This bill amends the Natural Resources and Environmental Protection Act by making significant changes to sections 502 and 1301, and by adding a new section 52509 and a subchapter on carbon sequestration. Notably, the term "commission" is replaced with "department" in section 502, which now requires the department to create rules regarding land use and occupancy. The department is also mandated to establish a program that incentivizes innovation in the use and reutilization of captured carbon dioxide. Furthermore, the bill expands the department's authority to enter into contracts for the capture, disposal, or storage of carbon dioxide on state-owned lands, including provisions for revenue distribution from these activities.

The legislation establishes a regulatory framework for carbon sequestration projects, defining key terms and requiring permits from the geologic resources management division of the Department of Environment, Great Lakes, and Energy. It includes provisions for public hearings on permit applications, ensuring stakeholder participation, and mandates a minimum monitoring period of 50 years post-injection. The bill also introduces a fee structure for carbon sequestration operators based on the amount of carbon dioxide injected, with fees allocated to various funds supporting wildlife, community benefits, and emergency preparedness. Additionally, it creates a framework for unit operations related to pore space allocation, emphasizing public notice and hearing requirements to ensure transparency in the process.

Statutes affected:
Substitute (S-2): 324.502, 324.1301
Senate Introduced Bill: 324.502, 324.1301
As Passed by the Senate: 324.502, 324.1301