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Senator Cathy Giessel Newsletter

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Issues affecting

your family, community and jobs.

September 14, 2023

 

Dear Friends and Neighbors,

 

I am so saddened to hear of the passing of Mary Peltola’s husband. I grieve with Mary and pray God’s comfort on her and her family. 

 

I keep emphasizing "energy" in these newsletters because, as an Arctic state, we care deeply about light and heat, so we want to follow this critical topic closely. I share with you information I receive that I think you might be interested in.

 

Kenai Oil Refinery in Nikiski - Critical Infrastructure

We have had a large oil refinery in Nikiski since 1969. It uses in state crude oil to manufacture fuel products like in-state gasoline and is the majority supplier of locally produced diesel and jet fuel to Southcentral. The Kenai Refinery supplies about 80% of the gasoline on our road system, so you are likely using our local gasoline. And the road you drive on may be paved by Kenai Refinery asphalt product.

 

While a majority of the oil refined in Nikiski comes from our own North Slope, and from the Cook Inlet, the rest is imported from the Bakkan (North Dakota) or foreign suppliers.

 

The Refinery draws electric services from Homer Electric Association, helping to lower energy costs for residential users.  About 257 Alaskans are employed at the facility, earning about $40.5 million in total wages. In 2021 the Refinery pays about $18.6 million in state and local fees with another $2.5 million to the Kenai Peninsula Borough.

 

While we talk about national security and food security for Alaska, our instate refineries ensure our fuel security. The Kenai Oil Refinery takes Alaska crude oil and manufactures product that Alaskans need every day, through safe and environmentally sound operations. 

Learn more here.

 

 

Items in this Newsletter:

·    Rural Childcare in Crisis - film screening

·    Railbelt Electrification Study

·    National Drive Electric Week forum

·    National Suicide Prevention Month - September

·    Current Topics: Education, Economy, Minerals, Health Care, Politics

·    Energy Symposium - catch up on missed sessions

·    Resource Values, Permanent Fund

Child Care Dilemma in Rural Alaska

The first load and electrification forecast 

for the Railbelt published

 

Alaska Center for Energy & Power researchers published the

first load and electrification forecast for the Railbelt. 

 

Accurate forecasting of future needs for power is important in resource planning for electrical grids. How electricity is used, such as through electric vehicles and heat pumps, affects how much and how varied the electricity needs will be. Behind-the-meter solar systems – the energy produced by solar panels and stored separately from the grid, or the source of power is positioned “behind the meter,” and therefore does not need to be counted by a meter before being used for homes and buildings – will also affect the amount and variability of electric loads.

 

Electrification adoption and load forecasting in Arctic regions and Alaska, however, is limited. ACEP’s Railbelt Decarbonization study team has recently published a paper that provides the first load and electrification adoption forecast for the Alaska Railbelt transmission system.

 

The paper, entitled “Load, Electrification Adoption, and Behind-the-Meter Solar Forecasts for Alaska’s Railbelt” and published in MDPI Energies, was written by the ACEP Railbelt Decarbonization project team, including Phylicia CicilioAlexis FranciscoCameron MorelliMichelle WilberChris PikeJeremy VanderMeerSteve ColtDominique Pride, and Noelle Helder.



Read the full paper here.

 

For more information on ACEP’s work in Railbelt Decarbonization, contact Phylicia Cicilio at pcicilio@alaska.edu.

You have to register to attend.

Use the QR code or go here.

Current Topics

Russian Research Vessel Intercepts U.S. Icebreaker in the Arctic. Maritime Executive

Healy's course took her through international waters, well north of the Russian coastline. Russia jealously guards control over the Northern Sea Route (NSR) through its near-coastal waters, and Russian regulations require foreign vessels to obtain prior permission to navigate this route and to take on Russian pilots. The requirement is not consistent with the right of innocent passage established by the UN Convention on the Law of the Sea, but there are few publicized challenges to Russian restrictions on transits.

 

$1.7 million aid distribution benefited food banks, communities statewide.

In February, the Administration reallocated $1.7 million from an unutilized state program as a short-term bridge towards achieving long-term goals – to update and improve the processing of applications for the Supplemental Nutrition Assistance Program (SNAP). The program was then experiencing months’ long backlog in redeterminations.

 

Team running Golden Lion says first month of service has been ‘incredibly smooth’. Alaska News Source

It’s been roughly a month since residential operations at the former Golden Lion Hotel began, allowing low-income tenants a chance to find affordable housing.

 

Stickiest states. Axios

The share of people born in the state and still living there in 2021. Lowest is WY at 45%. Alaska is at 48.7%.

 

 

Education

Alaska’s newest education commissioner discusses trans athletes, increasing child literacy and reducing turnoverAlaska Public Media

Recorded interview

 

 

Economy

Proposed Sale of Carrs Safeway Grocery stores in Alaska. ADN

The deal has raised concerns in Alaska that it would cause store closures and higher food prices, increase risks to a fragile supply chain, and threaten the livelihoods of hundreds of workers. Unions representing workers at the stores, along with Democratic Rep. Mary Peltola and some state lawmakers, have called on the federal agency to block the deal.

 

 

Minerals

Investing in Graphite One. Alaska Beacon

An Alaska Native corporation said Tuesday it is investing in a project that could result in the first graphite production in the United States in decades. Bering Straits Native Corp., the corporation for the Inupiat and Yup’ik people of the Bering Strait region, will put $2 million into the Graphite One project being explored about 35 miles north of Nome.

 

Catch up fast on the global mineral race. Axios

"Ghana's sovereign wealth fund will invest almost $33 million in a lithium mine in the country and take a minority stake in its developer Atlantic Lithium (A11.AX), the company said on Friday," Reuters reports. Mining giant Glencore is making its first investment in a lithium mine in the Democratic Republic of Congo via a deal with the Canadian firm Tantalex.

(My comment: Will these resources be extracted with environmentally sound practices, such as are used here in Alaska? Will children be employed for cents/day, which is banned here in Alaska? Do you want to purchase your electronics, renewable energy and EVs built with products unethically mined? These are serious questions for Americans and Alaskans.)

 

The battery boom. Axios

Daimler Truck, Cummins and Paccar unveiled a joint venture that will invest $2-$3 billion in making cells for commercial vehicles and industrial uses. Big players, including BlackRock and Temasek, are pouring $542 million in new equity investments into battery materials firm Ascend Elements. Oman's wealth fund is investing an undisclosed sum in the U.S. battery firm Our Next Energy, per Oman's news agency and multiple reports.

(My Comment: This will require mining, such as the deposit at Graphite One.)

 

Electric Vehicle Numbers. EIA

Hybrid, plug-in hybrid, and battery-electric vehicle sales in the United States have increased in recent years as sales have decreased for non-hybrid gasoline- or diesel-fueled vehicles. In the second quarter of 2023 (2Q23), hybrid, plug-in hybrid, and battery-electric vehicles collectively accounted for 16% of light-duty vehicle sales in the United States, according to data from Wards Intelligence.

 

Germanium in Alaska. North of 60 Mining News

In addition to hosting 6.3 billion pounds of copper and 88 million lb of cobalt critical to the energy transition, the Bornite deposit in Alaska's Ambler Mining District may also be a significant source of the germanium essential to both clean energy and high-tech.

 

A new e-waste program is recycling tons of batteries from rural Alaska. Alaska Public Media

The organizers of a new initiative that retrieves e-waste from across rural Alaska report they collected and recycled over 145,000 pounds of lead-acid batteries from 45 communities last year.

 

 

Politics

Alaska Department of Corrections lowers age for corrections officers. Alaska Beacon

The council that sets and enforces standards for employment, training and certification of law enforcement officers in the state approved a proposal to lower the minimum age of state corrections officers from 21 to 18 years old on Thursday. The proposal will go out to public comment before any regulation change takes effect.

(My comment: Yikes! Instead of addressing the reason for recruitment crisis, the State is just lowering the standards. Bad approach. We know that brain maturity (decision making) doesn’t complete until about age 24. Corrections is a highly skilled, intense, crisis-decision making job. Not an appropriate venue for youth.)

 

 

Fisheries

Study: “Forever Chemicals” barely present in Arctic Alaska FishKINY

 A new study has found minute levels of chemical contamination in a small sample of Arctic coastal fish species, an encouraging finding for residents who rely on them for subsistence foods. 

 

 

Health Care

Health care may soon push up inflation. Axios

Medical services could soon prove an unpleasant source of higher inflation. Quirks in how health insurance prices are measured, and how medical providers set prices, have led to a downturn in inflation in recent months, but that trend looks likely to reverse.

 

Shrimp and Salmon Reference Materials Could Help Combat Seafood Fraud. NIST

At your local supermarket, you can usually find all sorts of seafood on display, but it’s sometimes hard to know if it’s correctly labeled. If you purchase seafood marked as wild-caught salmon, for example, how do you know that you’re not actually getting cheaper farm-raised salmon, or even an entirely different kind of fish?

 

Tree Nut Reference Materials Support Food Allergen Testing. NIST

Food allergies affect millions of Americans every year. Though medications can treat allergy symptoms, preventative measures such as accurate food labeling and stopping cross-contact with potential allergens during food preparation can help ensure people are not exposed to foods that might cause an allergic reaction.

 

Alaska's Health Department works through one food stamp backlog only to confront another. Alaska Beacon

The division fell behind on newer applications and while staff worked through backlogged cases. Etheridge said this time there are 6,000 Alaskans waiting for food aid.

 

Congress has a chance to reduce drug patent abuses, lower costs for Alaskans. Alaska Beacon

One of the most egregious tactics Big Pharma employs to abuse our patent system is called “product hopping.” This is when companies make small changes to a drug, such as its intake method or dosage, and then file new patents to protect these changes. Meanwhile Big Pharma companies shift patients from the older version of the drug onto the newer version, which has new patents. By doing this repeatedly, pharmaceutical firms are able to create “patent thickets” around their most lucrative products. This locks patients into paying higher prices for the same drugs while preventing them from accessing more affordable alternatives. 

(My comment: Insurance Companies use Pharmacy Benefit Managers who negotiate rebates from Pharma and pocket the money.)

 

Measuring the Accuracy of PCR Tests Can Improve Health Care Beyond COVID-19. NIST

The development of the clinical COVID test is a triumph of molecular biology and applied genetics. The most common version of the test is based on a powerful, and widely used, lab technique called the polymerase chain reaction (PCR).

 

RNA Structure and Dynamics: The One-Two Punch in the Fight Against COVID-19. NIST

Before the proteins that infect your cells can be built, the viral RNA, which contains the blueprints to produce proteins essential for viral replication, must be read by the ribosome, the place where proteins are put together within a cell. Parts of the viral RNA form flexible structures that regulate the ability to read and create proteins from it.

Did you miss the energy symposium?

 

A series of eight symposia on energy issues in Alaska was held this summer. 

 

If you missed any of the past symposium presentations, check out the recordings here.

 

·    Symposium #1 (July 13): Future natural gas supply for the Alaska Railbelt

·    Symposium #2 (July 20): Alaska rural energy: challenges and opportunities for reducing the cost of energy

·    Symposium #3 (July 27): Global energy trends and grid of the future

·    Symposium #4 (Aug. 3): Railbelt hydropower development & financing: lessons searned from the past, opportunities for the future

·    Symposium #5 (Aug. 17): Alaska energy statistics and economics

·    Symposium #6 (Aug. 24): Transmission and Storage: Building a More Resilient, Reliable Grid

·    Symposium #7 (Aug. 31): Emerging Technologies and Opportunities for Alaska: Small Scale Nuclear

·    Symposium #8 (Sept. 7): RPS & Clean Energy Standards: National Policy Comparisons

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (9/13/23): $94.74

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

Price on 9/30/23: $87.99

Price on 9/30/22: $86.91

Price on 6/29/22: $116.84

Price on 3/8/22: $125.44

Price on 12/22/21: $75.55

ANS production (9/13/23): 459,612 bpd

 

 

Charted: Luxury EVs dominate the U.S. market. Axios

This article underscores a key hurdle to making electric vehicles (EVs) truly mass-market: lots of them are luxury models. This Energy Information Administration primer breaks down the market segmentation. There’s no single definition or price point for "luxury” — but, for instance, a "middle luxury" SUV starts at $50,000.

(My comment: “Luxury” for US citizens, but minerals from the African continent are likely extracted with environmental devastation and brutal labor conditions. Responsible mining, for workforce and environment, is done in the U.S.)

 

Green steel is red hot. Axios

H2 Green Steel raised $1.6 billion to build a large plant in Sweden. It pledges it will have 95% less CO2 emissions than traditional blast furnace tech. Instead of coal, the Swedish firm plans to use hydrogen produced on site with renewable feedstocks.

 

Today in Energy. EIA

The United States exported more liquefied natural gas (LNG) than any other country in the first half of 2023

 

Short-Term Energy Outlook. EIA

Crude oil prices. We expect the Brent crude oil price to average $93 per barrel (b) during 4Q23, up from $86/b in August. A decline in global oil inventories in the coming months supports the Brent price in our forecast. The price eases to an average of $87/b by the second half of 2024 because we expect global oil inventories to rise during that period.

 

 

Sept. 13, 2023 Precious Metal Prices

Gold - $1921.22

Silver - $23.06

Platinum - $917.91

Palladium - $1293.59

 

Alaska Permanent Fund

Fund's total value Sept 13 is $77,756,400,000.

Website

July 31, 2023 Audited Values

The Principal total includes:

• $56.5 billion in permanent savings contributions

• $12.4 billion in unrealized gains

 

The Earnings Reserve Account total includes:

• $0.5 billion of uncommitted realized earnings

• $3.7 billion for the FY24 POMV draw

• $1.4 billion for FY24 Inflation Proofing of the Principal

• $1.2 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 Fiscal Year 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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Senator Cathy Giessel's Newsletter | 12701 Ridgewood Rd, Anchorage, AK 99516