Req. No. 272 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 59th Legislature (2023) SENATE BILL 200 By: Rader AS INTRODUCED An Act relating to carbon sequestration; amending 27A O.S. 2021, Section 3 -5-104, which relates to permits and orders; requiring certain state agencies to compile and submit certain report to certain state officials by specified date; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 27A O.S. 2021, Se ction 3-5-104, is amended to read as follows: Section 3-5-104. A. The Corporation Commission and the Department of Environmental Quality shall execute a Memoran dum of Understanding to address areas in which the implementation of this act will require int eragency cooperation or interaction, including procedures for directing applicants through the application process. B. The operator of a CO 2 sequestration facili ty shall obtain a permit pursuant to t his act from the Agency having jurisdiction prior to the operation of a CO 2 sequestration facility, after the Operator provides notice of the application for such permit pursuant to subsection D of this section, and the Agency has a hearing Req. No. 272 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 thereon upon request; provided that no permit pursuant to this act is required if the facility operator obtains permission, by permit or order, by the Agency pursuant to the rules and regulations of the state’s federally approved Und erground Injection Control Program and such permission authorizes carbon sequestration or inje ction of carbon dioxide underground and incorporates any additional requirements adopted pursuant to subsection C of this section. C. To the extent not already a uthorized by laws governing the state’s federally approved Underground Injection Control Progr am, the Agency having jurisdiction may issue and enforce such orders, and may adopt, modify, repeal and enforce such rules, including establishment of appropriate and sufficient fees, financial sureti es or bonds, and monitoring at CO 2 sequestration facilit ies, as may be necessary, for the purpose of regulating the drilling of CO 2 injection wells related to a CO 2 sequestration facility, the injection and withdrawal of carbon dioxide, the operation of th e CO2 sequestration facility, CO 2 injection well pluggin g and abandonment, removal of surface buildings and equipment of the CO 2 sequestration facility and for any other purpose necessary to implement the provisions of this act. D. The applicant for any p ermit to be issued pursuant to this act shall give all surface owners and mineral owners, including working interest and royalty owners, of the land to be encompassed within the defined geographic boundary of the CO 2 sequestration Req. No. 272 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 facility as established b y the Agency, and whose addresses are known or could be known through the exercise of due diligence, at least fifteen (15) days’ notice of the hearing by mail, return receipt requested. The applicant shall also give n otice by one publication, at least fifteen (15) days prior to the hearing, in some newspaper of general circulation published in Oklahoma County, and by one publication, at least fifteen (15) days prior to the date of the hearing, in some newspaper publish ed in the county, or in each county, if there be more than one, in which the defined geographic boundary of the CO 2 sequestration facility, as established by the Agency, is situated. The applicant shall file proof of publication and an affidavit of mailin g with the Agency prior to the hearing . E. In addition to all other powers and duties prescri bed in this act or otherwise by law, and unless otherwise specifically set forth in this act, the Agency having jurisdiction shall have the authority to perform a ny and all acts necessary to carry out the purposes and requirements of the federal Safe Drink ing Water Act, as amended, relating to this state ’s participation in the federal Underground Injection Control Program established under that act with respect to the storage and/or seque stration of carbon dioxide. F. Any state environmental agency, the Corporation Commission, and Department of Environmental Quality, that is required t o comply with the federal Safe Drinking Water Act, 42 U.S.C. 300f et seq., as amended shall evaluate the regulatory and statutory framework that Req. No. 272 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 governs the agency and identify and report any areas in which modifications may be needed to the Secretary of Energ y and Environment to provide for the development of Underground Injection Control Class VI wells. The agencies reportin g under this subsection shall consult the Secretary and work in conjunction with the Office of Energy and Environment to en sure timely analysis. Identified areas and recommended modifications to the regulatory and statutory framework of the agency shall be submitted in a report to the Governor, Secretary of Energy and Environment, President Pro Tempore of the Senate, and the Speaker of the House of Representatives not later than August 1, 2023. SECTION 2. It being immediately necessary for the preservation of the public peace, health or sa fety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval. 59-1-272 RD 1/9/2023 12:18:03 PM