To enact sections 1509.71, 1509.72, 1509.73, 1509.75, 1509.76, 1509.77, 1509.79, 5301.57, 5301.58, 5301.59, and 5301.60 of the Revised Code to establish a process to regulate carbon capture and storage technologies and the geologic sequestration of carbon dioxide for long-term storage.
SB136 establishes a comprehensive state framework for regulating carbon capture and storage projects in Ohio, focused on the underground injection and long-term geologic sequestration of carbon dioxide. The bill creates new definitions for carbon sequestration terms, authorizes carbon sequestration projects under UIC Class VI permits, and assigns the Division of Oil and Gas Resources Management sole and exclusive authority over regulation of these projects, subject to limited federal and water-quality exceptions. It also directs the chief of the division to adopt rules governing permitting, inspections, monitoring, reporting, safety, insurance, bonding, and closure requirements.
The bill sets out a detailed permitting and operational process for storage operators, including notice to affected property owners, hearings, standards for statutory consolidation of pore space interests, and requirements to protect oil and gas development, water supplies, and public safety. It also creates a post-injection closure process, including a minimum 50-year waiting period before a certificate of project completion may be issued unless an alternative timeline is approved, after which certain regulatory responsibilities and liabilities shift to the state. In addition, the bill establishes fees per metric ton of injected carbon dioxide and creates two funds to support administration and post-closure care.
SB136 would add new chapters of law governing carbon dioxide storage and would significantly affect oil and gas regulation, property rights, and environmental oversight in Ohio. It vests primary regulatory authority in the Division of Oil and Gas Resources Management, creates new permit, bonding, insurance, and monitoring requirements for carbon sequestration projects, and establishes rules for pore space ownership, consolidation, and compensation among affected owners. The bill also limits certain damage claims against compliant storage operators, while preserving specified claims for oil and gas interests and class II disposal wells, and creates state funds financed by injection fees to support administration and long-term post-closure care.
Based on the bill text and available context, the overall sentiment appears supportive and policy-driven, with sponsors framing the measure as a necessary statewide regulatory structure for an emerging energy and storage technology. The bill is presented as a comprehensive framework intended to provide certainty for project developers, landowners, and regulators. No committee transcript or vote history was provided, so there is no recorded public debate in the supplied materials to indicate broader support or opposition.
The main points of contention likely involve property rights, mineral rights, liability, and state preemption. The bill requires notice to pore space and subsurface owners, allows objections based on potential adverse effects to commercially valuable minerals such as coal or oil and gas, and preserves the dominance of severed mineral and oil and gas estates in many circumstances. It also limits damages against operators acting under valid permits, which may concern landowners or affected property owners, while the requirement for substantial insurance and bonding may be intended to address public and environmental concerns. Another likely issue is the bill’s concentration of authority in the Division of Oil and Gas Resources Management, which could draw scrutiny from local governments or other agencies even though the bill preserves limited local transportation authority.