Amended IN Assembly June 06, 2023 Amended IN Senate March 30, 2023 Amended IN Senate March 20, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 438Introduced by Senator Caballero(Coauthor: Senator Newman)February 13, 2023An act to amend Sections 3130 and 3132 of the Public Resources Code, relating to carbon sequestration.LEGISLATIVE COUNSEL'S DIGESTSB 438, as amended, Caballero. Carbon sequestration: Carbon Capture, Removal, Utilization, and Storage Program: incidental and unintentional residual oil production.Existing law prohibits a well operator from injecting a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.This bill would exclude from the definition of enhanced oil recovery for purposes of the above prohibition the incidental and unintentional residual oil produced at the surface from a Class VI well, as defined, resulting from the injection of a concentrated carbon dioxide fluid into a the Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project. The bill would prohibit the carbon dioxide capture, removal, or sequestration project from selling, bartering, exchanging, or trading any incidental and unintentional residual oil produced at the surface and would require any oil produced from a Class VI well to be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production. Because a violation of this reporting requirement would be a crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 3130 of the Public Resources Code is amended to read:3130. For purposes of this article, the following terms mean the following:(a) Beneficial use has the same meaning as set forth in subdivision (f) of Section 13050 of the Water Code.(b) Class II well has the same meaning as set forth in Section 144.6 of Title 40 of the Code of Federal Regulations.(c) Class VI well has the same meaning as set forth in Section 144.6(f) of Title 40 of the Code of Federal Regulations.(d) Exempted aquifer has the same meaning as set forth in Section 144.3 of Title 40 of the Code of Federal Regulations.(e) State board means the State Water Resources Control Board.(f) Underground Injection Control Program means a program covering Class II wells for which the division has received primacy from the United States Environmental Protection Agency pursuant to Section 1425 of the federal Safe Drinking Water Act (42 U.S.C. Sec. 300h-4).SEC. 2. Section 3132 of the Public Resources Code, Code is amended to read:3132. (a) For purposes of this section, the following definitions apply:(1) Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.(2) Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.(3) Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.(4) Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.(b) (1) An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(2) For purposes of this subdivision, any incidental and unintentional residual oil produced at the surface from a Class VI well resulting from the injection of a concentrated carbon dioxide fluid into a Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project is not considered enhanced oil recovery. Carbon dioxide shall not be produced by a carbon dioxide capture, removal, or sequestration project. The carbon dioxide capture, removal, or sequestration project shall not sell, barter, exchange, or trade any incidental and unintentional residual oil produced at the surface. Any oil produced from a Class VI well shall be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Amended IN Assembly June 06, 2023 Amended IN Senate March 30, 2023 Amended IN Senate March 20, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 438Introduced by Senator Caballero(Coauthor: Senator Newman)February 13, 2023An act to amend Sections 3130 and 3132 of the Public Resources Code, relating to carbon sequestration.LEGISLATIVE COUNSEL'S DIGESTSB 438, as amended, Caballero. Carbon sequestration: Carbon Capture, Removal, Utilization, and Storage Program: incidental and unintentional residual oil production.Existing law prohibits a well operator from injecting a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.This bill would exclude from the definition of enhanced oil recovery for purposes of the above prohibition the incidental and unintentional residual oil produced at the surface from a Class VI well, as defined, resulting from the injection of a concentrated carbon dioxide fluid into a the Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project. The bill would prohibit the carbon dioxide capture, removal, or sequestration project from selling, bartering, exchanging, or trading any incidental and unintentional residual oil produced at the surface and would require any oil produced from a Class VI well to be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production. Because a violation of this reporting requirement would be a crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Assembly June 06, 2023 Amended IN Senate March 30, 2023 Amended IN Senate March 20, 2023
Amended IN Assembly June 06, 2023
Amended IN Senate March 30, 2023
Amended IN Senate March 20, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 438
Introduced by Senator Caballero(Coauthor: Senator Newman)February 13, 2023
Introduced by Senator Caballero(Coauthor: Senator Newman)
February 13, 2023
An act to amend Sections 3130 and 3132 of the Public Resources Code, relating to carbon sequestration.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 438, as amended, Caballero. Carbon sequestration: Carbon Capture, Removal, Utilization, and Storage Program: incidental and unintentional residual oil production.
Existing law prohibits a well operator from injecting a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.This bill would exclude from the definition of enhanced oil recovery for purposes of the above prohibition the incidental and unintentional residual oil produced at the surface from a Class VI well, as defined, resulting from the injection of a concentrated carbon dioxide fluid into a the Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project. The bill would prohibit the carbon dioxide capture, removal, or sequestration project from selling, bartering, exchanging, or trading any incidental and unintentional residual oil produced at the surface and would require any oil produced from a Class VI well to be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production. Because a violation of this reporting requirement would be a crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law prohibits a well operator from injecting a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.
This bill would exclude from the definition of enhanced oil recovery for purposes of the above prohibition the incidental and unintentional residual oil produced at the surface from a Class VI well, as defined, resulting from the injection of a concentrated carbon dioxide fluid into a the Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project. The bill would prohibit the carbon dioxide capture, removal, or sequestration project from selling, bartering, exchanging, or trading any incidental and unintentional residual oil produced at the surface and would require any oil produced from a Class VI well to be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production. Because a violation of this reporting requirement would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 3130 of the Public Resources Code is amended to read:3130. For purposes of this article, the following terms mean the following:(a) Beneficial use has the same meaning as set forth in subdivision (f) of Section 13050 of the Water Code.(b) Class II well has the same meaning as set forth in Section 144.6 of Title 40 of the Code of Federal Regulations.(c) Class VI well has the same meaning as set forth in Section 144.6(f) of Title 40 of the Code of Federal Regulations.(d) Exempted aquifer has the same meaning as set forth in Section 144.3 of Title 40 of the Code of Federal Regulations.(e) State board means the State Water Resources Control Board.(f) Underground Injection Control Program means a program covering Class II wells for which the division has received primacy from the United States Environmental Protection Agency pursuant to Section 1425 of the federal Safe Drinking Water Act (42 U.S.C. Sec. 300h-4).SEC. 2. Section 3132 of the Public Resources Code, Code is amended to read:3132. (a) For purposes of this section, the following definitions apply:(1) Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.(2) Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.(3) Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.(4) Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.(b) (1) An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(2) For purposes of this subdivision, any incidental and unintentional residual oil produced at the surface from a Class VI well resulting from the injection of a concentrated carbon dioxide fluid into a Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project is not considered enhanced oil recovery. Carbon dioxide shall not be produced by a carbon dioxide capture, removal, or sequestration project. The carbon dioxide capture, removal, or sequestration project shall not sell, barter, exchange, or trade any incidental and unintentional residual oil produced at the surface. Any oil produced from a Class VI well shall be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 3130 of the Public Resources Code is amended to read:3130. For purposes of this article, the following terms mean the following:(a) Beneficial use has the same meaning as set forth in subdivision (f) of Section 13050 of the Water Code.(b) Class II well has the same meaning as set forth in Section 144.6 of Title 40 of the Code of Federal Regulations.(c) Class VI well has the same meaning as set forth in Section 144.6(f) of Title 40 of the Code of Federal Regulations.(d) Exempted aquifer has the same meaning as set forth in Section 144.3 of Title 40 of the Code of Federal Regulations.(e) State board means the State Water Resources Control Board.(f) Underground Injection Control Program means a program covering Class II wells for which the division has received primacy from the United States Environmental Protection Agency pursuant to Section 1425 of the federal Safe Drinking Water Act (42 U.S.C. Sec. 300h-4).
SECTION 1. Section 3130 of the Public Resources Code is amended to read:
### SECTION 1.
3130. For purposes of this article, the following terms mean the following:(a) Beneficial use has the same meaning as set forth in subdivision (f) of Section 13050 of the Water Code.(b) Class II well has the same meaning as set forth in Section 144.6 of Title 40 of the Code of Federal Regulations.(c) Class VI well has the same meaning as set forth in Section 144.6(f) of Title 40 of the Code of Federal Regulations.(d) Exempted aquifer has the same meaning as set forth in Section 144.3 of Title 40 of the Code of Federal Regulations.(e) State board means the State Water Resources Control Board.(f) Underground Injection Control Program means a program covering Class II wells for which the division has received primacy from the United States Environmental Protection Agency pursuant to Section 1425 of the federal Safe Drinking Water Act (42 U.S.C. Sec. 300h-4).
3130. For purposes of this article, the following terms mean the following:(a) Beneficial use has the same meaning as set forth in subdivision (f) of Section 13050 of the Water Code.(b) Class II well has the same meaning as set forth in Section 144.6 of Title 40 of the Code of Federal Regulations.(c) Class VI well has the same meaning as set forth in Section 144.6(f) of Title 40 of the Code of Federal Regulations.(d) Exempted aquifer has the same meaning as set forth in Section 144.3 of Title 40 of the Code of Federal Regulations.(e) State board means the State Water Resources Control Board.(f) Underground Injection Control Program means a program covering Class II wells for which the division has received primacy from the United States Environmental Protection Agency pursuant to Section 1425 of the federal Safe Drinking Water Act (42 U.S.C. Sec. 300h-4).
3130. For purposes of this article, the following terms mean the following:(a) Beneficial use has the same meaning as set forth in subdivision (f) of Section 13050 of the Water Code.(b) Class II well has the same meaning as set forth in Section 144.6 of Title 40 of the Code of Federal Regulations.(c) Class VI well has the same meaning as set forth in Section 144.6(f) of Title 40 of the Code of Federal Regulations.(d) Exempted aquifer has the same meaning as set forth in Section 144.3 of Title 40 of the Code of Federal Regulations.(e) State board means the State Water Resources Control Board.(f) Underground Injection Control Program means a program covering Class II wells for which the division has received primacy from the United States Environmental Protection Agency pursuant to Section 1425 of the federal Safe Drinking Water Act (42 U.S.C. Sec. 300h-4).
3130. For purposes of this article, the following terms mean the following:
(a) Beneficial use has the same meaning as set forth in subdivision (f) of Section 13050 of the Water Code.
(b) Class II well has the same meaning as set forth in Section 144.6 of Title 40 of the Code of Federal Regulations.
(c) Class VI well has the same meaning as set forth in Section 144.6(f) of Title 40 of the Code of Federal Regulations.
(d) Exempted aquifer has the same meaning as set forth in Section 144.3 of Title 40 of the Code of Federal Regulations.
(e) State board means the State Water Resources Control Board.
(f) Underground Injection Control Program means a program covering Class II wells for which the division has received primacy from the United States Environmental Protection Agency pursuant to Section 1425 of the federal Safe Drinking Water Act (42 U.S.C. Sec. 300h-4).
SEC. 2. Section 3132 of the Public Resources Code, Code is amended to read:3132. (a) For purposes of this section, the following definitions apply:(1) Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.(2) Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.(3) Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.(4) Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.(b) (1) An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(2) For purposes of this subdivision, any incidental and unintentional residual oil produced at the surface from a Class VI well resulting from the injection of a concentrated carbon dioxide fluid into a Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project is not considered enhanced oil recovery. Carbon dioxide shall not be produced by a carbon dioxide capture, removal, or sequestration project. The carbon dioxide capture, removal, or sequestration project shall not sell, barter, exchange, or trade any incidental and unintentional residual oil produced at the surface. Any oil produced from a Class VI well shall be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production.
SEC. 2. Section 3132 of the Public Resources Code, Code is amended to read:
### SEC. 2.
3132. (a) For purposes of this section, the following definitions apply:(1) Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.(2) Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.(3) Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.(4) Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.(b) (1) An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(2) For purposes of this subdivision, any incidental and unintentional residual oil produced at the surface from a Class VI well resulting from the injection of a concentrated carbon dioxide fluid into a Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project is not considered enhanced oil recovery. Carbon dioxide shall not be produced by a carbon dioxide capture, removal, or sequestration project. The carbon dioxide capture, removal, or sequestration project shall not sell, barter, exchange, or trade any incidental and unintentional residual oil produced at the surface. Any oil produced from a Class VI well shall be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production.
3132. (a) For purposes of this section, the following definitions apply:(1) Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.(2) Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.(3) Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.(4) Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.(b) (1) An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(2) For purposes of this subdivision, any incidental and unintentional residual oil produced at the surface from a Class VI well resulting from the injection of a concentrated carbon dioxide fluid into a Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project is not considered enhanced oil recovery. Carbon dioxide shall not be produced by a carbon dioxide capture, removal, or sequestration project. The carbon dioxide capture, removal, or sequestration project shall not sell, barter, exchange, or trade any incidental and unintentional residual oil produced at the surface. Any oil produced from a Class VI well shall be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production.
3132. (a) For purposes of this section, the following definitions apply:(1) Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.(2) Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.(3) Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.(4) Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.(b) (1) An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(2) For purposes of this subdivision, any incidental and unintentional residual oil produced at the surface from a Class VI well resulting from the injection of a concentrated carbon dioxide fluid into a Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project is not considered enhanced oil recovery. Carbon dioxide shall not be produced by a carbon dioxide capture, removal, or sequestration project. The carbon dioxide capture, removal, or sequestration project shall not sell, barter, exchange, or trade any incidental and unintentional residual oil produced at the surface. Any oil produced from a Class VI well shall be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production.
3132. (a) For purposes of this section, the following definitions apply:
(1) Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.
(2) Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.
(3) Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.
(4) Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.
(b) (1) An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.
(2) For purposes of this subdivision, any incidental and unintentional residual oil produced at the surface from a Class VI well resulting from the injection of a concentrated carbon dioxide fluid into a Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project is not considered enhanced oil recovery. Carbon dioxide shall not be produced by a carbon dioxide capture, removal, or sequestration project. The carbon dioxide capture, removal, or sequestration project shall not sell, barter, exchange, or trade any incidental and unintentional residual oil produced at the surface. Any oil produced from a Class VI well shall be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 3.