碳捕获、利用和储存（CCUS）的法律和监管框架（英）-国际能源署VIP专享VIP免费

下载本文档

阅读 73
格式 pdf
大小 5.94 MB
约111页
2023-04-18
收藏
点赞(0)
海报
举报

Legal and Regulatory

Frameworks for CCUS

An IEA CCUS Handbook

The IEA examines the full spectrum of

energy issues including oil, gas and

coal supply and demand, renewable

energy technologies, electricity

markets, energy efficiency, access to

energy, demand side management

and much more. Through its work, the

IEA advocates policies that will

enhance the reliability, affordability

and sustainability of energy in its 31

member countries, 11 association

countries and beyond.

Please note that this publication is

subject to specific restrictions that

limit its use and distribution. The

terms and conditions are available

online at www.iea.org/t&c/

This publication and any map included herein are

without prejudice to the status of or sovereignty

over any territory, to the delimitation of

international frontiers and boundaries and to the

name of any territory, city or area.

International Energy Agency

Website: www.iea.org

IEA member countries:

Australia

Austria

Belgium

Canada

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Japan

Korea

Lithuania

Luxembourg

Mexico

Netherlands

New Zealand

Norway

Poland

Portugal

Slovak Republic

INTERNATIONAL ENERGY AGENCY

Spain

Sweden

Switzerland

Republic of Türkiye

United Kingdom

United States

IEA association countries:

Argentina

Brazil

China

Egypt

India

Indonesia

Morocco

Singapore

South Africa

Thailand

Ukraine

CCUS Legal and Regulatory Handbook

PAGE | 3

Abstract

Carbon capture, utilisation and storage (CCUS) technologies are

set to play an important role in putting the global energy system on

a path to net zero. Successfully deploying CCUS relies on the

establishment of legal and regulatory frameworks to ensure the

effective stewardship of CCUS activities and the safe and secure

storage of CO2.

Several countries have already developed comprehensive legal and

regulatory frameworks for CCUS. These form a valuable knowledge

base for the growing number of countries that have identified a role

for CCUS in meeting their climate goals, but which are yet to

establish a legal foundation for CCUS, and particularly for CO2

storage. Increasingly, existing frameworks are also being tested as

more commercial CCUS projects are developed, with important

learnings for regulators.

This IEA CCUS Handbook is a resource for policy makers and

regulators on establishing and updating legal and regulatory

frameworks for CCUS. It identifies 25 priority issues that

frameworks should address for CCUS deployment, presenting

global case studies and examining how different jurisdictions have

approached these issues. The handbook is supported by a web-

based legal and regulatory database, and model legislative text that

is found at the end of this report.

/111

下载本文档

文本预览下载提示常见问题

LegalandRegulatoryFrameworksforCCUSAnIEACCUSHandbookTheIEAexaminesthefullspectrumofenergyissuesincludingoil,gasandcoalsupplyanddemand,renewableenergytechnologies,electricitymarkets,energyefficiency,accesstoenergy,demandsidemanagementandmuchmore.Throughitswork,theIEAadvocatespoliciesthatwillenhancethereliability,affordabilityandsustainabilityofenergyinits31membercountries,11associationcountriesandbeyond.Pleasenotethatthispublicationissubjecttospecificrestrictionsthatlimititsuseanddistribution.Thetermsandconditionsareavailableonlineatwww.iea.org/t&c/Thispublicationandanymapincludedhereinarewithoutprejudicetothestatusoforsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofanyterritory,cityorarea.Source:IEA.Allrightsreserved.InternationalEnergyAgencyWebsite:www.iea.orgIEAmembercountries:AustraliaAustriaBelgiumCanadaCzechRepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNewZealandNorwayPolandPortugalSlovakRepublicINTERNATIONALENERGYAGENCYSpainSwedenSwitzerlandRepublicofTürkiyeUnitedKingdomUnitedStatesIEAassociationcountries:ArgentinaBrazilChinaEgyptIndiaIndonesiaMoroccoSingaporeSouthAfricaThailandUkraineCCUSLegalandRegulatoryHandbookPAGE3AbstractIEA.Allrightsreserved.AbstractCarboncapture,utilisationandstorage(CCUS)technologiesaresettoplayanimportantroleinputtingtheglobalenergysystemonapathtonetzero.SuccessfullydeployingCCUSreliesontheestablishmentoflegalandregulatoryframeworkstoensuretheeffectivestewardshipofCCUSactivitiesandthesafeandsecurestorageofCO2.SeveralcountrieshavealreadydevelopedcomprehensivelegalandregulatoryframeworksforCCUS.TheseformavaluableknowledgebaseforthegrowingnumberofcountriesthathaveidentifiedaroleforCCUSinmeetingtheirclimategoals,butwhichareyettoestablishalegalfoundationforCCUS,andparticularlyforCO2storage.Increasingly,existingframeworksarealsobeingtestedasmorecommercialCCUSprojectsaredeveloped,withimportantlearningsforregulators.ThisIEACCUSHandbookisaresourceforpolicymakersandregulatorsonestablishingandupdatinglegalandregulatoryframeworksforCCUS.Itidentifies25priorityissuesthatframeworksshouldaddressforCCUSdeployment,presentingglobalcasestudiesandexamininghowdifferentjurisdictionshaveapproachedtheseissues.Thehandbookissupportedbyaweb-basedlegalandregulatorydatabase,andmodellegislativetextthatisfoundattheendofthisreport.CCUSLegalandRegulatoryHandbookPAGE4IEA.Allrightsreserved.AcknowledgementsAcknowledgementsThisreportwaspreparedbytheCarbonCaptureUtilisatonandStorageUnitintheEnergyTechnologyPolicyDivisionattheInternationalEnergyAgency(IEA).ThereportwasdesignedanddirectedbySamanthaMcCulloch,HeadoftheCCUSUnit.TheleadauthorwasCarlGreenfield.ThereportbenefitedgreatlyfromapartnershipwiththeSciencesPoUniversityLegalClinic,withsubstantialresearchandanalysisundertakenbyMarineBrunier,AmandineCollard,AmjadElHafidi,MarieLorreandJingyuan(Cloé)Zeng.JeremyLageleeandRachaelBoyd,IEAOfficeoftheLegalCounsel,co-ordinatedandsupervisedtheSciencesPoresearchproject.AdamBaylin-Sternprovidedconsiderableinputtothedevelopmentofthereport.ThereportalsobenefitedfromvaluablefeedbackfromotherexpertswithintheIEA,includingSaraBudinis,MathildeFajardyandRachaelMoore.TheIEACommunicationsandDigitalOfficeassistedwithandcontributedtotheproductionofthefinalreportandwebsitematerials,particularlyAstridDumond,TalineShahinianandThereseWalsh.IvoLetraandBarbaraMourecontributedtotheweb-baseddevelopmentofthelegalandregulatorydatabase.ThereportwaseditedbyJustinFrench-Brooks.SeveralexpertsfromoutsidetheIEAwereconsultedduringthedevelopmentofthereport.Theircontributionswereincrediblyvaluable.Theseexpertsincluded:NigelBankesUniversityofCalgaryAdamBaylin-SternCarbonEngineering(formerIEA)BrendanBeckWorldBankGroupSabrinaBedjeraNaturalResourcesCanadaTylerChapmanNaturalResourcesCanadaTimDixonTechnologyCollaborationProgrammeonGreenhouseGasR&D(GHGTCP/IEAGHG)KathrynGagnonNaturalResourcesCanadaClaudeGauvinNaturalResourcesCanadaSallieGreenbergIllinoisStateGeologicalSurveyAnharKarimjeeUSDepartmentofEnergyArthurLeeChevronIainMacDonaldShellCarolynMilneShellAyamiSaimuraMitsubishiResearchInstituteYukimiShimuraMitsubishiUFGBankJocelynTaylorAustraliaDepartmentofIndustry,Science,EnergyandResourcesCCUSLegalandRegulatoryHandbookPAGE5IEA.Allrightsreserved.TableofcontentsTableofcontentsChapter1Introduction....................................................................................6Chapter2Developinglegalandregulatoryframeworks...........................19Chapter3Regulatoryfoundations...............................................................32Definingtheregulatoryscope.................................................................33Environmentalreviewsandpermitting....................................................37Enablingfirst-moverprojects..................................................................49Chapter4LegalandregulatoryissuesforCO2storage............................52Ensuringsafeandsecurestorage..........................................................54Addressinglong-termstorageliabilities..................................................67Chapter5InternationalconsiderationsandCCUShubs..........................72FacilitatingCCUShubs...........................................................................80Chapter6Otherkeyandemergingissues..................................................85Annex:Modelregulatorytext.......................................................................94CCUSLegalandRegulatoryHandbookPAGE6Chapter1IEA.Allrightsreserved.Chapter1IntroductionCCUSLegalandRegulatoryHandbookPAGE7Chapter1IEA.Allrightsreserved.ContextofthisCCUSHandbookonLegalandRegulatoryFrameworksMeetingnetzerogoalswillrequirewidespreaddeploymentofcarboncapture,utilisationandstorage(CCUS).CCUSistheonlygroupoftechnologiesthatcancontributetodeepemissionreductionsinkeysectors,includingheavyindustry,whilealsosupportingtheremovalofCO2fromtheatmosphere.IntheIEANetZeroEmissionsby2050Scenario(theNetZeroScenario),CCUSdeploymentgrowsbyafactorofalmost200toreachmorethan7.6billiontonnesofCO2capturedin2050.ThesuccessfulglobaldeploymentofCCUSatthisscalewilldependontheestablishmentofrobustlegalandregulatoryframeworksthatprovideeffectivestewardshipandoversightofCCUSactivities.Suchframeworkswillservemultipleobjectives,withtheforemostbeingtoensuresafe,secureandpermanentCO2storageindeepgeologicalformations.CCUSlawsandregulationsmustalsoensuretheprotectionoftheenvironmentandpublichealth,clarifytherightsandresponsibilitiesofCCUSstakeholders,andprovidealegalfoundationforthedevelopment,operationandlong-termmanagementofCO2storageresources.Importantly,effectiveregulationofCCUSactivitiescanhelptobuildpublicconfidencein,andacceptanceof,thetechnology.GlobalexperienceofregulatingCCUSactivitiesisgrowing.Morethan20nationalandsub-nationaljurisdictionshaveestablishedlawsandregulationsforCCUSandtheselawsareincreasinglybeingappliedasthepipelineofCCUSfacilitiesinoperationordevelopmentexpands.Atthestartof2022,around30commercialCCUSfacilitiesareoperatinginninecountries–somedatingbacktothe1970sand1980s.Althougharoundtwo-thirdsoftheseprojectsareconcentratedinNorthAmerica,commercialCCUSfacilitiesarenowunderdevelopmentinmorethan25countries.Forsomecountries,theseplannedfacilitieswillbeamongthefirsttotestexistinglegalandregulatoryframeworksforCCUS;forothers,newlawsandregulationsmayberequired.ThisIEACCUSHandbookisaresourcetodevelopandupdatelegalandregulatoryframeworksforCCUS.Itidentifies25priorityissuesthatframeworksshouldaddressforCCUSdeployment,andpresentsglobalcasestudiesonhowdifferentjurisdictionshaveapproachedtheseissues.ThehandbookissupportedbyacomprehensiveonlineCCUSLegalandRegulatoryDatabasethatprovidesexamplesoflegislativeapproachestoCCUSfromaroundtheworld.Thehandbookalsoupdatesthe2010IEACCUSModelRegulatoryFramework,withModelLegislativeTextprovidingsamplewordingasareferenceforrelevantauthoritieswhendevelopingtailoredCCUSlegislationfortheirnationalorregionalcontext.TheModelTextalsoprovidesexampledefinitionsofcommontermsusedwithinCCUSlegalandregulatoryframeworks.ThehandbookdoesnotconsiderlegislativeandpolicyapproachesthataimtoincentiviseinvestmentinCCUS,forCCUSLegalandRegulatoryHandbookPAGE8Chapter1IEA.Allrightsreserved.examplelegislationfortaxcreditsorgrantprogrammes.AlthoughsuchincentivesareimportantforthebroaddeploymentofCCUS,thefocushereisonthelegaloversightandregulationofCCUSactivities.Thehandbookisstructuredasfollows:Chapter1–IntroductionprovidesanoverviewoftheimportanceofregulatingCCUSactivitiesandidentifieskeyregulatoryissuesforCCUS.Chapter2–Developinglegalandregulatoryframeworksoutlinesthequestionspolicymakersshouldconsiderwhenformulatingregulations.Thechapteroffersasix-stepprocessintendedtohelpgovernmentsbeginthisprocess.Chapter3–RegulatoryfoundationsidentifiesthefundamentalregulatoryissuesthatprovideabaseforincorporatingCCUSactivitiesintoframeworks.Chapter4–KeyissuesforCO2storagelaysoutthelegalandregulatoryareasthatframeworksmustaddressinordertopromotesafeandsecuregeologicalstorage.Thischapterlooksathowvariousgovernmentsfromaroundtheworldhavetreatedsuchissuesasmeasurement,monitoringandverification,transferofstoragesitestewardship,andpost-siteclosureliabilities.Chapter5–InternationalissuesandCCUShubslooksatthevarietyoflegalandregulatoryissuesandimplicationsthatstemfromcross-borderprojects.Chapter6–OtherkeyandemergingissuesdetailsfurtherregulatoryconsiderationsasCCUStechnologiesgrowtomeetthedemandsofanetzerofuture.AbouttheIEACCUSHandbookseriesMeetingnetzerogoalswillrequirearapidscale-upofCCUSglobally,fromtensofmillionsoftonnesofCO2capturedtodaytobillionsoftonnesby2030andbeyond.TheIEACCUSHandbookseriesaimstosupporttheaccelerateddevelopmentanddeploymentofCCUSbysharingglobalgoodpracticeandexperience.Thehandbooksprovideapracticalresourceforpolicymakerstonavigatearangeoftechnical,economic,policy,legalandsocialissuesforCCUSimplementation.CCUSLegalandRegulatoryHandbookPAGE9Chapter1IEA.Allrightsreserved.TheroleofCCUSinreachingnetzeroambitionsCCUSreferstoasuiteoftechnologiesthatinvolvethecapture,useandstorageofCO2.TheCO2canbecapturedfromlargepointsources,includingpowergenerationandindustrialfacilitiesthatuseeitherfossilfuelsorbiomassforfuel.TheCO2canalsobecaptureddirectlyfromtheatmospherewithdirectaircapture(DAC)technologies.Ifnotbeingusedonsite,thecapturedCO2canbecompressedandtransportedbypipeline,ship,railortrucktobeusedinarangeofapplications,orinjectedintodeepgeologicalformations(includingdepletedoilandgasreservoirsandsalineaquifers),whereitistrappedandpermanentlystored.CCUScarriesconsiderablestrategicvalueasaclimatemitigationoptionandwillplayanimportantroleinmeetingnetzerogoals.IntheNetZeroScenario,morethan7.6billiontonnes(Gt)ofCO2arecaptured,transportedandusedorstoredgloballyin2050.CCUScontributestoemissionreductionsinalmostallpartsoftheenergysystem,withfourmajorroles:Tacklingemissionsfromexistingenergyassets.Ifleftunmitigated,today’spowerandindustrialplantscouldemitafurther600GtCO2untiltheendoftheirtechnicallives–nearly17years’worthofcurrentglobalenergysectoremissions.Thisisespeciallyimportantforemergingeconomieswithrelativelyyoungcoal-firedgenerationfleets.RetrofittingtheseplantswithCCUScanbeastrategicoptioninsomecasestohelpavoidemissionsthatmayotherwisebe“locked-in”.Reducingemissionsinhard-to-abatesectors.CCUSisoneofthefewavailableoptionstoreduceemissionsincertainsectors,suchasheavyindustry(cement,steelandchemicalsproduction)andlong-distancetransport(includingsyntheticfuelsforaviation).IntheNetZeroScenario,approximately40%oftheCO2capturedin2050isfromenergy-relatedemissionsandprocessemissionsfromheavyindustry.Providingaplatformforlow-carbonhydrogenproduction.CCUScansupportarapidscalingupoflow-carbonhydrogenproductiontomeetcurrentandfuturedemandfromnewapplicationsintransport,industryandbuildings.Removingcarbonfromtheatmosphere.Foremissionsthatcannotbeavoidedorreduceddirectly,CCUSrepresentsanimportanttechnologicalapproachforremovingcarbonanddeliveringanetzeroenergysystem.IntheNetZeroScenario,approximately2.4GtCO2arecapturedfrombioenergyandDACin2050,with1.9GtofthisCO2permanentlystoredforcarbonremovaltobalanceremainingemissionsintransportandindustry.CCUSLegalandRegulatoryHandbookPAGE10Chapter1IEA.Allrightsreserved.RegulatingCCUSrequiresconsiderationofthefullvaluechainSchematicoftheCCUSvaluechainIEA.Allrightsreserved.CCUSLegalandRegulatoryHandbookPAGE11Chapter1IEA.Allrightsreserved.TheimportanceofregulatingCCUSastheprojectpipelineexpandsThescale-upofCCUStechnologiesrequireslegalandregulatoryframeworkstoensuretheeffectivestewardshipofCO2storagesites,theprotectionofpublichealthandtheenvironment,andthesafetyofCCUSactivities.RegulatoryframeworksarealsorequiredtoclarifytherightsandresponsibilitiesofCCUSstakeholders,includingrelevantauthorities,operatorsandthepublic,andtoprovideclarityandcertaintytoprojectdevelopersandtheirinvestors.WhilelegalandregulatoryframeworksshouldconsiderallaspectsoftheCCUSvaluechain(capture,transport,useandstorage),CO2storageistypicallytheprimaryfocusasitcanpresentnovelandcomplexissuesforregulation.Forexample,frameworksmustclarifytheownership,stewardshipandliabilityforCO2thatistobestoredinperpetuity.Regulationsmustalsoensureappropriatesiteselectionandsafeoperations,andmitigateandmanagerisksacrossallstagesofsitedevelopment,operationandclosure.Further,theyshouldprovidealegalbasisforCO2storage,allocatingpropertyrightsandmanagingcompetitionforresources.RegulatoryissuesassociatedwithCO2capture,transportandusewilloftenfallwithinthescopeofexistingregulatoryframeworksforindustrialactivities,includingoilandgas,wastemanagement,health,safetyandenvironmentalconsiderationsforindustrialsites,propertyrightsandtransport.WhiletheseareasmayrequirelittleornomodificationtoexistingframeworksascomparedtoCO2storage,itisimportantthatgovernmentsreviewexistingdomesticandinternationalframeworksinordertoremoveanypotentialbarrierstoCCUSdeployment.ExperiencewithCCUSregulationisgrowingandevolvingIn2010theIEAreleasedaModelRegulatoryFrameworktosupportcountriesthatweredeveloping,orconsideringdeveloping,regulatoryapproachesforthelarge-scaledeploymentofCCUS.Themodelframeworkprovidedastartingpointfordevelopingregulations,with“ModelText”thatcouldbeamendedoraddedtoasappropriate.ThemodelframeworkhasbeenappliedinreviewsoflegalandregulatoryframeworksforMexicoandSouthAfrica(supportedbytheWorldBank),aswellasinothernationalandsub-nationalcontexts.Sincethepublicationofthemodelframework,substantialexperiencehasbeengainedintheregulationofCCUSprojects.Additionally,CCUSapplicationsandtechnologieshavecontinuedtoevolve,highlightingtheneedforflexibilityinregulatoryapproachesaswellastheneedtoreviewexistingframeworksperiodically.Around30commercialprojectshavestartedoperationsandthepipelineofprojectsindevelopmenthasnowgrowntomorethan200.WhileCCUShasbeenprimarilyusedinassociationwithnaturalgasprocessingorfertiliserproduction,agrowingnumberofprojectsforhydrogen,steel,bioethanolandpowerproductionapplicationsareeitheralreadyoperatingorcurrentlyplanned.CCUSLegalandRegulatoryHandbookPAGE12Chapter1IEA.Allrightsreserved.CCUSprojectshavealsoemergedinmorecountries.Priorto2010,mostprojectswerelocatedintheUnitedStates.WhiletheUnitedStatesstillhostsaroundhalfofallprojects,commercialprojectsaretodayoperatingineightothercountries,includingAustralia,Brazil,Canada,China,Norway,SaudiArabia,theUnitedArabEmiratesandQatar.Insomecases,thegrowingfleetofoperatingorplannedCCUSprojectshasprovidedanopportunitytoapplyandtestCCUSregulatoryframeworksthatwereestablishedmanyyearsago.Forexample,AustraliaandCanadahavehadlegalandregulatoryCCUSframeworksinplaceformorethanadecade(includingatsub-nationallevels).Meanwhile,othercountriesarenowstartingtheprocessofdevelopinglegalandregulatoryframeworksforCCUStomeetclimategoals.RegulatoryconsiderationsforCCUSdeploymenthavealsoevolvedsincethe2010ModelRegulatoryFramework.Forexample,thereisagrowingtrendtomovebeyondsingle-chainprojectsandinsteadtargetindustrialclustersandstoragehubs.AhubapproachcanenableCO2capturefrommultiplesourcesandpromotegreaterefficienciesandeconomiesofscale.Atthesametime,hubscantriggerarangeoflegalandregulatoryissuesrelatedtonetworkaccess,aswellasinternationalortransboundarylegalconsiderationsiftransportorstorageinfrastructurespansmultiplecountriesorjurisdictions.In2019amajorbarriertothecross-bordertransportandoffshorestorageofCO2waslargelyresolvedwiththeprovisionalapplicationofthe2009amendmenttoArticle6oftheLondonProtocol,althoughbilateralagreementstooperationaliseithaveyettobestruck.ThedevelopmentofhubsmayalsopromptgovernmentstoreassesshowCO2transportisregulated.WhilepipelinesaregenerallythecheapestwaytotransportCO2inlargequantitiesonshoreand–dependingonthedistanceandvolumes–offshore,CO2transportbyshipcanoffergreaterflexibilitythanpipelines,includingwherethereismorethanoneoffshorestoragefacilityavailabletoacceptCO2.FrameworksmayneedtobereviewedtoensurethattheycoveranddonotactasregulatorybarrierstotransportingCO2byship.Carbonremovalisalsogainingattentionastheworldshiftsfocustowardsanetzerofuture.Technology-basedcarbonremovalapproachescanremoveCO2fromtheatmospherebycombiningbioenergywithcarboncaptureandstorage(BECCS)orviaDACwithCO2storage.Thiscanhelptobalanceemissionsinsectorsthataretechnicallychallengingorprohibitivelyexpensivetodecarbonise.Legalandregulatoryframeworksmayneedtobeamendedorupdatedtoaccommodate–forexample–CO2capturefromtheairratherthanfrompointsourcesonly.CCUSLegalandRegulatoryHandbookPAGE13Chapter1IEA.Allrightsreserved.GlobalCCUSprojectshavebeenconcentratedintheUnitedStates,thoughdeploymentisdiversifyingacrossregionsGlobalCO2capturecapacityatlarge-scalefacilitiesbycountryIEA.Allrightsreserved.Sources:IEAanalysisandtracking;GlobalCCSInstituteCCSFacilitiesDatabasehttps://co2re.co/.0510152025303540455019801990200020102022MtPeople'sRepublicofChinaUnitedArabEmiratesSaudiArabiaNorwayQatarBrazilAustraliaCanadaUnitedStatesCCUSLegalandRegulatoryHandbookPAGE14Chapter1IEA.Allrightsreserved.KeylegalandregulatoryissuesforCCUSTheIEAhasidentified25prioritylegalandregulatoryissuesforCCUSdeployment,assetoutinthetablebelow.TheseissuesarediscussedindetailinChapters3-6ofthehandbookandsupportedwithModelRegulatoryText.Theseissuesarebroadlygroupedintoeightcategories:•Definingtheregulatoryscope:issuesthatsetthelegalparametersfortheclassificationandownershipofCO2.•Environmentalreviewsandpermitting:requirementsforoperatorstominimiseenvironmentalandpublichealthimpactsthroughdetailedassessmentsanddatacollectionandreporting.•Enablingfirst-moverprojects:approachestoreduceregulatorybarriersandprovidecertaintytofirst-andearly-moverprojects.•Ensuringsafeandsecurestorage:issuesthatcoverthefullrangeofthestoragedevelopmentprocess,fromresourceassessmenttothesiteclosureprocess.Thisincludesrobustmonitoringandreportingrequirementsforoperatorsandfinancialsecurityobligations,includinganyrequirementstoremediatetheCO2storagesite.•Addressinglong-termstorageliabilities:issuessurroundingrequirementsandresponsibilitiesofoperatorsandtherelevantauthorityfollowingtheclosureofastoragesite.•Internationalandtransboundaryissues:regulatoryissuesthatmayarisefromthecross-bordertransportandstorageofCO2.•FacilitatingCCUShubs:considerationsforenablingsharedCO2transportandstorageinfrastructure.•Otherkeyandemergingissues:pointsthatreflectrecentdevelopmentsandexperience,butwhichmaynotbeaddressedindetailincurrentframeworks.TheseissuesaddressallaspectsoftheCCUSvaluechain,withastrongfocusonhowframeworksfunctiontoensurethesafeandsecurestorageofCO2.Foreachissue,thehandbookprovidesadescriptionandgeneralconsiderationsforthosedesigningrelevantregulatoryandlegislativeapproaches.Theissuedescriptionsarefollowedbycasestudiesandexamplesofregulatoryapproaches.WhiletheaimistohighlightarangeoflegalandregulatoryconsiderationsforCCUS,thereisnointentiontobeexhaustiveoradvocateaone-size-fits-allapproach.Itisrecognisedthatindividualgovernmentsshouldaddressissuesaccordingtotheirownparticularcircumstances.CCUSLegalandRegulatoryHandbookPAGE15Chapter1IEA.Allrightsreserved.LegalandregulatoryissuesforCCUSdeploymentPagerangeCategoryIssueDescription34-37DefiningtheregulatoryscopeClassificationandpurityofCO2RelevantclassificationsandcharacterisationsofCO2,e.g.asawaste,hazardouswaste,pollutant,dangerousgood,orcommodity.AlsothequalitativeorquantitativerequirementsorstandardsforCO2streams.OwnershipandtitleofCO2DefiningCO2ownershipalongtheCCUSvaluechainandoverthelifeofaCCUSproject.38-49EnvironmentalreviewsandpermittingEnvironmentalimpactassessment(EIA)ApplicableenvironmentalprotectionsandEIArequirements,includingspecificconsiderationsforCO2storage.PermittingandauthorisationApplicationandissuanceprocessesforCO2injectionandstoragepermits,anyprerequisitesforpermittingandcommencementofinjection,andanyreview,modification/cancellationandsurrendermechanisms.PublicengagementandconsultationRights,obligationsandmechanismsforpublicparticipationinCCUSactivities,includingbypublicationofproposalsandpermitregisters,reviewandresponseprocesses,obligationstoconsidercommentsandavenuesforlegaloradministrativechallenge.50-52Enablingfirst-moverprojectsOne-offlegislationDedicatedlegislationforaspecificCCUSprojectintheabsenceofanexisting,comprehensiveframework.PreferentialapproachesandprojectsPreferentialdevelopmentrights,includingforCO2storageexplorationanddevelopment,andspecialadministrativeandpermittingarrangementsforprojectsidentifiedasbeingofstrategicinterest.55-67EnsuringsafeandsecurestorageStorageresourceassessmentRegulationoftheprocesstoidentifyCO2storageresourcessuitablefordevelopment,includingregionalscreening,sitescreening,siteselection,initialcharacterisationanddetailedcharacterisation.OwnershipofporespaceImplicationsoflegalownershipofsubsurfacegeology,includingporespaceforCO2storage,whichdiffersbetweenregions.Measurement,monitoringandverification(MMV)plansMonitoringandreportingobligationswithrespecttoestablishingbaselinesandidentifyingirregularities,andanyrequirementsforindependentverificationofdata.StoragesiteinspectionsInspectionprovisions,includingmechanismsforauthorisinginspectors,inspectoraccessrights,andoperatorobligationstoallowaccessandshareinformation.OperationalliabilitiesandfinancialsecurityAllocationofliability,andobligationtopostfinancialsecurity,fordamageorlossthatoccurspriortoanypost-closurepermitsurrenderortransferofliability,andanyregulatorstep-inandcostrecoverymechanisms.SiteclosureprocessTheprocessforsitedecommissioningandclosure,includingconditionstobemetpriortoclosure,obligationstoplugwells,removesurfaceinfrastructureandmonitorstoredCO2,mechanismsforreleaseofanyfinancialsecurityandcompliancecertificationmechanisms.CCUSLegalandRegulatoryHandbookPAGE16Chapter1IEA.Allrightsreserved.PagerangeCategoryIssueDescription68-72Addressinglong-termstorageliabilitiesLong-termliabilitypostsiteclosureArrangements(ifany)forthetransfertothestateorrelevantauthorityofliabilityinrespectofaclosedCO2storagesiteand/orinjectedCO2,includinganypreconditions,anypost-closureperiodthatmustelapsepriortothetransfer,andanyliabilityretainedbyoperator.Financialassurancesoflong-termsitestewardshipMechanismsunderwhichoperatorsarerequiredtocontributefinanciallytothecostsoflong-termsitestewardshipofaCO2storagesitefollowinganysiteclosure.73-80InternationalandtransboundaryissuesRegulatingcross-borderCO2transportCapturedCO2canmoveacrossoneormorejurisdictions,whichmaytriggercertainnationalorinternationalregulatoryrequirements.CompliancewiththeLondonProtocolObligationsandrequirementsforcross-bordertransportofCO2undertheLondonProtocolandthe2019ResolutionforProvisionalApplicationofthe2009CCSExportAmendment.InteractionofpressurefrontsacrossinternationalbordersInteractionofsubsurfacegeology,specificallypressurefrontsinlargeCO2storageformations,occurringacrossjurisdictionalboundaries.OverlapbetweenmultipleframeworksPotentialoverlapbetweenmultipleregulatoryframeworks,forexamplewhereprojectsoutsidetheUnitedStatesarecreditedunderCalifornia’sLowCarbonFuelStandardwithspecificregulatoryrequirements.81-85FacilitatingCCUShubsAccesstosharedtransportinfrastructureObligationsorarrangementstoallowthird-partyaccesstoCO2transportinfrastructure,includinganyrighttorefuseaccess,andrelevantcompensationanddisputeresolutionmechanisms.FacilitatingsharedstorageinfrastructureObligationsorarrangementstoallowthird-partyaccesstostoragesites,includinganyrighttorefuseaccess,andrelevantcompensationanddisputeresolutionmechanisms.86-94OtherkeyandemergingissuesTreatmentofCO2removaltechnologiesTreatmentofCO2removaltechnologies,suchasDAC,withinexistingandfuturelegalandregulatoryframeworks.InteractionwithothersurfaceandsubsurfaceresourcesInteractionofCCUSprojects–andstorageinfrastructureinparticular–withothersubsurfaceandsurfaceresources,suchasoilandgasactivitiesandoffshorewind.TransitioningfromCO2-EOR(enhancedoilrecovery)todedicatedstorageRegulatoryconsiderationsfortransitioningCO2-EORoperationstodedicatedCO2storage.CCUS-readyrequirementsComprehensivecriteriaforfacilitiestobeconsideredreadyandabletoadoptCCUSinthefuture.IEA.Allrightsreserved.CCUSLegalandRegulatoryHandbookPAGE17Chapter1IEA.Allrightsreserved.PriorityactionsforpolicymakersandlegislatorsEstablishthefoundation•Identifykeyregulatoryissues.•Reviewinternationalbestpractices,approachesandstandards.•AssessexistingregulatoryframeworksforCCUSactivities.•Identifyregulatorygapsandbarriers.•Findtheframeworkapproachthatfitsbest(e.g.adoptingproject-specificlegislation,acomprehensiveframeworkorhybridapproach)andbuildregulatorysupportcapacity.•Putinplacearegulatoryreviewprocesstoregularlyassessframeworks.Definetheregulatoryscope•Reviewdefinitionsofhazardouswaste,pollutantsandcommoditiestoensuretheclassificationofCO2underexistingframeworksdoesnotactasabarriertoCO2transportorstorage.•ClearlydefineCO2ownershipacrosstheCCUSvaluechain,especiallyforframeworksthatmaypromoteacommoncarriermodelfortransport.Establishenvironmentalsafeguardsandsupportpublicengagement•UseexistingframeworkstoassessenvironmentalreviewrequirementsandincorporatespecificassessmentneedsforCCUSprojectswhereneeded.•Assesstheopportunitytousepermittingapproacheswithinexistingframeworksasabaseforstoragesiteexplorationanddevelopment,andforCO2pipelines.•Ensurerelevantauthoritieshaveenoughinternalcapacitytoreviewandprocesspermittingapplications.•Establishrights,obligationsandmechanismsforpublicengagementandconsultationforCCUSdevelopments.•Promotepublicconsultationsearlyonintheprojectdevelopmentprocesstofosterpublicstakeholderconfidence.Enablefirst-moverprojects•IntheabsenceofacomprehensiveCCUSframework,considerproject-specificlegislationtofacilitatethedevelopmentofCCUSprojects.•ConsiderpreferentialrightsandadministrativearrangementsforearlyCCUSprojectsidentifiedasbeingofstrategicinterest.CCUSLegalandRegulatoryHandbookPAGE18Chapter1IEA.Allrightsreserved.Ensuresafeandsecurestorage•SettheparametersforwhatCO2storageresourcescanbedeveloped,basedonarangeofperformancecriteria.•Clearlydefineporespaceownershiptoavoidstorageresourceassessmentanddevelopmentcomplications.•EstablishminimumrequirementsforMMVplans.•Ensuretherelevantauthoritycanverify,bywayofstoragesiteinspectionsanddatareporting,thatstorageprojectsareperformingasintended.•Ensurethestorageoperatorisfinanciallycapableofremediatinganypotentialproblemsthatmayariseduringsiteoperators.Addresslong-termstorageliabilities•Clarifytheownershipandlong-termresponsibilityandliabilityforstoredCO2andestablishresponsibilitiesforaddressingandremediatingtheseepageofCO2fromtheformation.•Iftherelevantauthorityassumeslong-termstewardshipandliabilityofthestoragesite,ensurethatrequirementsareinplace,priortotransfer,fortheoperatortodemonstrateconfidencethatthereisnosignificantriskoffutureleakage.•Considerestablishingfinancialsecurityrequirements,suchasafund,tocoverthelong-termmonitoringandmanagementcostsofthestoragesite.Addressinternationalandtransboundaryissues•Outlineprovisionsthataccountandallowforthecross-bordertransportandstorageofCO2.•EnsuremechanismsareinplacefortheearlyidentificationandresolutionofsubsurfaceCO2migrationorpressurepropagationacrossborders.•Developandsharepubliclybilateralagreementsforcross-bordertransportofCO2undertheprovisionalapplicationofthe2009CCSexportamendmenttotheLondonProtocol.•Establishguidelinesthatrecommendwhattodointheeventofoverlapbetweenmultipleframeworks.FacilitateCCUShubs•OutlineconditionsforaccesstosharedCO2transportandstorageinfrastructure,suchastechnicalcapabilityandcapacity.•EnsureaccesstosharedCO2infrastructureisnon-discriminatoryanddisputemechanismsareinplace.Manageotheremergingandstrategicissues•EnsureframeworksconsiderthetreatmentofCO2removaltechnologies,suchasBECCSandDACwithCO2storage(DACS),includingmeasurementandquantificationofemissionremovals.•ConsidersuitablespatialplanninginteractionsbetweenCCUSandotherresources,suchasoilandgasreservoirs,geothermalandoffshorewindinstallations.•EstablishapathwaywithclearandrobustrequirementsforCO2-EORprojectsthattransitiontodedicatedstorageoperations.•WherealternativesolutionsarenotviableandCCUScannotbeimmediatelyadopted,considerCCUS-readyrequirementsforanynewemissions-intensiveindustrialorpowerfacilities.CCUSLegalandRegulatoryHandbookPAGE19IEA.Allrightsreserved.Chapter2Chapter2DevelopinglegalandregulatoryframeworksCCUSLegalandRegulatoryHandbookPAGE20IEA.Allrightsreserved.Chapter2GettingstartedDevelopingcomprehensivelegalandregulatoryframeworksforCCUSwillalmostalwaysinvolvesubstantialplanningandconsultationthatcantakeuptoseveralyears.Forexample,implementationoftheworld’sfirstnational(offshore)CO2storagelawsinAustraliatookoverfiveyears,from2003to2008.Theexperiencegainedfromthisearlyworkcaninformthedevelopmentoffutureframeworks.PolicymakersandregulatorsencounterseveraloverarchingconsiderationsinplanningforthedevelopmentofCCUSlawsandregulations,including:•WhatistheanticipatedroleofCCUSinmeetingnationalenergyandclimategoals?•HowwillCCUSlawsandregulationsfitwithinexistinglegalframeworks?•Areregulatoryguidingprinciplesavailable,forexampletoaddressissuessuchaslong-termCO2storageliability?•Whoarethekeystakeholdersandhowwilltheybeconsulted?•Isthereaprocesstorevieworamendtheframeworkinthefuture,toaccountforchangesinthesectororlessonslearned?•AretheregulatoryauthoritiessufficientlyresourcedtooverseeCCUSactivities?Whilerecognisingthateachjurisdictionwillhaveestablishedprocessesfordevelopinglawsandregulations,thischaptersetsoutsixstepsthatcanhelptoguidethedevelopmentofCCUSregulation:1.Identifykeyregulatoryissues.2.Reviewinternationalbestpractices,approachesandstandards.3.AssessexistingregulatoryframeworksforCCUSactivities,includingidentifyinggapsandbarriers.4.IdentifyoptionsforregulatingCCUS.5.Findthebestfitandbuildregulatorysupportcapacity.6.Reviewframeworksregularly.CCUSLegalandRegulatoryHandbookPAGE21IEA.Allrightsreserved.Chapter2Step1:IdentifykeyregulatoryissuesThishandbookdefines25keylegalandregulatoryissuesforCCUS,assetoutinthetableonpage15.MostconcernthesafeandsecurestorageofCO2,butanumberofcross-cuttingandemergingissuesarealsoconsidered,forexamplethedevelopmentofindustrialCCUShubsandlegalconsiderationsfortechnology-basedCO2removal.Theseissueshavecomeintoglobalfocussincethe2010IEAModelRegulatoryFrameworkwasdeveloped.However,manyissues–particularlyaroundCO2storage–arelongstandingconsiderationsforthedevelopmentofCCUSregulations.Whilethese25issuescanprovideastartingpointforanationalorregionalassessment,governmentsshouldalsoseektoidentifyanddefineissueswithintheirspecificpolicyandregulatorycontext.Forexample,certainissuesmayalreadybecodifiedinregulationscoveringresourceextractionorenvironmentalimpactprocedures.TheanticipatedroleofCCUSwithinajurisdictionmayalsoshapetheidentificationofkeyissues,forexamplebyfocusingattentiononparticularapplicationsorregions.Complementingthelistofkeyregulatoryissues,thehandbook’sModelTextprovideslanguagethatgovernmentscanusetoincorporatejurisdictionallyappropriateadditionsandamendmentstoneworexistingframeworks.TheModelTextcanbefoundattheendofthehandbookintheAnnex.CCUSLegalandRegulatoryHandbookPAGE22IEA.Allrightsreserved.Chapter2Step2:Reviewinternationalbestpractices,approachesandstandardsItisimportanttounderstandtheinternationallegalandregulatorycontextwhendevelopingdomesticCCUSregulation.ReviewingestablishedlegalframeworksforCCUSprovidesausefulstartingpointintheprocess.Thishandbookhighlightsbestpracticesfromseveralestablishedframeworks.InternationalstandardscanactuallyshapedomesticregulatoryregimesorprovideabaselineframeworkintheabsenceofacomprehensiveCCUSregulatoryframework.Forexample,ISO27914andISO27916establishrequirementsandrecommendationsforthegeologicalstorageofCO2anditsuseinEOR,respectively.Thesetwostandards,whicharedesignedtocomplementeachother,servedifferentpurposes–ISO27914isdesignedtopromotethecommercial,safe,long-termcontainmentofCO2andISO27916isdesignedtoquantifyanddocumenttheamountofCO2storedduringEOR.EffortsareunderwaytostandardisevariousotheraspectsofCCUSoperations.TheISOTechnicalCommittee265isworkingonstandardsforCO2pipelinetransportsystems,riskmanagement,flowassurance,transitionfromCO2-EORtostorageandCO2transportbyship.ApplyingISO27916to45QintheUnitedStatesIntheUnitedStates,the45QtaxcreditprovidesuptoUSD50pertonneofCO2permanentlystoredandUSD35pertonneofCO2usedforEORorotherindustrialapplications,providedemissionreductionscanbeclearlydemonstrated.Inordertoclaimthetaxcreditanddemonstratesecurestorage,operatorshavehadtofollowregulatoryguidelinesoutlinedunderSubpartRRoftheEnvironmentalProtectionAgencyGreenhouseGas(GHG)ReportingProgram.OperatorsthatreportunderSubpartRRself-certifyCO2volumesinordertoclaimthetaxcredit.InJanuary2021theInternalRevenueServiceissuednewguidancethatnowallowsoperatorsofCO2-EORprojectsthechoicetocontinuereportingunderSubpartRRorabidebyISO27916.OperatorsthatchoosetoapplyISO27916cannotself-certifyandinsteadmusthavedocumentationcertifiedbyaqualifiedindependentengineerorgeologist.BothSubpartRRandISO27916requireanassessmentandmonitoringofpotentialleakagepathways,quantificationofinputs,lossesandstoragethroughamassbalanceapproach,anddocumentationofstepsandapproaches.However,ISO27916doesnotrequirepublicreportsontheamountofCO2stored,whereasSubpartRRdoes.CCUSLegalandRegulatoryHandbookPAGE23IEA.Allrightsreserved.Chapter2Step3:AssessexistingregulatoryframeworksforCCUSactivities,identifyinggapsandbarriersAcomprehensivereviewofexistinglawsandregulationspotentiallyapplicabletoCCUSactivitiesisanimportantstepindevelopingCCUS-specificframeworks.Similartotheinternationalassessment,thisreviewshouldtakeintoaccountthemainregulatoryissuesidentifiedinStep1.Thisprovidesthebasistoidentifyanygapsorbarriersinregulatoryframeworks.Governmentsshouldconsiderthefollowingissueswhencarryingoutthisreview:•HowcanexistingregulatoryframeworksbeusedtoaddressissuesraisedbyCCUSoperations?Forexample,existingoilandgaslegislationmayofferagoodstartingpointtodevelopaCCUSframework.•DoexistingframeworksactasabarriertoaspectsofCCUS?Forexample,groundwaterprotectionlegislationmaypreventCO2injectionintocertainsalineaquifers.•Arethereanyunintendedconsequences?Forexample,hazardouswasteregulationmayclassifyCO2asapollutantandpreventinjection,limititstransportoraddfurtherpermittingrequirements.Otherareasofexistingregulatoryframeworksmayalsogovernenergyproduction,landuseplanning,propertyrights,andhealthandsafety.Next,governmentsshouldidentifywhetherthereareanygapsinexistingdomesticlawsandregulations,andifso,howsuchgapscanbeaddressed.Inotherwords,whataretheregulatoryissuesthatexistingframeworksorinternationalpracticesfailtoaddress?Likewise,itisimportanttoidentifymajorbarrierstoCCUS,eitherinexistinglegislationorinthesolutionstoaddressthegaps.Toperformthegapandbarrieranalysis,existinglegislationandregulationshouldbeassessedtodetermine:•TheirsuitabilitytohandlethespecificrisksinvolvedinCCUSoperationsandwhethermodifyingtheirscopetocoverCCUSwouldhelpfilltheregulatorygaps.•WhetherspecificexemptionsarerequiredtoremoveanybarrierstoCCUS.•Whetheraddingrequirementsorremovingbarrierswouldcreateanyunintendedconsequencesforexistingactivitiesandoperations.•Anypotentialconflictsbetweenframeworksand,ifpossible,whichlawwouldprevail.Theanalysisthenleadstospecificactionstoclosegapsand/orremovebarriers.CCUSLegalandRegulatoryHandbookPAGE24IEA.Allrightsreserved.Chapter2ExamplesofexistingregulationsthatmayberelevantforCCUSactivitiesIEA.AllrightsreservedCCUSLegalandRegulatoryHandbookPAGE25IEA.Allrightsreserved.Chapter2Casestudy:DevelopingalegalandregulatoryframeworkinIndonesiaIndonesiahasmadesignificantprogressinbuildingthenecessarytoolstofacilitateCCUSinvestmentinordertomeetitsnetzerogoalby2060.IthasgainedearlyexperiencethroughtheGundihPilotProjectandhasdemonstratedstrategicinterestinCCUSthroughthelaunchoftheInstitutTeknologiBandungCentreofExcellenceforCCSandCCUin2017andtheearlydevelopmentofseveralplannedcommercialCCUSprojects.TofacilitatethedeploymentofCCUS,theMinistryofEnergyandMineralResourceshaspreparedadraftregulatoryframeworkforCCUS,thefirstofitskindinSoutheastAsia.Theframework,intheformofadraftministerialregulation,buildsona2019draftPresidentialDecreethatoutlinedregulatoryareasforaCCUSframework.Rootedinthecountry’sexistingoilandnaturalgasregulations,thedraftframeworkreliesontheholdersofoilandgasleasestospearheadCO2storagedevelopmentandoperation.Storageactivities,whichincludededicatedstorageoperationsaswellasthoseassociatedwithenhancedhydrocarbonrecovery,aretobeconductedwithintheexistingleaseareas,suchasindepletedoilandgasfields.Theframeworkalsoincludesatransfermechanismwherebythegovernmentassumeslong-termmonitoring,stewardshipandliabilityfollowingtheapprovalofsiteclosure.InadditiontothetechnicalandlegalrequirementsneededtoensuresafeandsecureCO2storage,thedraftframeworkalsooutlinesseveralbusinessandeconomicaspects.Forexample,theframeworkoutlinespotentialpathwaystomonetisingcarboncreditsfortheprojectanditspartners.Inaddition,theframeworkoutlinesconditionsunderwhichstorageoperatorsmaygrantthird-partyaccesstostoragefacilities.TheMinistryofEnergyandMineralResourceshasproposedthatthedraftregulation,whichmustbeharmonisedbyotherministriesandobtainpresidentialapproval,beapriorityfor2022.CCUSLegalandRegulatoryHandbookPAGE26IEA.Allrightsreserved.Chapter2Step4:IdentifyoptionsforregulatingCCUSBasedontheanalysisinSteps1-3,governmentsmayhaveseveraloptionsforregulatingCCUSactivities.Insomecases,onlyminormodificationstoexistinglawsandregulationsmaybeneeded;inothercases,majormodificationsornewlegislationmayberequired.Asisthecaseinotherregulatoryframeworks,theremaybetrade-offsinvolvedinthevariousoptions–suchasthetrade-offbetweenthetimeittakestoamendordevelopcomprehensivelegislationforCCUSactivitiesandthegoalofexpediatingnewprojectdevelopment.IdentifyingregulatoryoptionsinSouthAfricaSouthAfricahasidentifiedCCUSasakeytechnologytomeetitsemissionsreductiontargetswhilealsobalancingsocialandeconomicconsiderations.In2010SouthAfricareleaseditsAtlasontheGeologicalStorageofCarbonDioxide,thefirstmajormilestoneinidentifyingpotentialstoragesitesinthecountry.Adetailedanalysisofthecountry’slegalandregulatoryframeworksfollowed,whichaimedtodeveloppossiblelegalandregulatorypathwaysforCCUSinSouthAfrica.Thisworkidentifiedseveralregulatoryoptions:•Option1:ModifywastelegislationastheprimarymeanstoregulateCCUSactivities.Underthisstatusquoapproach,onlyminoramendmentstoexistinglegislationwouldberequired.However,itwouldnotaddressotherregulatoryissues,suchassubsurfaceaccessrightsandlong-termliability,potentiallycausingprojectdevelopmentdelaysordeterringpotentialinvestment.•Option2:Amendpartsofexistingwastelegislation,butalsorelyonprovisionsinexistingenvironmentallegislation(suchasthosecoveringenvironmentalimpactassessments).Itisunclearwhetherornotthisapproachwouldprovideasufficientlyrobustregulatoryframeworkforriskassessmentandpermitting.•Option3:BuildonexistingmineralandpetroleumdevelopmentlegislationasthebasisforregulatingCO2injectionandstorageactivities.ComparedtoOptions1and2,thisapproachprovidesgreaterclaritytosubsurfaceaccessrights,permittingproceduresforCO2storagesitedevelopment,financialrequirementsforoperators,managementofsiteclosureandlong-termsitestewardship.However,itwouldrequiresignificantdraftingandmodification.•Option4:DevelopstandaloneCCUSlegislation,whichwouldcoverallaspectsofCCUSactivity.Thisoptionwouldrequiresignificanttimetodevelop.CCUSLegalandRegulatoryHandbookPAGE27IEA.Allrightsreserved.Chapter2Step5:FindthebestfitandbuildregulatorysupportcapacityAfteracomprehensivereviewofexistingframeworksandidentifyingpotentialoptionsforregulatingCCUS,governmentshavetworoutestodevelopingaCCUSregulatoryframework:•ReviseexistingframeworkstocoverCCUSactivities.AsoutlinedinStep4,governmentscanamendexistingframeworkstoregulateCCUSprojects.ThiscouldbeappropriatewherethereissubstantiallegislationalreadyinplacethatcoversaspectsofCCUSactivities.ThisapproachcouldprovideatestinggroundforemergingCCUSregulationandpublicengagementprogrammes.•DevelopadedicatedCCUSregulatoryframework.Ifexistingframeworksarenotsufficient,governmentscandevelopdedicatedCCUSframeworksforcommercialdeployment.Comprehensiveregulatoryframeworksoftentakeseveralyearstodevelop,anditisimportanttoconsultwithrelevantstakeholdersthroughouttheprocess,includingtheplanningandpost-implementationphases.Inmanycases,governmentsmaychoosetoadoptahybridapproachinwhichcertainexistingregulationsareamended–suchasthosegoverningtheoilandgassectororthewatersector–andsomeregulationsarecreatedvianewlegislation.Nomatterwhichapproachistaken,governmentsshoulddefinetheframework’sparametersinpartnershipwithstakeholders–thisinvolvesoutlininggeographiccoverage,exclusionsandprohibitionsbasedontherelevantauthority’sjurisdiction.Forexample,dependingonwhichrelevantauthorityisincharge,theframework’sscopemaybelimitedtoregulatingonshorestorage,offshorestorage,geologicalstorageorvolumeofCO2inexcessofspecifiedminimumvolumes.Inanycase,governmentsshouldensurethattherelevantauthoritieshaveenoughresourcestocarryouttheirregulatoryrequirements.Itisvitalthattheyareequippedwithsufficientfunding,staffandexpertisetooverseetheimplementationofCCUSregulations.Alongthosesamelines,governmentsshouldensurethatstakeholdersareactivelyinformedonhowtocomplywithregulations–thisisparticularlyimportantforCO2storageregulations,whichoftenrequirecomprehensivestoragesitemonitoringandreporting.Thismayrequireregularworkshopsandtraining,forboththerelevantauthorityandotherstakeholders,suchasoperators.Takingthesestepswillhelp:•Ensurethesafe,securehandlingandstorageofCO2.•Protecthumanhealthandtheenvironment.•Reduceregulatorydelays.•EnsuretimelycompletionofCCUSprojects.CCUSLegalandRegulatoryHandbookPAGE28IEA.Allrightsreserved.Chapter2Casestudy:FrameworkdevelopmentapproachinMexicoMexico’scomprehensiveassessmentsofregulatingCCUSactivitiesprovideinsightsintohowagovernmentmightapproachdevelopingaframework.In2012theAsia-PacificEconomicCooperation(APEC)forumcommissionedareportexaminingCCUSlegalandregulatoryregimesforAPECeconomies,includingMexico.ThestudywasthefirstgeneralassessmentofaframeworkforCCUSactivitiesinthecountry,andprovidedastartingpointforfuturestudies.WiththesupportoftheWorldBank,anin-depthassessmentwasdevelopedin2016toexaminetheexistingregulatoryframeworkforCCUSactivitiesinMexicoandidentifyadjustmentsforCCUSprojectimplementation.Itadoptedacomprehensiveapproach,resultinginrecommendationsforaCCUSframeworkinMexico.•Step1:Attheoutset,thestudydrewupalistof38keyregulatoryissuesbasedontheIEA’s2010ModelFramework.ItgroupedtheissuesintofivecategoriesbasedonthelifecycleofaCCUSproject.Theseregulatoryissuesprovidedthebasisofthestudy’sanalyticalapproach.•Step2:ThestudythenexaminedtheregulationofCCUSactivitiesincountrieswithwell-developedCCUSregulatoryframeworks.TheseincludedAustralia,Canada,theUnitedStatesandtheEuropeanUnion.Informationwasgatheredfromreports,academicpublications,legalinstrumentsandpublicationsfrominternationalorganisations.Thestudymatchedthekeyregulatoryissuesagainstthemainaspectsofeachregulatoryframeworkinthejurisdictionsstudied.•Step3:ThenextstepwasanextensiveassessmentofexistinglawsandregulationsthatmightapplytoCCUSactivitiesinMexico.TheassessmentfoundrelevantlegislationthatmayapplyorbeamendedtocoversomeCCUSactivities.Thisanalysisappliedthesamelistofkeyregulatoryissuesandformedthebasisforidentifyinggapsandbarriersinexistinglegislation.•Step4:Next,thestudyassessedpotentialgapsbetweenissuescoveredbyexistingregulationsandissuescoveredbyinternationalbestpractices.Theprimarypurposeofthisgapanalysiswastoprovideafoundationforrecommendationsondevelopingaregulatoryframework,bymeansofusingoramendingexistinglegislationorcreatingnewlegislation.•Step5:Basedonthestepsabove,thestudymaderecommendationsonhowtoamendtheregulatoryframeworkforCCUSactivitiesinMexico.TherecommendationswereframedaroundthemaincategoriesofissuesidentifiedinStep1.ThedetailedanalysisoflegalandregulatoryissuesprovidedabasisforthegovernmentofMexicotodevelopandadapttheexistingregulatoryframeworkforeachkeystageintheCCUSprojecttimeline.CCUSLegalandRegulatoryHandbookPAGE29IEA.Allrightsreserved.Chapter2Step6:ReviewframeworksregularlyRegulatoryframeworksforCCUSshouldnotbestatic.Asgovernmentsgainexperiencefromimplementingregulationsandlearnlessonsfromearly-moverprojects,theyshouldreviewtheirframeworksperiodicallytoensurethatlawsandregulationscontinuetosupportCCUSactivities.Thelevelofreviewislikelytodependonhowajurisdiction’sframeworkisstructured.Forexample,ifajurisdictionhasacomprehensiveCCUSframework,adetailedreviewthatidentifiescurrentregulatoryissuesandgapsmayberequired.Inmostcases,thisislikelytorequiremodificationstotheexistingframeworkinordertoaddressregulatorygaps.Conversely,ifajurisdiction’sCCUSframeworkisdirectedataspecificprojectandisshapedbyone-offlegislation,thereviewislikelytobemoretargetedattheregulatoryissuesencounteredbytheproject.Anychangesarelikelytorequirenewlegislationandthefurtherbuild-outoftheregulatoryframeworkforCCUS.Projectdevelopersandrelevantauthoritieswithfirst-handexperienceoftheregulatoryprocesscanprovidevaluableinputtotheregulatorydevelopmentandreviewprocess.Inputshouldalsobesolicitedfromawiderangeofstakeholdersacrossindustry,academia,researchorganisations,internationalexperts,environmentalorganisationsandlocalgovernmenttoensurethatavarietyofperspectivesistakenintoaccount.RegulatoryFrameworkAssessmentinCanadaIn2011thegovernmentofAlbertainitiatedanearlytwo-yearreviewofitsCCUSregulatoryframework.TheRegulatoryFrameworkAssessment(RFA)wasamulti-stakeholderprocessguidedbyasteeringcommittee,whichreviewedthetechnical,environmental,safetyandmonitoringrequirementsforCCUS.ThepurposeoftheRFAwastoidentifyanyregulatoryissuesorbarrierstoCCUSdeploymentbyexaminingtheexistingregulatoryframeworkinAlbertaandbestpracticesinothercountries.Overthecourseofthereview,theassessmentconsideredseveralguidingprinciples,suchas:•Protectingtheenvironmentandpotablewatersources.•Ensuringthelong-termliabilityofstoredCO2wouldnotbecomeafinancialburdenonAlbertans.•Promotingclearandopencommunicationwithstakeholders.•Makinguseofsite-specificriskmanagementforCCUSactivities.•ConsideringpotentialresourceinteractionswithstoredCO2.•LeveragingexperienceintheoilandgasindustryforCCUS.TheprinciplesfedintotheRFA’s71recommendations,whichidentifiedspecificopportunitiestoimproveAlberta’sregulatoryframeworkforlarge-scaleCCUSactivities.Therecommendationsaresummarisedinthetablebelow.CCUSLegalandRegulatoryHandbookPAGE30IEA.Allrightsreserved.Chapter2Alberta’sRegulatoryFrameworkAssessmentforCCUSactivitiesSummaryofrecommendationsforthegovernmentofAlbertaApplications,approvalandregulatoryframework•ClearlydefinehowprojectsareclassifiedasCCUSorforCO2-EOR,andtheprocesstotransitionfromCO2-EORtopermanentstorage.•Definetheroleandresponsibilitiesofeachregulatorandcreateclearindustryguidance.•Determineconditionsunderwhichanenvironmentalimpactassessmentshouldberequired.•Requiremonitoring,measurementandverification(MMV)plansandclosureplanstoaccompanyCCUS-relatedapplications.•ConsidersubsurfaceCO2injectionapplicationsonacase-by-casebasis,andgivetheregulatorflexibility.•ConductareviewofapplicationsforCCUStenuretodeterminetheneedforsurface-levelenvironmentalprotections.•Evaluatepotentialtoimpactotherresources(includingporespace).•EncourageCCUSprojectdeveloperstoworktogether;allowdeveloperstoapplyforaccesstoanotheroperator’spipelinesorstoragesitesifprivatenegotiationsfail;changetenureagreementstoenabletenuretoberevokedifitremainsunused.•RequireprojectstoreportreleaseofCO2andreconcileearnedemissionscredits.Publicconsultation•Reviewandupdatenotificationandconsultationrequirements,includingthateveryonewithinthetenureboundarybeinformedabouttheCCUSproject.•DevelopemergencyplanningzonesaroundCCUSprojectinfrastructure.•Improvepublicaccesstoinformationontheregulatoryprocess.•ClarifythatCCUSoperatorscanapplyforaccesstoconductMMVorreclamationactivitiesovertheentireareaofthestoragelease.CCUSLegalandRegulatoryHandbookPAGE31Chapter2IEA.Allrightsreserved.SummaryofrecommendationsforthegovernmentofAlbertaRiskassessmentandmonitoring•RequireMMVandclosureplanstobebasedonaproject-specificriskassessment.•DetermineifAlbertashouldadoptallorpartoftheCanadianStandardAssociationstandardforgeologicalstorageofCO2.•ConductresearchonAlberta’suseofaminesandtheireffects,anddetermineiffurtherregulationofpost-combustioncapturetechnologiesisneeded.•RequireCO2storagesitestodemonstratesufficientcapacity,injectivityandcontainmentparameters.•Defineconcentrationsofothercomponentsforinjectionwellactivitiesandrequirecertainwellcasingstringstobecementedfromthewellbasetothesurface.•EvaluateiffurtherresearchisneededonmethodsfordetectingleaksfromCO2pipelines.Siteclosureandlong-termliability•ClarifytheprocessforclosingaCO2storagesiteandtheinformationclosureplansmustcontain.•Establishperformancecriteriaforclosingastoragesite.•TransferliabilityforCO2creditstotheCrownwhenaclosurecertificateisissued.•Setproject-specificfeesforapost-closurestewardshipfundthatcoversthecostsoflong-termmonitoringandmaintenance,CO2creditsliabilityandcostsassociatedwithunforeseenevents.•Requireoperatorstopostfinancialsecuritytopayforsiteclosureandreclamationincasetheybecomedefunct.Source:AdaptedfromAlberta’sRFA.CCUSLegalandRegulatoryHandbookPAGE32Chapter3IEA.Allrightsreserved.Chapter3RegulatoryfoundationsCCUSLegalandRegulatoryHandbookPAGE33Chapter3IEA.Allrightsreserved.DefiningtheregulatoryscopeTypically,legalinstrumentsincludeasectionthatdefineshowcertaintermsusedwithinthedocumentaretobeinterpreted.InthecaseofCCUSregulatoryframeworks,definitionswillgenerallyberequiredtodescribethescopeandmeaningofcertaintechnicalterms;clarifythemeaningofcertainevents,activitiesorprocesses;andimplementcertainstandards,conventionsoragreedrequirementsassetoutininternationallegalinstruments.AlistofdefinitonscanbefoundattheendofthishandbookintheAnnex.TofurtherdefinethescopeofCCUSregulations,governmentsshouldconsiderhowCO2maybeclassifiedunderexistingregulations,suchaswhetheritisclassifiedasawasteoracommodity.ThismayinfluencehowCCUSoperationsareregulated.Inaddition,itisimportantthatregulationsdefineCO2ownershipalongthevaluechain..CCUSLegalandRegulatoryHandbookPAGE34Chapter3IEA.Allrightsreserved.ClassificationandpurityofCO2ThelegalclassificationofCO2haspotentialimplicationsforthewayexistingregulatoryframeworksmightapplytoCCUSoperations.ThisisbecauseclassifyingcapturedCO2asreflectingcertainproperties–orclassifyingtheactofcapturing,transportingandstoringCO2assimilartoexistingactivities,suchaswastemanagement–maymeanthataspectsofexistingregulationswillapplytoCCUSoperations.ExistingregulationsmayinadvertentlyclassifyCO2ashazardous,waste,apollutantoracommodity.StreamsofcapturedCO2fortransportationandinjectionwillcontainsomeimpurities.Thetypeofconstituentspresent,andtheirrelativeconcentrations,willdependonthesourcefromwhichtheCO2isgeneratedandcaptured,aswellasanymaterialentrainedintheCO2streamasaconsequenceofcaptureandothertreatmentprocesses.Fromatechnicalperspectiveitisimportanttoreduceorremovecertainimpurities.Forexample,someimpuritiesmayhaveacorrosiveeffectonCO2pipelinesandwellcasings.ItisimportantthatframeworksdonotadoptarbitraryconstraintsinregulatingCO2puritylevels.WhendesigningCCUSregulatoryapproaches,severalissuesrelatingtoimpuritiesneedtobeconsidered:•concentrationofimpurities•totalflowofimpurities•additionofothermatterforthepurposeofwastedisposal•potentialimpactsofimpurities.GlobalexamplesandapproachesIntheUnitedStates,UnitedKingdomandEuropeanUnion,CO2captured,transportedorstoredismainlyexcludedfromdefinitionsofwaste,pollutantornuisance.InMontana,injectionofCO2intoastoragereservoirisexcludedfromthedefinitionof“contaminationofgroundwater”andisexemptfromgroundwaterpermitrequirements.InNorthDakota,CO2thatispermanentlystored,orstoredintheshortterm,withnoleakagedoesnotconstituteapollutantornuisance.InTexas,CO2streamsareexcludedfromdefinitionsofhazardouswaste.TheregulationsnotethataCO2streammayinclude“incidentalassociatedsubstances”derivedfromthesourceandaddedtothestreamtoimprovetheinjectionprocess.TheLondonProtocol–aninternationalagreementonpreventingmarinepollution–prohibitstheexportof“wastesorothermatter”toothercountriesfordumpingorincinerationatsea.CO2streams,whichmustconsist“overwhelmingly”ofCO2,wereoriginallyincludedinthisprohibition.However,amendmentstotheprotocolin2009enableCO2transportandstorage;thisisdiscussedinfurtherdetailinChapter5.CCUSLegalandRegulatoryHandbookPAGE35Chapter3IEA.Allrightsreserved.AmendingUSoffshoreregulationstoallowsub-seabedCO2storageInNovember2021theUnitedStatesamendedkeypartsofitsregulatoryframeworktoallowfortheoffshorestorageofCO2infederalwaters.Priortothechanges,theregulatoryframeworkundertheOuterContinentalShelfLandActprimarilyappliedtothesitingandpermittingofoilandgasactivitiesandcertaintypesofrenewableenergyprojects(e.g.offshorewind).TheoriginalframeworkmaintainedanarrowfocuswhenappliedtooffshoreCO2storageactivities,onlycoveringtheuseandstorageofCO2forEORactivitiesonexistingoilandgasleasesandthesub-seabedstorageofCO2fromonshorecoal-firedpowerplants.CapturedCO2fromotherpowergenerationsourcesorindustrialfacilitiesandCO2removedfromtheairwerenotexplicitlymentionedintheframework.Therecentchanges,whichwereincludedundercomprehensiveinfrastructurelegislation,clarifydefinitionsofCO2streamsandstorage,addleasingandrights-of-wayprovisionsforCO2storageactivitiesandaddresspotentialwasteissuesassociatedwithsub-seabedCO2storage.Definitions:thedefinitionsofa“carbondioxidestream”and“carbonsequestration”wereaddedtotheframeworktoclarifyandaffirmtheregulator’sjurisdictionoversub-seabedCO2storage.ThenewdefinitionofCO2storageexpandstheoriginalscope,whichonlycoveredCO2capturedfromcoal-firedpowerplants,toaccountforCO2thathasbeen“removedfromtheatmosphereorcapturedthroughphysical,chemical,orbiologicalprocessesthatcanpreventthecarbondioxidefromreachingtheatmosphere”.Leasingprovisions:thechangesgivetherelevantregulatoryauthoritythepowertograntleases,easementsandrightsofwayforoffshoreCO2storageprojects.ThesenewprovisionsareespeciallyimportantforthesupportingCO2transportinfrastructure.Clarificationofwastematerial:thenewframeworkspecificallyexcludes“carbondioxidestream(s)injectedforthepurposeofcarbonsequestration”fromexistingoceanwasteregulations.Thischangealsohelpstoclarifywastedefinitionsinstatewaters.ThenewframeworkrequirestheregulatoryauthoritytodevelopregulationswithinoneyeartoestablishthepermittingandleasingarrangementsforoffshoreCO2storageleasesinfederalwaters.ThesechangestotheUSregulatoryframeworkforoffshoreCO2storagefurtherhighlighttheimportanceofreviewingdefinitionsandclassificationsofCO2inexistingframeworksinordertoremovebarrierstoCCUSdeployment.CCUSLegalandRegulatoryHandbookPAGE36Chapter3IEA.Allrightsreserved.OwnershipandtitleofCO2TheownershipofCO2shouldbeclearlydefinedasitmovesacrosstheCCUSvaluechain.Thisisespeciallyimportantfornon-integratedprojectswheretheownerand/oroperatorofaCO2capturefacilitymaybedifferentfromthetransportorstorageoperator.DefiningwhoownsthecapturedCO2throughoutthevaluechaincanhelpestablishwhoisresponsibleforanypotentialleakagealongtheway,andinsomecasesdetermineeligibilityforpolicyincentives.CommercialcontractswilldictateCO2ownershipinmostcases,althoughexistingregulationscaninfluenceownershipobligations,especiallyforCO2transport.Common,contractandprivatecarriermodelscanbeusedforCO2transport;unlikeprivatecarriersthatowntheCO2untilthepointofdeliverytoathirdparty,neithercommonnorcontractcarrierswillassumeownershipoftheCO2theytransport.ThesemodelsareexplainedinfurtherdetailinChapter5.Injurisdictionswithanexistingoilandnaturalgasindustry,pipelineregulationscouldbeextendedoradaptedtocoverCO2transport.Forexample,intheUnitedStates,CO2pipelineslargelyoperateasprivatecarriers,owningtheCO2inthepipelineuntilitisultimatelydeliveredtoathirdparty.Thislargelymimicstheearlydaysofoilpipelinesinthecountry,whichoperatedasprivatecarriersuntilfederallawsandregulationsestablishedthemascommoncarriers.FrameworkscanalsoinfluenceCO2ownershiptransferasitrelatestothelong-termstewardshipofthestoragesite.Insomecases,suchasinNorway,thereisnoexplicitmentionofCO2ownershipanditisassumedthatCO2ownershipistransferredfromtheoperatortothegovernmentalongsidethetransferoflong-termstewardship.Inotherjurisdictions,suchasinNebraska(UnitedStates),thetitleofthestoredCO2isexplicitlymentionedintheregulationwhenaddressingthetransferoflong-termsiteresponsibilitytothegovernment.CCUSLegalandRegulatoryHandbookPAGE37Chapter3IEA.Allrightsreserved.EnvironmentalreviewsandpermittingTheenvironmentalreviewprocessforCCUSprojectsconsistsofseverallayersofassessmentsandpermittingrequirementsacrossthevaluechain.ExistingframeworkscantypicallyaddressthemajorityofreviewrequirementsforCO2captureandtransportinfrastructure,althoughsmallchangesmayneedtobemadetoregulationstoaccountfortechnicalrequirements.Incontrast,CO2storageinfrastructurerequirestargetedregulatoryattentioninordertominimisepotentialleakageandsafetyrisks.CCUS-specificapproaches,asoutlinedinthisreport,shouldbedevelopedtoensuresafeandsecureCO2storage.Governmentscanuseexistingoilandgasorminingframeworksasabasisforsomepermittingrequirementsandinjectionauthorisations.CCUSLegalandRegulatoryHandbookPAGE38Chapter3IEA.Allrightsreserved.EnvironmentalimpactassessmentsCompletionofanenvironmentalimpactassessment(EIA)isstandardpracticeformajorinfrastructureprojectsinmanyjurisdictionsandwouldtypicallybearequirementforanyprojectsreceivingmultilateralanddonorfinance.TheEIAshouldidentifylocalandregionalenvironmentalimpactsandprovideoptionsforminimisingthem.Impactsarelikelytoincludethoseassociatedwithemissionstoairandwater,theuseofwaterandsolidwastegeneration,aswellastheimpactsonorganisms,suchasaquaticlife,at-riskspecies,etc.ExistingEIAlawsorinternationalandcorporatestandardsarelikelytocoverthemajorsurfacecomponentsofaCCUSproject,suchasCO2source,captureinstallation,transportinstallation,wellsandanysurfacefacilitiesatinjectionsites.Similarly,anysurveyingactivitiessuchasseismicacquisitionarealsolikelytobecoveredbyappropriateEIAarrangements.WhiletheEIAprocessvariesdependingonthejurisdiction,themainstepstendtoincludethefollowing:•screening•scoping•analysisofalternativeoptions•projectdescription•environmentalbaselinereview•legislativereview•impactidentification,prediction,significanceandmitigation•environmentalmanagementplanandmonitoringprogramme•reporting•review•projectimplementationandoperation.GlobalexamplesandapproachesVictoria(Australia),NorwayandtheUnitedKingdomconsiderenvironmentalimpactintheassessmentforissuingstoragepermits.VictoriaandtheUnitedKingdomspecificallymentionhumanhealthintheassessmentforissuingstoragepermits.TheUnitedKingdomderivesitsenvironmentalprotectionrequirementsfromtheEuropeanUnionCCSDirective,toincludetheoperationofstoragesitesasanactivityforwhichthereisliabilityundertheEnvironmentalDamageRegulations.TheUnitedKingdomincludeslandprotectionandsustainabledevelopmentinitsenvironmentalprotectionregimefordevelopingCCUSprojects.Norway’sapproachputsanemphasisontheprotectionofthegeologicalareaofsubseareservoirandrequiresoperatorstoconsideranytransboundaryenvironmentaleffects.AspartoftheEIA,therelevantauthorityrequiresstorageoperatorstoassessandconsiderthefollowingenvironmentalconsequencesofthedevelopmentandoperationofastoragesite:CCUSLegalandRegulatoryHandbookPAGE39Chapter3IEA.Allrightsreserved.•Describedischargestoseaandemissionstoair.•Describeanymaterialassetsandculturalartefactsthatmaybeaffectedasaresultofthedevelopment.•Assesstheconsequencesofthechosentechnicalsolutions.•Clarifyhowenvironmentalcriteriaandconsequenceshavebeenusedasabasisforthechosentechnicalsolutions.•Describepossibleandplannedmeasurestoprevent,reduceandifpossiblecompensateforconsiderablenegativeenvironmentalimpact.CCUSLegalandRegulatoryHandbookPAGE40Chapter3IEA.Allrightsreserved.PermittingandauthorisationJustaswithanymajorindustrialproject,awell-functioningandclearpermittingprocessisimportantforCCUSprojects.Toensurethattherelevantauthoritycanassessandprocesspermitapplicationsinatimelymanner,governmentsshouldmakesurethattherelevantregulatoryauthorityhasadequateresourcesandcapacity.Inmanyjurisdictions,permittingofCO2capturefacilitieswillnotrequiremajormodificationstoexistinglawsandregulations.PermittingofCO2pipelinesislikelytoinvolvethemodificationofexistinglawsratherthantheintroductionofalargetrancheofspecificnewmeasures.WhilethepropertiesofCO2leadtodifferentdesignspecificationscomparedwithnaturalgas,CO2transportbypipelinebearsmanysimilaritiestohigh-pressuretransportofnaturalgas.Fromapermittingperspective,thismeansthatexistinglegalandregulatoryframeworksfortheoilandgasindustriescanbeusedtosupportthedevelopmentofCO2pipelines.Forexample,keyregulatoryconsiderationsforCO2transportthatmayalsoapplytoexistingframeworksinclude:•Health,safety,civilandenvironmentalprotectionrules.•Pipelinesiting,routingandrights-of-wayrequirements.•Eminentdomainauthorisations.11Eminentdomainreferstothepowerofthegovernmenttoexpropriateprivatepropertyandconvertittopublicuse,providedthatadequatecompensationisgiventothepropertyowners.•Lawsrelatingtothereuseofpipelineinfrastructuresordecommissioning.InsomecasesitmaybenecessarytodevelopsecondaryguidelinesunderexistinglegislationtocoverspecifictechnicalmattersrelatingtoCO2transport,suchaspropertiesoftheCO2streamandpressureandreleasecharacteristics.PermittingprocessesforCO2storagetypicallyinvolvetwomainphases:•Authorisationforsiteexplorationcanbeimplementedindifferentways,varyingfromasingleauthorisationorlicencetoacombinationofmultipleauthorisationsorlicences.GiventhesimilaritiesbetweenthetechniquesusedtoexploreforoilandgasandthoseusedtoexploreforCO2storage,oilandgasframeworkscanactasabasisforCO2permittingarrangements.Keyareasthatexplorationauthorisationshouldaddressincludeclarificationofrights,exclusivityofinformationanddevelopment,time-limitingauthorisationsandstoragemarketoperation.•Authorisationforinjectionandstorageactivitiesshouldrequiresignificantdetailonhowtheprojectwilloperate.Thisincludesmodellingresults,amonitoringplan,anddetailsonhowtheprojectwillbeclosed,suchasdecommissioningandrehabilitationplans.CCUSLegalandRegulatoryHandbookPAGE41Chapter3IEA.Allrightsreserved.Inmanycases,frameworksrequirestorageoperatorsfirsttohaveanexplorationlicencebeforeapplyingforaninjectionandstoragepermit.GlobalexamplesandapproachesIssuanceofstoragepermitsisgenerallysubjecttoconditionssuchasthetechnicalcompetenceoftheoperator,itsfinancialstrengthandmonitoringrequirements.Theseconditionscanbeveryspecific.IntheEuropeanUnion,undertheCCSDirectivestoragepermitapplicationsmuststate,amongotherthings,thetotalquantityofCO2tobeinjectedandstored,prospectivesourcesandtransportmethods,compositionofCO2streams,injectionratesandpressuresandproposedmonitoringandpost-closureplans.InNorthernIreland(UnitedKingdom),storagepermitapplicationsmustinclude,amongotherthings:•Aproposedmonitoringplan.•Aproposedcorrectivemeasuresplan.•Aproposedprovisionalpost-closureplan.•Detailsoffinancialsecurity.Insomejurisdictions,onlyholdersofanexplorationpermitcanapplyforaninjectionandstoragepermit.InQueensland(Australia),partieswhoarenotholdersofanexplorationlicencecannotapplyforastoragelicence.However,inBritishColumbia(Canada),holdersofpetroleumandnaturalgaspermits,leasesorexplorationlicencesmayapplyforastoragereservoirlease.InNorway,anexplorationlicenceisneededtoundertakeexplorationactivities.Itiscontingentonthelicenseehavingthefinancialstrengthandtechnicalcompetencetoconductexplorationactivities.Similarly,thegrantingofanexplorationlicenceintheUnitedKingdommayincludeconditionsrelatingtofinancialsecurity,licencereviews,pre-andpost-siteclosure,andterminationofthelicence(includingfinancialarrangements).IntheEuropeanUnion,theholderofanexplorationpermitmusthavethesolerighttoexplorethepotentialofaCO2storagesiteandnoconflictingusesofthesitearepermittedduringthetimeinwhichtheexplorationpermitisvalid.Forastoragesite,permittingpriorityisthusgiventotheexplorationpermitholder,subjecttoseveralconditions.InAlberta(Canada),explorationpermitholdersarenotguaranteedtheexclusiverighttoevaluate,testorinjectcapturedCO2withinthepermitarea.PermittingforCO2storageintheUnitedStatesisoverseenatthefederallevelbytheEnvironmentalProtectionAgency(EPA)throughtheUndergroundInjectionControl(UIC)programme.ClassVIwellclassificationundertheUICprogrammeappliestowellsusedtoinjectCO2forgeologicalstorage.ThepermitapplicationandapprovalprocessforClassVIwellshastakenseveralyearsinsomecases,inpartduetothenoveltyandstructureoftheprocessitself.Bylaw,theEPAisthedesignatedauthorityfortheUICprogramme.However,ifcertainrequirementsaremet,thelegalframeworkallowstheEPAtodelegateClassVIwellapprovalandenforcementCCUSLegalandRegulatoryHandbookPAGE42Chapter3IEA.Allrightsreserved.authoritytostates–thisisknownasstate“primacy”.Inprinciple,stateprimacycanfreeupregulatorycapacityandresourcesattheEPAbytransferringtheresponsibilitytostateregulatoryauthorities.Inaddition,statesmaybebetterequippedtoaddresschallengesthatmayarisewithintheirownborders.However,inpracticestateregulatoryagenciesmayalsofacecapacityandresourcelimitationsonimplementingthereviewofClassVIapplicationsinatimelymanner.Todate,onlytwostates(NorthDakotaandWyoming)havebeengrantedClassVIprimacy,althoughothersareintheprocessofapplication(Louisiana)orpre-application(ArizonaandWestVirginia).TheprocessforallowingstatestoacquireprimacyforClassVIwellpermittingmayimproveovertime–whileittookNorthDakotanearlyfiveyearsforitsapplicationtobeapproved,Wyoming’sapplicationwasapprovedinlessthanayear.ThereareeffortstoimprovetheClassVIpermittingcapacityoftheEPAandstates.Fundingunderthe2021InfrastructureInvestmentandJobsActallocatesUSD25milliontotheUSEPAandUSD50milliontostatestoimplementClassVIpermittingregulations.Bycomparison,permittingforCO2transportinfrastructureintheUnitedStatesisusuallyhandledbyindividualstates,unlessapipelinecrossesfederallands.InCanada,CO2pipelinesalsofallunderprovincialregulation,unlessapipelinecrossesthroughmultipleprovincesortheCanadianborder.InstatessuchasTexasandNewMexico,CO2pipelineprojectshaveeminentdomainauthority,whichallowsdeveloperstherighttoacquirelandsforthepublicuseofpipelinedevelopment.InLouisiana,eminentdomainauthorityisexpandedtosurfaceandsubsurfacerightsforoperatorsthathaveobtainedapprovalfromtherelevantauthority.CCUSLegalandRegulatoryHandbookPAGE43Chapter3IEA.Allrightsreserved.PermittingtheIllinoisIndustrialCCSprojectintheUnitedStatesTheIllinoisIndustrialCarbonCaptureandStorage(ICCS)Project,withacapturecapacityof1MtCO2/year,isthelargestCCUSprojectintheUnitedStatesandtheonlyonewithdedicatedCO2storage.Theproject,whichcapturesCO2fromanethanolfacilityandinjectsitonsiteintoasandstoneformationforgeologicalstorage,wasoneofthefirstprojectstonavigatetheClassVIpermittingprocessundertheUSEPA.Between2010,whentheClassVIframeworkwasfinalised,and2021,theEPAonlyissuedsixpermits.TheFutureGen2.0projectreceivedfourpermits,buttheprojectwascancelledbeforethewellscouldbedrilledandconstructed.TheothertwopermitsweregrantedtoArcherDanielsMidlandforitstwoco-locatedprojectsatanethanolfacilityinIllinois:theIllinoisBasin-DecaturProject,alarge-scaleCO2storagedemonstrationproject,andICCS.BecausetheICCSprojectwasoneofthefirsttotestthenewregulatoryframework,thepermitapprovalprocesstookoverthreeyears,withadditionaltimeneededforreviewbeforeactualCO2injectioncouldoccur.TheClassVIframeworkisaphasedprocessthatstartswhentheprojectsubmitsitsapplicationtotheEPA.Afterapublicparticipationperiod,theEPAissuesaClassVIpermit,whichallowstheprojecttodrillaninjectionwellandsubmitpost-constructiondatatotheEPAforreview.TheEPAthenreviewsthisinformationforconsistencywiththepermitapplication,andifanyissuesorinconsistenciesareraised,theprojectmustmodifyitspermitapplication.Ifnoissuesareraised,theEPAgrantstheprojecttheauthoritytobeginCO2injection.ThetimeframebetweengrantingtheClassVIpermitandeventualCO2injectionauthorisationcanbehighlyvariable.Intotal,theentireprocessfortheICCSprojectfrominitialapplicationtoinjectionauthorisationtooknearlysixyears:•July2011:theICCSprojectsubmitteditsClassVIpermitapplicationtotheEPA.•April2014:theEPAgrantedadraftpermit.•May2014:theEPAconductedapublichearingtosolicitstakeholderfeedbackonthedraftpermit.•December2014:theEPAgrantedtheICCSprojectafinalClassVIpermit.•January2016-March2017:theICCSprojectsubmittedinitialdatatotheEPA,whichrequiredtheprojecttomodifyitspermitbeforeinjectioncouldbeauthorised.•April2017:theICCSprojectbeganCO2injection.TheICCSproject’sexperiencewiththefirst-everClassVIapplicationhighlightstheimportanceofearlyandtransparentengagementwithregulatorsandalsothevaluableexperiencegainedbybothregulatorsandprojectdevelopersinimplementingearlyprojectswithinnewregulatoryframeworks.CCUSLegalandRegulatoryHandbookPAGE44Chapter3IEA.Allrightsreserved.PublicengagementandconsultationLegalandregulatoryframeworksshouldhavemechanismstoengagethepublicandaddressconcernsregardingCCUSdevelopment.ProvidingopportunitiesforpublicstakeholderstoengageintheregulatoryprocessasitappliestoCCUSprojectsforsiteexploration,selectionandoperationisvitaltoensurethataprojectcanproceed.Associatedrisksandbenefits,aswellasthemeasuresbeingtakentomanagesuchrisks,shouldbecommunicatedtothepublictobuildconfidenceinthesafetyoftheproject.Manyjurisdictionswillalreadyhaveexistingregulatoryprovisionsdealingwithpublicconsultationprocedures,usuallyaspartofplanninglawframeworksandlinkedtotheenvironmentalreviewprocess.Inordertofosterpublicstakeholderconfidence,consultationsshouldtakeplaceasearlyaspossibleintheprojectdevelopmentprocess,withaviewtobeingabletoaccommodatefeedbackandmakeadjustmentstotheprojectasrequired.Effectivedisputeresolutionmechanismsarealsoneededtosupporttheresolutionofanyconflictsofinterest.Methodsforpublicengagementincludegovernmentcommittingto:•Transparentreportingoftheauthorisationprocess,includinghighlightingkeydevelopmentsandregulatorydecisionpoints,aswellasprovidingopportunitiesforpublicinputateachstageoftheprocess.•Communitymeetingsandworkshopstopresentanddiscussaplannedproject.•Internetportalscontainingtechnicalinformationrelatingtoaproject,includingriskassessmentsandmeasurestakentomitigaterisks.•Formalandinformaleducationalactivitiesthroughouttheauthorisationprocessandduringprojectdevelopment,operationandclosure.GlobalexamplesandapproachesArequirementandprocesstoengagethepublicarepresentinnearlyeveryjurisdiction.However,thestructureoftheprocessandtheactualinterfacewithstakeholdersvariesbetweenframeworks.InVictoria(Australia),theregulatoryframeworkprovidessignificantdetailonwhatinformationistobepublishedabouttheproject.Ittakesabottom-upapproach,wherepermitholdersarerequiredtoconsultcommunitiesandmunicipalcouncilsfirst.IntheUnitedKingdom,therelevantauthorityhasflexibilityinexcludingcertaininformationfromthepublicrecord,suchasdeterminingwhetherornotsomeinformationwouldprejudicetoanunreasonabledegreeaperson’scommercialinterests.AtthenationallevelintheUnitedStates,regulationstendtofocusonprovidingpublicnotice,ratherthanrequiringpublicengagement.CCUSLegalandRegulatoryHandbookPAGE45Chapter3IEA.Allrightsreserved.TherearefouroverarchingcategoriesofpublicnoticeforCCUSintheUnitedStates:•Rulemaking:thisprocessoccurswhentherelevantfederalauthorityisformingnew,orchangingexisting,regulations.Theopportunityforpublicengagementduringthisprocessismeaningful,asthepublichasanopportunitytoexpressviewstotherelevantauthoritybeforearegulationisfinalised,suchasoccurredwiththeClassVIpermittingrequirementsforgeologicalstorageofCO2.•Permitting:publicnoticeplaysanintegralroleinthepermittingprocessandisrequiredduringtheapplicationphase.Thismayincludeaccesstoreportingandnon-confidentialdata,notificationofprojectactivitiesviamailornewspaperandpublicmeetingsandhearings.•Environmentalreviews:publicconsultationisakeypillarofthereviewofpotentialenvironmentalimpactsofaCCUSproject.Activepublicinvolvementandengagementcanoccurthroughmeetings,hearings,workshops,callsandmediacommunication.•Environmentalinformation:publicnoticeopportunitiescanalsoexistthroughoutthelifetimeofCCUSprojectsthroughpublicaccesstoenvironmentalinformation.Forexample,theUnitedStatesframeworkinvolvesvariousreportingrequirementsforlargeprojects,whichthepubliccanaccessviaaninteractivewebsitewithmappingfeatures.OppositiontotheBarendrechtprojectintheNetherlandsProposedbyShellin2008,theCCUSdemonstrationprojectaimedtostoreapproximately10MtCO2inadepletednaturalgasreservoirlocatedunderthetownofBarendrecht.However,strongpublicoppositiondelayedtheproject’simplementationandcontributedtoitseventualcancellation.Overthecourseofseveralyears,publicoppositiontotheprojectgrew,creatinga“snowballeffect”inwhichunansweredinitialconcernsledtoaneventualdistrustoftheproject.Keylessonsfromthepublicengagementcampaignincluded:•AlackofadequaterepresentationfromthenationalgovernmentintheearlystagesoftheprojectledmanystakeholderstobelievethatShellwastheonlyproponentoftheproject.Thisgaverisetoalackofunderstandingoftheproject’sroleinthenationalcontextanditsimportanceinclimatemitigationefforts.•Insufficientcommunicationoftechnicalinformationtolocalleaderssparkedmorequestionsthananswers.•Limitedinformaldiscussionsbetweenthedevelopersandstakeholdersmeantthatitwasdifficulttodiscussprojectnuances.Thismagnifiedpolarisedopinionsontheproject.Involvingstakeholdersearlyoninthedevelopmentprocessisacriticalcomponentofbuildingpublictrust.Itisthereforeimportantforframeworkstorequireapublicengagementprocesssothattheregulatoryprocessaddressesconcernsandmitigatesfutureroadblocks.CCUSLegalandRegulatoryHandbookPAGE46Chapter3IEA.Allrightsreserved.DrawinglessonsfortheQuestCCSprojectinCanadaBuildingontheexperienceinBarendrecht,theShellQuestCCSprojectinAlbertaundertookextensivepublicoutreachwithasuccessfuloutcome.TheQuestproject,whichcapturesapproximately1.2MtCO2peryearforpermanentstorageinasalineaquifer,developedapublicengagementstrategyearlyoninthedevelopmentprocess,withthepurposeofdeveloping“mutuallyprosperous,long-termrelationshipswithneighbourslivingincloseproximitytoShell’soperations”.OnepartofthiseffortwasthecreationofaCommunityAdvisoryPanel,madeupoflocalresidents,membersoftheacademiccommunity,andrepresentativesfromlocalgovernmentandrelevantauthorities.Thepanelprovided,andcontinuestoprovide,aforumforstakeholderstoprovideinputonthedesignandimplementationoftheproject’sMMVplan.Anothersuccessfulelementoftheprojectwastheengagementofstakeholdersattheirownevents,suchasfairsorcommunityevents.Thishelpedreachabroaderaudienceandasetofcommunitymembersoutsidetraditionalengagementmeetings.Throughacomprehensivepublicengagementprogramme,theQuestprojectwasabletoachieveregulatoryapprovalsandpublicsupport.TheQuestprojectcontinuestoexperiencelocalsupportthroughitsextensivestakeholderengagementactivities.LegalandregulatorychallengestoCCUSprojectsintheUnitedStatesPublicsupportiscriticaltoensuringthatCCUSprojectsaredeveloped.Oppositiontoprojectscanariseintheformoflegalorregulatorychallenges,whichoftenrelatetoprojectedimpactsontheenvironmentandlocalcommunity.Challengescanoccurwhenaparty,whetheranindividualoranorganisation,filesalawsuitagainsttheCCUSprojectordeveloper.Insomejurisdictions,lawsuitscanalsobebroughtagainsttherelevantauthorityresponsibleforapprovingtheproject.Generally,theallegationisthattheprojectorrelevantauthorityhasviolatedexistinglaworregulatoryprocesses.Legalcasescantakeseveralmonthstoyearsinthecourtsystem,addingunforeseencostsanddelays.Challengescanalsooccurduringtheregulatoryprocess,suchasduringpublicconsultationbeforetheissuanceofpermits.ExamplesoflegalandregulatorychallengestoCCUSprojectsintheUnitedStatesarelimited,butcanprovideinsightintoanypotentialchallengestofutureprojects.In2014aprivateindividualfiledapetitionwiththeEPAagainsttheICCSprojectinIllinois,challengingaCO2storagepermitassociatedwiththeproject.Amongotherissues,theindividualarguedthatinissuingtheClassVIpermittotheICCSproject,theEPA(1)failedtoconsultwithotherrelevantauthoritiesregardingtheproject’simpactonendangeredspecies,and(2)failedtoincludeprovisionsinthepermitthatwouldproperlyCCUSLegalandRegulatoryHandbookPAGE47Chapter3IEA.Allrightsreserved.compensateIllinoispropertyownersforCO2thatmigratedintotheirporespace.Anappealsboardreviewedthechallengeandultimatelydecidedtodismissthepetitionbecausetheindividualdidnotfileanappealwithintherequiredregulatorytimeframe.In2015agroupoflandownersfiledalawsuitagainsttheEPA,challengingtheEPA’sissuanceofCO2storagepermitsfortheFutureGenproject,alsoinIllinois.ThegroupinitiallyaskedtheEPAtoreviewthepermitsthrougharegulatoryappealsprocess;however,afterbeingdeniedareview,thegroupfiledapetitionincourt,askingajudgetoreviewthecase.AroundthistimetheFutureGenprojectwasexperiencingotherdelaysandchallengesthatultimatelyresultedinthesuspensionoffederalfunding.Shortlybeforelegalargumentsweresettobeginforthecase,theFutureGenprojectdetermineditdidnothaveenoughfundingtocontinuewithdevelopment.In2016afederaljudgeruledthatthelawsuitagainsttheEPAwasnolongerrelevantandclosedthecase.WhilelegalandregulatorychallengestoCCUSprojectsarenotgenerallytheprimaryreasonsbehindaproject’scancellation,thechallengesmayresultinaddedcostsanddelays.Thiscanevenimpacttherelevantauthority’sabilitytoissuepermits,asstaffresourcesmaybeaffectedbyongoingchallenges.Byallowingforpublicengagementopportunitiesandearlystakeholderconsultation,frameworkscanhelptomitigateagainstfuturechallenges.Publicengagementefforts:TomakomaiDemonstrationProjectTheTomakomaiprojectisthefirstlarge-scaleCCUSdemonstrationprojectinJapan.During2016-2019theprojectcapturedCO2fromacoastaloilrefineryinHokkaidoforoffshorestorageinasalineaquifer.Akeyfactorintheproject’ssuccesswastheabilityoftheprojectdeveloper,JapanCCSCo.,Ltd(JCCS),tosecurepublicsupportthroughasustainedpublicengagementcampaign.JCCSdesignedandconductedpublicoutreachwiththeobjectiveofensuringthatlocalstakeholdersinTomakomaiCity(population170000)andsurroundingareasunderstoodtheproject,thesafetyandsecurityofCO2storage,andthepurposeofCCUS.Publicoutreachincluded:•DisseminatinginformationaboutCCUS:In2011asurveyoflocalresidentsfoundthatthemajorityofrespondentswantedopendisclosureofinformation,confirmationofsafetyandreliability,anddisseminationofCCUSinformation.Inresponse,JCCShelddozensofpanelexhibitionstoinformlocalresidentsabouttheneedforCCUS,itsroleinclimatemitigation,andexamplesofcurrentprojectsoperatingsafely.•Maintainingconstantandthoroughco-operationwiththegovernment:JCCSprovidedpromptinformationtorelevantauthorities,fisheryco-operatives,portoperatorsandlocalindustries.Inannualforums,hostedbyanassociationcomprisedoflocalgovernmentandindustryrepresentatives,CCUSLegalandRegulatoryHandbookPAGE48Chapter3IEA.Allrightsreserved.theMinistryofEconomy,TradeandIndustrywouldpresentontheproject’sstatus.Thisgavelocalresidentsasenseofeasethatthenationalgovernmentandlocalgovernmentssupporttheprojectandhaveclearlydefinedroles.•Avoidingaone-wayflowofinformationbyencouragingconversationwithallparties:Atthestartofoperations,residentsexpressedconcernsaboutCO2leakage.However,aslocaloutreachactivitiescontinued,thefrequencyoftheseconcernsdecreased.•Designingactivitiestocreateapersonalconnection:Eventstargeteddifferentagegroups(children,adultsandseniors)withtheaimofcreatingseveralopportunitiestopromoteunderstandingofCCUS.Forexample,activitiesforchildrenfocusedonhands-onexperiments,whileactivitiesforadultsaimedtodispelconcernsaboutCCUSbyexplainingthetechnology.•Considerationoflocalcommunitybenefits:JCCSusedawebsite,in-personevents,posters,brochures,Mangacomics,symposiumsandacademicconferencestohighlightthebenefitsoftheprojecttothelocalcommunity.Inlate2019theprojectachieveditsdemonstrationtargetof0.3MtofCO2capturedandceasedinjectionasplanned.MonitoringofthestoredCO2willcontinueduringthepost-injectionperiod.CCUSLegalandRegulatoryHandbookPAGE49Chapter3IEA.Allrightsreserved.Enablingfirst-moverprojectsThedevelopmentofcomprehensivelegalandregulatoryframeworksforCCUScantakeseveralyears,butthereareopportunitiesforgovernmentstofacilitatefirst-moverorearlyCCUSprojectsinparallelwiththedevelopmentoftheseframeworks.Optionsincludeproject-specificlegislationandpreferentialarrangements.SuchstrategiescanbeimportanttooffersupportforearlyCCUSdeployment,whilestillmaintainingthesafety,securityandenvironmentalintegrityofCCUSprojects.Inturn,theseprojectscanoffervaluablelessonsandpracticalexperiencetoinformthedevelopmentofCCUSregulations.CCUSLegalandRegulatoryHandbookPAGE50Chapter3IEA.Allrightsreserved.One-offorproject-specificlegislationFirst-moverprojectscanacceleratethegeneraldevelopmentofCCUStechnologies.Inadditiontothetechnicallearningsofearlyprojects,severallegalandregulatorylessonsmaybelearnedtohelpdeveloporimproveaCCUS-specificframework.However,somelevelofexistingregulationandlegalparametersmustalreadybeinplaceforfirst-moverprojectstostartoperation–potentiallyleadingtoa“chickenandegg”problem.InsomeregionswherenoexistinglegalorregulatoryframeworkswereinplaceforCCUS,project-specificregulationsorexemptionsfromexistingregulationshavehelpedmoveearlyprojectsforward.GlobalexamplesandapproachesInVictoria(Australia),WesternAustralia,Illinois(UnitedStates)andAlberta(Canada),legislationhasbeenpassedtofacilitatethedevelopmentofspecificprojects.InVictoria,theCO2CRCOtwayProjectwasafirst-of-a-kindpilotprojectandAustralia’sfirstend-to-enddemonstrationofCCUS.Theprojectwasinitiatedin2004whentherewasnolegislationforregulatingCCUSactivities.Duringthesecondphaseofthepilotproject,VictoriafinalisednewCO2storagelegislation.However,thelegislationdidnotfullycoverthecontinuationoftheOtwaypilotandproject-specificregulationwasputinplacetoexempttheprojectfromcertainpartsofthenewlegislation.InWesternAustralia,theGorgonCO2injectionprojectwasthesubjectofproject-specificlegislation.Thelegislationprovidedamechanismfortransferringthelong-termliabilityforthestoredCO2tothestateandCommonwealthpost-closure,subjecttospecificconditions.InIllinois,project-specificlegislationprovidedtheoriginalFutureGenprojectwithadequateliabilityprotection,landuserightsandpermittingcertainty.Althoughtheprojectwasneverrealised,thelegislationcontainedprovisionsconcerningthetransferoftitleandassociatedCO2storageliabilitiestothestate.CCUSLegalandRegulatoryHandbookPAGE51Chapter3IEA.Allrightsreserved.PreferentialapproachesandprojectsInanefforttojump-startindustryinterestanddeployment,governmentscanalsodesignateCCUSprojectsasstrategicallyimportanttoreachingclimategoals.Thismayallowprojectstobenefitfromstreamlinedapprovalsoracceleratedreviews.GlobalexamplesandapproachesInIndonesia,underadraftministerialregulation,earlystoragedevelopmentactivitieswillbelimitedtotheholdersofexistingoilandgasleases.Thiscanexpeditestoragedevelopmentasthegeology(includingdepletedoilandgasreservoirs)intheseareasisalreadywellunderstood,withlargeamountsofdataavailable,andthecompaniesholdingtheleaseshavethesubsurfaceexpertiseandprojectmanagementexperienceneededforCO2storagedevelopments.IntheEuropeanUnion,theTEN-ERegulationisapolicythatfocusesonlinkingtheenergyinfrastructureofEUcountries.Itdefinesthecriteriaforprojectsofcommoninterest(PCIs).TheregulationwasupdatedinMay2022toalignwiththeEuropeanUnion’s2050climateneutralityobjectives.Theprioritythematicareafor“cross-borderCO2networks”includesCO2transportandstorageinfrastructurebetweenEUmemberstatesandwithneighbouringthirdcountries.Eligibleinfrastructureincludespipelines,CO2storagefacilitieslinkedtocross-bordertransportofCO2(excludedpriortotheupdate),andfixedfacilitiesforliquefactionandbufferstoragethatareassociatedwithfurthertransportation.Othertransportmethods–ships,barges,trucksandtrains–arenowreferenced,butdonotappeartobeconsideredeligible.Theinfrastructureforgeologicalstoragethatisapplicabletothisregulationistheassociatedsurfaceandinjectionfacilitiesnecessarytoallowthecross-bordertransportandstorageofCO2,andCO2transportinfrastructureiscurrentlylimitedtopipelines.Inadditiontoreceivingaccesstofunding,projectsthathavePCIstatusmayalsoreceivepreferentialtreatmentfromrelevantauthoritiesinthecontextofpermittingandenvironmentalassessment.PCIscanbenefitfromacceleratedplanningandpermitting,asingleauthorityforobtainingpermits,andloweradministrativecostsfromstreamlinedenvironmentalreviewprocesses:•Article7ofTEN-Egives“prioritystatus”toPCIprojects,whichensuresrapidadministrativeprocessingandallowstheprojectsthestatusofthehighestnationalsignificancepossibleinthepermitgrantingprocess.•Article8requiresmemberstatestodesignateonenationalauthorityresponsibleforfacilitatingandco-ordinatingthepermitgrantingprocess.CCUSLegalandRegulatoryHandbookPAGE52Chapter4IEA.Allrightsreserved.Chapter4LegalandregulatoryissuesforCO2storageCCUSLegalandRegulatoryHandbookPAGE53Chapter4IEA.Allrightsreserved.StoringCO2ingeologicalformationsSchematicofonshoreandoffshoreCO2storageIEA.Allrightsreserved.CCUSLegalandRegulatoryHandbookPAGE54Chapter4IEA.Allrightsreserved.EnsuringsafeandsecurestorageThesafetyandsecurityofgeologicalstorageareessentialtothesuccessfulwidespreadadoptionandsustainedpublicacceptanceofCCUS,anditseffectivenessasacarbonmitigationmeasure.GeologicalstorageinvolvesinjectingCO2intoasuitablegeologicalformationwhereitwillremaintrappedinadefinedarea.Technical,economicandsocialcharacteristicsdeterminewhichresourcesaresuitabletodevelopintoCO2storagesites.TheoverwhelmingfocusoflegalandregulatoryframeworksforCCUSisonensuringthesafetyandsecurityofgeologicalstoragesites.Tothisend,manyframeworkshavereliedonmethodologiesestablishedintheIPCCGHGInventoryGuidelines.Thischapterconsidersthekeylegalandregulatoryissuesfortheinitialassessmentofstorageresourcesandthedevelopment,constructionandoperationofasite.CCUSLegalandRegulatoryHandbookPAGE55Chapter4IEA.Allrightsreserved.LegalandregulatoryconsiderationsduringresourceassessmentResourceassessmentSitedevelopmentConstructionOperationClosurePostclosureandbeyondDescription•ProcesstoidentifyandstudyCO2storageresourcesinaregionwiththeaimofidentifyingresourcesthatcanbedevelopedintostoragesites•Projectplanningaimedatensuringasitehascompletedalldevelopmentanddesignactivities•Constructionofsurfacefacilities,connectiontotransportationlines,expansionofMMVinstrumentation,anddrillingofanyadditionalwells•PeriodoftimeduringwhichCO2isactivelyinjectedintothesubsurface•Injectionhasceased•Decommissioningofinfrastructurenotrequiredtomonitorthesite•Abandonmentandclosureofanywellsnotrequiredformonitoring•PeriodafterinjectionceaseswheretheCO2plumeisstillactivelybeingmonitored•Remediationactivitiesasrequired•Transferofsiteresponsibility,ifapplicableLegalandregulatoryissues•Regionalscreening,sitescreening,siteselection,initialcharacterisation,detailedcharacterisation•Ownershipofporespace•Othercross-cuttingissues:interactionwithothersurfaceandsubsurfaceresources•MMVplans•Storagesiteinspections•Definingoperationalliabilitiesandfinancialsecurity•Othercross-cuttingissues:environmentalimpactassessments,permitting,publicengagement,project-specificlegislation,preferentialrightsandprojects,sharedstorageinfrastructuretransitionfromCO2-EORtodedicatedstorage•Siteclosureprocessandcertification•Long-termresponsibilitypost-closure(e.g.maintenanceofstoragesiteandlong-termliabilities)•Financeassurancesoflong-termsitestewardshipIEA.Allrightsreserved.CCUSLegalandRegulatoryHandbookPAGE56Chapter4IEA.Allrightsreserved.StorageresourceassessmentTheassessmentofCO2storageresourcesinvolvesidentifyingthephysical,chemicalandgeologicalcharacteristicsofapotentialresourcetodeterminehoweffectiveitwillbeattrappingandstoringCO2.Italsoinvolvesassessmentofsocialandenvironmentalconsiderations.Governmentscanplayanimportantroleintheprocessbyconductingcountrywideassessmentstoidentifythemostsuitableorprospectivestorageresources.Jurisdictionswithanoilandgassectormaybenefitfromexistingsubsurfacedataalreadycollectedbytheindustry.Thesedataareoftenproprietarysorelevantauthoritiesshouldworkwithindustrytomakebestuseofthedata.TherearemanyparallelsbetweenCO2storageandoilandgasresourceassessments–startingfromaregionalevaluationofprospectiveresourcesthatreliesprimarilyonexistingdata,tomoredetailedevaluationsofprospectsthatappeartobepromisingsites.Thedetailedevaluationsofoilandgasresourcestypicallyinvolvetheuseofsimilarlogging,testingandmodellingtechniquesasthoseneededtoperformsitecharacterisationforCO2storagesites.Thestorageresourceassessmentgenerallyincludesthefollowingsteps:•regionalscreening•sitescreening•siteselection•initialcharacterisation•detailedcharacterisation.Itisimportantthatlegalandregulatoryframeworkssettheparametersoftheresourceassessmentprocesstoensurethatonlysuitableresourcesaredeveloped.Frameworksshouldensurethatadequategeologic,hydrogeologic,geochemicalandgeomechanicaldataarecollectedandanalysed.Thisdatashouldbeusedtoinformthedevelopmentofinjectionwellconstructionandoperatingplans,provideinputsforthemodellingrequirementstocharacterisereservoirbehaviour,andestablishbaselineinformationformonitoringdatacollectedoverthelifeoftheinjectionperiod.GlobalexamplesandapproachesInNorwayandtheEuropeanUnion,thesuitabilityofastoragelocationisdeterminedthroughtheassessmentofapotentialstoragelocationandsurroundingareaaccordingtosetcriteria.Aformationcanonlybeselectedasastoragesiteiftherearenosignificantenvironmental,healthorleakagerisks.IntheEuropeanUnion,thesecriteriaincludethefollowingstepsthatmustbecarriedoutaccordingtobestpracticesatthetimeofassessmentandtocertainspecifiedstandards:•datacollection•buildingthethree-dimensionalstaticgeologicalearthmodelCCUSLegalandRegulatoryHandbookPAGE57Chapter4IEA.Allrightsreserved.•characterisationofthestoragedynamicbehaviour,sensitivitycharacterisationandriskassessment.AsimilarapproachistakeninAustralia.Explorationpermitholdersmustundertakeaworkprogrammeofsitecharacterisationtoestablishthecharacteristicsandextentofundergroundstorageformationsinthepermitarea.Aspartofthis,permitholdersmustassessthefeasibilityofinjectingCO2intoanyidentifiedstorageformationsandtheirsuitabilityforpermanentstorageinasafemannerthatwillnotcompromisetheintegrityofthestorageformation.IntheUnitedStates,CO2storagesiteoperatorsarerequiredtoobtainaUICClassVIpermitfromtherelevantauthorityinordertoinjectCO2forgeologicalstorage.TheregulatoryframeworkseekstoidentifyappropriateCO2storagesitesthatwill“provideadequatestoragecapacitytostoretheinjectedcarbondioxideandacompetentconfiningzonethatwillcontaintheinjectedcarbondioxide”.TheCO2storageframeworkintheUnitedStatesisbasedonlegislationprotectingwaterresources–assuch,regulationsforCO2injectionandstoragetendtofocusonundergrounddrinkingwaterresources.Theregulatoryframeworkoutlinesseveralrequirements,includingspecificsitecharacterisationrequirementstoidentifypotentialrisksandeliminateunacceptablesites.RegulationsrequireClassVIpermitapplicantstosubmitavastarrayofinformationbeforeCO2injection,suchas:•Mapsandcrosssectionsoftheareaofreview.•Location,orientationandpropertiesofknownorsuspectedfaultsandfracturesthatmaytransectthestoragesite,alongwiththedeterminationthattheywillnotinterferewithCO2containment.•Dataonthedepth,arealextent,thickness,mineralogy,porosity,permeabilityandcapillarypressureoftheinjectionandconformingzones.•Informationonfractures,stress,ductility,rockstrengthandinsitufluidpressureswithintheconformingzones.•Informationontheseismichistoryofthearea.•Geologicalandtopographicalmapsandcrosssections.•Mapsandstratigraphiccrosssectionsindicatingthegenerallimitsofdrinkingwaterresources,waterwellsandsprings,andtheirpositionsrelativetotheinjectionzonesanddirectionofwatermovement.•Baselinegeochemicaldataonsubsurfaceformations.Thesitecharacterisationprocessincludesageneralcharacterisationofregionalandsitegeology,followedbydetailedcharacterisationoftheinjectionzoneandconformingzones.Importantly,sitecharacterisationisaniterativeprocess,wherebydataareupdatedandrefinedbeforeoperationofthewell.Finalsitecharacterisationdataarecollectedastheinjectionwellisdrilled,coresamplesaretakenandanalysed,andtestsareperformedasdescribedintherelevantregulations.CCUSLegalandRegulatoryHandbookPAGE58Chapter4IEA.Allrightsreserved.OwnershipofporespaceInmanyjurisdictions,thesubsurfacegeology–includingtheporespaceintowhichtheCO2isinjected–isownedbythestateorprovince.However,thisisnotthecaseinalljurisdictions.Forexample,intheUnitedStatessubsurfaceownershiprightsusuallyrestwiththesurfaceowner.Whereporespaceormineralrightsareownedbythestateorfederalgovernment,accesscanbegrantedthroughvariousinstrumentssuchasleasesortenureagreements.Wheretherightstothesubsurfaceareheldprivately,accessisusuallynegotiatedthroughprivatecontracts.GlobalexamplesandapproachesInVictoria(Australia)andNorwaythestate,andinAlberta(Canada)theprovince,ownsallundergroundgeologicalstorageformationsandporespacebelowthesurface.InAlberta,legislationdesignatesthegovernmentofAlbertaastheownerofallporespace,withtheexceptionofporespaceunderfederalland.Accordingly,aCO2storageprojectrequiresagrantofrightsfromthegovernmentwhetherbywayofleaseortenureagreementcoveringtheporespace.IntheUnitedStates,porespacerightsarecomplexinmanystates.Ingeneral,thesurfaceownerhastherightstotheporespaceundertheproperty.AtleastfourstateshaveclarifiedporespaceownershipspecificallyforCO2storage:•MontanagivesauthorityregardingundergroundCO2storagetotherelevantstateauthorityandgrantssurfaceownersporespaceownership.•NorthDakotadefinesporespaceforCO2ingeologicalstorageandestablishestheporespaceaspropertyofthesurfaceowner.•Wyomingstatesthatthesurfaceownerispresumedtoownthegeologicalporespacebelowthesurface,butaddsthatmininganddrillingrightswillbegivenahigherprioritythangeologicalstorageactivities.•Nebraskaconfersporespacerightstothesurfaceowner,unlessthe“reservoirestate”hasbeenpreviouslyseveredfromsurfacerights.Furthermore,itisnotuncommonforthemineralrightsofapropertytobeseparatedfromthesurfaceownership.Forexample,anoilandgascompanymayownthemineralrightstoseveralprivateproperties–thisallowsthecompanytoaccessasurfaceowner’sporespaceasreasonablynecessarytoproducetheoilandgasontheproperty.Thisisnotonlylimitedtoprimaryoilandgasproduction;mineralrightsalsoextendtoCO2usedinenhancedoilrecoveryaslongasthepurposeoftheoperationistoextractminerals.Incontrast,theinjectionofCO2forthesolepurposeofgeologicalstoragedoesnotinvolvetheextractionofminerals,creatingcomplexporespaceissuesinmanystates.CCUSLegalandRegulatoryHandbookPAGE59Chapter4IEA.Allrightsreserved.Legalandregulatoryconsiderationsduringsitedevelopment,constructionandoperationResourceassessmentSitedevelopmentConstructionOperationClosurePostclosureandbeyondDescription•ProcesstoidentifyandstudyCO2storageresourcesinaregionwiththeaimofidentifyingresourcesthatcanbedevelopedintostoragesites•Projectplanningaimedatensuringasitehascompletedalldevelopmentanddesignactivities•Constructionofsurfacefacilities,connectiontotransportlines,expansionofMMVinstrumentationanddrillingofanyadditionalwells•PeriodoftimeduringwhichCO2isactivelyinjectedintothesubsurface•Injectionhasceased•Decommissioningofinfrastructurenotrequiredtomonitorthesite•Abandonmentandclosureofanywellsnotrequiredformonitoring•PeriodafterinjectionceaseswheretheCO2plumeisstillactivelybeingmonitored•Remediationactivitiesasrequired•Transferofsiteresponsibility,ifapplicableLegalandregulatoryissues•Regionalscreening,sitescreening,siteselection,initialcharacterisation,detailedcharacterisation•Ownershipofporespace•Othercross-cuttingissues:interactionwithothersurfaceandsubsurfaceresources•MMVplans•Storagesiteinspections•Definingoperationalliabilitiesandfinancialsecurity•Othercross-cuttingissues:environmentalimpactassessments,permitting,publicengagement,project-specificlegislation,preferentialrightsandprojects,sharedstorageinfrastructuretransitionfromCO2-EORtodedicatedstorage•Siteclosureprocessandcertification•Long-termresponsibilitypost-closure(e.g.maintenanceofstoragesiteandlong-termliabilities)•Financeassurancesoflong-termsitestewardshipIEA.Allrightsreserved.CCUSLegalandRegulatoryHandbookPAGE60Chapter4IEA.Allrightsreserved.Measurement,monitoringandverificationplansAmeasurement,monitoringandverification(MMV)planorprocessisatthecoreofanyefforttoensuresafeandsecureoperations.ThepurposeofanMMVplanistoensurethattechniquesandprocessesareinplacetodetectandminimiseCO2migrationorleakage.MonitoringaCO2storagesitewillgenerallyinvolveaportfoliooftechniquestomonitorfortemperatureandpressurechanges,seismicactivityandotherindicators.TheseareusedtodetectandobserveinjectedCO2andtomonitortheprimarystorageformation,storagecomplex,overburdenandsurfaceforchangesthatcouldindicateleakage.MMVplansshouldnotbestaticandtendtochangeinscopeasaprojectprogressesfromthepre-injectionphase,throughtheinjectionphaseandtothepost-injectionphase.Assuch,itisimportantthatframeworksadoptanon-prescriptiveapproachbasedonwhatmonitoringshouldachieve,ratherthanadoptingspecifictechniques.Thiswillalsoensureregulationsremainappropriateasmonitoringtechnologiesandtechniquesevolve.Ataminimum,anMMVplanmustdetailamonitoringprogrammeandmethodssufficientto:•Establishandmaintainabaselinesurveyforthestoragesiteuntilinjectioncommences.•Monitortheinjectionfacilities,thestoragesite(includingtheCO2plume)andthesurroundingenvironment.•Comparetheongoingmonitoringresultsagainstthebaselinesurveyforthestoragesite.•Comparetheactualbehaviourofthestoragesiteagainstitsanticipatedbehaviourbasedontheresultsofthesitecharacterisationprocessandmonitoringresults.•Detect,attributeandassesssignificantleakage,unintendedmigrationorotherirregularityinthestoragesite.•Quantify,asrequiredbytherelevantauthority,thevolumesofCO2associatedwithsignificantleakageorunintendedmigration.•DetectmigrationofCO2.•Detectsignificantadverseeffectsonthesurroundingenvironment.•Assesstheeffectivenessofanycorrectivemeasurestaken.ItiscommonforframeworkstorequireperiodicupdatestotheMMVplan,whichprovidenewmonitoringdataofthestoragesite.Riskassessmentisaniterativeactivity,andmonitoringresultsareusedtoinformandupdatetheprojectriskassessment.Often,thisisaprerequisiteforthetransferofownershipandliabilitytotherelevantauthority,ifapplicable.GlobalexamplesandapproachesInSouthAustralia,operatorsarerequiredtoprovideareportregardingtheirgeophysicalactivitiesonaregularbasistotherelevantminister.InVictoria,alsoinAustralia,operatorsmustCCUSLegalandRegulatoryHandbookPAGE61Chapter4IEA.Allrightsreserved.submitaninjectionandmonitoringplantotherelevantminister,settingout,amongotherthings:•Adescriptionoftheproposedmonitoringtechniques.•Amonitoringandverificationplandetailinghowthebehaviourofanystoredgreenhousegassubstancewillbemonitored.•Anestimateofthecostofthemonitoringandverificationactivitiestobeundertakenafterthegreenhousegasinjectionandmonitoringhasbeentransferredtothestate.IntheEuropeanUnion,operatorsarerequiredtomonitortheinjectionfacilities,thestoragecomplexandwhereappropriatethesurroundingenvironment,foranumberofspecifiedpurposes,including:•ComparisonofactualandmodelledbehaviourofCO2andformationwater.•Detectionofsignificantirregularities,migrationorleakage.•Detectionofsignificantadverseeffectsontheenvironment.Operatorsmustthensubmitareporttotherelevantauthoritiesatleastonceayearwithdetailsofthemonitoringresults,andthequantitiesandpropertiesofCO2streamsdeliveredandinjected.Operatorsarealsoresponsibleformonitoringandreportingmeasuresafterastoragesitehasbeenclosed,butmonitoringmaybereducedtoalevelthatallowsfordetectionofleakagesorsignificantirregularitiesaftertransferofresponsibility.Therearespecialcriteriainplaceforestablishingandupdatingthemonitoringplanandforpost-closuremonitoringactivities.InNorway,therelevantauthoritymonitorstheinjectionfacilitiesandstoragelocationatleastonceperyearuptothreeyearsaftersiteclosure,andtheneveryfiveyearsuntilresponsibilityhasbeentransferredtothegovernment.InAlberta(Canada),updatedMMVplansmustbesubmittedeverythreeyearsalongwithanupdatedclosureplan.UpdatedresultsareincorporatedintosimulationsandmodelssothatactualandpredictedbehaviourcanbecomparedandtheMMVplancanbeupdatedasnecessary.IntheUnitedStates,storageoperatorsmustincludethefollowinginformationintheMMVplan,inadditiontoothermonitoringandreportingrequirements,tobereportedannuallytotherelevantauthority:•ThemassofCO2injectedintothesubsurface.•ThemassofCO2producedfromoilorgasproductionwellsorfromotherfluidwells.•ThemassofCO2emittedfromsurfaceleakage.•ThemassofCO2emissionsfromequipmentleaksandfromventedemissionsofCO2sources.•ThemassofCO2sequesteredinsubsurfacegeologicalformations,calculatedbysubtractingtotalCO2emissionsfromCO2injectedinthereportingyear.•ThecumulativemassofCO2reportedassequesteredinsubsurfacegeologicalformationsinallyearssincethefacilitybecamesubjecttotheregulation.CCUSLegalandRegulatoryHandbookPAGE62Chapter4IEA.Allrightsreserved.StoragesiteinspectionsCCUSregulatoryframeworksshouldallowtherelevantauthoritytoverify,bywayofstoragesiteinspectionsanddatareporting,thatstorageprojectsareperformingasintended.InspectionsarenotuniquetoCCUSoperationsandoccurinmostindustrialoperations.Theyinvolveaccesstobothpropertyandinformation.Inspectionsaremorelikelytobenecessaryintheearlystagesofaprojectandduringtheinjectionphasethanlaterintheprojectlifecycle,giventhatthesearetheperiodswhentheleastisknownaboutthestoragesite.Regulatoryframeworksshouldalsoallowtheauthoritytotakeenforcementmeasures.GlobalexamplesandapproachesItiscommontorequireannualinspectionsduringactiveCO2injectionandacertainlevelofinspectionspostsiteclosure.InNorthernIreland,annualroutineinspectionsarerequiredafterCO2injectioncommencesupuntilthethirdanniversaryofsiteclosure.Routineinspectionsarerequiredeveryfiveyearsduringthepost-closureperiod.Inaddition,siteinspectionsareauthorisediftherelevantauthoritybecomesawareofleakage,significantirregularitiesorabreachofpermitterms.IntheEuropeanUnionandNorway,routineinspectionsmusttakeplaceuntilthetransferofresponsibilitytothestate.TheCCSDirectiveprovidesforasystemofroutineandnon-routineinspectionsofstoragecomplexesthatareundertakenatleastannuallyuntilthreeyearsaftersiteclosureandeveryfiveyearsthereafteruntiltransferofresponsibilitytotherelevantauthority(afterwhichtheycease).Non-routineinspectionscanoccurincertainspecifiedsituations.InNorway,theministryistoinspectthestoragelocationatleastonceperyearuptothreeyearsafterclosure,andtheneveryfiveyearsuntiltheresponsibilityhasbeentransferredtothestate.InSaskatchewan(Canada),inspectionsaremoreadhoc:therelevantauthoritiescanmakeinquiriesandconductinspectionsandexaminations.Inordertoachievecompliancewiththeregulatoryframework,therelevantauthoritycanissuecertainenforcementmeasures.InVictoria(Australia),therelevantministercanissueimprovementnoticesthatrequireanoperatortotakeactionwithinaspecifiedperiodtoremedyaviolationorbreachoflicenceconditions.ThiscanincludeprohibitionnoticesagainstthecarryingoutofanyCO2injection,monitoringorothersequestrationactivity,oranyotherspecifiedactioninordertoavoidanimmediaterisktothepublic,propertyortheenvironment.Similarly,intheUnitedKingdomandtheEuropeanUnion,therelevantauthoritycangivedirectionstolicenceholdersinordertoachievecompliance.CCUSLegalandRegulatoryHandbookPAGE63Chapter4IEA.Allrightsreserved.OperationalliabilitiesandfinancialsecurityItisgenerallyacceptedbyindustryandauthoritiescurrentlyinvolvedinCCUSthatthestoragesiteoperatoristheentitythatisbestplacedtobearanyliabilityfordamagecausedbyastoragesiteduringtheexploration,operationandclosureperiods.Itisimportanttoensurethattheoperatorisalsofinanciallycapableofcoveringanypotentialproblemsthatmayariseduringsiteoperations.GlobalexamplesandapproachesInAustralia,operatorsinSouthAustraliaandVictoriamustcarryouthumanhealthandenvironmentalimpactassessmentsforthestoragesiteorstoragecomplex,aswellasestablishplansidentifyingrelevantrisks.Toensurethefinancialsecurityofoperators,anypartyholdinganauthorityforsequestrationactivitiesmustobtainarehabilitationbondpriortoundertakingoperations.Rehabilitationbondssecurethepaymentofaspecifiedamountforanyrehabilitation,clean-uporpollutionpreventionworkthatmaybenecessaryasaresultofCO2sequestrationoperations.InNorway,thepotentialforforcemajeureisconsideredinthelegislation–forexample,anoperator’sresponsibilitycanbereducedincasessuchasanunavoidablenaturaloccurrenceoranactofwar.IntheEuropeanUnion,theoperatorremainsresponsibleforallobligationsrelatingtothesurrenderofemissionstradingallowancesincaseofleakagesandpreventiveandremedialactions.InNorwayandtheEuropeanUnion,operatorsofastoragesitemustprovethatadequateprovisionscanbeestablishedtomeetallobligationsarisingundertheCCUSregulations.Thefinancialguaranteemustbevalidandeffectivewheninjectionstarts.IntheUnitedStates,operatorsofClassVIinjectionwellsforgeologicalstorageofCO2havespecificfinancialresponsibilityrequirementstoassuretheavailabilityoffundsforthelifeofaproject.Arangeoffinancialinstrumentsareacceptedtoprovidethisinsurance,suchastrustfunds,suretybonds,creditlines,insurance,self-insurance(subjecttostrictstipulations)andescrowaccounts.InTexas,thesamelogicapplies:holdersofCO2storagefacilitypermitsarerequiredtoprovideevidencedemonstratingthepermitholder’sfinancialresponsibilityandresourcesfor:•correctiveaction•injectionwellplugging•post-injectionstoragefacilitycareandstoragefacilityclosure•emergencyandremedialresponseseachyearuntilthefacilityhasreachedtheendofthepost-injectionstoragefacilitycareperiod.CCUSLegalandRegulatoryHandbookPAGE64Chapter4IEA.Allrightsreserved.Legalandregulatoryconsiderationsduringclosure,postclosureandbeyondResourceassessmentSitedevelopmentConstructionOperationClosurePostclosureandbeyondDescription•ProcesstoidentifyandstudyCO2storageresourcesinaregionwiththeaimofidentifyingresourcesthatcanbedevelopedintostoragesites•Concreteprojectplanningaimedatensuringasitehascompletedalldevelopmentanddesignactivities•Constructionofsurfacefacilities,connectiontotransportationlines,expansionofMMVinstrumentation,anddrillingofanyadditionalwells•PeriodoftimeduringwhichCO2isactivelyinjectedintothesubsurface•Injectionhasceased•Decommissioningofinfrastructurenotrequiredtomonitorthesite•Abandonmentandclosureofanywellsnotrequiredformonitoring•PeriodafterinjectionceaseswheretheCO2plumeisstillactivelybeingmonitored•Remediationactivitiesasrequired•Transferofsiteresponsibility,ifapplicableLegalandregulatoryissues•Regionalscreening,sitescreening,siteselection,initialcharacterisation,detailedcharacterisation•Ownershipofporespace•Othercross-cuttingissues:interactionwithothersurfaceandsubsurfaceresources•MMVplans•Storagesiteinspections•Definingoperationalliabilitiesandfinancialsecurity•Othercross-cuttingissues:environmentalimpactassessments,permitting,publicengagement,project-specificlegislation,preferentialrightsandprojects,sharedstorageinfrastructuretransitionfromCO2-EORtodedicatedstorage•Siteclosureprocessandcertification•Long-termresponsibilitypostclosure(e.g.maintenanceofstoragesiteandlong-termliabilities)•Financeassurancesoflong-termsitestewardshipIEA.Allrightsreserved.CCUSLegalandRegulatoryHandbookPAGE65Chapter4IEA.Allrightsreserved.SiteclosureprocessRegulationsshouldestablishaclearunderstandingofthestepsneededtocloseastoragesiteandtherolesandresponsibilitiesofallstakeholdersinthestewardshipofthesitethereafter(seealsonextsectiononlong-termliabilities).Thesiteclosureprocesscommencesafterinjectionhasstoppedandwilltypicallyinvolvethedecommissioningofinfrastructureincludingwells(exceptthatneededforongoingmonitoring)andlandrehabilitation.Iftherelevantauthorityassumeslong-termresponsibilityfortheclosedsite,theoperatormustshowthatthesitehasbeenappropriatelydecommissionedandthatthereisnosignificantriskoffutureleakage.ExistingapproachesthatincludeatransferofresponsibilitygenerallyrequireevidencethattheCO2issecurelystoredandthatallriskshavebeenmitigated,andaminimumtimeperiodtohaveelapsedpriortostoragesiteclosure.GlobalexamplesandapproachesInAustralia,Norway,theUnitedKingdomandtheUnitedStates,therelevantauthoritymustapprovesiteclosuresundercertainconditions,suchaslandrehabilitationandremovalofallinjectioninfrastructure.InNorthernIreland,licenceholdersarerequiredtosubmitaprovisionalpost-closureplanbeforeobtainingastoragepermit.InVictoria(Australia),operatorsarerequiredtocompletethefollowingstepsonceCO2injectionactivitieshaveceased:•Notifytherelevantauthoritythattheinjectionactivitieshavebeencompleted.•Plugorcloseoffanywells.•Removeallinjectioninfrastructure.•Rehabilitatethesite.•SurrendertherighttoinjectCO2undertherelevantlicence(althoughthissurrenderwillbelimitedonlytotherighttoinjectCO2,andwillnotconstitutecompletesurrenderofthelicence).Onceinjectionceases,operatorsarerequiredtoapplyforasiteclosurecertificatewithin30days.InNorway,siteclosurecaneitherbeapprovedbytherelevantauthority(aftercertainconditionsaremet)orbytheKingfollowinganapplicationbytheoperator.IntheUnitedStates,therelevantauthorityoutlinestheprocessesforwellplugging,post-injectionsitecareandsiteclosureforUICClassVIwelloperators.Forexample,requiredinjectionwellpluggingactivitiesincludeflushingthewellwithabufferfluid,testingtheexternalmechanicalintegrityofthewell,andemplacingcementintothewellinamannerthatwillpreventfluidmovementthatmayendangerundergrounddrinkingwaterresources.CCUSLegalandRegulatoryHandbookPAGE66Chapter4IEA.Allrightsreserved.NebraskaintroducesaframeworkforCO2storageInMay2021NebraskaadoptedlegislationthatestablishesalegalandregulatoryframeworkforthegeologicalstorageofCO2inthestate.TheframeworkassignsarelevantauthoritytooverseeandregulatefacilitiesthatinjectandstoreCO2,andalignsinjectionwellpermittingrequirementswithstateandfederalregulations.Clarityofporespaceownership:theframeworkveststhe“reservoirestate”(porespace)withthesurfaceowner,unlessthereservoirestatehasalreadybeenpreviouslyseparated.Theframeworkclarifiesthatmineralrightsarenotincludedinthereservoirestate.However,mineralrightsdohavepriorityoverthesurfaceandreservoirestateintermsofdevelopment.Unitisation:theconceptofcondensingorcombiningdifferentownershipunitsintooneprojectwithadesignatedoperatorisknownasunitisation.Theframeworkallowsforastorageprojecttobeunitisedsolongasthereisconsentamongtheownersofatleast60%ofthephysicalvolumeofthereservoir.Thereservoirownersthatdonotconsenttounitisationmustbeequitablycompensated.Permitting:theoperatorisrequiredtoobtainastoragepermitfromtherelevantstateauthorityandtherelevantfederalauthority.Thepermittingprocessrequirestheoperatortoperformseveralsteps:•Payafee,whichwillbedepositedintoastoragefund.•Holdapublichearingwithnoticetoallminerallesseesandowners,surfaceownersandreservoirestateownerswithinthestoragereservoirandwithinhalfamileofthereservoir’sboundaries.•Commissionfindingsthatthestoragefacilityissuitableandwillnotendangerhumanhealthortheenvironment,andisinthepublicinterest.Storagefund:theframeworkestablishesastoragefund,whichwillbefinancedbyoperatorfees–includingafeeleviedoneachtonneofCO2injectedandstored.Theamountofthefeeswillbebasedontherelevantauthority’santicipatedexpensesinregulatingthestoragefacilityduringtheconstruction,operationalandpre-closurephases,aswellasanticipatedexpensesassociatedwiththelong-termmonitoringandmanagementofthestoragefacility.Long-termownershipandliability:followingtheendofCO2injectionoperations,theoperatorcanapplyforacertificateofprojectcompletion.Thecertificatemayonlybeissuedifthestorageoperator:•Showsithasaddressedallpendingclaimsregardingthestoragefacility’soperation.•Showsthatithasreceivedanauthorisationofsiteclosurefromtherelevantauthority.•Showsthatanywells,equipmentandfacilitiestobeusedinthepost-closureperiodareingoodconditionandretainmechanicalintegrity.Ifgranted,thecertificatetransferstheownershipandliabilityofthestoragesitetothestate,whichwillberesponsibleforthelong-termmonitoringandmanagementofthestoragesite.CCUSLegalandRegulatoryHandbookPAGE67Chapter4IEA.Allrightsreserved.Addressinglong-termstorageliabilitiesTodate,theissueoflong-termliabilityhasbeenoneofthemostchallengingandcomplexissuesassociatedwithregulationofCO2storageactivities.Theissueoflong-termliabilitycentresonthe“inperpetuity”responsibilityforthestoredCO2afterinjectionceasesandthesiteisclosed.Howjurisdictionstreatlong-termliabilityisakeyconsiderationforstoragedevelopers,andwithoutclarificationitcanbeamajorbarriertoCO2storagedevelopment.WhiletheriskofCO2leakageinawell-designed,correctlyoperatedsiteisverylowandgenerallybecomesevenlowerwithtimeandafterinjectionceases,thepotentialimpactsofafutureleakshouldbeconsidered.Theseimpactscouldincludeenvironmental(e.g.CO2beingreleasedintotheatmosphereormigratingintopotablewaterresources)andeconomicimpacts(e.g.ifanentitywererequiredtopayprevailingcarbonpricesorproviderestitutionforanydamage).Givensuch,itisvitalthatframeworkshavetheprocessesandmechanismsinplacetoaddresslong-termliability.Inseveraljurisdictions,relevantauthoritiesrequireoperatorstocontributetothecostsassociatedwithlong-termstewardshipoftheCO2storagesite.Existingoil,gasandminingframeworkscanactasapotentialmodelforgovernmentstostructurestewardshipobligations,includingpost-closure,rehabilitationandremediationactivities.Otherframeworks,suchaswastedisposalandmanagementregulationsandundergroundwaterprotectionregulationsmayalsoactasarelevantmodel.CCUSLegalandRegulatoryHandbookPAGE68Chapter4IEA.Allrightsreserved.Long-termliabilitypostsiteclosureLong-termliabilityisgenerallyaddressedinoneofthreeways:•Aprovisionismadeforthetransferofliabilitytotherelevantauthority.2Inthiscase,theoperatorisgenerallyrequiredtomeetanumberofstringentconditionstoensurethattherearenegligiblerisksoffutureleakagebeforetransferringliabilityofthestoragesitetotherelevantauthority.•Long-termliabilityexplicitlyrestswiththeoperator.Monitoringandreportingrequirementsremaintoensuresafeandsecurestorage,thoughthefrequencyofreportingrequirementsmayvary.•Long-termliabilityisnotexplicitlyaddressed,withtheimplicationthattheoperatorwouldretainresponsibilityforthestoragesiteinperpetuity.(Insomecases,theoperatormaybestate-owned;therefore,theissueoftransferringliabilitymaynotarise).Thereareseveralargumentsinfavouroftransferringlong-termliabilitytotherelevantauthority.First,thereisthepotentialthatoperatorsmaybeunableorunwillingtotakeonliabilityforanindefiniteperiod.Thelackofaprocesstotransferstewardshipofastoragesitemaydiscourageordeterinitialinvestmentinstoragedevelopment.Second,whencomparedtosovereignstates,privatestorageoperatorsmayhavelimitedlifespansthatmaynotsupportindefinitestewardshipdutiesorfinancialassuranceofliabilities.This2Long-termsitestewardshipcanalsobetransferredtothestate.Unlessotherwisenotedinthischapter,relevantauthoritycanalsomeanthestate.couldultimatelyseeresponsibilityfallingbacktotherelevantauthorityinthelongterm,butwithouttheconditionsandassurancesrequiredunderanexplicittransfermechanism.Finally,CO2storagecouldbeseenasapublicgoodand,therefore,itmaybejustifiedtopassthelong-termresponsibilityforasitetotherelevantauthorityprovidedidentifiedriskshavebeenmitigated.However,thereisalsoaconcernthataframeworkthattransfersliabilitytotherelevantauthorityinthepost-closureperiodmaycreateamoralhazardduringtheoperationalperiod.Inotherwords,thestorageoperatormaybehavedifferentlythanifitwerefullyexposedtolong-termliabilities.However,frameworkscanaddressthisconcernbysettingclearconditionsforthetransferofresponsibilityandensuringthatthelevelofriskforthestoredCO2isreducedasfaraspossiblebeforethetransferofliabilitytakesplace.Suchconditionsareoftenacombinationofbothtime-relatedandperformance-basedelements.Iflong-termliabilityistobetransferredtotherelevantauthority,itwillgenerallybearequirementthattheoperatordemonstrates,priortotransfer,confidencethatthereisnosignificantriskoffutureleakageorotherirregularitiesinthestoragesite.Furthermore,transferofliabilitiesisunlikelytoabsolvetheoperatorfromanyCCUSLegalandRegulatoryHandbookPAGE69Chapter4IEA.Allrightsreserved.futureissuesresultingfromtheirfaultornegligenceduringtheoperationalorclosureperiod.Evenafterthesitehasclosedandliabilityistransferred,therelevantauthoritymusthaveinplaceaplanofactionandthenecessaryexpertisetoremediateandpreventanypotentialseepageofCO2fromthesubsurface.GlobalexamplesandapproachesInAustralia,NorwayandtheUnitedKingdom,long-termresponsibilitiesandliabilitiesaretransferredtothegovernment,althoughthereisadifferenceinthetimingofthistransferbetweenthesethreejurisdictions.InWesternAustralia(Australia),undertheproject-specificBarrowIslandAct,long-termresponsibilityistransferredfromtheGorgonCO2storageprojecttothestateandCommonwealthaftertheexpiryofa15-yearperiodbeginningonthedatethatCO2injectionceases,subjecttostrictconditions.Therelevantauthoritymust“beoftheopinion”that:•TheCO2thathasbeeninjectedintoageologicalstorageformationinthelicenceareaisbehavingandwillcontinuetobehaveinapredictablemanner.•RisksassociatedwiththepermanentstorageofCO2havebeenreducedtoaslowasreasonablypractical.•TheCO2willnotpresentarisktopublichealthortheenvironment.Inaddition,theoperatormustprovidetotherelevantauthoritydetailedinformationontheconditionsofthestoragesite,anassessmentofpotentialmigrationandleakage,ariskmanagementplanintheeventofleakageandalong-termmonitoringandverificationplan.PursuanttotheCCSDirective,inNorwayandtheUnitedKingdomthestateassumesliabilityaftertheexpiryofa20-yearperiodfromthedateofclosureofastoragesite,andaftertheoperatorprovidesevidenceindicatingthatthestoredCO2willbecompletelyandpermanentlycontained.InNorwayandtheUnitedKingdom,financialrequirementsareacriterionforthetransferoflong-termliability,whichisnotrequired,forinstance,inAustralia.Forexample,inNorwaytheoperatormustmakeafinancialcontributionthatwillcover,ataminimum,anticipatedmonitoringexpensesforaperiodof30years.TheCCSDirectiverequirestheoperatortoprepareareportthatdemonstratesthefollowing:•TheconformityoftheactualbehaviouroftheinjectedCO2withthemodelledbehaviour.•Theabsenceofanydetectableleakage.•Theevolutionofthestoragesitetowardsasituationoflong-termstability.IntheUnitedStates,responsibilitiesdifferdependingonthespecificregulatoryframework.Forinstance,undertheEPA’sUICprogramme,ClassVIwelloperatorsarerequiredtomonitorthestoragesitepostinjectionfor50years,oratthediscretionoftherelevantauthorityiftheoperatordemonstratesthatriskswillCCUSLegalandRegulatoryHandbookPAGE70Chapter4IEA.Allrightsreserved.subside.However,underCalifornia’sLowCarbonFuelStandard(LCFS)thispost-injectionmonitoringrequirementis100years.Yet,neitheroftheseframeworksoutlinethetransferorlong-termliabilitytoanotherentity.Thesespecificationsaretypicallyfoundatthestatelevel,whereseveralstateshaveaprocessforthetransferoflong-termliabilitytothestategovernment:•InIndiana,project-specificlegislationallowsthestorageoperatortotransferliabilityandownershipoftheCO2storagefacilitytothestategovernment,followingprojectcompletionandpluggingthewell.•InTexas,thestateSchoolLandBoardassumeslong-termownershipforoffshoreCO2storage.Afterverificationofpermanentstorage,theboardacquiresthetitle,rightandinterestinandtothestoredCO2.•InLouisianaandNorthDakota,thestateassumesliabilityafter10yearsandrequiresacertificateofwellclosureandprojectcompletion,andproofofwellintegritysincewellclosure.Notably,inLouisiana,iftheoperatorcannotshowthattheCO2reservoirhasmechanicalintegrity,thenthestatecanstillassumeownershipofthestoragefacilitybutnottheliability.Louisianalawspecifiesthattransferofownershipdoesnotassumetransferofliability.•InMontana,thestateassumesliabilityafter30yearsfollowingatwo-stepprocess.First,acertificateofcompletionisissuedaftertheoperatorhasdemonstratedthatnoCO2movementorleakagehasoccurredforaperiodof15years.Then,afterafurther15-yearperiod,theliabilitycanbetransferredtothestate.•InNebraska,thelong-termownershipandliabilityofthestoragesiteistransferredtothestateupontheissuanceofacertificateofprojectcompletion.Regulatorydetailsontherequirementstoobtainthecertificateandthetimeframefortransferringownershiphavenotyetbeenformulated.CCUSLegalandRegulatoryHandbookPAGE71Chapter4IEA.Allrightsreserved.Financialassurancesoflong-termsitestewardshipCCUSframeworkscanrequiretheoperatortocontributetothecostsassociatedwithlong-termstewardshipoftheCO2storagesite.Thiscanhelpreducethefinancialexposureoftheoperator(orrelevantauthorityifresponsibilityistransferred)aftersiteclosureintheunlikelyeventofleakage.Thiscontributioncanbeaccruedoverthecourseoftheprojectorsimplyberequiredatthetimeofauthorisationforstoragesiteclosure.GlobalexamplesandapproachesInVictoria(Australia),Alberta(Canada),NorwayandtheEuropeanUnion,eachholderofaninjectionandmonitoringlicencehastopayanamounttowardstheestimatedlong-termmonitoringandverificationcostsforthestoragesite.InVictoriaandNorway,theamountmustbepaidinannualinstalmentsbeforethetransferofresponsibilitytotherelevantauthority.IntheEuropeanUnionandNorway,theamountmustatleastcoveranticipatedmonitoringcostsforaperiodof30years.InUnitedStates,somestateshaveestablishedstoragefundsforthelong-termmanagementandmonitoringofCO2storagesites.•InLouisiana,thestorageoperatormustpayafeeintoastoragetrustfundforaminimumof10years,uptoamaximumofUSD5millionforeachoperator.•InKansas,therelevantauthoritycollectsinjectionfees,penaltyfeesforviolations,permittingfeesandwellfeesthatfeedintothestate’sfund.Forexample,therelevantauthoritycancollectpenaltiesforthereleaseofCO2fromstoragefacilitiesofuptoUSD10000perviolationperday.Therelevantauthoritycanusethefundtopayforthecostofdevelopmentandissuanceofpermits,compliancemonitoring,inspections,wellclosures,undergroundstorageclosure,long-termmonitoringandenforcementactions,amongotheractivities.•InWyoming,aspecialfundhasbeenestablishedtofundthemeasurement,monitoringandverificationofstoragesitesfollowingsiteclosurecertification.CO2storagepermitholderspayintothisfundeitherviaalumpsumclosurefeeorasafeepertonneofCO2injected(whichhasyettobedetermined).•InMontana,theoperatorhastheoptionofsettingupafundforlong-termsitemanagement.Iftheoperatoroptstohandliabilitytothestate30yearsafterwellclosure,thentheoperatormustpayintoastoragefundaccountduringtheinjectionperiod.However,iftheoperatoroptsnottosetupafund,thentheoperatorisliablefortheprojectindefinitely.CCUSLegalandRegulatoryHandbookPAGE72Chapter5IEA.Allrightsreserved.Chapter5InternationalconsiderationsandCCUShubsCCUSLegalandRegulatoryHandbookPAGE73Chapter5IEA.Allrightsreserved.Regulatingcross-borderCO2transportThetransportofCO2betweenoracrossmultiplecountriesisagrowingissueaspolicymakersandregulatorslooktolinkmultiplecapturefacilitieswithlow-coststorageresources.Thedevelopmentofindustrialclustersandstoragehubshighlightsaneedforframeworksthatcanaccountforlegalandregulatoryissuesthatmayarisefromcross-borderCO2transport.CapturedCO2canbeshippedbetweentwoormorejurisdictionsunderseveralscenarios.Thismaytriggercertainnationalorinternationalregulatoryrequirements.•CaptureofCO2inonejurisdictionandsubsequenttransportacrossbordersbypipeline,shiporothermeansoftransportforstorageinadifferentjurisdiction.•TransitarrangementsinwhichCO2passesthroughathirdjurisdictiontoarriveatitsfinalstoragedestination.•UnintendedmigrationorleakageofinjectedCO2inthesubsurfaceacrossjurisdictionalborders.•Useofstoragecomplexesthatspanjurisdictionalborders.•Secondaryeffectsfromstorageactivitiesoccurringacrossjurisdictionalborders(e.g.duetoasubsurfacepressurefrontordisplacementofsubsurfacefluidsacrossborders).GlobalexamplesandapproachesIntheEuropeanUnion,theCCSDirectiveestablishesalegalframeworkforenvironmentallysafegeologicalstorageofCO2.ItreliesandexpandsonexistinglegalframeworkstooutlineextensiverequirementsforsecuringCO2transportnetworksandstoragesites.ThedirectiverequiresmemberstatesandtheirrelevantauthoritiestoputinplaceprovisionsfortransboundaryCO2transport,transboundarystoragesitesandtransboundarystoragecomplexes.IntheeventthatthetransportofCO2crossesborders,memberstatesmustjointlyapplyprovisionsofthedirectiveandotherrelevantlegislation.CCUSLegalandRegulatoryHandbookPAGE74Chapter5IEA.Allrightsreserved.CompliancewiththeLondonProtocolTheLondonProtocolwasadoptedon1November1996toupdateandsupersedetheInternationalMaritimeOrganization(IMO)LondonConvention,aninternationalagreementonpreventingmarinepollution.Until2019theprotocolhadbeenamajorinternationallegalhurdleforthedevelopmentofregionalCO2transportinfrastructure,asiteffectivelyprohibitedthetransportofCO2acrossnationalboundariesforsub-seabedstorage.In2009theprotocolwasamendedtoremovethisbarrier,effectivelyallowingCO2streamstobeexportedforCCUSpurposesbetweencontractingparties.However,theamendmentmustberatifiedbytwo-thirdsofthecontractingpartiesinorderforittocomeintoforce.Todatetherehasbeenlittleprogressinreachingthisratificationthreshold.InOctober2019NorwayandtheNetherlands,withtheendorsementoftheUnitedKingdom,securedtheIMO’sapprovalofaninterimsolutiontotheslow-movingratificationofthe2009CCSExportAmendment.Theresolution,whichwasformallyacceptedwiththesupportofseveralcountries,allowscountriestoagreetoexportandreceiveCO2foroffshoregeologicalstorageviabilateral(ormultilateral)agreements.Buildingonthismomentum,thetwocountriessignedamemorandumofunderstandinginNovember2021agreeingtofinaliseabilateralagreementin2022.The2019resolutionmarkedamajorstepforwardinthedevelopmentoftransboundaryCCUSprojects.ThisenabledNorwaytoproceedwiththeNorthernLightsProject,whichplanstotransportandstoreCO2fromacrossEurope.AlthoughnobilateralagreementshaveyetbeensubmittedtotheIMO,thefirstagreementsorarrangementswillprovideanexampleofthelevelofdetailrequiredtocomplywiththeresolution.Underthe2019resolution:•Contractingparties(CPs)andnon-contractingpartiesarerequiredtoco-operatetoensurethesharingofinformationonthecharacterisationofthegeologicalformation,storageintegrity,andpotentialmigrationandleakagepathways,amongotherareas.•Fornon-contractingparties,theUnitedNationsConventionontheLawoftheSea(UNCLOS)establishesanoverarchingframeworkforthegovernance,managementandprotectionoftheworld’soceansandthemarineenvironment,includingtheseabedandsubsoil.AlthoughtheprovisionsofUNCLOSaregeneral,thereisanobligationonitspartiestoconsidertheenvironmentalimpactsofCCUSprojectactivitiesonthemarineenvironment,anditisarguablethatapplyingtheprovisionsintheLondonProtocolwouldberegardedasthebestpracticeindoingso.CCUSLegalandRegulatoryHandbookPAGE75Chapter5IEA.Allrightsreserved.Cross-bordermaritimeCO₂transportunderthe2009amendmentand2019resolutionforprovisionalapplicationoftheLondonProtocolLondonProtocolstatusofcountryreceivingCO2forstorageContractingpartyNon-contractingpartyLondonProtocolstatusofcountrycapturingCO2forexportContractingparty(CP)CPsmustdepositadeclarationofprovisionalapplicationofthe2009amendmentwiththeIMO.CPsmustestablishanagreementorarrangementthatincludes“confirmationandallocationofpermittingresponsibilities,consistentwiththeprovisionsoftheprotocolandotherapplicableinternationallaw”.ThisincludesreferencetotheCO2specificguidelines’conditionsrelatedtothecompositionofCO2streamsandCO2storagepermitting.TheseagreementsorarrangementsmustbenotifiedtotheIMO.TheexportingCPisaccountableforcompliancewiththeprovisionsoftheprotocol.TheCPmustestablishanagreementorarrangementwiththenon-CPthat,ataminimum,providesthesameenvironmentalprotectionsasiftheCO2werebeingstoredbyaCP.Thisincludestheissuingofpermitsandpermitconditions.Inthecaseofabreachoftheagreementorarrangementbythenon-CP,theCPshould“engageinconsultationstorectify”.Inthecaseofa“significantongoingbreach”,theCPisrequiredto“terminatetheexport”.Non-contractingparty(Non-CP)CPsmustestablishanagreementorarrangementwiththenon-CPandnotifythistotheIMO.CPsmustensurethattheCO2receivedis“overwhelmingly”comprisedofCO2andthattheexportingcountrydemonstratesappropriateconsiderationofincidentalassociatedsubstancesintheCO2stream,withtreatmentifneeded.Notgovernedbytheprotocol;maybesubjecttoUNCLOS.IEA.Allrightsreserved.Sources:IEAGHG(2021);IMO(2013).CCUSLegalandRegulatoryHandbookPAGE76Chapter5IEA.Allrightsreserved.InteractionofpressurefrontsacrossinternationalbordersThestorageofCO2acrossinternationalbordershasthepotentialtocreatecomplexlegalandregulatorychallengesbetweenjurisdictions.Becausestoragereservoirsandbasinsarenotdefinedbycountryborders,thestorageofCO2inonecountryhasthepotentialtoaffectstorageresourcesinanother.OnesuchexampleisthemigrationofCO2acrossinternationalborders.The2012CO2SpecificGuidelinesoftheLondonProtocoldefinedthetransboundarysubsurfacemovementofCO2as:“themovementofCO2streamsacrossanationalboundarywithinatransboundarysub-seabedgeologicalformationaftertheCO2streamshavebeeninjected.Thetransboundarysub-seabedgeologicalformationsmayextendintothejurisdictionofanotherstateorintothehighseas.”Withthisguidance,thesubsurfacemovementofCO2acrossboundariesisnotconsideredanexport.Furthermore,theguidelinesrequirethatifacontractingpartytotheLondonProtocolinjectsCO2,itmustshareinformationwithneighbouringjurisdictionsandrelevantauthoritiesregardingthecharacterisationoftheCO2storageformation–suchascapacityandinjectivity,storageintegrity,andpotentialmigrationandleakagepathways.Anotherexampleisthepropagationofpressureacrossinternationalborders.PressurepropagationcanoccuriftheCO2thatisinjectedintoastoragereservoircausespressurechangesinadifferentpartofthereservoir.Ifthestoragereservoircrossesinternationalborders,theinteractionofthesepressurefrontsmayreducethepracticalstoragecapacityinneighbouringjurisdictions.Giventhelimiteddevelopmentoftransboundarystorageresourcestoday,therearelimitedexamplesofpressurepropagationthatshowcauseforconcernintheshortterm.TheMichiganBasin,forinstance,spansthebordersofOntario(Canada)andMichigan,OhioandPennsylvania(UnitedStates).Theregionsoneithersideoftheborderarehometoprocessemissions-intensiveindustry.Anyassessmentandcharacterisationofthebasinshouldaccountforpressurepropagationimpactsacrosstheborder.However,unlikethetransboundarysubsurfacemigrationofCO2,existinglegalandregulatoryframeworkstendtooverlooktheinteractionofpressurefrontsbetweenneighbouringcountries.FrameworkstendtolookatpressureasacriticalparameterformeasuringandmonitoringpotentialCO2leakage.AndwhilesomeframeworksdoindeedaddresstransboundaryimpactsofCO2injectionandstorage,suchasinNorway,theseimpactstendtofocusonenvironmentaleffectsratherthanpressurepropagation.Notably,inthelongtermasmorestorageresourcesaredeveloped,frameworksshouldseektoaddressthelegaluncertaintyoftransboundarypressurefrontinteractions.CCUSLegalandRegulatoryHandbookPAGE77Chapter5IEA.Allrightsreserved.OverlapbetweenmultipleframeworksItiswellunderstoodthatCCUSprojectslocatedwithinacertainjurisdictiongenerallyfallunderthatjurisdiction’slegalandregulatoryframework.WhatislesswellunderstoodiswhathappensifaCCUSprojectfallsundermultipleframeworks.Althoughithasyettobetested,theoverlapbetweenlegalandregulatoryframeworkscanincreasetheuncertaintyandcomplexityofaCCUSprojectifnotaccountedforproperly.AprimeexampleofthepotentialforframeworkoverlapcanbefoundintherequirementsoftheCaliforniaLCFS,whichseekstodecreasethelifecyclecarbonintensityofthestate’stransportfuelsthroughacredittradingsystem.In2019theLCFSwasextendedtoallowCCUSprojectstogeneratecredits,givingprojectsaccesstoatradingsysteminwhichcreditsaveragedaroundUSD187/tCO2in2021.Importantly,projectsdonothavetobelocatedwithinCaliforniatoqualifyundertheLCFS,leavingthedooropenforpotentialoverlapwithotherregulatoryframeworksforCCUS.UndertheLCFSframework,CCUSprojectscanbelocatedanywhereintheworld,aslongasthetransportfuelassociatedwiththeprojectissoldinto3Thisincludesproductionofethanol,renewablediesel,renewablegasoline,alternativejetfuel,biogasfromanaerobicdigestion,electricitysuppliedtoelectricvehiclecharging,hydrogen,andanyotheralternativetransportfuellistedinsections95482(a)oftheLCFSregulation.theCaliforniamarket.DACprojects,incontrast,arenottiedtothisfuelmarketsellingrequirement.Eligiblefacilities,whichincludeprojectsthatcaptureCO2fromoilandgasproduction,refining,alternativefuelproduction,3anddirectlyfromtheair,mustfulfilstrictstoragesiteandfinancialresourcerequirements.Forexample,theCO2storagesitemustbelocatedonshoreinsalinereservoirs,depletedoilandgasreservoirs,orthroughCO2-EOR,andmonitoredforaperiodofatleast100yearspostinjection.Togeneratecredits,CCUSprojectsaresubjecttoannualreportingrequirementstomonitorandverifyemissionreductions.BecauseofthelocationflexibilityundertheLCFS,CCUSprojectscouldberequiredtooperateundertwoseparateframeworks:thecomprehensiverequirementsundertheLCFS,aswellastheregulatoryframeworkofthejurisdictioninwhichtheprojectoperates.Insomecases,theremaybesignificantoverlapbetweenframeworks.Forexample,iftheCCUSprojectislocatedintheUnitedStates,therequirementsforinjectionwellsundertheLCFScloselyfollowtheClassVIinjectionwellrequirementsforgeologicalstorageundertheUSEPA’sregulatoryframework.However,insomecasestheregulatoryrequirementsoftheframeworksmayCCUSLegalandRegulatoryHandbookPAGE78Chapter5IEA.Allrightsreserved.diverge,withoneframeworkcallingfordifferentstepsthantheother.InthesamecaseofaCCUSprojecttheUnitedStates,theLCFSrequiresminimumpost-injectionsitemonitoringof100years,farlongerthanthedefault50-yearmonitoringrequirementundertheClassVIpermittingregime.CCUSLegalandRegulatoryHandbookPAGE79Chapter5IEA.Allrightsreserved.ComparisonofrequirementsundertheLCFSandselectedregulatoryframeworksforCCUSLCFS(California)UnitedStatesNorwayVictoria(Australia)Alberta(Canada)Post-injectionmonitoringperiod100years50years(default)20yearsNotspecified10years(recommended)FinancialresponsibilityOperatormustdeposit8-16.4%ofgeneratedcredits,basedonprojectriskrating,inabufferaccountFinancialassurancesrequiredtocovercorrectiveaction,injection,wellplugging,post-injectionsitecareandanyemergencyresponseappliedtotheendangermentofundergrounddrinkingwatersourcesOperatormustmakeafinancialcontributionthatwillcover,ataminimum,anticipatedmonitoringexpensesforaperiodof30yearsOperatormustpayanannualfeedeterminedasapercentageofthetotalestimatedcostoflong-termmonitoringandverificationOperatormustpayaper-tonnefee,determinedforeachindividualproject,intoapost-closurestewardshipfundTransferoflong-termstewardshipNoNoYesYesYesIncludesrequirementsundertheEPA’sUICClassVIwellpermittingprogramme.Sources:IEA;GlobalCCSInstitute(2019).CCUSLegalandRegulatoryHandbookPAGE80Chapter5IEA.Allrightsreserved.FacilitatingCCUShubsThedevelopmentofCCUShubscouldplayanimportantroleinacceleratingthetechnology’sdeployment.Theprincipalbenefitofahubapproachisthepossibilityofmulti-userCO2transportandstorageinfrastructure,enablingeconomiesofscale,lowercostsandlesscomplexityinthevaluechain.Sharedinfrastructurecanalsoallowsmallerindustrialfacilities,forwhichdedicatedtransportandstorageinfrastructuremaybeimpracticalanduneconomic,toadoptCCUSasamitigationsolution.Atleast40CCUShubsareindevelopmentglobally–includinginAustralia,EuropeandtheUnitedStates.Governmentleadershipandco-ordinationislikelytoplayanimportantroleinthesuccessfuldevelopmentofhubsandsharedinfrastructure.Legalandregulatoryframeworksshouldensurefairandopenaccesstosharedinfrastructureinordertomaximisetransportandstoragepotential.CCUSLegalandRegulatoryHandbookPAGE81Chapter5IEA.Allrightsreserved.AccesstosharedtransportinfrastructureThebuildoutofCO2transportinfrastructureiscriticaltothewidespreaddeploymentCCUS.Itisimportantthatframeworks,whetherexistingornew,removeanybarrierstotheexpansionoftransportinfrastructureoritssharedaccess.Thetwomainoptionsforthelarge-scaletransportofCO2arepipelineandship.Forshorterdistancesandsmallervolumes,CO2canalsobetransportedviatruckorrail,generallyatahighercostpertonneofCO2.Large-scaletransportofCO2byshipwillsoonbedemonstratedaspartoftheNorthernLightsProjectinNorway.Incontrast,CO2transportviapipelinehasbeentakingplacefordecades,withmorethan8000kmofCO2pipelinesintheUnitedStates.FrameworkscanenableandencouragesharedaccesstoCO2transportinfrastructurebyoutliningtheconditionsunderwhichoperatorsmustgrantthird-partyaccess.Forexample,third-partyaccessmaybearequirementforprojectsthatreceivepublicfunding.OnemainconsiderationtotakeintoaccountistheoperatingmodeloftheCO2transportinfrastructure.OwnershipofCO2pipelines,forexample,maydictatethird-partyaccessandtheexpansionofnetworks.•Underaprivatecarriermodel,CO2pipelinesaregenerallyownedandoperatedbyacompanyforinternalpurposes,suchasinanintegratedprojectwheretheoperatorcaptures,transportsandstorestheCO2,orcontractswithselectedthirdpartiestooffloadtheCO2forstorageorutilisationpurposes.Thisrequiresseveralcontractstobenegotiatedbetweenparties.•Underacommoncarriermodel,CO2pipelinesoffertransportservicestothird-partyusersunderastandardsetoftermsandaccessistypicallyallocatedinanequitableway.Inthiscase,CCUSregulatoryframeworksshouldoutlineconditionsforthird-partyaccess.Frameworksshouldalsoestablishappropriatedisputeresolutionprocessestodealwithanypotentialaccessrefusalsbyoperatorsand/orclaimsbypotentialnewmarketentrants.SeparateregulatoryconsiderationsmayapplytoCO2transportedbyship.Althoughlesscommonthanpipelinetransport,movingCO2byshiptodedicatedstoragesitescanprovideflexibilityandbeanattractivemodeincertainregions,suchastheNorthSea.FrameworksshouldensurethatexistinglawsandregulationsconsiderandaccommodatethefuturetransportofCO2byshipanddonotunintentionallyactasbarriers.GlobalexamplesandapproachesIntheEuropeanUnion,regulatoryframeworkscoveringCO2transporthavehistoricallyfocusedonaccesstopipelinesandoftenoverlookCO2transportbyshiporothermodes.CCUSLegalandRegulatoryHandbookPAGE82Chapter5IEA.Allrightsreserved.WhileitprimarilyconcentratesonCO2storage,theCCSDirectiveaimstoensurethatpotentialoperatorscanobtain“fairandopen”accesstoCO2transportnetworks.Certainconsiderationsshouldbetakenintoaccountwhenprovidingforaccesstosharedinfrastructure,suchaswhethercapacitycanbemadereasonablyavailable,orifthereareanyinsurmountableincompatibilitiesoftechnicalspecification.Thedirectiveallowsinfrastructureoperatorstorefusethird-partyaccessifthereisalackofcapacity.Importantly,thedirectivedefinesCO2transportnetworksasa“networkofpipelines”anddoesnotmentionothertransportmodes,suchasbyship.ThislackofclarityfortransportofCO2byshipisalsoreflectedintheEUEmissionsTradingScheme(ETS)regulations,whichapplytoCO2thatiscapturedandtransferredtoastoragefacilityeitherdirectlyorviapipeline.UncertaintyintheseregulatoryframeworkscanraiselegalquestionsoverwhetherornotCO2emissionsfromshiptransportmustbeaccountedforundertheETS.AsregardsETScompliance,itisunclearwhoshouldbeheldliableforthefugitiveandoperationalCO2emissionsassociatedwiththetransportingofCO2byship,orhowtheseemissionsshouldbecalculatedormeasured.In2019NorwaysuggestedinalettertotheEuropeanCommissionthattheproduceroftheCO2remainsliableuntiltheCO2arrivesforstorage,andthecalculationofanyfugitiveCO2emissionsalongtheshippingroutewouldbemadeaccordingtoagreementsbetweentheCO2producerandtheshipper.TheCommissionconfirmedthesesuggestions,althoughchangestotheCCSDirectiveandETSregulatoryframeworksarelikelytobeneededinplaceofone-offprojectconfirmationstoclarifytheroleofotherCO2transportmodes.IntheUnitedStates,thereisapatchworkofregulationsfacilitatingsharedaccesstoCO2pipelines,andmostpipelinesoperateonaprivatecarriermodel.Atthefederallevel,CO2pipelineoperatorsmayberequiredtoprovidenon-discriminatoryaccessonlywhenthepipelinecrossesfederallands.Therelevantauthoritycangrantrightsofwaytopipelineoperators,establishingrulesforpipelinesiting,third-partyaccessandrateconditions.Moststatesdonotspecifythird-partyaccessrequirementsforCO2pipelines.However,inTexas,whichhostsalargeCO2pipelinenetwork,pipelineoperatorshavetheoptiontochoosewhethertobecomeacommoncarrier.Inthissituation,thepipelineoperatorissubjecttocertainobligations,butisalsograntedcertainrights,suchaseminentdomain.CCUSLegalandRegulatoryHandbookPAGE83Chapter5IEA.Allrightsreserved.Recommendationsforthird-partyaccessinAlbertaIn2013,aspartoftheRegulatoryFrameworkAssessment,thegovernmentofAlbertaissuedsixrecommendationsonhowtofacilitateaccesstosharedCCUSinfrastructure:MarketconsiderationsshouldbetheprimarydriverbehindaccesstoCO2pipelines.Inthisregard,pipelineoperatorsandthirdpartiesshouldbeexpectedtoexploreallreasonableavenuesofprivatenegotiationbeforeapplyingtotheregulatorforaccess.ThecommoncarriersystemshouldbeexpandedtoapplytoallCO2pipelines.Thissystemisusedintheupstreamoilandgasindustrywhenpartiescannotagreeonaccessconditions.However,theOilandGasConservationActdoesnotincludeCO2pipelinesinthecommoncarriersystem.Underthissystem,apartythatisdeniedaccesstoanotherparty’spipelinecanapplytotherelevantauthorityandseekapprovaltoreceivenon-discriminatoryaccesstothepipeline.Pipelineoperatorsshouldundertakesomeformof“openhouse”,wheretheoperatorinvitesinterestfromotherpartiesdesiringaccesstothepipeline.Thisprocesscanhelptoensurethatthepipelineiscorrectlysizedtomeetregionalneedsandthereforehelpreducethelikelihoodofapplicationsforcommoncarrierorders.AllCO2storageoperationsshouldbeencouragedtousesharedtransportinfrastructurewheneverfeasibleandreasonable.ThiswouldhelptominimisetheincrementalenvironmentalfootprintofCCUSprojectsandreduceindustrycosts.Commoncarrierorders,andmorespecificallytheapplicationofproratingwithinacommoncarrierorder,shouldbetheoptionoflastresort.InareviewofopenaccessrequirementsforCO2pipelines,significantattentionwaspaidtotheissueofprorating.ForCO2capturefacilities,reducedaccesstoapipelinewouldmeanthattheywouldventaportionofthecapturedCO2,withmultipleenvironmentalandfinancialconsequences.ThereviewalsorecommendedthatthegovernmentofAlbertaconsidertakingalargerroleintheregionalplanningofCO2pipelineinfrastructure,particularlyifthereisgovernmentfundinginvolved.ThiswouldhelptoensurethatinfrastructuredevelopmentmeetsthegoalsoftheregionandtheneedsofCCSdeploymentinAlberta.WhiletheRFAprimarilyfocusedonaccesstoCO2pipelines,AlbertaisalsoconsideringopenaccessrequirementsforCO2storagehubs.InMay2021thegovernmentofAlbertaissuedastatementannouncingthatitwouldbeintroducingacompetitiveprocesstoencouragethedevelopmentofstrategicallylocatedstoragehubs.ThegovernmentplanstoissueCO2storagerightsviaacompetitiveprocess,withtheintentionthatprospectiveoperatorswill“ensureopenaccesstothehub,providefairservicerates,andaccountforcarbonoffsetsorfuturecredits”.CCUSLegalandRegulatoryHandbookPAGE84Chapter5IEA.Allrightsreserved.FacilitatingsharedstorageinfrastructureAswithsharedCO2transportinfrastructure,thedevelopmentofsharedstorageinfrastructurecanhelpcatalyseCCUSinvestmentopportunitiesacrossarangeofindustrialapplicationsandregions.ItcanimprovetheeconomicsofstoringCO2byreducingunitcoststhrougheconomiesofscale,aswellasreducingcommercialriskandenablingbusinessmodelswherebyCO2storageisdevelopedandoperatedbyspecialisedentities.Frameworksshouldoutlinestepsforthird-partyaccesstosharedstorageinfrastructure,whiletakingintoaccountthetechnicalrequirementsforreceivingandstoringtheCO2.GlobalexamplesandapproachesIntheEuropeanUnion,theCCSDirectiverequiresmemberstatestoensurethatpotentialoperatorscanobtain“fairandopen”accesstoCO2storagesitesinanon-discriminatorymanner.MuchlikeitsstipulationsforaccesstosharedCO2transportnetworks,thedirectivehasinplaceprovisionsforaccessthataredeterminedbyreasonableavailabilityofcapacityandtechnicalrequirements.InNorway,nationalregulationsderivedfromtheCCSDirectiveprovideacomprehensiveregulatoryframeworkforCO2transportandstorage.Thisframeworkincludesseveralprovisionsthatseektoclarifyco-ordinatedstoragedevelopmentandthird-partyaccessofthesite:•Co-ordinationofCO2storage:theframeworknotesthatifasubseastoragereservoirextendsacrossmultiplelicenceholders,orintoanothercountry’sjurisdiction,theaffectedpartiesmustsubmitforapprovalanagreementonhowtheywillco-ordinatetransport,injectionandstorageactivities.•Third-partyaccess:therelevantauthoritycanallowthirdpartiestoaccessanduseCO2storagesitesifitdeterminesthatsuchshareduseis“notanunreasonableimpediment”tothelicensee’sownstorageneeds.Thelicenseethatownsthestoragefacilitymayrefusethird-partyaccessifitdeterminesthatthereisalackofcapacitytotakeontheadditionalCO2.However,therelevantauthorityisallowedtointerveneandinstructthelicenseetoincreasethesite’scapacityifitiseconomicallyjustifiableorifthethirdpartywillpayforthenecessarycapacityincreases,solongasthecapacityadditiondoesnotadverselyaffecttherestofthestoragesite.•Specificationsforaccess:inorderforthirdpartiestotakeadvantageofthecapacityinasharedstoragefacility,theCO2flowmusthavecertainspecificationsthatare“reasonablycertain”tobecompatiblewiththetechnicalrequirementsofthestoragefacilityandlocation.•Operatorriskandprofit:theframeworkempowerstherelevantauthoritytoensurethatstorageofCO₂isimplementedwiththeconsiderationofresourcemanagementandthattheownerofthefacilityisaffordedareasonableprofit,e.g.basedoninvestmentandrisk.CCUSLegalandRegulatoryHandbookPAGE85Chapter6IEA.Allrightsreserved.Chapter6OtherkeyandemergingissuesCCUSLegalandRegulatoryHandbookPAGE86Chapter6IEA.Allrightsreserved.Treatmentoftechnology-basedcarbondioxideremoval(CDR)solutionsMostCCUSframeworksfocusonCO2abatementandnotnecessarilyremoval.Yet,reachingnetzeroemissionsby2050willalmostcertainlyrequiresomeleveloftechnology-basedcarbondioxideremoval(CDR).CDRreferstocapturingCO2fromtheatmosphere,eitherdirectlyorindirectly,andstoringit.CDRcanofferasolutionforlegacyemissionsandsupportnet-negativeemissionsacrosstheenergysysteminthelongterm.ThereareseveralapproachestoCDR:•Nature-basedsolutionsincludeafforestationandreforestationthatrepurposelandusebygrowingforestswheretherewasnonebeforeorre-establishingaforestwhereoneexistedinthepast.Otherexamplesincludepeatlandandcoastalrestoration.•Enhancednaturalprocessesincludelandmanagementapproachesthatincreasethecarboncontentofsoilthroughmodernfarmingmethodsandoceanfertilisation.Manyoftheseapproachesareintheresearchanddevelopmentphaseandfurtherstudiesareneededtounderstandtheircosts,risksandtrade-offs.Otherexamplesincludeenhancedweatheringandtheuseofbiochar.•Technology-basedsolutionsincludecapturingCO2frombioenergyanddirectlyfromtheair(DAC)andpermanentlystoringit(BECCSandDACS).Manyofthelegalandregulatoryissuesoutlinedinthishandbook,aswellasthosecoveredundertraditionalenvironmentalassessmentandpermittingprocedures,couldapplytoDACSandBECCStechnologies.Thatsaid,asmorecountriesandcompaniesconsiderCDRoptionstoreachnetzerogoals,itisimportantforpolicymakerstoconsiderhowframeworkscouldsupportorhinderdeployment.Forexample,BECCSandDACSarediscussedinthecontextof“geoengineering”,thatis,adeliberateandlarge-scalemanipulationofanenvironmentalprocessthataffectstheearth'sclimate,inanattempttocounteracttheeffectsofglobalwarming.TheConventiononBiologicalDiversityadoptedanon-bindingdecisionin2012invitingpartiesandotherstoensure(withsomeexceptionsanduntilcertainconditionsaremet)thatnogeoengineeringactivitiestakeplace.Itisthereforeimportantfornationallegislationorinternationalprotocolstoclearlydistinguishbetweengeoengineeringapproachessuchassolarradiationmodificationandtechnology-basedcarbonremovalviaBECCSandDACS.Technology-basedCDRshouldalsobeconsideredinthecontextofclimatechangemeasuresorlegislation.Forexample,intheEuropeanUniontherecently-launchedFitfor55packageaimstorevisethebloc’sclimate,energyandtransport-relatedlegislationtoaligncurrentlawswithits2030and2050climategoals.Thepackageincludesaproposaltorevisetheregulationontheinclusionofgreenhousegasemissionsandremovalsfromlanduse,landusechangeandforestry.Whileland-basedCDRisexplicitlymentionedinthepackage,technology-basedoptionssuchasBECCSandDACShavenotbeenincludedyet.CCUSLegalandRegulatoryHandbookPAGE87Chapter6IEA.Allrightsreserved.RegulatoryissuesforCDRtechnologiesfocusonhowframeworkscanensurerobustaccountingandcertificationofCO2removals.Keyconsiderationsinclude:•TransparentandconsistentlifecycleassessmentmethodologiesareneededtoverifythatmoreCO2hasbeenremovedthanemittedfromCDRoperations.•AccountingframeworksforCDRmustbeadjustedtoconsiderthepotentialforreversalorre-releaseofCO2.•Doublecountingisapotentialissuewhenmultipleframeworksmayoverlap.AregulatoryframeworkforcarbonremovalcertificationInDecember2021theEuropeanCommissionpublisheditsSustainableCarbonCyclesCommunication,aproposedactionplanonhownature-andtechnology-basedcarbonremovalscanhelptheEuropeanUnionreachitsnetzeroby2050climatetarget.ThecommunicationcallsforaregulatoryframeworkforthecertificationofcarbonremovalsthatintegrateswithEuropeanUnioncomplianceframeworks.Thecertificationandaccountingframeworkshouldprovide“sufficientguarantees”ofthedurationofCO2storage,thequalityofmeasurementsandthemanagementofcarbonleakage.Thisistobesupportedbyscientificallyrobustrequirementsforquality,monitoringstandards,reportingprotocolsandverificationmeans.Theframeworkleavesopenvariousgovernanceoptionsrangingfromasingle,centralisedEuropeanUnionsystemtoamoredecentralisedstructureinvolvingpublicauthoritiesandprivatebodiestosupporttheframework’simplementation.Aspartofthisinitiative,theEuropeanUnionintendstoproposearegulatoryframeworkfortheaccountingandcertificationofcarbonremovals.Inaddition,itaimstoestablishaEuropeanUnionstandardformonitoring,reportingandverifyingGHGemissionsandcarbonremovalsatfarmorforestholdinglevel,aswellasforcapturedfossil,biogenicoratmosphericCO2thatistransported,processed,storedandpotentiallyre-emittedtotheatmosphere.CCUSLegalandRegulatoryHandbookPAGE88Chapter6IEA.Allrightsreserved.InteractionswithothersurfaceandsubsurfaceresourcesIssuestoconsiderinrelationtopotentiallyoverlappingresourceinterestsinclude:•CoexistenceofCO2storageauthorisationsandexistingauthorisationsrelatingtootherusesofthesubsurface(e.g.oilandgasproduction,geothermalenergyproduction).•Conflictresolutionintheeventthatdisputesariseinauthorisingsubsurfaceactivities.•Potentialcompetitionwithseabedrealestate.OneemergingissueisthepotentialinteractionbetweenCCUSprojectsandoffshorewindenergyinstallations.Offshorewindplatformsthatarefixedtotheseabedcanincreasethechallengesinvisualising,characterisingandmonitoringpotentialCO2storagesites.SeveralrisksmayresultfromthedevelopmentofoffshorewindandCCUSprojectsinsimilarlocations:•Lackofclarity:itremainsunclearhowissuessuchastheoverlapofdevelopmentplanning,promotion,standardsalignment,liabilitiesanddisputemitigationwouldbehandled.•MMVsurveyinteraction:CCUSprojectsrequirerobustMMVsurveys,whichmayinteractwithoffshorewindinfrastructure.•Directphysicalimpact:overlappingprojectscanresultintheincreasedriskofimpactstophysicalinfrastructureorpersonnel.•Infrastructureblockingseabedaccess:thephysicalinfrastructureofapre-existingprojectcanblockaccesstotheseabedandcanmodifyrequirementsfornewprojects.FrameworksshouldaddresscompetitionandconflictbetweenCCUSoperatorsandotherpartiesbyputtinginplacethenecessaryco-ordinationandcommunicationchannelstoaddresspotentialrealestateissues.Interactionswithotherresourcescanalsoplayacomplementaryrole,especiallywithregardtothereuseofexistingoilandgasassetsforCCUSpurposes.Oilandgasinfrastructure,suchastrunkpipelines,offshoreplatformsandsitefacilities,arebroadlysimilartotheinfrastructureneededforthetransportandstorageofCO2.Utilisingtheseexistingassets,particularlyoffshoreinfrastructure,leavesroomforpotentialcostsavingsforCCUSprojectsifthatexistinginfrastructurecanbereusedorrepurposedonceithasreachedtheendofitscommerciallifeforoilandgasextraction.WhilethefeasibilityofreusingoilandgasinfrastructureforCCUSshouldbedeterminedonaproject-by-projectbasis,changestolegalandregulatoryframeworkscanprovidegeneralguidanceonhowtosupportthistransition.Existingregulationscoveringdecommissioningliabilityandwellabandonmentproceduresareprimetargetsforevaluation.GlobalexamplesandapproachesInVictoria(Australia),therelevantministercannotapproveaninjectionandmonitoringplanunlesssatisfiedthat,amongotherthings,useoftherelevantformationforCO2injectionandstorageCCUSLegalandRegulatoryHandbookPAGE89Chapter6IEA.Allrightsreserved.willnotpresentasignificantriskofcontaminatingorsterilisingotherresourcesinthelicencearea.IntheEuropeanUnion,memberstatesretaintherighttogiveprioritytoanyotheruseoftheunderground,andmustgivedueconsiderationtootherenergy-relatedoptions,includingoptionsstrategictoenergysecurityorthedevelopmentofrenewables.InLouisiana,anyreservoirthatisproducingorcapableofproducingoil,gas,condensateorothercommercialmineralsinpayingquantitiescannotbesubjecttoCO2storageactivities,unlessallownersinthereservoirhaveagreedtothoseactivities.Inaddition,noreservoircanbeusedforCO2storageunlesseither:•Allvolumesofoil,gas,condensate,saltorothercommercialmineralsinthereservoircapableofbeingproducedinpayingquantitieshavebeenproduced,or•ThereservoirhasagreatervalueorutilityforCO2storagethanfortheproductionoftheremainingvolumesofoil,gas,condensateorothercommercialminerals,andatleastthree-quartersoftheownersofthereservoirhaveconsentedtosuchuseinwriting.InTexas,aCO2storagefacilitypermitmaybeissuediftheapplicanthasdemonstrated,amongotherthings,thatCO2injectionandstoragewillnotendangerorinjureanyexistingorprospectiveoil,gas,geothermalorothermineralresource,orcausewaste.PropersafeguardsmustalsobeinplacetoensurethatundergrounddrinkingwaterandsurfacewatersourcesareprotectedfromCO2migrationordisplacedformationfluids.IntheUnitedKingdom,concernshavebeenraisedoverthepotentialconflictbetweenoffshorewindenergyinstallationsandthedevelopmentofCO2storagesitesintheNorthSea.Existingregulatoryframeworksdonotyetaccountforsuchseabedrealestatecompetition,althoughrelevantauthoritieshavecreatedaforumtoidentifythechallengesandopportunitiesassociatedwiththeco-locationofCCUSandoffshorewind.InApril2021,theCrownEstate,CrownEstateScotlandandtheOil&GasAuthorityreleasedastudythatrecommendedaproactivereviewofanypotentialoverlapbetweenoffshorewindprojectsandCCUSprojectsandperformingsitecharacterisationactivitiesforCO2storageintheareaspriortoanyoffshorewinddevelopment.Thestudycalledforthecreationofanoverarchingcommittee(comprisedofvariousregulatoryauthoritiesandrepresentativesfromindustry)toco-ordinateandimplementthisreview.CCUSLegalandRegulatoryHandbookPAGE90Chapter6IEA.Allrightsreserved.ReuseofoilandgasinfrastructureforCCUSintheUnitedKingdomIntheUnitedKingdom,relevantauthoritiesareevaluatingwhatchangesneedtobemadetoexistingoilandgaslegislationinordertopromotethereuseofexistinginfrastructureforCCUSpurposes.In2019regulatorslaunchedaconsultationtohelpgatherinformationandopinionsonwaystofacilitatethedeploymentofCCUSatscalebyidentifyingtheexistingopportunitiesandbarrierstothereuseofinfrastructureforCO₂transportandstorage.Afterreceivingfeedbackfromindustry,academiaandindividuals,thegovernmentpublishedasummaryoftheresponses:•Trunkpipelinesanddepletedoilandgasreservoirshavethegreatestreusepotential.Respondentsnotedthatthereuseoftrunkpipelines,whichcanoftenbehundredsofkilometreslong,couldresultinsignificanttimeandcostsavingsforCO2transportinfrastructure.However,manytrunkpipelinesremaininoperationandtheirdecommissioningtimelinemaynotmatchthetimescaleneededtodeployCCUStechnologies.Regardingthesubsurface,respondentsagreedthatdepletedoilandgasreservoirscouldallowformoreaccuratemodellingofCO2injectionandstoragegiventhatthesubsurfacegeologyhasalreadybeenwellcharacterised.•Thebenefitsofreuseneedtobebalancedagainstpotentialconcernsregardinghistoricwells.DecommissionedandabandonedwellsmaynotbesuitableforreuseforCO2injection.Inthisregard,theremayalsobealackofdataandtechnicalrecordsontheconditionofthewellandthewayinwhichitwasplugged.RespondentsnotedthatdecommissioningcostsarelikelytoincreaseduetothehigherstandardsrequiredtominimisetheriskofCO2leakageandneedforadditionalmonitoring.•Thereisalackofclarityinthelegalandregulatoryframeworkregardingthetransferofassets.Regulationsrequirepreviousoilandgasassetownerstobeliableforthecostsassociatedwithdecommissioninginfrastructure.However,itisunclearhowtheseobligationswillfitintoexistingframeworksifassetsareintendedtobetransferredforreuse.Respondentsweresupportiveofasuggestionthattherelevantauthority’spowertoremovedecommissioningobligationsonpreviousassetownersbeexpandedtoallowforthesmoothtransferofinfrastructuretoaCCUSproject.Existingframeworkswouldneedtoclarifythestatusofdecommissioningobligationsandtheeligibilityrequirementsforremovingthem.Therelevantauthorityintendstoworkwithotherregulatorstoreviewtheexistingoilandgasframework,includingwhethernewguidanceoramendmentsareneededtoencouragethereuseofoilandgasinfrastructuretosupportCCUSprojects.CCUSLegalandRegulatoryHandbookPAGE91Chapter6IEA.Allrightsreserved.TransitioningfromCO2-EORtodedicatedstorageTheprocessofinjectingCO2intoexistingoilfieldsisawell-knownenhancedoilrecovery(EOR)technique;theadditionofCO2increasestheoverallpressureofanoilreservoir,forcingtheoiltowardsproductionwells.TheCO2canalsoblendwiththeoil,improvingitsmobilityandsoallowingittoflowmoreeasily.Asaby-productofenhancedrecovery,someCO2remainstrappedinthesubsurface.OverthelifetimeofaCO2-EORproject,muchoftheinjectedCO2isretainedinthereservoir.TheuseofCO2forEORhasformedthebasisofearlyCCUSdeployment,especiallyintheUnitedStates,wherenaturalgasprocessingplantsinTexasbegantocaptureCO2inthe1970sand1980sandsupplyittolocaloilproducersforEORoperations.ManyexistingoilandgasframeworksalreadyhaveinplacespecificregulatoryrequirementsforCO2-EOR.However,thefocusoftheseregulationsisnotonlong-termCO2storage.Instead,regulationsforCO2-EORtendtoassumethatCO2injectionwillendandproducingwellswillbedecommissioned,pluggedandabandonedafterCO2-EORoperationshaveceased.ExistinglegalandregulatoryframeworksgenerallydonotprovideaclearpathwaytotransitionfromCO2-EORtodedicatedstorageoperations.YetthesedepletedreservoirscouldbeanattractiveoptionforCO2storagegiventheywillbewellunderstoodandcharacterisedbytheoperatorsandhaverelevantCO2infrastructureinplace.WhileinprincipletherearenomajortechnologicalchallengesinconvertingEORoperationstodedicatedCO2storageoperations,frameworkswouldneedtoclarifyadditionalmonitoringandverificationrequirementsfordedicatedstorage,whichwouldgobeyondtherequirementsforCO2-EORoperationsinmostjurisdictions.ThiswouldhelptrackanyunintendedCO2migrationandleakagethatmaynothavebeenconsideredduringCO2-EORoperations.Overtime,asCO2-EORoperationscometoacloseatsomesitesandtheneedforCO2storagegrows,itmaybeimportantforCCUSlegalandregulatoryframeworkstoclarifyacleartransitionpathwaytopermanentgeologicalstorage.GlobalexamplesandapproachesIntheUnitedStates,CO2-EORentailsspecificreportingrequirements,suchasobligationsforcalculatingandreportingrelevantCO2volumesandotherdata,monitoringandqualityassuranceandcontrol.TheseregulationsfallundertheUICClassIIwellrequirements,whicharenottailoredtothelong-termstorageofCO2asundertheUICClassVIrequirementsforgeologicalstorage.ThecurrentframeworkdoesnoteasilyallowforthetransitionfromaClassIIwelltoaClassVIwellforpermanentCO2storage.In2014theEPApublishedatwo-pagememorandumspecifyingkeyprinciplesintransitioningfromClassIItoClassVI,althoughmoreCCUSLegalandRegulatoryHandbookPAGE92Chapter6IEA.Allrightsreserved.detailedguidanceorchangestotheframeworkmaybeneededinorderfacilitateatransitiontopermanentstorage.IntheEuropeanUnion,CO2-EORisnotdirectlyincludedintheCCSDirectiveasastandaloneactivity.However,thedirectivemaycoverCO2-EORoperationswheretheprojectis“combinedwithgeologicstorageofCO2”,giventhelevelsofincidentalCO2storagefromEORactivities.ThegeneralwordingofCO2-EORintheframeworkleavesitopentointerpretationastowhichCO2-EORprojectsmayactuallyqualifyunderthedirective,raisingseverallegalpointsoverwhatshouldcountasgeologicalstorageofCO2.Forexample,doesincidentalCO2storageduringEORoperationscount?OrdoesthisonlyapplytoCO2-EORprojectsthattransitiontopermanentstoragefollowingtheterminationofproductionoperations?InthecasewhereaCO2-EORprojectintendstotransitiontopermanentstorage,theprojectmustretrospectivelyundertakethegeotechnicalassessmentsrequiredforsiteevaluationandotheractivitiesinordertocomplywiththedirective.Eveniftheserequirementsaremet,theCO2-EORoperatorisnotnecessarilyguaranteedtoreceiveaCO2storagelicencegiventhedirective’slevelplayingfieldrequirementsthatallowotherpartiestoapplyforthestorageexplorationpermit.CCUSLegalandRegulatoryHandbookPAGE93Chapter6IEA.Allrightsreserved.CCUS-readyrequirementsIfleftunmitigated,today’spowerandindustrialplantscouldgeneratemorethan600GtCO2untiltheendoftheirtechnicallives.Thisisalmost17years’worthofglobalenergysectoremissionsin2021.Thefactthatmanyindustrialandpowerfacilitiescanhavetechnicallivesof40or50years(ormore)underscorestheneedtoavoidlockinginnewemissions-intensiveinfrastructure.RetrofittingCCUScanprovideastrategicsolutiontoreduceemissionsfromsomeexistingpowerandindustrialplants.CCUS-readyrequirementsshouldbeconsideredinsituationswherenewemissions-intensiveplantsareplanned,butareunable–forcommercialortechnicalreasons–tobeimmediatelyfittedwithCCUSandwherealternative(e.g.renewableenergy)solutionsarenotavailable.Thiswillinvolveassessmentofthetechnicalfeasibilityofretrofittingcapturetotheinstallation,aswellasaccesstoCO2transportandstorage.Thesefactorsshouldbetakenintoconsiderationatthetimeofdesignandconstructionofafacility.InareporttotheG8MuskokaSummitin2010,theIEAandCarbonSequestrationLeadershipForumidentifiedseveralessentialrequirementsthatrepresenttheminimumcriteriathatshouldbemetbeforeafacilitycouldbeconsideredCCUS-ready:•Carryoutasite-specificstudyinsufficientengineeringdetailtoensurethefacilityistechnicallycapableofbeingfullyretrofittedforCO2capture,usingoneormorechoicesoftechnologythatareprovenorwhoseperformancecanbereliablyestimatedasbeingsuitable.•Demonstratethatretrofittedcaptureequipmentcanbeconnectedtotheexistingequipmenteffectivelyandwithoutanexcessiveoutageperiodandthattherewillbesufficientspaceavailabletoconstructandsafelyoperateadditionalcaptureandcompressionfacilities.•Identifyrealisticpipelineorotherroute(s)tostorageofCO2.•IdentifyoneormorepotentialstorageareasthathavebeenappropriatelyassessedandfoundlikelytobesuitableforsafegeologicalstorageofprojectedfulllifetimevolumesandratesofcapturedCO2.•Identifyotherknownfactors,includinganyadditionalwaterrequirementsthatcouldpreventinstallationandoperationofCO2capture,transportandstorage,andidentifycrediblewaysinwhichtheycouldbeovercome.•Estimatethelikelycostsofretrofittingcapture,transportandstorage.•Engageinappropriatepublicengagementandconsiderationofhealth,safetyandenvironmentalissues.CCUSLegalandRegulatoryHandbookPAGE94AnnexIEA.Allrightsreserved.Annex:ModelregulatorytextCCUSLegalandRegulatoryHandbookPAGE95AnnexIEA.Allrightsreserved.Definitionsandterminology1.Baselinesurveymeansthecollectionofstoragesitedatabeforeinjectioncommences,tohelpidentifyanypossibleeffectsofstorageduringorafterinjection.2.Closureauthorisationmeansanauthorisationgrantedbytherelevantauthority.3.Closureperiodmeanstheperiodbetweencessationofinjectionactivitiesatastoragesiteandthegrantingbytherelevantauthorityofaclosureauthorisationforthestoragesite.4.Correctivemeasuresmeansmeasurestakentoaddresssignificantleakage,unintendedmigrationorotherirregularityatastoragesite.5.Correctivemeasuresplanmeanstheplantobeprovidedaspartofastorageauthorisationapplication,asupdatedfromtimetotimeinaccordancewiththerequirementsofthisframework.6.CO2enhancedoilrecoveryreferstotheinjectionofCO2inoilreservoirscontributingtotheextractionofcrudeoil.7.CO2plumemeansthevolumeofCO2dispersingordispersedinthesubsurface.8.CO2streammeanstheCO2andotherallowedsubstancesinjectedintoastoragesite.9.Decommissionmeansthedismantlingandremovalofinjectionfacilitiesfollowingcessationofinjectionactivitiesatastoragesiteandtherestorationofastoragesiteasrequiredbytherelevantauthoritypriortothegrantingbytherelevantauthorityofaclosureauthorisation.10.Eminentdomainreferstothepowerofthegovernmenttoacquireprivatepropertyandconvertitintopublicuse.11.Environmentalimpactassessmentmeansaprocessconsistingof:a.thepreparationofanenvironmentalimpactassessmentreportbythedeveloper,b.thecarryingoutofconsultations,c.theexaminationbythecompetentauthorityoftheinformationpresentedintheenvironmentalimpactassessmentreportandanysupplementaryinformationprovided,andanyrelevantinformationreceivedthroughtheconsultations,d.thereasonedconclusionbythecompetentauthorityonthesignificanteffectsofthe[CCS]projectontheenvironment,takingintoaccounttheresultsoftheexaminationreferredtoinpoint(iii)and,whereappropriate,itsownsupplementaryexamination,andCCUSLegalandRegulatoryHandbookPAGE96AnnexIEA.Allrightsreserved.e.theintegrationofthecompetentauthority'sreasonedconclusionintoanyofthedecisions.12.ExclusiveeconomiczonehasthemeaninggivenintheUnitedNationsConventionontheLawoftheSea.13.Exploreorexplorationmeansactivitiesundertakentolocateandassessthesuitabilityofprospectivestoragesites.14.Explorationauthorisationmeansanauthorisationgrantedbytherelevantauthority.15.Explorationfacilitiesmeanstemporarysurfaceequipmentrequiredforexploration.16.Explorationperiodmeanstheperiodbetweenthegrantingbytherelevantauthorityofanexplorationauthorisationandeither:a.thegrantingbytherelevantauthorityofastorageauthorisation,orb.expiryorearlierterminationoftheexplorationauthorisation.17.Injectionfacilitiesmeanssurfaceinstallationsrequiredtoundertakeinjectionactivitiesatastoragesite.18.LeakagemeanstheunintendedreleaseofCO2fromastoragecomplex.19.MigrationisthemovementofCO2withinastoragecomplex.20.Monitoring,measurementandverificationplanreferstoaplanwiththefollowingobjectives:a.DemonstrateCO2inventoryaccuracytoensurethereportedCO2storedwillcomplywithregulationsandprotocols.b.EnsurecontainmenttodemonstratethesecurityofCO2storageandtoprotecthumanhealth,groundwaterresources,hydrocarbonresourcesandtheenvironment.c.Ensureconformancetoindicatethelong-termeffectivenessofCO2storagebydemonstratingactualstorageperformanceisconsistentwithexpectationsaboutinjectivity,capacityandCO2behaviourinsidethestoragecomplex.21.Operationperiodmeanstheperiodbetweenthegrantingbytherelevantauthorityofastorageauthorisationandthecessationofinjectionactivitiesatastoragesite.22.Operatormeanstheholderorholdersofanexplorationauthorisationorastorageauthorisationforastoragesite.23.Overburdenmeansthegeologicalmatterbetweenthestoragecomplexandthesurfaceprojectionofthestoragecomplex.24.Post-closureperiodreferstotheperiodfromthegrantingbytherelevantauthorityofaclosureauthorisation.CCUSLegalandRegulatoryHandbookPAGE97AnnexIEA.Allrightsreserved.25.Post-closureplanmeanstheplantobeprovidedaspartofastorageauthorisationapplication,asupdatedfromtimetotimeinaccordancewiththerequirementsofthisframework.26.Primarycap-rockformationmeanstheimpermeablelayerofrockoverlyingaprimarystorageformation.27.Primarycontainmentsystemmeansaprimarystorageformationtogetherwithacap-rockformation.28.PrimarystorageformationmeansthepermeablegeologicalstratainastoragecomplexwheretheCO2streamisinjected.29.Projectmeansaproposedstoragesite,astoragesiteandanyactivitiesundertakenintheprojectperiod.30.Projectperiodmeanstheexplorationperiod,operationperiodandclosureperiod.31.Relevantauthoritymeansagovernmententityoranentityappointedbyagovernmententityfromtimetotime,whichisresponsiblefortheadministrationofthisframeworkoraspectsofthisframework.32.Remediationmeasuresmeansmeasurestakentorectifyanydamageresultingfromsignificantleakage,unintendedmigrationorotherirregularityinastoragesite.33.Riskassessmentmeanstheprocessofriskidentification,riskanalysisandriskevaluation.Theriskassessmentshallcomprise,interalia,thefollowing:a.Hazardcharacterisation.b.Exposureassessment.c.Effectsassessment.d.Riskcharacterisation.34.Secondarycap-rockformationmeansanyimpermeablelayerofrockoverlyingasecondarystorageformation.35.Secondarycontainmentsystemmeansasecondarystorageformation,togetherwithasecondarycap-rockformation.36.Secondarystorageformationisapermeablegeologicalstratuminastoragecomplexoverlyingaprimarycontainmentsystem.37.SitecharacterisationmeansapartofthesiteselectionprocessandconsistsofadetailedevaluationofatleasttheareaofreviewofoneormorecandidatesitesforCO2sequestrationtoconfirmandrefinecontainmentintegrity,sequestrationcapacityandinjectivityestimates.Sitecharacterisationprovidesbasicdataforinitialpredictivemodellingoffluidflow,geochemicalreactions,geochemicaleffects,riskassessment,andmonitoringmeasurementandverificationprogrammedesign.CCUSLegalandRegulatoryHandbookPAGE98AnnexIEA.Allrightsreserved.38.StoreorstoragemeanstheinjectionandintendedpermanentcontainmentofaCO2streamintoastoragecomplextopreventtheCO2fromreachingtheatmosphere.39.Storageauthorisationmeansanauthorisationgrantedbytherelevantauthority.40.Storagecomplexreferstotheprimarycontainmentsystemandanysecondarycontainmentsystems.41.Storagesitemeansastoragecomplex,overburden,thesurfaceprojectionofthestoragecomplexandinjectionfacilities.42.UnintendedmigrationmeansmovementofCO2outsideofastoragecomplex.CCUSLegalandRegulatoryHandbookPAGE99AnnexIEA.Allrightsreserved.Storageresourceassessmentandauthorisation(modeltext)Authorisationofstoragesiteexplorationactivities1.Itisprohibitedtoexploreforapotentialstoragesitewithoutanexplorationauthorisation.2.Anexplorationauthorisationapplicationmust:a.defineafixedareathatisintendedforexploration,b.definethemethodsandtechniquesintendedforexploration,providingevidenceofanyauthorisationsrequiredtoundertakethosemethodsandtechniques,andc.includeanyotherinformationrequiredbytherelevantauthority.3.Anexplorationauthorisation:a.allowstheoperatortoperformtheexplorationasspecifiedintheauthorisation,b.grantstheoperatorthesolerighttoexploreforpotentialstoragesitesintheareaasspecifiedintheexplorationauthorisation,andc.hasafixedduration.4.Whereappropriate,monitoringofinjectiontestsmaybeincludedintheexplorationpermit.5.Therelevantauthorityshallensurethattheproceduresforthegrantingofexplorationpermitsareopentoallentitiespossessingthenecessarycapacitiesandthatthepermitsaregrantedorrefusedonthebasisofobjective,publishedandnon-discriminatorycriteria.6.Therelevantauthoritymaywithdrawanexplorationauthorisationonthetermsspecifiedintheauthorisation.7.Ifthedurationofanexplorationauthorisationisinsufficienttoenabletheoperatortocarryouttheexplorationasspecifiedintheexplorationauthorisation,theoperatormayapplytotherelevantauthorityforanextensionoftheexplorationauthorisation.Regulatingsiteselectionandcharacterisationactivities1.Asitecharacterisationprocessasrequiredbytherelevantauthoritymustbeundertakeninrespectofaproposedstoragesite.2.Theresultsofthesitecharacterisationprocessmustbesubmittedaspartofastorageauthorisationapplication.3.Tobeasuitablestoragesite,thesitecharacterisationprocessmustindicatethataproposedstoragesite:a.hassufficientstoragecapacityfortheintendedquantityofCO2tobestored,CCUSLegalandRegulatoryHandbookPAGE100AnnexIEA.Allrightsreserved.b.hassufficientinjectivityfortheintendedrateofCO2injection,andc.isfreeoffaults,fractures,wellsorotherfeaturesthatarelikelytoallowunintendedmigration.4.Whenconductingsiteselectionandcharacterisationactivities,operatorsshallapplytheprecautionaryprincipleinrelationtosignificantrisks.5.Aproposedstoragesiteisnotsuitablewherethesitecharacterisationprocessindicatesthatitposessignificant:a.riskofunintendedmigration,b.riskofleakage,c.environmentalrisks,d.healthrisks,ore.risktootherresources.6.Wherethelocationofaproposedstoragesitewouldresultintheexistenceofmorethanonestoragesiteinthesameprimarystorageformation,thepotentialinteractionofthesites(includingbutnotlimitedtointeractionofCO2plumesandpressureinteractions)mustbesuchthatbothsiteswillmeet,orcontinuetomeet,therequirementsofthissection.Authorisationofstorageactivities1.Itisprohibitedtooperateastoragesitewithoutastorageauthorisation.2.Astorageauthorisationapplicationmustinclude:a.proofofthetechnicalcompetenceoftheapplicant,b.theresultsofthesitecharacterisationprocessfortheproposedstoragesiteincludingthelocationandarealextentofthestoragesite,c.thesitemodeldevelopedfromtheresultsofthesitecharacterisationprocess,includinganassessmentoftheanticipatedsecurityofthestoragesite,d.thetotalquantityofCO2tobestored,thecompositionofCO2streams,theinjectionratesandpressures,andthelocationofproposedinjectionfacilities,e.adescriptionofmeasurestopreventsignificantleakage,unintendedmigrationorotherirregularitiesinthestoragesite,f.aproposedmonitoringplan,g.aproposedcorrectivemeasuresplan,h.aproposedclosureplan,i.aproposedpost-closureplan,j.anenvironmentalimpactassessment,k.ahealthandsafetyemergencyresponseplan,l.proofofthefinancialsecurityoftheapplicant,andm.anyotherinformationrequiredbytherelevantauthority.CCUSLegalandRegulatoryHandbookPAGE101AnnexIEA.Allrightsreserved.3.Inconsideringapplicationsforastorageauthorisation,therelevantauthoritywill:a.haveregardtothepotentialimpactofissuingastorageauthorisationonexistingorpotentialusersorusesofthesubsurface,andb.givetheholderofanexplorationauthorisationforaproposedsitepriority,whereastorageauthorisationistobeissued.4.Iftherelevantauthorityconsiders,basedontheinformationprovidedbyastorageauthorisationapplicant,thatthereisariskthattheapplicant’sfinancialsecuritymaybeinsufficienttocoverpotentialcostsassociatedwithaprojectduringtheprojectperiod,includingwithoutlimitationpotentialcostsassociatedwith:a.undertakingcorrectivemeasures,b.undertakingremediationmeasures,c.decommissioningandrehabilitatingastoragesiteduringtheclosureperiod,ord.potentialliabilitiesassociatedwiththestoragesite,therelevantauthoritymay:e.requiretheapplicanttoimplementandmaintainafinancialsecuritymechanism,includingwithoutlimitationbywayofinsurance,trustfundorequivalentmechanism,untiltransferofresponsibilitytotherelevantauthority,orf.imposeorhaveimposedontheapplicantleviesorfeesforthedurationoftheprojectperiodinordertocoversuchcosts.5.Astorageauthorisationauthorisestheoperatortodevelopthestoragesite,storeCO2andundertakeactivitiesincidentaltoCO2storageasspecifiedinthestorageauthorisation.6.Duringtheoperationperiodandclosureperiodtheoperatormustcontinuetorefineandupdatethesitemodeldevelopedfromtheresultsofthesitecharacterisationprocesstoreflectongoingmonitoringresultsandotheroperationaldata.7.Duringtheoperationperiodtheoperatormustcontinuetorefineandupdatetheclosureplantoreflectongoingactivitiesundertakenunderthestorageauthorisation.8.Astorageauthorisationmustbereviewedifthereissignificantleakage,unintendedmigrationorotherirregularityinthestoragesite.9.Anoperatormustinformtherelevantauthorityifitintendstoceaseinjectionactivitiesunderastorageauthorisation.Onceinjectionactivitieshaveceased,theoperatormustnotrecommenceinjectionactivitieswithoutauthorisationfromtherelevantauthority.CCUSLegalandRegulatoryHandbookPAGE102AnnexIEA.Allrightsreserved.10.Injectionactivitiesunderastorageauthorisationmustcease:a.whenthetotalquantityofCO2tobestored,assetoutinthestorageauthorisation,hasbeenreached,b.iftheoperatorinformstherelevantauthoritythatitintendstoceaseinjectionactivitiesunderastorageauthorisation,onadateadvisedbytheoperator,orc.whenrequiredbytherelevantauthorityincludingduetosignificantleakage,unintendedmigrationorotherirregularityinthestoragesite.11.Astorageauthorisationendswhentherelevantauthorityissuesaclosureauthorisation.CCUSLegalandRegulatoryHandbookPAGE103AnnexIEA.Allrightsreserved.Measurement,monitoringandverification(modeltext)1.Amonitoringplanmustbesubmittedaspartofastorageauthorisationapplication.2.Themonitoringplanmustoutlineamonitoringprogrammeandmonitoringmethodssufficientto:a.continuethebaselinesurveyforthestoragesiteuntilinjectioncommences,b.monitortheinjectionfacilities,thestoragesite(includingtheCO2plume)andthesurroundingenvironment,c.comparetheongoingmonitoringresultswiththebaselinesurveyforthestoragesite,d.comparetheactualbehaviourofthestoragesitewiththeanticipatedbehaviourofthestoragesitebasedontheresultsofthesitecharacterisationprocessandmonitoringresults,e.detectandassesssignificantleakage,unintendedmigrationorotherirregularityinthestoragesite,f.quantify,asrequiredbytherelevantauthority,thevolumesofCO2associatedwithsignificantleakageorunintendedmigration,g.detectmigrationofCO2,h.detectsignificantadverseeffectsonthesurroundingenvironment,andi.assesstheeffectivenessofanycorrectivemeasurestaken.3.Monitoringofastoragesitemustbebasedonthesite-specificmonitoringplanasapprovedbytherelevantauthority.4.Monitoringresultsmustbereportedtotherelevantauthorityperiodicallyforreview,asrequiredbytherelevantauthority.5.Therelevantauthoritymayrequirethatamonitoringplanbeupdatedtotakeaccountof:a.changestotheassessedriskofleakage,b.changestotheassessedrisktotheenvironment,c.changestotheassessedrisktohumanhealth,d.newscientificknowledge,ande.improvementsinbestavailabletechnology.CCUSLegalandRegulatoryHandbookPAGE104AnnexIEA.Allrightsreserved.Storagesiteinspections(modeltext)1.Therelevantauthoritymayundertakeroutineandnon-routineinspectionsofastoragesiteoranyothersiterelevanttoaproject.2.Inundertakinginspections,therelevantauthoritymayaccessanysitethathasbeen,orisbeing,usedinconnectionwithaprojectincludingthird-partyproperty.Inspectionsmayinclude:a.explorationfacilities,b.visitstoinjectionfacilities,c.assessmentofinjectionactivities,d.assessmentofmonitoringoperationsandcompliancewiththestoragesite’smonitoringplanasapprovedbytherelevantauthority,ande.accesstoallrelevantrecords.3.Inspectionsmaycommencewhenanexplorationauthorisationhasbeengrantedandmaycontinueuntiltransferofresponsibilitytotherelevantauthority,ifrelevant.4.Frequencyofinspectionsmayvary,increasingifthereissignificantleakage,unintendedmigrationorotherirregularityinthestoragesite.5.Followingeachinspection,therelevantauthorityshallprepareareportontheresultsoftheinspection.Thereportshallevaluatecompliancewiththerelevantregulationsandindicatewhetherornotfurtheractionisnecessary.Thereportshallbecommunicatedtotheoperatorconcernedandshallbepubliclyavailableinaccordancewithrelevantlegislationwithintwomonthsoftheinspection.CCUSLegalandRegulatoryHandbookPAGE105AnnexIEA.Allrightsreserved.Operationalliabilitiesandfinancialsecurity(modeltext)Liabilityduringtheprojectperiod1.Duringtheprojectperiod,theoperatorisresponsibleforanyliabilitiesfordamagecausedbytheproject,includingbutnotlimitedto:a.damagetotheenvironment,b.damagetohumanhealth,c.damagetootherresources,d.damagetothird-partyassets,e.thecostofcorrectivemeasuresrequiredtolimittheextentofthedamage,andf.thecostofremediationmeasuresassociatedwiththedamage.Correctivemeasuresandremediationmeasures1.Wheresignificantleakage,unintendedmigrationorotherirregularityoccurs,theoperatormustimmediatelynotifytherelevantauthority.2.Theoperatormustundertake:a.anycorrectivemeasures,asdeterminedbytherelevantauthority,toprotect:i.theenvironment;ii.humanhealth;iii.otherresources;andiv.third-partyassets,includingassetoutintheoperator’scorrectivemeasuresplanasapprovedbytherelevantauthority;andb.anyremediationmeasures,asdeterminedbytherelevantauthority.3.Therelevantauthoritymayitselfundertakecorrectivemeasuresorremediationmeasuresatanytime,includingatthecostoftheoperator,whileresponsibilityforthestoragesiteresideswiththeoperator.4.Theoperatormustupdatethecorrectivemeasuresplantoreflectanylessonslearntafterundertakinganycorrectivemeasures.CCUSLegalandRegulatoryHandbookPAGE106IEA.Allrightsreserved.AnnexSiteclosureandpost-closureprocesses(modeltext)Authorisationforsiteclosure1.Duringtheclosureperiod,theoperator:a.mustundertakethefollowingactivitiesinaccordancewiththerequirementsofthisframework:i.monitoringofthestoragesiteandreportingmonitoringresultstotherelevantauthority,ii.anycorrectivemeasures,iii.anyremediationmeasures,andiv.anyotheractivitiesassetoutintheoperator’sclosureplanasapprovedbytherelevantauthority.b.must,attheoperator’scost,decommissionthestoragesitetothesatisfactionoftherelevantauthority;andc.remainsliablefordamagecausedbythestoragesiteinaccordancewiththetermsofthisframework.2.Aclosureauthorisationapplicationmustinclude:a.evidencetothesatisfactionoftherelevantauthoritythat:i.thereisnosignificantriskoffutureleakageorotherirregularityinthestoragesite,andii.thestoragesitehasbeendecommissionedasrequiredbytherelevantauthority;b.astatementofoperationsconductedatthestoragesiteduringtheprojectperiod,including:i.thequantityofCO2stored;ii.areportonthebehaviourofthestoragesiteascomparedtotheanticipatedbehaviourofthestoragesite,basedontheresultsofthesitecharacterisationprocessandongoingmonitoringresultsovertheoperationperiodandclosureperiod,andinformationrelevanttotheoperator’sanalysisofthatinformation;iii.theanticipatedmigrationpathwayorpathwaysoftheCO2inthepost-closureperiod;iv.theshort-andlong-termconsequencesofanymigration;andv.arevisedpost-closureplan,includingtheoperator’ssuggestionsfortheapproachtobetakentomonitoringthebehaviouroftheCO2inthepost-closurephase;CCUSLegalandRegulatoryHandbookPAGE107IEA.Allrightsreserved.Annexc.adescriptionofthelocation,condition,pluggingproceduresandanyintegritytestingresultsforeverywellthathasbeenorwillpotentiallybeaffectedbythestoragesite;d.adescriptionofthedecommissioningandrehabilitationactivitiesundertakenduringtheclosureperiod;ande.anyotherinformationrequiredbytherelevantauthority.3.Ifspecifiedinastorageauthorisation,therelevantauthoritymayrequire:a.aminimumperiodtoelapsebetweencessationofinjectionandissueofaclosureauthorisation;andb.thatanoperatormakeafinancialcontributiontotherelevantauthority’santicipatedorpotentialcostsassociatedwiththestoragesiteinthepost-closureperiod.Liabilityduringthepost-closureperiod1.Subjecttothetermsofthissection,whereaclosureauthorisationhasbeenissuedforastoragesite,responsibilityforthestoragesitetransferstotherelevantauthority.2.Ontransferofresponsibilityforastoragesitetotherelevantauthority,therelevantauthorityassumes:a.Responsibilityforanyliabilitiesfordamagecausedbythestoragesite,includingbutnotlimitedto:i.damagetotheenvironment;ii.damagetohumanhealth;iii.damagetootherresources;iv.damagetothird-partyassets;v.thecostofcorrectivemeasuresrequiredtolimittheextentofthedamage;andvi.thecostofremediationmeasuresassociatedwiththedamage;b.responsibilityfor:i.monitoringthestoragesite;ii.undertakinganycorrectivemeasures;andiii.undertakinganyremediationmeasures;3.Inthepost-closurephase,anoperatorremainsresponsibleforanyliabilitiesfordamagecausedbyastoragesiteifthatdamageresultsfromfaultornegligenceoftheoperatorduringtheprojectperiod.CCUSLegalandRegulatoryHandbookPAGE108IEA.Allrightsreserved.AnnexFinancialassurancesoflong-termsitestewardship1.Therelevantauthoritymay:a.requireanoperatoratanytimeduringtheprojectperiodtoimplementandmaintaintothesatisfactionoftherelevantauthorityafinancialcontributionmechanism,includingwithoutlimitationbywayoftrustfundorequivalentmechanism;orb.imposeorhaveimposedonanoperatorleviesorfees,tocontributeto,orcovertherelevantauthority’santicipatedorpotentialcostsassociatedwiththestoragesiteinthepost-closureperiod.CCUSLegalandRegulatoryHandbookPAGE109IEA.Allrightsreserved.AnnexAbbreviationsandacronymsBECCSbioenergywithcarboncaptureandstorageCCScarboncaptureandstorageCCUScarboncapture,utilisationandstorageCDRcarbondioxideremovalCO2carbondioxideCPcontractingpartyDACdirectaircaptureDACSdirectaircapturewithCO2storageEIAenvironmentalimpactassessmentEORenhancedoilrecoveryEPAEnvironmentalProtectionAgencyETSEmissionsTradingSchemeGHGgreenhousegasICCSIllinoisIndustrialCarbonCaptureandStorageProjectIMOInternationalMaritimeOrganizationJCCSJapanCCSCo.,LtdLCFSLowCarbonFuelStandardMMVmeasurement,monitoringandverificationPCIprojectofcommoninterestRFARegulatoryFrameworkAssessmentUICUndergroundInjectionControlUNCLOSUnitedNationsConventionontheLawoftheSeaUnitsofmeasureGtgigatonnekmkilometreMtmilliontonnesIEA.Allrightsreserved.ThispublicationreflectstheviewsoftheIEASecretariatbutdoesnotnecessarilyreflectthoseofindividualIEAmembercountries.TheIEAmakesnorepresentationorwarranty,expressorimplied,inrespectofthepublication’scontents(includingitscompletenessoraccuracy)andshallnotberesponsibleforanyuseof,orrelianceon,thepublication.Unlessotherwiseindicated,allmaterialpresentedinfiguresandtablesisderivedfromIEAdataandanalysis.Thispublicationandanymapincludedhereinarewithoutprejudicetothestatusoforsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofanyterritory,cityorarea.IEAPublicationsInternationalEnergyAgencyWebsite:www.iea.orgContactinformation:www.iea.org/about/contactIEA.Allrightsreserved.TypesetinFrancebyIEA–July2022Coverdesign:IEA-Coverphoto:GettyImages

1、当您付费下载文档后，您只拥有了使用权限，并不意味着购买了版权，文档只能用于自身使用，不得用于其他商业用途（如 [转卖]进行直接盈利或[编辑后售卖]进行间接盈利）。
2、本站所有内容均由合作方或网友上传，本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺！文档内容仅供研究参考，付费前请自行鉴别。
3、如文档内容存在违规，或者侵犯商业秘密、侵犯著作权等，请点击“违规举报”。

碎片内容

碳中和的最新文档