(The Center Square) – Alaska Gov. Mike Dunleavy signed a bill Tuesday that begins the state’s carbon management program that could bring millions in additional revenue to the state.
Senate Bill 49 allows the Department of Natural Resources to lease state lands to private companies for carbon management projects or allows the state to create a project on its own. The money collected would go into a special fund the state could use for general state expenditures, according to the bill.
The Alaska Oil and Gas Conservation Commission can also pursue Class VI underground injection wells used to sequester carbon dioxide.
“Our constitution requires us to develop, utilize and conserve Alaska’s natural resources for the maximum benefit of the people,” Dunleavy said in a statement. “This legislation allows us to do that in a new way and will generate new revenue for the state without taxing Alaskans or Alaskan businesses.”
The revenues are uncertain and the program will likely take time to develop before any money comes into the state. The program will require new personnel in fiscal year 2024, according to the presentation.
A report presented to lawmakers showed three possible “pilot” projects that could bring in $81.6 million over 10 years and $311 million over 40 years.
“By incentivizing active forest management through carbon offset projects, we can increase the health and productivity of our forests, reduce wildfire risk, and create new jobs and opportunities for Alaskans across the state,” said DNR Commissioner John Boyle.
