Alaska Senate digs in on gas tax bill, sends it to conference

The Alaska State Senate voted 16-0 Saturday to hold its ground on House Bill 381, the natural gas pipeline tax bill, sending it to a conference committee where negotiators from both chambers will try to resolve competing visions for how Alaska should tax the Alaska LNG Project.

Senate Majority Leader Cathy Giessel made the motion herself, telling the chamber she moved "that the Senate recede from its amendments to House Bill 381 and recommend that the Senate vote no." Every senator present voted no on receding, meaning the Senate kept its version of the bill intact and forced the two chambers into a joint negotiating process.

The House had already named its conference team: Representative Schragg as chair, along with Representatives Edgeman and Ruffridge. Giessel then appointed Senator Lyman Hoffman as the Senate's conference chair, with Senators Bert Stedman and Mike Cronk rounding out the team. Giessel moved to adjourn until "11 a.m. Wednesday, July 1, 2026."

At the center of the dispute is how Alaska taxes the Alaska LNG Project, a proposed pipeline and liquefaction complex that would move North Slope natural gas to tidewater for export. The project has been under discussion for decades. The core question is whether to replace the existing oil and gas property tax with an alternative tax based on how much gas flows through the pipeline, and if so, at what rate and on what terms.

The answer matters well beyond Juneau. Municipal governments and school districts along the project route stand to gain or lose significant revenue depending on how negotiators resolve the competing tax structures. The conference committee must bridge those differences before the Senate returns July 1.