Texas 2021 - 87th Regular

Texas Senate Bill SB450 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R1598 JXC-F
2	2	By: Hancock S.B. No. 450
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the jurisdiction of the Railroad Commission of Texas
8	8	over the injection and geologic storage of carbon dioxide.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 382.501, Health and Safety Code, is
11	11	amended by adding Subdivisions (5) and (6) to read as follows:
12	12	(5) "Offshore" has the meaning assigned by Section
13	13	27.040, Water Code.
14	14	(6) "Railroad commission" means the Railroad
15	15	Commission of Texas.
16	16	SECTION 2. Section 382.502, Health and Safety Code, is
17	17	amended to read as follows:
18	18	Sec. 382.502. RULES; ENFORCEMENT. (a) The railroad
19	19	commission by rule may adopt standards for the location,
20	20	construction, maintenance, monitoring, and operation of a carbon
21	21	dioxide repository.
22	22	(b) If the United States Environmental Protection Agency
23	23	issues requirements regarding carbon dioxide sequestration, the
24	24	railroad commission shall ensure that the construction,
25	25	maintenance, monitoring, and operation of the carbon dioxide
26	26	repository under this subchapter comply with those requirements.
27	27	(c) Subchapter F, Chapter 27, Water Code, applies to the
28	28	civil, administrative, or criminal enforcement of a rule adopted by
29	29	the railroad commission under this section in the same manner as
30	30	Subchapter F, Chapter 27, Water Code, applies to the civil,
31	31	administrative, or criminal enforcement of a rule adopted by the
32	32	railroad commission under Chapter 27, Water Code.
33	33	(d) A penalty collected under this section shall be
34	34	deposited to the credit of the anthropogenic carbon dioxide storage
35	35	trust fund established under Section 121.003, Natural Resources
36	36	Code.
37	37	SECTION 3. Section 382.506(a), Health and Safety Code, is
38	38	amended to read as follows:
39	39	(a) The railroad commission by rule may establish standards
40	40	for the measurement, monitoring, and verification of the permanent
41	41	storage status of the carbon dioxide in the carbon dioxide
42	42	repository.
43	43	SECTION 4. Section 382.509, Health and Safety Code, is
44	44	amended to read as follows:
45	45	Sec. 382.509. RATES FOR TRANSPORTATION. Neither the
46	46	railroad commission nor the board may establish or regulate the
47	47	rates charged for the transportation of carbon dioxide to the
48	48	carbon dioxide repository.
49	49	SECTION 5. Section 121.003, Natural Resources Code, is
50	50	amended by amending Subsections (c) and (d) and adding Subsection
51	51	(c-1) to read as follows:
52	52	(c) Fees collected by the commission under Subchapter C-1,
53	53	Chapter 27, Water Code, [and] penalties imposed for violations of
54	54	that subchapter or rules adopted under that subchapter, and funds
55	55	received by the commission from financial responsibility
56	56	mechanisms under Section 27.073, Water Code, shall be deposited to
57	57	the credit of the anthropogenic carbon dioxide storage trust fund.
58	58	(c-1) Penalties imposed for violations of commission rules
59	59	adopted under Section 382.502, Health and Safety Code, shall be
60	60	deposited to the credit of the anthropogenic carbon dioxide storage
61	61	trust fund.
62	62	(d) The anthropogenic carbon dioxide storage trust fund may
63	63	be used by the commission only for:
64	64	(1) permitting, inspecting, monitoring,
65	65	investigating, recording, and reporting on geologic storage
66	66	facilities and associated anthropogenic carbon dioxide injection
67	67	wells;
68	68	(2) long-term monitoring of geologic storage
69	69	facilities and associated anthropogenic carbon dioxide injection
70	70	wells;
71	71	(3) remediation of mechanical problems associated
72	72	with geologic storage facilities and associated anthropogenic
73	73	carbon dioxide injection wells;
74	74	(4) repairing mechanical leaks at geologic storage
75	75	facilities;
76	76	(5) plugging abandoned anthropogenic carbon dioxide
77	77	injection wells used for geologic storage;
78	78	(6) training and technology transfer related to
79	79	anthropogenic carbon dioxide injection and geologic storage; and
80	80	(7) compliance and enforcement activities related to
81	81	geologic storage and associated anthropogenic carbon dioxide
82	82	injection wells.
83	83	SECTION 6. Sections 202.0545(c), (d), (f), and (h), Tax
84	84	Code, are amended to read as follows:
85	85	(c) To qualify for the tax rate reduction under this
86	86	section, the operator must:
87	87	(1) apply to the comptroller for the reduction and
88	88	include with the application any information and documentation that
89	89	the comptroller may require; and
90	90	(2) apply for a certification from[:
91	91	[(A)] the Railroad Commission of Texas[, if
92	92	carbon dioxide used in the project is to be sequestered in an oil or
93	93	natural gas reservoir;
94	94	[(B) the Texas Commission on Environmental
95	95	Quality, if carbon dioxide used in the project is to be sequestered
96	96	in a geological formation other than an oil or natural gas
97	97	reservoir; or
98	98	[(C) both the Railroad Commission of Texas and
99	99	the Texas Commission on Environmental Quality if both Paragraphs
100	100	(A) and (B) apply].
101	101	(d) The Railroad Commission of Texas [An agency to which an
102	102	operator applies for a certification under Subsection (c)(2)] may
103	103	issue a [the] certification under Subsection (c)(2) only if the
104	104	commission [agency] finds that, based on substantial evidence,
105	105	there is a reasonable expectation that:
106	106	(1) at least 99 percent of the carbon dioxide
107	107	sequestered as required by Subsection (a)(4) will remain
108	108	sequestered for at least 1,000 years; and
109	109	(2) the operator's planned sequestration program will
110	110	include appropriately designed monitoring and verification
111	111	measures that will be employed for a period sufficient to
112	112	demonstrate whether the sequestration program is performing as
113	113	expected.
114	114	(f) The comptroller shall approve the application if the
115	115	operator submits the certification [or certifications] required by
116	116	Subsection (c)(2) and if the comptroller determines that the oil is
117	117	otherwise eligible under this section.
118	118	(h) The comptroller and[,] the Railroad Commission of
119	119	Texas[, and the Texas Commission on Environmental Quality] may
120	120	adopt rules and establish procedures to implement and administer
121	121	this section.
122	122	SECTION 7. Subchapter C-1, Chapter 27, Water Code, is
123	123	amended by adding Section 27.040 to read as follows:
124	124	Sec. 27.040. DEFINITION. In this subchapter, "offshore"
125	125	means the area in the Gulf of Mexico seaward of the coast that is
126	126	within three marine leagues of the coast.
127	127	SECTION 8. Sections 27.041(a) and (c), Water Code, are
128	128	amended to read as follows:
129	129	(a) The [Except as provided by Subsection (b), the] railroad
130	130	commission has jurisdiction over the onshore and offshore injection
131	131	and geologic storage of carbon dioxide in this state[, and the
132	132	injection of carbon dioxide into, a reservoir that is initially or
133	133	may be productive of oil, gas, or geothermal resources or a saline
134	134	formation directly above or below that reservoir].
135	135	(c) The [Except as provided by Subsection (b), the] railroad
136	136	commission has jurisdiction over a well used for the purpose
137	137	provided by Subsection (a) regardless of whether the well was
138	138	initially completed for that purpose or was initially completed for
139	139	another purpose and is converted to the purpose provided by
140	140	Subsection (a).
141	141	SECTION 9. Section 27.047, Water Code, is amended to read as
142	142	follows:
143	143	Sec. 27.047. RULES. The railroad commission shall adopt
144	144	rules and procedures reasonably required for the performance of its
145	145	powers, duties, and functions under this subchapter, including
146	146	rules for:
147	147	(1) the geologic storage and associated injection of
148	148	anthropogenic carbon dioxide, including:
149	149	(A) geologic site characterization;
150	150	(B) area of review and corrective action;
151	151	(C) well construction;
152	152	(D) operation;
153	153	(E) mechanical integrity testing;
154	154	(F) monitoring;
155	155	(G) well plugging;
156	156	(H) postinjection site care;
157	157	(I) site closure; and
158	158	(J) long-term stewardship;
159	159	(2) the enforcement of this subchapter and rules
160	160	adopted by the railroad commission under this subchapter; and
161	161	(3) the collection and administration of:
162	162	(A) fees imposed under Section 27.045; [and]
163	163	(B) penalties imposed for a violation of this
164	164	subchapter or rules adopted by the railroad commission under this
165	165	subchapter; and
166	166	(C) funds received from financial responsibility
167	167	mechanisms under Section 27.073.
168	168	SECTION 10. Section 27.048(b), Water Code, is amended to
169	169	read as follows:
170	170	(b) If rules or regulations adopted to govern the geologic
171	171	storage and associated injection of anthropogenic carbon dioxide
172	172	under the federal Safe Drinking Water Act (42 U.S.C. Section 300f et
173	173	seq.) or another federal statute allow this state to seek primary
174	174	enforcement authority under the underground injection control
175	175	program,[:
176	176	[(1)] the railroad commission [shall seek primacy to
177	177	administer and enforce the program subject to the jurisdiction
178	178	granted under this subchapter; and
179	179	[(2) this state] shall seek primacy to administer and
180	180	enforce the program for the geologic storage and associated
181	181	injection of anthropogenic carbon dioxide in this state, including
182	182	onshore and offshore geologic storage and associated injection[,
183	183	and the injection of carbon dioxide into, a saline formation].
184	184	SECTION 11. Section 27.073(b-1), Water Code, is amended to
185	185	read as follows:
186	186	(b-1) The railroad commission is authorized to receive
187	187	funds as the beneficiary of a financial responsibility mechanism
188	188	established under this chapter for the proper management of an
189	189	anthropogenic carbon dioxide injection well or geologic storage
190	190	facility. The funds shall be deposited to the credit of the
191	191	anthropogenic carbon dioxide storage trust fund established under
192	192	Section 121.003, Natural Resources Code.
193	193	SECTION 12. Sections 27.022 and 27.041(b), Water Code, are
194	194	repealed.
195	195	SECTION 13. This Act takes effect immediately if it
196	196	receives a vote of two-thirds of all the members elected to each
197	197	house, as provided by Section 39, Article III, Texas Constitution.
198	198	If this Act does not receive the vote necessary for immediate
199	199	effect, this Act takes effect September 1, 2021.