What EPA’s carbon capture and storage permitting announcement means for Texas

The EPA has granted Texas authority (“primacy”) to permit Class VI wells used for carbon capture and storage (CCS). Instead of waiting for federal approval, CCS developers can now obtain permits directly from the Texas Railroad Commission, which must follow the same safety and environmental standards as the EPA. Texas plays a central role in U.S. energy production and industrial output. Because of significant permitting delays at the federal level—some stretching beyond two years—private investment in CCS has been stalled. With state-level permitting, projects should move more quickly, enabling faster deployment of CCS technologies. Texas is especially well-positioned for CCS due to strong geology for CO₂ storage, extensive energy infrastructure, and a skilled workforce. The move is expected to help reduce emissions from energy-intensive industries while keeping them competitive globally. Studies show CCS’ risks are low and manageable with existing regulations. The rule becomes effective 30 days after publication, after which Texas will fully manage permitting and oversight of CCS wells. Affect to U.S manufacturers: Faster CCS approvals → quicker project timelines. Lower CCS project costs → cheaper decarbonization. Easier access to 45Q credits → better economics. More reliable Texas energy supply → stable operations. Lower emissions for hard-to-abate sectors → regulatory compliance. Stronger competitiveness vs. global producers → cost advantage. Improved supply-chain emissions → better ESG performance. More incentive to locate in Texas → expansion benefits.