HB 223 Summary

• Reduces royalty rates for new oil and gas production south of 68 degrees North latitude that begins between July 1, 2024 and January 1, 2035 to 3 percent for qualified new gas and 6.25 percent for qualified new oil, lasting 10 years or until commercial quantity is shipped out of state.

• Sets 1 percent royalty rate for gas from leases north of 68 degrees North latitude that is liquefied or used in liquefaction/transportation if lessee sells gas to publicly owned or regulated utilities at discounted rates, lasting 10 years or until liquefied natural gas is shipped out of state.

• Establishes Cook Inlet reserve-based lending fund within Alaska Industrial Development and Export Authority to provide loans for oil and gas development projects in Cook Inlet sedimentary basin using interest rates that may be below authority's cost of funds.

• Authorizes authority to create subsidiary corporations for acquiring, constructing, owning, operating, or financing projects funded under the new Cook Inlet reserve-based lending provisions.

• Requires authority to prepare annual reports evaluating Cook Inlet oil and gas development projects and submit to legislature by first day of each regular session, including cost estimates, recoverable gas potential, and funding requirements.