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Committee advances bill to create long-term stewardship fund, seek state primacy for geologic carbon storage
Summary
House Bill 458, as amended, would create a long-term stewardship fund funded by a per-ton fee for injected CO2 and enable New Mexico to seek EPA primacy for Class VI geologic carbon-storage permits; the committee added authority for the Oil Conservation Commission to set a sufficient fee schedule.
SANTA FE — The House Appropriations and Finance Committee advanced House Bill 458 on Tuesday after adopting amendments that set a minimum fee for a long-term stewardship fund and direct the Oil Conservation Commission to adopt a fee schedule sufficient to meet projected needs.
The measure and its companion legislation are designed to allow New Mexico to apply for primacy from the U.S. Environmental Protection Agency for Class VI underground-injection control permits, which govern deep geological storage of carbon dioxide. Under testimony, the proposal establishes a fund that begins collecting a fee — not less than 10¢ per metric ton of injected CO2 under the amendment — and over time could grow to a projected fund balance (testimony estimated roughly $300 million based on potential storage capacity).
The sponsor explained amendments that add authority for the Oil Conservation Commission to "establish by rule a fee schedule sufficient to meet the projected needs of the fund" and that clarify the state would assume stewardship responsibilities (the amendment removed the phrase "legal responsibility," limiting the state's role to stewardship after certificate-of-completion conditions are met).
Experts from New Mexico Tech and agency staff described the proposed regulatory and monitoring framework and said parts of the program will mirror long-standing underground-injection permitting practice but require additional monitoring because carbon-storage projects have long-term stewardship needs. Jennifer Rainey of New Mexico Tech and staff from the Oil Conservation Division said the agency plans stepwise staffing increases and hopes to leverage existing Underground Injection Control expertise.
Public testimony was mixed. The Sierra Club's Camilla Feibelman and the Western Environmental Law Center raised policy and safety concerns, arguing carbon sequestration can prolong fossil-fuel extraction and that a five‑year liability-transfer period is short relative to the enduring timescales of stored CO2. The Western Environmental Law Center noted many states wait 10 to 50 years before assuming responsibility. The Center for Biological Diversity likewise urged opposition, citing risks to frontline communities and agency enforcement capacity.
Industry and labor groups testified in support. PNM said CCS could be an option if the technology and economics make sense; John Lipschutz of the New Mexico Federation of Labor said the projects would create construction jobs, noting prevailing-wage work is expected on many sites.
The committee adopted an amendment (2 3 1 7 0 7.2) to allow the Oil Conservation Commission to set fee schedules and clarify stewardship language. A do-pass motion on HB 458 (twice amended) was moved by Representative Sanchez and seconded by Vice Chair Chatfield; Representatives Hernandez and Little were shown in opposition on the record. The measure advances to further consideration.
