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Second special session on gasline opens with move to send bill to six-member House-Senate committee
- Mark Sabbatini
- Jun 20
- 3 min read
Tentative plan calls for Legislature to return to Capitol on July 1 to consider compromise bill on Alaska LNG Project
By Mark Sabbatini
Juneau Independent
A second special session to consider legislation to spur the development of a natural gas pipeline gaveled in Saturday morning with the same issues and divisions that resulted in the first session ending in a stalemate late Friday night. But it appears a conference committee of six lawmakers will play a large role in deciding the project’s fate.
Both the House and Senate convened their floor sessions well past the 10 a.m. starting time on the proclamation by Gov. MIke Dunleavy ordering lawmakers to remain at the Alaska State Capitol. At stake is what tax breaks and other incentives policymakers are willing to grant the Alaska LNG Project — and if enough can agree to a package the governor is willing to sign off on before his second term ends in December.
The House, after beginning its floor session at 10:52 a.m., read the governor’s proclamation ordering a second special session of up to 30 days to consider the legislation related to the project. A resolution was then introduced allowing continued consideration of the bill debated during the previous special session — House Bill 381.
"This just allows us not to lose the progress of this session and continue working on it when we meet next," House Majority Leader Chuck Kopp, R-Anchorage, said while explaining the first resolution.
House Bill 381, as passed 34-5 by the House a week ago Friday, cuts property taxes for the Alaska LNG Project developer would pay to state and local communities by an estimated 85% for 30 years. The Senate passed a version by a 12-8 vote a week later providing lower incentives to the project’s developer and producer — and includes what lawmakers call an "S Corp" provision that makes the state’s corporate income tax applicable for privately held oil and gas companies.
"This provision, Mr. Speaker, is considered economically counterproductive at the moment the state is trying to attract a final investment decision on phase one and phase two of the gas pipeline," Kopp said in explaining the Senate changes during the House floor session.
The developer and producer of the project say the tax breaks and other assistance in the House version are needed to make the project affordable. Legislators resisting the more generous incentives say specifics on the need for them are lacking and there are concerns about the state being asked to provide a large amount of additional assistance to complete the project.
Dunleavy on Friday night said he supports the House version, but the Senate changes were concerning and it wasn’t realistic to determine their the implications during the final few hours of the first special session.
The House rejected accepting the Senate changes by a 12-28 vote. House Speaker Bryce Edgmon, I-Dillingham, then appointed three House members — two majority caucus members and one minority — to a conference committee that also will have similar Senate representation.
Two bills by the governor related to the gasline were introduced during the floor session, but Edgmon said those aren’t likely to be the "vehicle" the Legislature takes action on to advance the gasline.
The House adjourned at 11:29 a.m until July 1, with many members leaving quickly to catch afternoon flights from Juneau.
The Senate convened during the afternoon and voted 0-16 against abandoning its changes to HB 381 and accepting the House version of the bill. Three Senate members were then appointed to the conference committee that will try to craft a bill acceptable to majorities in both chambers and Dunleavy by July 1.
• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.
