OhioHB 170136th General Assembly (2025-2026)House

Establish process to regulate carbon capture, storage technology

Sponsored By: Bob Peterson (Republican), Monica Robb Blasdel (Republican)

Signed by Governor

Environment and Natural Resources

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 1 benefits, 2 costs, 7 mixed.

Property owners face storage claim limits

Claims against storage operators acting under a valid Class VI permit require proof of direct physical injury. The injury must affect a person, animal, or property and result from carbon injection or migration. Property-value recovery is limited to losses caused by injection or migration beyond the storage facility. Punitive damages are barred when the operator follows the permit. These limits exclude specified claims by oil and gas interest owners and Class II disposal well owners.

Landowners gain clear underground storage rights

Pore space, the underground space used for storage, belongs to surface owners unless previously separated or expressly excluded. Land sales normally transfer it; mineral sales transfer it only when expressly included, and documents must identify pore-space rights. Separated mineral and oil rights take priority over pore space. Separated pore-space rights take priority over surface rights unless the transfer says otherwise, but do not automatically grant surface access. Property owners are not liable for carbon injection solely because they own or control the property.

Storage can proceed without every owner's consent

After good-faith talks, operators can seek shared storage authority when some owners cannot be reached or refuse consent. Owners of at least 70% of the proposed pore space must consent, and applications must show three contact attempts on separate dates. Notified owners and lessees have 30 days to object over harm to oil, gas, coal, or drinking-water operations. The chief must be satisfied that objections are addressed and find the project reasonably necessary; publicly filed orders must provide fair compensation. Without a private agreement, benefits are divided by interest value, excluding equipment. Orders do not transfer ownership, cancel contracts, or grant surface access; access needs an agreement, law, or separate order. Operations fulfill contract duties only to the extent the order makes performance impossible.

Ohio may reward captured carbon innovation

Ohio's oil and gas division may create incentives for new uses or reuse of captured carbon dioxide. The law authorizes a program but does not require its launch or set aside a specific funding amount.

Storage violators face daily fines

Carbon storage violations can bring civil penalties up to $10,000 per offense. The attorney general must seek these penalties when the division chief requests it. When no specific penalty applies, covered violations bring fines of $100 to $1,000 for a first offense. Later offenses bring fines of $200 to $2,000. Each day a violation continues counts as a separate offense.

Ohio can assume long-term storage liability

Injected carbon and related substances are presumed to belong to the operator unless another owner proves otherwise in court. Completion certification normally requires at least 50 years after injection stops, unless the chief approves another timeline. Operators must meet compliance, containment, well-integrity, plugging, and land-restoration conditions; public notice and comment are required, with a hearing when deemed necessary. Certification generally releases ongoing storage duties and financial backing, transferring primary responsibility and liability to Ohio. Exceptions cover specified violations, materially deficient information, threatening carbon migration, and an insufficient storage facility fund.

Ohio controls storage and limits obstruction

Ohio's oil and gas division has sole state authority over carbon storage projects and facilities. Federal authority still applies where Ohio lacks federal approval to regulate. Carbon injection wells fall within Ohio's oil and gas well laws. The transportation director and local authorities cannot use specified road and vehicle powers to discriminate against or unfairly obstruct projects.

Storage fees fund oversight and communities

Consolidation applicants pay $50,000 upfront: extra processing costs are due before the final decision, and unused money is refunded afterward. Processing fees remain due after denial or withdrawal; consolidation and rule-set application, annual, and other administrative fees fund state oversight. Operators also pay Ohio 5 cents per metric ton injected, quarterly, for post-closure maintenance, repairs, and monitoring. Well owners pay an additional 3 cents per ton quarterly to host counties, divided equally when facilities span counties. Host money is limited to infrastructure, parks and recreation, education, and public safety.

Storage operators face permits and safety rules

Operators need a Class VI underground injection permit in their own name and other required permits, except the section 1509.05 permit. Required state rules cover inspections, reports, well safety, water supplies, waste, roads, noise, and protection of oil and gas interests. They also cover consolidation involving state land and drilling applications while consolidation is pending. The chief may require earthquake monitoring before and during storage. Operators must design projects to try to separate storage from existing or future oil and gas production above and below.

Storage projects need insurance and cleanup backing

The law requires rules making facility owners maintain liability insurance from construction until project completion is certified. Coverage includes at least $15 million for injury and property damage from well construction, drilling, or operation, with environmental coverage. Operators must also maintain financial backing, such as a bond, escrow, or self-insurance, throughout that period. Backing must meet the submitted cost estimate and cover corrective work, well plugging, post-injection care, and emergency response.

Sponsors & Cosponsors

Cosponsors

Adam C. Bird
Republican • House
Bernard Willis
Republican • House
Cindy Abrams
Republican • House
David Thomas
Republican • House
Jodi Salvo
Republican • House
Josh Williams
Republican • House
Mark Sigrist
Democratic • House
Phil Plummer
Republican • House
Sean P. Brennan
Democratic • House
Tex Fischer
Republican • House
Tom Young
Republican • House
Ty D. Mathews
Republican • House

Roll Call Votes

All Roll Calls

Yes: 236 • No: 5

House vote • 6/3/2026

Concurred in Senate amendments

Yes: 93 • No: 0

Senate vote • 5/20/2026

Passed

Yes: 30 • No: 0

Senate vote • 5/19/2026

Energy: Reported

Yes: 11 • No: 0

House vote • 10/8/2025

Passed

Yes: 93 • No: 4