Sunday, July 27, 2025
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Senate Finance hears how SB 114 would drive investment from state

Senate Bill 114 would mean a 76% tax increase on oil production in Alaska, according to the State Department of Revenue.

In bill sponsor Sen. Bill Wielechowski’s world, this is what is known as a “tweak.”

Kara Moriarty, speaking on behalf of the Alaska Oil and Gas Association, reminded the committee that oil and gas industry contributes more to the economy than any other industry in the state, according to McKinley Research Group, which concluded that the oil and gas industry accounts for 24% of the jobs in the state. For every one job that is a direct oil and gas job, there are 15 that are created indirectly through indirect payments or tax payments.

“Increasing taxes result in a higher net cost to oil and gas companies,” Moriarty said, and this means companies have less to invest. Less to invest will lead to impacts in Cook Inlet and the North Slope.

She also reminded the senators that SB 21, which passed in 2013 and was ratified by voters even after Democrats were able to get a repeal initiative on the ballot, has helped stabilize production, and that actual oil production in Alaska has beat forecasts for the past 10 years.

Critics note that SB 114 has not been subjected to current economic modeling, and its authors are ignoring how much the world has changed in the past 10 year, including how difficult and costly it is to get projects financed and approved. SB 114 is one more disincentive to companies who may want to invest in Alaska.

The bill has also not been analyzed fully by tax experts and is being rushed through the Senate. SB 114 is a hugely complicated bill that runs 42 pages long with sections such as:

Notwithstanding AS 43.55.020, a person subject to tax under AS 43.55.011(e), (f),                                  
25 and (o); 43.55.020(a), (e), (g), (h), (j), and (l); 43.55.024(c), (e), (i), and (j); 43.55.030(e) and                   
26 (f); 43.55.040; 43.55.075(b); 43.55.160(a), (e), (f), (g), and (h); 43.55.165(a), (b), (e), (g), (h),                   
27 (l), (m), (n), (o), and (r); 43.55.170(a) and (b); 43.55.180(a); 43.55.890; and 43.55.895(b), as                        
28 amended by secs. 2 - 4, 6 - 15, 17 - 25, and 27 - 41 of this Act, and 43.55.011(q);                                     
29 43.55.024(k); and 43.55.160(i), added by secs. 5, 16, and 26 of this Act, shall pay the balance                         
30 of the tax due before January 1, 2024, by January 1, 2024. Until January 1, 2024, the                                   
31 Department of Revenue shall waive interest that would otherwise accrue under AS 43.05.225                               

01 and civil and criminal penalties accruing under AS 43.05.220, 43.05.245, and 43.05.290 that                             
02 are a result of the retroactivity of this Act.                                   

It’s nearly certain that most legislators will not able to read it or comprehend the unintended consequences of SB 114 fully, as this year’s Legislature is represented by many new lawmakers — three new senators and 17 new representatives, for a total of one third of the entire Legislature being freshmen.

The entire bill is at this link.

Testimony continues later this week in Senate Finance, including at 1:30 pm on Thursday, and 9 am on Friday.

Troopers start wearing body-cams

The Alaska Department of Public Safety has begun a phased implementation of body-worn cameras for its troopers and officers across Alaska.

Some 30 Alaska State Troopers, Wildlife Troopers, and Court Services Officers have been equipped with the latest body-worn camera technology as part of a limited deployment phase to prepare for a full roll-out later this year.

The department was awarded $3.58 million in state funding and $938,000 in federal funding in July 2022 to finance the project.

After evaluating several options, DPS chose Motorola’s V300 body-worn camera in late 2022, as it was deemed the best fit for the department’s needs. DPS aims to provide every Alaska State Trooper, Wildlife Trooper, Deputy Fire Marshal, Court Services Officer, and Village Public Safety Officer with a body-worn camera as part of the program.

Alaska Department of Public Safety Commissioner James Cockrell believes they will be an essential tool in modern-day policing, providing an asset to troopers, officers, and the public they serve. Despite a few remaining hurdles, Cockrell is confident that the department will continue to move forward.

DPS has also finalized the policy that will govern the use of body-worn cameras, dash cameras, audio recorders, and other audio and video capturing devices after receiving public feedback earlier this year.

DPS conducted a public comment period on the policy in February and received input from staff, the Public Safety Employees Association, and other stakeholders during the spring to incorporate the best suggestions and recommendations into the final version.

The final version of the policy can be found at: https://dps.alaska.gov/bodycam

Ketchikan man pleads guilty to child porn distribution

Walter William Onstad, a resident of Ketchikan, has pleaded guilty to charges of distributing child pornography, according to court documents. Onstad has confessed to being an administrator of a Kik group called “Anything Goes,” which was solely used for the distribution of child pornography.

As the group’s administrator, Onstad demanded that members provide images of child pornography to be admitted into the group. After verifying and approving the images, he would grant the individuals complete access to all of the images depicting children being sexually exploited on the Kik group.

Onstad was detained during his plea hearing and will remain in custody until his sentencing, which is scheduled for Aug. 17. If convicted, he faces a minimum sentence of five years in prison, with a maximum penalty of life imprisonment and five to life on supervised release. The decision regarding his sentence will be made by a federal district court judge who will consider the U.S. sentencing guidelines and other legal factors.

Detectives of the Ketchikan Police Department arrested the now-45-year-old Onstad in downtown Ketchikan on May 2, 2022, for the crime of possession of child pornography. The investigation established Onstad had been in possession of over 1,000 combined images and videos containing suspected child pornography.

This case had been initiated by the Alaska Internet Crimes Against Children Task Force at the Anchorage Police Department. Once it was determined it was under the jurisdiction of local police, Ketchikan Police Department took over the investigation.

Onstad had worked in both Ketchikan and Juneau, including time at Home Depot and Sportsman’s Warehouse, and last year was employed by Ketchikan Public Utilities.

Op-ed: Alaska has bright future if we keep oil taxes competitive

By JOE SCHIERHORN AND JIM JANSEN

Alaskans have good cause for celebration. The recently approved Willow project can reverse the last 10 years of population decline and outmigration, provide hundreds of jobs, dramatically increase Alaska’s oil production, fund state services for the next 40 years, provide permanence to the PFD and the Permanent Fund and revitalize Alaska’s economy. At peak production, this major oil project on the North Slope will increase oil production in Alaska by up to 180,000 barrels per day.

Last fall, Santos sanctioned over $2.6 billion to start phase one of the Pikka project, which will produce up to 80,000 barrels per day, giving us another reason to celebrate. This, combined with the Willow project, could mean up to 50% more oil flowing through the pipeline.

Alaskans can be proud today. We have consistently voted to maintain tax stability over the last 10 years which ensured the investment climate to allow Willow and Pikka to be funded. The Alaska voter said no to the repeal of SB 21 in 2014, and no again in 2020 to a poorly designed initiative that would have raised taxes on our legacy fields by as much as 300%.

Stable tax policies have allowed North Slope producers to halt production decline from fields that are approaching the half century mark. And explorers continue to make world-class discoveries despite highly volatile oil prices. We have a bright future if we can keep Alaska competitive and continue to attract investment to our resources industries.

Despite these encouraging and hopeful facts, the Senate Rules Committee recently introduced SB 114 which would make significant changes to SB 21, increasing taxes on new fields and existing North Slope oil production.

Among other changes, it adds instability and complexity to the tax system by dramatically changing the deductibility rules for capital costs of new projects like Willow and Pikka, which negatively impacts project economics and cash flow. Not only is this short-sighted view blatantly unfair to an industry that made investment decisions based upon our current oil tax structure, but it is also a major risk to the future viability of our state should these changes derail these projects.

Alaska’s leaders must be diligent today. It’s time to keep our eye on the future, maintain our competitiveness and investment stability and enjoy the long-term prosperity we are offered with Willow and Pikka.

Changing our tax structure at this late date on those projects’ developments could spoil the greatest opportunity of this generation.

Joe Schierhorn is Chairman and CEO of Northrim Bank and co-chair of KEEP Alaska Competitive. Jim Jansen is the Chairman of Lynden and co-chair of KEEP Alaska Competitive. Photo: North Slope work, by Rob Bussell.

Gov. Inslee won’t seek another term in Washington state

Washington State Gov. Jay Inslee announced Monday that he will not be seeking a fourth term in office.

Inslee, who has served as governor since 2013, is the nation’s longest serving current governor.

He is the second Washington state governor to serve three consecutive terms; Republican Dan Evans was the first. Washington has no term limits for governor.

“Our last decade of Washington’s storied history is one of growth and innovation. I am proud to have played a role in our state’s leadership on so many fronts.  We’ve passed the nation’s best climate policies, the most successful family leave benefits, the best college scholarship programs, a more fair legal justice system, and the most protective actions against gun violence. We’ve shown that diversity is a strength worth fighting for. This has been ten years of dynamic success,” he said.

“As governor, I have seen my role as inspiring our state ever forward and ever higher. I’m gratified to be able to say that this approach has worked to improve Washingtonians lives in many ways and many places,” Inslee said in a statement.

“Now is the time to intensely focus on all we can accomplish in the next year and a half, and I intend to do just that. I look forward to continued partnership with legislators and community leaders to address Washington’s homelessness crisis, speed our efforts to expand behavioral health services, continue our fight against climate change, and continue making Washington a beacon of progress for all,” he concluded.

In fact, Washington is right behind California when it comes to its number of residents living outside with no shelter — the second highest homeless population in the country by state.

Among cities, only New York City and the Los Angeles metro had more homeless people than Seattle and King County last year, when more than 250 people died on the streets and in the woods of King County, setting a record, according to KUOW. Hypothermia was the leading cause of those deaths.

Inslee highlighted what he sees as his achievements since 2013. In his words, they are:

Fish, family, freedom, and flushables

Rep. Mary Peltola has cosponsored a bill that would ban flushable wipes — the wipes that are flushable but don’t break down in sewer or septic systems. Unflushables, in other words.

The bill would not ban the popular wipes, but require the “flushables” to be properly labeled as non-flushable.

The WIPPES Act — Wastewater Infrastructure Pollution Prevention and Environmental Safety Act — is a product of Oregon Sen. Jeff Merkley, Maine Sen. Susan Collins, Michigan Rep. Lisa McClain and Peltola, to address the wastewater infrastructure concerns caused by the flushing of wet wipes that don’t break down in sewer and septic systems.

“During the COVID pandemic, Anchorage wastewater workers reported pulling up to 6,000 pounds of wipes daily out of the sewer system,”  Peltola said. “To address this issue, I’m proud to be a leader on the WIPPES Act, a common-sense bill that would take a significant step towards reducing the amount of trash that ends up in our sewers, rivers, and oceans. Every step that we can take to improve our wastewater infrastructure and marine habitats is worth it, especially when it’s as simple as adding a sentence to a package. It’s time to wipe out this problem for good.”

Public testimony opportunities for Monday and Tuesday

HB 66 is a bill requested by Gov. Mike Dunleavy that would increase penalties for illegal drug purveyors who distributes a substance that results in the death of the recipient. The penalty would be second-degree murder and there would be no time allowed off of the sentence for good behavior.

HB 28 would make marijuana convictions erased from public view for certain convictions that happened before the general legalization of cannabis.

HB 114 would increase taxes on oil companies like Hilcorp, which is an S corporation and thus avoids some state taxes.

These are three of the bills that will be subject to testimony on Monday and Tuesday. Here are some of the bills that Alaskans may wish to testify on:


Consideration of governor’s appointee Board of
Game – Stanley Hoffman
H RESOURCESMay 1, 2023, 1 pm
HB 66CONTROLLED SUB.;HOMICIDE;GOOD TIME DEDUC.H FINANCEMay 1, 1:30 pm
HB 28ACCESS TO MARIJUANA CONVICTION RECORDSH FINANCEMay 1, 1:30 pm
SB 114OIL & GAS PRODUCTION TAX; INCOME TAXS FINANCEMay 1, 1:30 pm
SB 84MONEY TRANSMISSION; VIRTUAL CURRENCYS JUDICIARYMay 1, 1:30 pm
SB 116ASSOCIATE AND PROFESSIONAL COUNSELORSS LABOR & COMMERCEMay 1, 1:30 pm
SB 132EMPLOYMENT TAX FOR EDUCATION FACILITIESS EDUCATIONMay 1, 3:30 pm
SB 56AK PERFORMANCE SCHOLARSHIP; ELIGIBILITYS EDUCATIONMay 1, 3:30 pm
HB 158MILITARY; UNITED STATES SPACE FORCEH MILITARY & VETERANS’ AFFAIRSMay 2, 1 pm
HB 3GOLD AND SILVER SPECIE AS LEGAL TENDERH FINANCEMay 2, 1:30 pm
HB 83CITIZEN ADVISORY COMM ON FEDERAL AREASH FINANCEMay 2, 1:30 pm
SB 127TAXATION: VEHICLE RENTALSS TRANSPORTATIONMay 2, 1:30 pm
HB 4ELECTIONS:REPEAL RANK CHOICE/OPEN PRIMARYH STATE AFFAIRSMay 2, 3 pm
HB 60RUNAWAYS; DFCS/DOH: DUTIES/LICENSING/INFOS HEALTH & SOCIAL SERVICESMay 2, 3:30 pm
SB 138ELECTIONS; VOTER REG.; CAMPAIGNSS STATE AFFAIRSMay 2, 3:30 pm
SB 95LICENSE PLATES: SPECIALTY ORGANIZATIONSS STATE AFFAIRSMay 2, 3:30 pm
HB 8ELECTRIC-ASSISTED BICYCLESS STATE AFFAIRSMay 2, 3:30 pm
SB 61US PRESIDENT ELECT. POPULAR VOTE COMPACTS STATE AFFAIRSMay 2, 3:30 pm

Death of print news: Weekend Empire was last to be printed in Juneau

On Friday evening, the Juneau Empire‘s printing press spit out the final edition to be printed in Juneau, and then rumbled to a stop. The weekend newspaper would be the last before the press is dismantled and shipped south on a barge for a final decision on its future — to be sold for scrap or to some newspaper that wants to risk such an investment.

The Juneau Empire has moved to twice-a-week print editions that will be printed in Pierce County, Washington and flown to Juneau for Wednesday and Saturday delivery via the U.S. Postal Service.

The Goss brand press was originally situated in the old Alaska Light and Power building in downtown Juneau, but was moved to the Empire’s new building on Channel Drive in 1986. The Empire has downsized since the early 2000s, and moved out of those waterfront offices in 2021, as Morris Communications sold the building to Southeast Alaska Regional Health Consortium. The newspaper, which is now owned by Sound Publishing, then leased back the ground floor area where the massive press is located. That lease expires at the end of May, the newspaper reported.

Moving to two times a week, with out-of-state printing and Juneau’s famously variable weather and flight schedules, may prove challenging to the capital city newspaper, which is downsized from a newsroom of more than 22 in 2000 to just three or four people in 2023.

Murkowski votes against reinstating paying firefighters’ back pay after they were fired for refusing Covid shots

The attempt to restore jobs and back pay for firefighters who were terminated for refusing or criticizing the Covid-19 vaccine failed, due to the “no” votes of four Republicans and all Democrats, including Alaska Sen. Lisa Murkowski.

The “Support the Reinstatement of Trained and Effective Firefighters” amendment proposed by U.S. Sen. Rand Paul of Kentucky was defeated 54-45 in the Senate.

The amendment sought to provide funding to fire departments that fired firefighters for their refusal to take the vaccine or their opposition to Covid-19 mandates, only if they reinstated those firefighters and offered them back pay.

Republican Sens. Susan Collins of Maine, Mitt Romney of Utah, Mike Rounds of South Dakota, and Murkowski voted against the amendment. Dianne Feinstein did not vote, as she has been sidelined by age-related illness, including dementia.

“It seems bizarre and contradictory to provide financial support to increase fire department staffing when decisions were made to terminate trained and effective firefighters for no good reason. Firefighters tend to be young and fit, the very people who had the least to worry about COVID-19,” said Paul, before the vote.

“These people were never a threat to their communities. On the contrary, they served their communities bravely and made their neighbors safer. What was done to them, what was done to police, what was done to first responders was shameful and we should stand together to make sure it never happens again,” said Paul.