88R2436 JAM-F
 
  By: Nichols S.B. No. 2107
 
 
 
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.