The U.S. Environmental Protection Agency (EPA) on Nov. 12, 2025, announced a final rule granting the State of Texas primary implementation and enforcement authority (also known as primacy) for Class VI Underground Injection Control (UIC) wells when EPA Administrator Lee Zeldin signed the pre-publication version of the final rule on behalf of the agency.
This important decision supports cooperative federalism goals by transferring the sole authority for permitting wells used for geologic carbon dioxide (CO2) sequestration from the EPA to the Railroad Commission of Texas (RRC). Primacy is viewed as a critical step toward streamlining and significantly accelerating the permitting process for carbon capture and storage (CCS) projects across the state. Texas is now the sixth state to receive primacy for its Class VI UIC program from EPA, joining Arizona, West Virginia, Louisiana, Wyoming and North Dakota. The final rule will become effective 30 days after publication in the Federal Register, which is expected at any time.
As analyzed in Holland & Knight's previous alert, "The Path to Class VI Primacy in Texas: MOA Reveals State and Federal Review," the EPA and RRC established a memorandum of agreement detailing how application reviews would be coordinated during the transition, as well as how EPA will provide oversight to the RRC. The EPA will conduct regular reviews of the RRC's Class VI UIC program to ensure that it is effective and continues to meet or exceed federal standards. Accordingly, the EPA will maintain a seat beside the RRC in a role of programmatic review.
Texas' Class VI UIC primacy solidifies its position as a leader for the development of the CCS industry in the U.S. This grant of primacy to the RRC is anticipated to reduce "red tape" and delays associated with federal EPA review, which can take years to complete following an already lengthy application process due to the engineering and geologic complexity of Class VI UIC wells and the CCS projects they support.
Unlike other similar agencies in other states, the RRC seems uniquely well positioned to follow through on this promise, as it can leverage its extensive experience in permitting other wells (including all types of UIC wells) and deep staff experience to provide a more efficient and predictable regulatory framework. As of Nov. 12, 2025, the RRC has 18 applicants currently under review and anticipates additional applications in the coming weeks. In its accompanying press release, the RRC remains laser focused in support its new Class VI UIC program, noting that primacy will "provide certainty for energy companies looking to invest in CCS development."
Next Steps
For energy companies and investors in the CCS space, this development presents a significant opportunity, given Texas' favorable geologic conditions. If CCS projects can be supported by a streamlined and predictable permitting timeline, project risk can be reduced, thereby supporting viability. Companies now have multiple opportunities to ensure that these new primacy considerations are embedded into and support their CCS projects in Texas. Those planning projects should consider engaging with counsel to understand the nuances of the new RRC-specific requirements, as well as help navigate any subsequent challenges to the Texas primacy rule. Similarly, those already holding federal Class VI UIC permits should consider risks and opportunities associated with the process of transfer from EPA to RRC jurisdiction.
In addition, companies should consider the benefits of engaging in the RRC's process at the earliest feasible date to ensure that permit applications receive the most favorable slot in the queue for RRC review. With the regulatory landscape for Class VI UIC in Texas firming up, the implementation of commercial-scale CO2 storage in the state is expected to accelerate.
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