Mandatory Reporting of Greenhouse Gases: Injection and Geologic Sequestration of Carbon Dioxide, 75060-75089 [2010-29934]

Agencies

• ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 75, Number 230 (Wednesday, December 1, 2010)]
[Rules and Regulations]
[Pages 75060-75089]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-29934]



[[Page 75059]]

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Part V





Environmental Protection Agency





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40 CFR Parts 72, 78, and 98



Mandatory Reporting of Greenhouse Gases: Injection and Geologic 
Sequestration of Carbon Dioxide; Final Rule

Federal Register / Vol. 75 , No. 230 / Wednesday, December 1, 2010 / 
Rules and Regulations

[[Page 75060]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 72, 78, and 98

[EPA-HQ-OAR-2009-0926; FRL-9232-6]
RIN 2060-AP88


Mandatory Reporting of Greenhouse Gases: Injection and Geologic 
Sequestration of Carbon Dioxide

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is promulgating a regulation to require greenhouse gas 
monitoring and reporting from facilities that conduct geologic 
sequestration of carbon dioxide and all other facilities that conduct 
injection of carbon dioxide. This rule does not require control of 
greenhouse gases, rather it requires only monitoring and reporting of 
greenhouse gases.

DATES: The final rule is effective on December 31, 2010.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-HQ-OAR-2009-0926. All documents in the docket are listed on the 
https://www.regulations.gov Web site. Although listed in the index, some 
information is not publicly available, e.g., confidential business 
information (CBI) or other information whose disclosure is restricted 
by statute. Certain other material, such as copyrighted material, is 
not placed on the Internet and will be publicly available only in hard 
copy form. Publicly available docket materials are available either 
electronically through https://www.regulations.gov or in hard copy at 
EPA's Docket Center, Public Reading Room, EPA West Building, Room 3334, 
1301 Constitution Avenue, NW., Washington, DC 20004. This Docket 
Facility is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, 
excluding legal holidays. The telephone number for the Public Reading 
Room is (202) 566-1744, and the telephone number for the Air Docket is 
(202) 566-1742.

FOR FURTHER INFORMATION CONTACT: For technical information and 
implementation materials, please go to the website https://www.epa.gov/climatechange/emissions/ghgrulemaking.html. To submit a question, 
select Rule Help Center, and then select Contact Us. You may also 
contact Mark de Figueiredo, Climate Change Division, Office of 
Atmospheric Programs (MC-6207J), Environmental Protection Agency, 1200 
Pennsylvania Ave., NW., Washington, DC 20460; telephone number: (202) 
343-9928; fax number: (202) 343-2202.

SUPPLEMENTARY INFORMATION: Regulated Entities. The Administrator has 
determined that this action is subject to the provisions of Clean Air 
Act (CAA) section 307(d). See CAA section 307(d)(1)(V) (the provisions 
of CAA section 307(d) apply to ``such other actions as the 
Administrator may determine''). These regulations will affect owners or 
operators of carbon dioxide (CO2) injection wells. Regulated 
categories and entities include those listed in Table 1 of this 
preamble:

                               Table 1--Examples of Affected Entities by Category
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                Category                                  NAICS                  Examples of affected facilities
----------------------------------------------------------------------------------------------------------------
CO2 Enhanced Oil and Gas Recovery         211..................................  Oil and gas extraction projects
 Projects.                                                                        using CO2 enhanced oil and gas
                                                                                  recovery.
Acid Gas Injection Projects.............  211111 or 211112.....................  Projects that inject acid gas
                                                                                  containing CO2 underground.
Geologic Sequestration Projects.........  N/A..................................  CO2 geologic sequestration
                                                                                  projects.
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    Table 1 of this preamble is not intended to be exhaustive but 
rather provides a guide for readers regarding facilities likely to be 
affected by this action. Table 1 of this preamble lists the types of 
facilities that EPA is now aware could be potentially affected by the 
reporting requirements. Other types of facilities not listed in the 
table could also be subject to reporting requirements. To determine 
whether you are affected by this action, you should carefully examine 
the applicability criteria found in 40 CFR part 98, subpart A and the 
relevant criteria in the sections related to the injection and geologic 
sequestration (GS) of CO2 (i.e., subparts RR and UU). If you 
have questions regarding the applicability of this action to a 
particular facility, consult the website person listed in the preceding 
FOR FURTHER INFORMATION CONTACT section.
    Some facilities that are affected by this final rule are required 
to report under multiple source categories. Table 2 of this preamble 
has been developed as a guide to help potential CO2 
injection and GS reporters subject to the final rule identify the 
source categories (by subpart) that they may need to (1) consider in 
their facility applicability determination, and/or (2) include in their 
reporting. The table should only be seen as a guide. Additional 
subparts in 40 CFR part 98 may be relevant for a given reporter. 
Similarly, not all listed subparts are relevant for all reporters.

            Table 2--Source Categories and Relevant Subparts
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  Source category (and main    Other subparts recommended for  review to
     applicable subpart)                determine applicability
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Geologic Sequestration of      40 CFR part 98, subpart C.
 Carbon Dioxide (40 CFR part   40 CFR part 98, subpart W.
 98, subpart RR).              40 CFR part 98, subpart PP.
Injection of Carbon Dioxide    40 CFR part 98, subpart C.
 (40 CFR part 98, subpart UU). 40 CFR part 98, subpart W.
                               40 CFR part 98, subpart PP.
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    What is the effective date? The final rule is effective on December 
31, 2010. Section 553(d) of the Administrative Procedure Act (APA), 5 
U.S.C. chapter 5, generally provides that rules may not take effect 
earlier than 30 days after they are published in the Federal Register. 
EPA is issuing this final rule under section 307(d)(1) of the Clean Air 
Act,

[[Page 75061]]

which states: ``The provisions of section 553 through 557 * * * of 
Title 5 shall not, except as expressly provided in this section, apply 
to actions to which this subsection applies.'' Thus, section 553(d) of 
the APA does not apply to this rule. EPA is nevertheless acting 
consistently with the purposes underlying APA section 553(d) in making 
this rule effective on December 31, 2010. Section 5 U.S.C. 553(d)(3) 
allows an effective date less than 30 days after publication ``as 
otherwise provided by the agency for good cause found and published 
with the rule.'' As explained below, EPA finds that there is good cause 
for this rule to become effective on or before December 31, 2010, even 
if this results in an effective date fewer than 30 days from date of 
publication in the Federal Register.
    While this action is being signed prior to December 1, 2010, there 
is likely to be a significant delay in the publication of this rule as 
it contains equations and charts, and is relatively long in length. As 
an example, EPA signed a shorter technical amendments package related 
to the same underlying reporting rule on October 7, 2010, and it was 
not published until October 28, 2010, 75 FR 66434, three weeks later.
    The purpose of the 30-day waiting period prescribed in 5 U.S.C. 
553(d) is to give affected parties a reasonable time to adjust their 
behavior and prepare before the final rule takes effect. Where, as 
here, the final rule will be signed and made available on the EPA Web 
site more than 30 days before the effective date, but where the 
publication is likely to be delayed due to the complexity and length of 
the rule, that purpose is still met. Moreover, EPA determined that 
facilities that are subject to this rule already collect data on 
CO2 that is received. Facilities may use best available 
monitoring methods for calculating the mass of CO2 received 
through the first quarter of 2011. Facilities subject to subpart RR 
that were issued a final Underground Injection Control (UIC) permit 
authorizing the injection of CO2 into the subsurface on or 
before December 31, 2010 are required to submit a proposed monitoring, 
reporting, and verification (MRV) plan to EPA by June 30, 2011 and are 
allowed to request one extension of up to an additional 180 days in 
which to submit their proposed MRV plan. This will provide facilities a 
substantial additional period to adjust their behavior to the 
requirements of the final rule. Accordingly, we find good cause exists 
to make this rule effective on or before December 31, 2010, consistent 
with the purposes of 5 U.S.C. 553(d)(3).\1\
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    \1\ We recognize that this rule could be published at least 30 
days before December 31, 2010, which would negate the need for this 
good cause finding, and we plan to request expedited publication of 
this rule in order to decrease the likelihood of a printing delay. 
However, as we cannot know the date of publication in advance of 
signing this rule, we are proceeding with this good cause finding 
for an effective date on or before December 31, 2010.
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    Judicial Review.
    Under CAA section 307(b)(1), judicial review of this final rule is 
available only by filing a petition for review in the U.S. Court of 
Appeals for the District of Columbia Circuit by January 31, 2011. Under 
CAA section 307(d)(7)(B), only an objection to this final rule that was 
raised with reasonable specificity during the period for public comment 
can be raised during judicial review. This section also provides a 
mechanism for EPA to convene a proceeding for reconsideration, ``[i]f 
the person raising an objection can demonstrate to EPA that it was 
impracticable to raise such objection within [the period for public 
comment] or if the grounds for such objection arose after the period 
for public comment (but within the time specified for judicial review) 
and if such objection is of central relevance to the outcome of this 
rule.'' Any person seeking to make such a demonstration to EPA should 
submit a Petition for Reconsideration to the Office of the 
Administrator, Environmental Protection Agency, Room 3000, Ariel Rios 
Building, 1200 Pennsylvania Ave., NW., Washington, DC 20004, with a 
copy to the person listed in the preceding FOR FURTHER INFORMATION 
CONTACT section, and the Associate General Counsel for the Air and 
Radiation Law Office, Office of General Counsel (Mail Code 2344A), 
Environmental Protection Agency, 1200 Pennsylvania Ave., NW., 
Washington, DC 20004. Note, under CAA section 307(b)(2), the 
requirements established by this final rule may not be challenged 
separately in any civil or criminal proceedings brought by EPA to 
enforce these requirements.
    Acronyms and Abbreviations. The following acronyms and 
abbreviations are used in this document.

3-D three-dimensional
AGA American Gas Association
AMA active monitoring area
ANSI American National Standards Institute
API American Petroleum Institute
ASME American Society of Mechanical Engineers
CAA Clean Air Act
CBI confidential business information
CCS carbon dioxide capture and geologic sequestration
CFR Code of Federal Regulations
CO2 carbon dioxide
DOE Department of Energy
EAB Environmental Appeals Board
EIA Economic Impact Analysis
EPA Environmental Protection Agency
EO Executive Order
ER enhanced oil and gas recovery
GHG greenhouse gas
GS geologic sequestration
ICR Information Collection Request
IRS Internal Revenue Service
MMA maximum monitoring area
MRV monitoring, reporting, and verification
NAESB North American Energy Standards Board
NAICS North American Industry Classification System
NTTAA National Technology Transfer and Advancement Act
OAR Office of Air and Radiation
OMB Office of Management and Budget
OW Office of Water
QA/QC quality assurance/quality control
R&D research and development
RFA Regulatory Flexibility Act
SBREFA Small Business Regulatory Enforcement Fairness Act
SDWA Safe Drinking Water Act
TSD technical support document
UIC Underground Injection Control
US United States
UMRA Unfunded Mandates Reform Act of 1995
USDW underground source of drinking water
VEF Vulnerability Evaluation Framework

Table of Contents

I. Background
    A. Organization of this Preamble
    B. Background on the Final Rule
    C. Legal Authority
    D. Relationship to Underground Injection Control Regulations 
under the Safe Drinking Water Act
    E. Relationship to the Interagency Task Force on Carbon Capture 
and Storage and Other Federal Geologic Sequestration Initiatives
    F. Relationship to Other Geologic Sequestration Information 
Collection and Reporting Efforts
II. Summary of Final Rule
    A. Summary of Changes to the General Provisions of the 
Greenhouse Gas Reporting Program
    B. Summary of the Reporting Requirements for Geologic 
Sequestration of Carbon Dioxide (Subpart RR)
    C. Summary of the Reporting Requirements for Injection of Carbon 
Dioxide (Subpart UU)
    D. Summary of the Major Changes Since Proposal
    E. Summary of Comments and Responses
III. Economic Impacts of the Final Rule
    A. How were compliance costs estimated?
    B. What are the costs of the rule?
    C. What are the economic impacts of the rule?
    D. What are the impacts of the rule on small businesses?
    E. What are the benefits of the rule for society?

[[Page 75062]]

IV. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination with 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children from 
Environmental Health Risks and Safety Risks
    H. Executive Order 13211: Actions that Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act
    J. Executive Order 12898: Federal Actions to Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    K. Congressional Review Act

I. Background

A. Organization of This Preamble

    This preamble is divided into four sections, as detailed in the 
Table of Contents. This section describes the layout of the preamble 
and provides a brief summary of each section.
    The first section of this preamble contains the basic background 
information about the origin of this rule, including a discussion of 
how it relates to the finalized requirements for suppliers of 
CO2 under 40 CFR part 98, subpart PP. It also contains 
information on EPA's legal authority and how this rule relates to the 
UIC program, the Interagency Task Force on Carbon Capture and Storage 
and other Federal GS initiatives, as well as other GS information 
collection and reporting efforts.
    The second section of this preamble provides an overview of the GHG 
Reporting Program and summarizes changes to the general provisions of 
the GHG Reporting Program. It also provides a summary of this final 
rule on key design elements such as: Source category definition, 
reporting threshold, GHGs to report, GHG calculations and monitoring, 
data reporting, and recordkeeping requirements. In addition, it 
describes the major changes made since the proposal and provides a 
brief summary of public comments and EPA's responses thereto.
    The third section of this preamble provides the summary of the cost 
impacts, economic impacts, and benefits of this rule and discusses 
comments on the regulatory impacts analysis.
    Finally, the last section of this preamble discusses the various 
statutory and executive order requirements applicable to this final 
rulemaking.

B. Background on the Final Rule

    This action finalizes monitoring and reporting requirements for 
injection and geologic sequestration of carbon dioxide.
    On April 12, 2010, EPA proposed this rule amending 40 CFR part 98. 
40 CFR part 98 provides the regulatory framework for the GHG Reporting 
Program. The GHG Reporting Program requires reporting of GHG emissions 
and other relevant information from certain source categories in the 
United States. The GHG Reporting Program, which became effective on 
December 29, 2009, includes reporting requirements for facilities and 
suppliers in 34 subparts. For more detailed background information on 
the GHG Reporting Program, see the preamble to the final part 98 rule 
establishing that program (74 FR 56260, October 30, 2009) and the 
preamble to the Part 98 rule expanding that program from 30 to 34 
subparts (75 FR 39736, July 12, 2010).
    Subpart PP of the GHG Reporting Program requires the reporting of 
CO2 supplied to the economy. During the public comment 
period on the part 98 rule establishing that requirement, EPA received 
comments that CO2 geologically sequestered should be 
considered in the GHG Reporting Program. (For further information on 
relevant comments received in 40 CFR part 98, subpart PP, see 
``Mandatory Greenhouse Gas Reporting Rule: EPA's Response to Public 
Comments, Subpart PP: Suppliers of Carbon Dioxide'' in Docket EPA-HQ-
OAR-2008-0508.) In the final rule promulgating 40 CFR part 98, subpart 
PP, EPA committed to taking action to collect such data in the near 
future.
    This final rule amends 40 CFR part 98 to add reporting requirements 
covering facilities that conduct geologic sequestration of 
CO2 (40 CFR part 98, subpart RR) and all other facilities 
that conduct injection of CO2 (40 CFR part 98, subpart 
UU).\2\ GS is the long-term containment of a CO2 stream in 
subsurface geologic formations. This data will, among other things, 
inform Agency decisions under the CAA related to the use of carbon 
dioxide capture and geologic sequestration (CCS) for mitigating GHG 
emissions.
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    \2\ EPA has moved all definitions, requirements, and procedures 
for facilities conducting CO2 injection only (which both 
EPA and commenters have referred to as ``Tier 1'' facilities for 
simplicity) into a new subpart, 40 CFR part 98, subpart UU, and 
retained all definitions, requirements, and procedures related to 
facilities conducting GS (which both EPA and commenters have 
referred to as ``Tier 2'' facilities for simplicity) in 40 CFR part 
98, subpart RR.
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    Subpart RR information will enable EPA to monitor the growth and 
efficacy of GS (and therefore CCS) as a GHG mitigation technology over 
time and to evaluate relevant policy options. Furthermore, where 
enhanced oil and gas recovery (ER) projects are reporting under 40 CFR 
part 98, subpart RR, EPA will be able to evaluate ER as a non-emissive 
end use. Under 40 CFR part 98, subpart UU, EPA will be able to 
reconcile information obtained from this rule with data obtained from 
40 CFR part 98, subpart PP on CO2 supplied to the economy.
    This rule was proposed by EPA on April 12, 2010. One public hearing 
was held on April 19, 2010, and the 60-day public comment period ended 
June 11, 2010. This final rule takes into consideration comments 
received during the comment period and finalizes the monitoring and 
reporting requirements for facilities conducting GS and all other 
facilities conducting CO2 injection.
    This final rule does not address whether data reported under 40 CFR 
part 98, subparts RR or UU will be released to the public or will be 
treated as CBI. EPA published a proposed rule on confidentiality 
determination on July 7, 2010 (75 FR 39094) that addressed this issue. 
In that action, EPA proposed which specific data elements may be 
released to the public and which would be treated as CBI. EPA received 
several comments on that proposal, and is in the process of considering 
these comments.

C. Legal Authority

    EPA is promulgating this rule under its existing CAA authority; 
specifically, authorities provided in CAA section 114. As discussed in 
detail in Sections I.C and II.Q of the preamble to the final part 98 
rule establishing the GHG Reporting Program (74 FR 56260, October 30, 
2009), CAA section 114 provides EPA with the authority to require the 
information mandated by this rule because such data will inform and are 
relevant to EPA's implementation of a wide variety of CAA provisions. 
Under CAA section 114(a)(1), the Administrator may require emissions 
sources, persons subject to the CAA, manufacturers of emission control 
or process equipment, or persons whom the Administrator believes may 
have necessary information to monitor and report emissions and provide 
such other information as the Administrator requests for the purposes 
of carrying out any provision of the CAA (except for a

[[Page 75063]]

provision of title II with respect to motor vehicles). EPA may gather 
information for a variety of purposes, including for the purpose of 
assisting in the development of implementation plans or of emissions 
standards under CAA section 111, determining compliance with 
implementation plans or such standards, or more broadly for ``carrying 
out any provision'' of the CAA.

D. Relationship to Underground Injection Control Regulations Under the 
Safe Drinking Water Act

    The Agency maintains a high-level of coordination across EPA 
offices and regions on GS activities and regulatory development. EPA's 
Office of Air and Radiation (OAR) and Office of Water (OW) work closely 
to promote safe and effective implementation of GS technologies while 
ensuring protection of human health and the environment. OAR and OW 
have closely coordinated this rulemaking under CAA authority and the 
rulemaking under Safe Drinking Water Act (SDWA) authority establishing 
Federal requirements under the UIC program for Class VI wells 
(hereafter referred to as the UIC Class VI rule).
    EPA's UIC program was established in the 1970s to prevent 
endangerment of underground sources of drinking water (USDWs) from 
injection of various fluids, including CO2 for ER, oil field 
fluids, water stored for drinking water supplies, and municipal and 
industrial waste. The UIC program, which is authorized by Part C of 
SDWA (42 U.S.C. 300h et seq.), is designed to prevent the movement of 
such fluid into USDWs by addressing the potential pathways through 
which injected fluids can migrate and potentially endanger USDWs. In 
2008, EPA proposed to amend the UIC program to establish a new class of 
injection well--Class VI--to cover the underground injection of 
CO2 for the purpose of GS, or long-term storage of 
CO2 (73 FR 43492, July 25, 2008). For a summary of the UIC 
program and more details on the final UIC Class VI rule, please see the 
UIC Geologic Sequestration of Carbon Dioxide Web site.\3\
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    \3\ https://water.epa.gov/type/groundwater/uic/wells_sequestration.cfm.
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    EPA designed the reporting requirements under 40 CFR part 98, 
subpart RR with careful consideration of UIC requirements, including 
Class VI, to minimize overlap between the two programs. There are two 
areas of potential overlap (see Table 3 of this preamble). The first 
overlap is the requirement that owners or operators report the quantity 
of CO2 injected. The UIC Class VI rule requires owners or 
operators to continuously monitor the amount of CO2 injected 
and submit semi-annual reports on the monthly amount injected. The UIC 
program requires information on the amount injected to ensure 
appropriate CO2 injection operations. Subpart RR requires 
facilities to collect data on the amount injected over a quarter and 
submit annual reports on the annual amount of CO2 injected. 
Data on the amount of CO2 injected is a component of the 40 
CFR part 98, subpart RR mass balance approach \4\ used to quantify the 
amount of CO2 sequestered. EPA determined that quarterly 
data collection and annual reporting under 40 CFR part 98, subpart RR 
was necessary in order to harmonize data with other subparts of the GHG 
Reporting Program. Facilities reporting under 40 CFR part 98, subpart 
RR may use flow meters used to comply with the flow monitoring and 
reporting provisions in their UIC permit.
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    \4\ The subpart RR mass balance equation for quantifying the 
amount of CO2 that is geologically sequestered includes 
variables on injected CO2; equipment leaks and vented 
CO2 emissions from surface equipment between the flow 
meters and the wellhead; CO2 produced and/or remaining 
with produced oil, gas or other fluids; and CO2 leakage 
to the surface. For more information, see Section II.B of this 
preamble.
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    The second overlap is a monitoring plan for detecting air 
emissions. While requirements under the UIC program are focused on 
demonstrating that USDWs are not endangered as a result of 
CO2 injection into the subsurface, requirements under the 
GHG Reporting Program through 40 CFR part 98, subpart RR will enable 
EPA to verify the quantity of CO2 that is geologically 
sequestered and to assess the efficacy of GS as a mitigation strategy. 
Subpart RR achieves this by requiring facilities conducting GS to 
develop and implement a MRV plan \5\ to detect and quantify leakage of 
injected CO2 to the surface in the event leakage occurs and 
to report the amount of CO2 geologically sequestered using a 
mass balance approach, regardless of the class of UIC permit that a 
facility holds.
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    \5\ The subpart RR MRV plan includes delineation of monitoring 
areas, identification and assessment of potential surface leakage 
pathways, a strategy for detecting and quantifying surface leakage 
of CO2 if leakage occurs, an approach for establishing 
the expected baselines, and a summary of considerations for 
calculating site-specific variables for the mass balance equation, 
such as calculating CO2 in produced fluids. For more 
information, see Section II.B of this preamble.
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    The monitoring required by 40 CFR part 98, subpart RR for 
quantification purposes is complementary to and builds on UIC permit 
requirements. In particular, the UIC Class VI permit requires a 
comprehensive site characterization that includes an assessment of the 
geologic, hydrogeologic, geochemical, and geomechanical properties of 
the proposed GS site to ensure that GS wells are located in suitable 
formations. The UIC Class VI permit also requires computational 
modeling of the Area of Review, and a periodic re-evaluation of this 
Area of Review based on robust modeling and monitoring of the 
CO2 stream, injection pressures, integrity of the injection 
well, groundwater quality and geochemistry, and the position of the 
CO2 plume and pressure front throughout injection. These 
requirements can provide the basis for the MRV plan submitted to EPA 
for 40 CFR part 98, subpart RR. Therefore, EPA will accept a UIC Class 
VI permit to satisfy certain MRV plan requirements; however, the 
reporter must include additional information to outline how monitoring 
will achieve detection and quantification of CO2 in the 
event surface leakage occurs.
    The UIC Class VI rule also allows for surface air and soil gas 
monitoring at the discretion of the UIC Director as a means of 
identifying CO2 leaks that may pose a risk to USDWs and 
informing emergency notification of a Class VI owner or operator and 
UIC Director in the event of a USDW endangerment. If the UIC Director 
determines that it is appropriate to require surface air or soil gas 
monitoring for USDW protection, the UIC Director must approve the use 
of monitoring employed under 40 CFR part 98, subpart RR so long as the 
owner or operator is able to demonstrate USDW protection pursuant to 
requirements at 40 CFR 146.90(h)(3).

 Table 3--Comparison of Reporting Requirements Under Subpart RR With UIC
                          Class VI Regulations
------------------------------------------------------------------------
    Reporting requirement          Subpart RR           UIC Class VI
------------------------------------------------------------------------
Quantity of CO2 received....  Yes.................  N/A.
Quantity of CO2 injected....  Yes.................  Yes.
Equipment leaks and vented    Yes.................  N/A.
 emissions from surface
 equipment between flow
 meters and the wellhead.

[[Page 75064]]

 
Quantity of CO2 produced      Yes.................  N/A.
 with oil or natural gas
 (ER) or other fluids.
Percentage of CO2 estimated   Yes.................  N/A.
 to remain with oil (ER) or
 other fluids.
Quantity of CO2 emitted from  Yes.................  N/A.
 the subsurface.
Quantity of CO2 sequestered   Yes.................  N/A.
 in the subsurface.
Cumulative mass of CO2        Yes.................  N/A.
 sequestered in the
 subsurface.
Monitoring plan for           Yes.................  Yes.\1\
 detecting air emissions.
Monitoring plan for           Yes.................  N/A.
 quantifying air emissions.
------------------------------------------------------------------------
\1\ UIC Class VI rule allows for surface air/soil gas monitoring for
  USDW protection at the discretion of the UIC Director.

    EPA has determined that the requirements of these two rules 
complement one another by concurrently ensuring USDW protection, as 
required under SDWA, and requiring reporting of CO2 surface 
emissions under 40 CFR part 98, subpart RR. EPA is committed to working 
closely within the agency to coordinate implementation of the UIC and 
GHG Reporting programs, reduce burden on reporters, provide timely 
access to verified emissions data, establish mechanisms to efficiently 
share data, and harmonize data systems to the extent possible.

E. Relationship to the Interagency Task Force on Carbon Capture and 
Storage and Other Federal Geologic Sequestration Initiatives

    On February 3, 2010, President Obama established an Interagency 
Task Force on Carbon Capture and Storage (CCS Task Force). The CCS Task 
Force, co-chaired by EPA and the Department of Energy (DOE), developed 
a plan to overcome the barriers to the widespread, cost-effective 
deployment of CCS within ten years, with a goal of bringing five to ten 
commercial demonstration projects online by 2016. The CCS Task Force's 
plan was delivered to President Obama in August 2010.
    The CCS Task Force explored incentives for commercial CCS adoption 
and addressed financial, economic, technological, legal, institutional, 
social, or other barriers to deployment. For example, the CCS Task 
Force examined Federal regulatory activities that address the safety, 
efficacy, and environmental soundness of GS. The CCS Task Force also 
considered how best to coordinate existing administrative authorities 
and programs, including those involving international collaboration, as 
well as identified areas where additional administrative authority may 
be necessary. The CCS Task Force recommended that EPA finalize this 
rule. For more information, please see EPA's CCS Task Force Web 
site.\6\
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    \6\ https://www.epa.gov/climatechange/policy/ccs_task_force.html.
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F. Relationship to Other Geologic Sequestration Information Collection 
and Reporting Efforts

    EPA reviewed and took into account several existing domestic and 
international reporting and monitoring programs in designing this rule. 
For additional information, please see Section I.F of the notice of 
proposed rulemaking (75 FR 18581, April 12, 2010).
    Also as discussed in the notice of proposed rulemaking, EPA notes 
that the Internal Revenue Service (IRS) published IRS Notice 2009-83 
\7\ to provide guidance regarding eligibility for the Internal Revenue 
Code section 45Q credit for CO2 sequestration, computation 
of the section 45Q tax credit, reporting requirements for taxpayers 
claiming the section 45Q tax credit, and rules regarding adequate 
security measures for secure GS. As clarified in the IRS guidance, 
taxpayers claiming the section 45Q tax credit must follow the 
appropriate UIC requirements. The guidance also clarifies that 
taxpayers claiming section 45Q tax credit must follow the MRV 
procedures that are being finalized under 40 CFR part 98, subpart RR in 
this final rule.
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    \7\ Available at: https://www.irs.gov/irb/2009-44_IRB/ar11.html#d0e1860.
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II. Summary of Final Rule

A. Summary of Changes to the General Provisions of the Greenhouse Gas 
Reporting Program

    This action amends certain requirements in 40 CFR part 98, subpart 
A (General Provisions).
    Changes to Applicability. In this action, EPA is amending Table A-3 
in 40 CFR 98.2(a)(1) to include the geologic sequestration of 
CO2 and injection of CO2 source categories.

B. Summary of the Reporting Requirements for Geologic Sequestration of 
Carbon Dioxide (Subpart RR)

    Reporting requirements for facilities conducting GS are found in 40 
CFR part 98, subpart RR. These facilities are required to report the 
amount of CO2 received, develop and implement an EPA-
approved MRV plan, and report the amount of CO2 sequestered 
using a mass balance approach, by subtracting total CO2 
emissions from CO2 injected in the reporting year. Other 
facilities injecting CO2 underground report under 40 CFR 
part 98, subpart UU.
1. Subpart RR Source Category Definition
    The 40 CFR part 98, subpart RR source category consists of any well 
or group of wells that inject a CO2 stream for long-term 
containment into a subsurface geologic formation.\8\ All wells 
permitted as Class VI by the UIC program meet the definition of this 
source category. Facilities conducting ER are not subject to 40 CFR 
part 98, subpart RR unless they choose to opt-in to the requirements of 
this subpart or hold a UIC Class VI permit.
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    \8\ Note that R&D projects that are exempted from subpart RR 
report under Subpart UU--see discussion below.
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    Research and development (R&D) projects are exempt from reporting 
requirements under 40 CFR part 98, subpart RR provided they meet the 
eligibility requirements. A project is eligible for the exemption if it 
investigates or will investigate practices, monitoring techniques, or 
injection verification, or if it is engaged in other applied research 
that focuses on enabling safe and effective long-term containment of a 
CO2 stream in subsurface geologic formations, including 
research and injection tests conducted as a precursor to a larger more 
permanent long-term storage operation. Small and large-scale projects 
meeting the criteria for an exemption, such as the current Regional 
Carbon

[[Page 75065]]

Sequestration Partnership projects supported by the Office of Fossil 
Energy at the DOE, would be considered R&D for the purposes of this 
exemption from reporting for the duration of the R&D activity. Other 
DOE supported GS R&D projects may also satisfy the eligibility 
requirements for the exemption. In addition, short duration 
CO2 injection projects conducted to identify local 
amenability to long term storage will be exempted from 40 CFR part 98, 
subpart RR for the duration of such injection testing. This includes 
cases where an operator is using a short duration CO2 
injection test to assess local geologic conditions and validate the 
injectivity potential of a particular site prior to developing that 
site for commercial scale geologic storage of carbon dioxide. 
Demonstration projects can apply for the exemption, but will be 
measured against the same criteria established in 40 CFR 98.440(d). 
Projects that are not R&D projects, such as commercial GS operations, 
are not eligible for the exemption.
    To receive an R&D exemption, the project representative must submit 
to the Administrator information on the planned duration of 
CO2 injection for research, the planned annual 
CO2 injection volumes during this time period, the purposes 
of the project, the source and type of funding for the project, and the 
class and duration of UIC permit, or, for an offshore facility not 
subject to SDWA, a description of the legal instrument authorizing GS.
    The Administrator will determine if a project meets the definition 
of research and development project within 60 days of receipt of the 
submission of a request for exemption. In making this determination, 
the Administrator will take into account any information that the 
reporter submits demonstrating that the planned duration of 
CO2 injection for the project and the planned annual 
CO2 injection volumes during the duration of the project are 
consistent with the purpose of the research and development project. 
This rule allows for administrative appeals of the Administrator's R&D 
determination, as provided for in 40 CFR part 78.
    Facilities that qualify for a GS R&D exemption from 40 CFR part 98, 
subpart RR are not exempted from any other source category of the GHG 
Reporting Program including 40 CFR part 98, subpart UU. For other 
source categories of the GHG Reporting Program, R&D is defined at 40 
CFR 98.6.
2. Subpart RR Reporting Threshold
    All facilities that meet the 40 CFR part 98, subpart RR source 
category definition must report (i.e., there is no reporting 
threshold). However, reporters that receive a subpart RR R&D exemption 
are no longer subject to subpart RR, but rather report CO2 
received under subpart UU. The cease reporting provisions of Sec.  
98.2(i) do not apply to subpart RR. Rather, once a facility is subject 
to the requirements of this subpart, including facilities that opt-in 
to 40 CFR part 98, subpart RR, the owner or operator must continue for 
each year thereafter to comply with all requirements of this subpart, 
including the requirement to submit annual reports, until the 
Administrator has issued a final decision on an owner or operator's 
request to discontinue reporting. The request to discontinue reporting 
must include either a copy of the applicable UIC program Director's 
authorization of site closure, or a demonstration that the injected 
CO2 stream is not expected to migrate in a manner likely to 
result in surface leakage. Before the reporter can discontinue 
reporting, but after injection has ceased, EPA expects that in most 
cases there will be minimal burden in monitoring and reporting unless a 
surface leak is detected.
3. Subpart RR GHGs to Report
    Facilities covered by this source category must report the mass of 
CO2 received; the mass of CO2 injected; the mass 
of CO2 produced (i.e., mixed with produced oil, gas, or 
other fluids); the mass of CO2 emitted from surface leakage; 
the mass of CO2 equipment leaks and vented CO2 
emissions from sources between the injection flow meter and the 
injection wellhead or between the production flow meter and the 
production wellhead; and the mass of CO2 sequestered in 
subsurface geologic formations (this is calculated from the other 
quantities).
4. Subpart RR GHG Calculations and Monitoring
    Facilities covered by this source category must calculate the 
annual mass of CO2 received. Starting from the date 
specified in the EPA-approved MRV plan, facilities must also use a mass 
balance approach to calculate the mass of CO2 geologically 
sequestered. First, facilities must calculate the annual mass of 
CO2 injected. From the annual mass of CO2 
injected, facilities must subtract the mass of CO2 emitted 
from surface leakage, using the site-specific procedures in their MRV 
plan, and the mass of CO2 emitted as equipment leaks or 
vented emissions from applicable surface equipment, using the 
procedures specified in 40 CFR part 98, subpart W of the GHG Reporting 
Program. All GS projects with equipment leak or vented emissions from 
surface equipment applicable to the GS mass balance equation should use 
the procedures specified in subpart W, regardless of whether such 
projects are associated with the oil and gas industry. Facilities that 
are producing, oil, gas, or other fluids must additionally subtract the 
mass of CO2 produced. Calculation procedures are provided at 
40 CFR 98.443.
5. Subpart RR Geologic Sequestration Monitoring, Reporting, and 
Verification (MRV) Plans
    Facilities must develop an MRV plan, submit the MRV plan to EPA, 
receive an approved MRV plan from EPA, implement the EPA-approved plan, 
and submit annual reports.
    The MRV plan must include five major components:
    X Delineation of the maximum monitoring area (MMA) and the active 
monitoring area (AMA).
    X Identification and evaluation of the potential surface leakage 
pathways and an assessment of the likelihood, magnitude, and timing, of 
surface leakage of CO2 through these pathways in the MMA.
    X A strategy for detecting and quantifying any surface leakage of 
CO2 in the event leakage occurs.
    X An approach for establishing the expected baselines for 
monitoring CO2 surface leakage.
    X A summary of considerations made to calculate site-specific 
variables for the mass balance equation.
    First, the MRV plan must include a delineation of the MMA and the 
AMA. The MMA includes the extent of the free phase CO2 plume 
over the lifetime of the project plus a buffer zone of one-half mile. 
Potential surface leakage pathways must be identified and assessed in 
the MMA. The AMA is the area that will be monitored over a specified 
time interval chosen by the reporter, which must be greater than one 
year. All of the area in the MMA will eventually be covered by one or 
more AMAs. The first time interval will begin from the date determined 
in your MRV plan through the date at which the MRV plan calls for the 
first expansion of the AMA. For each subsequent time interval, a new 
AMA must be determined. This allows operators to phase in monitoring so 
that during any given time interval, only that part of the MMA in which 
leakage might occur needs to be monitored. The boundary of the AMA in 
each time interval is established by superimposing two areas. The first 
is the area projected to contain the free phase CO2 plume at 
the end of the specified time interval plus an all around buffer zone 
of at least

[[Page 75066]]

one-half mile, or greater if known leakage pathways extend laterally 
more than one-half mile. The second is the area projected to contain 
the free phase CO2 plume five years beyond the specified 
time interval.\9\
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    \9\ In some cases, the actual footprint of the free phase 
CO2 plume and the area that is projected to contain the 
free phase CO2 plume after five years may be the same. 
The one-half mile or greater area provides a buffer zone in the case 
that upward migration of a CO2 leak moves laterally as it 
approaches the surface.
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    Second, the MRV plan must include identification and evaluation of 
potential surface leakage pathways within the MMA and an assessment of 
the likelihood, magnitude, and timing, of surface leakage of 
CO2 through these pathways. Possible conduits for 
CO2 leakage include faults, fractures, and abandoned 
wells.\10\
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    \10\ As discussed in Section I.D. of this preamble, UIC 
requirements can provide the basis for the MRV plan submitted to EPA 
for 40 CFR part 98, subpart RR.
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    Third, the MRV plan must describe the strategy for detecting and 
quantifying surface leakage of CO2 in the event leakage 
occurs. It should include a description of the approach for determining 
whether surface leakage has occurred, an explanation of how 
CO2 surface leaks will be distinguished from the baseline, 
and the approach for quantifying detected and verified surface leakage. 
The expected performance of the selected leakage detection monitoring 
system or technical specifications should also be described in the MRV 
plan. If a surface leak is detected, the reporter should have a 
strategy in place to verify that a surface leak has occurred, confirm 
the location and source of the surface leak, and then apply some 
combination of direct measurement and estimation to quantify the 
surface leak.
    Fourth, the MRV plan should include an approach for establishing 
expected baselines. The primary goal of establishing expected baselines 
is so that the Reporter can discern whether the results of monitoring 
are attributable to leakage of injected CO2 or from another 
cause (e.g. natural variability). The MRV plan leakage detection and 
quantification strategy may include monitoring a selection of indicator 
parameters to detect potential CO2 leakages. These indicator 
parameters may be environmental such as subsurface pressure, soil 
CO2 flux rates, etc., or operational, such as the injection 
pressure and the annular pressure in the well. To judge whether a set 
of measured parameter values obtained during GS operations may indicate 
CO2 leakage, reporters should know what those parameter 
values would be expected to be in the absence of leaks. The MRV plan 
should describe how the baselines will be determined, how they will be 
measured or calculated, how they could be used to detect monitoring 
anomalies, and the operating conditions and their variability.
    Fifth, the MRV plan should include a description of monitoring and 
calculation methodologies to calculate equipment leaks and vented 
emissions from surface equipment between the flow meters and either 
injection or production wellheads, and the quantity of CO2 
that is produced with oil or other fluids.
    EPA will send a notice of receipt to the reporter within 15 days to 
acknowledge that EPA has received the MRV plan submission. EPA will 
determine if the MRV plan is complete within 45 days of the notice of 
receipt and will notify the reporter whether the plan is complete or 
incomplete. If incomplete, the reporter must submit an updated MRV plan 
within 45 days of EPA notification unless otherwise specified by EPA.
    Once EPA determines that the MRV plan is complete, technical review 
will commence. After 60 days of technical review, EPA will send the 
reporter a request for additional information including clarifying 
technical questions, if necessary. The reporter will be encouraged to 
provide a response to this request within 15 days, however EPA 
recognizes that there may be circumstances where additional time is 
needed for the reporter to collect the information requested.
    Following this iterative process, EPA will issue a final MRV plan 
as submitted, or with revisions. EPA will post the approved MRV plan on 
a public Web site, subject to any limitations or requirements in its 
CBI determination (see Section I.B of this preamble). Any reporter, or 
interested person, objecting to EPA's final decision, may appeal it to 
EPA's Environmental Appeals Board.
    Facilities must re-submit the MRV plan for EPA approval if a 
material change was made to monitoring and/or operational parameters 
that was not anticipated in the original plan, if the facility's UIC 
permit class changes, or if an EPA review of the annual report 
determines that it is necessary. Examples of material changes include 
but are not limited to a large change in the volume of CO2 
injected; the construction of new injection wells not referred to in 
the MRV plan; failures of the monitoring system to perform as expected 
due to inadequate monitoring system sensitivity, performance, location, 
or baseline; changes to surface land use that affects baseline or 
operational conditions; observed plume location that differs 
significantly from the predicted plume area used for developing the 
monitoring plan; a change in the MMA or AMAs; or a change in monitoring 
technology that would result in coverage or detection capability 
different from what is specified in the MRV plan. As an example of a 
facility's UIC permit class changing, the UIC Class VI rule provides 
that UIC Class II ER projects must seek a UIC Class VI permit when 
there is an increased risk to USDWs compared to UIC Class II 
operations. Please see 40 CFR 144.19 of the UIC Class VI rule for a 
list of risk-based criteria that the UIC Director shall use to 
determine if the owner or operator of a UIC Class II ER project must 
apply for and obtain a UIC Class VI permit. This list of criteria may 
also be used by Class II ER project owners and operators to self-
determine if they need to apply for and obtain a UIC Class VI permit. 
If a facility's UIC permit were to change from Class II to Class VI, it 
would be required to submit a revised MRV plan to EPA for approval.
6. Subpart RR Data Reporting
    In addition to the information summarized at ``Subpart RR GHGs to 
Report'' in this section of the preamble, facilities must report the 
source of the CO2 received and the cumulative amount of 
CO2 geologically sequestered since the facility first 
reported under subpart RR. All facilities must also report 
concentration, facilities using mass flow meters must report mass flow 
information, facilities using volumetric flow meters must report 
volumetric flow information, and facilities using containers must 
measure the mass or volume of the containers. They are required to 
report a description of the monitoring program that was implemented, 
including descriptions of monitoring anomalies and surface leakage, if 
any. Finally, for EPA verification purposes, they are required to 
report for each injection well the class of UIC permit and well 
identification number used for the UIC permit.
    Subpart RR requires reporting of CO2 equipment leaks and 
vented CO2 emissions to the extent they are a component of 
the GS mass balance. Subpart RR does not require reporting of 
CO2 equipment leaks and vented CO2 emissions from 
all surface equipment located within the facility (e.g., operational 
emissions not related to the CO2 being injected); however, 
GS projects that produce oil or natural gas may be required to report 
CO2 equipment leaks and vented CO2 emissions in 
the petroleum and natural

[[Page 75067]]

gas system subpart, 40 CFR part 98, subpart W as part of either 
offshore or onshore petroleum and natural gas production.
7. Subpart RR Recordkeeping
    Facilities must retain quarterly records of CO2 
received; injected CO2; produced CO2; 
CO2 emitted by surface leakage; CO2 emitted as 
equipment leaks and vented emissions from equipment located on the 
surface between the flow meter used to measure the injection quantity 
and the injection wellhead and between the flow meter used to measure 
the production quantity and the production wellhead; and any other 
records as outlined for retention in the facility MRV plan for 3 years 
per 40 CFR 98.3(g).
8. Subpart RR Administrative Appeals
    Under this final rule, final decisions of the Administrator under 
part 98, subpart RR are appealable to EPA's Environmental Appeals Board 
under the regulations that are set forth in part 78 (40 CFR part 78). 
Part 78 is revised to accommodate such appeals. Specifically, the list 
in 40 CFR 78.1 of the types of final decisions that can be appealed 
under 40 CFR part 78 is expanded to cover final decisions of the 
Administrator under 40 CFR part 98, subpart RR. This list includes, but 
is not limited to, the following specific types of decisions under 
subpart RR, a determination of eligibility for an R&D exemption under 
40 CFR 98.440(d)(4), the approval or disapproval of a request for 
discontinuation of reporting under 40 CFR 98.441(b)(2), and the 
approval or disapproval of a MRV plan under 40 CFR 98.448(c).
    Further, 40 CFR 78.3 is revised to allow for petitions for 
administrative appeal of decisions of the Administrator under 40 CFR 
part 98, subpart RR. Under the general approach in the existing part 
78, an ``interested person'' (in addition to the official 
representative of owners and operators involved in a matter) may 
petition for an administrative appeal of a final decision of the 
Administrator. The ``interested person'' definition, which is located 
in part 72 of the Acid Rain Program regulations, is expanded to take 
into account final decisions of the Administrator under part 98. In 
particular, EPA is revising the ``interested person'' definition by 
replacing specific references to the Acid Rain Program and draft 
permits with broader references to any decision by the Administrator 
and the Administrator's process of making that decision. As a result of 
this revision and the revisions of 40 CFR part 78, a person who does 
not own or operate a facility covered by a final decision under 40 CFR 
part 98, subpart RR will need to submit his or her name to be included 
by the Administrator on an ``interested persons list'' in order to be 
able to appeal--by filing a petition for an administrative appeal--that 
final decision.
    In addition, 40 CFR 78.4 is expanded to state that filings on 
behalf of owners and operators of a facility subject to 40 CFR part 98, 
subpart RR must be signed by the designated representative of the 
owners and operators.

C. Summary of the Reporting Requirements for Injection of Carbon 
Dioxide (Subpart UU)

    Reporting requirements for all other facilities conducting 
CO2 injection are found in 40 CFR part 98, subpart UU. 
Facilities conducting GS and reporting under 40 CFR part 98, subpart RR 
are not required to report under 40 CFR part 98, subpart UU.
1. Subpart UU Source Category Definition
    The 40 CFR part 98, subpart UU source category consists of any 
other well or group of wells that inject a CO2 stream into 
the subsurface. This includes any wells used to enhance oil and gas 
recovery and GS R&D projects that are exempted from 40 CFR part 98, 
subpart RR monitoring and reporting requirements. If you report under 
40 CFR part 98, subpart RR for a well or group of wells, you are not 
required to report under 40 CFR part 98, subpart UU for that well or 
group of wells.
2. Subpart UU Reporting Threshold
    All facilities that inject CO2 underground must report 
under this subpart (except those in subpart RR), regardless of the 
amount of emissions from the facility or the amount of CO2 
injected. Reporters can cease subpart UU reporting pursuant to the 
provisions at 40 CFR 98.2(i) that allow facilities to cease GHG 
reporting to EPA; with respect to subpart UU, any reference to 
CO2 emissions in 40 CFR 98.2(i) means CO2 
received.
3. Subpart UU GHGs to Report
    Facilities covered by this source category must report the annual 
mass of CO2 received.
4. Subpart UU GHG Calculations and Monitoring
    Facilities covered by this source category must calculate the 
annual mass of CO2 received using the calculation procedures 
for either mass or volumetric flow meters. Where CO2 is 
received in containers, facilities must use the calculation procedures 
for determining the mass or volume of contents in containers.
5. Subpart UU Data Reporting
    In addition to reporting the mass of CO2 received, 
facilities must report the source of the CO2. All facilities 
must also report concentration, facilities using mass flow meters must 
report mass flow information, facilities using volumetric flow meters 
must report volumetric flow information, and facilities using 
containers must measure the mass or volume of the containers.
6. Subpart UU Recordkeeping
    Facilities must retain quarterly records of CO2 received 
for 3 years per 40 CFR 98.3(g).

D. Summary of the Major Changes Since Proposal

    The major changes in this rule since the original proposal are 
identified in the following list. The rationale for these and any other 
changes to the rule can be found in this section or in ``Mandatory 
Greenhouse Gas Reporting Rule: EPA's Response to Public Comments, 
Subparts RR and UU: Injection and Geologic Sequestration of Carbon 
Dioxide.''
    X EPA has moved all definitions, requirements, and procedures for 
facilities conducting CO2 injection only (which both EPA and 
commenters have referred to as ``Tier 1'' facilities for simplicity) 
into a new subpart, 40 CFR part 98, subpart UU, and retained all 
definitions, requirements, and procedures related to facilities 
conducting GS (which both EPA and commenters have referred to as ``Tier 
2'' facilities for simplicity) in 40 CFR part 98, subpart RR.
    X EPA has removed the requirement that facilities report the amount 
of CO2 injected in 40 CFR part 98, subpart UU (Tier 1) but 
retained requirements that facilities subject to this subpart report 
the amount of CO2 received and the source of CO2 
if known.
    X EPA has established procedures for calculating CO2 
received in containers.
    X In 40 CFR part 98, subpart RR, EPA has established eligibility 
requirements for a GS R&D project to be exempt from 40 CFR part 98, 
subpart RR.
    X In 40 CFR part 98, subpart RR, EPA has retained the requirement 
that facilities report the equipment leaks and vented emissions for 
surface equipment that could be included in the GS mass balance but 
removed the requirement for reporting equipment leaks and

[[Page 75068]]

vented emissions for all other surface equipment.
    X In 40 CFR part 98, subpart RR, EPA has added an MRV plan 
requirement for the delineation of the areas that will be monitored.
    X In 40 CFR part 98, subpart RR, EPA has clarified the requirements 
for an addendum to the annual report and renamed it the monitoring 
report.
    X EPA has amended 40 CFR part 78 to include administrative appeals 
procedures for EPA decisions made under 40 CFR part 98, subpart RR, 
such as decisions relating to eligibility for the R&D exemption under 
40 CFR 98.440(d)(4), decisions relating to a request for 
discontinuation of reporting under 40 CFR 98.441(b)(2), or MRV plan 
decisions under 40 CFR 98.448(c).

E. Summary of Comments and Responses

    This section contains a brief summary of major comments and 
responses. A large number of comments on CO2 injection and 
sequestration were received covering numerous topics. Responses to 
significant comments received can be found in ``Mandatory Greenhouse 
Gas Reporting Rule: EPA's Response to Public Comments, Subparts RR and 
UU: Injection and Geologic Sequestration of Carbon Dioxide.''
1. Legal Authority
    Comment: EPA received a number of comments regarding its legal 
authority to require the proposed reporting from facilities conducting 
CO2 injection or GS. Some commenters argued that EPA has 
over-reached its CAA statutory authority, stating that the CAA 
authorizes the regulation of air emissions, not CO2 
injection or GS. One commenter asserted that EPA is overstepping its 
authority under CAA section 114 by requiring indefinite and broad 
monitoring and reporting, and that none of EPA's stated purposes in the 
preamble to the proposal provide adequate justification for the 
proposed data collection requirements, imposition of new measurement 
protocols, or installation of new instrumentation. Some commenters also 
asserted that the fiscal year 2008 Appropriations Act constrains the 
scope of EPA's information gathering to GHG emissions, which does not 
include CO2 injection or GS. Some commenters asserted that 
the proposal was within EPA's authority under the CAA.
    Response: EPA is promulgating this rule under the authority 
provided in CAA section 114. We disagree that we do not have statutory 
authority to promulgate this rule. The Administrator may gather 
information under CAA section 114, as long as that information is for 
purposes of carrying out any provision of the CAA. The information 
submitted to EPA as a result of this rule will, among other things, 
inform policy decisions under the CAA related to the use of CCS for 
mitigating GHG emissions. This data will prove valuable to the Agency 
in several areas, including reconciling 40 CFR part 98, subpart UU data 
on CO2 received with CO2 supply data to better 
understand the amount of CO2 supply that is used for 
CO2 injection and GS, monitoring the growth and efficacy of 
GS over time, and evaluating ER as a potentially non-emissive end use.
    EPA is not citing the fiscal year 2008 Consolidated Appropriations 
Act as the statutory basis for this action. Furthermore, we do not 
agree that the appropriations language constrains EPA's ability to 
collect the information under this action. Please also refer to 
Mandatory Greenhouse Gas Reporting Rule: EPA's Response to Public 
Comments, Volume No.: 9, Legal Issues (Docket ID No. EPA-HQ-OAR-2008-
0508) for similar comments received in developing the rule establishing 
the GHG Reporting Program.
2. Definition of Source Category
    Comment: EPA received many comments about the definition of source 
category and GS facility. At least one commenter recommended setting a 
clearer distinction between CO2 injection without GS (Tier 
1) and CO2 injection with GS (Tier 2). This comment