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Home » Press » NEWS: Sen. Wielechowski introduces legislation to help spur Alaska Natural Gas Pipeline

NEWS: Sen. Wielechowski introduces legislation to help spur Alaska Natural Gas Pipeline

Alaska State Legislature

SENATOR BILL WIELECHOWSKI

State Capitol Bldg. Rm 419 • (907) 465-2435 • Fax 465-6615

Sen.Bill.Wielechowski@akleg.gov alaskasenatedems.com/wielechowski

For Immediate Release: January 22, 2013

Sen. Wielechowski introduces legislation to help spur Alaska Natural Gas Pipeline

 

JUNEAU – Senator Bill Wielechowski (D- Anchorage) introduced SB 33 today to provide builders of a natural gas pipeline relief from state property taxes during construction of the line.

“This bill will help Alaskans realize the dream of getting our vast North Slope natural gas reserves to market,” Senator Wielechowski said. “It’s a simple step we can take to move a gas line project forward and provide energy cost relief
to Alaskans.”

SB 33 will help pipeline owners during a critical period – construction – when they are spending vast sums and generating no revenue.   It could cut property taxes by millions, boosting project economics during the early years.

The bill would also benefit those who ship gas down the line by reducing the cost of shipping and therefore increasing the value of their gas.  That, in turn, would help attract buyers of Alaska gas, which is critical to getting a gas line project off-the-ground.  The state would also benefit over the long-term as it would receive greater production tax revenue as a result of higher profits for shippers.

“Whether we go with a small bullet line or a big export line to Asia, this bill makes good business sense for the state,” Wielechowski added. “A small sacrifice up-front could yield big benefits down the road.”

Wielechowski noted that construction of a pipeline would create:

o up to 10,000 high-paying jobs for Alaskans during peak construction, with in-state spending on wages, goods and services of up to $6 billion

 

o  a long-lasting supply of affordable natural gas for Alaskan families, businesses and utilities

 

o incentive for additional oil and gas development on Alaska’s North Slope

 

He added that SB 33 would not affect taxes collected by local governments, only the state.

 

For more information, please call Michelle Sydeman at (907) 465-6881 or email at michelle.sydeman@akleg.gov

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