Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0910.01 Jennifer Berman x3286
HOUSE BILL 24-1339
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
C
ONCERNING MEASURES TO BE TAKEN BY THE AIR QUALITY CONTROL101
COMMISSION TO REDUCE AIR POLLUTION IN THE STATE .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
.)
Under current law, the air quality control commission
(commission) consists of 9 members. As of October 1, 2024, section 2 of
the bill increases the membership of the commission to 11 members to
include:
! One member who represents a disproportionately impacted
community and the interests of communities of color and
HOUSE SPONSORSHIP
Weissman and Rutinel, Willford, Kipp
SENATE SPONSORSHIP
Winter F.,
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. who does not derive income from an entity that the
commission regulates; and
! One climate scientist employed by an organization that
does not derive income from an entity that the commission
regulates.
Under current law, the commission is required to adopt rules
regulating greenhouse gas (GHG) emissions from the industrial and
manufacturing sector (sector). Section 3 requires the commission to adopt
rules, to be implemented by January 1, 2025, that:
! Prohibit GHG emissions from the sector from increasing in
the near term and require sector-wide emissions not to
exceed 97 million metric tons of total carbon dioxide
equivalent cumulatively between 2025 and 2030;
! Prohibit a sector source from complying with GHG
emissions compliance obligations by making a payment
unless the payment is made in exchange for GHG credit
that is surrendered as part of a GHG credit trading
program; and
! Establish source-specific GHG emission reduction
requirements that must be met through direct reductions of
GHG emissions for a sector source that adversely affects a
disproportionately impacted community.
Section 3 also clarifies the definition of "GHG credit", as applied
to the requirement for commission rule-making, to include an allowance
to emit one metric ton of carbon dioxide equivalent of GHG by a
regulated source.
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) Climate change is already having severe impacts on4
Coloradans across the state, including via more frequent and intense5
wildfire, drought, and extreme heat. These impacts disproportionately6
burden certain communities, including those with residents who are7
Black, Indigenous, Latino, or other people of color.8
(b) The general assembly previously established pollution9
reduction goals for the industrial and manufacturing sector in House Bill10
HB24-1339-2- 21-1266, the "Environmental Justice Act", enacted in 2021, but the state1
does not yet have air pollution rules in place that will meet those goals;2
and3
(c) With every year the state fails to keep pace with its greenhouse4
gas pollution reduction goals, Coloradans will face more severe impacts5
from climate change and localized health-harming pollution.6
(2) The general assembly determines that:7
(a) To protect Coloradans from the impacts of climate change, the8
state must minimize the cumulative buildup of greenhouse gases in the9
atmosphere;10
(b) To advance environmental justice, it is critical to rapidly11
reduce pollution in disproportionately impacted communities; and12
(c) The state must swiftly finalize air pollution rules that rapidly13
and equitably reduce greenhouse gas pollution, including from the14
industrial and manufacturing sector.15
(3) The general assembly declares that:16
(a) State action, including air pollution rules that rapidly reduce17
greenhouse gas pollution from the industrial and manufacturing sector,18
that specifically reduces pollution in disproportionately impacted19
communities is essential to achieve the state's climate goals and advance20
environmental justice in the state;21
(b) The air quality control commission must adopt rules that22
reduce greenhouse gas emissions from the industrial and manufacturing23
sector in the near-term, including reductions from emission levels for24
which the state has the most up-to-date data, beginning no later than 202525
and continuing through 2030;26
(c) It is the general assembly's intent that all industrial and27
HB24-1339
-3- manufacturing sources in the state directly reduce greenhouse gas1
emissions on site, unless the sources participate in a program that meets2
certain statutory requirements intended to maintain the environmental3
integrity of those reductions and protect disproportionately impacted4
communities; and5
(d) To protect disproportionately impacted communities from6
health-harming air pollution, individual greenhouse gas7
emission-reduction requirements are necessary for some sources.8
SECTION 2. In Colorado Revised Statutes, 25-7-104, amend (1)9
and (2) as follows:10
25-7-104. Air quality control commission created - repeal.11
(1) (a) (I) There is created in the department of public health and12
environment the air quality control commission, which consists of nine13
citizens of this state appointed by the governor with the consent of the14
senate. The air quality control commission is a type 1 entity, as defined15
in section 24-1-105.16
(II) T
HIS SUBSECTION (1)(a) IS REPEALED, EFFECTIVE OCTOBER 1,17
2024.18
(b) T
HERE IS CREATED IN THE DEPARTMENT OF PUBLIC HEALTH19
AND ENVIRONMENT THE AIR QUALITY CONTROL COMMISSION , WHICH20
CONSISTS OF ELEVEN CITIZENS OF THIS STATE APPOINTED BY THE21
GOVERNOR WITH THE CONSENT OF THE SENATE . THE AIR QUALITY22
CONTROL COMMISSION IS A TYPE 1 ENTITY, AS DEFINED IN SECTION23
24-1-105.24
(2) (a) (I) Appointments to the commission shall be made so as to25
include persons with appropriate scientific, technical, industrial, labor,26
agricultural, and legal training or with experience on the commission;27
HB24-1339
-4- although no specific number of its members shall be required to be so1
trained or experienced, three members shall have appropriate private2
sector, technical, or industrial employment experience. No more than five3
commissioners shall be members of one political party.4
(II) T
HIS SUBSECTION (2)(a) IS REPEALED, EFFECTIVE OCTOBER 1,5
2024.6
(b) (I) A
PPOINTMENTS TO THE COMMISSION SHALL BE MADE SO AS7
TO INCLUDE INDIVIDUALS WITH APPROPRIATE SCIENTIFIC , TECHNICAL,8
INDUSTRIAL, LABOR, AGRICULTURAL, AND LEGAL TRAINING OR WITH9
EXPERIENCE ON THE COMMISSION; ALTHOUGH NO SPECIFIC NUMBER OF ITS10
MEMBERS ARE REQUIRED TO BE SO TRAINED OR EXPERIENCED , THREE11
MEMBERS MUST HAVE APPROPRIATE PRIVATE SECTOR , TECHNICAL, OR12
INDUSTRIAL EMPLOYMENT EXPERIENCE .13
(II) O
NE MEMBER OF THE COMMISSION MUST BE A14
REPRESENTATIVE OF A DISPROPORTIONATELY IMPACTED COMMUNITY WHO15
DOES NOT DERIVE INCOME FROM AN ENTITY THAT THE COMMISSION16
REGULATES AND WHO REPRESENTS THE INTERESTS OF COMMUNITIES OF17
COLOR.18
(III) O
NE MEMBER OF THE COMMISSION MUST BE A CLIMATE19
SCIENTIST EMPLOYED BY AN ORGANIZATION THAT DOES NOT DERIVE20
INCOME FROM AN ENTITY THAT THE COMMISSION REGULATES .21
(IV) N
O MORE THAN SIX COMMISSIONERS SHALL BE MEMBERS OF22
ONE POLITICAL PARTY.23
(V) (A) C
OMMISSIONERS APPOINTED BEFORE OCTOBER 1, 2024,24
MAY CONTINUE TO SERVE THE REMAINDER OF THEIR TERMS ON AND AFTER25
O
CTOBER 1, 2024.26
(B) T
HIS SUBSECTION (2)(b)(V) IS REPEALED, EFFECTIVE JULY 1,27
HB24-1339
-5- 2027.1
SECTION 3. In Colorado Revised Statutes, 25-7-105, amend2
(1)(e)(XIII)(A) and (1)(f)(I)(A); and add (1)(e)(XIII)(C), (1)(e)(XIII)(D),3
(1)(e)(XIII)(E), and (1)(e)(XIII)(F) as follows:4
25-7-105. Duties of commission - technical secretary - rules -5
report - legislative declaration - definitions - repeal. (1) Except as6
provided in sections 25-7-130 and 25-7-131, the commission shall7
promulgate rules that are consistent with the legislative declaration set8
forth in section 25-7-102 and necessary for the proper implementation9
and administration of this article 7, including:10
(e) (XIII) In implementing this subsection (1)(e), the commission11
shall adopt rules to reduce statewide greenhouse gas emissions from the12
industrial and manufacturing sector in the state by at least twenty percent,13
by 2030, below the 2015 baseline established pursuant to section14
25-7-140 (2)(a)(II), taking into account the factors set out in subsections15
(1)(e)(II) to (1)(e)(VI) of this section. The rules must include protections16
for disproportionately impacted communities and prioritize emission17
reductions that will reduce emissions of co-pollutants that adversely18
affect disproportionately impacted communities, be designed to accelerate19
near-term reductions, and secure meaningful emission reductions from20
this sector to be realized beginning no later than September 30, 2024. The21
rules must:22
(A) Be consistent with the requirements of subsection (1)(e)(IX)23
of this section; and24
(C) O
N AND AFTER JANUARY 1, 2025, PROHIBIT GREENHOUSE GAS25
EMISSIONS FROM THE SECTOR FROM INCREASING IN THE NEAR TERM AND26
REQUIRE THAT SECTOR-WIDE EMISSIONS DECLINE OVER TIME SUCH THAT27
HB24-1339
-6- THOSE EMISSIONS DO NOT EXCEED NINETY -SEVEN MILLION METRIC TONS1
OF TOTAL CARBON DIOXIDE EQUIVALENT CUMULATIVELY BETWEEN 20252
AND 2030, INCLUSIVE;3
(D) O
N AND AFTER JANUARY 1, 2025, PROHIBIT ANY SOURCE OF4
GREENHOUSE GAS EMISSIONS IN THE SECTOR FROM MEETING ITS5
COMPLIANCE OBLIGATIONS UNDER THE RULES BY MAKING A PAYMENT ,6
UNLESS THE PAYMENT IS MADE IN EXCHANGE FOR A GHG CREDIT, AS7
DEFINED IN SUBSECTION (1)(f)(I) OF THIS SECTION, THAT IS SURRENDERED8
FOR COMPLIANCE AS PART OF A TRADING PROGRAM , AS DEFINED IN9
SUBSECTION (1)(f)(I) OF THIS SECTION, AND THE COMMISSION HAS FIRST10
ESTABLISHED, BY RULE, A DECLINING LIMIT ON THE GREENHOUSE GAS11
EMISSIONS FROM ALL SOURCES THAT PARTICIPATE IN THE TRADING12
PROGRAM;13
(E) F
OR ANY SOURCE OF GREENHOUSE GAS EMISSIONS IN THE14
SECTOR THAT HAS ADVERSELY AFFECTED A DISPROPORTI ONATELY15
IMPACTED COMMUNITY , ESTABLISH A SOURCE -SPECIFIC EMISSION16
REDUCTION REQUIREMENT THAT MUST BE MET THROUGH DIRECT17
REDUCTIONS IN THE SOURCE'S GREENHOUSE GAS EMISSIONS; AND18
(F) T
HE AMENDMENTS MADE TO THIS SUBSECTION (1)(e)(XIII)19
THROUGH THIS HOUSE BILL 24-____, ENACTED IN 2024, DO NOT ALTER20
THE REQUIREMENTS OF SUBSECTION (1)(e)(IX) OF THIS SECTION.21
(f) (I) Definitions. The definitions in subsection (1)(e)(XI) of this22
section apply to this subsection (1)(f). As used in this subsection (1)(f),23
unless the context requires otherwise:24
(A) "GHG credit" means a tradeable compliance instrument in a25
physical or electronic format, the use of which is authorized pursuant to26
a regulatory program adopted by the commission that represents the27
HB24-1339
-7- reduction of one metric ton of carbon dioxide equivalent of greenhouse1
gas by a regulated source. "GHG
CREDIT" INCLUDES AN ALLOWANCE TO2
EMIT ONE METRIC TON OF CARBON DIOXIDE EQUIVALENT OF GREENHOUSE3
GAS BY A REGULATED SOURCE .4
SECTION 4. Effective date. This act takes effect upon passage;5
except that section 25-7-104 (1)(b) and (2)(b), Colorado Revised Statutes,6
as enacted in section 2 of this act, takes effect October 1, 2024.7
SECTION 5. Safety clause. The general assembly finds,8
determines, and declares that this act is necessary for the immediate9
preservation of the public peace, health, or safety or for appropriations for10
the support and maintenance of the departments of the state and state11
institutions.12
HB24-1339
-8-