House Bill No. 537, introduced by Representative Schamerhorn, aims to establish a carbon dioxide victim lien for individuals and properties affected by releases from carbon dioxide pipelines. The bill defines a "kill zone" as a 25-mile radius from a pipeline release and outlines that any affected person or property within this area is entitled to a lien for compensation for damages incurred, including healthcare, property damage, and punitive damages. The bill emphasizes that this lien applies to all assets of the pipeline owners and operators, as well as those supplying carbon dioxide, regardless of intent or liability.

To perfect this lien, victims must file a financing statement within 365 days of the release that caused the damage, which will have priority retroactive to the date of the initial release over any conflicting security interests or liens. The bill also stipulates that a financing statement must indicate it is for a carbon dioxide pipeline victim lien and remains effective until a termination statement is filed. Additionally, if an owner is in bankruptcy or receivership, the responsible trustee or court must hold the assets in trust for 365 days to allow for potential lien filings.