First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 23-0640.02 Sarah Lozano x3858 SENATE BILL 23-270 Senate Committees House Committees Agriculture & Natural Resources Agri culture, Water & Natural Resources A BILL FOR AN ACT C ONCERNING ACTIVITIES THAT RESTORE THE ENVIRONMENTAL101 HEALTH OF NATURAL STREAM SYSTEMS WITHOUT102 ADMINISTRATION.103 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 HOUSE 2nd Reading Unamended May 3, 2023 SENATE 3rd Reading Unamended April 18, 2023 SENATE Amended 2nd Reading April 17, 2023 SENATE SPONSORSHIP Roberts and Simpson, Bridges, Buckner, Coleman, Cutter, Exum, Fenberg, Fields, Ginal, Hinrichsen, Jaquez Lewis, Kolker, Marchman, Mullica, Pelton B., Priola, Will, Winter F., Zenzinger HOUSE SPONSORSHIP McCormick and Catlin, 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. sufficiently demonstrating in a court of competent jurisdiction that the 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 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:27 270 -3- (I) "MINOR STREAM RESTORATION ACTIVITY " MEANS ANY OR ALL1 OF THE FOLLOWING ACTIVITIES:2 (A) S TABILIZING THE BANKS OR SUBSTRATE OF A NATURAL 3 STREAM WITH HARD, BIOENGINEERED, OR NATURAL MATERIALS THAT ,4 UNDER LESS THAN EXTREME FLOW CONDITIONS , ALLOW WATER TO FLOW5 DOWNSTREAM, DO NOT CAUSE THE WATER LEVEL TO EXCEED THE6 ORDINARY HIGH WATER MARK , AND MAY INCIDENTALLY INCREASE7 SURFACE AREA OF THE 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 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 ; AND 4 (B) F OR THE PURPOSES OF WILDLAND FIRE MITIGATION ; FLOOD5 MITIGATION; BANK STABILIZATION; WATER QUALITY PROTECTION OR6 RESTORATION; HABITAT, SPECIES, OR ECOSYSTEM RESTORATION ; 7 SOURCE WATER PROTECTION ; INFRASTRUCTURE PROTECTION ; OR8 SEDIMENT AND EROSION MANAGEMENT .9 10 (c) IF 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 ; AND 14 (II) T HE STREAM RESTORATION PROJECT IS NOT AN UNNECESSARY15 DAM OR OTHER OBSTRUCTION . 16 17 (d) THE OWNER OR PROPONENT OF A STREAM RESTORATION18 PROJECT SHALL NOT INSTALL THE STREAM RESTORATION PROJECT IN A19 MANNER THAT ADVERSELY AFFECTS THE FUNCTION OF STRUCTURES USED20 TO DIVERT WATER OR MEASURE WATER FLOW BY HOLDERS OF VESTED21 WATER RIGHTS WITHOUT THE PERMISSION OF THE OWNERS OF THE22 STRUCTURES.23 24 (e) NOTWITHSTANDING ANY PROVISION IN THIS SUBSECTION (9) TO25 THE CONTRARY, NOTHING IN THIS SUBSECTION (9):26 (I) C REATES A PRESUMPTION OF INJURY FOR ANY ACTIVITY THAT 27 270 -5- DOES NOT MEET THE DEFINITION OF A MINOR STREAM RESTORATION1 ACTIVITY PURSUANT TO SUBSECTION (9)(b)(I) OF THIS SECTION;2 (II) CREATES A BASIS FOR A WATER RIGHT , CREDIT, OR OTHER3 RIGHT FOR THE USE OF WATER;4 (III) CREATES PRECEDENT FOR THE LITIGATION OF , CREATES A5 LEGISLATIVE DETERMINATION OF , ALTERS, OR AFFECTS ANY REAL6 PROPERTY INTERESTS, INCLUDING EXPRESS OR PRESCRIPTIVE FLOWAGE7 EASEMENTS AFFECTING LAND ALONG A PUBLIC STREAM HELD BY ANY8 POLITICAL SUBDIVISION OR PERSON;9 (IV) PROHIBITS THE STATE ENGINEER FROM TAKING ANY ACTION10 NECESSARY TO COMPLY WITH AN INTERSTATE COMPACT , INTERSTATE11 APPORTIONMENT DECREE , OR INTERSTATE AGREEMENT;12 (V) ALTERS, AMENDS, OR AFFECTS ANY FEDERAL , STATE, OR13 LOCAL LAW OR REQUIREMENT THAT OTHERWISE APPLIES TO A STREAM14 RESTORATION PROJECT; OR15 (VI) IMPAIRS OR IN ANY WAY AFFECTS THE ABILITY OF ANY16 PERSON TO APPROPRIATE WATER FOR PURPOSES RELATED TO A STREAM17 RESTORATION PROJECT.18 (f) A STREAM RESTORATION PROJECT THAT HAS OBTAINED ANY 19 APPLICABLE PERMITS OR IS UNDER CONSTRUCTION OR COMPLETED BY20 A UGUST 1, 2023 DOES NOT CAUSE MATERIAL INJURY TO ANY VESTED 21 WATER RIGHT AND IS NOT AN UNNECESSARY DAM OR OTHER OBSTRUCTION .22 SECTION 3. Act subject to petition - effective date. This act23 takes effect at 12:01 a.m. on the day following the expiration of the24 ninety-day period after final adjournment of the general assembly; except25 that, if a referendum petition is filed pursuant to section 1 (3) of article V26 of the state constitution against this act or an item, section, or part of this27 270 -6- act within such period, then the act, item, section, or part will not take1 effect unless approved by the people at the general election to be held in2 November 2024 and, in such case, will take effect on the date of the3 official declaration of the vote thereon by the governor.4 270 -7-