House Passes LNG Storage Facility Incentive Bill (HB 289)
HB 289 applies to above-ground facilities able to hold 25,000 gallons
Tuesday, April 3, 2012, Juneau, Alaska – The Alaska House today passed a bill giving the private sector a new incentive to develop liquefied natural gas storage facilities to help lower the cost of energy.
Rep. Steve Thompson’s House Bill 289 incents the delivery of lower cost natural gas to Alaskans by extending tax credits for LNG storage facilities constructed above-ground with 25,000 gallons or more of storage capacity. The amount of the proposed credit is limited to 50-percent of construction costs, capped at $15 million.
“The cost of energy is crippling a good portion of our state’s residents. My community, alone spends more than $660 million per year on space heat and is unable to expand its business district due to a lack of affordable natural gas,” Thompson, R-Fairbanks, said. “I know all of my disposable cash is tied up in energy bills, which will be over $8,000 for my home this winter. An infusion of gas to Fairbanks would reduce costs to end users and restore our city’s ability to grow its economic base.”
The bill would also allow eligible facilities located on state land to request an exemption from rental payments, for up to ten years after they commence operations. It also carries consumer safeguards, where the Regulatory Commission of Alaska would have oversight of facilities, and that any incentives be passed down to consumers.
HB 289 now moves to the Alaska Senate for consideration.
Posted: April 3, 2012