HB1411
To Clarify The Regulation Of Carbon Capture And Sequestration; And To Establish The Carbon Dioxide Storage Fund.
AI-Generated Summary
This bill proposes to amend Arkansas law concerning the Oil and Gas Commission to clarify the regulation of carbon capture and sequestration. It would grant the commission specific powers and duties related to the underground storage of carbon dioxide, including implementing the Underground Injection Control program for Class VI wells. The bill establishes a "Carbon Dioxide Storage Fund" to be managed by the commission. This fund will be financed through fees collected on carbon dioxide injection for storage, application fees for storage permits, and annual well fees. The collected funds are earmarked for specific purposes, such as testing, monitoring, long-term inspection of storage wells, remediation of post-closure emergencies, plugging leaking wells, and other remedial response activities. The bill also specifies that a Certificate of Closure for a carbon dioxide storage project cannot be issued until at least ten years after the cessation of injection operations. The fund will receive a portion of the fee assessed per ton of carbon dioxide injected.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be entities involved in carbon capture and sequestration projects in Arkansas, particularly those operating or planning to operate Class VI injection wells. These entities may benefit from a clearer regulatory framework for their operations. Additionally, the general public and the environment stand to benefit from the establishment of the Carbon Dioxide Storage Fund, which is intended to ensure the long-term safety and integrity of underground carbon dioxide storage sites through monitoring, remediation, and emergency response measures.
Who Might Suffer?
The entities most directly and negatively impacted by this bill would be those engaged in the underground storage of carbon dioxide, as they will be subject to new fees and potentially increased regulatory requirements. Specifically, companies operating Class VI injection wells will be required to pay an annual well fee and a per-ton fee on injected carbon dioxide. Furthermore, the requirement for financial assurance conditioned on compliance and the extended closure period could represent increased financial and operational burdens for these companies. The application fee for a carbon dioxide storage permit, capped at $50,000, could also be a significant cost for potential project developers.