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March 2023 | Volume 39 | NUMBER 3 | AKBIZMAG.COM

Contents

Features

Arctic Alternatives

Multiple roads to Alaska’s energy future
By Tara O’Hanley
Todd Paris | UAF
Alaska Center for Energy and Power technicians and interns at work at the Fairbanks Experiment Farm

Voice of the Arctic Iñupiat

Vision and priorities for Alaska’s Far North
By Richard Perry

Against the Darkness

Promoting mental health in Arctic workplaces
By Alexandra Kay

Countdown to Graphite One

Restoring the US supply of a critical mineral
By Amy Newman

Snagged by Accident

Escaping the bycatch blame game to seek
balanced solutions
By Vanessa Orr

Sharing Value

The rich past and uncertain future of 7(i) and 7(j) revenue
By Elwood Brehmer
a woman sits at a laptop, smiling in conversation with someone

Rooms Full of Leaders

UAA’s Alaska Native Business Management program
By Jesse Leman
James R. Evans | UAA

Rooms Full of Leaders

UAA’s Alaska Native Business Management program
By Jesse Leman
James R. Evans | UAA

Arctic Alternatives

Multiple roads to Alaska’s energy future
By Tara O’Hanley
Todd Paris | UAF
Special Section: Construction

About The Cover

Construction projects north of the Arctic Circle have provided much of the state’s revenue for more than forty years. One specific marvel of engineering and construction, the Trans Alaska Pipeline System, connected northern resources to Southcentral, and from there to the rest of the world. But every smaller (and significantly shorter) pipeline, bridge girder, and cell tower built since is a critical part of developing and understanding the Arctic.

Alaska’s place in the Arctic, and the way it joins the United States to international Arctic conversations, has become even more critical over the years. The resources located in the Far North, the potential for travel and trade, the opportunities for research, and the role the Arctic plays in the overall health of the planet are hard to understate. Alaska is center stage, and the show is nowhere near over.

Cover photo courtesy of US Department of Energy
Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc. 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373. © 2023 Alaska Business Publishing Co. All rights reserved. No part of this publication may be reproduced without written permission from the publisher. Alaska Business accepts no responsibility for unsolicited materials; they will not be returned unless accompanied by a stamped, self addressed envelope. One-year subscription is $39.95 and includes twelve issues (print + digital) and the annual Power List. Single issues of the Power List are $15 each. Single issues of Alaska Business are $4.99 each; $5.99 for the July & October issues. Send subscription orders and address changes to circulation@akbizmag.com. To order back issues ($9.99 each including postage) visit simplecirc.com/back_issues/alaska-business.

From the Editor

In February federal authorities delivered two decisions on projects long under development: no for Pebble, yes to Willow.

When determinations like these are made, my inbox is flooded with emails from interested parties and key stakeholders lauding or lamenting the announcement.

In the case of ConocoPhillips Alaska’s Willow project, a North Slope development estimated to produce approximately 180,000 barrels of oil per day at its peak, most of the press releases that jammed my inbox commended the US Bureau of Land Management’s Supplemental Environmental Impact Statement (SEIS), which indicated there is a federally permitted path to production.

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Volume 39, #3
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EDUCATION
James R. Evans | UAA

Rooms Full of Leaders

UAA’s Alaska Native Business Management program
By Jesse Leman
W

hen the Alaska Native Claims Settlement Act established corporations to facilitate land transfers, one of the objections to the federal law was that Western corporate structures were alien to the Indigenous way of life. Fifty years of struggle and success have demonstrated that Alaska Native corporations can thrive under self-determination. A critical part of their history and path forward is finding and developing leaders within their ranks.

Joining in that mission of nurturing business acumen, UAA offers its Alaska Native Business Management program.

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Turning the page

ALASKA NATIVE

Voice of the Arctic Iñupiat
Vision and priorities for Alaska’s Far North
By Richard Perry
Nathaniel Wilder
V

oice of the Arctic Iñupiat formed in 2015 as a 501(c)(4) nonprofit organization. Working with twenty-four Alaska Native regional and village corporations, associations, and municipal governments in the North Slope Borough, the Voice is a network offering a unified voice for the area and its people.

The priorities and goals of the Voice are forward-thinking, seeking to mitigate current challenges and provide a long-term plan for the region. The most recent plan is named Vision 2050, which addresses subsistence, language and culture, healthcare, transportation, housing and infrastructure, resource development, and economic sustainability.

ENERGY

Arctic Alternatives
Multiple roads to Alaska’s energy future
By Tara O’Hanley
“T

he only reason we’re an Arctic nation is because of Alaska,” observes Givey Kochanowski, senior advisor to the US Department of Energy’s Arctic Energy Office. “Wherever you are with political ideology, there’s an argument why Alaska matters” in conversations about energy, he continues. “If you’re environmentally focused, climate change is happening twice as fast in the Arctic as the rest of the world. If you’re more focused on Alaska’s untapped resources for domestic energy supply, you’re thinking those resources would be tremendous for our national security, because energy security is national security.”

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We live it.

Spotting trends and navigating turbulent waters can’t happen from behind a desk. The insights come when we put on our hard hats and meet our clients where they are.

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We don’t just settle on knowing your industry. We live it.

Spotting trends and navigating turbulent waters can’t happen from behind a desk. The insights come when we put on our hard hats and meet our clients where they are.

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Pair this knowledge with human, approachable legal services and you’ll see what it means to be represented by Schwabe.
Pair this knowledge with human, approachable legal services and you’ll see what it means to be represented by Schwabe.
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Construction in Alaska
Brick by brick, pour by pour, rivet by rivet, nail by nail—builders get it done. In advance of construction season, Alaska Business shines a spotlight on the industry that leaves its mark in concrete, asphalt, steel, and wood.

“Construction Roundup 2023” presents an overview of infrastructure projects that are finishing this year or are scheduled to begin. The roads, bridges, airports, and waterfront projects range in size from a couple million dollars to hundreds of millions. “Terminal Conditioning” highlights one particular airport project: a renovation by Northern Pacific Airways as the start-up prepares to launch intercontinental flights through Anchorage later this year. And “Community Transportation Infrastructure” looks at a pedestrian stairway in Cordova and the Sitka Sea Walk among other projects funded by the state’s Community Transportation Program and Transportation Alternative Program.

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Why Partner with UAF eCampus?

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Help employees upskill, finish their degree, and boost morale

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Help employees upskill, finish their degree, and boost morale
Why Partner with UAF eCampus?

We prepare Alaskans for Alaska’s Jobs – Online

Quality – Leader in online education for over 30 years
Variety – Over 45 online degrees and 650 courses
Affordable – Online tuition is always at the in-state rate PLUS business partners get package pricing
Convenient – Finish your degree online, on your time
Individualized Student Support – Student success is our goal

Get the edge

Connect with UAF eCampus about our world-class online degrees. . .
that are truly at your fingertips.

UAF eCampus is that edge

907-455-2090

UA is an AA/EO employer and educational institution and prohibits illegal discrimination against any individual. http://www.alaska.edu/nondiscrimination
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Construction
Terminal Conditioning
Upgrades at ANC airport welcome a new intercontinental carrier
By Scott Rhode
Cornerstone General Contractors
“I

t’s not as easy as you might think to start a global airline,” says Rob McKinney.

Not that the CEO of Northern Pacific Airways is complaining. Progress has been swift in the nearly two years since the upstart airline was a glimmer in his eye, and not yet three years have elapsed since McKinney’s California commuter carrier bought Ravn Alaska at a bankruptcy auction.

While reviving Ravn’s routes to rural Alaska communities, McKinney has been busy acquiring a fleet of jets to connect Japan and China with the Lower 48, using Ted Stevens Anchorage International Airport (ANC) as a hub. Each 757, retired after service with American Airlines, cost about $10 million, and Northern Pacific bought four by the end of 2022 with eight more on order.

Construction
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Out in the Cold
Constructing buildings for
Arctic conditions
by Rachael Kvapil
US Department of Energy
T

he same advice for dressing in cold climates applies to structures as well: layering. Contractors apply control layers to the building envelope—the shell of a building that protects occupants from the elements—to manage the water, air, vapor, and temperature within a structure. This complex layering system within the foundation, roof, walls, windows, and doors that make up the building envelope isn’t obvious to the untrained eye. However, professional testing will quickly reveal the effectiveness of the control layers that make up the building envelope.

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Construction

Corvus Design

Community Transportation Infrastructure
How the CTP and TAP build local projects
By Dimitra Lavrakas
F

rom bridges, roads, and trails to storm water drainage, habitat connectivity, and scenic overlooks, the Alaska Department of Transportation and Public Facilities’ (DOT&PF) Community Transportation Program (CTP) and Transportation Alternative Program (TAP) are all about getting from here to there. In September, DOT&PF opened the application period for the most recent funding cycle with up to $120 million to spend on CTP projects and up to $30 million for TAP projects.

“It’s been years since we put out a call for projects under the CTP Program,” said DOT&PF Commissioner Ryan Anderson in a press release. “These funds help our communities build transportation infrastructure that is sustainable, improves safety, addresses resiliency, and supports economic development.”

Construction
Honing
In

Specialty
contractors
sharpen skills for
market niches

By Rindi White
STG
E

very construction company launches with a single project. How companies evolve from there depends on the market, clients, and the inclination of the owners. While diversity has its strength, for some construction companies, specialization has laid out a path for success.

Denali General Contracting, as the name implies, is not a specialist, yet the Anchorage-based company boasts a specialty: it’s prepared for projects in rural Alaska. Remote work takes a special skill set—advanced logistics, excellent attention to detail and, above all, a love for working in rural Alaska.

“You have to be prepared, you have to be organized, you have to be comfortable in that environment, and your team needs to be comfortable in that environment,” says Chris Hamre, president of Denali General.

Construction
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Specializing by Generalizing
By Rindi White
In the crowded field of equipment suppliers, how does one stand out? For Yukon Equipment, flexibility is the company’s specialty. Whether leasing a loader in Kotzebue or servicing a broken backhoe in Bethel, for seventy-five years, the company has been evolving to meet the needs of its Alaska clients.

“We’re not the biggest equipment dealer in the state, but we are the most flexible,” says Charlie Klever, president of Yukon Equipment. The company, owned by Calista Corporation since 2010, operates three locations: its headquarters in Anchorage and branches in Wasilla and Fairbanks.

“As such we can change our business plan and adjust to the market much more quickly and, we think, more efficiently,” he says.

Material Flow and Conveyor Systems Inc.
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Preparing Alaska’s Workforce
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Alaska’s pipefitters of the UA Local 375 are helping prepare for the future by training and educating the workforce for new projects such as Pikka and Willow. We stand at the ready.
We are the PIPEFITTERS & WELDERS of the UNITED ASSOCIATION.
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Construction
Paved Paradise
The development impact of parking requirements
By Scott Rhode
H

unting for a parking space can be frustrating, but excess parking spaces can plague a city and its inhabitants in quiet yet pernicious ways.

“Right now, we have these huge surface area parking lots that push everything farther apart. It extends the distance that people have to navigate our city if they’re on foot, if they’re not in a car,” says Daniel Volland, who joined the Anchorage Assembly in 2022 when a twelfth district was added to the body, representing the Downtown area. He adds that navigating is even harder for pedestrians with mobility disabilities, due to poor infrastructure.

Parking lots also add to the scarcity of developable land in the Anchorage Bowl. “I’ve heard many times over the years, people say Anchorage is running out of land,” says Jeannette Lee, a senior researcher with the Sightline Institute. “Well, how about, actually, Anchorage is using its land very inefficiently, with parking mandates being one example of that.”

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Construction

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Construction Roundup 2023
Infrastructure projects starting or finishing this year
By Katie Pesznecker
A

ny given year in Alaska, a skilled industry of contractors, architects, and engineers are designing and deploying projects across the state that will expand and improve on existing infrastructure. This annual roundup of airports, harbors, bridges, and roads is a high-level capture of some of the work wrapping or launching in 2023.

AIRPORTS
Joint Base Elmendorf-Richardson Runway Extension
The US Army Corps of Engineers Alaska District contracted Kiewit Infrastructure West Co. for this estimated $309 million project. The north-south runway, currently 7,500 feet long, is being extended to 10,000 feet, and the southern threshold is being shifted 400 feet to the north to meet airfield design requirements. According to the Air Force Installation and Mission Support Center, this project is the largest Pacific Air Forces construction project awarded to date.
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Equipment Source Inc. designs and builds equipment that stands up to Alaska’s harshest environments, because getting the job done doesn’t mean waiting for better conditions. From your backyard to the Arctic Slope, ESI has a solution for you. Shop or rent our wide range of heaters, generators, pumps, and more at esialaska.com.
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Equipment Source Inc. designs and builds equipment that stands up to Alaska’s harshest environments, because getting the job done doesn’t mean waiting for better conditions. From your backyard to the Arctic Slope, ESI has a solution for you. Shop or rent our wide range of heaters, generators, pumps, and more at esialaska.com.
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Merit Shops and Free Enterprise
A Q&A with ABC Alaska President and CEO Alicia Maltby
By Tasha Anderson
A

licia Maltby took on the role of President and CEO of Associated Builders and Contractors (ABC) Alaska in November 2021. Before taking on the position, she had “zero construction experience.” But, as she told interviewers during her application process, “I don’t really need to know how to run a construction project. I need to know how to advocate for you, and I’m very good at that… I don’t like to lose.” In the following Q&A, Maltby provides her insights into advocating for Alaska’s contractors.

headshot of alicia maltby

Alicia Maltby
ABC Alaska

Tasha Anderson: What is some of your experience with advocacy?

Alicia Maltby: I started my career in hotels… and before I came here [to ABC Alaska] I worked for Alaska Hotel and Lodging Association… As far as associations [in general], I fell into it. I really like the advocacy component, and I think it’s so important to fight for businesses to be able to run their business the way they want to, without having too much government overreach. That is such a premise of ABC’s mission and vision, that open merit shop philosophy and free enterprise.

Healthcare

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Against the Darkness
Promoting mental health in Arctic workplaces
By Alexandra Kay
“A

lthough psychosocial risks can be found in all sectors, some workers are more likely to be exposed to them than others, because of what they do or where or how they work,” notes a World Health Organization (WHO) fact sheet titled “Risks to Mental Health at Work.”

If the “where” is north of the Arctic Circle, workplaces face unavoidable risks from geographic isolation, extreme weather, and dark winter days. “Physical and social isolation due to weather and socioeconomic burdens, as well as the lack of sunlight leading to a marked deficiency in Vitamin D, all contribute to mental/emotional health struggles,” says Joseph Delong, a physician assistant with Alaska Behavioral Health, which provides behavioral healthcare services around the state.

Mining
Countdown to Graphite One
Restoring the US supply of a critical mineral
By Amy Newman
T

he Kigluaik Mountains stretch 42 miles east to west along the Seward Peninsula just north of Nome. Grizzly bears and moose roam the area, its lakes are home to a unique subspecies of Arctic char, and it’s the site of the Grand Union Glacier, the only active glacier in Western Alaska.

The mountains are also home to Graphite Creek, site of the largest known flake graphite deposit in the United States. Located 37 miles outside of Nome and 3 miles inland from Windy Cove, the deposit contains more than 8 million tonnes of graphite, according to the United States Geological Survey (USGS) US Mineral Deposit Database.

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envato
Vancouver, Canada-based tech company Graphite One hopes to make that deposit the linchpin of a three-pronged project that will increase the North American supply of graphite and reduce US dependence on foreign sources of the mineral.

“Our goal is to create the first dominant [graphite] supply chain in the history of the United States,” Graphite One founder and CEO Anthony Huston said of the company’s plans in 2020.

Fisheries
Alaska Department of Fish & Game
Snagged by Accident
Escaping the bycatch blame game to seek balanced solutions
By Vanessa Orr
A

nglers talk about “the one that got away,” but just as much of a headache for commercial fishers is the one caught accidentally. Bycatch occurs when fishermen unintentionally catch fish or other marine species that they do not want, cannot sell, or are not allowed to keep. What ends up in someone’s trap, net, or longline might be someone else’s harvest, gone to waste.

The issue of bycatch has grown more important as some fisheries get smaller and those who depend on the fish for their livelihood or survival find that there are not enough fish to go around. This raises the question of whether bycatch is at the root of the problem or if other issues facing fisheries must be addressed.

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Finance
Sharing Value
The rich past and uncertain
future of 7(i) and 7(j) revenue
By Elwood Brehmer
Carter Damaska | Alaska Business
A

brief but powerful provision of the Alaska Native Claims Settlement Act (ANCSA) has led to the dispersal of billions of dollars across the state for the betterment of Alaska Native communities, but uncertainty regarding future revenue has led some to question the long-term viability of the program.

It starts at the fundamental level of the land and what it provides.

ANCSA, the landmark legislation passed by Congress in 1971 that called for the establishment of the 12 operating Alaska Native regional corporations and more than 200 village corporations, also mandated that Alaska Native corporations (ANCs) could collectively select roughly 44 million acres of land. Those lands have been selected and mostly conveyed over decades to serve as an economic engine for the ANCs and their shareholders. Revenue generated from the use and careful development of ANC lands across Alaska—whether for tourism, mining, oil and gas, or timber operations—not only improves a corporation’s bottom line but supports an array of shareholder benefits rarely found anywhere else in the business world.

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Education

Galyna Andrushko

LeeAnn Munk and Mary Beth Leigh Inducted into the Innovators Hall of Fame

By Tasha Anderson
T

he State Committee for Research is an advisory body formed to promote “research and development as an enterprise and as an engine for economic development in Alaska.” To further that goal, it established the Alaska Innovators Hall of Fame in 2014, honoring and celebrating both individuals and inventions in Alaska that “contribute to the state’s growing culture of ingenuity.”

The original 2014/2015 cohort included more than a dozen innovators, such as Cathy Cahill, who invented an air-sensing system that alerts pilots that they are encountering volcanic ash particles; Elden Johnson, one of the engineers that found solutions for how TAPS would carry hot oil over frozen ground; Mark Gronewald, who contributed to the development of fat tire bikes; and Tim Meyers, who used innovative farming methods to improve the agricultural output of Alaska’s tundra.

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Alaska’s Legal Elite: Coming Soon!
Charles Bell, Vice President Sales & Marketing

By Charles Bell
Vice President of Sales

T

he team at Alaska Business magazine is excited to announce a new resource for the business community, Alaska’s Legal Elite. Independently researched and surveyed, the Legal Elite listings will feature the top licensed and practicing Alaskan attorneys as nominated and selected by their peers. Alaska Business is inviting all active in-state members of the Alaska Bar to nominate attorneys whom they highly regard and would recommend to others.

The survey is open from February 27, 2023 to April 10, 2023. If you are a licensed and practicing attorney in Alaska, you are eligible and encouraged to participate in the nomination process. If you are a business person, this list will be an invaluable resource if you need legal services.

Here for you and your business.
When you bring your business needs to CU1, you’re not just getting the great rates and fewer fees that you enjoy with a personal account. You’re also aligning your business goals with ours: people helping people to make our Alaskan communities a better place to live.
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Here for you and your business.
When you bring your business needs to CU1, you’re not just getting the great rates and fewer fees that you enjoy with a personal account. You’re also aligning your business goals with ours: people helping people to make our Alaskan communities a better place to live.
Get started at cu1.org/alaskabusiness
Insured by NCUA
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Inside Alaska Business
Molly Bz
A baker from Eagle River whose cookie brand already made a national impact is taking off for an intercontinental audience, thanks to an airline partnership. Molly Bz Cookies reached an exclusive agreement to provide treats for Northern Pacific Airways, doing business as Ravn Alaska. Molly Bz is offering an exclusive special recipe, Cinnadoodle, plus seasonal varieties throughout the year. CEO Molly Blakeley has already positioned her wares in Target cafes, hotels, resorts, and boutique shops, and they’ve been stuffed in gift bags at the Oscars, Grammys, and International Emmys.
mollybz.com

Economic Indicators

ANS Crude Oil Production
496,048 barrels
0.4% change from previous month

1/30/2023
Source: Alaska Department of Natural Resources

ANS West Coast Crude Oil Prices
$81.92 per barrel
-0.5% change from previous month
1/31/2023
Source: Alaska Department of Natural Resources
Statewide Employment
359,300 labor force
4.3% unemployment
12/1/2022. Adjusted seasonally.
Source: US Bureau of Labor Statistics
Right Moves
Cook Inlet Lending Center
A spinoff of Cook Inlet Housing Authority gained a new CEO for the new year.
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Tickle
The board of Cook Inlet Lending Center (CILC) named Jeff Tickle as CEO. Tickle had served as the general manager for CILC since 2015. As CEO, he is responsible for expanding residential mortgage lending and small business lending opportunities to underserved people in communities across Alaska. Tickle is a UAA graduate with thirteen years of banking and mortgage experience.
A Headshot of Joe Chavez
Chavez
The CILC team includes Joe Chavez, hired last July as Mortgage Loan Originator. Chavez has seventeen years of banking, consumer lending, and mortgage lending experience. In his role, Chavez supports the growth of CILC’s mortgage lending across Alaska by assisting homeowners in their pursuit of homeownership.

Alaska Trends

H

auling in a 50-pound halibut might be a once-in-a-lifetime triumph for an angler. For a commercial halibut vessel, it’s the start of a good fishing day. For trawlers targeting other groundfish, like Pacific cod, catching a halibut is a hassle. The trawler might not have permission to keep a halibut, and its hold has only so much room for saleable species. Easier to discard the halibut overboard, even if the accidental encounter proves fatal. The bycatch removes the fish from the ecosystem without any economic reward for the crew. What a waste.

Sustainably managed fisheries have strong incentives to minimize bycatch, at the cost of some inconvenience to hard-working crews. Regulations, specialized gear, monitoring technology, and in-person observers are some of the tools at the disposal of NOAA Fisheries. The agency keeps detailed reports from every active vessel about the amount of bycatch to the nearest gram, or less than the weight of a single halibut’s weird eyeball.

What book is currently on your nightstand?
A Man of Iron: The Turbulent Life and Improbable Presidency of Grover Cleveland by Troy Senik.

What charity or cause are you passionate about?
Children in need… We’ve given charitably to places like Covenant House and MyHouse (in the Mat-Su).

What vacation spot is on your bucket list?
I would love to be able to spend more time in, oh gosh, from France to Italy to Eastern Europe. That area.

What are you superstitious about?
Not much.

If you could domesticate a wild animal, what animal would it be?
How about those that cause harm and I’d like them not to cause harm? [he laughs] Any kind of snake.

Sean Parnell
What book is currently on your nightstand?
A Man of Iron: The Turbulent Life and Improbable Presidency of Grover Cleveland by Troy Senik.

What charity or cause are you passionate about?
Children in need… We’ve given charitably to places like Covenant House and MyHouse (in the Mat-Su).

What vacation spot is on your bucket list?
I would love to be able to spend more time in, oh gosh, from France to Italy to Eastern Europe. That area.

What are you superstitious about?
Not much.

If you could domesticate a wild animal, what animal would it be?
How about those that cause harm and I’d like them not to cause harm? [he laughs] Any kind of snake.

Photos by Kerry Tasker

Off the Cuff

Sean Parnell
T

oward the end of his term as governor of Alaska, someone showed Sean Parnell a word cloud compiled from his public addresses. The largest, most frequent word turned out to be “opportunity.” That theme connects his current role as UAA chancellor through his years in elected office and his career as a commercial attorney.

“Because every client is with you because they want to create something different for themselves or their business,” he says, “I saw those as creating opportunity for the client.”

Parnell might’ve never gone into law, instead pursuing his dream to become an Air Force fighter pilot, were it not for a pivotal conversation with Renita Yahara, his French teacher at Anchorage Christian School. He recalls her saying, “You were meant to be around people continually during the day. I really don’t see you in a cockpit.”

DIGITAL EDITION ADVERTISERS INDEX
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Alaska State Map
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More Power & Traction
+ More Cycle Times
+ More Fuel Efficiency
= Better Return on Investment

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Fairbanks
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Prudhoe Bay
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Kenai
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Anchorage
907.522.6466

Delta Junction
907.895.9898

Fairbanks
907.456.2000

Prudhoe Bay
907.659.2000

The Rental Zone
907.474.2000

Kenai
907.335.5466

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Thank You Alaska!

Thank you to our friends, neighbors, and valued customers for your ongoing support and partnership, and special thanks to each of our dedicated employees for their continued care, expertise, and ingenuity as we all work together to keep Alaska moving. We look forward to continuing to serve our communities by providing multi-modal transportation and logistics solutions across the entire state!

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Thanks for reading our March 2023 issue!