{"id":146,"date":"2026-05-19T08:34:57","date_gmt":"2026-05-19T08:34:57","guid":{"rendered":"https:\/\/movingtoalaskausa.com\/?p=146"},"modified":"2026-05-19T08:34:57","modified_gmt":"2026-05-19T08:34:57","slug":"pipeline-for-pension-deal-falls-apart-as-the-alaska-legislatures-regular-session-nears-end","status":"publish","type":"post","link":"https:\/\/movingtoalaskausa.com\/?p=146","title":{"rendered":"Pipeline-for-pension deal falls apart as the Alaska Legislature\u2019s regular session nears end"},"content":{"rendered":"
\n

A high-stakes quid pro quo deal fell apart in the Alaska Capitol on Monday as legislators failed to approve a tax break for the proposed trans-Alaska natural gas pipeline and Gov. Mike Dunleavy <\/span>vetoed a bill<\/span> that would have restored public pensions in the state.<\/span><\/p>\n

Read more Alaska Legislature considers bill mandating paid leave for many new parents, starting in 2030<\/a><\/p>\n

The failure leaves public employees with a 401(k)-like retirement system and legislators likely to head into a special session for further work on a gas pipeline bill.<\/span><\/p>\n

Rep. Chuck Kopp, R-Anchorage and the Legislature\u2019s lead negotiator on the planned deal, said on Monday night that \u201cthe pension was a good vehicle to help get people there and be more conciliatory towards this gasline legislation than they otherwise would have been. Now that the governor has vetoed the pension, I expect the conciliatory attitudes will suffer.\u201d<\/span><\/p>\n

Monday was the deadline for Dunleavy to enact or veto <\/span>House Bill 78<\/span>, which <\/span>would have created a new pension plan<\/span> for Alaska\u2019s public employees. Alaska has not offered a pension since 2006, when lawmakers closed the pension plan to new employees after an actuarial error led to significant underfunding.\u00a0<\/span><\/p>\n

Days ahead of Monday\u2019s veto deadline, Dunleavy <\/span>offered a deal to legislators<\/span> \u2014 pass a tax break for the proposed gas pipeline, and he would allow the pension bill to become law.<\/span><\/p>\n

\u201cWe said we wanted the gasline bill passed in an acceptable form to the governor\u2019s desk before the deadline on the (defined benefit) bill,\u201d said Jeff Turner, the governor\u2019s communications director. \u201cAt that point, he could allow a (defined benefit) bill to go into law.\u201d<\/span><\/p>\n

Dunleavy <\/span>told reporters<\/span> at a news conference earlier this month that the gas pipeline bill should be the Legislature\u2019s top priority.
\n<\/span><\/p>\n

In March, he introduced two identical bills, <\/span>one in the House<\/span> and <\/span>one in the Senate<\/span>, with his ideas. Legislators have since held dozens of hearings on those ideas.<\/span><\/p>\n

If enacted, the governor\u2019s proposal would largely exempt the gas pipeline and supporting infrastructure from state and local property taxes levied on petroleum property. In place of the property tax, the state would levy a tax on gas transported by the pipeline.<\/span><\/p>\n

The pipeline\u2019s lead developer, multinational firm Glenfarne, has said the change is necessary for it to successfully obtain financing needed to build the pipeline project.<\/span><\/p>\n

Alaska LNG, as it is known, would ship gas through an 800-mile pipeline, from the North Slope to Southcentral Alaska. As currently planned, the first phase of the project would deliver gas to Alaskans in 2029 and the second phase would allow foreign exports by 2031.<\/span><\/p>\n

While state legislators generally support the idea of a pipeline, they have balked at the governor\u2019s planned tax breaks, particularly because Glenfarne has thus far declined to provide new estimates for the cost of construction or its expected cost of gas when the pipeline is complete.<\/span><\/p>\n

That has made it impossible for them to determine whether the proposed tax break is too large, too small, or just right.\u00a0<\/span><\/p>\n

House and Senate each took the governor\u2019s ideas and amended them. Both increased the proposed gas tax \u2014 formally known as an \u201calternative volumetric tax\u201d \u2014 mandated construction of a spur line to Fairbanks and required Glenfarne provide early payments to communities affected by pipeline construction.<\/span><\/p>\n

Senators went further, proposing price controls on gas shipped through the pipeline to Alaskans, an end to a tax exemption that would benefit Glenfarne, and small increases to the state\u2019s oil taxes.<\/span><\/p>\n

With both bills far from completion, Kopp began negotiating with the governor\u2019s office on a possible compromise.<\/span><\/p>\n

Kopp has been supporting a pension revival for a decade, and sought a deal that would accomplish two personal goals that also are among the legislative majorities\u2019 top priorities.<\/span><\/p>\n

On Monday, after days of work, he introduced a compromise gas pipeline proposal as an amendment to <\/span>Senate Bill 180<\/span>. That bill was originally written as a one-sentence change to state law pertaining to liquefied natural gas import terminals.<\/span><\/p>\n

Read more Alaska Legislature votes to increase fee transparency for University of Alaska<\/a><\/p>\n

Kopp\u2019s amendment, 22 pages long, was adopted, and House lawmakers began debating, one after another, hours of amendments to Kopp\u2019s amendment.\u00a0<\/span><\/p>\n

In the back of the House chambers, advisers to the governor \u2014 who have been working closely with Glenfarne \u2014 provided feedback on whether each amendment was acceptable.\u00a0<\/span><\/p>\n

One amendment from Rep. Robyn Niayuq Frier, D-Utqiagvik, derailed that process. Adopted on a 21-19 vote by the House, it would allow the North Slope Borough to negotiate directly with Glenfarne on taxes.<\/span><\/p>\n

Frier represents the North Slope Borough, and because the project\u2019s large gas treatment plant would be located there, the borough would lose a disproportionate amount of tax revenue with a switch from property taxes to the alternative volumetric tax.<\/span><\/p>\n

\u201cThe amendment was completely necessary,\u201d Frier said afterward, explaining that the borough had been asking for it.<\/span><\/p>\n

The Kenai Peninsula Borough, planned site of the export terminal, accepted the alternative tax, and lawmakers from that region did not propose amendments similar to Frier\u2019s.<\/span><\/p>\n

Frier said North Slope officials talked with all of the stakeholders, with the governor\u2019s office and Glenfarne.<\/span><\/p>\n

\u201cWe always knew this was going to be an issue, and I don\u2019t understand why this is such a big deal. They could have been negotiating. They should have been negotiating,\u201d she said.\u00a0<\/span><\/p>\n

Frier said that rather than try to push through a major bill in a single day, she would like to see lawmakers focus on House Bill 381, the House\u2019s gasline bill, in a 30-day special session.<\/span><\/p>\n

\u201cWe need to do the proper vetting, we need the modeling, we need it to go through the Department of Revenue. \u2026 We need people to weigh in, not trying to shove this in at the last minute. This is not good process,\u201d she said.<\/span><\/p>\n

Lawmakers in favor of Kopp\u2019s compromise were unable to quickly reverse Frier\u2019s amendment, and the Senate adjourned shortly after 10 p.m., leaving no avenue for Kopp\u2019s amendment to pass through the Capitol on Monday.<\/span><\/p>\n

Kopp said afterward that he had negotiated a deal to sidestep Frier\u2019s amendment, but with the Senate adjourned until after the window to veto the pension bill, he said the governor was uninterested.\u00a0<\/span><\/p>\n

\u201cHe feels like the outcome has to be 100% controlled. \u2026 The House was in position to send over a good gasline bill. The governor simply did not care, because he had to have it in the bag. To me, that\u2019s disappointing, and to me that was very shortsighted,\u201d Kopp said.<\/span><\/p>\n

With the deal dead, the House adjourned for the day just after 10:30 p.m. The governor\u2019s veto message arrived in the House clerk\u2019s office shortly afterward, at 10:39 p.m.<\/span><\/p>\n

\u201cI share the Legislature\u2019s goal of strengthening recruitment and retention for Alaska\u2019s public workforce,\u201d the governor <\/span>said in his veto message<\/span>. \u201cHowever, House Bill 78 contains unresolved legal, tax, administrative, and fiscal issues that create uncertainty for the State, employers, employees, and the retirement systems themselves.\u201d<\/span><\/p>\n

Kopp, visibly frustrated, sat in his office after the House\u2019s adjournment.<\/span><\/p>\n

\u201cHe has no allies in the Senate that can help him on the gasline. I was his No. 1 ally in the entire Legislature,\u201d Kopp said, \u201cand he killed the pension bill that I carried. That was his thank you to me. So, I\u2019ll remember that.\u201d<\/span><\/p>\n

Read more Alaska lawmakers approve bills to strengthen oversight for youth in psychiatric facilities<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Alaska Gov. Mike Dunleavy vetoed a bill that would have restored public pensions after the failure of a deal negotiated with House leaders.<\/p>\n","protected":false},"author":1,"featured_media":145,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-146","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nPipeline-for-pension deal falls apart as the Alaska Legislature\u2019s regular session nears end - Moving to Alaska<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/movingtoalaskausa.com\/?p=146\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pipeline-for-pension deal falls apart as the Alaska Legislature\u2019s regular session nears end - Moving to Alaska\" \/>\n<meta property=\"og:description\" content=\"Alaska Gov. 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