Colorado Governor Jared Polis announced a memorandum of understanding with Wyoming on Monday, May 4, to coordinate state permitting for carbon storage projects that may cross the two states’ shared border.

The agreement, signed by the Colorado Energy and Carbon Management Commission and the Wyoming Department of Environmental Quality, applies to carbon sequestration projects within one mile of the state line or whose review areas, monitoring wells, facilities or long-term site care activities may cross it.

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“This MOU brings Wyoming and Colorado together to speed up permitting, support cleaner air, and protect property rights,” Polis said. “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.”

Under the MOU, the state leading a permit review will notify the neighboring state early in the process, sharing project details, timelines and opportunities for input. The neighboring state may then request a consultation to exchange information, discuss potential impacts and provide input.

“This new agreement shows the importance of working across state lines to make energy more affordable as new energy technologies continue to develop,” said Julie Murphy, director of the Energy and Carbon Management Commission. “By coordinating early and sharing information, Colorado and Wyoming can better support communities while ensuring projects meet strong environmental and safety standards.”

Lily Barkau, groundwater section manager at the Wyoming Department of Environmental Quality, said the technical exchange between agencies is a key benefit of the agreement.

“This MOU allows our groundwater experts to engage in meaningful dialogue with our counterparts in Colorado long before a permit is finalized,” Barkau said. “This level of coordination is important for managing the complex carbon sequestration process and ensures we are identifying and mitigating risks using the best available data from both states.”

The agreement does not alter or limit either state’s regulatory authority. Each agency keeps its full responsibility while committing to share information and address cross-border considerations in good faith.

Carbon sequestration involves capturing carbon dioxide from industrial sources or the atmosphere and injecting it deep underground for long-term storage. Projects are regulated to protect groundwater, public safety and surface property rights. Activity in the region has expanded as states and industries seek tools to reduce greenhouse gas emissions.

The Mountain West has emerged as a hub for carbon storage projects since the country’s first commercial underground carbon storage facility came online in North Dakota.

The Energy and Carbon Management Commission regulates oil and gas development, deep geothermal resources, geologic storage of captured carbon and the underground storage of natural gas in Colorado.