Volume 3 Issue 13

House Passes Oil & Gas Tax Break

Plus: House Passes Public Gardens Day

April 1, 2011

As we enter the last days of session, the pace is definitely picking up and floor sessions are getting longer. Last night at about 9:00 p.m., the House voted to pass the governor's proposed oil and gas tax reduction over to the Senate. Also this week, legislation I sponsored to create a Public Gardens Day moved over to the Senate.

Thank you for reading my newsletter. I enjoy hearing from you, so please stop by the office, call, write or email.

Preparing for the debate on oil & gas taxes.

As I've said before (see my newsletters from March 25, March 18, March 4, February 11 and January 14 and this article from Petroleum News), I believe that reducing taxes for oil and gas is a bad idea. Not only would it cost about $2 billion per year, the current proposal wouldn't require any guarantees by companies to even try to increase production. It also removes a lot of the incentives for production that are in the current tax structure. That's why House Democrats offered a series of amendments to HB 110 that would have fixed some of those issues yesterday, most of which went down along party lines.

Amendment #1 (the "Prove It" amendment) by Representative Mike Doogan would have made the changes in HB 110 temporary to allow companies time to prove that the lower taxes would increase production. After two years, the taxes would automatically revert back to the current structure unless the Legislature took further action.

Amendment #2 (the "Do It" amendment) by Representative Bob Miller would also have made the changes temporary. After four years, companies who proved increased production would continue to pay lower taxes. However, if they didn't increase production enough, they would revert to the current tax rates.

Amendment #3 (the "Show It" amendment) by Representative Berta Gardner would have asked for detailed information about how tax credits for exploration and development were being used and reported that information to the Legislature.

Amendment #4 (the "Explore It" amendment) by Representative Les Gara would have left the tax rates as they currently are and added a generous 50% tax credit for exploration expenses.

Amendment #5 (the "Produce It" amendment) by Representative Les Gara have left the tax rates as they currently are and added a generous 50% tax credit for building production facilities.

I visited with former Rep. Mike Miller, who served Juneau from 1971-1986.

On Tuesday, the Alaska House of Representatives moved to establish Alaska Public Gardens Day on the Saturday immediately preceding Memorial Day each year. By passing HB 18, the House recognized the role gardens play in promoting environmental stewardship, the economy, education, plant conservation, recreation and research in Alaska.

Alaska's public gardens contribute heavily to our sense of community. They are tourism destinations and are great places for local children and adults to learn about gardening, ecology, and science.

Public gardens partner with other organizations to provide school-based education programs, public health education programs and community and school gardens. They provide workforce training sites for youth and adults in transition and work on habitat restoration. In addition, they provide information on how to choose regionally-appropriate plants that are native to the area for landscaping purposes.

National Public Gardens Day is May 6, which is too early in the growing season to be appropriate for Alaska. That's why House Bill 18 establishes Alaska Public Gardens Day on the Saturday immediately preceding Memorial Day each year.

I really appreciate all the help and support the bill received from around the state. I especially want to thank Merrill Jensen, Peter Froehlich, Patricia Harris, and Ed Buyarski from here in Juneau who have taken time out of their schedules to testify and provide backup information.

HB 18 is scheduled for a hearing in Senate State Affairs next week and then it will be on to the Senate floor!

Speaker of the House Mike Chenault and I joking around during a brief at ease.

The Juneau Economical Development Council (JEDC) has announced an exciting schedule of summer camps for the 2011 season, all focused on hands-on learning in science, technology, engineering and mathematics (STEM).

Sun to Sea: Join experts from NOAA to explore the world around us.

•           For students going into grades 6-8

•           June 6-10, times TBA

•           $150

Environmental Engineering in Rain Country: Explore engineering concepts related to water and waste water treatment, including unit process engineering. How do local mining companies deal with issues related to surface and groundwater in the mining process? This new day option through Discover Design Research @ UAS offers one college credit and includes visits to local mines.

•           For students going into grades 10-12

•           Sunday, June 12, 4:00-8:00; then Monday-Friday, June 13-24, 8:30-5:00 daily

•           $650

LEGO Programming Camps: Whether you're a beginner or an expert, there's a robotics camp for you.

•           For students ages 9-14

•           Dates and times TBA

•           $60

Advanced Rocket Design: For the novice or amateur, if you want to learn how to design your own rockets and make your own motors, this is the camp for you! Includes design, analysis, testing and building, along with tips and techniques to give your rocket stellar performance.

•           For students going into grades 9-12

•           July 11-15, 9:00-4:00 daily

•           $150

Underwater Gliders: Learn from Navy engineers and UAF professors how to build and operate your own underwater glider. Use a professional glider to collect and analyze aquatic data. (Camps available in both Juneau and Ketchikan)

•           For students going into grades 7-9

•           August 1-5, 9:00-4:00 daily

•           $125

Kitchen Chemistry: Budding young chefs will explore various methods used in cooking food and some of the chemistry involved in food preparation. Why do cakes rise? How is yogurt made? Why is temperature important when you make caramel? Be prepared to put on some weight!

•           For students going into grades 4-5

•           August 9-12, 9:00-2:00 daily

•           $50

Registration runs from March 21 to April 8 for Environmental Engineering in Rain Country. For all other camps, registration opens today. Financial aid is available on a limited basis.

Visit the website often for updates and contact JEDC's STEM team at 523-2342 for more information.