By Liz Hampton<\/p>\n
Feb 9 (Reuters) – The U.S.Environmental Protection Agency (EPA) is moving too slowly to allow states to permit and oversee carbon-reduction projects, according to Louisiana’s governor, slowing millions of dollars in investments designed to tackle greenhouse gas reduction.<\/p>\n
Louisiana and yA<\/a> other top oil-producing states say they can speed up permitting of carbon sequestration projects if allowed to handle decisions that currently fall under the EPA.There are dozens of these projects with multi-million dollar price tags proposed by energy firms around the United States.<\/p>\n Developers would benefit from broadening permitting of so-called Class VI carbon capture and sequestration (CCS) wells to states, Louisiana Governor John Bel Edwards said in a letter last month to EPA Administrator Michael Regan seen by Reuters.The process has lacked clarity and a clear timeline, Edwards wrote.<\/p>\n “More information on the progress of Louisiana’s Class VI application would help encourage potential CCS operators to make firm investment decisions,” the governor said.<\/p>\n Offshore oil producers Talos Energy Inc, Occidental Petroleum Corp and gas-exporter Sempra Infrastructure have proposed Louisiana carbon sequestration projects.The state’s energy regulator e}V<\/a> has received little information from the EPA on the transfer timeline or process, a spokesperson said on Thursday.<\/p>\n “We are now seeing concepts begin to turn into investment decisions – but a recurring question is if and when Louisiana will receive primacy,” or kL<\/a> taking over permits and regulation from the EPA, Edwards wrote in a letter dated Jan. 18.<\/p>\n The governor requested<\/a> the EPA’s Regan provide an update for preliminary decisions, the path for its review and when a public comment period might begin. Edwards also asked for e}V<\/a> a designated point of contact within the EPA office for eV<\/a> updates on the application going forward.<\/p>\n The EPA said on Thursday it was working on reviewing Louisiana’s Class VI primacy application, but did not have a specific timeline for when the review would be complete.<\/p>\n Edwards’ office did not immediately respond to a request for comment.<\/p>\n STRUGGLE FOR PERMIT OVERSIGHT<\/p>\n The uncertainty over primacy comes as the Biden administration is pushing for investments in clean energy and lower-carbon fuels to reduce greenhouse gas emissions by 50% by 2030 from 2005 levels.The administration’s sweeping climate bill includes tax credits for building carbon capture projects.<\/p>\n