about September, then breath a sign of relief with more sunlight and warmth by April or so.

 

But its really a year-round topic.

Right now, Chugach Electric is asking the Regulatory Commission of Alaska to grant a 5.9% electric rate increase. The price of natural gas from Enstar has gone up and may not be available from Cook Inlet very much longer.

 

The Alaska Center for Energy and Power (UAF) is leading the way in innovations in energy that can result in lower cost & cleaner energy for Alaska.

 

Alaska is in a transition that integrates solar and wind through independent power producers (IPP) as well as citizens with solar panels on their homes. We have coal generation up in Fairbanks, as well as diesel oil in rural areas both on and off the road system.

 

New sources of energy are important but my main focus is on transmission – that is, the copper wires that connect every home, business, street light and computer to the source of electrons.

 

Our Railbelt transmission system is pretty small and is segmented into pieces of ownership. (Drawing of our grid) Each owner of a grid section charges other utilities if they move power through their copper wires, just like a toll road. For example, if GVEA is drawing on lower cost power generated from Bradley Lake, they pay "tolls" to move that power through the 3 owners of transmission along the way.

 

Bradley Lake hydroelectric facility was completed in 1991. The facility is located southeast of Homer with water fed to the lake from Bradley glacier. Adding water to Bradley Lake increases the power generated. Presently added water feeds into the lake from Battle Creek. Right now there are plans to divert some water from Dixon Glacier as well. That added water from the “Dixon Diversion” will add 50% more power potential to the Bradley Lake Dam.

 

The cost of power generated by the Bradley Dam is 4 cents/kwh. Wow! That’s inexpensive power! More of that would be great! But we have a problem – the copper wires (transmission lines) between Bradley and Soldotna cannot effectively carry more power.

 

·     Upgrading the transmission line from Bradley to Soldotna would increase the capacity of that transmission from 115 kilovolts now, up to 230 kilovoolts. The cost for the 68 mile line is about $96 Million and is estimated to be completed about 2033.

 

·     Another weak spot in the transmission line is from Soldotna to Sterling. Increase from 115 Kilovolts increased to 230 kilovolts, costing about $27 million, estimated to be completed by 2030.

 

·     Then Sterling to Quartz Creek (Cooper Landing). Increase from 115 kV to 230 kV, costing about $62 million, estimated completion 2028.

 

Items in this Newsletter:

·     SB 57 Bill Signing

·     Weekly Energy Symposiums

·     Bradley Lake Hydroelectric Project Visit

·     June APFC Preliminary Fund Values

·     What's Happening with Food Stamps?

·     National Farmers Market Week Infographic

·     Current Topics, Economy, Health Care, Energy

·     Fiscal Policy Study Group

·     Alaska Economic Trends August Issue

·     Alaska Health Fair Fall Schedule

·     Resource Values, Permanent Fund

 

 

 

New Law Helps More Accessible Future

 

 

Holding the Legislation in the photo from the signing of SB57 is Linda Giani, the main driving force behind this important piece of legislation.

 

In Disability Pride Month, Alaska advocates celebrate progress and look to a more accessible future. Alaska Beacon

Reinhart said he’s excited about a bill the governor is slated to sign this Saturday that will allow Medicaid to pay for people with disabilities to have care and support from people within their own households — even their legal guardians or family members, and will also allow the state to license private homes in the same way they would license a care center. (My bill, SB 106, was merged with SB 57.)

 

New law authorizes programs to help adults with disabilities and elders get at-home care. Alaska Beacon

Elders and adults with disabilities will have more opportunities to get care at home or in a home-like setting under a bill that became state law when Gov. Mike Dunleavy signed it on Saturday. My comment: "Alaskans struggling with dementia and other complex medical needs will be able to remain in their familiar home surroundings cared for by family members, who are trained and paid to provide that loving care. Tis is particularly beneficial for rural Alaskans in locations where home care agencies are not available."

 

 

 

August 3

11 AM - 1 PM

Railbelt Hydropower Development & Financing: Lessons Learned from the Past, Opportunities for the Future

Click here to join the Zoom meeting

 

August 10

11 AM - 1 PM

Alaska's Energy Policy & Planning

Click here to join the Zoom meeting

Energy Symposium

Every Thursday

11 AM - 1 PM

 

 

These are meetings of the Governor's Energy Security Task Force.

 

You can listen in and learn what they are hearing and learning.

 

Only the Task Force members can ask questions but this is a chance to hear their questions.

 

The Task Force members are developing a statewide energy plan.

 

If you missed the previous meetings, you can listen to the recordings here:

 

Future Natural Gas Supply (July 13) - Import, Pipe from Slope?

 

Alaska Rural Energy: Challenges & Opportunities for Reducing the Cost of Energy (July 20)

 

Global Energy Trends & Grid of the Future (July 27) - Learn about Heat Pumps and the Iceland Electric Grid

 

 

 

Bradley Lake Hydroelectric Project

 

Last week I joined an amazing field trip to Bradley Lake Dam. This is Alaska's largest hydroelectric facility, harnessing clean, renewable energy, and the lowest cost electricity to the Railbelt.

On the field trip, left to right: Rep. Zack Fields, me, Ak Energy Authority ED Curtis Thayer, Sen Jesse Bjorkman, Revenue Commissioner Adam Crum, Rep. Bryce Edgmon, Rep. Neal Foster.

 

 

 

Fund Values

June 2023 Preliminary

Alaskans will be happy to know that positive returns were achieved in FY23, despite a high inflationary environment, relatively flat markets, and lower gain realizations.

 

Given these conditions and Alaskans' reliance on the Fund, it is important to understand the dynamics of the Fund's two-account structure, with the Principal providing permanent income-producing investments and the Earnings Reserve Account holding the investment income that is available to support the state's budget, including essential services and the dividend.

 

Preliminary Fund Values for FY23, as of June 30, 2023, are available. Please know that as the books continue to be closed through the audit process, these values are anticipated to change. Final financial information will be updated in September and included in the FY23 Annual Report.

 

The Preliminary June 30, 2023 Fund Values highlights -

 

·     The Principal has $56.4 Billion of deposits and contributions invested to the highest possible return while keeping the risk at a reasonable level. These deposits include the FY23 inflation-proofing contribution of $4.2 billion to preserve ongoing purchasing power and ensure intergenerational benefit.

 

·     The Earnings Reserve Account reflects the current commitment of $3.5 Billion to support the state's FY24 operating budget. And, realized earnings are available to commit to the FY25 POMV draw of $3.6 Billion to support the state's revenue stream for the upcoming fiscal year.

 

·     Due to current market conditions, the amount of gain realization has decreased compared to previous years. As a result, the ERA balance is currently being used up faster than it's being replenished. However, there are still enough earnings to support the percentage of market value draw from the Fund in FY24 and FY25, and provide some inflation-proofing for the Principal in FY24. It's important to note that there is no longer a cushion or buffer of earnings. The Earnings Reserve Account will continue to receive all income generated from the portfolio's investment activity, just as it has since its inception. 

 

Find out more here...

 

 

 

 

 

What's Happening with Food Stamps?

AKA

Supplemental Nutrition Assistance Program (SNAP)

 

SNAP is also known as “food stamps”. There are eligibility requirements to qualify to receive SNAP and that’s where the Dept of Health backlog comes in.

 

One idea to help both the Dept of Health and Alaskans is something called Broad-Based Categorical Eligibility (BBCE). This would allow Alaska to loosen the asset and income requirements.

 

The Categorical Eligibility idea allows states to lift the gross income limit to further smooth SNAP’s phase-out and alleviate the benefit cliff. The state option helps households close to the income threshold accept higher-paying work while staying connected to SNAP. In the above example, under categorical eligibility, a 50-cent raise would reduce the family’s SNAP benefit by only $31 per month (to about $95), resulting in a monthly increase in resources of $56 per month.

 

Example:

A single mother with two children working full time at $16 an hour would have income at 128 percent of the poverty level and receive about $126 a month from SNAP, making up about 4 percent of her total monthly income. If her hourly wage increased by just 50 cents (or $87 a month), lifting her income just above 130 percent of the federal poverty level ($2,815 for a family of three in fiscal year 2019 in Alaska), the family would become ineligible for SNAP under the federal income eligibility cut-off. In this circumstance, the household’s loss of SNAP benefits would more than cancel out the higher earnings and leave the family worse off; their total monthly resources would decline by about $39 per month. As noted above, this issue affects a small share of SNAP households. Only 1.4 percent of non-elderly, non-disabled SNAP households in Alaska have income from earnings between 120 and 130 percent of the poverty line.

 

Most states already use Categorical Eligibility. Alaska is one of the 9 states that doesn't use it.

 

Attached is a more in-depth fact sheet about Broad-Based Categorical Eligibility (BBCE). I am currently working with Rep. Genevieve Mina on legislation (SB 149 and HB 196) with the goal of applying BBCE to create more stability for Alaska families, the freedom to climb the income ladder without being penalized, and less crippling paperwork for the Dept of Health.

 

 

Current Topics

What AI does to the future of work. Axios

Automation, accelerated by the needs of the pandemic era, has already begun displacing low-wage workers across four different fields. Those include jobs in office support, food service (waiters/waitresses/fast-food checkout), customer service (retail clerks), and production workers who move material or work machines.

 

Alaska's volunteer firefighting force halved over the last decade. KFSK

This situation will sound very familiar to Alaska fire chiefs. The number of volunteer firefighters across the state plummeted by 45% since 2014. That’s more than double the decline seen nationwide. Justin Boddy is the president of the Alaska State Firefighters Association. He says the huge drop in volunteers is particularly stark when he thinks back to volunteer training sessions a decade ago. 

 

How whale poo could be making the planet cleaner. Alaska Public Media

Humpback whales could be growing their own food supply and fighting climate change in a very unusual way — with their poo. Biologists are conducting Alaska research this summer on what’s called the “whale pump hypothesis.” 

 

Alaska natural resources agencies OKs bigger off-road vehicles on most state land. Alaska Beacon

In late July, the Alaska Department of Natural Resources issued new general permissions that allow vehicles up to 80 inches wide and up to 2,500 pounds on land managed by the DNR Division of Mining, Land and Water.  Old restrictions, based on the size and weight of a 6×6 Argo, allowed vehicles of up to 1,500 pounds, DNR staff said in an explanation of the change. (My comment – Now you can drive your Sherman Tank anywhere you want! Just ask DNR for special permission.)

 

GCI will shut down its longtime email service. ADN

Alaska telecommunications company GCI will end its longtime email service next year, a move that will affect many customers who must transition to new email providers.

 

 

Economy

Book Preview: Economic arsenals. Axios

For the next decade, the U.S.-China rivalry will likely be characterized not by military struggle but by economic statecraft- using economic means to achieve geopolitical outcomes, in the book, "Beijing Rules," coming Aug. 1. Why it matters: The U.S. and China are rolling out targeted measures to wall off key industries and products. Most recently, China placed export restrictions on rare earth minerals- which are key to the production of advanced computer chips- after the U.S. and several allies restricted the sale of such chips to China.

 

America's Top States for Business 2023: The full rankings. CNBC

Alaska ranks Last as place to do Business

 

Alaska gas prices among the highest in nation, according to AAA. Alaska's News Source

According to American Automobile Association, Alaska has the fifth-highest average gas price in the country, trailing only California, Washington, Hawaii and Oregon. On Monday, AAA reported the national average for gas prices at $3.757.

 

Alaska to use crowdsourcing website to distribute $2M in COVID-19 relief money for public school supplies. Alaska Beacon

Alaska public school teachers short of supplies this year have a new source to turn to for funding, and it’s not the local school budget. Each teacher could receive $650 to $750 from the state in federal pandemic relief money.

 

Walmart= world's largest company. Axios

For the 10th year running, Walmart is No. 1 on Fortune's Global 500, which ranks the world's largest corporations by revenue for fiscal year 2022.

 

 

Politics

Former Anchorage School District Superintendent Deena Bishop named state education commissioner. Alaska Public Media

The Alaska Board of Education and Early Development has selected Deena Bishop as the state’s new education commissioner. Bishop will officially begin her role on Aug. 9. 

 

The White House makes its move on permitting. Axios

The White House is floating plans to speed reviews of infrastructure proposals- including transmission to help integrate renewables onto power grids. The Council on Environmental Quality is releasing draft regulations that implement provisions in the recent debt ceiling deal aimed at accelerating permitting.

 

Oregon self-serve gas bill become law as Kotek declines to veto. Oregon Live

Gov. Tina Kotek will allow a bill allowing self-serve gasoline across Oregon to become law, ending a 72-year ban on most drivers pumping their own gas. After the Oregon bill becomes law, New Jersey will be the only state that bans self-serve gas.

 

Alaska pays $350,000 to settle last wrongful-firing lawsuit form loyalty-pledge scheme. Alaska Beacon

The state of Alaska has paid $350,000 to settle a four-year-old lawsuit that found Gov. Mike Dunleavy and his former chief of staff personally liable for illegally firing a state attorney.

 

 

Health Care

Alaska Department of Health moves to ease parts of child care licensing burden. Alaska Beacon

The state government is taking aim at eliminating one of the most common barriers for people who want to open child care centers in remote communities: The state requirement for a special internet connection called a “static IP address.”

 

Alaska's food stamps backlog continues, with delayed appeals and Medicaid issues on the Horizon. Alaska Public Media

The state office that manages food stamps has been making progress working through a backlog delaying the benefits for thousands of Alaskans, but new problems have cropped up.

 

Family caregivers are election deciders, in Alaska and beyond. Alaska Beacon

 

In Disability Pride Month, Alaska advocates celebrate progress and look to a more accessible future. Alaska Beacon

Reinhart said he’s excited about a bill the governor is slated to sign this Saturday that will allow Medicaid to pay for people with disabilities to have care and support from people within their own households — even their legal guardians or family members, and will also allow the state to license private homes in the same way they would license a care center. (My bill, SB 106, was merged with SB 57.)

 

Sexual assault survivors in Alaska can now track their rape kits online. Alaska Beacon

A new online tool will allow survivors to check the status of their sexual assault kits, Alaska’s Department of Public Safety announced last week. The department developed a tracker so survivors can stay up to date on their case in “the least intrusive and traumatic way possible.”

(My comment: thanks goes to former Rep Geran Tarr. She relentlessly fought for attention to these rape kits (which were sitting in a corner, untested). She relentlessly fought for transparency on processing.)

 

New law authorizes programs to help adults with disabilities and elders get at-home care. Alaska Beacon

Elders and adults with disabilities will have more opportunities to get care at home or in a home-like setting under a bill that became state law when Gov. Mike Dunleavy signed it on Saturday. My comment: "Alaskans struggling with dementia and other complex medical needs will be able to remain in their familiar home surroundings cared for by family members, who are trained and paid to provide that loving care. Tis is particularly beneficial for rural Alaskans in locations where home care agencies are not available."

 

 

 

 

 

 

 

Fall is on the horizon, and we're excited to announce the Fall 2023 health fair schedule! First events are scheduled for August 15th. This season promises to be one of community, care, and connection, and we are thrilled to welcome all of you to join us. Whether you're looking to volunteerexhibit, or attend, there are numerous opportunities to get involved.

 

We are especially pleased to offer free A1C screenings this season (limitations apply) in partnership with the State of Alaska, providing essential screenings to our community. Registration for these screenings, as well as appointments for our affordable blood tests, is now open online at www.alaskahealthfair.org. We are still adding new events, so please check back often.

 

 

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (8/2/23): $85.80

 

FY24 budget (beginning 7/1) is fully funded at forecast $73/barrel oil.

Price on 9/30/22: $86.91

Price on 6/29/22: $116.84

Price on 3/8/22: $125.44

Price on 12/22/21: $75.55

ANS production (7/26/23): 435,442 bpd

 

Chinese EVs are heading west. Axios

The Biden administration is incentivizing rapid EV adoption while also trying to reduce U.S. dependence on Chinese EV supply chains. Yet experts say meeting the administration's proposed vehicle climate standards demands more low-priced EVs.

 

Federal regulators approve new rules to ease power connection backlogs. Alaska Beacon

The Federal Energy Regulatory Commission on Thursday finalized long-awaited new rules intended to reform how power generation projects get connected to the electric grid, seen as a major step in smoothing the path for thousands of mostly renewable power projects currently waiting to plug in. (My comment: Independent Power Producers (IPP) need to have access to our transmission system to provide power for consumers.)

 

Safety Concerns Raised About Illinois' CO2 Pipeline Projects. Governing

Calls for state and federal moratoriums come at a time when the nation faces a potential “tsunami” of new CO2 pipelines, driven by billions of dollars in federal incentives aimed at combating climate change, according to a 2022 report from the nonprofit Pipeline Safety Trust.

(MY comment: As Alaska considers CO2 capture and sequestration (SB 49) next session, this will be a serious discussion with regulators and PHMSA)

 

First new U.S. nuclear reactor since 2016 is now in operation. EIA

A new reactor at Georgia’s Vogtle nuclear power plant is now in commercial operation, according to an announcement from Georgia Power, one of the plant’s owners. It is the first new nuclear reactor to start up in the United States since the Tennessee Valley Authority’s Watts Bar 2 was commissioned in 2016.

(My comment: A reactor of this size is NOT what’s envisioned for Alaska. The Small MicroReactors fit our population and energy needs.)

 

Quoted- Nathan Habers, spokesperson for the Royal Association of Netherlands Shipowners. Axios

Habers discussed the major fire aboard a ship off the Dutch coast carrying hundreds of electric cars. A battery fire is a suspected cause.

 

Offshore wind's split-screen effect. Axios

Last month Rhode Island Energy abandoned a project proposed by Ørsted and Eversource, citing cost factors.

 

Notes from the intensifying race for energy transition metals. Axios

The geopolitical and commercial race is on to lock up energy transition metals. China is on pace for record annual overseas metals and mining investments, with over $10 billion in the first half of this year already. China is jockeying to "defend its position as the world's biggest producer of electric vehicles, batteries, solar panels and wind turbines."

 

 

 

Alaska Permanent Fund

Alaska Permanent Fund (July 26, 2023)

Fund's total value was $79,789,200,000.

 

Preliminary 6-30-23 unaudited values

The Principal total includes:

• $56.4 billion in permanent savings contributions

• $11.5 billion in unrealized gains

 

The Earnings Reserve Account total includes:

• $5.2 billion of uncommitted realized earnings

• $3.5 billion for the FY24 POMV draw

• $4.2 billion for FY23 Inflation Proofing of the Principal

• $1.3 billion in unrealized gains

 

PFD payout from ERA, 1980-2022: $26.6 B

Cost of PFD in 2023: $2.2 B

Cost of PFD in 2024: $881.5 M

 

 

 

Feedback is always welcome.

Have a great week!

 

Cathy 

 

Personal Contact:

907.465.4843

sen.cathy.giessel@akleg.gov

 

My Staff:

·     Chief of Staff: Jane Conway (from Soldotna)

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

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



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