Alabama House Bill HB97

Alabama 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Oil and Gas Board, underground gas storage facilities, regulation, gas further defined to include abandonment of underground storage facilities, performance bonds, fees by board, Secs. 9-17-150, 9-17-151 am'd.

Impact

The proposed modifications to Sections 9-17-150 and 9-17-151 of the Code of Alabama provide the State Oil and Gas Board with expanded authority to regulate storage facilities for these additional gases. Specifically, the board may require performance bonds to ensure compliance with related operational regulations and guidelines. Consequently, this bill enhances standard regulatory practices, ensuring that there are sufficient safeguards associated with the management of these newly categorized gases, thus promoting a safer and more efficient storage environment while also addressing public safety concerns regarding underground storage operations.

Summary

House Bill 97 aims to amend the definition of 'gas' within the context of regulation by the State Oil and Gas Board of Alabama. This bill expands the definition to include not only natural gas but also carbon oxides, ammonia, hydrogen, nitrogen, and noble gases. By doing so, it aligns Alabama’s gas storage regulations with broader energy and environmental objectives, particularly in the realm of carbon capture and alternative energy storage solutions. This shift reflects a growing recognition of the importance of managing various gases, especially as the state navigates changes in energy consumption and production.

Contention

While the bill enjoys support aimed at advancing the state's regulatory framework to encompass modern energy practices, it could face scrutiny from environmental groups and stakeholders concerned about the implications of increased storage operations. Opponents may argue that the expansion of regulatory authority should incorporate stringent environmental protections and address potential risks associated with the underground storage of gases, particularly with respect to long-term safety and ecological impacts. Thus, while the bill positions the state to leverage emerging energy technologies, it must balance economic aspirations with environmental stewardship.