February 22, 2022
Alaskan Friends and Neighbors,
Happy 2-22-22 and Presidents Day on this day of continuing and strangely too early spring break-up! When you’re not avoiding potholes, in honor of Presidents Day, I encourage you to consider one of Abraham Lincoln’s thought-provoking statements:
“Determine that the thing can and shall be done, and then we shall find the way.”
Speech in the House of Representatives, June 20, 1848
I apply this principle to the work I do here in the Capitol building on your behalf. When you read my article about SB199 and SB200 regarding the PFD in this newsletter, you’ll see how President Lincoln’s sage advice applies.
And since I’m a big fan of honest Abe, here are two more quotes (well, the second one isn’t really….). Ponder the first and enjoy the second!
Now for some quick updates. First, thanks to the more than 120 people who attended the Mat-Su Delegation Townhall on Saturday. Three live streams of the meeting allowed additional Alaskans to hear the public testimony as well. It was excellent to hear from so many. If you have any questions about issues raised, please call my office and I’d be happy to discuss them with you: 907-465-3743.
My amazing staff is getting better and better with our Facebook Live productions. I was honored to host former Lieutenant Governor Loren Leman last Tuesday evening and together we paid tribute to former Senator Johnny Ellis and former Supreme Court Justice Craig Stowers who both left this earth the prior week. We also briefly discussed Alaska’s engineers who work to build and repair our infrastructure.
In addition, I hosted Gwen Holdmann of Alaska Center for Energy and Power in the same broadcast to discuss micro nuclear reactors which are being considered as a potential option for communities in Alaska. Are they safe? Are they environmentally responsible? How are they different from the old and large reactors? Glad you asked. I have an article to answer your questions below!
In addition to micro nuclear reactors and the PFD, we are considering the bifurcation of the Department of Health and Social Services. The department is massive and difficult to manage as it is. The governor is proposing to divide the current department into two new departments via an executive order: the Department of Health and the Department of Family and Community Services. Whether the creations of two new departments and the dissolution of another can be done without substantive statute changes is a question we are tasked to address. The legislature alone has the authority to make substantive changes to statutes. A governor can make minor non-substantive tweaks via an executive order.
Last night’s Facebook Live was about the PFD bills currently in the Senate and other bills with upcoming public testimony opportunities. Be sure to check it out.
Please be sure also to catch and note below some of the visitors with whom I met and the issues we discussed. I’ll be chairing the Alaska Grown Caucus this week as we begin the process of determining our legislative priorities for this year. Lastly, check out the updates on my bills filed on your behalf. One bill, SB 181, allows contractors the option of referring the public to a website for their licensure and other statutorily required disclosure information in their advertisements rather than stating or printing all the details. It’s a common sense bill – which is the best kind!
Thanks for being engaged and caring enough about your state to read this update!
Working on your behalf,
Representative DeLena Johnson (on left) and I had the pleasure to meet with constituent Hillary Palmer who testified in support of SB 182 Interference with Emergency Services and her daughter Cambria Palmer who was In Juneau for a karate tournament. The Palmers from Palmer!
Do SB199 and 200 solve the PFD chaos? Nope.
This week, the Senate Finance Committee introduced two new bills, Senate Bills 199 and 200, which would make statutory changes effecting the calculation of your permanent fund dividend (PFD).
As many of you know, the PFD has been a point of contention since former Governor Walker cut the dividend by veto in 2016. The Supreme Court upheld his PFD cut and ruled that the PFD was subject to appropriation. In other words, the courts ruled that the legislature is not obligated to follow the PFD law.
It’s been chaos ever since. Endless legislative sessions paired with political strong-arming to pass budgets with reduced PFDs that don’t follow the law have ensued. The fact that the legislature has been wrapped around the axel on this issue has resulted in crucial matters, such as our failing schools and high rates of domestic violence and sexual assault, to be repeatedly shoved aside and left unaddressed. This is unacceptable.
The question then is, do either SB199 and SB200 settle the matter? No, neither do.
Allow me to explain. You may be aware that I have been involved in numerous working groups and debates to find a fair and reasonable solution to the PFD issue. I have concluded that due to the court ruling, the only true solution is to settle the matter in the constitution to take the decision out of the hands of the legislature.
The two bills are a perfect example of why. Senate Bill 199 and Senate Bill 200 are attempts by the Senate Finance co-chairs to change the PFD formula in law, but do nothing to ensure that the law will be followed. That can only be done in the constitution.
So what do these two bills propose as the new PFD formula?
SB200 is the shorter of the two bills. It splits the 5% POMV (percent of market value) annual draw from the Permanent Fund with 75% directed to the general fund for government spending and 25% to the dividend fund for PFDs. This is also an approach that the House is considering. I will move on to discuss the second bill because while neither of these bills are approaches I can support, I am quite confident that there is not the support for this 75/25 split proposed in this bill in the full Senate.
SB199 contains intent language that suggests the bill is in keeping with the findings of the Alaska Fiscal Policy Working Group’s Final Report. As someone who was a member of the working group and who worked tirelessly to find consensus among the other members, I can tell you that this statutory approach rather than a constitutional solution is not in keeping with recommendations in the report.
SB 199 would set the dividend amount in statute at $1100 for 2023, $1200 for 2024 and $1300 for 2025. The bill further states that the dividend would be capped at $1300 each year after 2025 and thereafter would be adjusted for inflation unless $700 million in new taxes are generated annually by December 15 2022. In that case, a 50/50 split of the POMV draw could kick in.
Both bills use “may” language regarding the legislature appropriating funds for the PFD. And of course, due to the court ruling, the legislature could ignore a new PFD formula in law just like it has ignored the current formula in law for six years.
The working group’s solution included several items working together: spending cap reform (again, due to the court ruling, the high spending cap in the constitution would need to be ratcheted down – a statutory “fix” would fix nothing), constitutional PFD certainty, budget cuts and new revenues (these would not need to be new taxes but could come from a straight-up 5% draw rather than a 5% POMV draw for a couple of years).
Last year the various senate committees moved these concepts through the committee process only to have them stall in the Senate Finance Committee. This is a clear indication that the Senate Finance co-chairs are not interested in a true long term fiscal solution but prefer the status quo: using funds each year otherwise intended for the PFD to meet their state budget spending priorities.
Ensuring the law backs up ongoing access to the PFD cookie jar seems to be the gist of both SB199 and SB200 as currently written.
What the supporters of either of these two bills don’t seem to understand is that at the end of the day, a statute is meaningless and fixes nothing. The matter must be settled in the constitution and the people of Alaska are not likely to support anything less than a 50/50 split of the draw. A constitutional amendment that is fair and reasonable will pass; one that isn’t won’t. If the legislature doesn’t vote to put a constitutional amendment on the ballot that is fair and reasonable, my predictions is that Alaskans will vote to hold a constitutional convention this coming November so they can take care of it themselves.
Both of these bills will be heard again in Senate Finance on Wednesday, and I invite to you listen to the hearing. You can send your viewpoints about the bills in writing to Senate.Finance@akleg.gov and your comments will be entered on the public record. By the way, public testimony on both bills was taken yesterday; opposition against these two pieces of legislation was approximately 10 to 1.
+Wednesday, February 23, 2022 – SENATE FINANCE 532 – 9:00 AM
*SB 199 PERM FUND; PERMANENT FUND DIVIDEND
*SB 200 PERMANENT FUND DIVIDEND; 25/75 POMV SPLIT
Bills Previously Heard/Scheduled
Mat-Su Borough Manager Mike Brown and Assembly Member Stephanie Nower stopped by to discuss the borough’s legislative priorities which include a $63 million road package as well as a provision in SB 9, the alcohol Title IV rewrite bill, to accommodate municipalities and especially growing areas like ours.
I successfully amended SB 9 in the Senate Judiciary Committee to include the provision which stayed intact when the bill passed on the Senate floor and when this photo was taken. Unfortunately, shortly thereafter, the provision was stripped out in the House Labor and Commerce Committee. It is questionable whether there will be enough Senate votes to concur with this change in the bill.
Finally, a lower-cost energy option has potential for Alaska
How would you lower energy costs in Alaska by 40-50%? The average Alaskan pays $0.22 per kilowatt-hour in energy prices according to the US. Energy Information Administration (November 2021). The national average is $0.14/kWh according to the same report.
It’s clear energy is too expensive for Alaskan households.
Residential users are not the only ones plagued by the high cost; commercial users in Alaska pay $0.19/kWh and industrial users pay $0.16/kWh on average compared to the national commercial average of $0.11/kWh and the national industrial average of $0.07/kWh.
I’m happy to report that finally, a lower-cost energy option has potential for Alaska and is now on the horizon.
Alaska Center for Energy and Power estimates that advanced, ultrasafe Micro Nuclear Reactors (MNRs) could generate electricity at rates ranging from $0.10/kWh to $0.14/kWh.
That is quite the savings. The option of MNRs is one Alaska should not ignore, and that’s one reason why my committee is delving into their potential use in our state.
Cost savings alone is not enough of a reason, however. When those of us who’ve been around for decades think of nuclear, the questions and concerns that immediately pop into our heads pertain to safety and environmental impact. Something affordable but dangerous or destructive will not cut it.
As my aide and I dug into the current development of MNRs, we began to learn of how vastly different these new compact units are from the scary large legacy reactors from years ago. What we are learning is answering our safety and environmental questions.
MNRs (also referred to as Microreactors) require a paradigm shift in the way in the way we think about nuclear power. MNRs are distinct from the legacy reactors responsible for events like Fukushima or Chernobyl in several fundamental ways—safety being paramount. The historical catastrophes of legacy nuclear technology most often resulted from mechanical failure of the cooling system leading to overheating and meltdown.
Unlike legacy reactors, the MNRs utilize passive cooling systems. Although designs vary by vendor, all use cooling fluids and systems that work without mechanical action or human operator control. One common safety design is to keep the coolant at low pressure to avoid ruptures. Another is to utilize gravity to drop the coolant into the reactor in the event of a system going offline. Vendors working in this space are incorporating several redundant layers of passive cooling in their designs.
Safety and environmental impact were also guiding factors in the development of fuel methods for MNRs. Many designs use TRISO particle fuel. TRISO fuel consists of a uranium, carbon, and oxygen fuel kernel wrapped within three layers of carbon and ceramic-based materials roughly the size of a poppy seed. This incredibly small fuel particle can power a MNR for a projected 10-15 years. The TRISO particle is structurally resistant to corrosion, neutron irradiation, oxidation, and can withstand extreme temperatures well beyond the threshold of nuclear fission which makes it virtually impossible for the fuel particle to melt inside of the reactor. Furthermore, the minuscule amount of radioactive uranium used in the particle prevents any downstream contamination.
According to a nuclear expert’s testimony in the Senate Community and Regional Affairs Committee last week, if radioactive material somehow did leak from the fuel particle, a community 10 miles away would be completely unaffected by any radioactivity. In fact, there are current designs that limit the possible contamination zone to even only within the MNR site!
Another key distinction of MNRs is their size. The MNR units would be fully assembled in factories and then transported by truck or barge. This will prevent on-site assembly errors and complications. Furthermore, when it is time for the fuel particle to be replaced, the MNR would be hauled back to the factory for refueling; therefore, no refuel incidents would occur on-location. Current Alaska statutes prevent the storage or disposal of nuclear waste in our state. The nearest disposal location and one of three in the nation is located in Washington state.
Alaska presents some unique topographical and weather-related questions that MNR developers have taken into consideration. Seismic activity, a significant barrier and safety concern for large-scale reactors, presents little concern for MNRs. The fuel particles themselves, in addition to the reactor structures, are designed to be resistant to seismic activity. Furthermore, passive cooling measures neutralize the system and contain the spread of nuclear materials within the MNR site in the event of an incident. MNRs have also been tested in arctic cold environments and the Alaska winters present no concerns to the developers.
Additional good news: MNRs are emissions-free.
Many MNR designs are load-following, meaning they can scale up or down in energy production based on demand fluctuations. Furthermore, most can run in sequence with each other or in conjunction with renewables like solar or wind which are limited by weather conditions. Typically, a single MNR is designed to produce electric power output around 10MWe. To put this in perspective, the Alaska Center for Energy and Power estimates that a unit of this size could bear the load of a community the size of Bethel, Alaska.
Because many rural communities rely on diesel fuel for power, MNRs can offer a more sustainable, environmentally friendly, and reliable source of power. Also, a significant amount of diesel Alaska imports is from Canada, so MNRs offer one more way for Alaska and the U.S. to achieve energy independence.
Not only do MNRs produce energy, but they can be utilized for heating in areas that have the appropriate heating infrastructure. Because of the extreme temperature involved in nuclear fission, MNRs could provide unexplored possibilities for industrial machines, manufacturing, and refinement.
The potential for these reactors is abundant. I have always been tuned to innovation and cutting-edge technologies as possible solutions for the challenges we face in Alaska. If we can develop locally-based, safe, and environmentally responsible energy and heat solutions while lowering energy and heating costs for Alaskans, I say let’s make sure the legislature doesn’t stand in the way!
We hosted Gwen Holdman, Director of the Alaska Center for Energy and Power, on our Facebook Live last week. Ms. Holdman is an incredibly intelligent expert in this subject and is working hard to research the potential for micro nuclear reactors (MNRs) in Alaska as a solution for affordable energy for communities. Be sure to check out the article about MNRs in this newsletter. You won’t regret it!
OTHER OPPORTUNITIES
FOR YOU TO WEIGH IN THIS WEEK
Public Testimony
Below is list of bills scheduled to be heard in various committees this week. If you’d like to provide public testimony, plug the bill number (for example “HB 133”) into the search bar here to learn the date and time. Scroll down toward the bottom of this newsletter to find the public testimony call-in phone numbers.
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As the volume of daily contacts reaching out to my office has exponentially increased over time, my staff stands by, ready to assist you. If you desire follow-up, feedback, a response to a question, etc., it’s always best to call the office. Below are direct phone numbers for my aides, or you can call the general number at 907-465-3743. |
For additional information,
contact my staff:
Buddy Whitt- Chief of Staff
-Senator Hughes’ Aide for Senate Judiciary Committee
-Senator Hughes’ Aide for Senate Education Committee
Buddy.Whitt@akleg.gov
907-465-5025
Daniel Phelps – Legislative Aide
-Committee Aide for Community and Regional Affairs
-Senator Hughes’ Aide for Alaska Grown Caucus
Daniel.Phelps@akleg.gov
907-465-1172
Brent Bartlett – Legislative Aide
– Senator Hughes’ Aide for Health and Social Services Committee
Brent.Bartlett@akleg.gov
907-465-3743
Serving You in These Roles
Current Senate Committees:
- Community & Regional Affairs Committee, Chair
- Health & Social Services Committee, Vice-Chair
- Rules Committee, Member
- Judiciary Committee, Member
- Education Committee, Member
- Legislative Council Committee, Alternate
Finance Subcommittee Assignments:
- Senate Transportation & Public Facilities (Fin Sub), Member
- Senate Administration (Fin Sub), Member
- Senate Judiciary (Fin Sub), Member
Other Appointments:
- State Agriculture & Rural Leaders, Alaska Delegate
- Mat-Su Legislative Delegation, Member
- National Conference of State Legislatures – State Coordinator
- National Conference of State Legislatures – Law, Criminal Justice and Public Safety Committee, Member
- National Conference of State Legislatures – Task Force on Cybersecurity, Member
- Council of State Governments – Transportation Committee, Member
- Council of State Governments West – Canada Relations Committee, Member
For information on bills I’m co‑sponsoring
click here.
For information on all bills filed during this session,
click here.
Passed Legislation
(Bills that are finished with the legislative process)
SB 27 – Industrial Hemp Program; Manufacturing- Many of you are aware that in 2018 I sponsored and the legislature passed SB6 allowing for the legalized growth and production of Industrial Hemp as an agricultural product in the Alaska. In late 2018 the US Congress passed the 2018 Farm Bill which made additional changes to the federal statutes regarding the production of industrial hemp. SB 27 makes a few small changes in Alaska statute in order to conform to those federal changes.
The bill was passed unanimously in the Senate and almost unanimously in the House (Representatives Eastman and Kurka were opposed to this bill). This summer the Governor signed the bill at the Alaska State Fair, and just a few weeks ago the United States Department of Agriculture approved the Alaska Industrial Hemp Plan so that Alaska can now grow, manufacture, and sell hemp and hemp products across jurisdictions. This is a great win for Alaska.
Legislation Update
(Shelley’s bills filed with your best interest in mind)
SB 41 – Health Insurance Info; Incentive Program. Also known as the Alaska Health Care Consumers Right to Shop Act. The bill is currently in the Senate Labor and Commerce Committee. A second hearing on the bill was held recently and we are hopeful for a third hearing which we expect will include some slight revisions. After a refresher about what the bill did (since the bill had not been before the committee for nearly a year) members were supportive. The bill was held to allow an adjustment. We hope the bill will be heard again soon and moved out. The next committee of referral is the Senate Finance Committee. This bill will loosen up free-market principles to operate like they should in our healthcare market in Alaska. Providing an easy way for consumers to price compare through an online tool and offering an incentive via cashback for shared savings if the consumer chooses a provider who charges less than the average charge, this bill help reintroduce competition into a sector of our economy where it is now fairly non-existent. When it comes to healthcare, Alaska is not only the highest cost state in the nation, it is the highest cost location on the globe. This stifles economic growth in other sectors, overburdens Alaskan families and individuals, is taking dollars allocated to education away from instruction in our schools, and increases costs for local and state governments.
SB 42 – Virtual and Early Education, Reading- The “Education Transformation Act” (now merged into Senate Education Committee SB 111) establishes proven reading instruction in our schools with the goal that children will learn to read well by third grade. It also establishes an online platform with a menu of classes and video samples in order to open up a larger variety of course offerings and teaching expertise to students statewide. Lastly, it provides for optional pre-K with a strong reading preparation component. The bill is awaiting a third hearing before the Senate Finance Committee. Certain items in the bill were recently misunderstood and misrepresented by a few members of the House majority in a newspaper opinion piece. Several of us are working to set the record straight so that the legislation can move forward and young Alaskan students can benefit from schools being held accountable to teach children to read.
SB 43 – Elections, Voting, Campaign Finance- “An Act relating to campaign finance and initiatives; relating to elections and voting; and relating to unlawful interference with voting”. SB 43 is about improving transparency and accountability in Alaska’s campaign finance laws as well as securing the integrity of Alaska’s election process. We were able to move the bill from the Senate State Affairs Committee to the Judiciary Committee but will not be requesting a hearing because the key pieces of the bill were incorporated into SB39, an election integrity bill by Senator Shower which awaits a hearing in Senate Finance.
SB 102 – Extending the Alaska membership in the Compact to advocate for an Article V Constitutional Convention for the purposes of advancing an amendment to the United States Constitution requiring a balanced budget. Alaska’s membership in this compact is set to expire this year, but with the passage of Senate Bill 102, Alaska would remain a member in the compact until 2031. The bill has been in the possession of the Senate Finance Committee since early April 2021 but has not been scheduled. Former Lt Governor Mead Treadwell is a big advocate for this legislation and is visiting with key members of the legislature, hoping to win support for the bill to move.
SB 140 – An Act relating to school athletics, recreation, athletic teams, and sports. The goal of SB 140 is simply to maintain the rights women fought for and gained in obtaining Title IX status in 1972. Before Title IX, 1 in 27 girls played sports. Today that number is 2 in 5. We plan to request a hearing soon in the Senate Education Committee.
SB181 – Identification of Contractor in Ads – This bill amends the current statute to allow contractors to provide an internet website or landing page that contains their licensure and identification requirements rather than listing the details in the advertisement. This bill was heard for the first time in the Senate Community and Regional Affairs Committee last week which included time for public testimony. If it is the will of the committee, SB 181 will be moved out to await a hearing in the Senate Labor and Commerce Committee.
SJR 4 – Proposing an amendment to the Constitution of the State of Alaska relating to abortion. This bill will allow for the question of abortion to be decided through legislation or voter initiative. The bill was heard and passed out of the Senate Health and Social Services Committee and the Judiciary Committee is currently in the Senate Finance Committee. We are hopeful that the committee will hear the bill in the near future.
Join Shelley on Facebook Live each week to ask questions and give input.
We typically broadcast Mondays at 6:00 pm, but watch for a notification on Facebook as the day/time is subject to change.
Be sure to “like” the “Senator Shelley Hughes” Facebook page www.facebook.com/AKShelleyHughes
so you’ll get a heads-up each time we air!
HAVE A FEDERAL ISSUE???
Contact Alaska’s US Senators and Congressman
Lisa Murkowski – Senator
Anchorage: 907-271-3735
Mat-Su: 907-376-7665
Dan Sullivan – Senator
Anchorage: 907-271-5915
Mat-Su: 357-9956
Don Young – Congressman
Anchorage: 907-271-5978
TIPS TO STAY IN THE LOOP
More important than ever!
TIP #1: The Alaska State Legislature web site is the place to track bills, locate and contact your legislators (session), and access committee information. Questions? Try the help wizard or call 1-800-478-4648.
TIP #2: SMS Bill Tracking! Once you know what bill(s) you want to monitor, here’s a convenient way to track what’s happening. Text any bill number (ex: SB1) to 559-245-2529 to enroll in text alerts for that particular piece of legislation. You’ll receive an enrollment confirmation as well as instructions on how to unsubscribe.
TIP #3: How to Get in Touch with Shelley! Give our office a call at (907)465-3743 or 800-565-3743 or send an email to Sen.Shelley.Hughes@akleg.gov. If you need assistance, want a response, or need other follow-up, please call rather than email.
Buddy Whitt- Chief of Staff
-Senator’s Aide for Senate Rules Committee
-Senator’s Aide for Majority Leadership
-Senator’s Aide for Senate Floor Session
Buddy.Whitt@akleg.gov
907-465-5025
Daniel Phelps – Legislative Aide
-Committee Aide for Community and Regional Affairs
-Senator’s Aide for Senate Judiciary Committee
Daniel.Phelps@akleg.gov
907-465-1172
Brent Bartlett – Legislative Aide
-Senator’s Aide for Health and Social Services Committee
Brent.Bartlett@akleg.gov
907-465-3743
Diane Bryant – Legislative Aide
-Senator’s Aide for Education Committee
Diane.Bryant@akleg.gov
907-465-1173
Juneau Office
Alaska State Capitol Rm 30
Juneau, Alaska 99801
907-465-3743
800-565-3743
Mat-Su Office (closed while in Juneau)
600 E. Railroad Avenue
Wasilla, Alaska 99654
907-376-3725
Best regards,
Copyright © *2022* *Office of Senator Shelley Hughes*, All rights reserved.
