Alaska legislature approves House Bill 194 enhancing Marathon refinery oil supply stability

The Alaska State Legislature's House Resources Committee convened on April 16, 2025, to discuss key legislative matters, primarily focusing on House Bill 194. The meeting commenced with a review of the bill's progress, with representatives confirming that it had reached step 11, seeking legislative approval after being submitted to the legislature.

A significant point of discussion involved the optional one-year extensions related to the contract approval process. Representatives clarified that while the department would assess the necessity of these extensions annually, the initial approval would encompass the ability to exercise them without requiring yearly returns to the legislature.

The committee also addressed the volume of oil supplied to in-state refineries, particularly the Marathon Refinery in Nikiski. Concerns were raised about whether the refinery was receiving adequate oil supplies. Representatives noted that the contract allows for a range of 10,000 to 15,000 barrels per day, with historical data indicating a decline in volumes due to reduced demand for refined fuels and the refinery sourcing oil from various locations, including Cook Inlet and potentially out of state.

Public testimony was opened, featuring Casey Sullivan, the government and public affairs manager for Marathon Petroleum. Sullivan expressed strong support for House Bill 194, emphasizing the refinery's long-standing role in Alaska's economy and its commitment to producing essential fuel products. He highlighted the contract's benefits, including stable supply and flexibility to meet seasonal demand fluctuations.

Following the public testimony, Co-chair Deibert moved to advance House Bill 194 from the committee with an attached fiscal note and individual recommendations. The motion passed without objection, marking a significant step forward for the bill.

The meeting concluded with an announcement that the next House Resources Committee meeting would take place on April 23, 2025, where further discussions, including a presentation from the GDC, are expected.