Alaska 33rd Legislature (2023-2024) Status: In Committee

SB 69 — An Act relating to geothermal resources; relating to the definition of 'geothermal resources'; and providing for an effective date.

Last action — (S) REFERRED TO FINANCE

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 33rd Legislature (2023-2024). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

225 added · 116 removed

Plain-language change summary

The amendments to Senate Bill No. 69 expand the state's authority over geothermal resources by allowing for the control of underground injection wells related to geothermal energy recovery. Specifically, it clarifies that this includes both Class I and Class V wells, which is important for ensuring safe practices in energy production. Additionally, the term "permit" has been changed to "license," streamlining the language and possibly making it easier for individuals to navigate the application process for exploring geothermal resources. These changes enhance the state's regulatory framework, supporting the development of geothermal energy as a resource.

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33-GS1618\R CS FOR SENATE BILL NO.
33-GS1618\A SENATE BILL NO.
69(RES) IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - SECOND SESSION BY THE SENATE RESOURCES COMMITTEE Referred:
69 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - FIRST SESSION BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR Introduced:
Finance Sponsor(s):
2/15/23 Referred:
SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR A BILL FOR AN ACT ENTITLED "An Act relating to geothermal resources;
Resources, Finance A BILL FOR AN ACT ENTITLED "An Act relating to geothermal resources;
relating to the definition of 'geothermal resources';
AS 31.05.030(h) is amended to read:
(h) The commission may take all actions necessary to allow the state to acquire primary enforcement responsibility under 42 U.S.C.
300h-1 and 42 U.S.C.
300h-4 (Safe Drinking Water Act of 1974, as amended, 42 U.S.C.
300f - 300j-26), for the control of underground injection related to the recovery and production of oil and natural gas, [AND] the control of underground injection in Class I wells, and the control of underground injection in Class V wells associated with the recovery of geothermal energy for heating, aquaculture, and production of electric power for commercial or industrial uses, as defined in 40 C.F.R.
144.6, as amended.
* Sec.
2.
AS 31.05.030(m) is amended to read:
(m) The commission has jurisdiction and authority over all persons and SB0069A -1- SB 69 New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\A property, public and private, necessary to carry out the purposes and intent of AS 41.06 [, EXCEPT FOR PROVISIONS IN AS 41.06 FOR WHICH THE DEPARTMENT OF NATURAL RESOURCES HAS JURISDICTION].
* Sec.
3.
When title to the surface parcel is held by a person other than the state, that person shall have a preferential right to a geothermal prospecting license [PERMIT] or lease for the area underlying the surface parcel.
A prospecting license or lease is not required under this section to explore for, develop, or use geothermal resources if the geothermal resource is intended for domestic, noncommercial, or small-scale industrial use [WHEN TITLE TO THE SURFACE PARCEL IS HELD BY A PERSON OTHER THAN THE STATE, THAT PERSON SHALL HAVE A PREFERENTIAL RIGHT TO A GEOTHERMAL PROSPECTING PERMIT OR LEASE FOR THE AREA UNDERLYING THE SURFACE PARCEL.
The surface owner must exercise the preference right within 30 days after receiving notice of the application for a license [PERMIT], or by agreeing to meet the terms of a bid within 60 days after receiving notice of the acceptance of the bid for a lease.
THE SURFACE OWNER MUST EXERCISE THE PREFERENCE RIGHT WITHIN 30 DAYS AFTER RECEIVING NOTICE OF THE APPLICATION FOR A PERMIT, OR BY AGREEING TO MEET THE TERMS OF A BID WITHIN 60 DAYS AFTER RECEIVING NOTICE OF THE ACCEPTANCE OF THE BID FOR A LEASE].
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(c) On state land that has not been declared a competitive geothermal area or withdrawn from geothermal prospecting, the commissioner may issue a prospecting SB0069B -1- CSSB 69(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\R license [PERMIT] to the first qualified applicant.
(c) On state land that has not been declared a competitive geothermal area or withdrawn from geothermal prospecting, the commissioner may issue a prospecting license [PERMIT] to the first qualified applicant.
A holder of a prospecting license [PERMIT] has the right, after completion of an agreed-on work commitment [UPON THE SHOWING OF A DISCOVERY OF GEOTHERMAL RESOURCES IN COMMERCIAL QUANTITIES] and the submission of an exploration [A DEVELOPMENT] plan acceptable to the commissioner, to convert the license [PERMIT] to a noncompetitive lease at a royalty rate under (g) of this section.
A holder of a prospecting license [PERMIT] has the right, after completion of an agreed-upon work commitment [UPON THE SHOWING OF A DISCOVERY OF GEOTHERMAL RESOURCES IN COMMERCIAL QUANTITIES] and the submission of an exploration [A DEVELOPMENT] plan acceptable to the commissioner, to convert the license [PERMIT] to a noncompetitive lease at a royalty rate under (g) of this section.
If the land included within the license [PERMIT] is designated a competitive geothermal area during the license [PERMIT] term, the licensee [PERMITTEE] must apply for a noncompetitive lease within 30 days after notification of the designation or forfeit the conversion privileges and the exclusive right to prospect.
If the land included within the SB 69 -2- SB0069A New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\A license [PERMIT] is designated a competitive geothermal area during the license [PERMIT] term, the licensee [PERMITTEE] must apply for a noncompetitive lease within 30 days after notification of the designation or forfeit the conversion privileges and the exclusive right to prospect.
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All prospecting licenses [PERMITS] and geothermal leases are subject to an annual rental fee CSSB 69(RES) -2- SB0069B New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\R established by the department in regulation and [,] payable in advance [, OF $3 PER ACRE].
All prospecting licenses [PERMITS] and geothermal leases are subject to an annual rental fee established by the department in regulation and [,] payable in advance [, OF $3 PER ACRE].
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7.
[BEGINNING 20 YEARS AFTER THE INITIATION OF COMMERCIAL PRODUCTION AND AT 10-YEAR INTERVALS THEREAFTER, THE COMMISSIONER MAY RENEGOTIATE THE RENTALS AND ROYALTIES DUE ON A GEOTHERMAL LEASE.] * Sec.
[BEGINNING 20 YEARS AFTER THE INITIATION OF COMMERCIAL PRODUCTION AND AT 10-YEAR INTERVALS THEREAFTER, THE COMMISSIONER MAY RENEGOTIATE THE RENTALS AND ROYALTIES DUE ON A GEOTHERMAL LEASE.] SB0069A -3- SB 69 New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\A * Sec.
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AS 38.05.965(6) is amended to read:
AS 38.05.181 is amended by adding new subsections to read:
(6) "geothermal resources" means the natural heat of the earth at temperatures greater than 80 [120] degrees Celsius, measured at the point where the highest-temperature resources encountered enter or contact a well or other resource extraction device, and includes (A) the energy, including pressure, in whatever form present in, resulting from, created by, or that may be extracted from that natural heat;
(i) The commissioner may require a lessee of a geothermal resource to operate under a unit agreement that prescribes the conditions under which the lessee must operate.
(B) the material medium, including the geothermal fluid naturally present, as well as substances artificially introduced to serve as a heat transfer medium;
A unit agreement must adequately protect all parties in interest, including the state.
and (C) all dissolved or entrained minerals and gases that may be obtained from the material medium, but excluding hydrocarbon substances and helium;
Except as provided in (j) of this section, the commissioner may not reduce the royalty on a geothermal lease issued under this section in, or in connection with, a unit agreement.
(j) When determined by the commissioner to be in the public interest, the commissioner may authorize a lessee and the lessee's representative, together with each other or jointly or severally with another lessee, to collectively adopt or operate under a unit agreement.
The commissioner may, with the consent of the involved lessees, establish, change, or revoke the drilling, producing, and royalty requirements of the leases.
(k) A geothermal lease and a unit agreement approved under this section must specify that the lease and unit agreement are subject to applicable statutes and regulations in force at the time the lease or unit agreement is entered into and to future amendments to those statutes and regulations.
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AS 38.05.965(6) is repealed and reenacted to read:
(6) "geothermal resources" means the natural heat of the earth and energy, in whatever form, below the surface of the earth present in, resulting from, created by, or that may be extracted from the natural heat, and all minerals in solution or other products obtained from naturally heated fluids, brines, associated gases, and steam, in whatever form, found below the surface of the earth that may be produced for a commercial use;
"geothermal resources" does not include oil, hydrocarbon gases, or other hydrocarbon substances;
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* Sec.
10.
AS 41.06.020(e) is amended to read:
(e) Nothing in this chapter limits the authority of the department [(1)] over geothermal resources under AS 38.05.181, including the authority [;
OR (2)] to approve and manage geothermal units or operations that include state land.
SB 69 -4- SB0069A New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\A * Sec.
11.
AS 41.06.020 is amended by adding a new subsection to read:
(f) The commission may, when consistent with the purpose and intent of this chapter, exempt from this chapter a domestic, noncommercial, or small-scale industrial use of geothermal resources.
* Sec.
12.
AS 41.06 is amended by adding a new section to read:
Sec.
41.06.057.
Penalties.
(a) In addition to the penalties in (b) - (d) of this section, a person who violates a provision of this chapter, a regulation adopted under this chapter, or an order, stipulation, or term of a permit issued by the commission is liable for a civil penalty of not more than $100,000 for the initial violation and not more than $10,000 for each day thereafter on which the violation continues.
(b) A person who knowingly commits an act specified in AS 11.46.630(a) for the purpose of evading a provision of this chapter, a regulation adopted under this chapter, or an order, stipulation, or term of a permit issued by the commission is guilty of a class A misdemeanor.
(c) A person who knowingly aids or abets another person in the violation of a provision of this chapter, a regulation adopted under this chapter, or an order, stipulation, or term of a permit issued by the commission is subject to the same penalty as that prescribed in this chapter for the violation by the other person.
(d) A person who knowingly violates a provision of this chapter, a regulation adopted under this chapter, or an order, stipulation, or term of a permit issued by the commission is guilty of a misdemeanor punishable by a fine of not more than $10,000 a day for each day of violation.
(e) The commission may assess the civil penalties provided in this section, and, if not paid, the penalties are recoverable by suit filed by the attorney general in the name and on behalf of the commission in the superior court.
The payment of a penalty does not relieve a person on whom the penalty is imposed from liability to any other person for damages arising out of the violation.
(f) In determining the amount of a penalty assessed under (a) of this section, the commission shall consider (1) the extent to which the person committing the violation was acting in good faith in attempting to comply;
SB0069A -5- SB 69 New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\A (2) the extent to which the person committing the violation acted in a wilful or knowing manner;
(3) the extent and seriousness of the violation and the actual or potential threat to public health or the environment;
(4) the injury to the public resulting from the violation;
(5) the benefits derived by the person committing the violation from the violation;
(6) the history of compliance or noncompliance by the person committing the violation with the provisions of this chapter, the regulations adopted under this chapter, and the orders, stipulations, or terms of permits issued by the commission;
(7) the need to deter similar behavior by the person committing the violation and others similarly situated at the time of the violation or in the future;
(8) the effort made by the person committing the violation to correct the violation and prevent future violations;
and (9) other factors considered relevant to the assessment that are adopted by the commission in regulation.
* Sec.
13.
AS 41.06.060(4) is amended to read:
(4) "geothermal fluid" means liquids, brines, water, gases, or [AND] steam [AT TEMPERATURES GREATER THAN 120 DEGREES CELSIUS OR ANY COMMERCIAL USE OF LIQUIDS AND STEAM] naturally or artificially present in a geothermal system that may be produced for a commercial use;
"geothermal fluid" does not include oil, hydrocarbon gases, or other hydrocarbon substances [AT TEMPERATURES LESS THAN 120 DEGREES CELSIUS];
* Sec.
14.
AS 41.06.060(5)is repealed and reenacted to read:
(5) "geothermal resources" means the natural heat of the earth and energy, in whatever form, below the surface of the earth present in, resulting from, created by, or that may be extracted from the natural heat, and all minerals in solution or other products obtained from naturally heated fluids, brines, associated gases, and steam, in whatever form, found below the surface of the earth that may be produced SB 69 -6- SB0069A New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\A for a commercial use;
"geothermal resources" does not include oil, hydrocarbon gases, or other hydrocarbon substances;
* Sec.
15.
AS 41.06.005(b) and 41.06.030 are repealed.
* Sec.
16.
APPLICABILITY.
(a) Except as provided in (b) of this section, this Act applies to a license or lease for a geothermal resource granted or entered into on or after the effective date of secs.
1 - 11 and 13 - 15 of this Act.
(b) An application made under AS 38.05.181(c), as that subsection read before the effective date of sec.
4 of this Act, that is pending with the Department of Natural Resources on the effective date of sec.
4 of this Act is considered to be an application under AS 38.05.181(c), as amended by sec.
4 of this Act.
* Sec.
17.
The uncodified law of the State of Alaska is amended by adding a new section to read:
CONVERSION OF EXISTING PROSPECTING PERMIT APPLICATIONS AND PROSPECTING PERMITS.
CONVERSION OF AN EXISTING PROSPECTING PERMIT TO A PROSPECTING LICENSE.
(a) The commissioner of natural resources shall convert an application for a prospecting permit made under AS 38.05.181(c), as that subsection read on the day before the effective date of sec.
A permittee with a valid permit issued under AS 38.05.181(c), as that subsection read before the effective date of sec.
2 of this Act, that is pending with the Department of Natural Resources on the effective date of sec.
4 of this Act, may request in writing that the commissioner of natural resources convert the prospecting permit into a prospecting license under AS 38.05.181, as amended by this Act.
2 of this Act, SB0069B -3- CSSB 69(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\R to an application for a prospecting license under AS 38.05.181(c), as amended by sec.
The Department of Natural Resources shall give public notice of a request for conversion under this section.
2 of this Act.
In this section, the legislature finds that conversion of a prospecting permit under this section into a prospecting license under AS 38.05.181, as amended by this Act, will best serve the interests of the state.
(b) A person with a valid permit issued under AS 38.05.181(c), as that subsection read on the day before the effective date of sec.
The commissioner of natural resources is not required to make a written finding under AS 38.05.035 to approve a request to convert a prospecting permit into a prospecting license.
2 of this Ac,t may request in writing that the commissioner of natural resources convert the prospecting permit into a prospecting license under AS 38.05.181, as amended by secs.
The expiration date of a prospecting license converted under this section may not be later than five years from the date the prospecting permit was issued under AS 38.05.181(c), as that subsection read before the effective date of sec.
1 - 5 of this Act.
4 of this Act.
The Department of Natural Resources shall provide public notice of a request for the conversion of a prospecting permit into a prospecting license under this section.
(c) Upon request of a person qualified under (b) of this section, the commissioner of natural resources shall convert a prospecting permit issued under AS 38.05.181(c), as that section read on the day before the effective date of sec.
2 of this Act, into a prospecting license under AS 38.05.181, as amended by secs.
1 - 5 of this Act.
Notwithstanding AS 38.05.035(e), the director of the division of lands is not required to make a written finding and the commissioner of natural resources is not required to expressly approve the conversion of a prospecting permit into a prospecting license under this section.
Notwithstanding AS 38.05.181(c), as amended by sec.
2 of this Act, a prospecting permit converted into a prospecting license under this section may not expire later than five years from the date the permit was issued under AS 38.05.181(c), as that subsection read on the day before the effective date of sec.
2 of this Act.
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The Department of Natural Resources may adopt regulations to implement the changes made by this Act.
The Department of Natural Resources and the Alaska Oil and Gas Conservation Commission may adopt regulations to implement the SB0069A -7- SB 69 New Text Underlined [DELETED TEXT BRACKETED] 33-GS1618\A changes made by this Act.
The reglations take effect under AS 44.62 (Administrative Procedure Act) but not before the effective date of the law implemented by the regulation.
The regulations take effect under AS 44.62 (Administrative Procedure Act) but not before the effective date of the law implemented by the regulation.
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Section 8 of this Act takes effect immediately under AS 01.10.070(c).
Section 18 of this Act takes effect immediately under AS 01.10.070(c).
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20.
9 of this Act, this Act takes effect July 1, 2024.
19 of this Act, this Act takes effect July 1, 2023.
CSSB 69(RES) -4- SB0069B New Text Underlined [DELETED TEXT BRACKETED]
SB 69 -8- SB0069A New Text Underlined [DELETED TEXT BRACKETED]
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Action History

  1. (S) REFERRED TO FINANCE

  2. (S) FN3: ZERO(DNR)

  3. (S) AM: KAWASAKI

  4. (S) NR: CLAMAN, WIELECHOWSKI, KAUFMAN

  5. (S) DP: BISHOP, GIESSEL, DUNBAR

  6. (S) RES RPT CS 3DP 3NR 1AM NEW TITLE

  7. (S) Moved CSSB 69(RES) Out of Committee

  8. (S) RESOURCES at 03:30 PM BUTROVICH 205

  9. (S) Minutes (SRES)

  10. (S) Heard & Held

  11. (S) RESOURCES at 03:30 PM BUTROVICH 205

  12. (S) Minutes (SRES)

  13. (S) Heard & Held **Streamed live on AKL.tv**

  14. (S) RESOURCES at 03:30 PM BUTROVICH 205

  15. (S) Minutes (SRES)

  16. (S) RESOURCES at 03:30 PM BUTROVICH 205

  17. (S) Minutes (SRES)

  18. (S) Heard & Held

  19. (S) RESOURCES at 03:30 PM BUTROVICH 205

  20. (S) Minutes (SRES)

  21. (S) Heard & Held

  22. (S) RESOURCES at 03:30 PM BUTROVICH 205

  23. (S) GOVERNOR'S TRANSMITTAL LETTER

  24. (S) FN2: (DNR)

  25. (S) FN1: ZERO(CED)

  26. (S) RES, FIN

  27. (S) READ THE FIRST TIME - REFERRALS

Sponsors

  • Senate Rules · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 64 not signed on

Sponsors (1)

  • Senate Rules

Co-sponsors (0)

None.

Not signed on (64)

64 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 69?
SB 69 is sponsored by Senate Rules.
What is the current status of SB 69?
This bill died with 33rd Legislature (2023-2024). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 69?
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