$48 million federal grant allocations to protect groundwater while supporting underground CO2 sequestration

(UI) – The U.S. Environmental Protection Agency (EPA) announced grant allocations for states and Tribes to tap into over $48 million in funding through President Biden’s Investing in America agenda to develop and implement Underground Injection Control (UIC) Class VI programs. The $48,250,000, funded by the Bipartisan Infrastructure Law, will be allocated evenly among the 25 interested states and Tribes, with an allotment of $1,930,000 for each program. Under the Safe Drinking Water Act, Class VI programs ensure that groundwater resources are protected while supporting the permanent sequestration of carbon dioxide (CO₂) to reduce greenhouse gas emissions and tackle the climate crisis. 

As a condition of receiving funding, applicants to the new UIC Class VI grant program must demonstrate how environmental justice and equity considerations will be incorporated into their UIC Class VI primacy programs. Primacy program commitments may include identifying communities with potential environmental justice concerns, enhancing public involvement, developing appropriately scoped environmental justice assessments, enhancing transparency throughout the permitting process, and minimizing adverse effects associated with permitting actions. Through this grant program, EPA is ensuring state UIC Class VI programs follow the Safe Drinking Water Act mandate to protect underground sources of drinking water.

EPA is supporting state, Tribal and territory efforts to obtain primacy - primary responsibility (primacy) for implementing and enforcing their UIC Class VI program - under the Safe Drinking Water Act and to develop UIC Class VI programs that incorporate environmental justice and equity as core principles. Participating states and Tribes can use this one-time funding opportunity to establish and implement UIC Class VI programs. EPA is committed to working closely with each state and Tribe pursuing Class VI primacy to help them create a Class VI program that upholds a high standard of community and environmental stewardship. The Biden-Harris Administration is committed to ensuring that carbon management projects are designed, built, and operated safely and responsibly, and in a way that reflects the best science and responds to the needs and inputs of local communities.

On January 19, 2023, EPA Administrator Michael S. Regan sent letters inviting states, Tribes, and territories to submit letters of intent (LOI) to indicate their interest in the new grant program. 25 states and Tribes submitted LOIs in response and are now eligible for the grant funding: Alabama, Alaska, Arizona, Colorado, Delaware, Georgia, Kansas, Kentucky, Louisiana, MHA Nation, Michigan, Mississippi, Montana, Navajo Nation, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Utah, West Virginia, and Wyoming.  Each state or Tribe may apply for funding, with 100% of federal funding provided as grants with no state match requirement. Recipients will use funding to cover expenses related to the establishment and operation of a Class VI program.

EPA is also releasing the Underground Injection Control (UIC) Class VI Wells Grant Program Implementation document  to provide states and Tribes with information on how to apply for and use this funding. The implementation document describes requirements for grantees to implement programs, including specific actions designed to advance environmental justice in overburdened and undeserved communities. These grants will enable states and Tribes to manage the permitting of carbon dioxide geologic sequestration injection wells while protecting the environment, drinking water supplies, public health, and safety. Effectively designed and deployed projects deliver climate benefits, create good-paying jobs, and address cumulative pollution impacts in historically disadvantaged and overburdened communities.

The geologic sequestration of CO₂ in UIC Class VI wells is used in carbon capture, utilization, and sequestration to prevent CO₂ emissions from industrial sources from reaching the atmosphere. The CO₂ is injected through specially constructed wells that extend into deep rock formations. These formations must be tested and selected based on geologic characteristics suitable for the safe containment of CO₂ for long-term sequestration.

EPA has, under the Safe Drinking Water Act, developed stringent federal requirements for injecting CO₂ that protect public health by ensuring injection wells do not contaminate underground sources of drinking water. These UIC regulations mandate using a variety of measures to assure that injection activities will not endanger these drinking water sources.

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