The Nickel Report

On January 5, 2024, EPA approved Louisiana’s application to administer the Class VI underground injection control program (UIC). 89 Fed. Reg. 703. Class VI wells are used to inject carbon dioxide into deep geological formations for long-term underground storage. This technology is a promising tool for reducing carbon dioxide emissions to the atmosphere.

EPA’s grant of “primacy” to Louisiana for the Class VI program will allow the state’s Department of Natural Resources to issue UIC permits for Class VI wells, and to ensure compliance with the program. Louisiana submitted its application for Class VI primacy on September 17, 2021. It becomes the third state with primacy over Class VI wells, joining North Dakota (granted primacy in 2018) and Wyoming (2020). Louisiana is the first state to receive primacy over Class VI wells during the Biden administration. Several other states—including Texas, West Virginia, and Arizona, according to the EPA’s website—currently are seeking primacy.

On April 27, 2023, the Environmental Protection Agency (EPA) published a Proposed Rule to grant Louisiana primacy to administer and enforce the Class VI Underground Injection Control (UIC) program within its borders. EPA approval of Louisiana’s primacy application would authorize the Louisiana Department of Natural Resources (LDNR) to issue UIC permits for Class VI geologic carbon sequestration facilities and undertake compliance enforcement for such facilities located within the state. EPA has determined that Louisiana’s application meets the necessary requirements for approval and is soliciting public comments on the proposal. One of the major sticking points in EPA’s approval of Louisiana’s program has been the approach to incorporating environmental justice (EJ) into the Class VI permit process. LDNR has agreed to implement a number of EJ-focused elements into the permitting process, including robust EJ analysis and public participation.

On March 29 the US House of Representatives adopted by voice vote an amendment offered by Reps. Dan Crenshaw (R-TX) and August Pfluger (R-TX) to speed up Environmental Protection Agency (EPA) review of state applications for primacy to run the Class VI Underground Injection Control (UIC) program. The amendment was included in H.R. 1, the Lower Energy Costs Act, the high-profile energy and permitting reform bill the House approved on March 30.

The UIC program is designed to prevent endangerment of underground sources of drinking water from subsurface injections. The Class VI program specifically regulates the geologic sequestration of carbon dioxide, which is considered to be essential for the world to meet international emission reduction targets.