Colorado 2024 Regular Session

Colorado House Bill HB1339 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. 24-0910.01 Jennifer Berman x3286
8	8	HOUSE BILL 24-1339
9	9	House Committees Senate Committees
10	10	Energy & Environment
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING MEASURES TO BE TAKEN BY THE AIR QUALITY CONTROL101
14	14	COMMISSION TO REDUCE AIR POLLUTION IN THE STATE .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	Under current law, the air quality control commission
23	23	(commission) consists of 9 members. As of October 1, 2024, section 2 of
24	24	the bill increases the membership of the commission to 11 members to
25	25	include:
26	26	! One member who represents a disproportionately impacted
27	27	community and the interests of communities of color and
28	28	HOUSE SPONSORSHIP
29	29	Weissman and Rutinel, Willford, Kipp
30	30	SENATE SPONSORSHIP
31	31	Winter F.,
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. who does not derive income from an entity that the
35	35	commission regulates; and
36	36	! One climate scientist employed by an organization that
37	37	does not derive income from an entity that the commission
38	38	regulates.
39	39	Under current law, the commission is required to adopt rules
40	40	regulating greenhouse gas (GHG) emissions from the industrial and
41	41	manufacturing sector (sector). Section 3 requires the commission to adopt
42	42	rules, to be implemented by January 1, 2025, that:
43	43	! Prohibit GHG emissions from the sector from increasing in
44	44	the near term and require sector-wide emissions not to
45	45	exceed 97 million metric tons of total carbon dioxide
46	46	equivalent cumulatively between 2025 and 2030;
47	47	! Prohibit a sector source from complying with GHG
48	48	emissions compliance obligations by making a payment
49	49	unless the payment is made in exchange for GHG credit
50	50	that is surrendered as part of a GHG credit trading
51	51	program; and
52	52	! Establish source-specific GHG emission reduction
53	53	requirements that must be met through direct reductions of
54	54	GHG emissions for a sector source that adversely affects a
55	55	disproportionately impacted community.
56	56	Section 3 also clarifies the definition of "GHG credit", as applied
57	57	to the requirement for commission rule-making, to include an allowance
58	58	to emit one metric ton of carbon dioxide equivalent of GHG by a
59	59	regulated source.
60	60	Be it enacted by the General Assembly of the State of Colorado:1
61	61	SECTION 1. Legislative declaration. (1) The general assembly2
62	62	finds that:3
63	63	(a) Climate change is already having severe impacts on4
64	64	Coloradans across the state, including via more frequent and intense5
65	65	wildfire, drought, and extreme heat. These impacts disproportionately6
66	66	burden certain communities, including those with residents who are7
67	67	Black, Indigenous, Latino, or other people of color.8
68	68	(b) The general assembly previously established pollution9
69	69	reduction goals for the industrial and manufacturing sector in House Bill10
70	70	HB24-1339-2- 21-1266, the "Environmental Justice Act", enacted in 2021, but the state1
71	71	does not yet have air pollution rules in place that will meet those goals;2
72	72	and3
73	73	(c) With every year the state fails to keep pace with its greenhouse4
74	74	gas pollution reduction goals, Coloradans will face more severe impacts5
75	75	from climate change and localized health-harming pollution.6
76	76	(2) The general assembly determines that:7
77	77	(a) To protect Coloradans from the impacts of climate change, the8
78	78	state must minimize the cumulative buildup of greenhouse gases in the9
79	79	atmosphere;10
80	80	(b) To advance environmental justice, it is critical to rapidly11
81	81	reduce pollution in disproportionately impacted communities; and12
82	82	(c) The state must swiftly finalize air pollution rules that rapidly13
83	83	and equitably reduce greenhouse gas pollution, including from the14
84	84	industrial and manufacturing sector.15
85	85	(3) The general assembly declares that:16
86	86	(a) State action, including air pollution rules that rapidly reduce17
87	87	greenhouse gas pollution from the industrial and manufacturing sector,18
88	88	that specifically reduces pollution in disproportionately impacted19
89	89	communities is essential to achieve the state's climate goals and advance20
90	90	environmental justice in the state;21
91	91	(b) The air quality control commission must adopt rules that22
92	92	reduce greenhouse gas emissions from the industrial and manufacturing23
93	93	sector in the near-term, including reductions from emission levels for24
94	94	which the state has the most up-to-date data, beginning no later than 202525
95	95	and continuing through 2030;26
96	96	(c) It is the general assembly's intent that all industrial and27
97	97	HB24-1339
98	98	-3- manufacturing sources in the state directly reduce greenhouse gas1
99	99	emissions on site, unless the sources participate in a program that meets2
100	100	certain statutory requirements intended to maintain the environmental3
101	101	integrity of those reductions and protect disproportionately impacted4
102	102	communities; and5
103	103	(d) To protect disproportionately impacted communities from6
104	104	health-harming air pollution, individual greenhouse gas7
105	105	emission-reduction requirements are necessary for some sources.8
106	106	SECTION 2. In Colorado Revised Statutes, 25-7-104, amend (1)9
107	107	and (2) as follows:10
108	108	25-7-104. Air quality control commission created - repeal.11
109	109	(1) (a) (I) There is created in the department of public health and12
110	110	environment the air quality control commission, which consists of nine13
111	111	citizens of this state appointed by the governor with the consent of the14
112	112	senate. The air quality control commission is a type 1 entity, as defined15
113	113	in section 24-1-105.16
114	114	(II) T
115	115	HIS SUBSECTION (1)(a) IS REPEALED, EFFECTIVE OCTOBER 1,17
116	116	2024.18
117	117	(b) T
118	118	HERE IS CREATED IN THE DEPARTMENT OF PUBLIC HEALTH19
119	119	AND ENVIRONMENT THE AIR QUALITY CONTROL COMMISSION , WHICH20
120	120	CONSISTS OF ELEVEN CITIZENS OF THIS STATE APPOINTED BY THE21
121	121	GOVERNOR WITH THE CONSENT OF THE SENATE . THE AIR QUALITY22
122	122	CONTROL COMMISSION IS A TYPE 1 ENTITY, AS DEFINED IN SECTION23
123	123	24-1-105.24
124	124	(2) (a) (I) Appointments to the commission shall be made so as to25
125	125	include persons with appropriate scientific, technical, industrial, labor,26
126	126	agricultural, and legal training or with experience on the commission;27
127	127	HB24-1339
128	128	-4- although no specific number of its members shall be required to be so1
129	129	trained or experienced, three members shall have appropriate private2
130	130	sector, technical, or industrial employment experience. No more than five3
131	131	commissioners shall be members of one political party.4
132	132	(II) T
133	133	HIS SUBSECTION (2)(a) IS REPEALED, EFFECTIVE OCTOBER 1,5
134	134	2024.6
135	135	(b) (I) A
136	136	PPOINTMENTS TO THE COMMISSION SHALL BE MADE SO AS7
137	137	TO INCLUDE INDIVIDUALS WITH APPROPRIATE SCIENTIFIC , TECHNICAL,8
138	138	INDUSTRIAL, LABOR, AGRICULTURAL, AND LEGAL TRAINING OR WITH9
139	139	EXPERIENCE ON THE COMMISSION; ALTHOUGH NO SPECIFIC NUMBER OF ITS10
140	140	MEMBERS ARE REQUIRED TO BE SO TRAINED OR EXPERIENCED , THREE11
141	141	MEMBERS MUST HAVE APPROPRIATE PRIVATE SECTOR , TECHNICAL, OR12
142	142	INDUSTRIAL EMPLOYMENT EXPERIENCE .13
143	143	(II) O
144	144	NE MEMBER OF THE COMMISSION MUST BE A14
145	145	REPRESENTATIVE OF A DISPROPORTIONATELY IMPACTED COMMUNITY WHO15
146	146	DOES NOT DERIVE INCOME FROM AN ENTITY THAT THE COMMISSION16
147	147	REGULATES AND WHO REPRESENTS THE INTERESTS OF COMMUNITIES OF17
148	148	COLOR.18
149	149	(III) O
150	150	NE MEMBER OF THE COMMISSION MUST BE A CLIMATE19
151	151	SCIENTIST EMPLOYED BY AN ORGANIZATION THAT DOES NOT DERIVE20
152	152	INCOME FROM AN ENTITY THAT THE COMMISSION REGULATES .21
153	153	(IV) N
154	154	O MORE THAN SIX COMMISSIONERS SHALL BE MEMBERS OF22
155	155	ONE POLITICAL PARTY.23
156	156	(V) (A) C
157	157	OMMISSIONERS APPOINTED BEFORE OCTOBER 1, 2024,24
158	158	MAY CONTINUE TO SERVE THE REMAINDER OF THEIR TERMS ON AND AFTER25
159	159	O
160	160	CTOBER 1, 2024.26
161	161	(B) T
162	162	HIS SUBSECTION (2)(b)(V) IS REPEALED, EFFECTIVE JULY 1,27
163	163	HB24-1339
164	164	-5- 2027.1
165	165	SECTION 3. In Colorado Revised Statutes, 25-7-105, amend2
166	166	(1)(e)(XIII)(A) and (1)(f)(I)(A); and add (1)(e)(XIII)(C), (1)(e)(XIII)(D),3
167	167	(1)(e)(XIII)(E), and (1)(e)(XIII)(F) as follows:4
168	168	25-7-105. Duties of commission - technical secretary - rules -5
169	169	report - legislative declaration - definitions - repeal. (1) Except as6
170	170	provided in sections 25-7-130 and 25-7-131, the commission shall7
171	171	promulgate rules that are consistent with the legislative declaration set8
172	172	forth in section 25-7-102 and necessary for the proper implementation9
173	173	and administration of this article 7, including:10
174	174	(e) (XIII) In implementing this subsection (1)(e), the commission11
175	175	shall adopt rules to reduce statewide greenhouse gas emissions from the12
176	176	industrial and manufacturing sector in the state by at least twenty percent,13
177	177	by 2030, below the 2015 baseline established pursuant to section14
178	178	25-7-140 (2)(a)(II), taking into account the factors set out in subsections15
179	179	(1)(e)(II) to (1)(e)(VI) of this section. The rules must include protections16
180	180	for disproportionately impacted communities and prioritize emission17
181	181	reductions that will reduce emissions of co-pollutants that adversely18
182	182	affect disproportionately impacted communities, be designed to accelerate19
183	183	near-term reductions, and secure meaningful emission reductions from20
184	184	this sector to be realized beginning no later than September 30, 2024. The21
185	185	rules must:22
186	186	(A) Be consistent with the requirements of subsection (1)(e)(IX)23
187	187	of this section; and24
188	188	(C) O
189	189	N AND AFTER JANUARY 1, 2025, PROHIBIT GREENHOUSE GAS25
190	190	EMISSIONS FROM THE SECTOR FROM INCREASING IN THE NEAR TERM AND26
191	191	REQUIRE THAT SECTOR-WIDE EMISSIONS DECLINE OVER TIME SUCH THAT27
192	192	HB24-1339
193	193	-6- THOSE EMISSIONS DO NOT EXCEED NINETY -SEVEN MILLION METRIC TONS1
194	194	OF TOTAL CARBON DIOXIDE EQUIVALENT CUMULATIVELY BETWEEN 20252
195	195	AND 2030, INCLUSIVE;3
196	196	(D) O
197	197	N AND AFTER JANUARY 1, 2025, PROHIBIT ANY SOURCE OF4
198	198	GREENHOUSE GAS EMISSIONS IN THE SECTOR FROM MEETING ITS5
199	199	COMPLIANCE OBLIGATIONS UNDER THE RULES BY MAKING A PAYMENT ,6
200	200	UNLESS THE PAYMENT IS MADE IN EXCHANGE FOR A GHG CREDIT, AS7
201	201	DEFINED IN SUBSECTION (1)(f)(I) OF THIS SECTION, THAT IS SURRENDERED8
202	202	FOR COMPLIANCE AS PART OF A TRADING PROGRAM , AS DEFINED IN9
203	203	SUBSECTION (1)(f)(I) OF THIS SECTION, AND THE COMMISSION HAS FIRST10
204	204	ESTABLISHED, BY RULE, A DECLINING LIMIT ON THE GREENHOUSE GAS11
205	205	EMISSIONS FROM ALL SOURCES THAT PARTICIPATE IN THE TRADING12
206	206	PROGRAM;13
207	207	(E) F
208	208	OR ANY SOURCE OF GREENHOUSE GAS EMISSIONS IN THE14
209	209	SECTOR THAT HAS ADVERSELY AFFECTED A DISPROPORTI ONATELY15
210	210	IMPACTED COMMUNITY , ESTABLISH A SOURCE -SPECIFIC EMISSION16
211	211	REDUCTION REQUIREMENT THAT MUST BE MET THROUGH DIRECT17
212	212	REDUCTIONS IN THE SOURCE'S GREENHOUSE GAS EMISSIONS; AND18
213	213	(F) T
214	214	HE AMENDMENTS MADE TO THIS SUBSECTION (1)(e)(XIII)19
215	215	THROUGH THIS HOUSE BILL 24-____, ENACTED IN 2024, DO NOT ALTER20
216	216	THE REQUIREMENTS OF SUBSECTION (1)(e)(IX) OF THIS SECTION.21
217	217	(f) (I) Definitions. The definitions in subsection (1)(e)(XI) of this22
218	218	section apply to this subsection (1)(f). As used in this subsection (1)(f),23
219	219	unless the context requires otherwise:24
220	220	(A) "GHG credit" means a tradeable compliance instrument in a25
221	221	physical or electronic format, the use of which is authorized pursuant to26
222	222	a regulatory program adopted by the commission that represents the27
223	223	HB24-1339
224	224	-7- reduction of one metric ton of carbon dioxide equivalent of greenhouse1
225	225	gas by a regulated source. "GHG
226	226	CREDIT" INCLUDES AN ALLOWANCE TO2
227	227	EMIT ONE METRIC TON OF CARBON DIOXIDE EQUIVALENT OF GREENHOUSE3
228	228	GAS BY A REGULATED SOURCE .4
229	229	SECTION 4. Effective date. This act takes effect upon passage;5
230	230	except that section 25-7-104 (1)(b) and (2)(b), Colorado Revised Statutes,6
231	231	as enacted in section 2 of this act, takes effect October 1, 2024.7
232	232	SECTION 5. Safety clause. The general assembly finds,8
233	233	determines, and declares that this act is necessary for the immediate9
234	234	preservation of the public peace, health, or safety or for appropriations for10
235	235	the support and maintenance of the departments of the state and state11
236	236	institutions.12
237	237	HB24-1339
238	238	-8-