Is Texas About to Pass up Louisiana...Again?

The recent announcement by the EPA granting Texas “primacy” in carbon capture and sequestration (CCS) marks a significant shift in the competitive landscape. Tommy Faucheux of the Louisiana Mid-Continent Oil and Gas Association explains that Louisiana had enjoyed a two-year advantage since receiving primacy in 2023, which allowed the state to permit CCS wells directly. This authority attracted nearly $70 billion in investment from companies like Hyundai Steel and Meta, spurring low-carbon manufacturing and data center projects. With Texas now granted the same authority, Louisiana faces direct competition for future projects and must accelerate its permitting process to remain competitive.Primacy specifically refers to Class VI wells, which are designed for carbon sequestration. These wells store CO₂ one to two miles underground beneath thick layers of cap rock, ensuring safe, permanent containment. The EPA only grants primacy when a state demonstrates the processes and enforcement capabilities to regulate CCS safely. Despite this, Louisiana has issued only one Class VI permit in two years, and a recent moratorium on new permit reviews has slowed progress further. Meanwhile, Texas has already begun issuing permits, raising concerns that Louisiana could lose its edge.Faucheux notes that opposition to CCS in Louisiana largely stems from anti-oil and gas activists who frame the practice as unsafe. However, studies by LSU, UL, and other institutions show the geology of Louisiana is well-suited for permanent CO₂ storage. Misconceptions, such as fears of explosions, are unfounded since CO₂ is non-flammable. He emphasizes that CCS is vital for Louisiana’s economy, which relies on oil and gas for one-quarter of its output, and that rejecting CCS risks forfeiting economic growth. To stay ahead, Louisiana must provide regulatory certainty, streamline permitting, and balance community concerns with pro-business principles to attract continued investment.