Juneau delegation divided on gasline bill; Hannan votes ‘yes’ in committee, then ‘no’ on House floor

Fellow Democrat Andi Story among ‘yes’ votes as tax-break legislation passes House 34-5; Sen. Jesse Kiehl says he has concerns, expects changes during final week of special session

Rep. Sara Hannan, D-Juneau, right, talks with Rep. Jamie Allard, R-Eagle River, during a break in the House floor session on Friday, June 12, 2026. (Mark Sabbatini / Juneau Independent)

By Mark Sabbatini

Juneau Independent

Juneau’s three Democratic legislators are divided on the gasline bill passed by the House on Friday, and in Rep. Sara Hannan’s case she ended up voting both in favor and against the legislation.

Hannan is a member of the House Finance Committee that on Wednesday unanimously advanced House Bill 381 to a floor vote. But on Friday she was among the dissenters in a 34-5 vote that sent the bill to the Senate with a week left in the special session.

"I was a ‘yes’ vote on this bill moving out of the finance committee because I view it as a vastly improved bill from three weeks ago," she said during floor debate on Friday. "But I have heard from far more of my constituents asking me to vote no because of climate change and carbon issues, and I want to make sure that I have pointed out that's why I will be a ‘no’ vote today."

Rep. Andi Story voted for the bill. Sen. Jesse Kiehl said Saturday he has concerns and expects the bill to be modified when it is taken up by the Senate Finance Committee — which he is a member of — on Monday. The deadline for the 30-day special session is next Friday.

HB 381 cuts property taxes the Alaska LNG Project developer would pay to state and local communities by an estimated 85% for 30 years, which could equate to tens of billions of dollars. That’s less than a 90% reduction sought by Republican Gov. Mike Dunleavy, who ordered the special session when legislators rejected his proposal at the end of the regular session.

Other modifications in the bill passed by the House include a cap on natural gas prices from the pipeline, the developer paying up to $80 million in a community impact fund and a spur line to Fairbanks.

"I appreciate that the bill that's before us today looks very different than our discussion three weeks ago we had on the floor about a similar bill," Hannan said, explaining why she voted to advance the bill from the House Finance Committee. "And many of my concerns over about the bill in general that I've heard from constituents have been addressed to some degree — rate payer protections, project labor agreements, increased transparency, increased funding to make sure that we are positioned for impacts on communities."

But she said there are economic unknowns, such as how the tax cuts will benefit the pipeline’s developer and producers which, along with the environmental issues raised by constituents, remain concerns.

Story, in an interview Saturday, said she voted in favor of the gasline bill because of statewide concerns about energy supplies and costs.

"I very much hear the plea from our fellow Alaskans in the Interior in Southcentral, running out of energy to heat their homes and have electricity," she said. "This is an opportunity — it was a compromised package and it still has to go to the Senate — to see if (we) can get a package together, that this project might happen. So it's a step in the process and we really have an energy problem up north, and it impacts all of us."

Kiehl said his concerns include both the potential cost to build the pipeline and support infrastructure — and the state being asked to pay a hefty amount if there are cost overruns — as well as the tax being given to the companies associated with the project.

"I'm pretty concerned about a 30-year tax concession when all our consultants say that's not necessary to make the project go," he said.

If the Senate passes a modified bill then the House will need to vote on accepting those changes. If the House fails to do so then the process calls for a joint conference committee to be formed that crafts a compromise bill both chambers vote on. Kiehl said he doubts there is enough time left in the special session for a conference committee, but believes a modified bill the House and Dunleavy can accept is possible.

Also in play before the special session deadline of Friday are about two dozen bills transmitted to Dunleavy earlier this month, with legislators intentionally timing it so the governor has until Thursday to veto the bills or allow them to become law. Those include high-priority "omnibus" package bills on crime and education that the Juneau delegation played roles in crafting, and legislative leaders have stated override votes may take place on the special session’s final day depending on Dunleavy’s actions.

Kiehl said he doesn’t expect the fate of the bills and the fate of the gasline legislation to be intertwined.

"I don't think there's one of those bills that people would trade for giving away the farm on the gasline," he said.

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.