SENATE BILL 24-229
BY SENATOR(S) Winter F. and Priola, Buckner, Coleman, Cutter, Exum,
Fenberg, Hansen, Jaquez Lewis, Marchman, Michaelson Jenet, Gonzales,
Hinrichsen, Kolker;
also REPRESENTATIVE(S) 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, Bird, Epps, Hamrick, Lukens,
Mabrey, Marshall, Parenti, Sirota, Snyder.
C
ONCERNING MEASURES TO MITIGATE OZONE POLLUTION IN THE STATE ,
AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds and determines that:
(a) Emissions of ozone precursors, such as oxides of nitrogen (NOx)
and volatile organic compounds, contribute to the formation of ozone and
to public health impacts for individuals exposed to higher levels of air
pollution;
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (b) Oil and gas activities are among the largest anthropogenic
contributors to ozone precursor emissions in the ozone nonattainment area;
(c) Sources of NOx from upstream oil and gas operations present
significant opportunities to reduce ozone precursors and improve public
health;
(d) Residents of disproportionately impacted communities in the
ozone nonattainment area may be exposed to higher levels of NOx than
other Coloradans;
(e) The air quality control commission adopted rules in December
2023 designed to achieve a thirty percent reduction in NOx emissions
generated by upstream oil and gas operations, including preproduction
operations, by 2025;
(f) Despite efforts to reduce ozone precursor emissions in the ozone
nonattainment area, more work is necessary to protect public health;
(g) State agencies cannot improve air quality through regulations
alone and need more permitting and enforcement authority to ensure
compliance with the state's environmental statutes and rules; and
(h) Transparency for the public regarding the state's efforts is
critical.
(2) Therefore, the general assembly declares that:
(a) Both the Colorado department of public health and environment
and the energy and carbon management commission need to do more, both
together and individually, to address the state's ozone problems;
(b) More accountability for sources of pollution and for the state
will build public trust and improve air quality;
(c) The Colorado department of public health and environment's air
pollution control division should consider more stringent approaches in the
process of conducting dispersion modeling of proposed sources of increased
NOx to better protect residents of disproportionately impacted communities
PAGE 2-SENATE BILL 24-229 in the ozone nonattainment area;
(d) Further action needs to be taken to require steady, measurable
emission reductions from upstream oil and gas operations, including
preproduction operations, to ensure the oil and gas industry adequately
contributes to ozone precursor pollution reductions; and
(e) The energy and carbon management commission should
encourage and facilitate the plugging, abandonment, and remediation of
marginal wells to address emissions of ozone precursors from production
activities, especially in disproportionately impacted communities.
SECTION 2. In Colorado Revised Statutes, 25-7-109, add (10)(d)
as follows:
25-7-109. Commission to promulgate emission control
regulations. (10) (d) O
N OR BEFORE AUGUST 31, 2026, THE DIVISION SHALL
PROPOSE RULES DESIGNED TO REDUCE EMISSIONS OF OXIDES OF NITROGEN
(NOX) GENERATED BY UPSTREAM OIL AND GAS OPERATIONS , AS DEFINED BY
THE COMMISSION BY RULE
, INCLUDING PREPRODUCTION OPERATIONS ,
BETWEEN MAY 1 AND SEPTEMBER 30 IN THE EIGHT-HOUR OZONE CONTROL
AREA AND NORTHERN
WELD COUNTY, AS THOSE TERMS ARE DEFINED BY THE
COMMISSION BY RULE
, BY FIFTY PERCENT BY 2030 RELATIVE TO 2017 NOX
EMISSION LEVELS
. NOX EMISSION LEVELS ARE CHARACTERIZED BY THE MOST
RECENT STATE INVENTORY OF
NOX EMISSIONS FOR 2017 THAT THE
COMMISSION ADOPTED FOR THE PURPOSE OF INCLUSION IN THE STATE
IMPLEMENTATION PLAN FOR THE
2015 EIGHT-HOUR OZONE NATIONAL
AMBIENT AIR QUALITY STANDARD
, OR AS PUBLISHED CONCURRENTLY WITH
PROPOSED RULES CONSISTENT WITH THIS SUBSECTION
(10)(d) IN A NOTICE
OF PROPOSED RULE
-MAKING PUBLISHED IN ACCORDANCE WITH SECTION
25-7-110 (1).
SECTION 3. In Colorado Revised Statutes, 25-7-115, amend
(3)(b)(III) introductory portion and (3)(b)(III)(C); and add (3)(b)(III)(C.5),
(12), and (13) as follows:
25-7-115. Enforcement - civil actions - definitions - reporting -
repeal. (3) (b) (III) The order
ISSUED IN ACCORDANCE WITH SUBSECTION
(3)(b)(I) OF THIS SECTION may:
PAGE 3-SENATE BILL 24-229 (C) In addition to civil penalties, include a requirement to perform
one or more projects to mitigate violations related to excess emissions; and
(C.5) IN ADDITION TO CIVIL PENALTIES, INCLUDE A REQUIREMENT TO
PERFORM ONE OR MORE PROJECTS TO REDUCE THE POTENTIAL FOR A
RECURRENCE OF A VIOLATION FOR WHICH THE DIVISION COMMENCED
ENFORCEMENT PURSUANT TO SUBSECTION
(2)(c)(I) OF THIS SECTION; AND
(12) (a) (I) ON OR BEFORE DECEMBER 31, 2024, THE DIVISION SHALL
PREPARE AN AIR QUALITY ENFORCEMENT BENCHMARK REPORT AND POST
THE REPORT ON THE DIVISION
'S WEBSITE. THE REPORT MUST COVER THE
FEDERAL FISCAL YEARS FROM
OCTOBER 1, 2019, THROUGH SEPTEMBER 30,
2023,
AND INCLUDE THE FOLLOWING STATEWIDE INFORMATION :
(A) T
HE TOTAL NUMBER OF ENFORCEMENT ACTIONS THAT THE
DIVISION COMMENCED PURSUANT TO SUBSECTION
(2)(c)(I) OF THIS SECTION;
(B) T
HE TOTAL NUMBER OF DECISIONS NOT TO IMPOSE A PENALTY
FOR AN ENFORCEMENT ACTION THAT THE DIVISION COMMENCED PURSUANT
TO SUBSECTION
(2)(c)(I) OF THIS SECTION;
(C) T
HE TOTAL NUMBER OF ENFORCEMENT ACTIONS THAT THE
DIVISION RESOLVED PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION; AND
(D) WITH RESPECT TO CIVIL PENALTIES ASSESSED PURSUANT TO
SECTION
25-7-122 (1)(b), THE TOTAL AMOUNT OF CIVIL PENALTIES , THE
AVERAGE CIVIL PENALTY
, THE MEDIAN CIVIL PENALTY, THE HIGHEST CIVIL
PENALTY
, AND THE LOWEST CIVIL PENALTY.
(II) T
HIS SUBSECTION (12)(a) IS REPEALED, EFFECTIVE JULY 1, 2025.
(b) O
N OR BEFORE APRIL 1, 2025, AND ON OR BEFORE FEBRUARY 1
OF EACH YEAR THEREAFTER, THE DIVISION SHALL PREPARE AN AIR QUALITY
ENFORCEMENT REPORT AND POST THE REPORT ON THE DIVISION
'S WEBSITE.
T
HE FIRST REPORT MUST COVER THE FEDERAL FISCAL YEAR STARTING
OCTOBER 1, 2023, THROUGH SEPTEMBER 30, 2024, AND EACH SUBSEQUENT
REPORT MUST COVER THE FEDERAL FISCAL YEAR PERIOD OF
OCTOBER 1
THROUGH SEPTEMBER 30 PRECEDING THE ISSUANCE OF THE REPORT . THE
REPORTS PREPARED PURSUANT TO THIS SUBSECTION
(12)(b) MUST INCLUDE
THE FOLLOWING STATEWIDE INFORMATION
:
PAGE 4-SENATE BILL 24-229 (I) THE TOTAL NUMBER OF ENFORCEMENT ACTIONS THAT THE
DIVISION COMMENCED PURSUANT TO SUBSECTION
(2)(c)(I) OF THIS SECTION;
(II) T
HE NUMBER OF COMPLAINTS RECEIVED PURSUANT TO
SUBSECTION
(2)(a) OF THIS SECTION THAT RESULTED IN AN ENFORCEMENT
ACTION THAT THE DIVISION COMMENCED UNDER SUBSECTION
(2)(c)(I) OF
THIS SECTION AND THE IDENTIFYING CASE NUMBER
;
(III) T
HE TOTAL NUMBER OF DECISIONS NOT TO IMPOSE A PENALTY
FOR AN ENFORCEMENT ACTION THAT THE DIVISION COMMENCED PURSUANT
TO SUBSECTION
(2)(c)(I) OF THIS SECTION;
(IV) T
HE TOTAL NUMBER OF FORMAL ENFORCEMENT ACTIONS THAT
THE DIVISION RESOLVED PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION
AND THE TOTAL NUMBER OF ACTIONS THAT INCLUDED VIOLATIONS WITHIN
AREAS OF CONCERN
, SUCH AS:
(A) T
HE AREA THAT THE UNITED STATES ENVIRONMENTAL
PROTECTION AGENCY HAS DESIGNATED AN OZONE NONATTAINMENT AREA
;
AND
(B) AN AREA THAT IS IN A DISPROPORTIONATELY IMPACTED
COMMUNITY
; AND
(V) WITH RESPECT TO CIVIL PENALTIES ASSESSED PURSUANT TO
SECTION
25-7-122 (1)(b), THE TOTAL AMOUNT OF CIVIL PENALTIES , THE
AVERAGE CIVIL PENALTY
, THE MEDIAN CIVIL PENALTY, THE HIGHEST CIVIL
PENALTY
, THE LOWEST CIVIL PENALTY, AND THE TOTAL AMOUNT OF CIVIL
PENALTIES ASSESSED FOR EACH ACTION THAT INCLUDES VIOLATIONS IN
AREAS OF CONCERN
, SUCH AS:
(A) T
HE AREA THAT THE UNITED STATES ENVIRONMENTAL
PROTECTION AGENCY HAS DESIGNATED AN OZONE NONATTAINMENT AREA
;
AND
(B) AN AREA THAT IS IN A DISPROPORTIONATELY IMPACTED
COMMUNITY
.
(13) T
HE DIVISION SHALL IMPLEMENT AN AIR QUALITY
ENFORCEMENT E
-MAIL MAILING GROUP OR A SIMILAR COMMUNICATION
PAGE 5-SENATE BILL 24-229 FUNCTION TO SHARE ENFORCEMENT -RELATED UPDATES WITH INTERESTED
PARTIES THAT OPT IN TO THE E
-MAIL MAILING GROUP OR SIMILAR
COMMUNICATION FUNCTION
. THE DIVISION MAY SHARE INFORMATION
THROUGH THE E
-MAIL MAILING GROUP OR SIMILAR COMMUNICATION
FUNCTION THAT INCLUDES
:
(a) A
NOTICE OF VIOLATION OR NONCOMPLIANCE SENT PURSUANT TO
SUBSECTION
(2)(c)(I) OF THIS SECTION;
(b) A
SETTLEMENT OR OTHER ORDER ISSUED PURSUANT TO
SUBSECTION
(3)(b) OF THIS SECTION TO RESOLVE A CASE; AND
(c) A LINK TO THE ANNUAL AIR QUALITY ENFORCEMENT BENCHMARK
REPORT THAT THE DIVISION PREPARES PURSUANT TO SUBSECTION
(12) OF
THIS SECTION
.
SECTION 4. In Colorado Revised Statutes, amend 25-7-121 as
follows:
25-7-121. Injunctions. (1) In the event any person fails to comply
with a final order of the division or the commission that is not subject to
stay pending administrative or judicial review or in the event any person
violates any emission control regulation of the commission, the
requirements of the state implementation plan, or any provision of
OR
COMMISSION RULE ADOPTED PURSUANT TO
parts 1 to 4 of this article
ARTICLE 7, including any term or condition contained in any permit required
under this article ARTICLE 7, the division or the commission, as the case may
be, may request the district attorney for the district in which the alleged
violation occurs or the attorney general to bring, and if so requested it is his
or her THE DISTRICT ATTORNEY'S OR THE ATTORNEY GENERAL 'S duty to
bring, a suit for an injunction to:
(a) Prevent any further or continued violation;
(b) R
EDUCE THE POTENTIAL FOR A RECURRENCE OF A VIOLATION FOR
WHICH THE DIVISION HAS PREVIOUSLY COMMENCED ENFORCEMENT
PURSUANT TO SECTION
25-7-115 (2)(c)(I); OR
(c) OBTAIN ANY PERMIT REQUIRED TO CONSTRUCT OR OPERATE .
PAGE 6-SENATE BILL 24-229 (2) In any proceedings brought pursuant to this section to enforce an
order of the division or the commission, a temporary restraining order or
preliminary injunction, if sought, shall not issue if there is probable cause
to believe that granting such temporary restraining order or preliminary
injunction will cause serious harm to the affected person or any other person
and:
(a) That the alleged violation or activity to which the order pertains
will not continue or be repeated; or
(b) That granting such temporary restraining order or preliminary
injunction would be without sufficient corresponding public benefit.
(3) Notwithstanding any other provision in this section, no action for
injunction may be taken where the source has obtained a renewable
operating permit and conducts its operations in compliance with the permit
terms, as provided in section 25-7-114.4 (3).
SECTION 5. In Colorado Revised Statutes, 25-7-122, amend
(1)(b) introductory portion, (1)(c), (2)(a)(I), (2)(a)(II), (2)(a)(III),
(2)(a)(VIII), (2)(a)(IX), (2)(b) introductory portion, and (2)(b)(IV); repeal
(2)(b)(V) and (3); and add (2)(a)(X) as follows:
25-7-122. Civil penalties - rules - definitions. (1) Upon
application of the division, the division may collect penalties as determined
under this article 7 by instituting an action in the district court for the
district in which the air pollution source affected is located, in accordance
with the following provisions:
(b) Any person who violates any requirement or prohibition of
A
FINAL ORDER OF THE DIVISION OR COMMISSION
, an applicable emission
control regulation of the commission, the state implementation plan, a
construction permit, any provision for the prevention of significant
deterioration under part 2 of this article 7, any provision related to
attainment under part 3 of this article 7, or
ANY PROVISION OF OR
COMMISSION RULE ADOPTED PURSUANT TO
section 25-7-105, 25-7-106,
25-7-106.3, 25-7-108, 25-7-109, 25-7-109.5, 25-7-111, 25-7-112, 25-7-113,
25-7-114.2, 25-7-114.5, 25-7-118, 25-7-141, 25-7-206, 25-7-403, 25-7-404,
25-7-405, 25-7-407, 42-4-403, 42-4-404, 42-4-405, 42-4-406, 42-4-407,
42-4-409, 42-4-410, or 42-4-414 is subject to a civil penalty of not more
PAGE 7-SENATE BILL 24-229 than forty-seven thousand three hundred fifty-seven dollars per day for each
day of the violation; except that:
(c) Any person failing to comply with the provisions of section
25-7-114.1 shall be subject to a civil penalty of not more than five hundred
ONE THOUSAND dollars PER DAY PER VIOLATION.
(2) (a) In determining the amount of any civil penalty, the division
shall consider the following factors:
(I) The violator's compliance history,
INCLUDING THE COMPLIANCE
HISTORY OF THE VIOLATOR
'S CORPORATE AFFILIATES, SUBSIDIARIES, AND
PARENT ORGANIZATIONS
;
(II) L
ACK OF good faith efforts on behalf of the violator to comply;
(III) Payment by the violator of penalties previously assessed for the
same violation WHETHER THE VIOLATOR PREVIOUSLY COMMITTED THE SAME
OR A SIMILAR VIOLATION
, REGARDLESS OF WHETHER THE DIVISION OR
COMMISSION COMMENCED AN ENFORCEMENT ACTION PURSUANT TO SECTION
25-7-115 FOR ANY SUCH VIOLATION;
(VIII) Whether legal and factual theories were advanced for
purposes of delay; and (IX) The severity of the violation or noncompliance; AND
(X) WHETHER THE VIOLATION OCCURRED WITHIN OR IMPACTED A
DISPROPORTIONATELY IMPACTED COMMUNITY
.
(b) In addition to the factors set forth in paragraph (a) of thissubsection (2) SUBSECTION (2)(a) OF THIS SECTION, THE DIVISION SHALL
CONSIDER
the following circumstances shall be considered
as grounds for
reducing or eliminating civil penalties:
(IV) Substantial economic impact of a penalty on the violator;
AND
(V) Nonfeasance; and
(3) Notwithstanding any other provision in this section, no action for
PAGE 8-SENATE BILL 24-229 civil enforcement of this article may be taken where the source has obtained
a renewable operating permit and conducts its operations in compliance
with the permit terms, as provided in section 25-7-114.4 (3).
SECTION 6. In Colorado Revised Statutes, 25-7-122, amend
(1)(b) introductory portion, (1)(c), (2)(a)(I), (2)(a)(II), (2)(a)(III),
(2)(a)(VIII), (2)(a)(IX), (2)(b) introductory portion, and (2)(b)(IV); repeal
(2)(b)(V) and (3); and add (2)(a)(X) as follows:
25-7-122. Civil penalties - rules - definitions. (1) Upon
application of the division, the division may collect penalties as determined
under this article 7 by instituting an action in the district court for the
district in which the air pollution source affected is located, in accordance
with the following provisions:
(b) Any person who violates any requirement or prohibition of
A
FINAL ORDER OF THE DIVISION OR COMMISSION
, an applicable emission
control regulation of the commission, the state implementation plan, a
construction permit, any provision for the prevention of significant
deterioration under part 2 of this article 7, any provision related to
attainment under part 3 of this article 7, or
ANY PROVISION OF OR
COMMISSION RULE ADOPTED PURSUANT TO
section 25-7-105, 25-7-106,
25-7-106.3, 25-7-108, 25-7-109, 25-7-109.5, 25-7-111, 25-7-112, 25-7-113,
25-7-114.2, 25-7-114.5, 25-7-118, 25-7-141,
25-7-146, 25-7-206, 25-7-403,
25-7-404, 25-7-405, 25-7-407, 42-4-403, 42-4-404, 42-4-405, 42-4-406,
42-4-407, 42-4-409, 42-4-410, or 42-4-414 is subject to a civil penalty of
not more than forty-seven thousand three hundred fifty-seven dollars per
day for each day of the violation; except that:
(c) Any person failing to comply with the provisions of section
25-7-114.1 shall be subject to a civil penalty of not more than five hundredONE THOUSAND dollars PER DAY PER VIOLATION.
(2) (a) In determining the amount of any civil penalty, the division
shall consider the following factors:
(I) The violator's compliance history,
INCLUDING THE COMPLIANCE
HISTORY OF THE VIOLATOR
'S CORPORATE AFFILIATES, SUBSIDIARIES, AND
PARENT ORGANIZATIONS
;
PAGE 9-SENATE BILL 24-229 (II) LACK OF good faith efforts on behalf of the violator to comply;
(III) Payment by the violator of penalties previously assessed for the
same violation WHETHER THE VIOLATOR PREVIOUSLY COMMITTED THE SAME
OR A SIMILAR VIOLATION
, REGARDLESS OF WHETHER THE DIVISION OR
COMMISSION COMMENCED AN ENFORCEMENT ACTION PURSUANT TO SECTION
25-7-115 FOR ANY SUCH VIOLATION;
(VIII) Whether legal and factual theories were advanced for
purposes of delay; and (IX) The severity of the violation or noncompliance; AND
(X) WHETHER THE VIOLATION OCCURRED WITHIN OR IMPACTED A
DISPROPORTIONATELY IMPACTED COMMUNITY
.
(b) In addition to the factors set forth in paragraph (a) of thissubsection (2) SUBSECTION (2)(a) OF THIS SECTION, THE DIVISION SHALL
CONSIDER
the following circumstances shall be considered
as grounds for
reducing or eliminating civil penalties:
(IV) Substantial economic impact of a penalty on the violator;
AND
(V) Nonfeasance; and
(3) Notwithstanding any other provision in this section, no action for
civil enforcement of this article may be taken where the source has obtained
a renewable operating permit and conducts its operations in compliance
with the permit terms, as provided in section 25-7-114.4 (3).
SECTION 7. In Colorado Revised Statutes, 25-7-114.5, amend (3)
as follows:
25-7-114.5. Application review - public participation. (3) The
division shall also determine whether applications are for a new source
activity that may have an impact upon areas which, as of the projected new
source start-up date, are in compliance with national ambient air quality
standards as of the date of the permit application, or for new source activity
that may have an impact upon areas which, as of the projected new source
start-up date, are not in compliance with national ambient air quality
PAGE 10-SENATE BILL 24-229 standards as of the date of the permit application. IN IMPLEMENTING THIS
SUBSECTION
(3), THE DIVISION MAY CONSIDER MORE STRINGENT METHODS
FOR NEW SOURCES OF OXIDES OF NITROGEN IN DISPROPORTIONATELY
IMPACTED COMMUNITIES IN THE AREA DESIGNATED NONATTAINMENT FOR
OZONE BY THE
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY .
SECTION 8. In Colorado Revised Statutes, 34-60-103, add (8) as
follows:
34-60-103. Definitions. As used in this article 60, unless the context
otherwise requires:
(8) "D
ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE
MEANING SET FORTH IN SECTION
24-4-109 (2)(b)(II).
SECTION 9. In Colorado Revised Statutes, 34-60-104.5, amend
(2)(d)(I); and add (2)(d)(III) as follows:
34-60-104.5. Director of commission - duties. (2) The director of
the commission shall:
(d) (I) Appoint, pursuant to section 13 of article XII of the state
constitution, such clerical and professional staff and consultants as may be
necessary for the efficient and effective operation of the commission,
including at least
one and up to OR two deputy directors; and
(III) APPOINT AT LEAST TWO COMMUNITY LIAISONS TO SERVE AS
DEDICATED RESOURCES FOR DISPROPORTIONATELY IMPACTED COMMUNITIES
REGARDING COMMISSION REGULATION
. THE COMMUNITY LIAISONS SHALL
PERFORM DUTIES INCLUDING
:
(A) S
ERVING AS AN ADVOCATE FOR DISPROPORTI ONATELY IMPACTED
COMMUNITIES IN A NONLEGAL CAPACITY AND
, WHILE TAKING INTO
CONSIDERATION THE ENGAGEMENT PRACTICES DESCRIBED IN SECTION
24-4-109 (3)(b), ACTING AS A LIAISON BETWEEN DISPROPORTIONATELY
IMPACTED COMMUNITY MEMBERS AND THE COMMISSION
, INCLUDING WITH
RESPECT TO COMMUNICATIONS REGARDING THE PERMITTING PROCESS
;
(B) P
ROVIDING COMMUNITY MEMBERS WITH RELEVANT
INFORMATION REGARDING THIRD
-PARTY RESOURCES SUCH AS LEGAL
PAGE 11-SENATE BILL 24-229 ASSISTANCE TO ASSIST COMMUNITY MEMBERS IN PRESENTING THEIR VIEWS
TO THE COMMISSION
;
(C) W
ORKING TO IMPROVE THE RELATIONSHIPS AND INTERACTIONS
BETWEEN DISPROPORTIONATELY IMPACTED COMMUNITIES AND THE
COMMISSION
;
(D) A
CTING AS A RESOURCE FOR SHARING INFORMATION BETWEEN
THE COMMISSION AND DISPROPORTIONATELY IMPACTED COMMUNITIES
;
(E) E
NGAGING IN OUTREACH TO DISPROPORTIONATELY IMPACTED
COMMUNITIES
; AND
(F) ORGANIZING AND ATTENDING IN -PERSON MEETINGS WITHIN
DISPROPORTIONATELY IMPACTED COMMUNITIES
.
SECTION 10. In Colorado Revised Statutes, 34-60-106, amend
(1)(f)(I)(B), (3), and (11)(c)(I); and add (1)(f)(I.5), (11)(c)(III), and (20.5)
as follows:
34-60-106. Additional powers of commission - rules - definitions
- repeal. (1) The commission also shall require:
(f) (I) That no operations for the drilling of a well for oil and gas
shall be commenced without first:
(B) Obtaining a permit from the commission, under rules prescribed
by the commission; and
(I.5) THAT OIL AND GAS OPERATIONS SHALL NOT OCCUR WITHOUT
THE OPERATOR OBTAINING AND MAINTAINING ANY NECESSARY PERMITS AND
A LICENSE TO CONDUCT OIL AND GAS OPERATIONS FROM THE COMMISSION
,
IN ACCORDANCE WITH RULES PROMULGATED BY THE COMMISSION ; AND
(3) The commission also has the authority to:
(a) Limit the production of oil or gas, or both, from any pool or field
for the prevention of waste, and to limit and to allocate the production from
such pool or field among or between tracts of land having separate
ownerships therein
IN THE TRACTS OF LAND, on a fair and equitable basis so
PAGE 12-SENATE BILL 24-229 that each such tract will be permitted to produce no more than its just and
equitable share from the pool and so as to prevent, insofar as is practicable,
reasonably avoidable drainage from each such tract which
THAT is not
equalized by counter-drainage; and
(b) Classify wells as oil or gas wells for purposes material to the
interpretation or enforcement of this article ARTICLE 60;
(c) A
FTER CONSULTATION WITH THE DIVISION OF ADMINISTRATION
IN THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT
, REQUIRE
OPERATORS TO TAKE SUCH ACTIONS BETWEEN
MAY 1 AND SEPTEMBER 30 OF
EACH YEAR TO REDUCE EMISSIONS OF OXIDES OF NITROGEN
(NOX)
GENERATED FROM PRODUCTION AND PREPRODUCTION OPERATIONS AS THE
COMMISSION DEEMS APPROPRIATE TO ASSURE COMPLIANCE WITH
:
(I) NO
X INTENSITY TARGETS; AND
(II) OTHER NOX RULES THAT THE AIR QUALITY CONTROL
COMMISSION ADOPTS BY RULE TO ACHIEVE SECTOR
-WIDE COMPLIANCE WITH
THE STATE
'S 2030 GOALS FOR NOX EMISSION REDUCTIONS; AND
(d) WHEN REQUIRING OPERATORS TO TAKE ACTION PURSUANT TO
SUBSECTION
(3)(c) OF THIS SECTION, PRIORITIZE ACTIONS BY THOSE
OPERATORS THAT DO NOT DEMONSTRATE COMPLIANCE WITH ANY
APPLICABLE
NOX INTENSITY TARGETS OR OTHER NOX RULES THAT THE AIR
QUALITY CONTROL COMMISSION ADOPTS TO ACHIEVE SECTOR
-WIDE
COMPLIANCE WITH THE STATE
'S 2030 GOALS FOR NOX EMISSION
REDUCTIONS
.
(11) (c) The commission shall adopt rules that:
(I) Adopt an alternative location analysis process and specify criteria
used to identify oil and gas locations and facilities proposed to be located
near populated areas that will be subject to the alternative location analysis
process; and
(III) IN CONSULTATION WITH THE DEPARTMENT OF PUBLIC HEALTH
AND ENVIRONMENT
, REQUIRE ENHANCED SYSTEMS AND PRACTICES TO
AVOID
, MINIMIZE, AND MITIGATE EMISSIONS OF OZONE PRECURSORS FROM
OPERATIONS AT NEWLY PERMITTED OIL AND GAS LOCATIONS IN THE
PAGE 13-SENATE BILL 24-229 EIGHT-HOUR OZONE CONTROL AREA AND NORTHERN WELD COUNTY, AS
THOSE TERMS ARE DEFINED BY THE AIR QUALITY CONTROL COMMISSION BY
RULE
. IN ADOPTING THE RULES PURSUANT TO THIS SUBSECTION (11)(c)(III),
THE COMMISSION SHALL:
(A) B
Y SEPTEMBER 30, 2024, ADOPT AN INITIAL LIST OF ENHANCED
SYSTEMS AND PRACTICES CONSIDERING THE BEST MANAGEMENT PRACTICES
THAT HAVE BEEN RECOMMENDED BY THE DEPARTMENT OF PUBLIC HEALTH
AND ENVIRONMENT IN CONSULTATION WITH OPERATORS
;
(B) C
ONSIDER A PROPOSED OIL AND GAS LOCATION 'S POTENTIAL TO
CONTRIBUTE TO ADVERSE IMPACTS THROUGH EMISSIONS OF OZONE
PRECURSORS
;
(C) C
ONSIDER ANY AVAILABLE PHOTOCHEMICAL SENSITIVITY
MODELING ANALYSES CONDUCTED BY THE DEPARTMENT OF PUBLIC HEALTH
AND ENVIRONMENT
; AND
(D) EVALUATE THE POTENTIAL FOR UPDATES TO THE REQUIRED
ENHANCED SYSTEMS AND PRACTICES PERIODICALLY TO ACCOUNT FOR
EVOLVING DESIGN
, OPERATIONAL PROCEDURES , AND TECHNOLOGIES TO
REDUCE OZONE PRECURSORS
.
(20.5) T
HE COMMISSION SHALL ADMINISTER THIS ARTICLE 60 IN A
MANNER TO MINIMIZE ADVERSE IMPACTS TO DISPROPORTIONATELY
IMPACTED COMMUNITIES THAT ARE NEGATIVELY AFFECTED BY OIL AND GAS
OPERATIONS
.
SECTION 11. In Colorado Revised Statutes, amend 34-60-111 as
follows:
34-60-111. Judicial review. (1) E
XCEPT AS PROVIDED IN
SUBSECTION
(2) OF THIS SECTION, any rule, regulation, or final order of the
commission shall be
IS subject to judicial review in accordance with the
provisions of section 24-4-106. C.R.S. The commission shall IS not be
required to post bond in any proceeding for judicial review.
(2) N
OTWITHSTANDING SECTION 24-4-106 (5), A COURT OF
COMPETENT JURISDICTION MAY POSTPONE THE EFFECTIVE DATE OF A
COMMISSION ORDER SUSPENDING OR REVOKING AN OPERATOR
'S LICENSE TO
PAGE 14-SENATE BILL 24-229 CONDUCT OIL AND GAS OPERATIONS OR A CERTIFICATE OF CLEARANCE AND
SUBJECT TO REVIEW AS A FINAL AGENCY ACTION PURSUANT TO SECTION
24-4-106 ONLY UPON A DEMONSTRATION BY THE MOVING PARTY THAT :
(a) T
HE MOVING PARTY HAS A REASONABLE PROBABILITY OF
SUCCESS ON THE MERITS IN THE UNDERLYING JUDICIAL PROCEEDING
;
(b) R
EAL, IMMEDIATE, AND IRREPARABLE INJURY TO THE MOVING
PARTY WOULD OTHERWISE RESULT
;
(c) P
OSTPONING THE EFFECTIVE DATE OF THE COMMISSION ORDER
WILL NOT DISSERVE THE PUBLIC INTEREST
; AND
(d) IN CONSIDERATION OF THE BALANCE OF EQUITIES , INCLUDING
CONSIDERATION OF POTENTIAL ADVERSE IMPACTS ON PUBLIC HEALTH
,
SAFETY, AND WELFARE AND THE PROTECTION OF THE ENVIRONMENT AND
WILDLIFE RESOURCES
, THE BALANCE FAVORS THE POSTPONEMENT .
SECTION 12. In Colorado Revised Statutes, 34-60-121, amend
(5)(a), (6), and (7) as follows:
34-60-121. Violations - investigations - penalties - rules -
definition - legislative declaration. (5) (a) If an operator fails to take
corrective action required pursuant to subsection (4) of this section, or
whenever the commission or the director has evidence that a violation of
any provision of
this article ARTICLE 60, or of any rule, regulation, or order
of the commission, or of any permit has occurred, under circumstances
deemed to constitute an emergency situation
OR UNDER CIRCUMSTANCES
THAT CAUSE OR THREATEN TO CAUSE A SIGNIFICANT ADVERSE IMPACT TO
PUBLIC HEALTH
, SAFETY, WELFARE, THE ENVIRONMENT , OR WILDLIFE
RESOURCES THAT REQUIRE IMMEDIATE ACTION
, the commission or the
director may issue a cease-and-desist order to the operator whose act or
omission allegedly resulted in such
THE violation. Such THE
cease-and-desist order shall MUST require such action by the operator as the
commission or director deems appropriate. The order shall be served
personally or by certified mail, return receipt requested, to the operator or
the operator's agent for service of process and shall
MUST state the provision
alleged to have been violated, the facts alleged to constitute the violation,
the time by which the acts or practices cited are required to cease, and any
corrective action the commission or the director elects to require of the
PAGE 15-SENATE BILL 24-229 operator.
(6) If the commission determines, after a hearing conducted in
accordance with section 34-60-108, that an operator has failed to perform
any corrective action imposed under subsection (4) of this section or failed
to comply with a cease-and-desist order issued under subsection (5) of this
section, with regard to a violation of a permit provision,
the commission
may issue an order suspending, modifying, or revoking such THE
OPERATOR
'S permit OR PERMITS OR SUSPENDING OR REVOKING THE
OPERATOR
'S LICENSE TO CONDUCT OIL AND GAS OPERATIONS or may take
other appropriate action. An operator subject to an order that suspends,
modifies, or revokes a permit
OR THAT SUSPENDS OR REVOKES THE
OPERATOR
'S LICENSE TO CONDUCT OIL AND GAS OPERATIONS shall continue
the affected operations only for the purpose of bringing them into
compliance with the permit or modified permit and shall do so under the
supervision of the commission. Once the affected operations are in
compliance to the satisfaction of the commission and any penalty not
subject to judicial review or appeal has been paid, the commission shall
MAY reinstate the permit OR THE LICENSE TO CONDUCT OIL AND GAS
OPERATIONS
.
(7) (a) The commission or the director shall issue an order to an
operator to appear for a hearing before the commission in accordance with
section 34-60-108 whenever the commission or the director has evidence
that an operator is responsible for:
(I) Gross negligence or knowing and willful misconduct that results
in an egregious violation; or
(II) A pattern of violation of this article ARTICLE 60, any rule or
order of the commission, or any permit;
(III) A
VIOLATION OF THIS ARTICLE 60, ANY RULE OR ORDER OF THE
COMMISSION
, OR ANY PERMIT, IF SUCH VIOLATION RESULTS IN A COMMISSION
ORDER IMPOSING A PENALTY OF ONE MILLION DOLLARS OR MORE
;
(IV) A
VIOLATION THAT CAUSED A MAJOR ADVERSE IMPACT , AS
DEFINED IN THE COMMISSION
'S RULES, TO PUBLIC HEALTH , SAFETY,
WELFARE, THE ENVIRONMENT, OR WILDLIFE RESOURCES AND THE VIOLATION
IS THE THIRD VIOLATION IN THE STATE IN ONE YEAR THAT CAUSED A MAJOR
PAGE 16-SENATE BILL 24-229 ADVERSE IMPACT, AS DEFINED IN THE COMMISSION 'S RULES, TO PUBLIC
HEALTH
, SAFETY, WELFARE, THE ENVIRONMENT, OR WILDLIFE RESOURCES;
OR
(V) A VIOLATION THAT CAUSED DEATH OR SERIOUS BODILY INJURY
TO AN INDIVIDUAL
.
(b) If the commission finds, after such
THE hearing CONDUCTED
PURSUANT TO SUBSECTION
(7)(a) OF THIS SECTION, that the operator is
responsible under the legal standards specified in paragraph (a) of thissubsection (7), it SUBSECTION (7)(a) OF THIS SECTION, THE COMMISSION may
issue an order that prohibits the issuance of any new permits to the operator,
suspends any or all of the operator's certificates of clearance,
SUSPENDS THE
OPERATOR
'S LICENSE TO CONDUCT OIL AND GAS OPERATIONS, or both. WhenANY COMBINATION OF THE THREE . IF the operator demonstrates to the
satisfaction of the commission that it THE OPERATOR has brought each of the
violations into compliance and that any penalty not subject to judicial
review or appeal has been paid, the commission may vacate the order.
(c) I
N A HEARING CONDUCTED PURSUANT TO THIS SUBSECTION (7),
THE COMMISSION MAY CONSIDER AS EVIDENCE VIOLATIONS FOR WHICH
ENFORCEMENT WAS COMMENCED PRIOR TO THE EFFECTIVE DATE OF THIS
SUBSECTION
(7), AS AMENDED, IN DETERMINING WHETHER TO PROHIBIT THE
ISSUANCE OF ANY NEW PERMITS TO THE OPERATOR
, SUSPEND ANY OR ALL OF
THE OPERATOR
'S CERTIFICATES OF CLEARANCE, SUSPEND THE OPERATOR'S
LICENSE TO CONDUCT OIL AND GAS OPERATIONS
, OR ANY COMBINATION OF
THE THREE
.
SECTION 13. In Colorado Revised Statutes, 34-60-124, amend
(4)(e)(II) and (4)(f); and add (4)(h) as follows:
34-60-124. Energy and carbon management cash fund -
definitions - repeal. (4) The fund may be expended:
(e) (II) This subsection (4)(e) is repealed, effective July 1, 2025. and
(f) To create and maintain the website described in section
34-60-106 (22);
AND
(h) BY THE COMMISSION TO FUND THE COMMUNITY LIAISON
PAGE 17-SENATE BILL 24-229 POSITIONS APPOINTED PURSUANT TO SECTION 34-60-104.5 (2)(d)(III).
SECTION 14. In Colorado Revised Statutes, 34-60-133, amend
(1)(a)(II) and (1)(a)(III); and add (1.5), (2)(e.5), (6)(d)(I.5), and (8)(d.5) as
follows:
34-60-133. Orphaned wells mitigation enterprise - creation -
powers and duties - enterprise board created - mitigation fees - cash
fund created - rules - definitions - legislative declaration. (1) Enterprise
created. (a) The orphaned wells mitigation enterprise is created in the
department for the purpose of:
(II) Funding the plugging, reclaiming, and remediating of orphaned
wells
AND MARGINAL WELLS in the state;
(III) Ensuring that the costs associated with plugging, reclaiming,
and remediating orphaned wells
AND MARGINAL WELLS are borne by
operators in the form of mitigation fees; and
(1.5) Legislative declaration. T
HE GENERAL ASSEMBLY FINDS AND
DECLARES THAT
:
(a) O
RPHANED WELLS AND MARGINAL WELLS PRESENT RISKS TO
PUBLIC HEALTH
, SAFETY, AND WELFARE, INCLUDING RISKS TO THE
ENVIRONMENT AND WILDLIFE RESOURCES
;
(b) E
NVIRONMENTAL JUSTICE IS A PRIORITY FOR THE STATE, AND THE
ENTERPRISE BOARD SHOULD ADMINISTER THIS SECTION IN A MANNER THAT
REDUCES BURDENS ON OVERBURDENED COMMUNITIES
;
(c) T
HE ENTERPRISE HELPS MITIGATE RISKS BY PLUGGING ,
RECLAIMING, AND REMEDIATING ORPHANED WELLS AND THOSE MARGINAL
WELLS THAT ARE AT THE HIGHEST RISK OF BECOMING ORPHANED
;
(d) A
LL OIL AND GAS WELLS WILL REQUIRE PL UGGING AND
RECLAIMING AT THE END OF THEIR USEFUL LIFE
;
(e) M
ANY OIL AND GAS WELLS WILL REQUIRE REMEDIATION AT THE
END OF THEIR USEFUL LIFE
;
PAGE 18-SENATE BILL 24-229 (f) PURSUANT TO SECTION 34-60-106, ALL OPERATORS ARE
REQUIRED TO PROVIDE FINANCIAL ASSURANCE DEMONSTRATING THAT THE
OPERATORS ARE FINANCIALLY CAPABLE OF FULFILLING EVERY OBLIGATION
IMPOSED ON THE OPERATOR PURSUANT TO THIS ARTICLE
60, INCLUDING AN
OPERATOR
'S PLUGGING, RECLAMATION, AND REMEDIATION OBLIGATIONS ;
AND
(g) THE SERVICES THAT THE ENTERPRISE PROVIDES BENEFIT ALL
OPERATORS IN THE STATE BY
:
(I) M
ITIGATING THE RISKS OF AN OPERATOR 'S OIL AND GAS WELL
BECOMING AN ORPHANED WELL
; AND
(II) PLUGGING, RECLAIMING, AND REMEDIATING QUALIFYING
MARGINAL WELLS AND ELIMINATING THE RISK OF SUCH QUALIFYING
MARGINAL WELLS BECOMING ORPHANED WELLS
.
(2) Powers and duties. In addition to any other powers and duties
specified in this section, the enterprise board has the following general
powers and duties on behalf of the enterprise:
(e.5) T
O ISSUE GUIDANCE ESTABLISHING STANDARDS FOR MARGINAL
WELLS TO QUALIFY FOR FUNDING PURSUANT TO SUBSECTION
(1)(a)(II) OF
THIS SECTION
. IN ESTABLISHING THESE STANDARDS, THE ENTERPRISE BOARD
SHALL CONSIDER
:
(I) A
N OIL AND GAS WELL 'S LOCATION IN OR NEAR A
DISPROPORTIONATELY IMPACTED COMMUNITY OR A HIGHLY POPULATED
AREA
; AND
(II) AN OIL AND GAS WELL'S RISK OF ADVERSE IMPACTS ON PUBLIC
HEALTH
, SAFETY, WELFARE, THE ENVIRONMENT, AND WILDLIFE RESOURCES;
AND
(6) Cash fund. (d) Money credited to the fund is continuously
appropriated to the fund for use by the enterprise and shall be expended to:
(I.5) P
LUG, RECLAIM, AND REMEDIATE QUALIFYING MARGINAL
WELLS
, AS DETERMINED BASED ON FACTORS THAT INCLUDE :
PAGE 19-SENATE BILL 24-229 (A) THE OIL AND GAS WELL 'S LOCATION IN OR NEAR A
DISPROPORTIONATELY IMPACTED COMMUNITY OR A HIGHLY POPULATED
AREA
; AND
(B) THE OIL AND GAS WELL'S RISK OF ADVERSE IMPACTS ON PUBLIC
HEALTH
, SAFETY, WELFARE, THE ENVIRONMENT, AND WILDLIFE RESOURCES;
(8) Definitions. As used in this section, unless the context otherwise
requires:
(d.5) "M
ARGINAL WELL" MEANS AN OIL AND GAS WELL THAT
PRESENTS A HIGH RISK OF BECOMING ORPHANED
.
SECTION 15. Appropriation. (1) For the 2024-25 state fiscal
year, $753,157 is appropriated to the department of public health and
environment. This appropriation is from the general fund. To implement
this act, the department may use this appropriation as follows:
(a) $312,865 for use by the air pollution control division for
personal services related to stationary sources, which amount is based on an
assumption that the division will require an additional 3.3 FTE;
(b) $325,074 for use by the air pollution control division for
operating expenses related to stationary sources; and
(c) $115,218 for the purchase of legal services.
(2) For the 2024-25 state fiscal year, $115,218 is appropriated to the
department of law. This appropriation is from reappropriated funds received
from the department of public health and environment under subsection
(1)(c) of this section and is based on an assumption that the department of
law will require an additional 0.5 FTE. To implement this act, the
department of law may use this appropriation to provide legal services for
the department of public health and environment.
(3) For the 2024-25 state fiscal year, $179,127 is appropriated to the
department of natural resources for use by the energy and carbon
management commission. This appropriation is from the energy and carbon
management cash fund created in section 34-60-122 (5)(a), C.R.S., and is
based on an assumption that the commission will require an additional 2.0
PAGE 20-SENATE BILL 24-229 FTE. To implement this act, the commission may use this appropriation for
program costs.
SECTION 16. Effective date - applicability. (1) (a) Except as
otherwise provided in this subsection (1), this act takes effect upon passage.
(b) Section 6 of this act takes effect only if House Bill 24-1338
becomes law, in which case section 6 of this act takes effect upon passage.
(c) Section 5 of this act takes effect only if House Bill 24-1338 does
not become law, in which case section 5 of this act takes effect upon
passage.
(2) This act applies to enforcement actions commenced by the
division of administration in the department of public health and
environment and the energy and carbon management commission on or
after the effective date of this act.
SECTION 17. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
PAGE 21-SENATE BILL 24-229 preservation of the public peace, health, or safety or for appropriations for
the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
Steve Fenberg Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 22-SENATE BILL 24-229