The Environmental Protection Agency (EPA) has formally granted Louisiana primacy to permit, site and provide oversight of carbon storage wells across the state. Permits for such wells and operations, commonly referred to as Class VI permits, are generally administered and regulated by the EPA. However, the EPA can grant primary regulatory authority to individual states
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CFTC Proposes Long-Awaited Guidance on Voluntary Carbon Credit Derivative Contracts
On Dec. 4, the Commodity Futures Trading Commission (CFTC) proposed guidance on the listing of voluntary carbon credit (VCC) derivative contracts. This proposed guidance comes after two voluntary carbon market convenings, in June 2022 and July 2023, at which the CFTC received extensive input from industry stakeholders about the lack of a recognized universal standard…
‘Hurry Up!’: The Senate Committee on Energy & Natural Resources Convened To Discuss Challenges in Deploying CCUS and DAC Technologies
On November 2, 2023, the Senate Committee on Energy & Natural Resources held a hearing to “Examine Opportunities and Challenges in Deploying CCUS and DAC Technologies on Federal and Non-Federal Lands.” Opening remarks were made by committee Chairman Sen. Joe Manchin and ranking member Sen. John Barrasso. A panel of witnesses gave testimony at the…
Despite Growing Federal Support, Carbon Capture and Storage Developers Face Permitting Challenges and Strong Local Opposition in the Midwest
Takeaways
- Despite federal and state efforts to incentivize development of carbon-capture projects, one major CO2 pipeline has been canceled, and another faces similar hurdles.
- Carbon-capture projects continue to face stiff local and state resistance despite being one of the key pieces of emission-reduction strategies.
- Early and substantive public engagement and government relations are key to
…
The Seven-Year Saga of Monterey County’s Measure Z Comes to a Close
In 2016, through a voter initiative called Measure Z, the people of Monterey County, California, enacted a ban on two features of oil and gas operations. One was a ban on injecting or impounding wastewater from operations. The other was a ban on drilling new wells.
Oil field operations occur inland from the coast of…
States Continue to Build Out Carbon Sequestration Regulatory Structure in First Half of 2023
With 45Q tax credits beginning to flow following passage of the Inflation Reduction Act of 2022, states continue to pass carbon sequestration legislation in the hopes of bolstering and luring industry engaged in carbon capture and sequestration (CCS) activities. While some states look to support pilot programs, other states are looking to build out a…
Bipartisan Bill Seeks Further Tax Incentives for Carbon Capture and Utilization Projects
On Feb. 28, the Captured Carbon Utilization Parity Act (CCU Parity Act) was introduced by Sen. Sheldon Whitehouse, D-R.I., and Sen. Bill Cassidy, R-La. The CCU Parity Act would increase the tax credit available for carbon capture and utilization to match the tax credit available for carbon capture and sequestration for both the direct air…
New CCUS Regulatory Handbook a Practical Guide for Stakeholders, Practitioners and Policymakers
Carbon capture, utilization and storage (CCUS) is primed to play a crucial role in setting the global energy system on a path to net zero. As a result, the United States has endeavored to incentivize investment in large-scale CCUS projects through substantial financial incentives such as the Section 45Q tax credit. More recently, the Biden…
Overview of the Inflation Reduction Act’s Methane Tax
Key Takeaways
- Section 60113 of the Inflation Reduction Act adds Section 136 to the Clean Air Act, imposing a first-ever direct “charge” on methane emissions.
- The charge is based on an unworkable comparison between the weight of methane emitted and the volume of the natural gas stream sent to sale.
- In light of West Virginia v.
…
Overview of the Inflation Reduction Act’s Methane Tax
Key Takeaways
- Section 60113 of the Inflation Reduction Act adds Section 136 to the Clean Air Act, imposing a first-ever direct “charge” on methane emissions.
- The charge is based on an unworkable comparison between the weight of methane emitted and the volume of the natural gas stream sent to sale.
- In light of West Virginia v.
…