Colorado 2024 Regular Session

Colorado House Bill HB1330 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Second Regular Session
2	2	Seventy-fourth General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 24-0807.01 Sarah Lozano x3858
8	8	HOUSE BILL 24-1330
9	9	House Committees Senate Committees
10	10	Energy & Environment
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING MODIFICATIONS OF PROC ESSES TO OBTAIN PERMITS FOR101
14	14	ACTIVITIES THAT IMPACT AIR QUALITY .102
15	15	Bill Summary
16	16	(Note: This summary applies to this bill as introduced and does
17	17	not reflect any amendments that may be subsequently adopted. If this bill
18	18	passes third reading in the house of introduction, a bill summary that
19	19	applies to the reengrossed version of this bill will be available at
20	20	http://leg.colorado.gov
21	21	.)
22	22	Section 1 of the bill clarifies that a request for general permit
23	23	registration does not constitute having a valid construction permit
24	24	(permit).
25	25	Section 1 also requires the division of administration in the
26	26	department of public health and environment (division) or the air quality
27	27	control commission (commission), in evaluating a permit application for
28	28	HOUSE SPONSORSHIP
29	29	Bacon and Willford, Kipp
30	30	SENATE SPONSORSHIP
31	31	Cutter,
32	32	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
33	33	Capital letters or bold & italic numbers indicate new material to be added to existing law.
34	34	Dashes through the words or numbers indicate deletions from existing law. an emitting source (source) that includes an oil and gas system (oil and
35	35	gas system), to:
36	36	! Aggregate emissions from the oil and gas system; and
37	37	! Include emissions from exploration and preproduction
38	38	activities.
39	39	Section 2 requires that the division or the commission only grant
40	40	permits for certain proposed sources in a nonattainment area if:
41	41	! The division or commission determines that the proposed
42	42	source will not contribute to an exceedance of any
43	43	applicable national ambient air quality standard
44	44	(determination);
45	45	! The owner or operator of the proposed source achieves
46	46	emissions reductions of each air pollutant for which the
47	47	nonattainment area is in nonattainment that are equal to or
48	48	greater than the anticipated emissions of the proposed
49	49	source; and
50	50	! The proposed source is not in a disproportionately
51	51	impacted community.
52	52	On and after January 1, 2025, the division or commission must
53	53	base any determination on the modeling of air quality impacts from
54	54	emissions (air quality modeling).
55	55	If a permit is granted after air quality modeling is conducted:
56	56	! Any assumption used in the air quality modeling must be
57	57	included in the permit as a permit condition; and
58	58	! Any averaging time utilized for a permit condition must be
59	59	no greater than the averaging time for any applicable
60	60	national ambient air quality standard.
61	61	Section 3 requires the energy and carbon management commission
62	62	to require that an oil and gas operator obtain a permit from the division
63	63	or the commission before making a final determination on an oil and gas
64	64	permit application.
65	65	Be it enacted by the General Assembly of the State of Colorado:1
66	66	SECTION 1. In Colorado Revised Statutes, amend 25-7-114.22
67	67	as follows:3
68	68	25-7-114.2. Construction permits - oil and gas operations -4
69	69	definitions. (1) A
70	70	S USED IN THIS SECTION, UNLESS THE CONTEXT5
71	71	OTHERWISE REQUIRES:6
72	72	(a) "O
73	73	IL AND GAS FACILITY" HAS THE MEANING SET FORTH IN7
74	74	HB24-1330-2- SECTION 34-60-103 (6.2).1
75	75	(b) "O
76	76	IL AND GAS LOCATION" HAS THE MEANING SET FORTH IN2
77	77	SECTION 34-60-103 (6.4).3
78	78	(c) "O
79	79	IL AND GAS SYSTEM" INCLUDES ALL OF THE OIL AND GAS4
80	80	FACILITIES THAT ARE UNDER COMMON CONTROL OF AN OPERATOR AND5
81	81	THAT ARE EITHER:6
82	82	(I) L
83	83	OCATED AT THE SAME OIL AND GAS LOCATION ; OR7
84	84	(II) L
85	85	OCATED AT DIFFERENT OIL AND GAS LOCATIONS THAT ARE8
86	86	WITHIN TWO MILES OF EACH OTHER, MEASURED FROM THE EDGE OF EACH9
87	87	OIL AND GAS LOCATION, AND THAT USE SHARED EQUIPMENT .10
88	88	(d) "O
89	89	PERATOR" HAS THE MEANING SET FORTH IN SECTION11
90	90	34-60-103
91	91	(6.8).12
92	92	(e) "S
93	93	HARED EQUIPMENT" INCLUDES STORAGE TANKS , PHASE13
94	94	SEPARATORS, NATURAL GAS DEHYDRATORS , FLOWLINES, BOILERS, SPARK14
95	95	IGNITION AND COMPRESSION IGNITION ENGINES , GLYCOL DEHYDRATORS,15
96	96	AMINE SWEETENING UNITS , EMISSIONS CONTROL DEVICES , PIPELINE16
97	97	COMPRESSORS, UNDERGROUND INJECTION WELLS , AND PUMP STATIONS.17
98	98	(2) (a) No
99	99	A person shall NOT construct or substantially alter any18
100	100	building, facility, structure, or installation, except single-family19
101	101	residential structures, or install any machine, equipment, or other device,20
102	102	or commence the conduct of any such activity OF THESE ACTIVITIES, or21
103	103	commence performance of any combinations thereof OF THESE22
104	104	ACTIVITIES, or commence operations of any of the same which THESE23
105	105	ACTIVITIES THAT will or do constitute a new stationary source or a new24
106	106	indirect air pollution source without first obtaining or having a valid25
107	107	construction permit therefor FOR THESE ACTIVITIES from the division or26
108	108	commission, as the case may be; except that no A construction permit27
109	109	HB24-1330
110	110	-3- shall be IS NOT required for new indirect air pollution sources until1
111	111	regulations RULES regarding construction permits for such NEW INDIRECT2
112	112	AIR POLLUTION sources have been promulgated by the commission, but in3
113	113	no event shall regulations RULES governing indirect air pollution sources4
114	114	MUST NOT be more stringent than those required for compliance with the5
115	115	federal act and final rules and regulations adopted pursuant thereto TO6
116	116	THE FEDERAL ACT.7
117	117	(b) Any emission permit validly issued prior to July 1, 1992,8
118	118	pursuant to section 25-7-114, as said THAT section existed prior to July 1,9
119	119	1992, and in effect on or after July 1, 1992, shall be IS deemed to be a10
120	120	valid construction permit issued pursuant to this section. The commission11
121	121	shall designate by regulation RULE those classes of minor or insignificant12
122	122	sources of air pollution which THAT are exempt from the requirement for13
123	123	a permit because of their THE MINOR OR INSIGNIFICANT SOURCE 'S14
124	124	negligible impact on air quality.15
125	125	(c) A
126	126	REQUEST FOR GENERAL PERMIT REGISTRATION DOES NOT16
127	127	CONSTITUTE OBTAINING OR HAVING A VALID CONSTRUCTION PERMIT .17
128	128	(3) I
129	129	N EVALUATING A CONSTRUCTION PERMIT APPLICATION FOR A18
130	130	SOURCE THAT INCLUDES AN OIL AND GAS SYSTEM , INCLUDING IN19
131	131	DETERMINING WHETHER THE OIL AND GAS SYSTEM IS A MAJOR OR MINOR20
132	132	SOURCE AND INCLUDING IN ANY AIR QUALITY MODELING REQUIRED21
133	133	PURSUANT TO SECTION 25-7-114.9 (2)(b)(II)(A), THE DIVISION OR THE22
134	134	COMMISSION, AS APPLICABLE, SHALL:23
135	135	(a) A
136	136	GGREGATE EMISSIONS ACROSS THE OIL AND GAS SYSTEM ; AND24
137	137	(b) I
138	138	NCLUDE EMISSIONS FROM EXPLORATION AND PREPRODUCTION25
139	139	ACTIVITIES.26
140	140	SECTION 2. In Colorado Revised Statutes, add 25-7-114.9 as27
141	141	HB24-1330
142	142	-4- follows:1
143	143	25-7-114.9. Requirements for construction permit applications2
144	144	in a nonattainment area - definitions. (1) A
145	145	S USED IN THIS SECTION,3
146	146	UNLESS THE CONTEXT OTHERWISE REQUIRES :4
147	147	(a) "A
148	148	IR QUALITY MODELING" MEANS THE MODELING OF AIR5
149	149	QUALITY IMPACTS OF EMISSIONS FROM ALL EMISSION UNITS AT A6
150	150	STATIONARY SOURCE THAT IS CONDUCTED PURSUANT TO THE MOST7
151	151	RECENT VERSION OF APPENDIX W OF 40 CFR 51, OR ANY SUCCESSOR8
152	152	FEDERAL REGULATION, AND ANY RELEVANT FEDERAL ENVIRONMENTAL9
153	153	PROTECTION AGENCY GUIDANCE FOR OZONE AND FINE PARTICULATE10
154	154	MATTER PERMIT MODELING .11
155	155	(b) "N
156	156	ONATTAINMENT AIR POLLUTANT " MEANS ANY AIR12
157	157	POLLUTANT, INCLUDING ANY PRECURSOR AIR POLLUTANTS , FOR WHICH A13
158	158	NONATTAINMENT AREA IS IN NONATTAINMENT WITH ANY APPLICABLE14
159	159	NATIONAL AMBIENT AIR QUALITY STANDARD .15
160	160	(c) "N
161	161	ONATTAINMENT AREA " MEANS ANY AREA THAT IS16
162	162	DESIGNATED BY THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY AS17
163	163	BEING IN NONATTAINMENT WITH ANY APPLICABLE NATIONAL AMBIENT AIR18
164	164	QUALITY STANDARD.19
165	165	(2) (a) F
166	166	OR ANY PROPOSED SOURCE IN A NONATTAINMENT AREA20
167	167	THAT IS NOT A MAJOR SOURCE , THE DIVISION OR COMMISSION , AS21
168	168	APPLICABLE, MAY GRANT A CONSTRUCTION PERMIT APPLICATION22
169	169	PURSUANT TO THIS ARTICLE 7 ONLY IF:23
170	170	(I) T
171	171	HE DIVISION OR COMMISSION DETERMINES THAT THE24
172	172	PROPOSED SOURCE WILL NOT CAUSE OR CONTRIBUTE TO AN EXCEEDANCE25
173	173	OF ANY APPLICABLE NATIONAL AMBIENT AIR QUALITY STANDARDS AND26
174	174	WILL COMPLY WITH ALL OTHER APPLICABLE FEDERAL REGULATIONS ;27
175	175	HB24-1330
176	176	-5- (II) THE OWNER OR OPERATOR OF THE PROPOSED SOURCE1
177	177	ACHIEVES EMISSIONS REDUCTIONS OF EACH NONATTAINMENT AIR2
178	178	POLLUTANT FROM EXISTING SOURCES IN THE NONATTAINMENT AREA THAT3
179	179	ARE EQUAL TO OR GREATER THAN THE ANTICIPATED EMISSIONS OF EACH4
180	180	NONATTAINMENT AIR POLLUTANT BY THE PROPOSED SOURCE ; AND5
181	181	(III) T
182	182	HE PROPOSED SOURCE IS NOT LOCATED IN A6
183	183	DISPROPORTIONATELY IMPACTED COMMUNITY .7
184	184	(b) (I) O
185	185	N AND AFTER JANUARY 1, 2025, THE DIVISION OR8
186	186	COMMISSION, AS APPLICABLE, SHALL BASE ANY DETERMINATION MADE9
187	187	PURSUANT TO SUBSECTION (2)(a)(I) OF THIS SECTION ON AIR QUALITY10
188	188	MODELING, WHICH DETERMINATION MUST NOT BE BASED ON AIR QUALITY11
189	189	MONITORING IN LIEU OF AIR QUALITY MODELING .12
190	190	(II) T
191	191	HE AIR QUALITY MODELING DESCRIBED IN SUBSECTION13
192	192	(2)(b)(I)
193	193	OF THIS SECTION MUST INCLUDE:14
194	194	(A) I
195	195	F APPLICABLE, MODELING OF THE AIR QUALITY IMPACTS OF15
196	196	THE EMISSIONS DESCRIBED IN SECTION 25-7-114.2 (3); AND16
197	197	(B) M
198	198	ODELING TO EXAMINE COMPLIANCE WITH THE ONE -HOUR17
199	199	NITROGEN DIOXIDE NATIONAL AMBIENT AIR QUALITY STANDARDS .18
200	200	(c) I
201	201	F A CONSTRUCTION PERMIT APPLICATION IS GRANTED BY THE19
202	202	DIVISION OR COMMISSION, AS APPLICABLE, BASED ON AIR QUALITY20
203	203	MODELING PURSUANT TO SUBSECTION (2)(b)(I) OF THIS SECTION:21
204	204	(I) A
205	205	NY ASSUMPTION USED IN THE AIR QUALITY MODELING MUST22
206	206	BE INCLUDED IN THE CONSTRUCTION PERMIT AS AN ENFORCEABLE PERMIT23
207	207	CONDITION; AND24
208	208	(II) A
209	209	NY AVERAGING TIME UTILIZED FOR AN ENFORCEABLE PERMIT25
210	210	CONDITION DESCRIBED IN SUBSECTION (2)(c)(I) OF THIS SECTION MUST BE26
211	211	NO GREATER THAN THE AVERAGING TIME FOR ANY APPLICABLE NATIONAL27
212	212	HB24-1330
213	213	-6- AMBIENT AIR QUALITY STANDARD .1
214	214	SECTION 3. In Colorado Revised Statutes, 34-60-106, amend2
215	215	(1)(i) and (1)(j); and add (1)(k) as follows:3
216	216	34-60-106. Additional powers of commission - rules -4
217	217	definitions - repeal. (1) The commission also shall require:5
218	218	(i) Certificates of clearance in connection with the transportation6
219	219	and delivery of oil and gas or any product; and7
220	220	(j) Metering or other measuring of oil, gas, or product in pipelines,8
221	221	gathering systems, loading racks, refineries, or other places;
222	222	AND9
223	223	(k) T
224	224	HAT AN OPERATOR APPLYING FOR A PERMIT FROM THE10
225	225	COMMISSION OBTAIN ANY CONSTRUCTION PERMIT REQUIRED BY ARTICLE11
226	226	7
227	227	OF TITLE 25 FOR THE APPLICABLE OIL AND GAS LOCATION FROM THE12
228	228	DIVISION OF ADMINISTRATION IN THE DEPARTMENT OF PUBLIC HEALTH AND13
229	229	ENVIRONMENT OR THE AIR QUALITY CONTROL COMMISSION , AS14
230	230	APPLICABLE, BEFORE MAKING A FINAL DETERMINATION ON THE PERMIT15
231	231	APPLICATION.16
232	232	SECTION 4. Applicability. This act applies to conduct occurring17
233	233	on or after the effective date of this act, including determinations of18
234	234	applications pending on the effective date.19
235	235	SECTION 5. Safety clause. The general assembly finds,20
236	236	determines, and declares that this act is necessary for the immediate21
237	237	preservation of the public peace, health, or safety or for appropriations for22
238	238	the support and maintenance of the departments of the state and state23
239	239	institutions.24
240	240	HB24-1330
241	241	-7-