A coalition of Texas energy and industrial organizations urged the new head of the Environmental Protection Agency (EPA) to swiftly grant the state primacy over carbon capture and storage (CCS) permitting.
The groups argue that this shift would stimulate private investment and accelerate the deployment of carbon capture technology.
In a letter to EPA Administrator Lee Zeldin, six organizations, including the Texas Oil and Gas Association and the Texas Association of Manufacturers, requested expedited approval of Texas’s application for primacy.
This designation would allow Texas to manage CO2 injection permitting within its borders, rather than relying on the EPA, which currently faces a substantial backlog of project applications.
The groups contend that streamlining the approval process by empowering states would provide industry with the necessary regulatory certainty to invest in American energy projects.
Texas currently has 43 projects awaiting review, representing a third of all applications nationwide. The state aims to become the fifth to receive EPA authorization for independent oversight of CO2 injection permitting.
Proponents suggest that carbon capture and storage initiatives could inject up to $1.8 billion into the Texas economy and support the needs of US liquefied natural gas (LNG) export facilities, many of which serve international clients seeking lower-carbon energy sources.
Relevant: Exxon Seeks Confidentiality For Texas Carbon Storage Lease Agreement
However, local landowners and environmental advocates have voiced concerns about potential risks associated with underground CO2 storage. They point to the possibility of induced seismic activity and well failures, issues already present in Texas due to the challenges of wastewater management.
The 2022 Inflation Reduction Act (IRA), a major climate and energy law, allocates substantial subsidies for carbon capture and storage, including a significant tax credit for sequestering CO2.
Despite vows to dismantle the IRA, energy analysts predict these incentives will likely remain intact due to bipartisan support, particularly from Republican-led states and lawmakers.
Read more: Michigan Moves To Create State-Run Carbon Capture Permitting Program
