Economy

Landslides, storm-driven floods, infrastructure-damaging permafrost thaw and intensifying wildfires are among the expensive disasters that scientists link to Alaska’s rapidly changing climate.

Now a state legislator is proposing to levy a 20-cent surcharge on every barrel of Alaska-produced oil to fund programs that respond to and prepare for disasters related to climate change.

Rep. Andy Josephson, D-Anchorage, introduced the measure, House Bill 247, in advance of the legislative session scheduled to start on Jan. 20.

To explain why the state needs such a fund, Josephson ticked off a list of recent disasters in Alaska that imposed heavy costs — and, in some cases, killed people. Those events, which include deadly landslides in Southeast Alaska, landslides that have blocked roads, severe flooding in Western Alaska last October from the remnants of Typhoon Halong and similar damage in 2022 from the remnants of Typhoon Merbok, all had some links to climate change that is caused by greenhouse gas emissions from fossil fuel burning, he said.

“It’s a true statement that a lot of the disaster dollars we need right now are related to climate change. That, in my opinion, is sort of inarguable,” he said.

Disasters like those that have occurred in recent years are expected to continue in the future, he said: “We’re in a new normal.”

The bill is logical from a fiscal standpoint, Josephson said.

As of now, the state’s disaster relief fund is “basically a sub-fund of the general fund,” and it gets whatever lawmakers are able to appropriate, he said. But if there is a new stream of money as proposed by his bill, “we would free up those dollars we’re otherwise spending in the disaster relief fund.”

At 20 cents per barrel, the proposed surcharge would raise about $30 million a year, he said.

In comparison, Gov. Mike Dunleavy in December proposed that lawmakers approve a $40 million appropriation for the state’s existing disaster relief fund. The need could increase from that total if the Trump administration fails to reimburse 100% of the costs for Typhoon Halong relief rather than the normal 75%. The Biden administration in 2022 approved 100% reimbursement for Merbok-related costs.

As introduced by Josephson, the bill would give the Alaska Department of Environmental Conservation oversight over the money generated by the surcharge. It would distribute fund money in the form of grants to local governments and other entities for purposes like disaster response, disaster preparation and upgrades that make infrastructure better protected against climate change.

The surcharge idea has precedent in Alaska. The Department of Environmental Conservation already administers another fund with money coming from a per-barrel fee on oil produced in the state.

After the 1989 Exxon Valdez oil spill, the state began levying a 5-cent-per-barrel surcharge on oil that goes into the state’s Oil and Hazardous Substance Release Prevention and Response Fund. The fund itself was created by the legislature in 1986, with the surcharge established after the disastrous Prince William Sound spill.

That surcharge and rules concerning the fund’s operations have been modified over the years, broadening the purposes for which the fund can be used and boosting DEC’s reporting requirements, according to the department.

In its current configuration, each 5-cent-per-barrel surcharge sends 1 cent into a spill response account, to be used for spills that have been officially declared disasters. The other 4 cents goes into a spill prevention account, which can be used to address spills that have not been declared disasters, among other functions.

In 2015, refined petroleum products were added to the program. The state added a small surcharge, 0.95 cents per gallon, on refined fuel projects sold, transferred or used at the wholesale level, according to the DEC.

The idea of a similar levy to raise money for climate change preparedness and response is not new.

Rick Steiner, a retired University of Alaska marine conservation professor who founded and leads an environmental organization called Oasis Earth, has been advocating for the approach for several years.

“The legislature has so far seemed unable or unwilling to connect the dots between the many climate-related disasters we are experiencing — typhoon Merbok, wildfires, landslides, floods, coastal erosion, permafrost thaw, storm damage, infrastructure damage, subsistence impacts, commercial fishing impacts, etc..– to see the larger picture of the threat and costs these interrelated climate disasters pose,” he said in a letter to lawmakers sent last September. “The money to address these issues will have to come from government.”

In advocating for what he called an Alaska Climate Resilience Fund, Steiner said funding issues have become more pressing because of federal cutbacks.

The climate-response surcharge idea is not unique to Alaska, either.

Hawaii has put its version of a climate surcharge into law, a measure that seeks to raise money for responses to future disasters like the deadly 2023 Lahaina wildfire on the island of Maui.

In May, Hawaii Gov. Josh Green, a Democrat, signed a bill that increases the state’s hotel and lodging tax by less than a percentage point. The increase is applied to the state’s Transient Accommodations Tax, known at TAT. The governor said the increase would amount to an additional charge of about $3 on a $400-a-night hotel room fee. It is expected to generate about $100 million a year, according to state officials.

An Alaska Superior Court judge has ruled that a state law limiting live shows at breweries, distilleries and wineries in Alaska is an unconstitutional violation of the First Amendment and the Alaska Constitution’s protections for free speech.

Judge Adolf Zeman issued his decision Wednesday in a two-year-old lawsuit filed by three alcohol manufacturers against the state of Alaska’s alcohol regulator two years ago.

“The speech restrictions fail the tests of strict and intermediate scrutiny, and such suppression of speech by the state cannot stand,” Zeman wrote at the conclusion of his 25-page order.

Until 2022, alcohol manufacturers were prohibited from having entertainment — including TVs, dancing, games and live music — on site. That year, as part of a sweeping modernization of the state’s alcohol laws, breweries, distilleries and wineries were allowed up to four live events per year if approved by the Alaska Alcohol and Marijuana Control Office, the state regulator.

Bars continued to be allowed an unlimited number of live events without permit; the difference in limits was billed as a political compromise necessary for the reform to pass the Legislature and become law.

Three companies — Zip Kombucha, Sweetgale Meadworks and Cider House, and Grace Ridge Brewing Company — filed suit to overturn the four-event limit, raising free-speech and equal-protection claims.

They were represented in court by a national group, the Pacific Legal Foundation. While the plaintiffs eventually dropped the equal-protection argument, the free-speech debate continued through written arguments.

Zeman ultimately concluded that the state failed to show how restricting live entertainment at breweries and distilleries, but not bars, would protect public health or safety.

“This court recognized that the challenged speech restrictions were once a critical piece of a grand compromise … however, political compromise is not recognized as a substantial government interest for the purposes of restricting speech under the First Amendment. Neither is the codification of preference for one industry actor over another,” he wrote.

While Zeman overturned a law limiting live entertainment, he upheld a law forbidding breweries, distilleries and wineries from having pool tables, dartboards and similar games, “because they are not speech.”

He also gave nodding approval to a law that restricts brewery, distillery and winery operating hours and serving sizes to less than what’s allowed for bars.

“The Legislature has, and can further address public health and safety risks associated with alcohol consumption in breweries and wineries by limiting the amount of product that can be served, the hours during which they can operate, or by reducing the cap for the number of brewery or winery licenses allowed in a given community,” he wrote.

Alaska Cabaret, Hotel, Restaurant & Retailers Association, or CHARR, a trade group representing all kinds of alcohol retailers — including bars and package stores — did not return a request for comment before the reporting deadline for this article.

An appeal to the Alaska Supreme Court is possible by either side. Representatives of the Alaska Alcohol and Marijuana Control Office and the Alaska Department of Law said those agencies were still analyzing the decision.

“AMCO does not have an opinion on the ruling and is discussing the matter with agency legal counsel,” said Jenae Erickson, acting public information officer for the Alaska Department of Commerce, Community and Economic Development, the parent agency of AMCO. “At this time, we can’t definitively state how the order will be implemented, or what Alaskans can expect. When AMCO has appropriate guidance, an advisory notice will be released.”

Donna Matias, an attorney with Pacific Legal Foundation who represented the plaintiffs, said she is “really pleased” with the decision and said Alaska limits on live events are “actually very unusual” on a national level.

“It was a political compromise, but the legislature really never had the breweries’ First Amendment rights to use as political bargaining chips,” she said, “and I think the court in this opinion recognizes that very explicitly.”

Lee Ellis, head of the government affairs committee for the Brewers Guild of Alaska, said by phone that the guild had been pushing for a legislative solution to the issue, “but we’re happy to see those entertainment live-music restrictions are finally lifted. I think it’s a win regardless, and we look forward to offering a lot of opportunities for small-time musicians to further present their craft.”

One of those musicians is Juneau singer-songwriter Marian Call, who also works as executive director of MusicAlaska, a group devoted to boosting Alaskan musicians.

Call hosted a Christmas concert in a Juneau distillery before the end of the year, one of four events allowed at that space last year.

She said her group applauds Zeman’s ruling.

“Musicians have a superpower — we can enter an empty room and fill it with people. We create economic activity out of nothing but sound waves. Many businesses benefit from our labor, but none more than restaurants, bars, and the alcohol industry at large,” she said. “Limiting music professionals’ opportunities to work as a part of the SB9 compromise was inappropriate and, as the Superior Court has now ruled, unconstitutional, since musical performance is a form of speech.”

Call said MusicAlaska would love to see Thursday’s ruling bring more music to all kinds of venues — bars, breweries and those that don’t serve alcohol at all.

“Alaskan musicians’ desire and ability to host music events is not a limited resource,” she said, “and the more we get to work, the more Alaskans get to play.”

The state Department of Natural Resources is moving forward with its effort to overhaul the longstanding plan that dictates how it manages one of Alaska’s three state forests.

Agency staff are in Haines this week to meet with a range of local groups to solicit input for the new roadmap, which would open the entire Haines State Forest to logging — a major departure from the plan that’s been in place since 2002.

The effort began in 2024 after Gov. Mike Dunleavy directed the state Division of Forestry to boost the timber industry in Southeast Alaska – particularly in the Haines State Forest. The new version of the plan would also need to accommodate another Dunleavy policy: the sale of carbon credits.

But the major change is that the new management plan would allow for timber harvest in the entire forest, as opposed to about half of it.

“Prior to that it was 42,000 acres” available for harvest,” State Forester Greg Palmieri said in an interview earlier this week. “Well, now there’s 74,360 acres available for access for that type of resource management.”

A draft plan is in the works, but it hasn’t been released to the public yet. First, the agency will meet with local groups – including tribes, the Haines Borough and various advisory committees.

State Forester Greg Palmieri said those meetings will inform the draft, which should be released for public comment this spring.

“If we’re going to do this here, what do you think is the most appropriate way to do it, to protect the interest that you represent?” Palmieri said. “That’s the meaningful contribution that we’re trying to acquire at this time.”

Take the state forest land around Chilkoot Lake, which previously was not available for timber harvest. Palmieri said that the new plan could specify, for instance, that even though some timber harvest in that area may be on the table, clear cutting is not.

But at two local meetings this week that addressed the plan, participants focused more on the state’s process and its goal to boost logging than they did on any specific forestry recommendations.

One of those meetings happened Wednesday morning. Forestry officials met with a group that advises the state on how to manage the Alaska Chilkat Bald Eagle Preserve. Some, including Bill Thomas, seemed supportive of the effort.

“People forget, if it wasn’t for the logging industry, you wouldn’t have access out here anywhere,” he said.

Others, including Haines Mayor Tom Morphet, questioned the intent of the plan revision and potential outcome for local people.

“The state I think is going to have to make a lot better job explaining why it wants to start logging on recreation lands,” he said. “What’s the benefit to the community?”

People also voiced confusion over the process – and how they were supposed to weigh in on the issue without seeing the current draft or specific questions from the state.

That sentiment also arose on Monday, during a meeting of the area Fish and Game Advisory Committee. The group had yet to meet with DNR about the plan, but members spent the bulk of its regular meeting discussing it.

“They want us to comment when we have absolutely no idea of what their specific intentions are in any of these areas,” said committee member Kip Kermoian. “We have more meetings, but I think we need to insist on, if they want us to make informed decisions, we need more information.”

The group had yet to schedule a meeting with the state agency, but it voted to send a letter noting that the state is required by law to consult with them on such matters – and that the group’s members don’t think that what’s happened so far amounts to good-faith consultation.

Both committees indicated they planned to provide more specific, forestry-related feedback in the coming weeks.

Alaska’s congressional delegation introduced legislation Wednesday that aims to reduce bycatch in parts of southwest Alaska using better marine data, technology and gear.

The Bycatch Reduction and Research Act, introduced by U.S. Sens. Dan Sullivan, Lisa Murkowski and Congressman Nick Begich, would address research gaps in environmental data and improve monitoring of fisheries in the Bering Sea, Aleutian Islands and Gulf of Alaska. It would also establish a fund for fishermen to purchase updated technology and trawl gear to limit seafloor contact and bycatch. That’s when harvesters accidentally catch species they’re not targeting.

The proposed legislation builds on recommendations from the federal Alaska Salmon Research Task Force, which concluded in 2024 and aimed to better understand how humans cause declines in fish and crab species, including through factors like bycatch.

The legislation would revive the salmon task force under the new name of the Bycatch Reduction and Research Task Force. The group would review National Oceanic and Atmospheric Administration research on Alaska salmon and trawl gear impacts on the seafloor, and provide recommendations for future research.

“In recent years, Alaskans have witnessed unprecedented declines among some fish and crab species in parts of the state while, in other parts, runs have been strong and historic,” Sullivan said in a press release. “We need to get to the bottom of all potential causes of this increased variability, including concerns about bycatch and trawl gear habitat impacts, to strengthen the sustainability of our fisheries.”

For years, fisheries stakeholders have debated if and how fishing gear types, especially trawl gear, impacts marine species and seafloor habitats. Conservation and tribal groups and various stakeholders have pushed fisheries managers to take stronger action on limiting both bycatch and seafloor contact in trawling.

Representatives in the trawl industry have supported stricter regulations around bycatch, but also cautioned that more extreme limitations could be burdensome to the massive pollock industry, which is a major economic driver to some Western Alaska communities, including Unalaska.

The regional council that manages Alaska’s federal fisheries will discuss chum salmon bycatch management at its upcoming meeting in early February.

The proposed legislation still has to pass both the Senate and House before it would go to the president to be signed into law.

Avalanche risk rose over the weekend as more snow and then rain pounded Juneau. Meanwhile, staff at the city’s emergency warming shelter for unhoused residents relocated operations three times in two days.

When the city issued evacuation advisories for high risk areas of town on Friday, it said the shelter along Thane Road was too close to historic avalanche paths to stay put, said St. Vincent de Paul Director Jennifer Skinner. 

The warehouse the city and the nonprofit use for the shelter is right below the red zone on the city’s avalanche risk map. 

“It was intense to realize that we were going to have to relocate our operations to, at that point, an undisclosed location,” she said. “And we were on standby.”

The shelter serves an average of 45 people who don’t have another place to sleep each night.

Shelter staff packed up everything they could — including a refrigerator — in an hour and a half. Skinner said she was preparing for an avalanche to prevent them from accessing the building ever again. 

First, the city told them to move to the Marie Drake building between the high school and Harborview Elementary School.

“And we completely 100% reset there, and as we were finishing, we’re hearing the roof, and we’re hearing all these cracks and creaks and such,” Skinner said. “And so we contacted our city officials again and said, ‘Hey, is this safe?’ And he said, ‘You know what? Get out. Let’s err on the side of caution.’”

So warming shelter staff evacuated that building, too. They had to make a safety plan with the fire department to go back in and get all the equipment they’d moved in.

The city and Red Cross of Alaska has made Centennial Hall available for residents in avalanche slide zones. 

But city Emergency Programs Manager Ryan O’Shaughnessy said the city wanted to avoid housing the two groups together, citing concerns over potential drug use and hygiene. 

So the city identified Sít’ Eetí Shaanáx — Glacier Valley Elementary as the only available building for the warming shelter. The school had closed for part of the school week so crews could shovel snow off the roof. 

With the help of a moving company, Skinner said they were able to set up at the school. They finished setting up an hour before the shelter opened at 9 p.m.   

“So that was a huge success for us — we didn’t skip a beat,” she said. “Our patrons were not impacted at all by having to reset.”

The warming shelter operated out of the school for just one night, and 44 people came to stay. 

Then, on Saturday, city officials determined the Thane warehouse to be safe enough for Skinner and her staff to move back in. 

Some Juneau residents raised concerns on social media about temporarily housing the unhoused population in an elementary school. 

City Manager Katie Koester spoke to some of those concerns at Monday’s Juneau Assembly meeting.

“We had a thorough inspection, a thorough cleaning of the facility,” she said. “But really for life safety of those residents, we had to make that decision, and we had to make that decision quickly.”

But Skinner said she mostly saw support from Juneau residents during the crisis. 

“I can’t express my gratitude to community members and community businesses that are so willing to step in and step up when we have a hard time,” she said. “And help us problem solve and just be like ‘we got you.’”

The emergency warming shelter is once again operating out of its usual location in Thane, with transportation to and from the Glory Hall, which provides meals and other day services. 

Avalanche risk remains high, and the city’s evacuation advisory is still in place for residents living in the Behrends slide path. 

Some of Alaska’s largest pollock processors are abandoning a foreign worker visa program that once supplied up to half their workforce, citing rising costs and uncertainty under stricter immigration policies.

Tom Enlow is the president and CEO of UniSea Seafoods, Unalaska’s largest seafood processor. He said the company is moving away from the H-2B visas to save money on an inconsistent system.

“The H-2B program, I think was good for Alaska at a time when we really needed them, you know, during the pandemic, and little bit pre-pandemic, but really it’s cost prohibitive to bring workers all the way from Eastern Europe to Alaska,” Enlow said.

The H-2B visa program allows employers to bring foreign workers to the U.S. to fill temporary non-agricultural jobs during shortages. The visas can be difficult to obtain. Companies have to first show they can’t fill the jobs, then they have to apply, and then the U.S. Department of Homeland Security and the U.S. Department of Labor issue the visas through a lottery system.

Enlow said the processing plant moved back to a 100% domestic workforce this summer and will do the same for the upcoming “A” season — a major pollock season that starts later this month and brings thousands of workers to Dutch Harbor.

The main reason for that is cost. He said the Trump administration’s approach to hiring foreign workers has also made a difficult and expensive process even more complicated.

“It doesn’t make for good planning for processors, when you are bringing 200 or 300 people in from Eastern Europe and you don’t know for sure if you’re going to get supplemental visas, if [they’re] going to get approved in time, if they’re going to be in Alaska when you need them, when the season’s started,” he said.

UniSea started participating in the H-2B program in 2019, and prior to that, the company employed 100% U.S. domestic workers, according to Enlow. Some of those were green card holders or permanent residents, living in the U.S. — most from the Philippines.

When the company was actively using the special visas, as many as half of UniSea’s workers were foreign.

The company still employs a handful of Ukrainian employees who were hired through a special program designed to help those who were displaced from the Russian invasion, and will continue to work for the processor, Enlow said.

“They’re not bound by some of the rules and restrictions of the H-2B program,” he said. “They can stay extended periods of time. They can work full time, year round, they don’t have to be necessarily processors. They can work in other jobs, in other areas.”

UniSea isn’t the only regional processor filling jobs with American workers. Trident Seafoods — one of the largest seafood processors in the nation — said it employs almost an exclusively domestic workforce.

A spokesperson for the company said the processor — which has facilities across Alaska, from the Aleutians to Southeast and Bristol Bay — has been moving away from the H-2B program since 2023, in an attempt to strengthen long-term, local employment.

Westward Seafoods, another shore-based processor in Unalaska, would not provide information on employment data.

Alaska: the ‘poster child for foreign labor’

Brian Gannon is the vice president of global partnerships for LaborMex, a Texas-based company that helps connect U.S. businesses with foreign nationals for temporary or seasonal work. He said when it comes to handling and packaging Alaska’s massive seafood exports, especially for cod and pollock, the state has a very small local employment pool to work with.

“For 100 years, people have been coming from somewhere else to process fish in Alaska,” Gannon said.

Processing fish involves long hours, and often tough, repetitive and pungent work. Considering there is an entire area of plants often referred to as the “slimeline,” it can be difficult to fill those jobs.

Gannon, who started his career as a guest worker from Montana at a processing plant in Chignik in 1990, said despite the lackluster appeal of processing work, Alaska has done a good job attracting seasonal workers from afar.

“Alaska is really a poster child for foreign labor, in as much as the oil industry and forestry and mineral extraction and seafood production, etc., in Alaska for 150 years, [has] been built on a small amount of available local labor and a large amount of labor coming from somewhere else,” he said.

The Alaska Department of Labor found that in 2023 the state’s seafood industry employed nearly 22,000 workers, roughly 83% of which were nonresidents of the state. That year, the Alaska pollock industry directly employed over 8,000 workers, according to a report from Northern Economics on the contributions of the state’s pollock industry. Most were workers from the U.S., roughly 31% from Alaska, and about 12% were residents of other countries.

H-2B visa program helps fill employment gaps

Gannon said about 10 years ago, the seafood industry’s domestic workforce started to run dry. The industry’s pool of seasonal workers wasn’t replenishing. And that was especially challenging for cod and pollock processing, which unlike salmon, for example, don’t have peak seasons in the summer. He said salmon can have an advantage because it’s a summer fishery, and people sometimes have that season off. Ultimately, Gannon said companies just couldn’t match the shortfalls.

“And that’s where that H-2B visa came in quite handy,” he said.

The H-2B visas weren’t really used in Alaska’s seafood industry until about 12 years ago, according to Gannon. Congress currently doles out 66,000 for the entire fiscal year, and Gannon said they can get about 250,000 requests. Congress sometimes approves special increases for those visas.

Within the pollock processing industry, the program has been used among all sectors of processors. However, the catcher-processor fleet — that processes at sea — is required by law to employ 75% American citizens and green card holders. According to officials in the industry, they’ve never made any significant use of the H-2B program.

For a while the visas, while complicated to obtain, worked well. But Gannon said over the past several years a lot has changed in the pollock industry.

Changes in the industry spark a return to domestic labor 

“So many things have upended the apple cart, and the pollock processors are not necessarily producing as much,” he said.

Gannon said things like the COVID-19 pandemic, the war in Ukraine, changes in the nation’s political dynamics and competition from China and Russia have made it hard for pollock processors to make ends meet.

Gannon said Alaska seafood companies also likely had trouble matching the prevailing wage requirements for H-2B visa holders, which he said had surpassed Alaska’s minimum wage at one point. He said the Department of Labor sets those wages, and they have to be matched or exceeded for all processors at the plant.

The seafood industry in general has also seen increases in processing costs, wages, energy prices, as well as drops in sale prices for every major species group in 2023, according to the National Oceanic and Atmospheric Administration.

Enlow said UniSea won’t be saving much, if any, money right away by switching back to an American workforce, because he’s expecting a high attrition rate.

“And so you’re going to need to hire more and bring up more people than you actually would need over time, because you’re going to lose some of those workers,” he said.

But Enlow said that should eventually be offset by avoiding uncertainties around international travel and immigration concerns.