Alaska
The Sunday Minefield – May 19, 2024
The second session of the 33rd Alaska Legislature adjourned sine die on Wednesday night. Well at least the Senate did. The House was another story. They did not adjourn until early Thursday morning, which was a clear violation of the Alaska Constitution. With the budget passing, a last minute deal for a temporary fix to the correspondence program, and two energy bills passing, there was no need for an immediate special session. With more than 71,000 ballots counted, Suzanne LaFrance is beating Anchorage Mayor Dave Bronson by more than seven points. And the June 1 deadline to file to fun for the Legislature is less than two weeks away.
A friendly message and reminder to all our readers. The Landmine is made possible by myself and a team of awesome Alaskans. I just got back from Juneau for my sixth session in a row reporting on the Legislature. And we will again be providing in-depth coverage for both the primary and general elections. If you enjoy the content we provide, please consider making a one time or recurring monthly donation. You can click here to donate. We have a donation system that makes it super easy. We would really appreciate it. And thanks to everyone who has been supportive!
Legislature passes operating budget, energy bills, and correspondence fix before adjourning sine die
The following is an excerpt from this week’s edition of the Alaska Political Report. You can click here for more information about the Political Report. A subscription is $1,299/year per organization. Discounted pricing is available for non-profits and government entities. Our coverage of the budget starts with the governor’s proposed budget, and we track everything in detail through the entire process. If you have any questions or would like to subscribe, please email jeff@akpoliticalreport.com.
On the final day of the legislative session, the House and Senate each adopted the conference committee report for the operating budget (see our special edition from Tuesday that details the changes made by the conference committee).
The Senate voted 17-3 to pass the budget just before 11 pm. The House voted 22-18 to pass the budget mere minutes before the midnight constitutional session limit. Because the budget did not require a savings draw from the Constitutional Budget Reserve (CBR), a three-fourths vote was not required for the budget to pass.
The House concurred with the Senate’s changes to House Bill 50. HB 50 was originally a bill about carbon storage from GOP Gov. Mike Dunleavy, but was amended by the Legislature to include another bill from Dunleavy about geothermal resources, as well as several Cook Inlet provisions dealing with natural gas storage regulation, the releasing of seismic and geophysical data, and reserve-based lending – which Bluecrest says is important for further development of their Cosmopolitan field.
The House also concurred with the Senate’s changes to House Bill 307. HB 307 is a Dunleavy bill about utility transmission in the Railbelt, but ended up becoming a broader energy bill. Wasilla Republican Rep. Jesse Sumner had inserted language that said utilities could not pass on the costs of an LNG import facility to ratepayers, but the Senate removed that provision. The bill also exempts new power generation from state and local taxes.
In a clever move, House leadership worked with the Senate to insert the provisions of House Bill 400 – a House Education Committee bill to address the legal issues with the correspondence program – into House Bill 202. HB 202 is a bill from Palmer Republican Rep. DeLena Johnson dealing with opioid overdoses. Because the correspondence language was added to a House bill that was in the Senate, the House was forced to take a concurrence vote. If they had failed to concur, there would not have been enough time for a conference committee to work out the differences. The House voted 40-0 to concur with the Senate’s amendments.
Others in the House had wanted to put the correspondence language in a Senate bill before sending it back, but that would have resulted in a myriad of education amendments on the House floor, like raising the Base Student Allocation (BSA). There was not enough time for that. By passing the correspondence language, the Legislature is likely to avoid a special session later this year to address the issue. The correspondence language is only good until July 1, 2025, meaning the next Legislature will have to deal with this. But this buys them time in an election year and allows them to see what the final Supreme Court ruling is.
The one other reason for a possible special session later this year is Cook Inlet royalty relief. The House majority and Gov. Dunleavy both want to lower the royalty rate for Cook Inlet gas to incentivize more production. The House sent House Bill 223 – a royalty relief bill from Sutton Republican Rep. George Rauscher – to the Senate on Tuesday, but it failed to get a hearing.
Royalty relief is something Furie, owned by John Hendrix, has been aggressively pursuing. Furie holds leases in the Kitchen Lights Unit, where there is believed to be significant natural gas reserves. Furie says that current royalty rates are preventing them from developing more gas. But the Senate, namely Sitka Republican Sen. Bert Stedman, does not want to lower royalty rates without getting proper input from the Legislature’s consultant, GaffneyCline. This is something to possibly watch for in late summer or early fall.
Legislators and staff are already packing up and heading home. The June 1 filing deadline to run for the Legislature is just over two weeks away. We will be providing ongoing coverage and analysis throughout the August and November elections.
Other Happenings
One of the biggest frustrations this session was the sheer number of bills stuffed into other bills at the end of session. This isn’t uncommon but this year it was a lot more than normal. It makes it hard for even close observers to track what is happening and nearly impossible for the public. One example is Senate Bill 189. This was a bill to stop the sunset of several boards including the Marijuana Control Board and the Board of Game. But at the last minute the House loaded it up with a bill from Representative Julie Coulombe (R – Anchorage) dealing with childcare tax credits and a bill from Representative Mike Cronk (R – Tok) dealing with hunting guides. How all of that fits into the constitutional single subject rule is beyond me. The truth is it probably doesn’t. Check out the new title for SB 189!
The latest election count shows Suzanne LaFrance well ahead of Anchorage Mayor Dave Bronson. The election is scheduled to be certified on May 31. LaFrance will be sworn in as Anchorage’s next mayor on July 1. Anchorage mayoral terms are three years, with a limit of two consecutive terms.
The June 1 filing deadline to run for the Legislature is fast approaching. Stay tuned for a Landmine article detailing all of the races to watch. One thing is certain, there will be much less turnover this cycle than the last one. A big factor for the high turnover in 2022 was it was a redistricting year – something that happens every ten years. Two House incumbents aren’t seeking re-election, Representatives Jennie Armstrong (D – Anchorage) and Laddie Shaw (R – Anchorage). And Representative Ben Carpenter (R – Nikiski) is challenging Senator Jesse Bjorkman (R – Nikiski). There will be four or five other House races to watch that will determine who controls that chamber next year.
Representative David Eastman (R – Wasilla) filed a letter of intent for re-election two days ago. There was speculation he might run for the Senate seat, but he filed for his House seat. He faces Republican Jubilee Underwood. That will be a race to watch.
Republican Doyle Holmes filed a letter of intent today to challenge Representative Kevin McCabe (R – Big Lake) again. McCabe beat him by 10 points in 2022 after votes were retabulated using ranked choice voting.
I have to give a big shout out to my girl Katie McCall for her win in our 100 meter dash on Wednesday. During the debate of the transgender sports bill last weekend I joked with her that I could beat her in a 100 meter dash. It quickly became obvious that everyone thought I stood no chance! So we decided to race. It came together on the evening of the last day of session during the dinner break. The race took place behind the Capitol. I could not believe how many people came to watch! You can watch the race here. Someone sent me that hilarious video. Even though I lost the race I kind of feel like I won for three reasons: I did not get hurt, I did not fall, and I did not get smoked! Looking forward to our rematch next year!
This Week’s Loose Unit
On rare occasions we get a back-to-back Loose Unit. This is one of those occasions. This week’s Loose Unit is again the entire 40-member Alaska House of Representatives. It would take too much space to highlight just how loose the House got on the last day of session. So I am going to leave it to three things.
One, the House did not pass the operating budget until eight minutes before the constitutional deadline. And if that was not loose enough, the vote almost failed. When the vote total was 22-18, Representative Andy Josephson (D – Anchorage) switched his vote from yes to no. This promoted Representative Jesse Sumner (R – Wasilla) to also switch from yes to no, making the vote 20-20, one short. Sumner likely did this to get Representative McCabe (fellow Valley rep and majority member) to switch from no to yes, which he did. Then, Sumner went back to yes. The whole thing was super loose. You can even hear the chief clerk say, “This is not a game.” You can watch the crazy vote here. Representative Carpenter was the only majority member to vote no.
Two, the House passed five bills after the constitutional deadline of midnight. You can read this Landmine article that details just how loose that was.
Three, after all of that the House failed multiple times to get the 21 votes needed to adjourn sine die. Honestly House Speaker Cathy Tilton (R – Wasilla) should have just gaveled out and said they were well past the clear constitutional deadline. But she chose to wait to get to 21. It was further complicated by someone placing a call on the house, which prevented any member from leaving the chamber without an escort. All of it was over trying to get the elections bill out of the limbo file. Some majority members wanted to vote on it but many, including the original sponsor, hated the changes the Senate made. This is what caused the deadlock. In addition to being super loose, the whole thing was also really embarrassing.
If you have a nomination for this week’s Loose Unit, or if you have any political news, stories or gossip (or any old pics of politicians or public officials) please email me at jeff@alaskalandmine.com.
Alaska
Travel prices are going up, up and away. Here’s what to watch.
Up, up and away … that’s where most travel prices are going.
It’s true. Not only are our nation’s geopolitical thrusts in the Mideast affecting the cost of your fill-ups, every component of your trip from airfares to car rentals and hotel stays are subject to price hikes.
Imagine filling up a jetliner with jet fuel that’s doubled in price. It’s enough to melt your credit card, regardless of the number of points you get for every dollar spent!
Because the price of oil affects everything, higher prices are eating away at your travel budget in many ways.
Bag fees
There’s lots of press on this. All airlines are increasing their checked-bag fees because of the jump in fuel prices.
Back in 2009, Alaska Airlines instituted a $15 fee for the first checked bag and $25 for the second bag. At the time, there was no charge for the first bag and a second bag was $25.
Last week, Alaska Airlines, along with other major airlines, increased its fees to $45 for the first checked bag and $55 for the second bag. Delta Air Lines charges the same.
Even if the cost of oil comes down, I don’t expect bag fees will ever be reduced.
Travelers who live in Alaska are somewhat insulated from the new hikes because both Delta and Alaska Airlines offer two free checked bags, with conditions:
1. Alaska offers two free checked bags for travelers flying to or from Alaska who are enrolled in Club 49. This does not affect other flights on Alaska. Separately, ATMOS credit card holders can get a free checked bag. Also, elite members of the ATMOS scheme get one or two free checked bags systemwide.
2. Delta offers two free checked bags for travelers flying to or from Alaska who are SkyMiles members who live in Alaska. Again, this does not apply to other Delta flights. Separately, Delta American Express cardholders can get a free checked bag.
3. Elite-level travelers with the oneworld airline cartel, including Alaska Airlines, can get one or two checked bags on American, British Airways, Japan Airlines, Qantas or other oneworld carriers.
[Anchorage’s international airport rolls out self-driving wheelchairs]
Main Cabin vs. Basic Economy
The spread between the lowest available price, Basic Economy, and a more flexible ticket, Main Cabin, has increased. While the difference used to be $20-$30 each way when the Basic Economy scheme was introduced in 2018, the round-trip upcharge now can exceed $100.
For example, the lowest Basic fare to Portland is $337 round-trip on Alaska Airlines. The upcharge to Main Cabin, with full loyalty points, pre-assigned seats and more flexibility on changes and cancellations, is $447, a 33% upcharge.
This trend is not specifically attributable to the new Iran War. It’s just a cost that continues to rise.
New fees
I’m impressed at the creativity of airline people who dream up new fees. Here are some of my favorites from Alaska Airlines:
1. Phone reservations: $15
2. Partner award booking fee: $12.50
3. Pet travel fee: $100 in the cabin, $200 in the baggage compartment with a kennel
4. Left on board item return fee: $20
On Condor Airlines, operating the only nonstop service from Anchorage to Europe, travelers can choose from four different bundles in economy class. The least-expensive, Economy Zero, from $840 round-trip, features fees for travelers:
1. Carry-on bag fee, up to 8kg: $35; a small bag like a purse always is included for free
2. Checked bag: $75
3. Airport check-in: $30
All three of these fees are included in the next-highest fare bucket, Economy Classic, from $900 round-trip. It’s cheaper to buy the bundle than it is to buy the components a la carte. Seat assignments are additional, from $25 for economy.
Airfares on the rise
There are a few good deals available for travel to select West Coast/Intermountain destinations in May, including:
1. Anchorage-San Francisco on Alaska Airlines, from $307 round-trip. Fly May 15-28 only. Add $90 round-trip for Main cabin.
2. Anchorage-Los Angeles on Alaska Airlines, from $317 round-trip. May 15-25 only. Add $90 round-trip for Main.
3. Anchorage-Phoenix on United, Delta or Alaska, from $267-$287 round-trip. Fly May 8-June 9 only. Add $90-$100 for Main.
4. Anchorage-Denver $357 round-trip on Delta. Fly May 8-June 9 only. Add $90 round-trip for Main.
For travel to other destinations, or later in the summer, be prepared to pay more.
Flying to Hawaii? Alaska Air’s nonstop prices out at $706 round-trip between May 30 and June 6. Add $110 round-trip for Main.
Nonstop flights from Anchorage to Salt Lake City start at $669 round-trip with Delta on May 17. That’s $100 more than the cost for the same flights last month. Add $90 more for Main.
Hotel costs continue to rise, accompanied by pesky resort fees.
The Outrigger on the Beach in Waikiki is a very nice beachfront hotel. It’s not plush, or the nicest property. But it’s solid. The cost is $334 per night.
But there’s more: a $50 per night resort fee, plus a variety of taxes and charges, totaling $112.55 per night.
Down in Seattle, the Sound Hotel in the Belltown neighborhood is marketed by Hilton. The discounted rate for “Honors” members — it’s free to join — is $313.34 per night for a king room in late May. Taxes and fees add an extra $56.40 per night.
There’s no appreciable bump yet for hotel rates as a result of the oil price surge. Yet. But if these hotel rates seem high, they’re in line with hotel rates in Anchorage this summer. At the Sheraton in Anchorage in June, it’s $450 per night, plus $54 in taxes and fees, when booked at Expedia.
Car rentals are not cheap
My go-to site for car rentals is the Costco site, which compares major brands and automatically includes Costco discounts.
In Las Vegas, for a one-day rental in May, Budget charges $67 per day, which includes taxes and fees of $22.77. In Anchorage, the same kind of car, medium SUV, costs $92.97 with Alamo.
The biggest differences so far in car rental rates seems to be the bill you’ll pay when you fill up the tank before returning. There’s no appreciable jump in prices because of the new war.
When it comes to making travel arrangements for the spring and summer, it’s more risky making completely non-refundable arrangements.
I made the decision to purchase most of my summer travel plans in advance, but only after determining I would not need to change the dates. Particularly with airline tickets, it’s expensive to change your dates.
There’s lots of uncertainty regarding travel arrangements, particularly international travel. As fuel prices go up due to oil shortages, travel companies will look for ways to recoup the increased costs. In most cases, those higher costs will be borne by travelers.
Alaska
Murkowski warns decreasing national fuel prices could spell disaster for rural Alaska
ANCHORAGE, Alaska (KTUU) – The reopening of the Strait of Hormuz has led to a decrease in oil prices nationally, but Alaska’s senior senator said the state faces a different situation that could threaten rural communities.
“If you can’t produce power because you don’t have the diesel or you just can’t pay the prices, your little communities can collapse,” Sen. Lisa Murkowski, R-Alaska, said at a Friday press conference at the Arctic Encounter Summit in Anchorage.
The price of oil has been a double-edged sword for Alaska. On one hand, the increased price of North Slope oil brings more revenue to the state, but consumer prices can also rise.
North Slope oil prices were $106.36 a barrel on Thursday.
“This is a very precarious time,” Murkowski said. “Our state has enjoyed a bounty because we have benefited from the higher prices of oil that goes into our treasury, but it’s the Alaskans in … the off-road communities that are threatened to be hit most hard.”
See a spelling or grammar error? Report it to web@ktuu.com
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Alaska
New oil and gas lease sale set for Alaska’s Arctic National Wildlife Refuge, amid litigation
JUNEAU, Alaska (AP) — The U.S. government plans another oil and gas lease sale for Alaska’s Arctic National Wildlife Refuge — following two prior sales that saw no interest from major oil companies and amid ongoing litigation aimed at blocking drilling in a region seen as sacred by the indigenous Gwich’in.
The sale will be held June 5, the U.S. Bureau of Land Management announced Friday. It would be the first in the region under a law passed by Congress last year calling for four lease sales in the refuge’s coastal plain over a 10-year period. But it would be the third in the refuge overall, following one held near the end of President Donald Trump’s first term that has been tangled in litigation and another in early 2025, shortly before then-President Joe Biden left office, that yielded no bids.
Drilling supporters, including Alaska political leaders, argued last year’s sale was too meager an offering to draw interest.
The upcoming sale also would be the third federal oil and gas lease sale this year alone in Alaska under an aggressive push by the Trump administration to expand development in the state. There were no bidders in a sale last month for the aging Cook Inlet basin, while a lease sale in the National Petroleum Reserve-Alaska — where the large Willow oil project is under development — drew hundreds of bids despite pending legal challenges to the sale.
Bill Groffy, the land management agency’s acting director, in a statement said the success of last month’s petroleum reserve sale signaled a “robust and continuing demand for Alaskan energy, underscoring the need for more opportunities like the Coastal Plain sale.”
Leaders from Gwich’in villages near the arctic refuge and conservation groups vowed to continue fighting efforts to open the refuge’s coastal plain to drilling. The Gwich’in consider the coastal plain sacred, as it provides calving grounds for a caribou herd they rely on. The plain, bordering the Beaufort Sea in northeast Alaska and featuring rolling hills and tundra, also provides habitat for wildlife including muskoxen and migratory birds.
“The Trump Administration’s relentless push to auction off this sacred land despite overwhelming public opposition and industry that has already signaled they are not interested makes clear that this administration values corporate interests over the rights and lives of Indigenous peoples,” Galen Gilbert, first chief of Arctic Village Council, said in a statement. “We will continue to fight with every tool available to protect the Coastal Plain for our children and all future generations.”
Debate over drilling in the region spans decades.
Leaders of Kaktovik, an Iñupiaq community within the refuge, consider responsible development key to their region’s economic well-being and have welcomed efforts by the Trump administration to open more lands for drilling.
The Bureau of Land Management has said the coastal plain could contain 4.25 billion to 11.8 billion barrels of recoverable oil, but there is limited information about the amount and quality of oil. Meanwhile, conservation groups see the refuge as the crown jewel of the country’s refuge system and a place that should be off-limits to development. The refuge itself is the largest in the country, covering an area roughly the size of South Carolina.
Andy Moderow, senior director of policy at Alaska Wilderness League, said the planned sale “simply runs counter to common sense.”
“Any oil and gas company that is even thinking about buying these leases should know that, if they do, they will be sending a clear message to the American people that no place in Alaska is too sacred to drill in a quest for corporate profits,” he said in a statement urging companies to sit out the sale.
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