Governor Parnell Strengthens In-State Refineries
July 29, 2014, Kenai, Alaska – Governor Sean Parnell today signed legislation he sponsored to provide incentives for more healthy Alaska refineries.
“We support Alaska's oil being refined for Alaskans' use and the jobs that come with it,” Governor Parnell said. “By providing a more favorable tax climate for in-state refining, we can have a more secure future in refining. A healthy refining industry will continue to provide jobs for Alaskans, heat our homes, and power our military.”
Governor Parnell’s legislation, House Bill 287, allows an in-state refinery tax credit against state corporate income tax liability for qualified infrastructure expenditures and allows a credit based on volume refined. It also allows a lessee selling oil to an in-state refinery to use its contract price to determine the royalty value owed to the state. The governor’s bill also extends the state’s contract with Tesoro for the continued sale of royalty oil. Tesoro is the owner and operator of the Kenai refinery.
Alaska’s refineries employ hundreds of Alaskans, producing gasoline, diesel, commercial and military jet fuel, home heating fuels and kerosene. The customer base for Alaska refineries includes Alaska residents, the Department of Defense, the Alaska Railroad, commercial airlines and Alyeska Pipeline Service Company.
Governor Parnell also signed a resolution, HCR 22, that urges the state to seek resolution of Trans Alaska Pipeline System (TAPS) quality bank disputes before January 1, 2015 in a manner that will provide long-term quality bank stability and reduce the cost of quality bank adjustments paid by in-state refiners of Alaska North Slope crude oil.
While in Kenai, Governor Parnell signed several other bills. Senate Bill 77, sponsored by Senator Pete Micciche, allows the Board of Game to establish youth hunts after the school year starts in the fall. The bill also grants grandparents the ability to take their grandchildren hunting in these special youth hunts.
House Bill 75 allows greater participation in the Pick.Click.Give program by small non-profits that meet all of the eligibility requirements for the program, but have not participated due to the cost prohibitive audit requirement. Further, the bill requires each campus of University of Alaska to pay the $250 application fee to participate in the program, just as all other eligible organizations do.
Photos from the bill signing are available at: http://gov.alaska.gov/parnell/multimedia/photo-album.html?album=791
Posted: July 30, 2014