Luttrell, Rader comment on passage of carbon capture bill
OKLAHOMA CITY – A bill aimed at establishing clear guidelines for carbon capture and storage in Oklahoma has received final legislative approval and will take effect later this year. Rep. Ken Luttrell, R-Ponca City, co-authored Senate Bill 269 with Sen. Dave Rader to ensure the state maintains regulatory control over carbon sequestration efforts. The measure gives the Oklahoma Corporation Commission exclusive authority over Class VI CO2 injection wells and related storage units. “These companies are willing to invest millions in Oklahoma without asking for tax credits or special incentives from the state,” Luttrell said. “In return, this bill gives them regulatory certainty under Oklahoma’s authority, while also protecting landowners and ensuring long-term accountability.” SB269 was the result of collaboration between the Corporation Commission, the Petroleum Alliance of Oklahoma, the Oklahoma Farm Bureau and carbon capture companies. It sets requirements for CO2 storage site applications, including ownership of at least 63 percent of the land in the proposed unit, a submitted map of the affected area and notice to surface owners, mineral rights holders and owners of impacted wells. “Senate Bill 269 sets Oklahoma up to lead the nation in the fast-growing carbon capture and sequestration industry, an emerging field that is poised to spur private investment and economic growth in the state,” said Sen. Dave Rader, R-Tulsa. “This law ensures that oversight of this emerging industry stays with the Oklahoma Corporation Commission, not Washington bureaucrats, so rules and regulations addressing this developing sector reflect what’s best for all Oklahomans.” Public notice must be given through two publications, with one issued no fewer than 30 days before the Corporation Commission hearing. No injection may occur without commission authorization, and the agency is directed to issue a certificate of completion within 50 years of injection ending, assuming regulatory compliance and maintained mechanical integrity. The bill also creates the Class VI Carbon Sequestration Storage Facility Revolving Fund. Once a facility deposits $5 million or more into the fund, its fees will pause until expenditures bring the balance below $4 million. The Corporation Commission must provide electronic reports to legislative leaders evaluating the fund’s effectiveness. SB269 goes into effect Nov. 1.