Colorado 2024 2024 Regular Session

Colorado Senate Bill SB037 Enrolled / Bill

Filed 05/07/2024

                    SENATE BILL 24-037
BY SENATOR(S) Simpson and Bridges, Hinrichsen, Roberts, Cutter,
Kolker, Marchman, Pelton R., Priola, Will;
also REPRESENTATIVE(S) Lynch and McCormick, Catlin, Martinez,
McLachlan, Amabile, Bacon, Bird, Brown, Daugherty, Duran, Epps,
Froelich, Hamrick, Jodeh, Joseph, Kipp, Lindsay, Lindstedt, Lukens,
Mabrey, Mauro, Ortiz, Rutinel, Sirota, Woodrow, Young, McCluskie.
C
ONCERNING ALTERNATIVE MECHANISMS FOR ACHIEVING COMPLIANCE
WITH WATER QUALITY ST ANDARDS
, AND, IN CONNECTION
THEREWITH
, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 25-8-311 as
follows:
25-8-311.  Water quality green infrastructure - feasibility studies
- pilot projects - division collaboration with universities - legislative
declaration - definitions - reports - gifts, grants, or donations - repeal.
(1) (a)  T
HE GENERAL ASSEMBLY FINDS AND DETERMINES THAT GREEN
INFRASTRUCTURE MAY PROVIDE SIGNIFICANT BENEFITS TO WATER AND
WASTEWATER PROVIDERS AND WATER USERS IN 
COLORADO BY:
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (I)  SUPPORTING COST-EFFECTIVE, HOLISTIC SOLUTIONS FOR THE
ATTAINMENT OF WATER QUALITY STANDARDS
;
(II)  I
N FURTHERANCE OF THE COLORADO POLLUTANT TRADING
POLICY
, HELPING OWNERS AND OPERATORS OF WATER AND WASTEWATER
TREATMENT FACILITIES MEET STATE AND FEDERAL WATER QUALITY
STANDARDS WITHOUT HAVING TO INVEST IN GRAY INFRASTRUCTURE
UPGRADES
; AND
(III)  TO FINANCE THE MONITORING, MANAGEMENT, CONSERVATION,
AND WATER QUALITY IMPROVEMENT OF BOTH SURFACE AND GROUNDWATER
IN THE STATE
, CONNECTING OPERATORS OF WATER AND WASTEWATER
TREATMENT FACILITIES WITH NEW
, CLIMATE-FOCUSED SOURCES OF
FINANCING AND CAPITAL
, INCLUDING CARBON CREDITS AND WILDFIRE
MITIGATION INVESTMENTS
.
(b)  T
HE GENERAL ASSEMBLY DECLARES THAT :
(I)  T
HE UNIVERSITY OF COLORADO AND COLORADO STATE
UNIVERSITY SHOULD CONDUCT
, AND THE DIVISION MAY ADVISE ON , A
FEASIBILITY STUDY REGARDING THE USE OF GREEN INFRASTRUCTURE AND
DEVELOP PILOT PROJECTS TO DEMONSTRATE GREEN INFRASTRUCTURE IN
COLORADO; AND
(II)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO AUTHORIZE
OR ENCOURAGE SPECULATION IN THE DEVELOPMENT OF A WATER RIGHT
, AS
DEFINED IN SECTION 
37-92-103 (12), OR ANY VIOLATION OF:
(A)  T
HE "WATER RIGHT DETERMINATION AND ADMINISTRATION
ACT OF 1969", ARTICLE 92 OF TITLE 37;
(B)  A
 COURT DECREE ESTABLISHING WATER RIGHTS OR CONDITIONAL
WATER RIGHTS PURSUANT TO SECTION 
37-92-301;
(C)  A
 WELL PERMIT FOR USE OF UNDERGROUND WATER , AS DEFINED
IN SECTION 
37-92-103 (11), ISSUED PURSUANT TO ARTICLE 90 OF TITLE 37;
(D)  A
 SUBSTITUTE WATER SUPPLY PLAN APPROVED PURSUANT TO
SECTION 
37-92-308; OR
PAGE 2-SENATE BILL 24-037 (E)  AN INTERRUPTIBLE WATER SUPPLY AGREEMENT APPROVED
PURSUANT TO SECTION 
37-92-309.
(2)  A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES
:
(a)  "A
LTERNATIVE COMPLIANCE PROGRAM " MEANS A PROGRAM
ESTABLISHED TO COMPLY WITH STATE AND FEDERAL WATER QUALITY
STANDARDS THROUGH THE USE OF GREEN INFRASTRUCTURE
.
(b)  "C
OLORADO POLLUTANT TRADING POLICY " MEANS THE
"COLORADO POLLUTANT TRADING POLICY" PUBLISHED BY THE DIVISION IN
OCTOBER 2004.
(c)  "F
EDERAL WATER QUALITY TRADING POLICY " MEANS THE UNITED
STATES ENVIRONMENTAL PROTECTION AGENCY 'S "WATER QUALITY
TRADING POLICY", PUBLISHED IN 2003.
(d)  "G
RAY INFRASTRUCTURE" MEANS TRADITIONAL, CENTRALIZED
WATER QUALITY TREATMENT FACILITIES
, SUCH AS WASTEWATER
TREATMENT FACILITIES OR DRINKING WATER TREATMENT PLANTS
.
(e)  "G
REEN INFRASTRUCTURE" MEANS A STRATEGICALLY PLANNED ,
MANAGED, AND INTERCONNECTED NETWORK OF GREEN SPACES , SUCH AS
CONSERVED NATURAL AREAS AND FEATURES
, PUBLIC AND PRIVATE
CONSERVATION LANDS
, AND PRIVATE WORKING LANDS WITH CONSERVATION
VALUE
.
(3) (a)  O
N OR BEFORE OCTOBER 1, 2024, THE UNIVERSITY OF
COLORADO AND COLORADO STATE UNIVERSITY, IN COLLABORATION WITH
THE DIVISION
, SHALL START TO CONDUCT A FEASIBILITY STUDY REGARDING
THE USE OF GREEN INFRASTRUCTURE IN THE STATE
. THE FEASIBILITY STUDY
MUST INCLUDE A DETERMINATION OF WHETHER AND HOW
:
(I)  G
REEN INFRASTRUCTURE, RATHER THAN TRADITIONAL GRAY
INFRASTRUCTURE
, MAY BE USED IN AN ALTERNATIVE COMPLIANCE PROGRAM
USING MECHANISMS DESCRIBED IN THE 
COLORADO POLLUTANT TRADING
POLICY AND THE FEDERAL WATER QUALITY TRADING POLICY
;
(II)  N
EW SOURCES OF FUNDING THROUGH ENVIRONMENT -FOCUSED
PAGE 3-SENATE BILL 24-037 MECHANISMS, SUCH AS GREEN BONDS , MITIGATION BANKING, CLIMATE
FINANCE
, AND CARBON CREDITS, MAY:
(A)  R
EDUCE COSTS ASSOCIATED WITH COMPLYING WITH STATE AND
FEDERAL WATER QUALITY STANDARDS
; AND
(B)  PROVIDE FUNDING FOR GREEN INFRASTRUCTURE PROJECTS PRIOR
TO THE ISSUANCE OF A WATER QUALITY PERMIT
;
(III)  A
N ALTERNATIVE COMPLIANCE PROGRAM MAY BE ALIGNED
WITH OTHER STATE AND COMMUNITY INTERESTS INCLUDING WILDFIRE
MITIGATION
; AND
(IV)  THE USE OF ALTERNATIVE COMPLIANCE PROGRAMS WOULD
REDUCE COSTS FOR THE DEPARTMENT OF PUBLIC HEALTH AND
ENVIRONMENT
, MUNICIPALITIES, AND OTHER WATER AND WASTEWATER
PROVIDERS IN THE STATE IN COMPARISON TO USING GRAY INFRASTRUCTURE
TO COMPLY WITH STATE AND FEDERAL WATER QUALITY STANDARDS
.
(b) (I)  T
HE UNIVERSITIES SHALL COMPLETE, AND THE DIVISION MAY
ADVISE ON
, THE FEASIBILITY STUDY ON OR BEFORE APRIL 1, 2026. WITH
CONSIDERATION GIVEN TO THE FINDINGS OF THE FEASIBILITY STUDY
, THE
UNIVERSITIES
, WITH THE APPROVAL OF THE DIVISION, SHALL ESTABLISH UP
TO THREE PILOT PROJECTS IN THE STATE TO DEMONSTRATE THE
:
(A)  U
SE OF GREEN INFRASTRUCTURE IN AN ALTERNATIVE
COMPLIANCE PROGRAM
; AND
(B)  FINANCING OF AN ALTERNATIVE COMPLIANCE PROGRAM WITH
ONE OR MORE SOURCES OF FUNDING LISTED IN SUBSECTION
 (3)(a)(II) OF THIS
SECTION
.
(II)  A
 PILOT PROJECT ESTABLISHED PURSUANT TO THIS SUBSECTION
(3)(b) MAY BE OPERATED FOR UP TO FIVE YEARS . THE UNIVERSITIES MAY
PROVIDE TECHNICAL ASSISTANCE TO THE OPERATOR OF A PILOT PROJECT
THAT THE DIVISION APPROVES UNDER THIS SUBSECTION
 (3)(b), AND THE
UNIVERSITIES SHALL RECOMMEND FOR THE DIVISION
'S APPROVAL THE
DESIGN
, SIZE, AND MONITORING REQUIREMENTS FOR EACH PILOT PROJECT .
(c)  O
N OR BEFORE NOVEMBER 1, 2026, THE DIVISION, IN
PAGE 4-SENATE BILL 24-037 COORDINATION WITH THE ENTITIES LISTED IN SUBSECTION (3)(a) OF THIS
SECTION
, SHALL SUBMIT A REPORT AND, ON OR BEFORE FEBRUARY 1, 2027,
MAKE A PRESENTATION SUMMARIZING THE PROGRESS ON THE FEASIBILITY
STUDY AND ANY PILOT PROJECTS TO THE WATER RESOURCES AND
AGRICULTURE REVIEW COMMITTEE CREATED IN SECTION 
37-98-102 (1)(a)(I).
T
HE COMMITTEE MAY REQUEST SIMILAR REPORTS AND PRESENTATIONS BE
MADE IN ANY YEAR AFTER 
2027 IN WHICH THE FEASIBILITY STUDY OR A
PILOT PROJECT IS BEING CONDUCTED PURSUANT TO THIS SUBSECTION 
(3).
(d)  T
HE REPORT MUST INCLUDE:
(I)  A
NY CONCLUSIONS OF THE DIVISION, IN COORDINATION WITH THE
ENTITIES LISTED IN SUBSECTION
 (3)(a) OF THIS SECTION, REGARDING THE
POTENTIAL SUCCESS OF ALTERNATIVE COMPLIANCE PROGRAMS OR FUNDING
SOURCES LISTED IN SUBSECTION
 (3)(a)(II) OF THIS SECTION; AND
(II)  ANY RECOMMENDATIONS FOR LEGISLATIVE OR ADMINISTRATIVE
ACTION NEEDED TO PROMOTE THE USE OF ALTERNATIVE COMPLIANCE
PROGRAMS OR THE FUNDING SOURCES LISTED IN SUBSECTION
 (3)(a)(II) OF
THIS SECTION
.
(4)  I
N DEVELOPING THE FEASIBILITY STUDY PURSUANT TO
SUBSECTION
 (3)(a) OF THIS SECTION, ANY PILOT PROJECTS PURSUANT TO
SUBSECTION
 (3)(b) OF THIS SECTION, AND ANY LEGISLATIVE OR
ADMINISTRATIVE RECOMMENDATIONS PURSUANT TO SUBSECTION
 (3)(d)(II)
OF THIS SECTION, THE ENTITIES LISTED IN SUBSECTION (3)(a) OF THIS
SECTION MUST TAKE INTO ACCOUNT
:
(a)  T
HE COLORADO POLLUTANT TRADING POLICY ;
(b)  T
HE FEDERAL WATER QUALITY TRADING POLICY ; AND
(c)  THE PRIOR APPROPRIATION SYSTEM ESTABLISHED IN SECTIONS 5
AND 6 OF ARTICLE XVI OF THE STATE CONSTITUTION AND THE "WATER
RIGHT DETERMINATION AND ADMINISTRATION ACT OF 1969", ARTICLE 92
OF TITLE 37.
(5) (a)  T
HE UNIVERSITIES LISTED IN SUBSECTION (3)(a) OF THIS
SECTION MAY USE THEIR EXISTING RESOURCES TO HELP FINANCE THE
FEASIBILITY STUDY AND THE PILOT PROJECTS
.
PAGE 5-SENATE BILL 24-037 (b)  THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT OR ANY
ENTITY LISTED IN SUBSECTION
 (3)(a) OF THIS SECTION MAY SEEK, ACCEPT,
AND EXPEND GIFTS, GRANTS, OR DONATIONS FOR THE IMPLEMENTATION OF
THIS SECTION
.
(6)  T
HIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2032.
SECTION 2. Appropriation. (1)  For the 2024-25 state fiscal year,
$50,651 is appropriated to the department of public health and environment.
This appropriation is from the general fund. To implement this act, the
department may use this appropriation as follows:
(a)  $34,777 for use by the water quality control division for clean
water program costs, which amount is based on an assumption that the
division will require an additional 0.4 FTE;
(b)  $512 for use by the water quality control division for
administration; and
(c)  $15,362 for the purchase of legal services.
(2)  For the 2024-25 state fiscal year, $15,362 is appropriated to the
department of law. This appropriation is from reappropriated funds received
from the department of public health and environment under subsection
(1)(c) of this section and is based on an assumption that the department of
law will require an additional 0.1 FTE. To implement this act, the
department of law may use this appropriation to provide legal services for
the department of public health and environment.
SECTION 3. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 6-SENATE BILL 24-037 November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________  ____________________________
Steve Fenberg
Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________  ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
            APPROVED________________________________________
                                                        (Date and Time)
                              _________________________________________
                             Jared S. Polis
                             GOVERNOR OF THE STATE OF COLORADO
PAGE 7-SENATE BILL 24-037