Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 24-0522.01 Jennifer Berman x3286
HOUSE BILL 24-1362
House Committees Senate Committees
Agriculture, Water & Natural Resources
Finance
A BILL FOR AN ACT
C
ONCERNING MEASURES TO PROM OTE THE USE OF GRAYWATER .101
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, a board of county commissioners or governing
body of a municipality (local government) may authorize the use of
graywater within its jurisdiction. Graywater refers to certain types of
wastewater that is collected from fixtures before it is treated and put to
certain beneficial uses.
The bill authorizes the installation of graywater treatment works
and the use of graywater statewide; except that a local government:
! May adopt an ordinance or a resolution prohibiting the
HOUSE
Amended 2nd Reading
April 4, 2024
HOUSE SPONSORSHIP
Lukens and Catlin, McCluskie, Frizell
SENATE SPONSORSHIP
Roberts and Simpson,
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. installation of graywater treatment works or the use of all
graywater or categories of graywater use within its
jurisdiction; and
! Shall notify the division of administration in the
department of public health and environment of any such
local ordinance or resolution adopted.
To incentivize the installation of graywater treatment works within
a residential building for indoor water reuse, the bill also creates a state
income tax credit that allows a taxpayer to claim a credit up to 50% of the
cost of such an installation or up to $5,000, whichever amount is less.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 25-8-205.4 as2
follows:3
25-8-205.4. Statewide authorization of graywater use - local4
government notice required to opt out. (1) E
XCEPT AS PROVIDED IN5
SUBSECTION (2) OF THIS SECTION, A PERSON MAY INSTALL GRAYWATER6
TREATMENT WORKS AND USE GRAYWATER IN ACCORDANCE WITH SECTION7
25-8-205 (1)(g)
AND RULES ADOPTED PURSUANT TO SECTION 25-8-2058
(1)(g).9
(2) (a) A
BOARD OF COUNTY COMMISSIONERS OR GOVERNING BODY10
OF A MUNICIPALITY MAY ADOPT A RESOLUTION OR AN ORDINANCE11
PURSUANT TO SECTION 30-11-107 (1)(kk) OR 31-15-601 (1)(m):12
(I) P
ROHIBITING THE INSTALLATION OF GRAYWATER TREATMENT13
WORKS AND THE USE OF ALL GRAYWATER IN THE COUNTY OR14
MUNICIPALITY; OR15
(II) P
ROHIBITING ONE OR MORE CATEGORIES OF GRAYWATER USE16
THAT THE COMMISSION ESTABLISHES IN RULES ADOPTED PURSUANT TO17
SECTION 25-8-205 (1)(g).18
(b) A
BOARD OF COUNTY COMMISSIONERS OR GOVERNING BODY OF19
A MUNICIPALITY THAT ADOPTS A RESOLUTION OR AN ORDINANCE20
1362-2- PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION SHALL NOTIFY THE1
DIVISION THAT THE BOARD OF COUNTY COMMISSIONERS OR GOVERNING2
BODY OF A MUNICIPALITY PROHIBITS THE USE OF ALL GRAYWATER OR3
PROHIBITS CERTAIN CATEGORIES OF GRAYWATER USE IN THE COUNTY OR4
MUNICIPALITY.5
(c) A BOARD OF COUNTY COMMISSIONERS OR GOVERNING BODY OF6
A MUNICIPALITY THAT HAS NOT PROHIBITED THE INSTALLATION OF7
GRAYWATER TREATMENT WORKS PURSUANT TO SUBSECTION (2)(a)(I) OF8
THIS SECTION, PRIOR TO INSTALLATION OF ANY GRAYWATER TREATMENT9
WORKS, CONTINUES TO BE RESPONSIBLE FOR ADOPTING BUILDING CODES10
THAT PREVENT GRAYWATER FROM ENTERING A POTABLE WATER SYSTEM11
AND FOR REPORTING TO THE LOCAL WATER UTILITY THE PLANNED12
INSTALLATION OF GRAYWATER SYSTEMS THAT REQUIRE BACKFLOW13
PREVENTION CROSS-CONNECTION CONTROL DEVICES UNDER THE14
COMMISSION'S RULES FOR THE PURPOSE OF SURVEYING AND TRACKING15
SUCH DEVICES. FOR EACH LOCATION WITHIN A LOCAL GOVERNMENT'S16
JURISDICTION AT WHICH GRAYWATER TREATMENT WORKS HAVE BEEN17
INSTALLED, THE BUILDING DEPARTMENT OF THE LOCAL GOVERNMENT18
SHALL PROVIDE THE ADDRESS OF THE LOCATION TO EACH WATER UTILITY19
SERVING THAT LOCATION.20
(3) A
BOARD OF COUNTY COMMISSIONERS OR GOVERNING BODY OF21
A MUNICIPALITY THAT SENDS A NOTICE PURSUANT TO SUBSECTION (2)(b)22
OF THIS SECTION MAY SUBSEQUENTLY ADOPT A RESOLUTION PURS UANT TO23
SECTION 30-11-107 (1)(kk) OR AN ORDINANCE PURSUANT TO SECTION24
31-15-601 (1)(m)
TO AUTHORIZE THE INSTALLATION OF GRAYWATER25
TREATMENT WORKS AND THE USE OF GRAYWATER OR TO AUTHORIZE26
CATEGORIES OF GRAYWATER USE PREVIOUSLY PROHIBITED . A BOARD OR27
1362
-3- GOVERNING BODY THAT SUBSEQUENTLY AUTHORIZES THE USE OF1
GRAYWATER PURSUANT TO THIS SUBSECTION (3) SHALL PROMPTLY NOTIFY2
THE DIVISION OF THE SUBSEQUENT AUTHORIZATION .3
(4) UNLESS A BOARD OF COUNTY COMMISSIONERS OR GOVERNING4
BODY OF A MUNICIPALITY ADOPTS A RESOLUTION OR AN ORDINANCE TO5
THE CONTRARY, A PERSON MAY INSTALL INDOOR GRAYWATER TREATMENT6
WORKS PURSUANT TO SUBSECTION (1) OF THIS SECTION ONLY IN NEW7
CONSTRUCTION PROJECTS.8
SECTION 2. In Colorado Revised Statutes, 30-11-107, amend9
(1)(kk) as follows:10
30-11-107. Powers of the board. (1) The board of county11
commissioners of each county has power at any meeting:12
(kk) (I) To adopt a resolution, to authorize, in consultation with13
the local board of health, local public health agencies, and any water and14
wastewater service providers serving the county,
REGARDING the use of15
graywater, as defined in section 25-8-103 (8.3), C.R.S.,
in compliance16
with any regulation adopted pursuant to section 25-8-205 (1)(g), C.R.S.,17
and to enforce compliance with the board's resolution. A
BOARD OF18
COUNTY COMMISSIONERS :19
(A) M
AY ADOPT A RESOLUTION PROHIBITING THE INSTALLATION20
OF GRAYWATER TREATMENT WORKS , AS DEFINED IN SECTION 25-8-10321
(8.4),
AND THE USE OF ALL GRAYWATER OR PROHIBITING ONE OR MORE22
CATEGORIES OF GRAYWATER USE THAT THE WATER QUALITY CONTROL23
COMMISSION ESTABLISHES IN RULES ADOPTED PURSUANT TO SECTION24
25-8-205 (1)(g);
AND25
(B) P
URSUANT TO SECTION 25-8-205.4 (2)(b), SHALL NOTIFY THE26
DIVISION OF ADMINISTRATION WITHIN THE DEPARTMENT OF PUBLIC27
1362
-4- HEALTH AND ENVIRONMENT OF ANY RESOLUTION ADOPTED PURSUANT TO1
SUBSECTION (1)(kk)(I)(A) OF THIS SECTION. A BOARD OF COUNTY2
COMMISSIONERS THAT SENDS NOTICE PURSUANT TO THIS SUBSECTION3
(1)(kk)(I)(B)
MAY SUBSEQUENTLY AUTHORIZE THE INSTALLATION OF4
GRAYWATER TREATMENT WORKS AND THE USE OF GRAYWATER OR5
AUTHORIZE CATEGORIES OF GRAYWATER USE PREVIOUSLY PROHIBITED AT6
ANY TIME BY ADOPTING A RESOLUTION . A BOARD OF COUNTY7
COMMISSIONERS THAT SUBSEQUENTLY AUTHORIZES THE USE OF8
GRAYWATER SHALL PROMPTLY NOTIFY THE DIVISION OF ADMINISTRATION9
WITHIN THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT OF THE10
SUBSEQUENT AUTHORIZATION .11
(II) Before adopting a resolution to authorize the use of graywater
12
pursuant to subparagraph (I) of this paragraph (kk), A board of county13
commissioners
THAT HAS NOT PROHIBITED ALL GRAYWATER USE14
PURSUANT TO SUBSECTION (1)(kk)(I) OF THIS SECTION is encouraged to15
enter into a memorandum of understanding with the local board of health,16
local public health agencies, and any water and wastewater service17
providers serving the county concerning graywater usage and the proper18
installation and operation of graywater treatment works, as defined in19
section 25-8-103 (8.4). C.R.S.
20
SECTION 3. In Colorado Revised Statutes, 31-15-601, amend21
(1)(m) as follows:22
31-15-601. Building and fire regulations - emission23
performance standards required - reporting. (1) The governing bodies24
of municipalities have the following powers in relation to building and25
fire regulations:26
(m) (I) To adopt an ordinance, to authorize, in consultation with27
1362
-5- the local board of health, local public health agencies, and any water and1
wastewater service providers serving the municipality,
REGARDING the2
use of graywater, as defined in section 25-8-103 (8.3), C.R.S.,
in3
compliance with any regulation adopted pursuant to section 25-8-2054
(1)(g), C.R.S., and to enforce compliance with the governing body's5
ordinance. T
HE GOVERNING BODY OF A MUNICIPALITY :6
(A) M
AY ADOPT AN ORDINANCE PROHIBITING THE INSTALLATION7
OF GRAYWATER TREATMENT WORKS , AS DEFINED IN SECTION 25-8-1038
(8.4),
AND THE USE OF ALL GRAYWATER OR PROHIBITING ONE OR MORE9
CATEGORIES OF GRAYWATER USE THAT THE WATER QUALITY CONTROL10
COMMISSION ESTABLISHES IN RULES ADOPTED PURSUANT TO SECTION11
25-8-205 (1)(g);
AND12
(B) P
URSUANT TO SECTION 25-8-205.4 (2)(b), SHALL NOTIFY THE13
DIVISION OF ADMINISTRATION WITHIN THE DEPARTMENT OF PUBLIC14
HEALTH AND ENVIRONMENT OF ANY ORDINANCE ADOPTED PURSUANT TO15
SUBSECTION (1)(m)(I)(A) OF THIS SECTION. A GOVERNING BODY OF A16
MUNICIPALITY THAT SENDS NOTICE PURSUANT TO THIS SUBSECTION17
(1)(m)(I)(B)
MAY SUBSEQUENTLY AUTHORIZE THE INSTALLATION OF18
GRAYWATER TREATMENT WORKS AND THE USE OF GRAYWATER OR19
AUTHORIZE CATEGORIES OF GRAYWATER USE PREVIOUSLY PROHIBITED AT20
ANY TIME BY ADOPTING AN ORDINANCE . A GOVERNING BODY OF A21
MUNICIPALITY THAT SUBSEQUENTLY AUTHORIZES THE USE OF GRAYWATER22
SHALL PROMPTLY NOTIFY THE DIVISION OF ADMINISTRATION WITHIN THE23
DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT OF THE SUBSEQUENT24
AUTHORIZATION.25
(II) Before adopting an ordinance to authorize the use of
26
graywater pursuant to subparagraph (I) of this paragraph (m), the A27
1362
-6- municipal governing body THAT HAS NOT PROHIBITED ALL GRAYWATER1
USE PURSUANT TO SUBSECTION (1)(m)(I) OF THIS SECTION is encouraged2
to enter into a memorandum of understanding with the local board of3
health, local public health agencies, and any water and wastewater service4
providers serving the municipality concerning graywater usage and the5
proper installation and operation of graywater treatment works, as defined6
in section 25-8-103 (8.4). C.R.S.7
SECTION 4. In Colorado Revised Statutes, 25-8-205, amend8
(1)(g) as follows:9
25-8-205. Control regulations. (1) The commission may10
promulgate control regulations for the following purposes:11
(g) (I) To describe requirements, prohibitions, and standards for12
the use of graywater for nondrinking purposes, to encourage the use of13
graywater, and to protect public health and water quality.14
(II) Except as authorized in section 25-8-205.3, graywater may be15
used only in areas where the local city, city and county, or county has16
adopted an ordinance or resolution approving the use of graywater17
pursuant to section 30-11-107 (1)(kk) or 31-15-601 (1)(m). The A city,18
city and county, or county that has adopted an ordinance or resolution19
approving REGARDING the use of graywater pursuant to section 30-11-10720
(1)(kk) or 31-15-601 (1)(m) has exclusive enforcement authority21
regarding compliance with the ordinance or resolution.22
(III) Use of graywater shall be IS allowed only in accordance with23
the terms and conditions of the decrees, contracts, and well permits24
applicable to the use of the source water rights or source water and any25
return flows therefrom FROM THE SOURCE WATER , and no use of26
graywater
USE shall NOT be allowed IN A MANNER that would
IS not be27
1362
-7- allowed under such decrees, contracts, or permits. if the graywater1
ordinance or resolution did not exist.2
(IV) A local city, city and county, or county may only authorize3
the use of graywater in accordance with federal, state, and local4
requirements.5
SECTION 5. In Colorado Revised Statutes, 25-8-205.3, repeal6
(2)(c) as follows:7
25-8-205.3. Exemption from control regulations for graywater8
research - definition. (2) A person collecting, treating, or using9
graywater pursuant to this section:10
(c) May collect, treat, and use the graywater in an area that is not11
within the jurisdiction of any city, city and county, or county that has12
adopted an ordinance or resolution authorizing graywater use pursuant to13
section 25-8-205 (1)(g)(II);14
15
SECTION 6. Act subject to petition - effective date. This act16
takes effect January 1, 2026; except that, if a referendum petition is filed17
pursuant to section 1 (3) of article V of the state constitution against this18
act or an item, section, or part of this act within the ninety-day period19
after final adjournment of the general assembly, then the act, item,20
section, or part will not take effect unless approved by the people at the21
general election to be held in November 2024 and, in such case, will take22
effect January 1, 2026, or on the date of the official declaration of the23
vote thereon by the governor, whichever is later.24
1362
-8-