Alaska Senate refuses to recede on HB 381, sends gas tax bill to conference

The Alaska State Senate voted 0-16 Saturday on whether to recede from its amendments to House Bill 381, the natural gas pipeline taxation bill. The Senate refused to recede, sending the measure to a conference committee and leaving unresolved the competing visions of 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." The chamber followed without a single dissent, with 0 yeas and 16 nays recorded.

The vote came after the House formally requested that the Senate recede from its amendments. The House message noted that, if the Senate did not recede, the speaker had appointed the following members to a conference committee: Representative Schragg, chair; Representative Edgeman; and Representative Ruffridge. Following the Senate's refusal to recede, Giessel appointed Senator Lyman Hoffman as conference committee chair, along with Senators Bert Stedman and Mike Cronk. Giessel then moved to adjourn, saying she moved "that the Senate stand in adjournment until 11 a.m. Wednesday, July 1, 2026."

Earlier in the session, the Senate passed House Concurrent Resolution 301, which suspended certain uniform rules relating to the carryover of bills to a special session, and House Concurrent Resolution 302, which authorized the legislature to recess for more than three days. Both resolutions passed 16-0.

What the Senate's Amendments Cover

At stake is how Alaska taxes the Alaska LNG Project, a pipeline and liquefaction complex under discussion for decades. According to the governor's proclamation read into the record, House Bill 381 addresses the taxation of certain natural gas project property and related facilities, local contributions for public school funding, municipal property taxes, the Alaska Gasline Development Corporation, reporting requirements for natural gas pipeline projects, the creation of the Alaska Affordable Heating Fuel Fund, approval of contracts by the Regulatory Commission of Alaska, an alternative volumetric tax on natural gas throughput, and a municipal impact grant program.

What Comes Next

The session also saw the introduction of Senate Bill 3001 and Senate Bill 3002, both referred to the Finance Committee. Senate Bill 3001 covers substantially the same subjects as House Bill 381, while Senate Bill 3002 addresses the elimination of income taxes on pass-through entities. Both were introduced by the Senate Rules Committee at the request of the governor.

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.