Alaska
In Juneau, Alaska, a carbon offset project that's actually working
When Kira Roberts moved to Juneau, Alaska, last summer, she immediately noticed how the town of 31,000 changes when the cruise ships dock each morning. Thousands of people pour in, only to vanish by evening. As the season winds down in fall, the parade of buses driving through her neighborhood slows, and the trails near her home and the vast Mendenhall Glacier no longer teem with tourists.
“That unique rhythm of Juneau is really striking to me,” she said. “It’s just kind of crazy to think that this is all a mile from my house.”
But Mendenhall is shrinking quickly: The 13-mile-long glacier has retreated about a mile in the past 40 years. Getting all those tourists to Juneau — some 1.5 million this summer by cruise ship alone — requires burning the very thing contributing to its retreat: fossil fuels.
In an effort to mitigate a portion of that CO2, some of those going whale watching or visiting the glacier are asked to pay a few dollars to counter their emissions. The money goes to the Alaska Carbon Reduction Fund, but instead of buying credits from some distant (and questionable) offset project, the nonprofit spends that cash installing heat pumps, targeting residents like Roberts who rely upon oil heating systems.
Heat pumps are “a no-brainer” in Juneau’s mild (for Alaska) winters, said Andy Romanoff, who administers the fund. Juneau’s grid relies on emissions-free hydropower, so electricity is cheaper and less polluting than oil heat. They also save residents money — Roberts said she was paying around $500 a month on heating oil, and has seen her electricity bill climb just $30.
“The financial difference is huge,” she said
Programs from Monterey, California, to Lancaster, Pennsylvania, have tried using similar models to finance local renewable or energy-efficiency projects, and carbon offsets for flying and other activities are nothing new. But most of the voluntary market for such things is run by large companies backing distant projects. The fund in Juneau is eager to capitalize on the massive tourist interest in its backyard.
The program, which until recently was called the Juneau Carbon Offset Fund, started in 2019 when members of the advocacy organization Renewable Juneau were discussing how to help Juneau achieve its goal of having renewables provide 80 percent of the city’s energy needs by 2045. The organization’s existing heat pump programs were reaching only the “low-hanging fruit,” Romanoff said: People who had money and were ready to switch for climate reasons alone. It envisioned the fund as a way to get the devices — and the fossil fuel reduction they provide — to more residents.
Romanoff, who also is executive director of the nonprofit Alaska Heat Smart, is aware of the reputational hit carbon offsets have taken lately, but believes the fund’s focus on heat pumps, and working locally, provides transparency and accountability. “It’s a carbon cost that people could actually relate to and understand,” he said.
Many voluntary offset projects overestimate the emissions they’re preventing, sometimes by as much as five to 10 times, said Dr. Barbara Haya, director of the Berkeley Carbon Trading Project. “Project developers are making methodological choices that give them more credits instead of less,” she said, and those verifying the claims are not enforcing conservative estimates when there’s uncertainty.
The Alaska Carbon Reduction Fund uses three years of utility bills to determine how much oil a recipient was burning before getting a heat pump. It’s paid for 41 installations since 2019, at an average cost of $7,000, and estimates the devices will prevent 3,125 metric tons of carbon emissions over their 15-year lifespan. Those calculations, plus a subsidy from non-tourism donations, brings its carbon price to $46 a ton.
That’s more expensive than many voluntary credits, but in line with what Haya said are higher-quality projects. “That looks like the cost of real mitigation,” she said. A more fundamental issue is proving any offset project wouldn’t have happened on its own, Haya said.
Romanoff believes their project meets that condition because the heat pumps go to residents who earn less than 80 percent of the local median income. One of the first recipients, Garri Constantine, lived on far below that when his system was installed. In the three years since, Constantine has become an evangelist for the technology, in part because he no longer spends $300 a month on firewood, trading it for a $50 monthly increase in his electricity bill.
“I just don’t understand why these things haven’t taken off like wildfire,” he said.
The fund has $150,000 in the bank, Romanoff said, but the speed with which it can work is limited by a nationwide shortage of installers. Most of those donations came from the nearby gold mine, but Allen Marine, a regional tour operator, started pitching the fund to passengers this summer and offers an opt-in donation when booking online. It considered the fund an opportunity to “give back to the communities that we operate in,” said Travis Mingo, VP of operations. As part of the partnership, the carbon reduction fund agreed to start funding heat pumps in other Allen Marine destinations, like Ketchikan and Sitka.
A much smaller company, Wild Coast Excursions, includes the offset in its prices. When owner Peter Nave’s plan for summer tours on the local ski mountain fell through, he shifted to bear viewing and alpine hiking trips, some of which are far enough away to require helicopter rides. Climate change is especially visible for Nave, a Juneau native who’s seen the dramatic changes in Mendenhall up close and has worked as a state avalanche forecaster. He’s covering a 125 percent offset of the climate impact of those excursions, labeling his company “carbon-negative.” He estimates that will end up being about 1 percent of the price of each tour. In his mind, it’s simply a cost of doing business.
“I kind of rationalized that if I could offset more than we would use, then I could feel a little bit better about taking on [the helicopter] strategy,” he said.
He’s skeptical of offsets in general, but the tangibility of this program made a difference. “I could see the reduction happening, because I know the heat pumps work, my friends have them, people I know install them,” he said.
Wild Coast Excursions’ contribution to the carbon reduction fund in the first year is unlikely to cover even one heat pump, however. Including cruise ships or major airlines in the program would make a far more significant dent in Juneau’s emissions. Romanoff said his organization had an initial conversation with a local representative of a major cruise company, but was told it wouldn’t participate if the fund only benefits Juneau and the offsets weren’t verified by a third party.
The Alaska Carbon Reduction Fund began pursuing verification with Verra, the world’s largest certifier of voluntary credits by volume, but walked away because of the cost and its own discomfort over negative press coverage. “We could install five or six heat pumps with that money,” Romanoff said.
Offsets are one tool cruise companies consider “on a case-by-case basis,” to hit their own emissions goals, said Lanie Downs, a spokeswoman for Cruise Lines International Association Alaska.
Carnival Plc, which owns three cruise companies operating in Alaska, said it will consider carbon offsets only if energy efficiency options have been exhausted. The other two major cruise lines that regularly dock in Juneau did not respond to requests for comment, but do list offset purchases in their annual sustainability reports.
While the city charges cruise lines a per-head passenger fee, that revenue can be used only for specific projects in the port area. Alexandra Pierce, Juneau’s tourism manager, said the city has “never formally proposed any emissions fees,” on cruise ships, but pointed to the industry’s involvement in efforts to reduce cruise line emissions and install electric shore power, the marine equivalent of stopping idling emissions.
Allen Marine has “started discussions” about including an offset fee in its tours sold through cruise lines. “As we go through contract renewals, it will actually start to snowball effect the amount of money we’re able to receive for this program,” Mingo said. But ultimately, that leaves the bulk of tourists’ emissions — the cruises — unaccounted for.
Romanoff gets a few emails a year from people in other parts of Alaska and the Lower 48 interested in setting up their own offset fund. He thinks his organization’s model could be replicated in places with plenty of oil heating systems to replace. That said, a carbon price based on replacing gas-powered heat might be too expensive for most people, he said.
But in the Alaskan panhandle, he thinks a “groundswell” of support from small businesses could make a difference in getting the cruise lines on board. “Once we build that arsenal to a certain size, then I think that’ll speak pretty loud and clear,” he said.
A pilot was killed in a plane crash in mountainous terrain near Cordova, Alaska State Troopers said Friday.
The agency was notified of the overdue Piper Pacer around 8 p.m. Thursday, troopers said in an online post. The pilot was believed to be the sole person on board the aircraft, which was thought to be flying between Yakutat and Fairbanks, troopers said.
Aircraft from the Alaska Air National Guard and Alaska Wildlife Troopers started searching for the plane, and a Guard helicopter crew found the overdue Piper Pacer around 4 p.m. Friday where it had crashed near Kanak Island, about 40 miles southeast of Cordova, troopers said.
The pilot, whom troopers did not identify, was found dead in the crashed plane, troopers said. His body was take to the State Medical Examiner Office in Anchorage for autopsy and positive identification, according to troopers.
Troopers said the pilot’s next of kin and the National Transportation Safety Board were notified.
The Alaska Senate plans to vote today on a new draft of a bill that would reduce taxes on the Alaska LNG project. It’s the last day of a special session Gov. Mike Dunleavy called to consider the issue.
Dunleavy and pipeline developer Glenfarne, which owns a 75% stake in the project, say a measure replacing a 2% annual property tax with a much smaller tax on gas throughput is essential to allowing the project to attract investors and court lenders. Dunleavy and Glenfarne applauded the version of the bill that passed the House a week ago.
The Alaska LNG project, estimated by the developer to cost up to $54.5 billion, includes an 807-mile pipeline, a conditioning facility on the North Slope to remove gas impurities such as carbon dioxide, and a liquefaction plant on the shores of Cook Inlet to export the gas to Asia. The project would be split into two phases: first, a shorter in-state pipeline to provide gas to Alaskans, and then the much more expensive — and much more lucrative — export infrastructure.
The Senate’s new draft retains many of the House’s provisions with some important changes.
Perhaps the most significant changes are to the project’s timeline: to be eligible for tax relief, the developer must commit to a final investment decision for the first phase by Jan. 1, 2028, and construction of the in-state pipeline would need to be complete by the end of 2032.
The House’s version required only that construction begin by Jan. 1, 2032.
The faster timeline is an effort to address Southcentral’s looming shortage of natural gas, said Sen. Bert Stedman, a Sitka Republican and a co-chair of the Senate Finance Committee. The Department of Natural Resources’ production forecast envisions demand outstripping Cook Inlet gas production by 2032, requiring producers to dip into storage.
“There’s been a lot of concern out of the Railbelt with the declining volume in Cook Inlet,” Stedman said.
But the more aggressive timeline sparked concerns from minority Republicans on the committee; it increases the risk on an already risky, marginal project, they said.
“That’s very damaging,” said Sen. Mike Cronk, a Tok Republican and the Senate minority leader. “There’s so many factors that we don’t control.”
Putting a “hard construction date” in the bill may be a “poison pill,” Cronk said.
Glenfarne and Gov. Mike Dunleavy did not immediately respond to requests for comment on the new version of the bill.
Stedman suggested future legislatures could revise the date to account for “unforeseen black swan events.”
“We can change these and modify these going forward,” Stedman said. “This is not in the Constitution, so I think there’d be some consideration under good faith trying to get the project constructed.”
The tax rate at the heart of the bill — the so-called alternative volumetric tax on gas flowing through the pipeline from the North Slope to Southcentral Alaska — would be fixed, rather than a weighted average tied to the cost of each component of the project.
The Senate draft sets the tax initially at 6.2 cents per 1,000 cubic feet of gas throughput, starting five years after gas begins to flow through the pipeline. The tax would take effect sooner if throughput reaches 500 million cubic feet per day, which is more than double what Southcentral Alaska uses now.
The tax would rise to 10.6 cents per 1,000 cubic feet once Phase 2 of the project, which includes the liquefied natural gas export facility, is up and running. The tax revenue from that mirrors what the Department of Revenue estimates the weighted tax that passed the House would yield.
The rates would rise between 1% and 3% each year, depending on inflation.
The House backed 30-plus years of tax breaks. Some senators were skeptical of that, so their version doubles the tax rate ten years after exports begin, then doubles them again in 2060.
The new bill retains key conditions for the tax relief included in the House’s version: the developer must commit to building a spur line to Fairbanks and negotiate project labor agreements with unions. It also includes up to $80 million in community impact funding for municipalities: $40 million due shortly after the final investment decision for each project phase.
It also includes House-passed price controls on in-state gas. Utilities would pay no more than $16 per million British thermal units, adjusted for inflation. That’s roughly $16.60 per 1,000 cubic feet, substantially higher than current Southcentral gas rates — about $10 — but likely cheaper than imported gas, according to Southcentral’s gas utility.
Also notable is an omission from the bill. It does not include a measure that had been under discussion that would subject large so-called S corporations and other pass-through entities in the oil and gas business, like LLCs, to the state’s corporate income tax.
Glenfarne, in its only comments so far on the new bill, urged lawmakers not to include that tax in the final version.
“If the Senate passes a bill with the proposed S Corp tax, it will introduce major hurdles for Alaska LNG to secure the right financing to build the project,” the company said in a statement provided by spokesperson Tim Fitzpatrick.
Senators are due to amend the bill and take a final vote later today.
The special session expires at midnight tonight, but Gov. Mike Dunleavy has already signed a proclamation calling another special session to begin Saturday.
Asked whether the new special session represented a contingency plan in an event the bill failed to pass, Dunleavy spokesperson Jeff Turner declined to say.
“We will see what happens,” Turner said.
This is a developing story. Check back for updates.
Alaska’s eight prettiest downtown strips sit in towns as different from each other as the landscapes around them. Skagway draws cruise ship visitors to its Gold Rush history. Sitka pairs Russian Orthodox history with totem-lined trails just beyond downtown. Wrangell is one of the oldest towns in the state. Each downtown is worth spending time in, though Sitka, Ketchikan, and Wrangell are the only ones on this list accessible solely by air or water. In winter, clear dark nights can bring Northern Lights over several of these towns. After a day out, fresh seafood is never far away.
Skagway
Skagway is located in Alaska’s panhandle and is known as the gateway to the Klondike Gold Rush and a major cruise ship destination. For those who love nature and history, visit Klondike Gold Rush National Historical Park and hike part of the 33-mile Chilkoot Trail, the historic route between Dyea, Alaska, and Lake Bennett, British Columbia. Backpackers can stay at designated campsites along the route, with permits required in season. For food, check out Skagway Brewing Company, which offers craft beers and American comfort foods. Another seasonal Skagway option is Salty Siren, whose menu features Alaskan golden king crab, seafood chowder, fish and chips, and pulled-pork sandwiches.
Sitka
Sitka sits on Baranof Island and is known for its rich Tlingit and Russian heritage, gorgeous outdoor scenery, and variety of wildlife. Sitka is only accessible by sea or air and is a popular stop on cruises. The area offers lots of outdoor activities, including fishing, hiking, and kayaking. Tourists like to visit St. Michael’s Russian Orthodox Cathedral, a National Historic Landmark whose original 1844-1848 building was reconstructed after a 1966 fire. For a short walk through Sitka’s layered history, visit Sitka National Historical Park, where visitors can enjoy a scenic coastal trail lined with totem poles. Grab a bite to eat at Beak Restaurant for delicious seafood. Or if you’re craving pizza or wings, visit Mean Queen for some comfort food.
Talkeetna
Talkeetna is a historic place in Alaska’s Matanuska-Susitna Borough, famous as a gateway to Denali, North America’s highest peak, which welcomes tourists and climbers from all over the world. Beginning as an Alaska Railroad headquarters, this historic location has an artistic vibe and a vibrant art scene despite its small population. Locals and visitors enjoy flightseeing, rafting, fishing, and delving into the unique history, including Stubbs, the late honorary cat mayor who held the ceremonial role until his death in 2017. For those hoping to see the Northern Lights, Talkeetna’s dark winter skies can be a good base when skies are clear and aurora activity is strong. Once you’re hungry, grab some friends and visit Homestead Kitchen for some traditional rustic options like burgers and flatbreads. Then grab a craft beer at Denali Brewpub in their rustic setting.
Homer
Found on the Kenai Peninsula, Homer is famous for its gorgeous views of Kachemak Bay, the Homer Spit, and distant volcanoes. Here’s a perfect spot for those hoping to see wildlife and enjoy other outdoor activities, like hiking and fishing. Across the bay, Kachemak Bay State Park is reached by water taxi or air taxi and offers views of the mountains and the ocean. Or head to Bishop’s Beach, which is dog-friendly, and enjoy the soft sand with your four-legged best friend. After experiencing the beautiful scenery of Homer, grab some dinner at the Twisted Goat and dig into some comfort food, including pizza, fish and chips, and burgers. On a nice day, visitors won’t want to miss a local favorite, Water Rudders, which offers a beautiful view from its patio.
Seward
Located about 120 miles south of Anchorage, Seward is a scenic port town at the head of Resurrection Bay. It’s loved for its beautiful views of the mountains, marine wildlife, and glaciers, and it serves as a gateway to Kenai Fjords National Park. Here, visitors can take a hike, join in on ranger-guided tours, kayak, and so much more. For those wanting an aerial view, Seward Helicopter Tours offers flights over glaciers and other beautiful sites. For those looking to camp, Waterfront Park offers RV and tent sites with views you can’t beat. After enjoying sightseeing, grab some seafood or steak at Ray’s Waterfront with a wood-paneled dining room overlooking the marina and mountains. Or get some comfort food at The Highliner Restaurant, where the menu includes crab cakes and fish tacos, just to name a few.
Ketchikan
Ketchikan is located on Revillagigedo Island in Alaska’s Tongass National Forest, known for its rich native culture, totem poles, and salmon fishing. The town is a popular cruise ship destination and is only accessible by boat or plane. Here, visitors can enjoy wildlife viewing, especially in the summer months. For a beautiful site, look into Misty Fjords National Monument and see sheer granite cliffs, towering 3,000-foot rock walls, deep saltwater fjords, and waterfalls within Tongass National Forest. Locals and visitors enjoy spending time at Creek Street, a historic boardwalk built on pilings over the creek, which is now filled with shops, cafes, and galleries. Grab a bite to eat at The Alaska Fish House with beautiful views out the window and live music. Or order crab and seafood at Ketchikan Crab & Go, a seasonal spot at Salmon Landing that caters to the cruise-season crowd.
Valdez
Found in Southcentral Alaska, Valdez is known for its stunning mountain views, water scenery, and being the southern terminus of the Trans-Alaska Pipeline. This former Gold Rush town is a popular destination for fishing, glacier tours, and wildlife viewing, and is accessible via the Richardson Highway from Anchorage and Fairbanks. For shore views of icebergs and the face of Valdez Glacier, head to Glacier View Park at the end of Airport Road. For an easy family-friendly outing near town, try Dock Point Trail, a short coastal loop with ocean and Duck Flats views. In summer, The Potato serves handmade comfort food and beer or wine from its harbor-view location in Valdez. Or get some pizza or fish and chips at The Fat Mermaid. It has a laid-back setting and views of the marina.
Wrangell
Wrangell is found in Southeast Alaska, located on Wrangell Island in the Inside Passage, and is known for its Tlingit culture, variety of wildlife, and access to the Stikine River. This is one of Alaska’s oldest towns and offers plenty of outdoor activities like hiking, glacier exploration, and fishing, and is only accessible by air or the Alaska Marine Highway. Anan Wildlife Observatory is a must-visit to see bears, both black and brown, who call it home. You’ll have to take a boat or a floatplane to get there. Access the Stikine River from Wrangell for more wildlife viewing. For food, try Filipino, Thai, sushi, and other Asian dishes at Michelle’s Taste of Asia, a casual, family-run restaurant. Or grab pizza at Hungry Beaver Pizza and Marine Bar by Wrangell’s Inner Harbor.
These eight towns show a side of Alaska that operates at a different pace from the state’s most visited destinations. The downtowns are small, the history runs deep, and the wildlife has a way of showing up whether you plan for it or not.
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