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. This division defines "pore space" as subsurface space suitable for carbon dioxide storage, clarifying that ownership of pore space is vested in surface property owners unless previously severed. It outlines the approval process for carbon dioxide storage facilities, which requires consent from a significant majority of pore space owners and considers existing mineral rights and safety. The bill also introduces two funds: the Underground Carbon Dioxide Storage Facility Administrative Fund for regulatory activities and the Underground Carbon Dioxide Storage Facility Trust Fund for long-term monitoring and management of closed facilities. It emphasizes that agreements regarding pore space must clearly convey or reserve rights and protects existing rights acquired before October 1, 2024.

Additionally, 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 related damages. After completing carbon dioxide injections, the operator can apply for a closure certificate, which requires public notice, consultation with the Alabama Department of Environmental Management, and a minimum of ten years since injection ended. Upon issuance of the closure certificate, 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 board is empowered to adopt necessary implementation rules. 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