Colorado 2023 Regular Session

Colorado Senate Bill SB274 Latest Draft

Bill / Enrolled Version Filed 05/09/2023

                            SENATE BILL 23-274
BY SENATOR(S) Winter F., Jaquez Lewis, Priola;
also REPRESENTATIVE(S) Dickson and Lindstedt, Amabile,
Boesenecker, Brown, Herod, Joseph, Kipp, Lindsay, Mabrey, Marshall,
McCormick, Michaelson Jenet, Ricks, Sharbini, Sirota, Snyder, Valdez,
Vigil, Woodrow, McCluskie.
C
ONCERNING WATER QUALITY REGULATION IN THE STATE , AND, IN
CONNECTION THEREWITH
, TRANSFERRING FEE-SETTING AUTHORITY
TO THE WATER QUALITY CONTROL COMMISSION AND MODIFYING THE
MEMBERSHIP OF THE COMMISSION
.
 
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 25-1.5-208, amend
(1)(b) as follows:
25-1.5-208.  Grant program for public water systems and
domestic wastewater treatment works - small communities water and
wastewater grant fund - rules. (1)  The department has, in addition to all
other powers and duties imposed upon it by law, the powers and duties
provided in this section as follows:
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (b)  The department may use up to five TEN percent of the
appropriated funds for the administration and management of such project
grants.
SECTION 2. In Colorado Revised Statutes, 25-1.5-209, amend (2);
and add (3) as follows:
25-1.5-209.  Drinking water fee - drinking water cash fund -
repeal. (2) (a)  All fees collected pursuant to this section shall be
transmitted to the state treasurer, who shall credit them to The drinking
water cash fund which fund is hereby created in the state treasury. Moneys
so collected shall be annually appropriated by the general assembly THE
GENERAL ASSEMBLY SHALL ANNUALLY APPROPRIATE MONEY IN THE CASH
FUND
 to the department for allocation to the division of administration to
operate the drinking water program established in this part 2. The general
assembly shall review expenditures of such moneys
 THE MONEY to assure
that they are THE MONEY IS used only for such purposes. All interest earned
on the investment or deposit of moneys MONEY in the cash fund and all
unappropriated or unencumbered moneys MONEY in the cash fund shall
remain REMAINS in the cash fund and shall DOES not revert to the general
fund or any other fund at the end of any fiscal year or any other time. Any
funds remaining from fees collected prior to the repeal of former section
25-1.5-209, as it existed prior to July 1, 2005, shall be transmitted to the
state treasurer, who shall credit the same to the cash fund.
(b)  ALL FEES COLLECTED PURSUANT TO THIS SECTION BEFORE JULY
1, 2026, OR BEFORE THE DATE THE RULES ADOPTED UNDER SECTION
25-8-210 (1)(a)(I) BECOME EFFECTIVE SHALL BE CREDITED TO THE DRINKING
WATER CASH FUND
.
(c)  O
N AND AFTER JULY 1, 2026, ALL FEES COLLECTED PURSUANT TO
RULES ADOPTED UNDER SECTION 
25-8-210 (1)(a)(I) SHALL BE CREDITED TO
THE DRINKING WATER CASH FUND
.
(3)  S
UBSECTIONS (1) AND (2)(b) OF THIS SECTION AND THIS
SUBSECTION 
(3) ARE REPEALED, EFFECTIVE JULY 1, 2026.
SECTION 3. In Colorado Revised Statutes, 25-8-201, amend (1)(a)
as follows:
PAGE 2-SENATE BILL 23-274 25-8-201.  Water quality control commission created.
(1) (a) (I)  There is created in the department of public health and
environment a water quality control commission, which is a type 1 entity,
as defined in section 24-1-105, and which exercises its powers and performs
its duties and functions under the department of public health and
environment.
(II)  The commission consists of nine citizens of the state appointed
by the governor, with the consent of the senate, for terms of three years;
except that the terms shall
 MUST be staggered so that no more than five
members' terms expire in the same year. Members of the commission must
be appointed so as to achieve geographical representation and to reflect the
various interests in water in the state. At least two members must reside in
that portion of the state that is west of the continental divide. N
O MORE
THAN FIVE MEMBERS OF THE COMMISSION MAY BE AFFILIATED WITH THE
SAME POLITICAL PARTY
.
(III)  A
T LEAST ONE MEMBER OF THE COMMISSION MUST HAVE
AGRICULTURAL EXPERIENCE
, PREFERABLY A MEMBER WITH AGRICULTURAL
EXPERIENCE WHO IS ALSO REGULATED BY THE DIVISION
. AT LEAST THREE
OTHER MEMBERS OF THE COMMISSION MUST BE FROM THE COMMUNITY
REGULATED BY THE DIVISION
, EMPLOYED BY AN ENTITY THAT IS SUBJECT TO
FEES SET PURSUANT TO THIS ARTICLE 
8, AND, TO THE EXTENT PRACTICABLE,
EACH IS EMPLOYED BY AN ENTITY THAT IS SUBJECT TO A DIFFERENT TYPE OF
FEE PURSUANT TO THIS ARTICLE 
8 THAN THE TYPE OF FEE THAT THE
EMPLOYERS OF THE OTHER TWO MEMBERS ARE SUBJECT
.
(IV)  A
 MEMBER OF THE COMMISSION MUST HAVE EXPERIENCE OR
TRAINING IN ONE OR MORE OF THE FOLLOWING AREAS
:
(A)  S
CIENCE;
(B)  E
NGINEERING;
(C)  T
ECHNOLOGY;
(D)  I
NDUSTRY;
(E)  C
ONSTRUCTION;
PAGE 3-SENATE BILL 23-274 (F)  LABOR;
(G)  A
GRICULTURE;
(H)  E
NVIRONMENTAL LAW ;
(I)  E
NVIRONMENTAL POLICY;
(J)  E
NVIRONMENTAL JUSTICE;
(K)  M
UNICIPAL WATER TREATMENT ;
(L)  M
UNICIPAL WASTEWATER TREATMENT ; 
(M)  M
UNICIPAL GOVERNMENT; OR
(N)  COUNTY GOVERNMENT .
SECTION 4. In Colorado Revised Statutes, add 25-8-210 as
follows:
25-8-210.  Fees established administratively - rules - stakeholding
requirement - phase-in period - clean water cash fund - creation -
repeal. (1) (a)  O
N OR BEFORE OCTOBER 31, 2025, THE COMMISSION SHALL
ESTABLISH THE FOLLOWING FEES BY RULE
:
(I)  D
RINKING WATER FEES ASSESSED ON PUBLIC WATER SYSTEMS
PURSUANT TO SECTION 
25-1.5-209 (1), AS THAT SECTION EXISTED PRIOR TO
ITS REPEAL ON 
JULY 1, 2026;
(II)  C
OMMERCE AND INDUSTRY SECTOR PERMITTING FEES ASSESSED
PURSUANT TO SECTION 
25-8-502 (1.1)(b), AS THAT SECTION EXISTED PRIOR
TO ITS REPEAL ON 
JULY 1, 2026;
(III)  C
ONSTRUCTION SECTOR PERMITTING FEES ASSESSED PURSUANT
TO SECTION 
25-8-502 (1.1)(c), AS THAT SECTION EXISTED PRIOR TO ITS
REPEAL ON 
JULY 1, 2026;
(IV)  P
ESTICIDE SECTOR PERMITTING FEES ASSESSED PURSUANT TO
SECTION 
25-8-502 (1.1)(d), AS THAT SECTION EXISTED PRIOR TO ITS REPEAL
PAGE 4-SENATE BILL 23-274 ON JULY 1, 2026;
(V)  P
UBLIC AND PRIVATE UTILITIES SECTOR PERMITTING FEES
PURSUANT TO SECTION 
25-8-502 (1.1)(e), AS THAT SECTION EXISTED PRIOR
TO ITS REPEAL ON 
JULY 1, 2026;
(VI)  M
UNICIPAL SEPARATE STORM SEWERS SYSTEM SECTOR
PERMITTING FEES PURSUANT TO SECTION 
25-8-502 (1.1)(f), AS THAT SECTION
EXISTED PRIOR TO ITS REPEAL ON 
JULY 1, 2026;
(VII)  R
EVIEW FEES ASSESSED PURSUANT TO SECTION 25-8-502 (1.2)
FOR REQUESTS FOR CERTIFICATION UNDER SECTION 401 OF THE FEDERAL
ACT
, AS THAT SECTION EXISTED PRIOR TO ITS REPEAL ON JULY 1, 2026;
(VIII)  P
RELIMINARY EFFLUENT LIMITATION DETERMINATION FEES
ASSESSED PURSUANT TO SECTION 
25-8-502 (1.3)(b), AS THAT SECTION
EXISTED PRIOR TO ITS REPEAL ON 
JULY 1, 2026;
(IX)  W
ASTEWATER SITE APPLICATION AND DESIGN REVIEW FEES
ASSESSED PURSUANT TO SECTION 
25-8-502 (1.3)(c), AS THAT SECTION
EXISTED PRIOR TO ITS REPEAL ON 
JULY 1, 2026;
(X)  O
N-SITE WASTEWATER TREATMENT SYSTEM FEES ASSESSED
PURSUANT TO SECTION 
25-10-107 (3), INCLUDING RULES ESTABLISHING THE
PERCENTAGE OF THE ON
-SITE WASTEWATER TREATMENT SYSTEM FEES
COLLECTED THAT A COUNTY MAY RETAIN TO COVER THE COUNTY
'S
ADMINISTRATIVE COSTS
, AS THAT SECTION EXISTED PRIOR TO ITS REPEAL ON
JULY 1, 2026; AND
(XI)  BIOSOLIDS MANAGEMENT PROGRAM FEES ASSESSED PURSUANT
TO SECTION 
30-20-110.5 (1), AS THAT SECTION EXISTED PRIOR TO ITS REPEAL
ON 
JULY 1, 2026.
(b)  T
HE COMMISSION SHALL SET THE FEES AND PERIODICALLY
ADJUST THE FEES
, AND THE GENERAL ASSEMBLY MAY , BY BILL, ANNUALLY
ADJUST THE FEES
, IN AN AMOUNT SUFFICIENT TO COVER THE DIVISION 'S
DIRECT AND INDIRECT COSTS ASSOCIATED WITH ADMINISTERING AND
IMPLEMENTING THE FEDERAL ACT
, THE FEDERAL "SAFE DRINKING WATER
ACT", 42 U.S.C. SEC. 300f ET SEQ., SECTION 25-1-114.1, PART 2 OF ARTICLE
1.5 OF THIS TITLE 25, THIS ARTICLE 8, AND THE "ON-SITE WASTEWATER
PAGE 5-SENATE BILL 23-274 TREATMENT SYSTEMS ACT", ARTICLE 10 OF THIS TITLE 25.
(c) (I)  T
HE FEE-SETTING RULES ADOPTED PURSUANT TO SUBSECTION
(1)(a) OF THIS SECTION MUST BECOME EFFECTIVE ON OR BEFORE JANUARY
1, 2026. IF THE COMMISSION ADOPTS RULES AUTHORIZING THE DIVISION TO
PHASE IN THE FEE
-SETTING RULES, THE DIVISION MAY REQUIRE PERMIT
APPLICANTS
, PERMIT HOLDERS, AND PUBLIC WATER SYSTEMS TO PAY FEES AS
SET BY THE FEE
-SETTING RULES INSTEAD OF THE FEES SET FORTH IN STATUTE
BEFORE 
JULY 1, 2026.
(II)  I
F THE COMMISSION ESTABLISHES A PROCESS FOR THE DIVISION 'S
PHASE IN OF THE FEE
-SETTING RULES PURSUANT TO SUBSECTION (1)(c)(I) OF
THIS SECTION
, THE COMMISSION'S RULES MUST ESTABLISH A PROCESS FOR
THE DIVISION
'S PHASE IN OF THE FEE -SETTING RULES. THE PROCESS
ESTABLISHED BY RULE MUST INCLUDE NOTICE TO PERMIT APPLICANTS
,
PERMIT HOLDERS, AND PUBLIC WATER SYSTEMS REGARDING THE PROCESS ,
INCLUDING REQUIREMENTS TO POST THE PROCESS ON THE DIVISION 'S
WEBSITE AND ENGAGE IN COMMUNITY OUTREACH REGARDING THE PROCESS
.
(III)  T
HIS SUBSECTION (1)(c) IS REPEALED, EFFECTIVE SEPTEMBER
1, 2027.
(2) (a)  B
EFORE THE COMMISSION ADOPTS THE FEE -SETTING RULES
PURSUANT TO SUBSECTION
 (1)(a) OF THIS SECTION, OR ADOPTS ANY
SUBSEQUENT ADJUSTMENTS TO THE FEES
, AND IN ACCORDANCE WITH
SECTION 
25-8-502 (1.5)(c)(I)(B), THE DEPARTMENT OF PUBLIC HEALTH AND
ENVIRONMENT SHALL CONDUCT OUTREACH TO OBTAIN STAKEHOLDER INPUT
REGARDING THE TOTAL FUNDING FOR THE DIVISION
, INCLUDING FEDERAL
MONEY
, MONEY FROM THE GENERAL FUND , AND ALL CASH FEES.
(b)  T
HROUGH THE STAKEHOLDER PROCESS , THE DEPARTMENT OF
PUBLIC HEALTH AND ENVIRONMENT SHALL IDENTIFY THE FEE REVENUE
NEEDED FOR EVALUATION OF THE FEASIBILITY OF TREATMENT METHODS
REQUIRED TO MEET WATER QUALITY STANDARDS AND OTHE R REGULATIONS
ADOPTED OR PROPOSED FOR ADOPTION
, INCLUDING THE FUNDING NEEDED:
(I)  T
O SUPPORT THE DEVELOPMENT OF VARIANCES ;
(II)  T
O IMPROVE PERMIT ISSUANCE PROCESSES TO INCREASE
EFFICIENCY AND FACILITATE THE TIMELY ISSUANCE OF NEW PERMITS
;
PAGE 6-SENATE BILL 23-274 (III)  FOR RENEWAL PERMITS, PERMIT MODIFICATIONS, AND REDUCING
PERMIT BACKLOG
; AND
(IV)  FOR THE PREPARATION OF COST -BENEFIT ANALYSES AND
REGULATORY ANALYSES WHEN REQUIRED PURSUANT TO SECTION 
24-4-103
(2.5)
 OR (4.5) OF THE "STATE ADMINISTRATIVE PROCEDURE ACT".
(c)  I
N CONDUCTING STAKEHOLDER OUTREACH , THE DEPARTMENT OF
PUBLIC HEALTH AND ENVIRONMENT SHALL DISCUSS WITH STAKEHOLDERS
THE OPTIONS FOR SETTING A CAP ON THE AMOUNT OF FEE INCREASES
.
(d)  T
HROUGH THE STAKEHOLDER PROCESS , THE DEPARTMENT OF
PUBLIC HEALTH AND ENVIRONMENT SHALL SEEK INPUT FROM
:
(I)  O
WNERS AND OPERATORS OF REGULATED DRINKING WATER
SYSTEMS
;
(II)  P
ERMIT HOLDERS;
(III)  C
OUNTY REPRESENTATIVES;
(IV)  R
EPRESENTATIVES OF OTHER LOCAL GOVERNMENTS ;
(V)  C
ONSERVATION GROUPS;
(VI)  E
NVIRONMENTAL JUSTICE GROUPS ; AND
(VII)  COMMUNITY MEMBERS , INCLUDING MEMBERS OF
DISPROPORTIONATELY IMPACTED COMMUNITIES AS DEFINED IN SECTION
24-4-109 (2)(b)(II).
(e)  T
HE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT SHALL
CONDUCT OUTREACH TO AND ENGAGEMENT OF DISPROPORTIONATELY
IMPACTED COMMUNITIES PURSUANT TO THIS SUBSECTION 
(2) IN
ACCORDANCE WITH SECTION 
24-4-109 (3).
(3) (a) (I)  U
PON THE EFFECTIVE DATE OF THE RULES ADOPTED
PURSUANT TO SUBSECTION
 (1)(a) OF THIS SECTION AND UNTIL JUNE 30, 2026,
THE DIVISION SHALL TRANSMIT:
PAGE 7-SENATE BILL 23-274 (A)  THE FEES COLLECTED PURSUANT TO THE COMMISSION 'S
FEE
-SETTING RULES ADOPTED UNDER SUBSECTIONS (1)(a)(II) TO (1)(a)(XI)
OF THIS SECTION TO THE STATE TREASURER, WHO SHALL CREDIT THE FEES AS
DIRECTED BY THE DIVISION
, EITHER TO THE CLEAN WATER CASH FUND
CREATED IN SUBSECTION 
(4) OF THIS SECTION OR TO THE STATUTORY FUND
INTO WHICH SUCH FEES WERE TRANSMITTED BEFORE THE EFFECTIVE DATE OF
THIS SECTION
; AND
(B)  THE FEES COLLECTED PURSUANT TO THE COMMISSION 'S
FEE
-SETTING RULES ADOPTED UNDER SUBSECTION (1)(a)(I) OF THIS SECTION
TO THE STATE TREASURER
, WHO SHALL CREDIT THE FEES TO THE DRINKING
WATER CASH FUND CREATED IN SECTION 
25-1.5-209 (2).
(II)  T
HIS SUBSECTION (3)(a) IS REPEALED, EFFECTIVE SEPTEMBER 1,
2026.
(b)  O
N AND AFTER JULY 1, 2026, THE DIVISION SHALL TRANSMIT:
(I)  T
HE FEES COLLECTED PURSUANT TO THE COMMISSION 'S
FEE
-SETTING RULES ADOPTED UNDER SUBSECTIONS (1)(a)(II) TO (1)(a)(XI)
OF THIS SECTION TO THE STATE TREASURER, WHO SHALL CREDIT THE FEES TO
THE CLEAN WATER CASH FUND CREATED IN SUBSECTION 
(4) OF THIS SECTION;
AND
(II)  THE FEES COLLECTED PURSUANT TO THE COMMISSION 'S
FEE
-SETTING RULES ADOPTED UNDER SUBSECTION (1)(a)(I) OF THIS SECTION
TO THE STATE TREASURER
, WHO SHALL CREDIT THE FEES TO THE DRINKING
WATER CASH FUND CREATED IN SECTION 
25-1.5-209 (2).
(4) (a)  T
HE CLEAN WATER CASH FUND IS CREATED IN THE STATE
TREASURY
. THE FUND CONSISTS OF:
(I)  F
EES COLLECTED PURSUANT TO THE COMMISSION 'S FEE-SETTING
RULES ADOPTED PURSUANT TO SUBSECTIONS
 (1)(a)(II) TO (1)(a)(XI) OF THIS
SECTION
;
(II)  A
NY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY
APPROPRIATE OR TRANSFER TO THE FUND
; AND
(III)  ANY FEDERAL FUNDS CREDITED TO THE FUND .
PAGE 8-SENATE BILL 23-274 (b)  THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE CLEAN
WATER CASH FUND TO THE FUND
.
(c)  T
HE GENERAL ASSEMBLY SHALL ANNUALLY APPROPRIATE MONEY
FROM THE SOURCES SPECIFIED IN SUBSECTIONS
 (1)(a)(I) AND (1)(a)(II) OF
THIS SECTION IN THE CLEAN WATER CASH FUND TO THE DEPARTMENT FOR
USE BY THE DIVISION FOR THE DIVISION
'S ADMINISTRATION AND
IMPLEMENTATION OF THE FEDERAL ACT AND THIS ARTICLE 
8.
SECTION 5. In Colorado Revised Statutes, 25-8-502, amend
(1.1)(c)(IV) introductory portion, (1.7)(a)(I) introductory portion, and
(1.7)(a)(II); repeal (1.7)(a)(I)(B); and add (1.8) as follows:
25-8-502.  Application - definitions - fees - funds created - public
participation - repeal. (1.1)  For each regulated activity listed in this
subsection (1.1), the division may assess an annual permit fee and a
nonrefundable permit application fee for new permits that must equal fifty
percent of the annual permit fee. The full amount of the application fee is
credited toward the annual permit fee. All such fees must be in accordance
with the following schedules:
(c)  The construction sector includes annual fee schedules for
regulated activities associated with construction activities as follows:
(IV)  The division shall use the 
CONSTRUCTION SECTOR FEE revenue
generated by the fees set forth in subsections (1.1)(c)(II)(G) to
(1.1)(c)(II)(K) and (1.1)(c)(III) of this section COLLECTED PURSUANT TO
THIS SECTION OR
, ON AND AFTER JULY 1, 2026, PURSUANT TO COMMISSION
RULES ADOPTED UNDER SECTION 
25-8-210 (1)(a)(III), to continue to fund the
administration and oversight of the construction sector, and shall use the
increased revenue, when compared with the revenue generated by the
corresponding fees as they existed on June 30, 2015, to fund new
INCLUDING services provided under the alternative compliance assurance
model. The division shall not use the increased revenue to fund additional
enforcement staff The division may use the increased revenue for the
following purposes UNLESS SUCH FUNDING IS INCLUDED IN A COMMISSION
FEE
-SETTING RULE. AN ALTERNATIVE COMPLIANCE ASSURANCE MODEL
INCLUDES
:
PAGE 9-SENATE BILL 23-274 (1.7) (a)  The department of public health and environment shall
report annually to:
(I)  The senate agriculture and natural resources committee and the
house of representatives agriculture, livestock WATER, and natural resources
committee, or their successor committees, on:
(B)  The clean water program. The report must include the number
of permits processed, the number of applications pending for new and
amended permits, the length of time the permits remain in the system prior
to issuance, the number of inspections conducted, the number of site
application and design reviews completed, the number of enforcement
actions taken, the costs associated with each sector specified in subsections
(1.1), (1.2), and (1.3) of this section, the number of full-time equivalents
assigned to and actively processing permits, the number of full-time
equivalents assigned to and actively conducting inspections, the number of
full-time equivalents assigned to and actively conducting site application
and design reviews, the number of full-time equivalents assigned to and
actively conducting enforcement actions, and the number of full-time
equivalents assigned to and actively developing rules and standards. The
department shall inform the committees regarding all new standards and
rules to be proposed within the subsequent year. The department shall
submit the report on or before March 31 of each year. Commencing in
2017, the department shall develop baseline information for reporting.
Commencing in 2018, the department shall provide information on
improvements that have been made in comparison to the baseline
information and information on the barriers to making improvements.
(II)  The joint budget committee by November 1 of each year
regarding the fee revenue received from each sector specified in subsections
(1.1), (1.2), and (1.3) SUBSECTION (1.1)(a) of this section, including
expenditures by fund source and revenues by fund and sector source based
on the November 1 request.
(1.8) (a)  O
N JUNE 30, 2026, THE STATE TREASURER SHALL TRANSFER
ANY UNEXPENDED AND UNENCUMBERED MONEY REMAINING IN THE
FOLLOWING CASH FUNDS TO THE CLEAN WATER CASH FUND CREATED IN
SECTION 
25-8-210 (4)(a):
(I)  T
HE COMMERCE AND INDUSTRY SECTOR FUND CREATED IN
PAGE 10-SENATE BILL 23-274 SUBSECTION (1.5)(a)(I) OF THIS SECTION;
(II)  T
HE CONSTRUCTION SECTOR FUND CREATED IN SUBSECTION
(1.5)(a)(II) OF THIS SECTION;
(III)  T
HE PESTICIDES SECTOR FUND CREATED IN SUBSECTION
(1.5)(a)(III) OF THIS SECTION;
(IV)  T
HE MUNICIPAL SEPARATE STORM SEWER SYSTEM SECTOR FUND
CREATED IN SUBSECTION
 (1.5)(a)(IV) OF THIS SECTION; AND
(V)  THE PUBLIC AND PRIVATE UTILITIES SECTOR FUND CREATED IN
SUBSECTION
 (1.5)(a)(V) OF THIS SECTION.
(b)  S
UBSECTIONS (1.1)(b), (1.1)(c), (1.1)(d), (1.1)(e), (1.1)(f), (1.2),
(1.3),
 AND (1.5) OF THIS SECTION AND THIS SUBSECTION (1.8) ARE REPEALED,
EFFECTIVE JULY 1, 2026.
SECTION 6. In Colorado Revised Statutes, 30-20-110.5, add (4)
as follows:
30-20-110.5.  Beneficial use of biosolids - water quality control
commission to set fees - fund created - repeal. (4) (a)  O
N JUNE 30, 2026,
THE STATE TREASURER SHALL TRANSFER ANY UNEXPENDED AND
UNENCUMBERED MONEY REMAINING IN THE BIOSOLIDS MANAGEMENT
PROGRAM FUND CREATED IN SUBSECTION 
(3) OF THIS SECTION TO THE CLEAN
WATER CASH FUND CREATED IN SECTION 
25-8-210 (4)(a).
(b)  T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2026.
SECTION 7. In Colorado Revised Statutes, repeal 25-8-506 as
follows:
25-8-506.  Nuclear and radioactive wastes. (1)  It is unlawful for
any person to discharge, deposit, or dispose of any radioactive waste
underground in liquid, solid, or explosive form unless the division, upon
application of the person desiring to undertake such activity and after
investigation and hearing, has first found, based upon a preponderance of
the evidence, that there will be no significant pollution resulting therefrom
or that the pollution, if any, will be limited to waters in a specified limited
PAGE 11-SENATE BILL 23-274 area from which there is no significant migration.
(2) (a)  In such case the division shall issue a permit for the proposed
activity, upon the payment of a fee of one thousand dollars. The division
may include in such permit issued under this subsection (2) such reasonable
terms and conditions as it may from time to time require to implement this
section in a manner consistent with the purposes of this article. The terms
or conditions which may be imposed shall include, without limitation, those
with respect to duration of use or operation; monitoring; reporting; volume
of discharge or disposal; treatment of wastes; and the deposit with the state
treasurer of a bond, with or without surety as the division may in its
discretion require, or other security, to assure that the permitted activities
will be conducted in compliance with the terms and conditions of the
permit, and that upon abandonment, cessation, or interruption of the
permitted activities or facilities, appropriate measures will be taken to
protect the waters of the state. Other than relief from provisions of this
article to the extent specified in this subsection (2), no permit issued
pursuant to this subsection (2) shall relieve any person of any duty or
liability to the state or to any other person existing or arising under any
statute or under common law.
(b)  Notwithstanding the amount specified for the fee in paragraph
(a) of this subsection (2), the commission by rule or as otherwise provided
by law may reduce the amount of the fee if necessary pursuant to section
24-75-402 (3), C.R.S., to reduce the uncommitted reserves of the fund to
which all or any portion of the fee is credited. After the uncommitted
reserves of the fund are sufficiently reduced, the commission by rule or as
otherwise provided by law may increase the amount of the fee as provided
in section 24-75-402 (4), C.R.S.
(3)  No permit for the discharge, deposit, or disposal of nuclear or
radioactive waste underground shall be required in any case where
groundwater quality regulation is conducted under article 11 of this title, or
under the "Uranium Mill Tailings Radiation Control Act of 1978", Pub.L.
95-604, or a successor statute, where such regulation is determined by the
division to comply with the standard set forth in subsection (1) of this
section.
(4) (a)  The provisions of this section revise and replace, in part,
section 25-8-505 of this article, the "Colorado Water Quality Control Act",
PAGE 12-SENATE BILL 23-274 as said article existed prior to July 1, 1981. All permits issued pursuant to
said section 25-8-505 prior to July 1, 1981, shall be deemed a permit issued
pursuant to this section and subject to the standards of subsection (1) of this
section unless or until:
(I)  Such permitted activities are exempted by the provisions of
subsection (3) of this section. In such case, all permits issued pursuant to
said section 25-8-505 shall terminate and have no effect whatsoever; or
(II)  Such permitted activities are the subject of a new permit issued
pursuant to this section.
(b)  Repealed.
SECTION 8. In Colorado Revised Statutes, 25-10-107, add (4) as
follows:
25-10-107.  Fees - repeal. (4)  S
UBSECTION (3) OF THIS SECTION AND
THIS SUBSECTION 
(4) ARE REPEALED, EFFECTIVE JULY 1, 2026.
SECTION 9. In Colorado Revised Statutes, amend 25-8-305 as
follows:
25-8-305.  Annual report - repeal. (1) (a)  Notwithstanding section
24-1-136 (11)(a)(I), On or before October 1 of each year, the division
through the executive director shall report to the commission on the
effectiveness of this article
 ARTICLE 8 and shall include in such report any
recommendations it THE DIVISION may have with respect to any regulatory
or legislative changes that may be needed or desired. The report must
include the then-current 
MONITORING information that has been obtained
pursuant to section 25-8-303. and information concerning the status of the
division's implementation of the discharge permit program established in
part 5 of this article.
(b)  The EXECUTIVE DIRECTOR SHALL ALSO SUBMIT THE report shall
be filed with TO the house OF REPRESENTATIVES agriculture, livestock
WATER, and natural resources committee and the senate agriculture AND
natural resources and energy committee, or any THEIR successor
committees. N
OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THIS
REPORTING REQUIREMENT CONTINUES INDEFINITELY
.
PAGE 13-SENATE BILL 23-274 (2)  THE ANNUAL REPORT DESCRIBED IN SUBSECTION (1) OF THIS
SECTION MUST INCLUDE INFORMATION ON THE DIVISION
'S:
(a)  I
MPLEMENTATION OF THE DISCHARGE PERMITTING PROGRAM
ESTABLISHED IN PART 
5 OF THIS ARTICLE 8;
(b)  I
NSPECTIONS PERFORMED;
(c)  E
NFORCEMENT ACTIONS UNDER THIS ARTICLE 8;
(d)  E
STABLISHMENT OF ANY NEW RULES AND STANDARDS ;
(e)  A
SSESSMENT OF ANY EMERGING TRENDS THAT THE DIVISION
PERCEIVES IN ISSUES PERTAINING TO WATER QUALITY
;
(f)  T
HE RATIO OF GENERAL FUND APPROPRIATIONS TO CASH FUND
APPROPRIATIONS THAT WERE AUTHORIZED FOR THE STATE FISCAL YEAR
IMMEDIATELY PRECEDING THE DATE OF THE REPORT
; AND
(g)  REVENUE AND EXPENDITURES , INCLUDING FOR THE DIVISION'S
GENERAL ADMINISTRATION NEEDS
, THE DIVISION'S ADMINISTRATION OF THE
CLEAN WATER AND DRINKING WATER PROGRAMS
, AND THE DIVISION'S
ALLOCATION OF ANY INCREASED FEES ESTABLISHED THROUGH SECTION
25-8-210 FOR SERVICES THAT THE DIVISION PROVIDES . THE DEPARTMENT
SHALL PRESENT THIS INFORMATION AS PART OF THE DEPARTMENT
'S ANNUAL
"SMART ACT" PRESENTATION PURSUANT TO SECTION 2-7-203.
(3) (a)  F
OR A REPORT THAT THE DIVISION SUBMITS ON OR BEFORE
OCTOBER 1, 2025, THE REPORT MUST INCLUDE THE TOTAL PERMIT FEE
REVENUE RECEIVED IN THE PREVIOUS TWELVE MONTHS
, AND THE DIVISION'S
DIRECT AND INDIRECT COSTS TO ADMINISTER THE PERMITS
, FOR THE
FOLLOWING SECTOR
-SPECIFIC PERMITS, REVIEWS, OR DETERMINATIONS:
(I)  T
HE COMMERCE AND INDUSTRY SECTOR PURSUANT TO SECTION
25-8-502 (1.1)(b);
(II)  T
HE CONSTRUCTION SECTOR PURSUANT TO SECTION 25-8-502
(1.1)(c);
(III)  T
HE PESTICIDE SECTOR PURSUANT TO SECTION 25-8-502
PAGE 14-SENATE BILL 23-274 (1.1)(d);
(IV)  T
HE PUBLIC AND PRIVATE UTILITIES SECTOR PURSUANT TO
SECTION 
25-8-502 (1.1)(e);
(V)  T
HE MUNICIPAL SEPARATE STORM SEWER SYSTEM SECTOR
PURSUANT TO SECTION 
25-8-502 (1.1)(f);
(VI)  T
HE REVIEWS PERFORMED PURSUANT TO SECTION 25-8-502
(1.2)
 FOR REQUESTS FOR CERTIFICATION UNDER SECTION 401 OF THE
FEDERAL ACT
;
(VII)  T
HE PRELIMINARY EFFLUENT LIMITATION DETERMINATIONS
PERFORMED PURSUANT TO SECTION 
25-8-502 (1.3)(b); AND
(VIII)  THE WASTEWATER SITE APPLICATIONS AND DESIGN REVIEWS
PERFORMED PURSUANT TO SECTION 
25-8-502 (1.3)(c).
(b)  T
HIS SUBSECTION (3) IS REPEALED, EFFECTIVE JULY 1, 2026.
(4) (a)  F
OR THE REPORT THAT THE DIVISION SUBMITS IN 2025, THE
REPORT MUST INCLUDE
:
(I)  A
 DESCRIPTION OF THE FEE STRUCTURE PROPOSED OR INCLUDED
IN RULES THAT THE COMMISSION HAS PROPOSED OR ADOPTED PURSUANT TO
SECTION 
25-8-210 (1)(a);
(II)  I
F THE RULES PROPOSED OR ADOPTED PURSUANT TO SECTION
25-8-210 (1)(a) MODIFY A FEE STRUCTURE SET FORTH IN STATUTE , THE
REASONS FOR THE CHANGE IN THE FEE STRUCTURE
; AND
(III)  A SUMMARY OF OPTIONS FOR SETTING A CAP ON THE AMOUNT
OF FEE INCREASES AND THE DEPARTMENT OF PUBLIC HEALTH AND
ENVIRONMENT
'S RECOMMENDATIONS ON SETTING A CAP BASED ON
STAKEHOLDER FEEDBACK
.
(b)  T
HIS SUBSECTION (4) IS REPEALED, EFFECTIVE JULY 1, 2026.
SECTION 10. In Colorado Revised Statutes, 25-8-205, amend
(1)(e) as follows:
PAGE 15-SENATE BILL 23-274 25-8-205.  Control regulations. (1)  The commission may
promulgate control regulations for the following purposes:
(e)  To describe requirements, prohibitions, standards, and
concentration limitations on the use and disposal of biosolids to protect
public health and to prevent the discharge of pollutants into state waters,
except as authorized by permit. The commission requirements described
pursuant to this paragraph (e) shall be no
 SUBSECTION (1)(e) MUST NOT BE
more restrictive than the requirements adopted for solid wastes disposal	sites and facilities pursuant to part 1 of article 20 of title 30, C.R.S.,
 except
as necessary to be consistent with section 405 of the federal act. Fees shall
MUST be established as set forth in section 30-20-110.5, C.R.S., and the
commission shall have no authority to levy additional or duplicative fees
RULES ADOPTED BY THE COMMISSION PURSUANT TO SECTION 25-8-210.
SECTION 11. In Colorado Revised Statutes, 30-20-113, amend (9)
as follows:
30-20-113.  Inspection - enforcement - nuisances - violations -
civil penalty. (9)  Notwithstanding any other provision of this part 1 or part
10 of this article other than section 30-20-110.5 ARTICLE 20, the processing,
application, storage, or composting of biosolids or other materials under
rules promulgated pursuant to section 25-8-205 (1)(e) C.R.S., shall be
 ARE
excluded from this part 1 and part 10 of this article ARTICLE 20.
SECTION 12. Effective date. (1)  Except as provided in subsection
(2) of this section, this act takes effect upon passage.
(2)  Section 25-8-205, as amended in section 10 of this act, and
section 30-20-113, as amended in section 11 of this act, take effect July 1,
2026.
SECTION 13. Safety clause. The general assembly hereby finds,
PAGE 16-SENATE BILL 23-274 determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________  ____________________________
Steve Fenberg
Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________  ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
            APPROVED________________________________________
                                                        (Date and Time)
                              _________________________________________
                             Jared S. Polis
                             GOVERNOR OF THE STATE OF COLORADO
PAGE 17-SENATE BILL 23-274