The bill establishes new regulations for the geologic storage of carbon dioxide in Alabama by creating a new Division 2 within the Code of Alabama, which includes definitions such as "pore space" and clarifies ownership rights. It stipulates that pore space ownership is vested in surface landowners unless previously severed or explicitly excluded. The approval process for carbon dioxide storage facilities requires operators to obtain consent from a significant majority of pore space owners while considering the rights of surface and mineral owners. Additionally, the bill creates two funds: the Underground Carbon Dioxide Storage Facility Administrative Fund for regulatory expenses and the Underground Carbon Dioxide Storage Facility Trust Fund for long-term monitoring of closed facilities. It also protects existing agreements regarding pore space rights made before October 1, 2024, from being altered by the new legislation.

Furthermore, the bill outlines the management and closure process for carbon dioxide storage facilities, stating that the storage operator holds title to all injected carbon dioxide and is liable for any operational damages. Upon completion of carbon dioxide injections, operators can apply for a certificate of project closure, which requires public notice and compliance with specific criteria. Once issued, the title to monitoring equipment and stored carbon dioxide transfers to the state without compensation, releasing the operator from regulatory requirements. The state will then take over long-term monitoring unless a federal agency assumes this responsibility. The Commissioner of Conservation and Natural Resources is granted authority to lease pore space on state lands, and the act is set to take effect on October 1, 2024.

Statutes affected:
Introduced: 9-17-160, 9-17-150, 9-17-151, 9-17-152, 9-17-153, 9-17-154, 9-17-155, 9-17-156, 9-17-157
Engrossed: 9-17-160, 9-17-150, 9-17-151, 9-17-152, 9-17-153, 9-17-154, 9-17-155, 9-17-156, 9-17-157