05/12/2023 01:00 PM Senate FINANCE

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."                                                                             
                                                                                                                                
1:09:28 PM                                                                                                                    
                                                                                                                                
KEN  ALPER, STAFF,  SENATOR DONNY  OLSON, explained  the new                                                                    
fiscal  note  from  the  Alaska  Oil  and  Gas  Conservation                                                                    
Commission  (AOGCC).  He  noted that  within  the  committee                                                                    
substitute there was a primacy  section which related to the                                                                    
governors   other   carbon  bill   that  was   about  carbon                                                                    
injection. He  stated that once  the other bill  was enacted                                                                    
the state would be permitting  and hold responsibility for a                                                                    
certain type  of injection well.  He remarked that  it would                                                                    
take a few years to go  through the process, so there was an                                                                    
immediate need  for obtaining the  federal tax  credits that                                                                    
the  companies  would  be pursuing.  He  stressed  that  the                                                                    
implementation  of  the other  bill  carried  costs for  the                                                                    
AOGCC.                                                                                                                          
                                                                                                                                
1:10:59 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:11:19 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:11:23 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  MOVED to ADOPT Amendment  1, 33-GS1372\U.2                                                                    
(Dunmire, 5/12/23).                                                                                                             
                                                                                                                                
Co-Chair Olson OBJECTED for discussion.                                                                                         
                                                                                                                                
Mr.  Alper  explained  the amendment.  He  stated  that  the                                                                    
Department of  Natural Resources (DNR) found  some technical                                                                    
clarifications, so  the amendment  held some  sequencing and                                                                    
clarity. He  stressed that the amendment  had no substantive                                                                    
changes.                                                                                                                        
                                                                                                                                
Co-Chair  Olson  WITHDREW  the  OBJECTION.  There  being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
1:12:29 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:13:03 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:13:15 PM                                                                                                                    
                                                                                                                                
Senator  Bishop MOVED  to ADOPT  Amendment 2,  33-GS1372\U.2                                                                    
(Dunmire, 5/11/23).                                                                                                             
                                                                                                                                
Co-Chair Olson OBJECTED for discussion.                                                                                         
                                                                                                                                
Senator  Bishop remarked  that the  amendment would  take 20                                                                    
percent of  the program to  be deposited into  the Renewable                                                                    
Energy Grant Fund inside of eight years.                                                                                        
                                                                                                                                
Co-Chair  Olson  WITHDREW  the  OBJECTION.  There  being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Senator Bishop  MOVED to  REPORT SB  48 from  committee with                                                                    
individual recommendations, and attached fiscal notes.                                                                          
                                                                                                                                
Senator Kiehl  OBJECTED for discussion.  He felt  that there                                                                    
were some constitutional questions  related to the potential                                                                    
for  royalty.  He stressed  that  the  questions had  unsure                                                                    
answers.                                                                                                                        
                                                                                                                                
1:18:03 PM                                                                                                                    
                                                                                                                                
RENA  MILLER,   SPECIAL  ASSISTANT,   COMMISSIONERS  OFFICE,                                                                    
DEPARTMENT  OF   NATURAL  RESOURCES   (via  teleconference),                                                                    
stated  that the  Department of  Law (LAW)  had communicated                                                                    
that there was  no current law defining carbon  as a mineral                                                                    
for legal purposes. She stated  that the governor had agreed                                                                    
to  request  a  written  opinion of  whether  carbon  was  a                                                                    
mineral  resource. She  stated  that DNR  would conduct  the                                                                    
program in accordance with constitution and state laws.                                                                         
                                                                                                                                
Senator Kiehl appreciated the executive branchs desires.                                                                        
                                                                                                                                
Ms. Miller stressed that the  programs would be conducted in                                                                    
accordance with state rules and laws.                                                                                           
                                                                                                                                
Senator  Kiehl  WITHDREW  his   OBJECTION.  There  being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
1:20:13 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:20:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CSSB 48(FIN)  was REPORTED out  of committee with  three "no                                                                    
recommendations", three  "do pass" recommendations  and with                                                                    
one  new  fiscal  note  from  the  Department  of  Commerce,                                                                    
Community  and Economic  Development,  and three  previously                                                                    
published fiscal notes: FN 4(DNR), FN 5(DNR), FN 6(DNR).                                                                        
                                                                                                                                
1:21:13 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:38:46 PM                                                                                                                    
RECONVENED