The approval makes Texas the sixth state to have ‘primacy’ over Class VI wells used to move CO2 into deep underground rock formations for permanent storage. It joins North Dakota, Wyoming, Louisiana, West Virginia, and Arizona.
Texas sought primacy to regulate CO2 in December 2022, citing the need to streamline regulatory review to accelerate the permitting process. Currently, companies must work with both EPA and state regulations. By giving the Texas Railroad Commission, the state’s oil and gas regulatory agency, the lead role, the state hopes for quicker project approvals and growing investment in the CO2-injection industry.
“Today’s approval is a watershed moment that launches the next chapter of Texas energy leadership,” said Texas Oil & Gas Association (TXOGA) president Todd Staples in a release.
TXOGA said the decision gives investors more regulatory certainty “to unlock significant private investment, accelerate planned projects, and create a new wave of skilled jobs and innovation across the Texas economy.”