September 4, 2007, Introduced by Senators BASHAM, ANDERSON, SCHAUER, GLEASON and JACOBS and referred to the Committee on Natural Resources and Environmental Affairs.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding part 58.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 58
CARBON DIOXIDE INJECTION WELLS
Sec. 5801. As used in this part:
(a) "Carbon dioxide injection well" means any hole or
penetration of the surface of the earth used to inject carbon
dioxide for underground storage or for enhanced recovery of
hydrocarbons and any associated machinery and equipment used for
that injection of carbon dioxide.
(b) "Fund" means the carbon dioxide injection well and
underground storage fund created in section 5805.
(c) "Underground storage facility" means any underground
formation where carbon dioxide is injected for sequestration.
Sec. 5803. (1) Before July 1, 2008, the department shall
promulgate rules to establish the requirements, procedures, and
standards for the safe and secure injection of carbon dioxide and
maintenance of underground storage of carbon dioxide. The rules
shall include, but not be limited to, permitting requirements, site
selection criteria, design and development criteria, operation
criteria, casing requirements, monitoring and measurement
requirements, safety requirements, closure and abandonment
requirements, and long-term monitoring.
(2) The department may establish and collect a fee for
permitting, monitoring, and inspecting an operator of a carbon
dioxide injection well or an underground storage facility. Money
collected under this subsection shall be transmitted to the state
treasurer. The state treasurer shall deposit the money into the
fund.
(3) On or after the effective date of the rules promulgated
under this section, a person shall not operate a carbon dioxide
injection well or underground storage facility unless that person
has obtained a permit in accordance with those rules.
Sec. 5805. (1) The carbon dioxide injection well and
underground storage fund is created within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments. The
department shall be the administrator of the fund for auditing
purposes.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department shall expend money from the fund, upon
appropriation, only for 1 or more of the following purposes
relating to carbon dioxide injection wells or underground storage
facilities:
(a) Activities related to permitting under this part,
including, but not limited to, development and issuance of permits,
compliance monitoring, inspections, carbon dioxide injection well
closures, underground storage facility closure, long-term
monitoring, and enforcement actions.
(b) Investigation of violations, complaints, pollution, and
events affecting public health.
(c) Design and review of remedial action plans.
(d) Mitigation of adverse environmental impacts.
(e) Legal costs, including expert witness fees, incurred in
administering this part.
(f) Costs of administering this part.
Sec. 5807. The department may enter on private property
subject to this part to observe, monitor, collect samples, and
examine records and facilities to determine compliance with this
part and prevent the escape of carbon dioxide from any carbon
dioxide injection well or underground storage facility.
Sec. 5809. If the department finds after notice and hearing
that a person has violated this act, the department may order fines
of $10,000.00 per day that the person is in violation of this act.