All 6 Class VI primacy states & key EPA-administered states — covering Class VI permitting, state agencies, pore space ownership, liability transfer, 45Q/OBBBA tax credits, PHMSA pipeline safety, and full state/federal regulatory requirements.
The One Big Beautiful Bill Act (July 4, 2025) preserved and enhanced the 45Q credit. All end-uses now receive parity at the full sequestration rate. No changes to the credit timeline — facilities must begin construction by end of 2032. Direct pay available for first 5 years. Transferability maintained except to specified foreign entities. FEOC restrictions apply to facilities placed in service after July 4, 2025.
Under the Safe Drinking Water Act, Class VI wells are exclusively for long-term geologic sequestration of CO2. EPA administers permits in non-primacy states; 6 states now have primacy (ND, WY, LA, WV, AZ, TX). Currently ~130+ pending applications at EPA. Primacy states report faster permitting (under 12 months vs. 24+ months at EPA). EPA retains oversight authority and independent enforcement powers even in primacy states.
PHMSA issued a comprehensive NPRM (Jan 2025) to strengthen CO2 pipeline standards — including first-ever gaseous-phase CO2 regulations, leak detection systems, vapor dispersion analyses, 48-inch minimum cover depth, and emergency response coordination. The rulemaking is under review by the Trump administration. A separate ANPRM (June 2025) seeks feedback on eliminating undue burdens. California has an active pipeline moratorium pending PHMSA final rule. Illinois SAFE CCS Act imposed a 2-year pipeline moratorium (until July 2026).
40 CFR Part 98 Subpart RR requires facilities that inject CO2 for geologic sequestration to report annually to EPA. Includes Monitoring, Reporting, and Verification (MRV) plan approval. Reports include mass of CO2 injected, produced, emitted, and sequestered. Critical for 45Q tax credit qualification. EPA has proposed scaling back GHGRP which could complicate net carbon removal demonstrations. Subpart PP covers CO2 suppliers; Subpart UU covers CO2 injection.
National Environmental Policy Act review required for federal actions (including Class VI permits issued by EPA, DOE-funded projects). Environmental Impact Statements or Environmental Assessments may be required. Clean Air Act applies to capture facilities — New Source Review/PSD permits for new or modified major sources. Title V operating permits for major facilities. NSPS standards may apply to specific source categories.
Infrastructure Investment and Jobs Act (2021) provided $12B+ for CCS: $3.5B for regional DAC hubs, $2.5B for carbon storage validation/testing, $2.1B for CCUS demonstrations, $25M for EPA Class VI administration. CarbonSAFE program for storage site characterization. Regional Carbon Sequestration Partnerships. Note: Trump administration terminated 24 DOE projects in May 2025, generating $3B+ in cited savings.