HB327 is a comprehensive bill that establishes a legal framework for the geologic storage of carbon dioxide in Alabama. The bill amends the Code of Alabama 1975 by adding a new division that defines "pore space" and vests the possessory right to this space in surface property owners, allowing them to convey these rights separately. It sets forth the process for obtaining approval to operate carbon dioxide storage facilities, including consent requirements from pore space and storage rights owners and the State Oil and Gas Board's authority to amalgamate storage rights. The bill also creates two funds for the administration and long-term management of storage facilities, details the issuance of certificates of project closure and completion, and grants rulemaking authority to the board. It ensures fair compensation for non-consenting owners and limits adverse impacts on their surface use.

The bill further specifies the establishment of a fund for the management of closed storage facilities, with provisions for investment and use of the fund's monies. It assigns title and liability for stored carbon dioxide to the storage operator until a certificate of project closure and completion is issued, after which the state assumes title and responsibility for long-term management, with no compensation to the operator. The bill also includes provisions for leasing pore space for storage purposes and sets an effective date of October 1, 2024. The Senate passed the bill on May 2, 2024, as indicated by an insertion in the text.

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
Enrolled: 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