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Senate president says gas pipeline bill unlikely to pass by May 20 adjournment, may result in special session
- Mark Sabbatini
- 6 hours ago
- 3 min read
Alaska LNG Project dominates second half of legislative session as Dunleavy makes all-out push during final months in office, but lawmakers divided by immense costs and complexities
By Mark Sabbatini
Juneau Independent
A long-proposed natural gas pipeline that’s been the dominant issue during the second half of the legislative session is unlikely to pass by the May 20 adjournment deadline, which may result in a special session afterward, Senate President Gary Stevens, R-Kodiak, said Tuesday.
Gov. Mike Dunleavy is making an all-out push for the Alaska LNG project before he departs office at the end of his second term later this year. But there are vast differences in the proposals by him and majority caucus legislators, primarily involving how much the state will subsidize the project — with the governor favoring far more breaks for the developer than many legislators are willing to accept.
See also: In Alaska Legislature’s last days, a key question: How much to subsidize the gas pipeline?
"Honestly, I don't see us coming to conclusion in two weeks and a couple of days," Stevens said during a press conference Tuesday. "That's a lot to do for the House and the Senate to come together and to conclude this entire issue of a gas line. So what happens? Well, the governor has the opportunity to call us back into a special session immediately, or he can call us into a special session in August, or whenever he chooses."
Other members of the Senate majority caucus at the press conference expressed similar thoughts, noting the pipeline has been discussed for decades and therefore there is no reason to rush flawed legislation through this year. Senate Majority Leader Cathy Giessel, R-Anchorage, noted state officials advocating for Dunleavy’s version of a gasline bill stated this week "they actually can go forward without this bill."
"They don't need this bill authorizing them to proceed," she said. "They have the permits. They've got the (Federal Energy Regulatory Commission) authorization."
Dunleavy, who’s been absent from the Capitol most of the session, arrived in Juneau early this week to push for legislation after urging its passage during a press conference in Anchorage on Monday. But he indicated he’s likely to veto a bill with the lower subsidies currently favored by the majority caucus and a special session is possible.
"I've even been encouraged by legislators to ponder the possibility of special sessions to get it right," he said. "Not special sessions to punish legislators, or to punish myself, or punish the people of Alaska. But it's too important. It can't be left to next year."
A bill introduced March 20 by Dunleavy contained tax rates and exemptions that would result in about $75 million in annual state and local revenues once the project was fully operational, compared to roughly $1 billion under current state law. The House and Senate are each working on differing versions of gasline bills, but they all seek far higher revenue than the governor for the state and municipalities affected by the pipeline’s infrastructure.
Dunøeavy argues the project is too costly for the developer without significant breaks, and there won’t be any revenue or jobs if the pipeline isn’t built. Giessel, along with some other legislators, say the state has a responsibility to collect adequate revenue for its natural resources, and the project’s developer and proponents aren’t providing adequate data showing they need the type of subsidies the governor is asking for.
• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.
