ELULS.orgThe Environmental and Land Use Law Section of The Florida Bar
Section Reporter

March 2007

ARTICLES  
     

ELULS.org  Global Climate Change Plus Regulatory Change Equals Technological Change
  Christopher J. Brown, Greg M. Powell, & Mitchell Hait

      

The issue of global climate change has emerged as the environmental issue of the next century. Global climate change has been recognized as a major concern throughout the world and is regulated by the Kyoto Treaty, which sets caps on greenhouse gas emissions. Due in part to the fact that the United States is not a signatory to the Treaty, the regulation and management of greenhouse gases has not been given a national focus until the last several years. A combination of irrefutable scientific evidence and public pressure has pushed the climate change issue to the forefront in the United States and multiple bills have been introduced in Congress to cap greenhouse gas emissions or introduce a “carbon tax”. With regulatory changes almost assuredly on the horizon, industry has recognized that the management and abatement of greenhouse gases will be a near certainty. Due to the regulatory drivers, industry is seeking technological solutions and long-term management strategies to address global climate change. One such solution is carbon capture and sequestration (CCS). This article provides:

o A brief overview of relevant climate change issues;
o Discusses potential CCS regulatory alternatives under consideration;
o And, provides a thorough discussion of CCS and its potential to reduce greenhouse gas emissions and potential carbon liability significantly.

Global climate change has been studied for several decades. In 1990, President George H.W. Bush attended one of the first major international conferences on climate change in Rio De Janeiro, Argentina. The basic premise of climate change is that the overall planetary temperature is warming due to the “greenhouse effect” which has been exacerbated by human-induced increases in carbon dioxide and other gases in the atmosphere. While the greenhouse effect is actually a natural phenomenon that permits moderate temperatures to exist on Earth, excess levels of carbon dioxide appear to be the primary contributor to the overheating of the planet. Since 1750, carbon dioxide concentrations have risen over 30% and climate scientists predict that the overall global temperature will rise 1 to 4 degrees C in the next 100 years. While the potential consequences of this warming are not fully understood, many scientists hypothesize that rising temperatures will result in more severe droughts, more intense hurricanes, and rises in sea level, just to name a few. As the overall danger is quantified, pressure for regulatory change in the United States is mounting with action likely in less than 5 years. What action Congress takes is still not known but some sort of greenhouse gas emissions cap is a strong possibility. A carbon tax is also a distinct possibility. Various industry groups including utilities, petrochemicals, automobiles, paper, metals, mining, and others, are seeking ways to reduce their overall “carbon footprint”. Some companies will opt to buy carbon credits on regulated European markets or voluntary markets in the United States (e.g., Chicago Climate Exchange). Others will pursue renewable energy sources and energy efficiency improvements. Forward thinking companies are likely to pursue CCS because of its expected potential to sequester or store massive amounts of carbon dioxide and other greenhouse gases.

So what is CCS and how will it help reduce carbon liability? CCS is a technological innovation in which carbon dioxide off-gas is captured, separated, concentrated and compressed, and then injected into underground repositories. Here the carbon dioxide is sequestered or stored for hundreds to thousands of years, effectively reducing the carbon footprint of the industrial proponent. The three primary repository types proposed for ultimate utilization include:

o Depleted oil and natural gas reservoirs;
o Unmineable coal seams;
o Deep saline aquifers.

The storage potential of each repository type varies with deep saline aquifers providing the greatest potential. Florida has depleted oil and gas reservoirs and deep saline aquifers where CCS could be implemented. The US EPA has indicated that CCS injection projects will be regulated under the Safe Drinking Water Act, Underground Injection Control (UIC) program. Initially, EPA is considering Type I and Type V UIC classifications but could, in the future, introduce an entirely new class of UIC well that will address the unique characteristics of CCS projects.

Besides the obvious technological experience to be gained, forward thinking companies may also gain a regulatory and competitive advantage by starting CCS projects now as those projects could help frame UIC rule making for CCS projects. Also, CCS projects could be recommended as acceptable carbon offset generators to either regulated or voluntary carbon trading exchanges. Currently, one metric ton of carbon dioxide trades at $3.75 on the voluntary Chicago Climate Exchange. The equivalent ton on the European exchange is worth, typically, seven to ten times that value. Lastly, CCS projects may provide an environmentally sustainable way to prolong the use of fossil fuels in energy production. Certainly, CCS has to be included as a viable alternative for industry to use to reduce their carbon footprint and potential legal liability. Due to UIC implementation requirements and initial investigations necessary, strategic planning and project development for CCS projects needs to begin soon so that projects are available in the next 5 years, hopefully, before the Kyoto protocols expire and their predecessors arrive after 2012.

Drs. Brown, Powell, and Hait are senior engineering consultants for Golder Associates, Inc. in Jacksonville, Florida. Their practice areas include water resources development, air resources, and greenhouse gas mitigation. They can be reached at (904) 363-3430. Dr. Brown can be emailed at cjbrown@golder.com.


 

 

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