Legislature(2023 - 2024)

2024-04-15 House Journal

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2024-04-15                     House Journal                      Page 2297
HB 50                                                                                                                         
The following was read the second time:                                                                                         
                                                                                                                                
     HOUSE BILL NO. 50                                                                                                          
     "An Act relating to the geologic storage of carbon dioxide; and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
with the: Journal Page                                                                                                          
                                                                                                                                
 RES RPT CS(RES) NEW TITLE 6DP 1NR 1AM 371                                                                                      
 FN5: ZERO(DEC) 371                                                                                                             
 FN6: (CED) 371                                                                                                                 
 FN7: (DNR) 371                                                                                                                 
 FN8: (REV) 371                                                                                                                 
 FIN RPT CS(FIN) NEW TITLE 3DP 5NR 3AM 1839                                                                                     
 FN9: ZERO(DEC) 1839                                                                                                            
 FN10: (REV) 1839                                                                                                               
 FN11: (DNR) 1839                                                                                                               
 FN12: (CED) 1839                                                                                                               
                                                                                                                                
Representative Saddler moved and asked unanimous consent that the                                                               
following committee substitute be adopted in lieu of the original bill:                                                         
                                                                                                                                
     CS FOR HOUSE BILL NO. 50(FIN)                                                                                              
     "An Act relating to carbon storage on state land; relating to the                                                          
     powers and duties of the Alaska Oil and Gas Conservation                                                                   
     Commission; relating to carbon storage exploration licenses;                                                               
     relating to carbon storage leases; relating to carbon storage                                                              
     operator permits; relating to enhanced oil or gas recovery; relating                                                       
     to long-term monitoring and maintenance of storage facilities;                                                             
     relating to carbon oxide sequestration tax credits; relating to the                                                        
     duties of the Department of Natural Resources; relating to carbon                                                          
     dioxide pipelines; and providing for an effective date."                                                                   

2024-04-15                     House Journal                      Page 2298
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
Amendment No. 1 was offered  by Representative Mears:                                                                            
                                                                                                                                
Page 6, line 13, following "assurances.":                                                                                       
     Insert "The fee for an annual lease rental must be at least four                                                           
percent of the lease holder's gross revenue from carbon credit sales on                                                         
the lease plus four percent of the value of carbon oxide sequestration                                                          
credits the lease holder is allowed for the lease under 26 U.S.C. 45Q                                                           
(Internal Revenue Code)."                                                                                                       
                                                                                                                                
Representative Mears moved and asked unanimous consent that                                                                     
Amendment No. 1 be adopted.                                                                                                     
                                                                                                                                
Representative Stapp objected.                                                                                                  
                                                                                                                                
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 1                                                                                                                 
                                                                                                                                
YEAS:  15   NAYS:  24   EXCUSED:  1   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Armstrong, Carrick, Foster, Gray, Groh, Hannan, Himschoot,                                                               
Josephson, McCormick, Mears, Mina, Ortiz, Schrage, Story, Stutes                                                                
                                                                                                                                
Nays:  Allard, Baker, Carpenter, Coulombe, Cronk, Eastman,                                                                      
Edgmon, Fields, Galvin, C.Johnson, D.Johnson, McCabe, McKay,                                                                    
Prax, Rauscher, Ruffridge, Saddler, Shaw, Stapp, Sumner, Tilton,                                                                
Tomaszewski, Vance, Wright                                                                                                      
                                                                                                                                
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 1 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 2 was offered  by Representative Josephson:                                                                        
                                                                                                                                
Page 6, line 16, following "land":                                                                                              
     Insert "that is part of a unit under AS 31.05 or AS 38.05.180"                                                            
                                                                                                                                
Page 11, following line 10:                                                                                                     
     Insert a new subsection to read:                                                                                           

2024-04-15                     House Journal                      Page 2299
         "(f)  The commissioner may issue a carbon storage lease                                                                
     under this section only on land that is part of a unit under                                                               
     AS 31.05 or AS 38.05.180."                                                                                                 
                                                                                                                                
Page 12, following line 11:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 16. AS 38.05.705(a), enacted by sec. 15 of this Act, is                                                               
amended to read:                                                                                                                
         (a)  The commissioner may issue carbon storage exploration                                                             
     licenses on state land [THAT IS PART OF A UNIT UNDER                                                                       
     AS 31.05 OR AS 38.05.180]."                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 21, following line 4:                                                                                                      
     Insert a new subsection to read:                                                                                           
         "(g)  The commission may issue a permit under this section to                                                          
     operate a storage facility only on land that is part of a unit under                                                       
     AS 31.05 or AS 38.05.180."                                                                                                 
                                                                                                                                
Page 34, following line 20:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 40. AS 38.05.720(f) and AS 41.06.120(g) are repealed."                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, following line 1:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 43.  Sections 16 and 40 of this Act take effect July 1, 2039."                                                        
                                                                                                                                
Renumber the following bill section accordingly.                                                                                
                                                                                                                                
Page 35, line 2:                                                                                                                
     Delete "Section 39"                                                                                                        
     Insert "Section 41"                                                                                                        
                                                                                                                                
Representative Josephson moved and asked unanimous consent that                                                                 
Amendment No. 2 be adopted.                                                                                                     
                                                                                                                                
Representative McCabe objected.                                                                                                 

2024-04-15                     House Journal                      Page 2300
The question being:  "Shall Amendment No. 2 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 2                                                                                                                 
                                                                                                                                
YEAS:  17   NAYS:  22   EXCUSED:  1   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Armstrong, Carrick, Eastman, Edgmon, Fields, Galvin, Gray,                                                               
Groh, Hannan, Himschoot, Josephson, McCormick, Mears, Mina,                                                                     
Ortiz, Schrage, Story                                                                                                           
                                                                                                                                
Nays:  Allard, Baker, Carpenter, Coulombe, Cronk, Foster, C.Johnson,                                                            
D.Johnson, McCabe, McKay, Prax, Rauscher, Ruffridge, Saddler,                                                                   
Shaw, Stapp, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright                                                                 
                                                                                                                                
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 2 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 3 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 11, line 7, following "met.":                                                                                              
     Insert "Additionally, the department must find that the carbon                                                             
storage lease is expected to be profitable without accounting for credit                                                        
against tax liability allowed under the carbon oxide sequestration                                                              
credit to federal taxes under 26 U.S.C. 45Q (Internal Revenue Code)."                                                           
                                                                                                                                
Page 22, line 22:                                                                                                               
     Delete "and"                                                                                                               
                                                                                                                                
Page 22, line 24, following "commission":                                                                                       
     Insert "; and                                                                                                              
              (15)  that the proposed storage facility is expected to be                                                        
     profitable without accounting for credit against tax liability                                                             
     allowed under the carbon oxide sequestration credit to federal                                                             
     taxes under 26 U.S.C. 45Q (Internal Revenue Code)"                                                                         
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 3 be adopted.                                                                                                     
                                                                                                                                
Representative Mears objected.                                                                                                  

2024-04-15                     House Journal                      Page 2301
The question being:  "Shall Amendment No. 3 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 3                                                                                                                 
                                                                                                                                
YEAS:  1   NAYS:  38   EXCUSED:  1   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Eastman                                                                                                                  
                                                                                                                                
Nays:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan,                                                                      
Himschoot, C.Johnson, D.Johnson, Josephson, McCabe, McCormick,                                                                  
McKay, Mears, Mina, Ortiz, Prax, Rauscher, Ruffridge, Saddler,                                                                  
Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski,                                                               
Vance, Wright                                                                                                                   
                                                                                                                                
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 3 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 4 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 21, line 29:                                                                                                               
     Following "(4)":                                                                                                           
         Insert "if the proposed storage reservoir has not been depleted                                                        
     of hydrocarbons,"                                                                                                          
     Delete "made a good faith effort to get"                                                                                   
     Insert "obtained"                                                                                                          
                                                                                                                                
Page 22, line 11:                                                                                                               
     Delete "health"                                                                                                            
     Insert "life"                                                                                                              
                                                                                                                                
Page 22, line 12:                                                                                                               
     Delete "unduly endanger the environment"                                                                                   
     Insert "cause a hazardous condition"                                                                                       
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 4 be adopted.                                                                                                     
                                                                                                                                
Representative Stapp objected.                                                                                                  

2024-04-15                     House Journal                      Page 2302
The question being:  "Shall Amendment No. 4 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 4                                                                                                                 
                                                                                                                                
YEAS:  1   NAYS:  38   EXCUSED:  1   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Eastman                                                                                                                  
                                                                                                                                
Nays:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan,                                                                      
Himschoot, C.Johnson, D.Johnson, Josephson, McCabe, McCormick,                                                                  
McKay, Mears, Mina, Ortiz, Prax, Rauscher, Ruffridge, Saddler,                                                                  
Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski,                                                               
Vance, Wright                                                                                                                   
                                                                                                                                
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 4 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 5 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 24, lines 16 - 17:                                                                                                         
     Delete "While the storage operator holds title, the operator"                                                              
     Insert "The operator or owner of the pore space"                                                                           
                                                                                                                                
Page 25, line 24, through page 26, line 5:                                                                                      
     Delete all material and insert:                                                                                            
         "(c)  After the commission issues a certificate of completion,                                                         
     the storage operator and all persons who generated injected carbon                                                         
     dioxide remain liable for damages arising out of, or connected                                                             
     with, long-term monitoring and maintenance of a storage facility."                                                         
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 5 be adopted.                                                                                                     
                                                                                                                                
Representative Stapp objected.                                                                                                  
                                                                                                                                
The question being:  "Shall Amendment No. 5 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                

2024-04-15                     House Journal                      Page 2303
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 5                                                                                                                 
                                                                                                                                
YEAS:  7   NAYS:  32   EXCUSED:  1   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Eastman, Gray, Hannan, Josephson, Mears, Mina, Ortiz                                                                     
                                                                                                                                
Nays:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Edgmon, Fields, Foster, Galvin, Groh, Himschoot, C.Johnson,                                                              
D.Johnson, McCabe, McCormick, McKay, Prax, Rauscher, Ruffridge,                                                                 
Saddler, Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton,                                                                   
Tomaszewski, Vance, Wright                                                                                                      
                                                                                                                                
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 5 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 6 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 28, following line 31:                                                                                                     
     Insert a new section to read:                                                                                              
         "Sec. 41.06.200. Seismic activity monitoring. Each year, the                                                         
     commission shall hire a contractor to conduct a report of seismic                                                          
     activity in the state during the preceding year. The commissioner                                                          
     shall submit the report to the senate secretary and the chief clerk                                                        
     of the house of representatives and notify the legislature that the                                                        
     report is available. If the report concludes that seismic activity in                                                      
     the state in the preceding year increased when compared against                                                            
     the year before the preceding year, then, notwithstanding                                                                  
     AS 41.06.120 - 41.06.135, the commission may not issue a new                                                               
     permit until the commissioner determines that the increase in                                                              
     seismic activity is not attributable to carbon storage."                                                                   
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 6 be adopted.                                                                                                     
                                                                                                                                
Representative Fields objected.                                                                                                 
                                                                                                                                
The question being:  "Shall Amendment No. 6 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
                                                                                                                                

2024-04-15                     House Journal                      Page 2304
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 6                                                                                                                 
                                                                                                                                
YEAS:  2   NAYS:  37   EXCUSED:  1   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Eastman, Hannan                                                                                                          
                                                                                                                                
Nays:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Edgmon, Fields, Foster, Galvin, Gray, Groh, Himschoot,                                                                   
C.Johnson, D.Johnson, Josephson, McCabe, McCormick, McKay,                                                                      
Mears, Mina, Ortiz, Prax, Rauscher, Ruffridge, Saddler, Schrage,                                                                
Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski, Vance,                                                                 
Wright                                                                                                                          
                                                                                                                                
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 6 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 7 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 28, following line 17:                                                                                                     
     Insert a new subsection to read:                                                                                           
         "(c)  The commission may not enter into a contract under this                                                          
     section that exceeds $5,000,000 without legislative approval. If                                                           
     the commission intends to enter into a contract that exceeds                                                               
     $5,000,000, the commission shall submit the contract to the                                                                
     legislature for approval."                                                                                                 
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 7 be adopted.                                                                                                     
                                                                                                                                
Representative Stapp objected.                                                                                                  
                                                                                                                                
Representative Stapp rose to a point of order regarding confining                                                               
remarks to the amendment before the body.                                                                                       
                                                                                                                                
The Speaker cautioned the member to confine remarks to the                                                                      
amendment.                                                                                                                      
                                                                                                                                
The question being:  "Shall Amendment No. 7 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                

2024-04-15                     House Journal                      Page 2305
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 7                                                                                                                 
                                                                                                                                
YEAS:  2   NAYS:  37   EXCUSED:  1   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Eastman, Stutes                                                                                                          
                                                                                                                                
Nays:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan,                                                                      
Himschoot, C.Johnson, D.Johnson, Josephson, McCabe, McCormick,                                                                  
McKay, Mears, Mina, Ortiz, Prax, Rauscher, Ruffridge, Saddler,                                                                  
Schrage, Shaw, Stapp, Story, Sumner, Tilton, Tomaszewski, Vance,                                                                
Wright                                                                                                                          
                                                                                                                                
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 7 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 8 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 1, following line 12:                                                                                                      
     Insert a new bill section to read:                                                                                         
        "* Sec. 2. The uncodified law of the State of Alaska is amended                                                       
by adding a new section to read:                                                                                                
     LEGISLATIVE FINDINGS. The legislature finds that carbon                                                                    
regulations inevitably increase the cost of goods and services to the                                                           
end user."                                                                                                                      
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 8 be adopted.                                                                                                     
                                                                                                                                
Representative Stapp objected.                                                                                                  
                                                                                                                                
The question being:  "Shall Amendment No. 8 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 8                                                                                                                 
                                                                                                                                

2024-04-15                     House Journal                      Page 2306
YEAS:  1   NAYS:  38   EXCUSED:  1   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Eastman                                                                                                                  
                                                                                                                                
Nays:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan,                                                                      
Himschoot, C.Johnson, D.Johnson, Josephson, McCabe, McCormick,                                                                  
McKay, Mears, Mina, Ortiz, Prax, Rauscher, Ruffridge, Saddler,                                                                  
Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski,                                                               
Vance, Wright                                                                                                                   
                                                                                                                                
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 8 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 9 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 28, line 19:                                                                                                               
     Delete "may"                                                                                                               
     Insert "shall"                                                                                                             
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 9 be adopted.                                                                                                     
                                                                                                                                
Representative Stapp objected.                                                                                                  
                                                                                                                                
The question being:  "Shall Amendment No. 9 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 9                                                                                                                 
                                                                                                                                
YEAS:  9   NAYS:  30   EXCUSED:  1   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Eastman, Galvin, Gray, Hannan, Himschoot, Josephson, Mina,                                                               
Ortiz, Stutes                                                                                                                   
                                                                                                                                
Nays:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Edgmon, Fields, Foster, Groh, C.Johnson, D.Johnson,                                                                      
McCabe, McCormick, McKay, Mears, Prax, Rauscher, Ruffridge,                                                                     
Saddler, Schrage, Shaw, Stapp, Story, Sumner, Tilton, Tomaszewski,                                                              
Vance, Wright                                                                                                                   
                                                                                                                                
                                                                                                                                

2024-04-15                     House Journal                      Page 2307
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 9 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 10 was offered  by Representative Eastman:                                                                         
                                                                                                                                
Page 29, line 30, following "that are":                                                                                         
      Insert "devoid of recoverable mineral resources and that are"                                                            
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 10 be adopted.                                                                                                    
                                                                                                                                
Representative Fields objected.                                                                                                 
                                                                                                                                
The question being:  "Shall Amendment No. 10 be adopted?"  The roll                                                             
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 50(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 10                                                                                                                
                                                                                                                                
YEAS:  1   NAYS:  38   EXCUSED:  1   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Eastman                                                                                                                  
                                                                                                                                
Nays:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan,                                                                      
Himschoot, C.Johnson, D.Johnson, Josephson, McCabe, McCormick,                                                                  
McKay, Mears, Mina, Ortiz, Prax, Rauscher, Ruffridge, Saddler,                                                                  
Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski,                                                               
Vance, Wright                                                                                                                   
                                                                                                                                
Excused:  Dibert                                                                                                                
                                                                                                                                
And so, Amendment No. 10 was not adopted.                                                                                       
                                                                                                                                
Representative Saddler moved and asked unanimous consent that                                                                   
CSHB 50(FIN) be considered engrossed, advanced to third reading,                                                                
and placed on final passage.                                                                                                    
                                                                                                                                
There was objection.                                                                                                            
                                                                                                                                
CSHB 50(FIN) will advance to third reading on the April 17 calendar.