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HB428 INTRODUCED
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HB428
5VBHL3M-1
By Representatives Hammett, Robertson, Hulsey, Paramore,
Fidler
RFD: County and Municipal Government
First Read: 12-Feb-26
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5VBHL3M-1 01/28/2026 ZAK (L)ZAK 2026-137
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First Read: 12-Feb-26
SYNOPSIS:
This bill would prohibit a person from injecting
and storing carbon dioxide in subsurface injection
wells unless the governing body of the county or
municipality in which a well will be located approves.
This bill would provide procedures for a person
to apply to operate such a well and procedures by which
a governing body must approve or disapprove an
application.
A BILL
TO BE ENTITLED
AN ACT
Relating to injection wells; to prohibit the
sequestration of carbon dioxide into underground injection
wells unless the applicable local governing body of the county
or municipality in which the well will be located has
approved; to provide procedures by which local governing
bodies shall approve or disapprove applications to site such
wells.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) No person may inject, store, or
sequester carbon dioxide in an underground well, including a
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sequester carbon dioxide in an underground well, including a
Class VI well as defined by the United States Environmental
Protection Agency pursuant to the Underground Injection
Control Program of the Safe Drinking Water Act, 42 U.S.C. §
300f et seq., unless the governing body of the county, and the
governing body of the municipality, if applicable, in which
the well will be located has approved of the well.
(b) Any person seeking approval from the governing body
of a county or municipality for the siting of a new well shall
submit all of the following to the governing body as its
application:
(1) An application fee in an amount of fifty thousand
dollars ($50,000) payable to the local governing body.
(2) A written document addressing each of the criteria
described in subsection (e).
(2) The applicant's experience of owning or operating
such wells.
(3) Information relating to the applicant's financial
resources, including any investors or corporate affiliates of
the applicant.
(4) Any pending and past civil or criminal actions
taken by a governmental entity against the applicant or its
owners, operators, investors, or affiliates.
(5) Any other information the applicant deems relevant
or that may assist the local governing body in making a
decision whether to approve or disapprove the application.
(c) After an applicant has submitted a complete
application to the local governing body, the body shall
formally receive the application at its next regularly
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formally receive the application at its next regularly
scheduled meeting. At this time, the public comment period
begins.
(d)(1) Not more than 10 days after the formal receipt
of an application, the local governing body, at the expense of
the applicant, shall provide the following notice that an
application for local approval of a new well has been
received:
a. Notice to each owner whose property is adjacent to a
proposed well site, sent by certified mail.
b. Notice to the general public provided by all of the
following means:
1. Publishing a notice in a newspaper having general
circulation, if one exists, within the affected community one
day per week for a two-week period.
2. Broadcasting public service announcements submitted
to a radio station that has general broadcast coverage within
the affected community.
3. Displaying a notice on the local governing body's
website, if available.
(2) Any printed notice by letter, newspaper, or
electronically on a website shall contain at a minimum the
following:
a. A description of the application and approval
process as provided in this section.
b. A description of the criteria the governing body
will consider, as provided in subsection (e), in determining
whether to approve or disapprove the site.
c. An individual who interested persons may contact to
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c. An individual who interested persons may contact to
obtain additional information and review copies of the
application.
d. A description of the location where interested
persons may obtain or review copies of the application, and
the time frame for public hearings and involvement.
e. A description of how the public may submit written
comments to the local governing body.
(e) In determining whether to approve a new well, the
local governing body shall consider each of the following
criteria:
(1) The relationship of the proposed well to any local
planned or existing development, to major transportation
arteries, and to existing state primary and secondary roads.
(2) The location of a proposed well in relationship to
existing industries in the state that generate large volumes
of carbon dioxide, or the relationship to the areas projected
for development of industries that will generate carbon
dioxide.
(3) Costs and availability of public services,
facilities, and improvements required to support the proposed
well.
(4) The impact of the proposed well on public health,
safety, and the environment, including sources of drinking
water.
(5) The social and economic impacts of the proposed
well on the affected community, including changes in property
values and social or community perception.
(f)(1) Not more than 45 days after the local governing
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(f)(1) Not more than 45 days after the local governing
body formally receives an application, the applicant shall
conduct at least one public awareness session in the county or
municipality in which the proposed well is to be located,
during which the applicant shall provide general information
on the design and operation of the proposed well and address
questions and concerns voiced by members of the affected
community. The time, date, and location of the public
awareness session shall be approved by the local governing
body. The applicant, at its own expense, shall provide notice
of the public awareness session by both printed and broadcast
media beginning at least 30 days before the session. Printed
notification shall include publication in at least one
newspaper having general circulation within the affected
community one day per week for a two-week period. Broadcast
notification shall include public service announcements on a
radio station that has general broadcast coverage within the
affected community. At least one representative of the local
governing body shall attend each public awareness session. If
any written comment or question relating to the proposed well
is submitted to the applicant at the public awareness session,
the applicant shall respond, if practicable, in writing within
14 days to the member of the public with a copy provided to
the local governing body.
(2) The applicant is solely responsible for carrying
out the requirements of subdivision (1). A public awareness
session is independent of and separate from a public hearing.
(g) Not more than 45 days after the date of the last
public awareness session, the local governing body shall hold
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public awareness session, the local governing body shall hold
at least one public hearing. Notice of the time and place of
any public hearing shall be given by publication in at least
one newspaper of general circulation within the affected
community at least 30 days, but not more than 45 days, before
the proposed date of the hearing. Content of the notice shall
be consistent with the notice requirements in subsection (d).
All pertinent documents shall be available for inspection
during normal business hours at a location readily accessible
to the public. The public may submit written comments to the
local governing body at any time up to the conclusion of the
last public hearing.
(h) The local governing body shall have 30 days after
the last public hearing to complete its review of the
application and, giving consideration to the criteria provided
in subsection (e) , to public input, and to other information
gathered from the applicant pursuant to subsection (b), shall
make a decision to approve or disapprove the siting of a new
well.
(i) If disapproved by the governing body, the applicant
may submit a new application under subsection (b). A new
application for local approval submitted within 18 months of
an application being disapproved by the local governing body
shall be accompanied by an application fee payable to the
local governing body in an amount equal to seventy-five
thousand dollars ($75,000).
(j) After the local governing body has granted approval
of the application, the applicant shall petition the
appropriate circuit court pursuant to Rule 57 of the Alabama
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appropriate circuit court pursuant to Rule 57 of the Alabama
Rules of Civil Procedure for a determination of each of the
following:
(1) Whether the local governing body complied with the
public comment requirements and time frames required under
this section.
(2) Whether the local governing body considered the
criteria provided in subsection (e) as presented to the body
by the applicant in its application pursuant to subsection
(b).
(k) The applicant shall bear all court costs, and his
or her own legal expenses, relating to the filing of the
petition.
(l) Unless the court with which a petition is filed
needs additional information from the local governing body,
the court shall issue a ruling not more than 60 days after the
initial petition is filed, provided the court may extend this
date not more than 30 additional days if the court seeks
additional information from the governing body.
(m) If the circuit court issues a declaratory judgment
determining that the local governing body met the criteria set
out in subsection (j), the applicant may seek approval by
other regulatory authorities as required by law. If the
circuit court issues a declaratory judgment determining that
the criteria set out in subsection (j) has not been met, the
matter shall be remanded to the local governing body for
further consideration consistent with the requirements of this
section. The local governing body or applicant shall be
afforded the opportunity to mitigate any discrepancies the
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afforded the opportunity to mitigate any discrepancies the
court finds, provided the period during which the governing
body or applicant shall respond may not extend more than 90
days.
Section 2. (a) Any well approved pursuant to Section 1
shall be taxed at a rate of ten percent of the gross value of
all carbon dioxide injected or otherwise stored in the well to
be remitted monthly to the Department of Revenue. For purposes
of this subsection, the term "gross value" means the sale
price or market value at the time of injection or storage.
(b) Fifty percent of the net amount of all taxes
collected by the department pursuant to subsection (a) shall
be deposited into the General Fund of the state. The other
fifty percent shall be allocated and distributed by the
Comptroller to the county in which the carbon dioxide was
injected or otherwise stored for local purposes or to be
expended at the discretion of the governing body. Fifty
percent of the fifty percent to be distributed to the county
shall be distributed to a municipality if the well is located
within the corporate limits of the municipality to be used for
the same purposes.
(c) The department may adopt rules to administer this
section.
Section 3. Section 1 of this act shall become effective
immediately and Section 2 of this act shall become effective
on October 1, 2026.
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