MI SB1131

Adds carbon sequestration project operating permit to the list of environmental permits under MCL 324.1301, with a 200-day processing deadline for permit applications.

Creates new Part 651 (Carbon Sequestration Regulation) establishing permits for geologic storage of anthropogenic carbon dioxide in subsurface reservoirs, administered by the oil, gas, and minerals division of the Department of Environment, Great Lakes, and Energy.

Establishes permitting requirements including mandatory public hearings within 60 days of complete applications, notification to affected mineral owners and surface owners, and conditions to protect underground drinking water sources and prevent damage to oil, gas, and mineral resources.

Creates new Part 653 (Carbon Sequestration Unitization) allowing for unit operations orders to pool pore space interests, with approval requiring 60% agreement from pore space owners and fair market value compensation for non-consenting owners.

Establishes the Carbon Sequestration Fund financed by per-ton fees (capped at 8 cents annually, adjusted for inflation) paid by operators for carbon dioxide injected, to cover state's long-term monitoring and management costs after project completion.