2025 Senate Bill 396

1. Amend page 28, following line 14, by inserting:

“(3) Notwithstanding subsection (2), the authority to promulgate rules under this part expires 12 years after the effective date of the amendatory act that added this section.”.

2. Amend page 41, line 1, after “24.328.” by inserting “The authority to promulgate rules under this part expires 12 years after the effective date of the amendatory act that added this section.”.

1. Amend page 4, line 10 after “credited” by striking out the balance of the subsection and inserting “to the Michigan natural resources trust fund provided for in part 19.”.

1. Amend page 4, line 10 after “credited” by striking out the balance of the subsection and inserting “to the neighborhood road fund created in section 13c of 1951 PA 51, MCL 257.663c.”.

1. Amend page 18, line 25, after “The” by striking out the balance of the line through “division” on line 26 and inserting “department may issue a permit if the department”.

2. Amend page 20, following line 8 by inserting:

“(h) The sequestration project will not contaminate groundwater or drinking water or pose a risk

to human health or the environment.

(i) If carbon dioxide leaks from the injection well or compressor, the carbon dioxide will not flow or accumulate in a location where it would endanger public health or safety.

(j) The sequestration project will not use the surface land of or the pore space underlying a state park; local park; state designated wilderness or natural area; or area of state land that is being conserved or managed for biological diversity or to protect ecologically significant features, plants, or wildlife.

(k) The location of each injection well and each compressor in the project meets the following minimum setback requirements, with setback distances measured from the nearest edge of the perimeter fencing of the carbon dioxide sequestration project:

Setback Description

Occupied community buildings, schools, hospitals, or clinics located on nonparticipating surface estate

Public road right-of-way

Nonparticipating residential surface estate

Setback Distance

2,000 feet from the nearest point on the

outer wall

50 feet measured from the nearest edge of a

public road right-of-way

2,000 feet measured from the nearest shared

property line”.

1. Amend page 22, following line 4, by inserting:

“(4) If groundwater monitoring required by a permit issued or by rules promulgated under this part or required by a class VI well permit issued by the United States Environment Protection Agency indicates that a source of drinking water has been rendered unsafe for drinking by humans or livestock, the carbon sequestration project operator shall provide an alternate supply of potable drinking water within 24 hours after the monitoring results become available and an alternate supply of water that is safe for other necessary uses within 30 days after the monitoring results become available. The operator shall continue to provide alternate supplies of both potable water and water that is safe for other uses until additional monitoring by the carbon sequestration project operator shows that the original source of drinking water is safe for drinking and other uses or until a permanent alternate supply of water is identified and provided.

(5) If there is a significant leak of carbon dioxide from an injection well, monitoring well, or other point on the surface, that is associated with the carbon sequestration project, all individuals residing within 1 mile of the point of the leak at the time of the leak are entitled to medical monitoring. The monitoring shall be of a scope and duration determined by the department of health and human services and be conducted at the expense of the carbon sequestration project operator.”.

1. Amend page 29, line 2, by striking out “division,” and inserting “department,”.

2. Amend page 29, line 3, by striking out “division a fee set by the division for each” and inserting “department a fee of $1.20 per”.

3. Amend page 29, line 4, after “year.” by striking out the balance of the line through “injected.” on line 10 and inserting:

“(2)”.

4. Amend page 29, line 11, after “adjust” by striking out “this maximum amount” and inserting “the fee”.

5. Amend page 29, line 16, after “(a)” by striking out “10%” and inserting “20%”.

6. Amend page 29, line 19, after “(b)” by striking out the balance of the line through “The” on line 20 and inserting “5% in the”.

7. Amend page 29, line 21, by striking out “(ii) The” and inserting “(c) 20% in the”.

8. Amend page 29, line 22, by striking out “(iii) The” and inserting “(d) 10% to the”.

9. Amend page 29, line 23, by striking out “(c) The balance to” and inserting “(e) 45% in”.

10. Amend page 31, line 27, after “section” by striking out “65115(3)(c)” and inserting “65115(3)(e)”.

11. Amend page 32, line 2, after “The” by striking out “division” and inserting “department”.

12. Amend page 32, line 4, after “The” by striking out “division” and inserting “department”.

13. Amend page 32, line 6, by striking out the balance of the section and inserting:

“(a) Not less than 70% for grants for projects that reduce the emissions of greenhouse gases by

installing electric vehicle charging stations, otherwise electrifying end uses currently fueled by fossil fuels, increasing renewable energy production in this state, installing energy-efficient heat pumps, improving energy efficiency or weatherization of homes, installing battery storage, and installing small-scale solar energy facilities. Priority in awarding grants shall be given to projects located in or benefiting environmental justice communities and low-income residents.

(b) Not less than 30% for statewide mapping of groundwater resources and aquifers in this state and any information technology infrastructure or databases needed to support housing groundwater data or integrating groundwater data with other datasets and databases. If, in any given state fiscal year, the department determines that less than 30% of the fund is needed for the purposes of this subdivision, the department may expend the lesser needed amount, and the amount not spent under

this subdivision shall be expended under subdivision (a).”.

1. Amend page 11, line 8, by striking out the balance of the line through “(b)” on line 9 and inserting:

“(a)” and relettering the remaining subdivisions.

2. Amend page 11, line 10, after “Reforestation” by striking out “and other forest management activities”.

3. Amend page 11, line 11, after “forest” by striking out the balance of the section and inserting “and increase natural sequestration of carbon dioxide.”.

1. Amend page 21, line 17, after “65110(c).” by striking out the balance of the subsection and inserting:

“(3) The owner or operator of a carbon sequestration project may be liable for damage, including,

but not limited to, wrongful death, bodily injury, or tangible property damage, caused by a release attributable to the sequestration activity, including, but not limited to, damage caused by carbon dioxide or other fluids released from the carbon sequestration project, regardless of who holds title to the carbon dioxide, the pore space, or the surface estate. Liability for damage caused by a release attributable to the sequestration activity that is within a carbon sequestration project or otherwise within an operator’s control, including carbon dioxide being transferred from a pipeline to the injection well, may be joint and several with a third party adjudicated to have caused or contributed to the damage.

(4) A claim of subsurface trespass is not actionable against an operator or an owner of a sequestration project conducting sequestration activity in accordance with a class VI well permit and a permit issued under this part, unless the claimant proves that either of the following applies to injection or migration of carbon dioxide:

(a) It substantially interferes with the claimant’s reasonable use and enjoyment of their real property.

(b) It has caused wrongful death or direct physical injury to a person, an animal, or tangible

property.” and renumbering the remaining subsection.

2. Amend page 22, line 12, after “care” by striking out the balance of the line through line 7 on page 23 and inserting “plan for not less than 50 years after the last date of injection. Monitoring required by a

postinjection site care plan shall continue until the department certifies the carbon sequestration

project as closed.” and renumbering the remaining subsections.

3. Amend page 23, line 9, by striking out “division” and inserting “department”.

4. Amend page 23, line 10, by striking out “completion. If the division” and inserting “closure. If the department”.

5. Amend page 23, line 11, after “project” by striking out “completion” and inserting “closure”.

6. Amend page 23, line 12, by striking out “division” and inserting “department”.

7. Amend page 23, line 16, after “The” by striking out “division” and inserting “department”.

8. Amend page 23, line 17, after “project” by striking out “completion” and inserting “closure”.

9. Amend page 23, line 18, after “The” by striking out “division” and inserting “department”.

10. Amend page 23, line 22, after “the” by striking out “division” and inserting “department”.

11. Amend page 23, line 23, after the first “project” by striking out “completion” and inserting “closure”.

12. Amend page 23, line 24, after “The” by striking out “division” and inserting “department”.

13. Amend page 23, line 25, after the first “project” by striking out “completion if the division” and inserting “closure if the department”.

14. Amend page 23, following line 26, by inserting:

“(a) A minimum postinjection period of 50 years has passed.” and relettering the remaining subdivisions.

15. Amend page 24, line 2, after “the” by striking out “division” and inserting “department”.

16. Amend page 24, line 5, after “any” by inserting “surface or other”.

17. Amend page 24, line 5, after “the” by striking out “division” and inserting “department.”.

18. Amend page 24, line 6, after “the” by striking out “division” and inserting “department”.

19. Amend page 24, line 9, after “under” by inserting “state rules and”.

20. Amend page 24, line 12, after “under” by inserting “state rules and”.

21. Amend page 24, line 13, after “other” by inserting “state rules and”.

22. Amend page 24, line 15, after “(c)” by striking out “Project” and inserting “Location-specific”.

23. Amend page 24, line 16, after “reservoir,” by striking out “and”.

24. Amend page 24, line 17, after “emplaced” by striking out the balance of the subdivision and inserting a comma and “and the carbon sequestration project and carbon dioxide stream will not contaminate groundwater or pose a risk to human health or the environment.”.