Oil industry in Ohio proposes new carbon capture legislation

In the heart of the Midwest, Ohio is taking a significant step towards addressing climate change by considering a proposed legislation, House Bill 170. This bill, if passed, would establish rules for underground carbon dioxide storage, a practice known as carbon capture and sequestration (CCS).

The bill has garnered the support of several key figures. House Rep. Bob Peterson (R-Sabina) is now a cosponsor, while Sen. Brian Chavez (R-Marietta), a freshman senator, has replaced Sen. Al Landis (R-Dover) as a cosponsor of Senate Bill 136.

The Ohio Department of Natural Resources and industry groups, including the American Petroleum Institute and the Ohio Oil and Gas Association, have been actively involved in shaping the bill. During the 2023-2024 legislative session, these groups vetted Rep. Monica Robb Blasdel (R-Columbiana) as a potential bill sponsor for carbon capture legislation.

The push for carbon capture in Ohio could be due to the industry facing Biden-era emissions rules for natural gas plants. The Trump administration now proposes to repeal those rules, but the oil and gas industry still faces increased competition from renewables.

Supporters of the bill suggest that tax credits could offset the costs of reducing greenhouse gas pollution, and companies could also sell carbon offset credits to other businesses. Companies would lease subsurface property rights long-term and eventually transfer liability for the stored waste to the state.

The bill would allow companies to pump waste carbon dioxide from industrial plants and hydrogen production deep underground. This practice is considered necessary to lower greenhouse gas emissions that drive human-caused climate change.

However, the specific organizations involved in shaping the Ohio underground carbon dioxide storage law and their interests are not identified in the provided search results.

In February 2024, the industry groups sent a draft substitute bill with details for the carbon capture program. A detailed bill was swapped out for the earlier placeholder version in the House Natural Resources Committee last December.

The Ohio Legislative Service Commission raised questions about the bill with Schaffer's office, which received answers from the Ohio Oil and Gas Association. It appears that Robb Blasdel was not informed about the bill until months later.

Despite the questions and potential delays, the bill continues to move forward. In fact, nine other states, in addition to the four mentioned earlier, have applied for federal approval to permit and regulate wells for underground carbon dioxide storage.

More than 20 state legislatures have passed or have been considering similar carbon capture bills, according to a presentation by the American Petroleum Institute. This trend suggests a growing recognition of the need for carbon capture technologies in the fight against climate change.

As the debate continues, it's clear that Ohio is at a crossroads. Will the state embrace this new technology and help lead the way in reducing greenhouse gas emissions, or will it resist and risk being left behind in the race to combat climate change? Only time will tell.