Legislature(2025 - 2026)
2026-05-18 House Journal
Full Journal pdf2026-05-18 House Journal Page 2809 SB 180 The following was before the House with Amendment No. 8 to Amendment No. 2 as amended pending: 2026-05-18 House Journal Page 2810 HOUSE CS FOR CS FOR SENATE BILL NO. 180(L&C) "An Act relating to the development of the Susitna River power project by the Alaska Energy Authority; relating to the regulation of liquefied natural gas import facilities by the Regulatory Commission of Alaska; and providing for an effective date." The question being: "Shall Amendment No. 8 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 8 to Amendment No. 2 as amended YEAS: 14 NAYS: 26 EXCUSED: 0 ABSENT: 0 Yeas: Edgmon, Eischeid, Fields, Foster, Frier, Gray, Hannan, Himschoot, Holland, Jimmie, Josephson, Mears, Mina, Story Nays: Allard, Bynum, Carrick, Costello, Coulombe, Dibert, Elam, Galvin, Hall, Johnson, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schrage, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance And so, Amendment No. 8 to Amendment No. 2 as amended was not adopted. Amendment No. 9 to Amendment No. 2 as amended was not offered. Amendment No. 10 to Amendment No. 2 as amended was offered by Representative Holland: Page 2, following line 20 of the amendment: Insert a new bill section to read: "* Sec. 5. AS 29.45.080(c), as amended by sec. 4 of this Act, is amended to read: (c) A municipality may levy and collect a tax on the full and true value of that portion of taxable property taxable under AS 43.56 as assessed by the Department of Revenue which value, when combined with the value of property otherwise taxable by the municipality, does not exceed the product of the percentage determined in (f) of this section of the average per capita assessed full and true value of property in the state multiplied by the number of residents of the 2026-05-18 House Journal Page 2811 taxing municipality. [PROPERTY SUBJECT TO THE ALTERNATIVE VOLUMETRIC TAX LEVIED UNDER AS 43.59.020 IS NOT INCLUDED IN THE VALUE OF PROPERTY FOR THE PURPOSE OF MAKING THE CALCULATION UNDER THIS SUBSECTION.]" Renumber the following bill sections of the amendment accordingly. Page 12, lines 25 - 26 of the amendment: Delete "to "natural gas project" in AS 43.59.100" Insert "in AS 38.05.965" Page 12, following line 30 of the amendment: Insert a new bill section to read: "* Sec. 21. AS 43.56.010(a), as amended by sec. 20 of this Act, is amended to read: (a) An [EXCEPT AS PROVIDED IN AS 43.59.020, AN] annual tax of 20 mills is levied each tax year beginning January 1, 1974, on the full and true value of taxable property taxable under this chapter. Renumber the following bill sections of the amendment accordingly. Page 13, following line 12 of the amendment: Insert a new bill section to read: "* Sec. 23. AS 43.56.020(d), as amended by sec. 22 of this Act, is amended to read: (d) Taxable property of a natural gas pipeline project owned or financed by the Alaska Gasline Development Corporation or a joint venture, partnership, or other entity that includes the Alaska Gasline Development Corporation [SUBJECT TO TAX ABATEMENT UNDER AS 43.59.010 OR THE VOLUMETRIC TAX IMPOSED UNDER AS 43.59.020] is exempt from state taxes levied or authorized under AS 43.56.010(a) and municipal taxes levied or authorized under AS 43.56.010(b) before the commencement of commercial operations of that natural gas pipeline project. In this subsection, "commencement of commercial operations" means the first flow of natural gas in the project that generates revenue to the owners of the natural gas pipeline project." 2026-05-18 House Journal Page 2812 Renumber the following bill sections of the amendment accordingly. Page 20, following line 24 of the amendment: Insert a new bill section to read: "* Sec. 27. AS 14.17.510(d), 14.17.990(6)(B); AS 43.59.010, 43.59.020, 43.59.025, 43.59.030, 43.59.040, 43.59.050, 44.59.060, 43.59.100, and 44.33.850 are repealed." Renumber the following bill sections of the amendment accordingly. Page 21, line 15 of the amendment: Delete "sec. 7" Insert "sec. 8" Page 21, line 16 of the amendment: Delete "sec. 7" Insert "sec. 8" Page 21, line 17 of the amendment: Delete "sec. 10" Insert "sec. 11" Page 21, line 18 of the amendment: Delete "sec. 10" Insert "sec. 11" Page 21, line 19 of the amendment: Delete "sec. 14" Insert "sec. 15" Page 21, line 20 of the amendment: Delete "sec. 14" Insert "sec. 15" Page 21, line 21 of the amendment: Delete "sec. 16" Insert "sec. 17" Page 21, line 22 of the amendment: Delete "sec. 16" Insert "sec. 17" 2026-05-18 House Journal Page 2813 Page 21, line 23 of the amendment: Delete "sec. 16" Insert "sec. 17" Page 21, line 27 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 21, line 30 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 2 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 3 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 7 of the amendment: Delete "19 - 21, and 24" Insert "20, 22, 24, and 28" Page 22, line 9 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, lines 20 - 21 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, lines 25 - 26 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, line 30 of the amendment: Delete "Section 18" Insert "Section 19" 2026-05-18 House Journal Page 2814 Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 31(a)" Page 24, following line 5 of the amendment: Insert a new bill section to read: "* Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to read: CONDITIONAL EFFECT: TAX SUNSET. (a) Sections 5, 21, 23, and 27 of this Act take effect only if the conditions in sec. 31(a) of this Act are met. (b) The commissioner of revenue shall notify the revisor of statutes in writing within 30 days after commencement of commercial operations of a liquefied natural gas plant. In this section, (1) "commencement of commercial operations" means the first flow of a commercial amount of natural gas through a liquefied natural gas plant that is part of a natural gas project; (2) "natural gas project" means a natural gas project that includes, collectively, a Prudhoe Bay unit gas transmission line, a Point Thomson unit gas transmission line, a gas pipeline, a gas treatment plant, a liquefied natural gas plant, and a marine terminal; (3) "liquefied natural gas plant" means a facility for liquefying natural gas and includes structures, equipment, underlying land rights, and other associated systems, storage, and facilities for off-loading liquefied natural gas." Renumber the following bill sections of the amendment accordingly. Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 31 of this Act, secs. 1 - 4, 20, 22, 24, and 28" Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 31(a)" Page 24, line 9 of the amendment: Delete "sec. 28 of this Act, sec. 18" Insert "sec. 32 of this Act, sec. 19" 2026-05-18 House Journal Page 2815 Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 31(a)" Page 24, following line 13 of the amendment: Insert a new bill section to read: "* Sec. 36. If, under sec. 33 of this Act, secs. 5, 21, 23, and 27 of this Act take effect, they take effect the earlier of (1) 10 years after the date of commencement of commercial operations of a liquefied natural gas plant, as described in sec. 33 of this Act; or (2) January 1, 2050." Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 34 - 36" Representative Holland moved and asked unanimous consent that Amendment No. 10 to Amendment No. 2 as amended be adopted. Representative Kopp objected. The question being: "Shall Amendment No. 10 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 10 to Amendment No. 2 as amended YEAS: 18 NAYS: 21 EXCUSED: 0 ABSENT: 1 Yeas: Carrick, Dibert, Edgmon, Eischeid, Foster, Frier, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Mears, Mina, Schrage, Story Nays: Allard, Bynum, Costello, Coulombe, Elam, Johnson, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance Absent: Fields And so, Amendment No. 10 to Amendment No. 2 as amended was not adopted. 2026-05-18 House Journal Page 2816 Amendment No. 11 to Amendment No. 2 as amended was not offered. Amendment No. 12 to Amendment No. 2 as amended was offered by Representative Josephson: Page 1, line 9 of the amendment: Following "agreements": Insert "and payment" Delete "and a designated community impact fund" Insert "; relating to community impact grants" Page 21, following line 10 of the amendment: Insert a new bill section to read: "* Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to read: APPROPRIATION FOR COMMUNITY IMPACT GRANTS. After the state receives the $40,000,000 payment committed to the state under sec. 28(a)(1) of this Act, the legislature may appropriate $40,000,000 to the Department of Commerce, Community, and Economic Development for payment of community impact grants to eligible communities. The department shall use the money appropriated to the department under this section to timely distribute grants to communities for activities, services, or facilities that offset actual or expected effects of construction of a gas pipeline. When administering grants under this section, the department shall prioritize granting awards based on the needs of the community, the severity of the effects caused by construction of the pipeline, and the correlation of the effect to the construction of the pipeline. In this section, "gas pipeline" has the meaning given in AS 31.25.390." Renumber the following bill sections of the amendment accordingly. Page 22, line 7 of the amendment: Delete "and 24" Insert "24, and 25" Page 22, lines 11 - 22 of the amendment: Delete all material and insert: "(1) pay $40,000,000 to the state, which the legislature may appropriate to the Department of Commerce, Community, and 2026-05-18 House Journal Page 2817 Economic Development for payment of community impact grants to eligible communities in accordance with sec. 25 of this Act;" Page 23, lines 22 - 24 of the amendment: Delete all material. Renumber the following paragraph of the amendment accordingly. Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 6 of the amendment: Delete "sec. 27" Insert "sec. 28" Delete "and 24" Insert "24, and 25" Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 9 of the amendment: Delete "sec. 28" Insert "sec. 29" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 30 and 31" Representative Josephson moved and asked unanimous consent that Amendment No. 12 to Amendment No. 2 as amended be adopted. Objection was heard and withdrawn. There being no further objection, Amendment No. 12 to Amendment No. 2 as amended was adopted. 2026-05-18 House Journal Page 2818 Amendment No. 13 to Amendment No. 2 as amended was offered by Representative Josephson: Page 12, line 28 of the amendment: Delete "AS 43.59.010 and 43.59.020" Insert "AS 43.59.020" Page 13, line 1 of the amendment: Delete "tax abatement under AS 43.59.010 or" Page 13, line 14 of the amendment: Delete "Temporary Tax Abatement and" Page 13, lines 15 - 25 of the amendment: Delete all material. Page 13, lines 28 - 29 of the amendment: Delete "on the day after the expiration of the abatement period under AS 43.59.010" Insert "upon commencement of commercial operations of the gas pipeline component of the natural gas project" Page 15, lines 16 - 17 of the amendment: Delete "the tax abatement under AS 43.59.010 and" Page 16, line 12 of the amendment: Delete "the tax abatement under AS 43.59.010 and" Representative Josephson moved and asked unanimous consent that Amendment No. 13 to Amendment No. 2 as amended be adopted. Representative Kopp objected. The question being: "Shall Amendment No. 13 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 13 to Amendment No. 2 as amended YEAS: 16 NAYS: 24 EXCUSED: 0 ABSENT: 0 2026-05-18 House Journal Page 2819 Yeas: Carrick, Edgmon, Eischeid, Foster, Frier, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Mina, Schrage, Story Nays: Allard, Bynum, Costello, Coulombe, Dibert, Elam, Fields, Johnson, Kopp, McCabe, Mears, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance And so, Amendment No. 13 to Amendment No. 2 as amended was not adopted. Amendment No. 14 to Amendment No. 2 as amended was offered by Representative Eischeid: Page 1, line 10 of the amendment: Delete "regulation of liquefied natural gas import facilities by the" Page 6, following line 18 of the amendment: Insert a new subsection to read: "(j) An owner or operator of a gas pipeline advanced, operated, or owned, in whole or in part, by the corporation, or a subsidiary of the corporation, may not charge a utility in the state more than (1) $12 for each 1,000 cubic feet of natural gas after completion of the gas pipeline, but before the completion of a related liquefied natural gas plant; (2) $5 for each 1,000 cubic feet of natural gas after completion of a liquefied natural gas plant related to the gas pipeline." Page 12, following line 26 of the amendment: Insert a new bill section to read: "* Sec. 19. AS 42.05 is amended by adding a new section to read: Sec. 42.05.387. Rates charged by Alaska Gasline Development Corporation gas pipeline. (a) An owner or operator of a gas pipeline advanced, operated, or owned, in whole or in part, by the Alaska Gasline Development Corporation, or a subsidiary of the corporation, may not charge a utility in the state 2026-05-18 House Journal Page 2820 more than (1) $12 for each 1,000 cubic feet of natural gas after completion of the gas pipeline, but before the completion of a related liquefied natural gas plant; (2) $5 for each 1,000 cubic feet of natural gas after completion of a liquefied natural gas plant related to the gas pipeline. (b) The commission has jurisdiction to enforce this section to the extent not preempted by federal law. (c) In this section, (1) "gas pipeline" has the meaning given in AS 31.25.390; (2) "liquefied natural gas plant" has the meaning given in AS 31.25.390." Renumber the following bill sections of the amendment accordingly. Page 22, line 7 of the amendment: Delete "19 - 21, and 24" Insert "19 - 22, and 25" Page 22, line 9 of the amendment: Delete "sec. 21" Insert "sec. 22" Page 23, lines 20 - 21 of the amendment: Delete "sec. 21" Insert "sec. 22" Page 23, lines 25 - 26 of the amendment: Delete "sec. 21" Insert "sec. 22" Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 28 of this Act, secs. 1 - 4, 20 - 22, and 25" 2026-05-18 House Journal Page 2821 Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 9 of the amendment: Delete "sec. 28" Insert "sec. 29" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 30 and 31" Representative Eischeid moved and asked unanimous consent that Amendment No. 14 to Amendment No. 2 as amended be adopted. Representative Kopp objected. The question being: "Shall Amendment No. 14 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 14 to Amendment No. 2 as amended YEAS: 16 NAYS: 24 EXCUSED: 0 ABSENT: 0 Yeas: Carrick, Edgmon, Eischeid, Foster, Frier, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Mears, Mina, Schrage, Story Nays: Allard, Bynum, Costello, Coulombe, Dibert, Elam, Fields, Galvin, Johnson, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance And so, Amendment No. 14 to Amendment No. 2 as amended was not adopted. Amendment No. 15 to Amendment No. 2 as amended was not offered. 2026-05-18 House Journal Page 2822 Amendment No. 16 to Amendment No. 2 as amended was offered by Representative Mears: Page 1, line 10 of the amendment: Delete "regulation of liquefied natural gas import facilities by the" Page 6, following line 18 of the amendment: Insert a new subsection to read: "(j) An owner or operator of a gas pipeline advanced, operated, or owned, in whole or in part, by the corporation, or a subsidiary of the corporation, may not recoup cost overruns from the construction of the first phase of a gas pipeline by increasing the rates charged to a utility. In this subsection, (1) "cost overrun" means a cost in excess of $15,000,000,000; (2) "first phase of a gas pipeline" means at least 730 miles of 42-inch pipeline constructed to transport natural gas from the North Slope and deliver the natural gas to in-state consumers." Page 12, following line 26 of the amendment: Insert a new bill section to read: "* Sec. 19. AS 42.05 is amended by adding a new section to read: Sec. 42.05.387. Rates charged by Alaska Gasline Development Corporation gas pipeline. (a)An owner or operator of a gas pipeline advanced, operated, or owned, in whole or in part, by the Alaska Gasline Development Corporation, or a subsidiary of the corporation, may not recoup cost overruns from the construction of the first phase of a gas pipeline by increasing the rates charged to a utility. In this section, "cost overrun" and "first phase of a gas pipeline" have the meanings given in AS 31.25.080(j). (b) The commission has jurisdiction to enforce this section to the extent not preempted by federal law." Renumber the following bill sections of the amendment accordingly. Page 22, line 7 of the amendment: Delete "19 - 21, and 24" Insert "20 - 22, and 25" 2026-05-18 House Journal Page 2823 Page 22, line 9 of the amendment: Delete "sec. 21" Insert "sec. 22" Page 23, lines 20 - 21 of the amendment: Delete "sec. 21" Insert "sec. 22" Page 23, lines 25 - 26 of the amendment: Delete "sec. 21" Insert "sec. 22" Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 28 of this Act, secs. 1 - 4, 20 - 22, and 25" Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 9 of the amendment: Delete "sec. 28" Insert "sec. 29" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 30 and 31" Representative Mears moved and asked unanimous consent that Amendment No. 16 to Amendment No. 2 as amended be adopted. Representative Kopp objected. 2026-05-18 House Journal Page 2824 The question being: "Shall Amendment No. 16 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 16 to Amendment No. 2 as amended YEAS: 17 NAYS: 23 EXCUSED: 0 ABSENT: 0 Yeas: Carrick, Dibert, Edgmon, Eischeid, Foster, Frier, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Mears, Mina, Schrage, Story Nays: Allard, Bynum, Costello, Coulombe, Elam, Fields, Galvin, Johnson, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance And so, Amendment No. 16 to Amendment No. 2 as amended was not adopted. Amendment No. 17 to Amendment No. 2 as amended was offered by Representative Frier: Page 16, line 30 of the amendment, following "status.": Insert "(a)" Page 17, following line 2 of the amendment: Insert a new subsection to read: "(b) The alternative volumetric tax applicable to a natural gas project under AS 43.59.020 terminates on January 1, 2034, if commencement of construction of phase two of the Alaska liquefied natural gas project has not begun by that date. In this subsection, (1) "Alaska liquefied natural gas project" has the meaning given in AS 31.25.390; (2) "phase two" means a phase of the Alaska liquefied natural gas project that includes a liquefied natural gas plant, as defined in AS 31.25.390, and other related infrastructure required for the export of liquefied natural gas." 2026-05-18 House Journal Page 2825 Representative Frier moved and asked unanimous consent that Amendment No. 17 to Amendment No. 2 as amended be adopted. Representative Kopp objected. The question being: "Shall Amendment No. 17 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 17 to Amendment No. 2 as amended YEAS: 20 NAYS: 20 EXCUSED: 0 ABSENT: 0 Yeas: Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Frier, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Johnson, Josephson, Mears, Mina, Schrage, Story Nays: Allard, Bynum, Costello, Coulombe, Elam, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance And so, Amendment No. 17 to Amendment No. 2 as amended was not adopted. Amendment Nos. 18 and 19 to Amendment No. 2 as amended were not offered. Amendment No. 20 to Amendment No. 2 as amended was offered by Representative Ruffridge: Page 7, lines 2 - 4 of the amendment: Delete "The parties to a confidentiality agreement entered into under (f) of this section may agree to waive confidentiality, in whole or in part, to allow the release of information to a legislator or a public agent or for publication" Insert "If all parties to a confidentiality agreement entered into under (f) of this section agree to waive the confidentiality required by the agreement, in whole or in part, information subject to that waiver may be released to a legislator or a public agent" 2026-05-18 House Journal Page 2826 Page 7, line 23, through page 8, line 1 of the amendment: Delete all material. Renumber the following paragraphs of the amendment accordingly. Page 8, line 7 of the amendment, following "state;": Insert "or" Page 8, lines 8 - 9 of the amendment: Delete all material. Renumber the following paragraph of the amendment accordingly. Page 8, line 10 of the amendment, following "to": Insert "the existence of" Page 8, line 16 of the amendment: Delete "(1)" Page 8, lines 18 - 21 of the amendment: Delete "; and (2) to release reasonable estimated ranges or a summarization of project economics and costs sufficient for a legislator or a public agent to assess the fiscal liability, obligation, or risk to the state" Page 8, line 28 of the amendment, following "law": Insert "under this subsection" Page 8, line 30 of the amendment, following "corporation.": Insert "The corporation shall notify the presiding officer of each house if the corporation intends to transfer, sell, or otherwise dispose of an ownership or management interest in a subsidiary of the corporation. The legislature shall have 90 legislative days to consider the transfer, sale, or disposition. If the legislature does not disapprove the transfer, sale, or disposition of an ownership interest within 90 legislative days, the corporation may move forward with the transfer, sale, or disposition. In this section, "legislative day" means a day the legislature is in regular or special session." 2026-05-18 House Journal Page 2827 Page 9, line 7 of the amendment: Delete "under (b)(1) of this section" Page 9, lines 8 - 14 of the amendment: Delete all material. Reletter the following subsections of the amendment accordingly. Page 9, line 19 of the amendment: Delete "later" Insert "earlier" Page 9, line 30 of the amendment: Delete "(e)" Insert "(c)" Page 10, line 3 of the amendment: Delete "(e)" Insert "(c)" Page 10, lines 4 - 17 of the amendment: Delete all material. Reletter the following subsection of the amendment accordingly. Page 11, lines 7 - 19 of the amendment: Delete all material. Renumber the following bill sections of the amendment accordingly. Page 11, line 21 of the amendment: Delete "The" Insert "Unless prevented by a confidentiality agreement entered into and subject to AS 31.25.090, the" Page 12, lines 9 - 10 of the amendment: Delete "includes a subsidiary partially owned" Insert "means a subsidiary controlled" 2026-05-18 House Journal Page 2828 Page 21, line 21 of the amendment: Delete "sec. 16" Insert "sec. 15" Page 21, line 22 of the amendment: Delete "sec. 16" Insert "sec. 15" Page 21, line 23 of the amendment: Delete "sec. 16" Insert "sec. 15" Page 22, line 7 of the amendment: Delete "19 - 21, and 24" Insert "18 - 20, and 23" Page 22, line 9 of the amendment: Delete "sec. 21" Insert "sec. 20" Page 23, lines 20 - 21 of the amendment: Delete "sec. 21" Insert "sec. 20" Page 23, lines 25 - 26 of the amendment: Delete "sec. 21" Insert "sec. 20" Page 23, line 30 of the amendment: Delete "Section 18" Insert "Section 17" Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 26(a)" Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 26 of this Act, secs. 1 - 4, 18 - 20, and 23" 2026-05-18 House Journal Page 2829 Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 26(a)" Page 24, line 9 of the amendment: Delete "sec. 28 of this Act, sec. 18" Insert "sec. 27 of this Act, sec. 17" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 26(a)" Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 28 and 30" Representative Ruffridge moved and asked unanimous consent that Amendment No. 20 to Amendment No. 2 as amended be adopted. Representative Mears objected. The question being: "Shall Amendment No. 20 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 20 to Amendment No. 2 as amended YEAS: 22 NAYS: 18 EXCUSED: 0 ABSENT: 0 Yeas: Allard, Bynum, Costello, Coulombe, Elam, Fields, Johnson, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance Nays: Carrick, Dibert, Edgmon, Eischeid, Foster, Frier, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Mears, Mina, Schrage, Story Frier changed from "YEA" to "NAY" Jimmie changed from "YEA" to "NAY" And so, Amendment No. 20 to Amendment No. 2 as amended was adopted. 2026-05-18 House Journal Page 2830 Amendment No. 21 to Amendment No. 2 as amended was moved to the bottom of amendments. Amendment No. 22 to Amendment No. 2 as amended was offered by Representative Holland: Page 1, line 8 of the amendment, following the first occurrence of "gas;": Insert "establishing an income tax on certain entities producing or transporting oil or gas in the state;" Page 12, following line 26 of the amendment: Insert new bill sections to read: "* Sec. 19. AS 43.20 is amended by adding a new section to read: Sec. 43.20.019. Tax on income of certain oil and gas pass- through entities. (a) Each taxable year, a tax is imposed on the entire taxable income derived from sources in the state of every qualified entity. The tax is computed as follows: If the taxable income is: Then the tax is: Less than $1,000,000 zero $1,000,000 but less than $2,000,000 5 percent of the taxable income over $1,000,000 $2,000,000 but less than $3,000,000 $50,000 plus 6 percent of the taxable income over $2,000,000 $3,000,000 but less than $4,000,000 $110,000 plus 7 percent of the taxable income over $3,000,000 $4,000,000 but less than $5,000,000 $180,000 plus 8 percent of the taxable income over $4,000,000 $5,000,000 or more $260,000 plus 9.4 percent of the taxable income over $5,000,000. (b) For purposes of calculating taxable income under this section, (1) taxable income of a qualified entity is determined under AS 43.20.144 as if the qualified entity were taxable as a C corporation, as defined by 26 U.S.C. 1361(a)(2) (Internal Revenue Code), as that section read on January 1, 2026; 2026-05-18 House Journal Page 2831 (2) notwithstanding AS 43.20.021 and AS 43.20.036, a qualified entity may not apply as a credit or deduction against tax liability a credit or deduction allowed as to federal taxes under 26 U.S.C. (Internal Revenue Code), except that the qualified entity may take a credit or deduction allowed for a C corporation under (1) of this subsection. (c) The tax under this section does not apply to a corporation subject to tax under AS 43.20.011 or to an entity that is part of a unitary business with a corporation subject to tax under AS 43.20.011. (d) A public corporation is exempt from the tax under this section. If a qualified entity is held in part by a public corporation, income in proportion to the ownership interest held by the public corporation is exempt from the tax under this section. The department may direct each owner of a qualified entity that is owned in part by the Alaska Gasline Development Corporation (AS 31.25) to file a return with the department. Notwithstanding AS 40.25.100(a) and AS 43.05.230(a), a return filed by the Alaska Gasline Development Corporation under this subsection is a public record and is not confidential. (e) For the purpose of determining the tax due under this section, the department shall (1) aggregate the taxable income of two or more entities if the department determines that, without the provisions of this section, the taxable income would reasonably be expected to be attributed to a single entity; (2) except as provided in (c) of this section, include in the calculation of taxable income of the qualified entity income that is attributable to an entity that is part of a unitary business with the qualified entity paying tax under this section; and (3) adopt regulations to prevent evasion of taxes imposed under this section. (f) For purposes of calculating income under this section, a qualified entity may deduct from income a payment to the shareholder, owner, member, or partner of the qualified entity, if (1) the shareholder, owner, member, or partner is a taxpayer under this chapter; (2) the payment does not include a transfer of property; (3) the payment is included in the shareholder's, owner's, member's, or partner's income for purposes of this chapter; and 2026-05-18 House Journal Page 2832 (4) the payment was not made with the specific intent to reduce or evade the payment of tax under this chapter. (g) In this section, (1) "carbon capture" and "carbon storage" have the meanings given in AS 43.55.165(e)(23); (2) "pipeline" means a pipeline that transports oil or gas from north of 68 degrees North latitude to a location outside of the lease or property where the oil or gas is produced for the direct purpose of sale and delivery of the oil or gas to a commercial market; (3) "qualified entity" (A) means a sole proprietorship, partnership, limited liability company, or entity that has elected to file federal returns under 26 U.S.C. 1361 - 1379 (Internal Revenue Code) that (i) has taxable income; (ii) owns, operates, manages, or controls an entity that has taxable income; (iii) holds an ownership, investment, or similar interest in an entity that has taxable income; or (iv) owns an operating right, operating interest, or working interest in a mineral interest of an entity with taxable income; (B) does not include a natural person; (4) "taxable income" means income (A) from the production of oil or gas from a lease or property in the state; (B) from the transportation of oil or gas by pipeline in the state; (C) from the supply of oil or gas for transportation by pipeline in the state, whether directly, to an intermediary, or as an intermediary; (D) from gas treatment, carbon capture, or carbon storage activities in the state; (E) from liquefied natural gas processing in the state; (F) from the marine transportation of liquefied natural gas produced in the state; and (G) of an entity that is part of a unitary business with a carrier or producer paying tax under this section as provided under (e)(2) of this section. 2026-05-18 House Journal Page 2833 * Sec. 20. AS 43.20.030(a) is amended to read: (a) If a taxpayer [CORPORATION], or a partnership that has a taxpayer [CORPORATION] as a partner, is required to make a return under the provisions of the Internal Revenue Code, the taxpayer [IT] shall file with the department, within 30 days after the federal return is required to be filed, a return setting out (1) the amount of tax due under this chapter, less credits claimed against the tax; and (2) other information for the purpose of carrying out the provisions of this chapter that the department requires. * Sec. 21. AS 43.20.031(i) is amended to read: (i) A taxpayer that [CORPORATION WHICH] is a member of a group of unitary corporations or entities that [WHICH] collectively has income from business activity taxable both inside and outside the state, or income from other sources both inside and outside the state, shall determine its income from sources in this state by use of the combined method of accounting." Renumber the following bill sections of the amendment accordingly. Page 21, following line 23 of the amendment: Insert a new bill section to read: "* Sec. 29. The uncodified law of the State of Alaska is amended by adding a new section to read: APPLICABILITY: OIL AND GAS ENTITY TAX. The tax established under AS 43.20.019, added by sec. 19 of this Act, applies to a qualified entity for a tax year beginning on or after January 1, 2026. In this section, "qualified entity" has the meaning given in AS 43.20.019(g), added by sec. 19 of this Act." Renumber the following bill sections of the amendment accordingly. Page 22, following line 3 of the amendment: Insert new bill sections to read: "* Sec. 31. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION: PAYMENT OF TAX. A person subject to the tax levied under AS 43.20.019, added by sec. 19 of this Act, before the effective date of sec. 19 of this Act, shall pay the balance of the tax due for a tax year ending before January 1, 2027, by January 1, 2027. 2026-05-18 House Journal Page 2834 Until January 1, 2027, the Department of Revenue shall waive interest that would otherwise accrue under AS 43.05.225 and civil and criminal penalties accruing under AS 43.05.220, 43.05.245, and 43.05.290, that are a result of the retroactivity of secs. 19 - 21 of this Act. * Sec. 32. The uncodified law of the State of Alaska is amended by adding a new section to read: RETROACTIVITY OF REGULATIONS. Notwithstanding a contrary provision of AS 44.62.240, if the Department of Revenue expressly designates in a regulation that the regulation applies retroactively to a specific date, a regulation adopted by the Department of Revenue to implement, interpret, make specific, or otherwise carry out secs. 19 - 21 of this Act applies retroactively to that date. * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to read: RETROACTIVITY. Sections 19 - 21, 29, and 31 of this Act are retroactive to January 1, 2026." Renumber the following bill sections of the amendment accordingly. Page 22, line 7 of the amendment: Delete "19 - 21, and 24" Insert "22 - 24, and 27" Page 22, line 9 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, lines 20 - 21 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, lines 25 - 26 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 31(a)" 2026-05-18 House Journal Page 2835 Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 31 of this Act, secs. 1 - 4, 22 - 24, and 27" Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 34(a)" Page 24, line 9 of the amendment: Delete "sec. 28" Insert "sec. 35" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 34(a)" Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 36 and 37" Representative Holland moved and asked unanimous consent that Amendment No. 22 to Amendment No. 2 as amended be adopted. Representative McCabe objected. The question being: "Shall Amendment No. 22 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 22 to Amendment No. 2 as amended YEAS: 18 NAYS: 22 EXCUSED: 0 ABSENT: 0 Yeas: Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Mears, Mina, Schrage, Story Nays: Allard, Bynum, Costello, Coulombe, Elam, Frier, Johnson, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance 2026-05-18 House Journal Page 2836 And so, Amendment No. 22 to Amendment No. 2 as amended was not adopted. Amendment No. 23 to Amendment No. 2 as amended was not offered. Amendment No. 24 to Amendment No. 2 as amended was moved to the bottom of the amendments. Amendment No. 25 to Amendment No. 2 as amended was offered by Representative Holland: Page 1, line 9 of the amendment, following "fund;": Insert "relating to obligations created by agreements related to an Alaska liquefied natural gas project;" Page 1, following line 23 of the amendment: Insert a new bill section to read: "* Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to read: LEGISLATIVE INTENT. It is the intent of the legislature to clarify that prudent fiscal governance permits the state to participate in, support, or facilitate an Alaska liquefied natural gas project only in a manner that preserves the full discretion of the legislature over future appropriations and prevents project debt, cost overruns, project failure, or other project liabilities from becoming obligations of the state." Renumber the following bill sections of the amendment accordingly. Page 11, following line 19 of the amendment: Insert new bill sections to read: "* Sec. 17. AS 31.25.240 is amended by adding new subsections to read: (c) An agreement related to an Alaska liquefied natural gas project may not (1) pledge the faith and credit or taxing power of the state; (2) obligate the state to guarantee, insure, or otherwise become liable for any financing obligation incurred by another person related to an Alaska liquefied natural gas project, including bonds, notes, loans, lease financing, synthetic leases, sale-leaseback, tax- equity financing, or credit agreements; 2026-05-18 House Journal Page 2837 (3) bind the state to pay or reimburse a cost overrun, revenue shortfall, deficiency payment, completion cost, delay cost, termination payment, make-whole payment, or other contingent liability; (4) create an obligation of the state to make payments beyond amounts appropriated for that purpose, including through take-or-pay, ship-or-pay, transportation services, capacity, tolling, availability payment, or similar agreement; (5) provide credit support that requires, commits, pledges, or implies the use of state money beyond money appropriated for that purpose, including by letter of credit, surety bond, liquidity facility, debt service reserve, collateral support, completion support, keepwell agreement, or moral obligation pledge; (6) covenant, represent, or otherwise agree that the legislature will appropriate money in the future; (7) bind the state to an indemnification, hold harmless, or defense obligation in connection with environmental liability, tort liability, litigation, or regulatory action, except to the extent money is appropriated for that purpose; (8) waive or limit the sovereign immunity of the state in connection with a financing, equity, operating, or commercial obligation; (9) bind the state to a capital call, mandatory additional contribution, completion guarantee, cost-overrun guarantee, debt guarantee, revenue guarantee, indemnity, or other obligation related to an equity interest, except to the extent money is appropriated for that purpose; (10) commit royalty gas, royalty-in-kind volumes, or other state-owned natural gas to a payment obligation of the state, including a firm transportation agreement, capacity reservation, ship-or-pay, take-or-pay, tolling, throughput-and-deficiency, minimum-bill, or similar agreement. (d) A financing document, equity document, credit support document, offering document, or other agreement related to an Alaska liquefied natural gas project that creates, evidences, secures, supports, or describes a debt, financing obligation, equity investment, credit support, contingent liability, or other financial obligation of the corporation, a subsidiary of the corporation, or another public enterprise or public corporation of the state must contain on the face of the agreement a statement that states that the corporation, subsidiary of the corporation, or other public enterprise or public corporation is not 2026-05-18 House Journal Page 2838 obligated to pay the obligation except from the revenue or assets of the corporation, subsidiary, or enterprise and that neither the faith and credit nor the taxing power of the state or of any political subdivision of the state is pledged to the payment of the obligation. (e) A provision of agreement that violates this section is void and unenforceable. * Sec. 18. AS 31.25 is amended by adding a new section to read: Sec. 31.25.255. Reserved authority. The state reserves full authority to amend, modify, or repeal a tax, exemption, credit, regulatory authority, ratemaking methodology, or other provision of law relating to an Alaska liquefied natural gas project. A person who participates in, finances, owns, operates, or enters into a contract related to an Alaska liquefied natural gas project may not assert against the state a claim of detrimental reliance, promissory estoppel, implied contract, breach of an implied covenant of good faith and fair dealing, or impairment of contract based on the exercise of the authority reserved under this section." Renumber the following bill sections of the amendment accordingly. Page 21, line 15 of the amendment: Delete "sec. 7" Insert "sec. 8" Page 21, line 16 of the amendment: Delete "sec. 7" Insert "sec. 8" Page 21, line 17 of the amendment: Delete "sec. 10" Insert "sec. 11" Page 21, line 18 of the amendment: Delete "sec. 10" Insert "sec. 11" Page 21, line 19 of the amendment: Delete "sec. 14" Insert "sec. 15" 2026-05-18 House Journal Page 2839 Page 21, line 20 of the amendment: Delete "sec. 14" Insert "sec. 15" Page 21, line 21 of the amendment: Delete "sec. 16" Insert "sec. 19" Page 21, line 22 of the amendment: Delete "sec. 16" Insert "sec. 19" Page 21, line 23 of the amendment: Delete "sec. 16" Insert "sec. 19" Page 21, line 27 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 21, line 30 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 2 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 3 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 7 of the amendment: Delete "Sections 1 - 4, 19 - 21, and 24" Insert "Sections 1, 3 - 5, 22 - 24, and 27" Page 22, line 9 of the amendment: Delete "sec. 21" Insert "sec. 24" 2026-05-18 House Journal Page 2840 Page 23, lines 20 - 21 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, lines 25 - 26 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, line 30 of the amendment: Delete "Section 18" Insert "Section 21" Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 30(a)" Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 30 of this Act, secs. 1, 3 - 5, 22 - 24, and 27" Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 30(a)" Page 24, line 9 of the amendment: Delete "sec. 28 of this Act, sec. 18" Insert "sec. 31 of this Act, sec. 21" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 30(a)" Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 32 and 33" Representative Holland moved and asked unanimous consent that Amendment No. 25 to Amendment No. 2 as amended be adopted. Representative Ruffridge objected. 2026-05-18 House Journal Page 2841 The question being: "Shall Amendment No. 25 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 25 to Amendment No. 2 as amended YEAS: 17 NAYS: 23 EXCUSED: 0 ABSENT: 0 Yeas: Carrick, Dibert, Edgmon, Eischeid, Foster, Frier, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Mears, Mina, Schrage, Story Nays: Allard, Bynum, Costello, Coulombe, Elam, Fields, Galvin, Johnson, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance And so, Amendment No. 25 to Amendment No. 2 as amended was not adopted. Amendment No. 26 to Amendment No. 2 as amended was not offered. Amendment No. 27 to Amendment No. 2 as amended was offered by Representative Tomaszewski: Page 2, following line 10 of the amendment: Insert a new bill section to read: "* Sec. 4. AS 29.45.050 is amended by adding a new subsection to read: (aa) A municipality may by ordinance exempt or partially exempt from taxation a spur line. In this subsection, "spur line" means a natural gas transmission or lateral line that branches from a main gas pipeline for the primary purpose of delivering natural gas to a local community or utility distribution system." Renumber the following bill sections of the amendment accordingly. Page 12, following line 30 of the amendment: Insert a new bill section to read: "* Sec. 21. AS 43.56.020(b) is amended to read: (b) There is exempt from state taxes levied or authorized 2026-05-18 House Journal Page 2842 under AS 43.56.010(a), (1) before the construction commencement date, property that is committed by contract or other agreement for use in this state primarily for the production or pipeline transportation of gas or unrefined oil, or in the operation or maintenance of facilities for the production or pipeline transportation of gas or unrefined oil; and (2) a spur line; in this paragraph, "spur line" means a natural gas transmission or lateral line that branches from a main gas pipeline for the primary purpose of delivering natural gas to a local community or utility distribution system." Renumber the following bill sections of the amendment accordingly. Page 21, line 15 of the amendment: Delete "sec. 7" Insert "sec. 8" Page 21, line 16 of the amendment: Delete "sec. 7" Insert "sec. 8" Page 21, line 17 of the amendment: Delete "sec. 10" Insert "sec. 11" Page 21, line 18 of the amendment: Delete "sec. 10" Insert "sec. 11" Page 21, line 19 of the amendment: Delete "sec. 14" Insert "sec. 15" Page 21, line 20 of the amendment: Delete "sec. 14" Insert "sec. 15" Page 21, line 21 of the amendment: Delete "sec. 16" Insert "sec. 17" 2026-05-18 House Journal Page 2843 Page 21, line 22 of the amendment: Delete "sec. 16" Insert "sec. 17" Page 21, line 23 of the amendment: Delete "sec. 16" Insert "sec. 17" Page 21, line 27 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 21, line 30 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 2 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 3 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 7 of the amendment: Delete "Sections 1 - 4, 19 - 21, and 24" Insert "Sections 1 - 5, 20 - 23, and 26" Page 22, line 9 of the amendment: Delete "sec. 21" Insert "sec. 23" Page 23, lines 20 - 21 of the amendment: Delete "sec. 21" Insert "sec. 23" Page 23, lines 25 - 26 of the amendment: Delete "sec. 21" Insert "sec. 23" Page 23, line 30 of the amendment: Delete "Section 18" Insert "Section 19" 2026-05-18 House Journal Page 2844 Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 29(a)" Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 29 of this Act, secs. 1 - 5, 20 - 23, and 26" Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 29(a)" Page 24, line 9 of the amendment: Delete "sec. 28 of this Act, sec. 18" Insert "sec. 30 of this Act, sec. 19" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 29(a)" Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 31 and 32" Representative Tomaszewski moved and asked unanimous consent that Amendment No. 27 to Amendment No. 2 as amended be adopted. Representative Fields objected. Representative McCabe placed a call of the House for all amendments to HCS CSSB 180(L&C). The Speaker stated the call was satisfied. The question being: "Shall Amendment No. 27 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 27 to Amendment No. 2 as amended 2026-05-18 House Journal Page 2845 YEAS: 7 NAYS: 33 EXCUSED: 0 ABSENT: 0 Yeas: Carrick, Dibert, Frier, Holland, Schwanke, Stapp, Tomaszewski Nays: Allard, Bynum, Costello, Coulombe, Edgmon, Eischeid, Elam, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Jimmie, Johnson, Josephson, Kopp, McCabe, Mears, Mina, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schrage, St. Clair, Story, Stutes, Underwood, Vance And so, Amendment No. 27 to Amendment No. 2 as amended was not adopted. Amendment No. 28 to Amendment No. 2 as amended was offered by Representative Tomaszewski: Page 14, following line 29 of the amendment: Insert a new subsection to read: "(i) Throughput under (e) of this section does not include natural gas that is intended for residential use. In determining whether natural gas is intended for residential use, the department shall accept a notarized affidavit from the taxpayer attesting to the intended use of the natural gas. Natural gas not included in throughput under this section remains exempt from taxation under AS 43.56.010 and AS 29.45.080." Reletter the following subsections of the amendment accordingly. Representative Tomaszewski moved and asked unanimous consent that Amendment No. 28 to Amendment No. 2 as amended be adopted. Representative Kopp objected. Representative McCabe lifted the call. The question being: "Shall Amendment No. 28 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 28 to Amendment No. 2 as amended 2026-05-18 House Journal Page 2846 YEAS: 6 NAYS: 33 EXCUSED: 0 ABSENT: 1 Yeas: Carrick, Dibert, Frier, Gray, Stapp, Tomaszewski Nays: Allard, Bynum, Costello, Coulombe, Edgmon, Eischeid, Elam, Fields, Foster, Galvin, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Kopp, McCabe, Mears, Mina, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schrage, Schwanke, St. Clair, Story, Stutes, Underwood, Vance Absent: Johnson And so, Amendment No. 28 to Amendment No. 2 as amended was not adopted. Amendment No. 29 to Amendment No. 2 as amended was offered by Representative Tomaszewski: Page 20, lines 12 - 13 of the amendment: Delete ", except that money may not be distributed to a municipality benefiting from a spur line" Representative Tomaszewski moved and asked unanimous consent that Amendment No. 29 to Amendment No. 2 as amended be adopted. Representative Kopp objected. The question being: "Shall Amendment No. 29 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 29 to Amendment No. 2 as amended YEAS: 8 NAYS: 32 EXCUSED: 0 ABSENT: 0 Yeas: Carrick, Dibert, Frier, Mears, Schrage, Schwanke, Stapp, Tomaszewski Nays: Allard, Bynum, Costello, Coulombe, Edgmon, Eischeid, Elam, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Johnson, Josephson, Kopp, McCabe, Mina, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, St. Clair, Story, Stutes, Underwood, Vance 2026-05-18 House Journal Page 2847 And so, Amendment No. 29 to Amendment No. 2 as amended was not adopted. Amendment No. 30 to Amendment No. 2 as amended was offered by Representative Josephson: Page 16, line 30 of the amendment: Delete "status." Insert "status; application. (a)" Page 17, following line 2 of the amendment: Insert a new subsection to read: "(b) A natural gas project that does not meet the conditions of (a) of this section and for which the alternative volumetric tax under AS 43.59.020 does not apply is subject to all other state and municipal taxes on taxable property, including taxes levied under AS 29.45.080 and AS 43.56.010." Representative Josephson moved and asked unanimous consent that Amendment No. 30 to Amendment No. 2 as amended be adopted. Objection was heard and withdrawn. There being no further objection, Amendment No. 30 to Amendment No. 2 as amended was adopted. Amendment No. 31 to Amendment No. 2 as amended was offered by Representative Fields: Page 16, line 21 of the amendment, following "borough": Insert ", except that after making the calculation of total proportions attributable to each municipality and the unorganized borough, the department shall deduct 2.5 percent each from the total proportion attributable to the Kenai Peninsula Borough, the North Slope Borough, the Denali Borough, and the Matanuska-Susitna Borough, and increase by five percent each the total proportional attributable to the Municipality of Anchorage and Fairbanks North Star Borough" Representative Fields moved and asked unanimous consent that Amendment No. 31 to Amendment No. 2 as amended be adopted. 2026-05-18 House Journal Page 2848 Representative McCabe objected. The question being: "Shall Amendment No. 31 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 31 to Amendment No. 2 as amended YEAS: 15 NAYS: 25 EXCUSED: 0 ABSENT: 0 Yeas: Allard, Costello, Coulombe, Dibert, Edgmon, Fields, Galvin, Gray, Hall, Holland, Josephson, D.Nelson, Saddler, Schrage, Tomaszewski Nays: Bynum, Carrick, Eischeid, Elam, Foster, Frier, Hannan, Himschoot, Jimmie, Johnson, Kopp, McCabe, Mears, Mina, Moore, G.Nelson, Prax, Ruffridge, Schwanke, St. Clair, Stapp, Story, Stutes, Underwood, Vance And so, Amendment No. 31 to Amendment No. 2 as amended was not adopted. Amendment Nos. 32 and 33 to Amendment No. 2 as amended were not offered. Amendment No. 34 to Amendment No. 2 as amended was offered by Representative Holland: Page 1, line 8 of the amendment, following "throughput;": Insert "establishing an Alaska startup accelerator grant program;" Page 12, line 20 of the amendment: Delete "and" Page 12, following line 20 of the amendment: Insert a new paragraph to read: "(2) appropriations to the Department of Commerce, Community, and Economic Development under AS 45.81.300; and" 2026-05-18 House Journal Page 2849 Renumber the following paragraph of the amendment accordingly. Page 19, line 20 of the amendment, following "year,": Insert "after the appropriations to the Department of Commerce, Community, and Economic Development under AS 45.81.300," Page 20, following line 23 of the amendment: Insert a new bill section to read: "* Sec. 23. AS 45.81 is amended by adding new sections to read: Article 4. Alaska startup accelerator grant program. Sec. 45.81.300. Natural gas project tax revenue. The Department of Revenue shall separately account for the tax collected and retained by the state arising from or relating to a natural gas project. The legislature may appropriate a portion of the tax revenue, not to exceed $500,000, to the Department of Commerce, Community, and Economic Development for the funding and operation of the Alaska startup accelerator grant program established in AS 45.81.310. In addition to other appropriations and funding sources, the department shall use the tax revenue appropriated under this section to provide grants in accordance with AS 45.81.310. Sec. 45.81.310. Alaska startup accelerator grant program. (a) The Alaska startup accelerator grant program is established in the department for the purpose of improving the ability of in-state business entities to attract private investment, increase revenue, develop or market products or services, create jobs in the state, and capture business opportunities arising in the state, including opportunities that may arise from or relate to a natural gas project. The department shall administer the program in accordance with this section. (b) Subject to appropriation, the department shall annually award grants to eligible nongovernmental entities operating startup accelerator programs in the state. The department shall determine grant amounts to be awarded under this section, except that the department shall award at least $500,000 total in grants and the amount of each grant must be at least $250,000. If insufficient funds are appropriated to award each grant recipient at least $250,000, the department shall provide as many grants of at least $250,000 as the department is able to provide with the money appropriated. If insufficient funds are appropriated to 2026-05-18 House Journal Page 2850 award at least one grant of $250,000, the department shall award one grant equal to the amount appropriated. (c) To be eligible for a grant under this section, a nongovernmental entity must operate a startup accelerator program that (1) provides services primarily to in-state business entities that develop novel products or services, including products or services relating to large or rapidly growing market opportunities with a unique value proposition; (2) uses published selection criteria designed to identify in-state business entities that demonstrate a clear path to rapid growth by (A) raising venture capital or other institutional risk capital within two years after admission to the nongovernmental entity's startup accelerator program; or (B) achieving not less than $1,000,000 in annual revenue within five years after admission to the nongovernmental entity's startup accelerator program and demonstrating potential to exceed $10,000,000 in annual revenue; (3) provides structured mentorship, customer development, business model validation, investor readiness, commercialization assistance, industry connections, technical assistance, or similar services to in-state business entities; and (4) demonstrates the ability to create and operate an outreach program that provides information about the startup accelerator program to in-state business entities whose products, services, processes, technology, logistics, workforce solutions, energy solutions, supply-chain solutions, or other business activities may support, benefit from, or otherwise relate to a natural gas project. (d) A grant recipient may use money awarded under this section for program operations, entrepreneur support services, technical assistance, mentorship, investor readiness programming, market validation, commercialization assistance, and other costs approved by the department that the department determines are necessary to operate a startup accelerator program. Sec. 45.81.320. Definitions. In AS 45.81.300 and 45.81.310, (1) "department" means the Department of Commerce, Community, and Economic Development; 2026-05-18 House Journal Page 2851 (2) "gas pipeline" (A) means a main natural gas pipeline from the outlet flange of the gas treatment plant on the North Slope to the inlet flange of the liquefied natural gas plant located in the Southcentral region of the state; (B) does not include any gas lines downstream of any offtake point between a gas treatment plant and a liquefied natural gas plant; (3) "gas treatment plant" means a facility and the related activities required to receive natural gas from a Prudhoe Bay unit gas transmission line, a Point Thomson unit gas transmission line, or other facilities to treat the natural gas to pipeline specifications, to dispose of or deliver byproducts, to deliver liquid products for further transportation, and to deliver treated natural gas for transportation through a gas pipeline; (4) "in-state business entity" means a corporation, limited liability company, partnership, sole proprietorship, or another business entity that maintains the entity's principal place of business in the state or conducts a substantial portion of the entity's management, product development, research, commercialization, or revenue-generating activities in the state; (5) "liquefied natural gas plant" means a facility for liquefying natural gas and includes structures, equipment, underlying land rights, and other associated systems, storage, and facilities for off-loading liquefied natural gas; (6) "marine terminal" means a terminal and those facilities required to receive liquefied natural gas from the boundary of the liquefied natural gas plant for marine transportation, including auxiliary vessels used in the operation of the terminal; (7) "natural gas project" means a natural gas project that includes, collectively, a Prudhoe Bay unit gas transmission line, a Point Thomson unit gas transmission line, a gas pipeline, a gas treatment plant, a liquefied natural gas plant, and a marine terminal; (8) "Point Thomson unit gas transmission line" means a natural gas transmission line from the outlet flange of the Point Thomson unit production facility to the inlet flange of the gas treatment plant; (9) "Prudhoe Bay unit gas transmission line" means a 2026-05-18 House Journal Page 2852 natural gas transmission line from the outlet flange of the Prudhoe Bay unit central gas facility to the inlet flange of the gas treatment plant." Renumber the following bill sections of the amendment accordingly. Page 22, line 7 of the amendment: Delete "24" Insert "25" Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 28 of this Act, secs. 1 - 4, 19 - 21, and 25" Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 9 of the amendment: Delete "sec. 28" Insert "sec. 29" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 28(a)" Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 30 and 31" Representative Holland moved and asked unanimous consent that Amendment No. 34 to Amendment No. 2 as amended be adopted. Representative McCabe objected. The question being: "Shall Amendment No. 34 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: 2026-05-18 House Journal Page 2853 HCS CSSB 180(L&C) Second Reading Amendment No. 34 to Amendment No. 2 as amended YEAS: 18 NAYS: 22 EXCUSED: 0 ABSENT: 0 Yeas: Carrick, Dibert, Edgmon, Fields, Foster, Frier, Galvin, Gray, Himschoot, Holland, Jimmie, Josephson, Mears, Mina, Moore, Schrage, Stapp, Story Nays: Allard, Bynum, Costello, Coulombe, Eischeid, Elam, Hall, Hannan, Johnson, Kopp, McCabe, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stutes, Tomaszewski, Underwood, Vance And so, Amendment No. 34 to Amendment No. 2 as amended was not adopted. Amendment No. 35 to Amendment No. 2 as amended was offered by Representative Frier: Page 1, following line 23 of the amendment: Insert "(3) Nothing in this Act may be construed to establish, modify, impair, limit, waive, or otherwise affect the tax treatment, assessment methodology, valuation, taxing authority, or applicability of taxes imposed under AS 43.56 or AS 29.45 with respect to any other property, project, facility, infrastructure, or taxpayer. It is the intent of the legislature that this Act be narrowly construed and not serve as precedent, guidance, or interpretive authority for the taxation of any other property subject to taxation under AS 43.56 or AS 29.45." Representative Frier moved and asked unanimous consent that Amendment No. 35 to Amendment No. 2 as amended be adopted. Objection was heard and withdrawn. There being no further objection, Amendment No. 35 to Amendment No. 2 as amended was adopted. Amendment No. 36 to Amendment No. 2 as amended was offered by Representative Dibert: 2026-05-18 House Journal Page 2854 Page 23, following line 18 of the amendment: Insert a new paragraph to read: "(1) "economically viable gas sales contract" means a contract, precedent agreement, memorandum of understanding, tariff- supported sales arrangement, or other commercially reasonable arrangement for the sale, delivery, transportation, or distribution of natural gas to serve current or reasonably projected residential, commercial, institutional, utility, or industrial demand in the City of Fairbanks, the Fairbanks North Star Borough, or the surrounding Interior area of the state, including demand aggregated by a public utility, gas distribution utility, local government, state agency, or other entity serving customers in the Interior area of the state; the gas sales contract need not demonstrate that the spur line alone will recover all capital, financing, construction, operation, or maintenance costs solely from customers in the Interior area of the state;" Renumber the following paragraphs of the amendment accordingly. Representative Dibert moved and asked unanimous consent that Amendment No. 36 to Amendment No. 2 as amended be adopted. Objection was heard and withdrawn. There being no further objection, Amendment No. 36 to Amendment No. 2 as amended was adopted. Amendment No. 37 to Amendment No. 2 as amended was offered by Representative Carrick: Page 22, line 8 of the amendment, following "if,": Insert "(1)" Page 22, line 11 of the amendment: Delete "(1)" Insert "(A)" Page 22, line 13 of the amendment: Delete "(A)" Insert "(i)" Page 22, line 16 of the amendment: Delete "(B)" Insert "(ii)" 2026-05-18 House Journal Page 2855 Delete "(A) of this paragraph" Insert "(i) of this subparagraph" Page 22, line 19 of the amendment: Delete "(C)" Insert "(iii)" Page 22, lines 19 - 20 of the amendment: Delete "(B) of this paragraph" Insert "(ii) of this subparagraph" Page 22, line 21 of the amendment: Delete "(D)" Insert "(iv)" Page 22, line 23 of the amendment: Delete "(2)" Insert "(B)" Page 22, line 24 of the amendment: Delete "paragraph" Insert "subparagraph" Page 22, line 29 of the amendment: Delete "(3)" Insert "(C)" Delete "paragraph" Insert "subparagraph" Page 22, line 31 of the amendment: Delete "(A)" Insert "(i)" Page 23, line 5 of the amendment: Delete "(i)" Page 23, lines 5 - 6 of the amendment: Delete "; and (ii)" Insert "and" 2026-05-18 House Journal Page 2856 Page 23, line 12 of the amendment: Delete "(B)" Insert "(ii)" Page 23, lines 13 - 14 of the amendment: Delete "(A) of this paragraph" Insert "(i) of this subparagraph" Page 23, line 14 of the amendment, following "paragraph": Insert "; and (2) House Bill 78, as passed by the Thirty-Fourth Alaska State Legislature during the Second Regular Session, is enacted into law" Page 24, following line 5 of the amendment: Insert a new bill section to read: "* Sec. 29. The uncodified law of the State of Alaska is amended by adding a new section to read: CONDITIONAL EFFECT: ENACTMENT OF HB 78. Sections 5 - 17, 22, 23, 25, and 26 of this Act take effect only if House Bill 78, as passed by the Thirty-Fourth Alaska State Legislature during the Second Regular Session, is enacted into law." Renumber the following bill sections of the amendment accordingly. Page 24, following line 13 of the amendment: Insert a new bill section to read: "* Sec. 32. If, under sec. 29 of this Act, secs. 5 - 17, 22, 23, 25, and 26 of this Act take effect, they take effect immediately under AS 01.10.070(c)." Renumber the following bill section of the amendment accordingly. Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 30 - 32" Representative Carrick moved and asked unanimous consent that Amendment No. 37 to Amendment No. 2 as amended be adopted. 2026-05-18 House Journal Page 2857 There was objection. Representative Carrick moved and asked unanimous consent to withdraw Amendment No. 37 to Amendment No. 2 as amended. Representative Stapp objected and withdrew the objection. There being no further objection, Amendment No. 37 to Amendment No. 2 as amended was withdrawn. Amendment No. 38 to Amendment No. 2 as amended was offered by Representative Stapp: Page 1, line 6 After "Corporation;" Insert "relating to the royalty rate for leases within the Cook Inlet sedimentary basin; relating to a report on leases receiving royalty relief;" Page 12, following line 26 Insert "*Sec 19 AS 38.05.180 is amended by adding new subsections to read: (mm) Under (j) of this section, beginning January 1, 2026, the commissioner shall modify the leases within the Kitchen Lights Unit so that the royalty rate for leases within the Kitchen Lights Unit is three percent if the lessee can demonstrate that the royalty rate, as modified under this subsection, will result in cost savings to end users of natural gas. Royalty calculations may be audited by the department at any time. The royalty modification under this subsection may be terminated if the commissioner determines that the royalty modification was assigned without approval of the commissioner, consistent with (j)(5) of this section. In this subsection, "Kitchen Lights Unit" means leases with division of lands numbers 389196, 389197, 389198, 389507, 389514, 389515, and 389923. (nn) Under (j) of this section, beginning January 1, 2027, the commissioner shall modify the leases within the Cook Inlet sedimentary basin so that the royalty rate for leases within the Cook Inlet sedimentary basin is five percent if the lessee can demonstrate that the royalty rate, as modified under this subsection, will result in cost savings to end users of natural gas. Royalty calculations may be audited by the department at any time. The royalty modification under 2026-05-18 House Journal Page 2858 this subsection may be terminated if the commissioner determines that the royalty modification was assigned without approval of the commissioner, consistent with (j)(5) of this section. This subsection does not apply to leases modified under (mm) of this section. (oo) Every five years, the commissioner shall prepare a report on the leases receiving royalty relief under this section. Every five years, beginning January 1, 2031, the commissioner shall deliver the report not later than the first day of the regular session of the legislature to the senate secretary and the chief clerk of the house of representatives and notify the legislature that the report is available. The commissioner shall certify the accuracy of the information in the report and certify that the report is consistent with information reported to other agencies of the state. The state may audit information published in the report. The report must set out: (1) the amount of oil and gas produced from the leases in the preceding five-year period, including the cumulative amounts of oil and gas produced over the five-year period and the annual amount of oil and gas produced for each year covered by the report; (2) unless the information is otherwise confidential, financial and operational information for the leases for the preceding five-year period, including capital expenditures, operating expenditures, average cost of production, average realized sales price for oil and gas produced from the leases, and development activity occurring in the leases, including the number of wells drilled, completed, and producing and other significant capital projects or enhanced recovery efforts occurring in the leases; (3) the amount of royalty revenue received from the leases during the preceding five years; (4) a discussion of the effects on the state of the royalty modification under this section, including the total amount of royalty revenue received by the state under the modified royalty rate, an estimate of royalty revenue that would have been received without the modification, and an analysis of the extent to which the royalty modification has affected production, investment, and continued operation of the leases; (5) a description of the future of the unit, including anticipated production over the next five years, planned development activities, and conditions necessary for continued operation of the leases; and (6) an analysis of the effects on energy costs for state residents resulting from royalty modification under this section and from 2026-05-18 House Journal Page 2859 production from the leases, including, if practicable, the effect on regional energy prices." Page 24, following line 5 Insert "Section 29. The uncodified law of the State of Alaska is amended by adding a new section to read: RETROACTIVITY. AS 38.05.180(mm), enacted by sec. 19 of this Act, is retroactive to January 1, 2026." Renumber sections accordingly Representative Stapp moved and asked unanimous consent that Amendment No. 38 to Amendment No. 2 as amended be adopted. Representative Josephson objected. Representative McCabe placed a call of the House for HCS CSSB 180(L&C). Representative Stapp moved and asked unanimous consent to withdraw Amendment No. 38 to Amendment No. 2 as amended. There being no objection, the amendment was withdrawn. Amendment No. 21 to Amendment No. 2 as amended was offered by Representative Frier: Page 1, line 6 of the amendment, following "taxes": Insert "and equity ownership agreements" Page 2, lines 9 - 20 of the amendment: Delete all material and insert: "(B) does not include (i) tax revenue resulting from property taxes on a gas treatment plant, carbon capture facility, or liquefied natural gas facility related to a natural gas project, as defined in AS 43.59.100; (ii) appropriations of revenue received by a municipality under AS 43.59.030; * Sec. 4. AS 29.45.050 is amended by adding a new subsection to read: 2026-05-18 House Journal Page 2860 (aa) A municipality may by ordinance partially or totally exempt from taxation or provide an alternate tax rate for all or some property related to a natural gas project for a designated period. A municipality may by ordinance permit deferral of payment of taxes on a natural gas project for a designated period. A municipality may apply an exemption or deferral under this subsection to taxes levied for special services in a service area that is supervised by an elected service area board under AS 29.35.460 unless the elected service area board objects to the exemption or deferral by resolution adopted not later than 60 days after the effective date of the municipal ordinance enacting the tax exemption or deferral. A municipality may adopt an ordinance under this subsection only if, before it is adopted, copies of the proposed ordinance made available at a public hearing on it contain written notice that the ordinance, if adopted, may be repealed by the voters through referendum. An ordinance adopted under this subsection must include specific eligibility requirements and require a written application for each exemption or deferral. In this subsection, "natural gas project" has the meaning given in AS 43.59.100. * Sec. 5. AS 29.45 is amended by adding a new section to read: Sec. 29.45.085. Alternative volumetric tax election; equity option. (a) A municipality may by ordinance elect to exempt from municipal taxation under AS 29.45.010 - 29.45.560 a gas treatment plant, carbon capture facility, or liquefied natural gas plant. (b) If a municipality by ordinance elects to exempt property from tax under (a) of this section, the municipality may by ordinance elect to enter into an agreement with the owner of the gas treatment plant, carbon capture facility, or liquefied natural gas plant to receive an equity interest in the gas treatment plant, carbon capture facility, or liquefied natural gas plant. (c) An equity interest accrued under (b) of this section (1) may be structured as an ownership interest, revenue interest, or other equivalent participation; (2) must be in proportion to the value determined as if the property were subject to municipal property tax; (3) must entitle the municipality to distributions, participation, voting and governance rights, contractual rights, and options, consistent with other equity holders. 2026-05-18 House Journal Page 2861 (d) An equity interest accrued under this section is exempt from the limitations in AS 29.45.080(c) - (f) and 29.45.090. (e) In this section, "carbon capture facility," "gas treatment plant," and "liquefied natural gas plant" mean a "carbon capture facility," "gas treatment plant," or "liquefied natural gas plant" associated with a natural gas project, as defined in AS 43.59.100." Renumber the following bill sections of the amendment accordingly. Page 12, following line 30 of the amendment: Insert a new bill section to read: "* Sec. 21. AS 43.56.010(b) is amended to read: (b) A municipality may levy and collect a tax under AS 29.45.080 at the rate of taxation that applies to other property taxed by the municipality. The tax shall be levied at a rate not [NO] higher than the rate applicable to other property taxable by the municipality. Except as provided in this section and AS 29.45.085, a [A] municipality may not exempt from taxation property authorized to be taxed under this chapter. Exemptions shall be limited to those in AS 29.45.030, 29.45.050, and AS 43.56.020." Renumber the following bill sections of the amendment accordingly. Page 13, following line 12 of the amendment: Insert a new bill section to read: "* Sec. 23. AS 43.56.210(5) is amended to read: (5) "taxable property" (A) means real and tangible personal property used or committed by contract or other agreement for use within this state primarily in the exploration for, production of, or pipeline transportation of gas or unrefined oil (except for property used solely for the retail distribution or liquefaction of natural gas), or in the operation or maintenance of facilities used in the exploration for, production of, or pipeline transportation of gas or unrefined oil; "taxable property" includes (i) machinery, appliances, supplies, and equipment; (ii) drilling rigs, wells (whether producing or 2026-05-18 House Journal Page 2862 not), gathering lines and transmission lines, pumping stations, compressor stations, power plants, topping plants, and processing units; (iii) roads, tank farms, tanker terminals, docks and other port facilities, and air strips; (iv) aircraft and motor vehicles owned by a person whose principal business in the state is the exploration for, production of, or pipeline transportation of gas or unrefined oil and whose operation of the aircraft or motor vehicle directly relates to the conduct of that business; (v) maintenance equipment and facilities, and maintenance camps and other related facilities; and (vi) communications facilities owned by a person whose principal business in the state is the exploration for, production of, or pipeline transportation of gas or unrefined oil and whose operation of the communications facilities directly relates to the conduct of that business; (B) does not include (i) permanent residences; (ii) office buildings requiring substantial local government services; (iii) oil and gas pipeline systems owned and operated by a public utility that is certificated under AS 42.05.221 and is regulated by the Regulatory Commission of Alaska; (iv) aircraft and motor vehicles, except aircraft and motor vehicles taxable under (A)(iv) of this paragraph; [AND] (v) communications facilities, except communications facilities taxable under (A)(vi) of this paragraph; and (vi) property related to a gas treatment plant, as defined in AS 43.59.100;" Renumber the following bill sections accordingly. Page 13, line 30, through page 14, line 21 of the amendment: Delete all material and insert: 2026-05-18 House Journal Page 2863 "(b) The volumetric tax is $0.09 for each 1,000 cubic feet of natural gas transported through a gas pipeline. (c) Beginning the first year the tax applies to throughput of a gas pipeline, the rate of tax for throughput under this section shall be adjusted on January 1 of each year for inflation, using 100 percent of the average change each year over the preceding five calendar years in the Consumer Price Index for all urban consumers for urban Alaska, as determined by the United States Department of Labor, Bureau of Labor Statistics." Reletter the following subsections of the amendment accordingly. Page 14, line 31, through page 15, line 1 of the amendment: Delete "and with each municipality collecting tax under this section" Page 15, line 13 of the amendment: Delete "or a municipality" Page 16, lines 14 - 21 of the amendment: Delete all material and insert: "Sec. 43.59.030. Allocation of alternative tax. (a) The department shall levy and collect the alternative volumetric tax imposed by this chapter. (b) The department shall separately account for the tax collected by the state under AS 43.59.020. Each year, the legislature may appropriate (1) 50 percent of the tax collected under AS 43.59.020 to the portion of the state through which a gas pipeline runs, with appropriations proportionately divided among the municipalities and unorganized borough through which the gas pipeline runs; to determine the proportional distribution under this paragraph, the length of pipeline in a municipality is divided by the total length of the pipeline; the state shall retain the portions of the tax for the proportion of the pipeline in the unorganized borough that is also outside a municipality; and (2) 50 percent of the tax collected under AS 43.59.020 to municipalities, reserves, and communities in the unorganized borough, distributed on a per capita basis." 2026-05-18 House Journal Page 2864 Page 17, lines 3 - 12 of the amendment: Delete "Reporting; regulations. (a) The owner of property subject to tax under this section shall, at the request of the department, provide to the department the information necessary to calculate the tax under this section, including capital expenditures made by the owner. Notwithstanding AS 40.25.100(a) and AS 43.05.230, the department shall hold confidential proprietary information provided to the department under this subsection at the request of the owner. In this subsection "proprietary information" means information that, if publicly disclosed, would adversely affect the competitive position of the owner or materially diminish the commercial value of the information to the owner. (b)" Insert "Regulations." Page 17, lines 17 - 18 of the amendment: Delete "; and (4) reporting and verifying capital expenditures for the purpose of the calculations under AS 43.59.020(d) and adopting regulations under AS 43.59.030" Page 17, lines 20 - 22 of the amendment: Delete all material. Renumber the following paragraphs of the amendment accordingly. Page 21, line 15 of the amendment: Delete "sec. 7" Insert "sec. 8" Page 21, line 16 of the amendment: Delete "sec. 7" Insert "sec. 8" Page 21, line 17 of the amendment: Delete "sec. 10" Insert "sec. 11" 2026-05-18 House Journal Page 2865 Page 21, line 18 of the amendment: Delete "sec. 10" Insert "sec. 11" Page 21, line 19 of the amendment: Delete "sec. 14" Insert "sec. 15" Page 21, line 20 of the amendment: Delete "sec. 14" Insert "sec. 15" Page 21, line 21 of the amendment: Delete "sec. 16" Insert "sec. 17" Page 21, line 22 of the amendment: Delete "sec. 16" Insert "sec. 17" Page 21, line 23 of the amendment: Delete "sec. 16" Insert "sec. 17" Page 21, line 27 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 21, line 30 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 2 of the amendment: Delete "sec. 12" Insert "sec. 13" Page 22, line 3 of the amendment: Delete "sec. 12" Insert "sec. 13" 2026-05-18 House Journal Page 2866 Page 22, line 7 of the amendment: Delete "Sections 1 - 4, 19 - 21, and 24" Insert "Sections 1 - 5, 20 - 24, and 27" Page 22, line 9 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, lines 20 - 21 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, lines 25 - 26 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, line 30 of the amendment: Delete "Section 18" Insert "Section 19" Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 30(a)" Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 29 of this Act, secs. 1 - 5, 20 - 24, and 27" Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 30(a)" Page 24, line 9 of the amendment: Delete "sec. 28 of this Act, sec. 18" Insert "sec. 31 of this Act, sec. 19" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 29(a)" 2026-05-18 House Journal Page 2867 Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 31 and 32" Representative Frier moved and asked unanimous consent that Amendment No. 21 to Amendment No. 2 as amended be adopted. Representative Kopp objected. The question being: "Shall Amendment No. 21 to Amendment No. 2 as amended be adopted?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Amendment No. 21 to Amendment No. 2 as amended YEAS: 21 NAYS: 19 EXCUSED: 0 ABSENT: 0 Yeas: Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Frier, Galvin, Gray, Hall, Hannan, Himschoot, Jimmie, Johnson, Josephson, Mears, Mina, Moore, Schrage, Stapp, Story Nays: Allard, Bynum, Costello, Coulombe, Elam, Holland, Kopp, McCabe, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stutes, Tomaszewski, Underwood, Vance Allard changed from "YEA" to "NAY" Galvin changed from "NAY" to "YEA" And so, Amendment No. 21 to Amendment No. 2 as amended was adopted. Amendment No. 24 to Amendment No. 2 as amended was offered by Representative Frier: Page 2, following line 10 of the amendment: Insert new bill sections to read: "* Sec. 4. AS 29.45.050 is amended by adding a new subsection to read: (aa) A municipality may by ordinance partially or totally exempt from taxation or provide an alternate tax rate for all or some property related to a gas transmission line for a designated period. A municipality may by ordinance permit deferral of 2026-05-18 House Journal Page 2868 payment of taxes on a gas transmission line for a designated period. A municipality may apply an exemption or deferral under this subsection to taxes levied for special services in a service area that is supervised by an elected service area board under AS 29.35.460 unless the elected service area board objects to the exemption or deferral by resolution adopted not later than 60 days after the effective date of the municipal ordinance enacting the tax exemption or deferral. A municipality may adopt an ordinance under this subsection only if, before it is adopted, copies of the proposed ordinance made available at a public hearing on it contain written notice that the ordinance, if adopted, may be repealed by the voters through referendum. An ordinance adopted under this subsection must include specific eligibility requirements and require a written application for each exemption or deferral. In this subsection, "gas transmission line" means a Point Thomson unit gas transmission line or a Prudhoe Bay unit gas transmission line, as those terms are defined in AS 29.45.085. * Sec. 5. AS 29.45 is amended by adding a new section to read: Sec. 29.45.085. Alternative volumetric tax election; equity option. (a) If a municipality by ordinance elects to exempt or partially exempt a gas transmission line from tax under AS 29.45.050(c), the municipality may by ordinance elect to enter into an agreement with the owner of the gas transmission line to receive an equity interest in the gas transmission line or a related natural gas project. (b) An equity interest accrued under (a) of this section (1) may be structured as an ownership interest, revenue interest, or other equivalent participation; (2) must be in proportion to the value determined as if the property were subject to municipal property tax; (3) must entitle the municipality to distributions, participation, voting and governance rights, contractual rights, and options, consistent with other equity holders. (c) An equity interest accrued under this section is exempt from the limitations in AS 29.45.080(c) - (f) and 29.45.090. (d) In this section, (1) "gas transmission line" means a Point Thomson unit gas transmission line or a Prudhoe Bay unit gas transmission line; (2) "natural gas project" has the meaning given in 2026-05-18 House Journal Page 2869 AS 43.59.100; (3) "Point Thomson unit gas transmission line" means a natural gas transmission line from the outlet flange of the Point Thomson unit production facility to the inlet flange of the gas treatment plant; (4) "Prudhoe Bay unit gas transmission line" means a natural gas transmission line from the outlet flange of the Prudhoe Bay unit central gas facility to the inlet flange of the gas treatment plant." Renumber the following bill sections of the amendment accordingly. Page 13, following line 12 of the amendment: Insert a new bill section to read: "* Sec. 23. AS 43.56.210(5) is amended to read: (5) "taxable property" (A) means real and tangible personal property used or committed by contract or other agreement for use within this state primarily in the exploration for, production of, or pipeline transportation of gas or unrefined oil (except for property used solely for the retail distribution or liquefaction of natural gas), or in the operation or maintenance of facilities used in the exploration for, production of, or pipeline transportation of gas or unrefined oil; "taxable property" includes (i) machinery, appliances, supplies, and equipment; (ii) drilling rigs, wells (whether producing or not), gathering lines and transmission lines, pumping stations, compressor stations, power plants, topping plants, and processing units; (iii) roads, tank farms, tanker terminals, docks and other port facilities, and air strips; (iv) aircraft and motor vehicles owned by a person whose principal business in the state is the exploration for, production of, or pipeline transportation of gas or unrefined oil and whose operation of the aircraft or motor vehicle directly relates to the conduct of that business; (v) maintenance equipment and facilities, and 2026-05-18 House Journal Page 2870 maintenance camps and other related facilities; and (vi) communications facilities owned by a person whose principal business in the state is the exploration for, production of, or pipeline transportation of gas or unrefined oil and whose operation of the communications facilities directly relates to the conduct of that business; (B) does not include (i) permanent residences; (ii) office buildings requiring substantial local government services; (iii) oil and gas pipeline systems owned and operated by a public utility that is certificated under AS 42.05.221 and is regulated by the Regulatory Commission of Alaska; (iv) aircraft and motor vehicles, except aircraft and motor vehicles taxable under (A)(iv) of this paragraph; [AND] (v) communications facilities, except communications facilities taxable under (A)(vi) of this paragraph; and (vi) property related to a Point Thomson unit gas transmission line or a Prudhoe Bay unit gas transmission line, as those terms are defined in AS 29.45.085;" Renumber the following bill sections of the amendment accordingly. Page 14, following line 24 of the amendment: Insert a new subsection to read: "(h) The alternative volumetric tax under this section and the tax abatement under AS 43.59.010 do not apply to a Point Thomson unit gas transmission line or a Prudhoe Bay unit gas transmission line. A Point Thomson unit gas transmission line or a Prudhoe Bay unit gas transmission line remains subject to taxation under AS 29.45. In this subsection, "Point Thomson unit gas transmission line" and "Prudhoe Bay unit gas transmission line" have the meanings given in AS 29.45.085." Reletter the following subsections of the amendment accordingly. 2026-05-18 House Journal Page 2871 Page 18, lines 2 - 3 of the amendment: Delete "Prudhoe Bay unit gas transmission line, a Point Thomson unit" Page 18, line 6 of the amendment, following "pipeline": Insert "associated with a natural gas project" Page 18, lines 11 - 12 of the amendment: Delete "a Prudhoe Bay unit gas transmission line, a Point Thomson unit gas transmission line," Page 18, line 14 of the amendment: Delete "(A)" Page 18, lines 18 - 23 of the amendment: Delete all material. Page 21, line 15 of the amendment: Delete "sec. 7" Insert "sec. 9" Page 21, line 16 of the amendment: Delete "sec. 7" Insert "sec. 9" Page 21, line 17 of the amendment: Delete "sec. 10" Insert "sec. 12" Page 21, line 18 of the amendment: Delete "sec. 10" Insert "sec. 12" Page 21, line 19 of the amendment: Delete "sec. 14" Insert "sec. 16" Page 21, line 20 of the amendment: Delete "sec. 14" Insert "sec. 16" 2026-05-18 House Journal Page 2872 Page 21, line 21 of the amendment: Delete "sec. 16" Insert "sec. 18" Page 21, line 22 of the amendment: Delete "sec. 16" Insert "sec. 18" Page 21, line 23 of the amendment: Delete "sec. 16" Insert "sec. 18" Page 21, line 27 of the amendment: Delete "sec. 12" Insert "sec. 14" Page 21, line 30 of the amendment: Delete "sec. 12" Insert "sec. 14" Page 22, line 2 of the amendment: Delete "sec. 12" Insert "sec. 14" Page 22, line 3 of the amendment: Delete "sec. 12" Insert "sec. 14" Page 22, line 7 of the amendment: Delete "Sections 1 - 4, 19 - 21, and 24" Insert "Sections 1 - 6, 21 - 24, and 27" Page 22, line 9 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, lines 20 - 21 of the amendment: Delete "sec. 21" Insert "sec. 24" 2026-05-18 House Journal Page 2873 Page 23, lines 25 - 26 of the amendment: Delete "sec. 21" Insert "sec. 24" Page 23, line 30 of the amendment: Delete "Section 18" Insert "Section 20" Page 24, line 5 of the amendment: Delete "sec. 27(a)" Insert "sec. 30(a)" Page 24, line 6 of the amendment: Delete "sec. 27 of this Act, secs. 1 - 4, 19 - 21, and 24" Insert "sec. 29 of this Act, secs. 1 - 6, 21 - 24, and 27" Page 24, line 8 of the amendment: Delete "sec. 27(a)" Insert "sec. 30(a)" Page 24, line 9 of the amendment: Delete "sec. 28 of this Act, sec. 18" Insert "sec. 31 of this Act, sec. 20" Page 24, line 13 of the amendment: Delete "sec. 27(a)" Insert "sec. 30(a)" Page 24, line 14 of the amendment: Delete "secs. 29 and 30" Insert "secs. 32 and 33" Representative Frier moved and asked unanimous consent that Amendment No. 24 to Amendment No. 2 as amended be adopted. Representative Kopp objected. Representative Frier moved and asked unanimous consent to table Amendment No. 24 to Amendment No. 2 as amended. There being no objection, the amendment was tabled. 2026-05-18 House Journal Page 2874 Representative Kopp moved and asked unanimous consent that the House rescind previous action in adopting Amendment No. 21 to Amendment No. 2 as amended. There was objection. The question being: "Shall the House rescind previous action in adopting Amendment No. 21 to Amendment No. 2 as amended?" The roll was taken with the following result: HCS CSSB 180(L&C) Second Reading Rescind Previous Action in adopting Amendment No. 21 to Amendment No. 2 YEAS: 20 NAYS: 20 EXCUSED: 0 ABSENT: 0 Yeas: Allard, Bynum, Costello, Coulombe, Elam, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Stutes, Tomaszewski, Underwood, Vance Nays: Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Frier, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Johnson, Josephson, Mears, Mina, Schrage, Story And so, the motion failed. The Speaker stated that, without objection, HCS CSSB 180(L&C) with Amendment No. 2 as amended pending would be moved to the bottom of the calendar. Representative McCabe lifted the call.