This bill amends the Natural Resources and Environmental Protection Act by transferring authority for rule promulgation and enforcement from the commission to the department. It introduces a new section on carbon sequestration, requiring the department to create an incentive program for the innovation and reutilization of captured carbon dioxide. The bill expands the department's ability to enter into contracts for the capture, disposal, or storage of carbon dioxide on state-owned lands, with all contracts subject to approval by the state administrative board. Additionally, it establishes the Forest Management Trust Fund to support various environmental initiatives, including road infrastructure and habitat management, funded by activities related to carbon sequestration.

The legislation sets forth a comprehensive regulatory framework for carbon sequestration projects, defining key terms and mandating permits for geologic storage operations. It emphasizes compliance with federal regulations throughout the permitting process, including public hearings for stakeholder participation. The bill also outlines monitoring requirements post-injection, with the state assuming ownership and liability upon project completion. Furthermore, it introduces annual fees for carbon dioxide storage, which will be allocated to various environmental and public safety funds. The bill facilitates unit operations for pore space allocation, requiring approval from a majority of pore space owners and ensuring transparency through public hearings and notifications.

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