EPA Proposes Texas Oversight for CO2 Injection Permits
The US Environmental Protection Agency (EPA) has proposed approving Texas' application to oversee its own permitting for carbon dioxide (CO2) injection projects, a move that has been long sought by the state’s regulators and the oil and gas industry, as reported by Reuters.
The proposal aims to enable carbon capture and storage (CCS) projects to mitigate climate change by permanently storing CO2 emissions deep underground, particularly from power plants and industrial facilities.
EPA Administrator Lee Zeldin stated that Texas is well-equipped to protect its drinking water from contamination while allowing the state to proceed with lucrative CO2 injection projects. He emphasized that this move supports cooperative federalism, allowing Texas to take on greater responsibility for the approval and regulation of Class VI CO2 injection wells.
Concerns and Opposition
Despite the EPA's support, there are concerns from landowners and environmental groups who worry that CO2 injection could contaminate groundwater and potentially trigger earthquakes or cause old oil-well blowouts, particularly in the Permian Basin.
These concerns come as Texas also grapples with challenges in managing wastewater disposal for oil and gas activities, an area where it already holds oversight authority.
Political and Industry Support
The proposed approval comes amid ongoing support from both Republicans and certain oil companies, including Occidental Petroleum, for CCS technology. Texas Republican Senator John Cornyn praised the move, stating,
Zeldin said, "EPA is taking a key step to support cooperative federalism by proposing to approve Texas to permit Class VI [CO2 injection] wells in the state,”
Many oil companies with expertise in deep underground drilling see the move as an opportunity to expand into carbon sequestration, allowing them to further reduce their carbon footprint while also meeting voluntary emission reduction targets.
Also read: EPA Issues First Carbon Sequestration Permit in Texas to Occidental Petroleum
Incentives and Challenges
According to Reuters, the approval is in line with federal tax credits for carbon sequestration projects that were expanded under the Inflation Reduction Act during the Biden administration, which remain intact despite challenges from House Republicans seeking to reduce subsidies for clean energy initiatives.
