ENGR. S. B. NO. 200 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 ENGROSSED SENATE BILL NO. 200 By: Rader of the Senate and Boles of the House 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; updating statutory reference; and declaring an emergency . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 27A O.S. 2021, Section 3-5-104, is amended to read as follows: Section 3-5-104. A. The Corporation Commission and the Department of Environmental Quality shall e xecute a Memorandum of Understanding to address areas in which the implementation of this act the Oklahoma Carbon Capture and Geologic Sequestration Act will require interagency cooperation or interaction, including procedures for directing applicants thro ugh the application process. B. The operator of a CO2 sequestration facili ty shall obtain a permit pursuant to this act the Oklahoma Carbon Capture and Geolo gic Sequestration Act from the Agency having jurisdiction prior to the ENGR. S. B. NO. 200 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 operation of a CO 2 sequestration facility, after the Oper ator provides notice of the application for such permit pursuant to subsection D of this section, and the Agency has a hearing thereon upon request; provided that no permit pursuant to this act the Oklahoma Carbon Capture and Geologic Sequestration 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 inj ection of carbon dioxide underground and incorporates any additiona l 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 Prog ram, the Agency having jurisdiction may issue and enforce such orde rs, and may adopt, modify, repeal and enforce such rules, including establishment of appropriate and sufficient fees, financial sureti es or bonds, and monitoring at CO2 sequestration facili ties, as may be necessary, for the purpose of regulating the drilli ng of CO2 injection wells related to a CO 2 sequestration facility, the injection and withdrawal of carbon dioxide, the operation of th e CO2 sequestration facility, CO2 injection well pluggi ng and abandonment, removal of surface buildings and equipment of t he CO2 sequestration facility and for any other purpose necessary to implement the ENGR. S. B. NO. 200 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 provisions of this act the Oklahoma Carbon Capture and Geolo gic Sequestration Act. D. The applicant for any permit to be issued pursuant to this act the Oklahoma Carbon Capture and Geologic Sequestration Act shall give all surface owners and mineral owners, including working interest and royalty owners, of the land to be encompas sed within the defined geographic boundary of the CO2 sequestration facility as established by 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, ret urn receipt requested. The applicant shall also give notice by one publication, at least fifteen (15) days prior to the hearing, in some newspaper o f general circulation published in Oklahoma County, and by one publication, at least fifteen (15) days prio r to the date of the hearing, in some newspaper published in the county, or in each county, i f 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 a nd an affidavit of mailing with the Agency prior to the hearing . E. In addition to all other powers and duties prescri bed in this act the Oklahoma Carbon Capture and Geolo gic Sequestration Act or otherwise by law, and unless otherwise specifically set for th in this act the Oklahoma Carbon Capture and Geolo gic Sequestration Act, the Agency having jurisdiction shall have the authority to perform ENGR. S. B. NO. 200 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 any and all acts necessary to carry out the purposes and requirements of the federal Safe Drinking Water Act, as amended, relating to this state ’s participation in the federal Under ground Injection Control Program established under that act with respect to the storage and/or sequestration of carbon dioxide. F. The Corporation Commission and Department of Environmental Quality, which are required to 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 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 reporting under this subsection shall consult the Sec retary and work in conjunction with the Office of the Secretary of Energy and Environment to en sure timely analysis. Identified areas and recommended modifications to the regulatory and statut ory 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 safety, 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. ENGR. S. B. NO. 200 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the Senate the 13th day of March, 2023. Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2023. Presiding Officer of the House of Representatives