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HB 2790

Relating to liability for capturing and storing carbon dioxide.

89th Legislature (2025) Introduced by Drew Darby

Texas bill establishing liability protections for carbon dioxide capture and storage operators to encourage private investment in this emerging emissions reduction infrastructure.

Placed on General State Calendar
#civilremedies&liabilities(i0065) #environment--air(i0325) #oil&gas(i0545)
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Bill Summary · HB 2790

Legislative bill overview

HB 2790 addresses legal liability protections for entities engaged in carbon dioxide capture and storage operations in Texas. The bill establishes a framework clarifying liability standards and protections for companies involved in CO2 capture, transportation, and permanent geological storage—a key infrastructure for both industrial emissions reduction and potential carbon credit revenue.

Why is this important

Carbon capture and storage (CCS) is increasingly viewed as critical climate infrastructure and an economic opportunity for Texas. However, companies investing in CCS operations face uncertainty about long-term liability exposure if stored CO2 leaks or causes environmental damage. Clarifying liability rules removes a major barrier to private investment in this emerging industry and could position Texas as a CCS leader, but it also raises questions about who bears the financial risk of potential failures.

Potential points of contention

  • Environmental liability limits: The bill may shield operators from certain liability claims, potentially leaving taxpayers or affected communities responsible for environmental remediation if storage sites fail
  • Long-term financial responsibility: Unclear whether operators must maintain perpetual liability insurance or if the state assumes responsibility after a certain period, affecting costs and public risk
  • Competing interests: Balance between incentivizing private CCS investment and protecting landowners whose property sits above storage sites from subsidence or contamination risks

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

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