Legislature(2025 - 2026)BUTROVICH 205
01/29/2025 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Carbon Storage Program Update by Department of Natural Resources (dnr) | |
| Presentation(s): Alaska Oil and Gas Conservation Commission (aogcc) Carbon Storage Class Vi Primacy Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
January 29, 2025
3:30 p.m.
MEMBERS PRESENT
Senator Cathy Giessel, Chair
Senator Bill Wielechowski, Vice Chair
Senator Matt Claman
Senator Forrest Dunbar
Senator Scott Kawasaki
Senator Shelley Hughes
Senator Robert Myers
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): CARBON STORAGE PROGRAM UPDATE BY DEPARTMENT OF
NATURAL RESOURCES (DNR)
- HEARD
PRESENTATION(S): ALASKA OIL AND GAS CONSERVATION COMMISSION
(AOGCC) CARBON STORAGE CLASS VI PRIMACY UPDATE
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JOHN CROWTHER, Deputy Commissioner
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: introduced the Department of Natural
Resources Carbon Storage Program Update
HALEY PAINE, Deputy Director
Division of Oil and Gas
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Presented the Department of Natural
Resources Carbon Storage Program Update
GREGORY WILSON, Geology Commissioner
Alaska Oil and Gas Conservation Commission (AOGCC)
Anchorage, Alaska
POSITION STATEMENT: Presented the Alaska Oil and Gas
Conservation Commission, Carbon Storage Class VI Primacy Update.
CHRIS WALLACE, Senior Petroleum Engineer
Alaska Oil and Gas Conservation Commission
Anchorage, Alaska
POSITION STATEMENT: Answered questions on the Alaska Oil and Gas
Conservation Commission, Carbon Storage Class VI Primacy Update.
ACTION NARRATIVE
3:30:46 PM
CHAIR GIESSEL called the Senate Resources Standing Committee
meeting to order at 3:30 pm. Present at the call to order were
Senators Dunbar, Myers, Claman, Wielechowski, Kawasaki, Hughes
and Chair Giessel.
^PRESENTATION(S): CARBON STORAGE PROGRAM UPDATE BY DEPARTMENT OF
NATURAL RESOURCES (DNR)
PRESENTATION(S): CARBON STORAGE PROGRAM UPDATE BY DEPARTMENT OF
NATURAL RESOURCES (DNR)
3:31:50 PM
CHAIR GIESSEL announced the presentation titled Carbon Storage
Program Update by Department of Natural Resources (DNR).
3:32:20 PM
JOHN CROWTHER, Deputy Commissioner, Department of Natural
Resources, Anchorage, Alaska, said this presentation was
primarily about the rocks and if the committee would like a
presentation about the trees, that could be arranged.
3:32:44 PM
HALEY PAINE, Deputy Director, Division of Oil and Gas,
Department of Natural Resources, Anchorage, Alaska moved to
slide 2 and outlined the contents of the presentation:
[Original punctuation provided.]
CONTENTS
1. Carbon capture, use & storage (CCUS)
2. Agency roles under House Bill 50 (2024)
3. Department of Natural Resources (DNR)
implementation of House Bill 50 (2024)
4. DNR regulations
5. Summary
3:33:44 PM
MS. PAINE moved to slide 3. Slide 3 includes a graphic depiction
of the carbon capture, utilization and storage (CCUS) process.
She said the process allows for the capture of carbon dioxide
(CO2) which is then dehydrated, compressed into a liquid-like
state and then transported to a location where it can be
injected very deep underground, at least 2,600 feet deep. She
said the injection program would be managed by the [Alaska Oil
and Gas Conservation Commission] (AOGCC):
[Original punctuation provided.]
WHAT IS CCUS?
Carbon capture, utilization and storage is a process
that:
• Captures carbon dioxide (CO2) emissions from:
• industrial processes
• point sources like coalfired power plants, or
• directly from the air, and
• Reuses or stores it so it will not enter the
atmosphere
3:35:07 PM
CHAIR GIESSEL affirmed and appreciated the detailed overview of
the CCUS process.
3:35:31 PM
MS. PAINE moved to and narrated slide 4. She said House Bill 50,
passed in 2024, provided for Department of Natural Resources
(DNR) and Alaska Oil and Gas Conservation Commission (AOGCC) to
move forward with carbon storage. She noted that carbon
utilization was already permitted under law and was handled
through oil and gas leases, namely through enhanced oil
recovery.
MS. PAINE explained that DNR required legislation to allow
licensure of the state's pore space for dedicated carbon
storage. AOGCC needed legislation to empower them with
subsurface regulatory powers, including the protection of
property interest, amalgamation of rights, and very
specifically, the class six injection well program:
[Original punctuation provided.]
CORE PURPOSES OF HB 50 (2024)
Make Alaska's subsurface resources available for
maximum use
1. Enables DNR to lease state lands for geologic
storage of carbon dioxide and issue right-of-way
leases for carbon dioxide transportation pipelines
2. Empowers the Alaska Oil and Gas Conservation
Commission (AOGCC) to regulate the geologic storage
of carbon dioxide on all lands in the state,
including protection of correlative rights
3:36:33 PM
MS. PAINE moved to and narrated slide 5. She explained the role
of DNR in some detail and briefly described the roles of the
Alaska Oil and Gas Conservation Commission (AOGCC) and the
Department of Environmental Conservation (DEC) as defined by
House Bill 50, passed in 2024. She said DNR served as the
landowner for the CCUS program, like its role in oil and gas,
licensing and leasing the state's mineral interests for the
benefit of Alaskans:
[Original punctuation provided.]
AGENCY RESPONSIBILITIES
DNR - Landowner
• Manage the state's pore space resources for the
benefit of Alaskans
• Issue carbon storage exploration licenses &
leases
• Commercial payments
• Work commitments and annual reporting
• Permitting and compliance of operations
• Multiple-use management
• Review right-of-way permits for CO2 pipelines
• Perform long-term monitoring of facility after
regulatory closure
• Carbon storage closure trust funds
3:39:22 PM
MS. PAINE briefly described AOGCCs role under House Bill 50. She
described aspects of the Class VI Well Primacy Programs for the
injection of CO2 underground.
AOGCC Subsurface Regulator
• Quasi-judicial agency with regulatory powers over
subsurface of all lands in state
• Issue storage facility permits
• Safeguard human health and the environment
from underground injection
• Class VI well primacy
• Protect other mineral interests and
amalgamate property rights
• Waste prevention determinations
• Assess storage capacity and volumes
• Review and issue site completion certifications
3:40:22 PM
MS. PAINE moved to slide 6. She said House Bill 50 passed May
15, 2024, providing the statutes to enact the provisions of the
CCUS program. DNR filed the regulatory program, including
specific qualifications and mandates with the lieutenant
governor and the program will go into effect February 16th,
2025. She said DNR was also working to develop model agreements:
licenses and leases and noted that all contracts DNR enters into
will be public documents. She said DNR had not yet received any
applications:
[Original punctuation provided.]
DNR STEPS TO IMPLEMENT HB50 (2024)
Statutes Enacted > Regulations Filed > Model
Agreements In Progress > Applications In Progress
3:41:42 PM
MS. PAINE moved to slide 7 and noted that the regulatory process
is very public. She said DNR reached out to other jurisdictions,
including the Texas General Land Office, the Wyoming State Lands
Office, the Louisiana Department of Natural Resources, to learn
about the development of their CCUS programs. The Alaska State
and the Federal Bureau of Land Management were also resources
for DNRs process:
[Original punctuation provided.]
REGULATIONS DEVELOPMENT TIMELINE
DNR process with inputs from Department of Law and
public comments
[The timeline on slide 7 included the following
points.]
Internal review and drafting
May 15, 2024 Legislature passes HB 50
June 21, 2024 Scoping notice
Integrate public input
July 23, 2024 4 comments received
Department of Law review
July 31, 2024 HB 50 signed
October 23, 2024 Draft regulations published
Integrate public input and Department of Law review
December 2, 2024 21 comments received
January 17, 2025 Revised regulations transmitted to Lt.
Governor
February 16, 2025 Final regulations effective date
3:43:53 PM
SENATOR KAWASAKI asked whether four comments was typical for
regulations development process.
3:44:11 PM
MS. PAINE said there is significant variance in the amount of
public input received for various projects. She said her only
other experience developing a regulations package generated
fewer comments, but she expected more public input during the
application period for specific leases. More project specifics
generally result in more public input.
3:44:50 PM
SENATOR KAWASAKI noted the number of comments and communications
from prospective applicant companies, the negative fiscal note
for House Bill 50 suggesting that revenue to the state may be
multiple-$100 million and the [45]Q tax credits from the federal
government. He asked whether DNR expected a lot of interest [in
Alaska's CCUS program].
3:45:43 PM
MS. PAINE said public participation in the regulatory
[development] phase is not necessarily indicative of the number
of applications that may be received once the program is open.
She noted that DNR received comments from entities that received
federal announcements of [upcoming] projects that made
headlines. She said there did seem to be interest in moving
forward with projects.
MS. PAINE said, to her knowledge, the [Credit for Carbon Capture
Projects] (45Q) tax credit program was still in effect. She said
agencies were still working out how the program would be
implemented and there were no companies in Alaska actively
receiving them.
3:47:00 PM
SENATOR WIELECHOWSKI quoted the governor's 2023 state of the
state address, "Alaska can realize revenue to the tune of
billions of dollars, that's billions of dollars per year by
creating a carbon management system." He noted that there was no
mention of this revenue in any of the governor's 2024, 2025 or
2026 fiscal plans and it is not mentioned in any of the revenue
forecasts. He asked whether the administration still believes
the CCUS program will generate billions of dollars in revenue
for the state and when that could be expected. He noted the
current $1.5 billion deficit.
3:47:46 PM
MR. CROWTHER described several potential scenarios, including
small in-state projects, large North Slope projects, and
international carbon import projects that could produce revenue.
He highlighted significant injection fees that could be
generated from large-scale industrial injection and said there
is interest from the Korean and Japanese governments in these
projects, but no specific timeline had been set. He emphasized
that while these projects hold promise for substantial state
revenues, they are several years away from development.
3:49:00 PM
SENATOR WIELECHOWSKI noted recent executive orders and actions
by the Trump administration and asked whether Alaska could
expect support for the CCUS efforts from the administration.
3:49:18 PM
MR. CROWTHER noted the uncertainty regarding future actions by
the president or Congress to modify or expand the 45Q tax
credits but emphasized the historical bipartisan support for the
program. He said DNR would continue to closely monitor
developments, as the credits could enhance resource production
in Alaska and foster international collaboration for carbon
management, aligning with the president's agenda on clean
energy.
3:50:23 PM
SENATOR CLAMAN asked whether the four comments [noted during the
regulatory development process] were public comments.
3:50:32 PM
MR. CROWTHER affirmed that they were public comments provided
during the scoping period when DNR was assessing the concept. He
said DNR subsequently received 21 public comments on the
specific draft regulations.
3:50:49 PM
SENATOR CLAMAN asked whether the sources of the first four
comments could be shared.
3:50:55 PM
MS. PAINE said two entities who commented were Santos and
[Alaska Oil and Gas] (AOGA) on behalf of some of their members.
She said she could follow up with names of the other two.
3:51:18 PM
SENATOR CLAMAN asked that DNR provide all 25 comments to the
committee.
3:51:31 PM
SENATOR HUGHES said she assumed the first four comments
represented industry and asked whether that was true of the
latter 21 comments or if some of those were from concerned
citizens. She noted strong constituent opposition to her support
for House Bill 50 based on the [carbon capture and storage]
concept. She also noted early concern from industry
representatives that it was difficult to secure funding from
financial institutions. She asked whether there were indications
from the new federal administration regarding its position [on
CCUS].
3:52:50 PM
MS. PAINE said some of the 21 comments on the draft regulations
were from concerned citizens. She said they expressed concerns
about health and safety and about general policy. She said she
would make the comments available to the committee.
3:53:17 PM
MS. PAINE moved to slide 8 and described some of the changes to
the regulations:
[Original punctuation provided.]
CARBON STORAGE REGULATIONS
• Amended 11 AAC 05.110
• $500 application fee for carbon storage lease
or license
• $250 transfer of interest fee
• Amended 11 AAC 80.045
• Define field gathering line for purposes of
carbon dioxide transportation
• Amended 11 AAC 84 to add new Article 9, Carbon
Storage Licensing and Leasing
• Final regulations effective Feb. 16, 2025
3:55:12 PM
MS. PAINE moved to slide 9 and reiterated that DNR worked
various other jurisdiction to develop Alaska's carbon storage
leasing program. She highlighted minimum qualification
requirements, competitive leasing provisions to maximize the
constitutionally required benefit to the state and the multiple
facets considered for best interest findings:
[Original punctuation provided.]
ARTICLE 9 REGULATIONS
Regulation Summary
84.1000 Minimum qualifications Applicant must
demonstrate to the satisfaction of the
commissioner that they possess the ability
to undertake and complete large scale
projects, including obtaining and
complying with state and federal permits
and meeting financial surety requirements
84.1005 Carbon storage exploration license
applications Provides process for and
application requirements of a carbon
storage exploration license; work
commitment becomes basis for annual
reporting and conversion to lease
84.1010 Call for competing proposals Notice and
timing requirements for competing
proposals on carbon storage exploration
license applications
84.1015 Best interest findings Scope of
administrative review on applications;
elements include geologic structure and
descriptions, current and projected uses
of the area, reasonably foreseeable
effects of carbon storage operations,
environmental mitigation measures, a
pplicant qualifications and commercial
terms to the State of Alaska
84.1020 Competitive bidding procedure; assessment
criteria Processes for competitive sale
and exercise of preferential right under
AS 38.05710(g)
84.1025 License Administration Reporting and
data submission requirements
84.1030 Default by licensee; termination,
revocation, surrender of a license
Establishes procedures, rights, and
responsibilities for default, termination,
and surrender of a license
84.1035 Conversion of carbon storage license to
lease; lease provisions Establishes the
procedure and requirements for converting
a license to a lease; specifies
documentation required by a licensee
requesting to modify commercial terms upon
conversion to lease
84.1040 Transition from enhanced oil recovery
operations to carbon storage operations;
lease provisions Application
requirements for an enhanced-oilrecovery
(EOR) reservoir transitioning to carbon
storage, best interest finding
determination, and lease provisions
84.1045 Default by lessee; termination and
surrender of a carbon storage lease
Establishes procedures, rights, and
responsibilities for default, termination,
and surrender of a lease based on whether
carbon storage injection operations have
commenced
84.1050 Carbon storage lease unitization C
Establishes procedures and requirements
for unitizing carbon storage leases
84.1055 Assignments Establishes procedures and
requirements for assigning interest in
carbon storage exploration licenses and
leases, which must be approved by the
commissioner
84.1060 Application for approval of assignment
Provides for timing of assignment
application, AOGCC documentation, and
effective date if approved
3:57:41 PM
SENATOR DUNBAR asked which regulations changed and how they
changed because of public input.
3:58:03 PM
MS. PAINE affirmed that she would address those changes. She
noted public comments reflecting the importance of multiple use
consideration [for public lands] and the value of a
comprehensive best interest finding process.
3:59:00 PM
MS. PAINE moved to slide 10 and said carbon storage development
was different from oil and gas in the [project] end of life
stage. With oil and gas, the end of production is essentially
the end of the lease. With carbon storage projects, through the
Environmental Protection Agency (EPA) Class VI wells program,
the land must be monitored for a default period of at least 50
years post injection. The DNR CCUS regulations clarified what is
required during the 50-year period, including a plan of
abandonment and restoration and she said it was this section of
the regulations that most reflected public comment:
[Original punctuation provided.]
ARTICLE 9 REGULATIONS
Regulation Summary
84.1065 Plan of development; application
requirements Reporting requirements
detailing proposed activities for the next
year, explanations for deviations from
prior approved plans, and modifications of
the commissioner to ensure lease
compliance
84.1070 Plan of operations; application
requirements; completion report
Application requirements for on the ground
operations, including engineering plans,
schedule of events, and surface estate
owner protections; completion reporting
for cessation of operations
84.1075 Surety requirements Establishes
requirements for bonding or other
acceptable forms of surety of performance
under the conditions of a carbon storage
license or lease and specifies conditions
for release
84.1080 Damages Requires a licensee or lessee to
pay damages and indemnify the state in the
case of claims made by surface owners in
accordance with AS 38.05.130
84.1085 Abandonment and restoration plan;
application for lease closure Requires a
plan for returning the leased area to a
condition satisfactory to the commissioner
upon cessation of operations, including
annual reporting and review of
infrastructure maintained during the post-
injection monitoring period and
certification by the DNR commissioner to
AOGCC that conditions are met for issuance
of certificate of completion
84.1090 Long-term monitoring and maintenance of
leased area Data submission requirements
and obligations of a carbon storage
facility operator prior to the department
assuming responsibility for long-term
monitoring of a facility issued a
certificate of completion; provisions for
expenditures from the carbon storage
facility trust fund and notification to
landowners prior to entry
84.1095 Confidentiality of records Requests for
confidentiality of records under AS
38.05.035(a)(8) and limitations
84.1099 Definitions Defines terms used in the
adopted regulations in 11 AAC 84
4:00:52 PM
MS. PAINE moved to and narrated slide 11, concluding the
presentation:
[Original punctuation provided.]
SUMMARY
• DNR filed regulations with Lieutenant Governor
January 17, 2025, to enact provisions of HB50 (2024)
• DNR is prepared to receive applications starting
February 16, 2025, for carbon storage exploration
licenses
• Website under development with technical database to
assist in site screening set for 1st Quarter 2026
4:01:57 PM
CHAIR GIESSEL thanked Department of Natural Resources (DNR) for
the presentation.
4:02:26 PM
At ease.
4:03:23 PM
CHAIR GIESSEL reconvened the meeting and asked that comments
made during the "at ease" be repeated.
4:03:27 PM
MS. PAINE, responding to a question by Senator Hughes, said
there had not been any CCUS program applicants to date but that
DNR was in communication with all the parties who sought federal
grant funding to be able to move forward with carbon storage.
She said there were two carbon safe entities waiting for
applications to be available. In addition, a consortium
consisting of K-line, Sumitomo and Hilcorp have considered site-
specific studies in Cook Inlet for potential carbon storage. She
said DNR was communicating with the consortium about the
regulatory process and when applications would be available.
^PRESENTATION(S): ALASKA OIL AND GAS CONSERVATION COMMISSION
(AOGCC) CARBON STORAGE CLASS VI PRIMACY UPDATE
PRESENTATION(S): ALASKA OIL AND GAS CONSERVATION COMMISSION
(AOGCC) CARBON STORAGE CLASS VI PRIMACY UPDATE
4:04:32 PM
CHAIR GIESSEL announced the presentation: Carbon Storage Class
VI Primacy Update by Alaska Oil and Gas Conservation Commission
(AOGCC).
4:05:02 PM
GREGORY WILSON, Geology Commissioner, Alaska Oil and Gas
Conservation Commission (AOGCC), Anchorage, Alaska, introduced
himself and said he would lead the presentation of the Alaska
Oil and Gas Conservation Commission's (AOGCC) Carbon Storage
Class VI Primacy Update. He noted AOGCC personnel on hand to
assist.
4:06:20 PM
MR. WILSON moved to slide 2 and said the primary goal for the
presentation was to answer the committee's questions; the
outline would guide the discussion:
[Original punctuation provided.]
Topics
• Timeline
• Budget
• Public Outreach
• Steps to Primacy
4:06:45 PM
MR. WILSON moved to slide 3 and provided details forkaw points
on the timeline. He said the goal of the regulatory framework,
was to incorporate both HB 50 and EPA class six requirements.
MR. WILSON said the public scoping hearing held November 7, 2024
followed a statewide public notice announcing the carbon storage
Class VI primacy application process. Six comments were received
from various stakeholders, including [Arctic Slope Regional
Corporation] (ASRC), Santos, Steve Schmidt, the Susitna River
Coalition, the Center for Biological Diversity, and Santa Claus:
[Original punctuation provided.]
Timeline
EPA Engagement & Draft Regulations January 2024
Public Scoping Hearing November 2024
Final Draft Regulations February 2025
Legal Review (1 month) March 2025
Public Comment (2 months) April 2025
Submit EPA Primacy Application May 2025
Primacy 12to24 Months
4:09:39 PM
SENATOR KAWASAKI asked where other oil and gas producing states
are [in the CCUS regulatory process] compared to Alaska.
4:10:05 PM
MR. WILSON said North Dakota has had primacy for quite a few
years. He said Wyoming, Louisiana, Texas were not much more than
a year ahead [of Alaska].
4:10:25 PM
CHRIS WALLACE, Senior Petroleum Engineer, Alaska Oil and Gas
Conservation Commission, Anchorage, Alaska, said West Virginia
recently received Class VI primacy; otherwise, Alaska was right
there in the mix of other states in the primacy application
process.
4:11:00 PM
MR. WILSON moved to slide 4 and summarized the expected funding
for AOGCC's carbon storage work. He noted that there was funding
redundancy with the EPA grant currently, but that EPA funding
was under current executive orders in Washington [D.C.]:
[Original punctuation provided.]
Carbon Storage - Funding and Grants
State Funding:
HB50 (2024)
• FY2025 $388,000 personnel, $500,000 contractual
services, and $20,000 commodities
• FY2026 $388,000 personnel, $350,000 contractual
services
US EPA Class VI Grant:
$1,930,000 grant award
• Award Date: November 18, 2024hat there was
funding redun
• Grant Period: October 1, 2024 September 30,
2029.
• Total Amount: $1,930,000 (over five years).
• Annual Breakdown ($386,000/year):
Personnel: $196,852.80 Fringe Benefits: $97,377.60
Supplies: $1,769.60 Contractual: $90,000.00
4:12:44 PM
SENATOR WIELECHOWSKI said he was glad to hear AOGCC was saving
money. He asked whether AOGCC attempted to hire and/or fill
contracts for services or if they over-estimated their needs.
4:13:07 PM
MR. WILSON said the initial allocation for contractual services
for fiscal year 2025 was likely an overestimate. He said AOGCC
established requests for service agreements (RSAs) with the
University of Alaska Fairbanks (UAF) and with the Department of
Law (Department of Law). The UAF RSA was for $65,000 for an
outreach program. He said it was unclear whether the Department
of Law would bill AOGCC for services provided.
4:14:11 PM
SENATOR WIELECHOWSKI asked whether AOGCC would return unspent
money to the general fund.
4:14:18 PM
MR. WILSON affirmed that that was the expectation.
4:14:42 PM
MR. WILSON moved to slide 5 and described the collaborative
efforts between AOGCC, UAF and Department of Natural Resources
(DNR). He noted that the outreach program involving the
University of Alaska had been conducted, including a statewide
poll and community meetings in Fairbanks, Anchorage, and Kenai,
with a future meeting planned for Utqiagvik. He said DNR
independently secured a grant for a CCUS database, supported by
data from the AOGCC through a RSA. The efforts also include
participation in the UAS CCUS workgroup and initiatives related
to CO2 reduction and EERC engagement:
[Original punctuation provided.]
Carbon Storage - Outreach and Engagement
Public Notice of Scoping Hearing held November 7,
2024
• Received 6 comments Available on our website
CCUS Outreach Program
• Series of townhalls conducted in collaboration
with DNR and partners
• Locations visited: Fairbanks, Anchorage and Kenai
• Final event planned for Utqiagvik March 3, 2025
Other Activities
• UAF CCUS Workgroup participation
• PCOR and EERC Engagement
• Supporting DNR in CCUS Database Development
More information available on our website:
https://www.commerce.alaska.gov/web/aogcc/ccus.aspx
4:15:51 PM
SENATOR HUGHES asked for acronym definitions for "PCOR" and
"EERC".
4:16:05 PM
MR. WILSON said PCOR is the Plains CO2 Reduction Partnership out
of North Dakota and EERC is Energy and Environmental Research
Center, also out of North Dakota.
4:16:31 PM
CHAIR GIESSEL asked whether AOGCC had conducted a poll.
4:16:40 PM
MR. WILSON affirmed that UAF conducted a poll.
4:16:46 PM
CHAIR GIESSEL asked for details about the poll.
4:16:58 PM
MR. WILSON said AOGCC could provide results of the poll later.
4:17:30 PM
MR. WILSON moved to slide 6. MR. WILSON said all AOGCC's efforts
to date were Phase I activities in the process to attain
Environmental Protection Agency (EPA) primacy. He expected to
enter Phase II in May, 2025. He noted the critical efforts to
align the Alaska regulations under development with the federal
code requirements:
[Original punctuation provided.]
Steps to Primacy
EPA has a 4 Phase Process:
Phase I: Pre-Application Activities
• EPA assists states in identifying necessary
resources and reviewing draft regulations.
Phase II: Completeness Review
• EPA assesses application materials for
completeness and ensures all required information
is included.
Phase III: Application Evaluation (12 to 24 months)
• EPA evaluates the state's regulations and other
relevant application components.
Phase IV: Rulemaking and Codification
• EPA drafts and finalizes a rule to approve or
disapprove the application
4:18:53 PM
SENATOR KAWASAKI noted that the state of Alaska had taken over
primacy for some EPA functions, clean water, for example. He
asked whether Alaska would have to ensure the EPA of adequate
staffing at the state level to address issues of primacy and how
potential shortfalls would be addressed.
4:19:44 PM
MR. WILSON said he did expect that to be part of the process and
that AOGCC was currently adequately staffed to address CCUS
primacy when approved.
4:21:02 PM
CHAIR GIESSEL asked for clarification about the function of a
Class II well
4:21:15 PM
MR. WILSON said Class II primacy was for oil field waste and
included gas. He further explained that it included advanced oil
recovery and disposal associated with oil field activities.
4:21:50 PM
MR. WILSON moved to and narrated slide 7, introducing the CCUS
team:
[Original punctuation provided.]
Class VI Primacy Team
Technical
• Chris Wallace UIC Program Manager, Petroleum
Engineer
• Jack Lau Petroleum/Carbon Engineer
Project Manager
• Kayla Junke -- Carbon Engineering Assistant
Legal Consultant and Attorney
• Susan Pollard Consultant, former Division of
Law
• Pat Sherry Division of Law Attorney
Subject matter experts as needed
• AOGCC Geologists
• Cement Evaluation/Mechanical Integrity Consultant
• Other Primacy States
4:23:51 PM
MR. WILSON moved to slide 8, describing the eventual application
for CCUS. He noted that one component of slide 7 had been
inadvertently omitted: modeling of the flume movement in
subsurface would likely be added to contracted services:
[Original punctuation provided.]
Key Components of the application
Governor's Letter and Attorney General Statement
• Official endorsements and legal confirmations.
Memorandum of Agreement with EPA
• Collaborative framework outlining roles and
responsibilities.
Regulation Crosswalk
• Comparative analysis of state and federal
regulations.
Program Description
• Comprehensive plan for Class VI implementation,
including:
• Organizational structure.
• Modeling and simulations.
• Consultant involvement.
• Community Engagement
• Public notice and participation processes.
Form Examples
4:25:05 PM
CHAIR GIESSEL thanked AOGCC for the presentation and noted that
an update next year would be in order.
4:25:31 PM
MR. WILSON sought to clarify that, while AOGCC was in the
process of obtaining EPA primacy for CCUS operations, entities
would not be prevented from seeking a carbon storage permit in
Alaska. He said the entity would be required to obtain their
Class VI permit through the EPA rather than AOGCC.
4:25:58 PM
CHAIR GIESSEL appreciated the clarification.
4:26:44 PM
There being no further business to come before the committee,
Chair Giessel adjourned the Senate Resources Standing Committee
meeting at 4:26 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 1.29.25 Senate Resources Department of Natural Resources Carbon Storage Presentation.pdf |
SRES 1/29/2025 3:30:00 PM |
|
| 1.29.25 Senate Resources Alaska Oil and Gas Conservation Commission Class VI Primacy Update.pdf |
SRES 1/29/2025 3:30:00 PM |