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

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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.

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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.

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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.

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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.

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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.

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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.

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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. 

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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.

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“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.



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Alaska Airlines flight returns to San Jose airport due to mechanical issue

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Alaska Airlines flight returns to San Jose airport due to mechanical issue


FILE PHOTO: An Alaska Airlines Boeing 737 MAX 8 approaches San Diego International Airport for a landing from Palm Springs on December 20, 2024 in San Diego, California. (Photo by Kevin Carter/Getty Images)

 An Alaska Airlines flight had to return to San Jose Mineta International Airport on Wednesday after a mechanical issue.

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Alaska Airlines Flight 1130 departed San Jose at 10:01 a.m. bound for Seattle; however, the aircraft turned back, landing at the South Bay airport at 10:50 a.m.

A spokesperson for San Jose Mineta International Airport said they were notified around 10:41 a.m. that the plane was returning after experiencing mechanical issues.

Alaska Airlines said there was a mechanical issue indication in the flight deck of the 737-900 aircraft.

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“Pilots followed appropriate procedures and requested priority landing. The aircraft was evaluated by our maintenance team, who were able to repair the issue,” the airline said.

The plane landed safely without issue, according to the airport and airline.

“Our pilots are trained for situations like this and we thank them for their professionalism in handling the situation,” said Alaska.

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Alaska Airlines Flight 1130 was rescheduled to depart San Jose at 12:27 p.m. and land in Seattle at 2:45 p.m.

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Alaska legislators, citing some citizen complaints, investigate management of 2024 election

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Alaska legislators, citing some citizen complaints, investigate management of 2024 election


Alaska’s elections chief defended her division’s management of the 2024 elections at a legislative hearing last week, but she acknowledged that logistical challenges created problems for some voters.

Carol Beecher, director of the Division of Elections, reviewed the operations during a more than two-hour hearing of the state House Judiciary Committee. She fielded questions from the committee’s chair, Rep. Sarah Vance, R-Homer, and other Republicans about election security and possible fraud, and she answered questions from Democrats about problems that led to rural precincts being unstaffed or understaffed, which presented obstacles to voters there.

Vance said she did not intend to cast blame, but that she hoped the hearing would lead to more public trust in the election process.

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“The purpose of this meeting is to discuss the process of the 2024 election, not the results. It’s not about the outcomes, but about making sure that every legal vote gets counted in a timely manner, and asking what improvements can be made in the process,” she said.

“A lot of the public has reached out to me and expressed a lot of frustration and concern around a lot of the activities of this election,” she said. “So this is an opportunity for us to have a conversation with the director of elections and the public so that we can gain an understanding about what happened and how the actions that we can take in the future.”

Beecher responded to Republican committee members’ queries about safeguards against fraud and the possibility that non-citizens are casting votes.

“We often get asked about U.S. citizenship as regards elections, and we are only required and only allowed to have the person certify and affirm on the forms that they are a citizen, and that is sufficient,” Beecher said. “We do not do investigations into them based on citizenship questions. If there was a question about citizenship that was brought to our attention, we may defer that to the department of law.”

Residents are eligible to vote if they are a citizen of the United States, age 18 years or older and have been registered in the state and their applicable House district for at least 30 days prior to the election. Eligible Alaskans are automatically registered to vote when they obtain their state driver’s licenses or apply for Alaska Permanent Fund dividends.

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Beecher said the division investigated and found no evidence of non-U.S. citizens being registered through the PFD system. “This is not happening where somebody is marking that they are not a citizen and are receiving a voter registration card,” she said.

Vance said many Alaskans remain worried, nonetheless, about non-citizens casting votes. “I think people are wanting a stronger position regarding the ability to verify citizenship for the people wanting to vote,” she said. “So can the division take action to verify citizenship on its own, or does it need statutory authority?” Beecher confirmed that the division does not have the authority to verify citizenship.

Tom Flynn, a state attorney, advised caution in response to Vance’s suggestion.

“We should be also wary of the limits that the National Voter Registration Act and its interpretation can place on citizenship checks and the federal voting form requirements,” said Flynn, who is the state’s chief assistant attorney general. The National Registration Act of 1993 prohibits states from confirming citizenship status.

In response to questions about opportunities for fraud through mail-in absentee voting, Beecher said the state relies on the information voters provide. “If an individual applied for an absentee ballot, and all of the information was in our voter registration system that you were eligible to vote, etc, and you had a legitimate address to send it to, then you would be mailed an absentee ballot,” she said.

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Each ballot is checked for appropriate voter identification information. Ballots are coded by district, and then given another review by another group of election workers, including an observer, she said. “The observer has the opportunity to challenge that ballot. If they challenge a ballot, a challenge is sent to me, and then I review the information based on what the challenge is, and I’ll often confer with [the Department of] Law,” she said.

Alaska has notably low voter turnout, but also a steadily changing voter roll as it’s one of the most transient populations in the nation, with voters moving in and out of state.

Alaska has a mix of districts with ballot scanners and hand count precincts, usually in rural areas with a small number of voters, as well as voting tablets for those with disabilities. Ballot scanners record ballot information, which is encrypted before being sent to a central server in Juneau. All voting machines are tested ahead of time, Beecher said. For hand count precincts, ballots are tallied up and poll workers call in the results to the division’s regional offices, she said.

“We had about 15 people on phones to take the calls that evening, and the phone starts ringing immediately, and all of the different precincts are calling in,” she said. Division workers also helped poll workers properly read rank choice ballots, she said. “And so there’s a lot of discussion that can happen on that phone call. It’s not necessarily just as simple as going through the list.”

The division of elections has 35 permanent staff who are sworn to remain politically impartial and who work in five district offices to administer the elections in the 60 legislative districts.

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Beecher said the division reviews its processes, systems of communications, challenges and improvements needed in each election cycle. “The division has lists and lists and checklists and handbooks, and is very good and diligent about making sure that process and procedures are lined out and checked,” she said.

Rural Alaska problems

Administering elections in rural communities is an ongoing challenge in Alaska. Beecher answered questions on several incidents, including voters in Southwest communities of Dillingham, King Salmon and Aniak receiving the wrong ballots that had to be corrected. In August, a mail bag containing a voted ballot and primary election materials from the village of Old Harbor on Kodiak Island was found on the side of the road, near the Ted Stevens Anchorage International Airport.

“We don’t have control over the materials when they are in the custody of the post office, in this case, it was one of their subcontractor carriers,” she said. “We weren’t told [what happened] specifically, but I know that the post office has processes when mail is lost like that, and they do deploy their processes with that contractor.”

Vance said the incident was serious.

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“I hope the state is pursuing further accountability, because this is a matter of public trust that something so important was dropped out of the truck along the roadside,” she said. “It looks extremely negligent.”

Beecher said training and retaining poll workers is essential for running elections smoothly. “So one of the challenges that we run into, and frankly, it’s not just in our rural areas, the turnover of poll workers is a reality,” Beecher said. The division conducts in-person poll worker trainings, and provides support with video tutorials and by phone.

This year, in the western Alaska community of Wales, the designated poll worker was not available and so the division of elections located a school teacher late on election day to administer the polls. “It was not ideal,” she said, but they had trained back up poll workers ready to deploy this year.

“We had trained people who were situated at all the various hubs, so Anchorage, Fairbanks, Utgiagvik, Nome, and they were trained and ready to be deployed to some of these polls should we run into a situation where we didn’t have poll workers on the day,” she said. “So we weren’t able to get them to Wales only because of the weather. They were there at the airport ready to head out there. But we did send them to Egegik, and there were polls there.”

Responding to Rep. Cliff Groh, D-Anchorage, Beecher said one thing she would have done better would have been to ensure that the official election pamphlet was more carefully reviewed and checked for errors.

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A notable error in the published pamphlet was the misidentification of Republican House candidate Mia Costello as a Democrat.

“Secondly, I would have made sure that our advertisement that had a name in it would not have used names,” she said, referring to a rank choice voting education materials giving examples with fake elector names, including “Odem Harris” which Republicans pointed out filled in a first choice vote for “Harris,” also the Democratic presidential candidate.

“And thirdly, I wish that I had done a better job of anticipating the level of communication that was expected and needed,” Beecher said.

In response to a question about the ballot measure seeking to overturn the ranked-choice system, Beecher said there was no evidence of fraud. The measure failed by just 743 votes.

“We did not see something that would indicate that anything untoward happened with ballots. That simply was not something that was seen in the results,” she said.

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Beecher suggested some improvements for legislators to consider this next term. Those included an expansion of mail-only precincts, paid postage for ballots and a requirement that mail-in ballots be sent earlier rather than postmarked by Election Day. “On ballot counting, doing it sooner,” she said. “So potentially changing the time frames of receiving absentee ballots to having everything have to be received by Election Day.” The latter would be a big change for Alaska, which has long counted mail-in ballots as long as they are postmarked by Election Day.

Some changes may be warranted, she said.

“We are not perfect. We know that,” she said. “And we really look to doing better, and [are] wanting it to be better, and that people are confident that it is managed in a way that they have trust in the integrity of the process.”

The next Legislative session starts on Jan. 21. Under the new bipartisan majority, Rep. Andrew Gray, D-Anchorage, is set to chair the committee in the coming session.

Originally published by the Alaska Beacon, an independent, nonpartisan news organization that covers Alaska state government.

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Alaska Jewish community prepares to celebrate start of Hanukkah

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Alaska Jewish community prepares to celebrate start of Hanukkah


ANCHORAGE, Alaska (KTUU) – Rabbi Josef Greenberg and Esty Greenberg of Alaska Jewish Campus, joined Alaska’s News Source to explain more about Hanukkah and how Anchorage can celebrate.

They will be hosting Chanukah, The Festival of Lights for “Cirque De Hanukkah,” on Sunday, Dec. 29, at 5 p.m., at the Egan Center.

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

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