First Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 23-0640.02 Sarah Lozano x3858 SENATE BILL 23-270 Senate Committees House Committees Agriculture & Natural Resources A BILL FOR AN ACT C ONCERNING PROJECTS THAT RESTORE THE ENVIRONMENTAL HEALTH101 OF NATURAL STREAM SYSTEM S WITHOUT ADMINISTRATION .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 creates a rebuttable presumption that a project that is designed and constructed within a natural stream system for certain restoration purposes (stream restoration project) does not cause material injury to vested water rights (rebuttable presumption). A holder of a vested water right may challenge the rebuttable presumption by sufficiently demonstrating in a court of competent jurisdiction that the SENATE SPONSORSHIP Roberts and Simpson, HOUSE SPONSORSHIP McCormick, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. operation of the stream restoration project has caused material injury to a vested water right. The bill also requires that, at least 63 calendar days before the commencement of a stream restoration project, the owner or proponent of the stream restoration project register the project with the state engineer and provide notice to the substitute water supply plan notification list (registration and notice requirement). Upon the completion of a stream restoration project, the owner or proponent of the stream restoration project shall file a completion report with the state engineer. If a stream restoration project is limited to certain minor restoration activities: ! The stream restoration project does not cause material injury to any vested water right; ! The stream restoration project is not an unnecessary dam or other obstruction; and ! The owner or proponent of the stream restoration project is not required to comply with the registration and notice requirement. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds that:3 (a) Functioning natural streams are beneficial to all Coloradans4 because they provide clean water for farms and cities as well as5 broad-based public safety and ecological services, including:6 (I) Forest and watershed health;7 (II) Wildfire mitigation and recovery;8 (III) Flood safety;9 (IV) Water quality;10 (V) Recreation; and11 (VI) Riparian and aquatic habitats;12 (b) Functioning natural streams that are connected to floodplains13 balance the patterns of sediment erosion and deposition, which protects14 SB23-270-2- water infrastructure, including diversion structures, ditches, pumps, pipes,1 and reservoirs, that are susceptible to damage and adverse impacts from2 sedimentation, especially sedimentation resulting from fires and floods;3 (c) Stream restoration projects are an essential tool for water4 project developers and wastewater and stormwater dischargers to meet5 regulatory obligations;6 (d) Stream restoration projects address the legacy of water quality7 and habitat impacts from abandoned mines or catastrophic mine spills that8 have deprived entire communities of safe drinking water; and9 (e) The Colorado water plan sets a vision for thriving watersheds10 and calls for multi-benefit projects that restore stream health to enhance11 water supply security for agriculture, communities, tourism, and12 ecosystem function.13 (2) The general assembly therefore declares that, because of the14 vast amount of benefits that natural streams provide the state's15 communities and environment, the state should facilitate and encourage16 the commencement of projects that restore the environmental health of17 natural stream systems.18 SECTION 2. In Colorado Revised Statutes, 37-92-602, add (9)19 as follows:20 37-92-602. Exemptions - presumptions - stream restoration21 projects - report - legislative declaration - definitions. (9) (a) T HE22 GENERAL ASSEMBLY HEREBY DECLARES THAT STREAM RESTORATION23 PROJECTS ARE ESSENTIAL FOR THE PROTECTION OF PUBLIC SAFETY ,24 WELFARE, PROPERTY, AND THE ENVIRONMENT.25 (b) A S USED IN THIS SUBSECTION (9), UNLESS THE CONTEXT26 OTHERWISE REQUIRES:27 SB23-270 -3- (I) "MINOR STREAM RESTORATION ACTIVITY " MEANS ANY OR ALL1 OF THE FOLLOWING ACTIVITIES:2 (A) S TABILIZING THE BANKS OR SUBSTRATE OF A NATURAL3 STREAM SYSTEM WITH DEFORMABLE AND POROUS HARD OR4 BIOENGINEERED STRUCTURES COMPOSED OF WOOD , ROCK, OR NATURAL5 MATERIALS THAT RESULT IN ONLY AN INCIDENTAL INCREASE IN SURFACE6 AREA, NOT TO EXCEED THE ORDINARY HIGH WATER MARK OF THE7 NATURAL STREAM;8 (B) M ECHANICAL GRADING OF THE GROUND SURFACE ALONG A9 NATURAL STREAM SYSTEM IN A MANNER THAT DOES NOT RESULT IN10 GROUNDWATER EXPOSURE , DIVERSIONS OF SURFACE WATER , OR THE11 COLLECTION OF STORM WATER ;12 (C) S TABILIZING AN EPHEMERAL OR INTERMITTENT NATURAL13 STREAM BY INSTALLING DEFORMABLE AND POROUS STRUCTURES INTO THE14 BANKS AND SUBSTRATE, WHICH MAY INCIDENTALLY AND TEMPORARILY15 INCREASE SURFACE AREA OR INFILTRATION ;16 (D) D AYLIGHTING A NATURAL STREAM THAT HAS BEEN PIPED OR17 BURIED;18 (E) R EDUCING THE SURFACE AREA OF A NATURAL STREAM TO19 ADDRESS REDUCTIONS IN HISTORICAL FLOW AMOUNTS ; AND20 (F) I NSTALLING STRUCTURES OR RECONSTRUCTING A CHANNEL IN21 A NATURAL STREAM SYSTEM FOR THE SOLE PURPOSE OF RECOVERY FROM22 THE IMPACTS OF A WILDLAND FIRE OR FLOOD EMERGENCY .23 (II) "N ATURAL STREAM" HAS THE MEANING SET FORTH IN SECTION24 37-87-102 (1)(b).25 (III) "N ATURAL STREAM SYSTEM " MEANS THE EXTENT OF A26 NATURAL STREAM IN THE STATE AND THE GEOMORPHIC FLOODPLAIN AND27 SB23-270 -4- ASSOCIATED RIPARIAN AREA.1 (IV) "S TREAM RESTORATION PROJECT " MEANS A PROJECT THAT IS2 DESIGNED AND CONSTRUCTED :3 (A) W ITHIN A NATURAL STREAM SYSTEM ;4 (B) F OR THE PURPOSES OF WILDLAND FIRE MITIGATION ; FLOOD5 MITIGATION; BANK STABILIZATION; WATER QUALITY PROTECTION OR6 RESTORATION; HABITAT, SPECIES, OR ECOSYSTEM RESTORATION; DROUGHT7 RESILIENCE; SOURCE WATER PROTECTION; INFRASTRUCTURE PROTECTION;8 OR SEDIMENT AND EROSION MANAGEMENT ; AND9 (C) I N A MANNER THAT DOES NOT INCREASE THE WATER SURFACE10 AREA OF THE NATURAL STREAM BY MORE THAN ONE -QUARTER ACRE PER11 STRUCTURE OR TREATMENT AND THAT DOES NOT EXCEED A TOTAL12 INCREASE OF EIGHT SURFACE ACRES FOR A SERIES OF STRUCTURES WITHIN13 ONE STREAM MILE.14 (c) (I) E XCEPT AS SET FORTH IN SUBSECTION (9)(f)(I) OF THIS15 SECTION:16 (A) T HERE IS A REBUTTABLE PRESUMPTION THAT A STREAM17 RESTORATION PROJECT DOES NOT CAUSE MATERIAL INJURY TO VESTED18 WATER RIGHTS; AND19 (B) T HE HOLDER OF A VESTED WATER RIGHT MAY CHALLENGE THE20 REBUTTABLE PRESUMPTION BY BRINGING AN ACTION IN THE WATER COURT21 FOR THE DIVISION IN WHICH THE STREAM RESTORATION PROJECT IS22 CONDUCTED NO LATER THAN TWO YEARS AFTER THE FILING OF THE23 COMPLETION REPORT REQUIRED PURSUANT TO SUBSECTION (9)(e) OF THIS24 SECTION.25 (II) T HE HOLDER OF A VESTED WATER RIGHT MAY REBUT THE26 REBUTTABLE PRESUMPTION PURSUANT TO SUBSECTION (9)(c)(I)(B) OF27 SB23-270 -5- THIS SECTION BY PRESENTING EVIDENCE SUFFICIENT TO SHOW THAT THE1 OPERATION OF A STREAM RESTORATION PROJECT HAS CAUSED MATERIAL2 INJURY TO THE VESTED WATER RIGHT .3 (d) E XCEPT AS SET FORTH IN SUBSECTION (9)(f)(III) OF THIS4 SECTION, AT LEAST SIXTY -THREE CALENDAR DAYS BEFORE THE5 COMMENCEMENT OF A STREAM RESTORATION PROJECT , THE OWNER OR6 PROPONENT OF THE STREAM RESTORATION PROJECT SHALL :7 (I) R EGISTER THE STREAM RESTORATION PROJECT WITH THE STATE8 ENGINEER ON A FORM PRESCRIBED BY THE STATE ENGINEER ; AND9 (II) P ROVIDE NOTICE TO THE SUBSTITUTE WATER SUPPLY PLAN10 NOTIFICATION LIST MAINTAINED BY THE STATE ENGINEER PURSUANT TO11 SECTION 37-92-308 (6) FOR THE WATER DIVISION IN WHICH THE STREAM12 RESTORATION PROJECT IS PROPOSED. THE NOTICE MUST INCLUDE:13 (A) T HE LOCATION OF THE STREAM RESTORATION PROJECT ,14 INCLUDING THE NAME OF THE STREAM , THE COUNTY WHERE THE STREAM15 RESTORATION PROJECT IS PROPOSED, AND THE APPROXIMATE ELEVATION16 OF THE STREAM RESTORATION PROJECT ;17 (B) C ONTACT INFORMATION FOR THE OWNER OR PROPONENT OF18 THE STREAM RESTORATION PROJECT ;19 (C) A DESCRIPTION OF ANY PURPOSES OF THE STREAM20 RESTORATION PROJECT, AS DESCRIBED IN SUBSECTION (9)(b)(IV)(B) OF21 THIS SECTION;22 (D) A PROJECT MAP, DESIGN, AND DESCRIPTION DEMONSTRATING23 THAT THE STREAM RESTORATION PROJECT IS DESIGNED IN ACCORDANCE24 WITH THE REQUIREMENTS OF SUBSECTION (9)(b)(IV) OF THIS SECTION;25 AND26 (E) A SUMMARY OF ANY OUTREACH REGARDING THE STREAM27 SB23-270 -6- RESTORATION PROJECT, INCLUDING NOTIFICATION OF THE STREAM1 RESTORATION PROJECT TO ADJOINING PROPERTY OWNERS , LOCAL FLOOD2 CONTROL DISTRICTS, THE BASIN ROUNDTABLE CREATED IN SECTION3 37-75-104 (1)(a) OF THE WATER BASIN WHERE THE STREAM RESTORATION4 PROJECT IS PROPOSED, OR ANY OTHER POTENTIALLY INTERESTED PERSONS5 WITH INTERESTS IN THE VICINITY OF THE STREAM RESTORATION PROJECT .6 (e) U PON THE COMPLETION OF A STREAM RESTORATION PROJECT ,7 THE OWNER OR PROPONENT OF THE STREAM RESTORATION PROJECT SHALL8 FILE A COMPLETION REPORT WITH THE STATE ENGINEER IN A FORM9 PRESCRIBED BY THE STATE ENGINEER .10 (f) I F A STREAM RESTORATION PROJECT IS LIMITED TO ONE OR11 MORE MINOR STREAM RESTORATION ACTIVITIES :12 (I) T HE STREAM RESTORATION PROJECT DOES NOT CAUSE13 MATERIAL INJURY TO ANY VESTED WATER RIGHT ;14 (II) T HE STREAM RESTORATION PROJECT IS NOT AN UNNECESSARY15 DAM OR OTHER OBSTRUCTION ; AND16 (III) T HE OWNER OR PROPONENT OF THE STREAM RESTORATION17 PROJECT IS NOT REQUIRED TO COMPLETE THE REGISTRATION AND NOTICE18 REQUIREMENTS DESCRIBED IN SUBSECTION (9)(d) OF THIS SECTION.19 (g) T HE OWNER OR PROPONENT OF A STREAM RESTORATION20 PROJECT SHALL NOT INSTALL THE STREAM RESTORATION PROJECT IN A21 MANNER THAT ADVERSELY AFFECTS THE FUNCTION OF STRUCTURES USED22 TO DIVERT WATER OR MEASURE WATER FLOW BY HOLDERS OF VESTED23 WATER RIGHTS WITHOUT THE PERMISSION OF THE OWNERS OF THE24 STRUCTURES.25 (h) O N OR BEFORE FEBRUARY 1, 2026, THE STATE ENGINEER SHALL26 REPORT THE FOLLOWING INFORMATION TO THE AGRICULTURE AND27 SB23-270 -7- NATURAL RESOURCES COMMITTEE OF THE SENATE AND THE AGRICULTURE ,1 WATER, AND NATURAL RESOURCES COMMITTEE OF THE HOUSE OF2 REPRESENTATIVES, OR ANY SUCCESSOR COMMITTEES :3 (I) T HE TOTAL NUMBER OF STREAM RESTORATION PROJECTS THAT4 HAVE BEEN REGISTERED PURSUANT TO SUBSECTION (9)(d)(I) OF THIS5 SECTION;6 (II) A NY COMPLAINT OF MATERIAL INJURY TO A VESTED WATER7 RIGHT MADE PURSUANT TO SUBSECTION (9)(c)(I)(B) OF THIS SECTION; AND8 (III) T HE RESULTS OF ANY STUDIES THAT THE STATE ENGINEER IS9 AWARE OF THAT EVALUATE CHANGES TO HYDROLOGY OR WATER10 AVAILABLE TO VESTED WATER RIGHTS HOLDERS DUE TO STREAM11 RESTORATION PROJECTS IN THE STATE.12 (i) N OTWITHSTANDING ANY PROVISION IN THIS SUBSECTION (9) TO13 THE CONTRARY, NOTHING IN THIS SUBSECTION (9):14 (I) C REATES A BASIS FOR A WATER RIGHT , CREDIT, OR OTHER15 RIGHT FOR THE USE OF WATER;16 (II) C REATES PRECEDENT FOR THE LITIGATION OF , CREATES A17 LEGISLATIVE DETERMINATION OF , ALTERS, OR AFFECTS ANY REAL18 PROPERTY INTERESTS, INCLUDING EXPRESS OR PRESCRIPTIVE FLOWAGE19 EASEMENTS AFFECTING LAND ALONG A PUBLIC STREAM HELD BY ANY20 POLITICAL SUBDIVISION OR PERSON;21 (III) P ROHIBITS THE STATE ENGINEER FROM TAKING ANY ACTION22 NECESSARY TO COMPLY WITH AN INTERSTATE COMPACT , INTERSTATE23 APPORTIONMENT DECREE , OR INTERSTATE AGREEMENT;24 (IV) A LTERS, AMENDS, OR AFFECTS ANY FEDERAL , STATE, OR25 LOCAL LAW OR REQUIREMENT THAT OTHERWISE APPLIES TO A STREAM26 RESTORATION PROJECT; OR27 SB23-270 -8- (V) IMPAIRS OR IN ANY WAY AFFECTS THE ABILITY OF ANY PERSON1 TO APPROPRIATE WATER FOR PURPOSES RELATED TO A STREAM2 RESTORATION PROJECT.3 (j) A STREAM RESTORATION PROJECT THAT HAS OBTAINED ANY4 APPLICABLE PERMITS, IS UNDER CONSTRUCTION OR COMPLETED BY5 A UGUST 1, 2023, AND MEETS THE REQUIREMENTS OF SUBSECTION6 (9)(b)(IV) OF THIS SECTION DOES NOT CAUSE MATERIAL INJURY TO ANY7 VESTED WATER RIGHT AND IS NOT AN UNNECESSARY DAM OR OTHER8 OBSTRUCTION.9 SECTION 3. Safety clause. The general assembly hereby finds,10 determines, and declares that this act is necessary for the immediate11 preservation of the public peace, health, or safety.12 SB23-270 -9-