Committee advances substitute for HP 431 setting fees for carbon dioxide storage and creating a trust fund

Committee members reviewed a substitute for HP 431 that sets fees and creates a carbon dioxide storage facility trust fund for oversight and long‑term monitoring.

Under the substitute discussed in committee, the fee structure includes a 2‑cent charge per metric ton of carbon dioxide stored plus an additional 4 cents per ton (a total of 6 cents) to be deposited in the carbon dioxide storage facility trust fund. An 18‑cent per cubic ton fee is also proposed; committee discussion allocated that fee between the county hosting the project and the general fund (9 cents each). The substitute creates a filing fee of $175,000 for a petition to approve a storage facility, additional petition filing fees of $25,000, and an annual monitoring fee of $20,000. Committee members said the oil and gas board may review and adjust fees on a three‑year cycle.

Proponents said the fee levels are modestly higher than comparable states but intended to ensure industry contributes to long‑term monitoring and remediation costs. Committee members referenced prior legislation (House Bill 327, 2024) that dealt with permitting and the oil and gas board’s authority for Class VI injection permits.

After discussion and amendment, the committee reported the substitute favorably.

Why this matters: the bill sets a financial framework for carbon capture and storage projects, creating revenue for oversight and county compensation while imposing filing and monitoring fees on project applicants.

What happens next: the committee reported the substitute favorably and will return it to the legislative process for further consideration.