The Alaska House of Representatives voted Friday to approve a major property tax exemption bill for the proposed Alaska LNG pipeline — a measure that developer Glenfarne says is essential to making the $44.5-$54.5 billion project a reality.
JUNEAU, Alaska - The Alaska House of Representatives voted Friday to approve a major property tax exemption bill for the proposed Alaska LNG pipeline — a measure that developer Glenfarne says is essential to making the Within the 34-5 vote, the 19-member minority caucus was unified for the bill, while the 21-member bipartisan majority fractured.
Rep. Donna Mears, D-Anchorage, was absent. Of those voting down the bill: Reps. Neal Foster, D-Nome, Robyn Frier, D-Utqiagvik, Sara Hannan, D-Juneau, Andy Josephson, D-Anchorage, and Genevieve Mina, D-Anchorage.
Both Glenfarne and the Gov. Mike Dunleavy, R-Alaska, praised the bill’s passage.
“Today’s vote moves Alaska one step closer to realizing the benefits of Alaska LNG,” Glenfarne Alaska LNG President Adam Prestidge said in a statement. “In addition to adding hundreds of millions of dollars in new state and local revenues, this bill safeguards communities during construction, expands access to natural gas in Interior Alaska, and provides borough-level opportunities to invest and share in project success.
“Alaskans have waited for decades for Alaska LNG and today’s vote brings us one step closer to delivering the benefits of this transformational project,” he added. “This is an important victory for Alaska’s future,” Dunleavy said. “I want to thank the members of the House who recognized the importance of creating a stable, competitive fiscal framework that will help move the Alaska LNG Project closer to reality.
“This legislation sends a strong message that Alaska is serious about developing our vast natural gas resources and delivering affordable energy, good-paying jobs, and long-term economic opportunity for generations of Alaskans. ” Alaska’s News Source is working to detail the full scope of what the House-passed version of the bill does. At its core, the legislation creates a property tax exemption structure for Glenfarne’s LNG infrastructure, which Gov.
Mike Dunleavy and the developer say is necessary to make the project financeable. While the House built enough support for the legislation, the bill faces a different reality in the Senate, with several key senators expressing deep concern about the passed bill.
“There were a number of things that we identified as being critical to have in this bill that are not in the bill,” Sen. Bill Wielechowski, D-Anchorage,, listing concerns like the absence of an S-Corps tax, the number of years the developer would go without paying property taxes, and other cost issues. Ahead of Friday’s vote, senators took to social media to signal where they stand.
Most expressed support for building the gas line, though some raised concerns about the bill’s terms.
“I support updating Alaska’s outdated property tax structure to help make this project possible while protecting local taxpayers and working to make your utility bills as low as possible,” Sen. Jesse Bjorkman, R-Nikiski,, and construction cost overruns should not pass into utility bills. Senate Minority Leader Mike Cronk, R-Tok/Northway, commended Bjorkman’s message.
“We need to pass a piece of legislation that gets the line built or plan on buying gas from outside our state which is going to be very expensive as the years go by,” Sen. Robert Yundt, R-Wasilla, said in a Facebook post criticizing comparisons between the trans-Alaska pipeline and this gas project“The gas line is the best chance we have to bring low-cost energy which will finally allow industry and manufacturing jobs, business investments, reverse the exodus and bring back families,” Sen.
George Rauscher, R-Sutton, said on social media “AKLNG tax cuts may result in a financially viable pipeline but may also transfer the burden to local property tax payers,” Sen. Scott Kawasaki, D-Fairbanks,With the House vote complete, the bill now moves to the Senate, where a similar process begins: the bill will be assigned to a committee, scrutinized, and eventually brought to the floor for a final vote.
Now out of the House, the bill is off to the Senate where a similar process the House has undergone begins: the bill is assigned to a committee, scrutinized, and eventually brought to the floor for a final vote. If any changes are made in the Senate to the House-passed bill, it goes back to the House for a concurrence vote — effectively the House’s agreement to the changes made by the other chamber.
If both chambers pass the bill, it heads to the governor, who can sign, veto, or allow it to go into law without his signature. Dunleavy has 15 days, excluding Sundays, to act on the bill if the legislature is in session, or 20 days, also excluding Sundays, if it has adjourned. US military plans to lease Alaska land for AI data centers, community responds‘I needed to stay quiet’: North Pole senator explains last-minute retirement as Rep.
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