vvEPA FACT SHEET State of Louisiana Underground Injection Control Program Class VI Primacy Final Rule December 2023 Carbon capture and storage technologies play a crucial role in decarbonizing the global economy and meeting the Biden-Harris Administration's goal of achieving a net zero economy by 2050, while cutting pollution and creating good-paying, clean energy jobs in communities across the nation. The Biden-Harris Administration is committed to ensuring that carbon management projects are designed, built, and operated safely and responsibly, and in a way that reflects the best science and responds to the needs and inputs of local communities while centering environmental justice and equity. The State of Louisiana has been granted primary responsibility of Class VI wells under the Underground Injection Control Program (UIC), which regulates the injection of carbon dioxide (C02) into deep rock formations. EPA will remain the permitting authority for all well classes on Indian land within Louisiana and will oversee Louisiana's administration of the SDWA Class I, II, III, IV, V and VI wells. Background Under the Safe Drinking Water Act (SDWA), the Underground Injection Control (UIC) Class VI program ensures that when carbon dioxide is stored underground to reduce greenhouse gases and mitigate climate change, underground sources of drinking water are protected. As a part of this program, EPA may grant primary enforcement responsibility, often called primacy, to a state, territory, or Tribe. Activities performed by the primacy agency include, but are not limited to, ensuring compliance and enforcing program regulations as well as reviewing and issuing permit applications. Application Submission On September 17, 2021, Louisiana submitted to EPA a program revision application to add Class VI injection wells to the state's existing UIC program. Under the SDWA, EPA is required to review primacy applications to determine if the applicant's proposed program meets stringent federal regulations and to evaluate the effectiveness of the proposed program. EPA conducted a comprehensive review of the state's application. On May 4, 2023, EPA published a proposed rule in the Federal Register to approve the state of Louisiana's application to implement a UIC program for Class VI injection wells within the state. EPA held a 60-day public comment period ending on July 3, 2023, including a three-day in-person public hearing from June 21-23, 2023, in Baton Rouge, LA and a virtual public hearing on June 30, 2023. Notice of Availability of New Information During EPA's public comment period, Louisiana signed into law Act. No. 378, which revised portions of Louisiana's law relevant to LDNR's application, effective June 14, 2023. On June 30, 2023, the Louisiana Department of Natural Resources (LDNR) supplemented its Class VI primacy application to include Act No. 378. In response, on August 16, 2023, EPA published a Notice of Availability in the Federal Register, providing an additional 30-day comment period specific to LDNR's supplement to its primacy application, since this information was not available for public review and comment at the time of the proposal. The public comment period for the Notice of Availability ended on September 15, 2023. Page 1 of 3 ------- Final Rule After considering input from four public hearings and an extensive review of over 45,000 comments received from the proposal and the Notice of Availability, EPA determined that the State of Louisiana's Class VI UIC program meets all requirements for approval and the state will implement and enforce a Class VI UIC program consistent with the Safe Drinking Water Act. The Louisiana Department of Natural Resources will be the permitting authority for Class VI UIC wells. EPA will remain the permitting authority for all well classes on Indian land within Louisiana and will oversee Louisiana's administration of the SDWA Class I, II, III, IV, V and VI wells. Environmental Justice Considerations As we uphold our mission to protect public health and the environment, EPA is committed to advancing environmental justice for overburdened communities. On December 9, 2022 and January 11, 2023, EPA Administrator Michael S. Regan sent letters to governors and Tribal leaders calling for partnership to advance the twin goals of combating climate change and supporting environmental justice. Additionally, on August 17, 2023, EPA released a Memorandum on Environmental Justice Guidance for Class VI Permitting and Primacy. As part of developing this final rule, EPA worked with the State of Louisiana to adopt the environmental justice approaches encouraged in the letter, which Louisiana incorporated into their primacy application, including incorporating additional mitigation measures where appropriate for Class VI projects to address effects on already overburdened communities from all Class VI activities throughout the lifetime of the project. While the scope of Louisiana's UIC Program (and this primacy decision) is designed to protect Underground Sources of Drinking Water (USDWs(, LDNR stated in its Class VI Memorandum of Agreement (MOA) addendum that it may work within its legal authority under state law to employ a range of mitigation measures to ensure that Class VI projects do not increase environmental impacts and public health risks in already overburdened communities. For example, LDNR's MOA addendum said such residential protection measures could include carbon dioxide monitoring and release notification networks, installation of enhanced pollution controls, or other measures to offset impacts by improving other environmental amenities for affected communities and providing resources for clean-up of previously degraded public areas. On November 2, 2023, EPA announced grant allocations for states and Tribes to tap into over $48 million in funding through President Biden's Investing in America agenda to develop and implement UIC Class VI programs. Louisiana is among the 25 states and Tribes that submitted a letter of intent to participate in the new grant program and has been allocated $1,930,000. As a condition of receiving funding, Louisiana must demonstrate how environmental justice and equity considerations will be incorporated into their UIC Class VI primacy program. Class VI Wells Under the UIC Program Class VI wells are used to inject C02 into deep rock formations for the purpose of long-term underground storage, also known as geologic sequestration. Geologic sequestration, when used as a part of carbon capture and storage and carbon dioxide removal projects, is a promising tool for reducing the amount of carbon dioxide in the atmosphere. Class VI injection wells are regulated under an existing, rigorous SDWA permitting framework that protects USDWs. Requirements for Class VI Wells The UIC Class VI program provides safeguards to protect USDWs. Owners or operators that wish to inject carbon dioxide for the purpose of geologic sequestration must demonstrate that their injection well will meet stringent regulatory requirements and receive a Class VI permit for each well. The UIC Page 2 of 3 ------- Class VI program requires applicants to meet requirements to obtain a Class VI permit, including: • Site characterization to ensure the geological formations below ground in the project area will effectively contain the carbon dioxide within the zone where it will be injected. • Modeling to define the area where the carbon will be stored over the lifetime of operation. • Evaluation to ensure all potential pathways for fluid movement have been identified and addressed through corrective action. • Well construction requirements that ensure the Class VI injection well will not leak carbon dioxide. • Testing and monitoring throughout the life of the project, including after carbon dioxide injection has ended. Requirements include testing to ensure physical integrity of the well, monitoring for seismic activity near the injection site, monitoring of injection pressure and flow, chemical analysis of the carbon dioxide stream that is being injected, and monitoring the extent of the injected carbon dioxide plume and the surrounding area (e.g., ground water) to ensure the carbon dioxide is contained. • Operating requirements to ensure the injection activity will not endanger USDWs or human health. • Financial assurance mechanisms sufficient to cover the cost for all phases of the geologic sequestration project including the post injection site care period and until the Director approves site closure. • Emergency and remedial response plans. • Reporting of all testing and monitoring results to the permitting authority to ensure the well is operating in compliance with all permit and regulatory requirements. The permitting authority ensures that these protective requirements are included in each Class VI permit. A draft of each Class VI permit is made available to the public for comment before a final permit is issued. UIC Program and Primary Enforcement Authority (Primacy) SDWA Section 1422 directs EPA to establish requirements that states, territories, and federally recognized Tribes (hereafter referred to as applicants) must meet to be granted primary enforcement responsibility or "primacy" for implementing a UIC program, including a Class VI program. An applicant seeking primacy under SDWA Section 1422 for a Class VI program must demonstrate to EPA that the applicant's Class VI program is as stringent as the federal requirements and is protective of USDWs, including that the applicant has jurisdiction over underground injection and regulatory provisions for necessary administrative, civil, and criminal enforcement penalty remedies under SDWA. To be approved for Class VI primacy under SDWA Section 1422, an applicant must have a UIC program that meets federal requirements (40 CFR Parts 124, 144, 145, and 146). Page 3 of 3 ------- |