7.1.14 Reducing Liability for Sequestration Projects

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

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

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

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

North Dakota liability release regulation

North Dakota has established a trust fund that pays for long-term monitoring and maintenance of transferred carbon dioxide, and stipulated conditions for ownership to pass to the state.