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. 24-0365.01 Jennifer Berman x3286
SENATE BILL 24-037
Senate Committees House Committees
Agriculture & Natural Resources
Appropriations
A BILL FOR AN ACT
C
ONCERNING ALTERNATIVE MECHANISMS FOR ACHIEVING101
COMPLIANCE WITH WATER QUALITY STANDARDS , AND, IN
102
CONNECTION THEREWITH , MAKING AN APPROPRIATION .103
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
SENATE
Amended 2nd Reading
April 16, 2024
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. university, to:
! 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 -
reports - gifts, grants, or6
donations - repeal. (1) (a) T
HE GENERAL ASSEMBLY FINDS AND7
DETERMINES THAT GREEN INFRASTRUCTURE MAY PROVIDE SIGNIFICANT8
BENEFITS TO WATER AND WASTEWATER
PROVIDERS AND WATER USERS IN9
C
OLORADO BY:10
(I) S
UPPORTING COST-EFFECTIVE, HOLISTIC SOLUTIONS FOR THE11
ATTAINMENT OF WATER QUALITY STANDARDS ;12
(II) I
N FURTHERANCE OF THE COLORADO POLLUTANT TRADING13
037-2- POLICY, HELPING OWNERS AND OPERATORS OF WATER AND WASTEWATER1
TREATMENT FACILITIES MEET STATE AND FEDERAL WATER QUALITY2
STANDARDS WITHOUT HAVING TO INVEST IN GRAY INFRASTRUCTURE3
UPGRADES; AND4
(III) T
O FINANCE THE MONITORING , MANAGEMENT ,5
CONSERVATION,
AND WATER QUALITY IMPROVEMENT OF BOTH6
SURFACE AND GROUNDWATER IN THE STATE , CONNECTING OPERATORS OF7
WATER AND WASTEWATER TREATMENT FACILITIES WITH NEW ,8
CLIMATE-FOCUSED SOURCES OF FINANCING AND CAPITAL , INCLUDING9
CARBON CREDITS AND WILDFIRE MITIGATION INVESTMENTS .10
(b) T
HE GENERAL ASSEMBLY DECLARES THAT :11
(I) T
HE UNIVERSITY OF COLORADO AND COLORADO STATE
12
UNIVERSITY SHOULD CONDUCT , AND THE DIVISION MAY ADVISE ON , A13
FEASIBILITY STUDY REGARDING THE USE OF GREEN INFRASTRUCTURE AND14
DEVELOP PILOT PROJECTS TO DEMONSTRATE GREEN INFRASTRUCTURE IN15
C
OLORADO; AND16
(II) N
OTHING IN THIS SECTION SHALL BE CONSTRUED TO17
AUTHORIZE OR ENCOURAGE SPECULATION IN THE DEVELOPMENT OF A18
WATER RIGHT, AS DEFINED IN SECTION 37-92-103 (12), OR ANY VIOLATION19
OF:20
(A) T
HE "WATER RIGHT DETERMINATION AND ADMINISTRATION21
A
CT OF 1969", ARTICLE 92 OF TITLE 37;22
(B) A
COURT DECREE ESTABLISHING WATER RIGHTS OR23
CONDITIONAL WATER RIGHTS PURSUANT TO SECTION 37-92-301;24
(C) A
WELL PERMIT FOR USE OF UNDERGROUND WATER , AS25
DEFINED IN SECTION 37-92-103 (11), ISSUED PURSUANT TO ARTICLE 90 OF26
TITLE 37;27
037
-3- (D) A SUBSTITUTE WATER SUPPLY PLAN APPROVED PURSUANT TO1
SECTION 37-92-308; OR2
(E) A
N INTERRUPTIBLE WATER SUPPLY AGREEMENT APPROVED3
PURSUANT TO SECTION 37-92-309.4
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE5
REQUIRES:6
(a) "A
LTERNATIVE COMPLIANCE PROGRAM " MEANS A PROGRAM7
ESTABLISHED TO COMPLY WITH STATE AND FEDERAL WATER QUALITY8
STANDARDS THROUGH THE USE OF GREEN INFRASTRUCTURE .9
(b) "C
OLORADO POLLUTANT TRADING POLICY " MEANS THE10
"C
OLORADO POLLUTANT TRADING POLICY" PUBLISHED BY THE DIVISION11
IN OCTOBER 2004.12
(c) "F
EDERAL WATER QUALITY TRADING POLICY " MEANS THE13
U
NITED STATES ENVIRONMENTAL PROTECTION AGENCY 'S "WATER14
Q
UALITY TRADING POLICY", PUBLISHED IN 2003.15
(d) "G
RAY INFRASTRUCTURE" MEANS TRADITIONAL, CENTRALIZED16
WATER QUALITY TREATMENT FACILITIES , SUCH AS WASTEWATER17
TREATMENT FACILITIES OR DRINKING WATER TREATMENT PLANTS .18
(e) "G
REEN INFRASTRUCTURE " MEANS A STRATEGICALLY19
PLANNED, MANAGED, AND INTERCONNECTED NETWORK OF GREEN SPACES ,20
SUCH AS CONSERVED NATURAL AREAS AND FEATURES , PUBLIC AND21
PRIVATE CONSERVATION LANDS , AND PRIVATE WORKING LANDS WITH22
CONSERVATION VALUE.23
(3) (a) O
N OR BEFORE OCTOBER 1, 2024, THE UNIVERSITY OF
24
C
OLORADO AND COLORADO STATE UNIVERSITY, IN COLLABORATION WITH
25
THE DIVISION, SHALL START TO CONDUCT A FEASIBILITY STUDY26
REGARDING THE USE OF GREEN INFRASTRUCTURE IN THE STATE . THE27
037
-4- FEASIBILITY STUDY MUST INCLUDE A DETERMINATION OF WHETHER AND1
HOW:2
(I) G
REEN INFRASTRUCTURE, RATHER THAN TRADITIONAL GRAY3
INFRASTRUCTURE, MAY BE USED IN AN ALTERNATIVE COMPLIANCE4
PROGRAM USING MECHANISMS DESCRIBED IN THE COLORADO POLLUTANT5
TRADING POLICY AND THE FEDERAL WATER QUALITY TRADING POLICY ;6
(II) N
EW SOURCES OF FUNDING THROUGH ENVIRONMENT -FOCUSED7
MECHANISMS, SUCH AS GREEN BONDS, MITIGATION BANKING, CLIMATE8
FINANCE, AND CARBON CREDITS, MAY:9
(A) R
EDUCE COSTS ASSOCIATED WITH COMPLYING WITH STATE10
AND FEDERAL WATER QUALITY STANDARDS ; AND11
(B) P
ROVIDE FUNDING FOR GREEN INFRASTRUCTURE PROJECTS12
PRIOR TO THE ISSUANCE OF A WATER QUALITY PERMIT ;13
(III) A
N ALTERNATIVE COMPLIANCE PROGRAM MAY BE ALIGNED14
WITH OTHER STATE AND COMMUNITY INTERESTS INCLUDING WILDFIRE15
MITIGATION; AND16
(IV) T
HE USE OF ALTERNATIVE COMPLIANCE PROGRAMS WOULD17
REDUCE COSTS FOR THE DEPARTMENT OF PUBLIC HEALTH AND18
ENVIRONMENT, MUNICIPALITIES, AND OTHER WATER AND WASTEWATER
19
PROVIDERS IN THE STATE IN COMPARISON TO USING GRAY20
INFRASTRUCTURE TO COMPLY WITH STATE AND FEDERAL WATER QUALITY21
STANDARDS.22
(b) (I) T
HE UNIVERSITIES SHALL COMPLETE , AND THE DIVISION
23
MAY ADVISE ON, THE FEASIBILITY STUDY ON OR BEFORE APRIL 1, 2026.24
W
ITH CONSIDERATION GIVEN TO THE FINDINGS OF THE FEASIBILITY STUDY,
25
THE UNIVERSITIES, WITH THE APPROVAL OF THE DIVISION , SHALL26
ESTABLISH UP TO THREE PILOT PROJECTS IN THE STATE TO DEMONSTRATE27
037
-5- THE:1
(A) U
SE OF GREEN INFRASTRUCTURE IN AN ALTERNATIVE2
COMPLIANCE PROGRAM ; AND3
(B) F
INANCING OF AN ALTERNATIVE COMPLIANCE PROGRAM WITH4
ONE OR MORE SOURCES OF FUNDING LISTED IN SUBSECTION (3)(a)(II) OF5
THIS SECTION.6
(II) A
PILOT PROJECT ESTABLISHED PURSUANT TO THIS SUBSECTION7
(3)(b)
MAY BE OPERATED FOR UP TO FIVE YEARS. THE UNIVERSITIES MAY
8
PROVIDE TECHNICAL ASSISTANCE TO THE OPERATOR OF A PILOT PROJECT9
THAT THE DIVISION APPROVES UNDER THIS SUBSECTION (3)(b), AND THE10
UNIVERSITIES SHALL RECOMMEND FOR THE DIVISION 'S APPROVAL THE11
DESIGN, SIZE, AND MONITORING REQUIREMENTS FOR EACH PILOT PROJECT .12
(c) O
N OR BEFORE NOVEMBER 1, 2026, THE DIVISION, IN
13
COORDINATION WITH THE ENTITIES LISTED IN SUBSECTION (3)(a) OF THIS14
SECTION, SHALL SUBMIT A REPORT AND, ON OR BEFORE FEBRUARY 1, 2027,15
MAKE A PRESENTATION SUMMARIZING THE PROGRESS ON THE FEASIBILITY16
STUDY AND ANY PILOT PROJECTS TO THE WATER RESOURCES AND17
AGRICULTURE REVIEW COMMITTEE CREATED IN SECTION 37-98-10218
(1)(a)(I). T
HE COMMITTEE MAY REQUEST SIMILAR REPORTS AND
19
PRESENTATIONS BE MADE IN ANY YEAR AFTER 2027 IN WHICH THE20
FEASIBILITY STUDY OR A PILOT PROJECT IS BEING CONDUCTED PURSUANT21
TO SUBSECTION (3) OF THIS SECTION.22
(d) THE REPORT MUST INCLUDE:23
(I) A
NY CONCLUSIONS OF THE DIVISION, IN COORDINATION WITH24
THE ENTITIES LISTED IN SUBSECTION (3)(a)
OF THIS SECTION, REGARDING25
THE POTENTIAL SUCCESS OF ALTERNATIVE COMPLIANCE PROGRAMS OR26
FUNDING SOURCES LISTED IN SUBSECTION (3)(a)(II) OF THIS SECTION; AND27
037
-6- (II) ANY RECOMMENDATIONS FOR LEGISLATIVE OR1
ADMINISTRATIVE ACTION NEEDED TO PROMOTE THE USE OF ALTERNATIVE2
COMPLIANCE PROGRAMS OR THE FUNDING SOURCES LISTED IN SUBSECTION3
(3)(a)(II)
OF THIS SECTION.4
(4)
IN DEVELOPING THE FEASIBILITY STUDY PURSUANT TO5
SUBSECTION (3)(a) OF THIS SECTION, ANY PILOT PROJECTS PURSUANT TO6
SUBSECTION (3)(b) OF THIS SECTION, AND ANY LEGISLATIVE OR7
ADMINISTRATIVE RECOMMENDATIONS PURS UANT TO SUBSECTION8
(3)(d)(II)
OF THIS SECTION,
THE ENTITIES LISTED IN SUBSECTION (3)(a) OF9
THIS SECTION MUST TAKE INTO ACCOUNT :10
(a) T
HE COLORADO POLLUTANT TRADING POLICY ;11
(b) T
HE FEDERAL WATER QUALITY TRADING POLICY ; AND12
(c) T
HE PRIOR APPROPRIATION SYSTEM ESTABLISHED IN SECTIONS13
5
AND 6 OF ARTICLE XVI OF THE STATE CONSTITUTION AND THE "WATER14
R
IGHT DETERMINATION AND ADMINISTRATION ACT OF 1969", ARTICLE 9215
OF TITLE 37.16
(5) (a) T
HE UNIVERSITIES LISTED IN SUBSECTION (3)(a) OF THIS
17
SECTION MAY USE THEIR EXISTING RESOURCES TO HELP FINANCE THE18
FEASIBILITY STUDY AND THE PILOT PROJECTS.19
(b) T
HE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT OR
20
ANY ENTITY LISTED IN SUBSECTION (3)(a) OF THIS SECTION MAY SEEK,21
ACCEPT, AND EXPEND GIFTS , GRANTS, OR DONATIONS FOR THE22
IMPLEMENTATION OF THIS SECTION.23
(6) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2032.24
SECTION 2. Appropriation. (1) For the 2024-25 state fiscal25
year, $50,651 is appropriated to the department of public health and26
environment. This appropriation is from the general fund. To implement27
037
-7- this act, the department may use this appropriation as follows:1
(a) $34,777 for use by the water quality control division for clean2
water program costs, which amount is based on an assumption that the3
division will require an additional 0.4 FTE;4
(b) $512 for use by the water quality control division for5
administration; and6
(c) $15,362 for the purchase of legal services.7
(2) For the 2024-25 state fiscal year, $15,362 is appropriated to8
the department of law. This appropriation is from reappropriated funds9
received from the department of public health and environment under10
subsection (1)(c) of this section and is based on an assumption that the11
department of law will require an additional 0.1 FTE. To implement this12
act, the department of law may use this appropriation to provide legal13
services for the department of public health and environment.14
SECTION 3. Act subject to petition - effective date. This act15
takes effect at 12:01 a.m. on the day following the expiration of the16
ninety-day period after final adjournment of the general assembly; except17
that, if a referendum petition is filed pursuant to section 1 (3) of article V18
of the state constitution against this act or an item, section, or part of this19
act within such period, then the act, item, section, or part will not take20
effect unless approved by the people at the general election to be held in21
November 2024 and, in such case, will take effect on the date of the22
official declaration of the vote thereon by the governor.23
037
-8-