EPA is requesting comments on proposed standards for Underground Injection Control (UIC) of carbon dioxide (CO2) at commercial sequestration facilities. When finalized, these standards should provide commercial sequestration project developers with a more consistent and predictable regulatory environment in which to carry out ambitious carbon capture and sequestration projects.

EPA already regulates most underground injection of liquids, gasses, and slurries under existing SDWA regulations, including programs addressing the use of CO2 in enhanced oil recovery activities and pilot CO2 sequestration projects. Because large-scale injection of CO2 for long-term sequestration raises unique technical and safety issues, however, EPA had previously stated that more targeted regulations for commercial projects would be necessary.

The proposed rules establish a new class of UIC permits for sequestration projects and identify specific procedural and substantive requirements for their siting, design, construction, operation, monitoring and long-term closure. The proposal also flags various implementation issues for public comment, including:

• Whether to grandfather UIC wells currently regulated under an existing class of injection well for use in long-term geologic sequestration;
• What types of restrictions should be placed on siting long-term geologic sequestration projects based on unique geological or hydrogeological considerations;
• What types of design, construction, and monitoring requirements may be necessary to ensure long-term integrity and safety of sequestration sites.

EPA will accept comments on the proposed standards for 120 days from the proposal’s publication in the Federal Register. EPA will hold a public hearing on the proposed standards in September 2008 and intends to issue final regulations in late 2010.

The proposal is a positive development for an industry that has widespread support in theory, but that has also faced shifting governmental positions on whether and how to support the development of commercial CCS programs (1, 2, 3).

For further information about this topic, please contact Akin Gump.