Legislature(2023 - 2024)SENATE FINANCE 532
05/08/2023 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB52 | |
| SB48 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 52 | TELECONFERENCED | |
| += | SB 48 | TELECONFERENCED | |
SENATE BILL NO. 48
"An Act authorizing the Department of Natural
Resources to lease land for carbon management
purposes; establishing a carbon offset program for
state land; authorizing the sale of carbon offset
credits; and providing for an effective date."
2:30:09 PM
RENA MILLER, SPECIAL ASSISTANT, COMMISSIONERS OFFICE,
DEPARTMENT OF NATURAL RESOURCES, introduced herself.
2:30:29 PM
JOSH STRAUSS, SENIOR VICE PRESIDENT, ANEW, CALIFORNIA (via
teleconference), discussed the presentation, "Forest Carbon
In Alaska" (copy on file). He began with slide 7, which
addressed the credit buyers in the economy who were
participating in the program.
Mr. Strauss looked at slide 8, "Landowner Obligations":
• Harvesting should not exceed growth
• Must maintain certification (SFI, ATFS) or have
state approved Forest Management Plan
2:35:23 PM
Senator Bishop wondered whether there should be a reopener
in the contract in five years after the verification, and
if there was no increase in the intake of carbon would
there be a reopener on the contract; or whether it was
prorated.
Mr. Strauss replied that it was a rolling obligation. He
furthered that as there was an increase in stocking on the
property with verification on a five year basis, it was a
rolling commitment with the new minimum for the forty-year
period.
Senator Bishop wondered whether there was a chance to
renegotiate if there was an increase in carbon
sequestration from five years.
Mr. Strauss said that credit and revenue could be generated
on an ongoing basis.
Mr. Strauss addressed slide 9, "Key Components Of Offset
Quality." He noted the components of additionally,
permanence,verification/monitoring,registration/serializati
on(CAR, ACR, VCS, ARB), leakage, reversal
(intention/unintentional), and buffer. He elaborated on
each point.
2:42:05 PM
Mr. Strauss continued to discuss slide 9. He likened the
buffer account to homeowners insurance.
Senator Bishop asked about forest fires in the
unintentional loss column. He understood that forest
regrowth would still capture 80 percent of the carbon of a
mature forest.
Mr. Strauss replied that, in general, a significant fire
event could destroy the seed. Although, a forest that was
adept to fires could maintain the seed. He remarked that as
a whole there would be a significant carbon event.
2:45:20 PM
Senator Bishop wondered whether that should be included in
a formula for a risk pool.
Mr. Strauss replied that there was an explicit calculation
of risk numbers for various threats, including fire. He
stated that the 18 percent number was the appropriate
number at the time of the study.
Senator Kiehl wondered whether there was someone who was
monitoring the insurance credits, to ensure the tight
relationship between the carbon pledge and what was
actually leaked out.
Mr. Strauss replied that the program would update over time
based on changing perceptions of risk. He stated that for
any specific single forest with a single catastrophic
event, resulting in an unintentional reversal, the forest
would not be able to produce the offset.
Senator Kiehl asked whether that was a rule, and who
enforces the rule.
Mr. Strauss replied that the American Carbon Registry
managed the entire program, with a programmatic system for
calculating the risk. He stated that there was a recent
update to the calculation systemwide.
Senator Kiehl surmised that there was no individual
enforcement.
2:49:54 PM
Co-Chair Stedman asked about how the carbon registry market
was regulated and controlled.
Mr. Strauss replied that there were two different markets:
compliance and voluntary. He stated that within the
compliance realm the Air Research Board was the ultimate
authority, but they utilized the services of the three most
well-known non-profit registries: the Climate Action
Reserve, the American Carbon Registry, and the Verified
Carbon Standard. He stated that in the voluntary space,
those three bodies individually operated separate
registries with carbon offset credits with their own
analyses and methodologies.
Co-Chair Stedman surmised that more nonprofits could be
created to contribute to the market.
Mr. Strauss replied that it operated on the integrity and
reputation of the various groups and the markets
appreciation of the organizations.
Co-Chair Stedman felt that there needed to be regulatory
oversight when dealing with "tying up property for hundreds
of years."
Co-Chair Olson agreed.
Mr. Strauss pointed to slide 10, "Alaska DNR Pilot
Projects":
Three areas were selected as pilot projects due to
their carbon stocking, accessibility, and timber
marketability
Three projects could collectively generate 10 million
offsets over 40-year life
>$80 million in revenue over 1st decade alone
2:55:40 PM
Co-Chair Stedman wondered whether there was potentially
harvestable timber included in the state forest areas.
Mr. Strauss replied that the map considered timber that
should be merchantable at some point during the forty-year
project life.
Co-Chair Stedman remarked that with such a small bit of
state-owned land in Southeast Alaska, he wondered why it
was a targeted area for the proposal.
Me. Strauss replied that it was the desire of the
Department of Natural Resources (DNR) to see how things
might perform in a variety of different locations. He noted
that there was an examination of potential in a given area.
Co-Chair Stedman noted that there was not much economic
opportunity in Southeast Alaska, and felt that it could
restrict the small amount of state forest.
2:58:16 PM
AT EASE
2:59:56 PM
RECONVENED
Co-Chair Olson HANDED the GAVEL to Senator Merrick.
Mr. Strauss looked at slide 12, "Development Components."
He stated that the developer would participate and enact
the entire project.
Mr. Strauss addressed slide 13, "Development Timeline." He
remarked that the chart showed a timeline associated with a
project. He stated that an efficient project would take
approximately 18 months from listing phase to sale.
3:05:36 PM
Senator Merrick asked about the source of funding for the
nonprofit organizations.
Mr. Strauss replied that they received a number of cents
for each issued credit.
3:06:09 PM
JOHN CROWTHER, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, introduced himself.
Senator Merrick OPENED public testimony.
3:06:40 PM
MIKE JONES, SELF, HOMER (via teleconference), spoke in
opposition to the bill.
3:07:41 PM
DAVE MAXWELL, SELF, PALMER (via teleconference), testified
against the bill.
3:10:18 PM
KEN GRIFFIN, SELF, WASILLA (via teleconference), spoke in
opposition to the legislation.
3:13:01 PM
KASSIE ANDREWS, SELF, ANCHORAGE (via teleconference),
testified in opposition to the bill.
3:15:48 PM
TODD LINDLEY, SELF, ANCHORAGE (via teleconference), spoke
against the bill.
3:17:54 PM
KEN HUCKEBA, SELF, WASILLA (via teleconference), testified
against the legislation.
3:20:38 PM
ED MARTIN, SELF, KENAI (via teleconference), spoke against
the bill.
3:23:24 PM
LYDIA SHUMAKER, SELF, WASILLA (via teleconference),
testified in opposition to the legislation.
Senator Merrick CLOSED public testimony.
SB 48 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 52 Amenemdents 1 and 2 Bishop.pdf |
SFIN 5/8/2023 1:30:00 PM |
SB 52 |
| SB 52 CS in SFin summary of changes 5-8-23.pdf |
SFIN 5/8/2023 1:30:00 PM |
SB 52 |
| SB 52 work draft version R.pdf |
SFIN 5/8/2023 1:30:00 PM |
SB 52 |
| SB 52 Public Testimony rec'd 050823.pdf |
SFIN 5/8/2023 1:30:00 PM |
SB 52 |