New bill moves to House and Senate to advance Alaska LNG project - EUROPE SAYS
Members of the legislative conference committee discuss a compromise version of an Alaska LNG tax break bill on July 16, 2026 at the Alaska State Capitol building in Juneau, during the second special session. . .
Members of the legislative conference committee discuss a compromise version of an Alaska LNG tax break bill on July 16, 2026 at the Alaska State Capitol building in Juneau, during the second special session on the topic. Other lawmakers from the House and Senate listened in on the hearing in the audience. (Mari Kanagy / ADN). A bicameral conference committee Thursday morning moved a new substitute bill designed to support the Alaska LNG megaproject that applies the state’s corporate income tax to private oil and gas producers and transporters, but exempts the gas line project from that tax. The measure also eliminates property taxes for the project, replacing it with a smaller tax based on gas volumes. Thecommittee substitute billwas unveiled Thursday morning by the committee shortly before it advanced it on a 4-2 vote on caucus lines for consideration by the full House and Senate. It was unclear early Thursday when the chambers would convene to take up the proposal. The second special session on the topic is scheduled to end on Sunday. Both chambers are scheduled to hold floor sessions on Thursday. Major oil and gas and business associations in the state panned the measure shortly after it was advanced by the conference committee, casting the corporate income tax as potentially hurtful to the supply of energy in Alaska. The project, estimated to cost up to $55 billion, is seen by Gov. Mike Dunleavy and many others as vital for the state as Alaska looks for a new source of natural gas to provide the fuel that heats and powers homes across the state’s most populated regions. A shortfall of gas from Cook Inlet near Anchorage has already prompted utilities to begin considering costly imports of natural gas, amid expectations that their primary supply of gas will soon fall below contracted levels. The Alaska LNG project could also provide hundreds of millions of dollars annually in new revenue to the state, and support thousands of construction jobs. Alaska LNG has proposed delivering North Slope gas down an 800-mile pipeline for use by Alaskans starting in 2029 and for overseas exports as liquefied natural gas, or LNG, starting in 2031, if it is built. Supporting the measure were Sens. Lyman Hoffman, D-Bethel, and Bert Stedman, R-Sitka, along with independent House Speaker Bryce Edgmon of Dillingham and Rep. Calvin Schrage, an Anchorage independent and conference committee chair. Sen. Mike Cronk, R-Tok, and Rep. Justin Ruffridge, R-Soldotna, voted against the measure. Ruffridge, the House minority whip, expressed several concerns, including about the corporate income tax proposal, which would not kick in until 2029. The state’s corporate income tax currently applies only to C corporations. A majority in the Senate have supported applying the tax to oil and gas companies that are S corporations or limited liability companies — such as Hilcorp, one of the largest oil and gas companies operating in Alaska. Exempting the project alleviates concerns that the expanded income tax would be applied to privately held Glenfarne and would then damage the project’s chances of attracting investors needed to pay for it. The Senatehad previously votedto apply the tax to Glenfarne. But the House last monthrejectedthe Senate’s version of the LNG tax break bill that included the S-corp measure. Dunleavy,project developersandother business groupshave strongly opposed its inclusion in the legislation. Dunleavy called the second special session for legislators to reconcile the differences between the two versions and reach a deal acceptable to him and Glenfarne. Ruffridge said in the committee meeting Thursday morning that he had only just that morning seen the substitute bill. He said he wanted to hear from the Alaska Department of Revenue to learn more about the impacts of the corporate income tax before the committee voted. But members of the committee who supported the bill said it was time to move it to the full chambers. They said it was a compromise achieved after lengthy negotiations. Schrage, the chair of the conference committee, said the bill was developed with input from the Dunleavy administration and the developer of the project, majority owner Glenfarne and 25% owner the Alaska Gasline Development Corp. He said it’s imperfect, and will likely need refinement in the future. “By moving this forward and hopefully passing it through the Legislature, we’re able to show that progress, show that we’re willing to do that hard work, and keep this project moving forward,” Schrage said. The Alaska Oil and Gas Association, Alaska Support Industry Alliance, Alaska Chamber of Commerce, and Resource Development Council, in a statement on Thursday, said the bill “misses the mark. ”“Rather than focusing on advancing the Alaska LNG Project, it injects targeted industry and income taxes that threaten the very companies producing energy for Alaska’s homes and businesses,” the groups said in a statement. They groups “urge the Legislature to reject these counterproductive provisions and pass a clean bill focused on getting the gasline built and delivering lower energy costs for Alaskans. ”Rep. Kevin McCabe, R-Big Lake, also issued a statement about the proposed bill, saying it’s a tax restructuring measure, not an Alaska LNG bill. “Once you create a new income tax mechanism in Alaska law, you’ve crossed a line that has remained closed for decades,” he said. “That’s a major policy decision that deserves its own bill, its own hearings, and its own public debate. ”This is a developing story. Check back for updates.