Legislature(2023 - 2024)
2024-04-15 House Journal
Full Journal pdf2024-04-15 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.