Governor Polis Announces Colorado Will Lead Streamlining Regulation of Geologic Carbon Storage

DENVER - Today, Governor Jared Polis announced that the U.S. Environmental Protection Agency has approved Colorado's application to be the primary regulator for underground carbon storage, known as primacy, through the federal Underground Injection Control Class VI program.

The approval allows the Colorado Energy and Carbon Management Commission (ECMC) to oversee the permitting, operation, monitoring and closure of wells used to permanently store carbon dioxide in deep underground rock formations. The initiative will protect underground sources of drinking water while providing a clear and efficient state-led regulatory process for responsible carbon-management projects.

"Colorado leads the nation in developing innovative solutions that strengthen our economy and create good-paying jobs while ensuring our environment is protected ," said Governor Jared Polis. "Having Class VI oversight in Colorado will allow fast decisions about permitting underground carbon storage to be made by Colorado experts who understand our geology, communities and environment. This milestone will create new investments that remove carbon emissions from our air while protecting public health and Colorado's waterways."

Class VI wells are specifically designed and regulated for permanent underground storage, also known as geologic sequestration, of carbon dioxide. Carbon dioxide is injected into suitable rock formations thousands of feet below the surface and beneath impermeable rock layers that contain it. Class VI requirements include detailed site characterization, robust construction and mechanical-integrity standards, groundwater protection, ongoing monitoring, financial assurance, emergency planning and post-injection site care.

"Achieving Class VI primacy is an important addition to Colorado's comprehensive approach to reduce greenhouse gas emissions while managing and protecting its natural resources," said Colorado Department of Natural Resources Executive Director Dan Gibbs. "Colorado has the scientific expertise, regulatory experience and commitment to public engagement needed to oversee these technically complex projects. I appreciate the extensive work by ECMC staff and our federal partners to build a program that is protective, transparent and responsive to Colorado communities."

Colorado submitted its full primacy application to EPA on October 7, 2025. EPA reviewed the state's statutes, regulations, technical standards, staffing, enforcement authorities and public-participation procedures before approving the request. EPA published its proposed approval on March 19, 2026, and accepted public comments before issuing the final rule on October 13, 2026.

The Colorado General Assembly authorized ECMC to seek Class VI primacy in 2023. Since then, the agency has developed regulations, technical guidance, procedures to review well applications and plans for public-engagement to prepare for implementation. ECMC will coordinate with other state agencies, local governments, Tribal governments, communities and EPA as projects move through the regulatory process.

"This milestone reflects years of focused work by ECMC staff to build a rigorous and durable regulatory structure," said ECMC Director Jennifer Walker Graf. "Our team is prepared to evaluate each proposal based on its geology, engineering, potential impacts and ability to protect people and the environment throughout the full life of the project. We will provide communities with clear information and meaningful opportunities to participate as Class VI applications are reviewed."

Under primacy, ECMC will:

• Review Class VI permit applications and supporting technical information;
• Evaluate proposed storage formations, confining zones and potential pathways for carbon dioxide movement; Establish operating, monitoring, testing and reporting requirements;
• Protect underground sources of drinking water; Require financial assurance for corrective action, well plugging and post-injection site care;
• Inspect facilities and enforce program requirements; and
• Provide public notice and opportunities for community participation in permitting decisions.

EPA will continue to provide federal oversight of the state program under the Safe Drinking Water Act. EPA also maintains certain authorities, including responsibilities related to Class VI activities on Tribal lands.

The final rule will become effective on November 12, 2026. Beginning on that date, ECMC will serve as the primary permitting and enforcement authority for Class VI wells within the scope of Colorado's approved program. ECMC and EPA will coordinate the transition of pending and future applications in accordance with the final rule and program agreements.

Additional information about Colorado's Class VI program, the permitting process and opportunities for public participation is available on the ECMC website. In addition to Colorado's robust Class VI regulatory requirements, the State's Geologic Storage Stewardship Enterprise, authorized by HB25-1165, funds the long-term stewardship of geologic storage facilities through fees paid by the injection well operator associated with each facility.

About the Colorado Energy and Carbon Management Commission

The Colorado Energy and Carbon Management Commission regulates the development and production of Colorado's oil and gas, deep geothermal resources, the geologic sequestration of carbon dioxide, and natural gas storage in a manner that protects public health, safety, welfare, the environment and wildlife resources. ECMC is a division of the Colorado Department of Natural Resources.

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