Gov. Mike Dunleavy said he will summon Alaska lawmakers back to Juneau on July 27 for a third special legislative session to advance a package of bills aimed at moving a private natural gas pipeline project forward.
Stalled compromise prompts new session
The announcement came hours after a special session ended without passage of the pipeline measure. Lawmakers had debated a Senate compromise that included a change to the state's corporate income tax so some privately held oil and gas companies would be subject to it — a provision supporters said was necessary to win enough votes in the Senate and to improve the project's financing prospects.
Dunleavy objected to that broader tax change and warned he would veto the Senate version, arguing the measure should focus solely on pipeline property tax provisions rather than alter oil tax policy. He also cited concerns about discouraging future investment, saying the corporate tax change had not been adequately vetted.
“The people of Alaska need gas now,”
The governor emphasized the urgency tied to declining Cook Inlet gas supplies, saying the state has new information and more work has been done since earlier debates. In his announcement, Dunleavy said he plans to refile the pipeline provisions without the corporate income tax adjustment when the session reconvenes.
What lawmakers must do in July
With the governor signaling he will remove the controversial tax language, the Legislature faces two central tasks: craft a version of the bill that can secure votes in both chambers and preserve the provisions intended to make the pipeline bankable for the private developer.
- Governor calls third special session starting July 27
- Original Senate compromise included corporate income tax changes
- Dunleavy plans to reintroduce pipeline provisions without broader tax change
| Item | Current status |
|---|---|
| Pipeline property tax provisions | To be reintroduced |
| Corporate income tax expansion | Opposed by governor; removed from next filing |
| Special session date | July 27 |
Lawmakers will need to build enough support for a revised bill that both attracts financing for the project and satisfies fiscal and policy concerns raised by members and the governor. The dispute underscores competing priorities: securing energy infrastructure and private investment while avoiding tax changes that could unsettle other industries or future investors.
The outcome will affect Alaska's energy outlook, potential tax revenues, and efforts to address what officials describe as dwindling Cook Inlet gas supplies. The third special session sets a tight timeline for legislators to negotiate language that can clear both chambers and gain executive approval.
