News & Analysis as of

Carbon Capture and Sequestration Environmental Protection Agency (EPA)

Jackson Walker

IRS Issues Safe Harbor for Section 45Q Carbon Capture Credits

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On December 19, 2025, the IRS issued Notice 2026-1, providing a safe harbor for taxpayers seeking to claim the federal income tax credit for qualified carbon oxide sequestration under section 45Q of the Internal Revenue Code...more

McDermott Will & Schulte

IRS roundup: December 15 – December 22, 2025

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for December 15, 2025 – December 22, 2025....more

Vinson & Elkins LLP

IRS Provides Certainty on 45Q Amid EPA Reporting Changes

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On December 19, 2025, the IRS delivered a little holiday cheer in the form of IRS notice 2026-01 (the “45Q Safe Harbor Notice”), which addressed uncertainty created by the Environmental Protection Agency’s (“EPA”)...more

Baker Botts L.L.P.

Treasury Establishes 45Q Carbon Capture Tax Credit Safe Harbor for Verifying CO2 Sequestration

Baker Botts L.L.P. on

On December 19, 2025, Treasury and the IRS released Notice 2026-1 (the “Notice”) establishing an alternative method for taxpayers to substantiate carbon oxide sequestration volumes for section 45Q carbon capture tax credits...more

Bracewell LLP

IRS Notice Provides Guidance to Establish Secure Geological Storage for Purposes of Code Section 45Q

Bracewell LLP on

Notice 2026-1 (the Notice) provides important guidance under Section 45Q of the Internal Revenue Code of 1986, as amended (the Code), for taxpayers claiming that carbon oxides are stored in secure geological storage following...more

Stoel Rives LLP

IRS Issues Guidance Regarding Safe Harbor for Section 45Q Carbon Oxide Sequestration Credit

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The IRS today released guidance regarding certain reporting requirements for determining eligibility for the Section 45Q carbon oxide sequestration credit.  The guidance, Notice 2026-1 (the Notice), addresses proposed...more

Baker Botts L.L.P.

Carbon Capture Developments: Class VI Primacy in Louisiana and Texas

Baker Botts L.L.P. on

As energy infrastructure projects ramp up along the U.S. Gulf Coast and beyond, the role of states in holding primary enforcement authority (“primacy”) for certain federal programs has taken center stage; this is particularly...more

McGinnis Lochridge

Texas takes the reins on Class VI carbon sequestration wells

McGinnis Lochridge on

The EPA’s November 2025 approval granting Texas primary enforcement authority over Class VI injection wells fundamentally changes who controls permitting of carbon capture and sequestration projects across the nation’s...more

Haynes Boone

EPA Grants Texas Primacy Over Class VI Injection Wells

Haynes Boone on

The U.S. Environmental Protection Agency (EPA) issued a final rule approving the Texas Railroad Commission’s (RRC) application for primacy over Class VI injection wells. Class VI is a category of Underground Injection Control...more

Winstead PC

Texas’ CCS Landscape Shifts with Class VI Primacy and Clearer Pore-Space Ownership Rules

Winstead PC on

On November 12, 2025, the U.S. Environmental Protection Agency (EPA) granted the Texas Railroad Commission (RRC) primacy over the Class VI Underground Injection Control (UIC) program, authorizing Texas to assume primary...more

Beveridge & Diamond PC

Texas Class VI Primacy: What EPA’s Delegation to the Railroad Commission Means for CCS Projects

Beveridge & Diamond PC on

On November 12, 2025, the U.S. Environmental Protection Agency (EPA) approved Texas’s application for Class VI UIC primacy, giving the Texas Railroad Commission (RRC) primary enforcement authority over CO₂ sequestration wells...more

Phelps Dunbar

Texas Gains Primacy for Class VI Carbon Capture Wells

Phelps Dunbar on

The U.S. Environmental Protection Agency (EPA) recently finalized a rule granting the State of Texas primary permitting and enforcement authority over Class VI Underground Injection Control (UIC) wells under the federal Safe...more

Pillsbury - Gravel2Gavel Construction & Real...

Texas Granted Primacy Over Class VI Carbon Storage Wells

On November 12, 2025, the U.S. Environmental Protection Agency (EPA) approved Texas’s request for primacy over Class VI underground injection control (UIC) wells under the Safe Drinking Water Act, authorizing the Railroad...more

Troutman Pepper Locke

Texas Receives Class VI Primacy: What CCS Developers Need to Know

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Last week, the U.S. Environmental Protection Agency (EPA) announced that it will formally grant the Railroad Commission of Texas (RRC) primary authority (known as “primacy”) to administer the Class VI Underground Injection...more

Latham & Watkins LLP

EPA Grants Texas Primacy Over Class VI Carbon Storage Wells

Latham & Watkins LLP on

The rule positions the Railroad Commission of Texas as the primary permitting authority over Class VI wells and could expedite CCS projects in the state....more

Bracewell LLP

EPA Grants Texas Primacy for Class VI Wells

Bracewell LLP on

On November 7, 2025, Environmental Protection Agency (EPA) Administrator Lee M. Zeldin signed a final rule approving the application of the State of Texas for transfer of primacy over Class VI Underground Injection Control...more

Vinson & Elkins LLP

Texas Progresses Toward CCS Primacy (UPDATED)

Vinson & Elkins LLP on

This week, the U.S. Environmental Protection Agency (EPA) took the penultimate step to granting Texas the authority to directly issue Class VI permits under the Safe Drinking Water Act’s Underground Injection Control (UIC)...more

Baker Botts L.L.P.

Texas Granted Primacy over Class VI Carbon Sequestration Wells

Baker Botts L.L.P. on

On November 12, 2025, the Railroad Commission of Texas (“RRC”) and U.S. Environmental Protection Agency (“EPA”) announced that EPA had granted Texas primary enforcement authority (“primacy”) under the Safe Drinking Water Act...more

Holland & Knight LLP

Texas Granted Primacy Over Class VI Wells, Streamlining Carbon Capture and Storage Permitting

Holland & Knight LLP on

The U.S. Environmental Protection Agency (EPA) on Nov. 12, 2025, announced a final rule granting the State of Texas primary implementation and enforcement authority (also known as primacy) for Class VI Underground Injection...more

Cozen O'Connor

AGs from Both Parties Oppose Rollbacks to Greenhouse Gas Reporting Program

Cozen O'Connor on

Democratic and Republican AGs submitted separate comment letters opposing aspects of an Environmental Protection Agency (EPA) proposal to rescind the Greenhouse Gas Reporting Program (GHGRP), which requires that major...more

Phelps Dunbar

Louisiana Freezes New Carbon Capture Applications

Phelps Dunbar on

Louisiana Gov. Jeff Landry this week signed an Executive Order declaring a moratorium on review of new permit applications for Class VI underground injection wells in the state and directing prioritized review of several...more

Vinson & Elkins LLP

Louisiana Presses Pause on Class VI Permitting

Vinson & Elkins LLP on

On October 15, 2025, Louisiana Governor Jeff Landry issued an Executive Order (“Order”) halting the review of all new Class VI Underground Injection Control (“UIC”) well permits in the state and directed the state’s...more

K&L Gates LLP

Carbon Quarterly–Volume 12

K&L Gates LLP on

No matter your views on climate change policy, there is no avoiding an increasing focus on carbon regulation, resiliency planning, and energy efficiency at nearly every level of government and business. Changes in carbon—and,...more

Latham & Watkins LLP

EPA Proposes Repeal of GHG Reporting Program, Grants Arizona Primacy for UIC Wells

Latham & Watkins LLP on

The agency’s actions have significant implications for the domestic carbon capture and storage industry. In the same week, the US Environmental Protection Agency (EPA) took two rulemaking actions with significant...more

Goldberg Segalla

EPA Proposes to End Greenhouse Gas Reporting Program for Industrial Facilities

Goldberg Segalla on

The Environmental Protection Agency announced Sept. 12 a proposed rule to end the Greenhouse Gas Reporting Program (GHGRP) for most industrial facilities. Under the GHGRP, over 8,000 energy facilities and suppliers are...more

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