Request for a 2020 Southeast Alaska Salmon Fisheries Disaster Declaration
Author: Bert Stedman
Senate organizes on first day of the 32nd Legislature
Author: Bert Stedman
I am happy to be representing my district as the co-chair of the finance committee alongside my colleague Sen. Click Bishop as part of the new leadership team in the Senate.
Pictured from left to right: David Scott, Mollie Barnes, Lt. Gov. Kevin Meyer, Pete Ecklund, Melissa Kookesh, Sen. Bert Stedman after my swearing in on Jan. 19, 2021.
The six-member Senate Majority leadership team, which balances Alaska’s diverse geographic and philosophical representation, includes:
- Senate Majority Leader Shelley Hughes;
- Senate Majority Whip Mia Costello;
- Senate Rules chairman Gary Stevens;
- Senate Finance co-chairs Bert Stedman and Click Bishop; and
- Senate President Peter Micciche.
Looking ahead after Southeast Conference’s annual meeting
Author: Bert Stedman
Southeast Conference held their annual meeting recently. I was happy to participate on their legislative panel. This year, it looked a little different than usual, as we met virtually on Zoom. The week focused on economic recovery from the effects of the COVID-19 pandemic.
To be honest, a lot of bleak data was presented in the different sessions. After the pandemic caused closures across Alaska in March, we lost a lot of jobs. From April through July, the region lost nearly 7,000 jobs across every sector, and tourism was particularly devastated. The region has lost 17% of its jobs due to the pandemic so far, and reports from the meeting showed Southeast as being the most economically impacted area in Alaska. Regional unemployment rocketed to 11.3% in July. Oil prices tanked. On top of that, we experienced a terrible fishing season. Economic analysts predict a lot of the economic recovery of Southeast and Alaska in general is going to rely on factors beyond most people’s control, such how fast people get comfortable with traveling and cruising again next year and how many people start going to restaurants around the country to bring up the price/demand of fish.
Another factor that will contribute to Southeast Alaska’s economic rebound is government support and policies. That’s where I—along with the rest of your elected officials—come in. Throughout the course of the pandemic I have worked to put aside politics and work together to help get Alaskans the aid they need to weather this economic downturn.
Now we need to get the economy back on track. Economic advisors at the annual meeting predict that we have very likely reached the bottom in terms of economic activity, but the path forward will not be a straight line, and will likely depend on our ability to prevent another shutdown. As we head into winter, we need to continue to follow local health guidelines so we can keep our families and friends healthy and beat the virus back. There is no path to full economic recovery without containment of the virus.
While there is a lot of uncertainty about what the winter and next session will bring, one thing is for sure: I am going to work together with the Dunleavy administration and legislators from around the state to make sure that Southeast Alaska is economically supported, whether that be through infrastructure, the ferry system, education, fishing, tourism, or other areas of significant importance to Southeast.
Another hot topic for next session, as it has been previously, is the discussion surrounding the Permanent Fund. We must protect the Permanent Fund for all Alaskans present and future, while continuing to have annual dividends. Let us not forget the dividend comes from Permanent Fund Earning Reserve account and is directly tied to the overall health of the fund itself. If, and when, the Earnings Account is spent for dividends or state budget needs, there will be enormous taxes imposed upon Alaskans to meet the state’s financial obligations. Let us remember we have spent $16+ billion in savings the last several years and are running out of financial maneuverability. Our financial liquidity is drying up, and we still owe over $700 million in oil tax credits that have not been addressed in the budgets for the past two years. All the meantime, this has happened while we reduced our expenditures and watched our revenue also decline.
Raiding the Permanent is a short-term solution that temporarily puts off the harder, long-term decisions that must be made. We must focus on fixing the foundational problems in our budget now, as they are guaranteed to get worse if we continue to dig into our savings.
In addition, with the changing political landscape of the Legislature, the debate on moving the capital is alive and well. Special sessions that are moved out of Juneau only reinforce this belief, along with the gradual migration of state employees heading north. The capital is Juneau and should remain as such.
With all that being said, I am hopeful for the future of the great state of Alaska. We still have our resources and our beautiful, wild land. We are not only a beautiful state, we are rich, as well. We are the only state with a multi-billion dollar Permanent Fund for the people. Let’s keep it that way. I am looking forward to coming back to Juneau next session and hope that we can make solid progress on developing a more stable fiscal future for our state.
Swan Lake Hydroelectric Facility Expansion Utilized after Record Rainfall
Author: Bert Stedman
After a summer of record-setting rainfall, the Swan Lake Hydroelectric Facility reached full capacity following expansion totaling an additional 15 feet of storage for the first time. Due to drought conditions since construction was finished three years ago, this summer marked the first time water levels made it all the way up on the flashboards, forcing a reservoir spill on July 24.
“This expansion allows for increased storage of one of our area’s most important renewable energy sources: hydropower,” said Sen. Bert Stedman, R-Sitka. “This expansion ensures that we can store more hydropower and use it during the fluctuating rainy seasons. This is just a part of a larger ongoing expansion, and we are currently reviewing other hydropotentials to increase storage generation in the future.”
The Swan Lake Reservoir Expansion Project achieved its objective of increasing regional hydro storage capacity, which was identified as a priority in the Southeast Alaska Integrated Resource Plan. The expansion was a 22MW hydroelectric facility on Revillagigedo Island that expanded the capacity from 86,000 acre-feet to 111,800 acre-feet, allowing for about 25-30% more storage.
Annually the expansion will provide up to 12,000 MWh of additional energy, which equates to 800,000 gallons of diesel fuel annually, according to the Southeast Alaska Power Agency (SEAPA). In the first year of the project an additional $1.1 million in diesel generation to Ketchikan was offset. In addition to the cost savings of displacing 800,000 gallons of diesel is the elimination of 17,904,000 pounds of CO2 being emitted into the atmosphere.
“This is a great example of maximizing the value of an existing hydroelectric asset without the need for additional transmission or powerhouse infrastructure,” said SEAPA CEO Trey Acteson.
The project was completed on an accelerated schedule and came in under the engineer’s estimate of $13.3. million. It was partially funded through a $3.9 million direct appropriation from the State of Alaska and SEAPA sold bonds for the remaining balance. Alaska’s congressional delegation supported the project, as well, which subsequently led to the passage of related Swan Lake Boundary Adjustment Act. Numerous state agencies and the U.S. Forest Service also worked collaboratively to bring the project to fruition.
“SEAPA is grateful for Senator Stedman’s support in securing partial state funding for this important project benefitting the communities of Ketchikan, Wrangell and Petersburg,” Acteson said.
The intertie between Swan Lake Hydro Facility to the Tyee Lake Hydroelectric Facility is another major benefit of this project. It allows for greater utilization of the energy generation capability of the Tyee Facility and better reliability throughout the system, as well. The Swan Lake facility is used to power Ketchikan and the Tyee Lake system sends power to Wrangell and Petersburg. Since completing the intertie, the 15-feet expansion is the first major upgrade to benefit this power station.
“Hydroelectricity and this expansion to the system increases the stability and reliability of the electrical system throughout the district,” said Stedman. “This expansion is a perfect example of how we are working to sustainably develop our great state and bring cheaper, more reliable electricity to our residents.”
SEAPA is a regional generation and transmission entity providing wholesale power to member utilities. SEAPA is authorized under Alaska state law to design, develop, acquire, purchase, own, operate, manage, maintain and improve power projects or generation and transmission facilities.
Stedman and Acteson would like to extend thanks to these other participants who were instrumental in the successful completion of this project:
- Eric Wolfe, SEAPA Director of Special Projects
- Ed Schofield, SEAPA Power Systems Specialist
- McMillen LLC
- Randy Presleigh, Structural Engineer of McMillen LLC
- Finlay Anderson, Sr. Licensing & Regulatory Specialist of McMillen LLC
- Pacific Pile & Marine, General Contractor
- Kuenz America, Inc., fixed wheel gate & flashboard
- Hot Wire, LLC, electrical contractor (sub)
- Bering Industrial Contractors, Inc. (sub)
- Evergreen Concrete Cutting, Inc. (sub)
- Local Ketchikan Shipyard
- Steve Scheldt of PML Environmental
- James Volk of Segrity, LLC (controls configuration/programming)
- Pool Engineering, site support
- Steve Seley of Seaborne Marine, marine transport
- Kent Halvorsen of Boyer Tug, marine transport
- Steve Negri, Tetra Tech, Sr. Wildlife Biologist
- Tyler Rental
AK CARES grant eligibility expanded
Author: Bert Stedman
I am proud to have been able to work with Governor Dunleavy to expand eligibility for the state grant program for CARES act financial assistance for businesses.
Effective on Monday, August 31, 2020, businesses that received any amount of Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) funds will become eligible to apply for AK CARES grants, as will businesses that are secondary sources of income. These businesses can apply through the online application portal (www.akcaresonline.org) starting Monday.
In the beginning of the CARES act aid distribution process, small businesses who received $5,000 or more in aid from the federal government were then ineligible from also receiving aid through the state. While this measure was initially put in place to prevent large corporations from swallowing up all of the available aid, it created problems for businesses in Alaska and prevented them from receiving grants from the state to help their businesses weather health mandated closures and economic downturn.
The Legislative Budget & Audit Committee, which I serve on, approved the governor’s request to fix these problems at our meeting on August 27, 2020.
Applications for grants can be from a minimum of $5,000 to a maximum of $100,000. Businesses can apply through the AK CARES Grant portal at https://www.akcaresonline.org starting on Monday August 31.