Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-1188.01 Jennifer Berman x3286
SENATE BILL 24-229
Senate Committees House Committees
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING MEASURES TO MITIGATE OZONE POLLUTION IN THE101
STATE, AND, IN CONNECTION THEREWITH , MAKING AN
102
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
.)
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
SENATE
3rd Reading Unamended
May 4, 2024
SENATE
Amended 2nd Reading
May 3, 2024
SENATE SPONSORSHIP
Winter F. and Priola, Buckner, Coleman, Cutter, Exum, Fenberg, Hansen, Jaquez Lewis,
Marchman, Michaelson Jenet, Gonzales, Hinrichsen, Kolker
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. by 50% by 2030 relative to 2017 NOx emission levels.
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
229
-2- operator's permits and certificates of clearance and the operator's license
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
229-3- ozone nonattainment area, more work is necessary to protect public1
health;2
(g) State agencies cannot improve air quality through regulations3
alone and need more permitting and enforcement authority to ensure4
compliance with the state's environmental statutes and rules; and5
(h) Transparency for the public regarding the state's efforts is6
critical.7
(2) Therefore, the general assembly declares that:8
(a) Both the Colorado department of public health and9
environment and the energy and carbon management commission need10
to do more, both together and individually, to address the state's ozone11
problems;12
(b) More accountability for sources of pollution and for the state13
will build public trust and improve air quality;14
(c) The Colorado department of public health and environment's15
air pollution control division should consider more stringent approaches16
in the process of conducting dispersion modeling of proposed sources of17
increased NOx to better protect residents of disproportionately impacted18
communities in the ozone nonattainment area;19
(d) Further action needs to be taken to require steady, measurable20
emission reductions from upstream oil and gas operations, including21
preproduction operations, to ensure the oil and gas industry adequately22
contributes to ozone precursor pollution reductions; and23
(e) The energy and carbon management commission should24
encourage and facilitate the plugging, abandonment, and remediation of25
marginal wells to address emissions of ozone precursors from production26
activities, especially in disproportionately impacted communities.27
229
-4- SECTION 2. In Colorado Revised Statutes, 25-7-109, add1
(10)(d) as follows:2
25-7-109. Commission to promulgate emission control3
regulations. (10) (d) O
N OR BEFORE AUGUST 31, 2026, THE DIVISION4
SHALL PROPOSE RULES DESIGNED TO REDUCE EMISSIONS OF OXIDES OF5
NITROGEN (NOX) GENERATED BY UPSTREAM OIL AND GAS OPERATIONS , AS6
DEFINED BY THE COMMISSION BY RULE , INCLUDING PREPRODUCTION7
OPERATIONS, BETWEEN MAY 1 AND SEPTEMBER 30 IN THE EIGHT-HOUR8
OZONE CONTROL AREA AND NORTHERN WELD COUNTY, AS THOSE TERMS9
ARE DEFINED BY THE COMMISSION BY RULE , BY FIFTY PERCENT BY 203010
RELATIVE TO 2017 NOX EMISSION LEVELS. NOX EMISSION LEVELS ARE11
CHARACTERIZED BY THE MOST RECENT STATE INVENTORY OF NOX12
EMISSIONS FOR 2017 THAT THE COMMISSION ADOPTED FOR THE PURPOSE13
OF INCLUSION IN THE STATE IMPLEMENTATION PLAN FOR THE 201514
EIGHT-HOUR OZONE NATIONAL AMBIENT AIR QUALITY STANDARD , OR AS15
PUBLISHED CONCURRENTLY WITH PROPOSED RULES CONSISTENT WITH THIS16
SUBSECTION (10)(d) IN A NOTICE OF PROPOSED RULE-MAKING PUBLISHED17
IN ACCORDANCE WITH SECTION 25-7-110 (1).18
SECTION 3. In Colorado Revised Statutes, 25-7-115, amend19
(3)(b)(III) introductory portion and (3)(b)(III)(C); and add20
(3)(b)(III)(C.5), (12), and (13) as follows:21
25-7-115. Enforcement - civil actions - definitions - reporting22
- repeal. (3) (b) (III) The order
ISSUED IN ACCORDANCE WITH23
SUBSECTION (3)(b)(I) OF THIS SECTION may:24
(C) In addition to civil penalties, include a requirement to perform25
one or more projects to mitigate violations related to excess emissions;26
and
27
229
-5- (C.5) IN ADDITION TO CIVIL PENALTIES, INCLUDE A REQUIREMENT1
TO PERFORM ONE OR MORE PROJECTS TO REDUCE THE POTENTIAL FOR A2
RECURRENCE OF A VIOLATION FOR WHICH THE DIVISION COMMENCED3
ENFORCEMENT PURSUANT TO SUBSECTION (2)(c)(I) OF THIS SECTION; AND4
(12) (a) (I) O
N OR BEFORE DECEMBER 31, 2024, THE DIVISION5
SHALL PREPARE AN AIR QUALITY ENFORCEMENT BENCHMARK REPORT AND6
POST THE REPORT ON THE DIVISION'S WEBSITE. THE REPORT MUST COVER7
THE FEDERAL FISCAL YEARS FROM OCTOBER 1, 2019, THROUGH8
S
EPTEMBER 30, 2023, AND INCLUDE THE FOLLOWING STATEWIDE9
INFORMATION:10
(A) T
HE TOTAL NUMBER OF ENFORCEMENT ACTIONS THAT THE11
DIVISION COMMENCED PURSUANT TO SUBSECTION (2)(c)(I) OF THIS12
SECTION;13
(B) 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
(C) T
HE TOTAL NUMBER OF ENFORCEMENT ACTIONS THAT THE17
DIVISION RESOLVED PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION;18
AND19
(D) W
ITH RESPECT TO CIVIL PENALTIES ASSESSED PURSUANT TO20
SECTION 25-7-122 (1)(b), THE TOTAL AMOUNT OF CIVIL PENALTIES , THE21
AVERAGE CIVIL PENALTY, THE MEDIAN CIVIL PENALTY, THE HIGHEST CIVIL22
PENALTY, AND THE LOWEST CIVIL PENALTY.23
(II) T
HIS SUBSECTION (12)(a) IS REPEALED, EFFECTIVE JULY 1,24
2025.25
(b) O
N OR BEFORE APRIL 1, 2025, AND ON OR BEFORE FEBRUARY26
1
OF EACH YEAR THEREAFTER , THE DIVISION SHALL PREPARE AN AIR27
229
-6- QUALITY ENFORCEMENT REPORT AND POST THE REPORT ON THE DIVISION 'S1
WEBSITE. THE FIRST REPORT MUST COVER THE FEDERAL FISCAL YEAR2
STARTING OCTOBER 1, 2023, THROUGH SEPTEMBER 30, 2024, AND EACH3
SUBSEQUENT REPORT MUST COVER THE FEDERAL FISCAL YEAR PERIOD OF4
O
CTOBER 1 THROUGH SEPTEMBER 30 PRECEDING THE ISSUANCE OF THE5
REPORT. THE REPORTS PREPARED PURSUANT TO THIS SUBSECTION (12)(b)6
MUST INCLUDE THE FOLLOWING STATEWIDE INFORMATION :7
(I) T
HE TOTAL NUMBER OF ENFORCEMENT ACTIONS THAT THE8
DIVISION COMMENCED PURSUANT TO SUBSECTION (2)(c)(I) OF THIS9
SECTION;10
(II) T
HE NUMBER OF COMPLAINTS RECEIVED PURSUANT TO11
SUBSECTION (2)(a) OF THIS SECTION THAT RESULTED IN AN ENFORCEMENT12
ACTION THAT THE DIVISION COMMENCED UNDER SUBSECTION (2)(c)(I) OF13
THIS SECTION AND THE IDENTIFYING CASE NUMBER ;14
(III) T
HE TOTAL NUMBER OF DECISIONS NOT TO IMPOSE A PENALTY15
FOR AN ENFORCEMENT ACTION THAT THE DIVISION COMMENCED16
PURSUANT TO SUBSECTION (2)(c)(I) OF THIS SECTION;17
(IV) T
HE TOTAL NUMBER OF FORMAL ENFORCEMENT ACTIONS18
THAT THE DIVISION RESOLVED PURSUANT TO SUBSECTION (3)(b) OF THIS19
SECTION AND THE TOTAL NUMBER OF ACTIONS THAT INCLUDED20
VIOLATIONS WITHIN AREAS OF CONCERN , SUCH AS:21
(A) T
HE AREA THAT THE UNITED STATES ENVIRONMENTAL22
PROTECTION AGENCY HAS DESIGNATED AN OZONE NONATTAINMENT AREA ;23
AND24
(B) A
N AREA THAT IS IN A DISPROPORTIONATELY IMPACTED25
COMMUNITY; AND26
(V) W
ITH RESPECT TO CIVIL PENALTIES ASSESSED PURSUANT TO27
229
-7- SECTION 25-7-122 (1)(b), THE TOTAL AMOUNT OF CIVIL PENALTIES , THE1
AVERAGE CIVIL PENALTY, THE MEDIAN CIVIL PENALTY, THE HIGHEST CIVIL2
PENALTY, THE LOWEST CIVIL PENALTY, AND THE TOTAL AMOUNT OF CIVIL3
PENALTIES ASSESSED FOR EACH ACTION THAT INCLUDES VIOLATIONS IN4
AREAS OF CONCERN, SUCH AS:5
(A) T
HE AREA THAT THE UNITED STATES ENVIRONMENTAL6
PROTECTION AGENCY HAS DESIGNATED AN OZONE NONATTAINMENT AREA ;7
AND8
(B) A
N AREA THAT IS IN A DISPROPORTIONATELY IMPACTED9
COMMUNITY.10
(13) T
HE DIVISION SHALL IMPLEMENT AN AIR QUALITY11
ENFORCEMENT E-MAIL MAILING GROUP OR A SIMILAR COMMUNICATION12
FUNCTION TO SHARE ENFORCEMENT -RELATED UPDATES WITH INTERESTED13
PARTIES THAT OPT IN TO THE E -MAIL MAILING GROUP OR SIMILAR14
COMMUNICATION FUNCTION . THE DIVISION MAY SHARE INFORMATION15
THROUGH THE E-MAIL MAILING GROUP OR SIMILAR COMMUNICATION16
FUNCTION THAT INCLUDES:17
(a) A
NOTICE OF VIOLATION OR NONCOMPLIANCE SENT PURSUANT18
TO SUBSECTION (2)(c)(I) OF THIS SECTION;19
(b) A
SETTLEMENT OR OTHER ORDER ISSUED PURSUANT TO20
SUBSECTION (3)(b) OF THIS SECTION TO RESOLVE A CASE; AND21
(c) A
LINK TO THE ANNUAL AIR QUALITY ENFORCEMENT22
BENCHMARK REPORT THAT THE DIVISION PREPARES PURSUANT TO23
SUBSECTION (12) OF THIS SECTION.24
SECTION 4. In Colorado Revised Statutes, amend 25-7-121 as25
follows:26
25-7-121. Injunctions. (1) In the event any person fails to27
229
-8- comply with a final order of the division or the commission that is not1
subject to stay pending administrative or judicial review or in the event2
any person violates any emission control regulation of the commission,3
the requirements of the state implementation plan, or any provision of
OR4
COMMISSION RULE ADOPTED PURSUANT TO parts 1 to 4 of this article
5
ARTICLE 7, including any term or condition contained in any permit6
required under this article ARTICLE 7, the division or the commission, as7
the case may be, may request the district attorney for the district in which8
the alleged violation occurs or the attorney general to bring, and if so9
requested it is his or her THE DISTRICT ATTORNEY'S OR THE ATTORNEY10
GENERAL'S duty to bring, a suit for an injunction to:11
(a) Prevent any further or continued violation;12
(b) R
EDUCE THE POTENTIAL FOR A RECURRENCE OF A VIOLATION13
FOR WHICH THE DIVISION HAS PREVIOUSLY COMMENCED ENFORCEMENT14
PURSUANT TO SECTION 25-7-115 (2)(c)(I); OR15
(c) O
BTAIN ANY PERMIT REQUIRED TO CONSTRUCT OR OPERATE .16
(2) In any proceedings brought pursuant to this section to enforce
17
an order of the division or the commission, a temporary restraining order18
or preliminary injunction, if sought, shall not issue if there is probable19
cause to believe that granting such temporary restraining order or20
preliminary injunction will cause serious harm to the affected person or21
any other person and:22
(a) That the alleged violation or activity to which the order23
pertains will not continue or be repeated; or24
(b) That granting such temporary restraining order or preliminary25
injunction would be without sufficient corresponding public benefit.26
(3) Notwithstanding any other provision in this section, no action27
229
-9- for injunction may be taken where the source has obtained a renewable1
operating permit and conducts its operations in compliance with the2
permit terms, as provided in section 25-7-114.4 (3).3
SECTION 5. In Colorado Revised Statutes, 25-7-122, amend4
(1)(b) introductory portion, (1)(c), (2)(a)(I), (2)(a)(II), (2)(a)(III),5
(2)(a)(VIII), (2)(a)(IX), (2)(b) introductory portion, and (2)(b)(IV);6
repeal (2)(b)(V) and (3); and add (2)(a)(X) as follows:7
25-7-122. Civil penalties - rules - definitions. (1) Upon8
application of the division, the division may collect penalties as9
determined under this article 7 by instituting an action in the district court10
for the district in which the air pollution source affected is located, in11
accordance with the following provisions:12
(b) Any person who violates any requirement or prohibition of
A13
FINAL ORDER OF THE DIVISION OR COMMISSION , an applicable emission14
control regulation of the commission, the state implementation plan, a15
construction permit, any provision for the prevention of significant16
deterioration under part 2 of this article 7, any provision related to17
attainment under part 3 of this article 7, or
ANY PROVISION OF OR18
COMMISSION RULE ADOPTED PURSUANT TO section 25-7-105, 25-7-106,19
25-7-106.3, 25-7-108, 25-7-109, 25-7-109.5, 25-7-111, 25-7-112,20
25-7-113, 25-7-114.2, 25-7-114.5, 25-7-118, 25-7-141, 25-7-206,21
25-7-403, 25-7-404, 25-7-405, 25-7-407, 42-4-403, 42-4-404, 42-4-405,22
42-4-406, 42-4-407, 42-4-409, 42-4-410, or 42-4-414 is subject to a civil23
penalty of not more than forty-seven thousand three hundred fifty-seven24
dollars per day for each day of the violation; except that:25
(c) Any person failing to comply with the provisions of section26
25-7-114.1 shall be subject to a civil penalty of not more than five
27
229
-10- hundred ONE THOUSAND dollars PER DAY PER VIOLATION.1
(2) (a) In determining the amount of any civil penalty, the division2
shall consider the following factors:3
(I) The violator's compliance history,
INCLUDING THE COMPLIANCE4
HISTORY OF THE VIOLATOR'S CORPORATE AFFILIATES, SUBSIDIARIES, AND5
PARENT ORGANIZATIONS;6
(II) L
ACK OF good faith efforts on behalf of the violator to7
comply;8
(III) Payment by the violator of penalties previously assessed for
9
the same violation WHETHER THE VIOLATOR PREVIOUSLY COMMITTED THE10
SAME OR A SIMILAR VIOLATION, REGARDLESS OF WHETHER THE DIVISION11
OR COMMISSION COMMENCED AN ENFORCEMENT ACTION PURSUANT TO12
SECTION 25-7-115 FOR ANY SUCH VIOLATION;13
(VIII) Whether legal and factual theories were advanced for14
purposes of delay; and15
(IX) The severity of the violation or noncompliance;
AND16
(X) W
HETHER THE VIOLATION OCCURRED WITHIN OR IMPACTED A17
DISPROPORTIONATELY IMPACTED COMMUNITY .18
(b) In addition to the factors set forth in paragraph (a) of this
19
subsection (2) SUBSECTION (2)(a) OF THIS SECTION, THE DIVISION SHALL20
CONSIDER the following circumstances shall be considered as grounds for21
reducing or eliminating civil penalties:22
(IV) Substantial economic impact of a penalty on the violator;23
AND24
(V) Nonfeasance; and
25
(3) Notwithstanding any other provision in this section, no action26
for civil enforcement of this article may be taken where the source has27
229
-11- obtained a renewable operating permit and conducts its operations in1
compliance with the permit terms, as provided in section 25-7-114.4 (3).2
SECTION 6. 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,
25-7-146,20
25-7-206, 25-7-403, 25-7-404, 25-7-405, 25-7-407, 42-4-403, 42-4-404,21
42-4-405, 42-4-406, 42-4-407, 42-4-409, 42-4-410, or 42-4-414 is subject22
to a civil penalty of not more than forty-seven thousand three hundred23
fifty-seven 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
229
-12- (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
229
-13- compliance with the permit terms, as provided in section 25-7-114.4 (3).1
SECTION 7. In Colorado Revised Statutes, 34-60-103, add (4.2)2
as follows:3
34-60-103. Definitions. As used in this article 60, unless the4
context otherwise requires:5
(4.2) "D
ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE6
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).7
SECTION 8. In Colorado Revised Statutes, 34-60-104.5, amend8
(2)(d)(I); and add (2)(d)(III) as follows:9
34-60-104.5. Director of commission - duties. (2) The director10
of the commission shall:11
(d) (I) Appoint, pursuant to section 13 of article XII of the state12
constitution, such clerical and professional staff and consultants as may13
be necessary for the efficient and effective operation of the commission,14
including at least
one and up to OR two deputy directors; and15
(III) A
PPOINT AT LEAST TWO COMMUNITY LIAISONS TO SERVE AS16
DEDICATED RESOURCES FOR DISPROPORTIONATELY IMPACTED17
COMMUNITIES REGARDING COMMISSION REGULATION . THE COMMUNITY18
LIAISONS SHALL PERFORM DUTIES INCLUDING :19
(A) S
ERVING AS AN ADVOCATE FOR DISPROPORTIONATELY20
IMPACTED COMMUNITIES IN A NONLEGAL CAPACITY AND , WHILE TAKING21
INTO CONSIDERATION THE ENGAGEMENT PRACTICES DESCRIBED IN22
SECTION 24-4-109 (3)(b), ACTING AS A LIAISON BETWEEN23
DISPROPORTIONATELY IMPACTED COMMUNITY MEMBERS AND THE24
COMMISSION, INCLUDING WITH RESPECT TO COMMUNICATIONS REGARDING25
THE PERMITTING PROCESS;26
(B) P
ROVIDING COMMUNITY MEMBERS WITH RELEVANT27
229
-14- INFORMATION REGARDING THIRD -PARTY RESOURCES SUCH AS LEGAL1
ASSISTANCE TO ASSIST COMMUNITY MEMBERS IN PRESENTING THEIR VIEWS2
TO THE COMMISSION;3
(C) W
ORKING TO IMPROVE THE RELATIONSHIPS AND INTERACTIONS4
BETWEEN DISPROPORTIONATELY IMPACTED COMMUNITIES AND THE5
COMMISSION;6
(D) A
CTING AS A RESOURCE FOR SHARING INFORMATION BETWEEN7
THE COMMISSION AND DISPROPORTIONATELY IMPACTED COMMUNITIES ;8
(E) E
NGAGING IN OUTREACH TO DISPROPORTIONATELY IMPACTED9
COMMUNITIES; AND10
(F) O
RGANIZING AND ATTENDING IN -PERSON MEETINGS WITHIN11
DISPROPORTIONATELY IMPACTED COMMUNITIES .12
SECTION 9. In Colorado Revised Statutes, 34-60-106, amend13
(1)(f)(I)(B), (3), and (11)(c)(I); and add (1)(f)(I.5), (11)(c)(III), and (20.5)14
as follows:15
34-60-106. Additional powers of commission - rules -16
definitions - repeal. (1) The commission also shall require:17
(f) (I) That no operations for the drilling of a well for oil and gas18
shall be commenced without first:19
(B) Obtaining a permit from the commission, under rules20
prescribed by the commission; and
21
(I.5) T
HAT OIL AND GAS OPERATIONS SHALL NOT OCCUR WITHOUT22
THE OPERATOR OBTAINING AND MAINTAINING ANY NECESSARY PERMITS23
AND A LICENSE TO C ONDUCT OIL AND GAS OPERATIONS FROM THE24
COMMISSION, IN ACCORDANCE WITH RULES PROMULGATED BY THE25
COMMISSION; AND26
(3) The commission also has the authority to:27
229
-15- (a) Limit the production of oil or gas, or both, from any pool or1
field for the prevention of waste, and to limit and to allocate the2
production from such pool or field among or between tracts of land3
having separate ownerships therein IN THE TRACTS OF LAND, on a fair and4
equitable basis so that each such tract will be permitted to produce no5
more than its just and equitable share from the pool and so as to prevent,6
insofar as is practicable, reasonably avoidable drainage from each such7
tract which THAT is not equalized by counter-drainage; and8
(b) Classify wells as oil or gas wells for purposes material to the9
interpretation or enforcement of this article ARTICLE 60;10
(c) A
FTER CONSULTATION WITH THE DIVISION OF ADMINISTRATION11
IN THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , REQUIRE12
OPERATORS TO TAKE SUCH ACTIONS BETWEEN MAY 1 AND SEPTEMBER 3013
OF EACH YEAR TO REDUCE EMISSIONS OF OXIDES OF NITROGEN (NOX)14
GENERATED FROM PRODUCTION AND PREPRODUCTION OPERATIONS AS THE15
COMMISSION DEEMS APPROPRIATE TO ASSURE COMPLIANCE WITH :16
(I) NO
X INTENSITY TARGETS; AND17
(II) O
THER NOX RULES THAT THE AIR QUALITY CONTROL18
COMMISSION ADOPTS BY RULE TO ACHIEVE SECTOR -WIDE COMPLIANCE19
WITH THE STATE'S 2030 GOALS FOR NOX EMISSION REDUCTIONS; AND20
(d) W
HEN REQUIRING OPERATORS TO TAKE ACTION PURSUANT TO21
SUBSECTION (3)(c) OF THIS SECTION, PRIORITIZE ACTIONS BY THOSE22
OPERATORS THAT DO NOT DEMONSTRATE COMPLIANCE WITH ANY23
APPLICABLE NOX INTENSITY TARGETS OR OTHER NOX RULES THAT THE24
AIR QUALITY CONTROL COMMISSION ADOPTS TO ACHIEVE SECTOR -WIDE25
COMPLIANCE WITH THE STATE 'S 2030 GOALS FOR NOX EMISSION26
REDUCTIONS.27
229
-16- (11) (c) The commission shall adopt rules that:1
(I) Adopt an alternative location analysis process and specify2
criteria used to identify oil and gas locations and facilities proposed to be3
located near populated areas that will be subject to the alternative location4
analysis process; and5
(III) I
N CONSULTATION WITH THE DEPARTMENT OF PUBLIC HEALTH6
AND ENVIRONMENT, REQUIRE ENHANCED SYSTEMS AND PRACTICES TO7
AVOID, MINIMIZE, AND MITIGATE EMISSIONS OF OZONE PRECURSORS FROM8
OPERATIONS AT NEWLY PERMITTED OIL AND GAS LOCATIONS IN THE9
EIGHT-HOUR OZONE CONTROL AREA AND NORTHERN WELD COUNTY, AS10
THOSE TERMS ARE DEFINED BY THE AIR QUALITY CONTROL COMMISSION BY11
RULE. IN ADOPTING THE RULES PURSUANT TO THIS SUBSECTION12
(11)(c)(III),
THE COMMISSION SHALL:13
(A) B
Y SEPTEMBER 30, 2024, ADOPT AN INITIAL LIST OF ENHANCED14
SYSTEMS AND PRACTICES CONSIDERING THE BEST MANAGEMENT15
PRACTICES THAT HAVE BEEN RECOMMENDED BY THE DEPARTMENT OF16
PUBLIC HEALTH AND ENVIRONMENT IN CONSULTATION WITH OPERATORS ;17
(B) C
ONSIDER A PROPOSED OIL AND GAS LOCATION 'S POTENTIAL18
TO CONTRIBUTE TO ADVERSE IMPACTS THROUGH EMISSIONS OF OZONE19
PRECURSORS;20
(C) C
ONSIDER ANY AVAILABLE PHOTOCHEMICAL SENSITIVITY21
MODELING ANALYSES CONDUCTED BY THE DEPARTMENT OF PUBLIC22
HEALTH AND ENVIRONMENT ; AND23
(D) E
VALUATE THE POTENTIAL FOR UPDATES TO THE REQUIRED24
ENHANCED SYSTEMS AND PRACTICES PERIODICALLY TO ACCOUNT FOR25
EVOLVING DESIGN, OPERATIONAL PROCEDURES , AND TECHNOLOGIES TO26
REDUCE OZONE PRECURSORS .27
229
-17- (20.5) THE COMMISSION SHALL ADMINISTER THIS ARTICLE 60 IN A1
MANNER TO MINIMIZE ADVERSE IMPACTS TO DISPROPORTIONATELY2
IMPACTED COMMUNITIES THAT ARE NEGATIVELY AFFECTED BY OIL AND3
GAS OPERATIONS.4
SECTION 10. In Colorado Revised Statutes, amend 34-60-1115
as follows:6
34-60-111. Judicial review. (1) E
XCEPT AS PROVIDED IN7
SUBSECTION (2) OF THIS SECTION, any rule, regulation, or final order of the8
commission shall be
IS subject to judicial review in accordance with the9
provisions of section 24-4-106. C.R.S. The commission shall IS not be10
required to post bond in any proceeding for judicial review.11
(2) N
OTWITHSTANDING SECTION 24-4-106 (5), A COURT OF12
COMPETENT JURISDICTION MAY POSTPONE THE EFFECTIVE DATE OF A13
COMMISSION ORDER SUSPENDING OR REVOKING AN OPERATOR 'S LICENSE14
TO CONDUCT OIL AND GAS OPERATIONS OR A CERTIFICATE OF CLEARANCE15
AND SUBJECT TO REVIEW AS A FINAL AGENCY ACTION PURSUANT TO16
SECTION 24-4-106 ONLY UPON A DEMONSTRATION BY THE MOVING PARTY17
THAT:18
(a) T
HE MOVING PARTY HAS A REASONABLE PROBABILITY OF19
SUCCESS ON THE MERITS IN THE UNDERLYING JUDICIAL PROCEEDING ;20
(b) R
EAL, IMMEDIATE, AND IRREPARABLE INJURY TO THE MOVING21
PARTY WOULD OTHERWISE RESULT ;22
(c) P
OSTPONING THE EFFECTIVE DATE OF THE COMMISSION ORDER23
WILL NOT DISSERVE THE PUBLIC INTEREST; AND24
(d) I
N CONSIDERATION OF THE BALANCE OF EQUITIES , INCLUDING25
CONSIDERATION OF POTENTIAL ADVERSE IMPACTS ON PUBLIC HEALTH ,26
SAFETY, AND WELFARE AND THE PROTECTION OF THE ENVIRONMENT AND27
229
-18- WILDLIFE RESOURCES, THE BALANCE FAVORS THE POSTPONEMENT .1
SECTION 11. In Colorado Revised Statutes, 34-60-121, amend2
(5)(a), (6), and (7) as follows:3
34-60-121. Violations - investigations - penalties - rules -4
definition - legislative declaration. (5) (a) If an operator fails to take5
corrective action required pursuant to subsection (4) of this section, or6
whenever the commission or the director has evidence that a violation of7
any provision of this article ARTICLE 60, or of any rule, regulation, or8
order of the commission, or of any permit has occurred, under9
circumstances deemed to constitute an emergency situation
OR UNDER10
CIRCUMSTANCES THAT CAUSE OR THREATEN TO CAUSE A SIGNIFICANT11
ADVERSE IMPACT TO PUBLIC HEALTH , SAFETY, WELFARE, THE12
ENVIRONMENT, OR WILDLIFE RESOURCES THAT REQUIRE IMMEDIATE13
ACTION, the commission or the director may issue a cease-and-desist14
order to the operator whose act or omission allegedly resulted in such
THE15
violation. Such THE cease-and-desist order shall MUST require such action16
by the operator as the commission or director deems appropriate. The17
order shall be served personally or by certified mail, return receipt18
requested, to the operator or the operator's agent for service of process19
and shall MUST state the provision alleged to have been violated, the facts20
alleged to constitute the violation, the time by which the acts or practices21
cited are required to cease, and any corrective action the commission or22
the director elects to require of the operator.23
(6) If the commission determines, after a hearing conducted in24
accordance with section 34-60-108, that an operator has failed to perform25
any corrective action imposed under subsection (4) of this section or26
failed to comply with a cease-and-desist order issued under subsection (5)27
229
-19- of this section, with regard to a violation of a permit provision, the1
commission may issue an order suspending, modifying, or revoking such2
THE OPERATOR'S permit OR PERMITS OR SUSPENDING OR REVOKING THE3
OPERATOR'S LICENSE TO CONDUCT OIL AND GAS OPERATIONS or may take4
other appropriate action. An operator subject to an order that suspends,5
modifies, or revokes a permit
OR THAT SUSPENDS OR REVOKES THE6
OPERATOR'S LICENSE TO CONDUCT OIL AND GAS OPERATIONS shall7
continue the affected operations only for the purpose of bringing them8
into compliance with the permit or modified permit and shall do so under9
the supervision of the commission. Once the affected operations are in10
compliance to the satisfaction of the commission and any penalty not11
subject to judicial review or appeal has been paid, the commission shall
12
MAY reinstate the permit OR THE LICENSE TO CONDUCT OIL AND GAS13
OPERATIONS.14
(7) (a) The commission or the director shall issue an order to an15
operator to appear for a hearing before the commission in accordance16
with section 34-60-108 whenever the commission or the director has17
evidence that an operator is responsible for:18
(I) Gross negligence or knowing and willful misconduct that19
results in an egregious violation; or20
(II) A pattern of violation of this article ARTICLE 60, any rule or21
order of the commission, or any permit;22
(III) A
VIOLATION OF THIS ARTICLE 60, ANY RULE OR ORDER OF23
THE COMMISSION, OR ANY PERMIT, IF SUCH VIOLATION RESULTS IN A24
COMMISSION ORDER IMPOSING A PENALTY OF ONE MILLION DOLLARS OR25
MORE;26
(IV) A
VIOLATION THAT CAUSED A MAJOR ADVERSE IMPACT , AS27
229
-20- DEFINED IN THE COMMISSION 'S RULES, TO PUBLIC HEALTH, SAFETY,1
WELFARE, THE ENVIRONMENT , OR WILDLIFE RESOURCES AND THE2
VIOLATION IS THE THIRD VIOLATION IN THE STATE IN ONE YEAR THAT3
CAUSED A MAJOR ADVERSE IMPACT , AS DEFINED IN THE COMMISSION'S4
RULES, TO PUBLIC HEALTH, SAFETY, WELFARE, THE ENVIRONMENT, OR5
WILDLIFE RESOURCES; OR6
(V) A
VIOLATION THAT CAUSED DEATH OR SERIOUS BODILY INJURY7
TO AN INDIVIDUAL.8
(b) If the commission finds, after such
THE hearing CONDUCTED9
PURSUANT TO SUBSECTION (7)(a) OF THIS SECTION, that the operator is10
responsible under the legal standards specified in paragraph (a) of this11
subsection (7), it SUBSECTION (7)(a) OF THIS SECTION, THE COMMISSION12
may issue an order that prohibits the issuance of any new permits to the13
operator, suspends any or all of the operator's certificates of clearance,14
SUSPENDS THE OPERATOR 'S LICENSE TO CONDUCT OIL AND GAS15
OPERATIONS, or both. When
ANY COMBINATION OF THE THREE . IF the16
operator demonstrates to the satisfaction of the commission that it THE17
OPERATOR has brought each of the violations into compliance and that18
any penalty not subject to judicial review or appeal has been paid, the19
commission may vacate the order.20
(c) I
N A HEARING CONDUCTED PURSUANT TO THIS SUBSECTION (7),21
THE COMMISSION MAY CONSIDER AS EVIDENCE VIOLATIONS FOR WHICH22
ENFORCEMENT WAS COMMENCED PRIOR TO THE EFFECTIVE DATE OF THIS23
SUBSECTION (7), AS AMENDED, IN DETERMINING WHETHER TO PROHIBIT24
THE ISSUANCE OF ANY NEW PERMITS TO THE OPERATOR , SUSPEND ANY OR25
ALL OF THE OPERATOR'S CERTIFICATES OF CLEARANCE , SUSPEND THE26
OPERATOR'S LICENSE TO CONDUCT OIL AND GAS OPERATIONS , OR ANY27
229
-21- COMBINATION OF THE THREE.1
SECTION 12. In Colorado Revised Statutes, 34-60-124, amend2
(4)(e)(II) and (4)(f); and add (4)(g) as follows:3
34-60-124. Energy and carbon management cash fund -4
definitions - repeal. (4) The fund may be expended:5
(e) (II) This subsection (4)(e) is repealed, effective July 1, 2025.6
and7
(f) To create and maintain the website described in section8
34-60-106 (22);
AND9
(g) B
Y THE COMMISSION TO FUND THE COMMUNITY LIAISON10
POSITIONS APPOINTED PURSUANT TO SECTION 34-60-104.5 (2)(d)(III).11
SECTION 13. In Colorado Revised Statutes, 34-60-133, amend12
(1)(a)(II) and (1)(a)(III); and add (1.5), (2)(e.5), (6)(d)(I.5), and (8)(d.5)13
as follows:14
34-60-133. Orphaned wells mitigation enterprise - creation -15
powers and duties - enterprise board created - mitigation fees - cash16
fund created - rules - definitions - legislative declaration.17
(1) Enterprise created. (a) The orphaned wells mitigation enterprise is18
created in the department for the purpose of:19
(II) Funding the plugging, reclaiming, and remediating of20
orphaned wells
AND MARGINAL WELLS in the state;21
(III) Ensuring that the costs associated with plugging, reclaiming,22
and remediating orphaned wells
AND MARGINAL WELLS are borne by23
operators in the form of mitigation fees; and24
(1.5) Legislative declaration. T
HE GENERAL ASSEMBLY FINDS25
AND DECLARES THAT:26
(a) O
RPHANED WELLS AND MARGINAL WELLS PRESENT RISKS TO27
229
-22- PUBLIC HEALTH, SAFETY, AND WELFARE, INCLUDING RISKS TO THE1
ENVIRONMENT AND WILDLIFE RESOURCES ;2
(b) E
NVIRONMENTAL JUSTICE IS A PRIORITY FOR THE STATE , AND3
THE ENTERPRISE BOARD SHOULD ADMINISTER THIS SECTION IN A MANNER4
THAT REDUCES BURDENS ON OVERBURDENED COMMUNITIES ;5
(c) T
HE ENTERPRISE HELPS MITIGATE RISKS BY PLUGGING ,6
RECLAIMING, AND REMEDIATING ORPHANED WELLS AND THOSE MARGINAL7
WELLS THAT ARE AT THE HIGHEST RISK OF BECOMING ORPHANED ;8
(d) A
LL OIL AND GAS WELLS WILL REQUIRE PLUGGING AND9
RECLAIMING AT THE END OF THEIR USEFUL LIFE;10
(e) M
ANY OIL AND GAS WELLS WILL REQUIRE REMEDIATION AT THE11
END OF THEIR USEFUL LIFE;12
(f) P
URSUANT TO SECTION 34-60-106, ALL OPERATORS ARE13
REQUIRED TO PROVIDE FINANCIAL ASSURANCE DEMONSTRATING THAT THE14
OPERATORS ARE FINANCIALLY CAPABLE OF FULFILLING EVERY OBLIGATION15
IMPOSED ON THE OPERATOR PURSUANT TO THIS ARTICLE 60, INCLUDING AN16
OPERATOR'S PLUGGING, RECLAMATION, AND REMEDIATION OBLIGATIONS;17
AND18
(g) T
HE SERVICES THAT THE ENTERPRISE PROVIDES BENEFIT ALL19
OPERATORS IN THE STATE BY:20
(I) M
ITIGATING THE RISKS OF AN OPERATOR'S OIL AND GAS WELL21
BECOMING AN ORPHANED WELL ; AND22
(II) P
LUGGING, RECLAIMING, AND REMEDIATING QUALIFYING23
MARGINAL WELLS AND ELIMINATING THE RISK OF SUCH QUALIFYING24
MARGINAL WELLS BECOMING ORPHANED WELLS .25
(2) Powers and duties. In addition to any other powers and duties26
specified in this section, the enterprise board has the following general27
229
-23- powers and duties on behalf of the enterprise:1
(e.5) T
O ISSUE GUIDANCE ESTABLISHING ST ANDARDS FOR2
MARGINAL WELLS TO QUALIFY FOR FUNDING PURSUANT TO SUBSECTION3
(1)(a)(II)
OF THIS SECTION. IN ESTABLISHING THESE STANDARDS , THE4
ENTERPRISE BOARD SHALL CONSIDER :5
(I) A
N OIL AND GAS WELL 'S LOCATION IN OR NEAR A6
DISPROPORTIONATELY IMPACTED COMMUNITY OR A HIGHLY POPULATED7
AREA; AND8
(II) A
N OIL AND GAS WELL'S RISK OF ADVERSE IMPACTS ON PUBLIC9
HEALTH, SAFETY, WELFARE, THE ENVIRONMENT , AND WILDLIFE10
RESOURCES; AND11
(6) Cash fund. (d) Money credited to the fund is continuously12
appropriated to the fund for use by the enterprise and shall be expended13
to:14
(I.5) P
LUG, RECLAIM, AND REMEDIATE QUALIFYING MARGINAL15
WELLS, AS DETERMINED BASED ON FACTORS THAT INCLUDE :16
(A) T
HE OIL AND GAS WELL 'S LOCATION IN OR NEAR A17
DISPROPORTIONATELY IMPACTED COMMUNITY OR A HIGHLY POPULATED18
AREA; AND19
(B) T
HE OIL AND GAS WELL'S RISK OF ADVERSE IMPACTS ON PUBLIC20
HEALTH, SAFETY, WELFARE, THE ENVIRONMENT , AND WILDLIFE21
RESOURCES;22
(8) Definitions. As used in this section, unless the context23
otherwise requires:24
(d.5) "M
ARGINAL WELL" MEANS AN OIL AND GAS WELL THAT25
PRESENTS A HIGH RISK OF BECOMING ORPHANED .26
SECTION 14. Appropriation. (1) For the 2024-25 state fiscal
27
229
-24- year, $492,928 is appropriated to the department of public health and1
environment. This appropriation is from the general fund. To implement2
this act, the department may use this appropriation as follows:3
(a) $75,846 for use by the air pollution control division for4
personal services related to stationary sources, which amount is based on5
an assumption that the division will require an additional 0.8 FTE;6
(b) $301,864 for use by the air pollution control division for7
operating expenses related to stationary sources; and8
(c) $115,218 for the purchase of legal services.9
(2) For the 2024-25 state fiscal year, $115,218 is appropriated to10
the department of law. This appropriation is from reappropriated funds11
received from the department of public health and environment under12
subsection (1)(c) of this section and is based on an assumption that the13
department of law will require an additional 0.5 FTE. To implement this14
act, the department of law may use this appropriation to provide legal15
services for the department of public health and environment.16
(3) For the 2024-25 state fiscal year, $179,127 is appropriated to17
the department of natural resources for use by the energy and carbon18
management commission. This appropriation is from the energy and19
carbon management cash fund created in section 34-60-122 (5)(a),20
C.R.S., and is based on an assumption that the commission will require21
an additional 2.0 FTE. To implement this act, the commission may use22
this appropriation for program costs.23
SECTION 15. Effective date - applicability. (1) (a) Except as24
otherwise provided in this subsection (1), this act takes effect upon25
passage.26
(b) Section 6 of this act takes effect only if House Bill 24-133827
229
-25- becomes law, in which case section 6 of this act takes effect upon1
passage.2
(c) Section 5 of this act takes effect only if House Bill 24-13383
does not become law, in which case section 5 of this act takes effect upon4
passage.5
(2) This act applies to enforcement actions commenced by the6
division of administration in the department of public health and7
environment and the energy and carbon management commission on or8
after the effective date of this act.9
SECTION 16. Safety clause. The general assembly finds,10
determines, and declares that this act is necessary for the immediate11
preservation of the public peace, health, or safety or for appropriations for12
the support and maintenance of the departments of the state and state13
institutions.14
229
-26-