Summary/Abstract
Alaska’s H.B. 50, passed on August 1, 2024, aims to modernize carbon capture and storage in Alaska. It implements a mechanism to encourage the transfer of pore space ownership so as to allow amalgamation when approved by regulators, and imposes new fees on operators to fund the Carbon Storage Closure Trust Fund for long-term monitoring of storage facilities. The law creates a path for long-term stewardship as well: 50 years after injection has concluded, an operator will be eligible to obtain a certificate of completion, which will transfer title to the stored carbon dioxide to the owner of the pore space, and transfer responsibility for long-term monitoring and maintenance to the state.
Furthermore, the Alaska law also creates a two-step process of exploration and licensing that may open public lands to future storage operations. Interested operators must first obtain a carbon storage exploration license. Following termination of the exploration license, if a license holder can demonstrate that the project will not interfere with existing water, oil, gas or other mineral interests, the license holder will be able to obtain a storage facility permit. In addition, the law’s new amalgamation process has no minimum consenting owner requirement — meaning a storage operator needs only to obtain the state’s approval in order to store carbon dioxide under private land.