The Link Alliance Magazine Summer July 2023

THE LINK: JULY 2023 18 Dunleavy’s plans for underground storage likely to come up in ‘24 Gov. Mike Dunleavy achieved the passage of the first part of his carbon legislation, offering forest carbon offsets for sale. The second part, establishing the framework for a state-managed carbon dioxide underground injection program with permanent storage, did not pass but will be on the governor’s front burner for the 2024 legislative session. The forest carbon offset sales will bring only modest state revenues. State natural resources Commissioner John Boyle says it will help pay for active management in state forests for fire and insect prevention and mitigation. The carbon dioxide injection and storage program, if approved, has much more state revenue potential because companies would lease unused reservoir capacity from the state, which owns it. However, the legal framework for this must be established in state law. Conceptually, both programs seem simple. Trees absorb carbon dioxide and if forest owners manage their lands to maximize this the avoided carbon offsets can be sold to companies needing to offset their own emissions. This is now done in the Lower 48 and in Alaska on lands owned by Alaska Native corporations. The advantage here is that this can be done soon — there are now buyers and reputable companies in this business. First part of carbon offset legislation moves ahead Photos Courtesy Office of the Governor From left, Laura Stidolph, state legislative director; Gov. Dunleavy; DNR Commissioner John Boyke, Special Assistant Rena Miller and Deputy Commissioner (oil and gas) John Crowther.

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