HB 6582 Summary

• Establishes comprehensive regulatory framework for geologic carbon dioxide sequestration projects in Michigan, requiring sequestration project owners to obtain department orders before operations begin.

• Mandates financial assurance (escrow, bonds, letters of credit, or other forms) covering closure costs, equipment removal, postclosure monitoring, and environmental remediation, adjusted every 3 years.

• Creates two state funds: sequestration administration fund (financed by surveillance fees of up to 15 cents per ton of CO₂ injected, minimum $50,000 annually) and sequestration remediation fund (financed by per-ton injection fees) for long-term monitoring and remediation.

• Grants sequestration project owners eminent domain authority to acquire pore space rights and pipeline easements, while limiting liability after certificate of completion is issued except for cases involving gross negligence or intentional misrepresentation.

• Establishes geologic sequestration advisory board with representatives from industry, environmental organizations, and government entities to make recommendations on fees and fund management.