Energy (Oil & Gas)

HB 5553 amends Michigan's pipeline law to remove the right to use eminent domain (government property seizure) for carbon dioxide pipelines. It specifically eliminates the provision that previously allowed pipeline companies to condemn private property for transporting carbon dioxide, which currently applies to crude oil and petroleum pipelines. This change directly affects companies planning to build carbon dioxide pipelines, requiring them to negotiate land access with property owners instead of using condemnation. The bill modifies Section 2 of the 1929 pipeline statute (MCL 483.2), limiting condemnation rights to only crude oil and petroleum pipelines. This is a concrete policy change to the property rights mechanism for pipeline development.

SB 275 creates a new act to prohibit local governments in Michigan from imposing bans on the use of natural gas. It also prevents counties, cities, villages, and townships from prohibiting the installation of natural gas infrastructure within their jurisdictions. Any local ordinance, resolution, or policy adopted by a municipality on or after the bill's effective date that violates these provisions would be deemed void and unenforceable. This bill directly affects local governments and their ability to regulate natural gas use and infrastructure.

HB 4007 amends Michigan's Clean and Renewable Energy Act (2008 PA 295) by expanding the definition of "clean energy system" to include natural gas plants using carbon capture and storage (at least 90% effective) and certain existing natural gas facilities that can meet clean energy standards by 2030 through carbon capture and removal technologies. This change directly affects electric providers required to meet the state's clean energy standard, as it broadens the types of energy sources that qualify toward their compliance targets. The bill specifies that carbon capture must permanently store carbon dioxide (excluding enhanced oil recovery), and permits for new facilities may require higher capture rates if deemed necessary under federal standards. This definition update provides additional pathways for natural gas projects to count toward Michigan's clean energy goals.

SB 395 updates the definition of "carbon dioxide substance" in Michigan's oil and gas law to explicitly include CO₂ used in enhanced oil recovery operations or storage. This affects companies handling CO₂ for oil extraction and the Michigan Public Service Commission, which regulates these activities. The bill clarifies that carbon sequestration wells operating under existing environmental laws (Part 651 of the Natural Resources Act) are excluded from new regulatory requirements. It does not change existing pipeline rights or create new obligations, solely refining definitions for clarity.

HB 4486 prohibits Michigan municipalities from banning natural gas use or the installation of natural gas infrastructure, directly affecting cities, towns, counties, and townships. The bill makes any local ordinance, resolution, or policy that restricts natural gas use or infrastructure void and unenforceable starting from its effective date. It specifically targets bans on residential, commercial, or industrial natural gas applications and related infrastructure like pipelines. This legislation ensures that local governments cannot block natural gas services or new installations within their jurisdictions.