Senate Resources rejects foreign-ownership and tax-allocation amendments, adopts reduced impact fee and inlet-sale change for SB 28

The Senate Resources Committee on May 13 considered a package of amendments to Senate Bill 28, the legislation that would replace the existing property-tax framework for the proposed Alaska LNG project and establish related community-impact payments.

Chair Senator Giesel led the session, which opened with debate on Amendment H5, offered by sponsor Senator Rosher. H5 would have narrowed the committee’s current approval requirement by allowing relationships with foreign entities unless they resulted in a controlling interest (50% or more) or exceeded $500,000,000, and would have required the Legislature to act within 90 days when approval is required. Senator Giesel opposed the amendment, saying the state must know where ownership of a state asset could end up. After discussion that included constitutional and federal preemption concerns raised by Senator Myers, the committee voted H5 down by roll call, 2 yeas to 5 nays.

The committee then debated Amendment H6, which Senator Rosher described as a reduction of the per-mile community-impact fee from figures considered earlier in the session to $500,000 per mile to make the project more economically feasible. Senator Wilikowski noted the $1,000,000-per-mile figure originated from earlier MAG analysis and related discussions; Senators Kawasaki and Dunbar emphasized prior analytical work on municipal impacts. After discussion and the chair’s removal of her objection, the committee adopted H6 (no roll-call tally was recorded in the transcript).

Senator Rosher next moved Amendment H8 to return property-tax receipts to municipalities (restoring an earlier governor-proposed allocation). Supporters said municipalities preferred direct control for speed and local responsiveness; opponents said the bill’s current structure intentionally spreads benefits statewide. The amendment failed on a roll call, 2 yeas to 5 nays.

Amendment H9, also offered by Senator Rosher, would allow producers in the inlet to continue selling their gas into the pipeline once constructed. Senators Dunbar and Kawasaki expressed that the amendment posed little harm and could protect small producers’ ability to market existing reserves. The chair removed her objection and H9 was adopted (no roll-call recorded in the transcript).

Senator Rosher offered one further change, Amendment H7, to reduce the per-mile fee to $250,000; debate focused on arithmetic (committee members discussed a roughly 740–800 mile phase‑1 route and historical estimates ranging from about $740 million to $1.8 billion). Senators raised concerns about inflation and undercutting municipal protections; H7 failed on a 3–4 roll-call vote.

Finally, the committee discussed but set aside Amendment G3 (sponsored by Senator Myers), which would exempt community-serving spur lines from the oil-and-gas property tax. Legislative legal counsel Sonia Kostaki cautioned the committee to tailor language to avoid unintended consequences; members requested further drafting to ensure the amendment would not unintentionally exempt utilities that are already addressed under existing statute. Senator Myers agreed to continue work and the amendment was tabled for a later meeting.

What this means: the committee preserved the bill’s general framework while trimming one high per‑mile community-impact figure and adding a provision to protect inlet producers’ market access. Several amendments failed, and one significant sponsor‑led amendment (G3) was held for redrafting, so SB 28 remains a work in progress.

Votes at a glance - Amendment H5 (limit foreign-controlling ownership unless >50% or >$500M): Failed, 2 yeas, 5 nays (roll call recorded in committee minutes). - Amendment H6 (community-impact fee adjusted to $500,000 per mile): Adopted (chair removed objection; no roll-call tally shown in transcript). - Amendment H8 (return property-tax receipts to municipalities): Failed, 2 yeas, 5 nays. - Amendment H9 (allow inlet producers to sell into pipeline): Adopted (no roll-call tally shown in transcript). - Amendment H7 (lower fee to $250,000 per mile): Failed, 3 yeas, 4 nays. - Amendment G3 (spur-line tax exemption): Tabled for redrafting and future consideration.

Committee comments and next steps Sponsor Senator Rosher framed her amendments as efforts to make the project more likely to reach a final investment decision and to preserve market access for existing producers. Opponents, including Chair Giesel and Senator Wilikowski, repeatedly pointed to the need to protect statewide benefit and to rely on prior analyses (e.g., the MAG work) to calibrate municipal impacts.

The committee will continue SB 28 work in subsequent hearings to address drafting questions and possible unintended consequences; members indicated interest in further fiscal analyses and clarified drafting on spur‑line exemptions.

(Attributions: quotes and positions drawn from committee debate and roll-call statements during the May 13, 2026 Senate Resources Committee hearing on SB 28, as recorded in the committee transcript.)