House OKs regulations for 'carbon sequestration'

HELENA – The Montana House today approved a heavily amended bill to regulate a fledgling industry that seeks to pump the carbon dioxide produced by coal-fired power plants into the ground. The vote was 77-23.

Senate Bill 498, sponsored by Sen. Keith Bales, R-Otter, would set up rules and regulations for “carbon sequestration,” the process of capturing the greenhouse gas carbon dioxide as it is emitted from a plant and storing it underground instead of releasing it into the atmosphere.

The version approved by the House came with 58 amendments from committee, changes Rep. Mike Phillips, D-Bozeman, said were necessary to get the bill out of the deadlocked Federal Relations, Energy and Telecommunications Committee.

“It represents a sufficient regulatory framework,” Phillips said.

Some of the most significant amendments give regulatory authority to the Board of Oil and Gas Conservation but also requires the board to consider comments from the Department of Environmental Quality before a CO2 injection certificate can be granted. Phillips also said the amended version of the bill left no role for the Board of Environmental Review.

The issue had been a sticking point for some Democrats and environmentalists who argued the DEQ would provide a more scientific review of permits than the Board of Oil and Gas Conservation, which they say tilts toward industry’s views.

Another point of contention was how long a sequester would be liable for any environmental problems associated with the practice. Lawmakers compromised at 30 years.

The bill also defines ownership of “pore space,” or the underground space where the gas will be stored. It now says that if the ownership cannot be determined by deeds through law, it will be assumed the surface owner owns the pore space.

Lawmakers on both sides of the aisle supported the bill. Rep. Art Noonan, D-Butte, touted the bill as essential for future coal development because coal companies, fearing future federal carbon regulations, will not build plants in the state if they do not have access to underground places where they can store CO2.

“There is no future in coal if we don’t get our hands around this,” Noonan said. “You don’t like coal? Vote against this.”

Noonan, who heads the House committee that forged the much-changed bill, predicted that the issue will need more work in future sessions. If the measure passes, Montana would be one of only a few states with such legislation.

“This is a scary proposition,” Noonan said. “This is a big deal.”

Many Republicans agreed with Noonan. Rep. Duane Ankney, R-Sidney, urged lawmakers to vote for the measure even if they do not believe in global warming.

“This bill is essential to any development going forward in coal,” Ankney said.

But opponents said the science of carbon sequestration has yet to be developed or tested. They argued that the Legislature would be acting prematurely if it passed such regulations.

“There is no such industry and there is no such technology,” Rep. Brady Wiseman, D-Bozeman, said. “None of this (legislation) advances the cause of carbon sequestration.”

Wiseman added that since the industry does not exist, SB 498 has become a political talking point to show support for coal development in general.

“If you want to pledge your allegiance to coal, let’s not do it with 30 pages of legislation,” he said.

Rep. Gordon Hendrick, R-Superior, also expressed concern about the lack of scientific study on carbon sequestration. He said the effects on Montanans and the environment should be carefully considered before passing any laws.

But Phillips disagreed, saying Montana could be a front-runner in the development of carbon sequestration, bringing in more business and responsible natural resource development.

“This is a most timely issue,” Phillips said.

The Senate will need to approve the House amendments before the bill can be sent to Gov. Brian Schweitzer, who must decide whether to sign it. Only four legislative days remain.

-by CNS correspondent Molly Priddy