Second Regular Session Seventy-third General Assembly STATE OF COLORADO INTRODUCED LLS NO. 22-0306.01 Sarah Lozano x3858 HOUSE BILL 22-1348 House Committees Senate Committees Energy & Environment A BILL FOR AN ACT C ONCERNING ENHANCED OVERSIGHT OF THE CHEMICALS USED IN OIL101 AND GAS PRODUCTION .102 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill establishes a regulatory scheme that requires disclosure of certain chemical information for products used in downhole oil and gas operations (chemical disclosure information). On or before July 31, 2023, the oil and gas conservation commission (commission) is required to utilize or develop a chemical disclosure website to collect and share certain chemical disclosure information to the public (chemical disclosure HOUSE SPONSORSHIP Froelich and Caraveo, Amabile, Bacon, Bernett, Cutter, Duran, Gray, Hooton, Jodeh, Kennedy, Kipp, Lindsay, Lontine, Sirota SENATE SPONSORSHIP Winter, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. website). On and after July 31, 2023, a manufacturer that sells or distributes a chemical product for use in underground oil and gas operations (downhole operations) in the state must disclose to the commission: ! The trade name of the chemical product; ! A list of the names of each chemical used in the chemical product; ! The estimated amount of each chemical used in the chemical product; and ! A description of the intended purpose of the chemical used in the chemical product. The manufacturer must also provide the commission with a declaration that the chemical product contains no intentionally added perfluoroalkyl or polyfluoroalkyl chemicals. For manufacturers that were already selling or distributing a chemical product for use in downhole operations in the state before July 31, 2023, the disclosure and declaration must be made at least 30 days before July 31, 2023. For manufacturers that begin to sell or distribute a chemical product for use in downhole operations in the state on or after July 31, 2023, the disclosure and declaration must be made at least 30 days before the manufacturer begins selling or distributing the chemical product. On and after July 31, 2023, an operator of downhole operations using a chemical product must disclose to the commission: ! The date of commencement of downhole operations; ! The county of the well site where downhole operations are being conducted; ! The numerical identifier assigned by the American Petroleum Institute to the well where downhole operations are being conducted; and ! The trade names and quantities of any chemical products the operator plans to use in downhole operations. The operator must also provide the commission with a declaration that the chemical product contains no intentionally added perfluoroalkyl or polyfluoroalkyl chemicals. For downhole operations that commenced before July 31, 2023, and that will be ongoing on July 31, 2023, the disclosure and declaration must be made at least 75 days before July 31, 2023. For downhole operations that commence on or after July 31, 2023, the disclosure and declaration must be made at least 75 days before commencement of downhole operations. The commission will use the chemical disclosure information to create a chemical disclosure list for each well site, which will include: ! An alphabetical list of names of chemicals that will be used in downhole operations at the well site; and HB22-1348 -2- ! The total estimated amount of each chemical that will be used at the well site. The commission will post each chemical disclosure list on the chemical disclosure website. The commission shall provide the chemical disclosure list to the applicable operator within 7 days after the operator's disclosures. Prior to the commencement of downhole operations, the operator is required to disclose the chemical disclosure list to communities near where downhole operations will be conducted, local public water administrators, and, if there is a high-priority habitat near where downhole operations are being conducted, the division of parks and wildlife. For downhole operations that commenced before July 31, 2023, and that will be ongoing on July 31, 2023, the disclosure of the chemical disclosure list by the operator to these entities must be made at least 60 days before July 31, 2023. For downhole operations that commence on or after July 31, 2023, the disclosure of the chemical disclosure list by the operator to these entities must be made at least 60 days before commencement of downhole operations. If a manufacturer believes that any information that will be included on a chemical disclosure list is a trade secret, the manufacturer must file a trade secret claim with the commission. If the commission determines that the information covered by the trade secret claim constitutes a trade secret, the commission shall not include the information in any applicable chemical disclosure list. On or before July 31, 2023, the commission must promulgate rules that set standards for the disclosure of the chemical disclosure information to: ! An officer or employee of the United States, the state, or a local government in connection with the officer's or employee's official duties; ! Contractors of the United States, the state, or a local government if the commission determines that the disclosure is necessary for performance of a contract or the protection of public health and safety; ! A health-care professional in connection with an emergency or with diagnosing or treating a patient; and ! In order to protect public safety, a person who is employed in public health or a scientist or researcher employed by an institution of higher education. No later than February 1, 2025, and no later than February 1 each year thereafter, the commission shall submit and present an annual report to the general assembly based on the chemical disclosure information. Be it enacted by the General Assembly of the State of Colorado:1 HB22-1348-3- SECTION 1. Legislative declaration. (1) The general assembly1 hereby finds and declares that:2 (a) There are tens of thousands of active oil and gas wells in3 Colorado;4 (b) Many different types of products that contain chemical5 additives are used by operators during the drilling and stimulation of these6 wells to break up the subsurface and extract oil and gas from the ground;7 (c) While water and sand can make up the vast majority of these8 products, the amount of chemical additives injected into a well can add9 up to tens of thousands of gallons because of the amount of these10 products that are used during the course of an oil and gas operation;11 (d) When these chemical additives are injected into a well, there12 is a high risk of contamination to nearby groundwater or surface water;13 and14 (e) Some chemicals used in chemical products, such as15 perfluoroalkyl and polyfluoroalkyl chemicals and biocides, have high16 aquatic toxicity and can be incredibly harmful to human health and the17 environment.18 (2) The general assembly further finds and declares that:19 (a) Even though exposure to these chemical additives poses a20 danger to public health and the environment, scientists, state and local21 regulators, and the public lack full access to information about the22 chemical additives used in oil and gas production in the state;23 (b) While Colorado requires the reporting of certain chemical24 information for products that are used in hydraulic fracturing (fracking)25 operations for input into a third-party database, there are broad26 exemptions allowed for chemical information that is deemed proprietary27 HB22-1348 -4- or confidential by the operator or supplier of a product;1 (c) In recent years, thousands of operators who conduct fracking2 operations have used trade secrecy claims to avoid disclosing information3 about the chemicals that they use in their operations;4 (d) Operators and suppliers of the products often do not have5 knowledge of the chemical information that they are required to report to6 the state;7 (e) As a result of the amount of trade secrecy claims and the8 operators' and suppliers' lack of knowledge of specific chemical9 information, information about the chemical additives that are used in10 fracking operations in the state is vastly underreported;11 (f) Greater transparency regarding chemical use in oil and gas12 production is urgently needed and can be achieved by:13 (I) Requiring manufacturers, rather than operators and suppliers,14 to disclose information about chemicals that are used in oil and gas15 production in the state;16 (II) Requiring the Colorado oil and gas conservation commission17 to gather the chemical information so that the disclosure of specific18 chemical information can be separated from the trade name of a product,19 which will thereby protect any proprietary information; and20 (III) Ensuring that disclosure of the chemical information to the21 state, to local governments, and to schools and communities in close22 proximity to oil and gas operations occurs before the use of the products23 in oil and gas operations; and24 (g) A full inventory of the chemicals used in oil and gas25 production will:26 (I) Assist state agencies, local governments, health-care27 HB22-1348 -5- professionals, public health officials, and scientists in determining if1 highly hazardous chemicals are being used in oil and gas production;2 (II) Alert Coloradans to potential exposures to highly hazardous3 chemicals prior to their use; and4 (III) Encourage the manufacturers and users of products that5 contain highly hazardous chemicals to use less toxic alternatives in future6 products and oil and gas operations.7 (3) Therefore the general assembly determines and declares that8 the state should enact a regulatory scheme that provides full disclosure of9 the chemicals that are being deposited into the environment through oil10 and gas production because:11 (a) Coloradans have the right to know what chemicals are being12 deposited into the environment where they live, work, and recreate; and13 (b) State and local governments and regulators need this chemical14 information to adequately protect the people, water systems, wildlife, and15 environment of Colorado.16 SECTION 2. In Colorado Revised Statutes, add 34-60-132 as17 follows:18 34-60-132. Disclosure of chemicals used in downhole oil and19 gas operations - chemical disclosure lists - community notification -20 trade secret information - disclosure of chemical information to21 governmental agencies, health-care professionals, and scientists -22 reports - definitions - rules - repeal. (1) A S USED IN THIS SECTION,23 UNLESS THE CONTEXT OTHERWISE REQUIRES :24 (a) (I) "A DDITIVE" MEANS A CHEMICAL OR COMBINATION OF25 CHEMICALS ADDED TO A BASE FLUID FOR USE IN A HYDRAULIC26 FRACTURING TREATMENT .27 HB22-1348 -6- (II) "ADDITIVE" INCLUDES PROPPANTS.1 (b) "B ASE FLUID" MEANS THE CONTINUOUS PHASE FLUID TYPE ,2 SUCH AS WATER, USED IN A HYDRAULIC FRACTURING TREATMENT .3 (c) "C HEMICAL" MEANS ANY ELEMENT, CHEMICAL COMPOUND, OR4 MIXTURE OF ELEMENTS OR CHEMICAL COMPOUNDS THAT HAS A SPECIFIC5 NAME OR IDENTITY, INCLUDING A CHEMICAL ABSTRACTS SERVICE6 NUMBER.7 (d) "C HEMICAL ABSTRACTS SERVICE NUMBER" MEANS THE UNIQUE8 NUMERICAL IDENTIFIER ASSIGNED BY THE CHEMICAL ABSTRACTS SERVICE9 TO A CHEMICAL.10 (e) "C HEMICAL DISCLOSURE INFORMATION " MEANS THE11 INFORMATION DISCLOSED TO THE COMMISSION UNDER SUBSECTIONS12 (2)(a)(I) AND (3)(a)(I) OF THIS SECTION.13 (f) "C HEMICAL DISCLOSURE LIST" MEANS A LIST OF CHEMICALS14 THAT AN OPERATOR INDICATES THAT THE OPERATOR PLANS TO USE IN15 DOWNHOLE OPERATIONS AT A WELL SITE .16 (g) "C HEMICAL DISCLOSURE WEBSITE" MEANS A WEBSITE THAT IS17 CAPABLE OF DISPLAYING CHEMICAL DISCLOSURE LISTS AND CAN BE18 ACCESSED BY THE PUBLIC.19 (h) (I) "C HEMICAL PRODUCT" MEANS ANY PRODUCT THAT20 CONSISTS OF ONE OR MORE CHEMICALS AND IS SOLD OR DISTRIBUTED FOR21 USE IN DOWNHOLE OPERATIONS IN THE STATE .22 (II) "C HEMICAL PRODUCT" INCLUDES ADDITIVES, BASE FLUIDS,23 AND HYDRAULIC FRACTURING FLUIDS .24 (i) "D IVISION" MEANS THE DIVISION OF PARKS AND WILDLIFE IN25 THE DEPARTMENT OF NATURAL RESOURCES .26 (j) "D OWNHOLE OPERATIONS " MEANS OIL AND GAS OPERATIONS27 HB22-1348 -7- THAT ARE CONDUCTED UNDERGROUND .1 (k) "H EALTH-CARE PROFESSIONAL" MEANS A PHYSICIAN ,2 PHYSICIAN ASSISTANT, NURSE PRACTITIONER, REGISTERED NURSE, OR3 EMERGENCY MEDICAL SERVICE PROVIDER LICENSED OR CERTIFIED BY THE4 STATE.5 (l) "H IGH-PRIORITY HABITAT" MEANS HABITAT AREAS , AS6 IDENTIFIED BY THE DIVISION, WHERE MEASURES TO AVOID, MINIMIZE, OR7 MITIGATE ADVERSE IMPACTS TO WILDLIFE HAVE BEEN IMPLEMENTED OR8 ARE PLANNED TO BE IMPLEMENTED TO PROTECT BREEDING , NESTING,9 FORAGING, MIGRATING, OR OTHER WILDLIFE ACTIVITIES.10 (m) "H YDRAULIC FRACTURING FLUID " MEANS THE FLUID ,11 INCLUDING ANY BASE FLUID AND ADDITIVES , USED TO PERFORM A12 HYDRAULIC FRACTURING TREATMENT .13 (n) "H YDRAULIC FRACTURING TREATMENT " MEANS ALL STAGES OF14 THE TREATMENT OF A WELL BY THE APPLICATION OF HYDRAULIC15 FRACTURING FLUID UNDER PRESSURE , WHICH TREATMENT IS EXPRESSLY16 DESIGNED TO INITIATE OR PROPAGATE FRACTURES IN AN UNDERGROUND17 GEOLOGIC FORMATION TO ENHANCE THE PRODUCTION OF OIL AND GAS .18 (o) "M ANUFACTURER" MEANS THE PERSON OR ENTITY THAT19 MAKES, ASSEMBLES, OR OTHERWISE GENERATES A CHEMICAL PRODUCT OR20 WHOSE TRADE NAME IS AFFIXED TO A CHEMICAL PRODUCT .21 (p) "P ERFLUOROALKYL AND POLYFLUOROALKYL SUBSTANCES " OR22 "PFAS CHEMICALS" HAS THE MEANING SET FORTH IN SECTION 25-5-130223 (7).24 (q) "P ROPPANTS" MEANS MATERIALS INSERTED OR INJECTED INTO25 AN UNDERGROUND GEOLOGIC FORMATION DURING A HYDRAULIC26 FRACTURING TREATMENT THAT ARE INTENDED TO PREVENT FRACTURES27 HB22-1348 -8- FROM CLOSING.1 (r) "P UBLIC WATER SYSTEMS" HAS THE MEANING SET FORTH IN2 SECTION 25-1.5-201 (1).3 (s) "T RADE SECRET" MEANS THE WHOLE OR ANY PORTION OR4 PHASE OF ANY SCIENTIFIC OR TECHNICAL INFORMATION ; DESIGN; PROCESS;5 PROCEDURE; FORMULA; IMPROVEMENT; CONFIDENTIAL BUSINESS OR6 FINANCIAL INFORMATION; LISTING OF NAMES, ADDRESSES, OR TELEPHONE7 NUMBERS; OR OTHER INFORMATION RELATING TO ANY BUSINESS OR8 PROFESSION THAT:9 (I) I S SECRET AND OF VALUE; AND10 (II) F OR WHICH THE OWNER OF THE SECRET HAS TAKEN MEASURES11 TO PREVENT THE SECRET FROM BECOMING AVAILABLE TO PERSONS OTHER12 THAN THOSE SELECTED BY THE OWNER TO HAVE ACCESS FOR LIMITED13 PURPOSES.14 (t) "T YPE III AQUIFER" MEANS AN AQUIFER THAT CONSISTS OF15 UNCONSOLIDATED GEOLOGIC MATERIAL , INCLUDING ALLUVIAL ,16 COLLUVIAL, OR OTHER CONSOLIDATED MATERIALS .17 (u) "W ELL SITE" MEANS THE AREA THAT IS DIRECTLY DISTURBED18 DURING OIL AND GAS OPERATIONS.19 (2) Manufacturer chemical disclosure information and20 declaration. (a) O N AND AFTER JULY 31, 2023, AND SUBJECT TO21 SUBSECTION (2)(b) OF THIS SECTION, A MANUFACTURER THAT SELLS OR22 DISTRIBUTES A CHEMICAL PRODUCT FOR USE IN DOWNHOLE OPERATIONS23 IN THE STATE MUST:24 (I) D ISCLOSE TO THE COMMISSION:25 (A) T HE TRADE NAME OF THE CHEMICAL PRODUCT ;26 (B) A LIST OF THE NAMES AND CHEMICAL ABSTRACTS SERVICE27 HB22-1348 -9- NUMBERS OF EACH CHEMICAL USED IN THE CHEMICAL PRODUCT ;1 (C) T HE ESTIMATED AMOUNT OF EACH CHEMICAL USED IN THE2 CHEMICAL PRODUCT; AND3 (D) A DESCRIPTION OF THE INTENDED PURPOSE OF EACH CHEMICAL4 USED IN THE CHEMICAL PRODUCT; AND5 (II) P ROVIDE A WRITTEN DECLARATION TO THE COMMISSION THAT6 THE CHEMICAL PRODUCT CONTAINS NO INTENTIONALLY ADDED PFAS7 CHEMICALS.8 (b) (I) (A) F OR MANUFACTURERS THAT WERE ALREADY SELLING9 OR DISTRIBUTING A CHEMICAL PRODUCT FOR USE IN DOWNHOLE10 OPERATIONS IN THE STATE BEFORE JULY 31, 2023, THE INFORMATION AND11 DECLARATION REQUIRED TO BE PROVIDED PURSUANT TO SUBSECTION12 (2)(a) OF THIS SECTION MUST BE PROVIDED TO THE COMMISSION AT LEAST13 THIRTY DAYS BEFORE JULY 31, 2023.14 (B) T HIS SUBSECTION (2)(b)(I) IS REPEALED, EFFECTIVE JULY 1,15 2024.16 (II) F OR MANUFACTURERS THAT BEGIN TO SELL OR DISTRIBUTE A17 CHEMICAL PRODUCT FOR USE IN DOWNHOLE OPERATIONS IN THE STATE ON18 OR AFTER JULY 31, 2023, THE INFORMATION AND DECLARATION REQUIRED19 TO BE PROVIDED PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION MUST20 BE PROVIDED TO THE COMMISSION AT LEAST THIRTY DAYS BEFORE THE21 MANUFACTURER BEGINS SELLING OR DISTRIBUTING THE CHEMICAL22 PRODUCT.23 (c) T HE COMMISSION SHALL MAKE REASONABLE EFFORTS TO24 ENSURE THAT THE INFORMATION AND DECLARATION REQUIRED TO BE25 PROVIDED UNDER SUBSECTION (2)(a) OF THIS SECTION IS PROVIDED TO THE26 COMMISSION.27 HB22-1348 -10- (3) Operator chemical disclosure information - declaration.1 (a) O N AND AFTER JULY 31, 2023, AND SUBJECT TO SUBSECTION (3)(b) OF2 THIS SECTION, AN OPERATOR OF DOWNHOLE OPERATIONS USING A3 CHEMICAL PRODUCT MUST :4 (I) D ISCLOSE TO THE COMMISSION:5 (A) T HE DATE OF COMMENCEMENT OF DOWNHOLE OPERATIONS ;6 (B) T HE COUNTY OF THE WELL SITE WHERE DOWNHOLE7 OPERATIONS ARE BEING OR WILL BE CONDUCTED ;8 (C) T HE UNIQUE NUMERICAL IDENTIFIER ASSIGNED BY THE9 A MERICAN PETROLEUM INSTITUTE TO THE WELL WHERE DOWNHOLE10 OPERATIONS ARE BEING OR WILL BE CONDUCTED ; AND11 (D) T HE TRADE NAMES AND QUANTITIES OF ANY CHEMICAL12 PRODUCTS THE OPERATOR PLANS TO USE IN DOWNHOLE OPERATIONS ; AND13 (II) P ROVIDE A WRITTEN DECLARATION TO THE COMMISSION THAT14 THE CHEMICAL PRODUCT CONTAINS NO INTENTIONALLY ADDED PFAS15 CHEMICALS.16 (b) (I) (A) F OR A DOWNHOLE OPERATION THAT COMMENCED17 BEFORE JULY 31, 2023, AND THAT WILL BE ONGOING ON JULY 31, 2023,18 THE INFORMATION AND DECLARATION REQUIRED TO BE PROVIDED19 PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION MUST BE PROVIDED TO20 THE COMMISSION AT LEAST SEVENTY -FIVE DAYS BEFORE JULY 31, 2023.21 (B) T HIS SUBSECTION (3)(b)(I) IS REPEALED, EFFECTIVE JULY 1,22 2024.23 (II) F OR A DOWNHOLE OPERATION THAT COMMENCES ON OR AFTER24 J ULY 31, 2023, THE INFORMATION AND DECLARATION REQUIRED TO BE25 PROVIDED PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION MUST BE26 PROVIDED TO THE COMMISSION AT LEAST SEVENTY -FIVE DAYS BEFORE27 HB22-1348 -11- COMMENCEMENT OF THE DOWNHOLE OPERATION .1 (c) T HE COMMISSION SHALL MAKE REASONABLE EFFORTS TO2 ENSURE THAT THE INFORMATION AND DECLARATION REQUIRED TO BE3 PROVIDED UNDER SUBSECTION (3)(a) OF THIS SECTION IS PROVIDED TO THE4 COMMISSION.5 (4) Change in chemical disclosure information. I F THERE IS A6 CHANGE IN THE INFORMATION PROVIDED UNDER SUBSECTION (2)(a)(I) OR7 (3)(a)(I) OF THIS SECTION, THE MANUFACTURER OR OPERATOR MUST8 SUBMIT THE CHANGE TO THE COMMISSION WITHIN THIRTY DAYS AFTER THE9 DATE THE MANUFACTURER OR OPERATOR FIRST KNEW OF THE CHANGE .10 (5) Chemical disclosure lists. (a) T HE COMMISSION SHALL USE11 THE CHEMICAL DISCLOSURE INFORMATION TO CREATE A CHEMICAL12 DISCLOSURE LIST FOR EACH APPLICABLE WELL SITE .13 (b) T HE COMMISSION SHALL INCLUDE IN THE CHEMICAL14 DISCLOSURE LIST:15 (I) A N ALPHABETICAL LIST OF THE NAMES AND CHEMICAL16 A BSTRACTS SERVICE NUMBERS OF EACH CHEMICAL THAT WILL BE USED IN17 DOWNHOLE OPERATIONS AT THE WELL SITE ; AND18 (II) T HE TOTAL ESTIMATED AMOUNT OF EACH CHEMICAL THAT AN19 OPERATOR PLANS TO USE IN DOWNHOLE OPERATIONS AT THE WELL SITE .20 (c) T HE COMMISSION SHALL NOT INCLUDE IN THE CHEMICAL21 DISCLOSURE LIST:22 (I) T HE TRADE NAME OF A CHEMICAL PRODUCT USED IN DOWNHOLE23 OPERATIONS AT THE WELL SITE; OR24 (II) T HE TOTAL AMOUNT OF A CHEMICAL IN A CHEMICAL PRODUCT . 25 (d) N O LATER THAN SEVEN DAYS AFTER AN OPERATOR MAKES THE26 DISCLOSURES REQUIRED UNDER SUBSECTION (3) OF THIS SECTION, THE27 HB22-1348 -12- COMMISSION SHALL:1 (I) P OST THE CHEMICAL DISCLOSURE LIST ON THE CHEMICAL2 DISCLOSURE WEBSITE AND INCLUDE THE DATE OF THE SUBMISSION OF THE3 CHEMICAL DISCLOSURE LIST TO THE COMMISSION IN THE POST ; AND4 (II) P ROVIDE THE CHEMICAL DISCLOSURE LIST TO THE OPERATOR5 OF THE APPLICABLE WELL.6 (e) T HE COMMISSION SHALL:7 (I) P OST AN UPDATED CHEMICAL DISCLOSURE LIST IF THERE ARE8 ANY NOTIFICATIONS RECEIVED FROM A MANUFACTURER OR OPERATOR9 UNDER SUBSECTION (4) OF THIS SECTION AND INCLUDE THE DATE OF THE10 NOTIFICATION BY THE MANUFACTURER OR OPERATOR IN THE POST ; AND11 (II) E NSURE THAT:12 (A) A LL CHEMICAL DISCLOSURE LISTS AND UPDATED CHEMICAL13 DISCLOSURE LISTS REMAIN VIEWABLE BY THE PUBLIC ;14 (B) T HE CHEMICAL DISCLOSURE WEBSITE IS SEARCHABLE BY15 CHEMICAL, DATE OF SUBMISSION OR UPDATE OF A CHEMICAL DISCLOSURE16 LIST, NAME AND ADDRESS OF THE OPERATOR , AND COUNTY OF THE WELL17 SITE; AND18 (C) T HE CHEMICAL DISCLOSURE WEBSITE ALLOWS MEMBERS OF19 THE PUBLIC TO DOWNLOAD CHEMICAL DISCLOSURE LISTS IN AN20 ELECTRONIC, DELIMITED FORMAT.21 (6) Community notification. (a) ON OR BEFORE JULY 31, 2023,22 AND SUBJECT TO SUBSECTION (6)(b) OF THIS SECTION, AN OPERATOR23 SHALL PROVIDE THE CHEMICAL DISCLOSURE LIST TO :24 (I) A LL PARTIES THAT:25 (A) A RE LOCATED WITHIN TWO THOUSAND SIX HUNDRED FORTY26 FEET OF THE WELL SITE; AND27 HB22-1348 -13- (B) THE OPERATOR IS REQUIRED BY RULE TO NOTIFY OF THE1 DETERMINATION MADE BY THE DIRECTOR OF THE COMMISSION THAT AN2 OIL AND GAS DEVELOPMENT PLAN IS COMPLETE ;3 (II) T HE ADMINISTRATOR OF ANY PUBLIC WATER SYSTEM THAT4 OPERATES:5 (A) A SURFACE WATER PUBLIC WATER SYSTEM INTAKE THAT IS6 LOCATED FIFTEEN STREAM MILES OR LESS DOWNSTREAM FROM THE WELL7 SITE;8 (B) A GROUNDWATER UNDER THE DIRECT INFLUENCE OF A9 SURFACE WATER PUBLIC WATER SYSTEM SUPPLY WELL WITHIN TWO10 THOUSAND SIX HUNDRED FORTY FEET OF THE WELL SITE ; AND11 (C) A PUBLIC WATER SYSTEM SUPPLY WELL COMPLETED IN A TYPE12 III AQUIFER WITHIN TWO THOUSAND SIX HUNDRED FORTY FEET OF THE13 WELL SITE; AND14 (III) T HE DIVISION IF:15 (A) T HERE IS A HIGH-PRIORITY HABITAT AREA WITHIN ONE MILE OF16 THE WELL SITE; OR17 (B) T HERE IS A STATE WILDLIFE AREA, AS DEFINED IN SECTION18 33-1-102 (42), OR A STATE PARK OR RECREATION AREA WITHIN TWO19 THOUSAND SIX HUNDRED FORTY FEET OF THE WELL SITE .20 (b) (I) (A) F OR A DOWNHOLE OPERATION THAT COMMENCED21 BEFORE JULY 31, 2023, AND THAT WILL BE ONGOING ON JULY 31, 2023,22 THE CHEMICAL DISCLOSURE LIST MUST BE DISCLOSED BY THE OPERATOR23 IN ACCORDANCE WITH SUBSECTION (6)(a) OF THIS SECTION AT LEAST SIXTY24 DAYS BEFORE JULY 31, 2023.25 (B) T HIS SUBSECTION (6)(b)(I) IS REPEALED, EFFECTIVE JULY 1,26 2024.27 HB22-1348 -14- (II) FOR A DOWNHOLE OPERATION THAT COMMENCES ON OR AFTER1 J ULY 31, 2023, THE CHEMICAL DISCLOSURE LIST MUST BE DISCLOSED IN2 ACCORDANCE WITH SUBSECTION (6)(a) OF THIS SECTION AT LEAST SIXTY3 DAYS BEFORE THE COMMENCEMENT OF THE DOWNHOLE OPERATION .4 (7) Trade secret claims. (a) I F A MANUFACTURER BELIEVES THAT5 ANY INFORMATION THE MANUFACTURER IS REQUIRED TO DISCLOSE UNDER6 SUBSECTION (2)(a)(I) OF THIS SECTION IS A TRADE SECRET AND SHOULD7 NOT BE INCLUDED IN A CHEMICAL DISCLOSURE LIST, THE MANUFACTURER8 SHALL FILE A TRADE SECRET CLAIM WITH THE COMMISSION AND PROVIDE9 THE COMMISSION WITH A WRITTEN DESCRIPTION OF :10 (I) T HE EXTENT THAT THE INFORMATION COVERED BY THE TRADE11 SECRET CLAIM IS KNOWN BY:12 (A) T HE MANUFACTURER'S EMPLOYEES;13 (B) P ERSONS INVOLVED IN THE MANUFACTURER 'S BUSINESS; AND14 (C) P ERSONS OUTSIDE OF THE MANUFACTURER 'S BUSINESS;15 (II) M EASURES TAKEN BY THE MANUFACTURER TO PROTECT THE16 SECRECY OF THE INFORMATION COVERED BY THE TRADE SECRET CLAIM ;17 (III) T HE VALUE OF THE INFORMATION COVERED BY THE TRADE18 SECRET CLAIM TO THE MANUFACTURER AND THE MANUFACTURER 'S19 COMPETITORS; AND20 (IV) T HE AMOUNT OF EFFORT AND MONEY SPENT BY THE21 MANUFACTURER IN DEVELOPING THE INFORMATION COVERED BY THE22 TRADE SECRET CLAIM.23 (b) N OTWITHSTANDING ANY LAW TO THE CONTRARY , THE24 COMMISSION SHALL NOT PROTECT THE NAMES OR CHEMICAL ABSTRACTS25 S ERVICE NUMBERS OF ANY CHEMICAL AS A TRADE SECRET .26 (c) I F THE COMMISSION DETERMINES THAT A TRADE SECRET CLAIM27 HB22-1348 -15- FILED UNDER SUBSECTION (7)(a) OF THIS SECTION IS INCOMPLETE, THE1 COMMISSION SHALL NOTIFY THE MANUFACTURER BY CERTIFIED MAIL . THE2 MANUFACTURER HAS THIRTY DAYS AFTER RECEIVING THE COMMISSION 'S3 WRITTEN NOTICE TO PROVIDE ANY MISSING INFORMATION TO THE4 COMMISSION.5 (d) T HE COMMISSION SHALL DETERMINE WITHIN THIRTY DAYS6 AFTER A MANUFACTURER 'S TRADE SECRET CLAIM FILED UNDER7 SUBSECTION (7)(a) OF THIS SECTION IS COMPLETE WHETHER THE8 INFORMATION COVERED BY THE TRADE SECRET CLAIM CONSTITUTES A9 TRADE SECRET.10 (e) I F THE COMMISSION DETERMINES THAT THE INFORMATION11 COVERED BY THE TRADE SECRET CLAIM CONSTITUTES A TRADE SECRET :12 (I) T HE COMMISSION SHALL NOT INCLUDE THE INFORMATION IN13 ANY APPLICABLE CHEMICAL DISCLOSURE LIST ; AND14 (II) T HE COMMISSION MAY DISCLOSE THE INFORMATION ONLY IN15 ACCORDANCE WITH SUBSECTION (8) OF THIS SECTION.16 (f) I F THE COMMISSION DETERMINES THAT THE INFORMATION17 COVERED BY THE TRADE SECRET CLAIM DOES NOT CONSTITUTE A TRADE18 SECRET, THE COMMISSION SHALL:19 (I) N OTIFY THE MANUFACTURER BY CERTIFIED MAIL OF THE20 COMMISSION'S DETERMINATION; AND21 (II) I NCLUDE THE INFORMATION IN ANY APPLICABLE CHEMICAL22 DISCLOSURE LIST UNLESS THE MANUFACTURER OBTAINS FROM A COURT OF23 COMPETENT JURISDICTION:24 (A) A DECLARATORY JUDGMENT STATING THAT THE INFORMATION25 IS SUBJECT TO PROTECTION FROM PUBLIC DISCLOSURE ; OR26 (B) A PRELIMINARY INJUNCTION PROHIBITING DISCLOSURE OF THE27 HB22-1348 -16- INFORMATION TO THE PUBLIC.1 (g) T HE MANUFACTURER SHALL PROVIDE NOTICE TO THE2 COMMISSION OF ANY COURT ORDER RECEIVED PURSUANT TO SUBSECTION3 (8)(f)(II) OF THIS SECTION.4 (h) N OTWITHSTANDING ANY LAW TO THE CONTRARY , NOTHING IN5 THIS SUBSECTION (7) ALLOWS A MANUFACTURER TO REFUSE TO DISCLOSE6 TO THE COMMISSION THE INFORMATION REQUIRED TO BE DISCLOSED7 UNDER SUBSECTION (2)(a)(I) OF THIS SECTION.8 (8) Disclosure of chemical disclosure information to state9 agencies, health-care professionals, and scientists. (a) O N OR BEFORE10 J ULY 31, 2023, THE COMMISSION SHALL PROMULGATE RULES SETTING11 FORTH STANDARDS FOR THE DISCLOSURE OF CHEMICAL DISCLOSURE12 INFORMATION TO:13 (I) A N OFFICER OR EMPLOYEE OF THE UNITED STATES, THE STATE,14 OR A LOCAL GOVERNMENT IN C ONNECTION WITH THE OFFICER 'S OR15 EMPLOYEE'S OFFICIAL DUTIES;16 (II) C ONTRACTORS OF THE UNITED STATES, THE STATE, OR A17 LOCAL GOVERNMENT IF THE COMMISSION DETERMINES THAT DISCLOSURE18 OF THE CHEMICAL DISCLOSURE INFORMATION IS NECESSARY FOR :19 (A) S ATISFACTORY PERFORMANCE OF A CONTRACT WITH THE20 U NITED STATES, THE STATE, OR A LOCAL GOVERNMENT; OR21 (B) T HE PROTECTION OF PUBLIC HEALTH AND SAFETY ;22 (III) A HEALTH-CARE PROFESSIONAL IN THE EVENT OF AN23 EMERGENCY OR TO DIAGNOSE OR TREAT A PATIENT ; AND24 (IV) I N ORDER TO PROTECT PUBLIC HEALTH AND SAFETY , A PERSON25 WHO IS:26 (A) E MPLOYED IN THE FIELD OF PUBLIC HEALTH IN A27 HB22-1348 -17- GOVERNMENTAL OR HEALTH -CARE AGENCY; OR1 (B) A SCIENTIST OR RESEARCHER EMPLOYED BY AN INSTITUTION2 OF HIGHER EDUCATION WHO IS STUDYING THE ENVIRONMENTAL OR3 HEALTH IMPACTS OF CHEMICAL PRODUCTS .4 (b) A PERSON DESCRIBED IN SUBSECTION (8)(a)(IV) OF THIS5 SECTION MUST SUBMIT A WRITTEN STATEMENT OF NEED TO THE6 COMMISSION TO RECEIVE CHEMICAL DISCLOSURE INFORMATION . THE7 WRITTEN STATEMENT OF NEED , AT A MINIMUM, MUST:8 (I) I DENTIFY THE SPECIFIC CHEMICAL DISCLOSURE INFORMATION9 THAT IS SOUGHT BY THE PERSON; AND10 (II) D ESCRIBE THE REASON THAT DISCLOSURE OF THE SPECIFIC11 CHEMICAL DISCLOSURE INFORMATION IS NECESSARY FOR PUBLIC HEALTH12 OR RESEARCH PURPOSES.13 (c) A HEALTH-CARE PROFESSIONAL DESCRIBED IN SUBSECTION14 (8)(a)(III) OF THIS SECTION MAY SHARE THE CHEMICAL DISCLOSURE15 INFORMATION WITH OTHER PERSONS , INCLUDING WITH THE PATIENT AND16 OTHER HEALTH-CARE PROFESSIONALS, AS MAY BE PROFESSIONALLY17 NECESSARY TO DIAGNOSE OR TREAT A PATIENT , EXCEPT AS PROHIBITED18 UNDER APPLICABLE FEDERAL OR STATE LAW .19 (9) Reporting to the general assembly. (a) (I) T HE COMMISSION20 SHALL PREPARE AN ANNUAL REPORT THAT INCLUDES :21 (A) A LIST OF THE CHEMICALS USED IN DOWNHOLE OPERATIONS IN22 THE STATE IN THE PRIOR CALENDAR YEAR ;23 (B) A N APPROXIMATE AMOUNT OF EACH CHEMICAL USED IN24 DOWNHOLE OPERATIONS IN THE STATE IN THE PRIOR CALENDAR YEAR ;25 (C) A DESCRIPTION OF THE CONCENTRATION OF THE USE OF EACH26 CHEMICAL IN AREAS THROUGHOUT THE STATE IN THE PRIOR CALENDAR27 HB22-1348 -18- YEAR; AND1 (D) T HE NUMBER OF TRADE SECRET CLAIMS RECEIVED BY THE2 COMMISSION UNDER SUBSECTION (7)(a) OF THIS SECTION IN THE PRIOR3 CALENDAR YEAR.4 (II) N O LATER THAN FEBRUARY 1, 2025, AND ON OR BEFORE EACH5 F EBRUARY 1 THEREAFTER, THE COMMISSION SHALL:6 (A) S UBMIT AND PRESENT THE REPORT PREPARED PURSUANT TO7 SUBSECTION (9)(a)(I) OF THIS SECTION TO THE ENERGY AND ENVIRONMENT8 COMMITTEE OF THE HOUSE OF REPRESENTATIVES AND THE9 TRANSPORTATION AND ENERGY COMMITTEE OF THE SENATE , OR ANY10 SUCCESSOR COMMITTEES; AND11 (B) P OST THE REPORT ON THE COMMISSION 'S WEBSITE.12 (b) N OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THE13 REQUIREMENT TO REPORT TO THE LEGISLATIVE COMMITTEES CONTINUES14 INDEFINITELY.15 (10) Rules. T HE COMMISSION MAY PROMULGATE RULES THAT ARE16 NECESSARY FOR THE IMPLEMENTATION AND ADMINISTRATION OF THIS17 SECTION.18 SECTION 3. Safety clause. The general assembly hereby finds,19 determines, and declares that this act is necessary for the immediate20 preservation of the public peace, health, or safety.21 HB22-1348 -19-