Texas is one step closer to gaining more control over how it permits carbon capture and storage (CCS) projects. This move could help the U.S. cut emissions while staying competitive in the global energy game.
In June, the U.S. Environmental Protection Agency (EPA) proposed approving Texas’ request for permitting authority under the Safe Drinking Water Act (SDWA) for Class VI underground injection wells for carbon capture and storage (CCS) in the state. The State of Texas already has permitting authority for other injection wells (Classes I-V).
Why This Matters for Texas
Texas is the headquarters for virtually every segment of the energy industry. According to the U.S. Energy Information Administration, Texas is the top crude oil- and natural-gas producing state in the nation. The state has more crude oil refineries and refining capacity than any other state in the nation. Texas produces more electricity than any other state, and the demand for electricity will grow with the development of data centers and artificial intelligence (AI). Simply put, Texas is the backbone of the nation’s energy security and competitiveness. For the nation’s economic competitiveness, it is important that Texas continue to produce more energy with less emissions. CCS is widely regarded as necessary to continue to lower the emissions intensity of the U.S. industrial sector for critical products including power generation, refining, chemicals, steel, cement and other products that our country and world demand.
The Greater Houston Partnership’s Houston Energy Transition Initiative (HETI) has supported efforts to bring CCUS to a broader commercial scale since the initiative’s inception.
What is Primacy, and Why is it Important?
If approved, primacy would give permitting authority for Class VI wells for CCS to the the Texas Railroad Commission instead of the EPA. Texas would be required to follow the same strict standards the EPA uses. The EPA has reviewed Texas’ application and determined it meets those requirements.
Research suggests that Texas has strong geological formations for CO2 storage, a world-class, highly skilled workforce, and robust infrastructure primed for the deployment of CCS. However, federal permitting delays are stalling billions of dollars of private sector investment. There are currently 181 applications under review, one-third of which are located in Texas, with some applications surpassing the EPA’s target review period of 24 months. This creates uncertainty for developers and investors and keeps thousands of potential jobs out of reach. The volume of permits from Texas strains the EPA’s time and resources to issue Class VI permits across the states in a timely manner.
The EPA has granted primacy to North Dakota, Wyoming, Louisiana and West Virginia for regulating Class VI wells. These states have been able to issue permits in a timely and safe manner. While Texas submitted its primacy application two years ago, now is the time for Texas to join other states with Class VI primacy.
Is CCS safe?
A 2025 study by Texas A&M University reviewed operational history and academic literature on CCS in the United States. The study analyzed common concerns related to CCS efficacy and safety and found that CCS reduces pollutants including carbon dioxide, particulate matter, sulfur oxides and nitrogen oxides. The research found that the risks of CCS present a low probability of impacting human life and can be effectively managed through existing state and federal regulations and technical monitoring and safety protocols.
What’s Next?
The public comment period is currently underway. Once closed, EPA will review the comments and decide whether to move forward with Texas’ application. CCS supporters should submit comments encouraging the EPA to approve the application here by August 1, 2025.
