Tackling emissions from sectors that are hard to decarbonize—like heavy industry and manufacturing—is one of the biggest challenges to accelerating decarbonization. That’s why it’s a core part of GPI’s strategy. Central to this work is collaborating with partners across the country to ensure the right tools and technologies, including carbon management solutions, can be deployed responsibly, equitably, and at scale.
Colorado is one state continuing to grow in this area, making significant strides in its most recent legislative session. On May 27, Colorado Governor Jared Polis signed House Bill 25-1165 into law at Colorado College. The legislation, part of a broader bill signing tour, underscores the state’s growing leadership in carbon management.
Colorado moves carbon management forward with new legislation
HB25-1165 establishes the geologic storage stewardship enterprise cash fund, which will support the long-term stewardship of carbon dioxide (CO₂) storage facilities across Colorado. This fund, which is paid for by operators through fees, ensures the state is prepared to undertake long-term stewardship of the storage facility, ensuring that projects protect communities and the environment while providing long-term regulatory certainty to developers.
The bill also stipulates that Colorado assumes ownership and long-term stewardship of a CO₂ storage site, including monitoring and site management, releasing the operator from regulatory liability except in cases of misconduct, material misrepresentation, or environmental harm.
The bill follows the publication of the Colorado Carbon Management Roadmap, which the state released in early 2025. The roadmap lays out a comprehensive strategy for enabling responsible carbon management across sectors in Colorado, including near-term policy opportunities and longer-term regulatory needs. Many of the priorities identified, such as regulatory clarity, long-term risk management, and workforce development, are reflected in HB25-1165 and broader state legislative activity.
State leadership matters now more than ever
As federal carbon management and clean energy funding faces increasing uncertainty, such as the recent cancellation of over $3.7 billion in the US Department of Energy’s Office of Clean Energy Demonstrations funding, states have a critical role to play in sustaining momentum. By building clear regulatory frameworks and exploring supportive incentive structures, state governments can help ensure that carbon management projects advance in a way that delivers both environmental and economic value.
Colorado is not alone in this work. In 2025, 32 states introduced carbon management-related legislation, with 30 new laws enacted across 13 of those states. These efforts address vital topics like pore space ownership, permitting authority for CO₂ injection wells, CO₂ transport infrastructure, and public safety standards. Follow ongoing and upcoming carbon management and industrial decarbonization in states’ 2025 legislative sessions in GPI’s 2025 State Legislative Tracker.
Looking ahead
Carbon management technologies are an essential and complementary tool for achieving midcentury decarbonization goals in emissions-intensive sectors like manufacturing, power, and industry. States like Colorado are leading by example, demonstrating how forward-looking policy can drive innovation, protect communities, and deliver on climate and economic goals at the same time.
To learn more about how long-term liability is addressed in carbon management projects, check out our issue brief: Approaches to Long-Term Liability of Class VI Injection Wells. To explore how states can chart a thoughtful path forward, see the Colorado Carbon Management Roadmap.
