Legislature(2025 - 2026)BUTROVICH 205
03/19/2025 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s): Regulatory Commission of Alaska | |
| SJR8 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SJR 8 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
March 19, 2025
3:30 p.m.
DRAFT
MEMBERS PRESENT
Senator Cathy Giessel, Chair
Senator Bill Wielechowski, Vice Chair
Senator Matt Claman
Senator Forrest Dunbar
Senator Scott Kawasaki
Senator Shelley Hughes
Senator Robert Myers
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING(S)
REGULATORY COMMISSION OF ALASKA
John Springsteen - Anchorage
Mark A. Johnston - Anchorage
Steven DeVries - Anchorage
- ADVANCED
SENATE JOINT RESOLUTION NO. 8
Relating to strengthening international relations with Taiwan.
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SJR 8
SHORT TITLE: INTERNATIONAL RELATIONS WITH TAIWAN
SPONSOR(s): SENATOR(s) GRAY-JACKSON
02/14/25 (S) READ THE FIRST TIME - REFERRALS
02/14/25 (S) RES
03/19/25 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
JOHN SPRINGSTEEN, Appointee
Regulatory Commission of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified as the governor's appointee to the
Regulatory Commission of Alaska.
MARK JOHNSTON Appointee
Regulatory Commission of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified as the governor's appointee to the
Regulatory Commission of Alaska.
STEVEN DEVRIES, Appointee
Regulatory Commission of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified as the governor's appointee to the
Regulatory Commission of Alaska.
RAY LATCHAM, President
Norgasco Alaska CNG
Anchorage, Alaska
POSITION STATEMENT: Testified in support of the appointees to
the Regulatory Commission of Alaska.
SENATOR ELVI GRAY-JACKSON, District G
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SJR 8.
CLARK BICKFORD, Staff
Senator Gray-Jackson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions on SJR 8.
DANIEL CHEN, Director
Taipei Economic and Cultural Office
Seattle, Washington
POSITION STATEMENT: Testified by invitation in support of SJR 8.
CAMERON CARLSON, Dean
College of Business and Security Management
University of Alaska Fairbanks (UAF)
Fairbanks, Alaska
POSITION STATEMENT: Testified by invitation in support of SJR 8.
EMILY KLOC, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 8.
JEFF CHEN, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 8.
TRACY FAN, representing self
Eagle River, Alaska
POSITION STATEMENT: Testified in support of SJR 8.
KEY MA, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 8.
CALVIN CHANG, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 8.
ACTION NARRATIVE
3:30:11 PM
CHAIR GIESSEL called the Senate Resources Standing Committee
meeting to order at 3:30 p.m. Present at the call to order were
Senators Myers, Kawasaki, Claman, Wielechowski, and Chair
Giessel. Senator Wielechowski arrived immediately thereafter.
Senators Hughes and Dunbar arrived shortly thereafter.
^CONFIRMATION HEARING(S): Regulatory Commission of Alaska
CONFIRMATION HEARING(S): Regulatory Commission of Alaska
3:31:04 PM
CHAIR GIESSEL announced the consideration of the governor's
appointees John Springsteen, Steven DeVries and Mark Johnston to
the Regulatory Commission of Alaska. She briefly reviewed AS
42.04.020 highlighting the following points describing the
requirements for commissioner to the Regulatory Commission of
Alaska:
• The commission has five members appointed by the governor and
confirmed by the legislature in a joint session.
• Commissioners must either be in good standing with the Alaska
Bar Association or hold a degree (or equivalent professional
experience of at least five years) in fields such as
engineering, finance, economics, accounting, business
administration, or public administration.
• Commissioners serve six-year terms.
• The salary for commissioners was increased in recent
legislation and is set at step 27 of the Juneau salary
schedule.
• Commissioners are prohibited from having official connections
to, or financial interests in, public utilities or pipeline
carriers in Alaska.
3:32:05 PM
Senators Hughes and Dunbar arrived.
3:33:39 PM
JOHN SPRINGSTEEN, Appointee, Regulatory Commission of Alaska,
Anchorage, Alaska, testified as one of the governor's appointees
to the Regulatory Commission of Alaska, and that he was
currently serving a term that would end in March 2030.
MR. SPRINGSTEEN began state service in 2014 with the Alaska
Industrial Development and Export Authority (AIDEA), gaining
firsthand experience in rural Alaska, including subsistence
lifestyles, native culture and the challenges around building
local economies, creating job opportunities and overcoming the
high cost of energy. From 2015 to 2019, he served as AIDEA's
Executive Director, where he developed project finance framework
and evaluation processes, evaluated the quality of partners and
appropriate distribution of risks and rewards, supported major
infrastructure and healthcare financing projects for the Yukon-
Kuskokwim Health Corporation in Bethel, advanced the Ambler
Mining District Industrial Access Project, and led efforts to
reduce energy costs in Interior Alaska.
3:35:24 PM
MR. SPRINGSTEEN served as Deputy Commissioner of the Department
of Commerce, Community, and Economic Development, from 2019 to
2021, focusing on economic development and later on
administering COVID-19 relief to small businesses statewide. In
2021, he joined the governor's office as a policy advisor and
liaison to multiple state-owned corporations and authorities,
working broadly on economic development initiatives.
MR. SPRINGSTEEN was appointed to the Regulatory Commission of
Alaska in May 2024 and began serving as a commissioner in July
2024. He said he also served on several public and nonprofit
boards.
3:36:59 PM
MR. SPRINGSTEEN said, prior to state service, he spent two
decades in the private sector as an environmental engineer,
management consultant, economic advisor, and chief financial
officer of a publicly traded natural gas exploration company,
with extensive experience across the energy value chain.
MR. SPRINGSTEEN said he held a civil engineering degree from MIT
and an MBA from Northwestern University's Kellogg School of
Management. He noted his long-term personal ties to Alaska
through raising his family in the state and planning to remain
there permanently.
3:38:50 PM
SENATOR MYERS asked Mr. Springsteen to reflect on his experience
working with an energy company during the deregulation period of
the mid to late 1990s, noting that some states handled
deregulation successfully while others did not. He sought
insights on lessons learned about what makes deregulation
effective or ineffective.
3:39:17 PM
MR. SPRINGSTEEN explained that early energy deregulation was
challenging and experimental. In one case, the utility focused
on serving profitable commercial and industrial customers while
leaving residential service to others. This approach led to
poorly coordinated generation development, weak regulatory
oversight, and ultimately higher costs for residential
consumers. He noted that the client involved continues to
struggle with finding the appropriate balance between regulation
and deregulation.
3:40:27 PM
SENATOR WIELECHOWSKI asked how long Mr. Springsteen had served
on the Regulatory Commission of Alaska.
3:40:34 PM
MR. SPRINGSTEEN said he began in July 2024.
3:40:44 PM
SENATOR WIELECHOWSKI referenced a letter from the Alaska Public
Interest Research Group (AKPIRG) raising concerns about staffing
and leadership at the Regulatory Commission of Alaska. He cited
reported long-term vacancies, declining proposed staffing
levels, high staff turnover, frequent commissioner turnover, and
the expiration of the current chair's term without
reappointment. He asked Mr. Springsteen whether these claims
were accurate and to explain what is happening at the
commission.
3:41:57 PM
MR. SPRINGSTEEN responded that staffing and turnover challenges
at the Regulatory Commission of Alaska (RCA) were similar to
those faced across state government. He said RCA invested in
training and developing staff, but as their skills increased,
some left for higher-paying private-sector jobs or other
positions within state government. He said this created ongoing
difficulties with training and transitions. He emphasized that
the issue was not unique to RCA and compared it to workforce
challenges in rural Alaska, where skilled workers were often
recruited away once they gained valuable experience.
3:43:33 PM
SENATOR WIELECHOWSKI expressed concern about the very high
turnover rate at the Regulatory Commission of Alaska, around 50
percent since 2023, and sought clarification. He said he was
particularly worried about staff leaving for the private sector
and questioned whether adequate ethics rules or safeguards
existed to prevent regulators from seeking or accepting jobs
with industries they oversee while still in regulatory roles.
3:44:16 PM
MR. SPRINGSTEEN acknowledged the presentation of conflict-of-
interest issues. He said there were statutes and regulations in
place barring RCA personnel staff from employment shifts to
regulated entities.
3:44:43 PM
SENATOR WIELECHOWSKI asked whether there was a list available of
the jobs to which approximately 20 former RCA staff member moved
and if that list could be provided to the committee.
3:45:06 PM
MR. SPRINGSTEEN said he would make the request. He said he was
not in an administrative position with RCA but could convey the
request.
3:45:22 PM
CHAIR GIESSEL said the committee would make the request in
writing.
3:45:50 PM
SENATOR CLAMAN asked Mr. Springsteen to share his perspective on
the independence of the Regulatory Commission of Alaska, given
his prior experience in executive branch roles, including with
AIDEA, which has a degree of independence but is part of the
executive branch.
3:46:12 PM
MR. SPRINGSTEEN explained that the [Regulatory Commission of
Alaska] had a unique, quasi-judicial role that required
independence. While personal views may initially influence his
thinking during deliberations, he emphasized that discussions
with fellow commissioners helped reinforce the commission's
proper quasi-judicial role.
3:46:44 PM
SENATOR WIELECHOWSKI noted that in the case of judges, no ex
parte communications were allowed at all. He asked whether
similar exparte rules applied between commissioners and parties
or people trying to influence their decisions.
3:47:07 PM
MR. SPRINGSTEEN explained that the commissioners' goal was to
handle communications publicly and avoid ex parte contacts. He
described receiving an email about a matter not before the
commission and said it was his practice to forward the email,
inform the other commissioners, and properly document the
communication.
3:47:35 PM
SENATOR WIELECHOWSKI asked whether he extended that practice to
legislators or people from the executive branch attempting to
influence his decision-making.
3:47:46 PM
MR. SPRINGSTEEN said he believed the same rules would apply but
deferred to a fellow commissioner with a deep legal background.
3:48:08 PM
CHAIR GIESSEL advanced to testimony by Mark A. Johnston.
3:48:29 PM
MARK JOHNSTON, Appointee, Regulatory Commission of Alaska,
Anchorage, Alaska, said he was appointed to fill the remaining
term of Robert Doyle, expiring March 1, 2028. He moved to Alaska
in 1964, attended local schools and the University of Alaska,
and had been married for nearly 22 years with two children and
four grandchildren.
MR. JOHNSTON said his qualifications included a bachelor's
degree in business administration with an accounting emphasis
from the University of Nevada, over 40 years of experience in
accounting, auditing, finance, insurance, and management,
including 25 years in executive roles as Senior Vice President
or Chief Executive Officer (CEO), and licensure as a Certified
Public Accountant (CPA) in Alaska. He had five years of
regulatory experience, including with the Federal Energy
Regulatory Commission (FERC) and as Director of Finance at the
Alaska Public Utilities Commission (APUC), and over 10 years
consulting for utilities, consumer groups, and the APUC.
MR. JOHNSTON said he was the CEO of two electric utilities
Municipal Light and Power in Alaska and Mountain Parks Electric
Cooperative in Colorado for eight years, gaining experience in
utility management and negotiations, including the sale of
Municipal Light and Power. He emphasized his broad expertise and
readiness to serve the people of Alaska.
3:51:08 PM
SENATOR DUNBAR asked whether Mr. Johnston thought there were any
ongoing challenges from the sale and integration of Municipal
Light and Power with Chugach for Anchorage residents; and
second, what the commissioner saw as the primary challenges or
regulatory issues likely to come before the Regulatory
Commission of Alaska (RCA) in the coming years.
3:51:56 PM
MR. JOHNSTON said the sale of Municipal Light and Power largely
met its intended goals, including staff reductions and
integration savings, but also created challenges, particularly
the debt Chugach incurred to complete the acquisition. He also
said a significant issue was the loss of institutional knowledge
as many retirement-eligible employees left following the merger,
leaving staffing capacity strained. Chugach has also faced
rising costs and declining electric load, though the use of
simplified rate filings is helping reduce regulatory lag in
recovering operating costs.
MR. JOHNSTON identified, natural gas supply as the most critical
regulatory challenge looking forward, especially in Southcentral
Alaska. He said there was no single solution; rather, a mix of
approaches was needed, including energy efficiency, demand-side
management, renewable energy, continued Cook Inlet gas
development, and likely some use of LNG. He cautioned that any
LNG solution must carefully manage capital costs to avoid
excessive sunk investments if a lower-cost North Slope gas
pipeline became available.
MR. JOHNSTON emphasized the broader problem of high energy costs
statewide, particularly in rural communities, which constrained
economic growth. He suggested that potential solutions included
adopting cost-reducing technologies such as cold-climate heat
pumps, expanding renewables, improving transmission through the
Railbelt Transmission Organization, and upgrading infrastructure
to better distribute low-cost power like Bradley Lake
hydropower. Additional opportunities included restoring economy
energy transfers between regions when gas supply allowed and
implementing standardized operating and reliability standards
through the Railbelt Reliability Council to improve efficiency,
safety, and affordability.
4:00:06 PM
SENATOR CLAMAN asked Mr. Johnston to share his perspective on
the independence of the RCA.
4:00:14 PM
MR. JOHNSTON asserted that the commission operated independently
as authorized by statute and was not influenced by industry,
legislators, or the administration, despite receiving inquiries
from them. He said such inquiries were addressed, but the
commission made a concerted effort to ensure they do not affect
adjudicatory decision-making. He emphasized adherence to ex
parte communication rules, citing an example in which
commissioners visited a utility's facilities only after clearly
stating that no pending matters could be discussed and then
fully disclosing the contact through required filings. He
expressed confidence that the legislature has granted the
commission independence and that it actively exercised that
independence in practice.
4:01:38 PM
SENATOR MYERS asked whether the simplified rate filing process,
which has been advantageous for Chugach but would require
statutory changes, could also be beneficial if applied to
industries beyond the electric sector.
4:02:01 PM
MR. JOHNSTON said a simplified rate filing process could be
applied to other industries, provided there were appropriate
safeguards. He noted that existing revenue limits, many set in
1995, were outdated and could be revised to reflect current
costs, enabling smaller utilities to opt for deregulation or a
simplified rate process. However, he stressed the importance of
maintaining regulatory oversight, explaining that full rate
cases allow for greater scrutiny by commission staff and other
stakeholders, including customers. Under a simplified system,
limits such as capped annual and multi-year rate increases would
remain, with larger increases triggering a full rate case to
ensure adequate review and protection of the public interest.
4:03:52 PM
CHAIR GIESSEL advanced to testimony by Steven DeVries.
4:04:07 PM
STEVEN DEVRIES, Appointee, Regulatory Commission of Alaska,
Anchorage, Alaska, outlined his qualifications and extensive
legal experience, emphasizing over 30 years with the Alaska
Department of Law and membership in good standing with the
Alaska Bar Association. He said he represented numerous state
agencies and spent more than a decade as public advocate before
the Regulatory Commission of Alaska (RCA), gaining deep
familiarity with its duties and procedures, including during the
transition from the Alaska Public Utilities Commission (APUC) to
the RCA. After additional leadership roles, including
supervising regulatory affairs and serving as Civil Division
Director until retiring in 2018, he was asked to return to
public service, which he described as an honor. He highlighted
the professional fulfillment of protecting consumers while
ensuring utilities functioned effectively, expressed gratitude
for the opportunity to serve as a decision-maker, and requested
endorsement for confirmation, briefly sharing his personal
background and willingness to answer questions.
4:07:51 PM
SENATOR DUNBAR asked whether Mr. DeVries had additional comments
regarding the sale and integration of Municipal Light and Power
with Chugach; and second, what he saw as potential challenges or
regulatory issues likely to come before the Regulatory
Commission of Alaska (RCA) in the coming years.
4:08:08 PM
MR. DEVRIES identified two major challenges facing the RCA:
• First, he said the looming gas supply shortfall, which
threatened the ability of Railbelt utilities and Enstar to
meet demand had broader statewide consequences, as higher
Railbelt energy costs directly reduced Personal Consumption
Expenditure (PCE) subsidies for high-cost rural communities.
• Second were Railbelt transmission issues, where he said recent
legislative tools such as eliminating wheeling charges or
pancake rates, were seen as important mechanisms to improve
economic dispatch and ensure that energy could be delivered
efficiently where it was needed.
4:09:57 PM
SENATOR CLAMAN asked Mr. DeVries to share his perspective on the
independence of the RCA.
4:10:06 PM
MR. DEVRIES emphasized that the commission operated
independently and was not influenced by outside parties. During
active adjudications, he said commissioners were strictly
prohibited from discussing open cases with anyone outside the
commission, consistent with confidentiality and ethics
requirements, and only communicated about such matters with
commission staff and fellow commissioners.
4:10:42 PM
SENATOR WIELECHOWSKI thanked the commissioners for their service
and qualifications. He then expresses concern about high staff
turnover and unfilled positions at the RCA. He emphasized the
commission's critical role and significant impact on Alaskans'
lives, noting that it was often underappreciated. He asked for
the appointees' thoughts on how to address the staffing and
retention challenges.
4:11:38 PM
MR. DEVRIES expressed his hope that the current appointments
would strengthen mentoring at the RCA and improve support for
staff. He acknowledged this may not significantly resolve the
retention challenges. He explained that the commission's
staffing difficulties mirrored those faced statewide,
particularly competition from private industry offering better
compensation, a long-standing issue. He emphasized creating a
collegial and supportive work environment, and commended staff
for handling heavy workloads exacerbated by vacancies and noted
that having a full complement of five commissioners would reduce
workload strain and allow experienced commissioners to better
mentor less experienced staff. However, he concluded that these
steps were not a complete solution and that addressing systemic
vacancy and retention issues would likely require action by the
legislature.
4:14:22 PM
SENATOR WIELECHOWSKI noted legislative effort and asked how the
Regulatory Commission of Alaska (RCA) envisioned its role in
addressing two major energy challenges: the gas supply shortfall
and the integration of more renewable energy onto the grid. He
asked whether the commission saw itself as primarily reactive,
responding to applications as they come, or more proactive,
actively encouraging and guiding stakeholders to address these
issues.
4:15:10 PM
MR. DEVRIES explained that the commission was primarily reactive
due to jurisdictional limits. He noted RCA could only act within
the powers granted by law. He said most of its work involved
reviewing filings, petitions, and tariffs submitted by
utilities. He said the commission did engage in community
outreach and public meetings to gather information and ask
utilities about their plans, allowing for limited proactive
engagement.
4:16:22 PM
MR. DEVRIES responded that, regarding the natural gas issue, the
commission had minimal authority. RCA could not manage
production, negotiate supply contracts, or oversee wells because
those roles fell to agencies like DNR and Alaska Oil and Gas
Conservation Commission (AOGCC). He said RCA only reviewed gas
supply contracts after utilities negotiated them, so its tools
for addressing gas supply challenges were limited.
4:17:28 PM
SENATOR WIELECHOWSKI noted that RCA-related bills came before
the committee occasionally and that the state sometimes provided
financing or tax incentives for developments, such as for
independent power producers or infrastructure. He cited the Fire
Island undersea cable. He asked whether the RCA considered these
contributions when assessing rate fairness. He recalled that he
had advocated for passing any savings to consumers and inquired
whether RCA could do so under current authority or if they would
need additional statutory power.
4:18:13 PM
MR. DEVRIES said savings from state-funded infrastructure were
effectively passed on to consumers because utilities cannot
include the cost of grant-funded assets, such as an undersea
cable, in their rate base. He explained that utilities may
recover ongoing operational expenses through rates, but the
capital cost of the asset itself would be excluded. He noted
however, that when grant funding supported an independent power
producer (IPP) that sold electricity to a regulated utility, the
situation differed, as consumer rates were influenced by the
negotiated power purchase agreement between the utility and the
producer, which the RCA then reviewed for reasonableness.
4:19:20 PM
SENATOR WIELECHOWSKI said recent legislation included a
requirement to pass IPP tax break savings on to consumers and
was later removed. He asked whether reinstating such a
requirement would require a statutory change.
4:19:41 PM
MR. DEVRIES said he thought so, but would need more information
about the exact scenario suggested to offer an opinion.
4:19:56 PM
SENATOR CLAMAN revisited concerns about hiring and retention at
the RCA and asked whether the commissioners had the authority
and capacity to research comparable salary levels and formally
request legislative consideration of staff pay increases as part
of managing an independent agency.
4:20:34 PM
MR. DEVRIES said he was unsure whether the RCA could formally
pursue salary changes, noting he had only been on the commission
for four months and that administrative matters were handled by
the chair. He acknowledged that higher salaries would likely
improve recruitment and retention but did not know how such
changes would be implemented. In the meantime, he said the
agency was trying to be creative within existing constraints,
including implementing flexible, tiered positions that allowed
staff to be hired at entry levels and promoted internally as
they gained experience.
4:22:36 PM
SENATOR CLAMAN observed that, because the RCA was intended to be
independent, the legislature may not be well positioned to
proactively assess or intervene in staff salary levels, nor
would that typically fall to another executive branch entity. He
suggested that commissioners themselves might consider
evaluating whether compensation was affecting recruitment and
retention and whether it was within their authority, as a
potential tool to address staffing challenges. The speaker
emphasizes that maintaining a well-functioning RCA staff is
essential to protecting Alaskan consumers.
4:23:40 PM
CHAIR GIESSEL opened public testimony on the governor's
appointees to the Regulatory Commission of Alaska.
4:24:05 PM
RAY LATCHEM, President, Norgasco LLC, Anchorage, Alaska,
testified in support of the appointees to the Regulatory
Commission of Alaska. He praised their qualifications and the
importance of having competent people on the commission.
4:26:38 PM
CHAIR GIESSEL closed public testimony on the governor's
appointees to the Regulatory Commission of Alaska and solicited
a motion.
4:26:44 PM
SENATOR WIELECHOWSKI stated that in accordance with AS
39.05.080, the Senate Resources Standing Committee reviewed the
following and recommends the appointments be forwarded to a
joint session for consideration:
Regulatory Commission of Alaska
John Springsteen - Anchorage, Alaska
Steven DeVries - Anchorage, Alaska
Mark Johnston - Anchorage, Alaska
SENATOR WIELECHOWSKI reminded members that signing the report(s)
regarding appointments to boards and commissions in no way
reflects individual members' approval or disapproval of the
appointees; the nominations are merely forwarded to the full
legislature for confirmation or rejection.
4:27:07 PM
CHAIR GIESSEL thanked the appointees for their service and for
the qualifications they brought to the commission. She noted
changes to the statute identifying the qualifications and the
pay scale for these positions and expressed hope that qualified
applicants would continue to apply and serve.
SJR 8-INTERNATIONAL RELATIONS WITH TAIWAN
4:27:55 PM
CHAIR GIESSEL announced the consideration of SENATE JOINT
RESOLUTION NO. 8 Relating to strengthening international
relations with Taiwan. She invited the sponsor and her staff to
present the resolution.
4:28:21 PM
SENATOR ELVI GRAY-JACKSON, District G, Alaska State Legislature,
Juneau, Alaska, introduced SJR 8:
[Original punctuation provided.]
Senate Joint Resolution 8 reaffirms Alaska's
commitment to strengthening its relationship with
Taiwan, highlighting the deep economic, cultural, and
educational ties between the two nations. Taiwan is a
key economic partner for Alaska, ranking as the
state's eighth-largest export market in 2023 and
fourth-largest market in Asia. The resolution
emphasizes the importance of expanding trade
relations, particularly in Alaska's seafood industry,
which benefits from Taiwan's high-quality seafood
market.
In 1989, the first Alaska-Taiwan trade office opened
in Taipei. The trade office was a success in promoting
international trade and growth between Alaska and
Taiwan. The organization worked to promote trade and
cultural contacts between residents of Alaska and
Taiwan, and this proposed legislation before us today
would promote the same meaningful relationship. Taiwan
is a country with a voracious appetite for natural
resources, fish, timber, oil, and many other resources
that Alaska has on abundance. In 1988, before the
trade office was established, sales of fish products
were only $300,000 annually. After the office was
established, the sale of seafood between Alaska and
Taiwan rose to $6 million annually, confirming that
the presence of an Alaskan trade office will help with
the promotion of Alaska's current abundant resources.
4:30:06 PM
SENATOR GRAY-JACKSON continued to introduce SJR 8.
Alaska and Taiwan have a long history of cultural and
educational exchanges, with sister-city partnerships
between Fairbanks and Tainan City, Juneau and Chiayi
City, and Anchorage and Taipei City. Reestablishing an
Alaska Trade Office in Taiwan would further strengthen
these connections and create a foundation for
collaboration in technology, international seafood
sales, education, tourism, and much more.
SJR 8 supports Taiwan's efforts in maintaining a
strong relationship with the State of Alaska.
4:30:50 PM
CLARK BICKFORD, Staff, Senator Gray-Jackson, Alaska State
Legislature, Juneau, Alaska, said he was available to answer
questions on SJR 8.
4:31:22 PM
CHAIR GIESSEL announced invited testimony on SJR 8.
There was a period of technical difficulty with the testifiers'
connections.
4:32:46 PM
DANIEL CHEN, Director, Taipei Economic and Cultural Office,
Seattle, Washington, testified by invitation in support of SJR
8. He thanked Senator Gray-Jackson for introducing SJR 8 and for
her research in Taiwan to identify opportunities for cooperation
with Alaska. He emphasized the long-standing relationship
between Alaska and Taiwan, including the sister-state
relationship established in 1988 and city partnerships between
AnchorageTaipei, FairbanksTainan, and JuneauChiayi.
MR. CHEN said Taiwan was Alaska's largest export destination as
of 2023 and ranked fourth in the Indo-Pacific, with total
bilateral trade of approximately $188 million. He outlined
several areas where Taiwan can further support Alaska's economy:
• Energy cooperation: Alaska's natural gas resources align with
Taiwan's efforts to strengthen energy resilience and
diversification. He noted that discussions were already
underway regarding LNG exports to Taiwan.
• Seafood exports: Taiwan imported $1.9 billion in seafood in
2023, but the United States ranks only 10th as a supplier,
with about 1.5 percent market share. Alaska's premium seafood
presents significant growth potential.
• Technology and innovation: Taiwan's Smart City and AI
initiatives create opportunities for collaboration in digital
infrastructure, urban efficiency, and innovation.
• Education exchanges: Taiwan's globally recognized advanced
technology education system offers strong potential for
expanded educational exchange programs with Alaska.
• Tourism and cultural exchange: Post-COVID growth in U.S.
Taiwan tourism, including new SeattleTaipei direct flights,
opened opportunities to increase tourism to Alaska.
4:36:37 PM
MR. CHEN urged that reopening an Alaska trade office in Taiwan
would deepen economic ties, build on existing trade performance,
and provide access to broader Asia-Pacific markets, including
Indonesia and the Philippines. He cited examples from other
states: Idaho, Wyoming, and Montana, showing significant export
growth after establishing or reopening trade offices in Taiwan.
MR. CHEN concluded by committing continued support from his
Seattle-based team to work with Alaska state government and
stakeholders to reopen the Alaska trade office in Taiwan,
strengthen small business connections, and expand economic
opportunities.
4:39:45 PM
CAMERON CARLSON, Dean, College of Business and Security
Management, University of Alaska Fairbanks (UAF), Fairbanks,
Alaska, testified by invitation in support of SJR 8, which he
said aimed to strengthen Alaska's economic and trade
relationship with Taiwan. He described how the College of
Business and Security Management (CBSM) was actively advancing
this goal through efforts to establish a partnership with the
National Kaohsiung University of Science and Technology (NKUST),
specifically its Colleges of Management and Marine Commerce.
MR. CARLSON said the proposed partnership would focus on
educational and research collaboration in business and marine
commercesectors central to Alaska's economic future and its
trade relationship with Taiwan. He emphasized that this
initiative would go beyond academic exchange and reflected
Alaska's broader commitment to building meaningful, long-term
international partnerships that could support trade and
investment growth.
He underscored Taiwan's importance to Alaska's economy, noting
that in 2023, Taiwan was Alaska's eighth-largest export market
and the fourth largest in Asia, with the seafood industry
standing to benefit significantly from expanded trade. He said
reopening an Alaska trade office in Taiwan was a key opportunity
to enhance trade, as well as economic and cultural exchange.
He noted that SJR 8 was timely given shifting global supply
chains and the growing importance of partnerships with reliable
trade partners. He said Taiwan's track record in responsible
global trade, combined with expanded educational exchanges and
joint research, would support workforce development and
reinforce Alaska's leadership in maritime commerce and
international business.
He concluded that the CBSMNKUST partnership was a concrete
example of AlaskaTaiwan engagement, and that SJR 8 would
strengthen the foundation for deeper educational, cultural, and
economic ties and increased mutual trade and investment.
4:43:00 PM
CHAIR GIESSEL closed invited testimony and opened public
testimony.
4:43:44 PM
EMILY KLOC, representing self, Anchorage, Alaska, urged the
committee to pass SJR 8, emphasizing that both Alaska and Taiwan
stood to benefit from expanded trade and educational exchanges.
She expressed concern about the impacts of global trade
negotiations on Alaska's economy and argued that resuming an
Alaska trade office in Taiwan would help mitigate those effects.
She said increased trade with Taiwan could help lower the cost
of goods for Alaskans and noted that the Alaska seafood industry
would benefit from a stronger trade relationship. She strongly
encouraged the committee to support SJR 8.
4:45:10 PM
JEFF CHEN, representing self, Anchorage, Alaska, testified in
support of SJR 8. As a multimedia producer, small business
owner, and former Anchorage Sister Cities commissioner, he
emphasized the mutual benefits Alaska and Taiwan could gain
through expanded trade, education, tourism, and cultural
exchange. He cited examples of cooperation, including
facilitating critical PPE shipments from Taiwan to Alaska during
the pandemic and U.S. vaccine assistance to Taiwan. He
highlighted personal and cultural ties between Alaska and
Taiwan, and current trade as well as potential for the future.
He advocated for establishing an Alaska trade office in Taiwan,
restoring direct flights, and expanding cultural exchanges,
concluding that closer ties with Taiwan would help Alaska build
economic opportunity and democratic partnerships across the
Pacific.
4:48:20 PM
TRACY FAN, representing self, Eagle River, Alaska, testified in
support of SJR 8. She said increased trade and cultural exchange
between Alaska and Taiwan would be mutually beneficial. She
expressed particular interest in restoring direct flights
between Alaska and Taiwan to strengthen traditional, economic,
and cultural ties, and thanked the committee for considering her
testimony.
4:49:33 PM
KEY MA, representing self, Anchorage, Alaska, testified in
support of SJR 8. Drawing on 30 years of aviation experience, he
emphasized Alaska's strategic geographic position for trans-
Pacific aviation and noted existing connections between Alaska
Airlines and Taiwan through Starlux. He argued that establishing
direct flights to Taiwan would significantly strengthen business
ties with Taiwan and Asia more broadly and expressed strong
support for advancing Alaska's aviation role.
4:51:10 PM
CALVIN CHANG, representing self, Anchorage, Alaska, testified in
support of SJR 8. He noted that he was an Alaska resident of
Taiwanese descent and stated that strengthening ties between
Alaska and Taiwan would be mutually beneficial, particularly
through expanded tourism and trade. He concurred with previous
testimony that direct flights would be very convenient. He
expressed appreciation for SJR 8 and for the opportunity to
provide testimony.
4:52:31 PM
CHAIR GIESSEL closed public testimony on SJR 8.
4:52:40 PM
SENATOR DUNBAR referenced a discussion earlier that day with the
Department of Transportation and Public Facilities (DOTPF) about
restoring direct flights to Asia. He said DOTPF leadership
expressed doubts about sufficient market demand. He argued that
decisions should consider broader economic, trade, and strategic
benefits beyond passenger numbers, such as time savings and
stronger international connections. He asked whether direct
flights to Asia, including Taipei, were encompassed within the
resolution's goals for economic and trade partnerships, and
whether the resolution could be shared with airport directors to
support those efforts.
4:53:49 PM
SENATOR GRAY-JACKSON concurred.
4:53:58 PM
SENATOR KAWASAKI referred to SJR 8, page 3, lines 1 through 3,
and asked for clarification on the fourth "further resolved"
clause of SJR 8, specifically whether it referred to any trade
or tax agreement currently under consideration in Congress. He
noted the provision seemed vague and sought more specificity on
what agreements were being contemplated.
4:54:28 PM
MR. BICKFORD expressed appreciation for the inquiry and
committed to a prompt answer following the meeting.
4:54:53 PM
CHAIR GIESSEL held SJR 8 in committee.
4:55:14 PM
There being no further business to come before the committee,
Chair Giessel adjourned the Senate Resources Standing Committee
meeting at 4:55 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SJR 8 Sponsor Statement .pdf |
SRES 3/19/2025 3:30:00 PM |
SJR 8 |
| SJR008A.pdf |
SRES 3/19/2025 3:30:00 PM |
SJR 8 |
| Title 42 Chapter 4.pdf |
SRES 3/19/2025 3:30:00 PM |
|
| John Springsteen RCA Resume_Redacted.pdf |
SRES 3/19/2025 3:30:00 PM |
|
| Steven Devries RCA Resume_Redacted.pdf |
SRES 3/19/2025 3:30:00 PM |
|
| Mark Johnston RCA Resume_Redacted.pdf |
SRES 3/19/2025 3:30:00 PM |