After the Senate Resources Committee overhauled much of the governor’s liquefied natural gas line property tax bill Monday, a spokesperson for Gov. Mike Dunleavy, R-Alaska, said their actions could jeopardize the decades-long pipe dream.
JUNEAU , Alaska - After the Senate Resources Committee overhauled much of the governor’s liquefied natural gas line property tax bill Monday, a spokesperson for Gov. Mike Dunleavy , R- Alaska , said their actions could jeopardize the decades-long pipe dream.
“The Senate Resources version puts the entire project at risk by dramatically increasing the cost of the project,” Dunleavy spokesperson Jeff Turner told Alaska’s News Source in a Tuesday statement. “The reality is simple. Without meaningful tax restructuring, this project will not move forward,” Turner added. The proposed 800-mile pipeline would carry North Slope natural gas to Cook Inlet and, eventually, to export markets in Asia. The project is estimated to cost $46.2 billion. With less than one month left in the session, the decision appears to deepen a months-long impasse between the Senate majority caucus and developers. “If adopted, these changes will ultimately raise the cost of energy for Alaskans and could indefinitely delay the delivery of North Slope gas at a time when Alaska is facing a major energy shortage without a viable plan B,” Glenfarne spokesperson Tim Fitzpatrick said in a statement.Earlier this session, Glenfarne Alaska LNG President Adam Prestidge told the House Resources Committee in March that the original property tax proposal “will lower energy bills for Alaskan families, for governments, and for government entities.” Sen. Robert Myers, R-North Pole and one of two minority members on the Senate Resources Committee, concurred with Dunleavy and Glenfarne’s sentiments. “The current is going to jeopardize the bill,” he said. “Our consultants have told us very clearly that when large LNG projects like this get built around the world, almost always they include a tax cut of some kind ... and instead, we’re adding taxes on. “We’re changing the structure slightly, but we’re adding more taxes at a time when we should be talking about reducing the taxes to make it work. Otherwise, you’re just going to pass the cost on to somebody and just make it less economical in the end.”say the company needs to pay its fair share in the project. Sen. Bill Wielechowski, D-Anchorage, told Alaska’s News Source the bill would not jeopardize the gas line “at all.” “We’ve been told by Glenfarne well before this session even started that they needed nothing,” Wielechowski said Tuesday. “They needed no tax breaks, they did nothing. They can go ahead and build the gas pipeline right now, if they wanted to. There’s nothing stopping them from doing that.”“What we’ve been told by Glenfarne was that they would not shift any cost overruns onto Alaskans,” he said. Alaska’s News Source reached out to Senate Resources Committee Chair Cathy Giessel, R-Anchorage, for comment Tuesday. As of publication, comment has not been returned.U.S. Energy Sec. Chris Wright told Alaska Sen. Lisa Murkowski Tuesday Alaska’s LNG pipeline is the “number one” priority of the administration when it comes to energy infrastructure.The changes come in the form of a committee substitute, a proposed version of a bill that replaces the one previously introduced, according toIncreases the alternative volumetric tax — a tax based on the quantity of gas output — from $0.06 per thousand cubic feet to $0.15, rising to $0.25 at the LNG Export Facility. Mandates the Alaska Gasline Development Corporation to “pursue a spur line” for the Fairbanks North Star Borough.Under current property taxes, the state was projected to receive $8.4 billion in taxes from the pipeline by 2042. Under the governor’s proposal, that figure fell to $829 million. Local governments would see their share fall from $5.7 billion to $728 million over the same period, according to the Department of Revenue.The committee substitute now would need to head to the full Senate for a vote to replace the bill, but the bill must firstthree full weeks scrutinizing the bill before introducing the substitute Monday. As of Tuesday, they are in their second week. “Governor Dunleavy urges the Senate to work with his administration to return this bill to a form that keeps Alaska competitive, protects our future, and ensures this critical project becomes a reality,” the governor’s spokesperson said.Despite the governor’s pleas to work with him, lawmakers have questioned — and even criticized — his absence from the state capitol. “Maybe, just maybe the governor should come talk to legislators about the project himself,” Rep. Sarah Vance, R-Homer, wrote on herWielechowski described the dialogue between his office and the governor’s as “nonexistent.” “I haven’t heard a word from the governor all session,” he said. “I haven’t heard a word from anyone in his office all session. I haven’t heard a word from any of his commissioners, his deputy commissioners, his tax directors all session long.”last week, Dunleavy didn’t deny that he’s been absent from Juneau but said he has still been a part of the conversation in the legislature. “There’s some people that want me there so they can talk to me on a regular basis, but the governor also has to run a state. And it’s a big state,” Dunleavy said. “I’m back and forth. My phone is open to everybody, my staff is down there working on this bill, I’m working with legislators, I think we’re fully engaged in this process.”Security guard shoots, kills man in wheelchair who tried to get into birthday party at banquet hallAnchorage mother drives national push to prevent fentanyl deathsDespite decreasing national fuel prices, Murkowski warns rural Alaska may still pay higher fuel costs from initial price hikes
Governor Alaska Sen. Bill Wielechowski Glenfarne Robert Myers Juneau Gasline LNG Liquefied Natural Gas Senate Resources Committee Alaska Senate Majority Rep. Sarah Vance North Pole Anchorage Tim Fitzpatrick Spur Line
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dem lawmaker says Americans ‘getting fleeced at the pump,’ pushes oil export ban amid Iran tensionsRep. Ro Khanna says the U.S. should stop exporting oil to bring down gas prices as Middle East conflict disrupts global supply and raises concerns.
Read more »
GOP lawmaker blasts 'RINOs in the Senate' as Republican rift simmersHouse Rep. Greg Steube slams “RINOs“ in the Senate over the filibuster as GOP infighting grows over Trump-backed election bill.
Read more »
Dunleavy addresses eligibility questions following Trump appointment to federal research commissionPresident Donald Trump’s appointment of Alaska’s Gov. Mike Dunleavy to a federal research commission has drawn scrutiny over whether the governor meets his seat’s academic and research qualifications, even as his staff cites his executive experience as sufficient.
Read more »
Trump invokes emergency powers to bolster U.S. natural gas, LNG capacityWhite House memorandum says more gas and LNG infrastructure is needed for national defense .
Read more »
US Energy Secretary Backs Alaska LNG ProjectUS Energy Secretary Chris Wright has identified the Alaska LNG project as his top infrastructure priority, emphasizing the need to finance the pipeline component to enable the export terminal. Despite high estimated costs, he believes it can address energy needs in Alaska and provide a secure supply to Asian allies.
Read more »
Alaska LNG Pipeline Project Jeopardized by Senate Tax ChangesChanges made by the Senate Resources Committee to the governor’s LNG pipeline property tax bill are threatening the $46.2 billion project, according to the governor’s office and project developers. Concerns center around increased costs and potential delays in delivering North Slope gas to Alaska and export markets.
Read more »