Senate Finance Committee • HB 331 Oil Tax Credits 

May 8, 2018 

Good afternoon Madame Co-chair and members of the Senate Finance Committee. My name is Marleanna Hall, I am the executive director for the Resource Development Council for Alaska. I am here today to express RDC’s support for HB 331.

RDC is a statewide trade association comprised of individuals and companies from Alaska’s oil and gas, mining, forest products, fisheries and tourism industries, as well at the 12 land owning Alaska Native corporations. Our membership also includes labor, municipalities and boroughs, the support industry sector, and individuals from around the state.

This bill, while not perfect, is a significant step in the right direction and would help stimulate Alaska’s economy by encouraging investment on the North Slope. Investment leads to new production and new production will result in more state revenue over the long term. The increased activity resulting from HB 331 would also generate more Alaskan jobs and help strengthen the private sector, which is the foundation of Alaska’s economy. I cannot state it enough – the private sector’s underlying health is the key to sustaining jobs, state government, and the overall economy.

As you know, HB 331 would pay off more the hundreds of millions the State owes for oil and gas tax credits, and the discount more than covers the additional costs of interest to the State on the bond debt. Passage of HB 331 would also help restore Alaska’s reputation as a stable and reliable oil and gas jurisdiction.

The uncertainty surrounding the payment of tax credits has led to projects being stalled and credit frozen. Getting these credits off the books will benefit the State and give small exploration companies the much-needed capital to see them move forward with promising new opportunities when our economy needs them the most. 

Thank you for the opportunity to express RDC’s comments on HB 331.