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Alaska News

Have a felony record in Alaska? You may still be eligible to vote.

A ballot and instructions for the 2024 Alaska primary election are seen on Monday, Aug. 5, 2024. (Photo by James Brooks/Alaska Beacon)

Alaska’s midterm election season is underway. Residents who lost the right to vote with a felony conviction may have their right restored once they are unconditionally discharged from the Alaska Department of Corrections’ supervision.

Restoration of voting rights after a felony conviction varies by state. Alaska is one of more than a dozen states that requires residents to complete their prison sentence and be unconditionally discharged from custody before their right to vote is restored.

That means Alaskans can vote again once they are no longer under DOC supervision, which includes halfway houses, sentenced electronic monitoring, probation or parole.

The Department of Corrections is required to issue a letter as proof of unconditional discharge, which residents must provide to the Alaska Division of Elections to re-register to vote if they otherwise meet eligibility requirements. 

The deadline to register to vote is July 19 for Alaska’s primary elections, September 6 for local elections and October 4 for the midterm elections in November. 

Residents can check their voter registration at myvoterportal.alaska.gov.

Alaskans lose the right to vote after a state or federal felony conviction involving crimes of moral turpitude, a list which includes murder, assault, drug-related felonies and others. That means they are ineligible to vote in all local, state and federal elections while in prison and under DOC supervision.

If convicted of a misdemeanor or a felony not involving a crime of moral turpitude, Alaskans are eligible to register and vote in elections. 

The roughly 40% of Alaska’s incarcerated population who is pre-trial — even under felony charges — are also eligible to vote. That includes incarcerated Alaskans who are awaiting trial, plea agreements or sentencing.

This year, the deadline for eligible voters to apply for absentee by-mail voting is August 8 for the primary, and by October 24 for the general election. 

An official with the Department of Corrections said probation officers at all correctional facilities will assist any inmate that requests help with voting, including registration, updating address information and applying for or casting an absentee ballot. 

“Each facility has posted in all common areas an instructional notice from the Division of Elections and each facility has paper copies of the absentee ballot application,” said Betsy Holley, a public information officer for the department, by email on Wednesday. 

Under Alaska statute, most inmate mail is scanned and copied before it is provided to inmates. Ballots are considered “privileged mail” and subject to monitoring under specific criteria, Holley said. Inmates fill out their ballots and cast their vote like any other eligible voter. 

“Mailroom staff may not read or search outgoing privileged mail. Mailroom staff will verify, in the prisoner’s presence, that the intended recipient of the mail is the same person as the privileged addressee,” Holley said. 

Holley said the numbers of Alaskans unconditionally discharged from DOC custody and eligible to vote each year was not immediately available. 

The ACLU of Alaska has updated voter guidance and resources for formerly and currently incarcerated Alaskans. The organization, along with state nonprofit Partners for Progress, is hosting voter restoration information sessions this election season.

“Incarceration does not automatically disqualify Alaskans from voting,” said Meghan Barker, ACLU of Alaska communications director, by email on Tuesday. “It’s critical that people who have interacted with the criminal legal system know their rights and know how to either request an absentee ballot while incarcerated or, if eligible, take the steps to restore their voting rights after they’ve been incarcerated.”

Barker said that as of May  there are nearly 1,750 Alaskans that are incarcerated and awaiting trial or sentencing that may be eligible to vote. She noted that Alaska Native people make up a disproportionate number of those incarcerated statewide. While Alaska Native people are less than 20% of the state’s population, they made up 40% of the prison population last year.

“As we continue to look at ways to combat the disenfranchisement of Alaska Native people, we must also consider the demographics of Alaska’s prisons and the people who are eligible to vote, even if they are incarcerated far from their home communities or districts where they would vote,” she said.

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After gasline tax bill, pipeline corporation plans to ask Alaskans for a few billion dollars

By: James Brooks, Alaska Beacon

A bumper sticker on a car parked in Midtown Anchorage on June 29, 2026, expresses support for the Glenfarne-Alaska Gasline Development Corp. plan for natural gas pipeline tax concessions. (Photo by Yereth Rosen/Alaska Beacon)

A few months from now, if developers of the proposed trans-Alaska natural gas pipeline move forward with the project, they will ask Alaskans for something between a few hundred million and a billion and a half dollars.

The request is optional, but if the state doesn’t chip in, Alaska’s 25% ownership of the pipeline will dwindle to a smaller fraction, and any profits will similarly shrink.

Two other requests for cash could come as soon as next year, to first fund a gas treatment plant on the North Slope and then a natural gas export facility on the Kenai Peninsula.

As state lawmakers debate a multibillion-dollar tax break for the pipeline project this week, a confidential memo and legislative testimony show the break won’t be the last financial request from Alaskans.

Keeping the state’s 25% ownership of the Alaska LNG project will cost at least $4 billion, according to estimates from the Alaska Department of Revenue. 

If the state spends that money, and if the project is built and sells gas as planned, the department estimates the state will earn more than $21 billion through 2062, almost five times its initial investment. 

But there’s a risk: if the pipeline project costs more than expected, the state of Alaska will be asked to pay more.

“We have reserved the option for the state of Alaska to elect to invest or not,” Frank Richards, president of the Alaska Gasline Development Corp., told the Senate Finance Committee on June 4. “The project will proceed forward without the state investment, but we wanted to give the state that opportunity should it elect to, eyes wide open.”

A potential investment for the state

Last year, the Gasline Development Corporation, a state-owned company charged with building the gas pipeline project, sold the lead role in the project to Glenfarne, a private multinational developer.

According to a confidential memo analyzing the deal, Glenfarne agreed to pay $10 million and fund the project’s development until the “Final Investment Decision,” the point at which investors start to put down money and contracts go out for construction.

Glenfarne has 75% ownership of 8 Star Alaska, the parent company of the pipeline project. The state — through AGDC — has 25% ownership. AGDC’s ownership share stays the same regardless of how many new investors come into the project.

But ownership of 8 Star Alaska may not mean much.

The Alaska LNG project includes three separate “subprojects” — a gas treatment plant on the North Slope, the pipeline itself and an export terminal on the Kenai Peninsula.

Each of those subprojects is its own subsidiary company, and not all of the subproject profits will go back to 8 Star Alaska.

“The real value is down in the three subsidiaries of 8 Star,” said Sen. Cathy Giessel, R-Anchorage, in a July 2 podcast interview. 

Right now, each subsidiary is subject to the same 75-25 ownership split as 8 Star, but that changes at FID, when other investors put in their money.

At that point, said Matt Kissinger, AGDC’s commercial director, there will be enough money to build each subproject, but the state will have the opportunity to push out other investors and preserve its 25% ownership. 

“​​All the investors will be in; they’ll all be committed, and then we’ll have 180 days for the state to decide to back them out of some of their commitment,” he said.

According to a draft analysis of last year’s Glenfarne-AGDC deal, AGDC has “the right to invest in up to 25%, but not less than 5%, of each sub-project at FID.”

The 5% minimum — if AGDC takes any share at all — was negotiated with Glenfarne, Kissinger said, because if the state is going to push out another investor, it needs to do so for a meaningful amount.GET THE MORNING HEADLINES.SUBSCRIBE

Part or all of the 25% buy-in could be taken by AGDC. The state could buy in directly, or another state-owned corporation like the Alaska Industrial Development and Export Authority, Alaska Railroad or the Alaska Permanent Fund Corp. could do so.

If the state and public corporations don’t reach the 25% maximum, then Alaska residents, Alaska Native corporations and other in-state companies would have a chance to take some or all of the remainder. 

On June 25, the AGDC board voted unanimously to approve the creation of a subsidiary that will allow individual Alaskans to invest in the project through AGDC.

“No more funds are required by the State of Alaska to invest for this project to proceed forward, it’s just that we have the option to, and if Alaskans want the opportunity to invest, that’s the structure that we’re going to set up for them,” Richards told the board.

AGDC and Glenfarne expect the pipeline subproject to reach FID this year. The gas treatment plant and the export facility FIDs are expected no sooner than 2027.

Department of Revenue estimates a $4.4 billion cost

Keeping the state’s share of the project at 25% is likely to be expensive. Glenfarne estimated last month that building the pipeline alone will cost as much as $16.9 billion. 

In an example scenario AGDC presented to legislators last month, the company suggested developers could take out loans for 70% of that cost. 

The Alaska Department of Revenue is independently using that percentage for its baseline predictions, too.

The developers could cover the remaining 30% by selling part of the pipeline subsidiary. 

If the state wants to keep 25% ownership of the whole project, that would mean buying 25% of that 30%.

Using some assumptions, “that would result in $4.4 billion in nominal terms that would be required to invest in the project,” said Dan Stickel, the Department of Revenue’s chief economist, on May 21.

The profits could be huge, the department estimates. A 25% equity share could be worth $21.3 billion through 2063. 

That’s on top of the tens of billions of dollars in production taxes, property taxes, royalties and fees that the state would receive regardless of whether or not it takes an additional ownership share.

What happens if Alaska doesn’t buy in? 

“That (25% ownership) will definitely be diluted. That’s the mechanism that was designed,” Kissinger told state lawmakers. 

AGDC’s scenario, presented to legislators on June 4, suggested 8 Star Alaska would keep 35% of the pipeline subsidiary. AGDC would have a quarter of that 35%, or 8.75% of any profits after debts are paid.

If 8 Star Alaska keeps less than that 35%, then the state’s quarter would shrink correspondingly.

While investing in the project increases the potential profits, there’s also a risk, said Sen. Bert Stedman, R-Sitka, on June 16. If the project costs more than expected, the state and other investors would have to pay more money to keep their share of the project.

“If the state wishes to take that risk, and if the state wishes to be a paying member of the project … you would be paying 25% of any of the investment dollars coming in to maintain that,” Kissinger said on June 3.

Where would Alaska get the money?

Current state law allows AGDC to borrow money without legislative approval. 

“Right now, under the current statutes, AGDC has extremely broad bonding authority. We can raise revenue bonds — provided there is no recourse back to the state — without any further approvals,” Kissinger said on June 26.

What’s a revenue bond?

The Alaska Constitution severely limits the kinds of government borrowing that the state is responsible for and must repay through taxes. Corporations like AGDC can instead issue revenue bonds, which are repaid by the corporation’s profits. There’s no obligation for the state to bail out a corporation that can’t pay its bond holders.

The current version of the gasline tax break being considered by state lawmakers would limit AGDC’s borrowing power.

Legislators would have to meet within 90 days — possibly in special session — to approve any bonds. 

The Alaska Department of Revenue would be required to analyze the investment and make a recommendation to legislators.

Another funding possibility is that the state could offer things instead of money in order to pay for its share of the project.

Earlier this year, the state of Alaska changed its regulations, allowing the state to give away gravel to public-backed construction projects.

“What we’re hoping to do is to utilize state materials, state assets, to be able to provide to the project in lieu of cash,” Richards told the House Finance Committee on May 27. “The gravel that will be used for access road and pipe bedding and pipe backfill and pipe storage yards and camp facilities represents about 20 million cubic yards of material, so that has a value of roughly $60 million and if we are able to then utilize that value and gain equity, then that would be a non-cash option that we would like to exercise for the state.”

In an interview on Tuesday, Richards said the state could also offer the land that the pipeline will use. Instead of paying something like $9 million per year in rent to the Department of Natural Resources, the state could simply deed the land to the pipeline operator and receive a share of the pipeline subsidiary in return.

Lawmakers could also appropriate money directly from the state treasury to AGDC in order to fund the project. 

Rep. Andy Josephson, D-Anchorage, said on May 21 that in order to come up with the money for the 25% investment, the state’s independent financial adviser recommended overdrawing the earnings reserve of the Alaska Permanent Fund. 

“I know that’s sacrilege to talk about, and it’ll be left for the next Legislature … but $4 billion is something this state could probably borrow or find, I guess,” he said.

“This is such a significant decision for what I call the re-electeds,” said Josephson, who is retiring and not running for re-election. “If they don’t do it, they could be chastised for decades and remembered for not doing it, but if the project has significant cost overruns, they could be chastised for that.”

“I would agree, it’s a very significant decision,” Stickel said.

Speaking June 19 on the floor of the state Senate, Sen. Jesse Kiehl, D-Juneau, said he is terrified of what might happen if the state invests and there is a cost overrun that requires more money to complete the project.

“Does it go bankrupt, and we just leave it? Nobody in this room is that naive. There’s one deep pocket around this project. There’s one entity that’s had a 50 year dream of building the pipe. There’s one place you can go for billions and billions of dollars,” he said.

Left unsaid was the name of the Alaska Permanent Fund.

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Alaska News

Alaska governor’s race survey: AI policy and news sources

One way to gauge the astonishing growth in the artificial intelligence since Alaska’s last gubernatorial election, in 2022, is simply to look at the market value of the Nvidia, the leading AI chip maker.

Since 2022, that number has grown more than 10-fold, from some $350 billion to some $5 trillion today.

AI, it’s safe to say, wasn’t a major issue for gubernatorial candidates in 2022. But now it’s front burner, given the industry’s increasing significance to the economy and in many Alaskans’ everyday lives.

In this edition of the survey, we asked candidates to share how they would use AI in their administration, and about what safeguards they’d put in place.

We also asked them about their go-to news sources.

Republicans Bernadette Wilson, Treg Taylor and Adam Crum and independent Meda DeWitt did not respond to this edition’s questions; we sent them multiple requests. One other listed candidate whom we couldn’t reach was independent Destry Payne, whose publicly listed email address did not work.

Previous surveys include: climate change, schools funding, Alaska’s LNG project, the s-corp tax loophole, the PFD and ferries, health care costs and oil production taxes.


Question 1

Artificial intelligence has grown into one of America’s biggest industries — with many touting its benefits and others warning of risks and cautioning that its potential is overblown.

If elected, how would you use AI in your administration, and what AI safeguards or protections would you put in place?

Question 2

What are your two favorite in-state news sources, and what are your two favorite national news sources? Why?


Tom Begich, Democrat, former state senator

  1. Artificial intelligence is already in state government, and Alaska needs a governor who gets ahead of it, not one reacting to it.

I will use AI to make government work better for Alaskans. What AI will not do in my administration is replace state employees. Permit queues back up for years due to staffing shortages. Benefits processors get buried in repetitive data entry when they could be solving real problems. That is where AI belongs: handling tedious work so employees can use their judgment, not replacing those workers. And a human must stay in the loop on any decision that affects Alaskans’ lives.

Within my first 90 days, every state agency will develop an AI strategy that identifies where automation reduces administrative burden, includes coordination with affected unions, addresses cybersecurity and data privacy, and sets clear human oversight standards. No agency deploys AI without that plan, and without workers having a real voice in how those tools are designed.

I will also push for guardrails modeled on states already leading. Colorado requires employers to audit AI hiring tools for bias. Illinois requires notice when AI assists employment decisions. Alaska should not be last to act.

  1. In-state, my family reads and subscribes to the Anchorage Daily News for its statewide reach and consistent political and issue coverage — and yes, it features articles from the Alaska Beacon and Northern Journal and other independent outlets too, but I’m not trying to curry favor, since you’re the one asking. I also look at local news whenever possible. I am also a fan of the growing network of online Alaska media outlets – from the Mat-Su and Kenai to Southeast Alaska.

Nationally, I actually look at BBC America as it covers most national news pretty comprehensively and from a decidedly neutral place.

In a state this spread out, with this many competing interests, I want sources that take the time to get the full story right, not just the fastest one.


Michael Gilbert, Republican

  1. I WILL NOT use any AI in my administration. Everyday Alaskans can do so at their own benefit and leisure, and I and my running mate encourage you to use your freedom to do so. That being so, however, we believe it to be a possible security risk for sensitive government data at this present time. We would encourage the use of AI as applicable while keeping the use of AI within reason.
  2. In-state 1: Anchorage Daily News. Always has been a favorite for our team as lifelong Alaskans.
    In-state 2: Channel 2 news, it’s the main TV source in Anchorage.
    National 1: One America News, great source for conservative news.
    National 2: Twitter/X, great way to keep up on news.

Matt Heilala, Republican, podiatrist

  1. If elected Governor, I would integrate AI into state government to deliver faster, smarter results for Alaskans through performance, not promises. AI will help streamline permitting and cut red tape that delays resource development in oil, gas, mining, timber and fisheries. It will improve budgeting, fraud detection, remote services, and productivity in healthcare, education, and the workforce. My administration will expand on current uses like legislative research to boost economic growth and government efficiency. Safeguards are evolving through federal oversight and public private partnerships (Anthropic et al), and undoubtably higher level military frameworks much like as seen in the nuclear program. After all, we are in an AI arms race much like the Manhattan Project of the 1940’s. We will emphasize workforce training and practical management rather than heavy regulations that could slow innovation. As I have said, AI is here to stay and will hit like a supersonic tsunami. Leaning in responsibly will position Alaska for greater prosperity; we cannot afford to be left behind.
  2. My two favorite in-state news sources are KTUU and the Anchorage Daily News. They keep me connected to the pulse of “popular culture” and the key issues facing Alaskans across the state. Nationally, I value the Wall Street Journal as a balanced source of information and Fox Business Channel for its right-leaning but business-focused coverage of economic and policy matters (with humor) important to Alaska’s resource economy. These outlets give me a practical mix of local relevance and national perspective grounded in facts and real-world outcomes.

Bill Walker, independent, former governor

1. Manufactured ideas cannot substitute genuine, dynamic thought or input from Alaskans. The ability to receive and incorporate unfiltered, real-time information is critical for leadership. I will not use AI to make decisions or create policy, but I am open to its responsible use to assist in communicating and modeling data where appropriate.

I believe in using the state’s resources responsibly and efficiently. AI is a tool that can support efficiency but Alaskans must be able to rely on info coming from the governor’s office and trust that it’s verified. For this reason, any use of AI must be vigorously vetted. Given the widening use of this emerging technology, the governor’s cabinet should follow an AI code of responsibility, if one is not currently in place. To develop this internal policy, I will ask commissioners to work with departments to identify areas where AI could create efficiency and where it should be prohibited. Of course, we will work within the bounds of the union agreement and involve the applicable union representative in the discussions. The AI code of responsibility will set out permissible uses of AI and best practices, and provide specific procedures that must be followed to verify AI-generated content.

  1. Alaska has a number of high-quality news outlets. The more voices reporting on what is happening in Juneau and across the state, the greater awareness Alaskans have about decisions being made today. Growing up, news radio was my only access to the world beyond small town Alaska. For this reason I have always appreciated NPR and the number of affiliated local stations in the state. I know firsthand the lifeline these broadcasts provide to isolated communities, connecting them with the rest of the state. For example, Alaskans have live access to the Legislature because of KTOO. I support any news outlet willing to take on this work and objectively and accurately report on critical issues. This truly is a public service that I will continue to support in my next administration.

Jonathan Kreiss-Tomkins, Democrat, former state representative

  1. I used to work on technology policy, which is when I first became familiar with AI. AI is a powerful tool. It has the potential to make our government much more efficient. It’s also no substitute for human judgment. I harbor deep concerns about its potential effects on our economy and society.

Put to good use, AI could help cut the bureaucratic backlogs (permitting, Medicaid and food stamps eligibility, etc.). It can help our public employees do their jobs easier and faster. But at the end of the day, it has to be people — not algorithms — making the decisions that shape our lives.

I worry the AI industry has downplayed the risks posed to the public. The federal government has been totally flat-footed. I support the efforts of several states that have stepped up and regulated the industry in the absence of federal leadership.

Ultimately, Alaskans’ personal information belongs to Alaskans alone — it should be guarded carefully and not fed into third-party systems without consent. Concerns across Alaska about data centers must be respected: Our power and water are not a giveaway. No Alaskan should watch their electric bill climb to subsidize a server farm. Local communities get a say, and Alaskans’ interest should always come first.

  1. I love the The Sitka Sentinel.

It’s been owned by the Poulson family since 1969. Sandy, 86, and Thad, 90, the sprightly husband-and-wife owners, still work in the office every day (!). Waiting for the paper to arrive every evening — and for stretches of time, helping deliver it — was one of my favorite parts of childhood.

Contained within: sports, Dear Abby, the comics, and (once I got older) “hard news” on the assembly and school board. While The Sentinel continues on, the demise of other papers like it gives me great concern.

Nationally, I love ProPublica and its muckraking, longform journalism (including its Alaska collabs). I admire ProPublica’s unabashed ambition to break big stories and hold people accountable. It’s a critical function for a free society.


Shelley Hughes, Republican, former state senator

  1. A leader anticipates, prepares, and acts in the best interest of those they serve. This is why I authored the first AI legislation in Alaska a few years ago, recognizing early we must harness AI for good and safeguard against harm. The bill zeroed in on responsible state use to allow for streamlined workflow, transparency, human oversight/accountability, decision appeal procedures and regular review to prevent bias, errors, or misuse. AI should work for us, not against us, to improve how agencies serve Alaskans.

I would use AI to modernize operations, automate routine tasks, and deliver faster, more accurate services, freeing employees to focus on direct services to Alaskans. While AI won’t replace humans, it will change their activities from low to high value, so Alaskans will get a better bang for their buck, better response times, and better service.

We’ll implement clear governance policies to ensure data privacy protections, strict limits on how systems access/store data, defined use cases where risks and benefits are understood, and validated AI outputs.

The Hughes administration will approach AI with understanding, balancing innovation with safeguards to improve services for Alaskans while protecting the public trust.

  1. Depending on focus, the two sources would change. If I want not only basic facts about happenings in Juneau, but also possible motivating factors, how individuals are or aren’t working in concert, I’ll check Alaska Landmine and Alaska Story (with full knowledge that opinion/bias are interwoven in reports). If I want facts and details about Juneau (bills, hearings, etc.), I’d check Must Read Alaska. If I want a high overview of statewide issues and happenings, I’d check the Alaska Beacon or Alaska Public Media (left-of-center perspectives) and Alaska Watchman (right-of-center perspective). For local news, I’d check local paper (ADN, Fairbanks Daily News-Miner, etc.). National: Wall Street Journal and National Review. (Also Reuters and The Hill.)

Matt Claman, Democrat, state senator

  1. Artificial intelligence is a powerful tool with real benefits for society. Examples include adaptive learning systems that personalize education, improved healthcare through enhanced imaging and tailored treatment plans, energy optimization and sustainability via better monitoring and efficiency, and expanded accessibility through assistive technologies for people with disabilities. As governor, I will support using AI to improve the daily lives of Alaskans.

But AI also poses serious risks when used carelessly or without oversight. Strong guardrails are essential to prevent privacy violations from improper data handling, cybersecurity vulnerabilities that could expose government systems, bias and discrimination embedded in training data that could lead to unfair outcomes, and the spread of misinformation that erodes trust and manipulates public opinion.

Understanding these risks and establishing effective regulatory and statutory safeguards is critical to responsible AI governance, protecting communities, and ensuring AI strengthens — rather than destabilizes — society.

  1. In-state: Alaska Public Radio (both on-air and written) and Anchorage Daily News.

National: Wall Street Journal and New York Times.

Good research and reliable reporting.


Click Bishop, Republican, former state senator

  1. Artificial intelligence is already part of everyday life. Alaskans use it in business, health care, education, and across our economy. Government shouldn’t ignore it — but we also shouldn’t assume technology can replace human judgment.

In my administration, AI would be used as a tool to help government work better, not bigger. That means reducing paperwork, improving customer service, helping state employees process information more efficiently, and identifying ways to deliver services at lower cost.

But there are clear lines. AI should support decisions, not make them. Decisions affecting permits, benefits, public safety, hiring, or Alaskans’ rights must remain in human hands and be accountable.

We also need safeguards: protecting personal data, maintaining strong cybersecurity standards, requiring transparency about how AI is used, and ensuring employees verify information rather than relying on AI outputs alone.

Alaska should embrace innovation while keeping people and public trust at the center of government.

  1. KRFF is my No. 1 choice because it sounds like home. That station covers my old Senate district: I know the broadcasters, you get the ice reports, good music, and you hear Alaska Native languages on air. It is hard to choose just two! Fairbanks Daily News-Miner because it is my hometown paper. Though it is hard to choose because I try to read everything from all over the state. Nationally, I watch CBS, PBS NewsHour, and BBC America – that way, I see three different spins on the same story.

Dave Bronson, Republican, former mayor of Anchorage

  1. Artificial intelligence is a powerful tool for growth and efficiency, but it must be used wisely.

If elected, we will deploy AI to cut government waste, streamline permitting, improve rural public safety and emergency response, and boost resource development. We’ll also prepare Alaska’s workforce for AI-related opportunities.

Safeguards will include:

• No AI replacing human judgment on critical decisions.

• Strong data privacy protections.

• Rigorous cybersecurity standards.

• Full transparency and accountability.

We will use AI to make government smaller and more effective. Never bigger or more intrusive, while protecting liberty and fostering responsible innovation.

Alaska can lead through practical, results-focused application of this technology.

  1. KTUU, Alaska Watchman and The Alaska Story (can’t just pick 2!). Breitbart and Fox News

    I prefer clear, factual and accurate reporting.


Lesil McGuire, Republican, former state senator

  1. AI can help Alaska deliver better services: faster permitting, more accurate budget forecasting, predictive maintenance for state infrastructure, and improved access for rural communities. My administration would adopt three safeguards. First, every public-facing AI output must be reviewed and signed off by a qualified state employee before release. Alaska has already seen what happens when AI work goes out the door unchecked.

Second, any algorithmic decision affecting Alaskans (permits, benefits, eligibility, hiring) must have an explainable, human-appealable path.

Third, Alaska data, especially voter records and Native shareholder data, must stay protected with clear chain-of-custody rules.

I support the work of the Joint Legislative Task Force on Artificial Intelligence and would build on its recommendations. Economically, Alaska’s energy resources and cool climate could make us a serious data-center destination, but only paired with new generation capacity that protects residential ratepayers and rural communities first. My satellite communications background and authorship of Alaska’s Renewable Energy Grant Fund give me the technical fluency and the regulatory experience to do this right.

  1. In-state, I read Alaska Public Media and Anchorage Daily News combined with other statewide news sources in my news feed. ADN remains the state’s paper of record with the deepest coverage of state policy, the Legislature, and rural Alaska. Alaska Public Media’s reporting and Talk of Alaska give me direct community voices that don’t fit into newspaper inches. Nationally, I rely on The Wall Street Journal for business and policy analysis and Reuters for straight news. I want information from outlets that distinguish reporting from opinion, show their work, and report inconvenient facts. Local journalism in Alaska is essential to democracy and good governance, and I want to be a governor who supports it.

Edna DeVries, Republican, Mat-Su borough mayor

  1. Clear Rules on Transparency.

Residents should know when they are interacting with an AI system. Agencies should publish what AI tools they use and why. Any automated decision must be explainable.

Human oversight.

AI should assist, not replace, human judgment.

Require vendors to disclose training data sources.

Ban “black box” systems that cannot be audited.

Mandate cybersecurity and reliability benchmarks decisions (benefits, enforcement, licensing) must always have a human reviewer.

Public input.

Public comment periods before major AI deployments.

Advisory boards including tribal governments, rural communities, and technical experts.

And of course, I used AI to answer this question.

  1. I won’t say they are my favorites but I read political social media posts in state.

Out of state, very little — headlines from Fox.

If you value public interest journalism like this, please consider a voluntary paid membership to Northern Journal and the Anchorage Press.

The post Alaska governor’s race survey: AI policy and news sources appeared first on Chilkat Valley News.

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Alaska News

Service gaps in proposed winter state ferry schedule

Southeast would go a week without mainline ferry service at the end of November as the Alaska Marine Highway System transitions between ships for its winter schedule.

But seven days without the weekly northbound and southbound return voyage between Bellingham, Washington, and Southeast is painless when compared to much longer service gaps in Prince William Sound and Southwest Alaska under the draft fall and winter schedule.

Cordova and Valdez would be left without any ferry service for five months Oct. 1 through March 5 while the Aurora is in the shop for its annual winter maintenance — a much longer time than usual.

“Due to the recent discovery of extensive wasted steel during maintenance, the Aurora will undergo an extended overhaul period,” the Department of Transportation said in a press release on July 8.

Kodiak, Homer and other towns on the Gulf of Alaska would go without service for almost four months — Jan. 15 through May 1 — as the Tustumena heads into the shipyard for winter work.

The state ferry system has always used the winter months, when ridership is lower, to pull ships out of service for annual maintenance, but a lack of crew and fewer ships in operating condition have led to longer gaps in fall, winter and spring service.

The ferries have been plagued by crew shortages for several years, and hiring efforts have come up short.

The Marine Highway System released its draft fall and winter schedule for public comment last week. The schedule covers sailings from Oct. 1 to April 30. Comments can be submitted by 5 p.m. Wednesday, July 22, to dot.amhs.comments@alaska.gov or faxed to 907-228-6873. 

Under the draft schedule, the Bellingham-to-Southeast run would stop in Wrangell northbound every Sunday, with a return southbound stop every Wednesday — that’s been the schedule for years.

There would be a week of no service when the Columbia heads to the shipyard at the end of November. It would take a week for the Kennicott to be staffed and readied to pick up the mainline route, according to a spokesman for the Marine Highway System.

The Kennicott is scheduled for its own winter maintenance Oct. 1 through Dec. 1, and any delay in getting the ship back to work would require keeping the Columbia on the job longer or going without service to Southeast.

Overall ferry system ridership is down more than half since its peak in the early 1990s, with even steeper drops in some communities.

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Dunleavy sets state record for most vetoes in a single Legislature

Amid a series of disagreements with lawmakers in the state House and Senate, Alaska Gov. Mike Dunleavy has set a record for the most vetoes by an Alaska governor during a single two-year Legislature.

Through Friday morning, Dunleavy had vetoed 29 of the 115 bills passed by the 34th Alaska Legislature.

The previous record, 25 vetoes, was held by Gov. Tony Knowles in the 19th Alaska State Legislature, which ran from 1995 through 1996. 

Dunleavy’s record is particularly notable because the number of bills passed by the Legislature has dropped precipitously in recent years. 

During the 19th Legislature, Knowles’ vetoes accounted for 8.9% of all bills passed by lawmakers. Dunleavy’s vetoes cover more than 25% — one in four — of all bills passed by the 34th Legislature. 

Dunleavy is a Republican. During his first six years in office — the 31st, 32nd and 33rd Legislatures — either the state House or Senate was controlled by a solidly Republican majority. During the 34th, both the House and the Senate have been controlled by coalition majorities where Democrats and independents hold some leadership roles.

The Beacon asked the governor’s office why the governor has vetoed so many bills during the 34th Legislature and whether there is a fundamental disagreement between the Legislature and governor.

“The fact that Governor Dunleavy has vetoed a few more bills in a legislative session than previous governors does not necessarily indicate a fundamental disagreement between the executive and legislative branches,” said Jeff Turner, the governor’s communications director, by email. “Governor Dunleavy has always evaluated legislation on a bill-by-bill basis.”

Senate President Gary Stevens, R-Kodiak, and Speaker of the House Bryce Edgmon, I-Dillingham, declined to speak at length about the vetoes issue because legislators are currently negotiating with the governor on perhaps the biggest bill of the 34th Legislature: A multibillion-dollar property tax break benefiting the developer of the proposed trans-Alaska natural gas pipeline.

Legislators may vote next week on whether to send a revised version of the tax break to the governor for approval. 

Dunleavy has said he opposes the current version being discussed by a legislative conference committee. Asked this week whether he would veto the bill, he told Alaska’s News Source that it would be “tough” for him to accept it in its current form.

Eight other bills are awaiting the governor’s consideration. Those include House Bill 14, a comprehensive insurance bill; and House Bill 249, which changes the procedure for turning a car over to an insurance company after a wreck.

The governor has until Monday to act on HB 14 and until July 20 to act on HB 249.

The Legislature has not yet sent six other bills to the governor for action. Under the Alaska Constitution, that means the clock for final action has not begun.

While Dunleavy has the record for the most vetoes in a two-year Legislature, he does not hold the career record. 

Gov. Jay Hammond, who served as governor from 1974 through 1982, issued 74 vetoes, the most of any governor during their career. Knowles vetoed 69 bills during his eight years in office. Gov. Bill Egan, who served 12 years in office, vetoed 56 bills. Dunleavy, who will leave office in December, has thus far vetoed 44. 

Those figures do not include line-item vetoes in budget bills.

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Alaskans with certain low-level marijuana convictions can keep record private under new law

Alaskans who have been convicted for low-level marijuana possession will be able to apply to keep their records confidential so they do not appear in background checks, under a new law that takes effect in 2027. 

The change is part of a wide-ranging omnibus crime package that was approved by the Alaska Legislature and allowed to pass into law without Gov. Mike Dunleavy’s signature in June. 

Alaskans are eligible if they have been convicted of possessing less than an ounce of marijuana, were 21 years or older at the time of the arrest, and were not convicted of any other criminal charges in the case. 

Individuals must make a request to the Alaska Department of Public Safety that those records be kept confidential on background checks.

Marijuana is legal in Alaska after voters approved its cultivation, sale and recreational use in 2014. Alaskans are permitted to possess up to one ounce of marijuana for personal use in public, and up to four ounces in a private residence. Larger amounts, intent to distribute or large unlicensed cultivation carry a variety of criminal penalties, fines and possible jail time.

While personal use is currently legal, the bill’s sponsor, Rep. David Nelson, R-Anchorage, said those criminal records can still carry stigma and create barriers to opportunities. 

“Hardworking Alaskans are still facing barriers to employment, housing, licensing, and volunteer opportunities, leaving them less able to contribute fully to their community,” Nelson told lawmakers at a February hearing. He noted that under the bill Alaskans can keep those records confidential while still allowing government agencies access for background and statistical information.

In 2023, the Alaska Supreme Court ordered low level marijuana convictions to be removed from the public CourtView system, while still being available in courthouse searches and criminal background checks. The move was similarly prompted to help people avoid negative consequences from convictions that took place before marijuana was legalized in Alaska.

Officials with the Department of Public Safety said in a fiscal note the number of requests to keep low level marijuana conviction records confidential “is anticipated to be high.” They said change will require creating a new criminal justice technician position to search thousands of criminal conviction records and restrict their release. They estimated the cost to implement the bill at over $144,000 in the first year, and over $126,000 in the second year of implementation. 

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After gasline tax bill, pipeline developers plan to ask Alaskans for a few billion dollars

A few months from now, if developers of the proposed trans-Alaska natural gas pipeline move forward with the project, they will ask Alaskans for something between a few hundred million and a billion and a half dollars.

The request is optional, but if the state doesn’t chip in, Alaska’s 25% ownership of the pipeline will dwindle to a smaller fraction, and any profits will similarly shrink.

Two other requests for cash could come as soon as next year, to first fund a gas treatment plant on the North Slope and then a natural gas export facility on the Kenai Peninsula.

As state lawmakers debate a multibillion-dollar tax break for the pipeline project this week, a confidential memo and legislative testimony show the break won’t be the last financial request from Alaskans.

Keeping the state’s 25% ownership of the Alaska LNG project will cost at least $4 billion, according to estimates from the Alaska Department of Revenue. 

If the state spends that money, and if the project is built and sells gas as planned, the department estimates the state will earn more than $21 billion through 2062, almost five times its initial investment. 

But there’s a risk: if the pipeline project costs more than expected, the state of Alaska will be asked to pay more.

“We have reserved the option for the state of Alaska to elect to invest or not,” Frank Richards, president of the Alaska Gasline Development Corp., told the Senate Finance Committee on June 4. “The project will proceed forward without the state investment, but we wanted to give the state that opportunity should it elect to, eyes wide open.”

A potential investment for the state

Last year, the Gasline Development Corporation, a state-owned company charged with building the gas pipeline project, sold the lead role in the project to Glenfarne, a private multinational developer.

According to a confidential memo analyzing the deal, Glenfarne agreed to pay $10 million and fund the project’s development until the “Final Investment Decision,” the point at which investors start to put down money and contracts go out for construction.

Glenfarne has 75% ownership of 8 Star Alaska, the parent company of the pipeline project. The state — through AGDC — has 25% ownership. AGDC’s ownership share stays the same regardless of how many new investors come into the project.

But ownership of 8 Star Alaska may not mean much.

The Alaska LNG project includes three separate “subprojects” — a gas treatment plant on the North Slope, the pipeline itself and an export terminal on the Kenai Peninsula.

Each of those subprojects is its own subsidiary company, and not all of the subproject profits will go back to 8 Star Alaska.

“The real value is down in the three subsidiaries of 8 Star,” said Sen. Cathy Giessel, R-Anchorage, in a July 2 podcast interview. 

Right now, each subsidiary is subject to the same 75-25 ownership split as 8 Star, but that changes at FID, when other investors put in their money.

At that point, said Matt Kissinger, AGDC’s commercial director, there will be enough money to build each subproject, but the state will have the opportunity to push out other investors and preserve its 25% ownership. 

“​​All the investors will be in; they’ll all be committed, and then we’ll have 180 days for the state to decide to back them out of some of their commitment,” he said.

According to a draft analysis of last year’s Glenfarne-AGDC deal, AGDC has “the right to invest in up to 25%, but not less than 5%, of each sub-project at FID.”

The 5% minimum — if AGDC takes any share at all — was negotiated with Glenfarne, Kissinger said, because if the state is going to push out another investor, it needs to do so for a meaningful amount.

Part or all of the 25% buy-in could be taken by AGDC. The state could buy in directly, or another state-owned corporation like the Alaska Industrial Development and Export Authority, Alaska Railroad or the Alaska Permanent Fund Corp. could do so.

If the state and public corporations don’t reach the 25% maximum, then Alaska residents, Alaska Native corporations and other in-state companies would have a chance to take some or all of the remainder. 

On June 25, the AGDC board voted unanimously to approve the creation of a subsidiary that will allow individual Alaskans to invest in the project through AGDC.

“No more funds are required by the State of Alaska to invest for this project to proceed forward, it’s just that we have the option to, and if Alaskans want the opportunity to invest, that’s the structure that we’re going to set up for them,” Richards told the board.

AGDC and Glenfarne expect the pipeline subproject to reach FID this year. The gas treatment plant and the export facility FIDs are expected no sooner than 2027.

Department of Revenue estimates a $4.4 billion cost

Keeping the state’s share of the project at 25% is likely to be expensive. Glenfarne estimated last month that building the pipeline alone will cost as much as $16.9 billion. 

In an example scenario AGDC presented to legislators last month, the company suggested developers could take out loans for 70% of that cost. 

The Alaska Department of Revenue is independently using that percentage for its baseline predictions, too.

The developers could cover the remaining 30% by selling part of the pipeline subsidiary. 

If the state wants to keep 25% ownership of the whole project, that would mean buying 25% of that 30%.

Using some assumptions, “that would result in $4.4 billion in nominal terms that would be required to invest in the project,” said Dan Stickel, the Department of Revenue’s chief economist, on May 21.

The profits could be huge, the department estimates. A 25% equity share could be worth $21.3 billion through 2063. 

That’s on top of the tens of billions of dollars in production taxes, property taxes, royalties and fees that the state would receive regardless of whether or not it takes an additional ownership share.

What happens if Alaska doesn’t buy in? 

“That (25% ownership) will definitely be diluted. That’s the mechanism that was designed,” Kissinger told state lawmakers. 

AGDC’s scenario, presented to legislators on June 4, suggested 8 Star Alaska would keep 35% of the pipeline subsidiary. AGDC would have a quarter of that 35%, or 8.75% of any profits after debts are paid.

If 8 Star Alaska keeps less than that 35%, then the state’s quarter would shrink correspondingly.

While investing in the project increases the potential profits, there’s also a risk, said Sen. Bert Stedman, R-Sitka, on June 16. If the project costs more than expected, the state and other investors would have to pay more money to keep their share of the project.

“If the state wishes to take that risk, and if the state wishes to be a paying member of the project … you would be paying 25% of any of the investment dollars coming in to maintain that,” Kissinger said on June 3.

Where would Alaska get the money?

Current state law allows AGDC to borrow money without legislative approval. 

“Right now, under the current statutes, AGDC has extremely broad bonding authority. We can raise revenue bonds — provided there is no recourse back to the state — without any further approvals,” Kissinger said on June 26.

What’s a revenue bond?

The Alaska Constitution severely limits the kinds of government borrowing that the state is responsible for and must repay through taxes. Corporations like AGDC can instead issue revenue bonds, which are repaid by the corporation’s profits. There’s no obligation for the state to bail out a corporation that can’t pay its bond holders.

The current version of the gasline tax break being considered by state lawmakers would limit AGDC’s borrowing power.

Legislators would have to meet within 90 days — possibly in special session — to approve any bonds. 

The Alaska Department of Revenue would be required to analyze the investment and make a recommendation to legislators.

Another funding possibility is that the state could offer things instead of money in order to pay for its share of the project.

Earlier this year, the state of Alaska changed its regulations, allowing the state to give away gravel to public-backed construction projects.

“What we’re hoping to do is to utilize state materials, state assets, to be able to provide to the project in lieu of cash,” Richards told the House Finance Committee on May 27. “The gravel that will be used for access road and pipe bedding and pipe backfill and pipe storage yards and camp facilities represents about 20 million cubic yards of material, so that has a value of roughly $60 million and if we are able to then utilize that value and gain equity, then that would be a non-cash option that we would like to exercise for the state.”

In an interview on Tuesday, Richards said the state could also offer the land that the pipeline will use. Instead of paying something like $9 million per year in rent to the Department of Natural Resources, the state could simply deed the land to the pipeline operator and receive a share of the pipeline subsidiary in return.

Lawmakers could also appropriate money directly from the state treasury to AGDC in order to fund the project. 

Rep. Andy Josephson, D-Anchorage, said on May 21 that in order to come up with the money for the 25% investment, the state’s independent financial adviser recommended overdrawing the earnings reserve of the Alaska Permanent Fund. 

“I know that’s sacrilege to talk about, and it’ll be left for the next Legislature … but $4 billion is something this state could probably borrow or find, I guess,” he said.

“This is such a significant decision for what I call the re-electeds,” said Josephson, who is retiring and not running for re-election. “If they don’t do it, they could be chastised for decades and remembered for not doing it, but if the project has significant cost overruns, they could be chastised for that.”

“I would agree, it’s a very significant decision,” Stickel said.

Speaking June 19 on the floor of the state Senate, Sen. Jesse Kiehl, D-Juneau, said he is terrified of what might happen if the state invests and there is a cost overrun that requires more money to complete the project.

“Does it go bankrupt, and we just leave it? Nobody in this room is that naive. There’s one deep pocket around this project. There’s one entity that’s had a 50 year dream of building the pipe. There’s one place you can go for billions and billions of dollars,” he said.

Left unsaid was the name of the Alaska Permanent Fund.

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New 3D security scanners at Juneau’s airport lets travelers leave laptops in carry-on luggage

Laptops and tiny shampoo bottles can now remain in carry-on bags at the airport security checkpoint. But bringing a bottle of water through is still out.

The two screening lanes at Juneau International Airport now have computed tomography (CT) X-ray machines that provide security officers with a manipulable 3D image scan of belongings passengers load onto the plastic totes that are pushed through.

More than 1,150 CT scanners have been installed at nearly 300 U.S. airports as of this month, including Ted Stevens Anchorage International Airport, according to the Transportation Security Administration. Eric Guthier, a TSA spokesperson, said during a visit to Juneau on Monday the machines at JIA were installed in April.

Guthier said the X-ray device in the CT scanners is similar to equipment used in hospitals.

“The camera spins very, very fast, takes lots of pictures, and then when the officer is reviewing the bag for prohibited items they can actually rotate the image to see what’s underneath something,” he said. “So with the older-style machines if somebody looks and says, ‘Hey, I think there might be something there, but I can’t quite tell. We’re going to have to open the bag and look.’ With this, you can rotate the image and look.”

One of two computed tomography X-ray machines in the security screening area at Juneau International Airport on Monday, July 13, 2026. (Mark Sabbatini / Juneau Independent)
One of two computed tomography X-ray machines in the security screening area at Juneau International Airport on Monday, July 13, 2026. (Mark Sabbatini / Juneau Independent)

That means people can typically leave items such as laptops computers and travel-size containers with liquids in their carry-on baggage, rather than taking them out and placing them into separate bins that pass through the machine, Guthier said. The bins themselves are also new and intended to be large enough for people to put all of their belongings into it, simplying the identifiction process for screeners and the recollection of items for travelers.

A TSA press release issued Monday about the new machines at Juneau’s airport notes they “have a slightly smaller entry tunnel, and not all larger carry-on bags will fit into the units. TSA recommends that large carry-on items be checked with the airline.”

“TSA officials also encourage travelers to get to the airport early and save time by placing items from pockets such as keys, cell phones, loose change, etc. into their carry-on bags instead of into bins to help ensure there are no items left behind in bins,” the release notes. “Doing so also helps to speed the screening process.”

Amanda O’Dell, a transportation security officer at the airport for the past two years, said Monday the scanned 3D images she sees are the biggest difference she’s noticed with the new machines.

“You actually see everything in more detail versus you’re just looking at blobs that have to get pulled to get checked,” she said.

O’Dell said there’s no clear difference in the speed at which a crowd of travelers make it through screening, since reviewing the 3D images can take longer than the previous machines. But people are definitely noticing the lack of need to remove items from bags.

“They love that,” she said.

This story was originally published by the Juneau Independent.

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City discusses options for City Hall disposal, Burns Building renovation won’t finish this year

NOTN- City manager Katie Koester told the Assembly of the Whole Monday evening, that the Burns Building renovation, or the new City Hall is delayed and will not allow offices to move out of temporary space by year‑end as planned.

“We are not going to be able to move out of the Marine View building or this building by the end of the calendar year as we had originally hoped, so we have entered into an additional six-month lease with Marine View. We anticipate the project to be complete by May.” Koester said.

Bids are still being received; alternates in the bid package total about $1.3 million for items such as flooring, ceiling work and mechanical controls. The city has signed a six‑month lease extension for its space at Marine View, and Koester warned that lease costs and schedule slippage could draw on project contingency.

Koester said they may request additional funding or transfer from the lands fund if needed and will update the Assembly when bid results are finalized and a construction award is required.

The Assembly also moved forward with two parallel paths to dispose of the current City Hall at 155 Heritage Way after extended discussion.

Members voted to advance an ordinance for a sealed competitive bid sale with a $2.5 million minimum and also directed staff to prepare a negotiated‑sale ordinance for consideration with the Sealaska Heritage Institute’s $1.5 million proposal.

Members cited community and year‑round benefits from a cultural use, but others pushed to test market interest through bids.

“Not everything can be quantified, so I weigh the value of having a known entity being in this space.” Said Assembly member Maureen Hall, “I see the quandary. Do we open it up for a bid and go with the highest bidder, or see what it is and then scale back to an entity that’s going to provide year-round benefit and additional benefit to the community as far as sharing of resources.”

The twin approach schedules both options for the same public‑hearing timeline so the Assembly can weigh competitive offers against a negotiated community proposal.

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Alaska News

After gasline tax bill, pipeline corporation plans to ask Alaskans for a few billion dollars

A bumper sticker on a car parked in Midtown Anchorage on June 29, 2026, expresses support for the Glenfarne-Alaska Gasline Development Corp. plan for natural gas pipeline tax concessions. (Photo by Yereth Rosen/Alaska Beacon)

A few months from now, if developers of the proposed trans-Alaska natural gas pipeline move forward with the project, they will ask Alaskans for something between a few hundred million and a billion and a half dollars.

The request is optional, but if the state doesn’t chip in, Alaska’s 25% ownership of the pipeline will dwindle to a smaller fraction, and any profits will similarly shrink.

Two other requests for cash could come as soon as next year, to first fund a gas treatment plant on the North Slope and then a natural gas export facility on the Kenai Peninsula.

As state lawmakers debate a multibillion-dollar tax break for the pipeline project this week, a confidential memo and legislative testimony show the break won’t be the last financial request from Alaskans.

Confidential document guided Alaska senators working on natural gas pipeline tax break

Keeping the state’s 25% ownership of the Alaska LNG project will cost at least $4 billion, according to estimates from the Alaska Department of Revenue. 

If the state spends that money, and if the project is built and sells gas as planned, the department estimates the state will earn more than $21 billion through 2062, almost five times its initial investment. 

But there’s a risk: if the pipeline project costs more than expected, the state of Alaska will be asked to pay more.

“We have reserved the option for the state of Alaska to elect to invest or not,” Frank Richards, president of the Alaska Gasline Development Corp., told the Senate Finance Committee on June 4. “The project will proceed forward without the state investment, but we wanted to give the state that opportunity should it elect to, eyes wide open.”

A potential investment for the state

Last year, the Gasline Development Corporation, a state-owned company charged with building the gas pipeline project, sold the lead role in the project to Glenfarne, a private multinational developer.

According to a confidential memo analyzing the deal, Glenfarne agreed to pay $10 million and fund the project’s development until the “Final Investment Decision,” the point at which investors start to put down money and contracts go out for construction.

Glenfarne has 75% ownership of 8 Star Alaska, the parent company of the pipeline project. The state — through AGDC — has 25% ownership. AGDC’s ownership share stays the same regardless of how many new investors come into the project.

But ownership of 8 Star Alaska may not mean much.

The Alaska LNG project includes three separate “subprojects” — a gas treatment plant on the North Slope, the pipeline itself and an export terminal on the Kenai Peninsula.

Each of those subprojects is its own subsidiary company, and not all of the subproject profits will go back to 8 Star Alaska.

“The real value is down in the three subsidiaries of 8 Star,” said Sen. Cathy Giessel, R-Anchorage, in a July 2 podcast interview. 

Right now, each subsidiary is subject to the same 75-25 ownership split as 8 Star, but that changes at FID, when other investors put in their money.

At that point, said Matt Kissinger, AGDC’s commercial director, there will be enough money to build each subproject, but the state will have the opportunity to push out other investors and preserve its 25% ownership. 

“​​All the investors will be in; they’ll all be committed, and then we’ll have 180 days for the state to decide to back them out of some of their commitment,” he said.

According to a draft analysis of last year’s Glenfarne-AGDC deal, AGDC has “the right to invest in up to 25%, but not less than 5%, of each sub-project at FID.”

The 5% minimum — if AGDC takes any share at all — was negotiated with Glenfarne, Kissinger said, because if the state is going to push out another investor, it needs to do so for a meaningful amount.

Part or all of the 25% buy-in could be taken by AGDC. The state could buy in directly, or another state-owned corporation like the Alaska Industrial Development and Export Authority, Alaska Railroad or the Alaska Permanent Fund Corp. could do so.

If the state and public corporations don’t reach the 25% maximum, then Alaska residents, Alaska Native corporations and other in-state companies would have a chance to take some or all of the remainder. 

On June 25, the AGDC board voted unanimously to approve the creation of a subsidiary that will allow individual Alaskans to invest in the project through AGDC.

“No more funds are required by the State of Alaska to invest for this project to proceed forward, it’s just that we have the option to, and if Alaskans want the opportunity to invest, that’s the structure that we’re going to set up for them,” Richards told the board.

AGDC and Glenfarne expect the pipeline subproject to reach FID this year. The gas treatment plant and the export facility FIDs are expected no sooner than 2027.

Department of Revenue estimates a $4.4 billion cost

Keeping the state’s share of the project at 25% is likely to be expensive. Glenfarne estimated last month that building the pipeline alone will cost as much as $16.9 billion. 

In an example scenario AGDC presented to legislators last month, the company suggested developers could take out loans for 70% of that cost. 

The Alaska Department of Revenue is independently using that percentage for its baseline predictions, too.

The developers could cover the remaining 30% by selling part of the pipeline subsidiary. 

If the state wants to keep 25% ownership of the whole project, that would mean buying 25% of that 30%.

Using some assumptions, “that would result in $4.4 billion in nominal terms that would be required to invest in the project,” said Dan Stickel, the Department of Revenue’s chief economist, on May 21.

The profits could be huge, the department estimates. A 25% equity share could be worth $21.3 billion through 2063. 

That’s on top of the tens of billions of dollars in production taxes, property taxes, royalties and fees that the state would receive regardless of whether or not it takes an additional ownership share.

What happens if Alaska doesn’t buy in? 

“That (25% ownership) will definitely be diluted. That’s the mechanism that was designed,” Kissinger told state lawmakers. 

AGDC’s scenario, presented to legislators on June 4, suggested 8 Star Alaska would keep 35% of the pipeline subsidiary. AGDC would have a quarter of that 35%, or 8.75% of any profits after debts are paid.

If 8 Star Alaska keeps less than that 35%, then the state’s quarter would shrink correspondingly.

While investing in the project increases the potential profits, there’s also a risk, said Sen. Bert Stedman, R-Sitka, on June 16. If the project costs more than expected, the state and other investors would have to pay more money to keep their share of the project.

“If the state wishes to take that risk, and if the state wishes to be a paying member of the project … you would be paying 25% of any of the investment dollars coming in to maintain that,” Kissinger said on June 3.

Where would Alaska get the money?

Current state law allows AGDC to borrow money without legislative approval. 

“Right now, under the current statutes, AGDC has extremely broad bonding authority. We can raise revenue bonds — provided there is no recourse back to the state — without any further approvals,” Kissinger said on June 26.

The current version of the gasline tax break being considered by state lawmakers would limit AGDC’s borrowing power.

Legislators would have to meet within 90 days — possibly in special session — to approve any bonds. 

The Alaska Department of Revenue would be required to analyze the investment and make a recommendation to legislators.

Another funding possibility is that the state could offer things instead of money in order to pay for its share of the project.

Earlier this year, the state of Alaska changed its regulations, allowing the state to give away gravel to public-backed construction projects.

“What we’re hoping to do is to utilize state materials, state assets, to be able to provide to the project in lieu of cash,” Richards told the House Finance Committee on May 27. “The gravel that will be used for access road and pipe bedding and pipe backfill and pipe storage yards and camp facilities represents about 20 million cubic yards of material, so that has a value of roughly $60 million and if we are able to then utilize that value and gain equity, then that would be a non-cash option that we would like to exercise for the state.”

In an interview on Tuesday, Richards said the state could also offer the land that the pipeline will use. Instead of paying something like $9 million per year in rent to the Department of Natural Resources, the state could simply deed the land to the pipeline operator and receive a share of the pipeline subsidiary in return.

Lawmakers could also appropriate money directly from the state treasury to AGDC in order to fund the project. 

Rep. Andy Josephson, D-Anchorage, said on May 21 that in order to come up with the money for the 25% investment, the state’s independent financial adviser recommended overdrawing the earnings reserve of the Alaska Permanent Fund. 

“I know that’s sacrilege to talk about, and it’ll be left for the next Legislature … but $4 billion is something this state could probably borrow or find, I guess,” he said.

“This is such a significant decision for what I call the re-electeds,” said Josephson, who is retiring and not running for re-election. “If they don’t do it, they could be chastised for decades and remembered for not doing it, but if the project has significant cost overruns, they could be chastised for that.”

“I would agree, it’s a very significant decision,” Stickel said.

Speaking June 19 on the floor of the state Senate, Sen. Jesse Kiehl, D-Juneau, said he is terrified of what might happen if the state invests and there is a cost overrun that requires more money to complete the project.

“Does it go bankrupt, and we just leave it? Nobody in this room is that naive. There’s one deep pocket around this project. There’s one entity that’s had a 50 year dream of building the pipe. There’s one place you can go for billions and billions of dollars,” he said.

Left unsaid was the name of the Alaska Permanent Fund.

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Editor’s note: The headline has been updated after initial publication.