Texas Railroad Commission has officially gained authority to issue Class VI permits, allowing energy companies to inject and store carbon dioxide (CO2) underground — a power previously held exclusively by the federal Environmental Protection Agency (EPA). The EPA approved the transfer last November after two years of Texas’ application process, making it the sixth state granted this “primacy” authority.
Class VI permits enable companies to capture CO2, typically from large industrial sources like power plants or steel factories, and permanently store it in deep underground rock formations. The technology, including specialized direct air capture, aims to reduce greenhouse gas emissions and combat climate change, though its environmental benefits remain debated.
The Texas Railroad Commission has set up a dedicated office for Class VI permitting, staffed with four technical reviewers, three engineering specialists, and a geoscientist. Funding comes from a $1.9 million federal grant over five years, supplemented by state funds. Companies pay a $50,000 application fee, $25,000 for permit amendments, and $50,000 annually until the facility closes, ensuring financial responsibility over the lifetime of their injection wells.
Since the program’s inception, 18 applications have been received. The first, submitted by Oxy Low Carbon Ventures, was approved in coordination with the EPA. Their Odessa-area project is expected to store up to 8.5 million metric tons of CO2 over 12 years.
The state hopes that transferring permitting authority from federal to state regulators will streamline the application process for Texas companies, while maintaining strict oversight to protect underground drinking water sources under the Safe Drinking Water Act.