Texas Health and Safety Code, Title 5: Sanitation And Environmental Quality, Subtitle C: Air Quality, Chapter 382: Clean Air Act, Subchapter K: Offshore Geologic Storage of Carbon Dioxide (Texas Offshore Storage Act)

Jurisdiction(s)
Instrument Date
Effective Date
Instrument Type
Primary
Relevant Regulatory Authority
Texas Natural Resource Conservation Commission
Purpose and Context
The Texas Offshore Storage Act addresses certain aspects of the establishment and regulation of an offshore CO2 storage repository, including monitoring and verification arrangements, property rights and liability for CO2 stored in the repository. 
Instrument Access Date
19 October 2012
I. Regulatory scope and definitions
Definitions

Article/Section No.

Section 382.501

Instrument Text

Sec. 382.501. DEFINITIONS. In this subchapter:
(1) "Board" means the School Land Board.
(2) "Bureau" means the Bureau of Economic Geology at The University of Texas at Austin.
(3) "Carbon dioxide repository" means an offshore deep subsurface geologic repository for the storage of anthropogenic carbon dioxide.
(4) "Land commissioner" means the commissioner of the General Land Office.
Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.

Composition of CO2 stream

Summary

Section 382.501 of the Texas Offshore Storage Act defines “carbon dioxide repository” as an offshore deep subsurface repository for the storage of anthropogenic CO2.

The Act may therefore be limited in its application to anthropogenic CO2 only, and not naturally occurring CO2 (although the term anthropogenic CO2 is not separately defined in the the Act).

Article/Section No.

Section 382.501

Instrument Text

Sec. 382.501.  DEFINITIONS.  In this subchapter:

[…]

(3)  "Carbon dioxide repository" means an offshore deep subsurface geologic repository for the storage of anthropogenic carbon dioxide.

[…]

II. The scope and management of rights
Property rights

Summary

Section 382.507 of the Texas Offshore Storage Act provides that the right, title and interest to CO2 stored in the CO2 repository will be the property of the Permanent School Fund, to be administered and controlled by the School Land Board.

Accrual of such title will, however, be subject to a determination by the Board that permanent storage has been verified and that the storage location has met all applicable state and federal requirements for closure of CO2 storage sites.

Article/Section No.

Section 382.507

Instrument Text

Sec. 382.507.  OWNERSHIP OF CARBON DIOXIDE.  (a)  The board shall acquire title to carbon dioxide stored in the carbon dioxide repository on a determination by the board that permanent storage has been verified and that the storage location has met all applicable state and federal requirements for closure of carbon dioxide storage sites.

(b)  The right, title, and interest in carbon dioxide acquired under this section are the property of the permanent school fund and shall be administered and controlled by the board.

Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.

III. Permitting storage site exploration, project development and CO2 injection
Controls on site selection

Summary

Section 382.502 of the Texas Offshore Storage Act empowers the Texas Natural Resource Conservation Commission to adopt standards for, among other things, the location of a CO2 repository.

It further provides that if federal CO2 sequestration requirements are issued, the Commission must ensure that the location of the CO2 repository complies with those requirements.

Under Section 382.503, the Commissioner of the General Land Office must contract with the Bureau of Economic Geology at The University of Texas at Austin to study state-owned offshore submerged lands and identify potential locations for a CO2 repository. The Commissioner must then recommend suitable sites to the School Land Board, with the Board making the final determination as to suitable locations.

Once the location has been established, under Section 382.504 the Board can:

  1. request proposals for the lease of land for the construction of any necessary infrastructure for the repository; and

contract for the construction and operation of such infrastructure.

Article/Section No.

Section 382.502
Section 382.503
Section 382.504

Instrument Text

Sec. 382.502.  RULES.  (a)  The commission by rule may adopt standards for the location, construction, maintenance, monitoring, and operation of a carbon dioxide repository.

(b)  If the United States Environmental Protection Agency issues requirements regarding carbon dioxide sequestration, the commission shall ensure that the construction, maintenance, monitoring, and operation of the carbon dioxide repository under this subchapter comply with those requirements.

Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.

 

Sec. 382.503.  STUDY; SELECTION OF LOCATION.  (a)  The land commissioner shall contract with the bureau to conduct a study of state-owned offshore submerged land to identify potential locations for a carbon dioxide repository.

(b)  The land commissioner shall recommend suitable sites for carbon dioxide storage to the board based on the findings of the study.

(c)  The board shall make the final determination of suitable locations for carbon dioxide storage.

Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.

 

Sec. 382.504.  CONTRACT FOR NECESSARY INFRASTRUCTURE AND OPERATION.  (a)  Once the location has been established for the carbon dioxide repository, the board may issue requests for proposals for the lease of permanent school fund land for the construction of any necessary infrastructure for the transportation and storage of carbon dioxide to be stored in the carbon dioxide repository.

(b)  The board may contract for construction or operational services for the repository.

Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.

IV. Operating and closing storage facilities
Monitoring, reporting and verification

Summary

Section 382.502 of the Texas Offshore Storage Act empowers the Texas Natural Resource Conservation Commission to adopt standards for, among other things, the monitoring of a CO2 repository. 

It further provides that if federal CO2 sequestration requirements are issued, the Commission must ensure that monitoring of the CO2 repository complies with those requirements.

Under section 382.506, the Commission can establish standards for the measurement, monitoring, and verification of CO2 storage in the repository. In this case, the Bureau of Economic Geology at The University of Texas at Austin will be responsible for:

  1. performing such measurement, monitoring, and verification;
  2. serving as a scientific advisor for such purpose; and
  3. providing measurement, monitoring and verification data to the School Land Board.

Section 382.510 requires the Land Commissioner to issue an annual report regarding the CO2 repository, which report must include information regarding:

  1. the total volume of CO2 stored;
  2. the total volume of CO2 received during the year; and
  3. the volume of CO2 received from each CO2 producer.

Article/Section No.

Section 382.502
Section 382.506
Section 382.510

Instrument Text

Sec. 382.502.  RULES.  (a)  The commission by rule may adopt standards for the location, construction, maintenance, monitoring, and operation of a carbon dioxide repository.

(b)  If the United States Environmental Protection Agency issues requirements regarding carbon dioxide sequestration, the commission shall ensure that the construction, maintenance, monitoring, and operation of the carbon dioxide repository under this subchapter comply with those requirements.

Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.

[…]

Sec. 382.506.  MEASURING, MONITORING, AND VERIFICATION; ROLE OF BUREAU.  (a)  The commission by rule may establish standards for the measurement, monitoring, and verification of the permanent storage status of the carbon dioxide in the carbon dioxide repository.

(b)  The bureau shall perform the measurement, monitoring, and verification of the permanent storage status of carbon dioxide in the carbon dioxide repository.

(c)  The bureau shall serve as a scientific advisor for the measuring, monitoring, and permanent storage status verification of the carbon dioxide repository.

(d)  The bureau shall provide to the board data relating to the measurement, monitoring, and verification of the permanent storage status of the carbon dioxide in the carbon dioxide repository, as determined by the board.

Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.

[…]

Sec. 382.510.  ANNUAL REPORT.  The land commissioner shall issue annually a report regarding the carbon dioxide repository.  The report may be submitted electronically by posting on the General Land Office's Internet website.  The report must include information regarding:

(1)  the total volume of carbon dioxide stored;

(2)  the total volume of carbon dioxide received for storage during the year; and

(3)  the volume of carbon dioxide received from each producer of carbon dioxide.

Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.

V. Management of long-term responsibilities and liabilities
Allocation of long term responsibilities & liabilities

Summary

Section 382.508(b) of the Texas Offshore Storage Act provides that, on the date that title to stored CO2 is transferred to the Permanent School Fund under section 382.507, the CO2 producer will be relieved of liability for any act or omission regarding such stored CO2.

This is qualified, however, by:

  1. section 382.508(a), which provides that the transfer of title to stored CO2 does not relieve the CO2 producer of liability for any act or omission regarding the generation of the CO2 performed before it was stored; and

section 382.508(c), which provides that section 382.508 does not relieve a contractor engaged under section 382.504(b) from liability for any act or omission regarding construction or operation of the CO2 repository. 

Article/Section No.

Section 382.508

Instrument Text

Sec. 382.508.  LIABILITY.  (a)  The transfer of title to the state under Section 382.507 does not relieve a producer of carbon dioxide of liability for any act or omission regarding the generation of stored carbon dioxide performed before the carbon dioxide was stored.

(b)  On the date the permanent school fund, under Section 382.507, acquires the right, title, and interest in carbon dioxide, the producer of the carbon dioxide is relieved of liability for any act or omission regarding the carbon dioxide in the carbon dioxide repository.

(c)  This section does not relieve a person who contracts with the board under Section 382.504(b) of liability for any act or omission regarding the construction or operation, as applicable, of the carbon dioxide repository.

Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.

VI. Additional Issues
Additional Issues

Article/Section No.

Section 382.505

Instrument Text

Sec. 382.505.  ACCEPTANCE OF CARBON DIOXIDE FOR STORAGE; FEES AND CARBON CREDITS.  (a)  Once the carbon dioxide repository is established, the board may accept carbon dioxide for storage.

(b)  The board by rule may establish a fee for the storage of carbon dioxide in the carbon dioxide repository. If this state participates in a program that facilitates the trading of carbon credits, a fee under this subsection may be established as a percentage of the carbon credits associated with the storage.

Added by Acts 2009, 81st Leg., R.S., Ch. 1125, Sec. 1, eff. September 1, 2009.