Provides relative to liability and damages resulting from carbon sequestration
Impact
The incorporation of these limitations on noneconomic damages signifies a significant shift in state laws concerning liability related to carbon sequestration activities. By capping potential compensation, the bill attempts to provide a stable and predictable legal environment for businesses involved in carbon sequestration, encouraging investment and operational engagement in this sector. This regulatory framework helps align with broader goals of economic development and sustainability, particularly in the context of climate change mitigation efforts.
Summary
House Bill 169 aims to amend the existing laws related to liability and damages specifically for the owners and operators of carbon sequestration facilities and pipelines. One of the primary objectives of this bill is to establish a cap on the maximum recoverable amount in civil liability cases for noneconomic damages, set at $250,000 per occurrence per person. However, in cases involving wrongful death or significant physical or mental injuries, this cap increases to $500,000. The bill is designed to provide clearer guidelines on liability and help protect operators from excessive claims potentially arising from their operations.
Sentiment
The sentiment surrounding HB 169 appears generally supportive among industry stakeholders and proponents of carbon sequestration, who argue that it fosters an atmosphere conducive to innovation and investment. However, there are concerns from some advocacy groups and legal experts who fear that the damage caps may unduly limit the rights of individuals who suffer serious harm. This creates a divide between those who prioritize economic growth and environmental initiatives versus those who advocate for robust legal protections for individuals.
Contention
A notable point of contention lies in the provisions regarding the cap on noneconomic damages and the implications for accountability. Critics argue that limiting damages undermines the legal recourse available to victims of negligence or accidents involving carbon sequestration operations. Additionally, the provision that specifies a reversal to a $1 million cap if the bill is deemed unconstitutional raises further questions about the stability and fairness of the proposed liability framework.
Establishes the Task Force on Local Impacts of Carbon Capture and Sequestration to study the benefits and revenue streams of carbon capture and sequestration projects.
Establishes the Task Force on Local Impacts of Carbon Capture and Sequestration to study the benefits and revenue streams of carbon capture and sequestration projects.
Requires that carbon dioxide injected for geologic sequestration using a Class VI injection well be transported to and sequestered in a storage facility in the Gulf of Mexico