Carbon Dioxide Injection and Geologic Sequestration United States Environmental Protection Proposed Rule: Subpart RR, Mandatory Reporting of Greenhouse Gases Under the proposed subpart RR of the Mandatory Reporting of Greenhouse Gases (GHGs) rule, EPA is proposing reporting requirements for facilities that inject carbon dioxide (CO2)for the purpose of geologic sequestration (GS) or to enhance oil and gas recovery. How Is This Source Category Defined? EPA is proposing that all facilities that inject CO2 for purposes of enhanced oil and gas recovery or for long-term geologic sequestration report basic information on CO2 injected underground. In this proposal, "CO2 injection facilities" are defined as a well or a group of wells that inject CO2 into the subsurface or sub-seabed geologic formations. This definition would encompass both onshore and offshore facilities. For those facilities that inject CO2 for the purpose of long-term geologic sequestration, additional reporting and monitoring would be required. "Geologic sequestration facilities" are a subset of CO2 injection facilities that inject CO2 specifically for the purpose of long-term containment of CO2 in subsurface geologic formations. Geologic sequestration research and development projects would be required to report basic data on injected CO2, but would not be required to monitor or report the additional information required for geologic sequestration. These projects could choose to opt-in to the geologic sequestration reporting and monitoring requirements however. Geologic sequestration research and development projects are those that receive federal funding for the purpose of researching the practices and monitoring techniques that will enable safe and effective long-term sequestration of CO2 in the subsurface and that are not commercial or demonstration projects. This source category does not include certain facilities that store CO2 above ground; temporarily store CO2 below ground; transport or distribute CO2; or that store CO2 in cement, precipitated calcium carbonate, or any other application that does not involve injection of CO2 into the subsurface. What GHGs Would Be Reported? EPA is proposing that all facilities that inject CO2 for purposes of enhanced oil and gas recovery or long- term geologic sequestration report basic information on CO2 injected underground. In addition, geologic sequestration facilities that inject CO2 for the purpose of long-term containment in subsurface geologic formations, including facilities that opt-in to the additional monitoring and reporting requirements for these facilities, would report the amount of CO2 geologically sequestered using a mass balance approach. Geologic sequestration facilities would develop and (after approval by EPA) implement a monitoring, reporting, and verification (MRV) plan for determining the amount of CO2 that is sequestered. March 2010 ------- What Information Would Be Reported? All facilities that inject CO2 for purposes of enhanced oil and gas recovery or long-term geologic sequestration would be required to report the following annually: • The mass of CO2transferred onsite from offsite sources. • The mass of CO2 injected into the subsurface. • The source of the CO2, from the following categories: o CO2 production wells o Electric generating units o Ethanol plants o Pulp and paper mills o Natural gas processing o Other anthropogenic sources o Unknown In addition to the reporting requirements listed above, geologic sequestration facilities that inject CO2 for the purpose of long-term containment in subsurface geologic formations would be required to submit an MRV plan to EPA, implement the approved plan, and report annually the following: • The mass of fugitive and vented CO2 emissions from surface equipment at the facility, if not reported under the proposed Petroleum and Natural Gas Systems (subpart W) of the MRR • The mass of CO2 produced with oil or gas, if applicable. • The mass of CO2 emitted to the surface from the subsurface, if applicable. • The mass of CO2 sequestered in the subsurface geologic formation. How Would GHG Data Be Calculated? Under the proposal, all facilities that inject CO2 for the purposes of enhanced oil and gas recovery or geologic sequestration would calculate the following: • The mass of CO2 transferred onsite from offsite sources using mass or volumetric flow meters and based on the CO2 concentration in the flow. • The mass of CO2 injected using mass or volumetric flow meters and based on the CO2 concentration in the flow. Where flow meters are used to calculate data under this proposal, CO2 flow and concentration data would be collected quarterly and aggregated to an annual quantity. To minimize the purchase and installation of new equipment, facilities subject to the Underground Injection Control (UIC) program could utilize the CO2 flow meters installed for purposes of compliance with their existing UIC permits in order to calculate the CO2 injection data. Each geologic sequestration facility (including facilities that opt-in to these requirements) would also develop and implement an EPA-approved monitoring, reporting, and verification (MRV) plan which would include: • An assessment of the risk of CO2 leakage to the surface. • A strategy for detecting and quantifying any CO2 leakage to the surface. • A strategy for establishing pre-injection environmental baselines. March 2010 ------- • A summary of considerations made to calculate site-specific variables for the mass balance equation. Once its site-specific MRV plan is implemented, a geologic sequestration facility would calculate the following: • The mass of fugitive and vented CO2 emissions from surface equipment at the facility using methodologies in proposed subpart W (Petroleum and Natural Gas Systems) of the MRR. • If applicable, the mass of CO2 produced from oil or gas production wells • If applicable, the mass of any CO2 emitted to the surface from the subsurface. • The mass of CO2 sequestered using a mass balance approach. For More Information Information on the proposed amendment and supporting background information is available electronically at www.regulations.gov. EPA's electronic public docket and comment system. The Docket ID number is: EPA-HQ-OAR-2009-0926. Instructions on submitting comments can be found in the preamble and on the EPA Web site at: www.epa.gov/climatechange/emissions/ghgrulemaking.html. Information is also available at the EPA Docket Center (EPA/DC) Public Reading Room. Please call 202- 566-1744 between the hours of 8:30 A.M. and 4:30 P.M. Eastern Time for more information. For additional information about this rulemaking, visit EPA's Web site at: www.epa.gov/climatechange/emissions/ghgrulemaking.html. If you have questions that cannot be answered through the Web site, please contact us by filling out the form at www.epa.gov/climatechange/emissions/ghgrule contactus.htm. For background information about GHGs and climate change science and policy, please see EPA's climate change Web site at: www.epa. gov/climatechange. This document is provided solely for informational purposes. It does not provide legal advice, have legally binding effect, or expressly or implicitly create, expand, or limit any legal rights, obligations, responsibilities, expectations, or benefits in regard to any person. This information is intended to assist reporting facilities/owners in understanding key provisions of the final rule. March 2010 ------- |