Bill Text: TX HB4484 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to the ownership of the pore space underlying the surface of land and to the use of that space for the geologic storage of carbon dioxide; authorizing a fee.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2023-03-21 - Referred to Energy Resources [HB4484 Detail]

Download: Texas-2023-HB4484-Introduced.html

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88R2436 JAM-F
By: Bonnen H.B. No. 4484

A BILL TO BE ENTITLED
AN ACT
relating to the ownership of the pore space underlying the surface
of land and to the use of that space for the geologic storage of
carbon dioxide; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 382.502(d), Health and Safety Code, is
amended to read as follows:
(d) A penalty collected under this section shall be
deposited to the credit of the [anthropogenic] carbon dioxide
storage trust fund established under Section 121.003, Natural
Resources Code.
SECTION 2. Section 91.802, Natural Resources Code, is
amended to read as follows:
Sec. 91.802. LAW APPLICABLE TO GEOLOGIC STORAGE FACILITIES
AND ASSOCIATED INJECTION WELLS. (a) In this section,
"[anthropogenic] carbon dioxide injection well" has the meaning
assigned by Section 27.002, Water Code.
(b) If a well is authorized as or converted to a [an
anthropogenic] carbon dioxide injection well for geologic storage,
Subchapter C-1, Chapter 27, Water Code, applies to the well.
(c) A conversion of a [an anthropogenic] carbon dioxide
injection well from use for enhanced recovery operations to use for
geologic storage is not considered to be a change in the purpose of
the well.
SECTION 3. The heading to Chapter 121, Natural Resources
Code, is amended to read as follows:
CHAPTER 121. OWNERSHIP AND STEWARDSHIP OF [ANTHROPOGENIC] CARBON
DIOXIDE
SECTION 4. Section 121.001, Natural Resources Code, is
amended by amending Subdivision (1) and adding Subdivisions (1-a),
(1-b), and (2-a) to read as follows:
(1) "Anthropogenic carbon dioxide[,]" means:
(A) carbon dioxide that would otherwise have been
released into the atmosphere that has been:
(i) stripped, segregated, or divided from
any other fluid stream; or
(ii) captured from an emissions source,
including:
(a) an advanced clean energy project
as defined by Section 382.003, Health and Safety Code, or another
type of electric generation facility; or
(b) an industrial source of
emissions;
(B) any incidental associated substance derived
from the source material for, or from the process of capturing,
carbon dioxide described by Paragraph (A); and
(C) any substance added to carbon dioxide
described by Paragraph (A) to enable or improve the process of
injecting the carbon dioxide ["anthropogenic carbon dioxide
injection well," and "geologic storage facility" have the meanings
assigned by Section 27.002, Water Code].
(1-a) "Carbon dioxide" means the chemical compound
composed of one carbon and two oxygen atoms. The term includes:
(A) anthropogenic carbon dioxide;
(B) naturally occurring carbon dioxide;
(C) carbon dioxide captured directly from the
atmosphere; and
(D) phases, mixtures, and combinations of carbon
dioxide, whether fluid, liquid, or gaseous, stripped, segregated,
or divided from any other fluid stream thereof, together with
incidental associated substances derived from the source materials
and the capture process and any substances added to the stream to
enable or improve the injection process.
(1-b) "Carbon dioxide injection well" means an
injection well used to inject or transmit carbon dioxide into a
geologic storage facility.
(2-a) "Geologic storage" and "geologic storage
facility" have the meanings assigned by Section 27.002, Water Code.
SECTION 5. Sections 121.002, 121.003, and 121.004, Natural
Resources Code, are amended to read as follows:
Sec. 121.002. OWNERSHIP OF [ANTHROPOGENIC] CARBON DIOXIDE.
(a) This section does not apply to [anthropogenic] carbon dioxide
injected for the primary purpose of enhanced recovery operations.
(b) Except when title to the stored carbon dioxide and the
geologic storage facility has been transferred to the state under
Section 124.004(a) and unless [Unless] otherwise expressly
provided by a contract, bill of sale, deed, mortgage, deed of trust,
or other legally binding document or by other law, [anthropogenic]
carbon dioxide stored in a geologic storage facility is considered
to be the property of the storage operator or the storage operator's
heirs, successors, or assigns.
(c) Unless otherwise expressly provided by contract, bill
of sale, deed, mortgage, deed of trust, or other legally binding
document or by other law [Absent a final judgment of wilful
abandonment rendered by a court or a regulatory determination of
closure or abandonment], [anthropogenic] carbon dioxide stored in a
geologic storage facility is not considered to be the property of
the owner of the surface or mineral estate in the land in which the
[anthropogenic] carbon dioxide is stored or of a person claiming
under the owner of the surface or mineral estate.
(d) Except when title to the stored carbon dioxide and the
geologic storage facility has been transferred to the state under
Section 124.004(a), the [The] owner, as designated by Subsection
(b) [or (c)], of the [anthropogenic] carbon dioxide stored in a
geologic storage facility, or the owner's heirs, successors, or
assigns, may produce, take, extract, or otherwise possess
[anthropogenic] carbon dioxide stored in the facility.
Sec. 121.003. [ANTHROPOGENIC] CARBON DIOXIDE STORAGE TRUST
FUND. (a) The [anthropogenic] carbon dioxide storage trust fund is
created as a special fund in the state treasury.
(b) The [anthropogenic] carbon dioxide storage trust fund
is an interest-bearing fund. Interest earned on money in the fund
shall be deposited to the credit of the fund.
(c) Fees collected by the commission under Subchapter C-1,
Chapter 27, Water Code, penalties imposed for violations of that
subchapter or rules adopted under that subchapter, [and] funds
received by the commission from financial responsibility
mechanisms under Section 27.073, Water Code, grants, donations, and
amounts allocated from any source, public or private, for the
purposes of this chapter, and fees for the transfer of title to the
stored carbon dioxide and the geologic storage facilities to the
state as described by Section 124.005 shall be deposited to the
credit of the [anthropogenic] carbon dioxide storage trust fund.
(c-1) Penalties imposed for violations of commission rules
adopted under Section 382.502, Health and Safety Code, shall be
deposited to the credit of the [anthropogenic] carbon dioxide
storage trust fund.
(d) The [anthropogenic] carbon dioxide storage trust fund
may be used by the commission only for:
(1) permitting, 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) resolution of mechanical problems associated
with, and repairing mechanical leaks at, geologic storage
facilities and associated carbon dioxide injection wells;
(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) costs, expenses, or claims arising from the
state's ownership of the stored carbon dioxide and the geologic
storage facility after the transfer of title to the stored carbon
dioxide and geologic storage facility to the state under Section
124.004(a).
Sec. 121.004. EXTRACTION OF STORED [ANTHROPOGENIC] CARBON
DIOXIDE. (a) The commission shall adopt rules allowing
[anthropogenic] carbon dioxide stored in a geologic storage
facility to be extracted for a commercial or industrial use.
(b) The commission has jurisdiction over the extraction of
[anthropogenic] carbon dioxide stored in a geologic storage
facility.
SECTION 6. Subtitle D, Title 3, Natural Resources Code, is
amended by adding Chapters 124 and 125 to read as follows:
CHAPTER 124. STATE RESPONSIBILITY FOR LONG-TERM STORAGE OF CARBON
DIOXIDE
Sec. 124.001. DEFINITIONS. In this chapter:
(1) "Carbon dioxide," "carbon dioxide injection
well," "commission," and "storage operator" have the meanings
assigned by Section 121.001.
(2) "Geologic storage" and "geologic storage
facility" have the meanings assigned by Section 27.002, Water Code.
Sec. 124.002. APPLICABILITY. (a) This chapter applies
only to the permanent sequestration of carbon dioxide in a geologic
storage facility.
(b) This chapter does not apply to a storage operator or
geologic storage facility owner who provides written notice that
the owner or operator does not intend to apply to the commission to
transfer title to the stored carbon dioxide and the geologic
storage facility to the state under Section 124.003(a).
Sec. 124.003. APPLICATION FOR TRANSFER OF TITLE AND CUSTODY
TO STATE. (a) After a storage operator or geologic storage
facility owner receives a certificate of closure from the
commission under rules adopted under Section 27.047(1)(I), Water
Code, a storage operator or geologic storage facility owner may
apply to the commission to transfer title to the stored carbon
dioxide and the geologic storage facility to the state.
(b) Not later than the 60th day after the date an
application is received under this section, the commission shall
consider the application and respond to the applicant. The
commission shall approve the application if:
(1) a waiting period of at least 10 years has passed
since the storage operator or geologic storage facility owner
received a certificate of closure;
(2) the storage operator or geologic storage facility
owner is in full compliance with all applicable laws governing the
injection and geologic storage of the carbon dioxide, including any
rules adopted under Section 27.047(1)(I), Water Code; and
(3) the stored carbon dioxide and the geologic storage
facility are stable and not expected to endanger any underground
source of drinking water.
(c) The commission may require less than a 10-year waiting
period under Subsection (b)(1) if the commission determines that
period is not necessary.
Sec. 124.004. RELEASE; TRANSFER OF TITLE TO STATE. (a) On
approval of the application by the commission under Section
124.003(b) and payment of the fee under Section 124.005, title to
the stored carbon dioxide and the geologic storage facility is
immediately transferred to the state. Title acquired by the state
under this subsection includes all rights, interests in, and
responsibilities associated with the stored carbon dioxide and the
geologic storage facility. A party may not transfer to the state,
and the state may not accept, any property interests or rights that
the party does not own or have legal authority to transfer.
(b) After title is acquired by the state under Subsection
(a), all responsibility and potential liability associated with the
stored carbon dioxide and the geologic storage facility is
transferred to the state.
(c) After title is acquired by the state under Subsection
(a), the storage operator, the geologic storage facility owner, the
person holding title to the carbon dioxide under Section 121.002,
and all persons who generated any stored carbon dioxide are
released from all regulatory requirements and liability associated
with the stored carbon dioxide and the geologic storage facility.
(d) Subsections (b) and (c) do not apply if the commission
determines, after notice and a hearing, that a person intentionally
concealed or misrepresented material facts related to an
application under Section 124.003(b).
(e) If a performance bond or other form of financial
security submitted under Section 27.073, Water Code, has a duration
that extends beyond the date of the issuance of the certificate of
closure, that performance bond or other form of financial security
shall be released.
(f) The state, through the commission, shall assume
responsibility for monitoring the stored carbon dioxide until the
federal government assumes responsibility for the management and
monitoring of the stored carbon dioxide.
Sec. 124.005. FEE FOR TRANSFER OF TITLE TO STORED CARBON
DIOXIDE TO STATE. On approval by the commission of an application
under Section 124.003(b), the storage operator or geologic storage
facility owner shall pay an additional per-ton fee for deposit to
the credit of the carbon dioxide storage trust fund established
under Section 121.003. The commission by rule shall determine the
amount of the fee, which may not exceed the amount of the costs,
expenses, or claims described by Section 121.003(d)(8) reasonably
expected to be incurred by or presented to the state.
Sec. 124.006. STATE ACCESS. After title to the stored
carbon dioxide and the geologic storage facility is transferred to
the state under Section 124.004(a), the state, through the
commission, assumes all access and ancillary related rights the
storage operator or geologic storage facility owner had to the
geologic storage facility.
Sec. 124.007. LIMITATION OF STATE RESPONSIBILITY. (a)
This chapter does not:
(1) alter or diminish the commission's defenses to
liability already established under existing law; or
(2) create any liability or responsibility on the part
of the commission to pay any costs under Section 121.003(d) from any
source other than the carbon dioxide storage trust fund established
under Section 121.003.
(b) The commission may not make payments for costs
associated with the activities described by Section 121.003(d) if
the amount of money in the carbon dioxide storage trust fund is
insufficient to pay the costs.
CHAPTER 125. INTEGRATION OF PORE SPACE FOR DEVELOPMENT OF
GEOLOGIC STORAGE FACILITY
Sec. 125.001. PURPOSE. The purposes of this chapter are to
protect correlative rights, conserve the natural resources of this
state, and enforce compliance with all applicable state and federal
laws in order to facilitate and optimize the use and production of
energy resources in this state, including the use of the pore space
within the state for carbon dioxide sequestration.
Sec. 125.002. APPLICABILITY. This chapter applies only to
the permanent sequestration of carbon dioxide in a geologic storage
facility.
Sec. 125.003. DEFINITIONS. In this chapter:
(1) "Carbon dioxide," "carbon dioxide injection
well," and "commission," have the meanings assigned by Section
121.001.
(2) "Geologic storage" and "geologic storage
facility" have the meanings assigned by Section 27.002, Water Code.
(3) "Pore space" means the subsurface materials and
geologic structures beneath the surface, including voids and
cavities, to be used for the storage of carbon dioxide.
(4) "Storage operator" means the person designated
under an integration order issued by the commission under Section
125.008 to conduct geologic storage operations.
Sec. 125.004. INTEGRATION OF PORE SPACE FOR DEVELOPMENT OF
GEOLOGIC STORAGE FACILITY. (a) A pore space owner whose pore space
is located in a proposed geologic storage facility may integrate
the owner's interests to develop the pore space as a proposed
geologic storage facility.
(b) If all of the owners of the pore space do not agree to
the integration of their interests, a pore space owner or proposed
storage operator may file an application with the commission
requesting an order under this chapter for the integration of all
interests and for the development of the pore space as a proposed
geologic storage facility.
Sec. 125.005. RULES. The commission shall adopt rules and
procedures reasonably required for the performance of its powers,
duties, and functions under this chapter.
Sec. 125.006. HEARING REQUIRED. Promptly after receiving
the completed application, the commission shall set the matter for
hearing. The hearing must be scheduled to be held on a date not
later than the 60th day after the date the completed application is
filed with the commission.
Sec. 125.007. NOTICE OF APPLICATION AND HEARING. (a)
Notice of the application and the time and place of the hearing on
the application must be mailed, postage prepaid, not later than the
31st day before the date of the hearing, to each owner of the
surface estate, mineral estate, or pore space in the proposed
geologic storage facility and to each owner of the surface estate,
mineral estate, or pore space adjacent to the proposed geologic
storage facility.
(b) Notice of the application and the time and place of the
hearing must be published once a week for two consecutive weeks in a
newspaper of general circulation authorized by law to publish legal
notices in the county or counties in which the land involved is
located. The first publication must be made not later than the 15th
day before the date of the hearing.
(c) Typographical errors in a notice that are not material
to the purpose of the notice do not affect the validity of the
notice.
Sec. 125.008. INTEGRATION ORDER; EFFECT OF OPERATIONS. (a)
The commission shall issue an integration order if the commission
finds that:
(1) the application meets all of the statutory and
regulatory requirements for the issuance of the integration order;
(2) the geologic storage facility into which the
carbon dioxide is injected is suitable for or capable of being made
suitable for storing the carbon dioxide;
(3) with proper safeguards, both groundwater and
surface water can be adequately protected;
(4) the injection of carbon dioxide into the geologic
storage facility will not endanger or injure human health or
safety;
(5) the injection and geologic storage of carbon
dioxide will not endanger or injure any oil, gas, or other mineral
formation in any material respect, or has been addressed in an
arrangement between the applicant and the mineral lessee or mineral
owner;
(6) the applicant has obtained the consent of the
owners representing at least 60 percent of the ownership of the pore
space, based on the surface acreage of the proposed geologic
storage facility;
(7) the applicant has made a fair and reasonable offer
to integrate the nonconsenting pore space owners' interests; and
(8) all pore space owners who did not consent to
integrate their interests in order to develop the pore space as a
proposed geologic storage facility but who are or will be subject to
an integration order are or will be equitably compensated for the
appurtenant and reasonable use of the pore space and surface.
(b) To amend an integration order in order to change the
size of a geologic storage facility, the storage operator must
demonstrate to the commission that the operator has obtained the
consent of the owners representing at least 60 percent of the
ownership of the pore space, based on the surface acreage of the
proposed geologic storage facility as described in the amended
order.
(c) An unknown or unlocatable pore space owner is considered
to have consented to integrate the owner's interest, provided that
the proposed storage operator complied with the notice requirements
under Section 125.007(b). An unknown or unlocatable pore space
owner is eligible for equitable compensation under Section
125.008(a)(8).
(d) An offer made to integrate the nonconsenting pore space
owners' interests is considered fair and reasonable under Section
125.008(a)(7) if it is made in a similar manner as the offer made to
the other owners of pore space in the geologic storage facility,
taking into account any material differences in circumstances.
(e) A final integration order entered by the commission
under this section, unless modified or overturned by a final order
from a court, shall be considered final and conclusive as to all
facts, findings, and conclusions contained in the order for all
purposes and as to all parties notified and their heirs,
successors, and assigns.
SECTION 7. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.0015 to read as follows:
Sec. 5.0015. OWNERSHIP OF PORE SPACE UNDERLYING THE
SURFACE. (a) Unless expressly modified, reserved, or altered by a
deed, conveyance, lease, or contract, the ownership of the pore
space underlying the surface of land is declared to be vested in and
owned by the owner or owners of the surface estate of the land.
(b) This section does not change the common law existing on
the effective date of this section as it relates to the relationship
between the mineral and surface estates.
SECTION 8. Sections 27.002(19), (20), (22), and (23), Water
Code, are amended to read as follows:
(19) "Carbon [Anthropogenic carbon] dioxide" has the
meaning assigned by Section 121.001, Natural Resources Code [:
[(A) means:
[(i) carbon dioxide that would otherwise
have been released into the atmosphere that has been:
[(a) stripped, segregated, or divided
from any other fluid stream; or
[(b) captured from an emissions
source, including:
[(1) an advanced clean energy
project as defined by Section 382.003, Health and Safety Code, or
another type of electric generation facility; or
[(2) an industrial source of
emissions;
[(ii) any incidental associated substance
derived from the source material for, or from the process of
capturing, carbon dioxide described by Subparagraph (i); and
[(iii) any substance added to carbon
dioxide described by Subparagraph (i) to enable or improve the
process of injecting the carbon dioxide; and
[(B) does not include naturally occurring carbon
dioxide that is recaptured, recycled, and reinjected as part of
enhanced recovery operations].
(20) "Carbon [Anthropogenic carbon] dioxide injection
well" means an injection well used to inject or transmit
[anthropogenic] carbon dioxide into a reservoir.
(22) "Geologic storage" means the underground storage
of [anthropogenic] carbon dioxide in a storage facility
[reservoir].
(23) "Geologic storage facility" means the portion of
the underground reservoir, subsurface stratum, formation, cavity,
or void, whether natural or artificially created, underground
equipment, injection wells, and surface buildings and equipment
used or to be used for the geologic storage of [anthropogenic]
carbon dioxide and all surface and subsurface rights and
appurtenances necessary to the operation of a facility for the
geologic storage of [anthropogenic] carbon dioxide. The term
includes any reasonable and necessary areal buffer and subsurface
monitoring zones, pressure fronts, and other areas as may be
necessary for this state to receive delegation of any federal
underground injection control program relating to the storage of
carbon dioxide. The term does not include a pipeline used to
transport carbon dioxide from the facility at which the carbon
dioxide is captured to the geologic storage facility. The storage
of carbon dioxide incidental to or as part of enhanced recovery
operations does not in itself automatically render a facility a
geologic storage facility.
SECTION 9. The heading to Subchapter C-1, Chapter 27, Water
Code, is amended to read as follows:
SUBCHAPTER C-1. GEOLOGIC STORAGE AND ASSOCIATED INJECTION OF
[ANTHROPOGENIC] CARBON DIOXIDE
SECTION 10. Section 27.043(a), Water Code, is amended to
read as follows:
(a) A person may not begin drilling or operating a [an
anthropogenic] carbon dioxide injection well for geologic storage
or constructing or operating a geologic storage facility regulated
under this subchapter without first obtaining the necessary permits
from the railroad commission.
SECTION 11. Section 27.045, Water Code, is amended to read
as follows:
Sec. 27.045. FEES. (a) The railroad commission may impose
fees to cover the cost of:
(1) permitting, monitoring, and inspecting
[anthropogenic] carbon dioxide injection wells for geologic
storage and geologic storage facilities; and
(2) enforcing and implementing this subchapter and
rules adopted by the railroad commission under this subchapter.
(b) Fees collected by the railroad commission under this
section shall be deposited to the credit of the [anthropogenic]
carbon dioxide storage trust fund established under Section
121.003, Natural Resources Code.
SECTION 12. Section 27.046(a), Water Code, is amended to
read as follows:
(a) The railroad commission may not issue a permit under
rules adopted under this subchapter until the railroad commission
issues to the applicant for the permit a letter of determination
stating that drilling and operating the [anthropogenic] carbon
dioxide injection well for geologic storage or operating the
geologic storage facility will not injure any freshwater strata in
that area and that the formation or stratum to be used for the
geologic storage facility is not freshwater sand.
SECTION 13. Section 27.0461, Water Code, is amended to read
as follows:
Sec. 27.0461. LETTER OF DETERMINATION FROM COMMISSION. A
person making an application to the railroad commission for a
permit under this subchapter shall submit with the application a
letter of determination from the commission concluding that
drilling and operating a [an anthropogenic] carbon dioxide
injection well for geologic storage or constructing or operating a
geologic storage facility will not impact or interfere with any
previous or existing Class I injection well, including any
associated waste plume, or any other injection well authorized or
permitted by the commission.
SECTION 14. 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, including issuance of a
certificate of closure; and
(J) 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;
(B) penalties imposed for a violation of this
subchapter or rules adopted by the railroad commission under this
subchapter; and
(C) funds received from financial responsibility
mechanisms under Section 27.073.
SECTION 15. Section 27.048, Water Code, is amended to read
as follows:
Sec. 27.048. CONSISTENCY WITH AND IMPLEMENTATION OF FEDERAL
REQUIREMENTS. (a) Rules adopted by the railroad commission under
this subchapter must be consistent with applicable rules or
regulations adopted by the United States Environmental Protection
Agency or another federal agency governing the injection and
geologic storage of [anthropogenic] carbon dioxide.
(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, the railroad commission shall seek primacy to administer
and enforce the program for the geologic storage and associated
injection of [anthropogenic] carbon dioxide in this state,
including onshore and offshore geologic storage and associated
injection.
SECTION 16. Section 27.051(b-1), Water Code, is amended to
read as follows:
(b-1) The railroad commission may issue a permit under
Subchapter C-1 if it finds:
(1) that the injection and geologic storage of
[anthropogenic] carbon dioxide will not endanger or injure any oil,
gas, or other mineral formation;
(2) that, with proper safeguards, both ground and
surface fresh water can be adequately protected from carbon dioxide
migration or displaced formation fluids;
(3) that the injection of [anthropogenic] carbon
dioxide will not endanger or injure human health and safety;
(4) that the reservoir into which the [anthropogenic]
carbon dioxide is injected is suitable for or capable of being made
suitable for protecting against the escape or migration of
[anthropogenic] carbon dioxide from the reservoir; and
(5) that the applicant for the permit meets all of the
other statutory and regulatory requirements for the issuance of the
permit.
SECTION 17. Sections 27.073(a) and (b-1), Water Code, are
amended to read as follows:
(a) A person to whom an injection well permit is issued may
be required by the commission or railroad commission to maintain a
performance bond or other form of financial security to ensure
that:
(1) an abandoned injection well is properly plugged;
or
(2) funds are available for plugging, postinjection
site care, and closure of a [an anthropogenic] carbon dioxide
injection well subject to Subchapter C-1.
(b-1) The railroad commission is authorized to receive
funds as the beneficiary of a financial responsibility mechanism
established under this chapter for the proper management of a [an
anthropogenic] carbon dioxide injection well or geologic storage
facility. The funds shall be deposited to the credit of the
[anthropogenic] carbon dioxide storage trust fund established
under Section 121.003, Natural Resources Code.
SECTION 18. Except as provided by Section 19 of this Act,
not later than January 1, 2024, the Railroad Commission of Texas
shall adopt rules as necessary to implement Chapters 124 and 125,
Natural Resources Code, as added by this Act.
SECTION 19. Not later than April 1, 2024, the Railroad
Commission of Texas may adopt rules as necessary to allow the
commission to assess a fee or fees in an amount sufficient to
recover any costs incurred by the commission in implementing
Chapter 121, Natural Resources Code, as amended by this Act, that
are in addition to the costs incurred by the commission in
performing its other functions. This section does not authorize
the commission to assess a fee for performing any function that is
not specific to the implementation of Chapter 121, Natural
Resources Code.
SECTION 20. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2023.