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Ensuring Transparency in a Gas Pipeline Built by Alaskans, for Alaskans
Senate has done its part; next steps to move the project forward now rest with Glenfarne and the Administration
Anchorage, AK — Today, the Senate Majority released a position paper detailing its stance on the Alaska gas pipeline and the tax relief sought to advance it.
Over the regular session and special sessions that followed, the Senate passed two versions of the Governor’s gasline legislation. Both granted the roughly $1 billion-a-year property tax break Glenfarne and the Governor said was critical for success. These compromises added protections for the state, including timeline assurances, liability safeguards, a closed tax loophole, and Alaska project labor and apprenticeship guarantees. The Governor declined to support either compromise.
The project’s estimated cost has climbed from $45 billion three months ago to $65 to 70 billion today. Glenfarne already holds the permits to break ground and repeatedly said it can build without legislation. However, new information indicates the state could be left on the financial hook if the developer fails to meet project deadlines. The Governor has called a third gasline special session but has not yet produced a bill.
The Majority supports building a pipeline, while also protecting Alaska’s long-term fiscal future, utilizing our Alaska workforce through project labor agreements and apprenticeship training, and prioritizing the delivery of gas to Alaskans first. The Majority will not commit Alaska to a deal it cannot fully see. The responsibility now rests with Glenfarne and the Administration to use the rest of this year to bring the Legislature the detailed numbers this decision demands, and the Majority stands ready for when that data is in hand.
“For more than fifty years, Alaskans have worked to bring our gas to market, and every member who has served in this building shares that goal. The Senate has done its part in good faith, passing two bills that would let this project move forward while protecting the people we answer to,” said Senate President Gary Stevens, R-Kodiak. “A decision of this scale will outlast all of us, and it deserves to be made with care rather than in haste. We are ready to evaluate the project further once the producer, Glenfarne, and the Administration bring us the numbers this year. These are Alaska’s resources, and they must work first and foremost for Alaskans.”
“We are being asked to commit Alaska to one of the largest financial decisions in our history without the numbers to know what it will cost the people we represent. The estimated price has already climbed tens of billions of dollars, and the financial modeling still is not in front of us,” said Senator Bill Wielechowski, D-Anchorage. “Before the Legislature locks in a billion-dollar-a-year tax break, Alaskans deserve a full and honest accounting. Getting that right is exactly what doing our job looks like.”
While the larger project is evaluated, the Majority also points to steps the state can take now to strengthen Railbelt energy supply and reliability. Known, proven gas reserves in Cook Inlet remain undeveloped and should be put into production, whether by the current leaseholders or an operator ready to develop them. The Regulatory Commission of Alaska should also promptly reconsider Enstar’s proposal to expand gas storage, giving utilities added capacity through the winter months.
“We do not have to wait on the larger project to act now on Alaska’s energy security. There is proven gas in Cook Inlet that should be in production, and the Regulatory Commission should move promptly on added storage so utilities can keep the Railbelt supplied through the winter,” said Senator Cathy Giessel, R-Anchorage. “These are practical steps we can take now, and Alaskans expect us to keep their lights on and homes warm.”
The full position paper, We Support an Alaska Gas Pipeline, is available here.
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