Federal Requirements Under the Underground Injection Control (UIC) Program for Carbon Dioxide (CO2, 77230-77303 [2010-29954]

Agencies

• ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 75, Number 237 (Friday, December 10, 2010)]
[Rules and Regulations]
[Pages 77230-77303]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-29954]



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Part III





Environmental Protection Agency





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40 CFR Parts 124, 144, 145, et al.



Federal Requirements Under the Underground Injection Control (UIC) 
Program for Carbon Dioxide (CO[bdi2]) Geologic Sequestration (GS) 
Wells; Final Rule

Federal Register / Vol. 75 , No. 237 / Friday, December 10, 2010 / 
Rules and Regulations

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 124, 144, 145, 146, and 147

[EPA-HQ-OW-2008-0390 FRL-9232-7]
RIN 2040-AE98


Federal Requirements Under the Underground Injection Control 
(UIC) Program for Carbon Dioxide (CO2) Geologic 
Sequestration (GS) Wells

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This action finalizes minimum Federal requirements under the 
Safe Drinking Water Act (SDWA) for underground injection of carbon 
dioxide (CO2) for the purpose of geologic sequestration 
(GS). GS is one of a portfolio of options that could be deployed to 
reduce CO2 emissions to the atmosphere and help to mitigate 
climate change. This final rule applies to owners or operators of wells 
that will be used to inject CO2 into the subsurface for the 
purpose of long-term storage. It establishes a new class of well, Class 
VI, and sets minimum technical criteria for the permitting, geologic 
site characterization, area of review (AoR) and corrective action, 
financial responsibility, well construction, operation, mechanical 
integrity testing (MIT), monitoring, well plugging, post-injection site 
care (PISC), and site closure of Class VI wells for the purposes of 
protecting underground sources of drinking water (USDWs). The elements 
of this rulemaking are based on the existing Underground Injection 
Control (UIC) regulatory framework, with modifications to address the 
unique nature of CO2 injection for GS. This rule will help 
ensure consistency in permitting underground injection of 
CO2 at GS operations across the United States and provide 
requirements to prevent endangerment of USDWs in anticipation of the 
eventual use of GS to reduce CO2 emissions to the atmosphere 
and to mitigate climate change.

DATES: This regulation is effective January 10, 2011. For purposes of 
judicial review, this final rule is promulgated as of 1 p.m., Eastern 
time on December 24, 2010, as provided in 40 CFR 23.7.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-HQ-OW-2008-0390. 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., 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 the OW Docket, EPA/DC, EPA West, 
Room 3334, 1301 Constitution Ave., NW., Washington, DC. The Public 
Reading Room 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 OW 
Docket is (202) 566-2426.

FOR FURTHER INFORMATION CONTACT: Mary Rose (Molly) Bayer, Underground 
Injection Control Program, Drinking Water Protection Division, Office 
of Ground Water and Drinking Water (MC-4606M), Environmental Protection 
Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460; telephone 
number: (202) 564-1981; fax number: (202) 564-3756; e-mail address: 
bayer.maryrose@epa.gov. For general information, visit the Underground 
Injection Control Geologic Sequestration Web site at https://www.epa.gov/safewater/uic/wells_sequestration.html.

SUPPLEMENTARY INFORMATION:

I. General Information

    This regulation affects owners or operators of injection wells that 
will be used to inject CO2 into the subsurface for the 
purposes of GS. Regulated categories and entities include, but are not 
limited to, the following:

------------------------------------------------------------------------
             Category                  Examples of regulated entities
------------------------------------------------------------------------
Private...........................  Owners or Operators of CO2 injection
                                     wells used for Class VI GS.
Private...........................  Owners or Operators of existing CO2
                                     injection wells transitioning from
                                     Class I, II, or Class V injection
                                     activities to Class VI GS.
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    This table is not intended to be an exhaustive list; rather it 
provides a guide for readers regarding entities likely to be regulated 
by this action. This table lists the types of entities that EPA is now 
aware could potentially be regulated by this action. Other types of 
entities not listed in the table could also be regulated. To determine 
whether your facility is regulated by this action, you should carefully 
examine the applicability criteria found at Sec.  146.81 in the rule 
section of this action. If you have questions regarding the 
applicability of this action to a particular entity, consult the person 
listed in the preceding FOR FURTHER INFORMATION CONTACT section.

Abbreviations and Acronyms

AoR Area of Review
BLM United States Department of the Interior, Bureau of Land 
Management
BOEMRE United States Department of the Interior, Bureau of Ocean 
Energy Management, Regulation and Enforcement
CAA Clean Air Act
CBI Confidential Business Information
CCS Carbon Capture and Storage
CERCLA Comprehensive Environmental Response, Compensation, and 
Liability Act
CO2 Carbon Dioxide
DOE United States Department of Energy
ECBM Enhanced Coal Bed Methane
EFAB Environmental Financial Advisory Board
EGR Enhanced Gas Recovery
EIS Environmental Impact Statement
EISA Energy Independence and Security Act of 2007
EO Executive Order
EOR Enhanced Oil Recovery
EPA United States Environmental Protection Agency
ER Enhanced Recovery
FPR Federally Permitted Releases
GAO General Accountability Office
GHG Greenhouse Gas
GS Geologic Sequestration
Gt CO2 Gigatons CO2
GWPC Ground Water Protection Council
HHS United States Department of Health and Human Services
ICR Information Collection Request
IOGCC Interstate Oil and Gas Compact Commission
IPCC Intergovernmental Panel on Climate Change
IRS United States Internal Revenue Service
LBNL Lawrence Berkeley National Laboratory
Mg/L Milligrams per liter
MI Mechanical Integrity
MIT Mechanical Integrity Test
MMS United States Department of the Interior, Minerals Management 
Service
MPRSA Marine Protection, Research, and Sanctuaries Act of 1972
MRA Miscellaneous Receipts Act
MRR Mandatory Reporting Rule
MRV Monitoring, Reporting, and Verification
NAICS North American Industry Classification System
NASA National Aeronautics and Space Administration
NCER National Center for Environmental Research
NDWAC National Drinking Water Advisory Council
NEPA National Environmental Protection Act
NETL National Energy Technology Laboratory
NGO Non-Governmental Organization
NIWG National Indian Work Group
NOAA National Oceanic and Atmospheric Administration
NODA Notice of Data Availability
NOI Notice of Intent

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NTC National Tribal Caucus
NTTAA National Technology Transfer and Advancement Act of 1995
NTWC National Tribal Water Council
O&M Operation and Maintenance
OAR Office of Air and Radiation
OCS Outer Continental Shelf
OCSLA Outer Continental Shelf Lands Act
OMB Office of Management and Budget
ORD Office of Research and Development
PBMS Performance Based Measurement System
Pg Petagram
PISC Post-Injection Site Care
PRA Paperwork Reduction Act
PWSS Public Water System Supervision
QASP Quality Assurance and Surveillance Plan
RA Regulatory Alternative
RCRA Resource Conservation and Recovery Act
RCSP Regional Carbon Sequestration Partnership
RFA Regulatory Flexibility Act
RIC Regional Indian Coordinators
SDWA Safe Drinking Water Act
STAR Science To Achieve Results
STC3 State-Tribal Climate Change Council
SWP Southwest Regional Partnership on Carbon Sequestration
TCLP Toxicity Characteristic Leaching Procedure
TDS Total Dissolved Solids
TNW Tangible Net Worth
UIC Underground Injection Control
UICPG83 Underground Injection Control Program Guidance 
 83
UMRA Unfunded Mandates Reform Act
USDW Underground Source of Drinking Water
USGS United States Department of the Interior, United States 
Geological Survey
WRI World Resources Institute

Definitions

    Annulus: The space between the well casing and the wall of the bore 
hole; the space between concentric strings of casing; the space between 
casing and tubing.
    Area of review (AoR): The region surrounding the geologic 
sequestration project where USDWs may be endangered by the injection 
activity. The area of review is delineated using computational modeling 
that accounts for the physical and chemical properties of all phases of 
the injected carbon dioxide stream and displaced fluids, and is based 
on available site characterization, monitoring, and operational data as 
set forth in Sec.  146.84.
    Automatic shut-off device: A valve which closes when a pre-
determined pressure or flow value is exceeded. Shut-off devices in 
injection wells can automatically shut down injection activities 
preventing an excursion outside of the permitted values.
    Ball valve: A valve consisting of a hole drilled through a ball 
placed in between two seals. The valve is closed when the ball is 
rotated in the seals so the flow path no longer aligns and is blocked.
    Biosphere: The part of the Earth's crust, waters, and atmosphere 
that supports life.
    Buoyancy: Upward force on one phase (e.g., a fluid) produced by the 
surrounding fluid (e.g., a liquid or a gas) in which it is fully or 
partially immersed, caused by differences in pressure or density.
    Capillary force: Adhesive force that holds a fluid in a capillary 
or a pore space. Capillary force is a function of the properties of the 
fluid, and surface and dimensions of the space. If the attraction 
between the fluid and surface is greater than the interaction of fluid 
molecules, the fluid will be held in place.
    Caprock: See confining zone.
    Carbon dioxide plume: The extent underground, in three dimensions, 
of an injected carbon dioxide stream.
    Carbon dioxide (CO2) stream: Carbon dioxide that has 
been captured from an emission source (e.g., a power plant), plus 
incidental associated substances derived from the source materials and 
the capture process, and any substances added to the stream to enable 
or improve the injection process. This subpart does not apply to any 
carbon dioxide stream that meets the definition of a hazardous waste 
under 40 CFR part 261.
    Casing: The pipe material placed inside a drilled hole to prevent 
the hole from collapsing. The two types of casing in most injection 
wells are (1) surface casing, the outermost casing that extends from 
the surface to the base of the lowermost USDW and (2) long-string 
casing, which extends from the surface to or through the injection 
zone.
    Cement: Material used to support and seal the well casing to the 
rock formations exposed in the borehole. Cement also protects the 
casing from corrosion and prevents movement of injectate up the 
borehole. The composition of the cement may vary based on the well type 
and purpose; cement may contain latex, mineral blends, or epoxy.
    Confining zone: A geologic formation, group of formations, or part 
of a formation stratigraphically overlying the injection zone(s) that 
acts as barrier to fluid movement. For Class VI wells operating under 
an injection depth waiver, confining zone means a geologic formation, 
group of formations, or part of a formation stratigraphically overlying 
and underlying the injection zone(s).
    Corrective action: The use of Director-approved methods to ensure 
that wells within the area of review do not serve as conduits for the 
movement of fluids into USDWs.
    Corrosive: Having the ability to wear away a material by chemical 
action. Carbon dioxide mixed with water forms carbonic acid, which can 
corrode well materials.
    Dip: The angle between a planar feature, such as a sedimentary bed 
or a fault, and the horizontal plane. The dip of subsurface rock layers 
can provide clues as to whether injected fluids may be contained.
    Director: The person responsible for permitting, implementation, 
and compliance of the UIC program. For UIC programs administered by 
EPA, the Director is the EPA Regional Administrator or his/her 
delegatee; for UIC programs in Primacy States, the Director is the 
person responsible for permitting, implementation, and compliance of 
the State, Territorial, or Tribal UIC program.
    Ductility: The ability of a material to sustain stress until it 
fractures.
    Enhanced Coal Bed Methane (ECBM) recovery: The process of injecting 
a gas (e.g., CO2) into coal, where it is adsorbed to the 
coal surface and methane is released. The methane can be captured and 
produced for economic purposes; when CO2 is injected, it 
adsorbs to the surface of the coal, where it remains trapped or 
sequestered.
    Enhanced Oil or Gas Recovery (EOR/EGR): Typically, the process of 
injecting a fluid (e.g., water, brine, or CO2) into an oil 
or gas bearing formation to recover residual oil or natural gas. The 
injected fluid thins (decreases the viscosity) and/or displaces 
extractable oil and gas, which is then available for recovery. This is 
also used for secondary or tertiary recovery.
    Flapper valve: A valve consisting of a hinged flapper that seals 
the valve orifice. In Class VI wells, flapper valves can engage to shut 
off the flow of the CO2 when acceptable operating parameters 
are exceeded.
    Formation or geological formation: A layer of rock that is made up 
of a certain type of rock or a combination of types.
    Geologic sequestration (GS): The long-term containment of a 
gaseous, liquid or supercritical carbon dioxide stream in subsurface 
geologic formations. This term does not apply to CO2 capture 
or transport.
    Geologic sequestration project: For the purpose of this regulation, 
an injection well or wells used to emplace a carbon dioxide stream 
beneath the lowermost formation containing a USDW; or, wells used for 
geologic sequestration of carbon dioxide that have been granted a 
waiver of the injection depth requirements pursuant to requirements

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at Sec.  146.95; or, wells used for geologic sequestration of carbon 
dioxide that have received an expansion to the areal extent of an 
existing Class II EOR/EGR aquifer exemption pursuant to Sec. Sec.  
146.4 and 144.7(d). It includes the subsurface three-dimensional extent 
of the carbon dioxide plume, associated area of elevated pressure, and 
displaced fluids, as well as the surface area above that delineated 
region.
    Geophysical surveys: The use of geophysical techniques (e.g., 
seismic, electrical, gravity, or electromagnetic surveys) to 
characterize subsurface rock formations.
    Injectate: The fluids injected. For the purposes of this rule, this 
is also known as the CO2 stream.
    Injection zone: A geologic formation, group of formations, or part 
of a formation that is of sufficient areal extent, thickness, porosity, 
and permeability to receive CO2 through a well or wells 
associated with a geologic sequestration project.
    Lithology: The description of rocks, based on color, mineral 
composition and grain size.
    Mechanical integrity (MI): The absence of significant leakage 
within the injection tubing, casing, or packer (known as internal 
mechanical integrity), or outside of the casing (known as external 
mechanical integrity).
    Mechanical Integrity Test: A test performed on a well to confirm 
that a well maintains internal and external mechanical integrity. MITs 
are a means of measuring the adequacy of the construction of an 
injection well and a way to detect problems within the well system.
    Model: A representation or simulation of a phenomenon or process 
that is difficult to observe directly or that occurs over long time 
frames. Models that support GS can predict the flow of CO2 
within the subsurface, accounting for the properties and fluid content 
of the subsurface formations and the effects of injection parameters.
    Packer: A mechanical device that seals the outside of the tubing to 
the inside of the long string casing, isolating an annular space.
    Pinch-out: A situation where a formation thins to zero thickness.
    Pore space: Open spaces in rock or soil. These are filled with 
water or other fluids such as brine (i.e., salty fluid). CO2 
injected into the subsurface can displace pre-existing fluids to occupy 
some of the pore spaces of the rocks in the injection zone.
    Post-injection site care: Appropriate monitoring and other actions 
(including corrective action) needed following cessation of injection 
to ensure that USDWs are not endangered, as required under Sec.  
146.93.
    Pressure front: The zone of elevated pressure that is created by 
the injection of carbon dioxide into the subsurface. For GS projects, 
the pressure front of a CO2 plume refers to the zone where 
there is a pressure differential sufficient to cause the movement of 
injected fluids or formation fluids into a USDW.
    Saline formations: Subsurface geographically extensive sedimentary 
rock layers saturated with waters or brines that have a high total 
dissolved solids (TDS) content (i.e., over 10,000 mg/L TDS).
    Site closure: The point/time, as determined by the Director 
following the requirements under Sec.  146.93, at which the owner or 
operator of a GS site is released from post-injection site care 
responsibilities.
    Sorption (absorption, adsorption): Absorption refers to gases or 
liquids being incorporated into a material of a different state; 
adsorption is the adhering of a molecule or molecules to the surface of 
a different molecule.
    Stratigraphic zone (unit): A layer of rock (or stratum) that is 
recognized as a unit based on lithology, fossil content, age or other 
properties.
    Supercritical fluid: A fluid above its critical temperature 
(31.1[deg]C for CO2) and critical pressure (73.8 bar for 
CO2). Supercritical fluids have physical properties 
intermediate to those of gases and liquids.
    Total Dissolved Solids (TDS): The measurement, usually in mg/L, for 
the amount of all inorganic and organic substances suspended in liquid 
as molecules, ions, or granules. For injection operations, TDS 
typically refers to the saline (i.e., salt) content of water-saturated 
underground formations.
    Transmissive fault or fracture: A fault or fracture that has 
sufficient permeability and vertical extent to allow fluids to move 
between formations.
    Trapping: The physical and geochemical processes by which injected 
CO2 is sequestered in the subsurface. Physical trapping 
occurs when buoyant CO2 rises in the formation until it 
reaches a layer that inhibits further upward migration or is 
immobilized in pore spaces due to capillary forces. Geochemical 
trapping occurs when chemical reactions between dissolved 
CO2 and minerals in the formation lead to the precipitation 
of solid carbonate minerals.
    Underground Source of Drinking Water (USDW): An aquifer or portion 
of an aquifer that supplies any public water system or that contains a 
sufficient quantity of ground water to supply a public water system, 
and currently supplies drinking water for human consumption, or that 
contains fewer than 10,000 mg/l total dissolved solids and is not an 
exempted aquifer.
    Viscosity: The property of a fluid or semi-fluid that offers 
resistance to flow. As a supercritical fluid, CO2 is less 
viscous than water and brine.

Table of Contents

I. General Information
II. Background
    A. Why is EPA taking this regulatory action?
    1. What is GS?
    2. Why is GS under consideration as a climate change mitigation 
technology?
    3. What are the unique risks to USDWs associated with GS?
    B. Under what authority is this rulemaking promulgated?
    C. How does this rulemaking relate to the greenhouse gas (GHG) 
reporting program?
    D. How does this rulemaking relate to other federal authorities 
and GS and CCS activities?
    E. What steps did EPA take to develop this rulemaking?
    1. Developing Guidance for Experimental GS Projects
    2. Conducting Research
    a. Tracking the Results of CO2 GS Research Projects
    b. Tracking State Regulatory Efforts
    c. Conducting Technical Workshops on Issues Associated with 
CO2 GS
    3. Conducting Stakeholder Coordination and Outreach
    4. Proposed Rulemaking
    5. Notice of Data Availability and Request for Comment
    F. How Will EPA's Adaptive Rulemaking Approach Incorporate 
Future Information and Research?
    G. How Does This Action Affect UIC Program Implementation?
    H. How Does This Rule Affect Existing Injection Wells Under the 
UIC Program?
III. What is EPA's Final Regulatory Approach?
    A. Site Characterization
    B. Area of Review (AoR) and Corrective Action
    1. AoR Requirements
    2. Corrective Action Requirements
    C. Injection Well Construction
    D. Class VI Injection Depth Waivers and Use of Aquifer 
Exemptions for GS
    1. Proposed Rule
    2. Notice of Data Availability and Request for Comment
    3. Final Approach
    E. Injection Well Operation
    F. Testing and Monitoring
    1. Testing and Monitoring Plan
    2. CO2 Stream Analysis
    3. Mechanical Integrity Testing (MIT)
    4. Corrosion Monitoring
    5. Ground Water/Geochemical Monitoring
    6. Pressure Fall-Off Testing
    7. CO2 Plume and Pressure Front Monitoring/Tracking

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    8. Surface Air/Soil Gas Monitoring
    9. Additional Requirements
    G. Recordkeeping and Reporting
    1. What Information Must Be Provided by the Owner or Operator?
    2. How Must Information Be Submitted?
    3. What are the Recordkeeping Requirements under This Rule?
    H. Well Plugging, Post-Injection Site Care (PISC), and Site 
Closure
    1. Injection Well Plugging
    2. Post-Injection Site Care (PISC)
    3. Site Closure
    I. Financial Responsibility
    J. Emergency and Remedial Response
    K. Involving the Public in Permitting Decisions
    L. Duration of a Class VI Permit
IV. Cost Analysis
    A. National Benefits and Costs of the Rule
    1. National Benefits Summary
    a. Relative Risk Framework--Qualitative Analysis
    b. Other Nonquantified Benefits
    2. National Cost Summary
    a. Cost of the Selected RA
    b. Nonquantified Costs and Uncertainties in Cost Estimates
    c. Supplementary Costs and Uncertainties in Cost Estimates
    B. Comparison of Benefits and Costs of RAs Considered
    1. Costs Relative to Benefits; Maximizing Net Social Benefits
    2. Cost Effectiveness and Incremental Net Benefits
    C. Conclusions
V. Statutory and Executive Order Review
VI. References

II. Background

    Today's action finalizes minimum Federal requirements under SDWA 
for injection of CO2 for the purpose of GS. The purpose of 
the rulemaking is to ensure that GS is conducted in a manner that 
protects USDWs from endangerment. GS refers to a suite of technologies 
that can be deployed to reduce CO2 emissions to the 
atmosphere and help mitigate climate change. Due to the large 
CO2 injection volumes anticipated at GS projects, the 
relative buoyancy of CO2, its mobility within subsurface 
geologic formations, its corrosivity in the presence of water, and the 
potential presence of impurities in the captured CO2 stream, 
the Agency has determined that tailored requirements, modeled on the 
existing UIC regulatory framework, are necessary to manage the unique 
nature of CO2 injection for GS. This final rule applies to 
owners or operators of wells that will be used to inject CO2 
into the subsurface for the purpose of GS.
    To support today's final regulatory action, EPA proposed Federal 
Requirements Under the Underground Injection Control (UIC) Program for 
Carbon Dioxide (CO2) Geologic Sequestration (GS) Wells (73 
FR 43492) on July 25, 2008; and the Agency published a supplemental 
publication, Federal Requirements Under the Underground Injection 
Control (UIC) Program for Carbon Dioxide (CO2) Geologic 
Sequestration (GS) Wells; Notice of Data Availability and Request for 
Comment (74 FR 44802) on August 31, 2009. Final Class VI requirements 
are informed, in part, by comments and information submitted in 
response to these publications.
    Today's rule defines a new class of injection well (Class VI), 
along with technical criteria that tailor the existing UIC regulatory 
framework to address the unique nature of CO2 injection for 
GS. It sets minimum technical criteria for Class VI wells to protect 
USDWs from endangerment, including:
     Site characterization that includes an assessment of the 
geologic, hydrogeologic, geochemical, and geomechanical properties of 
the proposed GS site to ensure that Class VI wells are located in 
suitable formations.
     Computational modeling of the AoR for GS projects that 
accounts for the physical and chemical properties of the injected 
CO2 and is based on available site characterization, 
monitoring, and operational data.
     Periodic reevaluation of the AoR to incorporate monitoring 
and operational data and verify that the CO2 plume and the 
associated area of elevated pressure are moving as predicted within the 
subsurface.
     Well construction using materials that can withstand 
contact with CO2 over the life of the GS project.
     Robust monitoring of the CO2 stream, injection 
pressures, integrity of the injection well, ground water quality and 
geochemistry, and monitoring of the CO2 plume and position 
of the pressure front throughout injection.
     Comprehensive post-injection monitoring and site care 
following cessation of injection to show the position of the 
CO2 plume and the associated area of elevated pressure to 
demonstrate that neither pose an endangerment to USDWs.
     Financial responsibility requirements to ensure that funds 
will be available for all corrective action, injection well plugging, 
post-injection site care (PISC), site closure, and emergency and 
remedial response.
    Today's rule will help ensure consistency in permitting underground 
injection of CO2 at GS operations across the United States 
(US) and provide requirements to prevent endangerment of USDWs in 
anticipation of the potential role of carbon capture and storage (CCS) 
in mitigating climate change. Today's action also briefly discusses the 
relationship between today's rule and other Federal and State 
activities related to GS and CCS in Sections II.C and D, and E.2.b, and 
III.F.2.

A. Why is EPA taking this regulatory action?

1. What is GS?
    GS is the process of injecting CO2 into deep subsurface 
rock formations for long-term storage. It is part of the process known 
as CCS.
    CO2 is first captured from fossil-fueled power plants or 
other emission sources. To transport captured CO2 for GS, 
operators typically compress CO2 to convert it from a 
gaseous state to a supercritical state (IPCC, 2005; IEA, 2008). 
CO2 exists as a supercritical fluid at high pressures, and 
in this state it exhibits properties of both a liquid and a gas. After 
capture and compression, the CO2 is delivered to the 
sequestration site, frequently by pipeline, or alternatively using 
tanker trucks or ships (WRI, 2007; IEA, 2008).
    At the GS site, the CO2 is injected into deep subsurface 
rock formations through one or more wells, using technologies developed 
and refined by the oil, gas, and chemical manufacturing industries over 
the past several decades. EPA believes that many owners or operators 
will inject CO2 in a supercritical state to depths greater 
than 800 meters (2,645 feet) for the purpose of maximizing capacity and 
storage.
    When injected into an appropriate receiving formation, 
CO2 is sequestered by a combination of trapping mechanisms, 
including physical and geochemical processes (Benson, 2008). Physical 
trapping occurs when the relatively buoyant CO2 rises in the 
formation until it reaches a stratigraphic zone with low permeability 
(i.e., geologic confining system) that inhibits further upward 
migration. Physical trapping can also occur as residual CO2 
is immobilized in formation pore spaces as disconnected droplets or 
bubbles at the trailing edge of the plume due to capillary forces. A 
portion of the CO2 will dissolve from the pure fluid phase 
into native ground water and hydrocarbons. Preferential sorption occurs 
when CO2 molecules attach to the surfaces of coal and 
certain organic-rich shales, displacing other molecules such as 
methane. Geochemical trapping occurs when chemical reactions between 
the dissolved CO2 and minerals in the formation lead to the 
precipitation of solid carbonate minerals (IPCC, 2005). The timeframe 
over which CO2 will be trapped by these mechanisms depends 
on properties of

[[Page 77234]]

the receiving formation and the injected CO2 stream.
    The effectiveness of physical CO2 trapping is 
demonstrated by natural analogs in a range of geologic settings where 
CO2 has remained trapped for millions of years (Holloway et 
al., 2007). For example, CO2 has been trapped for more than 
65 million years under the Pisgah Anticline, northeast of the Jackson 
Dome in Mississippi and Louisiana (IPCC, 2005). Other natural 
CO2 sources include the following geologic domes: McElmo 
Dome, Sheep Mountain, and Bravo Dome in Colorado and New Mexico.
    Many of the injection and monitoring technologies that may be 
applicable to GS are commercially available today and will be more 
widely demonstrated over the next 10 to 15 years (Dooley et al., 2009). 
The oil and natural gas industry in the United States has over 35 years 
of experience of injection and monitoring of CO2 in the deep 
subsurface for the purposes of enhancing oil and natural gas 
production. This experience provides a strong foundation for the 
injection and monitoring technologies that will be needed for 
commercial-scale CCS. US and international experience with enhanced 
recovery (ER) and commercial CCS projects, as well as ongoing research, 
demonstration, and deployment programs throughout the world, provide 
critical experience and information to inform the safe injection of 
CO2. For additional information about these projects, see 
section II.E.
    Although CCS is occurring now on a relatively small scale, it could 
play a larger role in mitigating greenhouse gas (GHG) emissions from a 
wide variety of stationary sources. According to the Inventory of US 
Greenhouse Gas Emissions and Sinks: 1990-2007, stationary sources 
contributed 67 percent of the total CO2 emissions from 
fossil fuel combustion in 2007 (USEPA, 2008a). These sources represent 
a wide variety of sectors amenable to CO2 capture: electric 
power plants (existing and new), natural gas processing facilities, 
petroleum refineries, iron and steel foundries, ethylene plants, 
hydrogen production facilities, ammonia refineries, ethanol production 
facilities, ethylene oxide plants, and cement kilns. Furthermore, 95 
percent of the 500 largest stationary sources are within 50 miles of a 
candidate GS reservoir (Dooley et al., 2008). Estimated GS capacity in 
the United States is over 3,500 Gigatons CO2 (Gt 
CO2) (DOE NETL, 2007), although the actual capacity may be 
lower once site-specific technical and economic considerations are 
addressed. Even if only a fraction of that geologic capacity is used, 
CCS would play a sizeable role in mitigating US GHG emissions.
2. Why is GS under consideration as a climate change mitigation 
technology?
    Climate change is happening now, and the effects can be seen on 
every continent and in every ocean. While certain effects of climate 
change can be beneficial, particularly in the short term, current and 
future effects of climate change pose considerable risks to human 
health and the environment. There is now clear evidence that the 
Earth's climate is warming (USEPA, 2010):
     Global surface temperatures have risen by 1.3 degrees 
Fahrenheit ([ordm]F) over the last 100 years.
     Worldwide, the last decade has been the warmest on record.
     The rate of warming across the globe over the last 50 
years (0.24[ordm]F per decade) is almost double the rate of warming 
over the last 100 years (0.13[ordm]F per decade).
    Most of this recent warming is very likely the result of human 
activities. Many human activities release greenhouse gases into the 
atmosphere (such as the combustion of fossil fuels). The levels of 
these gases are increasing at a faster rate than at any time in 
hundreds of thousands of years.
    Fossil fuels are expected to remain the mainstay of energy 
production well into the 21st century, and increased concentrations of 
CO2 are expected unless energy producers reduce 
CO2 emissions to the atmosphere. For example, CCS would 
enable the continued use of coal in a manner that greatly reduces the 
associated CO2 emissions while other safe and affordable 
alternative energy sources are developed in the coming decades. The 
development and deployment of clean coal technologies including CCS 
will be a key to achieving domestic emissions reductions.
    GS is one of a portfolio of options that could be deployed to 
reduce CO2 emissions to the atmosphere and help to mitigate 
climate change. Other options include energy conservation, efficiency 
improvements, and the use of alternative fuels and renewable energy 
sources. Ensuring that GS is done in a manner that is protective of 
USDWs will ensure the safety and efficacy of CO2 injection 
for GS.
    While predictions about large-scale availability and the rate of 
CCS project deployment are subject to uncertainty, EPA analyses of 
Congressional climate change legislative proposals (the American Power 
Act of 2010 and the American Clean Energy and Security Act H.R. 2454 of 
2009, both in the 111th Congress) indicate that CCS has the potential 
to play a significant role in climate change mitigation scenarios. For 
example, analysis of the American Power Act indicates that CCS 
technology could account for 10 percent of CO2 emission 
reductions in 2050 (USEPA, 2010f). These results indicate that CCS 
could play an important role in achieving national greenhouse gas 
reduction goals.
    Today's final rule provides minimum Federal requirements for the 
injection of CO2 to protect USDWs from endangerment as this 
key climate mitigation technology is developed and deployed. It 
clarifies requirements that apply to CO2 injection for GS, 
provides consistency in requirements across the US, and affords 
transparency about what requirements apply to owners or operators.
3. What are the unique risks to USDWs associated with GS?
    Large CO2 injection volumes associated with GS, the 
buoyant and mobile nature of the injectate, the potential presence of 
impurities in the CO2 stream, and its corrosivity in the 
presence of water could pose risks to USDWs. The purpose of today's 
Class VI requirements for GS is to ensure the protection of USDWs, 
recognizing that an improperly managed GS project has the potential to 
endanger USDWs. Proper siting, well construction, operation, and 
monitoring of GS projects are therefore necessary to reduce the risk of 
USDW contamination.
    It is expected that GS projects will inject large volumes of 
CO2. These volumes will be much larger than are typically 
injected in other well classes regulated through the UIC program, and 
could cause significant pressure increases in the subsurface. 
Supercritical or gaseous CO2 in the subsurface is buoyant, 
and thus would tend to flow upwards if it were to come into contact 
with a migration pathway, such as a fault, fracture, or improperly 
constructed or plugged well. However, the pressures induced by 
injection will also influence CO2 and mobilized fluids to 
flow away from the injection well in all directions, including 
laterally, upwards and downwards. When CO2 mixes with 
formation fluids, a percentage of it will dissolve. The resulting 
aqueous mixture of CO2 and water will sink due to a density 
differential between the mixture and the surrounding fluids. 
CO2 is also highly mobile in the subsurface (i.e., has a 
very low viscosity), and, in the presence of water, CO2 can 
be corrosive. These properties (of CO2), as well as the 
large

[[Page 77235]]

volumes that may be injected for GS result in several unique challenges 
for protection of USDWs in the vicinity of GS sites from endangerment.
    While CO2 itself is not a drinking water contaminant, 
CO2 in the presence of water forms a weak acid, known as 
carbonic acid, that, in some instances, could cause leaching and 
mobilization of naturally-occurring metals or other contaminants from 
geologic formations into ground water (e.g., arsenic, lead, and organic 
compounds). Another potential risk to USDWs is the presence of 
impurities in the captured CO2 stream, which may include 
drinking water contaminants such as hydrogen sulfide or mercury. 
Additionally, pressures induced by injection may force native brines 
(naturally occurring salty water) into USDWs, causing degradation of 
water quality and affecting drinking water treatment processes. 
Research studies have shown that the potential migration of injected 
CO2 or formation fluids into a USDW could cause impairment 
through one or several of these processes (e.g., Birkholzer et al., 
2008a).
    Today's action addresses endangerment to USDWs by establishing new 
minimum Federal requirements for the proper management of 
CO2 injection and storage in several program areas, 
including permitting, site characterization, AoR and corrective action, 
well construction, mechanical integrity testing (MIT), financial 
responsibility, monitoring, well plugging, PISC, and site closure. EPA 
believes that proper GS project management will appropriately mitigate 
potential risks of endangerment to USDWs posed by injection activities.

B. Under what authority is this rulemaking promulgated?

    Today's rule is focused on USDW protection under the authority of 
Part C of SDWA (SDWA, section 1421 et seq., 42 U.S.C. 300h et seq.). 
Part C of the SDWA requires EPA to establish minimum requirements for 
State\1\ UIC programs that regulate the subsurface injection of fluids 
onshore and offshore under submerged lands within the territorial 
jurisdiction of States\2\.
---------------------------------------------------------------------------

    \1\ Reference to ``States'' includes Tribes and Territories 
pursuant to 40 CFR 144.3.
    \2\ The Submerged Lands Act and Territorial Submerged Lands Act 
define the scope of territorial jurisdiction of States and 
Territories respectively.
---------------------------------------------------------------------------

    SDWA is designed to protect the quality of drinking water sources 
in the US and prescribes that EPA issue regulations for State UIC 
programs that contain ``minimum requirements for effective programs to 
prevent underground injection which endangers drinking water sources'' 
(42 U.S.C. 300h et seq.). Congress further defined endangerment as 
follows:

    Underground injection endangers drinking water sources if such 
injection may result in the presence in underground water which 
supplies or can reasonably be expected to supply any public water 
system of any contaminant, and if the presence of such contaminant 
may result in such system's not complying with any national primary 
drinking water regulation or may otherwise adversely affect the 
health of persons (SDWA, section 1421(d)(2)).

    Under this authority, the Agency promulgated a series of UIC 
regulations at 40 CFR parts 144 through 148 for federally approved UIC 
programs. The chief goal of any Federally approved UIC program (whether 
administered by a State, Territory, Tribe or EPA) is the protection of 
USDWs. This includes not only those formations that are presently being 
used for drinking water, but also those that can reasonably be expected 
to be used in the future. EPA has defined through its UIC regulations 
that USDWs are underground aquifers with less than 10,000 milligrams 
per liter (mg/L) total dissolved solids (TDS) and which contain a 
sufficient quantity of ground water to supply a public water system (40 
CFR 144.3). Section 1421(b)(3)(A) of the SDWA also provides that EPA's 
UIC regulations shall ``permit or provide for consideration of varying 
geologic, hydrological, or historical conditions in different States 
and in different areas within a State.''
    EPA promulgated administrative and permitting regulations, now 
codified in 40 CFR parts 144 and 146, on May 19, 1980 (45 FR 33290), 
and technical requirements, in 40 CFR part 146, on June 24, 1980 (45 FR 
42472). The regulations were subsequently amended on August 27, 1981 
(46 FR 43156), February 3, 1982 (47 FR 4992), January 21, 1983 (48 FR 
2938), April 1, 1983 (48 FR 14146), May 11, 1984 (49 FR 20138), July 
26, 1988 (53 FR 28118), December 3, 1993 (58 FR 63890), June 10, 1994 
(59 FR 29958), December 14, 1994 (59 FR 64339), June 29, 1995 (60 FR 
33926), December 7, 1999 (64 FR 68546), May 15, 2000 (65 FR 30886), 
June 7, 2002 (67 FR 39583), and November 22, 2005 (70 FR 70513).
    Under the SDWA, the injection of any ``fluid'' must meet the 
requirements of the UIC program. A ``fluid'' is defined under 40 CFR 
144.3 as any material or substance which flows or moves whether in a 
semisolid, liquid, sludge, gas or other form or state, and includes the 
injection of liquids, gases, and semisolids (i.e., slurries) into the 
subsurface. The types of fluids currently injected into wells subject 
to UIC requirements include: CO2 for the purposes of 
enhancing recovery of oil and natural gas, water that is stored to meet 
water supply demands in dry seasons, and wastes generated by industrial 
users. CO2 injected for the purpose of GS is subject to the 
SDWA.

C. How does this rulemaking relate to the greenhouse gas (GHG) 
reporting program?

    Today's rulemaking under SDWA authority complements the 
CO2 Injection and GS Reporting rulemaking (subparts RR and 
UU) under the Greenhouse Gas Reporting Program's Clean Air Act (CAA) 
authority developed by EPA's Office of Air and Radiation (OAR).
    The CAA defines EPA's responsibilities for protecting and improving 
the nation's air quality and the stratospheric ozone layer. The GHG 
Reporting Program requires reporting of GHG emissions and other 
relevant information from certain source categories in the U.S. The GHG 
Reporting Program, which became effective on December 29, 2009, 
includes reporting requirements for facilities and suppliers in 32 
subparts. For more detailed background information on the GHG Reporting 
Program, see the preamble to the final rule establishing the GHG 
Reporting Program (74 FR 56260, October 30, 2009).
    In a separate action being finalized concurrently with this UIC 
Class VI rulemaking, EPA is amending 40 CFR part 98, which provides the 
regulatory framework for the GHG Reporting Program, to add reporting 
requirements covering facilities that conduct GS (subpart RR) and all 
other facilities that inject CO2 underground (subpart UU). 
This data will inform Agency policy decisions under CAA sections 111 
and 112 related to the use of CCS for mitigating GHG emissions. In 
combination with data from other subparts of the GHG Reporting Program, 
data from subpart UU and subpart RR will allow EPA to track the flow of 
CO2 across the CCS system. EPA will be able to reconcile 
subpart RR data on CO2 received with CO2 supply 
data in order to understand the quantity of CO2 supply that 
is geologically sequestered.
    Owners or operators subject to today's rule are required to report 
under subpart RR. Subpart RR establishes reporting requirements for 
facilities that inject a CO2 stream for long-term 
containment into a subsurface geologic formation, including sub-seabed 
offshore formations. These facilities are required to develop and 
implement a site-specific

[[Page 77236]]

Monitoring, Reporting, and Verification (MRV) plan which, once approved 
by EPA (in a process separate from the UIC permitting process), would 
be used to verify the amount of CO2 sequestered and to 
quantify emissions in the event that injected CO2 leaks to 
the surface. For more information on subpart RR, see https://www.epa.gov/climatechange/emissions/ghgrulemaking.html.
    UIC requirements and Subpart RR requirements: EPA designed the 
reporting requirements under subpart RR with consideration of the 
requirements for Class VI well owners or operators in subpart H of part 
146 of today's rule. Subpart RR builds on the Class VI requirements 
outlined in today's rule with the additional goals of verifying the 
amount of CO2 sequestered and collecting data on any 
CO2 surface emissions from GS facilities as identified under 
subpart RR of part 98.
    The Agency acknowledges that there are similar data elements that 
must be reported pursuant to requirements in this action and those 
required to be reported under subpart RR. Specifically, owners or 
operators subject to both regulations must report the amount (flow 
rate) of injected CO2. The Class VI and subpart RR rules 
differ, not only in purpose but in the specific requirements for the 
measurement unit and collection/reporting frequency. The UIC program 
Class VI rule requires that owners or operators report information on 
the CO2 stream to ensure appropriate well siting, 
construction, operation, monitoring, post-injection site care, site 
closure, and financial responsibility to ensure protection of USDWS. 
Under subpart RR, owners or operators must report the amount (flow 
rate) of injected CO2 for the mass balance equation that 
will be used to quantify the amount of CO2 sequestered by a 
facility.

  Table II-1--Comparison of Reporting Requirements Under Subpart RR and
                    Select UIC Class VI Requirements
------------------------------------------------------------------------
    Reporting requirement          Subpart RR           UIC Class VI
------------------------------------------------------------------------
Quantity of CO2 transferred   Yes.................  N/A.
 onsite.
Quantity (flow rate) of CO2   Yes.................  Yes.
 injected.
Fugitive and vented           Yes.................  N/A.
 emissions from surface
 equipment.
Quantity of CO2 produced      Yes.................  N/A.
 with oil or natural gas
 (ER).
Percent of CO2 estimated to   Yes.................  N/A.
 remain with the oil and gas
 (ER).
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 requires reporting of other data to satisfy various 
programmatic needs. See section III of this preamble and associated 
requirements in subpart H of part 146 and the preamble to subpart RR 
for additional information on these specific requirements and their 
purpose. Table II-1 provides a comparison of the major reporting 
requirements in subpart RR and the extent to which there is overlap 
with Class VI requirements. For the monitoring plan listed in Table II-
1, EPA will accept a UIC Class VI permit to satisfy certain subpart RR 
MRV plan requirements. However, the reporter must include additional 
information to outline how monitoring will achieve surface detection 
and quantification of CO2. EPA is pursuing ways to better 
integrate data management between the UIC and GHG Reporting Programs to 
ensure that data needs are harmonized and the burden to regulated 
entities is minimized.

D. How does this rulemaking relate to other federal authorities and GS 
and CCS activities?

    While the SDWA provides EPA with the authority to develop 
regulations to protect USDWs from endangerment, it does not provide 
authority to develop regulations for all areas related to GS. EPA 
received a number of public comments on the proposal (73 FR 43492, July 
25, 2008) indicating that the Agency should further explore 
environmental and regulatory issues beyond the scope of the proposed 
SDWA requirements for underground injection of CO2 for GS.
    In response to comments and as a result of the presidential memo 
``A Comprehensive Strategy on Carbon Capture and Storage'' (https://www.whitehouse.gov/the-press-office/presidential-memorandum-a-comprehensive-Federal-strategy-carbon-capture-and-storage), the Agency 
continues to evaluate areas of potential applicability of other Federal 
environmental statutes including, but not limited to, the CAA 
(discussed in section II.C), the Resource Conservation and Recovery Act 
(RCRA; discussed in section III.F.2), the Comprehensive Environmental 
Response, Compensation, and Liability Act (CERCLA; discussed in section 
III.F.2), and the Marine Protection, Research and Sanctuaries Act 
(MPRSA; discussed in this section) to various aspects of GS and CCS.
    Additionally, EPA and the US Department of Energy (DOE) co-chaired 
the Interagency Task Force on Carbon Capture and Storage to develop a 
plan to overcome the barriers to the widespread, cost-effective 
deployment of CCS within 10 years, with a goal of bringing five to 10 
commercial demonstration projects online by 2016. The Task Force's 
report is available at https://www.whitehouse.gov/administration/eop/ceq/initiatives/ccs.
    This section clarifies the distinction between today's rulemaking 
and a number of other Federal rulemakings and initiatives.
    National Environmental Protection Act (NEPA): The SDWA UIC program 
is exempt from performing an Environmental Impact Statement (EIS) under 
section 101(2)(C) and an alternatives analysis under section 101(2)(E) 
of NEPA under a functional equivalence analysis. See Western Nebraska 
Resources Council v. US EPA, 943 F.2d 867, 871-72 (8th Cir. 1991) and 
EPA Associate General Counsel Opinion (August 20, 1979).
    Marine Protection, Research, and Sanctuaries Act (MPRSA) and London 
Protocol Implementation: Sub-seabed CO2 injection for GS 
may, in certain circumstances, be defined as ocean dumping and subject 
to regulation under the MPRSA. Application of the MPRSA would entail 
coordination of the permitting processes under the SDWA and MPRSA, 
pursuant to MPRSA sections 106(a) and (d). The substantive 
environmental protection requirements of both statutes would need to be 
satisfied prior to the

[[Page 77237]]

commencement of GS. The MPRSA was enacted in 1972 and implements the 
London Convention on the Prevention of Marine Pollution by Dumping of 
Wastes and Other Matter (the ``London Convention''). In 1996, the 
Protocol to the London Convention (the ``London Protocol'') was 
established. The Protocol stipulates that sub-seabed GS may be approved 
provided that: (1) Disposal is into a sub-seabed geologic formation; 
(2) the CO2 stream consists overwhelmingly of 
CO2, with only incidental associated substances derived from 
the source material and capture and sequestration process used; and, 
(3) no wastes or other matter are added for the purpose of disposal. 
The US has signed, but has not yet ratified, the Protocol. If the 
Protocol is ratified, and implementing legislation is enacted, EPA, in 
conjunction with other Federal agencies, will develop any necessary 
regulations for implementing the provisions relevant to sub-seabed GS.
    Bureau of Ocean Energy Management, Regulation, and Enforcement 
(BOEMRE) Outer Continental Shelf Lands Act (OCSLA): BOEMRE, formerly 
the Minerals Management Service (MMS), an agency within the Department 
of the Interior, administers the OCSLA. As a result of recent OCSLA 
amendments by the Energy Policy Act of 2005, the OCSLA provides for the 
grant of leases, easements, or rights-of-way on the outer continental 
shelf to the extent that an activity ``supports production, 
transportation, or transmission of energy from sources other than oil 
and gas'' and complies with the other provisions of OCSLA section 8(p). 
Offshore geologic sequestration of CO2 on the outer 
continental shelf may be subject to requirements under the OCSLA.
    As indicated in the Report of the Interagency Task Force on Carbon 
Capture and Storage (2010), ratification of the London Protocol and 
associated amendment of the MPRSA as well as amendment of the Outer 
Continental Shelf Lands Act (OCSLA) will ensure a comprehensive 
statutory framework for the storage of CO2 on the outer 
continental shelf.
    Bureau of Land Management (BLM) Report to Congress: The BLM, 
another agency within the Department of Interior, was required by 
Section 714 of the Energy Independence and Security Act (EISA) of 2007 
(Pub. L. 110-140, HR 6) to prepare a report outlining a regulatory 
framework that could be applied to lands managed by the Bureau for 
natural resource development, chiefly oil and gas. With assistance from 
both EPA and the DOE, BLM submitted a Report to Congress titled 
``Framework for Geological Carbon Sequestration on Public Land'' (BLM, 
2009). This report affirms BLM's role in appropriately managing Federal 
lands where GS injection projects may be sited. Additionally, the 
report makes recommendations regarding approaches for effective 
regulation of such activities under existing Federal authorities 
including the SDWA and UIC program requirements.
    United States Geological Survey (USGS) GS Capacity Methodology: 
USGS, another agency within the Department of Interior and the primary 
Federal agency responsible for national geological research, has been 
an active participant with DOE and EPA at conferences and workshops on 
CCS. In 2008, in response to the EISA, USGS initiated development of a 
methodology for estimating the capacity to store CO2 in 
geologic formations of the U.S. While previous capacity estimates 
published by DOE/National Energy Technology Laboratory (NETL) have been 
broad in scope (i.e., geologic basin-wide), the USGS is focusing on 
small-scale, refined estimates. In 2009, USGS published a proposed, 
risk-based methodology for GS capacity estimation. After input from 
other agencies and stakeholders, USGS released a final report: A 
Probabilistic Assessment Methodology for the Evaluation of Geologic 
Carbon Dioxide Storage (USGS, 2010). The report is available at https://pubs.usgs.gov/of/2010/1127/. USGS continues to work on capacity 
estimation as required under the EISA.
    Internal Revenue Service (IRS) Guidance for Tax Incentives for GS 
Projects: In response to the Energy Improvement and Extension Act of 
2008, IRS, in consultation with EPA and DOE, issued guidance 2009-44 
IRB (IRS, 2009) for taxpayers seeking to claim tax credits for 
capturing and sequestering CO2 from a qualified facility in 
the U.S. Under section 45Q of the Internal Revenue Code, a taxpayer who 
stores CO2 under the predetermined conditions may qualify 
for the tax credit ($10 per metric ton of qualified CO2 at 
ER projects; $20 per metric ton of qualified CO2 for non-ER 
projects). The taxpayer will be responsible for maintaining records for 
inspection by the IRS and tax credit amounts will be adjusted for 
inflation for any taxable year beginning after 2009. The Internal 
Revenue Service published IRS Notice 2009-83 (available at: https://www.irs.gov/irb/2009-44_IRB/ar11.html#d0e1860) to provide guidance 
regarding eligibility for the section 45Q tax credit, 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 geological storage of CO2.''
    Following publication of today's final Class VI requirements, and 
as clarified in the guidance, taxpayers claiming the section 45Q tax 
credit must follow the appropriate UIC requirements (e.g., Class II or 
Class VI). The guidance also clarifies that taxpayers claiming section 
45Q tax credit must follow the GS monitoring, reporting, and 
verification procedures finalized in the CO2 Injection and 
GS Reporting Rule that is part of the GHG Reporting Program.
    General Accountability Office Reports on GS and CCS: The United 
States General Accountability Office (GAO) has prepared, or is in the 
process of preparing, several reports for Congressional requestors 
related to the GS of CO2. In September 2008, GAO (GAO-08-
1080) completed a report related to assessing the application of CCS 
technologies entitled: Climate Change--Federal Actions Will Greatly 
Affect the Viability of Carbon Capture and Storage as a Key Mitigation 
Option (GAO, 2008). In September 2010, GAO released a report entitled: 
Climate Change, A Coordinated Strategy Could Focus Federal 
Geoengineering Research and Inform Governance Efforts (GAO-10-903) 
which describes innovative technologies that may alter climate change, 
details current research activities, and clarifies how coordination 
could inform subsequent climate science efforts. GAO initiated another 
report (GAO-10-675) focused on the methods by which coal-fired power 
plants may capture carbon emissions. The draft title of that study is: 
Coal Power Plants--Opportunities Exist for DOE to Provide Better 
Information on the Maturity of Key Technologies to Reduce Carbon 
Emissions (GAO, 2010).
    EPA will continue to coordinate internally and with other Federal 
agencies to promote consistency in existing and future GS and CCS 
initiatives.

E. What steps did EPA take to develop this rulemaking?

    Today's final rule builds upon longstanding programmatic 
requirements for underground injection that have been in place since 
the 1980s and that are used to manage over 800,000 injection wells 
nationwide. These programmatic requirements are designed to prevent 
fluid movement into USDWs by addressing the potential pathways through 
which injected fluids can migrate into USDWs and cause endangerment.
    EPA coordinated with Federal and non-Federal entities on GS and CCS 
to

[[Page 77238]]

determine how best to tailor existing UIC requirements to 
CO2 for GS.
    EPA has taken a number of steps in advance of today's action 
including: (1) Developing guidance for experimental GS projects; (2) 
conducting research; (3) conducting stakeholder coordination and 
outreach; (4) issuing a proposed rulemaking and soliciting and 
reviewing public comment; and, (5) publishing a Notice of Data 
Availability (NODA) and Request for Comment to seek additional input on 
the rulemaking.
1. Developing Guidance for Experimental GS Projects
    In 2007, EPA issued technical guidance to assist State and EPA 
Regional UIC programs in processing permit applications for pilot and 
other small scale experimental GS projects. The guidance was developed 
in cooperation with DOE and States, the Ground Water Protection Council 
(GWPC), the Interstate Oil and Gas Compact Commission (IOGCC), and 
other stakeholders. UIC Program Guidance #83: Using the Class V 
Experimental Technology Well Classification for Pilot Carbon GS 
Projects (USEPA, 2007) provides recommendations for permit writers 
regarding the use of the UIC Class V experimental technology well 
classification at demonstration GS projects while ensuring USDW 
protection. Program guidance 83 is available at: https://www.epa.gov/safewater/uic/wells_sequestration.html. EPA is preparing 
additional guidance for owners or operators and Directors regarding the 
use of Class V experimental technology wells for GS following 
promulgation of today's rule.
2. Conducting Research
    EPA participated in and supported research to inform today's 
rulemaking including: Supporting and tracking the development and 
results of national and international CO2 GS field and 
research projects; tracking GS-related State regulatory and legislative 
efforts; and conducting technical workshops on issues associated with 
CO2 GS. EPA described these research activities in detail in 
the proposed rule (July 2008) and the NODA and Request for Comment 
(August 2009). Additional information pertaining to these activities, 
which are summarized below, may be found in the rulemaking docket.
a. Tracking the Results of CO2 GS Research Projects
    To inform today's rulemaking, EPA tracked the progress and results 
of national and international GS research projects. DOE leads field 
research on GS in the U.S. in conjunction with the Regional Carbon 
Sequestration Partnerships (RCSPs). Currently, DOE's NETL is developing 
and/or operating GS projects, a number of which have either completed 
injection or are in the process of injecting CO2. The seven 
RCSPs are conducting pilot and demonstration projects to study site 
characterization (including injection and confining formation 
information, core data and site selection information); well 
construction (well depth, construction materials, and proximity to 
USDWs); frequency and types of tests and monitoring conducted (on the 
well and on the project site); modeling and monitoring results; and 
injection operation (injection rates, pressures, and volumes, 
CO2 source and co-injectates). See section II.E.5 for more 
information on the status of these projects.
    Lawrence Berkeley National Laboratory (LBNL) research: EPA and DOE 
are jointly funding work by the LBNL to study potential impacts of 
CO2 injection on ground water aquifers and drinking water 
sources. The preliminary results have been used to inform today's 
rule