Requirements for Long Term Carbon Dioxide (CO2) Storage
CO2 Responsibility Requirements – States have flexibility in regulating carbon dioxide (CO2) injection and storage under the Federal Underground Injection Control program. Some states have passed legislation specifying which state agencies are authorized to regulate Class II (Oil and Gas Related Injection Wells) and Class VI (Wells Used for Geological Sequestration of CO2) underground injection wells and how they may exercise their authority, including specifically which types of financial assurances and other responsibility requirements they may impose on CO2 injection and storage operators.
CO2 Storage Trust Fund – Several states have established a public trust fund to pay for a state’s long-term oversight of geologic storage of carbon dioxide (CO2). These funds are often intended for mitigation of any potential environmental damage arising from geologic storage of CO2. Typically, CO2 geologic storage project operators are to be assessed a fee for each ton of CO2 injected, which is to be deposited into the trust fund.