Colorado and Wyoming have signed a memorandum of understanding (MoU) to strengthen coordination on permitting for carbon storage projects that may extend across state boundaries. The agreement comes as both states view carbon storage as one of the tools to help meet rising energy demand while reducing emissions.
The MoU applies to projects near the Colorado-Wyoming border, specifically those located within one mile of the state line or where project activities, including review areas, monitoring wells, facilities, or long-term site care, may cross into the neighbouring state.
Under the agreement, the states will coordinate through two key mechanisms:
- Notification: The state leading the permit review will notify the neighbouring state early in the permitting process, sharing project details, timelines and opportunities for input.
- Consultation: The neighbouring state may request consultations to exchange information, discuss potential impacts, and provide input on monitoring, oversight and regulatory considerations.
According to the two states, the coordinated approach is intended to reduce uncertainty for communities and project developers while maintaining strong environmental protections.
Colorado Governor Jared Polis said: “This MoU brings Wyoming and Colorado together to speed up permitting, support cleaner air, and protect property rights. Colorado is proud to be a leader in protecting our environment for future generations, and this MoU is another example of good work with others to move forward.”
Julie Murphy, Director of the Colorado Energy & Carbon Management Commission, said: “This new agreement shows the importance of working across state lines to make energy more affordable as new energy technologies continue to develop. By coordinating early and sharing information, Colorado and Wyoming can better support communities while ensuring projects meet strong environmental and safety standards.”
Despite the closer cooperation, the agreement does not change the regulatory authority of either state. Colorado and Wyoming will each retain responsibility for permitting and oversight within their own jurisdictions while cooperating on projects with potential cross-border impacts.