Senate Bill 180 received a first hearing Feb. 25 before the Alaska Senate Resources Committee. The bill would repeal AS 42.05.0711(v), returning the Regulatory Commission of Alaska’s (RCA) authority to regulate aspects of liquefied natural gas imports related to gas supply contracts.

Chair Senator Giesel, who introduced the measure on the committee’s behalf, said the change is intended "to lift a cloud of confusion on RCA jurisdiction over certificated utilities' gas supply contracts from an LNG import terminal." She told the committee the amendment passed last session had effectively shifted part of that question toward FERC.

Why the bill matters
Supporters said the repeal clarifies regulatory roles and protects consumers. "FERC's authority, to be clear, is over facilities, not price of the commodity," Senator Giesel said, and the bill, she said, would not expand the RCA’s authority to regulate a privately held import terminal but would allow RCA to oversee gas supply contracts to utilities the agency already regulates.

Committee discussion and background
Committee members asked why the provision was inserted last year. Senator Giesel said the language was added late in the 2024 session as an amendment in House Bill 50, a carbon sequestration bill, and that no committee discussion was held on the insertion. Department and RCA staff were available for questions; staff member Maio Harbison told the committee he had no additional comments, and John Espindola, commissioner and chair of the Regulatory Commission of Alaska, joined online for questions.

Action taken
Chair Giesel set the bill aside for committee members to review and to consider later; no committee vote or amendment was recorded during the Feb. 25 hearing.

Ending
Committee staff will circulate materials for committee review. The bill remains at the committee stage pending further consideration.