Legislature(2025 - 2026)GRUENBERG 120
01/22/2026 01:00 PM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HJR27 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HJR 27 | TELECONFERENCED | |
HJR 27-SUPPORTING STATE ENERGY DEVELOPMENT
1:17:41 PM
CO-CHAIR DONNA MEARS announced that the only order of business
would be HOUSE JOINT RESOLUTION NO. 27, Supporting a
comprehensive energy and economic strategy for the state; urging
the federal government to disburse previously appropriated funds
for energy and infrastructure projects; affirming the principle
of energy equity and committing to a future-oriented energy
strategy for the state; encouraging state agencies to
aggressively pursue opportunities to develop and process
critical minerals; directing state agencies to coordinate energy
and economic planning; and championing a unified voice in
support of the state's full development potential.
1:18:24 PM
CO-CHAIR HOLLAND, Alaska State Legislature, as prime sponsor,
introduced HJR 27 and described the purpose of the legislation.
He referenced the Alaska constitution and the legislature's role
in developing natural resources for the maximum benefit of the
people. He pointed out that those natural resources are not
only the traditional fossil fuel resources and mining but are
also the natural resources found in Alaska's immense wealth of
renewable energy and tidal power. He emphasized that the assets
are global in scope, have sizable potential markets, and include
job potential and value-added opportunities.
1:22:10 PM
TIMOTHY TREUER, Staff, Representative Ky Holland, Alaska State
Legislature, on behalf of Representative Ky Holland, prime
sponsor, presented a PowerPoint explaining the scope and purpose
of HJR 27 [hard copy included in the committee file]. He showed
the title slide, which read "House Joint Resolution 27:
Supporting State Energy Development," and moved to slide 2 which
presented the sponsor statement and read as follows [original
punctuation provided]:
Sponsor Statement
• House Joint Resolution 27 builds on the first
session hearings and opportunities offers a framework
for Alaska's energy and economic future and meeting
our responsibility in article VIII, sec. 2, of the
Constitution of the State of Alaska, mandating that
the state's natural resources be developed "for the
maximum benefit of its people,"
• Alaska possesses extraordinary assetsabundant oil
and gas resources, world-class renewable energy
potential, and critical and strategic minerals
essential to advanced manufacturing, national
security, and next-generation energy systems. This
resolution recognizes that Alaska's long-term
prosperity depends on responsibly advancing these
resources together within a coherent, forward-looking
framework.
• HJR 27 emphasizes the importance of preparing Alaska
for emerging energy industries, including:
• Development of comprehensive energy and
economic strategy that includes exploration,
development, and production of fossil fuels,
renewables, rare earth and critical minerals, and
value-added manufacturing.
• The production, stimulation, storage, and
processing of hydrogen into products and fuels.
• Advancing Energy and Innovation goals and
strategies in the Statewide CEDS and the Alaska Energy
Security Taskforce
• Creation of 1,200 new scalable ventures and
associated jobs by 2025 with a $5B GDP/$400M
UGF/30,000 Jobs impact.
MR. TREUER showed slide 3, titled "Alaska is at an Inflection
Point." He pointed out that HJR 27 outlined the context of both
the challenges and the opportunities of this inflection point in
the history of Alaska's energy economy. He explained that the
challenges the state faced included 11 years of net outmigration
as of 2023. This was balanced by the enormous untapped
potential across both legacy sectors and in emerging growth
areas in energy and critical minerals.
1:22:48 PM
MR. TREUER moved to slides 4 and 5. He summarized slide 4,
titled "Legacy and Emerging Economic Sectors," which read as
follows [original punctuation provided]:
Future growth will come from value-added support of
existing economic engines and investment in emerging
sectors and jobs
Diversification and technology growth aligns with our
CEDS, state and national economic development trends,
and history
MR. TREUER explained that slide 5, titled "Emerging Sectors,"
addressed the question of where to focus targeted investments,
pointing to areas outlined by the "Alaska Statewide
Comprehensive Economic Development Strategy for 2022-2027." He
expanded on four key areas which read as follows [original
punctuation provided]:
1. Expand Reliable and Affordable Energy Access
2. Support Renewable and Emerging Energy Technologies
3. Leverage Energy for Industry Growth
4. Integrate Energy Planning with Workforce and
Infrastructure Development
1:24:10 PM
MR. TREUER showed slide 6, titled "Alaska Energy Security Task
Force" and explained that the task force provided guidance in
how to achieve the objectives of energy costs and energy
security going forward. HJR 27 was an attempt to take the next
steps needed to turn the findings into policy. He called the
committee's attention to the slide 7, titled "Hydrogen,"
pointing out the enormous potential of the production, use, and
export of hydrogen. He referenced a report from the University
of Alaska Fairbanks, the Department of Energy's Arctic Energy
Office, and the National Renewable Energy Laboratory, stating
that "hydrogen is a versatile molecule that can be used directly
as a fuel, can be used as a chemical feedstock, or a medium for
storing energy." He described several methods for producing
hydrogen.
1:25:03 PM
MR. TREUER continued with slide 8, titled "2035 Benchmarks Set
by HJR 27," which directed state agencies to coordinate energy
and economic planning in order to achieve 1,200 new scalable
ventures and associated jobs with the result of retaining
employees and attracting new workers. It would also lower
household energy costs and build the grid and industrial base to
support the state's role as an exporter of clean energy and
value-added mineral products. He concluded the presentation
with slide 9, titled "HJR 27 Supports," which reiterated key
points of the legislation and read as follows [original
punctuation provided]:
• Commitment to a comprehensive energy and economic
strategy
• Urges the federal government to provide project and
financial support
• Investment in the goals of the 2022 - 2027 Alaska
Statewide Comprehensive Economic Development Strategy
• Energy investments providing direct benefits to
underserved regions
• State agencies to aggressively pursue opportunities
to develop and process critical and rare earth
elements
• Directs state agencies to coordinate energy and
economic planning to create, by 2035, 1,200 new
scalable ventures
• Champions a unified voice in support of the state's
full development potential
1:28:39 PM
CO-CHAIR HOLLAND responded to a question from Representative
Edgmon regarding the primary audience for HJR 27. He explained
it would include the President and federal agencies. It was
also for the Alaska Industrial Development and Export Authority
(AIDEA) as well as key commissioners who have been guiding
investments such as Alyeschem. In addition, the resolution is a
message to the University of Alaska regarding their programs,
their work in developing new technologies, and their research
findings in the geologic hydrogen stimulation. He acknowledged
that the energy policy is on the books, but it had not been
updated for ten years, and it had not been codified. He
explained that the resolution would provide scope and
perspective as well as help with policy decisions. With the
emerging interest and research into hydrogen capture,
stimulation, and storage, there will be a need to update policy
or create new policy.
1:35:59 PM
CO-CHAIR MEARS opened invited testimony.
1:36:20 PM
PAUL CRAIG, CEO, GeoAlaska, LLC, testified in favor of HJR 27.
1:37:07 PM
The committee took a brief at-ease at 1:37 p.m.
1:38:20 PM
MR. CRAIG described his background and experience. He explained
his commitment to the future of energy in Alaska. He stated
that GeoAlaska was an Alaskan majority owned geothermal company.
He described the contributions of individuals and organizations
who have invested time in GeoAlaska and pointed to the research
of Dr. John Eichelberger, one of the world's leading
vulcanologists. He discussed the ten-year leases on Mt. Spurr
and Mount Augustine and pointed out that, despite the set-backs
for renewables in Alaska, the President's "Big Beautiful Bill"
included 30 percent tax credits for geothermal. He described
Chugach Electric's letter of intent to purchase GeoAlaska power
between 2029 and 2031. He also discussed use of geothermal
power on the Augustine Island for AI factories and sustainable
aviation fuel. He stressed the importance of a magma chamber at
6,500 feet below the surface, pointing out the potential for
generating electricity with cutting edge technology. In the
short term, GeoAlaska would pursue the 200-megawatt power
project on Augustine Island.
1:44:54 PM
MR. CRAIG responded to a question from Representative Kopp
regarding transmission from Augustine Island to tie into the
grid. He explained that the grid at Anchor Point would not be
able to accept 200 megawatts. However, with the right
technology, the power could be taken to the Beluga Power
Station. He briefly described a proposed High Voltage Direct
Current (HVDC) submarine cable to the Beluga Power Station,
emphasizing it made the most sense for Alaska to own the
transmission "highways" rather than private companies. He would
like to see financial support from Alaska Industrial Development
and Export Authority (AIDEA) or other Alaska entities. As a
side note, he explained that much of the technology comes from
the oil industry.
1:48:33 PM
MR. CRAIG, in response to a question from Co-Chair Mears,
explained that, in addition to exporting electrons via HVDC,
GeoAlaska could also export chemicals such as green ammonia,
sustainable aviation fuel, manufactured carbon negative protein,
and photons by fiber optic cable.
1:50:20 PM
MR. CRAIG addressed a series of questions posed by
Representative Ruffridge regarding the economics of the project.
He explained that, first, to get launched, they needed
approximately $12 million. To get to the point where they could
deliver 200 plus megawatts of power, they would need
approximately $850 million in capital expenditures. After it
was launched, it was estimated that it would cost 3 cents per
kilowatt-hour (KWh), possibly less with potential value-added
products. He described the project as an inexpensive and
sustainable power source, characterizing geothermal as the most
efficient way to produce renewable, sustainable energy. He
explained that even under several scenarios, GeoAlaska would be
competitive with gas-fired power whether it came from Cook
Inlet, the North Slope, or was imported.
1:54:03 PM
MR. CRAIG, in response to a question from Co-Chair Mears, stated
that geothermal is not a depletable source of energy but rather
exists in perpetuity.
1:55:14 PM
MR. CRAIG responded to a question from Representative Ruffridge
regarding eruptions which had primarily been pyroclastic rather
than magma. He explained that the island is heavily monitored
for risk, and the facilities would be "bunkerized." During
periods of high risk, no one would be on the island.
1:57:38 PM
MR. CRAIG, in response to a question from Co-Chair Holland,
emphasized that there was lots of room for geothermal growth in
Alaska. He pointed out that there were at least 50 volcanoes on
the Aleutian Chain as well as possible geothermal activity near
Nome and in Southeast Alaska. He said Alaska could be a leader
in cutting edge geothermal technology.
2:00:46 PM
PAUL FUHS, former Alaska Commissioner of Commerce and Economic
Development and former Chairman of Board for the Alaska
Industrial Development and Export Authority (AIDEA), testified
in support of HJR 27. He presented a PowerPoint, titled "HJR 27
Blueprint for Alaska's Economy." He explained he could provide
context for how Alaska's economy actually works. He showed
slide 2, which read as follows [original punctuation provided]:
HJR27 points to the future
What is current status?
-37% oil and gas
-13% fish, timber mining tourism
-29% federal money
-20% retirement money
-1% Entrepot
MR. FUHS pointed out that Alaska's gross domestic product for
the previous year was about $54 billion, and of that
approximately $40 billion was oil and gas. He called attention
to the significant contribution native corporations make to the
Alaska economy. He moved to slide 3, titled "Downstream
effects," explaining that productively managed resources drove
the service economy, the hospitality economy, the health
industry, and the education industry.
2:05:34 PM
MR. FUHS moved to slide 4, titled "Leakage." He explained that
the term "leakage" addressed the question of how much money came
into the Alaska economy and actually stayed. He discussed each
of the categories outlined on slide 4, which read as follows
[original punctuation provided]:
-Out of State workforce, 49% North Slope, 42% mining
-Village energy costs, renewables
-Fishing and tourism seasonal hire
-Services and retail, health and internet sales
-Industry multiplier effect
2:10:25 PM
MR. FUHS moved to slides 5 and 6, titled "State funding
structure" and "Future Outlook." He pointed to statistics
showing that Alaska's oil revenues continued to be the primary
source of funding for the state. He described the details on
the two slides, emphasizing that the President's "Big Beautiful
Bill" will have positive effects on Alaska's economy because of
its emphasis on oil, gas, and mining. The slides read as
follows [original punctuation provided]:
State funding structure
-Oil Revenue $2.5 bn
-Oil based permanent fund draw
-Oil contribution to PFD 2024 $630mn
-Federal medicaid match $634mn
-User fees $1 bn
-Oil pays the bills
Future Outloook
-Oil, gas and mining
-Trump executive order, Drue Pearce
-Big beautiful bill, leases and process
-Supreme court cases, Chevron, 7 counties
infrastructure
-Fish struggling
-Tourism growing
MR. FUHS showed slides 7 and slide 8. Slide 7, titled, "World
Energy Consumption," showed a line graph of world energy
consumption from 1990 projected to 2040. The graph estimated
the use of five types of energy over time: petroleum and other
liquids, natural gas, coal, renewables, and nuclear. He
explained that renewable energy is not a threat to the oil
industry due to the increasing demand for energy. He discussed
the importance of international trade for Alaska gas and showed
slide 8, titled "International Trade Perspective," which read as
follows [original punctuation provided]:
-China #1 Trade partner $1.6bn/yr
-Gasline, sales commitments
-Negative impact of Ukraine sanctions
-Impact of tariff wars
-Rise of BRICS
The international trade issues included the importance of China
as a trade partner, the Northern Trade Route, the need for oil
spill response systems in the Arctic Ocean, and the concerns
about Russia sending oil by the Northern Sea Route.
2:18:08 PM
MR. FUHS showed slide 9, titled "Workforce Development." He
explained that Department of Labor economists consider training
and employing Alaskans to be of primary importance for the
Alaska economy. He emphasized the importance of vocational
training and discussed the following points from the slide
[original punctuation provided]:
-#1 economic development opportunity
-Replace outside labor and increase multiplier effect
on service economy
-Provide hopeful future for our youth
-Responsible school curriculum and
vocational/technical needed
2:20:19 PM
LORNA ORTIZ, PHD, Co-Founder and Chief Commercial Officer (CCO),
GeoKiln Energy Innovation, testified in support of HJR 27. She
described her background and how she became a co-founder of
GeoKiln. She explained that she grew up in Puerto Rico and
compared the energy issues of rural Alaska and Puerto Rico. She
presented a PowerPoint, titled "The Next Energy Revolution:
Clean Hydrogen Directly from Rock." She introduced the
technology of thermally stimulated geologic hydrogen, or
manufactured subsurface hydrogen (MSSH). She described it as
low-cost and scalable. She moved to slide 2, titled "$1.5
Trillion Market Supply is the Constraint" and discussed the
graph which projected the market value and the global hydrogen
market from 2025 to 2050. She elaborated on the following
points from the slide [original punctuation provided]:
-Current methods: too costly or carbon-intensive
-Geologic H2: huge promise but hard to find
-GeoKiln: unlocks H2 with the right rock - reliably
and at scale
2:25:31 PM
DR. ORTIZ moved to the slide 3 and slide 4. Slide 3 illustrated
the differences between natural or white hydrogen and stimulated
hydrogen, also known as manufactured or engineered hydrogen.
She discussed Slide 4, titled "Unlocking Scalable, Net-Positive
Hydrogen with Subsurface Heat," illustrating the MSSH process
and captioned "GeoKiln's Manufactured Subsurface Hydrogen
(MSSHTM) Process places electric heaters into iron-rich rock to
trigger a natural reaction that releases hydrogen." She
described the points on the slide which read as follows
[original punctuation provided]:
-Validated chemistry
-Proven oil & gas process
-No Water Injection
-Intermittent Power
-Proprietary subsurface simulation & engineering 1M
times faster production!
-Energy Positive Process
-Off-the-shelf hardware
-Patent filing in process
2:32:42 PM
DR. ORTIZ showed slide 5, introducing the team that invented the
GeoKiln process. She moved to slide 6, titled "De-Risking
Geologic Hydrogen Through a Phased Early Production System
(EPS)," which described the three phases for retiring specific
subsurface risks for thermal production. These included
validating the geology, validating the productivity, and
monetizing the production. She described a phase 1 project in
Kansas and discussed other potential hydrogen production sites.
She showed slide 7, titled "GeoKiln's Global Partnerships," and
advanced to slide 8, titled "GeoKiln + Alaska: A H2 Opportunity
Built for the Arctic." She emphasized the opportunity for
hydrogen production in Alaska, pointing out the hydrogen-rich
geologic formations, existing infrastructure, extensive well
networks, and a workforce with the applicable skills.
2:39:06 PM
DR. ORTIZ moved to slide 9, titled "For Alaska, In Alaska,
With Alaska," adding context to the details which read as
follows [original punctuation provided]:
Proposed Statutory Framework for Hydrogen and Critical
Mineral Development
Permitting Classification
Authorize hydrogen-dominant projects to be permitted
under existing oil and gas regulatory frameworks, with
resource classification and reserves reporting aligned
to SPE Petroleum Resource Management System (PRMS)
standards for in-situ manufacturing processes; require
projects co-producing hydrogen and critical minerals
to proceed under the Application for Permits to Mine
in Alaska (APMA).
Royalties and State Revenue Treatment
Establish a reduced royalty structure for hydrogen-
dominant production, with state revenue participation
aligned to the Alaska Mining License Tax (7% of net
income), reflecting hydrogen's low environmental
impact; require coproduced hydrogen and critical
minerals to be taxed under AMLT for both production
streams.
State Participation in Appraisal and Demonstration
Authorize state-funded or royalty-offset appraisal
programs to develop shared subsurface maps for
hydrogen and associated iron mineral systems,
validated through drilling; provide cost-sharing and
surface access for early demonstration projects to
accelerate commercial validation and responsible
development.
DR. ORTIZ completed her presentation by pointing out the
benefits of hydrogen development and describing how it could
benefit Alaska. She referred to details on slides 11 and 12
which emphasized the economics, global reach, and high returns
of a GeoKiln investment in Alaska.
2:44:43 PM
DR. ORTIZ responded to a question from Representative Holland
regarding the potential uses of hydrogen energy in Alaska. She
explained that among its many uses, it had maritime uses; it
could be used for ammonia production; and it could be used to
produce electricity and heat.
2:47:48 PM
CO-CHAIR HOLLAND highlighted the increased knowledge and
interest in hydrogen. He described the need to address gaps in
the regulatory framework to enable hydrogen development. He
also pointed out the challenges of energy policy management.
2:49:42 PM
HJR 27 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR 27 - Paul Fuhs Presentation.pdf |
HENE 1/22/2026 1:00:00 PM |
HJR 27 |
| HJR 27 - Geoalaska Supporting Document.pdf |
HENE 1/22/2026 1:00:00 PM |
HJR 27 |
| HJR 27 - Sponsor Statement Ver I, 1.21.26.pdf |
HENE 1/22/2026 1:00:00 PM |
HJR 27 |
| HJR 27 version A.pdf |
HENE 1/22/2026 1:00:00 PM |
HJR 27 |
| HJR 27 - Geokiln Presentation.pdf |
HENE 1/22/2026 1:00:00 PM |
HJR 27 |
| HJR 27 Intro Slides.pdf |
HENE 1/22/2026 1:00:00 PM |
HJR 27 |
| HJR27 - AlaskGeo 2026.01.22.pdf |
HENE 1/22/2026 1:00:00 PM |
HJR 27 |