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July 24, 2024 HB 24-1362
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0522
Rep. Lukens; Catlin
Sen. Roberts; Simpson
Date:
Bill Status:
Fiscal Analyst:
July 24, 2024
Signed into Law
Amanda Liddle | 303-866-5834
amanda.liddle@coleg.gov
Bill Topic: MEASURES TO INCENTIVIZE GRAYWATER USE
Summary of
Fiscal Impact:
☐ State Revenue
☐ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill authorizes the installation of graywater systems in new construction projects
statewide and allows local governments to adopt their own ordinances and/or
resolutions around graywater use. It potentially increases workload for local
governments.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The final fiscal note reflects the enacted bill.
Summary of Legislation
Beginning January 1, 2026, the bill authorizes the installation of graywater systems and the use
of graywater in new construction projects statewide and allows county, municipal, and
consolidated city and county governments to adopt an ordinance or resolution prohibiting the
installation of graywater systems for some or all categories of graywater use within their
jurisdiction. Local governments may also adopt an ordinance or resolution permitting the
installation of graywater systems in existing structures. Local governments must notify the
Department of Public Health and Environment (CDPHE) when such a measure is adopted.
Background
Graywater is water used in a residential, commercial, or industrial building that may be collected
after the first use and put to a second beneficial use. There are different categories of graywater
systems which incur different costs and have different uses. At the top level, graywater is used
indoors for toilet flushing or outdoors for irrigation and garden watering, with different systems
available including laundry-to-landscape, branched drain, pumped systems, and automated
pumped systems for drip irrigation.
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July 24, 2024 HB 24-1362
Graywater reuse is not legal statewide; however, local governments may authorize the use of
graywater within their jurisdictions. Graywater installations and usage are regulated by the
Water Quality Control Commission through rules that outline requirements, prohibitions, and
standards for graywater use for non-drinking purposes. As of 2023, five cities or counties have
adopted graywater use ordinances.
Local Government
Workload may increase for counties and municipalities that choose to prohibit graywater
treatment works in their jurisdictions to update regulations and adopt resolutions and/or
ordinances. For local governments that do not permit graywater treatment works under current
law, there may be increased costs for inspections of graywater systems. The decisions made in
each local jurisdiction will ultimately determine the fiscal impact on each local government.
Effective Date
The bill was signed into law by the Governor on May 29, 2024, and takes effect January 1, 2026,
assuming no referendum petition is filed.
State and Local Government Contacts
Counties Municipalities Natural Resources
Public Health and Environment Revenue State Auditor
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.