Ohio Senate Advances Revised Carbon Capture Legislation – Carbon Herald

The Ohio Senate has passed a revised version of legislation aimed at establishing a regulatory framework for carbon capture and storage (CCS) projects in the state.
Substitute House Bill 170, approved unanimously by the Senate on May 20, would authorize the development of CCS projects involving the injection of captured CO2 into underground storage formations through Class VI wells. The bill now returns to the House for consideration of the Senate’s changes.
Like the earlier House version passed in 2025, the revised bill clarifies ownership rights related to underground pore space, authorizes the transfer of pore space rights, and places oversight of CCS development under the Ohio Department of Natural Resources’ Division of Oil and Gas Resources Management.
The legislation also outlines permitting requirements, project closure rules, liability provisions and a framework for the statutory consolidation, or “forced pooling,” of pore space interests needed for storage projects.
The Senate substitute bill introduces several notable changes to the original legislation.
Under the revised framework, CCS developers seeking statutory consolidation must make three attempts to contact known pore space owners, negotiate in good faith and secure consent from at least 75% of owners before applying for forced pooling. The earlier House version required 70% approval.
The bill also clarifies that consolidation orders would not automatically grant surface access rights without separate agreements with landowners.
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Additional changes include the creation of a host community fund financed through a three-cent-per-ton fee on stored CO2. The fund would support local infrastructure, education, parks and public safety projects in affected communities.
The revised bill also expands the financial assurance options available to CCS operators beyond surety bonds to include letters of credit, insurance, escrow and self-insurance arrangements.
Other provisions establish an appeals process through the state oil and gas commission, reduce the state injection fee slightly from 5.25 cents to 5 cents per metric ton, and authorize the Ohio Department of Natural Resources to develop programs supporting CO2 reuse and innovation.
Industry groups backing the legislation are urging lawmakers to reconcile the House and Senate versions quickly as interest in CCS development continues to grow across the region.
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