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State issues proposed carbon offsets regs
Petroleum News
The Alaska Department of Natural Resources has a draft out for public comment of regulations for a portion of its carbon offset program.
In a March 28 press release, DNR said the regulations stem from Senate Bill 48, enacted last year. That bill created two pathways for developing carbon storage projects -- the draft regulations apply to just one of those options, establishment by the state of a carbon offset program through DNR's Office of Project Management and Permitting.
Under that option, the state can develop carbon storage projects, generating revenue through sale of carbon credits issued by a registry for those projects.
The other option, with draft regulations expected out later this spring, covers the carbon leasing program in DNR's Division of Mining, Land and Water, which enables the state to lease lands to third parties to develop carbon projects, with the third party doing the work of identifying, planning and developing the project. The third party would compensate the state for use of the land.
Benefits to state "Regulations are a critical step in our goal to monetize the carbon-removal benefits of Alaska's vast natural resources by leveraging free-market demand for decarbonization," Gov. Mike Dunleavy said. "We have the opportunity to grow our economy while actively managing our forests and ensuring continued public access and use of State of Alaska lands."
The regulations, which include steps and criteria for identifying and evaluating projects, provide the framework for DNR to implement carbon projects on state lands. DNR would determine if projects are in the state's best interests, contract for project services and register projects.
"Carbon offsets can be a substantial new revenue stream for the people of Alaka," said DNR Commissioner John Boyle. "Through active management of the state's forests, we can improve forest health, mitigate our risk of wildfires, and grow our inventory of merchantable timber which will lead to future economic opportunities. The Carbon Offset Program is an innovative new program in line with DNR's overall mission to develop, conserve and maximize the use of Alaska's natural resources for the benefit of Alaskans."
Timeline DNR said the goal is to have regulations for both programs, the state carbon offset program and the carbon leasing program, in place by mid-2024.
For updates on the program go to: https://dnr.alaska.gov/carbon.
Comments on these regulations are due by April 29.
--PETROLEUM NEWS
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