04/21/2023 03:30 PM Senate RESOURCES

           SB  48-CARBON OFFSET PROGRAM ON STATE LAND                                                                       
                                                                                                                                
4:19:08 PM                                                                                                                    
CO-CHAIR  Giessel  reconvened  the   meeting  and  announced  the                                                               
consideration  of 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."                                                                                               
                                                                                                                                
4:19:37 PM                                                                                                                    
CO-CHAIR GIESSEL opened public testimony on SB 48.                                                                              
                                                                                                                                
4:19:59 PM                                                                                                                    
TODD LINDLEY, representing self,  Anchorage, Alaska, testified in                                                               
opposition  to SB  48. He  warned  that the  bill would  increase                                                               
forest density in order to compete  in the carbon market. He took                                                               
issue  with a  presentation and  testimony  he heard  in a  House                                                               
committee because  the expert testimony  came from NGOs  that are                                                               
directly affiliated  with the world  economic forum.  He reported                                                               
that  one  company is  incorporated  in  Columbia  and has  a  90                                                               
percent fraud  rate. He  questioned the  reason for  letting such                                                               
people do business in Alaska.  He continued that the company Anew                                                               
was commissioned  by the  Dunleavy administration  using taxpayer                                                               
money  to identify  the carbon  potential for  offsets. He  noted                                                               
that during the  election cycle there was no  mention that carbon                                                               
offset would be a strategic policy  for the state. He opined that                                                               
instead  of  debating  the  policy,  the  legislature  should  be                                                               
investigating  collusion between  the administration  and foreign                                                               
NGOs.                                                                                                                           
                                                                                                                                
4:21:37 PM                                                                                                                    
KEN   HUCKEBA,  representing   self,   Wasilla,  Alaska,   stated                                                               
opposition  to SB  48.  He maintained  that  Alaskans were  being                                                               
asked to finance a risky  venture with their lands and resources.                                                               
He highlighted the  study presented in August 2022  that was paid                                                               
for with  public funds to  the company Blue Source,  which became                                                               
Anew. He  said a  key point  in the report  was that  offsets are                                                               
verifiable and  registered on an approved  offset registry, which                                                               
is  another partner  organization. He  suggested the  legislature                                                               
should  investigate the  administration  for  collusion with  the                                                               
aforementioned NGOs. He maintained that  if the bill becomes law,                                                               
the administration  will cede  power to  the partner  NGOs, which                                                               
will exclude future legislative oversight and control.                                                                          
                                                                                                                                
4:23:28 PM                                                                                                                    
LYDIA  SHUMAKER,  representing   self,  Wasilla,  Alaska,  stated                                                               
opposition to SB  48. She said it's not clear  what the bill will                                                               
cost but she is  aware that 25 percent of the  revenue will go to                                                               
a third  party such as  Anew or Vera.  Another 18 percent  of the                                                               
revenue is supposed to go to  insurance and 60 percent will go to                                                               
Alaska. However, none  of the fiscal notes list  any revenue. She                                                               
pointed out that  language on page 9, line  15 precludes Alaskans                                                               
from  implementing  regulations  for   this  industry.  She  also                                                               
pointed  out  that decision-making  by  the  commissioner has  no                                                               
legislative  oversight. She  continued that  the main  reason she                                                               
opposes SB 48 is that it  deprives future generations in favor of                                                               
elite technocrats.                                                                                                              
                                                                                                                                
4:25:24 PM                                                                                                                    
KASSIE  ANDREWS,  representing  self, Anchorage,  Alaska,  stated                                                               
opposition to  SB 48. She  said the  basis of the  legislation is                                                               
about creating revenue,  but the revenue line in  the fiscal note                                                               
is blank.  She opined that the  concept does not need  to be fast                                                               
tracked before the real risks  are understood. Another reason for                                                               
concern  is  that Vera,  a  nonprofit  incorporated in  Columbia,                                                               
approves three-quarters  of all voluntary carbon  offset projects                                                               
that  have  been found  to  have  fraud  rates  of more  than  90                                                               
percent. She said  the investigation by Guardian  found that only                                                               
a  handful  of  Vera's  rainforest projects  showed  evidence  of                                                               
reduced deforestation.  Ninety-four percent of the  projects were                                                               
found to  have no benefit  to the  climate and should  never have                                                               
been approved.  She emphasized that no  additional revenue should                                                               
be  spent on  this  proposal  and urged  removing  the bill  from                                                               
consideration. She  asserted that SB  49 had similar  issues with                                                               
fraud.                                                                                                                          
                                                                                                                                
4:27:08 PM                                                                                                                    
BERT  HOUGHTALING, representing  self, Big  Lake, Alaska,  stated                                                               
opposition  to SB  48.  He described  carbon  credits and  carbon                                                               
capture as a  Ponzi scam that ensures that  special interests get                                                               
richer and everybody else gets poor.  He took issue with the fact                                                               
that Alaskans  were not  informed about  this notion  earlier. He                                                               
said the  administration describes  carbon offset in  rosy terms,                                                               
but he wants  the public to remember who will  ultimately pay for                                                               
it. He predicted  that nobody in the room could  provide any data                                                               
that supports what he believes  to be a money-grabbing scheme. He                                                               
said the  bill relies on  theories and  feelings and he  does not                                                               
support anything related to carbon credits and carbon capture.                                                                  
                                                                                                                                
4:29:37 PM                                                                                                                    
GEORGE  PIERCE,   representing  self,  Kasilof,   Alaska,  stated                                                               
opposition  to  SB  48.  He  called carbon  capture  a  joke  and                                                               
expensive failure.  He cited examples of  carbon capture failures                                                               
in Texas and New Mexico and the monetary losses.                                                                                
                                                                                                                                
4:32:12 PM                                                                                                                    
KEN   GRIFFIN,  representing   self,   Wasilla,  Alaska,   stated                                                               
opposition  to  SB   48.  He  described  the  bill   as  a  clear                                                               
boondoggle.  This  idea  had  not been  shown  to  be  profitable                                                               
anywhere. He asked how this  would grow the economy, get citizens                                                               
to  work, or  protect state  sovereignty.  He said  it won't.  He                                                               
questioned the wisdom  of locking up large swaths of  land for 55                                                               
years in the  hope that the credits would be  valuable at the end                                                               
of  that time.  He maintained  that this  cedes power  to the  UN                                                               
because  that's who  came up  with climate  goals. His  belief is                                                               
that the  sovereign power should be  held at the state  level. He                                                               
said  the  bill  provides  for recreational  activities  on  this                                                               
leased land but what matters is  the ability to develop the land.                                                               
He restated opposition to SB 48.                                                                                                
                                                                                                                                
4:34:40 PM                                                                                                                    
CO-CHAIR GIESSEL  closed public testimony  on SB 48 and  held the                                                               
bill in committee.