Geologic Carbon Storage (CCS)

In 2023, Senate Bills 23-285 and 23-016 expanded the regulatory authority of the Energy and Carbon Management Commission (ECMC) to include Class VI Underground Injection Control (UIC) wells. These wells are used exclusively for geologic carbon sequestration. The new laws enabled ECMC to pursue regulatory primacy for Class VI wells from the U.S. Environmental Protection Agency (EPA). They also established comprehensive permitting, siting, and community engagement requirements, including financial assurance, cumulative impact analysis, surface owner consent, and protections for Disproportionately Impacted (DI) Communities.

In 2024, House Bill 24-1346 further expanded ECMC’s jurisdiction by clarifying its authority over geologic storage operations and confirming that geologic storage resources (the underground pore space used for carbon sequestration) are owned by surface owners. The law also established a mechanism for forming geologic storage units. Building on these legislative foundations, ECMC has taken significant steps toward implementing a safe and effective Class VI program. Through 2024, ECMC was focused on building its Class VI regulations through thorough stakeholding efforts and community engagement. These and other efforts culminated in the adoption of Colorado’s Class VI UIC rules on December 16, 2024. The new rules meet or exceed federal standards and reflect Colorado’s values of public health, safety, welfare, environmental stewardship, and wildlife protection.

ECMC submitted Colorado’s Class VI primacy application to the EPA in the spring of 2025 and expects a final decision in early 2026. Once approved, Colorado will have the authority to permit and regulate Class VI wells directly. These developments position Colorado as a national leader in carbon storage regulation. They also ensure projects are carried out in a manner that protects Colorado’s people, land, water, and wildlife.

Geologic carbon sequestration (CCS) is the process of converting CO₂ into a liquid and injecting it into underground geologic formations to be stored indefinitely. The best formations for storage are saline aquifers and depleted oil and gas reservoirs. The process of CCS is generally divided into three parts:

Capture Carbon dioxide gas is collected from an existing facility’s flue gas emissions or directly removed from the atmosphere (Direct Air Capture/DAC). The captured carbon dioxide is then compressed for transportation and/or storage.
Transport: Unless the storage facility is co-located with the source, the carbon dioxide will need to be transported by pipeline to a suitable storage site.
Storage: The captured carbon dioxide is injected and stored permanently in deep underground rock formations, preventing it from entering the atmosphere and contributing to climate change.

Senate Bill 2023-016 directed ECMC to seek Class VI primacy. On May 2, 2025, the state of Colorado submitted its primacy application to the federal government. The Commission adopted rulemaking in December 2024 that made possible the application.

To date, there are no Class VI injection projects in operation in Colorado, though there are two Class VI UIC well permits that have been submitted to the EPA, and several feasibility projects already underway. According to the federal government, there are nearly 20 active Class VI projects and another 250 in development in America. Three states have obtained primacy to regulate Class VI UIC injection wells from EPA: North Dakota, Wyoming, and Louisiana.

For a more detailed look at how CCS works, please see our report: Carbon Capture and Storage: Safety and Impact Considerations from Source to Sequestration

2021