To Clarify The Regulation Of Carbon Capture And Sequestration; And To Establish The Carbon Dioxide Storage Fund.
Summary
HB1411 amends Arkansas law governing the Oil and Gas Commission to clarify the state’s regulation of carbon capture and sequestration projects, including underground storage of carbon dioxide and Class VI injection wells under the federal Safe Drinking Water Act framework. The bill gives the commission explicit authority to adopt rules for carbon dioxide storage, require financial assurance from operators, determine when a storage project may receive a Certificate of Closure, and collect fees associated with permits, wells, and each ton of carbon dioxide injected for storage.
The measure also creates a new special revenue account, the Carbon Dioxide Storage Fund, and directs a portion of the new per-ton fee into that fund. Money in the fund is to be used for long-term monitoring and inspection, testing, emergency response, plugging leaking or abandoned wells, remediation of associated facilities, and other actions needed to protect drinking water and public health and safety after closure of a storage site. The bill further amends the list of special revenues to include fees collected under the new carbon storage provisions.
Impact
HB1411 expands the Oil and Gas Commission’s statutory authority over carbon capture and sequestration projects and establishes a dedicated funding mechanism for oversight and post-closure remediation. It affects operators of Class VI wells and carbon dioxide storage facilities by imposing application, annual well, and per-ton injection fees, along with financial assurance requirements. It also creates a new state special revenue fund and authorizes expenditures for monitoring, plugging, emergency repairs, and other remedial activities tied to carbon storage operations.
Sentiment
The bill appears to have broad legislative support based on the recorded floor votes, passing the House 98-0 and the Senate 20-4. That voting pattern suggests general agreement on the need to clarify regulatory authority and create a funding source for long-term oversight of carbon storage projects. The available record does not include committee testimony or detailed debate, so the public discussion reflected in the materials is limited, but the vote totals indicate overall favorable sentiment with some Senate opposition.
Contention
The main points of potential contention are the new fees imposed on carbon storage operators and the scope of the commission’s authority to regulate and spend from the new fund. Opponents may be concerned about added costs to carbon capture and sequestration projects, while supporters likely view the fees as necessary to ensure financial responsibility for monitoring, closure, and remediation. The Senate’s 20-4 vote suggests some disagreement remained, though the bill ultimately advanced with substantial support.