Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0807.01 Sarah Lozano x3858
HOUSE BILL 24-1330
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
C
ONCERNING MODIFICATIONS OF PROC ESSES TO OBTAIN PERMITS FOR101
ACTIVITIES THAT IMPACT AIR QUALITY .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
.)
Section 1 of the bill clarifies that a request for general permit
registration does not constitute having a valid construction permit
(permit).
Section 1 also requires the division of administration in the
department of public health and environment (division) or the air quality
control commission (commission), in evaluating a permit application for
HOUSE SPONSORSHIP
Bacon and Willford, Kipp
SENATE SPONSORSHIP
Cutter,
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. an emitting source (source) that includes an oil and gas system (oil and
gas system), to:
! Aggregate emissions from the oil and gas system; and
! Include emissions from exploration and preproduction
activities.
Section 2 requires that the division or the commission only grant
permits for certain proposed sources in a nonattainment area if:
! The division or commission determines that the proposed
source will not contribute to an exceedance of any
applicable national ambient air quality standard
(determination);
! The owner or operator of the proposed source achieves
emissions reductions of each air pollutant for which the
nonattainment area is in nonattainment that are equal to or
greater than the anticipated emissions of the proposed
source; and
! The proposed source is not in a disproportionately
impacted community.
On and after January 1, 2025, the division or commission must
base any determination on the modeling of air quality impacts from
emissions (air quality modeling).
If a permit is granted after air quality modeling is conducted:
! Any assumption used in the air quality modeling must be
included in the permit as a permit condition; and
! Any averaging time utilized for a permit condition must be
no greater than the averaging time for any applicable
national ambient air quality standard.
Section 3 requires the energy and carbon management commission
to require that an oil and gas operator obtain a permit from the division
or the commission before making a final determination on an oil and gas
permit application.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, amend 25-7-114.22
as follows:3
25-7-114.2. Construction permits - oil and gas operations -4
definitions. (1) A
S USED IN THIS SECTION, UNLESS THE CONTEXT5
OTHERWISE REQUIRES:6
(a) "O
IL AND GAS FACILITY" HAS THE MEANING SET FORTH IN7
HB24-1330-2- SECTION 34-60-103 (6.2).1
(b) "O
IL AND GAS LOCATION" HAS THE MEANING SET FORTH IN2
SECTION 34-60-103 (6.4).3
(c) "O
IL AND GAS SYSTEM" INCLUDES ALL OF THE OIL AND GAS4
FACILITIES THAT ARE UNDER COMMON CONTROL OF AN OPERATOR AND5
THAT ARE EITHER:6
(I) L
OCATED AT THE SAME OIL AND GAS LOCATION ; OR7
(II) L
OCATED AT DIFFERENT OIL AND GAS LOCATIONS THAT ARE8
WITHIN TWO MILES OF EACH OTHER, MEASURED FROM THE EDGE OF EACH9
OIL AND GAS LOCATION, AND THAT USE SHARED EQUIPMENT .10
(d) "O
PERATOR" HAS THE MEANING SET FORTH IN SECTION11
34-60-103
(6.8).12
(e) "S
HARED EQUIPMENT" INCLUDES STORAGE TANKS , PHASE13
SEPARATORS, NATURAL GAS DEHYDRATORS , FLOWLINES, BOILERS, SPARK14
IGNITION AND COMPRESSION IGNITION ENGINES , GLYCOL DEHYDRATORS,15
AMINE SWEETENING UNITS , EMISSIONS CONTROL DEVICES , PIPELINE16
COMPRESSORS, UNDERGROUND INJECTION WELLS , AND PUMP STATIONS.17
(2) (a) No
A person shall NOT construct or substantially alter any18
building, facility, structure, or installation, except single-family19
residential structures, or install any machine, equipment, or other device,20
or commence the conduct of any such activity OF THESE ACTIVITIES, or21
commence performance of any combinations thereof OF THESE22
ACTIVITIES, or commence operations of any of the same which THESE23
ACTIVITIES THAT will or do constitute a new stationary source or a new24
indirect air pollution source without first obtaining or having a valid25
construction permit therefor FOR THESE ACTIVITIES from the division or26
commission, as the case may be; except that no A construction permit27
HB24-1330
-3- shall be IS NOT required for new indirect air pollution sources until1
regulations RULES regarding construction permits for such NEW INDIRECT2
AIR POLLUTION sources have been promulgated by the commission, but in3
no event shall regulations RULES governing indirect air pollution sources4
MUST NOT be more stringent than those required for compliance with the5
federal act and final rules and regulations adopted pursuant thereto TO6
THE FEDERAL ACT.7
(b) Any emission permit validly issued prior to July 1, 1992,8
pursuant to section 25-7-114, as said THAT section existed prior to July 1,9
1992, and in effect on or after July 1, 1992, shall be IS deemed to be a10
valid construction permit issued pursuant to this section. The commission11
shall designate by regulation RULE those classes of minor or insignificant12
sources of air pollution which THAT are exempt from the requirement for13
a permit because of their THE MINOR OR INSIGNIFICANT SOURCE 'S14
negligible impact on air quality.15
(c) A
REQUEST FOR GENERAL PERMIT REGISTRATION DOES NOT16
CONSTITUTE OBTAINING OR HAVING A VALID CONSTRUCTION PERMIT .17
(3) I
N EVALUATING A CONSTRUCTION PERMIT APPLICATION FOR A18
SOURCE THAT INCLUDES AN OIL AND GAS SYSTEM , INCLUDING IN19
DETERMINING WHETHER THE OIL AND GAS SYSTEM IS A MAJOR OR MINOR20
SOURCE AND INCLUDING IN ANY AIR QUALITY MODELING REQUIRED21
PURSUANT TO SECTION 25-7-114.9 (2)(b)(II)(A), THE DIVISION OR THE22
COMMISSION, AS APPLICABLE, SHALL:23
(a) A
GGREGATE EMISSIONS ACROSS THE OIL AND GAS SYSTEM ; AND24
(b) I
NCLUDE EMISSIONS FROM EXPLORATION AND PREPRODUCTION25
ACTIVITIES.26
SECTION 2. In Colorado Revised Statutes, add 25-7-114.9 as27
HB24-1330
-4- follows:1
25-7-114.9. Requirements for construction permit applications2
in a nonattainment area - definitions. (1) A
S USED IN THIS SECTION,3
UNLESS THE CONTEXT OTHERWISE REQUIRES :4
(a) "A
IR QUALITY MODELING" MEANS THE MODELING OF AIR5
QUALITY IMPACTS OF EMISSIONS FROM ALL EMISSION UNITS AT A6
STATIONARY SOURCE THAT IS CONDUCTED PURSUANT TO THE MOST7
RECENT VERSION OF APPENDIX W OF 40 CFR 51, OR ANY SUCCESSOR8
FEDERAL REGULATION, AND ANY RELEVANT FEDERAL ENVIRONMENTAL9
PROTECTION AGENCY GUIDANCE FOR OZONE AND FINE PARTICULATE10
MATTER PERMIT MODELING .11
(b) "N
ONATTAINMENT AIR POLLUTANT " MEANS ANY AIR12
POLLUTANT, INCLUDING ANY PRECURSOR AIR POLLUTANTS , FOR WHICH A13
NONATTAINMENT AREA IS IN NONATTAINMENT WITH ANY APPLICABLE14
NATIONAL AMBIENT AIR QUALITY STANDARD .15
(c) "N
ONATTAINMENT AREA " MEANS ANY AREA THAT IS16
DESIGNATED BY THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY AS17
BEING IN NONATTAINMENT WITH ANY APPLICABLE NATIONAL AMBIENT AIR18
QUALITY STANDARD.19
(2) (a) F
OR ANY PROPOSED SOURCE IN A NONATTAINMENT AREA20
THAT IS NOT A MAJOR SOURCE , THE DIVISION OR COMMISSION , AS21
APPLICABLE, MAY GRANT A CONSTRUCTION PERMIT APPLICATION22
PURSUANT TO THIS ARTICLE 7 ONLY IF:23
(I) T
HE DIVISION OR COMMISSION DETERMINES THAT THE24
PROPOSED SOURCE WILL NOT CAUSE OR CONTRIBUTE TO AN EXCEEDANCE25
OF ANY APPLICABLE NATIONAL AMBIENT AIR QUALITY STANDARDS AND26
WILL COMPLY WITH ALL OTHER APPLICABLE FEDERAL REGULATIONS ;27
HB24-1330
-5- (II) THE OWNER OR OPERATOR OF THE PROPOSED SOURCE1
ACHIEVES EMISSIONS REDUCTIONS OF EACH NONATTAINMENT AIR2
POLLUTANT FROM EXISTING SOURCES IN THE NONATTAINMENT AREA THAT3
ARE EQUAL TO OR GREATER THAN THE ANTICIPATED EMISSIONS OF EACH4
NONATTAINMENT AIR POLLUTANT BY THE PROPOSED SOURCE ; AND5
(III) T
HE PROPOSED SOURCE IS NOT LOCATED IN A6
DISPROPORTIONATELY IMPACTED COMMUNITY .7
(b) (I) O
N AND AFTER JANUARY 1, 2025, THE DIVISION OR8
COMMISSION, AS APPLICABLE, SHALL BASE ANY DETERMINATION MADE9
PURSUANT TO SUBSECTION (2)(a)(I) OF THIS SECTION ON AIR QUALITY10
MODELING, WHICH DETERMINATION MUST NOT BE BASED ON AIR QUALITY11
MONITORING IN LIEU OF AIR QUALITY MODELING .12
(II) T
HE AIR QUALITY MODELING DESCRIBED IN SUBSECTION13
(2)(b)(I)
OF THIS SECTION MUST INCLUDE:14
(A) I
F APPLICABLE, MODELING OF THE AIR QUALITY IMPACTS OF15
THE EMISSIONS DESCRIBED IN SECTION 25-7-114.2 (3); AND16
(B) M
ODELING TO EXAMINE COMPLIANCE WITH THE ONE -HOUR17
NITROGEN DIOXIDE NATIONAL AMBIENT AIR QUALITY STANDARDS .18
(c) I
F A CONSTRUCTION PERMIT APPLICATION IS GRANTED BY THE19
DIVISION OR COMMISSION, AS APPLICABLE, BASED ON AIR QUALITY20
MODELING PURSUANT TO SUBSECTION (2)(b)(I) OF THIS SECTION:21
(I) A
NY ASSUMPTION USED IN THE AIR QUALITY MODELING MUST22
BE INCLUDED IN THE CONSTRUCTION PERMIT AS AN ENFORCEABLE PERMIT23
CONDITION; AND24
(II) A
NY AVERAGING TIME UTILIZED FOR AN ENFORCEABLE PERMIT25
CONDITION DESCRIBED IN SUBSECTION (2)(c)(I) OF THIS SECTION MUST BE26
NO GREATER THAN THE AVERAGING TIME FOR ANY APPLICABLE NATIONAL27
HB24-1330
-6- AMBIENT AIR QUALITY STANDARD .1
SECTION 3. In Colorado Revised Statutes, 34-60-106, amend2
(1)(i) and (1)(j); and add (1)(k) as follows:3
34-60-106. Additional powers of commission - rules -4
definitions - repeal. (1) The commission also shall require:5
(i) Certificates of clearance in connection with the transportation6
and delivery of oil and gas or any product; and7
(j) Metering or other measuring of oil, gas, or product in pipelines,8
gathering systems, loading racks, refineries, or other places;
AND9
(k) T
HAT AN OPERATOR APPLYING FOR A PERMIT FROM THE10
COMMISSION OBTAIN ANY CONSTRUCTION PERMIT REQUIRED BY ARTICLE11
7
OF TITLE 25 FOR THE APPLICABLE OIL AND GAS LOCATION FROM THE12
DIVISION OF ADMINISTRATION IN THE DEPARTMENT OF PUBLIC HEALTH AND13
ENVIRONMENT OR THE AIR QUALITY CONTROL COMMISSION , AS14
APPLICABLE, BEFORE MAKING A FINAL DETERMINATION ON THE PERMIT15
APPLICATION.16
SECTION 4. Applicability. This act applies to conduct occurring17
on or after the effective date of this act, including determinations of18
applications pending on the effective date.19
SECTION 5. Safety clause. The general assembly finds,20
determines, and declares that this act is necessary for the immediate21
preservation of the public peace, health, or safety or for appropriations for22
the support and maintenance of the departments of the state and state23
institutions.24
HB24-1330
-7-