Legislature(2023 - 2024)SENATE FINANCE 532
05/12/2024 02:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB50 | |
| HB66 | |
| HB122 | |
| SB217 | |
| HB347 | |
| HB148 | |
| HB129 | |
| HB111 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 66 | TELECONFERENCED | |
| += | HB 50 | TELECONFERENCED | |
| += | SB 217 | TELECONFERENCED | |
| += | HB 122 | TELECONFERENCED | |
| += | HB 148 | TELECONFERENCED | |
| += | HB 111 | TELECONFERENCED | |
| += | HB 347 | TELECONFERENCED | |
| += | HB 129 | TELECONFERENCED | |
| += | HB 202 | TELECONFERENCED | |
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."
2:09:29 PM
Co-Chair Olson MOVED to ADOPT Amendment 4, 33-GH1567\T.12,
(Dunmire, 05/11/24)(copy on file).
Co-Chair Olson OBJECTED for the purpose of discussion.
2:10:01 PM
KEN ALPER, STAFF TO CO-CHAIR OLSON, spoke to Amendment 4:
Page 34, line 20:
Delete new subsections
Insert a new subsection
Page 34, lines 21-29:
Delete all material.
Reletter the following subsection accordingly.
Mr. Alper explained that the amendment meant that the
Regulatory Commission of Alaska would not be given explicit
direction about how to treat the cost of an LNG import
facility for LNG imports that were many years in the
future.
2:11:07 PM
AT EASE
2:11:20 PM
RECONVENED
Co-Chair Olson WITHDREW his objection.
Senator Bishop relayed that he had problems with the
amendment. He asked that members pay close attention to the
topic going forward. He expressed concern that the price of
imported LNG would be higher than expected and that
ratepayers would bear the burden.
2:12:18 PM
Co-Chair Olson MOVED to ADOPT Amendment 5, 33-GH1567\T.11
(Dunmire, 5/11/24).
Co-Chair Stedman OBJECTED for discussion.
KEN ALPER, STAFF TO Co-Chair Olson, spoke to Amendment 5
(copy on file):
Page 30, line 24, following paragraph,:
Insert (A)
Page 39, line 24, following capture:
Insert means the process of capturing carbon
dioxide from a chemical, mechanical, or industrial
process, or directly from the ambient atmosphere, and
reducing the carbon dioxide to a concentrated form,
including a superficial fluid; carbon capture.
Page 30, line 25, following treatment:
Insert;
(B) carbon stroage means the long-
term geologic storage of carbon dioxide in a
carbon storage facility permitted under AS
41.06.120 or a Class VI injection well, as
defined in 40 C.F.R 146.5 (f)
Co-Chair Stedman WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
2:14:10 PM
Senator Bishop MOVED to WITHDRAW Amendment 6 (copy on
file). There being NO OBJECTION, it was so ordered.
2:14:22 PM
AT EASE
2:15:22 PM
RECONVENED
Co-Chair Olson noted that Amendment 7 had been withdrawn
(copy on file). [There was no motion to move Amendment 7].
2:15:39 PM
AT EASE
2:24:17 PM
RECONVENED
2:24:38 PM
Senator Bishop asked whether Mr. Doyle had seen Amendment
4.
2:25:11 PM
ROBERT DOYLE, CHAIR, REGULATORY COMMISSION OF ALASKA,
ANCHORAGE (via teleconference), replied that he had not.
2:25:13 PM
Senator Bishop explained the intent of Amendment 4, and
asked whether the Regulatory Commission of Alaska had the
ability to regulate and approve imported gas tariffs.
2:25:42 PM
Mr. Doyle replied that the well head price of natural gas
was not set by the Regulatory Commission of Alaska. He said
that the Regulatory Commission of Alaska regulated it at
the point in time when it was sold to the utility. The
negotiated price that the gas was bought, prior to the time
it was injected withdrawn, and sold to a utility, would not
change based upon the contract that were established when
the gas was purchased and put into storage.
2:26:34 PM
Senator Wilson wonder whether a natural gas entity would be
able to adjust rates for the expenditures of building a
storage facility or the export facility.
2:27:35 PM
Mr. Doyle understood that a corporations operating legacy
field wanted to recoup costs of investments and remain
competitive in offering services to utilities.
2:27:45 PM
Senator Wilson wondered whether the Regulatory Commission
of Alaska had the authority to offset the investment costs
of utilities down to the ratepayers.
Mr. Doyle replied that the adjustments would be made to
make sure that the price was fair, just, and reasonable for
ratepayers. He stressed that that more storage was needed
as well as more production.
2:28:41 PM
Senator Wilson clarified that he was not talking about
storage; he was talking about LNG importing. He asked if an
entity were to build an LNG facility, would the costs be
offset and did the Regulatory Commission of Alaska
currently have the authority to offset costs.
2:28:52 PM
Mr. Doyle responded that that there were FERC
considerations. He understood that utilities would be
utilizing storage, and the Regulatory Commission of Alaska
would support that storage.
2:29:47 PM
Senator Wilson reiterated that he was not talking about
storage. He said that he was talking about the building of
an LNG import facility for the importation of natural gas.
He asked whether a public utility could recoup the cost of
building a new LNG import facility to import natural gas
for Southcentral Alaska.
2:30:17 PM
Mr. Doyle replied in the affirmative.
2:30:48 PM
Senator Bishop surmised that storage was regulated by the
Regulatory Commission of Alaska whether it was in-field
production from existing Cook Inlet properties or imported.
Mr. Doyle responded that the Regulatory Commission of
Alaska regulated it at the point in time that it was sold
to utilities and the utilities put it into generation.
2:31:58 PM
AT EASE
2:32:33 PM
RECONVENED
Senator Bishop MOVED to REPORT SCS CSHB 50 (FIN) 33GH1567\T
from committee as amended with individual recommendations
and attached fiscal notes.
SCS CSHB 50(FIN) was REPORTED out of committee with two "do
pass" recommendations and five "no recommendations"; three
new fiscal notes from the Department of Commerce, Community
and Economic Development, two new fiscal notes from
Department of Natural Resources, one new fiscal note from
the Department of Revenue, and one previously published
zero fiscal note: FN 9(DEC).