05/14/2025 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB29 | |
| SJR19 | |
| SJR17 | |
| SJR8 | |
| HB206 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 206 | TELECONFERENCED | |
| + | SJR 17 | TELECONFERENCED | |
| + | SJR 8 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 29 | TELECONFERENCED | |
| += | SJR 19 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
May 14, 2025
2:01 p.m.
MEMBERS PRESENT
Representative Robyn Niayuq Burke, Co-Chair
Representative Maxine Dibert, Co-Chair
Representative Carolyn Hall
Representative Donna Mears
Representative Zack Fields
Representative Dan Saddler
Representative George Rauscher
Representative Julie Coulombe
Representative Bill Elam
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 29
"An Act relating to an executive administrator for the Big Game
Commercial Services Board."
- MOVED SB 29 OUT OF COMMITTEE
CS FOR SENATE JOINT RESOLUTION NO. 19(RES)
Urging the United States Congress to honor the terms of the
Mineral Leasing Act and the Alaska Statehood Act and provide the
state with a 90 percent share of all bonuses, royalties, and
rentals received by the federal government from the Arctic
National Wildlife Refuge and the National Petroleum Reserve in
Alaska.
- MOVED HCS CSSJR 19(RES) OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 17
Recognizing and honoring the 50th anniversary of The Energy
Council.
- MOVED SJR 17 OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 8
Relating to strengthening international relations with Taiwan.
- MOVED SJR 8 OUT OF COMMITTEE
HOUSE BILL NO. 206
"An Act relating to disclosure of oil and gas production tax
information."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 29
SHORT TITLE: BIG GAME COMMERCIAL SERVICES BOARD
SPONSOR(s): SENATOR(s) BJORKMAN
01/22/25 (S) PREFILE RELEASED 1/10/25
01/22/25 (S) READ THE FIRST TIME - REFERRALS
01/22/25 (S) RES, FIN
02/03/25 (S) RES AT 3:30 PM BUTROVICH 205
02/03/25 (S) Heard & Held
02/03/25 (S) MINUTE(RES)
02/17/25 (S) RES AT 3:30 PM BUTROVICH 205
02/17/25 (S) Moved SB 29 Out of Committee
02/17/25 (S) MINUTE(RES)
02/19/25 (S) RES RPT 5DP 2NR
02/19/25 (S) DP: GIESSEL, HUGHES, DUNBAR, CLAMAN,
WIELECHOWSKI
02/19/25 (S) NR: KAWASAKI, MYERS
04/01/25 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/01/25 (S) Heard & Held
04/01/25 (S) MINUTE(FIN)
04/11/25 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/11/25 (S) Moved SB 29 Out of Committee
04/11/25 (S) MINUTE(FIN)
04/14/25 (S) FIN RPT 4DP 2NR
04/14/25 (S) DP: OLSON, STEDMAN, HOFFMAN, CRONK
04/14/25 (S) NR: MERRICK, KIEHL
04/23/25 (S) TRANSMITTED TO (H)
04/23/25 (S) VERSION: SB 29
04/25/25 (H) READ THE FIRST TIME - REFERRALS
04/25/25 (H) RES, FIN
05/05/25 (H) RES AT 1:00 PM BARNES 124
05/05/25 (H) Heard & Held
05/05/25 (H) MINUTE(RES)
05/12/25 (H) RES AT 1:00 PM BARNES 124
05/12/25 (H) -- MEETING CANCELED --
05/14/25 (H) RES AT 1:00 PM BARNES 124
BILL: SJR 19
SHORT TITLE: ANWR & NAT'L PETRO RESERVE: STATE SHARE
SPONSOR(s): SENATOR(s) BJORKMAN
04/10/25 (S) READ THE FIRST TIME - REFERRALS
04/10/25 (S) RES
04/11/25 (S) RES AT 3:30 PM BUTROVICH 205
04/11/25 (S) Heard & Held
04/11/25 (S) MINUTE(RES)
04/14/25 (S) RES AT 3:30 PM BUTROVICH 205
04/14/25 (S) Heard & Held
04/14/25 (S) MINUTE(RES)
04/23/25 (S) RES AT 3:30 PM BUTROVICH 205
04/23/25 (S) Moved CSSJR 19(RES) Out of Committee
04/23/25 (S) MINUTE(RES)
04/25/25 (S) RES RPT CS 7DP SAME TITLE
04/25/25 (S) DP: GIESSEL, HUGHES, DUNBAR, CLAMAN,
KAWASAKI, MYERS, WIELECHOWSKI
05/05/25 (S) TRANSMITTED TO (H)
05/05/25 (S) VERSION: CSSJR 19(RES)
05/07/25 (H) READ THE FIRST TIME - REFERRALS
05/07/25 (H) RES
05/09/25 (H) RES AT 1:00 PM BARNES 124
05/09/25 (H) Heard & Held
05/09/25 (H) MINUTE(RES)
05/14/25 (H) RES AT 1:00 PM BARNES 124
BILL: SJR 17
SHORT TITLE: HONORING THE ENERGY COUNCIL
SPONSOR(s): SENATOR(s) STEDMAN
04/02/25 (S) READ THE FIRST TIME - REFERRALS
04/02/25 (S) FIN
05/05/25 (S) FIN AT 9:00 AM SENATE FINANCE 532
05/05/25 (S) Moved SJR 17 Out of Committee
05/05/25 (S) MINUTE(FIN)
05/07/25 (S) FIN RPT 7DP
05/07/25 (S) DP: OLSON, STEDMAN, HOFFMAN, KAUFMAN,
CRONK, MERRICK, KIEHL
05/12/25 (S) TRANSMITTED TO (H)
05/12/25 (S) VERSION: SJR 17
05/13/25 (H) READ THE FIRST TIME - REFERRALS
05/13/25 (H) RES
05/14/25 (H) RES AT 1:00 PM BARNES 124
BILL: SJR 8
SHORT TITLE: INTERNATIONAL RELATIONS WITH TAIWAN
SPONSOR(s): SENATOR(s) GRAY-JACKSON
02/14/25 (S) READ THE FIRST TIME - REFERRALS
02/14/25 (S) RES
03/19/25 (S) RES AT 3:30 PM BUTROVICH 205
03/19/25 (S) Heard & Held
03/19/25 (S) MINUTE(RES)
04/23/25 (S) RES AT 3:30 PM BUTROVICH 205
04/23/25 (S) Moved SJR 8 Out of Committee
04/23/25 (S) MINUTE(RES)
04/25/25 (S) RES RPT 6DP 1NR
04/25/25 (S) DP: GIESSEL, HUGHES, DUNBAR, CLAMAN,
MYERS, WIELECHOWSKI
04/25/25 (S) NR: KAWASAKI
05/09/25 (S) TRANSMITTED TO (H)
05/09/25 (S) VERSION: SJR 8
05/10/25 (H) READ THE FIRST TIME - REFERRALS
05/10/25 (H) RES
05/14/25 (H) RES AT 1:00 PM BARNES 124
BILL: HB 206
SHORT TITLE: OIL AND GAS DATA
SPONSOR(s): REPRESENTATIVE(s) MEARS
04/22/25 (H) READ THE FIRST TIME - REFERRALS
04/22/25 (H) RES, FIN
05/14/25 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
CALVIN ZUELOW, Staff
Representative Burke
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the committee substitute for SJR
19.
SENATOR JESSE BJORKMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, answered questions
regarding the proposed Committee Substitute to SJR 19.
SENATOR BERT STEDMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced SJR 17 and
answered questions.
SENATOR GRAY-JACKSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced SJR 8.
Clark Bickford, staff
Senator Gray-Jackson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Senator Gray-Jackson, prime
sponsor, answered questions regarding SJR 8.
JEFF CHEN, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 8.
DANIEL CHEN, representing self
Seattle, Washington
POSITION STATEMENT: Testified in support of SJR 8.
SOPHIE CHEN, Deputy Director
Taipei Economic and Cultural Office
Seattle, Washington
POSITION STATEMENT: Testified in support of SJR 8.
REPRESENTATIVE MEARS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 206 and co-
presented a PowerPoint.
COREY ALT, staff
Representative Donna Mears
Alaska State Legislature
POSITION STATEMENT: On behalf of Representative Mears, prime
sponsor, co-presented a PowerPoint on HB 206.
ACTION NARRATIVE
2:01:04 PM
CO-CHAIR BURKE called the House Resources Standing Committee
meeting to order at 2:01 p.m. Representatives Burke, Dibert,
Hall, Mears, Fields, Rauscher, and Elam were present at the call
to order. Representatives Coulombe and Saddler arrived as the
meeting was in progress.
SB 29-BIG GAME COMMERCIAL SERVICES BOARD
2:01:36 PM
CO-CHAIR BURKE announced that the first order of business would
be SENATE BILL NO. 29 "An Act relating to an executive
administrator for the Big Game Commercial Services Board."
2:02:16 PM
REPRESENTATIVE DIBERT moved Senate Bill 29, work order 34-
LS0287\A from committee with attached fiscal note and individual
recommendations.
2:02:35 PM
There being no objection, SB 29 was reported out of the House
Resources Standing Committee.
2:02:47 PM
The committee took an at-ease from 2:02 p.m. to 2:04 p.m.
SJR 19-ANWR & NAT'L PETRO RESERVE: STATE SHARE
2:04:51 PM
CO-CHAIR BURKE announced that the next order of business would
be SENATE JOINT RESOLUTION NO. 19, Urging the United States
Congress to honor the terms of the Mineral Leasing Act and the
Alaska Statehood Act and provide the state with a 90 percent
share of all bonuses, royalties, and rentals received by the
federal government from the Arctic National Wildlife Refuge and
the National Petroleum Reserve in Alaska.
2:05:05 PM
CO-CHAIR DIBERT moved that Resources committee adopt the draft
committee substitute for SJR 19, work order 34-LS0840\O, as the
working document.
2:05:20 PM
REPRESENTATIVE RAUSCHER objected for the sake of discussion.
2:05:35 PM
CALVIN ZUELOW, Staff, Representative Burke, Alaska State
Legislature, explained the proposed committee substitute (CS)
for SJR 19. He drew the committee's attention to version H,
page 4, line 2, it deletes language that read, "small number
of," referring to communities that received impact grants. In
version H, page 4, line 22, the CS adds language reading, "while
maintaining the original local impact grant program."
2:06:35 PM
SENATOR JESSE BJORKMAN, Alaska State Legislature, responded to a
question from Representative Rauscher, by explaining that the
issue of impact grants will need to addressed. As more fields
are developed on federal land, and the size of those impacts
increase, more attention will be paid to the amount of money
delivered through the impact grants as well as what the impacts
of development are on those communities. Also, there will be
more focus on what the impact money is used for. He explained
that he didn't necessarily take issue with mentioning the impact
grants in the resolution. However, he suggested that everyone
would need a clear understanding of what the program is, what it
does, its intention, and the impact that it will have on those
five or six affected communities in the North Slope district.
There will alco be interest in that will mean to the rest of
Alaska. He explained he had hoped to avoid this conversation in
this resolution, but the conversation is one that would
eventually become unavoidable.
2:08:13 PM
CO-CHAIR BURKE responded to a question by Representative
Rauscher by explaining that having the discussion is unavoidable
and it is important to address.
2:08:27 PM
REPRESENTATIVE RAUSCHER removed his objection.
2:08:30 PM
There being no objection, the House Resources Committee
Substitute for Senate Joint Resolution 19 was adopted.
2:09:00 PM
CO-CHAIR DIBERT moved Senate Joint Resolution 19, work order 34-
LS0840\O from committee with attached zero fiscal note and
individual recommendations.
REPRESENTATIVE RAUSCHER objected.
2:09:40 PM
The committee took a brief at-ease at 2:09 p.m.
2:10:42 PM
REPRESENTATIVE RAUSCHER spoke to his objection, explaining that
there needed to be a discussion regarding the affected
communities.
2:11:05 PM
CO-CHAIR BURKE addressed Representative Rauscher's objection.
She described discussions with her constituents and with North
Slope Borough Mayor Patkotak. She emphasized the importance of
mitigation funding to the state as well as impacted communities.
She pointed out that in current law, Congress required that 50
percent of all federal lease revenues, including bonuses,
rentals, and royalties, must go to the state of Alaska, and that
those funds must go to support the most directly impacted
communities. There was discussion happening on a federal level
regarding the 90/10. [The 90/10 referred to the statehood
promise that 90 percent of royalties from production on federal
lands would go to Alaska, and the remaining 10 percent would go
to the federal government.] She explained that she supported
the resolution, including the additional 40 percent for all
Alaskans. But as previously stated, for communities such as
Atqasuk, Nuiqsut, Wainwright, and Utqiagvik the impact grants
are essential. The grants support the infrastructure and public
services needed to live safely and sustainably in a region
heavily affected by industrial activity. Absent that support,
the communities are left to bear the impacts of oil and gas
development without the resources to respond. In the 1980's
when the state diverted these funds elsewhere, the North Slope
communities took that matter to court and won. The ruling
affirmed the state must fund the impacted communities first.
2:13:12 PM
CO-CHAIR BURKE, in response to a question from Representative
Rauscher, explained that she had worked with Mayor Patkotak and
his office on drafting the changes.
REPRESENTATIVE RAUSCHER removed his objection.
2:13:24 PM
REPRESENTATIVE ELAM objected for the purpose of discussion. He
asked about the level of impact.
CO-CHAIR BURKE explained that the intent of the resolution is to
urge the additional 40 percent from the federal government for
the full 90/10 and honor the mineral leasing act in the Alaska
Statehood Act. She commented that the industry will continue to
grow, particularly in the National Petroleum Reserve-Alaska
(NPR-A) regions and will continue to impact the communities that
are in NPR-A.
2:14:45 PM
SENATOR BJORKMAN acknowledged the importance of the conversation
and said it would need additional time to discuss. He pointed
out that both the resolution as written as well as the amended
CS don't affect the grant program. He stated that the amount of
money is around the $30 million per year mark, and the Revenue
Sources book posits that amount of money will increase by
approximately eight to ten times over the course of the years as
a result of increased production. Though it will be an
important discussion to have as a state, it would not need to
appear within the context of the resolution. His original
intent had been to be silent on impact grants, but he clearly
understood why those were important considerations. The primary
thrust remained that the 90 percent share needs to come to the
state of Alaska. Once the money gets here, what happens to that
90 percent would be a different conversation.
2:16:22 PM
CO-CHAIR BURKE answered "yes" to Representative Raucher's
question regarding whether Congressman Begich had included the
90/10 in the reconciliation package.
2:17:19 PM
SENATOR BJORKMAN addressed a series of questions posed by
Representative Saddler regarding the projected distribution of
the 90 percent. He explained that if the impact grant is
preserved as is, the impacted communities would get 50 percent
of the state's share of 90 percent, and the state would get 40.
There are conversations that could happen as to what communities
are impacted, what is considered an impact, and what the impact
money can be used for. He stated that communities should have
compensation when they are impacted. He clarified the
percentages and the split regarding the total amount of the
royalties that would be generated,
2:19:04 PM
REPRESENTATIVE ELAM removed his objection.
2:19:12 PM
CO-CHAIR BURKE, in response to a question by Representative
Coulombe, explained why the change was in the form of a CS
rather than a resolution.
REPRESENTATIVE COULOMBE maintained her objection. She spoke to
her objection.
2:20:02 PM
SENATOR BJORKMAN clarified his position and said he respected
the will of the committee. He pointed out that in order for the
state to secure its birthright, the 90 percent share of the
royalties, it is important to move this resolution forward.
CO-CHAIR BURKE explained that she had worked with Senator
Bjorkman as well as having extensive conversations with
constituents prior to offering the CS.
2:21:11 PM
REPRESENTATIVE COULOMBE removed her objection.
2:21:15 PM
The committee took a brief at-ease at 2:21 p.m.
2:22:02 PM
Seeing no further objections, Senate Joint Resolution 19 was
reported out of the House Resources Standing Committee.
SJR 17-HONORING THE ENERGY COUNCIL
2:22:18 PM
CO-CHAIR BURKE announced that the next order of business would
be SENATE JOINT RESOLUTION NO. 17, Recognizing and honoring the
50th anniversary of The Energy Council.
2:22:45 PM
SENATOR BERT STEDMAN, Alaska State Legislature, as prime
sponsor, introduced Senate Joint Resolution 17 and provided
background information regarding the Energy Council. He
explained that Alaska has belonged to the council for many
years. The resolution recognized five decades of contributions
in advancing energy policy. The council was established in 1975
as a non-partisan platform and includes state legislators from
14 states and representatives from several Canadian provinces.
The focus emphasizes energy stability, affordability, and
reliability and educates legislators on emerging energy trends
including renewables. He explained that the energy council
tries to be aware of trends and keep a couple of years ahead, so
they can advise legislatures regarding what changes may be
taking place in the marketplace. The council also works with
the national labs and keeps up-to-date regarding how to respond
to oil spills, including using enzymes that eat oil. He
addressed energy-specific issues in the artic and invited the
legislators to the Energy Council meeting in Anchorage in
September 2025.
2:33:23 PM
REPRESENTATIVE RAUSCHER expanded on a number of points brought
up by Senator Stedman regarding the work of the Energy Council.
2:35:05 PM
SENATOR STEDMAN responded to several questions from
Representative Coulombe, explaining that each state has four
non-partisan positions on the executive committee, two from the
senate and two from the house. The council meets three times a
year. The regular meetings have been open to all members of the
legislature and also include representatives from universities,
the scientistic community, and industry sponsors. He described
the process used to create policy statements which included the
input of scientists and university representatives. He
emphasized that energy policy is created at the state level not
the national level. He said the council has tried to stay non-
partisan, though there has been a bias toward production because
the council is made of energy-producing states and provinces
rather than consuming states, so the focus has been on
production and distribution. He touched on the technology of
batteries and micronuclear energy.
2:41:26 PM
CO-CHAIR BURKE opened public testimony on SJR 17.
2:41:36 PM
CO-CHAIR BURKE, after ascertaining there was no one who wished
to testify, closed public testimony.
2:41:48 PM
CO-CHAIR DIBERT moved re report SJR 17 work order 34-LS0748\A
from committee with attached fiscal note and individual
recommendations.
2:42:06 PM
There being no objection, SJR 17 was reported out of the House
Resources Standing Committee.
SJR 8-INTERNATIONAL RELATIONS WITH TAIWAN
2:42:23 PM
CO-CHAIR BURKE announced that the next order of business would
be SENATE JOINT RESOLUTION NO. 8, Relating to strengthening
international relations with Taiwan.
2:42:51 PM
SENATOR GRAY-JACKSON, Alaska State Legislature, as prime
sponsor, introduced SJR 8 and presented the sponsor statement
[hard copy included in the committee packet] which read as
follows [original punctuation provided]:
Sponsor Statement: Senate Joint Resolution 8
International Relations with Taiwan
Senate Joint Resolution 8 reaffirms Alaska's
commitment to strengthening its relationship with
Taiwan and recognizes the deep economic, cultural, and
educational ties between our state and this vital
international partner.
Taiwan and the United States have enjoyed a strong
partnership built on shared values of democracy, human
rights, and the rule of law. Taiwan is a key economic
partner for both the nation and the state of Alaska,
ranking as our eighth-largest export market in 2023
and our fourth-largest market in Asia. This resolution
highlights the importance of expanding trade
relations, particularly in Alaska's seafood industry,
which benefits from Taiwan's status as a major
consumer of high-quality seafood products.
Additionally, Alaska and Taiwan share a long history
of cultural and educational exchanges, including
sister-city partnerships between Fairbanks and Tainan
City, Juneau and Chiayi City, and Anchorage and Taipei
City. Reestablishing an Alaska Trade Office in Taiwan
would further bolster these connections, enhance
economic opportunities, and create a foundation for
greater collaboration in technology, education, and
tourism.
SJR 8 also supports Taiwan's meaningful participation
in international organizations that promote global
trade, health, and security, in alignment with the
United States' longstanding support for Taiwan's
presence in the World Health Organization, the
International Civil Aviation Organization, and other
key institutions.
By passing this resolution, Alaska can reaffirm its
dedication to fostering a strong and mutually
beneficial relationship with Taiwan, supporting
economic growth, cultural exchange, and international
cooperation.
2:44:37 PM
SENATOR GRAY-JACKSON, in response to a question from
Representative Coulombe, explained that there is no longer a
trade office in Taiwan.
2:45:26 PM
Clark Bickford, staff, Senator Gray-Jackson, Alaska State
Legislature, on behalf of Senator Gray-Jackson, prime sponsor,
answered questions from Representative Coulombe regarding SJR 8.
He explained that during a recent trip the senator made to
Taiwan, she met with Taiwanese officials and reaffirmed the
importance of the economic ties between Alaska and Taiwan.
2:45:52 PM
The committee took a brief at-ease at 2:45 p.m.
2:46:11 PM
REPRESENTATIVE RAUSCHER moved Amendment 1 to SJR 8. He
explained that his amendment added language underscoring the
potential support for Alaska's liquified natural gas (LNG) as
well as the shared energy trade interests between the state and
Tiawan.
2:47:08 PM
CO-CHAIR BURKE objected for the purpose of discussion.
2:47:15 PM
SENATOR GRAY-JACKSON responded to Representative Rauscher's
proposed amendment, explaining the importance of maintaining a
neutral stance regarding LNG to avoid discouraging or alienating
other potential Asian partners. She underscored the importance
of keeping the resolution broad and inclusive rather than
focusing on a specific industry. She urged the committee
members to vote no on the amendment.
2:47:56 PM
REPRESENTATIVE SADDLER suggested that Alaska should be willing
to support whoever is first to make a commitment to buy Alaska's
gas.
2:48:27 PM
REPRESENTATIVE RAUSCHER pointed out that the resolution does
specifically support the fishing industry.
2:48:49 PM
MR. BICKFORD pointed out that there is a stand-alone resolution
speaking to the support of the LNG project.
2:49:11 PM
CO-CHAIR BURKE maintained her objection.
A roll call vote was taken. Representatives Coulombe, Rauscher,
Saddler, and Elam voted in favor of Amendment 1.
Representatives Fields, Hall, Mears, Dibert, and Burke voted
against it. Therefore, Amendment 1 to SJR 8 failed by a vote of
4-5.
2:50:12 PM
CO-CHAIR BURKE opened public testimony on SJR 8.
2:50:32 PM
JEFF CHEN, representing self, spoke in support of SJR 8. He
explained that he is a small business owner, former commissioner
of the Anchorage sister city commission, and that he is a
Taiwanese Alaskan. He explained that both Taiwan and Alaska
have a lot to gain from increased trade. He provided examples
illustrating the benefits of such a relationship. He supported
opening a trade office in Alaska.
2:53:00 PM
DANIEL CHEN, representing self, spoke in support of SJR 8. He
discussed the importance of cooperation between Taiwan and
Alaska, pointing to imports and exports, the seafood industry,
and the advantages of strengthening the energy market.
2:55:49 PM
SOPHIE CHEN, Deputy Director, Taipei Economic and Cultural
Office, spoke in support of SJR 8. She emphasized the long-
standing cooperation between Alaska and Taiwan regarding energy,
seafood, and tourism and the possibility of expanding trade.
2:58:28 PM
CO-CHAIR BURKE closed public testimony.
2:58:43 PM
REPRESENTATIVE SADDLER expressed his concern for a resolution
that calls on the state to make a specific financial commitment.
He did acknowledge the vital relationship with Taiwan that
benefits the economies of both Taiwan and Alaska and its
geopolitical importance.
2:59:46 PM
MR. BICKFORD responded to Representative Saddler's concern
regarding the expense, explaining that Taiwan would partially
subsidize the office rent. He also noted the growth and
economic value during the first implementation of the trade
office had been high, indicating that a re-opened office would
promote sufficient economic growth to cover the costs.
3:00:28 PM
MR. BICKFORD, in response to a question from Representative Elam
regarding why the office in Taiwan was closed, explained that it
was closed in 1990 by Governor Sheffield, and he was unsure of
the reason.
3:01:15 PM
CO-CHAIR DIBERT moved to report SJR 8, work order 34-LS0442\A
from committee with attached fiscal note and individual
recommendations.
3:01:41 PM
There being no objection, SJR 8 was reported from the House
Resources Standing Committee.
3:01:52 PM
The committee took an at-ease from 3:01 p.m. to 3:03 p.m.
[CO-CHAIR BURKE passed the gavel to CO-CHAIR DIBERT.]
HB 206-OIL AND GAS DATA
3:03:29 PM
CO-CHAIR DIBERT announced that the next order of business would
be HOUSE BILL NO. 206, "An Act relating to disclosure of oil and
gas production tax information."
3:03:57 PM
REPRESENTATIVE MEARS, Alaska State Legislature, as prime
sponsor, introduced HB 206 to the committee. She commented that
the most-asked question in the building is, "Where are we going
to get the money." She pointed out that the state is in a
business relationship with the oil industry, providing access to
resources owned by the people of Alaska in exchange for a share
of the proceeds. She explained that it has been over a decade
since the state comprehensively evaluated the terms, and in that
time a lot has changed including fluctuating oil prices,
companies changing hands, and two new big developments. She
pointed out that the president had targeted $50 per barrel oil
while the state's budget was based on $68 revenues. She stated
that it was time to revisit whether the policy environment is
achieving the goals set out, and, related to that, there is a
responsibility to make sure the tax system is working for
Alaska. She emphasized that both the oil industry and their
constituents depend on the Legislature. She described the
process her office used to craft the legislation.
3:06:11 PM
COREY ALT, staff, Representative Donna Mears, on behalf of
Representative Mears, prime sponsor, co-presented a PowerPoint
regarding HB 206 [hard copies in the committee packet]. He
presented slides 2 and 3, both titled "Our Responsibility,"
which read as follows [original punctuation provided]:
"The legislature shall provide for the utilization,
development, and conservation of all natural resources
belonging to the State, including land and waters, for
the maximum benefit of its people."
Article VIII, Sec. 2
Utilization and development requires balancing
competing priorities:
1. Providing a tax environment that incentivizes
robust and competitive development; and
2. Collecting taxes and royalties to provide the
benefits of our resources to all Alaskans.
The legislature facilitates a balance between the
needs of industry and the people of Alaska using tax
and royalty policy.
3:07:26 PM
MR. ALT described a seminar presented by oil and gas consultant
Rich Ruggiero regarding policy design for oil and gas taxes. An
important take-away was that, all numbers aside, a tax system
should be designed around what outcomes it is trying to produce.
He showed the 3, 4, and 5, titled "What's the problem?" which
read as follows [original punctuation provided]:
• What resource development outcomes are we trying to
achieve with our tax system?
A competitive and dynamic development environment that
brings:
• Increased production
• Increased competition
• Increased investment
The Legislature is unable to judge the effectiveness
of its tax policies
• The resource development environment has
changed significantly since SB21 (2013) and the
assumptions made at the time are not today's reality.
• Does our tax system still meet its goals at $70
oil? $60?
• Would we know if it didn't?
What information do legislators need to know?
• Is Alaska an attractive place to invest? How does it
compare to other jurisdictions?
• How does our tax system impact different producers,
depending on their position in the market?
• Is the legislature fulfilling its obligation to
provide the maximum benefit to Alaskans?
• Has our system's effectiveness changed over time?
Legislators are currently prohibited from accessing
disaggregated information about producers that would
provide answers to these questions.
3:09:15 PM
MR. ALT pointed out that the legislature is unable to judge the
effectiveness of its tax system because the law prevents
legislators and the public from accessing that information. He
proceeded to slide 7 titled "Alaska's Unique Structure," which
read as follows [original punctuation provided]:
• Alaska has a net tax systemcompanies are only taxed
on their profits.
• Most oil-producing statesTX, OK, WY, CO, NMhave a
gross tax system.
• Under a net tax, the public has a greater interest
in transparency because of the higher revenue
volatility inherent in the system.
3:10:50 PM
MR. ALT drew the committee's attention to the chart on
slide 7, which showed scenarios of production costs, taxes,
and profits and compared the taxes paid and the profits
under a gross tax system and a net tax system. He then
moved to slide 8, also titled "Alaska's Unique Structure,"
which read as follows [original punctuation provided]:
Weakening Disclosures:
• In 2006, Alaska transitioned from a gross (ELF) to a
net tax under the Petroleum Profits Tax (PPT)
• It quickly became clear that the PPT system
lacked sufficient disclosure, both to the Department
of Revenue and the public
• ACES (2007) implemented the current statute to
address such concerns, requiring that data be
aggregated among 3 producers in a unit.
• In 2016, DOR published information on four
individual units. Today Prudhoe is the only one.
3:12:34 PM
MR. ALT explained that under Alaska's net tax system, volatility
was inherent in the system. As a result, the profitability of
oil producers is of much greater import to the state, and
disclosure of and access to the data is in the public's best
interest. He compared levels of disclosure, using Texas as an
example where tax returns of producers were public information
broken down by well and by month. By contrast, the Alaska
Department of Revenue only published total annual investments by
producers, and the information was not readily available to the
public. With the exception of Prudhoe Bay, it was not broken
down by unit or month.
3:14:20 PM
CO-CHAIR DIBERT asked Rep Mears if she had final comments.
3:14:39 PM
REPRESENTATIVE MEARS explained that the purpose of introducing
HB 206 to the committee was to start this important discussion.
3:15:09 PM
[HB 206 was held over.]
3:15:45 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 3:15 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 206 Presentation.pdf |
HRES 5/14/2025 1:00:00 PM |
HB 206 |
| HB 206 Sponsor Statement.pdf |
HRES 5/14/2025 1:00:00 PM |
HB 206 |
| HB 206 Sectional Analysis.pdf |
HRES 5/14/2025 1:00:00 PM |
HB 206 |
| SJR 8 Sponsor Statement .pdf |
HRES 5/14/2025 1:00:00 PM |
SJR 8 |
| SJR 8 supporting doc - Office Rent Subsidy for Offices of Foreign State Govts.pdf |
HRES 5/14/2025 1:00:00 PM |
SJR 8 |
| Draft HCSSJR 19 (RES) ver O.pdf |
HRES 5/14/2025 1:00:00 PM |
SJR 19 |
| SJR 19 summary of changes ver H to O.pdf |
HRES 5/14/2025 1:00:00 PM |
SJR 19 |
| SJR 17 Sponsor Statement version A 5.13.25.pdf |
HRES 5/14/2025 1:00:00 PM |
SJR 17 |