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2024 Legislative Wrap-Up
2024 Legislative Wrap-Up
By Associated General Contractors of Alaska Legislative Affairs Committee and AGC Lobbyist Dianne Blumer
T

he 33rd Alaska State Legislature ended with the Senate adjourning just before the midnight deadline on May 15, while the House continued to work on bills. Despite some last-minute challenges and tension in the House, the state budget was settled, with an operating budget of approximately $6 billion in state funds and a capital budget of around $4 billion in state and federal funds.

Budget Highlights
Operating Budget:

  • $174.4 million for a one-time Base Student Allocation increase to $680/student
  • $7.3 million for pupil transportation
  • $5.2 million for K-3 reading focus
  • $30 million for full community assistance
  • $914.3 million for a Permanent Fund Dividend and energy relief payment of $1,655 per person in October
  • $4 million grant to Anchorage for homeless housing
  • $5.2 million for Head Start to match federal funds
  • $1.5 million for Senior and Disabilities grants
  • $1.5 million for Adult Day Services grants
  • $7.5 million for grants to childcare providers
  • $5 million for personal care services wages
  • $3.7 million to support Council on Domestic Violence and Sexual Assault
  • $1.3 million for hiring of highway and aviation staff
Capital Budget:

  • $68 million for deferred maintenance at UA campuses and K-12 schools
  • $30 million for professional housing and weatherization
  • $8 million for Alaska Department of Transportation & Public Facilities harbor funds
  • $7.5 million for food security measures
  • $75 million for infrastructure projects around the state.
people having a meeting around a table
people having a meeting around a table
people posing for a group photo
Among the major legislative achievements was the passing of significant energy legislation. However, a critical bill aiming to lower the state’s royalty on new natural gas development in Cook Inlet faced obstacles in the Senate Finance Committee after clearing the House the previous day. House Bill, or HB, 223 sought to decrease the royalty rate for new gas sold to regional utilities from 12.5 percent to 3 percent and, for new oil, from 12.5 percent to 6 percent. However, the bill faced challenges in the Senate Finance Committee, where it met its fate; potential implications for gas production in the region remain uncertain.

The Legislature passed HB 50, Carbon Capture, Utilization, and Sequestration, which was a top priority for Governor Mike Dunleavy. The bill primarily addresses the sequestration, or storage, of carbon in depleted gas and oil reservoirs in Cook Inlet. This initiative has drawn interest from Japan, which is exploring the possibility of compensating Alaska for this service.

The Senate Resources Committee integrated a few policies into HB 50. These include provisions for the release of Cook Inlet seismic data to facilitate developers’ access, the regulation of Cook Inlet natural gas storage prices by the Regulatory Commission of Alaska and the introduction of a funding mechanism known as reserve-based lending.

HB 307, the Integrated Transmission Systems initiative, was another priority for the governor. The primary aim of this bill is to establish a modernized and efficiently managed transmission grid for the Railbelt region stretching from Homer to Fairbanks. This endeavor seeks to eliminate “wheeling rates,” which represent the charges incurred as electricity flows through different segments of the transmission infrastructure owned by various entities, essentially creating tolls for electrons. By removing these fees, the bill aims to foster open access for independent power producers, promoting the integration of renewable energy sources such as solar, wind, geothermal, and hydroelectric power into the grid. Additionally, HB 307 proposes to increase the surcharge that the Regulatory Commission of Alaska can levy to support its regulatory services and establishes an Alaska Energy Authority, or AEA, Board.

people mingling at an event
man and two women posing for a photo
five people posing for a picture in front of book shelfs
HB 196, supported by the Associated General Contractors, or AGC, of Alaska passed this year, which would allow for employers to use less intrusive methods of drug and alcohol testing, simplifying the process while maintaining the integrity of the requirements.

At our weekly Legislative Affairs Committee meetings, we review bills that require monitoring, support, and/or opposition or neutrality. Overall, we were able to discourage movement and provide alternative solutions on several bills that could have negatively impacted on our industry.

The AGC Legislative Affairs Committee organized a well-attended and successful fly-in event to the State Capitol in February with the aim of advocating for AGC priorities by engaging with key legislators and policymakers while raising awareness about crucial industry-related matters. More than twenty AGC members traveled to Juneau to educate lawmakers on issues that are vital to the well-being of the construction industry, which is essential for its growth and sustainability.

A huge thank you to our hard-working Legislative Affairs Committee, including co-chairs Meg Nordale, Regina Davis, and lobbyist Dianne Blumer.

Photos from the 2024 Legislative Fly-In provided by AGC of Alaska.