State of Alaska
Fiscal Note
Bill Version: SB 62
2021 Legislative Session
Fiscal Note Number: 1
(S) Publish Date: 1/29/2021
Identifier: 0714-DNR-DOG-1-27-21 Department: Department of Natural Resources
Title: GAS LEASES; RENEWABLE ENERGY GRANT Appropriation: Oil & Gas
FUND Allocation: Oil & Gas
Sponsor: RLS BY REQUEST OF THE GOVERNOR OMB Component Number: 439
Requester: Governor
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2022 Governor's
Appropriation FY2022 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2022 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2021) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2022) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed? N/A
Why this fiscal note differs from previous version/comments:
Not appplicable; initial version.
Prepared By: Tom Stokes, Director Phone: (907)269-7439
Division: Oil and Gas, DNR Date: 01/28/2021 01:00 PM
Approved By: Cheri Lowenstien, Administrative Services Director Date: 01/28/21
Agency: Office of Management and Budget
Printed 1/29/2021 Page 1 of 2 Control Code: YMMPP
 SB 62 - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO.
2021 LEGISLATIVE SESSION
Analysis
This proposal provides a mechanism for the state to lease and collect revenue from adjacent submerged lands, but
without endangering protected surface waters by denying surface access. Without this provision, state resources could be
drained from adjacent lands without a clear legal framework for collection of royalties. The bill would modify AS
38.05.184, which prohibits oil and gas leasing in the offshore acreage in the southern Kenai Peninsula. A modification of
the Renewable Energy Grant Fund and Recommendation Program is provided to allow the legislature to appropriate some
revenue from these gas leases.
This bill includes a provision for the legislature to appropriate proceeds from the sale of leases made available by this bill
to the Renewable Energy Grant Fund and Recommendation Program under AS 42.45.045 (OMB Code #1210). This could
impact the amount of lease sale bonus bids deposited in the Unrestricted General Fund, but depends on the percentage
appropriated by the legislature and the amount of bids received in a future lease sale, neither of which can be predicted
for the purpose of this analysis.
The bill would not significantly modify current department activities; instead, it removes an artificial barrier to allowing
the Division to offer leases for oil and gas exploration in a small portion of the Cook Inlet, adjacent to the current leasing
program. The Division already conducts regular onshore lease sales of regions including Cook Inlet and anticipates that
any slight incremental increase in work required sales by offering new areas for lease will be absorbed with current
funding; therefore, the Division submits a zero fiscal note.
(Revised 1/13/2021 OMB/LFD) Page 2 of 2
0714-DNR-DOG-1-27-21 Page 2 of 2 Control Code: YMMPP


Statutes affected:
SB0062A, AM SB 62, introduced 01/29/2021: 38.05.184, 42.45.045, 38.05.180, 37.10.071