The Nickel Report

Last month saw several developments in the U.S. Environmental Protection Agency’s (EPA) ongoing efforts to authorize states to implement Class VI of the federal Underground Injection Control (UIC) program under the Safe Drinking Water Act (SDWA) for geologic sequestration of carbon. This push toward state primacy is an important development for the rapidly growing carbon capture and sequestration (CCS) industry, for which Class VI permits are the critical construction and operating permit. Currently, there are 62 CCS projects - including many with multiple wells - with permit applications pending with EPA. Project proponents anticipate that permitting will be faster if administered by the state instead of EPA. The latest developments last month include: (1) EPA’s proposal to grant primacy to Arizona; (2) EPA’s proposal to grant primacy to Texas; (3) a federal court decision rejecting a challenge to EPA’s earlier grant of primacy to Louisiana; and (4) an ongoing challenge to West Virginia’s recently granted primacy.

On June 9, 2025, the US EPA took another step forward toward having states take the lead for implementing and enforcing Class VI Underground Injection Control (UIC) programs under the Safe Drinking Water Act (SDWA), which are central to carbon capture and sequestration (CCS) permitting. To date, EPA has signed Memoranda of Agreement (MOAs) with several states regarding state agreements to implement Class VI injection well programs. The Texas MOA was signed on April 29, 2025. Now, and consistent with the MOA, EPA has released its proposed rule to give Texas primacy over the program. 

The US Environmental Protection Agency (EPA) recently announced significant changes coming for two of its major rules that regulate per- and-polyfluoroalkyl substances (PFAS). First, EPA announced on May 12, 2025, that it is delaying the reporting period for the Toxic Substances Control Act (TSCA) Section 8(a)(7) PFAS Reporting Rule and is also considering reopening the entire rule to make substantive revisions. Second, on May 14, 2025, EPA also announced that it plans to withdraw its drinking water standards under the Safe Drinking Water Act (SDWA) for four of the six PFAS that EPA sought to regulate.