Alaska

It’s the Alaska Legislature’s last day in special session. Here’s the latest.

Published

4 weeks ago

June 19, 2026

It’s the Alaska Legislature’s last day in special session. Here’s the latest.

The Alaska Senate plans to vote today on a new draft of a bill that would reduce taxes on the Alaska LNG project. It’s the last day of a special session Gov. Mike Dunleavy called to consider the issue.

Dunleavy and pipeline developer Glenfarne, which owns a 75% stake in the project, say a measure replacing a 2% annual property tax with a much smaller tax on gas throughput is essential to allowing the project to attract investors and court lenders. Dunleavy and Glenfarne applauded the version of the bill that passed the House a week ago.

The Alaska LNG project, estimated by the developer to cost up to $54.5 billion, includes an 807-mile pipeline, a conditioning facility on the North Slope to remove gas impurities such as carbon dioxide, and a liquefaction plant on the shores of Cook Inlet to export the gas to Asia. The project would be split into two phases: first, a shorter in-state pipeline to provide gas to Alaskans, and then the much more expensive — and much more lucrative — export infrastructure.

The Senate’s new draft retains many of the House’s provisions with some important changes.

Perhaps the most significant changes are to the project’s timeline: to be eligible for tax relief, the developer must commit to a final investment decision for the first phase by Jan. 1, 2028, and construction of the in-state pipeline would need to be complete by the end of 2032.

The House’s version required only that construction begin by Jan. 1, 2032.

The faster timeline is an effort to address Southcentral’s looming shortage of natural gas, said Sen. Bert Stedman, a Sitka Republican and a co-chair of the Senate Finance Committee. The Department of Natural Resources’ production forecast envisions demand outstripping Cook Inlet gas production by 2032, requiring producers to dip into storage.

“There’s been a lot of concern out of the Railbelt with the declining volume in Cook Inlet,” Stedman said.

But the more aggressive timeline sparked concerns from minority Republicans on the committee; it increases the risk on an already risky, marginal project, they said.

“That’s very damaging,” said Sen. Mike Cronk, a Tok Republican and the Senate minority leader. “There’s so many factors that we don’t control.”

Putting a “hard construction date” in the bill may be a “poison pill,” Cronk said.

Glenfarne and Gov. Mike Dunleavy did not immediately respond to requests for comment on the new version of the bill.

Stedman suggested future legislatures could revise the date to account for “unforeseen black swan events.”

“We can change these and modify these going forward,” Stedman said. “This is not in the Constitution, so I think there’d be some consideration under good faith trying to get the project constructed.”

The tax rate at the heart of the bill — the so-called alternative volumetric tax on gas flowing through the pipeline from the North Slope to Southcentral Alaska — would be fixed, rather than a weighted average tied to the cost of each component of the project.

The Senate draft sets the tax initially at 6.2 cents per 1,000 cubic feet of gas throughput, starting five years after gas begins to flow through the pipeline. The tax would take effect sooner if throughput reaches 500 million cubic feet per day, which is more than double what Southcentral Alaska uses now.

The tax would rise to 10.6 cents per 1,000 cubic feet once Phase 2 of the project, which includes the liquefied natural gas export facility, is up and running. The tax revenue from that mirrors what the Department of Revenue estimates the weighted tax that passed the House would yield.

The rates would rise between 1% and 3% each year, depending on inflation.

The House backed 30-plus years of tax breaks. Some senators were skeptical of that, so their version doubles the tax rate ten years after exports begin, then doubles them again in 2060.

The new bill retains key conditions for the tax relief included in the House’s version: the developer must commit to building a spur line to Fairbanks and negotiate project labor agreements with unions. It also includes up to $80 million in community impact funding for municipalities: $40 million due shortly after the final investment decision for each project phase.

It also includes House-passed price controls on in-state gas. Utilities would pay no more than $16 per million British thermal units, adjusted for inflation. That’s roughly $16.60 per 1,000 cubic feet, substantially higher than current Southcentral gas rates — about $10 — but likely cheaper than imported gas, according to Southcentral’s gas utility.

Also notable is an omission from the bill. It does not include a measure that had been under discussion that would subject large so-called S corporations and other pass-through entities in the oil and gas business, like LLCs, to the state’s corporate income tax.

Glenfarne, in its only comments so far on the new bill, urged lawmakers not to include that tax in the final version.

“If the Senate passes a bill with the proposed S Corp tax, it will introduce major hurdles for Alaska LNG to secure the right financing to build the project,” the company said in a statement provided by spokesperson Tim Fitzpatrick.

Senators are due to amend the bill and take a final vote later today.

The special session expires at midnight tonight, but Gov. Mike Dunleavy has already signed a proclamation calling another special session to begin Saturday.

Asked whether the new special session represented a contingency plan in an event the bill failed to pass, Dunleavy spokesperson Jeff Turner declined to say.

“We will see what happens,” Turner said.

This is a developing story. Check back for updates.

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Alaska

ICE: Alaska state attorney arrested by immigration officials, held in Tacoma detention center

Published

4 hours ago

July 16, 2026

Press Room

ICE: Alaska state attorney arrested by immigration officials, held in Tacoma detention center

ANCHORAGE, Alaska (KTUU) – U.S. Immigration and Customs Enforcement arrested Shucheng “Charlie” Yang, 32, a Chinese national and attorney with the Alaska Department of Law, on July 10 in Anchorage, according to an ICE spokesperson.

ICE said Yang violated the terms of his admission and is a “deportable alien.”

He is currently being held at the Northwest ICE Processing Center in Tacoma, Washington, pending immigration proceedings.

Yang pled no contest to a speeding ticket he was cited for on May 22. There are no other charges against him listed in the Alaska court system.

Yang is the most recent person in Alaska to be taken into ICE custody at the Tacoma processing center; a Mexican woman living in Soldotna was deported along with her three children in February.

His arrest also comes days after a Colombian man was shot and killed by a federal immigration officer earlier this week in Maine, fueling a new wave of protests against perceived ICE brutality.

State outlines hiring process

The Alaska Department of Administration responded to general questions about verifying employment eligibility for all full-time hires and said the state requires applicants to self-disclose their employment eligibility during the application process.

“The State of Alaska hires individuals who have the legal right to work in the United States,” Policy Advisor Kate Sheehan said. “This employment eligibility is confirmed through the federally mandated I-9 verification process.”

Yang is listed as Department of Law civil attorney on the State of Alaska employee directory.

Agencies decline to comment on Yang

Both the Alaska Department of Law and the Office of Gov. Mike Dunleavy declined to address Yang’s employment status or arrest.

“As a practice, the Department of Law does not provide comments on personnel issues,” Information Officer Sam Curtis said.

“We do not comment on personnel issues,” Deputy Press Secretary Grant Robinson said.

Alaska’s News Source is reaching out to Yang through multiple channels while he remains detained in Tacoma.

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Alaska

Alaska university gets funding for critical minerals center

Published

16 hours ago

July 15, 2026

Press Room

Alaska university gets funding for critical minerals center

ANCHORAGE, Alaska (KTUU) – The National Science Foundation has selected the University of Alaska Fairbanks to be the site of a new critical minerals research program, making it one of 12 new technology innovation centers across the nation that received federal funding, according to Yereth Rosen with the Alaska Beacon.

The new Critical Minerals Accelerator Engine in Alaska will receive $15 million in funding for two years and up to $160 million over 10 years, the university said on Tuesday.

The organization will be located at and led by UAF’s Geophysical Institute and will work with more than 40 partners, said Steve Masterman, the university faculty member who helped lead the application for the award. Partners include private companies, Native corporations, nonprofits, other universities and other entities, said Masterman, who formerly served as Alaska’s state geologist.

UAF already conducts scientific research into minerals considered critical to the nation’s economy through its Critical Minerals Collaborative. That program is more scientific and academic-focused, said Masterman, who is its deputy director.

In contrast, the Critical Minerals Accelerator Engine will be focused on putting research to use, determining ways to commercialize resources, addressing supply needs, workforce development and other issues important to the critical minerals industry.

Though the scientific research already conducted at UAF will be helpful, the accelerator idea is industry-focused, Masterman said.

“This is quite different because it’s an economic development project,” he said.

Alaska is rich in resources considered critical minerals. The state has 56 of the 60 minerals classified by the U.S. Geological Survey as critical to the nation’s economy, UAF said in its statement.

In addition to the Alaska award, the NSF on Tuesday announced its awards for other innovation engines in different parts of the nation. The sites have different primary purposes, such as disaster prevention and mitigation, robotics development and development of advanced information technologies.

The Alaska innovation engine will be led by Lee Ann Munk, a faculty member at the Geophysical Institute and a geosciences professor at UAF’s College of Natural Science and Mathematics. Munk is currently director of the Critical Minerals Collaborative at UAF.

“Our NSF Engine is built on the simple but ambitious idea that Alaska can lead the nation not only with the abundance of its critical mineral resources, but also in how we innovate, develop and deploy the technologies needed to produce them responsibly,” Munk said in a statement released by the university.

“By bringing together researchers, Alaska Native organizations, industry, workforce partners, state and federal agencies, national laboratories and communities, we are creating an engine that accelerates discovery into action,” she said.

Editor’s note: This story was republished with permission from the Alaska Beacon.

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