Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-1188.01 Jennifer Berman x3286
SENATE BILL 24-229
Senate Committees House Committees
Finance
A BILL FOR AN ACT
C
ONCERNING MEASURES TO MITIGATE OZONE POLLUTION IN THE101
STATE.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
.)
Section 2 of the bill requires the division of administration
(division) in the department of public health and environment
(department) to propose rules to the air quality control commission
(commission) to reduce certain emissions of oxides of nitrogen (NOx)
generated by upstream oil and gas operations in certain areas of the state
by 50% by 2030 relative to 2017 NOx emission levels.
SENATE SPONSORSHIP
Winter F. and Priola, Buckner, Coleman, Cutter, Exum, Fenberg, Hansen, Jaquez Lewis,
Marchman, Michaelson Jenet
HOUSE SPONSORSHIP
Bacon and Willford, Amabile, Boesenecker, Brown, Clifford, deGruy Kennedy,
Daugherty, English, Froelich, Garcia, Hernandez, Herod, Jodeh, Joseph, Kipp, Lindsay,
Lindstedt, Marvin, McCluskie, McCormick, Ortiz, Ricks, Rutinel, Story, Titone, Valdez,
Velasco, Vigil, Weissman, Woodrow
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. Section 3 requires the division to prepare an annual air quality
enforcement benchmark report to summarize the division's statewide
enforcement actions, including civil penalties assessed.
Under current law, the division or commission, in an enforcement
action, cannot obtain a temporary restraining order or preliminary
injunction if there is probable cause that the temporary restraining order
or preliminary injunction would cause serious harm to the person affected
by the temporary restraining order or preliminary injunction or another
person or if the source to which the enforcement action pertains has
obtained a renewable operating permit and continues operations in
compliance with that permit. Section 4 repeals those limitations on
temporary restraining orders and preliminary injunctions. Section 4 also
authorizes a district attorney or the attorney general to seek injunctive
relief to reduce the potential for a recurrence of a violation.
Sections 5 and 6 clarify that the division has authority to impose
civil penalties for violations of requirements related to toxic air
contaminants, fenceline and community-based monitoring, and, if enacted
in House Bill 24-1338, petroleum refinery emissions monitoring.
Section 8 authorizes the director of the energy and carbon
management commission (ECMC) to hire at least 2 community liaisons
to serve as dedicated resources for disproportionately impacted
communities, and section 12 authorizes funding of the community liaison
positions from the energy and carbon management cash fund.
Under current law, an oil and gas operator (operator) is required
to obtain a permit from the ECMC to commence oil and gas drilling
operations. Section 9 requires the operator to also obtain from the ECMC
a license to conduct oil and gas operations. Section 9 also requires
operators to take actions in accordance with ECMC rules to reduce
certain emissions of NOx generated from oil and gas production and
preproduction operations. The ECMC is also required, in consultation
with the department, to adopt rules to require enhanced systems and
practices to avoid, minimize, and mitigate emissions of ozone precursors
from oil and gas operations at newly permitted oil and gas locations in
certain parts of the state.
Section 10 limits a court's authority to postpone the effective date
of an ECMC order suspending or revoking an operator's license to
conduct oil and gas operations or a certificate of clearance, requiring the
court to first consider various factors, including whether the moving party
would face real, immediate, and irreparable injury if the effective date is
not postponed and the effect that such postponement would have on the
public interest.
Section 11 expands the ECMC's enforcement authority to include
revoking an operator's license to conduct oil and gas operations and
expands the types of violations that are subject to suspension of all of the
operator's permits and certificates of clearance and the operator's license
SB24-229
-2- to conduct oil and gas operations to include violations resulting in a
penalty of $1,000,000 or more, violations that cause a major adverse
impact, as defined by the ECMC by rule, and violations that cause death
or serious bodily injury.
Section 13 expands the scope of the orphaned wells mitigation
enterprise to help finance the plugging, reclamation, and remediation of
marginal wells that are at the highest risk of becoming orphaned.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and determines that:3
(a) Emissions of ozone precursors, such as oxides of nitrogen4
(NOx) and volatile organic compounds, contribute to the formation of5
ozone and to public health impacts for individuals exposed to higher6
levels of air pollution;7
(b) Oil and gas activities are among the largest anthropogenic8
contributors to ozone precursor emissions in the ozone nonattainment9
area;10
(c) Sources of NOx from upstream oil and gas operations present11
significant opportunities to reduce ozone precursors and improve public12
health;13
(d) Residents of disproportionately impacted communities in the14
ozone nonattainment area may be exposed to higher levels of NOx than15
other Coloradans;16
(e) The air quality control commission adopted rules in December17
2023 designed to achieve a thirty percent reduction in NOx emissions18
generated by upstream oil and gas operations, including preproduction19
operations, by 2025;20
(f) Despite efforts to reduce ozone precursor emissions in the21
ozone nonattainment area, more work is necessary to protect public22
SB24-229-3- health;1
(g) State agencies cannot improve air quality through regulations2
alone and need more permitting and enforcement authority to ensure3
compliance with the state's environmental statutes and rules; and4
(h) Transparency for the public regarding the state's efforts is5
critical.6
(2) Therefore, the general assembly declares that:7
(a) Both the Colorado department of public health and8
environment and the energy and carbon management commission need9
to do more, both together and individually, to address the state's ozone10
problems;11
(b) More accountability for sources of pollution and for the state12
will build public trust and improve air quality;13
(c) The Colorado department of public health and environment's14
air pollution control division should consider more stringent approaches15
in the process of conducting dispersion modeling of proposed sources of16
increased NOx to better protect residents of disproportionately impacted17
communities in the ozone nonattainment area;18
(d) Further action needs to be taken to require steady, measurable19
emission reductions from upstream oil and gas operations, including20
preproduction operations, to ensure the oil and gas industry adequately21
contributes to ozone precursor pollution reductions; and22
(e) The energy and carbon management commission should23
encourage and facilitate the plugging, abandonment, and remediation of24
marginal wells to address emissions of ozone precursors from production25
activities, especially in disproportionately impacted communities.26
SECTION 2. In Colorado Revised Statutes, 25-7-109, add27
SB24-229
-4- (10)(d) as follows:1
25-7-109. Commission to promulgate emission control2
regulations. (10) (d) O
N OR BEFORE AUGUST 31, 2026, THE DIVISION3
SHALL PROPOSE RULES DESIGNED TO REDUCE EMISSIONS OF OXIDES OF4
NITROGEN (NOX) GENERATED BY UPSTREAM OIL AND GAS OPERATIONS , AS5
DEFINED BY THE COMMISSION BY RULE , INCLUDING PREPRODUCTION6
OPERATIONS, BETWEEN MAY 1 AND SEPTEMBER 30 IN THE EIGHT-HOUR7
OZONE CONTROL AREA AND NORTHERN WELD COUNTY, AS THOSE TERMS8
ARE DEFINED BY THE COMMISSION BY RULE , BY FIFTY PERCENT BY 20309
RELATIVE TO 2017 NOX EMISSION LEVELS. NOX EMISSION LEVELS ARE10
CHARACTERIZED BY THE MOST RECENT STATE INVENTORY OF NOX11
EMISSIONS FOR 2017 THAT THE COMMISSION ADOPTED FOR THE PURPOSE12
OF INCLUSION IN THE STATE IMPLEMENTATION PLAN FOR THE 201513
EIGHT-HOUR OZONE NATIONAL AMBIENT AIR QUALITY STANDARD , OR AS14
PUBLISHED CONCURRENTLY WITH PROPOSED RULES CONSISTENT WITH THIS15
SUBSECTION (10)(d) IN A NOTICE OF PROPOSED RULE-MAKING PUBLISHED16
IN ACCORDANCE WITH SECTION 25-7-110 (1).17
SECTION 3. In Colorado Revised Statutes, 25-7-115, amend18
(3)(b)(III) introductory portion and (3)(b)(III)(C); and add19
(3)(b)(III)(C.5), (12), and (13) as follows:20
25-7-115. Enforcement - civil actions - definitions - reporting21
- repeal. (3) (b) (III) The order
ISSUED IN ACCORDANCE WITH22
SUBSECTION (3)(b)(I) OF THIS SECTION may:23
(C) In addition to civil penalties, include a requirement to perform24
one or more projects to mitigate violations related to excess emissions;25
and
26
(C.5) I
N ADDITION TO CIVIL PENALTIES, INCLUDE A REQUIREMENT27
SB24-229
-5- TO PERFORM ONE OR MORE PROJECTS TO REDUCE THE POTENTIAL FOR A1
RECURRENCE OF A VIOLATION FOR WHICH THE DIVISION COMMENCED2
ENFORCEMENT PURSUANT TO SUBSECTION (2)(c)(I) OF THIS SECTION; AND3
(12) (a) (I) O
N OR BEFORE DECEMBER 31, 2024, THE DIVISION4
SHALL PREPARE AN AIR QUALITY ENFORCEMENT BENCHMARK REPORT AND5
POST THE REPORT ON THE DIVISION'S WEBSITE. THE REPORT MUST COVER6
THE FEDERAL FISCAL YEARS FROM OCTOBER 1, 2019, THROUGH7
S
EPTEMBER 30, 2023, AND INCLUDE THE FOLLOWING STATEWIDE8
INFORMATION:9
(A) T
HE TOTAL NUMBER OF ENFORCEMENT ACTIONS THAT THE10
DIVISION COMMENCED PURSUANT TO SUBSECTION (2)(c)(I) OF THIS11
SECTION;12
(B) T
HE TOTAL NUMBER OF DECISIONS NOT TO IMPOSE A PENALTY13
FOR AN ENFORCEMENT ACTION THAT THE DIVISION COMMENCED14
PURSUANT TO SUBSECTION (2)(c)(I) OF THIS SECTION;15
(C) T
HE TOTAL NUMBER OF ENFORCEMENT ACTIONS THAT THE16
DIVISION RESOLVED PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION;17
AND18
(D) W
ITH RESPECT TO CIVIL PENALTIES ASSESSED PURSUANT TO19
SECTION 25-7-122 (1)(b), THE TOTAL AMOUNT OF CIVIL PENALTIES , THE20
AVERAGE CIVIL PENALTY, THE MEDIAN CIVIL PENALTY, THE HIGHEST CIVIL21
PENALTY, AND THE LOWEST CIVIL PENALTY.22
(II) T
HIS SUBSECTION (12)(a) IS REPEALED, EFFECTIVE JULY 1,23
2025.24
(b) O
N OR BEFORE APRIL 1, 2025, AND ON OR BEFORE FEBRUARY25
1
OF EACH YEAR THEREAFTER , THE DIVISION SHALL PREPARE AN AIR26
QUALITY ENFORCEMENT REPORT AND POST THE REPORT ON THE DIVISION 'S27
SB24-229
-6- WEBSITE. THE FIRST REPORT MUST COVER THE FEDERAL FISCAL YEAR1
STARTING OCTOBER 1, 2023, THROUGH SEPTEMBER 30, 2024, AND EACH2
SUBSEQUENT REPORT MUST COVER THE FEDERAL FISCAL YEAR PERIOD OF3
O
CTOBER 1 THROUGH SEPTEMBER 30 PRECEDING THE ISSUANCE OF THE4
REPORT. THE REPORTS PREPARED PURSUANT TO THIS SUBSECTION (12)(b)5
MUST INCLUDE THE FOLLOWING STATEWIDE INFORMATION :6
(I) T
HE TOTAL NUMBER OF ENFORCEMENT ACTIONS THAT THE7
DIVISION COMMENCED PURSUANT TO SUBSECTION (2)(c)(I) OF THIS8
SECTION;9
(II) T
HE NUMBER OF COMPLAINTS RECEIVED PURSUANT TO10
SUBSECTION (2)(a) OF THIS SECTION THAT RESULTED IN AN ENFORCEMENT11
ACTION THAT THE DIVISION COMMENCED UNDER SUBSECTION (2)(c)(I) OF12
THIS SECTION AND THE IDENTIFYING CASE NUMBER ;13
(III) T
HE TOTAL NUMBER OF DECISIONS NOT TO IMPOSE A PENALTY14
FOR AN ENFORCEMENT ACTION THAT THE DIVISION COMMENCED15
PURSUANT TO SUBSECTION (2)(c)(I) OF THIS SECTION;16
(IV) T
HE TOTAL NUMBER OF FORMAL ENFORCEMENT ACTIONS17
THAT THE DIVISION RESOLVED PURSUANT TO SUBSECTION (3)(b) OF THIS18
SECTION AND THE TOTAL NUMBER OF ACTIONS THAT INCLUDED19
VIOLATIONS WITHIN AREAS OF CONCERN , SUCH AS:20
(A) T
HE AREA THAT THE UNITED STATES ENVIRONMENTAL21
PROTECTION AGENCY HAS DESIGNATED AN OZONE NONATTAINMENT AREA ;22
AND23
(B) A
N AREA THAT IS IN A DISPROPORTIONATELY IMPACTED24
COMMUNITY; AND25
(V) W
ITH RESPECT TO CIVIL PENALTIES ASSESSED PURSUANT TO26
SECTION 25-7-122 (1)(b), THE TOTAL AMOUNT OF CIVIL PENALTIES , THE27
SB24-229
-7- AVERAGE CIVIL PENALTY, THE MEDIAN CIVIL PENALTY, THE HIGHEST CIVIL1
PENALTY, THE LOWEST CIVIL PENALTY, AND THE TOTAL AMOUNT OF CIVIL2
PENALTIES ASSESSED FOR EACH ACTION THAT INCLUDES VIOLATIONS IN3
AREAS OF CONCERN, SUCH AS:4
(A) T
HE AREA THAT THE UNITED STATES ENVIRONMENTAL5
PROTECTION AGENCY HAS DESIGNATED AN OZONE NONATTAINMENT AREA ;6
AND7
(B) A
N AREA THAT IS IN A DISPROPORTIONATELY IMPACTED8
COMMUNITY.9
(13) T
HE DIVISION SHALL IMPLEMENT AN AIR QUALITY10
ENFORCEMENT E-MAIL MAILING GROUP OR A SIMILAR COMMUNICATION11
FUNCTION TO SHARE ENFORCEMENT -RELATED UPDATES WITH INTERESTED12
PARTIES THAT OPT IN TO THE E -MAIL MAILING GROUP OR SIMILAR13
COMMUNICATION FUNCTION . THE DIVISION MAY SHARE INFORMATION14
THROUGH THE E-MAIL MAILING GROUP OR SIMILAR COMMUNICATION15
FUNCTION THAT INCLUDES:16
(a) A
NOTICE OF VIOLATION OR NONCOMPLIANCE SENT PURSUANT17
TO SUBSECTION (2)(c)(I) OF THIS SECTION;18
(b) A
SETTLEMENT OR OTHER ORDER ISSUED PURSUANT TO19
SUBSECTION (3)(b) OF THIS SECTION TO RESOLVE A CASE; AND20
(c) A
LINK TO THE ANNUAL AIR QUALITY ENFORCEMENT21
BENCHMARK REPORT THAT THE DIVISION PREPARES PURSUANT TO22
SUBSECTION (12) OF THIS SECTION.23
SECTION 4. In Colorado Revised Statutes, amend 25-7-121 as24
follows:25
25-7-121. Injunctions. (1) In the event any person fails to26
comply with a final order of the division or the commission that is not27
SB24-229
-8- subject to stay pending administrative or judicial review or in the event1
any person violates any emission control regulation of the commission,2
the requirements of the state implementation plan, or any provision of
OR3
COMMISSION RULE ADOPTED PURS UANT TO parts 1 to 4 of this article
4
ARTICLE 7, including any term or condition contained in any permit5
required under this article ARTICLE 7, the division or the commission, as6
the case may be, may request the district attorney for the district in which7
the alleged violation occurs or the attorney general to bring, and if so8
requested it is his or her THE DISTRICT ATTORNEY'S OR THE ATTORNEY9
GENERAL'S duty to bring, a suit for an injunction to:10
(a) Prevent any further or continued violation;11
(b) R
EDUCE THE POTENTIAL FOR A RECURRENCE OF A VIOLATION12
FOR WHICH THE DIVISION HAS PREVIOUSLY COMMENCED ENFORCEMENT13
PURSUANT TO SECTION 25-7-115 (2)(c)(I); OR14
(c) O
BTAIN ANY PERMIT REQUIRED TO CONSTRUCT OR OPERATE .15
(2) In any proceedings brought pursuant to this section to enforce
16
an order of the division or the commission, a temporary restraining order17
or preliminary injunction, if sought, shall not issue if there is probable18
cause to believe that granting such temporary restraining order or19
preliminary injunction will cause serious harm to the affected person or20
any other person and:21
(a) That the alleged violation or activity to which the order22
pertains will not continue or be repeated; or23
(b) That granting such temporary restraining order or preliminary24
injunction would be without sufficient corresponding public benefit.25
(3) Notwithstanding any other provision in this section, no action26
for injunction may be taken where the source has obtained a renewable27
SB24-229
-9- operating permit and conducts its operations in compliance with the1
permit terms, as provided in section 25-7-114.4 (3).2
SECTION 5. In Colorado Revised Statutes, 25-7-122, amend3
(1)(b) introductory portion, (1)(c), (2)(a)(I), (2)(a)(II), (2)(a)(III),4
(2)(a)(VIII), (2)(a)(IX), (2)(b) introductory portion, and (2)(b)(IV);5
repeal (2)(b)(V) and (3); and add (2)(a)(X) as follows:6
25-7-122. Civil penalties - rules - definitions. (1) Upon7
application of the division, the division may collect penalties as8
determined under this article 7 by instituting an action in the district court9
for the district in which the air pollution source affected is located, in10
accordance with the following provisions:11
(b) Any person who violates any requirement or prohibition of
A12
FINAL ORDER OF THE DIVISION OR COMMISSION , an applicable emission13
control regulation of the commission, the state implementation plan, a14
construction permit, any provision for the prevention of significant15
deterioration under part 2 of this article 7, any provision related to16
attainment under part 3 of this article 7, or
ANY PROVISION OF OR17
COMMISSION RULE ADOPTED PURSUANT TO section 25-7-105, 25-7-106,18
25-7-106.3, 25-7-108, 25-7-109, 25-7-109.5, 25-7-111, 25-7-112,19
25-7-113, 25-7-114.2, 25-7-114.5, 25-7-118, 25-7-141, 25-7-206,20
25-7-403, 25-7-404, 25-7-405, 25-7-407, 42-4-403, 42-4-404, 42-4-405,21
42-4-406, 42-4-407, 42-4-409, 42-4-410, or 42-4-414 is subject to a civil22
penalty of not more than forty-seven thousand three hundred fifty-seven23
dollars per day for each day of the violation; except that:24
(c) Any person failing to comply with the provisions of section25
25-7-114.1 shall be subject to a civil penalty of not more than five
26
hundred ONE THOUSAND dollars PER DAY PER VIOLATION.27
SB24-229
-10- (2) (a) In determining the amount of any civil penalty, the division1
shall consider the following factors:2
(I) The violator's compliance history,
INCLUDING THE COMPLIANCE3
HISTORY OF THE VIOLATOR'S CORPORATE AFFILIATES, SUBSIDIARIES, AND4
PARENT ORGANIZATIONS;5
(II) L
ACK OF good faith efforts on behalf of the violator to6
comply;7
(III) Payment by the violator of penalties previously assessed for
8
the same violation WHETHER THE VIOLATOR PREVIOUSLY COMMITTED THE9
SAME OR A SIMILAR VIOLATION, REGARDLESS OF WHETHER THE DIVISION10
OR COMMISSION COMMENCED AN ENFORCEMENT ACTION PURSUANT TO11
SECTION 25-7-115 FOR ANY SUCH VIOLATION;12
(VIII) Whether legal and factual theories were advanced for13
purposes of delay; and14
(IX) The severity of the violation or noncompliance;
AND15
(X) W
HETHER THE VIOLATION OCCURRED WITHIN OR IMPACTED A16
DISPROPORTIONATELY IMPACTED COMMUNITY .17
(b) In addition to the factors set forth in paragraph (a) of this
18
subsection (2) SUBSECTION (2)(a) OF THIS SECTION, THE DIVISION SHALL19
CONSIDER the following circumstances shall be considered as grounds for20
reducing or eliminating civil penalties:21
(IV) Substantial economic impact of a penalty on the violator;22
AND23
(V) Nonfeasance; and
24
(3) Notwithstanding any other provision in this section, no action25
for civil enforcement of this article may be taken where the source has26
obtained a renewable operating permit and conducts its operations in27
SB24-229
-11- compliance with the permit terms, as provided in section 25-7-114.4 (3).1
SECTION 6. In Colorado Revised Statutes, 25-7-122, amend2
(1)(b) introductory portion, (1)(c), (2)(a)(I), (2)(a)(II), (2)(a)(III),3
(2)(a)(VIII), (2)(a)(IX), (2)(b) introductory portion, and (2)(b)(IV);4
repeal (2)(b)(V) and (3); and add (2)(a)(X) as follows:5
25-7-122. Civil penalties - rules - definitions. (1) Upon6
application of the division, the division may collect penalties as7
determined under this article 7 by instituting an action in the district court8
for the district in which the air pollution source affected is located, in9
accordance with the following provisions:10
(b) Any person who violates any requirement or prohibition of
A11
FINAL ORDER OF THE DIVISION OR COMMISSION , an applicable emission12
control regulation of the commission, the state implementation plan, a13
construction permit, any provision for the prevention of significant14
deterioration under part 2 of this article 7, any provision related to15
attainment under part 3 of this article 7, or
ANY PROVISION OF OR16
COMMISSION RULE ADOPTED PURSUANT TO section 25-7-105, 25-7-106,17
25-7-106.3, 25-7-108, 25-7-109, 25-7-109.5, 25-7-111, 25-7-112,18
25-7-113, 25-7-114.2, 25-7-114.5, 25-7-118, 25-7-141,
25-7-146,19
25-7-206, 25-7-403, 25-7-404, 25-7-405, 25-7-407, 42-4-403, 42-4-404,20
42-4-405, 42-4-406, 42-4-407, 42-4-409, 42-4-410, or 42-4-414 is subject21
to a civil penalty of not more than forty-seven thousand three hundred22
fifty-seven dollars per day for each day of the violation; except that:23
(c) Any person failing to comply with the provisions of section24
25-7-114.1 shall be subject to a civil penalty of not more than five
25
hundred ONE THOUSAND dollars PER DAY PER VIOLATION.26
(2) (a) In determining the amount of any civil penalty, the division27
SB24-229
-12- shall consider the following factors:1
(I) The violator's compliance history,
INCLUDING THE COMPLIANCE2
HISTORY OF THE VIOLATOR'S CORPORATE AFFILIATES, SUBSIDIARIES, AND3
PARENT ORGANIZATIONS;4
(II) L
ACK OF good faith efforts on behalf of the violator to5
comply;6
(III) Payment by the violator of penalties previously assessed for
7
the same violation WHETHER THE VIOLATOR PREVIOUSLY COMMITTED THE8
SAME OR A SIMILAR VIOLATION, REGARDLESS OF WHETHER THE DIVISION9
OR COMMISSION COMMENCED AN ENFORCEMENT ACTION PURSUANT TO10
SECTION 25-7-115 FOR ANY SUCH VIOLATION;11
(VIII) Whether legal and factual theories were advanced for12
purposes of delay; and13
(IX) The severity of the violation or noncompliance;
AND14
(X) W
HETHER THE VIOLATION OCCURRED WITHIN OR IMPACTED A15
DISPROPORTIONATELY IMPACTED COMMUNITY .16
(b) In addition to the factors set forth in paragraph (a) of this
17
subsection (2) SUBSECTION (2)(a) OF THIS SECTION, THE DIVISION SHALL18
CONSIDER the following circumstances shall be considered as grounds for19
reducing or eliminating civil penalties:20
(IV) Substantial economic impact of a penalty on the violator;21
AND22
(V) Nonfeasance; and
23
(3) Notwithstanding any other provision in this section, no action24
for civil enforcement of this article may be taken where the source has25
obtained a renewable operating permit and conducts its operations in26
compliance with the permit terms, as provided in section 25-7-114.4 (3).27
SB24-229
-13- SECTION 7. In Colorado Revised Statutes, 34-60-103, add (4.2)1
as follows:2
34-60-103. Definitions. As used in this article 60, unless the3
context otherwise requires:4
(4.2) "D
ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE5
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).6
SECTION 8. In Colorado Revised Statutes, 34-60-104.5, amend7
(2)(d)(I); and add (2)(d)(III) as follows:8
34-60-104.5. Director of commission - duties. (2) The director9
of the commission shall:10
(d) (I) Appoint, pursuant to section 13 of article XII of the state11
constitution, such clerical and professional staff and consultants as may12
be necessary for the efficient and effective operation of the commission,13
including at least
one and up to OR two deputy directors; and14
(III) A
PPOINT AT LEAST TWO COMMUNITY LIAISONS TO SERVE AS15
DEDICATED RESOURCES FOR DISPROPORTIONATELY IMPACTED16
COMMUNITIES REGARDING COMMISSION REGULATION . THE COMMUNITY17
LIAISONS SHALL PERFORM DUTIES INCLUDING :18
(A) S
ERVING AS AN ADVOCATE FOR DISPROPORTIONATELY19
IMPACTED COMMUNITIES IN A NONLEGAL CAPACITY AND , WHILE TAKING20
INTO CONSIDERATION THE ENGAGEMENT PRACTICES DESCRIBED IN21
SECTION 24-4-109 (3)(b), ACTING AS A LIAISON BETWEEN22
DISPROPORTIONATELY IMPACTED COMMUNITY MEMBERS AND THE23
COMMISSION, INCLUDING WITH RESPECT TO COMMUNICATIONS REGARDING24
THE PERMITTING PROCESS;25
(B) P
ROVIDING COMMUNITY MEMBERS WITH RELEVANT26
INFORMATION REGARDING THIRD -PARTY RESOURCES SUCH AS LEGAL27
SB24-229
-14- ASSISTANCE TO ASSIST COMMUNITY MEMBERS IN PRESENTING THEIR VIEWS1
TO THE COMMISSION;2
(C) W
ORKING TO IMPROVE THE RELATIONSHIPS AND INTERACTIONS3
BETWEEN DISPROPORTIONATELY IMPACTED COMMUNITIES AND THE4
COMMISSION;5
(D) A
CTING AS A RESOURCE FOR SHARING INFORMATION BETWEEN6
THE COMMISSION AND DISPROPORTIONATELY IMPACTED COMMUNITIES ;7
(E) E
NGAGING IN OUTREACH TO DISPROPORTIONATELY IMPACTED8
COMMUNITIES; AND9
(F) O
RGANIZING AND ATTENDING IN -PERSON MEETINGS WITHIN10
DISPROPORTIONATELY IMPACTED COMMUNITIES .11
SECTION 9. In Colorado Revised Statutes, 34-60-106, amend12
(1)(f)(I)(B), (3), and (11)(c)(I); and add (1)(f)(I.5), (11)(c)(III), and (20.5)13
as follows:14
34-60-106. Additional powers of commission - rules -15
definitions - repeal. (1) The commission also shall require:16
(f) (I) That no operations for the drilling of a well for oil and gas17
shall be commenced without first:18
(B) Obtaining a permit from the commission, under rules19
prescribed by the commission; and
20
(I.5) T
HAT OIL AND GAS OPERATIONS SHALL NOT OCCUR WITHOUT21
THE OPERATOR OBTAINING AND MAINTAINING ANY NECESSARY PERMITS22
AND A LICENSE TO CONDUCT OIL AND GAS OPERATIONS FROM THE23
COMMISSION, IN ACCORDANCE WITH RULES PROMULGATED BY THE24
COMMISSION; AND25
(3) The commission also has the authority to:26
(a) Limit the production of oil or gas, or both, from any pool or27
SB24-229
-15- field for the prevention of waste, and to limit and to allocate the1
production from such pool or field among or between tracts of land2
having separate ownerships therein IN THE TRACTS OF LAND, on a fair and3
equitable basis so that each such tract will be permitted to produce no4
more than its just and equitable share from the pool and so as to prevent,5
insofar as is practicable, reasonably avoidable drainage from each such6
tract which THAT is not equalized by counter-drainage; and7
(b) Classify wells as oil or gas wells for purposes material to the8
interpretation or enforcement of this article ARTICLE 60;9
(c) A
FTER CONSULTATION WITH THE DIVISION OF ADMINISTRATION10
IN THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , REQUIRE11
OPERATORS TO TAKE SUCH ACTIONS BETWEEN MAY 1 AND SEPTEMBER 3012
OF EACH YEAR TO REDUCE EMISSIONS OF OXIDES OF NITROGEN (NOX)13
GENERATED FROM PRODUCTION AND PREPRODUCTION OPERATIONS AS THE14
COMMISSION DEEMS APPROPRIATE TO ASSURE COMPLIANCE WITH :15
(I) NO
X INTENSITY TARGETS; AND16
(II) O
THER NOX RULES THAT THE AIR QUALITY CONTROL17
COMMISSION ADOPTS BY RULE TO ACHIEVE SECTOR -WIDE COMPLIANCE18
WITH THE STATE'S 2030 GOALS FOR NOX EMISSION REDUCTIONS; AND19
(d) W
HEN REQUIRING OPERATORS TO TAKE ACTION PURSUANT TO20
SUBSECTION (3)(c) OF THIS SECTION, PRIORITIZE ACTIONS BY THOSE21
OPERATORS THAT DO NOT DEMONSTRATE COMPLIANCE WITH ANY22
APPLICABLE NOX INTENSITY TARGETS OR OTHER NOX RULES THAT THE23
AIR QUALITY CONTROL COMMISSION ADOPTS TO ACHIEVE SECTOR -WIDE24
COMPLIANCE WITH THE STATE 'S 2030 GOALS FOR NOX EMISSION25
REDUCTIONS.26
(11) (c) The commission shall adopt rules that:27
SB24-229
-16- (I) Adopt an alternative location analysis process and specify1
criteria used to identify oil and gas locations and facilities proposed to be2
located near populated areas that will be subject to the alternative location3
analysis process; and4
(III) I
N CONSULTATION WITH THE DEPARTMENT OF PUBLIC HEALTH5
AND ENVIRONMENT, REQUIRE ENHANCED SYSTEMS AND PRACTICES TO6
AVOID, MINIMIZE, AND MITIGATE EMISSIONS OF OZONE PRECURSORS FROM7
OPERATIONS AT NEWLY PERMITTED OIL AND GAS LOCATIONS IN THE8
EIGHT-HOUR OZONE CONTROL AREA AND NORTHERN WELD COUNTY, AS9
THOSE TERMS ARE DEFINED BY THE AIR QUALITY CONTROL COMMISSION BY10
RULE. IN ADOPTING THE RULES PURSUANT TO THIS SUBSECTION11
(11)(c)(III),
THE COMMISSION SHALL:12
(A) B
Y SEPTEMBER 30, 2024, ADOPT AN INITIAL LIST OF ENHANCED13
SYSTEMS AND PRACTICES CONSIDERING THE BEST MANAGEMENT14
PRACTICES THAT HAVE BEEN RECOMMENDED BY THE DEPARTMENT OF15
PUBLIC HEALTH AND ENVIRONMENT IN CONSULTATION WITH OPERATORS ;16
(B) C
ONSIDER A PROPOSED OIL AND GAS LOCATION 'S POTENTIAL17
TO CONTRIBUTE TO ADVERSE IMPACTS THROUGH EMISSIONS OF OZONE18
PRECURSORS;19
(C) C
ONSIDER ANY AVAILABLE PHOTOCHEMICAL SENSITIVITY20
MODELING ANALYSES CONDUCTED BY THE DEPARTMENT OF PUBLIC21
HEALTH AND ENVIRONMENT ; AND22
(D) E
VALUATE THE POTENTIAL FOR UPDATES TO THE REQUIRED23
ENHANCED SYSTEMS AND PRACTICES PERIODICALLY TO ACCOUNT FOR24
EVOLVING DESIGN, OPERATIONAL PROCEDURES , AND TECHNOLOGIES TO25
REDUCE OZONE PRECURSORS .26
(20.5) T
HE COMMISSION SHALL ADMINISTER THIS ARTICLE 60 IN A27
SB24-229
-17- MANNER TO MINIMIZE ADVERSE IMPACTS TO DISPROPORTIONATELY1
IMPACTED COMMUNITIES THAT ARE NEGATIVELY AFFECTED BY OIL AND2
GAS OPERATIONS.3
SECTION 10. In Colorado Revised Statutes, amend 34-60-1114
as follows:5
34-60-111. Judicial review. (1) E
XCEPT AS PROVIDED IN6
SUBSECTION (2) OF THIS SECTION, any rule, regulation, or final order of the7
commission shall be
IS subject to judicial review in accordance with the8
provisions of section 24-4-106. C.R.S. The commission shall IS not be9
required to post bond in any proceeding for judicial review.10
(2) N
OTWITHSTANDING SECTION 24-4-106 (5), A COURT OF11
COMPETENT JURISDICTION MAY POSTPONE THE EFFECTIVE DATE OF A12
COMMISSION ORDER SUSPENDING OR REVOKING AN OPERATOR 'S LICENSE13
TO CONDUCT OIL AND GAS OPERATIONS OR A CERTIFICATE OF CLEARANCE14
AND SUBJECT TO REVIEW AS A FINAL AGENCY ACTION PURSUANT TO15
SECTION 24-4-106 ONLY UPON A DEMONSTRATION BY THE MOVING PARTY16
THAT:17
(a) T
HE MOVING PARTY HAS A REASONABLE PROBABILITY OF18
SUCCESS ON THE MERITS IN THE UNDERLYING JUDICIAL PROCEEDING ;19
(b) R
EAL, IMMEDIATE, AND IRREPARABLE INJURY TO THE MOVING20
PARTY WOULD OTHERWISE RESULT ;21
(c) P
OSTPONING THE EFFECTIVE DATE OF THE COMMISSION ORDER22
WILL NOT DISSERVE THE PUBLIC INTEREST; AND23
(d) I
N CONSIDERATION OF THE BALANCE OF EQUITIES , INCLUDING24
CONSIDERATION OF POTENTIAL ADVERSE IMPACTS ON PUBLIC HEALTH ,25
SAFETY, AND WELFARE AND THE PROTECTION OF THE ENVIRONMENT AND26
WILDLIFE RESOURCES, THE BALANCE FAVORS THE POSTPONEMENT .27
SB24-229
-18- SECTION 11. In Colorado Revised Statutes, 34-60-121, amend1
(5)(a), (6), and (7) as follows:2
34-60-121. Violations - investigations - penalties - rules -3
definition - legislative declaration. (5) (a) If an operator fails to take4
corrective action required pursuant to subsection (4) of this section, or5
whenever the commission or the director has evidence that a violation of6
any provision of this article ARTICLE 60, or of any rule, regulation, or7
order of the commission, or of any permit has occurred, under8
circumstances deemed to constitute an emergency situation
OR UNDER9
CIRCUMSTANCES THAT CAUSE OR THREATEN TO CAUSE A SIGNIFICANT10
ADVERSE IMPACT TO PUBLIC HEALTH , SAFETY, WELFARE, THE11
ENVIRONMENT, OR WILDLIFE RESOURCES THAT REQUIRE IMMEDIATE12
ACTION, the commission or the director may issue a cease-and-desist13
order to the operator whose act or omission allegedly resulted in such
THE14
violation. Such THE cease-and-desist order shall MUST require such action15
by the operator as the commission or director deems appropriate. The16
order shall be served personally or by certified mail, return receipt17
requested, to the operator or the operator's agent for service of process18
and shall MUST state the provision alleged to have been violated, the facts19
alleged to constitute the violation, the time by which the acts or practices20
cited are required to cease, and any corrective action the commission or21
the director elects to require of the operator.22
(6) If the commission determines, after a hearing conducted in23
accordance with section 34-60-108, that an operator has failed to perform24
any corrective action imposed under subsection (4) of this section or25
failed to comply with a cease-and-desist order issued under subsection (5)26
of this section, with regard to a violation of a permit provision, the27
SB24-229
-19- commission may issue an order suspending, modifying, or revoking such1
THE OPERATOR'S permit OR PERMITS OR SUSPENDING OR REVOKING THE2
OPERATOR'S LICENSE TO CONDUCT OIL AND GAS OPERATIONS or may take3
other appropriate action. An operator subject to an order that suspends,4
modifies, or revokes a permit
OR THAT SUSPENDS OR REVOKES THE5
OPERATOR'S LICENSE TO CONDUCT OIL AND GAS OPERATIONS shall6
continue the affected operations only for the purpose of bringing them7
into compliance with the permit or modified permit and shall do so under8
the supervision of the commission. Once the affected operations are in9
compliance to the satisfaction of the commission and any penalty not10
subject to judicial review or appeal has been paid, the commission shall
11
MAY reinstate the permit OR THE LICENSE TO CONDUCT OIL AND GAS12
OPERATIONS.13
(7) (a) The commission or the director shall issue an order to an14
operator to appear for a hearing before the commission in accordance15
with section 34-60-108 whenever the commission or the director has16
evidence that an operator is responsible for:17
(I) Gross negligence or knowing and willful misconduct that18
results in an egregious violation; or19
(II) A pattern of violation of this article ARTICLE 60, any rule or20
order of the commission, or any permit;21
(III) A
VIOLATION OF THIS ARTICLE 60, ANY RULE OR ORDER OF22
THE COMMISSION, OR ANY PERMIT, IF SUCH VIOLATION RESULTS IN A23
COMMISSION ORDER IMPOSING A PENALTY OF ONE MILLION DOLLARS OR24
MORE;25
(IV) A
VIOLATION THAT CAUSED A MAJOR ADVERSE IMPACT , AS26
DEFINED IN THE COMMISSION 'S RULES, TO PUBLIC HEALTH, SAFETY,27
SB24-229
-20- WELFARE, THE ENVIRONMENT , OR WILDLIFE RESOURCES AND THE1
VIOLATION IS THE THIRD VIOLATION IN THE STATE IN ONE YEAR THAT2
CAUSED A MAJOR ADVERSE IMPACT , AS DEFINED IN THE COMMISSION'S3
RULES, TO PUBLIC HEALTH, SAFETY, WELFARE, THE ENVIRONMENT, OR4
WILDLIFE RESOURCES; OR5
(V) A
VIOLATION THAT CAUSED DEATH OR SERIOUS BODILY INJURY6
TO AN INDIVIDUAL.7
(b) If the commission finds, after such
THE hearing CONDUCTED8
PURSUANT TO SUBSECTION (7)(a) OF THIS SECTION, that the operator is9
responsible under the legal standards specified in paragraph (a) of this10
subsection (7), it SUBSECTION (7)(a) OF THIS SECTION, THE COMMISSION11
may issue an order that prohibits the issuance of any new permits to the12
operator, suspends any or all of the operator's certificates of clearance,13
SUSPENDS THE OPERATOR 'S LICENSE TO CONDUCT OIL AND GAS14
OPERATIONS, or both. When
ANY COMBINATION OF THE THREE . IF the15
operator demonstrates to the satisfaction of the commission that it THE16
OPERATOR has brought each of the violations into compliance and that17
any penalty not subject to judicial review or appeal has been paid, the18
commission may vacate the order.19
(c) I
N A HEARING CONDUCTED PURSUANT TO THIS SUBSECTION (7),20
THE COMMISSION MAY CONSIDER AS EVIDENCE VIOLATIONS FOR WHICH21
ENFORCEMENT WAS COMMENCED PRIOR TO THE EFFECTIVE DATE OF THIS22
SUBSECTION (7), AS AMENDED, IN DETERMINING WHETHER TO PROHIBIT23
THE ISSUANCE OF ANY NEW PERMITS TO THE OPERATOR , SUSPEND ANY OR24
ALL OF THE OPERATOR'S CERTIFICATES OF CLEARANCE , SUSPEND THE25
OPERATOR'S LICENSE TO CONDUCT OIL AND GAS OPERATIONS , OR ANY26
COMBINATION OF THE THREE.27
SB24-229
-21- SECTION 12. In Colorado Revised Statutes, 34-60-124, amend1
(4)(e)(II) and (4)(f); and add (4)(g) as follows:2
34-60-124. Energy and carbon management cash fund -3
definitions - repeal. (4) The fund may be expended:4
(e) (II) This subsection (4)(e) is repealed, effective July 1, 2025.5
and6
(f) To create and maintain the website described in section7
34-60-106 (22);
AND8
(g) B
Y THE COMMISSION TO FUND THE COMMUNITY LIAISON9
POSITIONS APPOINTED PURSUANT TO SECTION 34-60-104.5 (2)(d)(III).10
SECTION 13. In Colorado Revised Statutes, 34-60-133, amend11
(1)(a)(II) and (1)(a)(III); and add (1.5), (2)(e.5), (6)(d)(I.5), and (8)(d.5)12
as follows:13
34-60-133. Orphaned wells mitigation enterprise - creation -14
powers and duties - enterprise board created - mitigation fees - cash15
fund created - rules - definitions - legislative declaration.16
(1) Enterprise created. (a) The orphaned wells mitigation enterprise is17
created in the department for the purpose of:18
(II) Funding the plugging, reclaiming, and remediating of19
orphaned wells
AND MARGINAL WELLS in the state;20
(III) Ensuring that the costs associated with plugging, reclaiming,21
and remediating orphaned wells
AND MARGINAL WELLS are borne by22
operators in the form of mitigation fees; and23
(1.5) Legislative declaration. T
HE GENERAL ASSEMBLY FINDS24
AND DECLARES THAT:25
(a) O
RPHANED WELLS AND MARGINAL WELLS PRESENT RISKS TO26
PUBLIC HEALTH, SAFETY, AND WELFARE, INCLUDING RISKS TO THE27
SB24-229
-22- ENVIRONMENT AND WILDLIFE RESOURCES ;1
(b) E
NVIRONMENTAL JUSTICE IS A PRIORITY FOR THE STATE , AND2
THE ENTERPRISE BOARD SHOULD ADMINISTER THIS SECTION IN A MANNER3
THAT REDUCES BURDENS ON OVERBURDENED COMMUNITIES ;4
(c) T
HE ENTERPRISE HELPS MITIGATE RISKS BY PLUGGING ,5
RECLAIMING, AND REMEDIATING ORPHANED WELLS AND THOSE MARGINAL6
WELLS THAT ARE AT THE HIGHEST RISK OF BECOMING ORPHANED ;7
(d) A
LL OIL AND GAS WELLS WILL REQUIRE PLUGGING AND8
RECLAIMING AT THE END OF THEIR USEFUL LIFE;9
(e) M
ANY OIL AND GAS WELLS WILL REQUIRE REMEDIATION AT THE10
END OF THEIR USEFUL LIFE;11
(f) P
URSUANT TO SECTION 34-60-106, ALL OPERATORS ARE12
REQUIRED TO PROVIDE FINANCIAL ASSURANCE DEMONSTRATING THAT THE13
OPERATORS ARE FINANCIALLY CAPABLE OF FULFILLING EVERY OBLIGATION14
IMPOSED ON THE OPERATOR PURSUANT TO THIS ARTICLE 60, INCLUDING AN15
OPERATOR'S PLUGGING, RECLAMATION, AND REMEDIATION OBLIGATIONS;16
AND17
(g) T
HE SERVICES THAT THE ENTERPRISE PROVIDES BENEFIT ALL18
OPERATORS IN THE STATE BY:19
(I) M
ITIGATING THE RISKS OF AN OPERATOR'S OIL AND GAS WELL20
BECOMING AN ORPHANED WELL ; AND21
(II) P
LUGGING, RECLAIMING, AND REMEDIATING QUALIFYING22
MARGINAL WELLS AND ELIMINATING THE RISK OF SUCH QUALIFYING23
MARGINAL WELLS BECOMING ORPHANED WELLS .24
(2) Powers and duties. In addition to any other powers and duties25
specified in this section, the enterprise board has the following general26
powers and duties on behalf of the enterprise:27
SB24-229
-23- (e.5) TO ISSUE GUIDANCE ESTABLISHING STANDARDS FOR1
MARGINAL WELLS TO QUALIFY FOR FUNDING PURSUANT TO SUBSECTION2
(1)(a)(II)
OF THIS SECTION. IN ESTABLISHING THESE STANDARDS , THE3
ENTERPRISE BOARD SHALL CONSIDER :4
(I) A
N OIL AND GAS WELL 'S LOCATION IN OR NEAR A5
DISPROPORTIONATELY IMPACTED COMMUNITY OR A HIGHLY POPULATED6
AREA; AND7
(II) A
N OIL AND GAS WELL'S RISK OF ADVERSE IMPACTS ON PUBLIC8
HEALTH, SAFETY, WELFARE, THE ENVIRONMENT , AND WILDLIFE9
RESOURCES; AND10
(6) Cash fund. (d) Money credited to the fund is continuously11
appropriated to the fund for use by the enterprise and shall be expended12
to:13
(I.5) P
LUG, RECLAIM, AND REMEDIATE QUALIFYING MARGINAL14
WELLS, AS DETERMINED BASED ON FACTORS THAT INCLUDE :15
(A) T
HE OIL AND GAS WELL 'S LOCATION IN OR NEAR A16
DISPROPORTIONATELY IMPACTED COMMUNITY OR A HIGHLY POPULATED17
AREA; AND18
(B) T
HE OIL AND GAS WELL'S RISK OF ADVERSE IMPACTS ON PUBLIC19
HEALTH, SAFETY, WELFARE, THE ENVIRONMENT , AND WILDLIFE20
RESOURCES;21
(8) Definitions. As used in this section, unless the context22
otherwise requires:23
(d.5) "M
ARGINAL WELL" MEANS AN OIL AND GAS WELL THAT24
PRESENTS A HIGH RISK OF BECOMING ORPHANED .25
SECTION 14. Effective date - applicability. (1) (a) Except as26
otherwise provided in this subsection (1), this act takes effect upon27
SB24-229
-24- passage.1
(b) Section 6 of this act takes effect only if House Bill 24-13382
becomes law, in which case section 6 of this act takes effect upon3
passage.4
(c) Section 5 of this act takes effect only if House Bill 24-13385
does not become law, in which case section 5 of this act takes effect upon6
passage.7
(2) This act applies to enforcement actions commenced by the8
division of administration in the department of public health and9
environment and the energy and carbon management commission on or10
after the effective date of this act.11
SECTION 15. Safety clause. The general assembly finds,12
determines, and declares that this act is necessary for the immediate13
preservation of the public peace, health, or safety or for appropriations for14
the support and maintenance of the departments of the state and state15
institutions.16
SB24-229
-25-