MI SB0396

Establishes a comprehensive regulatory framework for carbon sequestration projects in Michigan, requiring permits from the Department of Environment, Great Lakes, and Energy for geologic storage of carbon dioxide streams in underground reservoirs

Requires the state to apply for federal Class VI well program authority within 1 year, with mandatory public hearings on permit applications and 50-year minimum post-injection monitoring periods before project closure

Creates four new funds from per-ton injection fees (capped at 32 cents/ton): Community Benefits Fund (10%), Long-Term Remediation Fund (10%), First Responders Fund (10%), and Carbon Sequestration Fund (balance) for ongoing monitoring and emergency response

Transfers ownership and liability for carbon sequestration projects to the state upon issuance of a certificate of project completion, releasing operators from future regulatory requirements and liability except in cases of fraud or unremedied violations

Establishes unitization procedures allowing operators to consolidate pore space rights when 60% of storage capacity owners approve, with compensation provisions for non-consenting property owners