64 Carbon Projects Were Stuck. Texas Just Unlocked Them

The U.S. Environmental Protection Agency just handed Texas the keys to its own carbon storage future. On November 12, 2025, the agency granted Texas primary authority over Class VI underground injection wells, the permits required for permanent CO2 sequestration.

This isn't just a regulatory milestone. Texas had the largest backlog of pending Class VI applications at the EPA. Those projects, stuck in federal review for months or years, can now move forward under state oversight.

Why This Changes Everything

The Railroad Commission of Texas (RRC) will now serve as the permitting authority for Class VI wells statewide. These wells inject captured carbon dioxide deep underground into geological formations for permanent storage. The rule takes effect December 15, 2025.

Here's why the industry is paying attention:

• The EPA has issued only 11 Class VI permits nationwide since the program began in 2011
• States with primacy, like Wyoming, now approve wells in under a year, compared to 24+ months under EPA review
• The RRC already has 18 applications under review and expects more in the coming weeks

>> RELATED: Carbon Sequestration in Texas: A New Era for CO2 Storage

The Six-State Primacy Club

Texas now joins an exclusive group of states that have taken control of their carbon storage futures. Each of these states has demonstrated the technical capacity and regulatory framework needed to meet federal standards under the Safe Drinking Water Act.

Louisiana's Pause Creates an Opening

Timing matters here. Just weeks before Texas received its approval, Louisiana Governor Jeff Landry issued a moratorium on new CCS applications on October 15, 2025. The state had 33 pending permit applications, each requiring approximately 2,000 hours of review.

Industry groups have expressed concern that Louisiana's pause could push investment toward neighboring states. Will Green, President and CEO of the Louisiana Association of Business and Industry, warned that the momentum Louisiana had built "is no accident" and that the state risked ceding its competitive advantage to Texas.

What Comes Next for Texas

The RRC isn't starting from scratch. The agency has been developing its Class VI program alongside the EPA's Region 6 office since 2021 and recently received a $1.93 million EPA grant to support implementation. In its primacy application, Texas set a target of issuing approximately 25 Class VI permits within the first two years.

Here's the projected timeline for permit review:

1. Six months for permit to drill or convert a well
2. Additional six months to authorize injection
3. Total timeline: roughly 12 months from application to operation

>> In Other News: [x](x)

Economic Upside

The economic case for CCS in Texas is compelling. According to a study by the Texas Association of Business, carbon capture, utilization, and storage projects could add $1.8 billion to the Texas economy and support approximately 7,500 full-time jobs.

With the 45Q tax credit intact following the One Big Beautiful Bill Act signed in July 2025, project developers now have both regulatory clarity and financial incentives to move forward. That combination could make Texas the destination of choice for CCS investment.

A Signal for the Industry

Texas gaining primacy sends a clear message: the CCS industry is maturing, and states are stepping up to lead. With more states in the application pipeline, including Alabama, Colorado, Mississippi, and Utah, the primacy map will keep expanding.

For project developers eyeing Gulf Coast carbon storage opportunities, the shift to state-level oversight means shorter timelines, local expertise, and a clearer path from application to operation. That's what an industry ready to scale needs.