EPA Proposes Granting Texas Primacy for Class VI Wells

Latham & Watkins LLP

The proposal could accelerate the permitting process for carbon capture and storage projects in the state.

On June 9, 2025, the US Environmental Protection Agency (EPA) signed a proposed rule that, if approved, would grant Texas primary enforcement authority, or primacy, for permitting Class VI Underground Injection Control (UIC) wells under the Safe Drinking Water Act (SDWA). This significant regulatory change could expedite permitting for carbon capture and storage (CCS) projects in the state.

Four states — Louisiana, North Dakota, West Virginia, and Wyoming — have received Class VI primacy to date. Most recently, EPA proposed granting Arizona primacy for all well classes, with a final rule anticipated after the public comment period ends on July 3, 2025.

Proposed Rule: Class VI Primacy for Texas

The SDWA covers six classes of injection wells, each designed for specific purposes: Class I for deep waste disposal; Class II for oil and gas production fluids (commonly known as Enhanced Oil Recovery or EOR); Class III for mineral extraction; Class IV for hazardous waste in groundwater cleanup; Class V for non-hazardous fluid disposal; and Class VI for carbon dioxide storage. The Texas Commission on Environmental Quality already has primacy over Class I, III, IV, and V wells. The Texas Railroad Commission (TRC) — the state agency with jurisdiction over the oil, gas, and pipeline industry — has Class II primacy.

If the proposed rule is approved, the TRC would be the state agency charged with permitting Class VI carbon storage injection wells under the SDWA. Texas’s petition for Class VI primacy follows an April 29, 2025, memorandum of agreement (MOA) between the TRC and EPA, which outlines the state’s plans for administering its Class VI well programs. Following a review of the state’s program, EPA determined that Texas’s Class VI program meets all requirements for approval, ensuring consistent implementation and enforcement under the SDWA.

Texas officials expressed support for the proposed rule, touting the potential for primacy to create greater efficiency when permitting and deploying Class VI wells in the state.

EPA is inviting public comments on the proposed rule within 45 days after it is published in the Federal Register and will hold a public hearing on July 24, 2025. Interested stakeholders can take advantage of these opportunities to interact with regulators and express concerns or support for the rule.

A Broader Trend: Other States Pursuing Primacy

Earlier this year, EPA approved Class VI primacy for West Virginia. Several states — including Alaska, Alabama, Colorado, Mississippi, Nebraska, and Utah — are actively pursuing Class VI primacy or revising existing Class VI programs. Additionally, as noted above, EPA’s proposed rule granting Arizona primacy is under consideration and subject to public comment until July 3, 2025.

These efforts reflect a growing recognition of the importance of state-level management in advancing CCS projects. By obtaining primacy, states can tailor regulatory frameworks to their specific needs, potentially leading to more effective and efficient project permitting, project implementation, and emissions reductions.

We will continue to monitor developments in this area.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Latham & Watkins LLP 2025

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