
Alexi Painter
36:14 - 36:58
"The rate for the AVT is a blend of multiple rates, weighted by the capital expenditure weight of each category. So there's a 6 cents per MCF rate for the pipeline component. That's Phase 1. And then there is a 12-cent per MCF rate for the gas treatment plant and carbon capture facility component, which is part of Phase 2, and then a 12-cent per MCF tax component for the LNG plant."
“The rate for the AVT is a blend of multiple rates, weighted by the capital expenditure weight of each category. So there's a 6 cents per MCF rate for the pipeline component. That's Phase 1. And then there is a 12-cent per MCF rate for the gas treatment plant and carbon capture facility component, which is part of Phase 2, and then a 12-cent per MCF tax component for the LNG plant.”
The rate for the AVT is a blend of multiple rates, weighted by the capital expenditure weight of each category. So there's a 6 cents per MCF rate for the pipeline component. That's Phase 1. And then there is a 12-cent per MCF rate for the gas treatment plant and carbon capture facility component, which is part of Phase 2, and then a 12-cent per MCF tax component for the LNG plant. And then we'll see some sample calculations of how that works, but essentially the— this— each of these rates will be weighted by the capital expenditures of the relative amounts to come up with a blended tax rate $0.02 for each MCF of gas that flows through the line.
Kenai Peninsula Borough Mayor Peter Micciche told the Alaska Senate Finance Committee Wednesday that the House version of the Alaska LNG tax bill provides a workable 70% property tax reduction, while the original 90% cut would have left local taxpayers subsidizing the project.

Legislative Finance Division analysis shows the alternative volumetric tax structure in Senate Bill 2001 would generate approximately $124 million annually when the full Alaska LNG project is operational, with Kenai Peninsula Borough receiving $55 million and North Slope Borough receiving $40 million based on capital expenditure weights.
