Legislature(2025 - 2026)BUTROVICH 205
04/04/2025 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB128 | |
| SB112 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 128 | TELECONFERENCED | |
| += | SB 112 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
April 4, 2025
3:30 p.m.
MEMBERS PRESENT
Senator Cathy Giessel, Chair
Senator Bill Wielechowski, Vice Chair
Senator Matt Claman
Senator Forrest Dunbar
Senator Scott Kawasaki
Senator Shelley Hughes
Senator Robert Myers
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 128
"An Act establishing the Department of Agriculture; relating to
the establishment of the Department of Agriculture; transferring
functions of the Department of Natural Resources related to
agriculture to the Department of Agriculture; and providing for
an effective date."
- HEARD & HELD
SENATE BILL NO. 112
"An Act relating to credits against the oil and gas production
tax; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 128
SHORT TITLE: CREATE DEPARTMENT OF AGRICULTURE
SPONSOR(s): RULES
03/12/25 (S) READ THE FIRST TIME - REFERRALS
03/12/25 (S) RES, FIN
03/28/25 (S) RES AT 3:30 PM BUTROVICH 205
03/28/25 (S) Heard & Held
03/28/25 (S) MINUTE(RES)
04/04/25 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 112
SHORT TITLE: OIL & GAS PRODUCTION TAX
SPONSOR(s): RULES
02/26/25 (S) READ THE FIRST TIME - REFERRALS
02/26/25 (S) RES, FIN
03/12/25 (S) RES AT 3:30 PM BUTROVICH 205
03/12/25 (S) Heard & Held
03/12/25 (S) MINUTE(RES)
04/04/25 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
HUNTER LOTTSFELDT, Staff
Senator Bill Wielechowski
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 128.
BRYAN SCORESBY, Director
Division of Agriculture
Department of Natural Resources
Palmer, Alaska
POSITION STATEMENT: Answered question on SB 128.
RENA MILLER, Special Assistant
Officer of the Commissioner
Department of Natural Resources
POSITION STATEMENT: Answered questions on SB 128.
CARRIE HARRIS, representing self
Anchor Point, Alaska
POSITION STATEMENT: Testified in opposition to SB 128.
MARTHA MERRY, representing self
Soldotna, Alaska
POSITION STATEMENT: Testified in support of SB 128.
HUNTER LOTTSFELDT, Staff
Senator Bill Wielechowski
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 112,
version I.
TIM HINTERBERGER, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 112.
LUANN MCVEY, representing self
Douglas, Alaska
POSITION STATEMENT: Testified in support of SB 112.
EMILY KANE, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 112.
TERRANCE DALTON, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 112.
KELLY DROOP, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 112.
JIM HILL, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 112.
AURORA ROTH, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 112.
GARY DIXSON, representative
Keep Alaska Competitive
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 112.
RACHAEL POSEY, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 112.
JESSE CARLSTROM, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 112.
CAROLINE STORM, Executive Director
Coalition for Education Equity
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 112.
MARGI DASHEVSKY, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 112.
LEON LYNCH, representing self
Ester, Alaska
POSITION STATEMENT: Testified in support of SB 112.
KEN HUCKABA, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 112.
JANE ANGVIK, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 112.
JANELL GRENIER, representing self
Nikiski, Alaska
POSITION STATEMENT: Testified in support of SB 112.
DANIELLE REDMOND, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 112.
ACTION NARRATIVE
3:30:48 PM
CHAIR GIESSEL called the Senate Resources Standing Committee
meeting to order at 3:30 p.m. Present at the call to order were
Senators Dunbar, Kawasaki, Hughes, Myers, and Chair Giessel.
Senators Claman and Wielechowski arrived thereafter.
SB 128-CREATE DEPARTMENT OF AGRICULTURE
3:31:37 PM
CHAIR GIESSEL announced the consideration of SENATE BILL NO. 128
"An Act establishing the Department of Agriculture; relating to
the establishment of the Department of Agriculture; transferring
functions of the Department of Natural Resources related to
agriculture to the Department of Agriculture; and providing for
an effective date."
3:32:22 PM
SENATOR WIELECHOWSKI joined the meeting.
3:32:23 PM
HUNTER LOTTSFELDT, Staff, Senator Bill Wielechowski, Alaska
State Legislature, Juneau, Alaska, paraphrased the sectional
analysis for SB 112:
[Original punctuation provided.]
Senate Bill 128:
Department of Agriculture
Sectional Analysis
Section 1: Amends AS 03.05.010 to transfer the
following responsibilities from the commissioner of
the Department of Natural Resources to the new
commissioner of the Department of Agriculture:
1) Direct, administer, and supervise work and
projects to promote the commercial and
noncommercial agriculture industry within the
state, including horticulture, dairying, cattle
raising, fur farming, grain production, vegetable
production, and agricultural products;
2) Procure, preserve, and disseminate public
information regarding agriculture within the
state;
3) Inform prospective and current agricultural
industry stakeholders of related programs and
activities available to them within the state;
4) Review marketing, financing, transportation, and
development of local agricultural products, and
negotiate marketing of local products with
federal and state agencies operating with the
state;
5) Regulate and control the flow of agricultural
products, supplies, and chemicals into the state,
which may include the use of registration,
inspection, testing, and fees;
6) Regulate elk farming similar to the regulation of
domestic animals and livestock;
7) Regulate industrial hemp, including establishing
regulations to ensure industrial hemp harvest and
seeds are pure;
8) Submit a list of individuals approved to produce
industrial hemp and their registration expiration
dates to the Marijuana Control Board and the
Department of Public Safety;
9) Regulate the labeling of seeds transferred from
community seed libraries in excess of 100 pounds;
10) Issue orders, regulations, quarantines, and
embargoes relating to agricultural activities,
sales, products, and inspections;
11) Notify the Marijuana Control Board and Department of
Public Safety if a stop order is issued to industrial
hemp growers who are not lawfully registered and/or
who are found to be producing a plant with delta-9-
tetrahydrocannabinol over 1 percent;
12) Manage the "Alaska Grown" trademark, licensing, and
associated merchandise.
3:32:53 PM
MR. LOTTSFELDT continued to paraphrase from the sectional
analysis for SB 112:
[Original punctuation provided.]
Section 2: Amends AS 03.05.027(a) to transfer the
responsibility of appointing a state coordinator for
noxious or invasive species management and education
from the commissioner of the Department of Natural
Resources to the new commissioner of the Department of
Agriculture.
Section 3: Amends AS 03.05.040(b) to transfer
responsibilities relating to agricultural inspections
from the commissioner of the Department of Natural
Resources to the commissioner of the Department of
Agriculture.
Section 4: Amends AS 03.05.050(b) to transfer
responsibilities relating to agricultural products
declared to be "public nuisance injurious to the
public interest" from the commissioner of the
Department of Natural Resources to the new
commissioner of the Department of Agriculture that are
under this commissioner's jurisdiction.
Section 5: Amends AS 03.05.075(a) to transfer the
responsibility of managing and inspecting prospective
elk farmers and the distribution of elk farming
licensing from the commissioner of the Department of
Natural Resources to the commissioner of the
Department of Agriculture.
Section 6: Amends AS 03.05.075(b) to transfer the
requirement for the commissioner the Department of
Natural Resources to the commissioner of Agriculture
to provide applications and licenses for elk farming
to the Department of Fish and Game.
Section 7: Amends AS 03.05.075(d) to transfer the
requirement for the commissioner of the Department of
Natural Resources to the commissioner of Agriculture
to establish and communicate proposed fencing
standards for elk farming with the Department of Fish
and Game.
Section 8: Amends AS 03.05.075(e) to transfer the
responsibility of regulating elk imports, exports, and
possession from the commissioner of the Department of
Natural Resources to the commissioner of the
Department of Agriculture. This section of the bill
does not change the roles of other departments in this
process.
3:33:48 PM
MR. LOTTSFELDT continued to paraphrase from the sectional
analysis for SB 112:
[Original punctuation provided.]
Section 9: Amends AS 03.05.090(a) by changing a
reference to the commissioner of the Department of
Natural Resources to the commissioner of the
Department of Agriculture. This section provides that
a person who violates statute, regulation, or
quarantine orders as determined by commissioners of
Agriculture or Environmental Conservation is guilty of
a class A misdemeanor for each offense.
Section 10: Amends AS 03.09.020(a) to transfer the
role of director of the Board of Agriculture and
Conservation from the director of the Division of
Agriculture to the commissioner of the Department of
Agriculture or the commissioner's designee. This
includes responsibility for the daily operations of
the agricultural revolving loan fund.
Section 11: Amends AS 03.20.140, relating to online
publication of noncommercial giving or exchanging of
seeds, with conforming changes to reflect the new
Title 44 Chapter 38 created under Section 45 in this
bill.
3:35:03 PM
MR. LOTTSFELDT continued to paraphrase from the sectional
analysis for SB 112:
[Original punctuation provided.]
Section 12: Amends AS 03.02.200(a) to transfer the
role of establishing a forgivable loan program for
farmers from the Division of Agriculture within the
Department of Natural Resources to the Department of
Agriculture.
Section 13: Maintaining cooperation with the
University of Alaska, this section amends AS 03.22.010
to transfer the role of establishing and maintaining
the plant materials center from the Department of
Natural Resources to the Department of Agriculture.
Section 14: Amends AS 03.22.040 to transfer the
responsibility of appointing the administrator of the
plant materials center from a joint appointment
between the Department of Natural Resources and the
University of Alaska to a joint appointment between
the Department of Agriculture and the University of
Alaska.
Section 15: Amends AS 03.47.020 to transfer the
responsibility of ensuring that apiary inspectors are
qualified to assess imported bees for disease from the
Division of Agriculture to the Department of
Agriculture.
Section 16: Amends AS 03.47.030(a) to transfer the
responsibility of investigating reports of diseased
bees from the Division of Agriculture to the
Department of Agriculture.
Section 17: Amends AS 03.47.030(b) to transfer the
responsibility of preventing the spread of bee
diseases and approving chamber fumigation for use in
controlling their spread from the Division of
Agriculture to the Department of Agriculture.
Section 18: Amends AS 03.47.030(d) to transfer the
responsibility of ensuring beekeeping equipment is
free of disease before removing a quarantine from the
Division of Agriculture to the Department of
Agriculture
Section 19: Amends AS 03.47.030(e) to change the
regulatory authority of bee disease investigations
from the Division of Agriculture to Department of
Agriculture.
3:36:39 PM
MR. LOTTSFELDT continued to paraphrase from the sectional
analysis for SB 112:
[Original punctuation provided.]
Section 20: Amends AS 03.90.010, the definitions
section for Title 3 (Agriculture, Animals, and Food),
to confirm any mention of "commissioner" and
"department" to refer to Agriculture, and no longer
Natural Resources.
Section 21: Amends AS 09.45.235(a) to clarify that the
commissioner of the Department of Agriculture is
responsible for receiving written notice from the
governing body of a local soil and water conservation
district if an agricultural facility is consistent
with a local soil conservation plan.
Section 22: Clarifies references to the United States
Departments of Agriculture and Interior under AS
14.40.450, relating to the Governor's authority to
make certificates to obtain federal grants for state
colleges of agriculture and mechanic arts.
Section 23: Amends AS 16.20.310(c) to transfer the
responsibility of coordinating with the commissioner
of the Department of Fish and Game on game management
related to the Big Delta agricultural development
project from the Department of Natural Resources to
the Department of Agriculture.
Section 24: Amends AS 27.19.030(b) to add the
commissioner of the Department of Agriculture to the
list of commissioners to consult when the commissioner
of the Department of Natural Resources considers uses
for mining land after operations have concluded.
3:38:10 PM
MR. LOTTSFELDT continued to paraphrase from the sectional
analysis for SB 112:
[Original punctuation provided.]
Section 25: Amends AS 37.05.146(c)(78) to change the
mention of the Department of Natural resources to the
Department of Agriculture as it related to fees
collected for the Alaska Grown trademark under AS
03.05.010(d).
Section 26: Amends AS 38.04.020(g) to allow the
commissioner of the Department of Agriculture to
comment on disposal of agricultural land instead of
the Board of Agriculture and Conservation.
Section 27: Regarding the conveyance of agricultural
use rights to private users, this section amends AS
38.04.030 to ensure the director of the Division of
Lands within the department of Natural Resources
consults with the commissioner of Agriculture, instead
of the Board of Agriculture and Conservation.
Section 28: Regarding the modification of development
requirements of a contract for the sale of
agricultural land, this section amends AS 38.05.020(b)
to transfer the responsibility of communicating with
the commissioner of Natural Resources from the Board
of Agriculture and Conservation to the commissioner of
Agriculture.
Section 29: Regarding disposal of an interest in land
limited to use for agricultural purposes by lottery,
this section amends AS 38.05.035(b) to require the
director of the Division of Lands of the Department of
Natural Resources to consult the commissioner of
Agriculture instead of the Board of Agriculture and
Conservation.
Section 30: Regarding regulations to specify
qualifications for agricultural land lottery
participants, this section amends AS 38.05.057(c) to
require the commissioner of Natural Resources to
consult with the commissioner of Agriculture instead
of the Board of Agriculture and Conservation.
Section 31: Regarding a possible sale of land
classified for agricultural uses in parcels or tracts
under AS 38.05.020(b)(6), this section amends AS
38.05.059 to require the commissioner of Natural
Resources to consult with the commissioner of
Agriculture instead of the Board of Agriculture and
Conservation.
Section 32: Regarding terms of contract for sale of
public lands, this section amends AS 38.05.065(h) to
require the commissioner of Natural Resources to
consult with the commissioner of Agriculture instead
of the Board of Agriculture and Conservation.
Section 33: Regarding the determination of the best
use for selected unoccupied lands for agricultural
purposes, this section amends AS 38.05.069(a) to
require the commissioner of Natural Resoucrces to
consult with the commissioner of Agriculture instead
of the Board of Agriculture and Conservation.
Section 34: Amends AS 38.07.030(a) to specify that an
applicant's agricultural land may be included in state
clearing or draining operations under AS 38.07.010(a)
if it furthers the agricultural policies of the state,
rather than the Division of Agriculture.
Section 35: Regarding the designation and availability
for homestead entry state land, including land
classified for agricultural use, this section amends
AS 38.09.010(a) to require the commissioner of Natural
Resources to consult with the commissioner of
Agriculture instead of the Board of Agriculture and
Conservation.
3:38:41 PM
MR. LOTTSFELDT continued to paraphrase from the sectional
analysis for SB 112:
[Original punctuation provided.]
Section 36: Amends AS 41.10.040 to change the name of
the Natural Resource Conservation and Development
Board to the Soil and Water Conservation and
Development Board. This section also transfers the
position of ex officio member of the board form the
director of the Division of Agriculture to the
commissioner of Agriculture.
Section 37: Amends AS 41.10.045 to transfer the
responsibility of appointing an executive director and
clerical staff to assist the Soil and Water
Conservation and Development Board from the
commissioner of Natural Resources to the commissioner
of Agriculture.
Section 38: Amends AS 41.10.100 to transfer the
responsibility of coordinating with the Soil and Water
Conservation and Development Board from the
commissioner of Natural Resources to the commissioner
of Agriculture.
Section 39: To achieve soil and water conservation,
this section amends AS 41.10.110 to transfer the
responsibilities of land surveys, technical
assistance, soil conservation, erosion control, and
accept federal assistance from the commissioner of
Natural Resources to the commissioner of Agriculture.
Section 40: Amends AS 41.10.120 to transfer the
responsibility of receiving approval from the land
users before implementing soil conservation and
erosion control measures from the commissioner of
Natural Resources to the commissioner of Agriculture.
Section 41: Amends AS 41.10.130(a) to transfer the
responsibilities of establishing soil and water
conservation districts from the commissioner of
Natural Resources to the commissioner of Agriculture.
3:39:00 PM
MR. LOTTSFELDT continued to paraphrase from the sectional
analysis for SB 112:
[Original punctuation provided.]
Section 42: Amends AS 41.10.140(1) to change the
definition of "board" in this section from the Natural
Resource Conservation and Development Board to the
Soil and Water Conservation and Development Board.
Section 43: Amends AS 44.17.005 to include the
Department of Agriculture in the list of principal
offices and departments.
Section 44: Amends AS 44.37.020(a) to remove
agriculture and soil conservation from the purview of
the Department of Natural Resources.
3:39:24 PM
MR. LOTTSFELDT continued to paraphrase from the sectional
analysis for SB 112:
[Original punctuation provided.]
Section 45: Adds a new Chapter 38 to Alaska Statute
Title 44 (State Government) to create the Department
of Agriculture:
• Sec. 44.38.010 establishes the commissioner of
Agriculture as the principal executive officer of
the Department of Agriculture.
• Sec. 44.38.020 outlines the duties of the
Department of Agriculture.
• Sec. 44.38.030 allows the commissioner of
Agriculture to adopt regulations for the
Department of Agriculture.
Section 46: Regarding the Alaska grain reserve
program, this section amends AS 44.62.330(a)(31) to
change the mention of Department of Natural Resources
to the Department of Agriculture.
Section 47: Repeals the following statutes:
• AS 03.09.020(b): The appointment process for the
director of the Division of Agriculture in the
Department of Natural Resources.
• AS 03.47.040(2): Definition of "division"
referring to the Division of Agriculture in AS
03.47, relating to bees and beekeeping equipment.
• AS 44.37.030: Duties of the Department of Natural
Resources with respect to agriculture.
Section 48: Adds to the uncodified law of the State of
Alaska a section outlining the transition of related
employees, board members, proceedings, contracts,
regulations, records, equipment, and appropriations
from the Department of Natural Resources to the
Department of Agriculture.
Section 49: Provides for an effective date of July 1,
2025.
3:41:08 PM
SENATOR DUNBAR directed his question to the director of the
Division of Agriculture. He pointed out that SB 112 would
elevate the director of the Division of Agriculture position to
the commissioner of the Department of Agriculture. In addition,
SB 112 would transfer some powers from the commissioner of the
Department of Natural Resources (DNR) to the new commissioner of
the Department of Agriculture (the new position would maintain
the powers currently granted to the division director). He
commented on the unique connection between the Division of
Agriculture and the agricultural industry. He asked about
current conflict of interest rules for the division director -
and whether changes would be necessary for the new commissioner
position.
3:42:28 PM
BRYAN SCORESBY, Director, Division of Agriculture, Department of
Natural Resources, Palmer, Alaska, introduced himself.
[Testimony is indiscernible.]
3:43:14 PM
RENA MILLER, Special Assistant, Office of the Commissioner,
Department of Natural Resources, answered that the Commissioner
of the Department of Agriculture would be subject to the same
statutory ethics requirements (including conflict of interest
provisions) as commissioners in other departments. In addition,
there are internal requirements (e.g. employees are not eligible
for lottery land offerings, etc.) She noted that the latter is
not specific to agriculture and added that there are protections
in state government that address those types of situations.
3:43:47 PM
SENATOR DUNBAR noted that individuals who hold certain
commercial licenses are disqualified from state board
membership. He wondered whether this is also true for the
current division director. He offered an example to illustrate
his concerns and asked about additional safeguards for the new
commissioner position.
3:44:44 PM
MS. MILLER said she would consult with the Department of Law
regarding any additional safeguards for that situation. She said
state ethics statutes typically protect against employees being
a direct beneficiary of state programs and state funding.
3:45:25 PM
SENATOR HUGHES directed attention to Section 4 of SB 128 and
asked about industrial hemp. She recalled problems with the
definition of industrial hemp that resulted in the manufacture
of intoxicating food products. Those products were easily
purchased by minors. This issue was addressed by the Marijuana
Control Board (MCB). She shared her understanding that Congress
is rewriting the definition, which would allow the Department of
Agriculture to oversee industrial hemp production. She noted
that, according to the sectional analysis, Section 4 of SB 128
refers to "agricultural products declared to be 'public nuisance
injurious to the public interest.'" She wondered whether this
issue was discussed - and whether having a commissioner of
agriculture would help ensure the definition of industrial hemp
is correct at the federal level. She pointed out that this is a
multi-billion-dollar industry.
3:47:35 PM
MS. MILLER agreed with this recollection and surmised that a
commissioner of agriculture with industrial hemp oversight could
weigh in at the federal level on this issue. She expressed a
willingness to work with the Division of Agriculture to provide
a written update on industrial hemp.
3:48:13 PM
SENATOR KAWASAKI commented that SB 128 is similar to Executive
Order (EO) 136. He asked for feedback on SB 128 and whether
anything may have been missing from EO 136.
3:48:41 PM
MS. MILLER noted several ways SB 128 differs from EO 136. She
stated that the Department of Natural Resources (DNR) has
reviewed these differences and determined they are in the same
tone and spirit of transferring responsibilities and addressing
the new chain of communications between DNR and the new
commissioner of the Department of Agriculture (versus a Board of
Agriculture). SB 128 makes the Commissioner of Agriculture the
Director of the Board of Agriculture. This keeps the line of
communication open between DNR and the new Department of
Agriculture.
3:49:48 PM
CHAIR GIESSEL opened public testimony on SB 128.
3:50:31 PM
CARRIE HARRIS, representing self, Anchor Point, Alaska,
testified in opposition to SB 128. She said she is a hobby
farmer and opined that Alaska does not need a Department of
Agriculture. She asserted that Alaska's small farming population
would never do environmental harm. She opined that adding
farming regulations would not help anyone.
3:51:42 PM
MARTHA MERRY, representing self, Soldotna, Alaska, testified in
support of SB 128. She said she owns Lancashire Farms. She
emphasized the need for leadership to help further agricultural
opportunities. She shared that she likes to experiment with
growing a variety of crops and a Department of Agriculture would
be a helpful resource. She emphasized the importance of farming
and growing the farming community in Alaska. She briefly shared
about the crops she grows and the growing methods she uses. She
expressed hope that SB 192 would pass.
3:53:57 PM
CHAIR GIESSEL held public testimony open on SB 128.
3:54:15 PM
CHAIR GIESSEL held SB 128 in committee.
SB 112-OIL & GAS PRODUCTION TAX
3:54:25 PM
CHAIR GIESSEL announced the consideration of SENATE BILL NO. 112
"An Act relating to credits against the oil and gas production
tax; and providing for an effective date."
[On March 12, 2025 the committee adopted CSSB 112, workorder 34-
LS0566\I as the working document.]
3:55:10 PM
HUNTER LOTTSFELDT, Staff, Senator Bill Wielechowski, Alaska
State Legislature, Juneau, Alaska, paraphrased the sectional
analysis for SB 112, version I:
Senate Bill 112
Oil & Gas Production Tax
Sectional Analysis for Version I
Section 1. Amends AS 43.55.024(i): Adds language to
conform to the new subsection (k) under section 3
limiting the application of the $5 per-barrel
credit for new fields receiving a gross value
reduction.
Section 2. Amends AS 43.55.024(j): Adds both
conforming language for subsection (k) under
section 3 and reduces the per-barrel credit
slider from an $8 to $1 slider to a $5 to $1
slider.
Section 3. Adds a new subsection (k) to AS 43.55.024:
This new subsection will tie the amount of per-
barrel credits a producer may claim to the amount
of qualified capital expenses that producer
incurs on their property or leases. Limits a
producer's ability to carry forward unused per-
barrel credits.
Section 4. Adds an applicability section: This Act
applies to credits from oil production on or
after January 1, 2025.
Section 5. Adds a new uncodified law section: This
section addresses the transition of tax payments
under this Act.
Section 6. Adds a new section of uncodified law: This
section addresses the Department of Revenues
ability to make regulations retroactive.
Section 7. Adds a new section of uncodified law: Sets
a retroactive date of January 1, 2025.
Section 8. Sets an immediate effective date.
3:57:34 PM
CHAIR GIESSEL stated that CSSB 112, workorder 34-LS0566\I was
before the committee.
3:58:16 PM
CHAIR GIESSEL opened public testimony on SB 112.
3:58:52 PM
TIM HINTERBERGER, representing self, Anchorage, Alaska,
testified in support of SB 112. He recalled Senate Bill 21
(2013), which assumed oil prices of above $90/barrel with a ten-
year average forecast of $106/barrel. He stated that those
assumptions have proved inaccurate and offered examples to
illustrate this. He said SB 112 would generate $191 million for
fiscal year (FY) [2026] and approximately $100 million annually
over the next decade. He noted that the administration supports
SB 112. He encouraged members to move SB 112 from committee and
allow the State of Alaska to use its limited revenues on funding
education rather than giving money away to major oil
corporations.
4:00:46 PM
LUANN MCVEY, representing self, Douglas, Alaska, testified in
support of SB 112. She said she is a retired teacher with
several grandchildren under age 5. She expressed an
understanding of how funding deficits impact teachers, children,
and families. She expressed frustration that the State of Alaska
gives money away in tax credits and does not adequately fund
education. She stated that this effectively starves schools and
added that if the state maintains current education funding
levels, schools will experience a large budget deficit. If SB
112 passes, the state savings of $191 million for FY 2026 would
have a sizable positive impact on schools. She offered examples
of possible positive changes. She encouraged support of SB 112.
4:02:33 PM
EMILY KANE, representing self, Juneau, Alaska, testified in
support of SB 112. She said the restructuring of the oil and gas
taxation credit system is long overdue. She said the state has
lost billions of dollars under the current structure and SB 112
is a reasonable adjustment. She emphasized the importance of
taking care of people, who are the most precious resource. She
encouraged keeping Alaska's natural resource revenue in-state.
This would positively impact education funding, transportation
funding, and would allow Alaska to modernize. She encouraged
support of SB 112.
4:04:10 PM
TERRANCE DALTON, representing self, Anchorage, Alaska, testified
in opposition to SB 112. He said he has worked in the oil and
gas industry and has children. He stated that SB 112 appears to
be a short-term budget solution; however, it would be
detrimental in the long-term. He offered examples to illustrate
this, including a decrease in investment and jobs. He emphasized
the negative impact this would have on Alaskan families and on
the state. He said that the current tax structure provides
stability and encourages investment and offered examples.
4:06:03 PM
KELLY DROOP, representing self, Anchorage, Alaska, testified in
opposition to SB 112. She briefly discussed the importance of
Alaska's natural resource industry. She referenced Senate Bill
21 (2013) and briefly discussed the positive impact of that
legislation. She said that critics do not take external factors
into account. She opined that changing the terms after companies
have made investment decisions creates a sense of instability.
She indicated that stability is needed for companies to invest
in, maintain, and grow oil production in Alaska.
4:07:59 PM
JIM HILL, representing self, Anchorage, Alaska, testified in
opposition to SB 112. He said he has a small business with 20
employees. He shared his belief that all companies rely on a
robust oil and gas sector. North Slope development has benefited
his business. He credited North Slope development to Senate Bill
21 (2013) and the stability of the current tax structure. He
said tax policy should not target a single industry,
particularly when other industries are lagging. He said SB 112
discourages future investment. He stated the current tax policy
is working and emphasized the economic and social importance of
increased production.
4:09:42 PM
AURORA ROTH, representing self, Anchorage, Alaska, testified in
support of SB 112. She said oil prices have rarely exceeded
$80/barrel since 2013. She said oil companies are receiving the
maximum credit possible. She opined that this is a very good
deal for oil companies. She further opined that it is reasonable
- particularly in the face of a budget crisis and school
closures - to lower the tax credit cap to reflect the current
economic reality. She shared her understanding that companies
would remain profitable with a lower tax credit cap. She
rejected the idea that any tax on oil and gas (or reducing the
tax credit for oil companies) would be the downfall of Alaska.
She shared her understanding that SB 112 would restructure the
tax credit to benefit Alaskans in a time of economic difficulty.
She urged support of SB 112.
4:11:38 PM
GARY DIXSON, representative, Keep Alaska Competitive, Anchorage,
Alaska, testified in opposition to SB 112. He said he is the
Secretary-Treasurer of Teamsters Local 959. He gave a brief
overview of that organization. He stated that industry jobs are
not limited to the work done on the North Slope. He explained
how supplies are transported from the Lower 48 to Alaska through
the Port of Anchorage and on to Deadhorse. He emphasized that
many Alaskans benefit from the oil and gas industry, which is a
cornerstone of the state's economy. He offered examples to
illustrate the various benefits. He said consistency is needed
to ensure future development. He stated that SB 112 creates a
risk for the future of the oil and gas industry and the jobs it
provides. He reiterated that North Slope development is
important to economic growth in Alaska.
4:14:09 PM
RACHAEL POSEY, representing self, Anchorage, Alaska, testified
in support of SB 112. She said SB 112 reduces the tax credit,
which she opined is a reasonable and prudent decision
considering the state's current fiscal crisis. She emphasized
the importance of a strong education system. She said reducing
the tax credit for oil companies would provide additional
revenues that could fund education.
4:15:11 PM
JESSE CARLSTROM, representing self, Anchorage, Alaska, testified
in opposition to SB 112. He referenced Senate Bill 21 (2013) and
emphasized the importance of the per barrel tax credit. He
stated that companies made long-term, multibillion dollar
investments in the state based on the stability of that policy.
While oil prices and production levels are beyond the
legislature's control, it does control policy. He opined that
changing the rules after companies have invested sends the
message that Alaska is unstable and unreliable. He said this
impacts all Alaskans. He shared that he has two young children
and would like the economy to support opportunities for them in
the future. He encouraged a no vote on SB 112.
4:16:56 PM
CAROLINE STORM, Executive Director, Coalition for Education
Equity, Anchorage, Alaska, testified in support of SB 112. She
said the state is in a fiscal crisis. She recalled that Senate
Bill 21 (2013) originally contained a $5/barrel tax credit, and
the $8/barrel tax credit was a last-minute addition. She opined
that oil companies are making an absurd profit in Alaska and can
afford to receive a lower tax credit. In contrast, the State of
Alaska needs revenue to support schools, Medicaid, and Alaskans
in general. She stated that industry would not make Alaska more
livable - schools, roads, and government services will. The
State of Alaska must find adequate funding for these. She said
SB 112 is the mechanism by which the state can provide programs
and fulfill its constitutional obligations. She read from art.
VIII, sec. 2 of the Constitution of the State of Alaska, which
states, "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." She emphasized that the benefit should not be
given to oil companies and added that oil companies make
billions of dollars of profit from Alaskan resources.
4:19:13 PM
MARGI DASHEVSKY, representing self, Anchorage, Alaska, testified
in support of SB 112. She said it is important to stop giving
money away to oil companies who should pay a fair share of
taxes. She opined that SB 112 is an important step in reducing
the per barrel oil tax credit. She noted that the per barrel oil
tax credit is projected to cost the State of Alaska $6.5 billion
over the next 8 years. She said education funding is critical at
this time. She added that the additional funding SB 112 would
create is vital. She briefly discussed the importance of
creating social and economic stability for future generations of
Alaskans.
4:21:13 PM
LEON LYNCH, representing self, Ester, Alaska, testified in
support of SB 112. He briefly discussed the history of oil tax
legislation in Alaska. He emphasized that legislators with
conflicts of interest voted in favor of Senate Bill 21 (2013),
which passed by a single vote. He briefly discussed how the tax
structure created by Senate Bill 21 (2013) negatively impacted
the State of Alaska. He opined that SB 112 is a modest effort to
provide additional income to the State of Alaska. He
acknowledged that oil companies oppose this change but argued
that it would not deter investment.
4:23:48 PM
KEN HUCKABA, representing self, Wasilla, Alaska, testified in
opposition to SB 112. He stated that this would strangle the oil
industry and the future of Alaska. He noted that the oil
industry funds many state programs, including education. He said
he would like to see lobbyists and non-governmental
organizations (NGO) taxed, as they are stakeholders. He observed
that the state's budget has increased over the past decade and
surmised that SB 112 would add to that growth. He said Alaska
has neglected the private sector and offered examples. He stated
that fiscal crises increase the likelihood for bad decision-
making. This hurts the private sector. He said the State of
Alaska needs to encourage investment in the state but opined
that many decisions do not reflect this.
4:26:32 PM
JANE ANGVIK, representing self, Anchorage, Alaska, testified in
support of SB 112. She said all Alaskans are stakeholders. She
suggested that the state should reduce the per-barrel oil tax
credit from $8/barrel to $5/barrel and use the excess funds for
education. She shared that she has been working to make this
change. She opined that it is a modest change that would create
an opportunity for Alaskans to gain strength and independence in
education. She shared a brief anecdote to illustrate her
connection to Senate Bill 21 (2013) and support of SB 121.
4:28:08 PM
JANELL GRENIER, representing self, Nikiski, Alaska, testified in
support of SB 112. She noted that previous testimony has touched
on her reasons for supporting this legislation and emphasized
that she supports SB 112.
4:28:49 PM
DANIELLE REDMOND, representing self, Juneau, Alaska, testified
in support of SB 112. She briefly shared about her education and
work history and connected this timeline to the passage of
Senate Bill 21 in 2013. She pointed out that, while Senate Bill
21 (2013) projected that oil prices would remain above
$90/barrel, oil prices have remained low. As a result, oil
producers have benefitted from the per-barrel oil tax credit and
the legislature has sought ineffective short-term solutions to
the state's fiscal crisis. She shared that she has three
children in school. She emphasized that the short-term fiscal
solutions have negatively impacted Alaskans. She expressed
disgust that those with conflicts of interest are able to impact
discussions and outcomes.
4:30:54 PM
CHAIR GIESSEL left public testimony on SB 112 open and held SB
112 in committee.
4:31:36 PM
There being no further business to come before the committee,
Chair Giessel adjourned the Senate Resources Standing Committee
meeting at 4:31 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 112 Public Testimony.pdf |
SRES 4/4/2025 3:30:00 PM |
SB 112 |
| SB 128 Public Testimony.pdf |
SRES 4/4/2025 3:30:00 PM |
SB 128 |
| SB128 DNR Response to SRES 4-4-25 meeting.pdf |
SRES 4/4/2025 3:30:00 PM |
SB 128 |