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SENATE FLOOR VERSION
February 15, 2024
SENATE BILL NO. 1569 By: Rader of the Senate
and
Boles of the House
An Act relating to the Oklahoma Carbon Sequestration
Enhancement Act; amending 27A O.S. 2021, Sections 3 -
4-101, 3-4-102, and 3-4-105, which relate to duties
of the Oklahoma Conservation Commission; clarifying
jurisdiction of the Commission as it relat es to
carbon sequestration; conform ing language; updating
statutory reference; and providing an effective date.
BE IT ENACTED BY THE PE OPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 27A O.S. 2021, Section 3 -4-101, is
amended to read as follows:
Section 3-4-101. A. This article shall be known and may be
cited as the “Oklahoma Carbon Sequestration Enhancement Act”.
B. The Oklahoma Legislature finds that:
1. Increasing levels of carbon dioxide and other gases in the
atmosphere have led to growing interest in national and
international forums for implem enting measures to slow and reverse
the buildup of such atmospheric constituents. These measures may
include, but are not limited to, the establishment of systems of
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trading in carbon dioxide credits or adoption of practices,
technologies, or other measures which decrease the concentration of
carbon dioxide in the atmosphere and improve air quality ;
2. Carbon sequestration practices have great potential to
increase carbon sequestration and help offset the impact of carbon
dioxide emissions on carbon dioxi de concentrations in the
atmosphere; and
3. It is in the interest of the citizens of this state that the
Oklahoma Conservation Commission document and q uantify carbon
sequestration associated with terrestrial and agricultur al carbon
sequestration practices . The provisions of this act shall not
include geologic carbon sequestration occurring in Underground
Injection Control (UIC) Class II or Class VI projects.
C. It is the intent of the Legislature that such efforts to
document and quantify carbon sequestration associated with
terrestrial and agricultural carbon sequestration practices will
enhance the ability of the state ’s landowners, well owners and
mineral owners to participate in any system of carbon dioxide
emissions marketing or trading that may be developed in the future.
D. For purposes of this act the Oklahoma Carbon Sequestration
Enhancement Act, “carbon sequestration practices ” and “carbon
capture and storage practices” shall mean and include:
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1. Improved agricultural practices, including, but not limited
to, decreasing soil tillage, planting and m anaging vegetation,
growing agricultural crops , or managing any existing vegetated area;
2. Improved natural resources conservation practices,
including, but not limited to, vegetation, revegetation,
forestation, afforestation , and reforestation on rangeland and other
agricultural and nonagricultural lands;
3. Practices involving the capture and sequestration or storage
of carbon dioxide emissions through carbon dioxide injection in
producing oil or gas wells, abandoned oil or gas wells, or other
wells;
4. Other improved methods of stewardship for the natural
resources of Oklahoma this state; and
5. 4. Other terrestrial and agricultur al methods of
sequestering, displacing , or avoiding carbon dioxide emissions
approved by the Oklahoma Conservation C ommission.
SECTION 2. AMENDATORY 27A O.S. 2021, Section 3 -4-102, is
amended to read as follows:
Section 3-4-102. The Oklahoma Conservation Commission shall:
1. Encourage the production of educational and a dvisory
materials regarding terrestrial and agricultur al carbon
sequestration and storage and the opportunities to participate in
any a related system of carbon dioxide emissions trading or
marketing that may be developed in the future; and
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2. Identify areas of research needed to better understand and
quantify terrestrial and agricultur al carbon sequestration and
storage involved in terrestrial and agricultural carbon
sequestration practices within the state.
SECTION 3. AMENDATORY 27A O.S. 2021, Section 3-4-105, is
amended to read as follows:
Section 3-4-105. A. The Oklahoma Conservation Commission is
hereby authorized to establish and administer the terrestrial and
agricultural carbon sequestration certification program. The
purposes of the program are to provide a mechanism for creating and
preserving carbon reserves in this state by encouraging voluntary
practices that protect or improve natural resources, to enable
Oklahomans to participate in market -based programs for natura l
resource protection, to pro vide a mechanism for Oklahomans to
benefit from the ecosystem services they provide, to verify carbon
sequestration or storage associated with terrestrial and
agricultural carbon sequestration practices, and to issue carbon
sequestration certificates associated with terrestrial and
agricultural carbon sequestration practices that the Commission
determines qualify for such certificates .
B. The Commission, in consultation with the Department of
Environmental Quality and with the advice of the terrestrial and
agricultural carbon sequestration stakeholder groups appointed by
the Commission, shall develop and promulgate rules as necessary to
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administer, implement , and enforce the provisions of this act
Section 3-4-101 et seq. of this title, including, but not limited
to, developing and implementing uniform standards and criteria for
verifying carbon sequestration and storage associated with
terrestrial and agricultur al carbon sequestration practices and
issuing carbon sequestration ce rtificates associated with ap proved
terrestrial and agricultur al carbon sequestration practices . In
promulgating the rules, the Commission shall develop the program to
be as consistent as possible with other gove rnmental programs
designed to create carbon reserves for the purpos e of voluntarily
reducing greenhouse gases or designed to certify terrestrial and
agricultural carbon sequestration practices .
C. In order for terrestrial and agricultur al carbon
sequestration to be verified and certified under thi s section, an
applicant shall file an application with the Commis sion. Along with
the application, the applicant shall submit a resource management
plan, or a project plan as applicabl e, detailing activities that
will increase or maintain existing trapped carbon includi ng, but not
limited to, improved forest management, alteration of or changes in
silviculture practices, and growing of designated crops and any
other such terrestrial and agricultur al carbon sequestration
practices including, but not limited to, the capture and
sequestration of carbon dioxide emissions th rough injection of
carbon dioxide underground.
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D. The Commission shall require applicants to submit such
information, forms, and reports as are necessary to properly and
efficiently administer the program.
E. Prior to granting a carbon sequestration cert ificate, the
Commission shall adopt criteria associated with the approved
terrestrial and agricultur al carbon sequestration practice for which
an application is submitted. In addition , the Commission shall
determine, based upon compliance with the site criteria, the volume
or numerical amount of credits or offsets achievable by the specific
terrestrial and agricultur al carbon sequestration practice .
F. Applications for a terrestrial and agricultur al carbon
sequestration certificate shall be approved or denied in accordance
with criteria promulgated by the Commission.
G. The Commission is authorized to establish fees associated
with the terrestrial and agricultur al carbon sequestration
certification program.
SECTION 4. This act shall become effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON ENERGY AND TELECOMMUNICATIONS
February 15, 2024 - DO PASS