Texas 2023 - 88th Regular

Texas House Bill HB4484 Compare Versions

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1	1	88R2436 JAM-F
2	2	By: Bonnen H.B. No. 4484
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the ownership of the pore space underlying the surface
8	8	of land and to the use of that space for the geologic storage of
9	9	carbon dioxide; authorizing a fee.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 382.502(d), Health and Safety Code, is
12	12	amended to read as follows:
13	13	(d) A penalty collected under this section shall be
14	14	deposited to the credit of the [anthropogenic] carbon dioxide
15	15	storage trust fund established under Section 121.003, Natural
16	16	Resources Code.
17	17	SECTION 2. Section 91.802, Natural Resources Code, is
18	18	amended to read as follows:
19	19	Sec. 91.802. LAW APPLICABLE TO GEOLOGIC STORAGE FACILITIES
20	20	AND ASSOCIATED INJECTION WELLS. (a) In this section,
21	21	"[anthropogenic] carbon dioxide injection well" has the meaning
22	22	assigned by Section 27.002, Water Code.
23	23	(b) If a well is authorized as or converted to a [an
24	24	anthropogenic] carbon dioxide injection well for geologic storage,
25	25	Subchapter C-1, Chapter 27, Water Code, applies to the well.
26	26	(c) A conversion of a [an anthropogenic] carbon dioxide
27	27	injection well from use for enhanced recovery operations to use for
28	28	geologic storage is not considered to be a change in the purpose of
29	29	the well.
30	30	SECTION 3. The heading to Chapter 121, Natural Resources
31	31	Code, is amended to read as follows:
32	32	CHAPTER 121. OWNERSHIP AND STEWARDSHIP OF [ANTHROPOGENIC] CARBON
33	33	DIOXIDE
34	34	SECTION 4. Section 121.001, Natural Resources Code, is
35	35	amended by amending Subdivision (1) and adding Subdivisions (1-a),
36	36	(1-b), and (2-a) to read as follows:
37	37	(1) "Anthropogenic carbon dioxide[,]" means:
38	38	(A) carbon dioxide that would otherwise have been
39	39	released into the atmosphere that has been:
40	40	(i) stripped, segregated, or divided from
41	41	any other fluid stream; or
42	42	(ii) captured from an emissions source,
43	43	including:
44	44	(a) an advanced clean energy project
45	45	as defined by Section 382.003, Health and Safety Code, or another
46	46	type of electric generation facility; or
47	47	(b) an industrial source of
48	48	emissions;
49	49	(B) any incidental associated substance derived
50	50	from the source material for, or from the process of capturing,
51	51	carbon dioxide described by Paragraph (A); and
52	52	(C) any substance added to carbon dioxide
53	53	described by Paragraph (A) to enable or improve the process of
54	54	injecting the carbon dioxide ["anthropogenic carbon dioxide
55	55	injection well," and "geologic storage facility" have the meanings
56	56	assigned by Section 27.002, Water Code].
57	57	(1-a) "Carbon dioxide" means the chemical compound
58	58	composed of one carbon and two oxygen atoms. The term includes:
59	59	(A) anthropogenic carbon dioxide;
60	60	(B) naturally occurring carbon dioxide;
61	61	(C) carbon dioxide captured directly from the
62	62	atmosphere; and
63	63	(D) phases, mixtures, and combinations of carbon
64	64	dioxide, whether fluid, liquid, or gaseous, stripped, segregated,
65	65	or divided from any other fluid stream thereof, together with
66	66	incidental associated substances derived from the source materials
67	67	and the capture process and any substances added to the stream to
68	68	enable or improve the injection process.
69	69	(1-b) "Carbon dioxide injection well" means an
70	70	injection well used to inject or transmit carbon dioxide into a
71	71	geologic storage facility.
72	72	(2-a) "Geologic storage" and "geologic storage
73	73	facility" have the meanings assigned by Section 27.002, Water Code.
74	74	SECTION 5. Sections 121.002, 121.003, and 121.004, Natural
75	75	Resources Code, are amended to read as follows:
76	76	Sec. 121.002. OWNERSHIP OF [ANTHROPOGENIC] CARBON DIOXIDE.
77	77	(a) This section does not apply to [anthropogenic] carbon dioxide
78	78	injected for the primary purpose of enhanced recovery operations.
79	79	(b) Except when title to the stored carbon dioxide and the
80	80	geologic storage facility has been transferred to the state under
81	81	Section 124.004(a) and unless [Unless] otherwise expressly
82	82	provided by a contract, bill of sale, deed, mortgage, deed of trust,
83	83	or other legally binding document or by other law, [anthropogenic]
84	84	carbon dioxide stored in a geologic storage facility is considered
85	85	to be the property of the storage operator or the storage operator's
86	86	heirs, successors, or assigns.
87	87	(c) Unless otherwise expressly provided by contract, bill
88	88	of sale, deed, mortgage, deed of trust, or other legally binding
89	89	document or by other law [Absent a final judgment of wilful
90	90	abandonment rendered by a court or a regulatory determination of
91	91	closure or abandonment], [anthropogenic] carbon dioxide stored in a
92	92	geologic storage facility is not considered to be the property of
93	93	the owner of the surface or mineral estate in the land in which the
94	94	[anthropogenic] carbon dioxide is stored or of a person claiming
95	95	under the owner of the surface or mineral estate.
96	96	(d) Except when title to the stored carbon dioxide and the
97	97	geologic storage facility has been transferred to the state under
98	98	Section 124.004(a), the [The] owner, as designated by Subsection
99	99	(b) [or (c)], of the [anthropogenic] carbon dioxide stored in a
100	100	geologic storage facility, or the owner's heirs, successors, or
101	101	assigns, may produce, take, extract, or otherwise possess
102	102	[anthropogenic] carbon dioxide stored in the facility.
103	103	Sec. 121.003. [ANTHROPOGENIC] CARBON DIOXIDE STORAGE TRUST
104	104	FUND. (a) The [anthropogenic] carbon dioxide storage trust fund is
105	105	created as a special fund in the state treasury.
106	106	(b) The [anthropogenic] carbon dioxide storage trust fund
107	107	is an interest-bearing fund. Interest earned on money in the fund
108	108	shall be deposited to the credit of the fund.
109	109	(c) Fees collected by the commission under Subchapter C-1,
110	110	Chapter 27, Water Code, penalties imposed for violations of that
111	111	subchapter or rules adopted under that subchapter, [and] funds
112	112	received by the commission from financial responsibility
113	113	mechanisms under Section 27.073, Water Code, grants, donations, and
114	114	amounts allocated from any source, public or private, for the
115	115	purposes of this chapter, and fees for the transfer of title to the
116	116	stored carbon dioxide and the geologic storage facilities to the
117	117	state as described by Section 124.005 shall be deposited to the
118	118	credit of the [anthropogenic] carbon dioxide storage trust fund.
119	119	(c-1) Penalties imposed for violations of commission rules
120	120	adopted under Section 382.502, Health and Safety Code, shall be
121	121	deposited to the credit of the [anthropogenic] carbon dioxide
122	122	storage trust fund.
123	123	(d) The [anthropogenic] carbon dioxide storage trust fund
124	124	may be used by the commission only for:
125	125	(1) permitting, inspecting, monitoring,
126	126	investigating, recording, and reporting on geologic storage
127	127	facilities and associated [anthropogenic] carbon dioxide injection
128	128	wells;
129	129	(2) long-term monitoring of geologic storage
130	130	facilities and associated [anthropogenic] carbon dioxide injection
131	131	wells;
132	132	(3) remediation of [mechanical problems associated
133	133	with] geologic storage facilities and associated [anthropogenic]
134	134	carbon dioxide injection wells;
135	135	(4) resolution of mechanical problems associated
136	136	with, and repairing mechanical leaks at, geologic storage
137	137	facilities and associated carbon dioxide injection wells;
138	138	(5) plugging abandoned [anthropogenic] carbon dioxide
139	139	injection wells used for geologic storage;
140	140	(6) training and technology transfer related to
141	141	[anthropogenic] carbon dioxide injection and geologic storage;
142	142	[and]
143	143	(7) compliance and enforcement activities related to
144	144	geologic storage and associated [anthropogenic] carbon dioxide
145	145	injection wells; and
146	146	(8) costs, expenses, or claims arising from the
147	147	state's ownership of the stored carbon dioxide and the geologic
148	148	storage facility after the transfer of title to the stored carbon
149	149	dioxide and geologic storage facility to the state under Section
150	150	124.004(a).
151	151	Sec. 121.004. EXTRACTION OF STORED [ANTHROPOGENIC] CARBON
152	152	DIOXIDE. (a) The commission shall adopt rules allowing
153	153	[anthropogenic] carbon dioxide stored in a geologic storage
154	154	facility to be extracted for a commercial or industrial use.
155	155	(b) The commission has jurisdiction over the extraction of
156	156	[anthropogenic] carbon dioxide stored in a geologic storage
157	157	facility.
158	158	SECTION 6. Subtitle D, Title 3, Natural Resources Code, is
159	159	amended by adding Chapters 124 and 125 to read as follows:
160	160	CHAPTER 124. STATE RESPONSIBILITY FOR LONG-TERM STORAGE OF CARBON
161	161	DIOXIDE
162	162	Sec. 124.001. DEFINITIONS. In this chapter:
163	163	(1) "Carbon dioxide," "carbon dioxide injection
164	164	well," "commission," and "storage operator" have the meanings
165	165	assigned by Section 121.001.
166	166	(2) "Geologic storage" and "geologic storage
167	167	facility" have the meanings assigned by Section 27.002, Water Code.
168	168	Sec. 124.002. APPLICABILITY. (a) This chapter applies
169	169	only to the permanent sequestration of carbon dioxide in a geologic
170	170	storage facility.
171	171	(b) This chapter does not apply to a storage operator or
172	172	geologic storage facility owner who provides written notice that
173	173	the owner or operator does not intend to apply to the commission to
174	174	transfer title to the stored carbon dioxide and the geologic
175	175	storage facility to the state under Section 124.003(a).
176	176	Sec. 124.003. APPLICATION FOR TRANSFER OF TITLE AND CUSTODY
177	177	TO STATE. (a) After a storage operator or geologic storage
178	178	facility owner receives a certificate of closure from the
179	179	commission under rules adopted under Section 27.047(1)(I), Water
180	180	Code, a storage operator or geologic storage facility owner may
181	181	apply to the commission to transfer title to the stored carbon
182	182	dioxide and the geologic storage facility to the state.
183	183	(b) Not later than the 60th day after the date an
184	184	application is received under this section, the commission shall
185	185	consider the application and respond to the applicant. The
186	186	commission shall approve the application if:
187	187	(1) a waiting period of at least 10 years has passed
188	188	since the storage operator or geologic storage facility owner
189	189	received a certificate of closure;
190	190	(2) the storage operator or geologic storage facility
191	191	owner is in full compliance with all applicable laws governing the
192	192	injection and geologic storage of the carbon dioxide, including any
193	193	rules adopted under Section 27.047(1)(I), Water Code; and
194	194	(3) the stored carbon dioxide and the geologic storage
195	195	facility are stable and not expected to endanger any underground
196	196	source of drinking water.
197	197	(c) The commission may require less than a 10-year waiting
198	198	period under Subsection (b)(1) if the commission determines that
199	199	period is not necessary.
200	200	Sec. 124.004. RELEASE; TRANSFER OF TITLE TO STATE. (a) On
201	201	approval of the application by the commission under Section
202	202	124.003(b) and payment of the fee under Section 124.005, title to
203	203	the stored carbon dioxide and the geologic storage facility is
204	204	immediately transferred to the state. Title acquired by the state
205	205	under this subsection includes all rights, interests in, and
206	206	responsibilities associated with the stored carbon dioxide and the
207	207	geologic storage facility. A party may not transfer to the state,
208	208	and the state may not accept, any property interests or rights that
209	209	the party does not own or have legal authority to transfer.
210	210	(b) After title is acquired by the state under Subsection
211	211	(a), all responsibility and potential liability associated with the
212	212	stored carbon dioxide and the geologic storage facility is
213	213	transferred to the state.
214	214	(c) After title is acquired by the state under Subsection
215	215	(a), the storage operator, the geologic storage facility owner, the
216	216	person holding title to the carbon dioxide under Section 121.002,
217	217	and all persons who generated any stored carbon dioxide are
218	218	released from all regulatory requirements and liability associated
219	219	with the stored carbon dioxide and the geologic storage facility.
220	220	(d) Subsections (b) and (c) do not apply if the commission
221	221	determines, after notice and a hearing, that a person intentionally
222	222	concealed or misrepresented material facts related to an
223	223	application under Section 124.003(b).
224	224	(e) If a performance bond or other form of financial
225	225	security submitted under Section 27.073, Water Code, has a duration
226	226	that extends beyond the date of the issuance of the certificate of
227	227	closure, that performance bond or other form of financial security
228	228	shall be released.
229	229	(f) The state, through the commission, shall assume
230	230	responsibility for monitoring the stored carbon dioxide until the
231	231	federal government assumes responsibility for the management and
232	232	monitoring of the stored carbon dioxide.
233	233	Sec. 124.005. FEE FOR TRANSFER OF TITLE TO STORED CARBON
234	234	DIOXIDE TO STATE. On approval by the commission of an application
235	235	under Section 124.003(b), the storage operator or geologic storage
236	236	facility owner shall pay an additional per-ton fee for deposit to
237	237	the credit of the carbon dioxide storage trust fund established
238	238	under Section 121.003. The commission by rule shall determine the
239	239	amount of the fee, which may not exceed the amount of the costs,
240	240	expenses, or claims described by Section 121.003(d)(8) reasonably
241	241	expected to be incurred by or presented to the state.
242	242	Sec. 124.006. STATE ACCESS. After title to the stored
243	243	carbon dioxide and the geologic storage facility is transferred to
244	244	the state under Section 124.004(a), the state, through the
245	245	commission, assumes all access and ancillary related rights the
246	246	storage operator or geologic storage facility owner had to the
247	247	geologic storage facility.
248	248	Sec. 124.007. LIMITATION OF STATE RESPONSIBILITY. (a)
249	249	This chapter does not:
250	250	(1) alter or diminish the commission's defenses to
251	251	liability already established under existing law; or
252	252	(2) create any liability or responsibility on the part
253	253	of the commission to pay any costs under Section 121.003(d) from any
254	254	source other than the carbon dioxide storage trust fund established
255	255	under Section 121.003.
256	256	(b) The commission may not make payments for costs
257	257	associated with the activities described by Section 121.003(d) if
258	258	the amount of money in the carbon dioxide storage trust fund is
259	259	insufficient to pay the costs.
260	260	CHAPTER 125. INTEGRATION OF PORE SPACE FOR DEVELOPMENT OF
261	261	GEOLOGIC STORAGE FACILITY
262	262	Sec. 125.001. PURPOSE. The purposes of this chapter are to
263	263	protect correlative rights, conserve the natural resources of this
264	264	state, and enforce compliance with all applicable state and federal
265	265	laws in order to facilitate and optimize the use and production of
266	266	energy resources in this state, including the use of the pore space
267	267	within the state for carbon dioxide sequestration.
268	268	Sec. 125.002. APPLICABILITY. This chapter applies only to
269	269	the permanent sequestration of carbon dioxide in a geologic storage
270	270	facility.
271	271	Sec. 125.003. DEFINITIONS. In this chapter:
272	272	(1) "Carbon dioxide," "carbon dioxide injection
273	273	well," and "commission," have the meanings assigned by Section
274	274	121.001.
275	275	(2) "Geologic storage" and "geologic storage
276	276	facility" have the meanings assigned by Section 27.002, Water Code.
277	277	(3) "Pore space" means the subsurface materials and
278	278	geologic structures beneath the surface, including voids and
279	279	cavities, to be used for the storage of carbon dioxide.
280	280	(4) "Storage operator" means the person designated
281	281	under an integration order issued by the commission under Section
282	282	125.008 to conduct geologic storage operations.
283	283	Sec. 125.004. INTEGRATION OF PORE SPACE FOR DEVELOPMENT OF
284	284	GEOLOGIC STORAGE FACILITY. (a) A pore space owner whose pore space
285	285	is located in a proposed geologic storage facility may integrate
286	286	the owner's interests to develop the pore space as a proposed
287	287	geologic storage facility.
288	288	(b) If all of the owners of the pore space do not agree to
289	289	the integration of their interests, a pore space owner or proposed
290	290	storage operator may file an application with the commission
291	291	requesting an order under this chapter for the integration of all
292	292	interests and for the development of the pore space as a proposed
293	293	geologic storage facility.
294	294	Sec. 125.005. RULES. The commission shall adopt rules and
295	295	procedures reasonably required for the performance of its powers,
296	296	duties, and functions under this chapter.
297	297	Sec. 125.006. HEARING REQUIRED. Promptly after receiving
298	298	the completed application, the commission shall set the matter for
299	299	hearing. The hearing must be scheduled to be held on a date not
300	300	later than the 60th day after the date the completed application is
301	301	filed with the commission.
302	302	Sec. 125.007. NOTICE OF APPLICATION AND HEARING. (a)
303	303	Notice of the application and the time and place of the hearing on
304	304	the application must be mailed, postage prepaid, not later than the
305	305	31st day before the date of the hearing, to each owner of the
306	306	surface estate, mineral estate, or pore space in the proposed
307	307	geologic storage facility and to each owner of the surface estate,
308	308	mineral estate, or pore space adjacent to the proposed geologic
309	309	storage facility.
310	310	(b) Notice of the application and the time and place of the
311	311	hearing must be published once a week for two consecutive weeks in a
312	312	newspaper of general circulation authorized by law to publish legal
313	313	notices in the county or counties in which the land involved is
314	314	located. The first publication must be made not later than the 15th
315	315	day before the date of the hearing.
316	316	(c) Typographical errors in a notice that are not material
317	317	to the purpose of the notice do not affect the validity of the
318	318	notice.
319	319	Sec. 125.008. INTEGRATION ORDER; EFFECT OF OPERATIONS. (a)
320	320	The commission shall issue an integration order if the commission
321	321	finds that:
322	322	(1) the application meets all of the statutory and
323	323	regulatory requirements for the issuance of the integration order;
324	324	(2) the geologic storage facility into which the
325	325	carbon dioxide is injected is suitable for or capable of being made
326	326	suitable for storing the carbon dioxide;
327	327	(3) with proper safeguards, both groundwater and
328	328	surface water can be adequately protected;
329	329	(4) the injection of carbon dioxide into the geologic
330	330	storage facility will not endanger or injure human health or
331	331	safety;
332	332	(5) the injection and geologic storage of carbon
333	333	dioxide will not endanger or injure any oil, gas, or other mineral
334	334	formation in any material respect, or has been addressed in an
335	335	arrangement between the applicant and the mineral lessee or mineral
336	336	owner;
337	337	(6) the applicant has obtained the consent of the
338	338	owners representing at least 60 percent of the ownership of the pore
339	339	space, based on the surface acreage of the proposed geologic
340	340	storage facility;
341	341	(7) the applicant has made a fair and reasonable offer
342	342	to integrate the nonconsenting pore space owners' interests; and
343	343	(8) all pore space owners who did not consent to
344	344	integrate their interests in order to develop the pore space as a
345	345	proposed geologic storage facility but who are or will be subject to
346	346	an integration order are or will be equitably compensated for the
347	347	appurtenant and reasonable use of the pore space and surface.
348	348	(b) To amend an integration order in order to change the
349	349	size of a geologic storage facility, the storage operator must
350	350	demonstrate to the commission that the operator has obtained the
351	351	consent of the owners representing at least 60 percent of the
352	352	ownership of the pore space, based on the surface acreage of the
353	353	proposed geologic storage facility as described in the amended
354	354	order.
355	355	(c) An unknown or unlocatable pore space owner is considered
356	356	to have consented to integrate the owner's interest, provided that
357	357	the proposed storage operator complied with the notice requirements
358	358	under Section 125.007(b). An unknown or unlocatable pore space
359	359	owner is eligible for equitable compensation under Section
360	360	125.008(a)(8).
361	361	(d) An offer made to integrate the nonconsenting pore space
362	362	owners' interests is considered fair and reasonable under Section
363	363	125.008(a)(7) if it is made in a similar manner as the offer made to
364	364	the other owners of pore space in the geologic storage facility,
365	365	taking into account any material differences in circumstances.
366	366	(e) A final integration order entered by the commission
367	367	under this section, unless modified or overturned by a final order
368	368	from a court, shall be considered final and conclusive as to all
369	369	facts, findings, and conclusions contained in the order for all
370	370	purposes and as to all parties notified and their heirs,
371	371	successors, and assigns.
372	372	SECTION 7. Subchapter A, Chapter 5, Property Code, is
373	373	amended by adding Section 5.0015 to read as follows:
374	374	Sec. 5.0015. OWNERSHIP OF PORE SPACE UNDERLYING THE
375	375	SURFACE. (a) Unless expressly modified, reserved, or altered by a
376	376	deed, conveyance, lease, or contract, the ownership of the pore
377	377	space underlying the surface of land is declared to be vested in and
378	378	owned by the owner or owners of the surface estate of the land.
379	379	(b) This section does not change the common law existing on
380	380	the effective date of this section as it relates to the relationship
381	381	between the mineral and surface estates.
382	382	SECTION 8. Sections 27.002(19), (20), (22), and (23), Water
383	383	Code, are amended to read as follows:
384	384	(19) "Carbon [Anthropogenic carbon] dioxide" has the
385	385	meaning assigned by Section 121.001, Natural Resources Code [:
386	386	[(A) means:
387	387	[(i) carbon dioxide that would otherwise
388	388	have been released into the atmosphere that has been:
389	389	[(a) stripped, segregated, or divided
390	390	from any other fluid stream; or
391	391	[(b) captured from an emissions
392	392	source, including:
393	393	[(1) an advanced clean energy
394	394	project as defined by Section 382.003, Health and Safety Code, or
395	395	another type of electric generation facility; or
396	396	[(2) an industrial source of
397	397	emissions;
398	398	[(ii) any incidental associated substance
399	399	derived from the source material for, or from the process of
400	400	capturing, carbon dioxide described by Subparagraph (i); and
401	401	[(iii) any substance added to carbon
402	402	dioxide described by Subparagraph (i) to enable or improve the
403	403	process of injecting the carbon dioxide; and
404	404	[(B) does not include naturally occurring carbon
405	405	dioxide that is recaptured, recycled, and reinjected as part of
406	406	enhanced recovery operations].
407	407	(20) "Carbon [Anthropogenic carbon] dioxide injection
408	408	well" means an injection well used to inject or transmit
409	409	[anthropogenic] carbon dioxide into a reservoir.
410	410	(22) "Geologic storage" means the underground storage
411	411	of [anthropogenic] carbon dioxide in a storage facility
412	412	[reservoir].
413	413	(23) "Geologic storage facility" means the portion of
414	414	the underground reservoir, subsurface stratum, formation, cavity,
415	415	or void, whether natural or artificially created, underground
416	416	equipment, injection wells, and surface buildings and equipment
417	417	used or to be used for the geologic storage of [anthropogenic]
418	418	carbon dioxide and all surface and subsurface rights and
419	419	appurtenances necessary to the operation of a facility for the
420	420	geologic storage of [anthropogenic] carbon dioxide. The term
421	421	includes any reasonable and necessary areal buffer and subsurface
422	422	monitoring zones, pressure fronts, and other areas as may be
423	423	necessary for this state to receive delegation of any federal
424	424	underground injection control program relating to the storage of
425	425	carbon dioxide. The term does not include a pipeline used to
426	426	transport carbon dioxide from the facility at which the carbon
427	427	dioxide is captured to the geologic storage facility. The storage
428	428	of carbon dioxide incidental to or as part of enhanced recovery
429	429	operations does not in itself automatically render a facility a
430	430	geologic storage facility.
431	431	SECTION 9. The heading to Subchapter C-1, Chapter 27, Water
432	432	Code, is amended to read as follows:
433	433	SUBCHAPTER C-1. GEOLOGIC STORAGE AND ASSOCIATED INJECTION OF
434	434	[ANTHROPOGENIC] CARBON DIOXIDE
435	435	SECTION 10. Section 27.043(a), Water Code, is amended to
436	436	read as follows:
437	437	(a) A person may not begin drilling or operating a [an
438	438	anthropogenic] carbon dioxide injection well for geologic storage
439	439	or constructing or operating a geologic storage facility regulated
440	440	under this subchapter without first obtaining the necessary permits
441	441	from the railroad commission.
442	442	SECTION 11. Section 27.045, Water Code, is amended to read
443	443	as follows:
444	444	Sec. 27.045. FEES. (a) The railroad commission may impose
445	445	fees to cover the cost of:
446	446	(1) permitting, monitoring, and inspecting
447	447	[anthropogenic] carbon dioxide injection wells for geologic
448	448	storage and geologic storage facilities; and
449	449	(2) enforcing and implementing this subchapter and
450	450	rules adopted by the railroad commission under this subchapter.
451	451	(b) Fees collected by the railroad commission under this
452	452	section shall be deposited to the credit of the [anthropogenic]
453	453	carbon dioxide storage trust fund established under Section
454	454	121.003, Natural Resources Code.
455	455	SECTION 12. Section 27.046(a), Water Code, is amended to
456	456	read as follows:
457	457	(a) The railroad commission may not issue a permit under
458	458	rules adopted under this subchapter until the railroad commission
459	459	issues to the applicant for the permit a letter of determination
460	460	stating that drilling and operating the [anthropogenic] carbon
461	461	dioxide injection well for geologic storage or operating the
462	462	geologic storage facility will not injure any freshwater strata in
463	463	that area and that the formation or stratum to be used for the
464	464	geologic storage facility is not freshwater sand.
465	465	SECTION 13. Section 27.0461, Water Code, is amended to read
466	466	as follows:
467	467	Sec. 27.0461. LETTER OF DETERMINATION FROM COMMISSION. A
468	468	person making an application to the railroad commission for a
469	469	permit under this subchapter shall submit with the application a
470	470	letter of determination from the commission concluding that
471	471	drilling and operating a [an anthropogenic] carbon dioxide
472	472	injection well for geologic storage or constructing or operating a
473	473	geologic storage facility will not impact or interfere with any
474	474	previous or existing Class I injection well, including any
475	475	associated waste plume, or any other injection well authorized or
476	476	permitted by the commission.
477	477	SECTION 14. Section 27.047, Water Code, is amended to read
478	478	as follows:
479	479	Sec. 27.047. RULES. The railroad commission shall adopt
480	480	rules and procedures reasonably required for the performance of its
481	481	powers, duties, and functions under this subchapter, including
482	482	rules for:
483	483	(1) the geologic storage and associated injection of
484	484	[anthropogenic] carbon dioxide, including:
485	485	(A) geologic site characterization;
486	486	(B) area of review and corrective action;
487	487	(C) well construction;
488	488	(D) operation;
489	489	(E) mechanical integrity testing;
490	490	(F) monitoring;
491	491	(G) well plugging;
492	492	(H) postinjection site care;
493	493	(I) site closure, including issuance of a
494	494	certificate of closure; and
495	495	(J) long-term stewardship;
496	496	(2) the enforcement of this subchapter and rules
497	497	adopted by the railroad commission under this subchapter; and
498	498	(3) the collection and administration of:
499	499	(A) fees imposed under Section 27.045;
500	500	(B) penalties imposed for a violation of this
501	501	subchapter or rules adopted by the railroad commission under this
502	502	subchapter; and
503	503	(C) funds received from financial responsibility
504	504	mechanisms under Section 27.073.
505	505	SECTION 15. Section 27.048, Water Code, is amended to read
506	506	as follows:
507	507	Sec. 27.048. CONSISTENCY WITH AND IMPLEMENTATION OF FEDERAL
508	508	REQUIREMENTS. (a) Rules adopted by the railroad commission under
509	509	this subchapter must be consistent with applicable rules or
510	510	regulations adopted by the United States Environmental Protection
511	511	Agency or another federal agency governing the injection and
512	512	geologic storage of [anthropogenic] carbon dioxide.
513	513	(b) If rules or regulations adopted to govern the geologic
514	514	storage and associated injection of [anthropogenic] carbon dioxide
515	515	under the federal Safe Drinking Water Act (42 U.S.C. Section 300f et
516	516	seq.) or another federal statute allow this state to seek primary
517	517	enforcement authority under the underground injection control
518	518	program, the railroad commission shall seek primacy to administer
519	519	and enforce the program for the geologic storage and associated
520	520	injection of [anthropogenic] carbon dioxide in this state,
521	521	including onshore and offshore geologic storage and associated
522	522	injection.
523	523	SECTION 16. Section 27.051(b-1), Water Code, is amended to
524	524	read as follows:
525	525	(b-1) The railroad commission may issue a permit under
526	526	Subchapter C-1 if it finds:
527	527	(1) that the injection and geologic storage of
528	528	[anthropogenic] carbon dioxide will not endanger or injure any oil,
529	529	gas, or other mineral formation;
530	530	(2) that, with proper safeguards, both ground and
531	531	surface fresh water can be adequately protected from carbon dioxide
532	532	migration or displaced formation fluids;
533	533	(3) that the injection of [anthropogenic] carbon
534	534	dioxide will not endanger or injure human health and safety;
535	535	(4) that the reservoir into which the [anthropogenic]
536	536	carbon dioxide is injected is suitable for or capable of being made
537	537	suitable for protecting against the escape or migration of
538	538	[anthropogenic] carbon dioxide from the reservoir; and
539	539	(5) that the applicant for the permit meets all of the
540	540	other statutory and regulatory requirements for the issuance of the
541	541	permit.
542	542	SECTION 17. Sections 27.073(a) and (b-1), Water Code, are
543	543	amended to read as follows:
544	544	(a) A person to whom an injection well permit is issued may
545	545	be required by the commission or railroad commission to maintain a
546	546	performance bond or other form of financial security to ensure
547	547	that:
548	548	(1) an abandoned injection well is properly plugged;
549	549	or
550	550	(2) funds are available for plugging, postinjection
551	551	site care, and closure of a [an anthropogenic] carbon dioxide
552	552	injection well subject to Subchapter C-1.
553	553	(b-1) The railroad commission is authorized to receive
554	554	funds as the beneficiary of a financial responsibility mechanism
555	555	established under this chapter for the proper management of a [an
556	556	anthropogenic] carbon dioxide injection well or geologic storage
557	557	facility. The funds shall be deposited to the credit of the
558	558	[anthropogenic] carbon dioxide storage trust fund established
559	559	under Section 121.003, Natural Resources Code.
560	560	SECTION 18. Except as provided by Section 19 of this Act,
561	561	not later than January 1, 2024, the Railroad Commission of Texas
562	562	shall adopt rules as necessary to implement Chapters 124 and 125,
563	563	Natural Resources Code, as added by this Act.
564	564	SECTION 19. Not later than April 1, 2024, the Railroad
565	565	Commission of Texas may adopt rules as necessary to allow the
566	566	commission to assess a fee or fees in an amount sufficient to
567	567	recover any costs incurred by the commission in implementing
568	568	Chapter 121, Natural Resources Code, as amended by this Act, that
569	569	are in addition to the costs incurred by the commission in
570	570	performing its other functions. This section does not authorize
571	571	the commission to assess a fee for performing any function that is
572	572	not specific to the implementation of Chapter 121, Natural
573	573	Resources Code.
574	574	SECTION 20. This Act takes effect immediately if it
575	575	receives a vote of two-thirds of all the members elected to each
576	576	house, as provided by Section 39, Article III, Texas Constitution.
577	577	If this Act does not receive the vote necessary for immediate
578	578	effect, this Act takes effect September 1, 2023.