Priorities for oil and gas, along with offshore carbon storage, unveiled by the White House
The Interior's Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement are set to release a proposed rule next May, aiming to regulate offshore carbon dioxide storage. This announcement comes as part of a broader regulatory shift, as the Biden administration prepares to announce updates to oil spill cleanup rules in December.
Meanwhile, the fall 2024 Unified Agenda indicated that a final decision would be made on the rule regarding CO2 storage underneath national forests and grasslands by this month. However, a rule put forward by the Forest Service in November 2023, which aimed to open the door to CO2 storage underneath these lands, did not appear in the new Unified Agenda. The Forest Service, which is part of the Agriculture Department, has stated that the Carbon Capture and Storage exemption is currently inactive, and no further action will be taken until it is removed from that status.
The Carbon Capture Coalition, an organisation that advocates for the release of regulations on offshore carbon dioxide sequestration, has expressed the importance of clarifying regulatory procedures on federal lands. Christian Flinn, the public policy manager working for the Carbon Capture Coalition, has been a key voice in this advocacy.
In a separate development, the Transportation Department's Pipeline and Hazardous Materials Safety Administration (PHMSA) released a proposed rule to strengthen safety standards for carbon dioxide pipelines in the final days of the Biden administration. However, the new Unified Agenda does not provide a deadline for these standards, leading to disappointment from Erin Sutherland, policy and program director at Pipeline Safety Trust.
The White House's regulatory agenda has been released, outlining plans to boost the oil and gas industry. This includes a rule set to be proposed in October, which would undo rules dating from the Biden administration to require insurance companies to keep more money on hand for oil and gas lease cleanup onshore.
The Trump administration has focused on jettisoning initiatives advanced under former President Joe Biden that sought to impose more requirements on fossil fuel businesses. This includes the Interior Department allowing more harassment by oil and gas players of polar bears, walruses, and northern sea otters in specific areas.
PHMSA oversees approximately 5,300 miles of CO2 pipelines moving CO2 in a supercritical phase, with accident data showing one serious incident and no fatalities in the last 20 years. Despite this, Erin Sutherland has expressed disappointment that PHMSA has failed to include the carbon dioxide pipeline safety rulemaking on its regulatory docket.
As we move forward, it is clear that regulatory changes are on the horizon for carbon dioxide storage and pipeline safety. The public will have opportunities to voice their opinions during comment periods, and it remains to be seen how these changes will impact the industry and the environment.
