Watchdog dings EPA over CO2 injection permits

By Miranda Willson | 07/29/2025 12:59 PM EDT

Permitting delays could deter construction of new wells in the coming years, the agency’s Office of Inspector General said.

Gauges display the CO2 pressure in the pipes over a CO2 injection well.

Gauges display the CO2 pressure in the pipes over a CO2 injection well at Denbury Resources' facility in Tinsley, Mississippi, on Oct. 22, 2013. Rogelio V. Solis/AP

EPA could improve permitting for carbon dioxide storage wells and make the process more transparent for communities affected by those projects, the agency’s independent watchdog said Tuesday.

The agency has received millions in funding since 2021 to speed up processing of permits for carbon dioxide injected deep underground. A federal tax credit known as 45Q has made those wells more attractive to oil and gas companies, spurring a slew of new permit applications at EPA, which regulates the practice to safeguard drinking water.

But while EPA has expanded its capacity to approve Class VI injection wells, it failed to spend $1.2 million appropriated for the program in 2023 within the appropriate time frame, the agency’s Office of Inspector General said in a new report. That money was set aside to train agency staff and state officials, including on things like inspections, the report said.

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“Permitting delays may deter the construction of Class VI wells, and a lack of transparency may prevent communities from accessing information about proposed and operational Class VI wells near them,” the watchdog concluded.

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