88R2436 JAM-F     By: Bonnen H.B. No. 4484       A BILL TO BE ENTITLED   AN ACT   relating to the ownership of the pore space underlying the surface   of land and to the use of that space for the geologic storage of   carbon dioxide; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 382.502(d), Health and Safety Code, is   amended to read as follows:          (d)  A penalty collected under this section shall be   deposited to the credit of the [anthropogenic] carbon dioxide   storage trust fund established under Section 121.003, Natural   Resources Code.          SECTION 2.  Section 91.802, Natural Resources Code, is   amended to read as follows:          Sec. 91.802.  LAW APPLICABLE TO GEOLOGIC STORAGE FACILITIES   AND ASSOCIATED INJECTION WELLS.  (a)  In this section,   "[anthropogenic] carbon dioxide injection well" has the meaning   assigned by Section 27.002, Water Code.          (b)  If a well is authorized as or converted to a [an   anthropogenic] carbon dioxide injection well for geologic storage,   Subchapter C-1, Chapter 27, Water Code, applies to the well.          (c)  A conversion of a [an anthropogenic] carbon dioxide   injection well from use for enhanced recovery operations to use for   geologic storage is not considered to be a change in the purpose of   the well.          SECTION 3.  The heading to Chapter 121, Natural Resources   Code, is amended to read as follows:   CHAPTER 121. OWNERSHIP AND STEWARDSHIP OF [ANTHROPOGENIC] CARBON   DIOXIDE          SECTION 4.  Section 121.001, Natural Resources Code, is   amended by amending Subdivision (1) and adding Subdivisions (1-a),   (1-b), and (2-a) to read as follows:                (1)  "Anthropogenic carbon dioxide[,]" means:                      (A)  carbon dioxide that would otherwise have been   released into the atmosphere that has been:                            (i)  stripped, segregated, or divided from   any other fluid stream; or                            (ii)  captured from an emissions source,   including:                                  (a)  an advanced clean energy project   as defined by Section 382.003, Health and Safety Code, or another   type of electric generation facility; or                                  (b)  an industrial source of   emissions;                      (B)  any incidental associated substance derived   from the source material for, or from the process of capturing,   carbon dioxide described by Paragraph (A); and                      (C)  any substance added to carbon dioxide   described by Paragraph (A) to enable or improve the process of   injecting the carbon dioxide ["anthropogenic carbon dioxide   injection well," and "geologic storage facility" have the meanings   assigned by Section 27.002, Water Code].                (1-a)  "Carbon dioxide" means the chemical compound   composed of one carbon and two oxygen atoms.  The term includes:                      (A)  anthropogenic carbon dioxide;                       (B)  naturally occurring carbon dioxide;                      (C)  carbon dioxide captured directly from the   atmosphere; and                      (D)  phases, mixtures, and combinations of carbon   dioxide, whether fluid, liquid, or gaseous, stripped, segregated,   or divided from any other fluid stream thereof, together with   incidental associated substances derived from the source materials   and the capture process and any substances added to the stream to   enable or improve the injection process.                (1-b)  "Carbon dioxide injection well" means an   injection well used to inject or transmit carbon dioxide into a   geologic storage facility.                (2-a)  "Geologic storage" and "geologic storage   facility" have the meanings assigned by Section 27.002, Water Code.          SECTION 5.  Sections 121.002, 121.003, and 121.004, Natural   Resources Code, are amended to read as follows:          Sec. 121.002.  OWNERSHIP OF [ANTHROPOGENIC] CARBON DIOXIDE.   (a)  This section does not apply to [anthropogenic] carbon dioxide   injected for the primary purpose of enhanced recovery operations.          (b)  Except when title to the stored carbon dioxide and the   geologic storage facility has been transferred to the state under   Section 124.004(a) and unless [Unless] otherwise expressly   provided by a contract, bill of sale, deed, mortgage, deed of trust,   or other legally binding document or by other law, [anthropogenic]   carbon dioxide stored in a geologic storage facility is considered   to be the property of the storage operator or the storage operator's   heirs, successors, or assigns.          (c)  Unless otherwise expressly provided by contract, bill   of sale, deed, mortgage, deed of trust, or other legally binding   document or by other law [Absent a final judgment of wilful   abandonment rendered by a court or a regulatory determination of   closure or abandonment], [anthropogenic] carbon dioxide stored in a   geologic storage facility is not considered to be the property of   the owner of the surface or mineral estate in the land in which the   [anthropogenic] carbon dioxide is stored or of a person claiming   under the owner of the surface or mineral estate.          (d)  Except when title to the stored carbon dioxide and the   geologic storage facility has been transferred to the state under   Section 124.004(a), the [The] owner, as designated by Subsection   (b) [or (c)], of the [anthropogenic] carbon dioxide stored in a   geologic storage facility, or the owner's heirs, successors, or   assigns, may produce, take, extract, or otherwise possess   [anthropogenic] carbon dioxide stored in the facility.          Sec. 121.003.  [ANTHROPOGENIC] CARBON DIOXIDE STORAGE TRUST   FUND. (a)  The [anthropogenic] carbon dioxide storage trust fund is   created as a special fund in the state treasury.          (b)  The [anthropogenic] carbon dioxide storage trust fund   is an interest-bearing fund.  Interest earned on money in the fund   shall be deposited to the credit of the fund.          (c)  Fees collected by the commission under Subchapter C-1,   Chapter 27, Water Code, penalties imposed for violations of that   subchapter or rules adopted under that subchapter, [and] funds   received by the commission from financial responsibility   mechanisms under Section 27.073, Water Code, grants, donations, and   amounts allocated from any source, public or private, for the   purposes of this chapter, and fees for the transfer of title to the   stored carbon dioxide and the geologic storage facilities to the   state as described by Section 124.005 shall be deposited to the   credit of the [anthropogenic] carbon dioxide storage trust fund.          (c-1)  Penalties imposed for violations of commission rules   adopted under Section 382.502, Health and Safety Code, shall be   deposited to the credit of the [anthropogenic] carbon dioxide   storage trust fund.          (d)  The [anthropogenic] carbon dioxide storage trust fund   may be used by the commission only for:                (1)  permitting, inspecting, monitoring,   investigating, recording, and reporting on geologic storage   facilities and associated [anthropogenic] carbon dioxide injection   wells;                (2)  long-term monitoring of geologic storage   facilities and associated [anthropogenic] carbon dioxide injection   wells;                (3)  remediation of [mechanical problems associated   with] geologic storage facilities and associated [anthropogenic]   carbon dioxide injection wells;                (4)  resolution of mechanical problems associated   with, and repairing mechanical leaks at, geologic storage   facilities and associated carbon dioxide injection wells;                (5)  plugging abandoned [anthropogenic] carbon dioxide   injection wells used for geologic storage;                (6)  training and technology transfer related to   [anthropogenic] carbon dioxide injection and geologic storage;   [and]                (7)  compliance and enforcement activities related to   geologic storage and associated [anthropogenic] carbon dioxide   injection wells; and                (8)  costs, expenses, or claims arising from the   state's ownership of the stored carbon dioxide and the geologic   storage facility after the transfer of title to the stored carbon   dioxide and geologic storage facility to the state under Section   124.004(a).          Sec. 121.004.  EXTRACTION OF STORED [ANTHROPOGENIC] CARBON   DIOXIDE. (a)  The commission shall adopt rules allowing   [anthropogenic] carbon dioxide stored in a geologic storage   facility to be extracted for a commercial or industrial use.          (b)  The commission has jurisdiction over the extraction of   [anthropogenic] carbon dioxide stored in a geologic storage   facility.          SECTION 6.  Subtitle D, Title 3, Natural Resources Code, is   amended by adding Chapters 124 and 125 to read as follows:   CHAPTER 124.  STATE RESPONSIBILITY FOR LONG-TERM STORAGE OF CARBON   DIOXIDE          Sec. 124.001.  DEFINITIONS. In this chapter:                (1)  "Carbon dioxide," "carbon dioxide injection   well," "commission," and "storage operator" have the meanings   assigned by Section 121.001.                (2)  "Geologic storage" and "geologic storage   facility" have the meanings assigned by Section 27.002, Water Code.          Sec. 124.002.  APPLICABILITY. (a) This chapter applies   only to the permanent sequestration of carbon dioxide in a geologic   storage facility.          (b)  This chapter does not apply to a storage operator or   geologic storage facility owner who provides written notice that   the owner or operator does not intend to apply to the commission to   transfer title to the stored carbon dioxide and the geologic   storage facility to the state under Section 124.003(a).          Sec. 124.003.  APPLICATION FOR TRANSFER OF TITLE AND CUSTODY   TO STATE. (a)  After a storage operator or geologic storage   facility owner receives a certificate of closure from the   commission under rules adopted under Section 27.047(1)(I), Water   Code, a storage operator or geologic storage facility owner may   apply to the commission to transfer title to the stored carbon   dioxide and the geologic storage facility to the state.          (b)  Not later than the 60th day after the date an   application is received under this section, the commission shall   consider the application and respond to the applicant. The   commission shall approve the application if:                (1)  a waiting period of at least 10 years has passed   since the storage operator or geologic storage facility owner   received a certificate of closure;                (2)  the storage operator or geologic storage facility   owner is in full compliance with all applicable laws governing the   injection and geologic storage of the carbon dioxide, including any   rules adopted under Section 27.047(1)(I), Water Code; and                (3)  the stored carbon dioxide and the geologic storage   facility are stable and not expected to endanger any underground   source of drinking water.          (c)  The commission may require less than a 10-year waiting   period under Subsection (b)(1) if the commission determines that   period is not necessary.          Sec. 124.004.  RELEASE; TRANSFER OF TITLE TO STATE. (a)  On   approval of the application by the commission under Section   124.003(b) and payment of the fee under Section 124.005, title to   the stored carbon dioxide and the geologic storage facility is   immediately transferred to the state.  Title acquired by the state   under this subsection includes all rights, interests in, and   responsibilities associated with the stored carbon dioxide and the   geologic storage facility.  A party may not transfer to the state,   and the state may not accept, any property interests or rights that   the party does not own or have legal authority to transfer.          (b)  After title is acquired by the state under Subsection   (a), all responsibility and potential liability associated with the   stored carbon dioxide and the geologic storage facility is   transferred to the state.          (c)  After title is acquired by the state under Subsection   (a), the storage operator, the geologic storage facility owner, the   person holding title to the carbon dioxide under Section 121.002,   and all persons who generated any stored carbon dioxide are   released from all regulatory requirements and liability associated   with the stored carbon dioxide and the geologic storage facility.          (d)  Subsections (b) and (c) do not apply if the commission   determines, after notice and a hearing, that a person intentionally   concealed or misrepresented material facts related to an   application under Section 124.003(b).          (e)  If a performance bond or other form of financial   security submitted under Section 27.073, Water Code, has a duration   that extends beyond the date of the issuance of the certificate of   closure, that performance bond or other form of financial security   shall be released.          (f)  The state, through the commission, shall assume   responsibility for monitoring the stored carbon dioxide until the   federal government assumes responsibility for the management and   monitoring of the stored carbon dioxide.          Sec. 124.005.  FEE FOR TRANSFER OF TITLE TO STORED CARBON   DIOXIDE TO STATE.  On approval by the commission of an application   under Section 124.003(b), the storage operator or geologic storage   facility owner shall pay an additional per-ton fee for deposit to   the credit of the carbon dioxide storage trust fund established   under Section 121.003.  The commission by rule shall determine the   amount of the fee, which may not exceed the amount of the costs,   expenses, or claims described by Section 121.003(d)(8) reasonably   expected to be incurred by or presented to the state.          Sec. 124.006.  STATE ACCESS. After title to the stored   carbon dioxide and the geologic storage facility is transferred to   the state under Section 124.004(a), the state, through the   commission, assumes all access and ancillary related rights the   storage operator or geologic storage facility owner had to the   geologic storage facility.          Sec. 124.007.  LIMITATION OF STATE RESPONSIBILITY. (a)     This chapter does not:                (1)  alter or diminish the commission's defenses to   liability already established under existing law; or                (2)  create any liability or responsibility on the part   of the commission to pay any costs under Section 121.003(d) from any   source other than the carbon dioxide storage trust fund established   under Section 121.003.          (b)  The commission may not make payments for costs   associated with the activities described by Section 121.003(d) if   the amount of money in the carbon dioxide storage trust fund is   insufficient to pay the costs.   CHAPTER 125.  INTEGRATION OF PORE SPACE FOR DEVELOPMENT OF   GEOLOGIC STORAGE FACILITY          Sec. 125.001.  PURPOSE. The purposes of this chapter are to   protect correlative rights, conserve the natural resources of this   state, and enforce compliance with all applicable state and federal   laws in order to facilitate and optimize the use and production of   energy resources in this state, including the use of the pore space   within the state for carbon dioxide sequestration.          Sec. 125.002.  APPLICABILITY. This chapter applies only to   the permanent sequestration of carbon dioxide in a geologic storage   facility.          Sec. 125.003.  DEFINITIONS.  In this chapter:                (1)  "Carbon dioxide," "carbon dioxide injection   well," and "commission," have the meanings assigned by Section   121.001.                (2)  "Geologic storage" and "geologic storage   facility" have the meanings assigned by Section 27.002, Water Code.                (3)  "Pore space" means the subsurface materials and   geologic structures beneath the surface, including voids and   cavities, to be used for the storage of carbon dioxide.                (4)  "Storage operator" means the person designated   under an integration order issued by the commission under Section   125.008 to conduct geologic storage operations.          Sec. 125.004.  INTEGRATION OF PORE SPACE FOR DEVELOPMENT OF   GEOLOGIC STORAGE FACILITY. (a)  A pore space owner whose pore space   is located in a proposed geologic storage facility may integrate   the owner's interests to develop the pore space as a proposed   geologic storage facility.          (b)  If all of the owners of the pore space do not agree to   the integration of their interests, a pore space owner or proposed   storage operator may file an application with the commission   requesting an order under this chapter for the integration of all   interests and for the development of the pore space as a proposed   geologic storage facility.          Sec. 125.005.  RULES. The commission shall adopt rules and   procedures reasonably required for the performance of its powers,   duties, and functions under this chapter.          Sec. 125.006.  HEARING REQUIRED. Promptly after receiving   the completed application, the commission shall set the matter for   hearing. The hearing must be scheduled to be held on a date not   later than the 60th day after the date the completed application is   filed with the commission.          Sec. 125.007.  NOTICE OF APPLICATION AND HEARING. (a)     Notice of the application and the time and place of the hearing on   the application must be mailed, postage prepaid, not later than the   31st day before the date of the hearing, to each owner of the   surface estate, mineral estate, or pore space in the proposed   geologic storage facility and to each owner of the surface estate,   mineral estate, or pore space adjacent to the proposed geologic   storage facility.          (b)  Notice of the application and the time and place of the   hearing must be published once a week for two consecutive weeks in a   newspaper of general circulation authorized by law to publish legal   notices in the county or counties in which the land involved is   located.  The first publication must be made not later than the 15th   day before the date of the hearing.          (c)  Typographical errors in a notice that are not material   to the purpose of the notice do not affect the validity of the   notice.          Sec. 125.008.  INTEGRATION ORDER; EFFECT OF OPERATIONS. (a)     The commission shall issue an integration order if the commission   finds that:                (1)  the application meets all of the statutory and   regulatory requirements for the issuance of the integration order;                (2)  the geologic storage facility into which the   carbon dioxide is injected is suitable for or capable of being made   suitable for storing the carbon dioxide;                (3)  with proper safeguards, both groundwater and   surface water can be adequately protected;                (4)  the injection of carbon dioxide into the geologic   storage facility will not endanger or injure human health or   safety;                (5)  the injection and geologic storage of carbon   dioxide will not endanger or injure any oil, gas, or other mineral   formation in any material respect, or has been addressed in an   arrangement between the applicant and the mineral lessee or mineral   owner;                (6)  the applicant has obtained the consent of the   owners representing at least 60 percent of the ownership of the pore   space, based on the surface acreage of the proposed geologic   storage facility;                (7)  the applicant has made a fair and reasonable offer   to integrate the nonconsenting pore space owners' interests; and                (8)  all pore space owners who did not consent to   integrate their interests in order to develop the pore space as a   proposed geologic storage facility but who are or will be subject to   an integration order are or will be equitably compensated for the   appurtenant and reasonable use of the pore space and surface.          (b)  To amend an integration order in order to change the   size of a geologic storage facility, the storage operator must   demonstrate to the commission that the operator has obtained the   consent of the owners representing at least 60 percent of the   ownership of the pore space, based on the surface acreage of the   proposed geologic storage facility as described in the amended   order.          (c)  An unknown or unlocatable pore space owner is considered   to have consented to integrate the owner's interest, provided that   the proposed storage operator complied with the notice requirements   under Section 125.007(b).  An unknown or unlocatable pore space   owner is eligible for equitable compensation under Section   125.008(a)(8).          (d)  An offer made to integrate the nonconsenting pore space   owners' interests is considered fair and reasonable under Section   125.008(a)(7) if it is made in a similar manner as the offer made to   the other owners of pore space in the geologic storage facility,   taking into account any material differences in circumstances.          (e)  A final integration order entered by the commission   under this section, unless modified or overturned by a final order   from a court, shall be considered final and conclusive as to all   facts, findings, and conclusions contained in the order for all   purposes and as to all parties notified and their heirs,   successors, and assigns.          SECTION 7.  Subchapter A, Chapter 5, Property Code, is   amended by adding Section 5.0015 to read as follows:          Sec. 5.0015.  OWNERSHIP OF PORE SPACE UNDERLYING THE   SURFACE. (a)  Unless expressly modified, reserved, or altered by a   deed, conveyance, lease, or contract, the ownership of the pore   space underlying the surface of land is declared to be vested in and   owned by the owner or owners of the surface estate of the land.          (b)  This section does not change the common law existing on   the effective date of this section as it relates to the relationship   between the mineral and surface estates.          SECTION 8.  Sections 27.002(19), (20), (22), and (23), Water   Code, are amended to read as follows:                (19)  "Carbon [Anthropogenic carbon] dioxide" has the   meaning assigned by Section 121.001, Natural Resources Code [:                      [(A)  means:                            [(i)  carbon dioxide that would otherwise   have been released into the atmosphere that has been:                                  [(a)  stripped, segregated, or divided   from any other fluid stream; or                                  [(b)  captured from an emissions   source, including:                                        [(1)  an advanced clean energy   project as defined by Section 382.003, Health and Safety Code, or   another type of electric generation facility; or                                        [(2)  an industrial source of   emissions;                            [(ii)  any incidental associated substance   derived from the source material for, or from the process of   capturing, carbon dioxide described by Subparagraph (i); and                            [(iii)  any substance added to carbon   dioxide described by Subparagraph (i) to enable or improve the   process of injecting the carbon dioxide; and                      [(B)  does not include naturally occurring carbon   dioxide that is recaptured, recycled, and reinjected as part of   enhanced recovery operations].                (20)  "Carbon [Anthropogenic carbon] dioxide injection   well" means an injection well used to inject or transmit   [anthropogenic] carbon dioxide into a reservoir.                (22)  "Geologic storage" means the underground storage   of [anthropogenic] carbon dioxide in a storage facility   [reservoir].                (23)  "Geologic storage facility" means the portion of   the underground reservoir, subsurface stratum, formation, cavity,   or void, whether natural or artificially created, underground   equipment, injection wells, and surface buildings and equipment   used or to be used for the geologic storage of [anthropogenic]   carbon dioxide and all surface and subsurface rights and   appurtenances necessary to the operation of a facility for the   geologic storage of [anthropogenic] carbon dioxide.  The term   includes any reasonable and necessary areal buffer and subsurface   monitoring zones, pressure fronts, and other areas as may be   necessary for this state to receive delegation of any federal   underground injection control program relating to the storage of   carbon dioxide.  The term does not include a pipeline used to   transport carbon dioxide from the facility at which the carbon   dioxide is captured to the geologic storage facility.  The storage   of carbon dioxide incidental to or as part of enhanced recovery   operations does not in itself automatically render a facility a   geologic storage facility.          SECTION 9.  The heading to Subchapter C-1, Chapter 27, Water   Code, is amended to read as follows:   SUBCHAPTER C-1.  GEOLOGIC STORAGE AND ASSOCIATED INJECTION OF   [ANTHROPOGENIC] CARBON DIOXIDE          SECTION 10.  Section 27.043(a), Water Code, is amended to   read as follows:          (a)  A person may not begin drilling or operating a [an   anthropogenic] carbon dioxide injection well for geologic storage   or constructing or operating a geologic storage facility regulated   under this subchapter without first obtaining the necessary permits   from the railroad commission.          SECTION 11.  Section 27.045, Water Code, is amended to read   as follows:          Sec. 27.045.  FEES. (a)  The railroad commission may impose   fees to cover the cost of:                (1)  permitting, monitoring, and inspecting   [anthropogenic] carbon dioxide injection wells for geologic   storage and geologic storage facilities; and                (2)  enforcing and implementing this subchapter and   rules adopted by the railroad commission under this subchapter.          (b)  Fees collected by the railroad commission under this   section shall be deposited to the credit of the [anthropogenic]   carbon dioxide storage trust fund established under Section   121.003, Natural Resources Code.          SECTION 12.  Section 27.046(a), Water Code, is amended to   read as follows:          (a)  The railroad commission may not issue a permit under   rules adopted under this subchapter until the railroad commission   issues to the applicant for the permit a letter of determination   stating that drilling and operating the [anthropogenic] carbon   dioxide injection well for geologic storage or operating the   geologic storage facility will not injure any freshwater strata in   that area and that the formation or stratum to be used for the   geologic storage facility is not freshwater sand.          SECTION 13.  Section 27.0461, Water Code, is amended to read   as follows:          Sec. 27.0461.  LETTER OF DETERMINATION FROM COMMISSION. A   person making an application to the railroad commission for a   permit under this subchapter shall submit with the application a   letter of determination from the commission concluding that   drilling and operating a [an anthropogenic] carbon dioxide   injection well for geologic storage or constructing or operating a   geologic storage facility will not impact or interfere with any   previous or existing Class I injection well, including any   associated waste plume, or any other injection well authorized or   permitted by the commission.          SECTION 14.  Section 27.047, Water Code, is amended to read   as follows:          Sec. 27.047.  RULES. The railroad commission shall adopt   rules and procedures reasonably required for the performance of its   powers, duties, and functions under this subchapter, including   rules for:                (1)  the geologic storage and associated injection of   [anthropogenic] carbon dioxide, including:                      (A)  geologic site characterization;                      (B)  area of review and corrective action;                      (C)  well construction;                      (D)  operation;                      (E)  mechanical integrity testing;                      (F)  monitoring;                      (G)  well plugging;                      (H)  postinjection site care;                      (I)  site closure, including issuance of a   certificate of closure; and                      (J)  long-term stewardship;                (2)  the enforcement of this subchapter and rules   adopted by the railroad commission under this subchapter; and                (3)  the collection and administration of:                      (A)  fees imposed under Section 27.045;                      (B)  penalties imposed for a violation of this   subchapter or rules adopted by the railroad commission under this   subchapter; and                      (C)  funds received from financial responsibility   mechanisms under Section 27.073.          SECTION 15.  Section 27.048, Water Code, is amended to read   as follows:          Sec. 27.048.  CONSISTENCY WITH AND IMPLEMENTATION OF FEDERAL   REQUIREMENTS. (a) Rules adopted by the railroad commission under   this subchapter must be consistent with applicable rules or   regulations adopted by the United States Environmental Protection   Agency or another federal agency governing the injection and   geologic storage of [anthropogenic] carbon dioxide.          (b)  If rules or regulations adopted to govern the geologic   storage and associated injection of [anthropogenic] carbon dioxide   under the federal Safe Drinking Water Act (42 U.S.C. Section 300f et   seq.) or another federal statute allow this state to seek primary   enforcement authority under the underground injection control   program, the railroad commission shall seek primacy to administer   and enforce the program for the geologic storage and associated   injection of [anthropogenic] carbon dioxide in this state,   including onshore and offshore geologic storage and associated   injection.          SECTION 16.  Section 27.051(b-1), Water Code, is amended to   read as follows:          (b-1)  The railroad commission may issue a permit under   Subchapter C-1 if it finds:                (1)  that the injection and geologic storage of   [anthropogenic] carbon dioxide will not endanger or injure any oil,   gas, or other mineral formation;                (2)  that, with proper safeguards, both ground and   surface fresh water can be adequately protected from carbon dioxide   migration or displaced formation fluids;                (3)  that the injection of [anthropogenic] carbon   dioxide will not endanger or injure human health and safety;                (4)  that the reservoir into which the [anthropogenic]   carbon dioxide is injected is suitable for or capable of being made   suitable for protecting against the escape or migration of   [anthropogenic] carbon dioxide from the reservoir; and                (5)  that the applicant for the permit meets all of the   other statutory and regulatory requirements for the issuance of the   permit.          SECTION 17.  Sections 27.073(a) and (b-1), Water Code, are   amended to read as follows:          (a)  A person to whom an injection well permit is issued may   be required by the commission or railroad commission to maintain a   performance bond or other form of financial security to ensure   that:                (1)  an abandoned injection well is properly plugged;   or                (2)  funds are available for plugging, postinjection   site care, and closure of a [an anthropogenic] carbon dioxide   injection well subject to Subchapter C-1.          (b-1)  The railroad commission is authorized to receive   funds as the beneficiary of a financial responsibility mechanism   established under this chapter for the proper management of a [an   anthropogenic] carbon dioxide injection well or geologic storage   facility.  The funds shall be deposited to the credit of the   [anthropogenic] carbon dioxide storage trust fund established   under Section 121.003, Natural Resources Code.          SECTION 18.  Except as provided by Section 19 of this Act,   not later than January 1, 2024, the Railroad Commission of Texas   shall adopt rules as necessary to implement Chapters 124 and 125,   Natural Resources Code, as added by this Act.          SECTION 19.  Not later than April 1, 2024, the Railroad   Commission of Texas may adopt rules as necessary to allow the   commission to assess a fee or fees in an amount sufficient to   recover any costs incurred by the commission in implementing   Chapter 121, Natural Resources Code, as amended by this Act, that   are in addition to the costs incurred by the commission in   performing its other functions. This section does not authorize   the commission to assess a fee for performing any function that is   not specific to the implementation of Chapter 121, Natural   Resources Code.          SECTION 20.  This Act takes effect immediately if it   receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.     If this Act does not receive the vote necessary for immediate   effect, this Act takes effect September 1, 2023.