May 6, 2026 - Colorado and Wyoming have signed a new agreement to coordinate permitting for CO2 storage projects that may cross state borders.

The memorandum of understanding (MOU) aims to streamline processes while maintaining environmental and safety standards.

The move comes as carbon capture and storage (CCS) activity expands across the region. Thus, the agreement is designed to improve communication between regulators and reduce uncertainty for developers.

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

Framework for Cross-Border Coordination

The agreement applies to projects located near the Colorado-Wyoming border, including those within one mile of the state line or extending across it.

It covers key aspects such as project review areas, monitoring wells, infrastructure and long-term site management. To support coordination, the MOU introduces a structured process based on early notification and consultation.

Under this approach, the state leading a permit review will inform the neighboring state early in the process and share relevant project details.

This allows both sides to exchange information, assess potential impacts and provide input before decisions are finalized. According to officials, the process is intended to improve oversight while ensuring each state can meet its regulatory responsibilities.

“This new agreement shows the importance of working across state lines as new energy technologies develop,” said Julie Murphy, director of the Colorado Energy and Carbon Management Commission.

The agreement also enables closer technical collaboration between agencies, particularly on groundwater and storage safety.

“This level of coordination is important for managing the complex carbon sequestration process,” said Lily Barkau of the Wyoming Department of Environmental Quality.

Despite the closer cooperation, the MOU does not change the authority of either state. Each will retain full regulatory control while committing to share information and address cross-border considerations. The development highlights the growing need for coordinated approaches as carbon storage projects expand beyond single jurisdictions.