The Climate Report - Winter 2011

U.S. EPA has imposed new requirements on facilities where carbon dioxide is injected and sequestered underground. On December 1, 2010, EPA finalized a rule subjecting carbon sequestration operations to its Greenhouse Gas Reporting Program, which will require such facilities to report basic information on carbon dioxide received for injection and the amount of carbon sequestered at the site; develop and implement a site-specific monitoring, reporting, and verification plan; and conduct annual monitoring activities. The rule does not require covered facilities to report carbon dioxide emissions from the facilities. Affected sources must submit their first annual report to EPA by March 31, 2012.

On December 10, 2010, EPA published final rules establishing requirements to ensure the safety of underground injection of carbon dioxide and to prevent injected gas from contaminating groundwater. The rules, adopted under the Safe Drinking Water Act, require site characterization to ensure injection wells are located in areas where carbon dioxide can be safely sequestered, and establish requirements for well construction (such as including automatic shutoff systems), testing, and monitoring. Additionally, the rules expand financial responsibility requirements designed to ensure that well operators have sufficient funds for emergency or remedial actions, well closure, and post-injection site care. States may apply until September 6, 2011 for primary responsibility to implement the new rules.

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