Legislature(2021 - 2022)BELTZ 105 (TSBldg)
02/07/2022 01:30 PM Senate LABOR & COMMERCE
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ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 7, 2022
2:00 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Joshua Revak, Vice Chair
Senator Peter Micciche
Senator Gary Stevens
Senator Elvi Gray-Jackson
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Senator Jesse Kiehl
COMMITTEE CALENDAR
PNWER PRESENTATION(S)
• Overview of Priorities
• Congregate Solutions Accelerator
• Future of Hybrid Work and Regional Collaboration in Alaska
• Legislative Energy Horizon Institute: Accomplishments and
Recruitment
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record.
WITNESS REGISTER
RICHARD GOTFRIED, President
Pacific NorthWest Economic Region (PNWER); and
Member, Legislative Assembly of Alberta for Calgary-Fish Creek
Calgary, Alberta
POSITION STATEMENT: Provided an overview of the priorities he
had as the new president of PNWER.
STEVEN MYERS, Senior Innovation Program Manager
Pacific NorthWest Economic Region (PNWER)
Seattle, Washington
POSITION STATEMENT: Discussed the Congregate Solutions
Accelerator program during the PNWER presentations.
SARAH LEONARD, President and Chief Executive Officer (CEO)
Alaska Travel Industry Association
Anchorage, Alaska
POSITION STATEMENT: Discussed ATIA participation in PNWER's
Congregate Solutions Accelerator program.
LINDSAY RANDALL, Program Manager
Congregate Solutions Accelerator
Pacific NorthWest Economic Region (PNWER/Moonbeam
Seattle, Washington
POSITION STATEMENT: Discussed how PNWER's Congregate Accelerator
program differs from other accelerator programs.
NIRAV DESAI, CEO of Moonbeam Exchange and
Co-Chair, PNWER Innovation Private Sector
Seattle, Washington
POSITION STATEMENT: Discussed the future of hybrid work and
regional collaboration in Alaska as part of the PNWER
presentations.
MATT MORRISON, CEO
Pacific NorthWest Economic Region (PNWER)
Seattle, Washington
POSITION STATEMENT: Discussed PNWER's Legislative Energy Horizon
Institute (LEHI).
ACTION NARRATIVE
2:00:56 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 2:00 p.m. Present at the call to
order were Senators Micciche, Gray-Jackson, and Chair Costello.
Senators Stevens and Revak arrived during the introductions.
CHAIR COSTELLO welcomed Montana Senator Mike Cuffe, the past
president of the Pacific NorthWest Economic Region (PNWER) and
Senator Jesse Kiehl who is a PNWER delegate.
^PNWER PRESENTATION(S)
PNWER PRESENTATION(S)
Overview of Priorities
Congregate Solutions Accelerator
Future of Hybrid Work and Regional Collaboration in Alaska
Legislative Energy Horizon Institute: Accomplishments and
Recruitment
2:02:33 PM
CHAIR COSTELLO announced that the meeting would be dedicated to
presentations from members of the Pacific NorthWest Economic
Region (PNWER). She reviewed the five different presentations
and asked Richard Gotfried to begin with an overview of the
priorities he had as PNWER's new president.
2:04:16 PM
RICHARD GOTFRIED, President, Pacific NorthWest Economic Region
(PNWER); and Member of the Legislative Assembly of Alberta for
Calgary-Fish Creek, Calgary, Alberta, relayed that he also
chairs the Aviation Advisory Council and serves on various other
committees.
MR. GOTFRIED stated that he first became aware of PNWER in 2012-
2013 when he was working in economic development and focusing on
recruiting in Alberta. He found PNWER to be particularly helpful
when reaching across the border from Canada into the United
States. He described PNWER's governance structure that is
comprised of the Executive Committee, the Delegate Council, and
the private sector partners that are engaged in coordinating the
opportunities and challenges facing each region.
He reflected on the history of Alaska's involvement in PNWER,
recognizing that Senator Fred Dyson in 2003 and Senator Lesil
McGuire in 2009 each served as president. He said the focus of
this regional multinational forum has been on trade and
investment, but in Alberta and Alaska the focus has also been on
energy security, sustainability, and supply. He reminded the
committee that on January 30, 2022 the provincial government of
Alberta, led by Premier Jason Kenney and Alaska Governor Mike
Dunleavy signed a [memorandum of understanding] to strengthen
ties and reaffirm a commitment to work together to continue to
pursue economic progress and prosperity between the regions. He
expressed hope that the Alaska/Alberta bilateral council would
work together going forward on matters of transportation, market
access, energy, and the environment. He shared his research that
showed that 2020 exports from Alberta worth $175 million (U.S.)
supported about 2,150 jobs in Alberta and 1,650 jobs in Alaska.
He expressed optimism that those numbers would grow in the
future.
MR. GOTFRIED reviewed his objectives and agenda as the new
president of PNWER, identifying visits to the capitals in the
region as the top of the list. These visits provide an
opportunity for face-to-face meetings with legislators and play
a part in building personal relationships. For example, he said
it is a great opportunity to be able to call Senator Costello
when there is a challenge between jurisdictions or a regional
opportunity whose timeframe could be shortened with direct
contact. PNWER is noted for having a strong voice for regional
advocacy as well as advocacy to the respective federal
governments in Ottawa and Washington, D.C. PNWER has a strong
and respected voice in those centers and he believes it is
important to work to find common ground across jurisdictions and
bring those messages forward and collaborate when possible to
strengthen the regional economies and investment opportunities.
MR. GOTFRIED opined that it is also key to engage private sector
partners to understand their challenges and look for
opportunities for cross investment in trade, commerce, and
labor. He noted that mobility is a huge issue, particularly with
the different peaks and troughs of economies.
MR. GOTFRIED related that a bright light stemming from the
pandemic was that PNWER's virtual presence was enhanced. It is
now a hybrid organization that allows people to join webinars
and participate in the Summit virtually.
MR. GOTFRIED briefly described additional priorities of his
presidency:
Provide continuity for the organization by mentoring the younger
generation who will be the new leaders in PNWER.
Advance the discussion about North American energy security and
sustainability as it relates to global challenges. He noted that
Canada and the U.S. share the longest demilitarized border in
the world, and relayed that he recently visited the Royal
Canadian Air Force 4 Wing Cold Lake base in Northern Alberta,
which provides military security for both regions.
Advance discussions about energy and utility corridors,
transportation, rail lines to connect jurisdictions, and provide
opportunities for jobs and the creation of wealth. He noted in
particular the relationship between Alberta and Alaska and said
he looked forward to those conversations.
Focus on wealth creation, energy security, innovations in
decarbonization, alternate energy, renewable energy, hydrogen,
and other forms of energy that will be needed in the post-
pandemic world.
Advance opportunities in critical minerals that have the
potential to benefit the Pacific Northwest economic region
generally. He mentioned a recent discovery that the pools of oil
drilling fluids that have been reinjected into the ground for
many years hold large amounts of lithium and other minerals. The
Alberta legislature recently passed legislation to allow
companies to investigate those. He noted this may have potential
in Alaska as well.
Finally, continue to advance trade between Canada and the U.S.
At $32.3 billion in U.S. dollars, it is without measure anywhere
else in the world.
MR. GOTFRIED welcomed legislators to arrive early for the July
24-28 PNWER Summit to take in the Calgary Stampede, which he
described as the greatest outdoor show on earth. The expectation
is that 500-700 delegates will attend in person and several
hundred more will participate virtually. He said work is ongoing
with the Delegate Council to ensure the opportunity to discuss
some of the key issues of PNWER.
2:14:42 PM
SENATOR STEVENS commented that this was the first he had heard
about finding lithium when drilling for oil.
MR. GOTFRIED confirmed that the drilling fluid that has
traditionally been reinjected into the ground has been found to
be rich with critical minerals such as lithium. He opined that
the effect will be twofold. Precious minerals will be extracted
and the old wells will be reclaimed.
2:16:00 PM
CHAIR COSTELLO announced the presentation on a PNWER project
called the Congregate Solutions Accelerator. She said this
program demonstrates the value PNWER offers in fostering
cooperation to overcome challenges.
2:16:35 PM
STEVEN MYERS, Senior Innovation Program Manager, Pacific
NorthWest Economic Region (PNWER), Seattle, Washington, stated
that in the fall of 2020 PNWER's Innovation Working Group
received a SPRINT grant (Scaling Pandemic Resilience Through
Innovation and Technology) from the U.S. Economic Development
Administration (EDA) to develop the Accelerator program to look
at how the tourism, travel, performing arts, and hospitality
sectors were affected by the pandemic. This process provided an
opportunity to partner with individuals and organizations. He
recognized Sarah Leonard who would talk about the Alaska Travel
Industry Association and Lindsay Randall who works for Moonbeam
and is also the Program Manager for the Congregate Accelerator.
2:18:47 PM
SARAH LEONARD, President and Chief Executive Officer (CEO),
Alaska Travel Industry Association, Anchorage, Alaska, stated
that ATIA is the statewide voice for over 600 travel and tourism
businesses in Alaska. It has a 24-member board of directors that
includes the lieutenant governor who is an ex officio, non-
voting member. The organization is the longtime manager of
Alaska's statewide marketing program.
She reported that PNWER reached out early in the pandemic to
offer support through the SPRINT grant to accelerate the
recovery of tourism businesses in the region and Alaska
specifically. She noted that early in the pandemic she saw
statistics on the percentage of small businesses that were
expected to never recover or take six month or longer, and that
the majority of the accommodation and food service jobs were in
small and medium-sized businesses. She reminded the committee
that every path for tourism to come to Alaska was affected.
Typically, about 60 percent of visitors arrive by cruise ship,
36 percent arrive by air, and 4 percent by road or ferry. She
highlighted that the industry is beginning to see signs of
recovery.
MS. LEONARD stated that the path forward for ATIA and Alaska
tourism will continue to focus on safe travels and safe
operations; continued support for small businesses; addressing
workforce demands; and continued investment in statewide tourism
marketing. She concluded that the challenges the pandemic
presented made the partnership with PNWER and the Congregate
Accelerator "a silver lining fit" to advance the recovery of
tourism businesses more quickly. She concluded that she was
proud to be part of the partnerships and collaborations made
possible through PNWER.
2:23:44 PM
LINDSAY RANDALL, Program Manager, Congregate Solutions
Accelerator, Pacific NorthWest Economic Region (PNWER)/
Moonbeam, Seattle, Washington, stated that she would focus her
discussion on the aspects that differentiate the Congregate
Accelerator from any other accelerator program. She explained
that the Congregate Accelerator is a challenge-based program.
When PNWER received the SPRINT grant, they went directly to
organizations and companies in the tourism and hospitality
industries throughout the region and asked what the most
pressing challenges were that presented barriers to recovery
from the pandemic. The primary goal was for the Congregate
Accelerator to bridge the gap between the tourism industry
throughout the Northwest that is struggling to recover and
innovative entrepreneurial companies that have solutions but no
direct access to the industry. The strategy was to address this
in two separate cohorts.
MS. LEONARD explained that there were eight companies in
Congregate Cohort One that focused on four areas of concern.
These challenges were associated with the workforce, hybrid work
experience, contactless commerce, and immunity verification.
Each of the cohort companies collaborated with Washington- and
Alaska-based industry partners to find a match for a pilot
program or proof of concept that the innovative entrepreneurs
had put forward to help solve a problem that these tourism
companies are experiencing. She noted that the first cohort was
about finished.
She stated that Congregate Cohort Two will start in April 2022
with two areas of focus: reimagining business travel, and
workforce and labor tactics. She relayed that business travel
has been the slowest sector in the travel industry to recover
from the pandemic. The idea is to reimagine business travel by
blending digital business and leisure travel.
The second cohort is being challenged to address workforce and
labor challenges by looking at different technologies and
innovations not currently being used because the traditional
approach to workforce staffing does not meet the needs of the
unpredictable pandemic economy for hospitality and tourism. She
said Congregate is currently looking for Alaska partners
including startups this committee has worked with, small Alaska
businesses, or ATIA members. She concluded that Congregate's
only agenda here is to build connections and accelerate recovery
from the pandemic.
2:29:11 PM
CHAIR COSTELLO asked if she was prepared to share examples that
entrepreneurs have come up with in one of the challenge areas
such as immunity verification, so the committee will understand
what it looks like when a business comes up with a solution.
MS. RANDALL responded that a project that will be announced soon
is in the hybrid experiences category, which ties into the focus
on business travel. One of the companies will be partnering with
the Seattle Wedding Show to provide a virtual experience when
walking through [the convention center] gateway. Using
technology people will be able to see and experience the space
in a different way. This organization is looking for ways to get
people to come back to this convention in person. Congregate s
also working with a few sports teams to advance e-commerce sales
to offset the reduced capacity in their stadiums, which leads to
reduced sales.
With regard to immunity verification, a company in one of the
cohorts is in the pilot stage working with cruise companies in
Europe to test and gather data on breathalyzer style screening
tools that detect upper respiratory infections. The company is
awaiting FDA approval so it is currently unable to partner in
the U.S. They specifically approached the Congregate Solutions
Accelerator program because of their interest in working with
cruise companies.
2:32:04 PM
SENATOR STEVENS asked Ms. Leonard what her expectations are for
the Alaska cruise industry in the near term.
MS. LEONARD replied ATIA is hopeful and pleased that cruise
companies are reporting positive outlooks on bookings. They are
also monitoring federal legislation to update the Passenger
Services Act, but really it is a wait and see situation, she
said.
2:33:03 PM
SENATOR MICCICHE highlighted that, despite projections to the
contrary, independent traveler traffic in the Seward area was
extraordinary last summer. The area was not affected by the
depressed cruise ship travel, which was a surprise. He asked Ms.
Leonard if ATIA was working with PNWER's Congregate Accelerator
to further enhance independent travel up and down the West
Coast.
MS. LEONARD answered that there has been indirect talk about
that and there will always be opportunities for future
partnerships working with PNWER to help market visitor traffic
in the entire region. She added that she heard that some regions
in Alaska had very good visitation last year from independent
travelers while areas like Southeast were particularly hard hit.
Also, some businesses in Southcentral and the Railbelt that rely
on cruise ship itineraries never did reopen, because even the
few late summer cruises to Alaska did not go across the Gulf.
Despite some bright spots, there are pockets still trying to
recover.
2:36:10 PM
CHAIR COSTELLO announced that Nirav Desai would present on the
future of hybrid work and regional collaboration in Alaska.
2:36:33 PM
NIRAV DESAI, CEO of Moonbeam Exchange and Co-Chair of PNWER
Innovation Private Sector, Seattle, Washington, stated that he
would loosely follow the slides he prepared as he discusses how
to take advantage of the amazing opportunities in the hybrid
workplace and how to address the key barriers associated with
connecting Alaska to the Lower 48 and the rest of the world.
He said the pandemic has affected all aspects of life, but
workforce issues in particular have changed the way work is
conducted. More work is done remotely and more meetings are
conducted virtually. This is likely to continue.
Lifestyle locations are seeing a huge influx. States and cities
need to think beyond improving broadband connectivity to attract
remote workers to ways to improve entrepreneurial ecosystems to
attract businesses. It is important to embrace the Metaverse to
have a global impact. This technology allows people to
collaborate as effectively and with the same feel as though
everybody is in the same room.
MR. DESAI reviewed three emerging hybrid office solutions that
may be particularly relevant for the Alaskan economy. The first
is remote operations/expertise solutions that uses: increased
use of telemedicine and therapy; remotely operated vehicles
(ROVs), which are critical to the mining industry, immersive
technology that allows a real-time experience; and IoT (Internet
of Things) and industrial AI (artificial intelligence). The
second solution, which is popular in Europe, is digital nomad
support. This is attracting freelance workers who are able to
work from any location of their choosing. This can be used to
boost tourism but if properly used it can also be used to
attract entrepreneurs to move to Alaska and start businesses.
For this to be possible, broadband networks need to be widely
available as well as web collaboration tools and coworking
spaces. The third hybrid office solution, which may be the most
relevant for Alaska, is virtual innovation spaces. Due to the
pandemic, virtual reality meetings are attracting a lot of
investment.
MR. DESAI directed attention to slide 20 that represents his
view of Alaska as a leading innovator in the world through data
driven strategy and metaverse-enabled networking/mentorship with
similarly focused regions. These are Arctic Innovation; Maritime
Technology; and Critical Minerals/Clean Technology.
A great deal of investment is going into Arctic innovation and
start-up centers in Nordic countries, and Alaska can benefit by
applying those innovations in the American Arctic. A virtual
network fostered by Metaverse technology can really help this
effort.
Second is maritime technology. Alaska has the largest American
coastline and traditional industries around fishing and offshore
development. It is necessary to connect Alaska entrepreneurs
with investors in other industries both for harvesting
innovations and applying it locally, while also extending the
reach of Alaska entrepreneurs into other markets.
Third, while there are a number of clean technology innovation
centers being built worldwide, what makes Alaska unique is the
focus on critical minerals that drive fuel cells, cell phones,
and battery technology. Connecting with the growing number of
critical mineral innovation centers helps Alaska entrepreneurs
grow their businesses through mentoring from peers. The idea is
to start businesses that stay in Alaska and help drive the
future economy outside Alaska's borders.
MR. DESAI discussed the mechanics of hybrid work depicted on
slide 21. He opined that the importance of investments in
immersive technology and the future of work can be summed up by
Facebook's embrace of the metaverse when it changed the name of
the parent company to Meta. He cited two examples of venture
capital investments in the metaverse. Last month a visual
collaboration company called Miro received $400 million in new
funding and is currently valued at $17.5 billion. Late last year
Rec Room, a user-generated immersive gaming platform, raised
$145 million to bring its valuation to $3.5 billion. Whether or
not Alaska can leverage this type of investment depends on the
type of work Alaska entrepreneurs create. He pointed to the
chart that depicts the four modes of intentional collaboration
where teams are co-located and working together or independently
and teams that are distributed and doing synchronous and
asynchronous work.
He drew a parallel between what Alaska potentially could do and
what Helsinki had done to grow and empower the private sector
for innovation ecosystem development. He reviewed the examples
from slide 22 that read as follows:
• In 2015, Finland (pop. 624,462) accounted for 10%
of startup Initial Public Offerings globally.
• The Slush conference (Similar to SXSW) is a top-3
startup/tech conference in Europe and bring the
global investment and innovation community to
Helsinki yearly.
• FiBAN (https://fiban.org/) offers investment
training to grow and mature angel investors (JEDC
is doing something similar)
• Extensive founder enablement ecosystem with 48
startup accelerators
• SpaceHub is outfitting Helsinki with rentable
workspaces in public locations to support remote
work while on travel.
MR. DESAI discussed how essential it is to get broadband to the
most remote areas of Alaska to achieve maximum benefit from the
hybrid work environment. He pointed to the roster of
Infrastructure Investment and Jobs Act grant sources on slide 23
that could be relevant to support broadband equity. He also
stressed the importance of centralizing access and promoting
exports from the smallest villages to the global economy. It's
about embracing the future, he said.
MR. DESAI highlighted that the Congregate Accelerator is a
program that resulted from PNWER and Moonbeam working together
to establish the Resilience Foundry to help connect industry,
investors, academia, and startups to enhance resiliency in
industry and engage the entrepreneurial community to foster
innovations. He offered his vision of an entrepreneur who makes
a lifestyle decision to move to Homer, Alaska and still remain
part of the Innovation Economy.
MR. DESAI summarized that innovation feeds innovation. Hybrid
work can bring jobs to Alaska, connect Alaskans with global
expertise, and help Alaskan businesses scale globally. He said
it starts with broadband, but it's so much more.
CHAIR COSTELLO offered her takeaway which is that the metaverse
allows an in-person experience without having to travel. This is
very beneficial to a state like Alaska and she wonders what
government can do to help facilitate this innovation.
2:52:10 PM
SENATOR GRAY-JACKSON commented that Zoom and other virtual
meeting technologies are here to stay and that emphasizes the
need to get broadband to all parts of Alaska.
MR. DESAI responded that it is important to think of this in
stages with widespread broadband access in step one. What
SpaceHub has done in Helsinki to set up landing zones will also
be an essential interim step in Alaska. Those could be located
in libraries and schools in small or remote areas. He estimated
that the Chair's vision of an in-person experience without
having to travel is 10-15 years away.
CHAIR COSTELLO stated that Matt Morrison would present on the
Legislative Energy Horizon Institute (LEHI).
2:54:44 PM
MATT MORRISON, CEO, Pacific NorthWest Economic Region (PNWER),
Seattle, Washington, stated that PNWER established the
Legislative Energy Horizon Institute (LEHI) in 2009. Since then
more than 350 legislators from Canada and the U.S. have enrolled
in the comprehensive 60-hour executive certificate program in
energy policy from the University of Idaho. The U.S. Department
of Energy, Natural Resources Canada, private sector companies,
and the University of Idaho serve as hosts. The goal of the
program is to provide policymakers with information about how
energy is delivered to consumers so they are prepared to make
educated policy decisions. The curriculum includes: How energy
systems and infrastructure work, building and financing energy
infrastructure, regulation and market impacts on energy
infrastructure, and more.
MR. MORRISON acknowledged the many Alaskans who have
participated in the program and expressed hope that the next
classes would be in person. These are August 5-9, 2022 at the
Pacific Northwest National Laboratory (PNNL) campus in Richland,
Washington; and November 16-19, 2022 in Washington, D.C. which
will provide an opportunity to look at the state of energy
across North America. He emphasized Mr. Gotfried's point about
the need for a policy discussion about energy security and
sustainability in Canada and the U.S. in particular. Throughout
LEHI's history, he said the goal has been to include a balance
of energy producing states and energy consuming states.
2:58:54 PM
SENATOR REVAK said he found the LEHI program a lot to take in,
but he appreciated the opportunity to take a deep dive into
energy policy and how utilities operate. He noted that he has
used the wealth of information and resources that he took home.
SENATOR GRAY-JACKSON expressed gratitude for the opportunity to
participate in the LEHI program. She thought she knew a lot, but
she learned much more.
CHAIR COSTELLO described the LEHI program as a wonderful
opportunity for policymakers and gave a thumbs up to the private
sector involvement.
3:01:26 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:01 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| PNWER Combined PowerPoint Presentation - SLAC 2.7.22.pdf |
SL&C 2/7/2022 1:30:00 PM |
|
| PNWER Presentation Speaker Bios - SLAC 2.7.22.pdf |
SL&C 2/7/2022 1:30:00 PM |
|
| Congregate Solutions Accelerator Info - SLAC 2.7.22.pdf |
SL&C 2/7/2022 1:30:00 PM |