The bill creates the geologic storage stewardship enterprise
(enterprise) in the department of natural resources (department) for the purpose of:
•
Imposing and determining the amount of annual stewardship fees;
•
Funding the long-term stewardship of geologic storage facilities in the state;
•
Funding the plugging, abandoning, reclaiming, and remediating of orphaned geologic storage facilities in the state; and
•
Ensuring that costs associated with long-term stewardship of geologic storage facilities are borne by geologic storage operators in the form of stewardship fees.
The bill creates the geologic storage stewardship enterprise board
(enterprise board) to administer the enterprise.
The bill requires each geologic storage operator to pay an annual
stewardship fee for each ton of injection carbon dioxide that the geologic storage operator injects in the state. The energy and carbon management commission (commission) collects the stewardship fee on the enterprise's behalf. All money collected as stewardship fees is credited to the geologic storage stewardship enterprise cash fund, which is created in the bill. Money in the geologic storage stewardship enterprise cash fund is continuously appropriated to the enterprise.
The enterprise and the commission may each adopt rules to
implement the bill.
Upon the commission's approval of a site closure: •
Ownership of the injection carbon dioxide, and ownership of any remaining facilities used to inject or store injection carbon dioxide, transfer to the state without payment of additional compensation;
•
Except in specified circumstances, the geologic storage operator is released from all regulatory liability associated with the continued storage of the injection carbon dioxide and the long-term stewardship of the associated geologic storage facility; and
•
The enterprise undertakes long-term stewardship of the injection carbon dioxide and any associated geologic storage facility.
The bill makes several updates to laws concerning the
administration of underground geothermal resources, including:
•
Clarifying that nontributary groundwater does not include designated groundwater, as these terms are defined in current law;
•
Exempting certain geothermal operations from needing a well permit from the state engineer;
•
Requiring the state engineer to notify the operator of a prior geothermal operation of an application for a proposed well, and allowing the operator the opportunity to request a hearing if the application causes concern for material injury to the prior geothermal operation;
•
Establishing that the authority to regulate shallow geothermal operations is shared by the state engineer and the state board of examiners;
•
Renaming the state board of examiners of water well construction and pump installation contractors as the state board of examiners of water well and ground heat exchanger contractors (state board of examiners); and
•
Regulating ground heat exchanger contractors in the same manner that currently exists for water well construction contractors and pump installation contractors.
