Louisiana gets EPA green light to approve, regulate CCS projects

Quantum Commodity Intelligence – The US government has given the state of Louisiana the power to approve and regulate underground carbon dioxide storage wells, paving the way for the state to position itself as a hub for carbon capture and storage (CCS) projects.

The US Environmental Protection Agency (EPA) on Thursday formally granted Louisiana primacy in the permitting and regulation of wells and projects involving the underground sequestration of CO2.

"Finding alternative means of harnessing our traditional fuel sources at the same time we expand our options for alternative fuel sources to the point they are market-ready, available and affordable is probably the great challenge of our generation," said Louisiana Governor John Bel Edwards in a statement.

"While CO2 sequestration is not the only strategy available for carbon management, it is the most mature and market-ready tool available in the near term."

Permitting of such wells and operations, known as Class VI permits, is generally directly regulated by the EPA, though the agency can grant primary regulatory authority to individual states that develop a regulatory framework that matches or exceeds the EPA's Class VI standards.

North Dakota and Wyoming are the only other states which currently have primacy in Class VI permitting.

Under the Safe Drinking Water Act, EPA has developed stringent federal requirements for injecting CO2 that protect public health by ensuring injection wells do not contaminate underground sources of drinking water. 

Louisiana's regulations on CO2 sequestration, formalised in 2021, exceed EPA requirements in several areas, the governor's office said, including:

• Louisiana will not grant waivers to injection depth requirements;
• Louisiana prohibits sequestration of CO2 in salt caverns;
• Louisiana will not issue area permits for multiple wells at once, requiring each individual well to be reviewed and permitted on its own; and
• Louisiana requires additional measures for monitoring systems and operating requirements.

The state's Department of Natural Resources Commissioner of Conservation, Monique M. Edwards, said in the statement her office would be reaching out to EPA Region 6 to discuss the handover of the more than 20 Class VI applications for Louisiana that have already begun the permitting process with the agency.

Louisiana's geology and existing base of industry and pipeline infrastructure position the state to be a major player as a hub for CCS projects, Governor Edwards said.

"We certainly want Louisiana to be able to develop opportunities for economic growth in the emerging market for carbon management," he said.

"But we cannot and will not sacrifice our duty to ensure that operations are conducted in a way that is protective of public safety and the environment."

According to US industry lobby group the Carbon Capture Coalition, more than 190 carbon management (carbon capture, utilization, transport, storage, and CO2 removal) projects have been publicly announced; most of which are intending to store captured CO2 in Class VI wells.

"Today, the Class VI program at EPA has 61 projects with a total of 172 individual Class VI well applications under review, in addition to state primacy applications under consideration," the group said Friday.

"EPA must move to swiftly and rigorously review and make determinations on these projects and primacy applications if these technologies are to fulfill their emissions reduction potential."