Colorado Takes EPA's Carbon Well Reins – Climate Win?
Published Date: 3/19/2026
Proposed Rule
Summary
Colorado wants to take charge of its own Class VI injection wells, which are used to safely store carbon underground and help fight climate change. If approved, Colorado’s Energy and Carbon Management Commission will handle permits and rules instead of the EPA, except on Indian lands. People can share their thoughts by May 4, 2026, and this change helps Colorado manage its environment better without extra costs.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 0 costs, 3 mixed.
Colorado Takes Over Class VI Permitting
The EPA proposes to approve Colorado's application so the Colorado Energy and Carbon Management Commission (ECMC) would issue and enforce Class VI permits for carbon dioxide geologic sequestration wells located in Colorado, except for wells on Indian lands where the EPA keeps authority. Colorado submitted its application on October 7, 2025, and the EPA is taking comments through May 4, 2026.
No New Paperwork Burden Claimed
The EPA states this approval will not impose an information collection burden under the Paperwork Reduction Act; OMB previously approved the applicable information collections and assigned OMB control number 2040-0042. Reporting and recordkeeping will be based on Colorado's UIC Class VI regulations.
EPA Certifies No Significant Small-Entity Impact
The EPA certifies under the Regulatory Flexibility Act that this approval will not have a significant economic impact on a substantial number of small entities and will not impose burdens because it transfers authority to a State program with substantially the same requirements.
EPA Keeps Authority on Indian Lands
If approved, Colorado's primacy would apply to Class VI wells in the State except for wells located on Indian lands; the EPA will retain primacy for wells on Indian lands. The MOA referenced was signed October 8, 2025.
EPA Oversight and Reporting Requirements
The EPA would continue oversight of Colorado's Class VI program and would require quarterly reports on instances of permittee non-compliance and annual UIC performance reports pursuant to 40 CFR 144.8. The Memorandum of Agreement between EPA Region 8 and ECMC documents coordination commitments.
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Key Dates
Department and Agencies
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