Senate Majority Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

November 2, 2023

 

Dear Friends and Neighbors,



The biggest issue these days is energy and its cost.

 

To access the lowest cost energy in the Railbelt, we need an upgrade to our transmission lines from Bradley Lake to Healy. We have a chance to use this federal money to fund that upgrade.

·     $206 Million Federal Grant Will Strengthen Alaska's Electrical Grid Resilience. Alaska Business

·     DOE awards $206.5 million for upgrading transmission system, adding batteries. Petroleum News

The Federal money requires a $206.5 million in state match funds. I predict this will be appropriated by the Legislature. The need is obvious, and this is a great opportunity. But there's more that's needed as well. You can expect to see some further legislation related to electric generation and transmission.

 

A related topic is natural gas for electric generation and heat. Last week (10/26) the Governor held a press conference announcing that leases in Cook Inlet for gas would have lower state royalty rates. And that they would have "net profit share" structure to reduce taxes.

Alaska Gov. Dunleavy plans legislation intended to prevent natural gas shortage in Southcentral. Alaska Beacon

 

While I appreciate the attention to the natural gas supply cliff that we face in the next year, these steps of reduced royalty and tax don't increase supply in the immediate future, when we face the cliff. It takes at least 7-10 years or more to get the permits and find the gas.

The immediacy of the problem is found in this news about Marathon preparing to import gas for use at the Kenai oil refinery. The refinery can't experience brownouts or shutdowns. It deals in flammable liquids and explosive gases that must be contained and properly processed at all times. So they are preparing to import natural gas.

Marathon evaluating plant for LNG import. Petroleum News

 

The Legislature is preparing to deal with these two issues.

 

 

Items in this Newsletter:

·     Alaska Permanent Fund

·     Defined Contribution Kerfuffle

·     Alaska Healthy Homes Zoom Series

·     Alaska Food and Farm Festival

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

·     Resource Values, Permanent Fund

·     Alaska History

·     Alaska's Olympic Ice Skater!

Alaska Permanent Fund Corporation

October 30 meeting

 

Here is the link to the Board documents of the October 30th meeting.

The main theme of the memo and the meeting was how to increase the value of the Fund to $100 Billion.

This goal has been talked about by the State Senate for the last 5 years. It is estimated that, if the Fund were at $100 Billion in value, the earnings would be sufficient to support state services.

 

However, the good news is that the Board decided NOT to take the huge risks associated with the actions required to grow the Fund that fast.

 

The Alaska Beacon reports:

The Alaska Permanent Fund Corp. almost certainly will not seek riskier investments as it tries to increase the value of the fund to $100 billion, its board of trustees decided Monday as the board prepared to finalize a new four-year strategic plan. Final approval of the plan will take place in December, but board members had considered raising the fund’s investment target in order to reach $100 billion within five years. The current target is 5%, plus the rate of inflation, as measured by the consumer price index. During a work session meeting on Monday, trustees did everything but explicitly reject the idea after advisers said it was particularly risky.

Britt Harris, the interim CEO of the Texas Permanent School Fund and a member of the Permanent Fund Corp.’s investment advisory group, said it’s “probably imprudent” to target a 7% return plus inflation. Both Harris and fellow investment advisory group member George Zinn, treasurer of Microsoft, advised the board to target 4% returns instead — a figure that’s below, not above, the fund’s current 5% target. A 4% target would also be less than the annual transfer from the Permanent Fund to the state treasury each year.

The board also expressed interest in legislation that could exempt the Permanent Fund Corp. from state procurement rules, and a separate change to shield the personnel records of high-level staff from the state’s open records law.

 

The idea of reducing the Percent of Market Value (POMV) taken from the Fund each year, for spending, is one that has been discussed often since 2018, when POMV was first implemented. Initially we took 5.25% from the Fund for the first 3 years, then it dropped to the 5% it is now. We have been told that other endowment funds have lower POMV.

 

A lower POMV would protect the Fund, allowing it to grow more readily. The push-back is that it would provide less money for state services and a dividend.

 

My preference is to lower the POMV incrementally to 4%, while we change the dividend formula. When we fund public safety (which is troopers, corrections, fire), education, transportation, and environmental oversight, we are providing a "dividend" that we all enjoy equally in our quality of life.

 

See this illustration below: Right now, the earnings (from POMV) make up about 33% of the state revenue available for spending on state services.

SB 88- Hybrid Defined Benefit Option

 

Here is the Alaska Economic TRENDS article about teacher wages that was banned by the Governor's office.

 

Governor's office censorship of labor data is troubling. ADN

 

Alaska governor's staff deleted state agency's analysis of teacher pay. Alaska Beacon

 

Report says Alaska's labor shortage isn't going away, and employers need to do more to retain workers. Alaska Public Media

Alaska has a historically high rate of job openings. It’s part of a national trend, but made more pronounced by the state’s declining population. That’s according to a new state report, which concludes that this recent dynamic makes worker retention both more difficult and more important. Wages are obviously important in retaining workers, but so are things like company culture and a sense of purpose, the report suggests. 

Is Gen X Prepared for Retirement?

According to a recent report by the National Institute on Retirement Security, most Gen Xers—roughly defined as those born between 1965 and 1980—are failing to meet retirement savings targets. 2050 Wealth Partners Co-Founder & Co-CEO, Lazetta Braxton and National Institute on Retirement Security Executive Director, Dan Doonan explain how advisors can take what they know about this generational cohort and create plans to help them reach their goals.

The Cold Climate Housing Research Center is proud to present Alaskan Healthy Homes in partnership with Golden Valley Electric Association and Alaska Housing Finance Corporation. Professor of Health, Home and Family Development Julie Cascio will outline common health risks in the home and how to improve the quality of your living environment, and answer questions about making your home more healthy and safe. 

 

Learn more about our Fall Class Series and register for Alaskan Healthy Homes

About the Festival 

This year the Alaska Farm Bureau is combining efforts with the Alaska Food Policy Council and Western SARE to produce the first Alaska Food and Farm Festival.

 

This is a chance to gather among Alaska producers, network, learn about the latest available programs, and how to advocate and raise awareness of the issues facing Alaskan Farmers. If you are a current farmer or looking to get into farming, this three-day event is the perfect chance to learn about the challenges and opportunities of farming in Alaska. 

 

Learn about farming and agriculture in Alaska, hear from state agency representatives, & shop local retailers.

Conference Website with more information!

Current Topics

Alaska turned to a private guardianship agency to care for some of its most vulnerable residents. The result: dysfunction and debt. ADN

Some of Alaska’s most vulnerable residents were left ailing, indebted, at risk of losing their housing and with their public benefits lapsed — including Social Security payments and Medicaid — after dozens of guardianship cases were transferred from a public agency to a fledgling nonprofit.

 

After 48 years, Army wife reunited with wedding ring. Axios

Forty-eight years after Nashville resident Skyla Carmona lost her wedding ring in a wooded area outside a small trailer at Fort Devens Army base in Massachusetts, it has been found. The discovery of Skyla's wedding ring is an example of the internet doing something good instead of bitterly dividing us.

 

New statewide data tells mixed story about crime in Alaska. ADN

The total number of crimes reported to police fell slightly over the previous year, while the number of violent crimes reported increased slightly. The number of homicide, aggravated assault, vehicle theft and arson offenses reported to police statewide increased. All other serious crimes had fewer offenses reported. The number of rape offenses reported to police was at its lowest point since 2016. Still, Alaska’s sexual assault rate remains far above the national average.

 

Seattle is emerging as Fusiontown, U.S.A. Axios

The Seattle region is solidifying its place as a global leader in the race for fusion energy, with five major companies looking to crack the code on the clean, sustainable power source. In a rapidly warming and carbon-dependent world, there's a "huge prize" for developing and commercializing fusion energy, Mike Sexsmith of General Fusion said last month at Seattle Fusion Week. Fusion — in which atoms' nuclei are fused to release energy — promises effectively limitless, zero-emissions power without the radioactive byproducts produced by today's fission-based nuclear plants.

 

 

Education

Schools face wave of migrant pupils. Axios

School districts across the country are on the front lines of the migrant crisis, as children coming with their families across the U.S.-Mexico border enter classrooms.

 

 

Economy

A glaringly obvious answer to America's truck driver shortage. Alaska Beacon

little-known fact: Less than 5% of America’s long-haul drivers are women. And a lesser-known fact: Thousands of women are eager to do the job, are fully qualified, and hold commercial licenses to drive the rigs. But they’re constantly rejected when they apply for openings at trucking companies.

 

"Bull" market now looks like bear rally. Axios

This year's once-significant stock market gains are slipping away fast, as the higher-for-longer rates consensus clobbers the market.

 

Residents of Midwest, Mountain West see biggest pay bumps, Alaskans see largest drop. Alaska Beacon

Over the past four years, Alaska residents lost the most in inflation-adjusted income and the state was one of three that saw declines. Both Alaska and North Dakota have economies driven by oil, but North Dakota’s shale boom is still on an upswing while Alaska’s production has been in decline since the 1980s, helping North Dakota rise to the top of income growth statistics while Alaska sunk to the bottom. Alaska’s per capita income dropped 2.4% after inflation over the past four years.

 

 

Politics

Alaska retirement board recommends closure of widely used plan after analysis finds flaw. Alaska Beacon

The board in charge of Alaska’s retirement system for public employees has recommended the closure of its commonly used managed accounts program after an independent review found workers were being charged high fees and receiving lower-than-expected returns. 

 

Catch up fast on policy: Interior edition. Axios

President Biden's choice for the No. 2 job at the Interior Department could bring new tensions over oil drilling on public lands. He tapped Laura Daniel-Davis as acting deputy secretary to replace Tommy Beaudreau, who recently left the role. Davis moves into the gig after serving as principal deputy assistant secretary for land and minerals management. Sen. John Barrasso, the top energy committee Republican, alleged she has "continually blocked access to important minerals and restricted oil and gas leasing on federal lands.”  Nicole Gentile of the Center for American Progress said Daniel-Davis can "deliver on the president's vision of conserving public lands and wildlife," expanding outdoor access and working with tribal groups.

 

Health Care

Alaska's Health Department measures results of disease prevention programs in pounds. Alaska Beacon

Cumulative pounds lost may seem like a strange metric for the state to monitor, but it’s one tangible way to see that its efforts to reduce and prevent chronic disease are working.

 

Alaska's pharmacist shortage has meant reduced hours and long waits for prescriptions. ADN

Alaskans hoping to pick up prescriptions are facing temporary closures amid persistent staffing challenges at some pharmacies around the state, part of a longstanding pharmacist shortage in Alaska and nationwide.

 

Insured Americans struggling to afford care. Axios

Nearly a third of adults reported having medical or dental debt, and nearly half of them said it's at least $2,000.

 

White House wants naloxone in schools. Axios

The Biden administration on Monday will send a letter urging all schools to keep an opioid overdose reversal drug on hand and train staff and students on how to use it. The request is a response to the grim reality that opioid overdoses — particularly those involving illicit fentanyl — have risen rapidly among children and teenagers in recent years.

 

Combating Alaska's suicide crisis will take all of us. ADN

In our country, suicide is at an all-time high. Our armed forces are working to address a substantial increase in suicide among active-duty service men and women. And in writing about the youth mental health crisis, Sen. Dan Sullivan recently described the statistics as “shocking,” with a 29% increase in adolescent suicides over the past decade and a 50% increase in suicide attempts by teenage girls during the pandemic.

 

State again falls behind on processing food stamp benefits, creating new backlog for thousands of Alaskans. ADN

More than a year after the Alaska Division of Public Assistance first fell behind on processing food stamp benefits for thousands of Alaskans, the state agency is again reporting lengthy delays for new and returning applicants.

 

Ozempic's spell on markets. Axios

With its outsized power to grab headlines, upend entire industries and dominate the public conversation, Ozempic has become the Taylor Swift of the stock market. Krispy Kreme shares fell this week over worries that Novo Nordisk's Ozempic and other drugs that are being used for weight loss will shrink demand for donuts, Bloomberg reported — and that's not all.

 

"Pharmageddon" adds to Walgreens' woes. Axios

Walgreens, the nation's largest drugstore chain, is reeling from labor shortages, executive turnover, fierce competition, debt issues, retail theft — and now a worker walkout dubbed "Pharmageddon" that's also affecting CVS and Rite Aid.

 

Charted: Child-care cost surge. Axios

Parents' average child-care payment is up 32% from 2019. The report found that cost increases might be driving some parents out of the workforce to look after their children. The price surge outpaced overall inflation: The Consumer Price Index was up 20% over the same period.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (11/1/23): $86.53

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 (11/1/23): 475,862 bpd

 

$206 Million Federal Grant Will Strengthen Alaska's Electrical Grid Resilience. Alaska Business

A federal Department of Energy grant will provide for Anchorage-to-Kenai subsea cable and battery storage throughout the Alaska Railbelt Energy Grid within the next eight years, Alaska Congressional delegation says.

 

DOE awards $206.5 million for upgrading transmission system, adding batteries. Petroleum News

The largest component of the upgrades will consist of the construction of a new transmission line between the Kenai Peninsula and the Anchorage and Matanuska-Susitna region. Currently the regions are connected by a single transmission line that runs along the Turnagain Arm -- this line has limited capacity and represents a single point of failure in the Railbelt electrical system.

The new transmission line will essentially consist of a high-voltage, direct current submarine line, probably running from Nikiski on the Kenai Peninsula to the legacy Beluga Power station on the north side of the Cook Inlet.

Battery energy storage systems will be installed in the central and northern sectors of the grid, to help stabilize the power supplies.

 

Alaska Gov. Dunleavy plans legislation intended to prevent natural gas shortage in Southcentral. Alaska Beacon

The governor said he also expects to introduce legislation to boost other forms of energy development. The details of those proposals are not yet available.

 

Marathon evaluating plant for LNG import. Petroleum News

Importing LNG could meet the needs of utilities by 2027, and the utilities said that option would continue to be explored in the next phase of the assessment, expected to be completed by the end of the year.

 

Norway must prepare for end of oil, gas: Climate body. Argus Media

Norway's climate change committee said today the government should begin to prepare for "the final phase of Norwegian petroleum activities," recommending a number of far-reaching measures including an immediate halt to exploration and extraction permitting.

 

Solar and wind power curtailments are rising in California. EIA

The California Independent System Operator (CAISO), the grid operator for most of the state, is increasingly curtailing solar- and wind-powered electricity generation as it faces the rapid growth of wind and solar power in California. Grid operators require wind and solar generators to curtail production to reduce energy output below the levels they would have otherwise produced during periods of:

Congestion, when power lines don’t have enough capacity to deliver available energy and oversupply, when generation exceeds customer electricity demand.

 

Give Cook Inlet natural gas producers a break on state royalty to get more gas supply, governor says. Frontiersman

Alaska Gov. Mike Dunleavy will propose reductions in royalties on state leases in Cook Inlet to spur more natural gas coming from the Inlet, where production is declining. It is the second initiative the governor has announced this year to increase the gas supply for Southcentral Alaska communities. The first is an option for net profits bidding in an upcoming lease sale, which is hoped will bring in more bids for leases along with exploration.

 

Big in policy: $1.3B for transmission lines. Axios

The Energy Department is committing up to $1.3 billion to help enable three big interstate transmission lines. The money via the 2021 infrastructure law is for "capacity contracts.”

 

New tie-ups show carbon removal's evolution. Axios

Two pieces of carbon removal news this morning provide a snapshot of the young industry's evolution. Captura, a Caltech spinout, is partnering with energy giant Equinor on a pilot plant in Norway. They hope the initial 1,000-metric-ton-per-year effort creates a "launchpad" to build large-scale, commercial plants in key regions around the world. Captura uses renewables to power a method called electrodialysis that ultimately results in removal of carbon dioxide from ocean water. New tie-ups show carbon removal's evolution. Carbon removal volumes remain tiny today, and it will likely take several approaches to achieve scale.

 

Oct. 18, 2023 Precious Metal Prices

Gold - $1996.59

Silver - $23.22

Platinum - $941.44

Palladium - $1162.55

 

Alaska Permanent Fund

website

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



Alaska History

 

October 29

·     1965 - Nuclear Test on Amchitka Island

·     1989 - President Bush signed the bill for $15 Million in WWII war reparations to the Aleuts

October 30

·     1983 - Alaska's four time zones combined into only two

October 31

·     1935 - Juneau-Douglas Bridge opened

Watch: Alaskan Keegan Messing shows off his Olympic figure skating moves at Rabbit Lake. ADN

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)



Copyright © 2023. All Rights Reserved.

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