State and regional control of geological carbon sequestration

The United States has economically recoverable coal reserves of about 261 billion tons, which is in excess of a 250-year supply based on 2009 consumption rates. However, in the near future the use of coal may be legally restricted because of concerns over the effects of its combustion on atmospheric carbon dioxide concentrations. Carbon capture and geologic sequestration offer one method to reduce carbon emissions from coal and other hydrocarbon energy production. While the federal government is providing increased funding for carbon capture and sequestration, recent congressional legislative efforts to create a framework for regulating carbon emissions have failed. However, regional and state bodies have taken significant actions both to regulate carbon and facilitate its capture and sequestration. This article explores how regional bodies and state government are addressing the technical and legal problems that must be resolved in order to have a viable carbon sequestration program. Several regional bodies have formed regulations and model laws that affect carbon capture and storage, and three bodies comprising twenty-three states-the Regional Greenhouse Gas Initiative, the Midwest Regional Greenhouse Gas Reduction Accord, and the Western Climate initiative-have cap-and-trade programs in various stages of development. State property and monitoring and permitting laws in general are integral to regulating carbon capture and sequestration, and unless federal standards are imposed, state laws on torts and renewable portfolio requirements will directly affect the liability and viability of all carbon sequestration projects. This paper examines current state legislative efforts addressing the regulatory challenges of carbon capture and sequestration.