(1/2/2024)
The Environmental Protection Agency (EPA) has approved Louisiana’s application for regulatory oversight of carbon dioxide injection wells, known as Class VI wells. The Louisiana Department of Natural Resources (LDNR) will be the agency charged with the permitting, compliance, and enforcement of Class VI (carbon sequestration) wells under the Underground Injection Control Program (UIC).
This transfer of authority is expected to reduce the timeline of permitting carbon sequestration projects in the state. Louisiana has the most pending carbon capture projects in the nation. Louisiana is only the third state to be granted such oversight by the EPA; North Dakota was granted primacy in 2013 and Wyoming in 2020.
Louisiana applied for regulatory control (primacy) of Class VI wells in 2021. LWF submitted comments to the EPA regarding state primacy in July 2023 during a public comment period after the EPA signed a proposed rule to approve Louisiana’s request to have primary enforcement responsibility. In our comments to EPA, LWF noted that a state’s UIC program must meet strict safeguards when considering a Class VI well permit application to ensure protection of the public’s drinking water including requiring applicants have:
- Operating requirements to ensure the injection activity will not endanger USDWs (underground sources of drinking water) or human health.
- Financial assurance mechanisms sufficient to cover the cost for all phases of the geologic sequestration project including the post injection site care period and until site closure has been approved by the permitting authority.
- Emergency and remedial response plans.
- Reporting of all testing and monitoring results to the permitting authority to ensure the well is operating in compliance with all permit and regulatory requirements.
The letter further provides LWF’s main concerns about environmental justice, siting, public input and engagement, staffing, application transparency, and evaluating Louisiana’s performance.
LWF is encouraged to see the EPA include specific environmental justice provisions in the Memorandum of Agreement between the EPA and Louisiana. The requirements include:
- An enhanced, inclusive public participation process.
- Consideration of environmental justice impacts on communities in permitting including environmental hazards, exposure pathways, as well as susceptible subpopulations.
- Incorporation of other mitigation measures to ensure Class VI projects do not increase environmental impacts and public health risks in already overburdened communities. Measures designed to protect residential areas could include carbon dioxide monitoring and release notification networks, and installation of enhanced pollution controls.
The Louisiana Legislature approved seven new employees (to be dedicated to well reviews) and over $800,000 in new funding for the Class VI UIC program. While this is encouraging, the state must also be prepared to take on this highly technical industry for the long term and attract and retain the expertise needed to adequately provide rigorous analysis of applications. The state must also commit to ensuring the Office of Conservation is adequately funded to keep pace with evolving technologies, as the technology needed to monitor well activity is expensive.
LDNR has stated that the next steps include EPA and LDNR working to transfer 22 existing Class VI well applications from federal to state oversight. Some changes to state regulations include the prohibition of storage in salt caverns, not allowing permits to be issued for multiple injection wells at once, and monitoring systems that exceed federal standards. While it is encouraging that the state’s rules will be more stringent than the EPA’s, proper enforcement will be critical.
When the state through the Secretary of the Department of Natural Resources, the Governor and the Legislature all cite Class VI wells as the energy future, the commitments of today must be upheld by the government of tomorrow.
Though LWF is supportive of LDNR’s oversight of carbon sequestration wells, we remain vigilant in holding our regulators accountable to ensure the proper monitoring of these wells for the protection of Louisiana’s citizens, wildlife, and habitats.
Resources
LWF comments to EPA regarding state primacy
Governor Edwards’s press release on primacy approval
EPA Underground Injection Control (UIC) website
Federal Guidance on Responsible Development of Carbon Capture, Utilization, and Sequestration
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