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AlabamaSB1742026 Regular SessionSenate

Natural resources; conversion of oil and gas wells into alternative energy facilities authorized; lease of state lands for energy sources by Commissioner of Conservation expanded

Sponsored By: Greg Albritton (Republican)

Enacted

Conservation & Natural Resources

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

More energy projects can lease state land

Alabama’s Conservation Commissioner can lease land and interests under the department’s control for more types of energy projects. Leases can cover energy exploration, development, and production, including geothermal, solar, and hydropower generation, capture, storage, and transmission. The Commissioner can also change lease renewal or extension terms. Actions and negotiations involving existing leases are exempt from Section 9-17-65. This authority does not allow the Commissioner to sell state land.

Resource owners get protections but face pooling

Facility operators must follow Board rules, seek owners’ consent in good faith, and obtain consent covering at least 66 2/3% of resources. After notice and a public hearing, the Board can include the remaining owners’ resources without their consent. Operators must compensate those owners on terms the Board finds fair and reasonable. They must also make commercially reasonable efforts to limit harm to those owners’ surface land. Facilities within 10 miles of a coal mine need written consent from the mine operator and mineral owner within that radius. That consent cannot be unreasonably refused or delayed.

Converted wells get new closure rules

An approved well converted to alternative energy no longer counts as an inactive or abandoned oil or gas well. After a facility stops producing alternative energy for 12 months or more, the Board must require proper plugging and closure. The Board can also require other appropriate steps.

Energy developers gain options but pay fees

Alabama’s State Oil and Gas Board can approve alternative energy facilities, including converted oil or gas wells and related equipment. Wells must reach at least 5,000 feet below the surface, including under submerged land. Approval requires notice and a public hearing. Applicants must pay petition and well permit fees and provide financial security for their planned uses. The Board sets these requirements by rule, and fees go into its Special Fund to pay regulatory expenses. Covered resources include geothermal energy and energy capture, storage, and transmission involving geothermal, solar, and hydropower. On-site heating and cooling through ground-source heat pumps are excluded. The law preserves Title 37 and federally licensed hydropower projects. These new rules generally do not cover existing oil, gas, gas-storage, or coal-mine operations.

Sponsors & Cosponsors

Sponsor

  • Greg Albritton

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 649 • No: 7

House vote • 4/9/2026

Paramore Motion to Concur In and Adopt Conference Committee Report - Adopted Roll Call 1348

Yes: 102 • No: 0

Senate vote • 4/8/2026

Albritton motion to Concur In and Adopt Conference Committee Report - Adopted Roll Call 1257

Yes: 33 • No: 0

House vote • 4/7/2026

In Conference Committee

Yes: 103 • No: 0

Senate vote • 4/7/2026

Gudger motion to Non-Concur and Appoint Conference Committee - Adopted Roll Call 1129

Yes: 29 • No: 0

House vote • 4/2/2026

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1171

Yes: 84 • No: 3 • Other: 12

House vote • 4/2/2026

Motion to Adopt - Adopted Roll Call 1170

Yes: 101 • No: 0 • Other: 1

House vote • 4/2/2026

Third Reading in Second House

Yes: 98 • No: 1 • Other: 2

Senate vote • 2/3/2026

Third Reading in House of Origin

Yes: 33 • No: 1

Senate vote • 2/3/2026

Woods motion to Adopt - Adopted Roll Call 227

Yes: 33 • No: 1

Senate vote • 2/3/2026

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 228

Yes: 33 • No: 1

Actions Timeline

  1. Enacted

    4/16/2026Senate

  2. Paramore Motion to Concur In and Adopt Conference Committee Report - Adopted Roll Call 1348

    4/9/2026House

  3. Ready to Enroll

    4/9/2026Senate

  4. Enrolled

    4/9/2026Senate

  5. Signature Requested

    4/9/2026House

  6. Delivered to Governor

    4/9/2026Senate

  7. Senate Concurs in Conference Committee Report

    4/8/2026Senate

  8. Albritton motion to Concur In and Adopt Conference Committee Report - Adopted Roll Call 1257

    4/8/2026Senate

  9. Gudger motion to Non-Concur and Appoint Conference Committee - Adopted Roll Call 1129

    4/7/2026Senate

  10. In Conference Committee

    4/7/2026House

  11. Third Reading in Second House

    4/2/2026House

  12. Hammett 1st Amendment Offered

    4/2/2026House

  13. Motion to Adopt - Adopted Roll Call 1170

    4/2/2026House

  14. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1171

    4/2/2026House

  15. Read for the Second Time and placed on the Calendar

    2/12/2026House

  16. Reported Out of Committee Second House

    2/11/2026House

  17. Third Reading in House of Origin

    2/3/2026Senate

  18. Woods 1st Amendment Offered

    2/3/2026Senate

  19. Woods motion to Adopt - Adopted Roll Call 227

    2/3/2026Senate

  20. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 228

    2/3/2026Senate

  21. Engrossed

    2/3/2026Senate

  22. Read for the first time and referred to the House Committee on State Government

    2/3/2026House

  23. Pending Committee Action in Second House

    2/3/2026House

  24. Reported Out of Committee House of Origin

    1/22/2026Senate

  25. Read for the Second Time and placed on the Calendar

    1/22/2026Senate

Bill Text

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