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HB0119b -1- CSHB 119(STA)
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CS FOR HOUSE BILL NO. 119(STA)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE HOUSE STATE AFFAIRS COMMITTEE
Offered: 5/7/25
Referred: Resources
Sponsor(s): REPRESENTATIVES STAPP, Carrick, Prax, Tomaszewski, Allard, Schwanke, Dibert, Burke
A BILL
FOR AN ACT ENTITLED
"An Act relating to an in-state n atural gas pipe line developed by the Alaska Gasline 1
Development Corporation; relating to use of certain gas product ion tax revenue; and 2
providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 31.25.005 is amended to read: 5
Sec. 31.25.005. Purpose. The corporation shall, for t he benefit of the state, to 6
the fullest extent possible, 7
(1) develop and have primary responsibility for developing nat ural gas 8
pipelines, an Alaska liquefied natural gas project, and other transportation mechanisms 9
to deliver natural gas in-state for the maximum benefit of the people of the state; 10
(2) when developing natural gas pipelines, an Alaska liquefied natural 11
gas project, and other transportation mechanisms to deliver nat ural gas in-state, 12
provide economic benefits in the state and revenue to the state; 13
(3) assist the Department of Na tural Resources and the Departm ent of 14
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CSHB 119(STA) -2- HB0119b
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Revenue to maximize the value of the state's royalty natural ga s, natural gas delivered 1
to the state as payment of tax, and other natural gas received by the state; 2
(4) advance an in-state natural gas pipeline as described in t he July 1, 3
2011, project plan prepared under former AS 38.34.040 by the co rporation while a 4
subsidiary of the Alaska Housing Finance Corporation, with modi fications determined 5
by the corporation to be appropr iate to develop, finance, const ruct, and operate an in-6
state natural gas pipeline in a safe, prudent, economical, and efficient manner, for the 7
purpose of making natural gas, including propane and other hydr ocarbons associated 8
with natural gas other than oil, available to Fairbanks, the So uthcentral region of the 9
state, and other communities in the state at the lowest rates p ossible; an in-state 10
natural gas pipeline advanced under this paragraph must include a direct spur 11
line to the City of Fairbanks and the Fairbanks North Star Borough; 12
(5) advance an Alaska liquefied natural gas project by develop ing 13
infrastructure and providing related services, including servic es related to 14
transportation, liquefaction, a ma rine terminal, marketing, and commercial support; if 15
the corporation provides a serv ice under this paragraph to the state, a public 16
corporation or instrumentality of the state, a political subdiv ision of the state, or 17
another entity of the state, the corporation may not charge a f ee for the service in an 18
amount greater than the amount necessary to reimburse the corpo ration for the cost of 19
the service; an in-state natural gas pipelin e advanced under this paragraph must 20
include a direct spur line to the City of Fairbanks and the Fai rbanks North Star 21
Borough; 22
(6) endeavor to develop natural gas pipelines and other transp ortation 23
mechanisms to deliver natural g as, including propane and other hydrocarbons 24
associated with natural gas other than oil, to public utility a nd industrial customers in 25
areas of the state to which the natural gas, including propane and other hydrocarbons 26
associated with natural gas other than oil, may be delivered at commercially 27
reasonable rates; and 28
(7) endeavor to develop natural gas pipelines and other transp ortation 29
mechanisms that offer commercially reasonable rates for shipper s and access for 30
shippers who produce natural gas , including propane and other h ydrocarbons 31
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HB0119b -3- CSHB 119(STA)
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associated with natural gas other than oil, in the state. 1
* Sec. 2. AS 43.55.011 is amended by adding a new subsection to read: 2
(q) The department shall separately account for the amount of tax levied under 3
this section from gas that was transported through a pipeline o r other infrastructure 4
developed under AS 31.25.005(4) or (5 ). The legislature may app ropriate the amount 5
accounted for under this section to construct natural gas line connections to places of 6
business and residence. 7
* Sec. 3. This Act takes effect immediately under AS 01.10.070(c). 8