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Reducing Liability for Sequestration Projects

MCLI Recommendation: “Congress can authorize DOI and DOE to own and control several sequestration sites.”

LPDD Recommendation: “Congress could require emitters and storers of CO2 to pay a fee to fund a liability program in exchange for certain limits on their potential liability for damages resulting from sequestration.”

LPDD Recommendation: “EPA could shorten the time frame for which owners and operators of sequestration wells would be liable under the underground injection control program, provided that the scientific support for such relief is demonstrated on a site-specific basis.”

LPDD Recommendation: “Existing insurers can expand their products. More insurers can enter the market.”

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9 resources

Example States and State Governments

North Dakota liability release regulation

North Dakota has established a trust fund, funded by a fee on each ton of sequestered carbon dioxide, that pays for long-term monitoring and maintenance of transferred carbon dioxide. Ten years after ...
Example States and State Governments

Illinois’ SAFE CCS Act

Passed in July 2024, Illinois’ Safety and Aid for the Environment in Carbon Capture and Sequestration Act establishes regulations on carbon capture and storage, and places a two year moratorium on car...
Resource Congress

Report, Long Term Liability for Carbon Capture and Storage in Depleted North American Oil and Gas Reservoirs

Ingelson et al.’s 2011 report surveys government efforts to manage long-term liability from carbon sequestration projects. It recommends a pooling approach to the management of remediation and reclama...
Resource Congress

Report of the Interagency Task Force on Carbon Capture and Storage

The Report of the Interagency Task Force on Carbon Capture and Storage assesses the status of CCS technologies, current barriers to deployment, regulatory frameworks at the state and federal levels, a...
Resource Congress

Report, Advancing Carbon Sequestration Research in an Uncertain Legal and Regulatory Environment

Hart’s 2009 report recommends the federal government adopt policies that provide a legal framework that supports CCS research, specifically a shield from property-related and long-term liabilities ass...
Example States and State Governments

Pennsylvania’s Carbon Capture and Sequestration Act

In July 2024, Pennsylvania enacted SB 831, or the Carbon Capture and Sequestration Act, into law. The law declares carbon dioxide storage to be in the public interest and provides a regulatory framewo...
Example States and State Governments

Wyoming special revenue account for CCS maintenance

Wyoming has established an industry-funded trust fund for measurement, monitoring, and verification of CCS injection sites after site closure.
Example States and State Governments

Louisiana CCS liability release regulation

Louisiana has enacted legislation to limit private liability for sequestration of captured carbon dioxide by transferring ownership of sequestered carbon dioxide to the state after 10 years (contingen...
Model Law States and State Governments

LPDD Model Law: State Legislation for the Geologic Storage of Carbon Dioxide

Carbon capture and sequestration (CCS) involves capturing carbon dioxide at power plants, refineries, petrochemical plants, cement plants and other sources, compressing the carbon dioxide and transpor...