SF 249 — Carbon dioxide release damages; liability, liens, and related provisions
Overview
- Bill: SF 249
- Title: A bill for an act relating to damages incurred due to releases of carbon dioxide from liquefied carbon dioxide pipelines or carbon dioxide facilities and including effective date provisions.
- Status: Subcommittee (Bousselot, Blake, Webster); introduced February 10, 2025; referred to Commerce
- Primary sponsors: Guth, Campbell, Alons, Lofgren, Salmon, Taylor, Westrich
- Effective date: Immediate upon enactment (no phase-in)
Purpose and intent
- The bill establishes a new statutory framework to address damages caused by releases of carbon dioxide from liquefied CO2 pipelines or CO2 facilities.
- It creates a private right of action for victims, assigns strict liability to owners, and provides lien priority to victim judgments. It also prescribes asset handling in bankruptcy scenarios to protect potential lienholders.
Key provisions and changes
Section 1 — New section 479B.34: Carbon dioxide release — cause of action
- Definitions
- Owner: Any person who owns or operates a liquefied CO2 pipeline or CO2 facility, or who supplies CO2 to such pipeline/facility.
- Victim: Any person residing, traveling through, or visiting, or owning/leasing property, equipment, or livestock within 25 miles of the release site of CO2 from a pipeline or facility.
- Standing and remedies
- Victims have standing to commence a civil action for compensation for damages incurred or projected due to a CO2 release.
- Time limits
- A claimant must file within one year after the cause of action accrues.
- Liability
- The owner is strictly liable for all compensatory and punitive damages arising from the release.
- Lien priority
- A judgment lien issued under this act has priority over any conflicting security interests or liens, including those perfected prior to the judgment.
- Bankruptcy and asset protection
- If an owner is in bankruptcy or receivership, the trustee, conservator, or court must hold the owner’s assets in trust for the benefit of potential CO2 victim lienholders for one year. This period runs from:
- The owner’s last day of controlling operations of the CO2 pipeline or facility, or
- The owner’s last day of producing CO2 that will be transported via the pipeline or sequestered on the property.
Section 2 — Effective date
- The act is stated to be of immediate importance and takes effect upon enactment.
Impact and who is affected
Affected parties
- Owners and operators of liquefied CO2 pipelines and CO2 facilities
- Persons or entities supplying CO2 to those pipelines/facilities
- Victims within a 25-mile radius of a CO2 release (residents, travelers, property/equipment owners, and livestock owners/lessees)
- Creditors and lienholders, including those with secured interests
- Bankruptcy trustees and courts overseeing reorganizations or liquidations
Potential implications
- Substantial liability exposure for CO2 infrastructure owners, including potential punitive damages.
- Creation of automatic priority for CO2-related judgments over existing liens, affecting secured creditors.
- Enhanced protection for nearby victims, potentially influencing siting, safety, and risk management practices.
- In bankruptcy contexts, a mechanism to preserve value for lienholders for a defined period (one year) after operations cease or CO2 production/transport ends.
Note: The bill outlines a specific one-year claim window and a strict-liability standard, with emphasis on near-site impacts and lien prioritization.
