Colorado granted Class VI primacy for carbon sequestration wells

On October 13, 2026, the U.S. Environmental Protection Agency (EPA) granted Colorado permitting authority over Class VI injection wells, which store carbon dioxide underground. Starting on November 12, the Colorado Energy and Carbon Management Commission (ECMC) will be the primary permitting authority for these wells except on tribal lands, where EPA will remain in charge. Colorado joins six other states that permit their own injection wells for carbon sequestration: North Dakota, Wyoming, Louisiana, West Virginia, Arizona, and Texas.

Injection wells put fluids into geologic formations for disposal, storage, or oil, gas, and mineral recovery. Colorado has been in charge of permitting Class II oil and gas injection wells since 1984, but Class VI wells are intended to sequester carbon dioxide deep underground for long-term storage. EPA designated a new category for sequestration wells in 2010 in part because carbon dioxide can become corrosive in water. Operators are required to monitor sites “for at least 50 years” after injection stops unless otherwise allowed, and property deeds must reflect sequestration “in perpetuity.”

Moving permitting decisions from federal regulators to state decisionmakers is a good thing for federalism. North Dakota got primacy over Class VI permits in 2018 and has since issued eight Class VI injection well permits and nine carbon storage facility permits. EPA only has eight projects totaling 13 wells with active permits and a long backlog that spurred more states to seek primacy in the first place.

To gain primacy over Class VI wells, Colorado had to demonstrate that it would hold standards at least as stringent as EPA’s. Colorado currently does not have any operating Class VI injection projects. Only one permit, to an ethanol plant near Windsor, and a second, early-stage application, will be transferred to Colorado after November 12.

While EPA only requires states to match its standards, ECMC will be stricter than EPA — but that isn’t a surprise. Like oil and gas wells in Colorado, ECMC will require Class VI wells to be at least 2,000 feet away from residences, schools, and commercial buildings. The applications will also require a “Commission-approved development plan, surface-location review under SB19-181,” and more. SB19-181 is the same law that redefined the mission of the state oil and gas commission from fostering oil and gas development to regulating it. And ECMC writes that “Colorado prioritizes Environmental Justice,” which will mean that proposed wells will be denied “if there are net negative impacts on disproportionately impacted communities.”

Colorado’s rules will reflect Colorado’s priorities, and carbon storage in pursuit of net-zero emissions is one of them. Colorado’s Class VI injection well program will be a test: if Colorado can’t approve Class VI permits in a timely manner, then its permitting system slows even the projects its own climate goals rely on. But if carbon storage projects move through permitting quickly, while oil and gas permits keep stalling, then it’s more likely that ECMC takes its mission to “regulate” oil and gas to the extreme.