Legislature(2025 - 2026)BELTZ 105 (TSBldg)
01/27/2026 03:30 PM Senate STATE AFFAIRS
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Overview: Alaska Industrial Development and Export Authority (aidea) Update on Current Projects and External Report. | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
JANUARY 27, 2026
3:33 P.M.
MEMBERS PRESENT
Senator Scott Kawasaki, Chair
Senator Jesse Bjorkman, Vice Chair
Senator Bill Wielechowski
Senator Cathy Tilton
Senator Elvi Gray-Jackson (via teleconference)
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW: ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY
(AIDEA) UPDATE ON CURRENT PROJECTS AND EXTERNAL REPORT.
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
GEOFF JOHNS, Chief Investments Officer
Industrial Development and Export Authority (AIDEA)
Anchorage, Alaska
POSITION STATEMENT: Presented an update from AIDEA.
JEFFREY SAN JUAN, Infrastructure Development Program Manager
Alaska Industrial Development Export Authority (AIDEA)
Anchorage, Alaska
POSITION STATEMENT: Answered questions on the annual report.
KENT SULLIVAN, General Counsel
Industrial Development and Export Authority (AIDEA)
Anchorage, Alaska
POSITION STATEMENT: Answered questions on legal inquiries.
ACTION NARRATIVE
3:33:24 PM
CHAIR KAWASAKI called the Senate State Affairs Standing
Committee meeting to order at 3:33 p.m. Present at the call to
order were Senators Bjorkman, Wielechowski, Tilton and Chair
Kawasaki. Senator Gray-Jackson joined via teleconference.
^OVERVIEW: ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY
(AIDEA) UPDATE ON CURRENT PROJECTS AND EXTERNAL REPORT.
OVERVIEW: ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY
(AIDEA) UPDATE ON CURRENT PROJECTS AND EXTERNAL REPORT.
3:34:02 PM
CHAIR KAWASAKI announced an overview from Alaska Industrial
Development and Export Authority (AIDEA).
3:34:53 PM
GEOFF JOHNS, Chief Investments Officer, Industrial Development
and Export Authority (AIDEA), Anchorage, Alaska, presented an
update from AIDEA.
3:35:50 PM
MR. JOHNS moved to slide 6, About AIDEA, and stated that Alaska
Industrial Development and Export Authority (AIDEA) is the State
of Alaska's development finance authority. Its mission is to
promote economic development, create and retain jobs within the
state, and support in-state projects. Established by the
legislature, AIDEA finances development projects and business
lending, primarily using its own pledged resources, including a
revolving fund and, when necessary, externally managed
investments subject to its investment policies.
3:36:32 PM
MR. JOHNS moved to slide 7, Financial Toolbox, and stated that
Alaska Industrial Development and Export Authority (AIDEA) uses
two primary financing tools. The Loan Participation Program
(LPP) allows AIDEA to purchase up to 90 percent of a loan, up to
$25 million, with 1525-year terms. The program supports banks,
extends repayment schedules, and lowers payments for Alaska
businesses. The Direct Finance Program (AS 44.88.172) funds
large infrastructure and long-term revenue-generating assets
that fall outside conventional lending. Projects move through
feasibility, due diligence, risk review, and board approval.
AIDEA also issues conduit revenue bonds, where AIDEA acts only
as a facilitator, plus smaller programs such as the Small
Business Economic Development Fund (SBED).
3:39:26 PM
MR. JOHNS moved to slide 14, Small Business Economic Development
(SBED), and stated that SBED supports startup and expansion
projects that create long-term jobs in Alaska communities. In
December 2025, SBED was recapitalized to $6 million using funds
from AIDEA's revolving fund and the Rural Development Initiative
Fund (RDIF). He said the funding is expected to support 2530
loans and about 120 jobs, preventing a lending pause that could
have lasted up to nine months.
3:40:40 PM
MR. JOHNS moved to slide 13, Rural Development Initiative Fund
(RDIF), and stated that RDIF supports small businesses in remote
Alaska communities with populations under 5,000 off the road
system or 2,000 on the road system. He said statutory limits,
geographic restrictions, lower loan caps, and higher interest
rates make the program less utilized than SBED. Together, the
programs hold over 60 loans, about $14.5 million outstanding, an
average loan of $225,000, and 0 percent delinquency.
3:41:39 PM
MR. JOHNS moved to slide 17, Loan Participation Program
Spotlight, and stated that since 1997, AIDEA has paid over $520
million in total dividends to the state. The Board recently
approved a $17 million dividend for Fiscal Year 2025, payable in
Fiscal Year 2027 due to a two-year lag, like the $11 million
paid this year from the Fiscal Year 2023 declaration. He said
these dividends serve as a direct mechanism to transfer
investment success to Alaska's general fund. Furthermore,
AIDEA's net position grew by approximately $69.5 million in
Fiscal Year 2025, reaching roughly $1.5 billion.
3:43:32 PM
MR. JOHNS moved to slides 24 and 25, Ambler Access Project, and
stated that the Ambler Access Project is a proposed 211-mile
industrial road connecting the Dalton Highway to the Ambler
Mining District. Designed to unlock copper, zinc, and critical
minerals like gallium, the project is forecasted to create over
3,000 construction jobs and 140 annual operations jobs. Ambler
Access Project is estimated to generate 193 million dollars for
local communities and approximately 1 billion dollars for the
state. Following the 2025 reinstatement of federal approvals,
AIDEA is planning extensive field work, supported by over 100
million dollars in board-approved financing and a 30-million-
dollar reimbursement commitment from Ambler Metals.
3:45:44 PM
CHAIR KAWASAKI referred to slide 24, Ambler Access Project and
asked if the Ambler Mine Road was fully permitted.
3:46:16 PM
MR. JOHNS deferred the question to Mr. San Juan.
3:46:31 PM
JEFFREY SAN JUAN, Infrastructure Development Program Manager,
Alaska Industrial Development Export Authority (AIDEA),
Anchorage, Alaska, answered questions on the annual report. He
responded that all federal permits have been secured, and the
state permits are currently being finalized. The team
anticipates having all necessary rights-of-way permits for both
levels of government completed shortly.
3:47:10 PM
CHAIR KAWASAKI asked whether the 211-mile industrial road is
open to the general public or is access restricted to specific
commercial vehicles.
3:47:38 PM
MR. SAN JUAN replied that the permits state the road will remain
a private industrial access road only.
3:47:58 PM
CHAIR KAWASAKI asked whether the Ambler Mine Road would operate
similar to the private 40 mile Pogo Mine Road where permitted
access is available.
MR. SAN JUAN replied that the Ambler Mine Road differs because
the Pogo Mine Road includes a public segment, and the Pogo Mine
Road will become fully public once the mine is completed.
3:49:29 PM
CHAIR KAWASAKI asked if Ambler Metals controls the road or
right-of-way. He asked whether other companies could access the
road for nearby projects, like shared road use among operators
on the North Slope, or would it limit outside development.
3:50:17 PM
MR. SAN JUAN replied that the Ambler Road follows the model of
the DeLong Mountain Transportation System (Red Dog), designed to
serve multiple mines with shared access. AIDEA owns and manages
the corridor, holds permits to provide access, and can contract
with different operators. He said users pay to use the road,
ensuring coordinated access and revenue under a single
management structure.
3:51:42 PM
SENATOR BJORKMAN asked about the current position of NANA
Regional Corporation on the Ambler Road, given its prior support
and more recent opposition.
3:52:13 PM
MR. SAN JUAN responded that discussions with NANA Regional
Corporation have resumed following right-of-way permits. He said
efforts focus on securing a winter access agreement and
rebuilding the relationship through increased outreach and
engagement.
3:53:03 PM
MR. JOHNS moved to slides 26 and 27, West Susitna Access
Project, and stated that the road aims to provide reliable,
managed access to a resource-rich region, reduce logistics
barriers, and encourage investment. As of July 2025, the project
remains in early permitting with a Section 404 application to
the U.S. Army Corps of Engineers. He said AIDEA plans an
industrial toll road model, like the DeLong Mountain system,
where users cover most construction and maintenance costs.
3:54:22 PM
MR. JOHNS moved to slides 22-23, 1002 Leases Alaska National
Wildlife Reserve (ANWR), and stated that Section 1002 covers
about 1.5 million acres in the ANWR designated for potential oil
and gas development. He said AIDEA holds over 300,000 acres of
federal coastal plain leases with 10-year terms from the 2021
Bureau of Land Management (BLM) lease sale. Following legal and
administrative actions in 2025, AIDEA's leases were reinstated,
and it paid nearly $11 million, split 50/50 with the state,
shifting to 70 percent state and 30 percent federal in FY2034.
He said pre-development seismic permitting has begun, with 3D
seismic work expected to start within a year.
3:56:03 PM
CHAIR KAWASAKI noted that in 2018, about 20 parcels were offered
in the lease sale. AIDEA acquired several, while the remaining
parcels went to private holders. He asked what became of those
privately held leases.
3:56:35 PM
MR. JOHNS replied that when AIDEA's leases were canceled in mid-
2020, the two private leaseholders returned their leases to BLM
and likely received their bonus bid payments. He said AIDEA
considers these leases to have significant resource potential
and may seek board approval to bid on them in a future sale.
3:57:37 PM
MR. JOHNS moved to slides 32 and 33, Red Dog Road and Port
Delong Mountain Transportation System (DMTS), and stated that
the DMTS is a 52-mile road and port system financed by AIDEA
that enabled the Red Dog Mine in the Northwest Arctic Borough.
DMTS includes a haul road, port, fuel storage, and utilities,
supporting roughly 500 direct and 1,100 indirect jobs. He said
the mine generates over $150 million in annual wages, more than
half of local hires being NANA shareholders, $300 million in
borough revenue, $50 million in the Village Improvement Fund
since 2018, and over $2 billion in royalties. He stated that
total state taxes exceed $1 billion. The mine's current life
ends around 2031, though additional reserves on state land may
extend operations.
3:59:58 PM
CHAIR KAWASAKI noted that slide 32 says there are about 1,000
NANA shareholders. He asked what percentage of the Red Dog
Mine's workforce is local or Alaska-based.
4:00:21 PM
MR. JOHNS replied that he doesn't have the breakdown though he
can get back to the committee with the information.
CHAIR KAWASAKI noted the touted economic impact of Red Dog and
the projected benefits of Ambler. He asked if AIDEA board
members would require Ambler Metals and others involved in the
project to commit to local hiring.
4:01:32 PM
MR. SAN JUAN replied that for the Ambler project, the reported
economic activity applies to the road, while most jobs come from
the mines. Ambler Metals' partnership with NANA Regional
Corporation includes a preferential hiring target for NANA
shareholders. He said AIDEA does not set hiring preferences as a
state agency.
4:02:29 PM
CHAIR KAWASAKI referenced slide 24, with a subsection titled
"Road Construction and Operations," which lists 360 direct jobs
for road construction and 81 annual jobs for operations and
maintenance. He asked if there is a commitment to prioritize
local or Alaskans for these positions.
4:02:56 PM
MR. SAN JUAN deferred the question to Mr. Sullivan.
4:03:08 PM
KENT SULLIVAN, General Counsel, Industrial Development and
Export Authority (AIDEA), Anchorage, Alaska, answered questions
on legal inquiries. He replied that AIDEA cannot require
preferential hiring as a state entity. However, on lands owned
by NANA Regional Corporation or Doyon Limited, those entities
may apply shareholder hiring preferences for work on their
lands.
CHAIR KAWASAKI noted that AIDEA was created to diversify
Alaska's economy and support in-state jobs. He asked whether
that goal still guides AIDEA's decisions on loans, bonds, and
other financing.
4:05:21 PM
MR. SULLIVAN replied yes. He said that job creation, workforce
location, and company origin are key factors in AIDEA's
evaluation of projects and financing decisions and remain a
central part of its process.
4:05:54 PM
CHAIR KAWASAKI asked if AIDEA is unable to require or prioritize
hiring Alaskans as a condition of loans, bonds, or other
financing.
4:06:32 PM
MR. SULLIVAN replied that AIDEA may apply Alaska hire
preferences in some contracts, though not shareholder
preferences. AIDEA evaluates projects based on total job
creation, wages, and the balance of in-state and out-of-state
hires.
4:08:02 PM
SENATOR BJORKMAN asked Mr. San Juan if he could explain how the
economics of the Red Dog Mine would change as operations move
from the current site to state land.
4:08:25 PM
MR. San Juan replied that AIDEA has an agreement with Red Dog
Mine, who in turn has a 50-year agreement, that started in 1990,
with Teck Resources, that guarantees a minimum annual payment
regardless of mine activity. He said additional revenue depends
on zinc prices and shipment tonnage, ensuring continued payments
through 2040.
4:09:54 PM
MR. JOHNS moved to slides 28-29, Interior Gas Utility, and
stated that the Interior Gas Utility expands natural gas supply,
storage, and distribution to lower energy costs in the Fairbanks
and North Pole areas. AIDEA has provided $139 million in
support. LNG deliveries began in October 2025, with truck
deliveries averaging about 70,000 gallons daily since December.
He said the system serves around 3,600 customers over 230 miles
and improves air quality by reducing particulate emissions.
4:11:22 PM
MR. JOHNS moved to slides 34-35, Ketchikan Shipyard, and stated
that the shipyard is AIDEA-owned that supports the Alaska Marine
Highway and other maritime work, keeping jobs and spending in-
state. In September 2025, operations shifted to JAG Alaska,
increasing activity and growing the workforce from about 15 to
150, with a strong project backlog. He said training programs
are also expanding to address workforce shortages in maritime
trades.
4:12:42 PM
MR. JOHNS moved to slides 30-31, Alyeschem: Powering Alaska's
Future with Innovation and Opportunity, and stated that the
Alyeschem North Slope plant is a first-of-its-kind public-
private project near Deadhorse, Alaska. He said the plant is
producing about 750 barrels per day of methanol and 1,3001,400
barrels of ultra-low sulfur diesel. The plant will replace
imports, lower costs, reduce logistics risks, and support oil
production. He said AIDEA is providing up to $70 million in
financing, converting to a long-term loan with royalty-style
payments. The project remains on schedule, with completion
expected in early 2027.
4:15:05 PM
MR. JOHNS moved to slide 36, HEX Furie: A Year of Strategic
Success in 2025 and stated that AIDEA has recently closed and
funded a $50 million revolving credit facility to support Cook
Inlet gas production by Hex/Fury Operating Alaska. The effort
aims to grow supply from about 7.5 percent to over 10 percent,
with potential for 15 percent, while increasing Alaska-based
employment.
4:16:41 PM
MR. JOHNS noted that AIDEA owns the FedEx MRO facility at Ted
Stevens Anchorage International Airport, a revenue-generating
asset leased since 1995. The facility produces about $1.7
million annually, supports 5060 skilled jobs, and recently
received a $3 million roof upgrade to maintain the facility.
4:17:34 PM
MR. JOHNS stated that AIDEA owns a U.S. Coast Guard facility at
Joint Base Elmendorf-Richardson that generates over $1 million
annually, which is fixed through 2043. The project was completed
ahead of schedule and under budget, created about 80
construction jobs, and supports over 100 Coast Guard positions.
4:18:16 PM
MR. JOHNS discussed a few projects that are not represented in
the annual report. He said AIDEA financed $8.5 million toward a
$45 million Alaska Blood Bank facility in Anchorage, supporting
about 130 construction jobs and 230 total jobs, and provided
relief during COVID-19 to maintain services. He said AIDEA also
supported development at Icy Strait Point through a $30+ million
financing package, helping expand tourism infrastructure,
attract about 500,000 annual visitors, and support local
employment in Hoonah.
4:20:11 PM
MR. JOHNS stated that was the conclusion of the annual report
and moved on to the executive summary.
4:20:47 PM
MR. SULLIVAN stated that the Ambler Access Project involves a
211-mile private industrial road crossing NANA Regional
Corporation and Doyon Limited lands, where protection of
subsistence use requires private access. He said multiple
stakeholders, including mining companies and regional
corporations, expect shared ownership or governance rather than
a single owner. The West Susitna project differs with plans for
a public road. He said as a state entity, AIDEA cannot apply
shareholder hiring preferences, though Request for Proposals
(RFP) may include preference for Alaska-based companies.
4:24:18 PM
SENATOR BJORKMAN mentioned concerns about wildlife impacts by
Ambler Road. He asked if there was a study released at the end
of 2025 indicating the Ambler Road would have minimal impact on
nearby caribou herds.
4:24:39 PM
MR. SULLIVAN replied that is correct. He said he was speaking to
the concerns that NANA and Doyon have raised about potential
impacts to wildlife along Ambler Road.
4:25:24 PM
MR. SAN JUAN responded that in October through November 2025,
AIDEA released a study by Dr. Matthew Cronin on the Ambler
Road's impact on the Western Arctic Caribou herd. He said the
study found the herd's primary migration occurs north and west
of the road, so the road does not intersect its regular fall
migration. Some caribou may occasionally cross, though declines
are largely attributed to predation and severe weather, not
existing roads. He said the report also confirmed that the
DeLong Mountain Transport System does not affect regular
migration or herd decline.
4:28:10 PM
CHAIR KAWASAKI referenced slide 13 of the annual report and
stated that the Rural Development Initiative Fund (RDIF) serves
small communities, under 5,000 off the road system or under
2,000 on it. He said given the transfer of $3 million to the
Small Business Economic Development Fund (S-BED), he asked if
RDIF still has sufficient funding, or if this was a strategic
reallocation.
4:29:04 PM
MR. JOHNS replied that in early 2025, the SBED program had under
$300,000 in cash and over $1.5 million in loan demand, risking a
lending pause. To address this, funds were reallocated, $3
million from AIDEA's revolving fund and about $3 million from
the less-utilized RDIF, bringing SBED to roughly $6 million.
4:31:28 PM
MR. JOHNS moved to the Impacts of AIDEA Executive Summary
report, slide 3, AIDEA's History and purpose. He stated that
Northern Economics and legislation state that AIDEA finances
high-risk, long-term projects that private capital avoids in
Alaska, addressing challenges like distance and small markets.
He said the legislature designed AIDEA to absorb development
risk, while the Permanent Fund serves as a long-term wealth
fund. He read the following quotes from Dave Rose:
[Original punctuation provided.]
"The Permanent Fund is a Trust Fund for the People of
Alaska.? AIDEA was established to help finance Alaska
development projects?which are often very risky and
sometimes fail completely."
"We could create a Development Bank out of [AIDEA]
rather than [creating] one using the Permanent Fund.
[AIDEA] would become a shield, absorbing the risk of
state lending and deflecting the political pressure
created by the 'loan crazies."
Mr. JOHNS stated that in the report Mr. Wohlforth explained that
AIDEA dividends help reduce reliance on the Permanent Fund by
supporting the state's general fund. AIDEA serves as both a
financing tool and an economic driver, returning a portion of
its success through recurring dividends.
4:34:02 PM
MR. JOHNS moved to slides 4 and 5 and stated that the report
concludes that, based on the Impact Analysis and Planning
(IMPLAN) economic model, AIDEA has generated over $60 billion in
cumulative economic output for Alaska (in 2022 dollars) from
1987 to 2025. He said most of this impact comes from long-term
operations, about $28 billion in direct output and $25 billion
in indirect and induced effects, while construction contributes
a smaller share. This demonstrates that AIDEA's value lies not
in one-time construction stimulus but in sustained economic
activity that supports ongoing jobs and payroll. He said using
IMPLAN, Northern Economics calculated total output as the sum of
direct, indirect, and induced effects. Despite some data
limitations, including partial business reporting, the study
concludes that AIDEA functions as a development tool that also
provides recurring fiscal support to the state.
4:36:43 PM
CHAIR KAWASAKI stated that the committee has been waiting for
the Northern Economics Report from AIDEA. He noted that the
committee received 16 pages of the report. He asked when AIDEA
intends to hand over the rest of the report and why the document
is being held.
4:37:07 PM
MR. JOHNS replied that he provided extensive feedback to
Northern Economics, which was shared with AIDEA's executive
director. The executive director chose to review the full
report. He said delays in communication were due to health-
related issues on both sides. Now that the executive summary has
been approved for release, the full report is expected to follow
soon.
4:38:07 PM
CHAIR KAWASAKI asked what "quite quickly" means.
MR. JOHNS replied that as of January 15, Northern Economics
reported they were awaiting final input from AIDEA senior staff
and expected completion by the end of the month.
CHAIR KAWASAKI asked if the report would be available by the end
of January.
MR. JOHNS replied that is correct.
4:38:48 PM
SENATOR BJORKMAN expressed concerns about AIDEA's use of public
funds and its dividend practices, noting that some reallocations
were vetoed last year and higher education funds were used for
state expenditures. He asked whether AIDEA has considered the
long-term impacts of expanding its dividend if those education
funds are not restored. He challenged claims that certain AIDEA
funds are not "public," particularly regarding potential
restrictions on public access to projects like the Ambler Road.
4:40:40 PM
MR. JOHNS deferred the question Mr. Sullivan.
4:41:04 PM
MR. SULLIVAN replied that there is no legal requirement that a
road built with public funds become public. Alaska precedent,
such as the Dalton Highway, shows that roads constructed with
public funding can still carry private designations and
regulations.
4:42:24 PM
SENATOR BJORKMAN stated that last year, the legislature planned
to use an expanded AIDEA dividend to fund part of the budget,
but the governor vetoed it and higher education funds were used
instead. He asked whether AIDEA has considered the risk of
increased pressure to expand its dividend in the future if those
education funds are not restored.
4:43:02 PM
MR. SULLIVAN replied that he doesn't know and will report back
to the committee with an answer.
4:43:15 PM
SENATOR BJORKMAN stated that he strongly disagrees with the
practice of using public funds to build roads that are not
accessible to the public. He argued that such roads in Alaska
should stay open to everyone. He emphasized the importance of
equal access across public lands and referenced the principle of
section-line easements, from Thomas Jefferson, as a model for
ensuring access.
4:46:10 PM
There being no further business to come before the committee,
Chair Kawasaki adjourned the Senate State Affairs Standing
Committee meeting at 4:46 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AIDEA Impacts Report 2025_ES.pdf |
SSTA 1/27/2026 3:30:00 PM |
AIDEA Presentation |
| AIDEA Annual Report 2025.pdf |
SSTA 1/27/2026 3:30:00 PM |
AIDEA Presentation |
| AIDEA AA+ Bond Rating S&P 12.29.25.pdf |
SSTA 1/27/2026 3:30:00 PM |
AIDEA Presentation |