dailyloe.com – An Alaska House committee has revised Governor Mike Dunleavy’s bill concerning the Alaska LNG megaproject. The changes include a smaller tax break aimed at generating more revenue for local communities and the state.
The House Resources Committee passed the new measure without objection on Monday. This follows the Senate Resources Committee’s adoption of a substitute bill that aims to raise the most revenue among the proposals.
Dunleavy introduced his measure in March, proposing to replace state and local property taxes with a smaller ‘alternative volumetric tax’ based on gas flow. Resources committees in both chambers have analyzed Dunleavy’s bill for weeks before presenting their substitutes.
Officials associated with the project have indicated that they could begin laying pipe this year, although a final investment decision for construction has not yet been made. The Alaska LNG project is the most recent attempt to utilize the state’s extensive natural gas reserves on the North Slope.
The project is estimated to cost $46 billion, though critics argue it may be significantly more expensive. It plans to transport natural gas through an 800-mile pipeline for use in Southcentral Alaska, beginning in 2029.
Supporters of the project state that a gas treatment plant and a gas liquefaction plant will follow, allowing for exports to major Asian markets starting in 2031. Alaska leaders view this project as crucial for the state’s economic growth.
Lawmakers are working to find a balance that supports the project while ensuring adequate revenue for Alaska communities to manage the potential influx of thousands of workers. Jeff Turner, a spokesperson for the governor’s office, noted that the project could save Alaska households approximately $1,450 annually on energy bills compared to the expected costs of imported gas.
Turner mentioned that the administration and House Resources are collaborating effectively on the bill. He stated, ‘There are only three weeks left for lawmakers to pass a clean, straightforward LNG volumetric tax bill that incentivizes the project’s finances.’
He cautioned that adding conditions and additional taxes could make the pipeline less likely to proceed. ‘If lawmakers want the project to happen, they need to act quickly,’ he added.
