Alaska Senate President Gary Stevens said Thursday that the Senate will soon hold a hearing on its own oil-tax reform bill, essentially declaring dead House Bill 110, legislation passed last year by the state House and fervently backed by Gov. Sean Parnell.
Parnell's bill "will not be the vehicle" for oil-tax legislation this session, Stevens, R-Kodiak, said, according to a KTUU-Channel 2 article.
Opponents of HB 110 -- including many in the Senate Majority Bipartisan Working Group, which governs that chamber -- have called it a giveaway to the oil companies. Some estimates indicate the bill would have cost Alaska up to $2 billion a year, while guaranteeing no additional investment in return.
Parnell has countered that the bill would spark additional oil patch investment because it would help companies overcome the high costs they associate with operating on Alaska's North Slope.
Stevens expects a Senate oil tax bill will be heard by the Resources Committee in about two weeks, KTUU reports, adding that he wants the bill to the House with at least a month left in the regular session. That means it would need to arrive by mid-March.
The Associated Press reports that Sen. Joe Paskvan, a Democrat who chairs the Senate Resources, would not say what the draft bill might contain. It's currently being reviewed by lawyers.
Issues of concern are the "progressive surcharge now triggered when a company's net profits hit $30 a barrel," as well as tax credits and heavy oil, the AP article noted.
It seems that Parnell was none too pleased to hear that Stevens had killed the bill. Here's reaction from Parnell spokeswoman Sharon Leighow, as reported by KTUU:
Contact Alex DeMarban at alex(at)alaskadispatch.com