Energy

Alaska's Senate Joint Resolution 11 urges Congress to waive the Jones Act, which requires U.S.-built vessels for domestic cargo transport, to enable shipping domestic liquefied natural gas (LNG) between Alaska ports. The resolution addresses an impending natural gas shortage in Southcentral Alaska (home to most residents and military bases) by seeking to move LNG from North Slope reserves to population centers. Currently, the Jones Act prevents using non-compliant tankers for this transport, despite Alaska having significant gas reserves and facing supply shortfalls starting in 2027. The resolution requests this waiver as a near-term solution, citing precedents where similar waivers were granted after natural disasters.

SB 112 creates two tax credit systems for Alaska oil producers under the state's oil and gas production tax. Producers can claim a $5 credit per barrel for oil that receives a gross value reduction at production (Section 1), and tiered credits ranging from $1 to $8 per barrel based on monthly oil prices for oil produced north of 68°N latitude (Section 2). Credits cannot reduce tax liability below minimum levels or exceed qualified capital expenditures for each lease, and unused credits cannot be carried forward (Section 3). The bill applies to oil produced on or after January 1, 2025, directly affecting oil producers operating in Alaska, particularly those in northern regions.