Carbon capture and storage (CCS) is rapidly emerging as one of the most consequential areas of energy law and environmental regulation. At its heart sits a technical but critically important regulatory category: the Class VI injection well. These wells are used to inject carbon dioxide into deep rock formations for the purpose of long-term underground storage, making them the cornerstone of any commercial-scale CCS project. For years, permitting authority for Class VI wells located in Texas rested solely with the federal Environmental Protection Agency (EPA), resulting in a process many in the energy industry found slow and uncertain.

That all changed last fall. In November 2025, the State of Texas formally received primary enforcement authority, or “primacy”, for its Class VI Underground Injection Control (UIC) program, granting the Railroad Commission of Texas (RRC) regulatory power over these types of wells and, consequently, the CCS process.

This article examines how Texas achieved this milestone, how the state strategically positioned itself for a seamless transition by accepting applications and fees years in advance, and the status of those permit applications today.

What Is a Class VI Well and Why Does Primacy Matter?

The Safe Drinking Water Act (SDWA), passed in 1974, protects public health by regulating the nation’s public drinking water supply, including both surface and groundwater sources. Among other things, the SDWA requires the EPA to develop minimum requirements for effective UIC programs in order to prevent underground injection of fluids from endangering underground sources of drinking water (USDWs).

The SDWA provides that an applicant seeking primacy for a UIC program must demonstrate that the applicant’s program meets the applicable requirements promulgated by the EPA for protecting USDWs, which means that it must possess jurisdiction over underground injection as well as the administrative, civil, and criminal enforcement authorities required by the EPA’s implementing regulations. When a state achieves primacy, it steps into the EPA’s shoes as the primary permitting and enforcement agent.

On November 12, 2025, the EPA announced a final rule granting the State of Texas primary implementation and authority for Class VI Underground Injection Control. Soon after publication of the final rule, the Texas Railroad Commission (RRC) was officially granted primary enforcement responsibility for the UIC Class VI program. This made Texas the sixth state to receive primacy for its Class VI UIC program from the EPA, following Arizona, West Virginia, Louisiana, Wyoming, and North Dakota.

Why does this matter? Texas’ Class VI UIC primacy solidifies its position as a leader in the development of the CCS industry in the U.S. It is also anticipated to reduce “red tape” and delays associated with federal EPA review, which can take years to complete due to a lengthy application process and a substantial backlog related to the engineering and geologic complexity of Class VI UIC wells and the CCS projects they support.

Texas Gave Itself a Head Start

One of the most noteworthy aspects of Texas’ approach to Class VI primacy was its deliberate strategy of accepting permit applications and collecting fees before it formally received authority from the EPA. This forward-thinking approach ensured that the RRC would not be starting from scratch the day primacy took effect.

Crucially, the Texas Railroad Commission adopted new rules governing carbon capture and sequestration and storage at its August 22, 2023 Open Meeting. These rules went into effect on September 11, 2023 and allowed Texas to begin accepting and reviewing permit applications using the EPA’s Geologic Storage Data Tool, running reviews in parallel with the federal agency. From then until the RRC received Class VI primacy, any applicant for geologic storage of anthropogenic CO₂ unrelated to Enhanced Oil Recovery would need to submit an application to both EPA and the RRC.

This approach paid further dividends. The state began charging companies a $50,000 application fee and a $25,000 permit amendment. Further, until the CCS facility is closed, the adopted rule required operators to pay an annual fee of $50,000 for each year they did not inject. With these funds, the Railroad Commission staffed its Class VI office with four technical reviewers, three engineering specialists, and a geoscientist.

Therefore, from the moment the RRC received primacy, it already had pending permits in hand, the necessary funds to review, and staff prepared to process applications.

Current Projects: A Snapshot of Texas’ Class VI Applications

The most recent RRC tracker for active Class VI well applications (updated March 11, 2026) reflects a diverse set of operators and project types and spans the state from the Permian Basin to the Texas Gulf Coast:

• Oxy Low Carbon Ventures, LLC — Brown Pelican Project, Ector County (Permian Basin): Three injection wells into the Lower San Andres formation, submitted May 23, 2022. This is the earliest submitted application. It was approved by the EPA on October 16, 2025, just before Texas received primacy. The RRC will now oversee regulation of this facility, which is designed to store up to 8.5 million metric tons of carbon over 12 years.
• BP Carbon Solutions, LLC — Jasper County Storage Facility, Jasper County: Four injection wells into the Frio formation, submitted June 29, 2023. Currently on hold by the operator.
• Milestone Carbon Midland CCS Hub, LLC — South Midland Facility, Upton County: One injection well into the Devonian formation, submitted December 6, 2023. The application is currently in the comment period for draft permit, a significant milestone in the permitting process.
• BP Carbon Solutions, LLC — West Bay Storage Facility, Galveston County: Three injection wells into the Miocene formation, submitted December 18, 2023. Currently on hold by the operator.
• White Energy Carbon Solutions, LLC — Texas Carbon Storage I, Deaf Smith County: One injection well into the Granite Wash formation, submitted February 15, 2024. Currently on hold by the operator.
• ExxonMobil Low Carbon Solutions Onshore LLC — Rose CCS, Jefferson County: Three injection wells into the Fleming and Upper Frio formations, submitted March 14, 2024. This application has been protested and was referred to hearing on October 31, 2025. The hearing was held March 16, 2026 through March 20. 2026.
• Titan Carbon Sequestration, LLC (Sempra) — Titan CS, Jefferson County: Two injection wells into the Lower Miocene formation, submitted July 9, 2024. Currently on hold by the operator.
• BKVerde, LLC — Whites Bayou, Liberty County: One injection well into the Frio and Miocene formations, submitted July 19, 2024. Currently pending Request Additional Data (RAD) response.
• Bluebonnet Sequestration Hub, LLC (Oxy) — Bluebonnet, Chambers County: Six injection wells into the Frio and Hackberry formations, submitted August 6, 2024. Currently under review.
• CDP II CO2 Sequestration, LLC — Caliche Beaumont Sequestration, Jefferson County: Three injection wells into the Frio formation, submitted November 13, 2024. Currently pending RAD response.
• Kleberg Sequestration Hub, LLC (Oxy) — South Texas Sequestration (Kleberg Hub), Kleberg County: Six injection wells into the Frio formation, submitted November 19, 2024. Currently under review.
• Bayou Bend CCS LLC (Chevron, Total, Equinor) — Bayou Bend East Phase 1, Jefferson County: Six injection wells into the Lower Miocene 1 & 2 formations, submitted December 31, 2024. Currently pending RAD response.
• ExxonMobil Low Carbon Solutions Onshore LLC — Sunflower, Jefferson, and Liberty Counties: Three injection wells into the Frio and Fleming formations, submitted December 18, 2025. Currently under review.
• Milestone Carbon Delaware CCS Hub, LLC — Central Loving Facility, Loving County: Two injection wells into Devonian, Fusselman, and Ellenburger formations, submitted February 13, 2025. Currently on hold by the operator.
• Sugarberry CCS LLC (Tenaska) — Sugarberry CCS Geologic Storage Facility, Hopkins & Franklin Counties: Five injection wells into Woodbine & Paluxy formations, submitted June 6, 2025. Currently pending RAD response.
• Orchard Storage Company — Orchard, Gaines County: Seven injection wells into the San Andres formation, submitted June 25, 2025. Currently pending RAD response.
• Repsol Earth Solutions USA LLC — Offshore North 1, Aransas County: Four injection wells into Lower Miocene 1 & 2 formations, submitted August 6, 2025. Currently under review.

A closer look at any one of these projects illustrates the scale and ambition of what Texas is attracting. The Orchard Storage project, for instance, will inject approximately 27 million tons of CO₂ over 12 years. This would make it one of the biggest CCS projects in the U.S. once operational.

What Lies Ahead and Takeaways for the Industry

The permit queue already reflects the breadth of industry interest in Texas as a CCS destination. Applications for ten projects with a total of 26 wells were submitted by the time Texas applied for primacy. The RRC anticipated in its primacy application that during the first two years after approval of the state’s Class VI program, permit applications for approximately 37 Class VI wells may be submitted, including applications for 25 Class VI wells in the first year and 12 Class VI wells in the second year. As of March 11, there are now 17 active applications, proving the validity of these predictions. The RRC expects that reviewing Class VI permit applications will require six months before issuance of a permit to drill/convert and six additional months before issuance of authorization to inject, assuming operators timely and accurately file all required information.

Unlike similar agencies in other states, the RRC is uniquely positioned to follow through on this ambitious timeline so early in the stages of primacy, as it can leverage its extensive experience in permitting other wells (including all other types of UIC wells) and its established Class VI review process. Through years of deliberate preparation, the Railroad Commission of Texas is now able to hit the ground running with its grant of Class VI primacy. With over a dozen applications already in hand and additional projects in the pipeline, Texas is set to become one of the nation’s leading jurisdictions for commercial-scale geological carbon sequestration.