Energy Updates from FCAC - March 2026
Cheers to the best time of the year in Alaska! Lots of sunshine (with more every day - even if the temps don’t quite agree), lots of snow, tons of fun community events, and chances to get involved (with the GVEA election and our State legislature). We hope you get to enjoy every bit of it and hope this energy newsletter empowers, educated, and maybe even entertains you.
GVEA elections this spring!
GVEA member-owners will soon have an important opportunity to shape the future of our cooperative through this spring’s board elections! Board members make decisions that directly affect rates, energy projects, grants, and long-term planning so participation from members is vital!
This year, seats in districts 1, 2, and 3 are up for election. Each district elects one representative to the board, meaning your vote helps determine who speaks for your community’s priorities, whether that’s affordability, reliability, diversification, or GVEA’s many support programs funded through its grants.
If you’re unsure which district you belong to, you can check your GVEA account information online or on your paper bill, or call GVEA member services. District maps are also available on the GVEA website although they don’t contain specific addresses. Taking a few minutes to verify your district ensures your vote counts where it matters most!
This election is especially important because of its potential impact on the Board’s leadership. If elected, a new director could move into the role of Board chair. This director has been outspoken about wanting to scale back, and let go of altogether, GVEA grant programs. Many of these are initiatives that many members rely on for energy efficiency upgrades, community projects, and cost-saving improvements. The direction of these programs will depend heavily on the board’s composition.
Cooperative governance only works when members participate! Voting in Board elections is one of the most direct ways to influence how GVEA invests member dollars, balances rates, and supports communities across our service area.
When elections open on April 13th, please take the time to confirm your district, review candidates, and cast your vote. A small action now helps shape our energy future of Fairbanks and the Interior
Get involved: https://www.fbxclimateaction.org/renewable-energy-working-group
Legislative updates
This legislative session, Alaska has some pretty exciting bills in the mix. From a bill that would create an emergency climate change response fund (HB 247) to the new balcony solar bill (HB 369) there are some worth paying close attention to!
HB 369 includes intent for the state to "achieve a 15 percent increase in energy efficiency on a per capita basis between 2026 and 2036" as well as the state receiving "40 percent of its electric generation from diversified energy sources by the end of 2036."
HB 369 would put regulations in place for residents to install small-scale, affordable solar projects at their homes that would offset electric costs.
HB 247 would put a $0.20 surcharge on each barrel of oil produced in the state, paid by the oil producer to go towards the funding of the climate change response fund.
SB 227 would, among other things, require all oil and gas corporations that make over $1 million in profit to pay corporate income taxes
SB 275 is a bill that was just introduced, that we’re hoping would increase transparency around AGDC, but it’s too soon to know how it will play out. Its first hearing is today, so keep an eye out for more.
Here is a link with our state's representatives by district along with their contact info if you would like to reach out on these issues.
In More Depth: Changes to Oil and Gas Tax Law Introduced
The governor’s tax bill (SB 227) was introduced in January, and has since been amended considerably. Instead of disproportionately taxing lower income Alaskans with a regressive sales tax (as originally proposed), the bill now contains legislation that fairly taxes oil and gas companies. The improved version of SB 227 now incorporates active legislation that was introduced last year, such as closing the S-corp loophole (SB 92) and reducing the maximum per-barrel oil tax credit to $5 (SB 112). These are much welcome changes that together would increase the state’s revenue by roughly a half of a billion dollars every year by simply requiring oil and gas producers to pay their fair share for profiting off of Alaskan’s resources. These changes are supported by a recent study that found that taxing oil and gas companies is the least painful way to address Alaska’s fiscal crisis.
In addition to incorporating SB 92 and SB 112, the revised SB 227 would increase the oil tax floor from 4% to 6% and eliminate the ability for companies to receive credits that enable them to go below this rate. If passed, oil companies would be taxed based on the value of the oil extracted from the state instead of the profits the company gained, which is in line with legislation from many oil producing states (e.g. Texas and North Dakota). While oil companies will claim that any increase in their taxes will decrease their ability to work in Alaska and they might just have to leave the state, we know that isn’t true. Currently, Alaska is the most profitable oil jurisdiction in the world and that is largely due to the fact that Alaska gives major tax breaks to oil companies. We need to stop subsidizing the gangbuster profits of oil companies at the expense of fundamental public services (e.g. road maintenance, education funding, a functional marine highway system). The changes introduced in SB 227 are common-sense and a realistic breath of fresh air in a stagnant conversation about fixing the broken state budget.
Get involved: https://www.fbxclimateaction.org/king
In more depth: AK LNG pipeline project updates
There has been quite a bit of discussion in the Legislature regarding the proposed AK LNG pipeline, with newly introduced legislation (SB 275) moving quickly as of this week.
The Resource Committees of the Senate and House of Representatives have been holding hearings to get more information on the project, but details still remain elusive. Most recently the chair of the Senate Resources Committee, Cathy Giessel, requested to see the contract that details how decisions are made in the company developing the process, 8 Star Alaska. This gets a little weedy, but it’s worth it so bear with us.
The State gave control of the project to an out-of-state company: 8- Star Alaska, a private company originally set up and run by the State of Alaska via the Alaska Gas Development Corporation (AGDC) in 2018 to promote development of the AK LNG pipeline. After investing over $1 billion of State money in the project, AGDC gave 75% ownership of 8 Star Alaska to a private out-of-state company called Glenfarne in 2025. Glenfarne is now leading project development in a joint venture with AGDC and the State has only one vote in 8 Star Alaska’s four member board of directors. This means Alaska has little say in how project decisions are made. In addition to being minority shareholders, State lawmakers are also coming to realize that this relationship with Glenfarne likely means that Alaska gave $750 million (75%) dollars of assets to an out-of-state company. In a recent hearing, the State requested details about the agreement between AGDC and Glenfarne from the president of AGDC. He said “We can take that back to our partner” implying Glenfarne is in control, not the State.
The out-of-state company is keeping all cost estimates and project details a secret: Despite asking the Legislature for property tax exemptions and unconstitutional production tax freezes, Glenfarne “hasn’t provided the Legislature with any fiscal information that would help lawmakers understand more about the project” according to a recent Anchorage Daily News article.
Republican Senator Cathy Giessel says of the secrecy around the project and Nick Begich’s attempts to push it through: “This price quote of $44 Billion is massively LOW! If he’s referring to the pipeline only, imagine what the price of the gas would be delivered to your home! This is out-of-touch-with-reality by a DC politician. The Alaska Legislature is NOT a roadblock to this project. We are asking the hard questions to ensure the people of Alaska aren't left with a failed project that costs citizens! The gas from this pipeline has to be affordable, lower the cost of heat/light for ALL Alaskans, not just serve a private company in gathering profits off our resource.”
This new legislation, introduced by Giessel, is intended to provide for more transparency and accountability for the Alaska Gasline Development Corporation and the AK LNG project. There are still a lot of unknowns, but with three hearings scheduled over the next two weeks, it appears to be moving quickly.
We expect opportunities for testimony on this issue soon, so stay tuned!
Learn more: https://www.fbxclimateaction.org/noaklng
Alphabet Explainer
S-Corp: In Alaska, S-corps (S stands for shareholder) do not pay state corporate income taxes. This is of growing concern in the oil and gas sphere, as most large corporations (like ExxonMobil and ConocoPhillips) are structured as C-corps and contribute to state revenues through corporate income taxes, but one notable outlier (Hilcorp) is structured as an S-corp and does not pay a dime in state income tax under current law.
AKLNG: The Alaska LNG project was first proposed in the mid-70s and has been resurrected multiple times since, but has yet to actually materialize. It would consist of an 800-mile pipeline from the Alaska North Slope to Southcentral. Some of that LNG may be used domestically for residential heating and electricity, but the project is not considered economical unless it is exporting a majority of the LNG to foreign end users. The current plan is being managed by Glenfarne (75%) and AGDC (25%), and has a 2-phased approach.
AGDC: The Alaska Gasline Development Corporation is an independent, public corporation owned by the State of Alaska created by the Legislature in 2013. They were the lead party developing the AK LNG project until March 2025, when they signed an agreement with Glenfarne to assume 75% of the equity of the project.
Want to join our crew?
We are on the lookout for some fellow community members with just a little bit of nerdiness and passion to join us in volunteering for the FCAC energy newsletter team. No experience required, but you do have to show us a picture of your pet. If you're interested, please send us an email at: aurora@fbxclimateaction.org.
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