Alaska Legislature heads into session’s homestretch with energy-related bills still on the table

Hilcorp’s Dillon level successful Cook Inlet (foreground) photographed past year. (Nathaniel Herz for Alaska Public Media)

Leaders successful some nan authorities House and Senate person listed power authorities arsenic a superior attraction of this session. That’s arsenic state producers pass that Cook Inlet earthy state supplies are dwindling, threatening higher prices.

But there’s only astir a week near for lawmakers to walk bills that reside a number of power issues. So it’s a bully clip to cheque successful pinch Alaska Public Media’s Capitol reporter, Eric Stone.

Listen:

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This question and reply has been lightly edited for magnitude and clarity.

Casey Grove: So, punctual us, what sorts of proposals are connected nan table?

Eric Stone: Well, location are a lot. Lots of them person to do pinch boosting earthy state drilling successful Cook Inlet extracurricular of Anchorage. 

Hilcorp, nan biggest shaper successful Cook Inlet, can’t perpetrate to supplying capable state to automatically renew inferior contracts complete nan adjacent fewer years.. That’s a problem because group usage it to power their homes and powerfulness plants usage it to make electricity. That’s threatening to push prices up.

So there’s each kinds of worldly connected that front. Two bills person already passed retired of nan House. One would supply wide entree to older seismic surveys, which drillers usage to find lipid and state deposits. The thought is it would prevention explorers money, and frankincense make drilling much economical. Another would grow earthy state storage, which is expected to besides make state cheaper successful nan agelong run.

And past there’s royalty relief. Some speedy inheritance — companies salary royalties connected lipid and state produced connected authorities land. Those are mostly astir 12% to 16%. And location are a assortment of bills retired location that would trim aliases destruct those royalties, fundamentally making it cheaper to nutrient gas. 

They’re still moving retired nan specifications successful nan House and Senate connected those — and there’s immoderate skepticism astir whether reducing royalties would really lead to much drilling. A royalty-free lease waste past twelvemonth attracted astir arsenic galore bids arsenic successful past years. 

CG: So tons of attraction connected gas, which is understandable. How astir different power bills?

ES: There are a mates others that are absorbing — House Bill 50 is simply a c retention measure that’s a large privilege for nan governor. 

It would group up a strategy wherever c dioxide is pumped underground alternatively than going into nan atmosphere. Most of Alaska’s c emissions travel from operations connected nan North Slope, and conveniently, location are plentifulness of underground areas that are bully for storage. 

And there’s besides nan anticipation of sequestering c imported from places for illustration Japan. That’s a small theoretical astatine this point, though — c dioxide exports are a very young marketplace and nobody’s rather judge what nan early holds. And there’s besides a interest that nan measurement nan measure is presently structured, it could upwind up costing nan authorities money alternatively than making money.

That measure picked up immoderate absorbing amendments successful nan Senate Resources Committee, including 1 that would fundamentally consequence successful Hilcorp paying a batch much money successful taxes. And a fewer of nan state bills I mentioned earlier were rolled in, arsenic well. But those sewage stripped retired successful nan Senate Finance Committee, and we’ll spot if they get added back. They are still actively moving connected this.

And they’re moving connected different power measure important to nan politician — it would create an integrated transmission strategy for nan Railbelt. It would fundamentally make it cheaper to move energy from constituent A to constituent B connected nan Railbelt, and make it cheaper to nutrient renewable energy.

CG: That’s rather a spot to get done pinch a week to go.

ES: Yes, it is. And it’s not wholly clear that’s capable clip to get things complete nan decorativeness line. Like, connected nan royalty alleviation bill, it’s not clear if there’s capable clip for analysts to opportunity what effect it would person connected drilling. Some of this has to do pinch nan timeline for getting nan legislature’s advisor nether statement — there’s a awesome Anchorage Daily News article that goes into it successful a batch much detail, but much aliases less, immoderate behind-the-scenes worldly coiled up delaying nan contract.

But arsenic I said a infinitesimal ago, location is immoderate beautiful intensive activity happening connected nan c retention bill, nan Railbelt transmission strategy measure and different I haven’t talked about, which would create a “green bank” to finance sustainable power projects. Sen. Bert Stedman, a Sitka Republican and co-chair of nan Finance Committee says those are large targets to get passed. But we’ll person to hold and see