Legislature(2023 - 2024)SENATE FINANCE 532
05/09/2023 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB138 | |
| SB122 | |
| SB48 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 138 | TELECONFERENCED | |
| += | SB 122 | 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."
2:58:24 PM
RENA MILLER, SPECIAL ASSISTANT, OFFICE OF THE COMMISSIONER,
DEPARTMENT OF NATURAL RESOURCES, (DNR) addressed the fiscal
notes.
2:59:53 PM
CHRISTY COLLES, DIRECTOR, DIVISION OF MINING, LAND AND
WATER, DEPARTMENT OF NATURAL RESOURCES (via
teleconference), introduced herself. She spoke to the
fiscal note related to the leases portion of the bill.
3:01:27 PM
ASHLEE ADOKO, EXECUTIVE DIRECTOR, OFFICE OF PROJECT
MANAGEMENT AND PERMITTING, DEPARTMENT OF NATURAL RESOURCES
(via teleconference), spoke to the fiscal note.
3:03:02 PM
HELGE ENG, STATE FORESTER, DIVISION OF FORESTRY AND FIRE
PROTECTION, DEPARTMENT OF NATURAL RESOURCES (via
teleconference), spoke to the fiscal note.
3:05:12 PM
Senator Bishop wondered whether the there could be a shift
to defining it as DGF funds after the revenue began.
Ms. Miller replied in the affirmative.
Senator Merrick noted the two bills related to carbon. She
wondered which bill was more of a priority for the
administration.
Ms. Miller replied that the Department of Natural Resources
(DNR) would like both bills to have potential to generate
revenue.
3:07:11 PM
AT EASE
3:07:59 PM
RECONVENED
3:08:04 PM
Ms. Miller discussed the Sectional Analysis:
Section 1: Amends AS 36.30.850(b) to exempt the
Department of Natural Resources (DNR) from following
the state procurement code when contracting with third
parties for purposes related to the carbon offset
program established in Section 6. Requires notice by
DNR if the department elects to use the procurement
code.
Section 2: Amends AS 37.05.146(c) to allow revenue
from carbon offset credit sales to be treated as
designated program receipts. This revenue would be
deposited into a new Carbon Offset Revenue Fund
established in Section 6.
Section 3: Conforming to Section 4. Amends AS
38.05.075(a) to exempt state land leases for carbon
management purposes from a requirement to award leases
to the highest bidder at public auction or by sealed
bid and related terms when competitive interest has
been demonstrated, as Section 4 establishes procedures
specific to the carbon management purpose leases.
Section 4: Adds a new section to AS 38.05 authorizing
DNR to lease state land to third parties for carbon
management purposes.
Proposed AS 38.05.081(b): Provides an application
process for a state land lease for carbon
management purposes.
Proposed AS 38.05.081(c): Sets a process for
deciding between applications for the same land;
an aggrieved applicant may appeal within 20 days
of a decision.
Proposed AS 38.05.081(d): Caps land leases for
carbon management purposes at 55 years and
requires the lease include performance
conditions. Requires DNR to terminate a lease if
the land is not being used for the approved
purpose or if the lessee fails to meet lease
requirements after a reasonable opportunity to
come into compliance.
Proposed AS 38.05.081(e): Specifies a lessee does
not receive a preference right to purchase the
leased land.
Proposed AS 38.05.081(f): Requires lease
compensation be designed to maximize returns to
the state and be a form of compensation set out
in AS 38.05.073(m).
Requires separate accounting of lease revenue and
allows the Legislature to appropriate the lease
revenue to fund the department's leasing program.
Proposed AS 38.05.081(g): Applies standard
provisions relating to sublease, assignment,
renewal and extension to leases for carbon
management purposes.
Proposed AS 38.05.081(h): Requires DNR to make a
best interest finding, which includes public
notice of a preliminary decision for public
comment, before issuing a state land lease for
carbon management purposes. A finding must
include the reasonably foreseeable effects a
project may have on the state or local economy
and the anticipated revenue to the state.
Proposed AS 38.05.081(i): Requires state land
leased for carbon management purposes to remain
accessible by the public, to the extent possible,
for generally allowed uses such as hunting and
fishing.
Proposed AS 38.05.081(j): Requires an annual,
public report to the Legislature on detailed
information about the carbon management purpose
leasing program.
Proposed AS 38.05.081(k): Defines "carbon
management" to include greenhouse gas mitigation
measures and non-geologic carbon sequestration
projects.
Section 5: Conforming to Section 4, amends AS
38.05.102 such that at the end of a carbon management
lease if the state moves to sell or long-term lease
those same lands, the carbon management purpose lessee
is not granted a preferential right.
Section 6: Adds a new article within AS 38.95
establishing the carbon offset program at DNR through
enactment of AS 38.95.400 - 38.95.499. Defines a
process for DNR to undertake carbon offset projects
and creates a fund to receive project revenues.
Proposed AS 38.95.400: Establishes the carbon
offset program and allows DNR to contract with
third parties to carry out the new program. Caps
commissions in contracts to no more than 30
percent of the revenue generated by the carbon
offset project the contract relates to.
Explicitly disclaims application of the carbon
offset program to activities of private
landowners.
Proposed AS 38.95.410: Requires DNR to adopt
criteria to evaluate carbon offset projects on
state lands; makes land generally available for
carbon offset projects; and ensures projects are
not undertaken on legislatively designated lands
without legislative approval or unless allowed by
law. Requires a written finding that a project is
in the best interests of the state before a
project is undertaken; caps project terms at 55
years; and requires land used for a project to
remain open to the public for access, hunting and
fishing and other generally allowed uses.
Proposed AS 38.95.420: Allows DNR to enroll
projects with a registry and requires DNR to
maintain certain project records.
Proposed AS 38.95.430: Creates the carbon offset
revenue fund to receive revenue from the sale of
carbon offsets. Funds could be used for purposes
of the carbon offset program and to pay program
administrative costs. Appropriations to the fund
do not lapse.
Proposed AS 38.95.440: Requires legislative
approval to execute contracts that exceed $10
million in costs. Provides the Legislature 45
days if already in session, or 45 days once in
session if not already in session, to act.
Proposed AS 38.05.450: Requires an annual, public
report to the Legislature on specific, detailed
information about the Carbon Offset Program,
including the entities engaged in a project,
revenues, and project status.
Proposed AS 38.95.499: Defines 16 terms related
to the new program.
Section 7: Adds a new subsection to AS 41.15.300
making land within the Haines State Forest Resource
Management Area eligible for a carbon offset project.
Section 8: Conforming to Section 7. Amends AS
41.15.315(d) allowing Haines State Forest Resource
Management Area lands to be managed for a carbon
offset project.
Section 9: Conforming to Section 7. Adds a new
subsection to AS 41.15.315 enabling amendments to the
Haines State Forest Resource Management Area
management plan to allow for carbon offset projects. A
plan must identify land appropriate for a carbon
offset project and a project must be consistent with
the management plan.
Section 10: Adds a new subsection to AS 41.17.200
authorizing lands within the State Forest system to be
used for carbon offset projects.
Section 11: Conforming to Section 10. Amends AS
41.17.220 so State Forest lands are managed under the
sustained yield principle, AS 41.17, a forest
management plan, and, as applicable, a carbon offset
project.
Section 12: Conforming to Section 10. Amends AS
41.17.230(a) to include carbon offset projects among
the forest uses a forest management plan must consider
and permit when compatible with the primary purpose of
State Forests.
Section 13: Conforming to Section 10. Adds a new
subsection to AS 41.17.230 enabling amendments to
State Forest management plans to allow for a carbon
offset project. Requires plans to identify land
appropriate for a carbon offset project and requires a
project be consistent with the plan.
Section 14: Disallows oil and gas production tax lease
expenditures for capital costs incurred for a carbon
management purpose lease or a state carbon offset
project.
Section 15: Sets an immediate effective date for the
bill.
3:11:36 PM
JOHN BOYLE, COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES,
thanked the committee for hearing the bill. He stated that
carbon bills were important at DNR.
SB 48 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| a. SB138.Omnibus Elections sponsor statement 04-26-23.pdf |
SFIN 5/9/2023 1:30:00 PM SSTA 4/27/2023 3:30:00 PM |
SB 138 |
| SB138.Letters.pdf |
SFIN 5/9/2023 1:30:00 PM SSTA 5/2/2023 3:30:00 PM |
SB 138 |
| SB 138 draft powerpoint sfin.pdf |
SFIN 5/9/2023 1:30:00 PM |
SB 138 |
| SB 138 Public Testimony rec'd 050923.pdf |
SFIN 5/9/2023 1:30:00 PM |
SB 138 |
| SB 122 CS Summary of Changes - H to Y 5-9-23.pdf |
SFIN 5/9/2023 1:30:00 PM |
SB 122 |
| SB 122 work draft version Y.pdf |
SFIN 5/9/2023 1:30:00 PM |
SB 122 |
| SB 138 Sectional Analysis.pdf |
SFIN 5/9/2023 1:30:00 PM |
SB 138 |