Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0365.01 Jennifer Berman x3286
SENATE BILL 24-037
Senate Committees House Committees
Agriculture & Natural Resources
A BILL FOR AN ACT
C
ONCERNING ALTERNATIVE MECHANISMS FOR ACHIEVING101
COMPLIANCE WITH WATER QUALITY STANDARDS .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/
.)
Water Resources and Agriculture Review Committee. The bill
requires the division of administration (division) in the department of
public health and environment (department), in collaboration with the
university of Colorado's Mortenson center in global engineering and
resilience and the Colorado water institute located within Colorado state
university, to:
SENATE SPONSORSHIP
Simpson and Bridges, Hinrichsen, Roberts
HOUSE SPONSORSHIP
Lynch and McCormick, Catlin, Martinez, McLachlan
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. ! Conduct a feasibility study of the use of green
infrastructure, which refers to nature-based,
watershed-scale water quality management solutions that
are an alternative to traditional gray infrastructure, which
refers to centralized water treatment facilities, and the use
of green financing mechanisms for water quality
management;
! Establish one or more pilot projects in the state to
demonstrate the use of green infrastructure, green financing
mechanisms, or both;
! Adopt rules establishing a prepermit baseline date to assist
municipalities and other water providers to pursue
prepermit solutions for compliance with state and federal
water quality standards; and
! Submit a report and present to the water resources and
agriculture review committee on the progress of the
feasibility study and any pilot projects and on any
legislative and administrative recommendations to promote
the use of green infrastructure and green financing
mechanisms for water quality management in the state.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 25-8-311 as2
follows:3
25-8-311. Water quality green infrastructure - feasibility4
studies - pilot projects - division collaboration with universities -5
legislative declaration - definitions - rules - reports - gifts, grants, or6
donations - repeal. (1) (a) T
HE GENERAL ASSEMBLY FINDS AND7
DETERMINES THAT GREEN INFRASTRUCTURE MAY PROVIDE SIGNIFICANT8
BENEFITS TO WATER PROVIDERS AND WATER USERS IN COLORADO BY:9
(I) S
UPPORTING COST-EFFECTIVE, HOLISTIC SOLUTIONS FOR THE10
ATTAINMENT OF WATER QUALITY STANDARDS ;11
(II) I
N FURTHERANCE OF THE COLORADO POLLUTANT TRADING12
POLICY, HELPING OWNERS AND OPERATORS OF WATER AND WASTEWATER13
TREATMENT FACILITIES MEET STATE AND FEDERAL WATER QUALITY14
SB24-037-2- STANDARDS WITHOUT HAVING TO INVEST IN GRAY INFRASTRUCTURE1
UPGRADES; AND2
(III) T
O FINANCE THE MONITORING , MANAGEMENT ,3
CONSERVATION, ALLOCATION, AND WATER QUALITY IMPROVEMENT OF4
BOTH SURFACE AND GROUNDWATER IN THE STATE , CONNECTING5
OPERATORS OF WATER AND WASTEWATER TREATMENT FACILITIES WITH6
NEW, CLIMATE-FOCUSED SOURCES OF FINANCING AND CAPITAL , INCLUDING7
CARBON CREDITS AND WILDFIRE MITIGATION INVESTMENTS .8
(b) T
HE GENERAL ASSEMBLY DECLARES THAT :9
(I) T
HE DIVISION, IN COLLABORATION WITH THE UNIVERSITY OF10
C
OLORADO AND THE COLORADO WATER INSTITUTE LOCATED WITHIN11
C
OLORADO STATE UNIVERSITY, SHOULD CONDUCT A FEASIBILITY STUDY12
REGARDING THE USE OF GREEN INFRASTRUCTURE AND DEVELOP PILOT13
PROJECTS TO DEMONSTRATE GREEN INFRASTRUCTURE IN COLORADO; AND14
(II) N
OTHING IN THIS SECTION SHALL BE CONSTRUED TO15
AUTHORIZE OR ENCOURAGE SPECULATION IN THE DEVELOPMENT OF A16
WATER RIGHT, AS DEFINED IN SECTION 37-92-103 (12), OR ANY VIOLATION17
OF:18
(A) T
HE "WATER RIGHT DETERMINATION AND ADMINISTRATION19
A
CT OF 1969", ARTICLE 92 OF TITLE 37;20
(B) A
COURT DECREE ESTABLISHING WATER RIGHTS OR21
CONDITIONAL WATER RIGHTS PURSUANT TO SECTION 37-92-301;22
(C) A
WELL PERMIT FOR USE OF UNDERGROUND WATER , AS23
DEFINED IN SECTION 37-92-103 (11), ISSUED PURSUANT TO ARTICLE 90 OF24
TITLE 37;25
(D) A
SUBSTITUTE WATER SUPPLY PLAN APPROVED PURSUANT TO26
SECTION 37-92-308; OR27
SB24-037
-3- (E) AN INTERRUPTIBLE WATER SUPPLY AGREEMENT APPROVED1
PURSUANT TO SECTION 37-92-309.2
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE3
REQUIRES:4
(a) "A
LTERNATIVE COMPLIANCE PROGRAM " MEANS A PROGRAM5
ESTABLISHED TO COMPLY WITH STATE AND FEDERAL WATER QUALITY6
STANDARDS THROUGH THE USE OF GREEN INFRASTRUCTURE .7
(b) "C
OLORADO POLLUTANT TRADING POLICY " MEANS THE8
"C
OLORADO POLLUTANT TRADING POLICY" PUBLISHED BY THE DIVISION9
IN OCTOBER 2004.10
(c) "F
EDERAL WATER QUALITY TRADING POLICY " MEANS THE11
U
NITED STATES ENVIRONMENTAL PROTECTION AGENCY 'S "WATER12
Q
UALITY TRADING POLICY", PUBLISHED IN 2003.13
(d) "G
RAY INFRASTRUCTURE" MEANS TRADITIONAL, CENTRALIZED14
WATER QUALITY TREATMENT FACILITIES , SUCH AS WASTEWATER15
TREATMENT FACILITIES OR DRINKING WATER TREATMENT PLANTS .16
(e) "G
REEN INFRASTRUCTURE " MEANS A STRATEGICALLY17
PLANNED, MANAGED, AND INTERCONNECTED NETWORK OF GREEN SPACES ,18
SUCH AS CONSERVED NATURAL AREAS AND FEATURES , PUBLIC AND19
PRIVATE CONSERVATION LANDS , AND PRIVATE WORKING LANDS WITH20
CONSERVATION VALUE.21
(3) (a) O
N OR BEFORE DECEMBER 31, 2025, THE DIVISION SHALL22
CONDUCT A FEASIBILITY STUDY REGARDING THE USE OF GREEN23
INFRASTRUCTURE IN THE STATE. THE FEASIBILITY STUDY MUST INCLUDE24
A DETERMINATION OF WHETHER AND HOW :25
(I) G
REEN INFRASTRUCTURE, RATHER THAN TRADITIONAL GRAY26
INFRASTRUCTURE, MAY BE USED IN AN ALTERNATIVE COMPLIANCE27
SB24-037
-4- PROGRAM USING MECHANISMS DESCRIBED IN THE COLORADO POLLUTANT1
TRADING POLICY AND THE FEDERAL WATER QUALITY TRADING POLICY ;2
(II) N
EW SOURCES OF FUNDING THROUGH ENVIRONMENT -FOCUSED3
MECHANISMS, SUCH AS GREEN BONDS, MITIGATION BANKING, CLIMATE4
FINANCE, AND CARBON CREDITS, MAY:5
(A) R
EDUCE COSTS ASSOCIATED WITH COMPLYING WITH STATE6
AND FEDERAL WATER QUALITY STANDARDS ; AND7
(B) P
ROVIDE FUNDING FOR GREEN INFRASTRUCTURE PROJECTS8
PRIOR TO THE ISSUANCE OF A WATER QUALITY PERMIT ;9
(III) A
N ALTERNATIVE COMPLIANCE PROGRAM MAY BE ALIGNED10
WITH OTHER STATE AND COMMUNITY INTERESTS INCLUDING WILDFIRE11
MITIGATION; AND12
(IV) T
HE USE OF ALTERNATIVE COMPLIANCE PROGRAMS WOULD13
REDUCE COSTS FOR THE DEPARTMENT OF PUBLIC HEALTH AND14
ENVIRONMENT, MUNICIPALITIES, AND OTHER WATER PROVIDERS IN THE15
STATE IN COMPARISON TO USING GRAY INFRASTRUCTURE TO COMPLY WITH16
STATE AND FEDERAL WATER QUALITY STANDARDS .17
(b) (I) A
FTER COMPLETING THE FEASIBILITY STUDY REQUIRED18
UNDER SUBSECTION (3)(a) OF THIS SECTION AND CONSIDERING THE19
FINDINGS OF THE FEASIBILITY STUDY, THE DIVISION SHALL ESTABLISH ONE20
OR MORE PILOT PROJECTS IN THE STATE TO DEMONSTRATE THE :21
(A) U
SE OF GREEN INFRASTRUCTURE IN AN ALTERNATIVE22
COMPLIANCE PROGRAM ; AND23
(B) F
INANCING OF AN ALTERNATIVE COMPLIANCE PROGRAM WITH24
ONE OR MORE SOURCES OF FUNDING LISTED IN SUBSECTION (3)(a)(II) OF25
THIS SECTION.26
(II) A
PILOT PROJECT ESTABLISHED PURSUANT TO THIS SUBSECTION27
SB24-037
-5- (3)(b) MAY BE OPERATED FOR UP TO FIVE YEARS . THE DIVISION MAY1
PROVIDE TECHNICAL ASSISTANCE TO THE OPERATOR OF A PILOT PROJECT2
THAT THE DIVISION ESTABLISHES UNDER THIS SUBSECTION (3)(b).3
(c) T
HE DIVISION SHALL COORDINATE WITH THE UNIVERSITY OF4
C
OLORADO'S MORTENSON CENTER IN GLOBAL ENGINEERING AND5
RESILIENCE AND THE COLORADO WATER INSTITUTE CREATED IN SECTION6
23-31-801
(1) TO CONDUCT THE FEASIBILITY STUDY AND DEVELOP ,7
PROVIDE TECHNICAL ASSISTANCE FOR , AND REVIEW ANY PILOT PROJECTS8
APPROVED PURSUANT TO THIS SUBSECTION (3).9
(4) (a) O
N OR BEFORE DECEMBER 31, 2024, THE DIVISION SHALL10
IDENTIFY MUNICIPALITIES AND OTHER WATER PROVIDERS THROUGHOUT11
THE STATE THAT ARE INTERESTED IN PURSUING PREPERMIT SOLUTIONS FOR12
ACHIEVING COMPLIANCE WITH STATE AND FEDERAL WATER QUALITY13
STANDARDS.14
(b) O
N OR BEFORE DECEMBER 31, 2025, THE COMMISSION SHALL15
ADOPT RULES TO ESTABLISH A PREPERMIT BASELINE DATE WITH WHICH AN16
OPERATOR UTILIZING NATURE -BASED SOLUTIONS FOR ACHIEVING17
COMPLIANCE WITH STATE AND FEDERAL WATER QUALITY STANDARDS18
DEMONSTRATES COMPLIANCE FOR FUTURE PERMIT OBLIGATIONS . IN19
DRAFTING THE RULES REQUIRED UNDER THIS SUBSECTION (4)(b), THE20
COMMISSION, IN CONSULTATION WITH THE ENTITIES LISTED IN SUBSECTION21
(3)(c)
OF THIS SECTION, SHALL CONVENE A REPRESENTATIVE GROUP OF22
INTERESTED PARTIES PURSUANT TO SECTION 24-4-103 (2) AND ENGAGE23
SOME OR ALL OF THE INTERESTED MUNICIPALITIES AND OTHER WATER24
PROVIDERS IDENTIFIED PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION25
AS PART OF THE REPRESENTATIVE GROUP OF INTERESTED PARTIES .26
(5) (a) O
N OR BEFORE JULY 1, 2025, THE DIVISION, IN27
SB24-037
-6- COORDINATION WITH THE ENTITIES LISTED IN SUBSECTION (3)(c) OF THIS1
SECTION, SHALL SUBMIT A REPORT AND MAKE A PRESENTATION2
SUMMARIZING THE PROGRESS ON THE FEASIBILITY STUDY AND ANY PILOT3
PROJECTS TO THE WATER RESOURCES AND AGRICULTURE REVIEW4
COMMITTEE CREATED IN SECTION 37-98-102 (1)(a)(I). THE COMMITTEE5
MAY REQUEST SIMILAR REPORTS AND PRESENTATIONS BE MADE ON OR6
BEFORE JULY 15 IN ANY YEAR AFTER 2025 IN WHICH THE FEASIBILITY7
STUDY OR A PILOT PROJECT IS BEING CONDUCTED PURSUANT TO8
SUBSECTION (3) OF THIS SECTION.9
(b) T
HE REPORT MUST INCLUDE:10
(I) A
NY CONCLUSIONS OF THE DIVISION, IN COORDINATION WITH11
THE ENTITIES LISTED IN SUBSECTION (3)(c) OF THIS SECTION, REGARDING12
THE POTENTIAL SUCCESS OF ALTERNATIVE COMPLIANCE PROGRAMS OR13
FUNDING SOURCES LISTED IN SUBSECTION (3)(a)(II) OF THIS SECTION; AND14
(II) A
NY RECOMMENDATIONS FOR LEGISLATIVE OR15
ADMINISTRATIVE ACTION NEEDED TO PROMOTE THE USE OF ALTERNATIVE16
COMPLIANCE PROGRAMS OR THE FUNDING SOURCES LISTED IN SUBSECTION17
(3)(a)(II)
OF THIS SECTION.18
(6) I
N DEVELOPING THE FEASIBILITY STUDY PURSUANT TO19
SUBSECTION (3)(a) OF THIS SECTION, ANY PILOT PROJECTS PURSUANT TO20
SUBSECTION (3)(b) OF THIS SECTION, AND ANY LEGISLATIVE OR21
ADMINISTRATIVE RECOMMENDATIONS PURSUANT TO SUBSECTION22
(5)(b)(II)
OF THIS SECTION, THE DIVISION AND THE ENTITIES LISTED IN23
SUBSECTION (3)(c) OF THIS SECTION MUST TAKE INTO ACCOUNT :24
(a) T
HE COLORADO POLLUTANT TRADING POLICY ;25
(b) T
HE FEDERAL WATER QUALITY TRADING POLICY ; AND26
(c) T
HE PRIOR APPROPRIATION SYSTEM ESTABLISHED IN SECTIONS27
SB24-037
-7- 5 AND 6 OF ARTICLE XVI OF THE STATE CONSTITUTION AND THE "WATER1
R
IGHT DETERMINATION AND ADMINISTRATION ACT OF 1969", ARTICLE 922
OF TITLE 37.3
(7) T
HE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT OR4
ANY ENTITY LISTED IN SUBSECTION (3)(c) OF THIS SECTION MAY SEEK,5
ACCEPT, AND EXPEND GIFTS , GRANTS, OR DONATIONS FOR THE6
IMPLEMENTATION OF THIS SECTION.7
(8) T
HIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2032.8
SECTION 2. Act subject to petition - effective date. This act9
takes effect at 12:01 a.m. on the day following the expiration of the10
ninety-day period after final adjournment of the general assembly; except11
that, if a referendum petition is filed pursuant to section 1 (3) of article V12
of the state constitution against this act or an item, section, or part of this13
act within such period, then the act, item, section, or part will not take14
effect unless approved by the people at the general election to be held in15
November 2024 and, in such case, will take effect on the date of the16
official declaration of the vote thereon by the governor.17
SB24-037
-8-