On June 9, 2025, the U.S. Environmental Protection Agency (EPA) proposed granting the State of Texas primary enforcement authority—commonly referred to as “primacy”—over the permitting and regulation of Class VI underground injection control (UIC) wells under the Safe Drinking Water Act (SDWA). This would authorize the Texas Railroad Commission (RRC) to regulate the geologic sequestration of carbon dioxide (CO₂) through Class VI wells—an essential component of carbon capture and storage (CCS) infrastructure.
If finalized, Texas would become the fifth state to secure such authority, joining North Dakota (2018), Wyoming (2020), Louisiana (2023) and West Virginia (2025). (EPA also proposed granting primacy to Arizona in May over all classes of UIC wells, including Class VI.)
EPA-RRC Memorandum of Agreement: A Milestone in Primacy Delegation
On April 29, 2025, EPA Region 6 Regional Administrator Scott Mason and RRC Chairman and Commissioners executed a Memorandum of Agreement Addendum 2 (MOA), a key milestone in the primacy process that signaled the proposed approval was likely imminent. This agreement outlined the operational framework for the delegation of regulatory authority to the RRC, including compliance monitoring and enforcement procedures, community engagement, and information sharing, and EPA’s oversight role and mechanisms in the RRC’s administration of the program. Notably, the MOA included an acknowledgement that all Class VI permits, applications, and other information for Texas-based projects are to be transferred to RRC upon the final primacy determination. Environmental justice measures were not included in the final MOA.
The MOA affirmed that Texas has the technical, legal and administrative capacity to implement the Class VI program in a manner that protects underground sources of drinking water while supporting economic development and innovation in carbon management.
What Class VI Primacy Means for Texas
Class VI wells are designed for the injection of CO₂ into deep geologic formations for permanent sequestration. These wells are regulated under stringent criteria under the SDWA to ensure the protection of underground sources of drinking water (USDWs). With primacy, the RRC would be responsible for implementing these safeguards through site characterization requirements, well construction standards, testing and monitoring protocols, and financial assurance mechanisms.
According to its application, the RRC’s decades of experience managing UIC programs leave it well positioned to assume oversight of Class VI wells. The RRC already oversees Class I through V wells, including Class II wells used for oil and gas-related injections. The EPA’s press release underscored the state’s preparedness, stating that “Texas is best positioned to protect its underground sources of drinking water while advancing economic growth and energy dominance.” Region 6 Administrator Scott Mason echoed this view, affirming that Texas “has effectively and reliably administered programs for underground injection wells while protecting drinking water sources for decades,” and expressing confidence that “their success will continue with Class VI wells.”
If the EPA’s proposal is finalized, the RRC will be authorized to issue and enforce permits directly, eliminating the need for federal EPA review and approval. This shift is expected to significantly reduce administrative delays, clear permitting backlogs, and facilitate more rapid investment in and deployment of CCS infrastructure across the state.
Texas has long been a national leader in both fossil energy and emerging clean technologies. With primacy, the state can leverage its geological assets, experienced regulatory institutions and energy workforce to scale CCS projects efficiently and responsibly. Ideally, the result is a nimbler permitting process that supports both emissions reductions and economic growth.
A Step Forward for Cooperative Federalism and State Empowerment
EPA’s proposed approval reflects its ongoing commitment to cooperative federalism and the new Administration’s broader objective of restoring American energy dominance. By granting states primary enforcement authority over geologic carbon sequestration wells, EPA aims to empower qualified state agencies to implement federal environmental programs more efficiently and with greater local adaptability.
EPA Administrator Lee Zeldin framed the proposal accordingly, stating that “EPA is taking a key step to support cooperative federalism” by which EPA will delegate decision-making authority “to states that have local expertise and understand their water resources, geology, communities, and opportunities for economic growth.”
The announcement drew support from Texas lawmakers. Senator John Cornyn praised the move as a next logical step for a state leading in both energy production and carbon management, noting that state-level control over the permitting process could streamline CCS development and “put Texas in the driver’s seat” for advancing decarbonization efforts. Representatives Dan Crenshaw and August Pfluger echoed these sentiments, pointing to the potential for job creation, emissions reductions, and local control.
Next Steps
EPA is soliciting public comments on the proposed approval. Following the close of this 45-day public comment period, EPA will review and respond to public comments, making any necessary revisions or updates to the proposed rule for final consideration by Zeldin. EPA will hold a virtual public hearing on July 24 at 5 p.m. CST. If finalized, Texas’s Class VI primacy could take effect as early as this calendar year.
Strategic Considerations for Companies Advancing CCS Projects in Texas
With EPA’s proposed approval of Texas’s Class VI primacy and the groundwork laid by the recent EPA-RRC Memorandum of Agreement, stakeholders should begin preparing now for the regulatory and operational shift that primacy will bring. Key considerations include:
- Participate in and Monitor the Public Comment Process
The outcome of the public comment period may shape the scope and timeline for finalizing Texas’s primacy. Companies should evaluate the proposed approval and RRC’s regulatory framework, submit comments where appropriate, and engage with regulators to ensure the final rulemaking reflects operational realities. The tone and volume of public feedback may also offer early insights into potential legal or procedural delays. - Recalibrate Project Timelines and Regulatory Strategies
Entities with pending or planned Class VI applications in Texas—particularly those currently before EPA Region 6—should anticipate a possible handoff to the RRC later this year. Developers should revisit permitting timelines, coordinate with counsel to address both state and federal requirements during the transition, and consider whether early strategic engagement with RRC staff can help de-risk the permitting process. Simultaneously, stakeholders should also consider the risk of litigation challenging Texas’s primacy. Similar lawsuits have been brought in other states, such as Louisiana, where environmental groups cited liability waivers and the state’s expertise and resources to manage permitting. Although the Fifth Circuit dismissed that case for lack of standing, the court did not address the merits, potentially leaving the door open to future challenges under different factual circumstances. Any such litigation could introduce uncertainty or delays in the transition timeline. - Prepare for RRC’s Approach to Community Engagement and Transparency
Texas’s proposed Class VI program places emphasis on public outreach and transparency. Developers should plan early for stakeholder engagement, particularly in communities near proposed CCS sites. Early and meaningful engagement strategies, clear documentation, and responsiveness to local concerns will be essential to maintaining momentum under a new regulatory structure. - Assess Long-Term Permitting and Liability Management
Companies should evaluate how Texas’s assumption of enforcement authority will affect long-term monitoring, post-injection site care, and financial assurance requirements. While the core technical criteria are federally defined, state-level implementation could introduce distinct expectations or pathways for compliance. It is also an opportunity to shape how Texas builds out its own enforcement and closure protocols. - Align Internal Compliance and Risk Protocols
With the primacy transition ostensibly on the horizon, internal teams should align now on how to respond to the new permitting framework. This includes tracking rule changes, updating internal compliance procedures, and modeling how Texas-specific processes will influence risk profiles and reporting obligations.