On last day of 2024 legislative session things are falling into place

Wednesday is the final day of the 2024 legislative session, and things are falling in place for an orderly adjournment at midnight, May 15. The state budget is agreed on, both the operating and capital budgets, and the House and Senate are close on major energy legislation.

A Permanent Fund Dividend, or PFD, is also agreed on, at $1,360 for the regular PFD and additional $295 for a special “energy” dividend. The combined dividends total $1,655.

The final amounts may vary somewhat because the regular dividend will depend on how many Alaskans actually apply, while the energy dividend will depend on how oil prices my change through the summer.

Meanwhile, the House has passed a bill granting royalty reduction for new natural gas produced in Cook Inlet but there are differences with similar Senate legislation that will have to be reconciled by midnight Wednesday.

Similarly, the House has approved a bill making major changes in how the state regulates power transmitted through long-distance power transmission lines and granting tax reductions to independent power producers, mostly for wind and solar projects.

Again, similar bill is in the Senate that is different than the House version. These differences should also be reconciled by midnight.

The royalty reduction bills for new natural gas are important because a decline in gas production is expected in Cook Inlet that will affect the supply of gas for home and building heat, and for power generation. There are known but undeveloped gas resources in the Inlet, and the new incentives are expected to make new gas supply available by 2027, which is when gas production will begin declining, according to the state Division of Oil and Gas.

The electric transmission bill is important because it would set in place a mechanism to establish level rates for power moved up and down the “railbelt” transmission system between Interior and Southcentral Alaska. Currently these rates vary depending on the electric utility that owns the portion of transmission system built though its territory.

This “pancaking” if different rates is an impediment for the efficient movement of power from south to north though the system, and it has become an economic impediment for renewable energy projects now planned for Interior and Southcentral Alaska.