The bill amends the Natural Resources and Environmental Protection Act by updating sections 502 and 1301, and introducing a new section 52509 focused on carbon sequestration. It redefines the department responsible for environmental oversight as the "department of environment, Great Lakes, and energy," and establishes a program to incentivize innovation in the use of captured carbon dioxide. The bill allows the department to enter into contracts for the capture, disposal, or storage of carbon dioxide on state-owned lands, contingent upon obtaining consent from the relevant state agency. Additionally, it creates a forest management fund to support activities related to state forests, specifying that up to one-third of the fund's revenue can be used for these purposes.

The legislation also sets forth a comprehensive regulatory framework for carbon sequestration projects, including new definitions and requirements for geologic storage of carbon dioxide. It mandates that project operators obtain permits and comply with federal regulations, while also outlining the process for public hearings and permit issuance. Once a project is completed, the state assumes ownership and regulatory responsibility for the carbon dioxide stream, relieving the operator of certain liabilities. The bill establishes fees for carbon dioxide storage, which will fund various community and environmental initiatives, and details the procedures for unit operations related to carbon sequestration, ensuring compliance and transparency throughout the process.

Statutes affected:
Senate Introduced Bill: 324.502, 324.1301