Dunleavy vetoes transit plan, calls special session on gas pipeline tax

Governor Mike Dunleavy vetoed a statewide transit planning bill and called the Alaska Legislature into special session to address natural gas pipeline taxation.

The Senate Secretary read two messages from the governor during Thursday's floor session. Dunleavy vetoed Senate CS for CS for House Bill 26. The bill would have required the Department of Transportation and Public Facilities to develop a statewide public and community transit plan. The veto message was dated May 20.

The governor issued a proclamation dated May 19, 2026, calling legislators into their second special session of the year. The session began immediately. Legislators will consider legislation on natural gas pipeline property taxation.

The special session focuses on House Bill 381. The bill addresses taxation of natural gas pipeline property, municipal taxation limitations, and an alternative volumetric tax on natural gas. The Senate Rules Committee introduced Senate Bill 2001 by request of the governor. The bill covers natural gas property taxation, the Alaska Gas Line Development Corporation, revenue from a North Slope natural gas project, and regulation of liquefied natural gas import facilities. The bill was referred to the Senate Finance Committee.

Senate Finance Committee Chair Bert Stedman said hearings will begin Wednesday at 9 a.m. Staff from the Finance and Resources committees are coordinating to prepare documents and reviews ahead of the first hearing. Stedman said the committee plans to run a normal schedule of 9 a.m. to 11 a.m. The House Finance Committee is expected to hold afternoon sessions so members can observe both presentations.

Stedman said the schedule beyond Wednesday remains under discussion. Staff are coordinating with the House to synchronize presentations and avoid scheduling conflicts for witnesses traveling to Juneau. The committee has begun discussions with the governor's office. The committee will work with the governor's agencies, including the Department of Revenue, the Department of Natural Resources, and the Department of Law.

The Senate passed two concurrent resolutions Thursday. The resolutions authorize the body to recess for more than three days and suspend uniform rules to allow bills to carry over into the special session. Both resolutions passed 16 to 0.

The Senate adjourned until June 4.