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SB 138 - Establishes a Liquefied Natural Gas Production Framework - Key Vote

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Legislation - Concurrence Vote Passed (Senate) (16-4) - (Key vote)

Title: Establishes a Liquefied Natural Gas Production Framework

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes a liquefied natural gas production framework.

Highlights:

  • Authorizes the Alaska Gasline Development Corporation to develop infrastructure and provide services related to transportation, liquefaction, a marine terminal, marketing, and commercial support for an "Alaskan liquefied natural gas project" (Sec. 7). 
  • Defines “Alaskan liquefied natural gas project” as a natural gas project that includes the Prudhoe Bay unit and Point Thomson unit gas transmission lines, a gas treatment plant, a liquefied gas treatment plant, and a marine terminal (Sec. 21).
  • Authorizes the Alaska Gasline Development Corporation to enter into contracts of joint ownership, joint operation, or both with other entities not in the Corporation for a liquefied natural gas project (Sec. 13).
  • Establishes terms of any agreement between the state and other entities related to a North Slope natural gas project, which include, but are not limited to, the following requirement (Sec. 26):
    • The agreement includes a way to proportionately allocate infrastructure costs between the state and other entities;
    • The agreement does not change property taxes on certain previously non-taxable property; and
    • The agreement includes “commercially reasonable” terms for delivering natural gas to public utilities in the state when the demand exceeds the state’s share.
  • Authorizes the Commissioner of the Natural Resources Department to participate in the following actions related to a natural gas project in the Alaskan North Slope region (Sec. 25):
    • To work with the Commissioner of the Revenue Department to negotiate agreements and development terms for such commercial agreements related to project services; 
    • To work with the Commissioner of the Revenue Department to take custody of gas delivered to the state and manage the project services and sale of the gas; and 
    • To enter into commercial agreements for up to 2 years for project services. 
  • Requires the Commissioner of the Natural Resources Department  to determine whether or not oil or gas delivered to the state is a surplus to state domestic or industrial needs before the oil or gas may be exported (Sec. 31). 
  • Establishes the following taxes on the gross values of oil produced after January 1, 2022 from any land north of the 68 degrees North latitude when Alaska North Slope crude oil is sold at the following average prices per barrel on the U.S. West Coast (Sec. 45):
    • At least a 4 percent tax when the average price is above $25;  
    • At least a 3 percent tax when the average price is above $20, but not over $25;
    • At least a 2 percent tax when the average price is above $17.50, but not over $20;
    • At least a 1 percent tax when the average price is above $15, but not over $17.50;
    • No tax when the average price per barrel is $15 or less. 
  • Authorizes a producer of oil or gas to receive a tax credit for oil taxes if the producer contributes cash for certain purposes including, but not limited to, the following purposes (Secs. 48 & 49):
    • Funding for vocational education courses, equipment, and facilities operated by a vocational technical education and training school; 
    • Funding for nonprofit regional training center recognized by the Department of Labor and Workforce Development; or
    • Funding for an apprenticeship program in the state that is registered with the United States Department of Labor.
Legislation - Bill Passed With Amendment (House) (36-4) - (Key vote)

Title: Establishes a Liquefied Natural Gas Production Framework

Vote Smart's Synopsis:

Vote to pass a bill that establishes a liquefied natural gas framework.

Highlights:

  • Authorizes the Alaska Gasline Development Corporation to develop infrastructure and provide services related to transportation, liquefaction, a marine terminal, marketing, and commercial support for an "Alaskan liquefied natural gas project" (Sec. 7). 
  • Defines “Alaskan liquefied natural gas project” as a natural gas project that includes the Prudhoe Bay unit and Point Thomson unit gas transmission lines, a gas treatment plant, a liquefied gas treatment plant, and a marine terminal (Sec. 21).
  • Authorizes the Alaska Gasline Development Corporation to enter into contracts of joint ownership, joint operation, or both with other entities not in the Corporation for a liquefied natural gas project (Sec. 13).
  • Establishes terms of any agreement between the state and other entities related to a North Slope natural gas project, which include, but are not limited to, the following requirement (Sec. 26):
    • The agreement includes a way to proportionately allocate infrastructure costs between the state and other entities;
    • The agreement does not change property taxes on certain previously non-taxable property; and
    • The agreement includes “commercially reasonable” terms for delivering natural gas to public utilities in the state when the demand exceeds the state’s share.
  • Authorizes the Commissioner of the Natural Resources Department to participate in the following actions related to a natural gas project in the Alaskan North Slope region (Sec. 25):
    • To work with the Commissioner of the Revenue Department to negotiate agreements and development terms for such commercial agreements related to project services; 
    • To work with the Commissioner of the Revenue Department to take custody of gas delivered to the state and manage the project services and sale of the gas; and 
    • To enter into commercial agreements for up to 2 years for project services. 
  • Requires the Commissioner of the Natural Resources Department  to determine whether or not oil or gas delivered to the state is a surplus to state domestic or industrial needs before the oil or gas may be exported (Sec. 31). 
  • Establishes the following taxes on the gross values of oil produced after January 1, 2022 from any land north of the 68 degrees North latitude when Alaska North Slope crude oil is sold at the following average prices per barrel on the U.S. West Coast (Sec. 45):
    • At least a 4 percent tax when the average price is above $25;  
    • At least a 3 percent tax when the average price is above $20, but not over $25;
    • At least a 2 percent tax when the average price is above $17.50, but not over $20;
    • At least a 1 percent tax when the average price is above $15, but not over $17.50;
    • No tax when the average price per barrel is $15 or less. 
  • Authorizes a producer of oil or gas to receive a tax credit for oil taxes if the producer contributes cash for certain purposes including, but not limited to, the following purposes (Secs. 48 & 49):
    • Funding for vocational education courses, equipment, and facilities operated by a vocational technical education and training school; 
    • Funding for nonprofit regional training center recognized by the Department of Labor and Workforce Development; or
    • Funding for an apprenticeship program in the state that is registered with the United States Department of Labor.
Legislation - Bill Passed (Senate) (15-5) - (Key vote)

Title: Establishes a Liquefied Natural Gas Production Framework

Vote Smart's Synopsis:

Vote to pass a bill that establishes a statewide natural gas production framework.

Highlights:
  • Authorizes the Alaska Gasline Development Corporation to develop infrastructure and provide services related to transportation, liquefaction, a marine terminal, marketing, and commercial support for natural gas pipelines, and the “Alaska liquefied natural gas project” (Sec. 1). 
  • Defines “Alaska liquefied natural gas project” as a natural gas project that includes the Prudhoe Bay unit gas transmission line, the Point Thomson unit gas transmission line, a gas pipeline, the gas treatment plant, a liquefied natural gas plant, and a marine terminal (Sec. 12). 
  • Authorizes the Corporation to enter into contracts of joint ownership, joint operation, or both with other entities not in the Corporation for the Alaska liquefied natural gas project (Sec. 4).
  • Authorizes the Commissioner of the Natural Resources Department to participate in the following agreements related to a natural gas project in the Alaskan North Slope region (Sec. 14):
    • To work with the Commissioner of the Revenue Department to negotiate agreements and development terms for such commercial agreements related to project services; 
    • To work with the Commissioner of the Revenue Department to take custody of gas delivered to the state and manage the project services and sale of the gas; and 
    • To enter into commercial agreements for up to 2 years for project services. 
  • Requires the Commissioner of the Natural Resources Department  to determine whether or not oil or gas delivered to the state is a surplus to state domestic or industrial needs, before the oil or gas may be exported (Sec. 21). 
  • Establishes the following taxes on the gross values of oil produced from any land north of the 68 degrees North latitude when Alaska North Slope crude oil is sold at the following average prices per barrel on the U.S. West Coast, after January 1, 2022 (Sec. 35):
    • At least a 4 percent tax when the average price per barrel is more than $25;  
    • At least a 3 percent tax when the average price per barrel is between $20 and $25;
    • At least a 2 percent tax when the average price per barrel is between $17.50 and $20;
    • At least a 1 percent tax when the average price per barrel is between $15 and $17.50; or 
    • No tax when the average price per barrel is less than $15. 
  • Authorizes a producer of oil or gas to receive a tax credit for oil taxes if the producer contributes cash for certain purposes including, but not limited to, the following purposes (Sec. 37):
    • Funding for vocational education courses, equipment, and facilities operated by a vocational technical education and training school; 
    • Funding for nonprofit regional training center recognized by the Department of Labor and Workforce Development; or
    • Funding for an apprenticeship program in the state that is registered with the United States Department of Labor.
Note:

NOTE: THIS VOTE RECONSIDERS A PREVIOUS VOTE.

Legislation - Passage (Senate) (15-5) -
Legislation - Introduced (Senate) -

Title: Establishes a Liquefied Natural Gas Production Framework

Note:

NOTE: THIS BILL WAS SPONSORED BY A COMMITTEE AT THE REQUEST OF THE GOVERNOR

Committee Sponsors

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