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On November 12, 2025, the U.S. Environmental Protection Agency (EPA) approved Texas’s request for primacy over Class VI underground injection control (UIC) wells under the Safe Drinking Water Act, authorizing the Railroad Commission of Texas (RRC) to issue and oversee permits for carbon capture and storage (CCS) injection projects. The final rule makes Texas the sixth state to secure primacy over Class VI wells—following North Dakota, Wyoming, Louisiana, Arizona and West Virginia—and marks EPA’s third such approval in the last several months.
By securing primacy, effective December 15, 2025, Texas gains direct regulatory control over the siting, construction, operation and closure of CO₂ injection wells intended for long-term geological sequestration. This authority enables the state to establish permitting criteria, environmental review procedures and monitoring standards tailored to Texas’s unique geologic formations and existing oil and gas infrastructure.
With this latest decision, Texas will now operate UIC programs covering all six UIC well classes, a milestone EPA described as advancing both economic growth and energy dominance while ensuring protection of the state’s underground sources of drinking water. EPA Administrator Lee Zeldin and Region 6 officials characterized the approval as a model of “cooperative federalism,” under which states with technical expertise manage environmental programs that would otherwise remain under federal control.
Practicalities of Primacy
Primacy transfers primary permitting authority for CCS wells from EPA to state regulators well acquainted with Texas geology and energy infrastructure. The RRC already manages UIC programs for all other well types (Classes I–V) and has institutional experience overseeing subsurface injection and long-term monitoring.
Before seeking primacy, the RRC developed and formally adopted state Class VI regulations in 2022, modeled closely on EPA’s federal requirements at 40 C.F.R. Parts 144 and 146. As part of the primacy application, EPA reviewed those regulations and determined that they meet or exceed federal standards for site characterization, well construction, area of review, post-injection site care and financial responsibility. This approval confirms that Texas’s Class VI regulatory framework is fully enforceable under state law and legally equivalent to the federal program.
According to EPA, more than 60 Class VI well applications are currently pending in Texas (24% of all Class VI applications pending with EPA). Those files will now be transferred from EPA to the RRC for review, eliminating duplicative federal-state review and potentially cutting years off permitting timelines.
This shift also reallocates administrative responsibilities under the Safe Drinking Water Act. While EPA retains oversight authority to ensure consistency with federal minimum standards, the RRC will now serve as the primary permitting agency—responsible for compliance assurance, enforcement actions and public engagement obligations under both federal and state law. EPA will continue to conduct periodic program reviews and retains authority to withdraw primacy if Texas fails to maintain equivalency. The decision underscores EPA’s willingness to delegate regulatory authority where states demonstrate sufficient technical capacity, a trend likely to influence other jurisdictions pursuing primacy petitions.
Broader Class VI Primacy Context
Texas’s approval follows closely on the heels of Arizona and West Virginia, both of which received Class VI primacy earlier this year. These consecutive approvals reflect a broader national trend toward cooperative federalism and state-level management of natural resources, as federal and state agencies look to balance energy development with environmental protection. However, state approaches to implementation differ markedly.
For example, Texas being granted primacy comes as Louisiana, which secured its own Class VI primacy in 2023, temporarily pauses review of new permit applications under a recent executive directive from Governor Jeff Landry issued in October 2025. The order directs the Louisiana Department of Conservation and Energy to suspend new Class VI permitting while it establishes a more structured and transparent review process. The Department has been instructed to coordinate with other state agencies—including Environmental Quality, Revenue, and Wildlife & Fisheries—to reassess the permitting framework, emphasizing environmental safeguards, local economic impacts, and long-term monitoring strategies. The directive also emphasizes enhanced public engagement and greater transparency in the permitting process as Louisiana continues evaluating 32 pending applications covering more than 100 proposed Class VI wells.
The pause highlights emerging legal and policy tensions between rapid CCS deployment and the need for transparent environmental governance. Louisiana’s decision could serve as a cautionary example for Texas and other states, where accelerated permitting may invite heightened scrutiny from environmental groups and local stakeholders if state procedures are perceived as insufficiently rigorous.
Texas’s Posture and Near-Term Outlook
While Louisiana has issued only one Class VI permit since obtaining primacy in 2023—and Arizona and West Virginia have yet to issue any—the RRC has signaled a far more aggressive posture. The agency announced plans to issue as many as 25 Class VI permits within its first two years of oversight, a target that reflects both the scale of industry interest in Texas and the state’s intention to move carbon storage projects from concept to operation on an accelerated timeline and position the state as a national CCS hub.
In practice, this means developers could see faster application reviews, earlier site characterization approvals, and closer coordination among state energy and environmental regulators. However, the pace of issuance will depend on the RRC’s staffing and ability to conduct the rigorous geologic, engineering and financial responsibility analyses required under federal Class VI standards.
Looking Ahead
For project developers, Texas’s new authority could shorten permitting timelines and improve predictability in the Class VI review process. At the same time, developers should anticipate continued scrutiny of environmental and public participation issues, particularly as EPA and stakeholders assess how the RRC implements its newly delegated authority. Similar to Louisiana’s experience following its primacy approval, Texas may face procedural or administrative challenges to EPA’s final rule or the RRC’s early permitting decisions, and developers should plan accordingly.
Companies planning new CCS projects in Texas should begin evaluating how the RRC’s program-specific requirements differ from EPA’s and adjust their permitting strategies accordingly. Engaging with counsel early can help ensure that applications align with the RRC’s technical and procedural expectations and anticipate any future legal or policy challenges to the Texas primacy rule.
Developers already holding federal Class VI permits or pending applications should also consider the implications of transferring jurisdiction from EPA to the RRC, including potential opportunities to refine project design or compliance strategies under the new framework.
Early participation in the RRC’s review process may offer practical advantages as the agency begins addressing a substantial backlog of applications. With primacy now established and the regulatory framework in place, Texas is positioned to advance commercial-scale CO₂ storage, reinforcing its status as a leading CCS jurisdiction. At the federal level, recent amendments under the July 2025 One Big Beautiful Bill strengthened the Section 45Q tax credit for both enhanced oil recovery and direct air capture projects, while introducing foreign entity of concern limitations. Together, these state and federal developments create a more defined and potentially more competitive landscape for carbon management investment and project deployment in the United States.
Pillsbury’s Environmental & Natural Resources, Projects, and Energy teams will continue to monitor state and federal developments affecting CCS permitting, primacy petitions, and Class VI well oversight nationwide.
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