87R10147 JAM-D
By: Rosenthal H.B. No. 2745
A BILL TO BE ENTITLED
AN ACT
relating to regulation by the Railroad Commission of Texas of the
geologic storage of anthropogenic carbon dioxide.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 91.802(c), Natural Resources Code, is
amended to read as follows:
(c) A conversion of an anthropogenic carbon dioxide
injection well from use for enhanced recovery operations to use for
geologic storage may be [is not] considered to be a change in the
purpose of the well under standards adopted by rule.
SECTION 2. Section 121.003(d), Natural Resources Code, is
amended to read as follows:
(d) The anthropogenic carbon dioxide storage trust fund may
be used by the commission only for:
(1) inspecting, monitoring, investigating, recording,
and reporting on geologic storage facilities and associated
anthropogenic carbon dioxide injection wells;
(2) long-term monitoring of geologic storage
facilities and associated anthropogenic carbon dioxide injection
wells;
(3) remediation of mechanical problems associated
with geologic storage facilities and associated anthropogenic
carbon dioxide injection wells;
(4) repairing mechanical leaks at geologic storage
facilities;
(5) plugging abandoned anthropogenic carbon dioxide
injection wells used for geologic storage;
(6) training and technology transfer related to
anthropogenic carbon dioxide injection and geologic storage; [and]
(7) compliance and enforcement activities related to
geologic storage and associated anthropogenic carbon dioxide
injection wells; and
(8) conducting the study required under Section
121.005.
SECTION 3. Chapter 121, Natural Resources Code, is amended
by adding Section 121.005 to read as follows:
Sec. 121.005. STUDY: SELECTION OF LOCATION AND TRANSFER OF
OWNERSHIP AND LIABILITY. (a) The commission shall conduct a study
to:
(1) identify potential locations on state-owned land
for geologic storage facilities for anthropogenic carbon dioxide;
(2) propose a regulatory program by which:
(A) the commission or another governmental
entity acquires title to anthropogenic carbon dioxide stored in the
geologic storage facility on a determination that permanent storage
of the anthropogenic carbon dioxide meets all applicable state and
federal requirements; and
(B) the transfer of title to the state under
Paragraph (A) relieves the producer of the carbon dioxide of
liability for any act or omission regarding the carbon dioxide in
the geologic storage facility; and
(3) identify methods for making pore space accessible
for the permanent geologic storage of anthropogenic carbon dioxide.
(b) The commission may contract with the Bureau of Economic
Geology at The University of Texas at Austin in identifying
potential locations under Subsection (a)(1).
(c) Not later than December 31, 2022, the commission shall
submit to the legislature the results of the study required by this
section.
(d) This section expires January 1, 2023.
SECTION 4. Sections 27.041(a) and (c), Water Code, are
amended to read as follows:
(a) The [Except as provided by Subsection (b), the] railroad
commission has jurisdiction over the geologic storage of carbon
dioxide in this state [, and the injection of carbon dioxide into, a
reservoir that is initially or may be productive of oil, gas, or
geothermal resources or a saline formation directly above or below
that reservoir].
(c) The [Except as provided by Subsection (b), the]
railroad commission has jurisdiction over a well used for the
purpose provided by Subsection (a) regardless of whether the well
was initially completed for that purpose or was initially completed
for another purpose and is converted to the purpose provided by
Subsection (a), including a well converted under Section 91.802(c),
Natural Resources Code.
SECTION 5. Section 27.047, Water Code, is amended to read as
follows:
Sec. 27.047. RULES. The railroad commission shall adopt
rules and procedures reasonably required for the performance of its
powers, duties, and functions under this subchapter, including
rules for:
(1) the geologic storage and associated injection of
anthropogenic carbon dioxide, including:
(A) geologic site characterization;
(B) area of review and corrective action;
(C) well construction;
(D) operation;
(E) mechanical integrity testing;
(F) monitoring;
(G) well plugging;
(H) postinjection site care;
(I) site closure; [and]
(J) liability for anthropogenic carbon dioxide
held in a permanent geologic storage facility; and
(K) long-term stewardship;
(2) the enforcement of this subchapter and rules
adopted by the railroad commission under this subchapter; and
(3) the collection and administration of:
(A) fees imposed under Section 27.045; and
(B) penalties imposed for a violation of this
subchapter or rules adopted by the railroad commission under this
subchapter.
SECTION 6. Section 27.048(b), Water Code, is amended to
read as follows:
(b) If rules or regulations adopted to govern the geologic
storage and associated injection of anthropogenic carbon dioxide
under the federal Safe Drinking Water Act (42 U.S.C. Section 300f et
seq.) or another federal statute allow this state to seek primary
enforcement authority under the underground injection control
program, [:
[(1)] the railroad commission shall seek primacy to
administer and enforce [the program subject to the jurisdiction
granted under this subchapter; and
[(2) this state shall seek primacy to administer and
enforce the program for] the geologic storage of carbon dioxide in,
and the injection of carbon dioxide into, a geologic [saline]
formation in this state.
SECTION 7. The following laws are repealed:
(1) Section 121.002(a), Natural Resources Code;
(2) Section 27.041(b), Water Code; and
(3) Section 27.042, Water Code.
SECTION 8. This Act takes effect September 1, 2021.