The permitting process for carbon-capture projects is, in some ways, very much like navigating Houston’s notorious rush-hour traffic — if everyone tries to move at once, gridlock can quickly ensue. That’s true at both the federal level, where the Environmental Protection Agency (EPA) has more sequestration wells under review than ever before, and at the state level, where Louisiana just hit the pause button on its reviews, hoping for time to clear its backlog. In today’s RBN blog, we look at how increased interest in carbon capture has exacerbated the permitting backlog.

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Let’s start with a quick refresher on carbon capture. When carbon dioxide (CO2) is captured and stored, and that’s all, the process is called carbon capture and sequestration (CCS) and requires a Class VI injection well for long-term storage in deep geologic formations. If the CO2 is used for some other process before it’s stored, it is called carbon capture, use and sequestration (CCUS) and for certain applications requires a much-easier-to-permit Class II injection well — the most common example being the type used in enhanced oil recovery (EOR). Permitting for Class VI wells is typically handled by the EPA, although a few states have gained control over that process, something referred to as primacy, and several others are attempting to do the same (more on those states later).

There are plenty of CCS projects in the works nationwide, driven at least in part by improvements made to the 45Q tax credit for permanent CO2 sequestration as part of 2022’s Inflation Reduction Act (IRA) and this year’s One Big Beautiful Bill Act (OBBBA). Under the budget law passed in July, the tax credits for CCS and CCUS/EOR are now equal at $85/MT for most carbon-capture facilities and $180/MT for direct air capture (DAC). Before the changes this year, the tax credits for CCUS/EOR were lower than for CCS. The blue bar sections in Figure 1 below indicate the credit rates under the IRA; the orange bar sections show the increases under the OBBBA.

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About the song

“In Spite of Ourselves” was written by John Prine and appears as the 15th song on his 13th studio album of the same name. The song features Iris DeMent on vocals with Prine. Dement sang on four other tracks on the LP. Prine wrote the song for Billy Bob Thornton’s film, Daddy and Them. It’s about two lovers who look past each other’s imperfect ways, to a love that will last despite themselves. It was the first song Prine recorded after battling throat cancer in 1998. Personnel on the record were: John Prine (vocals, acoustic guitar), Iris DeMent (vocals) and Marty Stuart (acoustic guitar).

The album, In Spite of Ourselves, was recorded between August 1997 and December 1999 at Country Arms and Jack’s Tracks in Nashville. The album featured duets of classic country songs with female country artists, including Connie Smith, Lucinda Williams, Trisha Yearwood and Iris DeMent. “In Spite of Ourselves” was the only Prine song on the LP. Produced by Jim Rooney and John Prine, it was released in September 1999 and went to #21 on the Billboard Hot Country Albums chart and #197 on the Billboard 200 Albums chart. 

John Prine was an American country/folk music singer, songwriter and musician. Working as a mailman in Chicago in the late 1960s, he began writing songs and performing at coffeehouses in the area. After Steve Goodman told Kris Kristofferson about Prine, Kristofferson began using him as his opening act, leading to a deal with Atlantic Records in 1971. He released 18 studio albums, six live albums, three compilation albums and eight singles. He won four Grammy Awards and is a member of the Songwriters Hall of Fame. Prine died in Nashville in April 2020 at 73.

Iris DeMent is an American singer, songwriter and musician. She has released seven studio albums and three singles. She continues to record and tour.

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"About the Song" -- written by Mickey McMahan , RBN Director of Musicology