U.S. EPA Grants Louisiana Primacy for Class VI Carbon Sequestration Wells

The Environmental Protection Agency on Jan. 5 issued a final rule granting primacy to Louisiana for regulating Class VI wells for geologic carbon sequestration. The rule allows the Louisiana Department of Natural Resources to issue underground injection control, or UIC, permits for geologic carbon sequestration facilities as Class VI wells and ensure compliance under a program within the state except for those located on Indian lands. Louisiana joins North Dakota and Wyoming, which received Class VI primacy in 2018 and 2020, respectively.

The Class VI program is currently administered by the EPA in all other states that have not obtained program delegation. Several states including Arizona, Texas, and West Virginia have applied for Class VI primacy. Last year, Oklahoma enacted legislation initiating the process of obtaining program delegation for underground injection control Class VI carbon sequestration projects in the state. The law calls for a review of the Oklahoma Carbon Capture and Geologic Sequestration Act that was adopted in 2009 and requires a report on recommended changes or statutory adjustments needed to move forward in the delegation process.

EPA’s approval follows a review process outlined in an addendum to the memorandum of agreement between the agency and Louisiana describing the administration, implementation, and enforcement of the program. The approval comes with emphasis on environmental safety, emergency response readiness, and inclusion of environmental justice considerations. As part of its oversight, the EPA will conduct annual performance evaluations to ensure Louisiana’s Class VI program aligns with approved state regulations, the Safe Drinking Water Act, and relevant federal guidelines. Financial expenditures, program progress, and adherence to specified regulations will be assessed, and deficiencies identified will be shared along with recommendations for improvement.

Various stakeholders raised concerns regarding the adequacy of monitoring mechanisms in the state’s Class VI Underground Injection Control regulations. However, after assessment, EPA concluded that Louisiana’s monitoring requirements, if effectively implemented, sufficiently address risks associated with carbon dioxide injection for geologic sequestration. These requirements closely align with EPA standards and provide early warning systems for potential hazards to underground sources of drinking water. The EPA highlighted the importance of considering site-specific operations, local infrastructure, and community needs within these emergency plans.

Commenters raised doubts about Louisiana’s commitment to environmental justice, prompting EPA to emphasize the integration of environmental justice considerations into Class VI programs. Louisiana’s commitments outlined in the addendum align with the EPA’s guidance, ensuring an inclusive public participation process, evaluating environmental justice impacts, enforcing regulatory requirements, and introducing mitigation measures. Furthermore, Louisiana’s commitment includes tailored public engagement strategies, with opportunities disadvantaged communities, facilitating early feedback on permit applications, and fostering community safety planning.

The approval includes the incorporation of Louisiana’s program statutes and regulations into federal guidelines, which will be continuously monitored by the EPA to ensure compliance with memorandum and federal laws. This approval signifies a step forward in aligning state underground injection control regulations with federal standards, emphasizing environmental safety, and promoting inclusivity in decision-making processes.

Various policies, including the 2021 Infrastructure Investment and Jobs Act’s $12 billion funding and tax credit enhancements from the 2022 Inflation Reduction Act, support carbon capture initiatives in the US. Upcoming EPA regulations on fossil fuel-fired power plants stress the significance of carbon capture and sequestration. Meanwhile, the Pipeline and Hazardous Materials Safety Administration is updating pipeline safety standards for carbon dioxide transportation, but safety concerns and eminent domain issues have spurred opposition to new CO2 pipelines, fearing construction may precede adequate safety standards.