Special Session Update
Second 2026 Special Session ends;
Governor calls Third 2026 Special Session
In May, the Governor called a Special Session for legislation related to the LNG project, which ended on June 19th without passage of a bill. The Governor then called a Second Special Session beginning on June 20th. Over the last month, a six-member Conference Committee (three members from each body) considered a version of House Bill 381 and produced a compromise version. On July 16th, the Senate passed that version by a vote of 11-8. Later the same day, the House did not approve the legislation by a vote of 19-19.
The Conference Committee version of HB 381 would replace the state's 2% petroleum property tax with a lower tax on gas once it is moving through the pipeline, exempting Glenfarne from taxes during construction, and lowering revenue for the state overall, according to the Department of Revenue. In another provision, it would expand the state corporate income tax to apply to business that are taxed in federal law as S-Corporations, requiring a limited number of privately-owned businesses, including LLCs, to pay corporate income tax to the state.
The Governor and some members of the House criticized the Conference Committee version of HB 381, which the Conference Committee presented to the public and the Legislature on the morning of July 16th.
After the Senate passed HB 381, the Governor issued a call for a third 2026 special session on July 27th, showing his intent to veto the legislation if the House had not voted against the measure. A gas pipeline bill remains a priority for the Governor.
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