This bill amends the Natural Resources and Environmental Protection Act by updating Section 1301 and introducing a new subchapter dedicated to carbon sequestration. It establishes definitions for key terms related to carbon dioxide sequestration activities, such as "carbon dioxide capture project" and "carbon dioxide storage reservoir." The legislation mandates that a permit is required for any carbon dioxide sequestration activity, detailing the components necessary for a permit application, including maps, impact descriptions, and monitoring plans. Additionally, it sets forth requirements for remedial action and closure plans, ensuring operators address environmental impacts and maintain financial assurance and insurance coverage for potential liabilities.

The bill also creates a regulatory framework for carbon dioxide sequestration projects, requiring public hearings and stakeholder notifications during the permit application process. It outlines criteria for permit approval, including compliance with regulations and protection of groundwater. The legislation introduces penalties for non-compliance, allowing the attorney general to pursue civil actions for violations, with significant fines and potential felony charges for knowingly violating the law. Furthermore, it establishes a carbon dioxide sequestration fund to collect fees and fines, which will support projects aimed at reducing greenhouse gas emissions. The bill emphasizes the importance of securing pore space rights and mandates fair compensation for nonconsenting owners, while also allowing for the development of unit operations plans and public hearings related to these operations.

Statutes affected:
Senate Introduced Bill: 324.1301