Advancing energy competitiveness within Texas and our region is a top priority of the Partnership. Key to those efforts is supporting policies that will help Texas maintain its competitive advantage within the global energy transition to a low-carbon future. The use of carbon capture, use and storage (CCUS), is recognized as one of the most significant components of the transition; however, there are some obstacles that need to be overcome to accelerate its implementation in Texas.

In working with our members and other stakeholders in the region, it's become clear that one of the primary obstacles that can and must be addressed this session, and has broad agreement, is the clarification of which state agency has regulatory authority over long-term underground storage of captured carbon, also called geologic sequestration, through injection wells classified as Class VI injection wells.

Currently, state regulatory authority over sequestration wells is split between the Railroad Commission (RRC) and The Texas Commission on Environmental Quality (TCEQ), and primary jurisdiction lies with the Environmental Protection Agency (EPA). With all these agencies to work with, obtaining approval for a Class VI well can be a long and cumbersome process, thus significantly delaying CCUS development and implementation in the state. The state can seek primary jurisdiction over Class VI wells, known as “primacy,” which would significantly speed up the process, but obtaining primacy from the EPA can take years or may not happen at all if it is not clear which state agency would be the clear regulating authority.

North Dakota and Wyoming are the only two states that have Class VI primacy, and Louisiana is currently seeking it. To stay competitive, Texas must also start on the path to primacy. Legislation that would clarify a sole regulatory authority over Class VI injection wells and direct that agency to seek primacy under this new authority is needed.

Industry and environmental groups have come together to support important legislation that would clarify that the sole regulator of Class VI injection wells be the Railroad Commission, which already regulates other classes of injection wells. The Partnership strongly supports this effort, particularly recognizing our region's massive geologic storage potential, which would enable us to be a national leader in the development and implementation of Class VI injection sites. This competitive advantage can drive our position as a leader in CCUS development and the overall energy transition.    

Sign-up to receive Legislative and other Public Policy updates directly to your inbox.