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Senate Resources Backs ANCs While Urging Continued Russian Seafood Ban

Todd M Lindley
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Senate Resources Backs ANCs While Urging Continued Russian Seafood Ban

The Alaska Senate Resources Committee convened Friday afternoon to consider two resolutions with significant implications for Alaska’s economy and coastal communities. Senators advanced SJR 26 supporting the federal 8(a) Business Development Program and held HJR 29 calling for continuation of the ban on Russian seafood imports.

SJR 26 – Defending the 8(a) Program for Alaska Native Corporations

The committee opened with SJR 26, which expresses legislative support for preserving full participation of Alaska Native Corporations and tribally owned entities in the federal 8(a) program amid ongoing federal review. Chair Senator Cathy Giessel (R – Anchorage) invited staff Paige Brown to present the resolution, framing it as a defense of long-term economic opportunity rooted in the Alaska Native Claims Settlement Act.

Brown highlighted ANCs’ role: “Through 8(a) participation, ANCSA and tribal entities have created thousands of jobs across Alaska, including in rural and underserved regions.” The resolution underscores billions in statewide economic activity from construction, engineering, energy, defense, logistics, IT, and professional services.

Nicole Borromeo, representing the ANCSA Regional Association, noted that in 2022, regionally based ANCSA firms generated upwards of $13.5 billion in total revenue, including $4.5 billion from Alaska-based operations. “Dollars earned out of state are brought home to support Alaska’s economy,” she emphasized, adding that regional corporations spent $2.8 billion in Alaska on wages, goods, services, distributions, charitable giving, education, and taxes. Including direct, indirect, and induced effects, they supported nearly 25,000 jobs and paid nearly $2 billion in wages, contributing upwards of $6 billion in statewide economic activity.

Senator Myers (R – North Pole) questioned the resolution’s scope, noting non-Native small businesses also benefit from 8(a). The committee adopted a committee substitute (Version N) to broaden language, addressing the entire program under federal scrutiny while maintaining focus on ANCs.

Sheri Buretta from Chugach Alaska Corporation and the Alaska Federation of Natives reinforced the message: “The 8(a) program is how we got here.” She described how 8(a) helped recovery after the Exxon Valdez spill and detailed $32.6 million returned to shareholders and communities in 2024 alone. “When you weaken the 8(a) program, you don’t just hurt Alaska, you weaken our national defense,” she stated, citing strategic assets like critical minerals and missile defense at Fort Greely.

The committee opened and closed public testimony with no additional speakers. An amendment deadline was set for March 4 at noon, and the resolution was held for further consideration.

Part 2: HJR 29 – Protecting Alaska’s Seafood Industry from Russian Imports

The committee then turned to HJR 29, urging continuation and enforcement of the federal ban on Russian seafood imports set to expire April 15, 2026. Representative Louise Stutes (R – Kodiak) presented the resolution as a critical tool to support Alaska’s largest private employer.

Staff Matt Greuning detailed the executive orders (14024, 14068, 14114) and their expansion, noting the ban’s extension through April 2025. Without renewal, Alaska faces “a serious existential threat” from Russia’s state-subsidized fleet and dumping practices. “We finally got to the point this last winter where Russian seafood is out of retailers and out of grocery stores in the U.S.” He warned that without extension, stability remains elusive amid depressed prices and inflationary pressures.

Jeremy Woodrow of the Alaska Seafood Marketing Institute provided market context: “The challenges we have is due to the seasonality and the volatility of our fisheries, right? Not every year is a perfect season. Our seasons kind of come and go as well. So the timing to be able to really get our products into the market respond to consumers’ needs. There is a little bit of lag; it takes a little bit of time. Why this ban is important is we need more time.”

Julie Decker from the Pacific Seafood Processors Association, representing processors in 22 coastal communities, quantified impacts: “In 2023, the Alaska seafood industry faced historically challenging economic conditions. NOAA estimated losses felt by Alaska in 2023 was $1.8 billion dollars.” She highlighted Russia’s ban on U.S. seafood since 2014 and ongoing investments in a seafood hub with China and North Korea, including reported use of North Korean labor.

A resident from Kodiak, a commercial fisherman with 50 years of experience, offered a straightforward assessment: “When they produce triple the amount of pink salmon that we produce and turn around and sell it for half the price that we’re trying to break even with… this resolution will help with our domestic market.”

Both measures reflect the committee’s focus on protecting Alaska’s unique economic drivers—Native corporations and the seafood industry—while navigating federal policy shifts.

House State Affairs Advances HJR23 While Sparking Debate on Tax Proposal

Todd M Lindley
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1
House State Affairs Advances HJR23 While Sparking Debate on Tax Proposal

The House State Affairs Committee advanced HJR 23, a proposed constitutional amendment aimed at strengthening requirements for a governor’s balanced budget. The committee then turned to House Bill 152, a controversial measure to establish an education head tax, engaging in substantive discussion on its structure, implementation, and potential impacts.

After a brief recap of prior hearings on HJR 23, no amendments were submitted by deadline from the previous day. Representative Underwood (R – Wasilla), the sponsor, offered closing remarks: “I just want to say thank you for giving me the time to present this and for your really good questions. It helped prepare me for the next committee of referral.” The resolution advanced unanimously with individual recommendations and attached fiscal notes.

The committee then resumed its fourth hearing on HB 152, sponsored by Representative Galvin (NA – Anchorage). The bill proposes a $150 head tax on every wage earner in Alaska combined with a 4% tax on income above $150,000 for single filers (or $300,000 for joint filers), while closing the S-corp loophole to capture high-earning non-residents. Galvin framed it as a component of a sustainable fiscal plan to stabilize unpredictable revenues. “This bill strengthens our democracy by preparing the next generation to participate fully and responsibly,” she said during earlier testimony, though the focus shifted to revenue mechanics.

Staffer David Jiang detailed the technical levers: federal adjusted gross income as the base, with a large standard deduction and flat 4% rate above thresholds. Galvin acknowledged necessary amendments for joint filers and emphasized simplicity for implementation using existing federal forms. She presented scenarios showing how adjusting the head tax or income threshold could generate over half a billion dollars, noting data predates major North Slope projects like Pikka and Willow. “We went ahead and chose a way for us to implement a tax system that would allow us to use the federal tax forms that we already have in place,” she explained.

Committee members raised pointed questions. Representative St. Clair (R – Wasilla) asked why the bill is labeled an “education tax” when Article IX, Section 7 prohibits dedicated funds. Galvin conceded it is intent language only, stating education and healthcare represent the state’s deepest spending holes. Representative McCabe (R – Big Lake) challenged the fairness, citing estimates that non-residents would contribute only 15-25% of revenue. Galvin countered that these workers benefit from Alaska resources and high-wage jobs, arguing the tax invests in local education to prepare Alaskans for those opportunities. She disputed the percentage, suggesting updated data from new projects could show higher non-resident contributions.

Implementation concerns dominated. Representative Holland (NA – Holland) asked about timelines and phasing. Galvin noted the head tax could be implemented relatively quickly via payroll deductions, but the income tax portion might take two years. Representative Hannon (D – Juneau) inquired about comparative rates in western states and dedication mechanisms for education revenue. Galvin committed to providing data on national and regional income tax rates, noting Alaska’s overall tax burden remains the lowest at 5.8%.

Representative Allard (R – Eagle River) expressed privacy and consent concerns for 16-year-olds under a related pre-registration bill heard earlier, but discussion stayed on HB 152’s adult wage earner impacts. Representative Vance (R – Homer) highlighted his district’s 24% higher cost of living, questioning the $150 threshold’s suitability. Galvin responded that the figure was chosen to avoid taking “food off the table” while covering administrative costs, leaving adjustments to the committee.

The hearing wrapped with Galvin’s staff confirming research requests, including S-corp numbers and PFD tax credit implications. Chair Carrick set an amendment deadline for March 6 at 5:00 p.m. and scheduled another hearing for March 5. The bill was set aside.

The session reflected the committee’s careful navigation of fiscal innovation against constituent resistance, with Galvin emphasizing shared responsibility: “Every Alaskan now is going to say, ‘I am holding my state representative accountable because I am paying taxes.’”

House Finance Reviews Civic Engagement and Commerce Budget Priorities

Todd M Lindley
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0
House Finance Reviews Civic Engagement and Commerce Budget Priorities

The Alaska House Finance Committee convened Thursday in Juneau to revisit HB 21 on voter pre-registration for minors and receive a detailed budget overview from the Department of Commerce, Community, and Economic Development (DCCED).

HB 21 – Pre-Registration for 16-Year-Olds Sparks Debate on Civic Education and Implementation

Representative Andi Story (D – Juneau), sponsor of HB 21, opened with a passionate case for expanding civic participation. The bill would allow 16-year-olds to pre-register to vote, building on existing law that permits registration three months before age 18. Story emphasized long-term habit formation: “Voting is habit-forming. When someone participates in their first eligible election, they are significantly more likely to continue voting throughout their life.” She cited turnout disparities—52.62% among 18-19-year-olds versus over 71% for 65-75-year-olds—and argued early engagement while students remain connected to schools and families strengthens democracy.

The committee probed efficacy and operations. Representative Stapp (R – Fairbanks) referenced a 2017 Fowler study showing marginal turnout impact and raised concerns about DMV IT capacity, noting the division is “two years behind on critical projects.” DMV Director Kathy Wallace clarified the fiscal note’s $149,000 annual cost for one analyst/programmer position: “It’s not simply changing a couple of forms… there is a lot more programming and interagency connectivity.” The Division of Elections fiscal note estimated $16,410 annually for processing, reflecting updated population data and postage rates.

Privacy and consent dominated discussion. Representative Allard (R – Eagle River) voiced strong concerns about exposing minors to political mailings without parental approval: “At sixteen years old, I don’t think anybody should be open to political propaganda.” Director Carol Beecher assured pre-registered minors would remain on a separate confidential list not provided to the public, though she could not guarantee 100% security against breaches. Story highlighted safeguards: a confirmation notice three months before age 18 requires household verification of residency and intent. No parental consent is required, prompting debate on maturity and attestation under penalty of perjury.

The committee held the bill after reviewing fiscal notes, with plans to revisit implementation details.

DCCED Budget Presentation Reveals Operational Efficiencies and Fee Stabilization Efforts

DCCED Commissioner Julie Sande and Administrative Services Director Hannah Lager presented the department’s FY2027 request of $242.8 million, with unrestricted general funds at $15.9 million—down $5.8 million from the prior year. Lager emphasized DCCED’s small UGF footprint while managing a $1.9 billion portfolio of grants and loans. Key changes included continuing disaster recovery staffing with federal awards, stabilizing CBPL licensing fees by shifting $4.2 million in investigations costs to broader business license and corporate receipts, and establishing the Railbelt Transmission Organization (RTO) under AEA.

The fee stabilization proposal drew focused questions. Lager explained it reduces inequity where “good actors” subsidize investigations of others, aligning with prior pandemic-era general fund offsets. Representative Hannon (D – Juneau) inquired whether the shift would mitigate impacts from multi-state compacts reducing Alaska-based licensees. Lager confirmed it would stabilize fees in smaller pools. On contracting versus vacancies, Lager noted deliberate reevaluation of roles, with examples like the actuary position offsetting expensive external services once filled.

The presentation highlighted successes: Alaska seafood remains the top protein on U.S. restaurant menus, and community management sustainability improved, with non-compliant communities dropping from 31% in 2016 to 15.8% in 2025. Lager credited rural utility leadership longevity and cooperative models like AVEC for efficiency gains saving residents and the PCE program millions annually.

Next week’s agenda including family services and children’s services budget details.

Second Day of Testimony: Urge Investments in Victim Services, Education, and Infrastructure

Todd M Lindley
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0
Second Day of Testimony: Urge Investments in Victim Services, Education, and Infrastructure

Residents from across Alaska’s remote regions delivered a unified message during Thursday’s Senate Finance Committee public testimony: increase funding for survivor services, education infrastructure, public safety, and tourism marketing to address inflation, workforce shortages, and long-term community needs. The session focused on the FY27 operating, capital, and mental health budgets alongside adjustments in House Bill 289, the current-year supplemental.

A resident from Bethel, speaking as executive director of a regional victim services organization, stressed the erosion of purchasing power since flat funding began in 2017. She highlighted a 200 percent rise in transitional housing demand and urged a $2 million boost to CDVSA victim services grants plus $500,000 for legal aid. “When a person experiences violence and comes to shelter, they’re starting their life over again,” she said, noting elders and families now require extensive navigation support.

Similar appeals came from a resident from Hooper Bay, who described her shelter as the only 24/7 resource for three villages, and a resident from Utqiagvik, emphasizing the North Slope’s sole shelter serving eight communities. A resident from Nome, identifying as a survivor, called for stable staffing to handle generational trauma: “We continue to take the generations to come, their voices away because we do not provide the services that they really need.”

Public safety resonated strongly. A resident from Nome advocated preserving proposed VPSO increments while warning that positions alone fail without full operational support—housing, equipment, training, and partnerships. “A VPSO without program support is an officer without backup,” she stated. Residents from Kotzebue reinforced this, urging full funding for behavioral health grants decoupled from volatile tax revenues such as alcohol, tobacco, and marijuana.

Residents from the Bristol Bay region praised the BBRCTE vocational program, noting it enables pilots, healthcare pathways, and confidence for rural students. They urged retaining proposed residential school funding.

A resident from Fairbanks requested $10 million for statewide tourism marketing, citing 5.6 billion dollars in economic impact and 48,000 jobs. “When the state invests in marketing, it’s not a subsidy; it’s an investment that generates new economic activity,” he said. Infrastructure needs surfaced from a resident from Cordova, who warned of budget gaps affecting local match for transportation projects.

General feedback on HB 289—the $467.7 million supplemental scrutinized the previous day—aligned closely with public priorities

This testimony mirrors the committee’s February 25 focus on revenue shortfalls, disaster needs, and operational urgencies, as detailed in coverage from Must Read Alaska.

Arctic Affairs Committee Weighs Nuclear Promise and Greenland Partnership

Todd M Lindley
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Arctic Affairs Committee Weighs Nuclear Promise and Greenland Partnership

The Alaska Senate Arctic Affairs Committee convened Thursday in Juneau for a wide-ranging briefing on advanced nuclear technologies and a resolution reaffirming ties with Greenland, highlighting the state’s push for energy innovation and circumpolar cooperation.

Advanced Nuclear Briefing Highlights Safety, Timelines, and Rural Energy Savings

Chief Scientist Gwen Holdmann of the Alaska Center for Energy and Power delivered a detailed overview of small modular and microreactors, stressing their inherent safety features and factory-built modularity. She placed printed draft guides on advanced reactors before each member, noting persistent public confusion. “These reactors have a negative reactivity coefficient,” Holdmann explained. “They really can’t melt down in the way conventional reactors did.”

Holdmann updated the committee on the Eielson Air Force Base microreactor project, where Oklo received a notice of intent to award last summer, and Fort Wainwright’s potential under Project Janus. She described 2028 as the publicly stated target for Eielson operations but called it “very optimistic.” On licensing, she noted military and test reactors bypass full NRC processes, while commercial designs face longer reviews. “The ten-year horizon is shrinking,” she said, citing ongoing INL pilots and fuel supply chain milestones like Project Pele’s TRISO delivery.

Turning to rural energy, Holdmann presented data showing AVEC communities save residents roughly $1.7 million annually compared to independent utilities in Southwest Alaska through pooled resources and efficiency. “Pooling of resources and trying to get a little bit more bang for your buck,” she emphasized, while noting Alaska’s subsidy levels remain lower than many northern peers.

SJR 24 Honors Enduring Alaska-Greenland Relationship

The committee then considered Senate Joint Resolution 24, which honors longstanding U.S.-Greenland-Denmark cooperation in the Arctic. Staff Paige Brown outlined shared challenges including high living costs, food security, and climate impacts such as coastal erosion. “Progress in the Arctic depends on strong relationships with trusted partners, particularly Greenland and the Kingdom of Denmark,” Brown stated.

Chair Cathy Giessel (R – Anchorage) framed the resolution as a proactive affirmation of circumpolar collaboration rooted in cultural and historical ties between Alaska Natives and Greenland Inuit. “The Arctic has been noted for its peaceful collaboration, and this is intended to emphasize that and a desire to maintain it,” Giessel said. Senator Scott Kawasaki (D – Fairbanks) expressed support but cautioned about potential misperceptions amid federal discussions. Senator Gary Stevens (R – Kodiak) added a call for historical accuracy regarding past U.S.-Greenland relations.

The committee set an amendment deadline of March 4 at 5:00 p.m. and held the resolution for further consideration on May 5.

The session underscored Alaska’s dual priorities: positioning for next-generation energy solutions that could transform rural power economics and reinforcing diplomatic ties critical to Arctic stability.

Alaska Family Action Releases 2026 Values Voter Guide

Todd M Lindley
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Alaska Family Action Releases 2026 Values Voter Guide

With mail-in ballots set to arrive in Anchorage mailboxes the week of March 15 for the April 7 municipal election, Alaska Family Action has unveiled its 2026 Values Voter Guide aimed at the Anchorage Assembly and School Board races. The statewide Christ-centered public policy group is urging residents to review the guide and share it widely, arguing that local outcomes shape the entire state.

Roughly 40 percent of Alaskans live in Anchorage, the organization noted, and its legislative delegation carries outsized influence in Juneau. Yet the group contends the city—often dubbed “Los Anchorage” by critics—continues to lose residents due to crime, high taxes, underperforming schools and policies that “reward bad behavior.” Leaders claim Anchorage is “a red city run by blue leaders because conservatives don’t vote,” pointing to low turnout among faith-based and traditional-values voters as the key barrier to change.

To spark engagement, Alaska Family Action is hosting an Anchorage Assembly luncheon forum Friday, March 20, at the Petroleum Club. Attendees will pray for endorsed candidates, discuss how Biblical truth applies to municipal decisions on taxes, regulations and homelessness, and participate in a “speed dating” Q&A with candidates rotating table-to-table. Registration is open and officials expect a full house.

The organization says the guide, combined with personal outreach, can create the “multiplier effect” needed to shift Anchorage politics. Pastors and citizens are encouraged to direct voters to the resource and get involved in campaigns over the next few weeks.

House Transportation Committee Advances Vehicle Bills with Focus on Commercial Autonomy and Title Standards

Todd M Lindley
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0
House Transportation Committee Advances Vehicle Bills with Focus on Commercial Autonomy and Title Standards

The Alaska House Transportation Committee convened yesterday to refine legislation shaping the state’s future mobility landscape. Lawmakers adopted targeted amendments to House Bill 217 on autonomous vehicles before holding it for further review, then moved to discuss House Bill 303 on motor vehicle registration. The session underscored the need to balance innovation with practical enforcement and alignment with federal standards.

HB 217 – Clarifying Commercial Autonomous Vehicles Amid Enforcement Questions

The committee opened with HB 217, which seeks to establish a regulatory framework for autonomous vehicles, particularly commercial applications. Two amendments were adopted without objection. Representative Mina’s (D – Anchorage) Amendment A2 defined “personal delivery devices” (small sidewalk robots) to exclude them from the broader autonomous vehicle definition, preventing municipal regulatory confusion. “The defines those little robots, which are actually called personal delivery devices in statute,” Mina explained.

Representative Nelson’s (R – Sutton) Amendment A1 narrowed the bill’s scope to commercial vehicles such as big rigs and large passenger carriers. “This really dials it into commercial vehicles, saying exactly what it’ll be applied to, which is what our discussion all revolved around,” Nelson stated.

Discussion intensified when Representative McCabe (R – Big Lake) raised enforcement challenges, questioning fault determination, human operator verification, and ethical decision-making in crash scenarios. Emerging Technologies Coordinator Benjamin Glenn from the Department of Transportation provided key context: the bill targets SAE levels 3-5 automation, but verification relies on operator statements or post-incident data since capabilities are software-based. “The bill just defines capability, not any external markers,” Glenn noted.

Co-Chair Carrick (D – Fairbanks) emphasized keeping the bill narrowly focused on commercial vehicles rather than opening a broader autonomy debate. After Glenn’s input on federal preemption risks (HR 7390) and the need for ongoing stakeholder work, the committee held HB 217 and reopened the amendment deadline.

HB 303 – Updating Vehicle Title Requirements for Modern Standards

The committee then turned to HB 303, sponsored by Representative St. Clair (R – Wasilla), which aligns Alaska with federal and most state standards by establishing a 25-year rolling average for vehicle title requirements. No amendments were offered. St. Clair described it as straightforward modernization: “This is simple common-sense legislation. It’s just bringing us on par with the feds and most other states with a 25-year rolling average.”

With no discussion, Representative Stutes (R – Kodiak) moved the bill, which advanced unanimously with a “do pass” recommendation and zero fiscal note.

Next week’s “Tech Week” agenda includes presentations on drone innovation and Department of Transportation technology initiatives. The actions signal legislative intent to modernize transportation rules while addressing practical implementation hurdles for emerging technologies.

Public Urge Robust Funding for Renewables, Survivor Services, Education and Infrastructure as Senate Finance Weighs Budgets and Supplemental

Todd M Lindley
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0
Public Urge Robust Funding for Renewables, Survivor Services, Education and Infrastructure as Senate Finance Weighs Budgets and Supplemental

Alaskans from across the state delivered a clear message during Thursday’s Senate Finance Committee public testimony session: invest now in renewable energy, domestic violence services, early childhood programs, education, tourism marketing and transportation infrastructure to safeguard communities, stabilize budgets and prevent long-term costs. The next two-days of hearings will cover the FY27 operating budget (SB 213), capital budget (SB 214), mental health budget (SB 215) and the current-year supplemental adjustments in House Bill 289.

A resident from Ketchikan, speaking for Southeast utilities and the region’s economic development group, called for $14.2 million — the recent three-year average — or at minimum $10 million for the Renewable Energy Fund. He cited Alaska Energy Authority data showing REF projects already offset 13 million gallons of diesel annually, worth $52 million at conservative pricing — more than the Power Cost Equalization endowment can sustainably pay out. Without continued REF support, he warned, PCE pro-ration risks rise and rural schools, businesses and jobs in mining, timber and seafood would suffer higher energy costs.

Multiple residents from rural communities and hub towns, including those in Southeast and Kodiak, echoed calls for a $2.5 million increase to the Council on Domestic Violence and Sexual Assault grant line in the Department of Public Safety, with $500,000 specifically for civil legal services. One advocate from Prince of Wales Island described how flat funding since 2017 forces programs to cut emergency shelter, transportation and basic needs support even as demand rose 53 percent in her area last year. “We may be forced to do away with critical services,” she said, noting grocery prices alone have climbed more than 60 percent.

Education and early childhood priorities dominated testimony from Juneau and Southeast residents. A Juneau parent highlighted 600 open teaching positions statewide at the start of the school year and urged sustained base student allocation growth beyond last year’s $20 increase. Another Juneau resident, an early childhood professional, pressed for $5.72 million to restore and expand the Alaska Infant Learning Program, shifting eligibility from 50 percent to 25 percent developmental delay. She also supported full use of the $5.9 million FY26 childcare benefits appropriation and another round of Roots Awards retention stipends, noting turnover remains the biggest operational challenge for providers.

Tourism leaders from Skagway and Sitka framed marketing as economic infrastructure. A Sitka official requested $10 million in statewide tourism marketing funds, citing 5.6 billion dollars in total economic impact and 48,000 jobs supported last year. A Sitka business owner emphasized shoulder-season independent travel, noting that visitors who saw Alaska Travel Industry Association campaigns were twice as likely to visit and that such spending keeps coastal communities viable year-round.

Infrastructure and fiscal stability also surfaced. A resident from Cordova stressed the need for timely federal transportation matching funds to avoid delaying projects halfway through the short construction season, while a Sitka-area advocate urged repayment of the Higher Education Investment Fund. A Haines resident highlighted cost-effective home modifications in the mental health budget that keep seniors and veterans independent rather than in distant facilities.

General feedback on HB 289 — the current-year supplemental — showed strong alignment with the committee’s February 25 scrutiny of its $467.7 million package. Residents urged swift approval of the $70.2 million DOT match and disaster/fire suppression capitalizations to prevent construction delays and maintain response capacity amid ongoing events. Many echoed OMB Director Lacey Sanders’ warnings on oil revenue volatility and the value of headroom, while pushing for proactive REF and CDVSA investments to reduce future PCE and social service burdens. The Must Read Alaska report on the prior day’s session noted the committee’s focus on a $52 million revenue shortfall, $40 million disaster relief request and $98.7 million fire suppression need, with Sanders stressing urgency to avoid defaults. Public testimony Thursday reinforced those risks, calling for stable funding to avert compounding shortfalls.

One Juneau resident captured the prevailing sentiment: “We have the tools, we have the resources. We really just need the will.”

Public testimony continues today with northern and western regions. With HB 289 expected back next week, lawmakers face pressure to balance immediate supplemental needs against long-term FY27 priorities amid persistent revenue uncertainty.

SB 150: Debates Net Metering Amid Equity and Grid Concerns

Todd M Lindley
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1
SB 150: Debates Net Metering Amid Equity and Grid Concerns

The Alaska Senate Labor and Commerce Committee held its second hearing on Senate Bill 150, a measure aimed at establishing a standardized net metering program to boost renewable energy generation across the state. The meeting focused on recapping the bill’s provisions, analyzing potential pitfalls from other states’ experiences, and discussing a draft committee substitute. While no formal action was taken, the discussion highlighted tensions between incentivizing solar adoption and ensuring equitable costs for all utility customers.

SB 150 seeks to allow consumer-generators—typically homeowners with solar panels—to receive full retail credits for excess energy fed back into the grid. Curtis Thayer from the Alaska Energy Authority (AEA) provided a recap, explaining that credits would accrue monthly and expire annually on March 31, promoting renewable investments by matching the rate consumers pay for purchased energy. A key feature is a reimbursement fund administered by AEA to mitigate utility revenue shortfalls, potentially preventing rate hikes for non-solar customers.

Gwen Holdmann, Chief Scientist at the Alaska Center for Energy and Power (ACEP), delivered an analysis, drawing lessons from states like Hawaii and California, where initial net metering policies have been reformed due to unintended consequences. She categorized issues into equity and cost-shifting, grid value of distributed solar, system caps, and battery storage promotion. On equity, Holdmann warned that paying full retail for excess power shifts fixed grid costs—such as maintenance—to non-solar users, potentially increasing their bills. “This cost shift still occurs. It’s just that we’re socializing it in a different way more at the state level,” Holdmann said, noting the fund’s uniqueness but lack of automatic funding mechanism.

Senator Rob Yundt (R – Wasilla) voiced concerns about disproportionate impacts: “It seems like it would disproportionately hurt those that don’t have solar.” Holdmann affirmed this, suggesting alternatives like utility-determined caps or innovative rate structures, such as monthly system charges for solar users to cover grid services. She also recommended trimming the bill’s list of qualifying technologies, excluding unlikely small-scale options like geothermal or ocean thermal energy.

Questions arose about the Regulatory Commission of Alaska’s (RCA) authority. Holdmann expressed doubt whether current statutes allow utilities to voluntarily implement full retail net metering without legislative changes, citing equity restrictions within rate classes. RCA’s Julie Vogler clarified that SB 150 amends discrimination statutes to exclude net metering, and existing regulations (3 AAC 5 900-949) would need updates. Thayer emphasized the need for legislative guidance, as utilities lack a unified plan and seek parameters for fair implementation.

Chair Bjorkman (R – Nikiski) noted a draft committee substitute incorporating some of Holdmann’s concepts, distributed for review but not formally adopted. “It merely is a draft for this iterative process to continue,” he said, aiming for a system that’s “fair and equitable as well as encourage people to build out additional electricity generation.”

The bill aligns with broader efforts to expand solar access, potentially making installations more economical by allowing annual credit rollovers to offset winter shortfalls. Advocates like Cook Inletkeeper argue it could incentivize larger systems, reducing reliance on gas amid shortages. However, critics worry about uncapping net metering without safeguards, as seen in other states where saturation strained grids.

SB 150 was set aside, with potential amendments addressing funding, caps, and equity.

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