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Markets & Analytics: Washington Watch
March 2025 Markets & Analytics

LNG Exporters Join Others In Advocating State Primacy For Permitting Of CCS Wells

Texas business associations are calling on the U.S. Environmental Protection Agency to accelerate carbon capture and storage deployment—the latest in a series of efforts that show states and the Trump administration are eager to boost the technology and capitalize on increased momentum.

In a joint letter sent in February to EPA Administrator Lee Zeldin, the Texas Oil & Gas Association, the Texas Association of Manufacturers, the Texas Chemistry Council and other members of the state’s business community urged the agency to clear its backlog of Class VI well applications and grant Texas the authority to permit these wells, which are used for permanent carbon storage deep underground.

“The first successful CCS deployment occurred at a natural gas processing facility in Texas over 50 years ago,” the letter relates. “Today, the need for this technology has never been greater. Manufacturers in Texas are investing in CCS, as are multiple liquefied natural gas export facilities, which are looking to sell their product to customers around the world who are increasingly demanding lower-carbon energy.”

The numbers associated with EPA’s backlog speak for themselves. The EPA has more than 160 applications for Class VI wells under review—one third of them in Texas alone—with most applications years past the agency’s own two-year target.

“By clearing out the massive backlog of Class VI applications and accelerating primacy for the states, the EPA can give industry the clear and predictable framework to do what it does best: invest in America,” the letter reasons.

The letter arrives as top Trump officials reaffirm their support for cutting through the red tape that is slowing carbon capture investment.

Energy Secretary Chris Wright made it clear at his Senate confirmation hearing. When asked whether he would work with North Dakota to advance carbon sequestration, he gave a resounding yes. Meanwhile, EPA Administrator Zeldin pledged to fast-track West Virginia’s application for Class VI well primacy, which has now been approved. 

Zeldin is not new to CCS. As a former congressman, he co-sponsored the Carbon Capture Improvement Act in 2017, 2019 and 2021, pushing to expand incentives for deploying carbon capture technologies.

“There are these power plants and industrial facilities that exist, they are emitting carbon, and they can use that incentive to make that investment,” Zeldin wrote. “Maybe they are ready to implement carbon capture and storage equipment at their site, but they need that incentive and the consequence for their business model, for that community where that business is, and for our country all benefit.”

Meanwhile, Secretary of Interior Doug Burgum—who, as governor of North Dakota, led the charge for the state to receive Class VI primacy—has also advocated for state primacy as a way to unlock new opportunities. During his confirmation hearing, he repeatedly touted the benefits of carbon capture.

During President Trump’s first term, carbon capture took off in the United States. He signed the Bipartisan Budget Act of 2018, which expanded the 45Q tax credit for carbon sequestration, and his EPA approved primacy for North Dakota and Wyoming, expediting permitting and driving investment. More recently, Louisiana and West Virginia have also been granted primacy.

Yet under Biden’s EPA, the backlog of carbon capture projects surged to record highs. As of early February, 161 Class VI permits are stuck in regulatory limbo, with 37% of those submitted in just the last twelve months. While the EPA initially aimed to process permits within two years, some have already been delayed for four years, which sends a clear message to businesses: don’t hold your breath.

The Trump administration appears ready to cut through the EPA’s gridlock, accelerate permitting and unlock the full potential of carbon capture—and states such as Texas are eager to capitalize on the momentum. With top officials such as Wright, Zeldin and Burgum committed to unleashing investment, the United States is poised to take full advantage of this proven technology. The only thing standing in the way? Regulatory roadblocks from the past administration.

Jeff Eshelman

JEFF ESHELMAN is president and chief executive officer of the Independent Petroleum Association of America and the founder/executive vice president of Energy In Depth. Along with more than two decades at IPAA, he previously worked at the Defense Logistics Agency, the White House Office of National Drug Control Policy and three public affairs firms.

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