Senate approves bill to raise millions for state, while House signs energy efficiency program

A bill to raise as much as $37 million for the state of Alaska through the sale of its royalty oil has been approved by the Alaska Senate.

In a 17-0 vote Friday, lawmakers approved Senate Bill 30, which now goes to the House for consideration.

Under the state’s oil royalty system, Alaska receives a portion of all oil produced from state land. The state can accept that royalty “in kind” (as oil), or it can accept it “in value” (as a cash payment). While the state typically accepts in-value royalties, it has occasionally taken royalties in kind, usually to support local industry.

SB 30, if approved by the House and signed into law by the governor, would sell royalty oil to Petro Star, a refiner based in Alaska and owned by the Arctic Slope Regional Corporation. The sale will earn Alaska between $29 million and $37 million more than if it accepted a royalty in-value.

Read more: http://peninsulaclarion.com/news/state/2017-02-13/senate-approves-bill-raise-millions-state-while-house-signs-energy-efficiency