Reliant Leads Passage of Landmark Carbon Sequestration Bill in Alabama
May 10, 2024
By: Paul Elcan, Real estate Acquisition and Permitting
By: Paul Elcan, Real estate Acquisition and Permitting
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Montgomery, AL - May 10, 2024 - Reliant Carbon Capture & Storage ("Reliant") has played a pivotal role in ushering a transformative piece of carbon capture and storage (CCS) legislation through the Alabama Legislature during the 2024 session, culminating in its signing by Governor Kay Ivey on May 9th, 2024. The new law, widely considered a cornerstone for Alabama’s future in carbon management, was the result of months of collaborative effort led by Reliant, a prominent CCS development and policy firm. The company spearheaded the drafting of an original carbon sequestration bill and worked closely with the Alabama State Oil & Gas Board to integrate its provisions into a joint legislative package ."We saw a critical opportunity to position Alabama at the forefront of safe and effective carbon sequestration,” said Paul Elcan of Reliant. “This legislation provides the framework to do just that—balancing environmental stewardship, regulatory oversight, and private landowner rights.”
A Collaborative Legislative Push
The Reliant team worked side-by-side with lawmakers in both chambers, providing technical expertise and policy input as the bill moved through the legislative process. They also engaged with a range of stakeholders to negotiate amendments and address opposition concerns, ensuring broad-based support for the bill’s final version. Their efforts culminated in the successful passage of the legislation through both the Alabama House and Senate before receiving the governor’s signature.
Key Components of the Law
The new CCS legislation includes several critical provisions aimed at facilitating safe, long-term carbon storage in the state:
• Surface Ownership of Pore Space: The law confirms that surface landowners are the legal owners of the underground pore space used for CO₂ storage.
• Amalgamation of Storage Areas: Operators can now combine storage facility areas with consent from at least 66.6% of landowners, promoting the development of large-scale sequestration projects.
• Regulatory and Monitoring Trust Funds: An Administrative and Long-Term Trust Fund has been established under the Alabama State Oil & Gas Board to support oversight and post-closure monitoring of storage sites.
• Project Completion and CO₂ Transfer: The bill creates a formal process for issuing a Certificate of Project Completion, at which point title and monitoring responsibility for sequestered CO₂ is transferred to the State of Alabama.
Looking Ahead
With the legal foundation now in place, Reliant and other stakeholders are optimistic about the bill's potential to catalyze CCS projects in Alabama, drive investment, and contribute to the state’s decarbonization goals. "This is a major step forward for Alabama,” said Paul Elcan of Reliant. “It demonstrates how industry, regulators, and policymakers can come together to craft smart energy policy that protects the environment and drives innovation.”
A Collaborative Legislative Push
The Reliant team worked side-by-side with lawmakers in both chambers, providing technical expertise and policy input as the bill moved through the legislative process. They also engaged with a range of stakeholders to negotiate amendments and address opposition concerns, ensuring broad-based support for the bill’s final version. Their efforts culminated in the successful passage of the legislation through both the Alabama House and Senate before receiving the governor’s signature.
Key Components of the Law
The new CCS legislation includes several critical provisions aimed at facilitating safe, long-term carbon storage in the state:
• Surface Ownership of Pore Space: The law confirms that surface landowners are the legal owners of the underground pore space used for CO₂ storage.
• Amalgamation of Storage Areas: Operators can now combine storage facility areas with consent from at least 66.6% of landowners, promoting the development of large-scale sequestration projects.
• Regulatory and Monitoring Trust Funds: An Administrative and Long-Term Trust Fund has been established under the Alabama State Oil & Gas Board to support oversight and post-closure monitoring of storage sites.
• Project Completion and CO₂ Transfer: The bill creates a formal process for issuing a Certificate of Project Completion, at which point title and monitoring responsibility for sequestered CO₂ is transferred to the State of Alabama.
Looking Ahead
With the legal foundation now in place, Reliant and other stakeholders are optimistic about the bill's potential to catalyze CCS projects in Alabama, drive investment, and contribute to the state’s decarbonization goals. "This is a major step forward for Alabama,” said Paul Elcan of Reliant. “It demonstrates how industry, regulators, and policymakers can come together to craft smart energy policy that protects the environment and drives innovation.”
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