On December 28, 2023, the U.S. Environmental Protection Agency (EPA) announced it would be granting Louisiana state primacy in the permitting and regulation of Class VI wells and projects involving the underground sequestration of carbon dioxide (CO2) and formally published the final rule in the Federal Register on January 5, 2024. CO2 sequestration involves use of injection wells to store CO2 deep below ground, under confining layers such as shales that prevent upward migration of what is injected. Regulations deal with issues such as thickness of the confining layers, potential for horizontal migration, appropriate well construction, monitoring requirements and financial security requirements, among other issues. Louisiana’s Office of Conservation now has primary regulatory authority in the state. Only two other states have state primacy – North Dakota and Wyoming. Gaining primacy has helped the states streamline and accelerate the permitting process and advance the market for carbon capture and storage (CCS). For more information, see the press release here.