Signed by Governor Sarah Huckabee Sanders

Vote Smart's Synopsis:

Vote to pass a bill that amends and clarifies the regulation of carbon capture and sequestration and establish the carbon dioxide storage fund in Arkansas.

Highlights:

• Authorizes the commission to have the following specific powers and duties in the administration of the underground storage of carbon dioxide, the Underground Injection Control program regarding Class VI wells, and the Carbon Dioxide Stage fund (Sec. 1): 

• To adopt rules to govern the underground storage of carbon dioxide and to implement the Underground Injection Control program regarding Class VI wells, following applicable provisions of the Safe Drinking Water Act, 42 U.S.C. §300f et seq., as it existed on January 1, 2025;

• To require financial assurance conditioned on the performance of the duty to comply with all rules governing the underground storage of carbon dioxide and the Underground Injection Control program regarding Class VI wells;

• To determine, after notice and hearing, when a project for the underground storage of carbon dioxide is issued a Certificate of Closure that shall not be less than 10 years after the cessation of carbon dioxide injection operations;

• To collect the fees assessed by the commission under this subchapter and make deposits into the Oil and Gas Commission Fund or the Carbon Dioxide Storage Fund;

• To require the payment of a carbon dioxide storage permit application fee not to exceed $50,000 to be deposited into the Oil and Gas Commission Fund;

• To require an annual well fee of $1,000 per Class VI injection well permitted in the carbon dioxide storage facility to be deposited into the Oil and Gas Commission Fund; and

• To require a fee of $0.10 on each ton of carbon dioxide injected for storage with funds to be deposited as follows:

• $0.03 shall be paid into the Oil and Gas Commission Fund; and

• $0.07 shall be paid into the Carbon Dioxide Storage Fund to be utilized by the commission for:

• The testing, monitoring, and long-term inspection of underground carbon dioxide storage wells;

• Expenses incurred to remediate post-closure emergencies;

• The plugging of leaking wells; and

• Other remedial response activities associated with the carbon dioxide storage facility.

• Establishes the “Carbon Dioxide Storage Funding and specifies it shall consist of the following (Sec. 2):

• Fees assessed by the Oil and Gas Commission on each ton of carbon dioxide injected for storage under § 15-71-110(g);

• Gifts or grants; and

• Any other revenue as may be authorized by law.

• All money collected under the fund shall be deposited into the State Treasury to the credit of the fund as special revenues.

• Specifies the fund shall be used by the commission to (Sec. 3):

• Make expenditures through contracts to plug abandoned Class VI wells, monitor wells, and remediate associated production facilities;

• Make expenditures for emergency repairs to Class VI wells, monitoring wells or production facilities remaining after post closure which are endangering the public health and safety;

• Make expenditures for testing, monitoring, and long-term inspection of underground carbon dioxide storage wells and facilities after post-closure;

• Following the issuance of a Certificate of Closure and release of all financial assurance instruments, cover costs associated with the leakage of carbon dioxide from underground carbon dioxide storage facilities or any other operations and activities deemed necessary by the commission to protect underground sources of drinking water and for public health and safety; and

• Expenditures from the fund may be authorized by the commission through contracts or direct payments.

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 4).

Full Bill Text