Legislature(2019 - 2020)
2020-01-22 Senate Journal
Full Journal pdf2020-01-22 Senate Journal Page 1543 SB 161 SENATE BILL NO. 161 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to geothermal resources; relating to the definition of 'geothermal resources'; and providing for an effective date." was read the first time and referred to the Resources and Finance Committees. The following fiscal information was published today: Fiscal Note No. 1, zero, Department of Commerce, Community, and Economic Development Fiscal Note No. 2, zero, Department of Natural Resources Fiscal Note No. 3, Department of Natural Resources Governor's transmittal letter dated January 21: Dear President Giessel: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill revising statutes related to the State's geothermal resources. This bill removes obstacles for exploration and development of Alaska's geothermal resources. Current law provides companies only two to three years to prove a commercial discovery, which then allows the company to apply for a more long-term lease. The bill increases the time available for exploration to five years to better account for the time needed to complete an exploration program. The bill more clearly defines what constitutes geothermal resources available for lease. It reclassifies the current permit system as a license system similar to that for oil and gas exploration. The bill’s proposed five-year exploration license term in the bill allows explorers more time to conduct background research, acquire surface use permits, and perform the field work necessary to locate a resource and produce the data necessary to convert a license to a lease. 2020-01-22 Senate Journal Page 1544 This bill also nearly doubles the maximum acreage a person may have under lease for geothermal projects from 51,200 acres to 100,000 acres, to account for the tendency of geothermal resources to be dispersed over large areas. The proposed acreage increase in the bill will attract greater interest in geothermal resources because developers will have a greater opportunity to explore the appropriate area to delineate geothermal systems. With enactment of this measure, our state will continue to responsibly manage our natural resources in a manner to provide maximum benefits to our citizens through development of needed energy sources. I urge your prompt and favorable action on this measure. Sincerely, /s/ Mike Dunleavy Governor