EPA Takes Steps Towards Regulating Underground Sequestration of Carbon
On December 3 rd and 4 th, EPA held the first of two currently planned public stakeholder workshops aimed at developing new regulations for the management of underground injection of carbon dioxide. The workshops are intended to provide an opportunity for dialogue with the general public on the issues associated with geologic sequestration of carbon as a method for addressing greenhouse gas emissions.
Geologic sequestration refers to the process of capturing carbon dioxide from an emission source and injecting it into deep subsurface rock formations capable of retaining the gases on a long term basis. EPA has suggested that, because such geologic formations are “large and widespread,” geologic sequestration may be an effective way of reducing greenhouse gas emissions to the atmosphere.
EPA believes that the sequestration projects should be regulated under the Safe Drinking Water Act (“SDWA”), based on the argument that sequestration of carbon qualifies as “underground injection” under the Act. EPA has already issued a guidance memorandum designed to assist state and regional regulatory authorities in evaluating permit applications for sequestration projects. According to the guidance, carbon sequestration wells should be permitted as Class V “experimental technology wells,” even though wells that inject carbon dioxide for the purpose of oil or natural gas recovery operations qualify as Class II wells.
The guidance recognizes that, until further regulatory efforts are completed, permitting decisions must be made on a case-by-case basis. The workshop earlier this week is another step in the process of developing such additional regulations, which EPA plans to propose during the summer of 2008. According to EPA, new SDWA regulations will help ensure consistency in the permitting of commercial-scale geologic sequestration projects. On the other hand, many industry representatives have argued that regulating sequestration projects under the SDWA may not be a good fit, given that the program was originally designed solely for the protection of underground sources of drinking water, and therefore may not address the property rights issues and all of the potential liabilities that may arise.
EPA plans to hold the next stakeholder workshop on carbon sequestration in early 2008.