Ohio Governor Mike DeWine has signed House Bill 170 into law, creating the state’s first comprehensive regulatory and legal framework for the permanent geologic storage of carbon dioxide.
The legislative milestone is a direct victory for regional agricultural groups like Ohio Corn and Wheat. By introducing a clear, state-administered protocol for carbon capture and storage (CCS), the law allows local ethanol refining facilities to dramatically lower their fuel carbon intensity scores. This shifts Ohio-grown grain into premium, low-carbon fuel markets and unlocks new demand channels amid tightening regional biofuel regulations.
Crucially, the legislation wrests oversight away from slow-moving federal processes, placing Ohio “in the driver’s seat” of its own carbon economy. Under House Bill 170, the Ohio Department of Natural Resources (ODNR) Division of Oil and Gas Resources Management holds sole and exclusive authority over the permitting and operation of all carbon injection and underground storage facilities across the state.
This centralized approach explicitly prohibits local municipalities from enacting a patchwork of conflicting zoning restrictions or discriminatory bans that could otherwise stall developer progress.
Mitigating Developer Risk: Pore Space, Unitization, and Liability Transfer
To accelerate infrastructure investment, the law addresses the structural bottlenecks that frequently derail multi-surface-owner carbon hubs. HB 170 clarifies the legal ambiguity surrounding subsurface ownership by cleanly vesting pore space rights with the surface property owner.
Furthermore, it solves the traditional “holdout problem” through a statutory consolidation mechanism: if a storage developer secures good-faith lease agreements with owners representing at least 70% of a proposed project’s subsurface pore space, the state can legally unitize the remaining area to ensure the storage facility moves forward. Non-consenting owners are subsequently guaranteed fair and reasonable compensation.
Relevant: Ohio Senate Advances Revised Carbon Capture Legislation
The new statute also includes significant liability protections to lower capital risks for project operators. Once a storage project achieves safe, permanent closure, and the ODNR Chief issues an official certificate of completion, the primary long-term liability for the sequestered CO2 shifts entirely to the State of Ohio.
These post-closure oversight and monitoring obligations will be financed via a dedicated Carbon Dioxide Storage Facility Fund, supported by an ongoing fee of 5 cents per metric ton of injected carbon.
As ODNR coordinates with fellow state agencies to draft final rules, the newly minted legal certainty positions Ohio as an elite, competitive destination for Midwestern carbon management infrastructure.
Read more: Iowa Modifies Permitting Terms For Summit Carbon Pipeline To Move Forward
