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SB 265

DEP rule relating to carbon dioxide sequestration fee schedule

2026 Regular Session

SB 265 establishes West Virginia DEP fee schedule for carbon dioxide sequestration permits and operations, creating revenue while regulating underground CO2 storage projects.

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Bill Summary · SB 265

Legislative bill overview

SB 265 establishes a fee schedule for carbon dioxide sequestration activities regulated by West Virginia's Department of Environmental Protection (DEP). The bill creates a pricing structure for permits and ongoing compliance related to CO2 storage projects, likely including geological sequestration operations. This represents West Virginia's regulatory framework for managing and monetizing carbon capture and storage activities.

Why is this important

Carbon capture and sequestration is increasingly relevant as industries and governments pursue climate mitigation strategies, and fee structures directly affect project economics and feasibility. For West Virginia, this creates revenue mechanisms while potentially attracting carbon capture investment to the state, which has significant geological formations suitable for CO2 storage. The fee schedule determines whether projects become economically viable and how much regulatory resources the state dedicates to oversight.

Potential points of contention

  • Fee level competitiveness: If fees are set too high, projects may locate in other states with lower regulatory costs; if too low, insufficient revenue for DEP oversight and environmental monitoring
  • Industry burden vs. environmental protection: Questions about whether fees adequately fund environmental safeguards, liability management, and long-term monitoring of sequestration sites
  • Fairness across sectors: How fees apply differently to industrial operators, energy companies, or other entities engaging in CO2 sequestration activities

Compiled from official sources — confirm details with the bill’s official record.

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