An Act ENROLLED 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; modifying a dministrative rules to be promulgated by certain state agencies; requiring certain state agencies to comp ile and submit certain report to certain state officials by specifi ed date; updating statutory reference; and declaring an emergency. SUBJECT: Carbon sequestration 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 Commis sion 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 interac tion, including procedur es for directing applicants thro ugh the application process. B. The operator of a CO2 sequestration facility 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 operation of a CO 2 sequestration facility, after the Ope rator 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 ENR. S. B. NO. 200 Page 2 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 injection 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 Pr ogram, the Agency having jurisdiction may issue and enforce such orde rs, and may adopt, modify, repeal and enforce such emergency or permanent rules, including establishmen t of appropriate and sufficient fees to cover the cost of the program, financial sureties 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 the 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 im plement the provisions of this act the Oklahoma Carbon Capture and Geologic 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 owner s, 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 coul d be known through the exercise of due diligence, at least fif teen (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 newspa per of general circulation published in Oklahoma County, and b y 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 CO2 sequestration facility, as establis hed 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 . ENR. S. B. NO. 200 Page 3 E. In addition to all other powers and duties pr escribed 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 ha ve the authority to perf orm 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 un der that act with respec t 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 Secretary 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 passa ge and approval. ENR. S. B. NO. 200 Page 4 Passed the Senate the 24th day of May, 2023. Presiding Officer of the Senate Passed the House of Representatives the 25th day of May, 2023. Presiding Officer of the House of Representatives OFFICE OF THE GOVERNOR Received by the Office of the Governor this _______ _____________ day of ___________________, 20_______, at _______ o'clock _______ M. By: _______________________________ __ Approved by the Governor of the State of Oklahoma this _____ ____ day of _________________ __, 20_______, at _______ o'clock _______ M. ___________________________ ______ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this _______ ___ day of __________________, 20 _______, at _______ o'clock _______ M. By: _______________________________ __