Legislature Passes Bill With Aid For State Refineries
The legislature has passed a bill containing aid for in state oil refineries.
The package, which includes state income tax credits and other provisions, was forwarded by Governor Sean Parnell as a means to ensure Alaska retains its refining industry as cheaper Lower 48 oil makes shipping fuel into the state an option.
HB287 also includes a provision that would allow state oil lease holders, who sell crude to an Alaska refiner, to use the agreed to contract price for calculating state royalty payments, a change aimed at making selling oil to Alaska refiners more attractive. The incentives in HB287 would be in effect for five years, and could provide up to $20 million annually to an individual in-state refiner.
In an announcement about the bill’s passage, Governor Parnell says healthy in state refineries support a strong military presence in Alaska and jobs. Critics of the bill characterize it as an industry bail out.