House Bill 428 Alabama 2026 Session

Summary

Primary Sponsor

Matthew HammettRepresentative

Republican

Session

2026 Regular Session

Title

Underground wells; carbon dioxide storage prohibited unless local governing body approves, approval procedures provided

Summary

HB 428 would require local governing bodies to approve carbon dioxide injection wells before they can operate and would establish an application, notice, public participation, and tax framework.

What This Bill Does

It blocks the injection and storage of carbon dioxide in underground wells unless the county or municipality where the well is located approves the project. It creates an application process with a $50,000 fee and requires information about the applicant, finances, past actions, and other relevant details. It also sets up public notice and participation requirements (adjacent property owners, newspaper and radio notices, and public awareness sessions and hearings) and a set of criteria for approval, along with a court-review mechanism if challenged. Additionally, it imposes a 10% tax on the gross value of injected CO2, with revenue shared between the General Fund and local governments.

Who It Affects

• Adjacent property owners and nearby residents would be notified of proposed wells and able to participate in public processes, with potential impacts on property values and local environment.
• CO2 injection operators/applicants and local governments (counties and municipalities) would navigate a new siting process, pay fees, meet criteria, conduct public participation activities, and be subject to tax obligations.

Key Provisions

• Local approval is required before siting or injecting CO2 in underground wells; without approval, activities are prohibited.
• Application package must include a $50,000 fee and detailed information about the applicant's experience, finances, past actions, and other relevant factors.
• Governing bodies must provide notice to adjacent property owners and the public, publish notices, and hold public awareness sessions and hearings with stated timelines.
• Approval decisions must consider criteria related to development proximity, relationship to CO2-emitting industries, public services, health and environmental impacts (including drinking water), and social/economic effects.
• If approved, the applicant must petition a circuit court to review compliance; if disapproved, a new application within 18 months carries a higher $75,000 fee.
• A 10% tax on the gross value of injected CO2 is imposed; revenue is distributed between the General Fund and local governments (county, and municipality if applicable) for local use.
• The Department may adopt rules to administer the tax and related provisions.
• Section 1 takes effect immediately; Section 2 becomes effective October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Conservation & Natural Resources