JUNEAU, AK — The Alaska House Republican Caucus is calling for urgent focus on the true goal of House Bill 381: securing immediate, reliable, and affordable energy for the Alaska Railbelt.
The Railbelt—stretching from the Kenai Peninsula through Anchorage and the Mat-Su Valley up to Fairbanks—is home to more than 70% of Alaska’s population.
Local utilities have repeatedly warned that the region faces a critical natural gas shortage within the next few years. House Bill 381, which creates an alternative volumetric tax structure to help launch the Alaska LNG project, was designed to solve this crisis.
On June 12, the House passed a robust, workable version of HB 381 with a strong bipartisan 34-5 vote. The House-passed version secures the project’s viability and includes a vital provision capping gas prices specifically to protect Railbelt consumers.
Recent changes in the Senate have stalled progress, threatening to derail the project in favor of heavy government taxes.
“We cannot lose sight of why we are here,” said Rep. Justin Ruffridge, R-Soldotna, a member of the HB 381 Conference Committee. “This isn’t about state government squeezing every last penny out of a pipeline that hasn’t even been built yet.”
The House Republican plan replaces complex, unpredictable local property taxes with a stable alternative volumetric tax. This predictability is exactly what investors need to finance the massive 807-mile pipeline. Phase one of the project is specifically structured to deliver North Slope gas directly to Southcentral Alaska by 2032, plus a spur line to Fairbanks, to resolve the Railbelt supply gap.
“For decades, we have talked about bringing North Slope gas to Alaskan homes,” said Minority Leader Rep. DeLena Johnson, R-Palmer. “We have the resources right under our feet. House Republicans worked tirelessly to craft a predictable tax framework that actually gets this pipeline built so we can lower energy costs for our families and protect our local economies.”
Rep. Will Stapp, R-Fairbanks, added: “If we don’t get this right, the project faces delays, investors will walk, and Alaskans will pay the price with higher utility bills. The people of Fairbanks have been living the reality of high energy costs that have been suffocating our community for years. We cannot afford to keep saying no to this project. We urge the House and Senate Majorities to prioritize the energy needs of all Alaskans over government take.”
House Republicans remain fully committed to negotiating a final bill that protects municipal interests, utilizes Alaska’s highly skilled workforce, and delivers the long-term energy security the Railbelt desperately needs.
Media Contact: Amanda Bohman, 907-378-6809