Alaska
Alaska Senate leaders suggest new revenue measures to address looming budget deficit
Alaska Senate leaders signaled Tuesday that they were open to considering new revenue measures this year to help stabilize the state’s looming budget deficit.
“We haven’t addressed revenue for decades,” Sen. Lyman Hoffman, a Bethel Democrat, told reporters. “I think it’s high time the Legislature looks at raising new revenues if we want to accomplish the many things that we want to do. If not, I don’t see a clear path forward to balancing not only this year’s budget, but next year’s budget.”
Budget analysts predict that without additional revenue, the state could face a $500 million shortfall during the coming year, even without increasing the state’s education budget — a top priority for leaders of both the House and Senate.
Hoffman, who has served in the Legislature for more than 38 years, said “the state of Alaska is probably facing its largest fiscal problem in 30 years.”
He said the fiscal crisis is driven in part by the Legislature’s efforts this year to significantly increase education funding, a task lawmakers have not undertaken in more than a decade. A bill backed by House leaders would increase the state’s education budget by around $150 million in the coming fiscal year compared to the current one, and hundreds of millions more in the following two years.
Hoffman said the Senate majority had already discussed new revenue measures during a retreat before the beginning of the session.
“I’m glad to report that new revenues are on the Senate’s list of things that need to be addressed this year,” he said.
Rep. Andy Josephson, an Anchorage Democrat who co-chairs the House Finance Committee, said the House majority had not collectively discussed new revenue measures.
“I suppose we would entertain other revenue measures, but we’re also very aware that this governor vetoed a tobacco tax bill, he vetoed a Turo tax bill,” said Josephson. “So I think the 21 of us don’t want to just chase windmills and pursue things that simply aren’t going to happen.”
Gov. Mike Dunleavy in December proposed a largely status quo budget with a projected deficit of $1.5 billion. He has not introduced new revenue measures this year.
In 2023, Dunleavy introduced legislation to allow the state to bring in revenue from carbon sequestration. The law has yet to yield income for the state. He signaled two years ago that he would introduce a sales tax in the final weeks of the legislative session. But he never introduced the measure.
Senate President Gary Stevens, a Kodiak Republican, said the Senate majority has not discussed a sales tax or an income tax. Instead, both Hoffman and Sen. Bill Wielechowski, an Anchorage Democrat, pointed to possible measures that could increase taxation of oil and gas companies in the state by hundreds of millions annually.
“I think there are things that can be done which would have very little impact on investment, very little impact on Alaskans, and would help us solve our budget deficit,” said Wielechowski.
Those include a reduction in the per-barrel tax credits given to oil companies, and an amendment to the state’s tax code to apply corporate income tax on certain private corporations, including Hilcorp Alaska.
Sen. Robert Yundt, a freshman Republican from Wasilla who serves in the minority, on Monday introduced legislation meant to ensure the state’s corporate income tax is applied equally to companies in the state.
Stevens said his caucus was “really pleased” to see that legislation introduced by Yundt and said the Senate would be “moving forward” with that bill.
A similar measure considered by the Senate — and ultimately abandoned — last year would have increased taxation on Hilcorp, one of Alaska’s top-producing oil companies, by over $100 million.
In a written statement, Yundt said he introduced his bill because he thinks all companies should be “treated and taxed exactly the same — which, unfortunately, is not currently happening.”
“This legislation has the ability to create the even playing field that will benefit both industry and residents alike,” Yundt said.
Sean Maguire reported from Juneau and Iris Samuels from Anchorage.
Alaska
New Partnerships With State of Alaska & University of Alaska Fairbanks Expand on Critical Minerals & Energy Innovation – CleanTechnica
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NLR Laboratory Director Jud Virden Signs Partnership Agreements at Alaska Sustainable Energy Conference in Anchorage
The National Laboratory of the Rockies (NLR) signed two new memorandums of understanding (MOUs) on May 19 that aim to increase research and innovation in critical minerals, energy, and buildings in Alaska and the Arctic. These partnerships build on longstanding collaborations and are designed to tap into Alaska’s resources in a way that benefits both the state and the nation.
“Alaska faces unique challenges,” NLR Director Jud Virden said. “NLR is proud to partner with the state and its flagship university to develop and accelerate innovative solutions to Alaskan challenges and address our nation’s pressing needs in critical minerals, energy, and buildings.”
At the Alaska Sustainable Energy Conference, joined by U.S. Department of Energy (DOE) Assistant Secretary Audrey Robertson, Alaska’s governor Mike Dunleavy, and University of Alaska Fairbanks (UAF) leadership, Virden signed agreements that will make it easier for NLR to work with these key partners to scale solutions for the real world.
NLR is the only DOE national laboratory with a physical presence in Alaska, located adjacent to the University of Alaska Fairbanks campus. NLR’s Alaska research focuses on energy and building technologies in extreme climates and remote locations, as well as support for military, government, and communities in decreasing energy costs and improving reliability. Recent projects include an analysis of the state’s power grid to address declining natural gas supply within Alaska, an evaluation of methods to stabilize permafrost on military sites, and support for designing a secure, resilient facility on the Alaska-Canada border.
Through the MOU with the university, NLR gains access to UAF expertise in microgrids, engineering, and critical minerals—such as the Alaska Critical Minerals Collaborative, a research unit at UAF connecting government, industry, and researchers to advance critical mineral development across Alaska. The laboratory may also host students and fellows from UAF’s College of Engineering and School of Mines, Arctic engineering, geosciences, and other relevant programs, offering a training ground for the critical mineral workforce of the future.
On the flip side, NLR can provide access to advanced analysis tools, such as the ability to create digital twins of mines and microgrids with its Advanced Research on Integrated Energy Systems (ARIES) platform, and a wide range of capabilities in its new Energy Materials and Processing at Scale (EMAPS) facility that offers partners an entirely new model for “market-first” research: the ability to grow laboratory-scale innovations into scalable and validated market-relevant prototypes under a single roof.
“This partnership leverages the unique strengths of each of our organizations to create something that is greater than the sum of two parts,” UAF Interim Chancellor Mike Sfraga said.
NLR’s agreement with the state is complementary in approach, paving the way for NLR and the state to coordinate resources, share research, and boost Alaska energy and critical mineral production.
“This agreement helps turn Alaska’s resources and know-how into practical solutions,” Gov. Dunleavy said. “By formally partnering with federal researchers who are already based in Alaska, we can lower energy costs, build infrastructure that works in Arctic conditions, strengthen domestic supply chains, and create good-paying jobs, especially in rural and remote communities. It puts Alaska at the center of solutions that matter to both our state and the nation.”
Learn more about NLR critical minerals research and collaborations.
By Molly Rettig, NLR
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Alaska
Natural gas supplies ‘not looking good’ for Southcentral Alaska this winter, Enstar says
Southcentral Alaska’s largest natural gas utility said Tuesday it might not have the gas to make it through this winter. That’s after state regulators last Wednesday denied Enstar’s request that would’ve expanded natural gas storage in Kenai, as the region faces a looming natural gas shortage.
Enstar president John Sims said it’s “not looking good” for the utility’s more than 150,000 Southcentral customers heading into the cold, winter months.
“Just to be very blunt, we need additional production in order to make it through this winter,” Sims said. “We are kind of turning over every stone possible and trying to find more gas resources.”
In the order, the Regulatory Commission of Alaska wrote they were “unsure about the timing of the need for additional natural gas storage capacity, including insertion and withdrawal capacity.”
Enstar proposed developing and operating a depleted reservoir known as the Kenai Loop Pool that is currently leased and operated by AIX Energy, LLC., to store gas to use during the colder months.
The utility was seeking an “advanced determination” from RCA that it was prudent, which would allow the project to unlock financing for development, the order says. In its original filing, Enstar said that the project would help ensure there are enough supplies to meet the needs of its customers.
A search for other options
The commission denied the utility’s request in a 17-page order last Wednesday, saying the Department of Natural Resources hadn’t determined if the facility was capable of serving as a gas storage facility. Hilcorp has a competing application for the same storage facility, the order said.
The RCA didn’t respond to a request for comment Tuesday afternoon.
The facility would hold 25 billion cubic feet of gas, which Sims said is appropriately sized for the current supply needs and future natural gas imports.
“The other benefit of having this storage facility right now is we can go to Furie, AIX, to all the small producers and even Hilcorp and say, ‘Hey, whatever volume of gas you produce, I can buy it.’ And I can store that into this storage facility for later use,” he said.
Longer term, utilities are looking to import natural gas, which would impose an unavoidable price increase to thousands of households and businesses. Legislators are currently in negotiations over a multibillion-dollar property tax break for the developer of the Alaska LNG project, Glenfarne. But it’s unknown if, or when, that project will be built.
According to the order, Enstar’s Kenai storage project garnered support from DNR, multiple state legislators and other regional electric utilities. However, some Anchorage-based property management companies said it was “inappropriate” for ratepayers to bear the cost of the project. The project’s $240 million price tag would’ve increased bills for customers by $10 to $12 per month, according to the filing.
Sims said Enstar is filing a petition for the reconsideration of the ruling next week.
“Just in case the commission denies that request, yes, we are looking at other storage options,” he said. “Unfortunately, based on our analysis that we did before we filed with the commission, those options appear to be more expensive.”
Sims said he’s hoping production and storage ramps up, but if it doesn’t, he said the utility may need to ask customers this winter to conserve supplies by lowering their thermostats.
___
This story was originally published by Alaska Public Media and distributed through a partnership with The Associated Press.
Alaska
ICE: Alaska state attorney arrested by immigration officials, held in Tacoma detention center
ANCHORAGE, Alaska (KTUU) – U.S. Immigration and Customs Enforcement arrested Shucheng “Charlie” Yang, 32, a Chinese national and attorney with the Alaska Department of Law, on July 10 in Anchorage, according to an ICE spokesperson.
ICE said Yang violated the terms of his admission and is a “deportable alien.”
He is currently being held at the Northwest ICE Processing Center in Tacoma, Washington, pending immigration proceedings.
Yang pled no contest to a speeding ticket he was cited for on May 22. There are no other charges against him listed in the Alaska court system.
Yang is the most recent person in Alaska to be taken into ICE custody at the Tacoma processing center; a Mexican woman living in Soldotna was deported along with her three children in February.
His arrest also comes days after a Colombian man was shot and killed by a federal immigration officer earlier this week in Maine, fueling a new wave of protests against perceived ICE brutality.
State outlines hiring process
The Alaska Department of Administration responded to general questions about verifying employment eligibility for all full-time hires and said the state requires applicants to self-disclose their employment eligibility during the application process.
“The State of Alaska hires individuals who have the legal right to work in the United States,” Policy Advisor Kate Sheehan said. “This employment eligibility is confirmed through the federally mandated I-9 verification process.”
Yang is listed as Department of Law civil attorney on the State of Alaska employee directory.
Agencies decline to comment on Yang
Both the Alaska Department of Law and the Office of Gov. Mike Dunleavy declined to address Yang’s employment status or arrest.
“As a practice, the Department of Law does not provide comments on personnel issues,” Information Officer Sam Curtis said.
“We do not comment on personnel issues,” Deputy Press Secretary Grant Robinson said.
Alaska’s News Source is reaching out to Yang through multiple channels while he remains detained in Tacoma.
See a spelling or grammar error? Report it to web@ktuu.com
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