Measure would allow Ohio to regulate carbon capture and storage projects

Ohio lawmakers are considering legislation establishing a framework for state officials to regulate carbon capture and storage projects.

House Bill 170, pending before the Ohio House Natural Resources Committee, would amend state law to allow the state to regulate wells for carbon capture and storage projects. The bill has already had four hearings.

“Carbon capture and storage refers to technologies that capture carbon dioxide (CO2) emissions directly from industrial sources or the atmosphere and geologically store them securely up to a mile or more underground in extensively regulated geologic formations,” Christina H. Polesovsky, associate director of the American Petroleum Institute Ohio, said in prepared testimony to the committee.

The U.S. Environmental Protection Agency regulates Ohio’s carbon capture and sequestration or Class VI Underground Injection Control wells. In 2022, lawmakers directed the Ohio Department of Natural Resources to seek control over the wells from the feds, but need to make “statutory and regulatory changes that meet federal minimum standards,” Polesovsky told lawmakers.

“We believe it’s important to establish a predictable and defined state regulatory structure to streamline project development, mitigate potential environmental risks, and build public confidence in CCS projects by establishing regulations that account for our state’s unique geology, hydrology, and legacy industries,” Polesovsky said.

“Specifically, this legislation seeks to ensure efficient and responsible deployment of the technology by clarifying that the surface owner owns the rights of the pore space, subject to transparent and predictable standards and exceptions,” Polesovsky added. “Carbon capture and storage operators will execute leasing agreements with the surface owner; however, notification to mineral owners will be part of the well application process.”

According to the bill’s proponents, several states have enacted similar legislation, including Louisiana, North Dakota, West Virginia, and Wyoming. While the measure was met with approval from gas and energy groups, environmental groups unsurprisingly objected to it.

“There is a new push [nationwide] to inject massive, unprecedented amounts of carbon dioxide underground,” Bev Reed with the Buckeye Environmental Network told lawmakers in prepared testimony.

The proposal is more than a regulatory framework as it allows for companies “to dump carbon dioxide emissions under private property owners’ land and homes without their consent,” according to Reed.

“The question is: how is this bill constitutional? It is written in the US Constitution that we have a right to freedom of property. This bill is in direct conflict with that,” Reed told lawmakers. “It is unpatriotic and un-American to force people into a project of any kind dealing with their property rights, especially one that involves a pollutant like acidic carbon dioxide, which has many known health and environmental effects. It is in contrast with conservative values. Small landowners would be even more at risk if Ohio approves the use of state-owned land for CO2 storage, as is happening in West Virginia.

“What do Ohioans gain with this legislation? How do carbon capture and the associated bills truly benefit Ohioans?” Reed added. “Other states do not have bills with forced unitization and liability transfer provisions. Ohio should not be going out of its way to prioritize private companies at the expense of everyday Ohioans.”

Dallas Gerber with Growth Energy, an association of biofuel producers, said the measure “will help Ohio determine its own future in terms of energy production, without having to rely on a lengthy and sometimes arbitrary process run by the United States Environmental Protection Agency.”

Tom Buis, CEO of the American Carbon Alliance, told lawmakers that the economic stakes of the measure are significant.

“Historically, this CO2 has been sold to industries like beverage production or dry ice manufacturing,” Buis told lawmakers in prepared testimony. “However, CCS transforms this byproduct into an opportunity to meet the rising global demand for low-carbon fuels, positioning Ohio’s ethanol industry as a leader in sustainable energy markets.”