OklahomaSB 269Oklahoma 2026 Regular SessionSenate

Carbon sequestration; modifying jurisdiction over certain injection wells; establishing provisions for establishment of certain CO2 sequestration facilities and storage units. Effective date.

Sponsored By: Dave Rader (Republican)

Signed by Governor

Senate Committee

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 0 benefits, 0 costs, 7 mixed.

Emergency cleanup powers and limits

In emergencies, the Commission can act immediately without a hearing and spend from its Revolving Fund, then seek repayment from the responsible party. State Treasury spending for remedial work is limited to what the Legislature authorizes each year. Money recovered by executing on required surety for cleanup is not restricted by that cap. The Commission and its authorized contractors are not liable for damages from non‑negligent remedial actions.

State roles for pollution and tanks

DEQ is the sole state regulator for pollutant releases from trains and rail sites. DEQ also has sole control of water discharges and stormwater from refineries and similar plants, and all Title V air permits. The Corporation Commission regulates many fuel storage tanks and now runs the leaking‑tank cleanup funds. The Commission must enforce Oklahoma Water Quality Standards. DEQ does not regulate CO2 pipeline transport under this law.

CO2 storage units and property rights

The law defines a CO2 storage unit and lets the Commission create units that pool pore space. To apply, an operator must control at least 63% of the surface acres and submit maps and an operations plan. Injected CO2 belongs to the facility owner unless a court finds willful abandonment. Private operators cannot use eminent domain to take storage rights. Surface and mineral owners can still drill through a reservoir, but must follow protective rules; the facility operator pays added protective costs.

Fees and fund for CO2 oversight

The Commission can charge a per‑ton fee on injected CO2 and reset it each year. A facility’s fund balance is capped at $5,000,000, and an operator’s total fees are capped at $10,000,000 at the start of each fiscal year. Fees stop when a facility’s certified balance reaches $5,000,000 and restart if it drops below $4,000,000. A revolving fund pays for monitoring, cleanup, plugging, repairs, legal help, and contract support, with annual reports and a review due November 1, 2030 and every five years after.

New rules for CO2 storage projects

The Oklahoma Corporation Commission now has main authority over CO2 storage facilities and Class VI wells. Developers must get a permit, and the agency can set rules, fees, bonds, and monitoring. Oversight is split by reservoir type: the Commission handles oil and gas‑related reservoirs, and DEQ handles other formations. DEQ’s underground‑injection role does not apply where the Commission is in charge, and DEQ no longer regulates CO2 pipeline transport. Class II oil and gas injection continues where allowed by federal rules.

State takes over long-closed CO2 sites

The Commission can issue a completion certificate no earlier than 50 years after injections stop if safety and integrity standards are met. The operator must show the CO2 will stay underground, that drinking water and public health are protected, and that monitoring and closure plans were followed. After the certificate, the state takes ownership of the remaining project and stored CO2 and leads future monitoring. Operators are released from future duties except for past noncompliance or concealment.

When these CO2 rules start

The law takes effect November 1, 2025.

Sponsors & Cosponsors

Sponsor

  • Dave Rader

    Republican • Senate

Cosponsors

  • Ken Luttrell

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 98 • No: 48

Senate vote 5/13/2025

Top_of_Page

Yes: 0 • No: 15

House vote 5/1/2025

Top_of_Page

Yes: 73 • No: 12

House vote 4/16/2025

DO PASS

Yes: 13 • No: 1

House vote 4/2/2025

DO PASS

Yes: 12 • No: 0

Senate vote 3/17/2025

THIRD READING

Yes: 0 • No: 18

Senate vote 3/5/2025

Top_of_Page

Yes: 0 • No: 2

Senate vote 2/27/2025

Top_of_Page

Yes: 0 • No: 0

Actions Timeline

  1. Approved by Governor 05/20/2025

    5/20/2025Senate
  2. Sent to Governor

    5/14/2025Senate
  3. Signed, returned to Senate

    5/14/2025House
  4. Enrolled, to House

    5/14/2025Senate
  5. Referred for enrollment

    5/13/2025Senate
  6. Measure passed: Ayes: 27 Nays: 15

    5/13/2025Senate
  7. HAs adopted

    5/13/2025Senate
  8. HAs read

    5/5/2025Senate
  9. Engrossed, signed, to Senate

    5/5/2025House
  10. Referred for engrossment

    5/1/2025House
  11. Third Reading, Measure passed: Ayes: 73 Nays: 12

    5/1/2025House
  12. General Order

    5/1/2025House
  13. Title restored

    4/16/2025House
  14. CR; Do Pass, amended by committee substitute Energy and Natural Resources Oversight Committee

    4/16/2025House
  15. Policy recommendation to the Energy and Natural Resources Oversight committee; Do Pass Energy

    4/2/2025House
  16. Referred to Energy

    4/1/2025House
  17. Second Reading referred to Energy and Natural Resources Oversight

    4/1/2025House
  18. First Reading

    3/18/2025House
  19. Engrossed to House

    3/18/2025Senate
  20. Referred for engrossment

    3/17/2025Senate
  21. Measure passed: Ayes: 27 Nays: 18

    3/17/2025Senate
  22. General Order, Considered

    3/17/2025Senate
  23. Placed on General Order

    3/10/2025Senate
  24. Title stricken

    3/5/2025Senate
  25. Reported Do Pass as amended Appropriations committee; CR filed

    3/5/2025Senate

Bill Text

  • Enrolled (final version)

    5/14/2025

  • Amended And Engrossed

    5/5/2025

  • Floor (House)

    5/1/2025

  • House Committee Report

    4/16/2025

  • House Committee Substitute for Senate Bill

    4/16/2025

  • House Policy Committee Report

    4/2/2025

  • Engrossed

    3/18/2025

  • Floor (Senate)

    3/6/2025

  • Senate Committee Report 2

    3/5/2025

  • Committee Substitute

    2/27/2025

  • Senate Committee Report 1

    2/27/2025

  • Introduced

    12/30/2024

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