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SB 396

Environmental protection: air pollution; regulation of carbon sequestration; provide for. Amends secs. 502 & 1301 of 1994 PA 451 (MCL 324.502 & 324.1301); adds sec. 52509 & subch. 6 to ch. 3 of art. III. TIE BAR WITH: SB 0394'25, SB 0395'25

2025-2026 Regular Session Introduced by Sean McCann

Michigan establishes regulatory framework for carbon sequestration projects to manage climate mitigation activities and verify environmental compliance standards.

referred to Committee on Energy
#environmentalprotection:airpollution #naturalresources:gasandoil
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Bill Summary · SB 396

Legislative bill overview

SB 396 amends Michigan's environmental protection laws to establish regulatory frameworks for carbon sequestration activities. The bill adds new provisions to the state's Natural Resources and Environmental Protection Act, creating a dedicated section (52509) and new regulatory subchapter specifically governing how carbon sequestration projects must be managed and monitored.

Why is this important

Carbon sequestration—the process of capturing and storing atmospheric carbon dioxide—is increasingly viewed as a climate change mitigation tool. This bill establishes Michigan's first dedicated regulatory structure for such projects, potentially opening economic opportunities while ensuring environmental safeguards. The tie-bar references to companion bills (SB 0394'25 and SB 0395'25) suggest a coordinated legislative approach to carbon management policy.

Potential points of contention

  • Regulatory burden vs. incentive balance: The specific requirements of the new regulations could either encourage or discourage private investment in sequestration projects depending on implementation costs and compliance complexity
  • Property rights and long-term liability: Carbon storage on private land raises questions about perpetual monitoring obligations, liability transfers, and whether landowners bear ongoing responsibility if stored carbon leaks decades later
  • Effectiveness and verification standards: The bill's success depends on rigorous standards for measuring, verifying, and accounting for stored carbon—unclear criteria could lead to "carbon washing" or underperformance

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

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