Cal. PRC § 71461 — California Code / Code prc / Division 34 / Part 8 / Section 71461
Section 71461
Status: in_force

(a) On or before July 1, 2025, the secretary, in consultation with the state board, shall publish a framework for governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a carbon dioxide capture, removal, or sequestration project. The framework shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following:

(1) Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.

(2) A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.

(3) Standards to determine fair and reasonable compensation for owners of surface, mineral, and subsurface rights whose use of their property will be infringed upon by the geologic storage reservoir.

(4) A requirement to make a good faith offer of compensation by project proponents to the owners of surface, mineral, and subsurface rights before submission of an agreement.

(5) Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.

(6) Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a carbon dioxide capture, removal, or sequestration project operator.

(7) Standards for imposing sufficient financial responsibility requirements on carbon dioxide capture, removal, or sequestration project operators, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir or damage to public and environmental health and safety, and long-term costs associated with well plugging and abandonment, ongoing site care and monitoring, and site closure of the geologic storage reservoir.

(8) Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.

(9) Any other requirements necessary to comply with state or federal legal or constitutional standards.

(b) In developing the framework required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Department of Conservation, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the State Energy Resources Conservation and Development Commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states’ legal standards applicable to carbon dioxide capture, removal, or sequestration projects.

(c) Before publishing the framework pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the framework. The secretary shall consider all comments received during this public comment period in developing the framework.