|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the ownership of the pore space underlying the surface |
|
of land and to the use of that space for the geologic storage of |
|
carbon dioxide; authorizing a fee. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 382.502(d), Health and Safety Code, is |
|
amended to read as follows: |
|
(d) A penalty collected under this section shall be |
|
deposited to the credit of the [anthropogenic] carbon dioxide |
|
storage trust fund established under Section 121.003, Natural |
|
Resources Code. |
|
SECTION 2. Section 91.802, Natural Resources Code, is |
|
amended to read as follows: |
|
Sec. 91.802. LAW APPLICABLE TO GEOLOGIC STORAGE FACILITIES |
|
AND ASSOCIATED INJECTION WELLS. (a) In this section, |
|
"[anthropogenic] carbon dioxide injection well" has the meaning |
|
assigned by Section 27.002, Water Code. |
|
(b) If a well is authorized as or converted to a [an |
|
anthropogenic] carbon dioxide injection well for geologic storage, |
|
Subchapter C-1, Chapter 27, Water Code, applies to the well. |
|
(c) A conversion of a [an anthropogenic] carbon dioxide |
|
injection well from use for enhanced recovery operations to use for |
|
geologic storage is not considered to be a change in the purpose of |
|
the well. |
|
SECTION 3. The heading to Chapter 121, Natural Resources |
|
Code, is amended to read as follows: |
|
CHAPTER 121. OWNERSHIP AND STEWARDSHIP OF [ANTHROPOGENIC] CARBON |
|
DIOXIDE |
|
SECTION 4. Section 121.001, Natural Resources Code, is |
|
amended by amending Subdivision (1) and adding Subdivisions (1-a), |
|
(1-b), and (2-a) to read as follows: |
|
(1) "Anthropogenic carbon dioxide[,]" means: |
|
(A) carbon dioxide that would otherwise have been |
|
released into the atmosphere that has been: |
|
(i) stripped, segregated, or divided from |
|
any other fluid stream; or |
|
(ii) captured from an emissions source, |
|
including: |
|
(a) an advanced clean energy project |
|
as defined by Section 382.003, Health and Safety Code, or another |
|
type of electric generation facility; or |
|
(b) an industrial source of |
|
emissions; |
|
(B) any incidental associated substance derived |
|
from the source material for, or from the process of capturing, |
|
carbon dioxide described by Paragraph (A); and |
|
(C) any substance added to carbon dioxide |
|
described by Paragraph (A) to enable or improve the process of |
|
injecting the carbon dioxide ["anthropogenic carbon dioxide |
|
injection well," and "geologic storage facility" have the meanings |
|
assigned by Section 27.002, Water Code]. |
|
(1-a) "Carbon dioxide" means the chemical compound |
|
composed of one carbon and two oxygen atoms. The term includes: |
|
(A) anthropogenic carbon dioxide; |
|
(B) naturally occurring carbon dioxide; |
|
(C) carbon dioxide captured directly from the |
|
atmosphere; and |
|
(D) phases, mixtures, and combinations of carbon |
|
dioxide, whether fluid, liquid, or gaseous, stripped, segregated, |
|
or divided from any other fluid stream thereof, together with |
|
incidental associated substances derived from the source materials |
|
and the capture process and any substances added to the stream to |
|
enable or improve the injection process. |
|
(1-b) "Carbon dioxide injection well" means an |
|
injection well used to inject or transmit carbon dioxide into a |
|
geologic storage facility. |
|
(2-a) "Geologic storage" and "geologic storage |
|
facility" have the meanings assigned by Section 27.002, Water Code. |
|
SECTION 5. Sections 121.002, 121.003, and 121.004, Natural |
|
Resources Code, are amended to read as follows: |
|
Sec. 121.002. OWNERSHIP OF [ANTHROPOGENIC] CARBON DIOXIDE. |
|
(a) This section does not apply to [anthropogenic] carbon dioxide |
|
injected for the primary purpose of enhanced recovery operations. |
|
(b) Except when title to the stored carbon dioxide and the |
|
geologic storage facility has been transferred to the state under |
|
Section 124.004(a) and unless [Unless] otherwise expressly |
|
provided by a contract, bill of sale, deed, mortgage, deed of trust, |
|
or other legally binding document or by other law, [anthropogenic] |
|
carbon dioxide stored in a geologic storage facility is considered |
|
to be the property of the storage operator or the storage operator's |
|
heirs, successors, or assigns. |
|
(c) Unless otherwise expressly provided by contract, bill |
|
of sale, deed, mortgage, deed of trust, or other legally binding |
|
document or by other law [Absent a final judgment of wilful |
|
abandonment rendered by a court or a regulatory determination of |
|
closure or abandonment], [anthropogenic] carbon dioxide stored in a |
|
geologic storage facility is not considered to be the property of |
|
the owner of the surface or mineral estate in the land in which the |
|
[anthropogenic] carbon dioxide is stored or of a person claiming |
|
under the owner of the surface or mineral estate. |
|
(d) Except when title to the stored carbon dioxide and the |
|
geologic storage facility has been transferred to the state under |
|
Section 124.004(a), the [The] owner, as designated by Subsection |
|
(b) [or (c)], of the [anthropogenic] carbon dioxide stored in a |
|
geologic storage facility, or the owner's heirs, successors, or |
|
assigns, may produce, take, extract, or otherwise possess |
|
[anthropogenic] carbon dioxide stored in the facility. |
|
Sec. 121.003. [ANTHROPOGENIC] CARBON DIOXIDE STORAGE TRUST |
|
FUND. (a) The [anthropogenic] carbon dioxide storage trust fund is |
|
created as a special fund in the state treasury. |
|
(b) The [anthropogenic] carbon dioxide storage trust fund |
|
is an interest-bearing fund. Interest earned on money in the fund |
|
shall be deposited to the credit of the fund. |
|
(c) Fees collected by the commission under Subchapter C-1, |
|
Chapter 27, Water Code, penalties imposed for violations of that |
|
subchapter or rules adopted under that subchapter, [and] funds |
|
received by the commission from financial responsibility |
|
mechanisms under Section 27.073, Water Code, grants, donations, and |
|
amounts allocated from any source, public or private, for the |
|
purposes of this chapter, and fees for the transfer of title to the |
|
stored carbon dioxide and the geologic storage facilities to the |
|
state as described by Section 124.005 shall be deposited to the |
|
credit of the [anthropogenic] carbon dioxide storage trust fund. |
|
(c-1) Penalties imposed for violations of commission rules |
|
adopted under Section 382.502, Health and Safety Code, shall be |
|
deposited to the credit of the [anthropogenic] carbon dioxide |
|
storage trust fund. |
|
(d) The [anthropogenic] carbon dioxide storage trust fund |
|
may be used by the commission only for: |
|
(1) permitting, inspecting, monitoring, |
|
investigating, recording, and reporting on geologic storage |
|
facilities and associated [anthropogenic] carbon dioxide injection |
|
wells; |
|
(2) long-term monitoring of geologic storage |
|
facilities and associated [anthropogenic] carbon dioxide injection |
|
wells; |
|
(3) remediation of [mechanical problems associated |
|
with] geologic storage facilities and associated [anthropogenic] |
|
carbon dioxide injection wells; |
|
(4) resolution of mechanical problems associated |
|
with, and repairing mechanical leaks at, geologic storage |
|
facilities and associated carbon dioxide injection wells; |
|
(5) plugging abandoned [anthropogenic] carbon dioxide |
|
injection wells used for geologic storage; |
|
(6) training and technology transfer related to |
|
[anthropogenic] carbon dioxide injection and geologic storage; |
|
[and] |
|
(7) compliance and enforcement activities related to |
|
geologic storage and associated [anthropogenic] carbon dioxide |
|
injection wells; and |
|
(8) costs, expenses, or claims arising from the |
|
state's ownership of the stored carbon dioxide and the geologic |
|
storage facility after the transfer of title to the stored carbon |
|
dioxide and geologic storage facility to the state under Section |
|
124.004(a). |
|
Sec. 121.004. EXTRACTION OF STORED [ANTHROPOGENIC] CARBON |
|
DIOXIDE. (a) The commission shall adopt rules allowing |
|
[anthropogenic] carbon dioxide stored in a geologic storage |
|
facility to be extracted for a commercial or industrial use. |
|
(b) The commission has jurisdiction over the extraction of |
|
[anthropogenic] carbon dioxide stored in a geologic storage |
|
facility. |
|
SECTION 6. Subtitle D, Title 3, Natural Resources Code, is |
|
amended by adding Chapters 124 and 125 to read as follows: |
|
CHAPTER 124. STATE RESPONSIBILITY FOR LONG-TERM STORAGE OF CARBON |
|
DIOXIDE |
|
Sec. 124.001. DEFINITIONS. In this chapter: |
|
(1) "Carbon dioxide," "carbon dioxide injection |
|
well," "commission," and "storage operator" have the meanings |
|
assigned by Section 121.001. |
|
(2) "Geologic storage" and "geologic storage |
|
facility" have the meanings assigned by Section 27.002, Water Code. |
|
Sec. 124.002. APPLICABILITY. (a) This chapter applies |
|
only to the permanent sequestration of carbon dioxide in a geologic |
|
storage facility. |
|
(b) This chapter does not apply to a storage operator or |
|
geologic storage facility owner who provides written notice that |
|
the owner or operator does not intend to apply to the commission to |
|
transfer title to the stored carbon dioxide and the geologic |
|
storage facility to the state under Section 124.003(a). |
|
Sec. 124.003. APPLICATION FOR TRANSFER OF TITLE AND CUSTODY |
|
TO STATE. (a) After a storage operator or geologic storage |
|
facility owner receives a certificate of closure from the |
|
commission under rules adopted under Section 27.047(1)(I), Water |
|
Code, a storage operator or geologic storage facility owner may |
|
apply to the commission to transfer title to the stored carbon |
|
dioxide and the geologic storage facility to the state. |
|
(b) Not later than the 60th day after the date an |
|
application is received under this section, the commission shall |
|
consider the application and respond to the applicant. The |
|
commission shall approve the application if: |
|
(1) a waiting period of at least 10 years has passed |
|
since the storage operator or geologic storage facility owner |
|
received a certificate of closure; |
|
(2) the storage operator or geologic storage facility |
|
owner is in full compliance with all applicable laws governing the |
|
injection and geologic storage of the carbon dioxide, including any |
|
rules adopted under Section 27.047(1)(I), Water Code; and |
|
(3) the stored carbon dioxide and the geologic storage |
|
facility are stable and not expected to endanger any underground |
|
source of drinking water. |
|
(c) The commission may require less than a 10-year waiting |
|
period under Subsection (b)(1) if the commission determines that |
|
period is not necessary. |
|
Sec. 124.004. RELEASE; TRANSFER OF TITLE TO STATE. (a) On |
|
approval of the application by the commission under Section |
|
124.003(b) and payment of the fee under Section 124.005, title to |
|
the stored carbon dioxide and the geologic storage facility is |
|
immediately transferred to the state. Title acquired by the state |
|
under this subsection includes all rights, interests in, and |
|
responsibilities associated with the stored carbon dioxide and the |
|
geologic storage facility. A party may not transfer to the state, |
|
and the state may not accept, any property interests or rights that |
|
the party does not own or have legal authority to transfer. |
|
(b) After title is acquired by the state under Subsection |
|
(a), all responsibility and potential liability associated with the |
|
stored carbon dioxide and the geologic storage facility is |
|
transferred to the state. |
|
(c) After title is acquired by the state under Subsection |
|
(a), the storage operator, the geologic storage facility owner, the |
|
person holding title to the carbon dioxide under Section 121.002, |
|
and all persons who generated any stored carbon dioxide are |
|
released from all regulatory requirements and liability associated |
|
with the stored carbon dioxide and the geologic storage facility. |
|
(d) Subsections (b) and (c) do not apply if the commission |
|
determines, after notice and a hearing, that a person intentionally |
|
concealed or misrepresented material facts related to an |
|
application under Section 124.003(b). |
|
(e) If a performance bond or other form of financial |
|
security submitted under Section 27.073, Water Code, has a duration |
|
that extends beyond the date of the issuance of the certificate of |
|
closure, that performance bond or other form of financial security |
|
shall be released. |
|
(f) The state, through the commission, shall assume |
|
responsibility for monitoring the stored carbon dioxide until the |
|
federal government assumes responsibility for the management and |
|
monitoring of the stored carbon dioxide. |
|
Sec. 124.005. FEE FOR TRANSFER OF TITLE TO STORED CARBON |
|
DIOXIDE TO STATE. On approval by the commission of an application |
|
under Section 124.003(b), the storage operator or geologic storage |
|
facility owner shall pay an additional per-ton fee for deposit to |
|
the credit of the carbon dioxide storage trust fund established |
|
under Section 121.003. The commission by rule shall determine the |
|
amount of the fee, which may not exceed the amount of the costs, |
|
expenses, or claims described by Section 121.003(d)(8) reasonably |
|
expected to be incurred by or presented to the state. |
|
Sec. 124.006. STATE ACCESS. After title to the stored |
|
carbon dioxide and the geologic storage facility is transferred to |
|
the state under Section 124.004(a), the state, through the |
|
commission, assumes all access and ancillary related rights the |
|
storage operator or geologic storage facility owner had to the |
|
geologic storage facility. |
|
Sec. 124.007. LIMITATION OF STATE RESPONSIBILITY. (a) |
|
This chapter does not: |
|
(1) alter or diminish the commission's defenses to |
|
liability already established under existing law; or |
|
(2) create any liability or responsibility on the part |
|
of the commission to pay any costs under Section 121.003(d) from any |
|
source other than the carbon dioxide storage trust fund established |
|
under Section 121.003. |
|
(b) The commission may not make payments for costs |
|
associated with the activities described by Section 121.003(d) if |
|
the amount of money in the carbon dioxide storage trust fund is |
|
insufficient to pay the costs. |
|
CHAPTER 125. INTEGRATION OF PORE SPACE FOR DEVELOPMENT OF |
|
GEOLOGIC STORAGE FACILITY |
|
Sec. 125.001. PURPOSE. The purposes of this chapter are to |
|
protect correlative rights, conserve the natural resources of this |
|
state, and enforce compliance with all applicable state and federal |
|
laws in order to facilitate and optimize the use and production of |
|
energy resources in this state, including the use of the pore space |
|
within the state for carbon dioxide sequestration. |
|
Sec. 125.002. APPLICABILITY. This chapter applies only to |
|
the permanent sequestration of carbon dioxide in a geologic storage |
|
facility. |
|
Sec. 125.003. DEFINITIONS. In this chapter: |
|
(1) "Carbon dioxide," "carbon dioxide injection |
|
well," and "commission," have the meanings assigned by Section |
|
121.001. |
|
(2) "Geologic storage" and "geologic storage |
|
facility" have the meanings assigned by Section 27.002, Water Code. |
|
(3) "Pore space" means the subsurface materials and |
|
geologic structures beneath the surface, including voids and |
|
cavities, to be used for the storage of carbon dioxide. |
|
(4) "Storage operator" means the person designated |
|
under an integration order issued by the commission under Section |
|
125.008 to conduct geologic storage operations. |
|
Sec. 125.004. INTEGRATION OF PORE SPACE FOR DEVELOPMENT OF |
|
GEOLOGIC STORAGE FACILITY. (a) A pore space owner whose pore space |
|
is located in a proposed geologic storage facility may integrate |
|
the owner's interests to develop the pore space as a proposed |
|
geologic storage facility. |
|
(b) If all of the owners of the pore space do not agree to |
|
the integration of their interests, a pore space owner or proposed |
|
storage operator may file an application with the commission |
|
requesting an order under this chapter for the integration of all |
|
interests and for the development of the pore space as a proposed |
|
geologic storage facility. |
|
Sec. 125.005. RULES. The commission shall adopt rules and |
|
procedures reasonably required for the performance of its powers, |
|
duties, and functions under this chapter. |
|
Sec. 125.006. HEARING REQUIRED. Promptly after receiving |
|
the completed application, the commission shall set the matter for |
|
hearing. The hearing must be scheduled to be held on a date not |
|
later than the 60th day after the date the completed application is |
|
filed with the commission. |
|
Sec. 125.007. NOTICE OF APPLICATION AND HEARING. (a) |
|
Notice of the application and the time and place of the hearing on |
|
the application must be mailed, postage prepaid, not later than the |
|
31st day before the date of the hearing, to each owner of the |
|
surface estate, mineral estate, or pore space in the proposed |
|
geologic storage facility and to each owner of the surface estate, |
|
mineral estate, or pore space adjacent to the proposed geologic |
|
storage facility. |
|
(b) Notice of the application and the time and place of the |
|
hearing must be published once a week for two consecutive weeks in a |
|
newspaper of general circulation authorized by law to publish legal |
|
notices in the county or counties in which the land involved is |
|
located. The first publication must be made not later than the 15th |
|
day before the date of the hearing. |
|
(c) Typographical errors in a notice that are not material |
|
to the purpose of the notice do not affect the validity of the |
|
notice. |
|
Sec. 125.008. INTEGRATION ORDER; EFFECT OF OPERATIONS. (a) |
|
The commission shall issue an integration order if the commission |
|
finds that: |
|
(1) the application meets all of the statutory and |
|
regulatory requirements for the issuance of the integration order; |
|
(2) the geologic storage facility into which the |
|
carbon dioxide is injected is suitable for or capable of being made |
|
suitable for storing the carbon dioxide; |
|
(3) with proper safeguards, both groundwater and |
|
surface water can be adequately protected; |
|
(4) the injection of carbon dioxide into the geologic |
|
storage facility will not endanger or injure human health or |
|
safety; |
|
(5) the injection and geologic storage of carbon |
|
dioxide will not endanger or injure any oil, gas, or other mineral |
|
formation in any material respect, or has been addressed in an |
|
arrangement between the applicant and the mineral lessee or mineral |
|
owner; |
|
(6) the applicant has obtained the consent of the |
|
owners representing at least 60 percent of the ownership of the pore |
|
space, based on the surface acreage of the proposed geologic |
|
storage facility; |
|
(7) the applicant has made a fair and reasonable offer |
|
to integrate the nonconsenting pore space owners' interests; and |
|
(8) all pore space owners who did not consent to |
|
integrate their interests in order to develop the pore space as a |
|
proposed geologic storage facility but who are or will be subject to |
|
an integration order are or will be equitably compensated for the |
|
appurtenant and reasonable use of the pore space and surface. |
|
(b) To amend an integration order in order to change the |
|
size of a geologic storage facility, the storage operator must |
|
demonstrate to the commission that the operator has obtained the |
|
consent of the owners representing at least 60 percent of the |
|
ownership of the pore space, based on the surface acreage of the |
|
proposed geologic storage facility as described in the amended |
|
order. |
|
(c) An unknown or unlocatable pore space owner is considered |
|
to have consented to integrate the owner's interest, provided that |
|
the proposed storage operator complied with the notice requirements |
|
under Section 125.007(b). An unknown or unlocatable pore space |
|
owner is eligible for equitable compensation under Section |
|
125.008(a)(8). |
|
(d) An offer made to integrate the nonconsenting pore space |
|
owners' interests is considered fair and reasonable under Section |
|
125.008(a)(7) if it is made in a similar manner as the offer made to |
|
the other owners of pore space in the geologic storage facility, |
|
taking into account any material differences in circumstances. |
|
(e) A final integration order entered by the commission |
|
under this section, unless modified or overturned by a final order |
|
from a court, shall be considered final and conclusive as to all |
|
facts, findings, and conclusions contained in the order for all |
|
purposes and as to all parties notified and their heirs, |
|
successors, and assigns. |
|
SECTION 7. Subchapter A, Chapter 5, Property Code, is |
|
amended by adding Section 5.0015 to read as follows: |
|
Sec. 5.0015. OWNERSHIP OF PORE SPACE UNDERLYING THE |
|
SURFACE. (a) Unless expressly modified, reserved, or altered by a |
|
deed, conveyance, lease, or contract, the ownership of the pore |
|
space underlying the surface of land is declared to be vested in and |
|
owned by the owner or owners of the surface estate of the land. |
|
(b) This section does not change the common law existing on |
|
the effective date of this section as it relates to the relationship |
|
between the mineral and surface estates. |
|
SECTION 8. Sections 27.002(19), (20), (22), and (23), Water |
|
Code, are amended to read as follows: |
|
(19) "Carbon [Anthropogenic carbon] dioxide" has the |
|
meaning assigned by Section 121.001, Natural Resources Code [: |
|
[(A) means: |
|
[(i) carbon dioxide that would otherwise |
|
have been released into the atmosphere that has been: |
|
[(a) stripped, segregated, or divided |
|
from any other fluid stream; or |
|
[(b) captured from an emissions |
|
source, including: |
|
[(1) an advanced clean energy |
|
project as defined by Section 382.003, Health and Safety Code, or |
|
another type of electric generation facility; or |
|
[(2) an industrial source of |
|
emissions; |
|
[(ii) any incidental associated substance |
|
derived from the source material for, or from the process of |
|
capturing, carbon dioxide described by Subparagraph (i); and |
|
[(iii) any substance added to carbon |
|
dioxide described by Subparagraph (i) to enable or improve the |
|
process of injecting the carbon dioxide; and |
|
[(B) does not include naturally occurring carbon |
|
dioxide that is recaptured, recycled, and reinjected as part of |
|
enhanced recovery operations]. |
|
(20) "Carbon [Anthropogenic carbon] dioxide injection |
|
well" means an injection well used to inject or transmit |
|
[anthropogenic] carbon dioxide into a reservoir. |
|
(22) "Geologic storage" means the underground storage |
|
of [anthropogenic] carbon dioxide in a storage facility |
|
[reservoir]. |
|
(23) "Geologic storage facility" means the portion of |
|
the underground reservoir, subsurface stratum, formation, cavity, |
|
or void, whether natural or artificially created, underground |
|
equipment, injection wells, and surface buildings and equipment |
|
used or to be used for the geologic storage of [anthropogenic] |
|
carbon dioxide and all surface and subsurface rights and |
|
appurtenances necessary to the operation of a facility for the |
|
geologic storage of [anthropogenic] carbon dioxide. The term |
|
includes any reasonable and necessary areal buffer and subsurface |
|
monitoring zones, pressure fronts, and other areas as may be |
|
necessary for this state to receive delegation of any federal |
|
underground injection control program relating to the storage of |
|
carbon dioxide. The term does not include a pipeline used to |
|
transport carbon dioxide from the facility at which the carbon |
|
dioxide is captured to the geologic storage facility. The storage |
|
of carbon dioxide incidental to or as part of enhanced recovery |
|
operations does not in itself automatically render a facility a |
|
geologic storage facility. |
|
SECTION 9. The heading to Subchapter C-1, Chapter 27, Water |
|
Code, is amended to read as follows: |
|
SUBCHAPTER C-1. GEOLOGIC STORAGE AND ASSOCIATED INJECTION OF |
|
[ANTHROPOGENIC] CARBON DIOXIDE |
|
SECTION 10. Section 27.043(a), Water Code, is amended to |
|
read as follows: |
|
(a) A person may not begin drilling or operating a [an |
|
anthropogenic] carbon dioxide injection well for geologic storage |
|
or constructing or operating a geologic storage facility regulated |
|
under this subchapter without first obtaining the necessary permits |
|
from the railroad commission. |
|
SECTION 11. Section 27.045, Water Code, is amended to read |
|
as follows: |
|
Sec. 27.045. FEES. (a) The railroad commission may impose |
|
fees to cover the cost of: |
|
(1) permitting, monitoring, and inspecting |
|
[anthropogenic] carbon dioxide injection wells for geologic |
|
storage and geologic storage facilities; and |
|
(2) enforcing and implementing this subchapter and |
|
rules adopted by the railroad commission under this subchapter. |
|
(b) Fees collected by the railroad commission under this |
|
section shall be deposited to the credit of the [anthropogenic] |
|
carbon dioxide storage trust fund established under Section |
|
121.003, Natural Resources Code. |
|
SECTION 12. Section 27.046(a), Water Code, is amended to |
|
read as follows: |
|
(a) The railroad commission may not issue a permit under |
|
rules adopted under this subchapter until the railroad commission |
|
issues to the applicant for the permit a letter of determination |
|
stating that drilling and operating the [anthropogenic] carbon |
|
dioxide injection well for geologic storage or operating the |
|
geologic storage facility will not injure any freshwater strata in |
|
that area and that the formation or stratum to be used for the |
|
geologic storage facility is not freshwater sand. |
|
SECTION 13. Section 27.0461, Water Code, is amended to read |
|
as follows: |
|
Sec. 27.0461. LETTER OF DETERMINATION FROM COMMISSION. A |
|
person making an application to the railroad commission for a |
|
permit under this subchapter shall submit with the application a |
|
letter of determination from the commission concluding that |
|
drilling and operating a [an anthropogenic] carbon dioxide |
|
injection well for geologic storage or constructing or operating a |
|
geologic storage facility will not impact or interfere with any |
|
previous or existing Class I injection well, including any |
|
associated waste plume, or any other injection well authorized or |
|
permitted by the commission. |
|
SECTION 14. Section 27.047, Water Code, is amended to read |
|
as follows: |
|
Sec. 27.047. RULES. The railroad commission shall adopt |
|
rules and procedures reasonably required for the performance of its |
|
powers, duties, and functions under this subchapter, including |
|
rules for: |
|
(1) the geologic storage and associated injection of |
|
[anthropogenic] carbon dioxide, including: |
|
(A) geologic site characterization; |
|
(B) area of review and corrective action; |
|
(C) well construction; |
|
(D) operation; |
|
(E) mechanical integrity testing; |
|
(F) monitoring; |
|
(G) well plugging; |
|
(H) postinjection site care; |
|
(I) site closure, including issuance of a |
|
certificate of closure; and |
|
(J) long-term stewardship; |
|
(2) the enforcement of this subchapter and rules |
|
adopted by the railroad commission under this subchapter; and |
|
(3) the collection and administration of: |
|
(A) fees imposed under Section 27.045; |
|
(B) penalties imposed for a violation of this |
|
subchapter or rules adopted by the railroad commission under this |
|
subchapter; and |
|
(C) funds received from financial responsibility |
|
mechanisms under Section 27.073. |
|
SECTION 15. Section 27.048, Water Code, is amended to read |
|
as follows: |
|
Sec. 27.048. CONSISTENCY WITH AND IMPLEMENTATION OF FEDERAL |
|
REQUIREMENTS. (a) Rules adopted by the railroad commission under |
|
this subchapter must be consistent with applicable rules or |
|
regulations adopted by the United States Environmental Protection |
|
Agency or another federal agency governing the injection and |
|
geologic storage of [anthropogenic] carbon dioxide. |
|
(b) If rules or regulations adopted to govern the geologic |
|
storage and associated injection of [anthropogenic] carbon dioxide |
|
under the federal Safe Drinking Water Act (42 U.S.C. Section 300f et |
|
seq.) or another federal statute allow this state to seek primary |
|
enforcement authority under the underground injection control |
|
program, the railroad commission shall seek primacy to administer |
|
and enforce the program for the geologic storage and associated |
|
injection of [anthropogenic] carbon dioxide in this state, |
|
including onshore and offshore geologic storage and associated |
|
injection. |
|
SECTION 16. Section 27.051(b-1), Water Code, is amended to |
|
read as follows: |
|
(b-1) The railroad commission may issue a permit under |
|
Subchapter C-1 if it finds: |
|
(1) that the injection and geologic storage of |
|
[anthropogenic] carbon dioxide will not endanger or injure any oil, |
|
gas, or other mineral formation; |
|
(2) that, with proper safeguards, both ground and |
|
surface fresh water can be adequately protected from carbon dioxide |
|
migration or displaced formation fluids; |
|
(3) that the injection of [anthropogenic] carbon |
|
dioxide will not endanger or injure human health and safety; |
|
(4) that the reservoir into which the [anthropogenic] |
|
carbon dioxide is injected is suitable for or capable of being made |
|
suitable for protecting against the escape or migration of |
|
[anthropogenic] carbon dioxide from the reservoir; and |
|
(5) that the applicant for the permit meets all of the |
|
other statutory and regulatory requirements for the issuance of the |
|
permit. |
|
SECTION 17. Sections 27.073(a) and (b-1), Water Code, are |
|
amended to read as follows: |
|
(a) A person to whom an injection well permit is issued may |
|
be required by the commission or railroad commission to maintain a |
|
performance bond or other form of financial security to ensure |
|
that: |
|
(1) an abandoned injection well is properly plugged; |
|
or |
|
(2) funds are available for plugging, postinjection |
|
site care, and closure of a [an anthropogenic] carbon dioxide |
|
injection well subject to Subchapter C-1. |
|
(b-1) The railroad commission is authorized to receive |
|
funds as the beneficiary of a financial responsibility mechanism |
|
established under this chapter for the proper management of a [an |
|
anthropogenic] carbon dioxide injection well or geologic storage |
|
facility. The funds shall be deposited to the credit of the |
|
[anthropogenic] carbon dioxide storage trust fund established |
|
under Section 121.003, Natural Resources Code. |
|
SECTION 18. Except as provided by Section 19 of this Act, |
|
not later than January 1, 2024, the Railroad Commission of Texas |
|
shall adopt rules as necessary to implement Chapters 124 and 125, |
|
Natural Resources Code, as added by this Act. |
|
SECTION 19. Not later than April 1, 2024, the Railroad |
|
Commission of Texas may adopt rules as necessary to allow the |
|
commission to assess a fee or fees in an amount sufficient to |
|
recover any costs incurred by the commission in implementing |
|
Chapter 121, Natural Resources Code, as amended by this Act, that |
|
are in addition to the costs incurred by the commission in |
|
performing its other functions. This section does not authorize |
|
the commission to assess a fee for performing any function that is |
|
not specific to the implementation of Chapter 121, Natural |
|
Resources Code. |
|
SECTION 20. This Act takes effect immediately if it |
|
receives a vote of two-thirds of all the members elected to each |
|
house, as provided by Section 39, Article III, Texas Constitution. |
|
If this Act does not receive the vote necessary for immediate |
|
effect, this Act takes effect September 1, 2023. |