Three States Just Took Control of CCS Permitting. Here's What It Means.

Something significant happened in 2025 that could reshape America's carbon capture landscape for years to come. Three states, Texas, Arizona, and West Virginia, all received EPA approval to manage their own Class VI well permitting within a single year. This marks a tipping point where state-led oversight of carbon dioxide storage is becoming the new normal.

The shift matters because federal permitting has created massive bottlenecks. With 239 Class VI well applications sitting in EPA's queue, developers have waited years for approvals that states can now process in months. For an industry racing to meet decarbonization targets, this acceleration could unlock billions in investment.

RELATED: Texas bypasses EPA, unlocks billion-dollar CCS rush

The 2025 Primacy Timeline

The year began with West Virginia securing Class VI primacy in February. EPA Administrator Lee Zeldin signed the final rule during a ceremony alongside Interior Secretary Doug Burgum, marking the agency's commitment to what it calls "cooperative federalism."

Arizona followed in September, becoming the fifth state to gain this authority. Unlike other primacy states, Arizona had no pending Class VI applications at EPA when it received approval. This positions the state to attract new carbon capture projects from the ground up.

Texas completed the trifecta on November 12, 2025. The Railroad Commission of Texas (RRC) now has authority over Class VI wells statewide, effective December 15, 2025. This single approval removed 64 permit applications from EPA's backlog, representing more than a quarter of all pending reviews.

Why State Control Changes the Game

The speed difference between federal and state permitting is striking. When Wyoming issued its first three Class VI permits after gaining primacy, the entire review process took just 10 months. Compare that to EPA's typical timeline of three to six years, and the advantage becomes clear.

State regulators bring something federal agencies cannot: deep familiarity with local geology and existing oil and gas infrastructure. Texas, for instance, has overseen underground injection programs since 1983. That four decades of experience translates directly to more efficient Class VI reviews.

What This Means for CCS Investment

The financial implications are substantial. The federal 45Q tax credit offers up to $85 per metric ton of CO2 permanently stored. But developers can only claim these credits once their wells are permitted and operational. Every year spent waiting in EPA's queue represents millions in delayed revenue.

Texas alone hosts more than 270 announced carbon capture projects representing $77.5 billion in capital investment nationwide. The RRC has already received 18 Class VI applications and expects more in the coming weeks. With primacy in hand, the state is targeting 25 permit approvals within its first two years.

This creates a competitive dynamic among states. Those with primacy, like Texas and Wyoming, can offer developers faster timelines and regulatory certainty. States without it may find themselves at a disadvantage when competing for carbon management investment.

The Pipeline Keeps Growing

More states are lining up to follow. Colorado appears next in line for EPA approval. Alabama, Alaska, Mississippi, Nebraska, Nevada, New Mexico, Oklahoma, and Utah are all in various stages of the pre-application process. The trend toward state-led carbon storage oversight shows no signs of slowing.

The administration has framed these approvals as advancing "cooperative federalism." States demonstrate they have regulations at least as stringent as federal standards, then assume permitting authority while EPA retains oversight. This model has worked well for other underground injection well classes for decades.

Texas Leads, Others Watch

All eyes are now on Texas to see how its program performs. The state has signaled an aggressive posture, with plans to begin issuing permits quickly. The RRC has been developing its Class VI program alongside EPA Region 6 since 2021, giving staff a running start.

Major players are already positioning themselves. Occidental Petroleum and its subsidiary 1PointFive recently secured the first EPA Class VI permits for a direct air capture facility in Texas. With state primacy now in effect, future projects can go directly through the RRC.

The contrast with Louisiana is notable. That state, which gained primacy in 2023, recently announced a temporary moratorium on new Class VI permit reviews while it reevaluates its process. Texas appears determined to avoid similar delays, positioning itself as the go-to destination for carbon storage development.

The Road Ahead

The 2025 primacy wave represents a structural shift in how America will manage carbon storage. States that build permitting capacity now will attract early CCS investment and the infrastructure that follows. Those that wait may find themselves playing catch-up in an increasingly competitive market.

For developers, the message is clear: geography matters more than ever. Primacy states offer faster timelines, local expertise, and regulatory certainty. As more states join the primacy club, the national CCS buildout could accelerate dramatically.

The infrastructure to capture and store carbon at scale is finally becoming reality. And increasingly, that infrastructure will be permitted not in Washington, but in state capitals across America.