JUNEAU, Alaska (KTUU) – A month of scrutiny on the proposed liquefied natural gas pipeline comes to an end Friday with the last day of the special session, but lawmakers still have significant work ahead of them.
Gov. Mike Dunleavy and the major developer of the gas line, Glenfarne, say large tax exemptions are needed to make the project possible. Lawmakers have been concerned the exemptions go too far.
On top of the gas line, the governor vetoed nine bills Thursday, an attempt to override the governor’s vetoes is also expected.
The governor has called the legislature into a second special session.
12:00 a.m. – Going into Saturday: Lawmakers say politics held up the gas line, but will the politicking stop?
“The project is fiscally challenged,” Gov. Mike Dunleavy said in a news conference about the proposed liquefied natural gas line. His comments came as the Senate passed its own edited version of his gas line bill.
“Everyone admits that. But that’s not what’s standing in the way.
“What’s standing in the way is politics.
“Pure, unmitigated, simple politics.”
Weeks before, the House passed its own version — one Glenfarne said could make the pipe dream a reality. Dunleavy and House Majority Leader Chuck Kopp, R-Anchorage, say the new Senate plan killed the project’s viability, citing a corporate income tax provision added earlier in the day.
That provision, one that was brought up multiple times in different forms during the regular session, addressed part of one of the biggest issues for bipartisan Majority lawmakers: making sure the developer pays its fair share.
“Boil it all down, the governor’s choosing outside billionaires over getting a gas line,” Sen. Bill Wielechowski, D-Anchorage and proponent of the changes made to the bill, told Alaska’s News Source late Friday night. “It’s more important to him to appease outside billionaires than it is to get a gas line.”
Alaska’s News Source asked what he attributed to the bill’s hold up and Dunleavy doubled down: politics was “a part” of why a plan didn’t pass on the last day of the special session.
But Dunleavy isn’t a stranger to politics.
On Thursday, the day before the special session’s last day, Dunleavy vetoed nine of 24 pieces of legislation; only two were overridden.
That same night, Dunleavy warned lawmakers that if a bill wasn’t passed by midnight, he would call lawmakers back into another special session; before the finance committee (which held the gas line bill Friday morning) met, he already called another 30-day special session. Lawmakers are unable to campaign while a session is ongoing, and the Aug. 18 primary is less than two months away.
During the dying days of the regular session, Dunleavy forced lawmakers into a quid-pro-quo: pass sweeping property tax exemptions or the long-sought after pensions bill becomes vetoed; that bill failed to survive an override attempt.
“That’s the way he operates, apparently,” Wielchowski said.
“The governor was willing to trade the pension bill for the gas line, and we said no … It was politics. It was just politics and we just said no.”
Alaska’s News Source asked if the governor was changing how he approached legislating with lawmakers, but he didn’t directly answer and instead pointed to the House which was able to “put politics aside.”
“Look at the bills that were passed,” Dunleavy said. “You will see names on those bills of people that are probably accusing me of politics who are doing their own politics.
“There’s always an excuse, I guess, for some people to not perform on behalf of the people of Alaska.”
Senate Minority Leader Mike Cronk, R-Tok/Northway, also said the universal truth behind the bills stall was… politics.
“I believe there’s people that don’t want this gas line,” he said, also late Friday night.
“It’s such a big picture, and we don’t have a vision. That’s why I truly believe people have been in power so long, and they’re not willing to see a bigger picture.”
Cronk hasn’t given up, though.
“I do think we can get enough of the politics out of the way to sit down and hammer out a bill.”
Neither has Dunleavy.
“If not, then you throw in the towel,” he said, answering why he thought calling another session would yield sufficient legislation.
A second special session on the gas line begins tomorrow at 10:00 a.m.
Politics or not.
9:50 p.m. – House cancels floor session, effectively ending special session
The special session — the first one on the current gas line proposal, anywho — has effectively ended.
After the Senate passed an edited version of the gas line bill providing property tax exemptions but with provisions the house majority leader, the governor and Glenfarne all say kills the bill’s viability, the House Floor Session was cancelled.
“In contrast to the workable tax reform legislative compromise that passed the House with a bipartisan, 87% vote, many of the amendments passed in the Senate bill tonight, if put into law, would have resulted in an unworkable, unfinanceable, and uncompetitive project, unable to deliver reliable and affordable energy to Alaskans,” Glenfarne said in a statement.
The special session will end officially at midnight, but another one begins at 10:00 a.m. Saturday. That session will focus on the gas line bill, though Dunleavy said will remove amendments he says jeopardizes the gas line’s viability.
When Alaska’s News Source asked if this would be the last special session, Dunleavy said he hoped so.
9:00 p.m. – Senate passes gas line bill, heads back to House
The Senate has passed an edited version of the gas line bill the House passed weeks ago, adding eight amendments following the adoption of the Senate Finance version of the bill.
The passage came as a press conference began on the floor just above the chamber, with Gov. Mike Dunleavy saying he was unoptimistic about the bill’s future.
The vote was 12-8. The legislature’s website does not say how lawmakers voted as of 9:30 p.m. The Bipartisan Senate Majority is composed of 14 members.
Sen. Bill Wielechowski, D-Anchorage, said on social media the “key change” was including the corporate income tax for the developer.
“The question is – will Gov. Dunleavy and the House choose a gasline for Alaskans or outside billionaires,” he continued.
As the senate passed the bill, Dunleavy and House Majority Leader Chuck Kopp, R-Anchorage, were criticizing the new senate version of the bill they say is not able to create the project.
On the particular provision Wielechowski lauded, Dunleavy says there is little time to scrutinize — or know — just what the provision does.
“It wasn’t a perfect bill that came out [of the House], but it was a bill that was going to work,” Dunleavy told reporters. “This bill, right now, is not going to work.”
The bill now heads to the House for a concurrence — or agreement — vote. If the House doesn’t agree, it goes to a conference committee.
A conference committee resolves differences between the two chambers and delivers a compromise report, according to legislative documents. Three members from each chamber are appointed by the Senate President or House Speaker respectively to the committee.
7:25 p.m. – Governor announces press conference
Gov. Mike Dunleavy will hold a press conference on “the status of … the LNG volumetric tax legislation” at 8 p.m., his office announced.
The bill still sits in the Senate after hours of debate. 18 amendments have been offered, eight have passed.
If the bill clears the Senate tonight, it still must return to the House for a concurrence vote.
4:40 p.m. – A different oil-and-gas income tax amendment passes
The second amendment presented to the gas line bill, largely similar to the first which failed, was adopted. The amendment adds a new state income tax on certain oil-and-gas pass-through entities to the gas line bill.
The vote was 11-9.
4:25 p.m. – Oil-and-gas income tax amendment fails
The Senate failed to add a new state income tax on certain oil-and-gas pass-through entities to the gas line bill. Similar taxes have been proposed during the regular session but failed to reach passage.
The amendment to the gas line bill was presented by Sen. Lyman Hoffman, D-Bethel. The vote was 9-11; it needed a simple majority for passage.
This was the first amendment presented in the amendment process. The second amendment presented is largely similar to the first, which failed.
3:24 p.m. – Senate begins amendment process on gas line bill
The Senate has begun taking up amendments on the gas line bill, potentially changing a bill Glenfarne says can create the gas line. An amendment deadline was set for 3:45 p.m.
Senate Majority lawmakers have been critical of the bill’s idea before them, saying the developers may not be paying its fair share under the plan.
The six-member Republican Senate Minority are united behind the bill, the Alaska Beacon reports.
Convening about an hour after attempting to override five vetoes from the governor, the chamber approved changes on the gas line bill made from the Senate Finance committee. That means the bill has been changed and will go back to the House for a concurrence vote if the bill passes out of the Senate.
The special session ends tonight at midnight.
2:10 p.m. – Joint Session adjourns, two of five vetoes overridden
The Joint Session dedicated to overriding five of the nine vetoes from the governor resulted in two being overridden.
Those two bills are HB 195, expanding pharmacist authority, and HB 314, a bill adding numerous provisions for architects, engineers and land surveyors.
Now, lawmakers return to vetting the LNG property tax bill.
That bill currently sits on the senate floor. The Senate Finance committee introduced their own version of the bill, which still needs to be accepted by the body.
If that version is accepted — or if any other changes are made before it’s potential passage — it goes back to the House for a concurrence vote.
2:04 p.m. – Legislature overrides veto on HB 195
The final veto override attempt was successful. The bill expands the authority of pharmacists’ authority to prescribe opioid overdose drugs, among other items.
The vote was 43-17.
1:55 p.m. – Legislature fails to override veto on SB 21
The fourth of five veto overrides attempted failed. The bill would have created a Work and Save Program allowing Alaskans to save for retirement. It would also have allowed Permanent Fund Dividend recipients to put their dividends into the program.
The vote was 39-21.
1:50 p.m. – Legislature overrides veto on HB 314
The third of five veto overrides attempted was successful. The bill has numerous provisions for architects, engineers and land surveyors.
The vote was 45-15. Sen. Cathy Giessel, R-Anchorage, said it only needed 40 votes despite having a fee attached to it.
Editor’s Note: HB 314’s description has been simplified and linked to the sponsor statement for the bill.
1:42 p.m. – Veto on SB 41 fails to override
The second of five veto overrides attempts has failed. The bill was on mental health education.
The vote was 38-22. It needed 40 votes.
1:38 p.m. – Veto on HB 52 fails to override
The first of five veto override attempts has failed. The bill focused on minors’ rights undergoing evaluation or inpatient treatment at psychiatric hospitals.
The vote was 36-24.
1:13 p.m. – Veto override attempts begin
The legislature has convened for a joint session to try and override vetoes from the governor.
Of the 24 bills Dunleavy was required to take action on Thursday night, nine were vetoed.
Five bills will be considered for a veto override, Senate President Gary Stevens, R-Kodiak, told the body. Those bills are HB 52, SB 41, HB 314, SB 21, HB 195.
Stevens also warned the body that they are working under a strict timeline and will enforce time limits to discussion if debate goes long.
To override a veto, lawmakers need to build a coalition of 40 votes to override a regular bill or 45 for an appropriations bill override — a bill which spends or raises revenue.
There are 20 seats in the Senate and 40 in the House. Both chambers combined, the bipartisan majority caucus has 35 members, and the Republican minority has 25, meaning bipartisan compromise is required for an override.
Most of the vetoed bills passed with enough votes during the session to survive an override, but if votes change, their fates can be altered.
Two bills — SB 24, a tobacco excise tax and provisions against minor use of tobacco, and HB 280, an internet corporate tax bill — did not receive enough votes when passed through both chambers to survive a veto override, if votes remain the same.
“Alaska needs a comprehensive fiscal plan, not one-off tax measures,” Dunleavy wrote in his veto statement, provided to Alaska’s News Source.
Dunleavy vetoed a similar version of the internet corporate tax bill when the regular session began in January. In an attempt to override that previous veto, the legislature failed in a 35-25 vote.
12:50 p.m. – Veto override session scheduled
The legislature will meet in a joint session at 1:00 p.m. to attempt to override vetoes from the governor.
Gavel Alaska was the first to report the scheduled session.
Lawmakers have until the end of the day to override the veto attempts.
The override session will take time away from continuing discussion on the LNG pipeline bill, something Sen. Cathy Giessel, R-Anchorage, noted in a newsletter sent last night.
Whether they pass a plan on the gas line today or not, Dunleavy has already called a special session to begin Saturday on HB 381, the gas line bill currently in the Senate.
The Senate recessed shortly after convening.
12:20 p.m. – Senate convenes
The Senate has convened more than an hour after the committee-amended LNG property tax bill left the Senate Finance Committee.
Lawmakers will have the ability to amend the bill during the floor session. Alaska’s 14-member Bipartisan Senate Majority have had steep concerns about the bill, saying the developers may not be paying its fair share.
“Whether it’s paying for the exponentially more road wear & tear or the increased need for public safety, a 90% tax break for very wealthy companies leaves Alaskans on the hook… and with much less revenue to pay the bills,” Sen. Löki Tobin, D-Anchorage, said on social media.
The six-member Republican Senate Minority are united behind the bill, the Alaska Beacon reports.
Alaska’s revenue department says the state would receive $23.4 billion by 2062 if the House-passed plan passed, about $6.3 billion less than it would receive under current laws, the Alaska Beacon reports.
It’s not yet clear when, or if, a joint session to override the governor’s nine vetoes will take place. Lawmakers have indicated they plan to hold that session.
The House still has yet to convene.
11:00 a.m. – Committee moves bill to Senate floor
The Senate Finance Committee moved the gas line bill to the Senate floor about 10:40 a.m.
There were no amendments to the committee’s version of the bill, which the chamber now has to adopt. Sen. Lyman Hoffman, D-Bethel, told the committee that delays needed to be mitigated as much as possible.
“We’ve had extensive dialogue with the administration to date and at some point, we need to proceed down the path of getting a bill across the floor,” Hoffman, told the committee.
“The consequences of delays that are unforeseen at this point to get this across the finish line are monumental.”
Now headed back to the floor, the bill enters its last few hurdles in the Senate. Senators will have the ability to amend the bill.
If the Senate adopts any changes, including the one the committee made, it will have to go back to the House floor for a concurrence — or agreement — vote.
Both chambers have been delayed to a call of the chair. Lawmakers have continued to signal that they plan to hold a Joint Session to override the governor’s vetoes.
10:10 a.m. – Dunleavy calls a second special session
Before the finance committee convened, Gov. Mike Dunleavy signed a proclamation making it official: even though it’s the last day of this special session, another starts tomorrow.
Gov. Mike Dunleavy spokesperson Jeff Turner sent a photo to Alaska’s News Source of the executive proclamation calling the legislature into a second special session. The proclamation was signed at 9:37 a.m.
The focus of the session will be on HB 381, the LNG bill currently in the Senate and being vetted in the finance committee.
The proclamation is also published on the legislature’s website.
The session will begin Saturday at 10:00a.m., the proclamation reads.
Dunleavy warned lawmakers Thursday he would call them back into session if a decision was not reached.
“If the Senate does run out of time by Friday midnight, I will issue a call for a second special session to give them more time to quickly complete the work,” Dunleavy wrote yesterday. “My hope is we can get the work done and a bill passed that works to help move this large gas line project forward before midnight Friday. If not, we will begin the process again Saturday with another special session.”
9:50 a.m. – Finance committee begins
The Senate Finance Committee has convened after a nearly hour-long delay.
The committee has introduced a new version of the bill which Pete Ecklund, staff member for Senate Finance Co-Chair Lyman Hoffman, D-Bethel, was designed to reduce “redundancies.”
If the committee adds new details to the bill through amendments, and those details are approved by the Senate, the bill will be sent back to the House for a concurrence — or approval — vote.
The legislature’s website says the Senate will convene about 9:45 a.m., which has not happened, and the House is scheduled to convene at 10:30 a.m.
Senate Majority Leader Cathy Giessel, R-Anchorage, said in a newsletter that the legislature will take up a chance at a veto override. Overrides are done in a joint session of both bodies.
To override regular bills, lawmakers need 40 votes. To override appropriations bills, or bills that spend or raise revenue, 45 votes are required.
8:30 a.m. – Day soon to begin
Glenfarne, the major developer of the gas line, says large tax exemptions are needed to make the project possible. The company announced earlier in the session the project would cost about $44.5–54.5 billion.
Last week, the 40-member House voted 34-5 to advance the gas line bill over to Senate
The 14-member Senate Bipartisan Majority has been largely mixed on the bill, concerned the exemptions go too far and the state wouldn’t be receiving its fair share.
“AKLNG tax cuts may result in a financially viable pipeline but may also transfer the burden to local property taxpayers,” Sen. Scott Kawasaki, D-Fairbanks, said on Facebook after the bill passed the House. “I will take guardedly optimistic look at the bill.”
The six-member Senate Republican Minority are united behind that bill, pending minor technical fixes, according to the Alaska Beacon.
“A majority of the state depends on natural gas,” Sen. Robert Yundt, R-Wasilla, told the Alaska Beacon. “We’re either going to be using our own or importing, and when all is said and done, I think we’re going to be using our own.”
The Senate Finance Committee, where the bill currently resides, is set to convene at 9 a.m.
If the Senate makes any changes to the bill, it goes back to the House for a concurrence vote. If the House doesn’t agree, it goes to a conference committee.
A conference committee resolves differences between the two chambers and delivers a compromise report, according to legislative documents. Three members from each chamber are appointed by the Senate President or House Speaker respectively to the committee.
With less than 16 hours until midnight, time is of the essence and not in lawmakers’ favor.
Senate Bipartisan Majority Leader Cathy Giessel, R-Anchorage, criticized the governor for vetoing nine bills Thursday and said they would attempt to override the bills, which “takes time away from any action on a Gas Pipeline bill.”
This is a live story. Check back for updates.
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