By Jamison Braun | December 11, 2025
The EPA oversees underground fluid injection well permitting through its Underground Injection Control (UIC) program. As carbon capture and storage (CCS) projects take off in the U.S., more states are seeking primary enforcement responsibilities to issue and enforce Class VI injection well permits, known as primacy. State primacy is seen as a method to streamline well permitting and allow for greater local government control. On November 12th, 2025, the EPA announced that it had approved Texas’s Class VI injection well primary enforcement application, joining a cohort of five other states with Class VI primacy: Wyoming, North Dakota, Arizona, Louisiana, and West Virginia. In this Insight, we dive into the process by which states apply for primary enforcement responsibilities, discuss the implications of primacy for the industry through the lens of Texas and Louisiana, and spotlight the expected approval timeline for Class VI permit applications still under EPA administration.
Getting Primacy
Class VI wells are used for the geologic sequestration of anthropogenic CO2. To receive primary enforcement, states must follow a four-phase process outlined by the EPA, shown below. There are currently eight states working through various phases of the approval process; of active applications, Colorado is the sole state that has progressed into Phase III, with all other states working on Pre-Application activities at Phase I. Once primacy is reached, the EPA will hand over any Class VI permit applications currently in review to the state. Of the six states with primacy, three (West Virginia, Arizona, and Texas) were granted primacy in 2025.
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Permit Pause in Louisiana
Among states that have been granted primacy, Texas and Louisiana present two contrasting approaches to the program’s rollout in 2025. Like Texas, Louisiana has garnered attention for CCS projects primarily owing to its siting near major energy corridors and favorable local geology. While Texas begins the process of accepting and reviewing all Class VI permit applications, Louisiana has paused new Class VI application submissions for the near future and is instead focusing on five priority sequestration projects. This pause comes just under two years after receiving primacy in December 2023. Louisiana is currently working through a backlog of 33 Class VI well applications.
In his October 2025 executive order issuing the moratorium, Louisiana Governor Landry stated that the pause will allow for a balanced approach that considers the concerns of citizens, streamlines the permitting process, and ensures environmental due diligence. However, the pause could prove to be untimely. Contrary to most other energy transition technologies, CCS continues to benefit from bipartisan support at the federal level. This, and the fact that the pause has no explicit end date, has raised concerns among industry leaders and investors in the state that capital could be redirected to other states with active and efficient primacy programs.
Texas Chugging Along
While states continue to develop the best approach for their programs, the EPA continues to review and grant Class VI injection applications with a target turnaround of 24 months. Of the 70 Class VI applications currently in review, 18 will be transferred to the Railroad Commission of Texas (RRC), the regulatory body responsible for overseeing Class VI applications in the state. This should go a long way towards increasing the EPA’s permitting efficiency. Notably, the RRC has stated that they anticipate Class VI applications in Texas to be reviewed in just six months, with another six-month waiting period before injection can begin. Other states with multiple sequestration projects, like California, Illinois, and Indiana, have not indicated that they will be pursuing primacy at this time, relying solely on the EPA’s approval process.
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Going forward
As more states apply for and are granted primacy, stakeholders will watch closely to see how state-led programs influence project development, regulatory efficiency, and a broader path to decarbonization in the United States. Louisiana’s decision to pause application processing introduces some uncertainty to the industry even as it attempts to shore up its primacy process. Texas’s one-year turnaround for Class VI applications is ambitious and could signal strength to investors if achieved with regularity. However, states not pursuing primacy could also stand to benefit from permitting efficiency gains as the EPA’s backlog is cleared. Be sure to check back in for more Energy Insights as this industry continues to develop.
This blog post is for informational purposes only. The information contained in this blog post is not legal, tax, or investment advice. FactSet does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.
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