Connect with us

Alaska

Alaska, America’s worst state for business, pins hopes on a post-oil boom in carbon offsets

Published

on

Alaska, America’s worst state for business, pins hopes on a post-oil boom in carbon offsets


An oil pipeline stretches across the landscape outside Prudhoe Bay in North Slope Borough, Alaska, May 25, 2019.

The Washington Post | The Washington Post | Getty Images

Alaska can be a rugged and unforgiving place, and that’s not just its landscape. Its economy is prone to big booms and wrenching busts. Lately, it has seen more busts.

Advertisement

More than any other state, Alaska is dependent on oil. As much as 85% of the state’s unrestricted general fund revenue comes from oil production, according to state estimates. In some years, it has been well over 90%. But oil production has been in long-term decline in the state, which was once America’s No. 1 producer of crude but has been surpassed by several shale oil boom states, including Texas, New Mexico and North Dakota. Alaska’s crude production in 2022 was roughly equal to that of Oklahoma, and it hit the lowest level since 1976, according to Energy Department data.

This trend helps explain why Alaska’s economy performed worse than any other state last year, according to the Commerce Department, shrinking by 2.4%. And it explains why the Last Frontier finished dead last in CNBC’s 2023 America’s Top States for Business rankings.

In addition to a last-place finish in the Economy category, Alaska ranks 49th in the Infrastructure, Education, and Access to Capital categories. It finished 48th in Cost of Doing Business. This is the seventh time since 2007 that Alaska has finished at the bottom, and the third time in the last five studies.

Alaska’s carbon turnaround plan for the future

Alaska isn’t giving up on crude. Recent approvals such as the controversial Willow Project have led state officials to forecast an increase in production in the years ahead. But Gov. Mike Dunleavy and the state legislature have a plan that they hope will reverse Alaska’s fortunes once and for all, by making the state less susceptible to gyrations in the oil market.

“Alaska was built on a promise that we would be north of the future. That we would be visionary,” Dunleavy, a Republican, said at a news conference May 23.

Advertisement

Dunleavy was marking the signing of SB 48, legislation that officially puts the state in the carbon business.

“Just like oil, just like gas, just like our timber, this is a commodity that can be monetized now,” he said.

The Tongass National Forest on Prince of Wales Island, Alaska, July 2, 2021.

The Washington Post | The Washington Post | Getty Images

Under the new law, Alaska will be able to sell so-called “carbon offset credits,” capitalizing on the state’s vast public forest lands. Companies that emit carbon will be able to buy the credits, effectively paying the state to preserve and protect its forests, thereby canceling out, or offsetting, those emissions.

Advertisement

What the state doesn’t spend on maintaining its forests, it can keep as revenue.

Alaska Natural Resources Commissioner John Boyle, who is working on the rules to implement the program, said in an interview with CNBC that the market for the new credits could be huge as companies discover the limits of carbon reduction technology.

“Across America, and in the rest of the world, you see a number of companies that have set very aggressive net zero (emission) targets for themselves,” he said. “Ultimately, in order for a lot of these companies to be able to hit the targets that they’ve set for themselves, they’re going to need to look for other options for offsets.”

The emissions offset market is growing

Carbon offset programs are already gaining popularity around the world. The California Air Resources Board operates an extensive offset program that the state says is an essential part of its program to reduce greenhouse gas emissions.

When Dunleavy unveiled the legislation in January, he noted that Alaska’s Native Corporations have generated $370 million in revenue selling offset credits since 2019.

Advertisement

The state has not offered any estimates of how much revenue its program could generate, but Boyle said it could begin making money soon.

“I don’t think it’s unfair to say that the state fully anticipates seeing revenue within a relatively short period of time, likely within the next 12 to 18 months,” Boyle said. “We fully expect to see some new revenues coming in as companies acquire our leases and do other things to prepare themselves to develop carbon offset projects.”

More coverage of the 2023 America’s Top States for Business

Carbon credits are controversial

Alaska is all in on the plan. The bill passed the state Senate unanimously; only two members of the House voted against it.

But outside Alaska, there is no shortage of skepticism.

“Multiple lines of evidence suggest that Alaska’s forest carbon offsets program could produce carbon credits that don’t represent real climate benefits,” wrote Freya Chay and Grayson Badgley of the climate research group CarbonPlan in a commentary published in May. 

Advertisement

They note that while the program promises to protect Alaska’s forests and the climate benefits they provide, it also promises not to reduce timber harvests. The researchers said the credits appear to be structured to “simply reward a landowner for doing what they already planned on doing.”

“Although this could be a win for the State budget, it would be a loss for the climate — and for the credibility of the voluntary carbon market,” they wrote.

Boyle argues that the funding from the offset credits will allow the state to manage its forests more effectively and efficiently. That way, he said, the state will eventually have larger forests — with more trees to capture carbon, and more timber left over to harvest.

“That gives you a margin by which, if you choose, you can do some selective timber harvesting, as long as you maintain a level that is appropriate with the baseline that’s been established,” he said.

Carbon credits are just the beginning of Alaska’s plan to transform its economy. Dunleavy has also proposed creating a “carbon sequestration” program, where the state would capture its carbon emissions — or accept shipments of carbon captured elsewhere — and inject them into underground storage beneath Alaska’s huge expanses of open land.

Advertisement

“There’s a real ability here to move the needle in managing the world’s carbon and storing it for geologically significant periods of time,” Boyle said.

They believe that there is also an ability to diversify Alaska’s economy and make it competitive again, while helping the planet at the same time.



Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Alaska

Women will make up a majority in Alaska House for first time in state history

Published

on

Women will make up a majority in Alaska House for first time in state history


Six Alaska House seats currently held by men are set to be held by women next year, bringing the overall number of women in the chamber to 21. This will be the first time in the state’s history that one of the legislative chambers is majority women.

The women elected to the Alaska House bring a variety of experiences and perspectives to the chamber. Ten of them are Republicans, including four newly elected this year. Nine are Democrats — including three who are newly elected. Two are independents who caucus with Democrats.

There are also five women in the state Senate, a number that remained unchanged in this year’s election, bringing the total number of women in the Alaska Legislature to 26 out of 60, a new record for the state. The previous record of 23 was set in 2019.

Advertisement

Nationally, around a third of legislative seats were held by women this year, according to researchers at Rutgers University. Nearly two-thirds of women legislators are Democrats. In Alaska, women serving in the Legislature are largely evenly split between the major political parties.

Before this year’s election, only seven states had ever seen gender parity in one of their legislative chambers. They include Arizona, Nevada, New Hampshire, Rhode Island, Colorado, New Mexico and Oregon. California is set to join the list after this year’s election.

Three of the women slated to serve in the Alaska House next year are Alaska Native — also a record. Two of them were elected for the first time: Robyn Burke of Utqiagvik, who is of Iñupiaq descent, and Nellie Jimmie of Toksook Bay, who is of Yup’ik descent. They join Rep. Maxine Dibert of Fairbanks, of Koyukon Athabascan descent, who was elected in 2022.

The historic increase in representation of women came in Alaska even as voters did not reelect U.S. Rep. Mary Peltola, the first woman and first Alaska Native person to represent the state in the U.S. House. Peltola was voted out in favor of Republican Nick Begich III.

Women come to the Alaska Legislature from diverse professional backgrounds, but a disproportionate number of them will arrive with some experience in public education.

Advertisement

Three of the newly elected lawmakers — Burke, Jubilee Underwood of Wasilla and Rebecca Schwanke of Glennallen — have served on their local school boards, helping oversee the North Slope Borough, Matanuska-Susitna Borough and Copper River school districts, respectively.

The three bring different perspectives on public education. Burke said she is looking forward to working with a bipartisan caucus that is set to have a majority in the Alaska House this year, with a focus on increasing education funding and improving the retirement options for Alaska’s public employees, including teachers.

Schwanke and Underwood, on the other hand, have indicated they will join the Republican minority caucus, which has shown an interest in conservative social causes such as barring the participation of transgender girls in girls’ school sports teams.

The increase in the number of women serving in the Alaska Legislature comes as public education funding is set to be a key issue when lawmakers convene in January.

Burke said she and the other newly elected women bring different policy perspectives to the topic of education, but their shared experience in serving on school boards reflects a commitment to their children’s education.

Advertisement

“With so many parents and so many moms, I hope that there will be really good legislation that supports working families and children and education,” Burke said.





Source link

Continue Reading

Alaska

'Once in a lifetime experience': This was the absolute highlight on a visit to Alaska

Published

on

'Once in a lifetime experience': This was the absolute highlight on a visit to Alaska


Alaska is one of those places that’s impossible to visit just once. I’ve barely returned from my first taste of this untamed beauty and already I’m planning my next trip.

On our Norwegian Cruise Line 7-Day Alaska Round-Trip, we spend a week cruising and touring Alaska’s famed Southwest region taking in the ports of Sitka, Juneau, Icy Strait Point, Dawes Glacier, and Ketchikan.

Here is your guide on what to see, what to do, and skip in the Last Frontier state.

Advertisement

READ MORE: Perfect way to avoid the crowds in the Northern Territory

Already planning our next trip to Alaska. (Nine/Supplied)

Sitka

Once Alaska’s first capital city, this dreamy town pretty much jams the best of Alaskan experiences into one place. Spawning salmon jumping upstream, check. Bears catching said salmon, check. Remote and stunning fjords. Check.Check.Check! 

I booked myself on tour here to ensure I got the most out of my time. First we visited the Fortress Of The Bears, a sanctuary for orphaned brown and black bears. This is a popular tourist spot as you are guaranteed to see their resident bears.

READ MORE: ‘How a trip to Cambodia completely changed how I holiday’

Advertisement

Take a look onboard Norwegian Cruise Line’s brand new ship

After this close encounter, we cruised along the silent and glassy inlet waters to Silver Bay homestead where we feasted on S’Mores and hot chocolate as we learned about the local area and history. We were also lucky enough to see a bear near the local salmon hatchery fishing from the shore. What a privilege to see these magnificent creatures in the wilderness.

bears in alaska
Saw some bears doing their thing. (Supplied/Nine)

Be sure to leave yourself enough time to wander through town too and do the totem pole walking tour through the Sitka Historical Park. For some added spice, there are regular “beware of bears” signs to keep you on your toes and on the lookout!

For movie buffs, I hate to break it to you, but Sandra Bullock’s rom com hit, The Proposal, was “based” here, but was actually filmed in the United States. Our bus driver told us a few aerial shots may have been used, but that was about it.

And if you are at the cruise ship terminal you HAVE to try the roasted nuts from a local store aptly named Sitka Nuts. We barrelled through two bags of cashews and almonds. A must!

Norwegian Bliss Endicott Arm, Alaska 2018
Norwegian Cruise Line’s 7-Day Alaska Round-Trip was full of highlights. (©Danny Lehman)

Juneau

Juneau is the capital of Alaska. It’s both a mountain town and a coastal city surrounded by incredible beauty, wildlife and with a deep Native American history. 

As soon as you step off your ship, there’s a dizzying array of tours on offer, the highlight of which is a trip to the famous Mendenhall Glacier about 15 minutes out of town by shuttle.  While the tourist centre was packed, we had a drizzly day, so the trails to the glacier lookout and the nearby waterfall are relaxed and easy to navigate. I’d give yourselves about two hours out here, unless you’re up for a longer hike.

Advertisement

Back in town, there’s a long line out the front of tourist hotspot Tracy’s Crab Shack and it’s standing room only at the Red Dog Saloon. Line up early if they take your fancy. We took photos out the front and instead spent our time strolling around town.

We made a beeline for their famous fudge shops (this will be a common theme throughout this article!), bought some great souvenirs in the Alaskan Brewing Co and I can highly recommend Jellyfish Donuts. Also, the shuttle drivers in Alaska are the absolute best. Full of knowledge, hilariously bad jokes, and pride for their hometowns.

The Endicott Glacier on the inside passage of an Alaska cruise
This was the highlight of our trip to Alaska. (Getty)

Endicott Arm and Dawes Glacier

This was the highlight of our trip to Alaska. The weather gods were smiling as we made our way down the glacier carved fjord of Endicott Arm. This is National Geographic worthy. Sheer granite cliffs that tower above our 20 deck ship. Water so green you keep taking your sunglasses on and off to ensure it’s not a trick of the lenses. Chunks of glaciers float by. Can this be real? Am I actually here?

Then after miles and miles of quiet cruising, you see her. The Dawes Glacier. 600 feet tall and half a mile wide. Even from a distance she’s magnificent. Rug up and grab a spot on the upper decks to truly appreciate nature in all her glory.

This is a once in a lifetime experience not to be missed. 

Ketchikan

Ketchikan is the southernmost entrance to Alaska’s famed Inside Passage and is everything you hope an Alaskan city will be. Famed for its beautiful scenery, its world famous salmon and Native American history.

Advertisement
Ketchikan is everything you hope an Alaskan city will be. (Getty Images/iStockphoto)

If your time is limited, stroll around Creek Street and the downtown historic district. There are also more than 80 totem poles dotted around Ketchikan. And yes, more fudge to be consumed too!

When we docked, we opted for the George Inlet Fjords Safari. Now this is an action packed day! Start your engines as you drive your own UTVs through the Alaskan wilderness. The scenery is stunning. You may even spot a bear or two on your adventures.  You then board a sightseeing vessel that will deliver you to the charming George Inlet Lodge where you’ll sit by the water as you feast on fresh Dungeness crab and sample local craft beers. I am not normally a seafood eater, but the crab chowder was irresistible. So were the beers!

These Alaskan cruise stops are just a sample of what awaits on your journey to the Last Frontier.  I’m already planning to return to explore more and maybe buy some more fudge.

This writer travelled as a guest of NCL. The cruise line offers four ships (Bliss, Encore, Joy, Jade) from three departure ports – Seattle, Vancouver, Whittier – to explore the region, with an extended season from April to October, providing the opportunity to see Northern Lights.



Source link

Advertisement
Continue Reading

Alaska

Alaska senator highlights truck drivers hauling Capitol Christmas Tree to D.C.

Published

on

Alaska senator highlights truck drivers hauling Capitol Christmas Tree to D.C.


ANCHORAGE, Alaska (KTUU) – Alaska Sen. Dan Sullivan welcomed Americans to enjoy the massive Sitka spruce that is currently making its way to the nation’s capitol by truck and praised the two drivers hauling the 85-foot tall tree.

In his weekly “Alaskan of the Week” address on the floor of the U.S. Senate on Thursday, Sullivan spent about 15 minutes explaining how the Capitol Christmas Tree — taken from the Tongass National Forest near the Southeast Alaska community of Wrangell — was selected and how it’s being transported nearly 5,000 miles to be put on display in Washington D.C.

The duo of Fred Austin of North Pole and John Shank of Fairbanks have been part of that journey. Austin is 89 years old and has driven commercially for 71 years, while Shank is about to hit 50 years driving for Lynden Transport.

Together, the duo have logged over 10 million miles of driving trucks in their career.

Advertisement

Sullivan said the two will have driven through 12 states and 17 towns across the country before making it to D.C. on Friday.

See a spelling or grammar error? Report it to web@ktuu.com



Source link

Advertisement
Continue Reading

Trending