EPA's Regulatory Approach : Climate Mitigation via Sequestration of CO2:

1. EPA's Regulatory Approach: Climate Mitigation via Sequestration of CO2: by Rob Ferri (EPA - Underground Injection Control) This presentation has not been reviewed by EPA. The views presented are those of the author and do not necessarily reflect those of the United States Environmental Protection Agency. All commercial products or entities that may have been mentioned or depicted in photographs is implied - all such mention or depiction is for illustrative purposes only.

2. Background • CO2 is one of the greenhouse gases which may contribute to global warming and climate change • It is produced by the burning of fossil fuels, such as oil, natural gas and coal, as well as natural events on Earth • Reduction of CO2 is being pursued by the federal government as an environmentally-positive measure • In order to achieve substantive CO2 reductions, only geologic sequestration offers practical technology and the means to emplace very large volumes - Injection Wells

3. Current Well Classes • Class I Wells • deep disposal of • manufacturing process • waste, RCRA • & radioactive waste • Class II Wells • Enhanced oil recovery by injection of produced brines or • CO2 & crude oil (storage) • Class III Wells • “solution mining” w/ • Injected steam or water • (Morton Salt) • Class IV Wells • Banned except as part of an • authorized • clean-up. • Class V Wells • storm water dry • wells, cesspools, geothermal wells, & experimental wells The Underground Injection Control Program regulates well injection and protects Underground Sources of Drinking Water from contaminants injected into the ground by wells. Carbon dioxide can cause harm (acidify) to an aquifer. EPA directly implements the UIC program in NY. NJ Department of Environmental Protection regulates the program in NJ.

4. Regulatory Dilemma • Carbon sequestration (CS) wells are classified as Class V • experimental wells • CS wells are regulated as if they were Class I non-hazardous • waste wells • Most experience with carbon sequestration has been as Class II • enhanced oil recovery wells

5. Class II EOR/EGR Wells • Owner/operators may transition to GS project • Are authorized under a separate section of the SDWA and are typically regulated by “oil and gas” agencies • Not effected by this rulemaking so long as the reservoir/field is being produced • Non endangerment provision for EOR/EGR wells continues to apply

6. Regulatory Approach • EPA Administrator convened representatives from EPA, state co-regulators, and the Department of Energy to write new regulations • The rule proposes minimum federal requirements for GS of CO2 based on the existing UIC regulatory framework • Proposed rule published July 2008 • Public Hearings - 9/30/08 Chicago & 10/2/08 Denver

7. GS Well CO2 plume Proposed Regulations • Geologic siting (must have • a confining zone) • Area of review and corrective • actions (based on modeling) • Injection well construction • (cement & additives must be • compatible w/CO2 & of a • quality & quantity to maintain • integrity over the design life of • the project) • Injection well operation • (automatic shutoff valves)) I

8. Proposed Regulations • Mechanical integrity testing (every year) • Plume and pressure front monitoring (continuous monitoring & pressure falloff test every five years) • Recordkeeping and reporting (air and surface monitoring) (semi- annual reports) • Well plugging and post-injection care (flush each well with a buffer fluid & conduct a final MIT) • Financial responsibility and long-term care. (post-injection care period)

9. USDWs Confining Zone Injection Zone Rulemaking Background: Scope • The scope of the proposed rule will be limited to authorities under the Safe Drinking Water Act, which requires EPA to develop minimum federal requirements for state and tribal UIC programs to protect underground sources of drinking water (USDWs) • The proposal will not address accounting for climate impacts (e.g. carbon credits or releases to the atmosphere)

10. Potential Carbon Sequestration Areas There are enhanced oil recovery wells and depleted oil and gas basins in western NY (suggested for CO2 storage) and deep saline aquifers in southern NJ (that would require more study of the geology).

11. New JerseyCS Options • A deep saline aquifer runs • through Southern NJ coastal • plain • The only viable location • suitable for injection • lies offshore, where the • aquifer deepens, and has a • secure confining layer and • other geologic structures to • sequester CO2 Depth in Feet of Deep Saline Aquifer Formation

12. New York CS Options Best options currently available are to use deep saline aquifers and depleted oil and gas reservoirs in the Southern Tier of the state. Governor Paterson issued a $6 million grant supporting a Coal Plant with CCS in Jamestown NY.