Colorado Now Boss of Underground CO2 Vaults—Climate Handover
Published Date: 10/13/2026
Rule
Summary
Colorado is now in charge of safely managing special wells that store carbon underground to help fight climate change. Starting November 12, 2026, the Colorado Energy and Carbon Management Commission will issue and enforce permits for these wells, while the EPA keeps control over wells on Indian lands. This change means faster, local decisions without extra costs for businesses or the public.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Colorado Takes Over Class VI Permits
Starting November 12, 2026, the Colorado Energy and Carbon Management Commission (ECMC) will issue and enforce Underground Injection Control (UIC) Class VI permits for geologic carbon dioxide sequestration wells in Colorado. The EPA will no longer issue those Class VI permits in the State (except for wells on Indian lands).
EPA Keeps Authority on Indian Lands
The EPA will remain the permitting authority for all Class VI injection wells located on Indian lands within Colorado. The Southern Ute Indian Tribe commented on the need to clarify the definition of "Indian lands," and the rule notes that ECMC rules will not apply to Class VI wells on reservation surface lands.
EPA Oversight and Reporting Requirements
The EPA will oversee Colorado's Class VI program and will require the State to submit quarterly reports on instances of permittee non-compliance and annual UIC performance reports under 40 CFR 144.8. The oversight is formalized in a Memorandum of Agreement between EPA Region 8 and ECMC.
State Rules Incorporated and Enforceable by EPA
The rule incorporates by reference Colorado statutes and regulations for Class VI wells (compilation dated January 8, 2026) and makes those provisions part of 40 CFR. Any provisions incorporated by reference and permit conditions issued under them are enforceable by the EPA under SDWA section 1423 and 40 CFR 147.1(e).
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