Donna Gregory
In a move poised to reshape legal standards for
carbon capture and storage (CCS) activities, the Texas House Judiciary & Civil Jurisprudence Committee has advanced H.B. 2790, sponsored by Representative Drew Darby (R-San Angelo), following a committee report on May 10, 2025. The bill, if passed, will establish comprehensive liability protections for operators engaged in the capture, transport, and
geologic storage of carbon dioxide across Texas.
A Legislative Timeline of Momentum
H.B. 2790 was filed on February 13, 2025 and has since steadily moved through the Texas House process. After being referred to committee on March 19, the bill was debated and favorably reported without amendments on April 28, before being scheduled for action on the House floor.
Key Provisions of H.B. 2790
Specifically:The bill would amend Title 4 of the Texas Civil Practice and Remedies Code by adding Chapter 100B, entitled Limited Liability for Capturing and Storing Carbon Dioxide. The legislation defines legal terms and structures strict conditions under which liability claims can be brought against CCS operators.
- Captured CO₂ Exempt from Nuisance Claims: The bill protects CCS activities from being classified as nuisances or pollutants under Texas law.
- Limited Liability for Migration or Release: Operators would be shielded from damages claims related to seismic activity, subsurface migration, or inadvertent release of stored carbon dioxide—provided they comply with all relevant legal and regulatory requirements.
- Strict Conditions for Claimants: Landowners or mineral rights holders would only be allowed to seek non-economic damages under strict circumstances, such as concealment of material information during the permitting process, failure to comply with legal requirements, or deviation from established industry practices purely for economic gain.
- Mineral and Water Rights Protections: The bill defines compensation parameters for landowners whose mineral or water access might be impeded by geologic storage operations. It caps recoverable damages and protects CCS operators from liability if prior compensation was received.
- Exemplary Damages Restrictions: Claimants would face additional hurdles to recover punitive damages, requiring proof under both the bill’s conditions and the existing Chapter 41 of the Texas Civil Practice and Remedies Code.
Business and Environmental Implications
Texas has long positioned itself as a leader in CCS development. Industry stakeholders—including utilities, energy producers, and industrial manufacturers—are closely watching the bill’s progression.
If signed into law, H.B. 2790 will take effect on September 1, 2025, applying to all legal claims accruing after that date. The bill must still receive a three-fifths majority vote in both chambers, as stipulated by the Texas Constitution.
While proponents argue the bill offers much-needed legal clarity and risk reduction to stimulate private sector investment in decarbonization technologies, environmental advocates caution that it may reduce accountability for unforeseen impacts of underground CO₂ storage.
