New Monitoring and Reporting of Greenhouse Gases Associated with CO2 Injection and Geologic Sequestration

April 12, 2010 EPA proposed monitoring and reporting of GHGs associated with CO2 injection and Geologic Sequestration. The comment period closes June 11, 2010.  (40 CFR 98 Subpart RR; 75 FR 18575-18606)

 

EPA first proposed that suppliers of CO2 be subject to mandatory GHG reporting requirements in April, 2009 and finalized the rule for suppliers of CO2 to the economy on October 30, 2009 in Subpart PP. Subpart PP applies to all facilities with CO2 production wells, facilities with production process units that capture and supply CO2 for commercial applications or that capture and maintain custody of a CO2 stream to sequester or otherwise inject it underground, and to importers and exporters of bulk CO2. During the public comment period on Subpart PP, EPA received many comments that CO2 injected underground should be considered when estimating emissions from the CO2 supply industry. Some of the CO2 supplied for the purposes of enhanced oil and gas recovery is additionally sequestered rather than emitted and commenters noted that enhanced oil and gas recovery operations should be considered “closed systems” rather than emitting systems. Other commenters stated that including reporting requirements for geologically sequestered CO2 would fill a critical gap in the reporting system. In agreement with these comments, EPA’s April 12th, proposal is intended to assist EPA in quantifying the amount of CO2 that is permanently and securely geologically sequestered. Therefore EPA is proposing to amend the Mandatory Reporting of Greenhouse Gases Program at 40 CFR Part 98 adding Subpart RR for reporting requirements covering facilities that conduct injection and “Geologic Sequestration” of CO2.

   

EPA is proposing a tiered approach: The first tier of proposed regulations would establish a set of reporting requirements that would cover all facilities that inject CO2 underground. All facilities would be required to report CO2 transferred onsite from offsite sources, the source of the CO2 (if known), and CO2 injected underground.  The second tier of reporting requirements would apply to Geologic Sequestration facilities. Geologic Sequestration facilities would be required to calculate CO2 sequestered by subtracting total CO2 emissions from the CO2 injected in the reporting year. The emitted quantity would include the injected CO2 that leaked from the subsurface to the surface (if any), CO2 produced with oil or natural gas where enhanced oil and gas recovery operations are conducted at the Geologic Sequestration facility, fugitive or vented CO2 emissions from surface equipment, and emissions from combustion sources located within the facility boundary, such as compressors.

 

Monitoring, reporting and verification (MRV) of potential CO2 leakage is also required. EPA recognized that the risk of leakage at a well-selected and well-managed Geologic Sequestration site is expected to be low, but considered it important for all facilities conducting Geologic Sequestration to demonstrate that they have met MRV standards.

 

EPA considered overlap between the proposed GHG reporting program and other programs, specifically the July 2008, amendment to the Underground Injection Control (UIC) program to establish a new class of injection well for Geologic Sequestration projects (73 FR 43492 (July 25, 2008)). The proposed rule requires CO2 injection facilities to report to EPA as Geologic Sequestration facilities under the CAA, regardless of their UIC permit classification. Under this proposal, any facility sequestering CO2 underground can choose to qualify and report as a Geologic Sequestration facility.

This article was authored by Barbara D. Little, Jackson Kelly PLLC. For more information on the author see here.