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Tag Archive for: alaska resources

Federal Funding Cuts (and Backtracking) Creates Chaos

February 1, 2025/in Blog

President Trump’s first weeks in office have produced a flurry of executive orders and confusing directives for federal programs nationwide, with many experts identifying the moves as unlawful. On Tuesday, January 27th, the President’s office released a memo directing a “pause” on grants, loans, and financial assistance from the federal government. This announcement, coupled with an abrupt Medicaid portal outage, sparked distress for millions of Americans whose lives are impacted by federal funding. 

Federal funding supports a large number of crucial social services and public assistance programs that we rely on in Alaska. From childcare to food security to the environment, threatening to take away these sources of support hurts families across our state. Federal dollars are crucial to many of our communities, and President Trump’s executive orders remain a threat to our way of life. The Alaska Center will continue to monitor and advocate for federal funds appropriated to Alaska, but we need your help!

The immediate confusion caused by this directive led to chaos nationwide and at home, leading the administration to rescind the order shortly after the memo was published. The original memo specified that the majority of federal funding would need to be reviewed by the Office of Management and Budget (OMB) to ensure alignment with the president’s priorities. The memo explicitly named areas the President seeks to gut, including crucial climate investments that are poised to bring hundreds of millions of dollars to Alaska.

These confusing directives take place on the heels of several recent executive orders aimed at slashing federal spending and agency operations. You can read more about these actions in our most recent blog. 

To further the President’s interests laid out in these executive orders, in the same week, the administration announced a “buyout option” for the majority of full-time federal employees via email. Current employees will have until February 6th to decide if they will resign in exchange for about 8 months of pay. Workers that remain in their roles were told that they would not be provided with certainty that their agency or position would not be eliminated in time.

In the background of all of this, President Trump has appointed Russell Vought to lead the OMB. Vought is one of the primary authors of Project 2025 and a staunch opponent of government spending. Despite a boycott from Democrats, the Senate Budget Committee advanced Vought’s nomination 11-0. A procedural vote for Vought’s nomination is set for Monday, February 3rd. 

We encourage you to reach out to your representatives and let them know how you feel about this disastrous nomination. You can find the telephone number for your Senator here. 

President Trump’s actions stand to put incredible strain on federal programs and resources in Alaska. Our schools, non-profits, and local governments deserve better than the chaotic leadership we are currently experiencing. Together, we need to work to ensure the Trump Administration operates within the bounds of the law, and puts hard working people – Alaskans included – before Project 2025’s wishlist. 

Make your voice heard! Use this pre-filled email form from the League of Conservation Voters to tell your Senators that OMB nominee Russell Vought is the wrong choice for Alaska.

For a thriving Alaska,

The Alaska Center

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New Name, Same Old Coal

July 26, 2024/in Blog, Clean Energy, Climate

This month, a company named Flatlands Energy has been making the rounds at Southcentral Alaska’s electric utilities, cheerily describing a future where coal power is safe and environmentally responsible. We know better. The vision they present of “carbon capture and storage” on a coal power plant relies on unproven technology and a number of false assumptions, and Alaskans are smart enough to see through these claims and refuse new coal development in our state. 

While the rest of the United States, and most advanced economies throughout the world, are working to phase out coal usage, Flatlands proposes developing a brand new coal power plant in Matanuska-Susitna Borough. This is not a conversation about mitigating the emissions from existing projects – this would be starting from scratch with coal, fully aware of its many environmental and health impacts. A new open-pit coal mine along with a power plant fitted with carbon capture infrastructure would be constructed near the proposed pipeline to Donlin Mine. 

Carbon capture technology on power plants has not been proven successful. In fact, existing projects have been consistently under-performing when it comes to the actual carbon captured. Notably, Flatlands claimed during its presentation at Chugach Electric Association that coal with carbon capture would put out lower emissions than even wind and solar with natural gas backup. However, that claim relies on the system capturing a whopping 90% of carbon emissions, which is completely unrealistic. Petra Nova, the only coal plant to operate with carbon capture in the United States, also aimed for a 90% capture, but likely only captured 55-70% of emissions while it was online. Including methane emissions from coal mining itself also significantly drops the amount of carbon that can be captured. 

What’s more, these projects fail consistently on economics alone. Even with substantial government funding, carbon capture projects have not been profitable. Flatlands bets on a future of tax credits that is not guaranteed, and key players like the Mat Su Borough Assembly claim this will reduce the cost of importing liquefied natural gas (LNG). However, a new coal mine and coal power plant would certainly not be online soon enough to offset LNG imports. 

Instead of getting distracted by false promises, our electric utilities should continue their work to conserve as much gas as possible and move toward the most cost-effective mix of energy for the Railbelt, which includes 76% renewable energy generation.

Alaskans will not be fooled: coal power is the past, not our future.

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Energizing Change: Reflections on Chugach Electric Board Elections and Future Goals

May 31, 2024/in Accountability, Clean Energy, Democracy

Early this spring, we endorsed two pro-renewable, pro-union incumbent candidates for the Chugach Electric Association Board: Mark Wiggin and Sam Cason. We worked hard alongside volunteers and partners to knock nearly 3,000 of our neighbors’ doors, call over 15,000 community members, and send over 4,500 texts to friends, family, and other voters about the candidates. 

This year’s total turnout was 14%. While this is slightly lower than last year’s record-breaking turnout, it is still significantly higher than the historic average of about 10% participation. As we spoke with folks in person and on the phones, we heard our hopes confirmed: many of our community members are aware that they have a right to vote in utility elections. We are thrilled to see this greater awareness, and hope the trend continues.

One of our endorsed candidates, Mark Wiggin, won his seat for another four years, while opponent Dan Rogers beat out our other endorsed candidate, former Board Chair Sam Cason. At the first Board meeting after the election, Mark Wiggin was voted in as the new Chair of the Board in a 5-2 vote. 

We are eager to see Chair Wiggin continue his leadership on this Board, and for the entirety of Chugach Electric Association to move forward with its work to get more renewable energy online. After we have rested and recharged, it is time to support the Directors in charting the course that is best for our communities and achieves the triple bottom line of reliability, affordability, and sustainability. Member-owners of the utility are always permitted to attend and comment at the public meetings of the Board, which you can find listed on the Chugach website. 

Some of the Board’s current focus areas include: the new 500-kilowatt community solar project that will start taking subscriptions later this year; a potential wind power development which could provide 20% of Chugach’s total power needs; updating its facilities to include solar panels on site; and the One Campus plan which will bring all former Municipal Light & Power employees onto the same working campus as the pre-existing Chugach Electric teams. 

Additionally, the Board is hearing from experts on emerging technologies, like tidal power. At the most recent Board meeting, Ocean Renewable Power Company presented about the potential in Alaska, which is home to the vast majority of tidal energy in the United States. 

If you are interested in getting more involved with your electric utility, but aren’t sure where to start, contact Alex Petkanas at alex@akcenter.org to figure out the best way for you to plug in. Board elections are over – now it’s time to get to work!

With Renewable Enthusiasm,
The Alaska Center

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Shifting to Transmission

April 5, 2024/in Blog, Clean Energy, Climate, Volunteer

Two weeks ago, several members of our team went to Juneau, in Á’akw Kwáan territory, for the Just Transition Summit. Over the course of four days, we heard from Indigenous leaders, youth, elders, labor movement experts, legislators, and other partners of ours about efforts to transition our economy away from extraction and toward resilience and regeneration. 

We discussed a wide swath of issues related to a just transition, including building a true multi-racial democracy, circular economies and waste, and Indigenous Knowledge. We also made time for conversations around healing, and found opportunities to connect with one another between sessions. You can watch some of the keynote panels, and see a complete list of speakers on the Just Transition website. One highlight we are especially proud of: a legislative lunch and learn about transitioning our energy system, featuring three wonderful panelists. Our Alaska Fellow, Marta Ditzler, worked tirelessly on coordinating this over the past few months with support from the rest of our team, and we are so grateful for her work.

From left to right: Sally Rue (The Alaska Center Board Chair), Leila Pyle (AYEA Program Manager), Chantal de Alcuaz (Co-ED), Alex Petkanas (Climate and Clean Energy Program Manager), Marta Ditzler (Organizing Fellow), Jenny Marie-Stryker (Political Director), Vicki Long-Leather (Co-ED)

While there, The Alaska Center staff met with twelve legislators to discuss our energy policy priorities for the remainder of this session. We outlined the importance of things like Community Solar, a Renewable Portfolio Standard, annual net metering, and opposing any new coal projects. All of our conversations, however, turned to one key topic: transmission planning and upgrades.

The “transmission system” refers to all of the infrastructure that allows us to send energy from one place to another along the railbelt – which serves about 75% of the population in Alaska. When we talk about transmission planning, we are referring to a process that currently rests with the Railbelt Reliability Council. This group has been carefully organized to include stakeholder representation of small consumers, environmental groups, labor, regulators, and utility providers. They have been tasked with the responsibility of coming up with a holistic, efficient plan for the railbelt to get energy to everyone from Fairbanks down to the Kenai Peninsula. 

Multiple issues are popping up related to this transmission system in the legislature. One current bill (SB 257) would take planning responsibility away from the Railbelt Reliability Council and create a new organization with less oversight and stakeholder input to handle planning. The Alaska Center has raised concerns about this proposal, as we believe this would result in less public input and transparency in planning. Other proposals would reduce the cost of sending energy back and forth by removing something called “wheeling fees” which utilities currently charge to one another. Another crucial issue is providing a state match for the federal Grid Resilience and Innovation Partnerships (GRIP) funding that will go toward transmission upgrades. 

As the legislative body focuses on energy and transmission, The Alaska Center strives to be a resource on energy policy. We are working collaboratively with our partners to advocate for clean energy and transparency, and have provided legislative staff with our positions on these transmission issues while continuing efforts to bring our other policy goals to the forefront. We will continue our work throughout the rest of this session and will keep our supporters updated on opportunities to provide public testimony or otherwise get involved.

Whether you write to your representatives, call in to testify during public hearings, or author op-eds about your priorities, you are a key part of making sure the Alaska state legislature is acting in the best interest of the people. Looking for ways to participate? Sign up to volunteer with us!

Together for Alaska’s Energy Future,
The Alaska Center

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Hot Takes in a Cold Place: 2024 Session is here, baby!

January 15, 2024/in Blog, Clean Energy, Climate, Democracy, News

Dear friends,

It’s that time of the year again – almost time for the illustrious Alaska legislative session to kick off!

Legislators are going back to Juneau by ferry and plane and settling back in for another 90 (or likely 120) days. In those days they’ll have to pass a budget (which means deciding on the ever-present PFD question), and everything else is up in the air–and there’s quite a lot of “everything else”. All the bills from last session that didn’t pass are still alive, with their previous committee referrals/etc, plus any new bills that come out this session (including today’s second tranche of pre-filed bills).

Luckily, like in previous sessions, we’ll be tracking what’s going on as it pertains to creating a thriving, just, and sustainable Alaska (read: we care a lot about energy and climate legislation, protecting our waters, and creating the most engaged electorate in the nation).

This session is starting with a buzz in the air about energy: as Rep. Fields said in a recent op-ed, “2024 presents unprecedented opportunities for energy development in Alaska.” We agree. Between the clearly-state Senate Majority Caucus focus on energy, steeply declining Cook Inlet gas shortage (and the potential for astronomically-priced Outside LNG import contracts), federal investment opportunities from the Biden administration – there is a clear focus on where Alaskans get energy and how to make that more affordable. We’ll be pushing for some great energy bills (or the ideas within them) to pass this session, including:

  • Senator Wielechowski’s Community Energy Bill, which would enable Alaskans to own a share of a solar installation not located on their property, thus making solar more affordable and accessible to Alaskans including renters, folks who can’t afford a full installation, and more.
  • Senator Gale-Tobin and Representative Sumner’s Renewable Portfolio Standard bill, which would set required milestones for renewable energy development along the railbelt to help meet the needs of the current gas crisis
  • Governor Dunleavy’s Energy Independence Fund, which would create a Green Bank vehicle underneath Alaska Housing Finance Corporation, spurring more investment in renewable energy
  • A funding match to the federally-awarded GRIP Funding, which would provide for Transmission upgrades along the railbelt that make it possible to add large-scale renewables and balance our energy better. This is a match–meaning Alaska needs to put $206.5 million in to get $206.5 from the feds.

We’ll also be focusing on some crucial democracy issues, because how Alaskans can use our voices affects everything. You might have been tracking the proposed ballot measure (rife with campaign ethics violations) to repeal Ranked-Choice Voting and Open Primaries–we can expect to see this play out in the session again. You can bet we’ll work to make sure that goes nowhere this session, as well as any other changes that make it harder for Alaskans to vote. In fact, after years of the legislature considering great voting reforms, we’d love to see some pass, including:

  • Striking the witness signature requirement 
  • Creating a ballot curing process, which would allow Alaskans to fix any error on their ballot that would make their vote not get counted
  • Allowing for permanent absentee voting, meaning you could choose to vote absentee forever, rather than filing to vote absentee for every single election
  • Establishing same-day registration and early registration
  • And a whole lot more. 

And, of course, we’ll always be watching for any threats to our clean air and water. There will likely be many, like in previous sessions. Threats like Alaska taking over 404-Primacy might come up again–and we’ll let you know when and if they do, and how you can stand up against these threats to our state. As much as we want to pass the good this session, seizing on critical opportunities of time and place, it’s crucial that we are prepared to stop the worst threats.

We look forward to working with you this session to stand up for our clean air and water, healthy communities, and a strong democracy. Stay tuned for more updates–and, always, get involved! We hope to make it easy for you to stand up for the values that you care about–so don’t be a stranger, and reach out.

All the best,

Jenny-Marie Stryker

Political Director

The Alaska Center

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Bro, Enough Bycatch

June 30, 2023/in Blog, Salmon

TAKE ACTION: Submit Your Comment Today

As the skies taunt us off and on with sunshine and rain, many Alaskans are taking the time to fill our freezers and hit the waters. Whether it be rods and reels or nets of varying degrees of size from dip nets to trawlers. Our fishing economy accommodates all sizes and most Alaskans know how to fish sustainably to ensure the runs return and that Alaskans further inland have the opportunity to feed their families and sustain their way of life. These waters can be bountiful for all if we show a little respect and moderation.

But moderation isn’t everyone’s net, and many out-of-state trawling companies are reaping it all and sowing bubkis for us. Over the past ten years, the Bering Sea and Gulf of Alaska trawl fleets have caught, killed, and discarded approximately 141 million pounds of salmon, halibut, crab, sablefish, and other species, yearly. It’s time for some intervention before they wreck the party for everyone.

While Washington-based trawl fleets guzzle up record numbers, western Alaskan fishing communities, salmon fishing, snow crab fishing, and Bristol Bay red king crab fishing have been severely limited or cut off altogether. The doors swung too wide open to some excessive party boys, and now we are left with more than a mess; Alaskans are without food to feed our families.
The primary issue is a massive hit on bycatch species. Species that are just tossed away by massive trawlers are critical to our communities’ livelihoods and health. Closures and reduced access straight up harm our communities. Overfishing straight up harms our ecosystems and the diversity of species we need to repair our waters and our climate.
Do we really need that many fish sticks and fake crab dips at the risk of Alaskans’ livelihood? From our perspective, what we need is better regulation so that Alaskan salmon, crab and pollock can sustainably fill our freezers and our nets, and if you’re so inclined to have your fish in stick form, you can still have it as an option. Slap a little tartar sauce on it, and pretend it’s from some amorphous yellow-hatted fisherman. But we can’t keep damaging the livelihoods of the rest of our state’s fisherfolk, subsistence or commercial, because there is a worldwide market for questionable finger food.
It’s time to take action and demand that dirty little word “regulations.” Right now, the National Oceanic and Atmospheric Administration (NOAA) fisheries is collecting comments to update guidelines for National Standards to better address environmental changes and inequity in federal fisheries management. We have the opportunity to say that the system is broken and give some real solutions on how to fix it before it’s too late.

The big loud drunk guy at the party can do some impressive feats, but it shouldn’t be at the risk of the broader community. We all deserve a chance to enjoy the party, right? It’s time that NOAA defines “fishing community” to include the importance of place-based communities directly tied to fisheries, including Alaska Native subsistence fisheries and Alaska coastal communities. It shouldn’t be on the party’s host to clean up the mess.

This comment period is important, and our priority should be a holistic approach that includes climate and ecosystem management. While there are numerous issues why our fish are in decline, this is an opportunity to do something tangible about it now.

Take action with us and get your voice heard before the drunk guy at the party and his well-funded friends crank up the karaoke and drown us all out with some crappy cover of Freebird.

In Salmon Solidarity,
The Alaska Center

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STATEMENT: The Alaska Center supports introduction of community solar legislation

May 18, 2023/in News

On May 16, 2023, Senator Wielechowski introduced SB 152, AN ACT RELATING TO COMMUNITY ENERGY FACILITIES to the Alaska State Senate. This bill will open the door for more Alaskans to benefit from solar power through the use of communal solar gardens, available at an affordable price to anyone who pays an electric bill. Community Solar gardens will bolster our state’s supply of renewable, reliable, and affordable energy for Alaskans, and The Alaska Center supports the passage of this bill through the legislature.

“Community solar is an important step toward making renewable energy accessible to all Alaskans. It will open up energy savings to renters and low-income community members who can’t afford the upfront costs and are at the frontlines of the climate crisis. 79,000 Alaskans are currently living below the Federal poverty level, and over 260,000 Alaskans live in rental housing. This bill opens the door to long-term energy savings, good-paying jobs, and a real pathway towards much-needed energy and economic diversity for all Alaskans.  Through our work in solarizing communities over the past five years, we have seen the upfront cost be a real barrier for families. We are excited to see the opportunity for more Alaskan families to access renewables and cheaper energy bills.”
– Chantal de Alcuaz, Co-Executive Director

https://akcenter.org/wp-content/uploads/2023/05/Email-Banner-1200x400-7.png 400 1200 Leah Moss https://akcenter.org/wp-content/uploads/2025/02/the-alaska-center-with-tag.svg Leah Moss2023-05-18 20:36:502025-01-06 05:19:00STATEMENT: The Alaska Center supports introduction of community solar legislation

The Power Of Your Vote For Clean Energy

May 5, 2023/in News

[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_text _id=”4″ ][cs_content_seo]Do you pay an electric bill? Most Alaskans get their electricity from utility cooperatives. A board of directors leads these cooperatives to ensure the lights stay on and rates are affordable. If you pay an electric bill to one of these cooperatives, you are a member-owner, which means you have the right to elect and hold board members accountable! Across the state, board members vote on issues affecting Alaskans today and for generations. Matanuska Electric Association is once again fielding conversations about a Susitna-Watana Dam. Chugach Electric Association is working on a mitigation plan for the Eklutna Dam, deciding whether or not a once free-flowing salmon-supporting river will return to the Eklunta People, who have been asking for its restoration for decades. With natural gas supplies dwindling, communities across the state must decide where our energy will come from going forward. Utility boards make critical decisions like these every day.
Issues this significant and impactful to our state, our favorite places to recreate, our food sources, and our way of life should have our input. So why don’t Alaskans engage in Utility Elections? Chugach Electric Association, the largest electric cooperative in the state, reported a record-breaking election turnout of only 11.8% last year. That means your vote could really change the outcome of these elections.
If you care about clean air and water and healthy communities, you should use your power to vote for Board Members who not only support renewable energy but are champions for Alaska’s clean energy future. If you are a member-owner of Chugach Electric, I encourage you to vote for Shaina Kilcoyne, Susanne Fleek Green, and Jim Nordlund. These candidates are committed to listening to public input and moving clean energy projects forward. It’s a month-long election; voting starts on April 19 and closes on May 19. Your ballot comes with your bill, and you can vote online at Chugach Electric Association’s website.

These elections are the most important thing that no one talks about. In an election with voter turnout rates this low, one vote can mean the difference between a coal plant and a solar farm. If you have been looking for a small step to make a massive change in your community, this is it. You have the opportunity to create a future that you want to live in; take it. Use your voice and vote. Visit your local utility cooperative’s website for information on how to vote and attend board meetings.
Rachel Christensen is the Clean Energy Organizer for The Alaska Center and lives in Palmer. 

Originally published on May 5, 2023 by Sol de Medianoche.\n\n[/cs_content_seo][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content]

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Sun and Wind 4EVER

April 28, 2023/in Blog, Climate, Legislative Session

TAKE ACTION: Support the Renewable Portfolio Standard legislation

Sun and Wind. When we hear people say that solar and wind are new and variable energy sources, it calls into question their understanding of historical facts. The sun reportedly has been pumping energy out for 4.5 Billion years. The wind got started on Earth probably at around the same time as the Earth came to have air molecules to move, not long after it came together as a planet, also approximately 4.5 Billion years ago.

There is often an argument that the only reliable energy source is from fossil fuels. The next time some old duffer starts going on about fossil fuel reliability, you just tell them “hooey” – their vaunted fuels are just experimental in the grand scheme of things – the most mature fossil fuels are from a period a mere 419 million years ago. That is barely a blip compared to the reign of solar and wind energy. It makes sense that humankind plans to return rapidly to solar and wind energy after dabbling in strange, experimental energy like fossil fuel. Our sun and wind are ancestral, time-tested, ancient power sources, and people like a sure thing.

The cost to harness the oldest and best energy is falling by the day. Check out any graph comparing the cost of new solar installations with the price of natural gas and coal power generation. The price of solar energy has dropped precipitously over the past decade. Combine this with a federal infrastructure funding package that prioritizes renewable investments and sweetens the pot with tax incentives. Combine this again with a moral case for energy sources that don’t emit greenhouse gasses, and you have a recipe for change. Perhaps not as quick as some would want, or that is sufficient to save us from climate disruption, but a fundamental change.

Right here in Alaska, not only in one, but now in two legislative sessions, legislation has been introduced to force/mandate/require electric utilities to get free from high-cost fossil fuels and switch to 80% renewable sources for generating electricity by the year 2040. There is obviously a belief that electric utilities can achieve this goal, or else the bills would not have been introduced at all, much less receive hearings. Utilities are setting internal goals; for instance, the Homer Electric Association has a board policy that calls for 50% renewable electricity by 2025 – based on the State of Alaska’s own aspirational policy goal.

On Thursday, House Bill 121 had an introductory hearing in the House Special Committee on Energy. This bill would establish a Renewable Portfolio Standard (RPS) for Alaska’s utilities and drive investment in lower-cost renewable energy. As a Cook Inlet natural gas supply shortage and corresponding sharp energy price increases are looming on the horizon, it is high time our utilities act to incorporate more and more and more wind and solar, and battery storage. That is another reason why RPS legislation is getting airplay this year. Even the most stalwart fossil fuel devotee must face the fact that something has to give. If utilities do not diversify into renewable energy, and the state has to import liquified natural gas, the cost to consumers will skyrocket from a place that seems already pretty high. The economy will suffer, homeowners will suffer, business overhead costs and government operating costs will increase, and heads will roll. You get the picture.

The committee heard testimony from Hawaiʻi State Energy Office on the 50th state’s RPS and its transition away from imported fossil fuels. Price volatility in imported fuel drove consumer sentiment in Hawaiʻi toward a successful energy transition. Alaska and Hawaiʻi are related in their remoteness, the timing of their statehood battles, their otherness, and the fact that half of Alaska vacations in Hawaiʻi – these states have a ton in common, not to mention sun and wind. Ours is a different sun and a different wind but just as mighty and ancient. If Hawaiʻi can go renewable, there is no doubt that Alaska can follow suit.

Another hearing or two on HB 121 should be held this session. The bill has a good chance of passing next year with your support. Stay tuned, but first, get out in that spring sun and feel the 4.5 Billion years of past, present, and future awesomeness on your unique and very special face.

Sincerely,
The Alaska Center

https://akcenter.org/wp-content/uploads/2023/04/Hot-Takes-Banner.png 400 1200 Leah Moss https://akcenter.org/wp-content/uploads/2025/02/the-alaska-center-with-tag.svg Leah Moss2023-04-28 20:04:552025-01-06 05:27:34Sun and Wind 4EVER

The unchecked leaks: Tax Loopholes, and Sliding Scale Credits

April 21, 2023/in Blog, Leg with Louie, Legislative Session

[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_text _id=”4″ ][cs_content_seo]If our state were a car (of course, our state would never be a mere car, it would be a badass F-350 Ford truck with an obnoxious decal on the rearview window and a snowmachine in the back), but say it was an automobile of some kind, it would be wise for the operator to take heed of leaking fluid left on the ground in the parking lot – be it oil or be it antifreeze or any other toxic ooze from the underbelly. A sound and sober assessment would lead the driver to fix the leak so the engine did not blow up.  
We need the Alaska State Legislature to do this with the S-Corporation loophole that allows Hilcorp to reap huge profits in Alaska and pay no corporate income tax, taking all of the money back to Texas HQ. At the same time, our education system teeters in a funding crisis. Of even greater fiscal importance, the legislature needs to address the sliding scale tax credit it gives to oil companies that have already deprived the state of Billions in revenue that could have gone toward building up our state.
Alaska seems stuck in a strange acceptance of a condition that is not right or well or normal. We do not need to accept underfunded schools, leaky roofs, potholes up the wazoo, insignificant investments in renewable energy, bridges, ferry vessels, ports, libraries, and museums. We don’t need to be saved by federal investment (though it helps) – we have the tools to fix the problem, and we have the problem right in front of us seemingly every year since the passage of the abysmal SB 21 oil tax policy/blatant give-away/almost criminally insane financial maneuver.
The good news is that there are options for addressing the roughly $600 million budget deficit. Not all of them are politically realistic in the current zeitgeist – say zeroing out the permanent fund dividend or imposing a progressive income tax. Some are realistic, including requiring oil companies incorporated under IRS Code as S-Corporations, to pay state corporate income tax. The Department of Revenue has estimated this would bring an additional $47 to $61 million per year into state coffers. On the other hand, the oil tax credit system deprived the state of an estimated one Billion dollars in Fiscal Year 2022. Modifying the oil tax credit system through simple tweaks could bring in enough revenue to bridge the deficit gap. These changes could solve our deficit promptly instead of imposing a broad-based sales or income tax, which would take a few years to set up before the state would see increased revenue. The simplicity and the immediacy of this fiscal fix makes it essential.
Another reason to take note this year specifically – is that these changes are proposed in a bipartisan piece of legislation sponsored by the powerful Senate Rules Committee, SB 114. Rumor has it that many lawmakers and the Governor are keeping their ears open to the proposal. As the legislative session enters its final stretch, there seems to be some cohesion around the idea that something needs to happen on the fiscal front and that the oil and gas industry needs to be at the table providing solutions and helping with the hard work. SB 114 is a reasonably moderate proposal – it simply would have Hilcorp pay the same tax that the other majors, Exxon and Conoco, are already paying. It would not do away with tax credits. It reduces them and ties them directly to capital investment in Alaska. 
We know from history that nothing is straightforward regarding the oil tax code or any tax code for that matter. It is a cozy nest and a protective bramble for attorneys, accountants, and few others. Please expect that the legislature will be very deliberative when it comes to significant changes, not wanting to upset the status quo or break any eggs in the process. SB 114 might be just the ticket. It makes fiscal sense, gets us out of our deficit problem, and would make a rounding error dent in the profit of our major oil companies.  
Tell your Senator you support this fix, so Alaska can keep on Truckin’.
Vroom, Vroom,The Alaska Center

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