Alaska agencies set schedule to begin permitting carbon storage; EPA primacy application planned for May

ANCHORAGE — The Alaska Department of Natural Resources and the Alaska Oil and Gas Conservation Commission updated the Senate Resources Committee Jan. 29 on state steps to implement carbon capture, utilization and storage (CCUS) after passage of HB 50.

DNR Deputy Director Haley Payne told the committee the department has completed a regulatory package and "filed those with the lieutenant governor, and they will take effect February 16th," positioning DNR to accept applications to license the state's subsurface for dedicated carbon storage. Payne said the department is also drafting model license and lease agreements and building an online technical database of public well and seismic data to help prospective applicants.

The update to the committee from the AOGCC focused on the agency's work to secure primacy from the U.S. Environmental Protection Agency to regulate Class VI underground injection (CO2 storage) wells within Alaska. Commissioner Gregory Wilson said the commission expects to submit its primacy application in May, after public comment on draft regulations, and that EPA's review of a primacy application typically takes 12 to 24 months.

Why it matters: HB 50 directed DNR to license the state's pore space for carbon storage and empowered AOGCC to regulate Class VI injection wells. If projects move forward, proponents have…