Carbon Sequestration

The legislature considered three bills to regulate the geologic sequestration of carbon dioxide.  MEIC and other environmental groups supported SB 66  (Ron Erickson, D-Missoula), and HB 502: (Mike Phillips, D-Bozeman), because they would have provided adequate environmental and public health protections, and would have ensured that companies engaging in sequestration activities were legally liable for these projects for the long-term.  Both measures gave control of the regulatory program to the Department of Environmental Quality.  Industrial interests strongly opposed both bills, and both died in committee.

A third bill was introduced about halfway through the session.  SB 498 (Keith Bales, R-Otter) had the full support of the coal and utility industries.  Their priorities were to ensure weak sequestration regulations and avoid long-term liability for this untried activity—not to protect the environment, land surface owners, and taxpayers.  SB 498 gives control of the regulatory program to the Board of Oil and Gas Conservation (Board), and allows companies to be released from liability after a mere 30 years.  SB 498 passed the Senate by a vote of 42-8.  (See VOTE NO ON SB 498 FACT SHEET)

In the House, the bill initially was defeated on a 7-7 vote in the (H) Federal Relations, Energy, and Telecommunications Committee.  Republicans rejected amendments that would have protected water quality and provided for adequate judicial review of regulatory decisions by the Board.  A week later the Committee reconsidered the bill, added nearly 60 amendments that MEIC strongly supported, and passed it out of committee.  SB 498 passed the House by a vote of 59-41.

Despite all the amendments, SB 498 still suffers from a serious flaw—it gives nearly complete control of the carbon sequestration program to the Board.  This Board, largely controlled by the industries it regulates, is simply the wrong entity to have so much power over this new and untested activity.  Even in Wyoming control of the sequestration program was given to its Department of Environmental Quality, not to its oil and gas agency.

The mission and composition of the Board and its staff make it unsuitable for the development and implementation of a protective carbon dioxide sequestration program.  The Board is comprised of seven individuals appointed by the governor.  It meets only every other month and is required by law to have a majority of members directly connected to the oil and gas industry.  Some have called it the most captive agency in State government today. 

The agency has 20 staff  people who mostly monitor oil and gas producers to ensure compliance with federal regulations.  The director of the agency is not even appointed by the governor, but is instead hired by the Board.  This agency has little accountability to the public, no experience in long-term monitoring for air, water, and soil contamination, and too few staff people to write regulations, monitor enormous injection areas both above and below ground, and take enforcement actions against violators. 

In short, having this agency administer a new and nearly unprecedented regulatory program is likely to be very bad for the environment, property owners, and taxpayers of Montana.  Those are the people who will suffer if the regulatory program is inadequate.

The Governor signed the bill into law on May 6th.

See Fact Sheet on the Potential Risks associated with Carbon Sequestration

OTHER BILLS THAT PASSED

  
HB 338: Rep. Duane Ankney (R-Colstrip). While this bill does not directly address carbon sequestration, it does deal with transportation of CO2 produced from the combustion of fossil fuels like coal. It would give industries that own CO2 pipelines eminent domain over private property by granting them common carrier status. MEIC position:  OPPOSE.

• Signed into law by Governor 4/16/09
  

BILLS THAT DIED

HJ 13: (Rep. Besty Hands, D-Missoula). This resolution would have supported the “2030 Challenge,” a program to incrementally improve energy efficiency and green building practices so that by 2030 all new and renovated buildings in the state would be carbon neutral.   MEIC POSITION: SUPPORT.

• (H) Missed Deadline for General Bill Transmittal    02/26/2009
  

HB 254:  (Mike Phillips, D-Bozeman)  This bill would require the Montana Board of Environmental Review to adopt rules to require the reporting of greenhouse gas emissions by all sources that emit significant levels of greenhouse gases each year.  MEIC position:  SUPPORT.

• Tabled by (H) Natural Resources 3/20/09; (H) Missed Deadline for Revenue Bill Transmittal 3/31/09
  

SB 180: (Ron Erickson, D-Missoula).  This bill would require Montana to join eleven other states in adopting California’s clean car standards.  These standards require significant reductions in vehicle emissions from new cars.  MEIC position:  SUPPORT.

• Missed Deadline for General Bill Transmittal    02/26/2009

IN THE NEWS: 

• Governor backs mileage rules (AP, 1/21/09)
• Area’s Big Three auto dealers keep pace (by Martin J. Kidston, Independent Record. 2/01/2000