Colorado 2025 Regular Session

Colorado House Bill HB1165 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		First Regular Session
2	2		Seventy-fifth General Assembly
3	3		STATE OF COLORADO
4		-	~~REREVISED~~
5		-	This Version Includes All Amendments
6		-	~~Adopted~~ in the Second House
	4	+	REVISED
	5	+	This Version Includes All Amendments Adopted
	6	+	on Second Reading in the Second House
7	7		LLS NO. 25-0701.01 Richard Sweetman x4333
8	8		HOUSE BILL 25-1165
9	9		House Committees Senate Committees
10	10		Energy & Environment Transportation & Energy
11	11		A BILL FOR AN ACT
12	12		C
13	13		ONCERNING THE MANAGEMENT OF UNDERGROUND ENERGY101
14	14		RESOURCES.102
15	15		Bill Summary
16	16		(Note: This summary applies to this bill as introduced and does
17	17		not reflect any amendments that may be subsequently adopted. If this bill
18	18		passes third reading in the house of introduction, a bill summary that
19	19		applies to the reengrossed version of this bill will be available at
20	20		http://leg.colorado.gov
21	21		.)
22	22		The bill creates the geologic storage stewardship enterprise
23	23		(enterprise) in the department of natural resources (department) for the
24	24		purpose of:
25	25		! Imposing and determining the amount of annual
26	26		stewardship fees;
27	27		! Funding the long-term stewardship of geologic storage
28	28		SENATE
29		-	3rd Reading Unamended
30		-	April 4, 2025
31		-	SENATE
32	29		Amended 2nd Reading
33	30		April 3, 2025
34	31		HOUSE
35	32		3rd Reading Unamended
36	33		March 14, 2025
37	34		HOUSE
38	35		Amended 2nd Reading
39	36		March 13, 2025
40	37		HOUSE SPONSORSHIP
41	38		Paschal and Soper, Bird, Duran, Lindsay, McCormick, Titone
42	39		SENATE SPONSORSHIP
43		-	Simpson and Kipp, ~~Cutter, Exum, Mullica, Snyder, Wallace, Winter F.~~
	40	+	Simpson and Kipp,
44	41		Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
45	42		Capital letters or bold & italic numbers indicate new material to be added to existing law.
46	43		Dashes through the words or numbers indicate deletions from existing law. facilities in the state;
47	44		! Funding the plugging, abandoning, reclaiming, and
48	45		remediating of orphaned geologic storage facilities in the
49	46		state; and
50	47		! Ensuring that costs associated with long-term stewardship
51	48		of geologic storage facilities are borne by geologic storage
52	49		operators in the form of stewardship fees.
53	50		The bill creates the geologic storage stewardship enterprise board
54	51		(enterprise board) to administer the enterprise.
55	52		The bill requires each geologic storage operator to pay an annual
56	53		stewardship fee for each ton of injection carbon dioxide that the geologic
57	54		storage operator injects in the state. The energy and carbon management
58	55		commission (commission) collects the stewardship fee on the enterprise's
59	56		behalf. All money collected as stewardship fees is credited to the geologic
60	57		storage stewardship enterprise cash fund, which is created in the bill.
61	58		Money in the geologic storage stewardship enterprise cash fund is
62	59		continuously appropriated to the enterprise.
63	60		The enterprise and the commission may each adopt rules to
64	61		implement the bill.
65	62		Upon the commission's approval of a site closure:
66	63		! Ownership of the injection carbon dioxide, and ownership
67	64		of any remaining facilities used to inject or store injection
68	65		carbon dioxide, transfer to the state without payment of
69	66		additional compensation;
70	67		! Except in specified circumstances, the geologic storage
71	68		operator is released from all regulatory liability associated
72	69		with the continued storage of the injection carbon dioxide
73	70		and the long-term stewardship of the associated geologic
74	71		storage facility; and
75	72		! The enterprise undertakes long-term stewardship of the
76	73		injection carbon dioxide and any associated geologic
77	74		storage facility.
78	75		The bill makes several updates to laws concerning the
79	76		administration of underground geothermal resources, including:
80	77		! Clarifying that "nontributary groundwater" does not include
81	78		"designated groundwater", as these terms are defined in
82	79		current law;
83	80		! Exempting certain geothermal operations from needing a
84	81		well permit from the state engineer;
85	82		! Requiring the state engineer to notify the operator of a prior
86	83		geothermal operation of an application for a proposed well,
87	84		and allowing the operator the opportunity to request a
88	85		hearing if the application causes concern for material injury
89	86		to the prior geothermal operation;
90	87		! Establishing that the authority to regulate shallow
91	88		1165
92	89		-2- geothermal operations is shared by the state engineer and
93	90		the state board of examiners;
94	91		! Renaming the state board of examiners of water well
95	92		construction and pump installation contractors as the "state
96	93		board of examiners of water well and ground heat
97	94		exchanger contractors" (state board of examiners); and
98	95		! Regulating ground heat exchanger contractors in the same
99	96		manner that currently exists for water well construction
100	97		contractors and pump installation contractors.
101	98		Be it enacted by the General Assembly of the State of Colorado:1
102	99		SECTION 1. Legislative declaration. (1) The general assembly2
103	100		finds that:3
104	101		(a) Colorado has established statewide emission targets to reduce4
105	102		greenhouse gas emissions based on the levels that existed in 2005,5
106	103		including a 26% reduction by 2025, a 50% reduction by 2030,
107	104		a 65%6
108	105		reduction by 2035, a 75% reduction by 2040, a 90% reduction by 2045,7
109	106		and net-zero emissions by 2050;8
110	107		(b) Meeting these goals will involve multiple, simultaneously9
111	108		pursued strategies, as well as a streamlined administrative structure; 10
112	109		(c) Carbon capture and storage, or "CCS", has been identified as11
113	110		an essential tool for hard-to-decarbonize sectors;12
114	111		(d) The geologic sequestration of carbon dioxide, or "CO2", in the13
115	112		subsurface is necessary to reach net-zero emission targets globally and14
116	113		may be equally critical to Colorado's own climate targets;15
117	114		(e) Through CCS, stored CO2 remains in the subsurface16
118	115		permanently. These CO2 storage projects require an extended17
119	116		post-injection site care phase, typically lasting for decades after injection18
120	117		has ceased, in which the injected CO2 is monitored to thoroughly19
121	118		demonstrate that the injected CO2 is stable and will not pose a risk to20
122	119		1165-3- underground sources of drinking water.1
123	120		(f) When a storage operator ceases to exist, for example, through2
124	121		bankruptcy, current law does not provide for monitoring and stewardship3
125	122		of the the storage facility;4
126	123		(g) These are some of the reasons why the Colorado carbon5
127	124		management roadmap, the energy and carbon management commission's6
128	125		CCS study, and Colorado's carbon capture sequestration and utilization7
129	126		task force all called for the state to create a process for long-term8
130	127		stewardship of CO2 storage sites whereby CCS storage sites can be9
131	128		monitored and maintained for decades after site closure;10
132	129		(h) Establishing an enterprise funded by a fee imposed on11
133	130		geologic storage operators to provide the necessary resources for the state12
134	131		to conduct long-term monitoring and stewardship activities protects13
135	132		Colorado communities from future impacts from storage facilities,14
136	133		supports our state's climate goals, relieves state taxpayers of a potential15
137	134		burden to manage these sites, and provides certainty to operators;16
138	135		(i) Geothermal energy also provides many opportunities to support17
139	136		the state's transition to a low-carbon economy by offering more reliable18
140	137		energy service and predictable, affordable costs while improving local air19
141	138		quality and offering new economic growth opportunities;20
142	139		(j) The energy and carbon management commission and the21
143	140		division of water resources are responsible for regulating geothermal22
144	141		development in Colorado;23
145	142		(k) In 2023, in Senate Bill 23-285, the general assembly directed24
146	143		the energy and carbon management commission and the division of water25
147	144		resources to study the state regulatory structure for geothermal resources26
148	145		and determine if additional changes are necessary;27
149	146		1165
150	147		-4- (l) In support of the state's climate and energy goals, the1
151	148		department of natural resources has identified statutory changes that will2
152	149		clarify and streamline Colorado's regulatory framework while facilitating3
153	150		responsible development of geothermal resources in Colorado; and4
154	151		(m) These recommendations will minimize costs, expedite5
155	152		permitting, reduce risks to industry and the public, and clarify regulatory6
156	153		authority across state agencies.7
157	154		(2) The general assembly therefore declares that it is important8
158	155		that Colorado drive and oversee the deployment of CCS and geothermal9
159	156		technologies in a manner that encourages protective growth and10
160	157		adaptation of infrastructure and improved coordination for permitting11
161	158		authorities.12
162	159		SECTION 2. In Colorado Revised Statutes, amend 34-60-101 as13
163	160		follows:14
164	161		34-60-101. Short title. THE SHORT TITLE OF this article shall be15
165	162		known and may be cited as ARTICLE 60 IS the "Oil and Gas Conservation16
166	163		"ENERGY AND CARBON MANAGEMENT Act".17
167	164		SECTION 3. In Colorado Revised Statutes, 34-60-103, add18
168	165		(40.5) as follows:19
169	166		34-60-103. Definitions - rules. As used in this article 60, unless20
170	167		the context otherwise requires:21
171	168		(40.5) (a) "S
172	169		ITE CLOSURE" MEANS THAT AN OPERATOR OF A
173	170		22
174	171		GEOLOGIC STORAGE FACILITY HAS DEMONSTRATED , IN ACCORDANCE WITH23
175	172		ALL RULES OF THE COMMISSION, THAT:24
176	173		(I) G
177	174		EOLOGIC STORAGE OPERATIONS AT THE FACILITY NO LONGER
178	175		25
179	176		POSE A DANGER TO PUBLIC HEALTH , SAFETY, OR WELFARE OR TO THE26
180	177		ENVIRONMENT, INCLUDING UNDERGROUND SOURCES OF DRINKING WATER27
181	178		1165
182	179		-5- AND WILDLIFE RESOURCES; AND1
183	180		(II) T
184	181		HE OPERATOR HAS RECEIVED APPROVAL FROM THE
185	182		2
186	183		COMMISSION FOR THE FACILITY TO BE CLOSED .3
187	184		(b) "S
188	185		ITE CLOSURE" REQUIRES THAT:
189	186		4
190	187		(I) A
191	188		LL WELLS ARE PLUGGED, EQUIPMENT IS REMOVED, AND LAND
192	189		5
193	190		IS RECLAIMED, UNLESS OTHERWISE REQUIRED FOR LONG -TERM6
194	191		STEWARDSHIP AND MONITORING OR AS DETERMINED BY THE DIRECTOR OF7
195	192		THE COMMISSION; AND8
196	193		(II) M
197	194		ONITORING EQUIPMENT IS INSTALLED IF REQUIRED BY THE
198	195		9
199	196		POST-INJECTION SITE CARE AND SITE CLOSURE PLAN OR BY RULES OF THE10
200	197		COMMISSION.11
201	198		SECTION 4. In Colorado Revised Statutes, add 34-60-144 as12
202	199		follows:13
203	200		34-60-144. Geologic storage stewardship enterprise - created14
204	201		- legislative declaration - powers and duties of enterprise - geologic15
205	202		storage stewardship enterprise board - membership and duties of16
206	203		enterprise board - stewardship fees - geologic storage stewardship17
207	204		enterprise cash fund - definitions - rules - repeal. (1) Legislative18
208	205		declaration. (a) T
209	206		HE GENERAL ASSEMBLY FINDS THAT :19
210	207		(I) G
211	208		EOLOGIC STORAGE OPERATIONS ARE AN IMPORTANT TOOL TO20
212	209		HELP THE STATE MEET ITS GREENHOUSE GAS EMISSION REDUCTION GOALS ;21
213	210		(II) G
214	211		EOLOGIC STORAGE OPERATIONS INVOLVE PERMANENTLY22
215	212		STORING INJECTION CARBON DIOXIDE UNDERGROUND ;23
216	213		(III) I
217	214		T IS PRUDENT TO MONITOR AND OTHERWISE CONDUCT24
218	215		LONG-TERM STEWARDSHIP OF INJECTION CARBON DIOXIDE TO25
219	216		DEMONSTRATE THAT THE INJECTION CARBON DIOXIDE IS STABLE AND WILL26
220	217		NOT POSE A RISK TO UNDERGROUND SOURCES OF DRINKING WATER ;27
221	218		1165
222	219		-6- (IV) GEOLOGIC STORAGE OPERATIONS PRESENT THE STATE WITH1
223	220		RISKS OF ORPHANED GEOLOGIC STORAGE FACILITIES ;2
224	221		(V) I
225	222		T IS NECESSARY, APPROPRIATE, AND IN THE BEST INTEREST OF3
226	223		GEOLOGIC STORAGE OPERATORS FOR THE STATE TO CONDUCT LONG -TERM4
227	224		STEWARDSHIP; AND5
228	225		(VI) I
229	226		T IS NECESSARY, APPROPRIATE, AND IN THE BEST INTEREST6
230	227		OF GEOLOGIC STORAGE OPERATORS FOR THE STATE TO ENSURE THAT7
231	228		ORPHANED GEOLOGIC STORAGE FACILITIES ARE PLUGGED , ABANDONED,8
232	229		RECLAIMED, AND REMEDIATED, IF NECESSARY, IN A TIMELY MANNER IF9
233	230		AVAILABLE FINANCIAL ASSURANCE IS INSUFFICIENT .10
234	231		(b) T
235	232		HE GENERAL ASSEMBLY ALSO FINDS THAT :11
236	233		(I) C
237	234		URRENT LAW IN JANUARY 2025 PROVIDES NO MECHANISM TO12
238	235		PAY FOR THE STATE'S LONG-TERM STEWARDSHIP OF GEOLOGIC STORAGE13
239	236		FACILITIES; AND14
240	237		(II) C
241	238		URRENT LAW IN JANUARY 2025 AUTHORIZES THE15
242	239		COMMISSION TO REQUIRE GEOLOGIC STORAGE OPERATORS TO MAINTAIN16
243	240		AND DEMONSTRATE CERTAIN FINANCIAL ASSURANCES TO PLUG , ABANDON,17
244	241		RECLAIM, AND REMEDIATE GEOLOGIC STORAGE FACILITIES .18
245	242		(c) N
246	243		OW, THEREFORE, THE GENERAL ASSEMBLY DECLARES THAT :19
247	244		(I) I
248	245		T IS IN THE PUBLIC INTEREST TO CREATE AN ENTERPRISE20
249	246		WITHIN THE DEPARTMENT THAT IS COMMITTED TO FUNDING LONG -TERM21
250	247		STEWARDSHIP OF INJECTION CARBON DIOXIDE AND , IF NECESSARY, THE22
251	248		PLUGGING, ABANDONMENT , RECLAIMING, AND REMEDIATING OF23
252	249		ORPHANED GEOLOGIC STORAGE FACILITIES ;24
253	250		(II) T
254	251		HE ACTIVITIES OF THE ENTERPRISE SHALL BE FUNDED BY25
255	252		REVENUE GENERATED FROM STEWARDSHIP FEES PAID BY OPERATORS OF26
256	253		CLASS VI INJECTION WELLS IN COLORADO;27
257	254		1165
258	255		-7- (III) IT IS APPROPRIATE THAT GEOLOGIC STORAGE OPERATORS1
259	256		SHOULD PAY SUCH STEWARDSHIP FEES, AS GEOLOGIC STORAGE OPERATORS2
260	257		ARE THE DIRECT BENEFICIARIES OF THE SERVICES PROVIDED BY THE3
261	258		ENTERPRISE, WHICH ARE LONG -TERM STEWARDSHIP AND , WHERE4
262	259		NECESSARY, THE PLUGGING , ABANDONMENT , RECLAIMING, AND5
263	260		REMEDIATING OF ORPHANED GEOLOGIC STORAGE FACILITIES ;6
264	261		(IV) G
265	262		EOLOGIC STORAGE OPERATORS BENEFIT FROM LONG -TERM7
266	263		STEWARDSHIP BECAUSE SERVICES , SUCH AS LONG-TERM MONITORING AND8
267	264		SITE MANAGEMENT, ALLOW GEOLOGIC STORAGE OPERATORS TO OPERATE9
268	265		CLASS VI INJECTION WELLS IN COLORADO BY ADDRESSING THE RISKS10
269	266		PRESENTED BY THE PERMANENT STORAGE OF INJECTION CARBON DIOXIDE11
270	267		WITHOUT REQUIRING GEOLOGIC STORAGE OPERATORS TO CONDUCT12
271	268		LONG-TERM STEWARDSHIP;13
272	269		(V) C
273	270		ONSISTENT WITH THE DETERMINATION OF THE COLORADO14
274	271		SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 89615
275	272		P.2d 859
276	273		(COLO. 1995), THAT THE POWER TO IMPOSE TAXES IS16
277	274		INCONSISTENT WITH ENTERPRISE STATUS UNDER SECTION 20 OF ARTICLE17
278	275		X
279	276		OF THE STATE CONSTITUTION, THE GENERAL ASSEMBLY CONCLUDES18
280	277		THAT THE STEWARDSHIP FEE IS A FEE, NOT A TAX, AND THE ENTERPRISE19
281	278		OPERATES AS A BUSINESS BECAUSE THE STEWARDSHIP FEE IS IMPOSED FOR20
282	279		THE FOLLOWING SPECIFIC BUSINESS PURPOSES :21
283	280		(A) T
284	281		HE LONG-TERM STEWARDSHIP SERVICES AUTHORIZED BY THIS22
285	282		SECTION PROVIDE A BENEFIT TO GEOLOGIC STORAGE OPERATORS BY23
286	283		ALLOWING A GEOLOGIC STORAGE OPERATOR TO BE RELEASED OF24
287	284		REGULATORY AND LONG -TERM STEWARDSHIP RESPONSIBILITIES25
288	285		ASSOCIATED WITH INJECTION CARBON DIOXIDE AFTER THE COMMISSION26
289	286		APPROVES SITE CLOSURE OF A GEOLOGIC STORAGE FACILITY ; AND27
290	287		1165
291	288		-8- (B) THE PLUGGING, ABANDONMENT , RECLAIMING, AND1
292	289		REMEDIATING SERVICES AUTHORIZED BY THIS SECTION PROVIDE A BENEFIT2
293	290		TO GEOLOGIC STORAGE OPERATORS BY ALLOWING THEM TO OPERATE3
294	291		CLASS VI INJECTION WELLS IN COLORADO DESPITE THE RISK THAT4
295	292		AVAILABLE FINANCIAL ASSURANCE MAY BE INSUFFICIENT TO PROTECT THE5
296	293		PUBLIC FROM THE COSTS OF GEOLOGIC STORAGE FACILITIES BEING6
297	294		ORPHANED; AND7
298	295		(VI) S
299	296		O LONG AS THE ENTERPRISE QUALIFIES AS AN ENTERPRISE8
300	297		FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION,9
301	298		THE REVENUE FROM THE STEWARDSHIP FEE ADMINISTERED BY THE10
302	299		ENTERPRISE AND COLLECTED BY THE COMMISSION IS NOT STATE FISCAL11
303	300		YEAR SPENDING, AS DEFINED IN SECTION 24-77-102 (17), OR STATE12
304	301		REVENUES, AS DEFINED IN SECTION 24-77-103.6 (6)(c), AND DOES NOT13
305	302		COUNT AGAINST EITHER THE STATE FISCAL YEAR SPENDING LIMIT IMPOSED14
306	303		BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION OR THE EXCESS15
307	304		STATE REVENUES CAP, AS DEFINED IN SECTION 24-77-103.6 (6)(b)(I)(G).16
308	305		(2) Definitions. A
309	306		S USED IN THIS SECTION, UNLESS THE CONTEXT17
310	307		OTHERWISE REQUIRES:18
311	308		(a) "D
312	309		EPARTMENT" MEANS THE DEPARTMENT OF NATURAL19
313	310		RESOURCES.20
314	311		(b) "E
315	312		NTERPRISE" MEANS THE GEOLOGIC STORAGE STEWARDSHIP21
316	313		ENTERPRISE CREATED IN SUBSECTION (3) OF THIS SECTION.22
317	314		(c) "E
318	315		NTERPRISE BOARD" MEANS THE GEOLOGIC STORAGE23
319	316		STEWARDSHIP ENTERPRISE BOARD CREATED IN SUBSECTION
320	317		(4) OF THIS24
321	318		SECTION.25
322	319		(d) "G
323	320		EOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND "26
324	321		MEANS THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND27
325	322		1165
326	323		-9- CREATED IN SUBSECTION (7) OF THIS SECTION.1
327	324		(e) "L
328	325		ONG-TERM STEWARDSHIP " MEANS MONITORING AND2
329	326		INTEGRITY MAINTENANCE OF GEOLOGIC STORAGE FACILITIES AFTER THE3
330	327		COMMISSION APPROVES A SITE CLOSURE , AS WELL AS ANY ASSOCIATED4
331	328		ACTION NECESSARY TO PROTECT PUBLIC HEALTH , SAFETY, WELFARE, THE5
332	329		ENVIRONMENT, OR WILDLIFE RESOURCES.6
333	330		(f) "O
334	331		RPHANED GEOLOGIC STORAGE FACILITY " MEANS A GEOLOGIC7
335	332		STORAGE FACILITY IN THE STATE FOR WHICH NO OWNER OR OPERATOR CAN8
336	333		BE FOUND OR FOR WHICH THE OWNER OR OPERATOR IS UNWILLING OR9
337	334		UNABLE TO PAY THE COSTS OF PLUGGING , ABANDONING, REMEDIATING,10
338	335		RECLAIMING, OR OTHER ACTION NECESSARY TO OBTAIN SITE CLOSURE11
339	336		PURSUANT TO COMMISSION RULES .12
340	337		(g) "S
341	338		TEWARDSHIP FEE" MEANS THE STEWARDSHIP FEE13
342	339		AUTHORIZED AND IMPOSED PURSUANT TO SUBSECTION (6) OF THIS14
343	340		SECTION.15
344	341		(3) Enterprise created. (a) T
345	342		HE GEOLOGIC STORAGE16
346	343		STEWARDSHIP ENTERPRISE IS CREATED IN THE DEPARTMENT , IS A TYPE 117
347	344		ENTITY, AS DEFINED IN SECTION 24-1-105, AND EXERCISES ITS POWERS18
348	345		AND PERFORMS ITS DUTIES AND FUNCTIONS UNDER THE DEPARTMENT . THE19
349	346		ENTERPRISE IS CREATED FOR THE PURPOSE OF :20
350	347		(I)
351	348		DETERMINING THE AMOUNT OF STEWARDSHIP FEES ;21
352	349		(II) F
353	350		UNDING THE LONG -TERM STEWARDSHIP OF GEOLOGIC22
354	351		STORAGE FACILITIES IN THE STATE;23
355	352		(III) F
356	353		UNDING THE PLUGGING, ABANDONMENT, RECLAIMING,
357	354		AND,24
358	355		AS NECESSARY, REMEDIATING OF ORPHANED GEOLOGIC STORAGE25
359	356		FACILITIES IN THE STATE IF THE COMMISSION, AFTER NOTICE AND A26
360	357		HEARING, DETERMINES THAT AVAILABLE FINANCIAL ASSURANCE IS27
361	358		1165
362	359		-10- INSUFFICIENT; AND1
363	360		(IV) E
364	361		NSURING THAT COSTS ASSOCIATED WITH LONG -TERM2
365	362		STEWARDSHIP OF GEOLOGIC STORAGE FACILITIES ARE BORNE BY GEOLOGIC3
366	363		STORAGE OPERATORS IN THE FORM OF STEWARDSHIP FEES .4
367	364		(b) T
368	365		HE ENTERPRISE BOARD , IN CONSULTATION WITH THE5
369	366		COMMISSION, SHALL ADMINISTER THE ENTERPRISE IN ACCORDANCE WITH6
370	367		THIS SECTION.7
371	368		(c) (I) T
372	369		HE ENTERPRISE CONSTITUTES AN ENTERPRISE FOR8
373	370		PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION SO9
374	371		LONG AS IT RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND10
375	372		RECEIVES LESS THAN TEN PERCENT OF ITS TOTAL REVENUES IN GRANTS , AS11
376	373		DEFINED IN SECTION 24-77-102 (7), FROM ALL COLORADO STATE AND12
377	374		LOCAL GOVERNMENTS COMBINED . SO LONG AS IT CONSTITUTES AN13
378	375		ENTERPRISE, THE ENTERPRISE IS NOT SUBJECT TO SECTION 20 OF ARTICLE14
379	376		X
380	377		OF THE STATE CONSTITUTION.15
381	378		(II) T
382	379		HE ENTERPRISE IS AUTHORIZED TO ISSUE REVENUE BONDS FOR16
383	380		THE EXPENSES OF THE ENTERPRISE , SECURED BY REVENUE OF THE17
384	381		ENTERPRISE.18
385	382		(4) Enterprise board created - membership - duties - repeal.19
386	383		(a) (I) T
387	384		HE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE BOARD IS20
388	385		CREATED TO ADMINISTER THE ENTERPRISE . THE ENTERPRISE BOARD21
389	386		INCLUDES THE FOLLOWING FIVE MEMBERS :22
390	387		(A) T
391	388		HE CHAIR OF THE COMMISSION;23
392	389		(B) T
393	390		HE DIRECTOR OF THE COMMISSION OR THE DIRECTOR 'S24
394	391		DESIGNEE;25
395	392		(C) A
396	393		N INDIVIDUAL WITH SUBSTANTIAL EXPERIENCE IN GEOLOGIC26
397	394		STORAGE, PREFERABLY WITH AN ACTUARIAL SCIENCE BACKGROUND AS
398	395		27
399	396		1165
400	397		-11- RELATED TO EVALUATING THE LONG -TERM RISK OF GEOLOGIC STORAGE1
401	398		FACILITIES, TO BE APPOINTED BY THE GOVERNOR AND CONFIRMED BY THE2
402	399		SENATE;3
403	400		(D) A
404	401		N INDIVIDUAL WITH FORMAL TRAINING OR SUBSTANTIAL4
405	402		EXPERIENCE IN ENVIRONMENTAL PROTECTION , PUBLIC HEALTH, OR OTHER5
406	403		RELEVANT FIELDS, TO BE APPOINTED BY THE GOVERNOR AND CONFIRMED6
407	404		BY THE SENATE; AND7
408	405		(E) A
409	406		N INDIVIDUAL WITH FORMAL TRAINING OR SUBSTANTIAL8
410	407		EXPERIENCE IN WELLBORE MONITORING , LONG-TERM STEWARDSHIP, OR9
411	408		OTHER RELEVANT TECHNICAL FIELDS, TO BE APPOINTED BY THE GOVERNOR10
412	409		AND CONFIRMED BY THE SENATE .11
413	410		(II) (A) T
414	411		HE GOVERNOR SHALL APPOINT THE INITIAL MEMBERS OF12
415	412		THE ENTERPRISE BOARD PURSUANT TO SUBSECTIONS (4)(a)(I)(C),13
416	413		(4)(a)(I)(D),
417	414		AND (4)(a)(I)(E) OF THIS SECTION ON OR BEFORE SEPTEMBER14
418	415		1,
419	416		2025.15
420	417		(B) T
421	418		HIS SUBSECTION (4)(a)(II) IS REPEALED, EFFECTIVE JULY 1,16
422	419		2026.17
423	420		(III) T
424	421		HE MEMBERS OF THE ENTERPRISE BOARD DESCRIBED IN18
425	422		SUBSECTIONS (4)(a)(I)(C), (4)(a)(I)(D), AND (4)(a)(I)(E) OF THIS SECTION19
426	423		SHALL EACH SERVE TERMS OF THREE YEARS ; EXCEPT THAT THE INITIAL20
427	424		TERM OF THE MEMBER APPOINTED PURSUANT TO SUBSECTION (4)(a)(I)(C)21
428	425		OF THIS SECTION IS ONE YEAR, AND THE INITIAL TERM OF THE MEMBER22
429	426		APPOINTED PURSUANT TO SUBSECTION (4)(a)(I)(D) OF THIS SECTION IS23
430	427		TWO YEARS. IN THE EVENT OF A VACANCY, THE GOVERNOR MAY APPOINT24
431	428		AN INDIVIDUAL TO COMPLETE THE TERM OF THE MEMBER WHOSE SEAT HAS25
432	429		BECOME VACANT.26
433	430		(IV) A
434	431		N INDIVIDUAL MAY BE APPOINTED TO SERVE AS A MEMBER27
435	432		1165
436	433		-12- OF THE ENTERPRISE BOARD PURSUANT TO SUBSECTION (4)(a)(I)(C),1
437	434		(4)(a)(I)(D),
438	435		OR (4)(a)(I)(E) OF THIS SECTION FOR AN UNLIMITED NUMBER2
439	436		OF TERMS.3
440	437		(V) E
441	438		NTERPRISE BOARD MEMBERS SERVING PURSUANT TO4
442	439		SUBSECTIONS (4)(a)(I)(C), (4)(a)(I)(D), AND (4)(a)(I)(E) OF THIS SECTION5
443	440		MAY RECEIVE COMPENSATION FROM THE ENTERPRISE ON A PER DIEM BASIS6
444	441		FOR REASONABLE EXPENSES ACTUALLY INCURRED IN THE PERFORMANCE7
445	442		OF DUTIES REQUIRED OF ENTERPRISE BOARD MEMBERS UNDER THIS8
446	443		SECTION.9
447	444		(VI) T
448	445		HE GOVERNOR SHALL SELECT A MEMBER OF THE ENTERPRISE10
449	446		BOARD TO SERVE AS CHAIR OF THE ENTERPRISE BOARD .11
450	447		(b) I
451	448		N ADDITION TO ADMINISTERING THE ENTERPRISE , THE12
452	449		ENTERPRISE BOARD SHALL:13
453	450		(I) S
454	451		ET THE AMOUNT OF THE STEWARDSHIP FEE AT AN AMOUNT14
455	452		THAT IS REASONABLY RELATED TO THE OVERALL COST OF THE LONG -TERM15
456	453		STEWARDSHIP SERVICES PROVIDED BY THE ENTERPRISE . THE ENTERPRISE16
457	454		BOARD SHALL SET THE INITIAL AMOUNT WITHIN SIX MONTHS AFTER THE17
458	455		ENTERPRISE BOARD IS CONFIRMED.18
459	456		(II) A
460	457		S FREQUENTLY AS THE ENTERPRISE BOARD DETERMINES19
461	458		NECESSARY, CONSIDER WHETHER THE AMOUNT OF THE STEWARDSHIP FEE20
462	459		SHOULD BE INCREASED OR REDUCED , BASED ON:21
463	460		(A) T
464	461		HE OVERALL COST OF THE ENTERPRISE 'S LONG-TERM22
465	462		STEWARDSHIP SERVICES, INCLUDING REASONABLY ANTICIPATED FUTURE23
466	463		EXPENDITURES FROM THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE24
467	464		CASH FUND; AND25
468	465		(B) T
469	466		HE NEED TO COMPLY WITH SUBSECTION (7)(b) OF THIS26
470	467		SECTION;27
471	468		1165
472	469		-13- (III) CONSIDER THE IMPORTANCE OF FINANCIAL1
473	470		PREDICTABILITY FOR OPERATORS WHEN DETERMINING THE FREQUENCY OF2
474	471		CHANGES TO THE STEWARDSHIP FEE AMOUNT ;3
475	472		(IV) I
476	473		F THE ENTERPRISE BOARD DETERMINES THAT AN INCREASE4
477	474		OR REDUCTION OF THE STEWARDSHIP FEE AMOUNT IS WARRANTED , ADJUST5
478	475		THE STEWARDSHIP FEE AMOUNT TO AN AMOUNT THAT IS REASONABLY6
479	476		RELATED TO THE OVERALL COST OF THE LONG -TERM STEWARDSHIP7
480	477		SERVICES PROVIDED BY THE ENTERPRISE ; AND8
481	478		(V) A
482	479		DVISE THE COMMISSION OF THE OUTCOME OF THE9
483	480		ENTERPRISE BOARD'S DELIBERATIONS PURSUANT TO THIS SUBSECTION (4).10
484	481		(5) Powers and duties. I
485	482		N ADDITION TO ANY OTHER POWERS AND11
486	483		DUTIES SPECIFIED IN THIS SECTION, THE ENTERPRISE BOARD HAS THE12
487	484		FOLLOWING GENERAL POWERS AND DUTIES ON BEHALF OF THE13
488	485		ENTERPRISE:14
489	486		(a) T
490	487		O ADOPT PROCEDURES FOR CONDUCTING THE ENTERPRISE15
491	488		BOARD'S AFFAIRS;16
492	489		(b) T
493	490		O ACQUIRE, HOLD TITLE TO, AND DISPOSE OF REAL AND17
494	491		PERSONAL PROPERTY, INCLUDING OWNERSHIP OF INJECTION CARBON18
495	492		DIOXIDE UPON APPROVAL OF SITE CLOSURE OF AN ASSOCIATED GEOLOGIC19
496	493		STORAGE FACILITY BY THE COMMISSION ;20
497	494		(c) T
498	495		O EMPLOY AND SUPERVISE INDIVIDUALS , PROFESSIONAL21
499	496		CONSULTANTS, AND CONTRACTORS AS ARE NECESSARY IN THE ENTERPRISE22
500	497		BOARD'S JUDGMENT TO CARRY OUT ITS BUSINESS PURPOSES ;23
501	498		(d) T
502	499		O ENGAGE THE SERVICES OF CONTRACTORS , CONSULTANTS,24
503	500		AND THE ATTORNEY GENERAL 'S OFFICE FOR PROFESSIONAL AND25
504	501		TECHNICAL ASSISTANCE AND ADVICE AND TO SUPPLY OTHER SERVICES26
505	502		RELATED TO THE CONDUCT OF THE AFFAIRS OF THE ENTERPRISE. THE27
506	503		1165
507	504		-14- ENTERPRISE MAY CONTRACT WITH THE DEPARTMENT FOR THE PROVISION1
508	505		OF OFFICE SPACE AND ADMINISTRATIVE STAFF TO THE ENTERPRISE AT A2
509	506		FAIR MARKET RATE.3
510	507		(e) TO SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, DONATIONS, OR4
511	508		OTHER PAYMENTS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES5
512	509		OF THIS SECTION, SO LONG AS THE TOTAL AMOUNT OF ALL GRANTS FROM6
513	510		COLORADO STATE AND LOCAL GOVERNMENTS RECEIVED IN ANY STATE7
514	511		FISCAL YEAR IS LESS THAN TEN PERCENT OF THE ENTERPRISE'S TOTAL8
515	512		ANNUAL REVENUE FOR THE STATE FISCAL YEAR. ALL MONEY RECEIVED AS9
516	513		GIFTS, GRANTS, AND DONATIONS SHALL BE CREDITED TO THE GEOLOGIC10
517	514		STORAGE STEWARDSHIP ENTERPRISE CASH FUND .11
518	515		(f) TO CREATE AND IMPOSE UPON GEOLOGIC STORAGE OPERATORS12
519	516		AN ADDITIONAL FEE TO ADDRESS PLUGGING, ABANDONING, RECLAIMING,13
520	517		AND REMEDIATING OF ORPHANED GEOLOGIC STORAGE FACILITIES, WHICH14
521	518		FEE IS IN AN AMOUNT THAT IS REAS ONABLY RELATED TO THE OVERALL15
522	519		COST OF PLUGGING, ABANDONING, RECLAIMING, AND REMEDIATING16
523	520		ORPHANED GEOLOGIC STORAGE FACILITIES, SO LONG AS THE ENTERPRISE17
524	521		BOARD FINDS THAT:18
525	522		(I) GEOLOGIC STORAGE OPERATIONS IN THE STATE ARE LIKELY TO19
526	523		CREATE ORPHANED GEOLOGIC STORAGE FACILITIES IN THE FUTURE ;20
527	524		(II) FINANCIAL ASSURANCE PROVIDED BY OPERATORS WILL BE21
528	525		INSUFFICIENT TO ADDRESS ORPHANED GEOLOGIC STORAGE FACILITIES ; AND22
529	526		(III) STEWARDSHIP FEES DEPOSITED INTO THE GEOLOGIC STORAGE23
530	527		STEWARDSHIP CASH FUND WILL BE INSUFFICIENT TO ADDRESS BOTH24
531	528		LONG-TERM STEWARDSHIP AND ORPHANED GEOLOGIC STORAGE25
532	529		FACILITIES;26
533	530		(g) TO HAVE AND EXERCISE ALL RIGHTS AND POWERS NECESSARY27
534	531		1165
535	532		-15- OR INCIDENTAL TO OR IMPLIED FROM THE SPECIFIC POWERS AND DUTIES1
536	533		GRANTED BY THIS SECTION; AND2
537	534		(h) TO PERFORM ALL ACTS NECESSARY TO ACCOMPLISH SITE3
538	535		CLOSURES PURSUANT TO COMMISSION RULES FOR ORPHANED GEOLOGIC4
539	536		STORAGE FACILITIES.5
540	537		(6) Stewardship fees - rules. (a) O
541	538		N OR BEFORE APRIL 30, 2026,6
542	539		AND ON OR BEFORE APRIL 30 EACH YEAR THEREAFTER, EACH GEOLOGIC7
543	540		STORAGE OPERATOR SHALL PAY A STEWARDSHIP FEE TO THE COMMISSION ,8
544	541		WHICH SHALL COLLECT THE STEWARDSHIP FEE ON THE ENTERPRISE 'S9
545	542		BEHALF, FOR EACH TON OF INJECTION CARBON DIOXIDE THAT THE10
546	543		GEOLOGIC STORAGE OPERATOR INJECTS IN THE STATE .11
547	544		(b) M
548	545		ONEY COLLECTED AS STEWARDSHIP FEES SHALL BE CREDITED12
549	546		TO THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND .13
550	547		(c) T
551	548		HE MONEY COLLECTED BY THE COMMISSION FOR TRANSFER TO14
552	549		THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND PURSUANT15
553	550		TO SUBSECTION (6)(b) OF THIS SECTION IS:16
554	551		(I) C
555	552		OLLECTED FOR THE ENTERPRISE;17
556	553		(II) C
557	554		USTODIAL MONEY INTENDED FOR THE ENTERPRISE AND HELD18
558	555		TEMPORARILY BY THE COMMISSION AND THE STATE TREASURER SOLELY19
559	556		FOR THE PURPOSE OF TRANSFERRING THE MONEY TO THE GEOLOGIC20
560	557		STORAGE STEWARDSHIP ENTERPRISE CASH FUND ; AND21
561	558		(III) B
562	559		ASED ON THE ENTERPRISE'S STATUS AS AN ENTERPRISE, NOT22
563	560		SUBJECT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION AT23
564	561		ANY TIME DURING THE MONEY 'S COLLECTION, TRANSFER, AND USE.24
565	562		(d) T
566	563		HE COMMISSION MAY ADOPT RULES TO IMPLEMENT THIS25
567	564		SUBSECTION (6).26
568	565		(7) Geologic storage stewardship enterprise cash fund - repeal.27
569	566		1165
570	567		-16- (a) THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND IS1
571	568		CREATED IN THE STATE TREASURY. THE GEOLOGIC STORAGE STEWARDSHIP2
572	569		ENTERPRISE CASH FUND CONSISTS OF:3
573	570		(I) M
574	571		ONEY RECEIVED AS STEWARDSHIP FEES ;4
575	572		(II) A
576	573		NY MONEY RECEIVED FROM THE ISSUANCE OF REVENUE5
577	574		BONDS, AS DESCRIBED IN SUBSECTION (3)(c)(II) OF THIS SECTION;
578	575		6
579	576		(III) ANY GIFTS, GRANTS, OR DONATIONS RECEIVED PURSUANT TO7
580	577		SUBSECTION (5)(e) OF THIS SECTION; AND8
581	578		(IV) ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY9
582	579		APPROPRIATE OR TRANSFER TO THE GEOLOGIC STORAGE STEWARDSHIP10
583	580		ENTERPRISE CASH FUND.11
584	581		(b) (I) T
585	582		HE TOTAL AMOUNT OF MONEY CREDITED OR12
586	583		APPROPRIATED TO THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE13
587	584		CASH FUND AS STEWARDSHIP FEES SHALL NOT EXCEED ONE HUNDRED14
588	585		MILLION DOLLARS IN THE FIRST FIVE YEARS OF THE ENTERPRISE 'S15
589	586		EXISTENCE.16
590	587		(II) T
591	588		HIS SUBSECTION (7)(b) IS REPEALED, EFFECTIVE JULY 1, 2031.17
592	589		(c) T
593	590		HE STATE TREASURER SHALL CREDIT ALL INTEREST AND18
594	591		INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE19
595	592		GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND TO THE20
596	593		GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND . ANY21
597	594		UNEXPENDED AND UNENCUMBERED MONEY REMAINING IN THE GEOLOGIC22
598	595		STORAGE STEWARDSHIP ENTERPRISE CASH FUND AT THE END OF A FISCAL23
599	596		YEAR REMAINS IN THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE24
600	597		CASH FUND AND SHALL NOT BE CREDITED OR TRANSFERRED TO THE25
601	598		GENERAL FUND OR TO ANY OTHER FUND .26
602	599		(d) M
603	600		ONEY CREDITED TO THE GEOLOGIC STORAGE STEWARDSHIP27
604	601		1165
605	602		-17- ENTERPRISE CASH FUND IS CONTINUOUSLY APPROPRIATED TO THE1
606	603		ENTERPRISE AND SHALL BE EXPENDED TO PAY THE COSTS OF :2
607	604		(I) L
608	605		ONG-TERM STEWARDSHIP;3
609	606		(II) P
610	607		LUGGING,
611	608		ABANDONING, RECLAIMING, AND REMEDIATING4
612	609		SERVICES FOR ORPHANED GEOLOGIC STORAGE FACILITIES AT THE REQUEST5
613	610		OF THE DIRECTOR OF THE COMMISSION IF THE COMMISSION, AFTER NOTICE6
614	611		AND A HEARING, DETERMINES THAT AVAILABLE FINANCIAL ASSURANCE IS7
615	612		INSUFFICIENT; AND8
616	613		(III) T
617	614		HE ENTERPRISE'S REASONABLE AND NECESSARY OPERATING9
618	615		EXPENSES.10
619	616		(8) Rules. T
620	617		HE ENTERPRISE SHALL ADOPT RULES AS NECESSARY TO11
621	618		IMPLEMENT THIS SECTION . IN ADOPTING ANY RULES CONCERNING12
622	619		SUBSECTION (6) OF THIS SECTION, THE ENTERPRISE SHALL CONSULT WITH13
623	620		THE COMMISSION.14
624	621		(9) Governmental immunity. N
625	622		OTHING IN THIS SECTION15
626	623		CONSTITUTES A WAIVER, ABROGATION, OR LIMITATION OF GOVERNMENTAL16
627	624		IMMUNITY, AS DESCRIBED IN ARTICLE 10 OF TITLE 24. GEOLOGIC STORAGE17
628	625		FACILITIES, GEOLOGIC STORAGE LOCATIONS , GEOLOGIC STORAGE18
629	626		RESOURCES, INJECTION CARBON DIOXIDE, AND FACILITIES ASSOCIATED19
630	627		WITH GEOLOGIC STORAGE OPERATIONS ARE NOT GAS FACILITIES FOR THE20
631	628		PURPOSES OF SECTION 24-10-106 (1)(f) AND DO NOT CONSTITUTE ANY21
632	629		OTHER AREA OR FACILITY FOR WHICH SOVEREIGN IMMUNITY IS WAIVED22
633	630		PURSUANT TO SECTION 24-10-106 (1).23
634	631		SECTION 5.
635	632		In Colorado Revised Statutes, 34-60-106, amend24
636	633		(9)(c)(II) and (9)(c)(IV)(D); repeal (9)(c)(IV)(D.5) and (9)(e)(VI); and25
637	634		add (9.4) as follows:26
638	635		34-60-106. Additional powers of commission - fees - rules -27
639	636		1165
640	637		-18- definitions - repeal. (9) (c) (II) (A) The commission may issue and1
641	638		enforce permits for geologic storage operations and may regulate geologic2
642	639		storage operations after the commission makes the determination and3
643	640		holds the hearing set forth in subsection (9)(c)(I) of this section and the4
644	641		commission and the governor satisfy the requirements set forth in5
645	642		subsection (9)(a) of this section.6
646	643		(B) A
647	644		PERSON THAT WILLFULLY VIOLATES A CLASS VI RULE,
648	645		7
649	646		REGULATION, PERMIT, OR ORDER OF THE COMMISSION ISSUED PURSUANT8
650	647		TO SUBSECTION (9)(c)(II)(A) OF THIS SECTION COMMITS A MISDEMEANOR9
651	648		AND, UPON CONVICTION BY A COURT OF COMPETENT JURISDICTION , IS10
652	649		SUBJECT TO A FINE OF AT LEAST FIVE THOUSAND DOLLARS AND NO MORE11
653	650		THAN SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR EACH ACT OF12
654	651		VIOLATION AND FOR EACH DAY THAT THE PERSON REMAINS IN VIOLATION . 13
655	652		(IV) (D) A geologic storage operator shall maintain the financial14
656	653		assurance required under BY this subsection (9)(c)(IV) or under any rules15
657	654		adopted pursuant to this subsection (9)(c)(IV) until the commission16
658	655		approves site closure, as specified in rules adopted by the commission.17
659	656		E
660	657		XCEPT AS DESCRIBED IN SUBSECTION (9.4) OF THIS SECTION, commission18
661	658		approval of a site closure does not otherwise modify an operator's19
662	659		responsibility to comply with applicable laws.20
663	660		(D.5) If a geologic storage operator makes a material
664	661		21
665	662		misrepresentation or omission that causes the commission to approve a22
666	663		site closure pursuant to subsection (9)(c)(IV)(D) of this section, the23
667	664		commission may reimpose any regulatory responsibility or financial24
668	665		assurance obligation imposed on the geologic storage operator pursuant25
669	666		to subsection (9)(c)(IV)(A) of this section.26
670	667		(e) As used in this subsection (9), unless the context otherwise27
671	668		1165
672	669		-19- requires:1
673	670		(VI) "Site closure" has the meaning set forth in 40 CFR 146.81.2
674	671		(9.4) (a) B
675	672		EFORE THE COMMISSION APPROVES A SITE CLOSURE ,3
676	673		TITLE TO THE INJECTION CARBON DIOXIDE STORED BY A GEOLOGIC4
677	674		STORAGE OPERATOR REMAINS WITH THE GEOLOGIC STORAGE OPERATOR5
678	675		OR ANY PARTY TO WHICH THE GEOLOGIC STORAGE OPERATOR6
679	676		TRANSFERRED TITLE.7
680	677		(b) I
681	678		N ADDITION TO ANY CRITERIA FOR SITE CLOSURE REQUIRED BY8
682	679		RULES ADOPTED BY THE COMMISSION , THE COMMISSION SHALL NOT9
683	680		APPROVE A SITE CLOSURE UNTIL THE COMMISSION HAS DETERMINED THAT10
684	681		THE GEOLOGIC STORAGE OPERATOR REQUESTING THE SITE CLOSURE HAS11
685	682		CONTRIBUTED MONEY TO THE GEOLOGIC STORAGE STEWARDSHIP12
686	683		ENTERPRISE CASH FUND CREATED IN SECTION 34-60-144 (7) IN AN13
687	684		AMOUNT SUFFICIENT TO PAY FOR LONG -TERM STEWARDSHIP OF THE14
688	685		GEOLOGIC STORAGE FACILITY FOR WHICH THE OPERATOR REQUESTS THE15
689	686		SITE CLOSURE.16
690	687		(c) U
691	688		PON APPROVAL BY THE COMMISSION OF A SITE CLOSURE :17
692	689		(I) O
693	690		WNERSHIP OF THE INJECTION CARBON DIOXIDE AND18
694	691		OWNERSHIP OF ANY REMAINING GEOLOGIC STORAGE FACILITIES ,19
695	692		INCLUDING THOSE USED TO INJECT , MONITOR, OR STORE INJECTION20
696	693		CARBON DIOXIDE, TRANSFER TO THE STATE WITHOUT PAYMENT OF21
697	694		COMPENSATION;22
698	695		(II) T
699	696		HE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CREATED23
700	697		IN SECTION 34-60-144 SHALL UNDERTAKE LONG-TERM STEWARDSHIP OF24
701	698		THE INJECTION CARBON DIOXIDE AND ANY ASSOCIATED GEOLOGIC25
702	699		STORAGE FACILITY; AND26
703	700		(III) T
704	701		HE GEOLOGIC STORAGE OPERATOR IS RELEASED FROM ALL27
705	702		1165
706	703		-20- FURTHER REGULATORY LIABILITY ASSOCIATED WITH THE GEOLOGIC1
707	704		STORAGE OPERATIONS OR ASSOCIATED GEOLOGIC STORAGE FACILITY ,2
708	705		EXCEPT AS PROVIDED IN SUBSECTION (9.4)(d) OF THIS SECTION.3
709	706		(d) R
710	707		EGULATORY LIABILITY REMAINS WITH THE GEOLOGIC4
711	708		STORAGE OPERATOR TO THE EXTENT THAT THE COMMISSION DETERMINES ,5
712	709		AFTER NOTICE AND HEARING, THAT:6
713	710		(I) T
714	711		HE GEOLOGIC STORAGE OPERATOR
715	712		WAS IN MATERIAL7
716	713		VIOLATION OF A STATE LAW OR REGULATION RELATED TO THE GEOLOGIC8
717	714		STORAGE OPERATIONS OR ANY ASSOCIATED GEOLOGIC STORAGE FACILITY9
718	715		THAT WAS NOT REMEDIED PRIOR TO APPROVAL OF SITE CLOSURE AND HAS10
719	716		NOT BEEN REMEDIED SINCE THAT TIME, AND ANY APPLICABLE STATUTES11
720	717		OF LIMITATION HAVE NOT RUN;12
721	718		(II) T
722	719		HE GEOLOGIC STORAGE OPERATOR PROVIDED DEFICIENT OR13
723	720		ERRONEOUS INFORMATION THAT WAS MATERIAL AND RELIED UPON BY THE14 COMMISSION TO SUPPORT THE APPROVAL OF SITE CLOSURE ;15
724	721		(III) CONTRACTUAL, CIVIL, OR CRIMINAL LIABILITY ARISES FROM16
725	722		CONDUCT OF THE GEOLOGIC STORAGE OPERATOR ASSOCIATED WITH THE17
726	723		GEOLOGIC STORAGE OPERATIONS OR ANY ASSOCIATED GEOLOGIC STORAGE18
727	724		FACILITY AND SUCH LIABILITY MATERIALLY AFFECTS THE COMMISSION'S19
728	725		DECISION TO APPROVE SITE CLOSURE; OR20
729	726		(IV) T
730	727		HERE IS FLUID MIGRATION FOR WHICH THE GEOLOGIC21
731	728		STORAGE OPERATOR IS RESPONSIBLE THAT CAUSES OR THREATENS TO22
732	729		CAUSE IMMINENT AND SUBSTANTIAL E NDANGERMENT TO AN23
733	730		UNDERGROUND SOURCE OF DRINKING WATER .24
734	731		(e) A
735	732		FTER NOTICE AND HEARING, THE COMMISSION MAY REIMPOSE25
736	733		ANY REGULATORY LIABILITY FROM WHICH THE GEOLOGIC STORAGE26
737	734		OPERATOR HAS BEEN RELEASED PURSUANT TO SUBSECTION (9.4)(c)(III) OF27
738	735		1165
739	736		-21- THIS SECTION AND FINANCIAL ASSURANCE OBLIGATIONS , IF THE1
740	737		COMMISSION DETERMINES THAT :2
741	738		(I) T
742	739		HE GEOLOGIC STORAGE OPERATOR MADE A MATERIAL3
743	740		MISREPRESENTATION OR OMISSION THAT CAUSED THE COMMISSION TO4
744	741		APPROVE A SITE CLOSURE;5
745	742		(II) T
746	743		HE GEOLOGIC STORAGE OPERATOR
747	744		WAS IN MATERIAL6
748	745		VIOLATION OF A DUTY IMPOSED ON THE OPERATOR BY STATE LAW ,7
749	746		INCLUDING BY RULES, PRIOR TO APPROVAL OF A SITE CLOSURE, THE8
750	747		MATERIAL VIOLATION HAS NOT BEEN REMEDIED, AND ANY APPLICABLE9
751	748		STATUTES OF LIMITATION HAVE NOT RUN ; OR10
752	749		(III) T
753	750		HERE IS MIGRATION OF THE INJECTION CARBON DIOXIDE FOR11
754	751		WHICH THE GEOLOGIC STORAGE OPERATOR IS RESPONSIBLE THAT CAUSES12
755	752		OR THREATENS TO CAUSE IMMINENT AND SUBSTANTIAL ENDANGERMENT13
756	753		TO AN UNDERGROUND SOURCE OF DRINKING WATER .14
757	754		(f) N
758	755		OTHING IN THIS SUBSECTION (9.4) WAIVES, ABROGATES, OR15
759	756		LIMITS GOVERNMENTAL IMMUNITY , AS DESCRIBED IN ARTICLE 10 OF TITLE16
760	757		24.
761	758		GEOLOGIC STORAGE FACILITIES, GEOLOGIC STORAGE LOCATIONS ,17
762	759		GEOLOGIC STORAGE RESOURCES , INJECTION CARBON DIOXIDE , AND18
763	760		FACILITIES ASSOCIATED WITH GEOLOGIC STORAGE OPERATIONS ARE NOT19
764	761		GAS FACILITIES FOR THE PURPOSES OF SECTION 24-10-106 (1)(f) AND DO20
765	762		NOT CONSTITUTE ANY OTHER AREA OR FACILITY FOR WHICH SOVEREIGN21
766	763		IMMUNITY IS WAIVED PURSUANT TO SECTION 24-10-106 (1).22
767	764		(g) A
768	765		S USED IN THIS SUBSECTION (9.4), UNLESS THE CONTEXT
769	766		23
770	767		OTHERWISE REQUIRES:24
771	768		(I) "R
772	769		EGULATORY LIABILITY" MEANS A GEOLOGIC STORAGE
773	770		25
774	771		OPERATOR'S OBLIGATION TO COMPLY WITH ANY RULE , REGULATION,26
775	772		PERMIT CONDITION, OR ORDER OF THE COMMISSION ADOPTED OR ISSUED27
776	773		1165
777	774		-22- PURSUANT TO SUBSECTION (9)(c)(II) OF THIS SECTION FOR GEOLOGIC1
778	775		STORAGE OPERATIONS.2
779	776		(II) "R
780	777		EGULATORY LIABILITY" INCLUDES A GEOLOGIC STORAGE
781	778		3
782	779		OPERATOR'S EXPOSURE TO PENALTIES ASSESSED IN ACCORDANCE WITH4
783	780		SECTION 34-60-121 FOR VIOLATIONS OF ANY RULE, REGULATION, PERMIT5
784	781		CONDITION, OR ORDER OF THE COMMISSION ADOPTED OR ISSUED6
785	782		PURSUANT TO SUBSECTION (9)(c)(II) OF THIS SECTION FOR GEOLOGIC7
786	783		STORAGE OPERATIONS.8
787	784		(III) "R
788	785		EGULATORY LIABILITY" DOES NOT INCLUDE A GEOLOGIC
789	786		9
790	787		STORAGE OPERATOR'S CIVIL, CONTRACTUAL, OR CRIMINAL LIABILITY.10
791	788		SECTION 6. In Colorado Revised Statutes, 34-60-140, amend11
792	789		(2)(a)(II) introductory portion as follows:12
793	790		34-60-140. Ownership of geologic storage resources and13
794	791		injection carbon dioxide - legislative declaration. (2) (a) Except as set14
795	792		forth in subsection (5) of this section:15
796	793		(II) UNTIL ownership of injection carbon dioxide and the facilities16
797	794		and equipment that store injection carbon dioxide in the state TRANSFER17
798	795		TO THE STATE PURSUANT TO SECTION 34-60-106 (9.4)(c)(I), SUCH18
799	796		OWNERSHIP is vested in:19
800	797		SECTION 7. In Colorado Revised Statutes, 37-80-111.5, amend20
801	798		(1)(d) as follows:21
802	799		37-80-111.5. Fees - rules - satellite monitoring system cash22
803	800		fund - well inspection cash fund - created. (1) (d) Of each fee collected23
804	801		pursuant to sections 37-90-105 (3)(a)(I) and (4)(a); 37-90-107 (7)(d)(I);24
805	802		37-90-116 (1)(a), (1)(c), and (1)(h); 37-90-137 (2)(a); 37-90.5-106;25
806	803		37-90.5-107; and 37-92-602 (3)(a) and (5), forty dollars A PORTION shall26
807	804		be credited to the well inspection cash fund, which fund is hereby created.27
808	805		1165
809	806		-23- Moneys THE AMOUNT OF THE PORTION TRANSFERRED TO THE WELL1
810	807		INSPECTION CASH FUND IS FORTY DOLLARS , AND THIS AMOUNT MAY BE2
811	808		MODIFIED BY RULES ADOPTED BY THE BOARD OF EXAMINERS PURS UANT TO3
812	809		SECTION 37-91-104 (1)(c). MONEY in the well inspection cash fund shall4
813	810		be
814	811		CONTINUOUSLY appropriated to and expended by the state engineer for5
815	812		the purposes established in section 37-91-113. Any moneys
816	813		MONEY6
817	814		credited to the well inspection cash fund and unexpended at the end of7
818	815		any given
819	816		STATE fiscal year remain
820	817		REMAINS in the fund and do DOES not8
821	818		revert to the general fund. All interest derived from the deposit and9
822	819		investment of this fund remain REMAINS in the fund and do DOES not10
823	820		revert to the general fund.11
824	821		SECTION 8. In Colorado Revised Statutes, 37-80-111.7, amend12
825	822		(2) introductory portion and (2)(b) as follows:13
826	823		37-80-111.7. Water resources cash fund - created - uses.14
827	824		(2) The state engineer shall collect the following fees and transmit them15
828	825		to the state treasurer, who shall credit them to the fund, except as16
829	826		specified in paragraph (b) of this subsection (2) SUBSECTION (2)(b) OF17
830	827		THIS SECTION:18
831	828		(b) The state engineer shall collect fees pursuant to sections19
832	829		37-90-105 (3)(a) and (4); 37-90-107 (7)(c)(I) and (7)(d)(I); 37-90-108 (4)20
833	830		and (6); 37-90-116 (1)(a), (1)(c), (1)(h), and (1)(i); 37-90-137 (2), (3)(a),21
834	831		and (3)(c); 37-90.5-106; 37-90.5-107; 37-92-305 (17); 37-92-308; and22
835	832		37-92-602 (1)(g)(III)(C), (3)(a), and (5). The
836	833		STATE treasurer shall credit23
837	834		the fees collected pursuant to this paragraph (b)
838	835		SUBSECTION (2)(b) to the24
839	836		fund except as specified in section 37-80-111.5 (1)(d).25
840	837		SECTION 9. In Colorado Revised Statutes, 37-90-103, amend26
841	838		(10.5) as follows:27
842	839		1165
843	840		-24- 37-90-103. Definitions - repeal. As used in this article 90, unless1
844	841		the context otherwise requires:2
845	842		(10.5) "Nontributary groundwater" means that groundwater,3
846	843		located outside the boundaries of any designated groundwater basins in4
847	844		existence on January 1, 1985 EXCLUDING DESIGNATED GROUNDWATER ,5
848	845		the withdrawal of which will not, within one hundred years of continuous6
849	846		withdrawal, deplete the flow of a natural stream, including a natural7
850	847		stream as defined in sections 37-82-101 (2) and 37-92-102 (1)(b), at an8
851	848		annual rate greater than one-tenth of one percent of the annual rate of9
852	849		withdrawal. The determination of whether groundwater is nontributary10
853	850		shall be based on aquifer conditions existing at the time of permit11
854	851		application; except that, in recognition of the de minimis amount of water12
855	852		discharging from the Dawson, Denver, Arapahoe, and Laramie-Fox Hills13
856	853		aquifers into surface streams due to artesian pressure, when compared14
857	854		with the great economic importance of the groundwater in those aquifers,15
858	855		and the feasibility and requirement of full augmentation by wells located16
859	856		in the tributary portions of those aquifers, it is specifically found and17
860	857		declared that, in determining whether groundwater of the Dawson,18
861	858		Denver, Arapahoe, and Laramie-Fox Hills aquifers is nontributary, it shall19
862	859		be assumed that the hydrostatic pressure level in each such aquifer has20
863	860		been lowered at least to the top of that aquifer throughout that aquifer;21
864	861		except that not nontributary groundwater, as defined in subsection (10.7)22
865	862		of this section, in the Denver basin shall not become nontributary23
866	863		groundwater as a result of the aquifer's hydrostatic pressure level24
867	864		dropping below the alluvium of an adjacent stream due to Denver basin25
868	865		well pumping activity. Nothing in this subsection (10.5) shall preclude26
869	866		PRECLUDES the designation of any aquifer or basin, or any portion thereof,27
870	867		1165
871	868		-25- which OF AN AQUIFER OR BASIN , THAT is otherwise eligible for1
872	869		designation under the standard set forth in subsection (6) of this section2
873	870		relating to groundwater in areas not adjacent to a continuously flowing3
874	871		natural stream wherein groundwater withdrawals have constituted the4
875	872		principal water usage for at least fifteen years preceding the date of the5
876	873		first hearing on the proposed designation of a basin.6
877	874		SECTION 10. In Colorado Revised Statutes, 37-90-137, amend7
878	875		(2)(a)(II), (2)(b)(I), (2)(b)(II) introductory portion, (2)(b)(II)(A),8
879	876		(2)(b)(II)(B), and (2)(c); and add (2)(e) and (7.5) as follows:9
880	877		37-90-137. Permits to construct wells outside designated10
881	878		basins - fees - permit no groundwater right - evidence - time11
882	879		limitation - well permits - rules - definition. (2) (a) (II) Effective July12
883	880		1, 2006, upon receipt of an application for a replacement well or a new,13
884	881		increased, or additional supply of groundwater from an area outside the14
885	882		boundaries of a designated groundwater basin, accompanied by a filing15
886	883		fee of one hundred dollars, the state engineer shall make a determination16
887	884		as to whether or not the exercise of the requested permit will materially17
888	885		injure the vested water rights
889	886		OR PRIOR GEOTHERMAL OPERATIONS of18
890	887		others.19
891	888		(b) (I) The state engineer shall issue a permit to construct a well20
892	889		only if:21
893	890		(A) The state engineer finds, as substantiated by hydrological and22
894	891		geological facts, that there is unappropriated water available for23
895	892		withdrawal by the proposed well and that the vested water rights
896	893		OR PRIOR24
897	894		GEOTHERMAL OPERATIONS of others will not be materially injured; and25
898	895		(B) Except as specified in subparagraph (II) of this paragraph (b)
899	896		26
900	897		SUBSECTION (2)(b)(II) OF THIS SECTION, the location of the proposed well27
901	898		1165
902	899		-26- will be more than six hundred feet from an existing well COMPLETED IN1
903	900		THE SAME AQUIFER AND MORE THAN ONE-FOURTH OF A MILE FROM A PRIOR2
904	901		GEOTHERMAL OPERATION UTILIZING WATER FROM THE SAME AQUIFER .3
905	902		(II) If the state engineer, after a hearing, finds that circumstances4
906	903		in a particular instance so warrant, or if a court decree is entered for the5
907	904		proposed well location after notice has been given in accordance with6
908	905		sub-subparagraph (B) of this subparagraph (II) SUBSECTION (2)(b)(II)(B)7
909	906		OF THIS SECTION, the state engineer may issue a permit without regard to8
910	907		the limitation specified in sub-subparagraph (B) of subparagraph (I) of9
911	908		this paragraph (b) SUBSECTION (2)(b)(I)(B) OF THIS SECTION; except that10
912	909		no A hearing shall be IS NOT required and the state engineer may issue a11
913	910		well permit without regard to the limitation specified in sub-subparagraph12
914	911		(B) of subparagraph (I) of this paragraph (b) SUBSECTION (2)(b)(I)(B) OF13
915	912		THIS SECTION:14
916	913		(A) If the state engineer notifies the owners of all wells within six15
917	914		hundred feet of the proposed well by certified mail and receives no16
918	915		response within the time set forth in the notice,
919	916		AND
920	917		IF THE PROPOSED17
921	918		WELL IS LOCATED WITHIN ONE-FOURTH OF A MILE OF A PRIOR18
922	919		GEOTHERMAL OPERATION, AND THE STATE ENGINEER NOTIFIES THE PRIOR19
923	920		GEOTHERMAL OPERATION'S DESIGNATED INDIVIDUALS AND THE ENERGY20
924	921		AND CARBON MANAGEMENT COMMISSION BY ELECTRONIC MAIL AND21
925	922		RECEIVES NO RESPONSE WITHIN THE TIME SET FORTH IN THE NOTICE;22
926	923		(B) If the proposed well is part of a water court proceeding23
927	924		adjudicating the water right for the well, or if the proposed well is part of24
928	925		an adjudication of a plan for augmentation or change of water right and25
929	926		if evidence is provided to the water court that the applicant has given26
930	927		notice of the water court application, at least fourteen days before making27
931	928		1165
932	929		-27- the application, by registered or certified mail, return receipt requested,1
933	930		to the owners of record of all wells within six hundred feet of the2
934	931		proposed well AND TO ALL DESIGNATED INDIVIDUALS OF PRIOR3
935	932		GEOTHERMAL OPERATIONS WITHIN ONE-FOURTH OF A MILE OF THE4
936	933		PROPOSED WELL;5
937	934		(c) The permit shall set forth such THE conditions for drilling,6
938	935		casing, and equipping wells and other diversion facilities as are7
939	936		reasonably necessary to prevent waste, pollution, or material injury to8
940	937		existing rights
941	938		OR PRIOR GEOTHERMAL OPERATIONS .9
942	939		(e) A
943	940		S USED IN THIS SUBSECTION (2), UNLESS THE CONTEXT10
944	941		OTHERWISE REQUIRES:11
945	942		(I) "MATERIAL INJURY TO A PRIOR GEOTHERMAL OPERATION" HAS12
946	943		THE MEANING SET FORTH IN SECTION 37-90.5-106 (1)(c).13
947	944		(II) "PRIOR GEOTHERMAL OPERATION" HAS THE MEANING SET14
948	945		FORTH IN SECTION 37-90.5-103 (14.5).15
949	946		(7.5) (a) E
950	947		XCEPT AS REQUIRED BY SUBSECTION (7.5)(b) OF THIS16
951	948		SECTION, A PERMIT FROM THE STATE ENGINEER IS NOT REQUIRED IN THE17
952	949		CASE OF WITHDRAWING NONTRIBUTARY GROUNDWATER FROM A GEOLOGIC18
953	950		FORMATION IF THE WITHDRAWAL IS PERMITTED AS A DEEP GEOTHERMAL19
954	951		OPERATION, AS DEFINED IN SECTION 37-90.5-103 (3), AND THE20
955	952		WITHDRAWN NONTRIBUTARY GROUNDWATER WILL BE USED ONLY FOR21
956	953		OPERATIONS TO EXTRACT OR UTILIZE HEAT , INCLUDING:22
957	954		(I) G
958	955		ENERATING ELECTRICITY;23
959	956		(II) H
960	957		EATING AND COOLING BUILDINGS;24
961	958		(III) H
962	959		EATING SWIMMING POOLS , PUBLIC BATHHOUSES , OR25
963	960		DEVELOPED HOT SPRINGS FACILITIES;26
964	961		(IV) H
965	962		EATING AQUACULTURE;27
966	963		1165
967	964		-28- (V) MELTING SNOW OR ICE;1
968	965		(VI) H
969	966		EATING TO FACILITATE CARBON DIOXIDE CAPTURE OR2
970	967		HYDROGEN PRODUCTION ;3
971	968		(VII) D
972	969		EEP GEOTHERMAL EXPLORATION , RESOURCE4
973	970		CONFIRMATION, OR RESERVOIR ENHANCEMENT ; AND5
974	971		(VIII) H
975	972		EATING AND DRYING FOR OTHER INDUSTRIAL PROCESSES .6
976	973		(b) A
977	974		WELL PERMIT IS REQUIRED IF THE OPERATOR WILL USE THE7
978	975		NONTRIBUTARY GROUNDWATER FOR ADDITIONAL BENEFICIAL USES8
979	976		UNRELATED TO THE EXTRACTION OR UTILIZATION OF HEAT .9
980	977		SECTION 11. In Colorado Revised Statutes, 37-90.5-102,10
981	978		amend (1)(b) as follows:11
982	979		37-90.5-102. Legislative declaration. (1) The general assembly12
983	980		hereby declares that:13
984	981		(b) The development of geothermal resources should be14
985	982		undertaken in such a manner as to safeguard life, health, property, public15
986	983		welfare, HISTORIC GEOTHERMAL HOT SPRINGS, and the environment,16
987	984		including wildlife resources; encourage the maximum economic recovery17
988	985		of each resource and prevent its waste; and protect associated correlative18
989	986		rights.19
990	987		SECTION 12. In Colorado Revised Statutes, 37-90.5-103,20
991	988		amend (1)(b) and (3)(c)(II); repeal (13); and add (9.5) and (14.5) as21
992	989		follows:22
993	990		37-90.5-103. Definitions. As used in this article 90.5, unless the23
994	991		context otherwise requires:24
995	992		(1) (b) "Allocated geothermal resource" does not include25
996	993		groundwater in the Denver basin aquifers
997	994		OR NONTRIBUTARY26
998	995		GROUNDWATER AQUIFERS ENTIRELY LOCATED SHALLOWER THAN TWO27
999	996		1165
1000	997		-29- THOUSAND FIVE HUNDRED FEET .1
1001	998		(3) (c) "Deep geothermal operation" does not include:2
1002	999		(II) The use of any heat extracted with produced fluids in an oil3
1003	1000		and gas operation if the
1004	1001		UTILIZATION OF THE heat is only utilized to reduce
1005	1002		4
1006	1003		emissions from the operation in the same location as the well from which5
1007	1004		it was produced and would otherwise not be economically feasible as a6
1008	1005		standalone geothermal resource project.7
1009	1006		(9.5) "HISTORIC HOT SPRING" MEANS A HOT SPRING THAT IS8
1010	1007		REGISTERED AS DESCRIBED IN SECTION 37-90.5-106 (7) AND IS EITHER:9
1011	1008		(a) A COMMERCIAL GEOTHERMAL HOT SPRING WITH A VESTED10
1012	1009		WATER RIGHT; OR11
1013	1010		(b) A NONCOMMERCIAL GEOTHERMAL HOT SPRING THAT IS12
1014	1011		ACCESSIBLE TO AND ENJOYED BY THE PUBLIC .13
1015	1012		(13) "Nonconsumptive geothermal operation" means an operation14
1016	1013		using geothermal resources in which the volume of geothermal fluid15
1017	1014		extracted from an aquifer or formation is no more than the volume of the16
1018	1015		geothermal fluid reinjected in the same aquifer or formation over a17
1019	1016		reasonable time frame and distance.18
1020	1017		(14.5) "PRIOR GEOTHERMAL OPERATION " MEANS:19
1021	1018		(a) A GEOTHERMAL WELL, OPERATION, DISTRICT, OR UNIT20
1022	1019		AUTHORIZED BY THE STATE ENGINEER OR THE ENERGY AND CARBON21
1023	1020		MANAGEMENT COMMISSION PURSUANT TO THIS ARTICLE 90.5; OR22
1024	1021		(b) A HISTORIC HOT SPRING.23
1025	1022		SECTION 13. In Colorado Revised Statutes, 37-90.5-104,24
1026	1023		amend (2) and (4); and repeal (5) as follows:25
1027	1024		37-90.5-104. Ownership declaration. (2) The property right to26
1028	1025		a hot dry rock resource or a geothermal resource associated with27
1029	1026		1165
1030	1027		-30- nontributary groundwater is an incident of the ownership of the overlying1
1031	1028		surface, unless the property right is severed, reserved, or transferred with2
1032	1029		the subsurface estate expressly
1033	1030		OR IS OTHERWISE EXPRESSLY SEPARATE3
1034	1031		FROM THE SURFACE ESTATE. GEOTHERMAL RESOURCES ASSOCIATED WITH4
1035	1032		NONTRIBUTARY GROUNDWATER SHALL NOT BE TRANSFERRED SEPARATELY5
1036	1033		FROM THE NONTRIBUTARY GRO UNDWATER . WITH RESPECT TO ANY6
1037	1034		SEVERANCE, RESERVATION, OR TRANSFER OCCURRING AFTER
1038	1035		SEPTEMBER7
1039	1036		1, 2025:8
1040	1037		(a) F
1041	1038		OR ANY SEVERANCE , RESERVATION, OR TRANSFER OF9
1042	1039		NONTRIBUTARY GROUNDWATER , THERE IS A REBUTTABLE PRESUMPTION10
1043	1040		THAT THE SEVERANCE , RESERVATION, OR TRANSFER INCLUDES ANY11
1044	1041		ASSOCIATED GEOTHERMAL RESOURCES UNLESS THE SEVERANCE ,12
1045	1042		RESERVATION, OR TRANSFER EXPRESSLY STATES OTHERWISE ; AND13
1046	1043		(b) F
1047	1044		OR ANY SEVERANCE , RESERVATION, OR TRANSFER OF14
1048	1045		GEOTHERMAL RESOURCES ASSOCIATED WITH NONTRIBUTARY15
1049	1046		GROUNDWATER, THERE IS A REBUTTABLE PRESUMPTION THAT THE16
1050	1047		SEVERANCE, RESERVATION, OR TRANSFER INCLUDES THE ASSOCIATED17
1051	1048		NONTRIBUTARY GROUNDWATER UNLESS THE SEVERANCE , RESERVATION,18
1052	1049		OR TRANSFER EXPRESSLY STATES OTHERWISE .19
1053	1050		(4) Notwithstanding any provision of this section to the contrary,20
1054	1051		nothing in this section:21
1055	1052		(a) Derogates the rights of a landowner to nontributary22
1056	1053		groundwater; or
1057	1054		23
1058	1055		(b) Affects any ownership or rights to a geothermal resource24
1059	1056		associated with nontributary groundwater, which resource is acquired25
1060	1057		before July 1, 2023;
1061	1058		OR26
1062	1059		(c) P
1063	1060		REVENTS AN OWNER OF NONTRIBUTARY GROUNDWATER27
1064	1061		1165
1065	1062		-31- RIGHTS FROM ACCESSING NONTRIBUTARY GROUNDWATER FOR1
1066	1063		NONGEOTHERMAL PURPOSES THAT WILL NOT MATERIALLY INJURE A 2
1067	1064		PRIOR GEOTHERMAL OPERATION .3
1068	1065		(5) Notwithstanding any provision of this section to the contrary,4
1069	1066		geothermal resources associated with nontributary groundwater shall not5
1070	1067		be transferred separately from the nontributary groundwater.6
1071	1068		SECTION 14. In Colorado Revised Statutes, 37-90.5-106,7
1072	1069		amend (1)(a)(I), (1)(a)(II), (1)(b)(III), (3), and (6); and add (1)(a)(IV),8
1073	1070		(1)(a)(V), (1)(c), (2)(c), and (7) as follows:9
1074	1071		37-90.5-106. Regulation of geothermal resource operations -10
1075	1072		reinjection - fees - rules - definition. (1) (a) (I) The state engineer has11
1076	1073		AND THE BOARD OF EXAMINERS OF WATER WELL AND GROUND HEAT12
1077	1074		EXCHANGER CONTRACTORS CREATED IN SECTION 37-91-103 HAVE the13
1078	1075		exclusive authority to regulate shallow geothermal operations and may14
1079	1076		adopt rules that regulate shallow geothermal operations.15
1080	1077		(II) Prior to BEFORE constructing a test bore, GROUND HEAT16
1081	1078		EXCHANGER, monitoring well, or production well or reworking an17
1082	1079		existing well associated with shallow geothermal operations,
1083	1080		A PERSON18
1084	1081		SHALL OBTAIN an operations permit must be obtained
1085	1082		from the state19
1086	1083		engineer.20
1087	1084		(IV) THE STATE ENGINEER SHALL MAINTAIN A TRIBUTARY21
1088	1085		GEOTHERMAL NOTIFICATION LIST FOR EACH WATER DIVISION .22
1089	1086		(V) (A) AN APPLICANT FOR A NEW GEOTHERMAL WELL PERMIT23
1090	1087		WITHDRAWING TRIBUTARY GROUNDWATER AT A RATE GREATER THAN24
1091	1088		FIFTY GALLONS PER MINUTE SHALL PROVIDE A COPY OF THE APPLICATION25
1092	1089		BY ELECTRONIC MAIL TO ALL PARTIES THAT HAVE SUBSCRIBED TO THE26
1093	1090		TRIBUTARY GEOTHERMAL NOTIFICATION LIST FOR THE WATER DIVISION IN27
1094	1091		1165
1095	1092		-32- WHICH THE WELL WILL BE LOCATED AND SHALL FILE PROOF OF SUCH1
1096	1093		NOTICE WITH THE STATE ENGINEER.2
1097	1094		(B) THE STATE ENGINEER SHALL ALLOW THE OWNERS OR3
1098	1095		OPERATORS OF PRIOR GEOTHERMAL OPERATIONS, VESTED WATER RIGHTS,4
1099	1096		OR WELLS THIRTY-FIVE DAYS AFTER THE DATE OF THE ELECTRONIC5
1100	1097		MAILING OF THE NOTICE TO SUBMIT A CLAIM OF MATERIAL INJURY . ANY6
1101	1098		SUCH CLAIM MAY REQUEST CONDITIONS TO BE IMPOSED UPON THE WELL7
1102	1099		PERMIT IN ORDER TO PREVENT SUCH INJURY AND PROVIDE OTHER8
1103	1100		INFORMATION TO BE CONSIDERED BY THE STATE ENGINEER IN REVIEWING9
1104	1101		THE APPLICATION.10
1105	1102		(C) IF AN APPLICANT PROPOSES A GEOTHERMAL WELL11
1106	1103		WITHDRAWING TRIBUTARY GROUNDWATER AT A RATE GREATER THAN12
1107	1104		FIFTY GALLONS PER MINUTE , AND THE PROPOSED WELL IS IN A13
1108	1105		HYDROGEOLOGIC SETTING WHERE IT HAS THE POTENTIAL TO MATERIALLY14
1109	1106		INJURE A HISTORIC HOT SPRING, THE APPLICANT SHALL PROVIDE GEOLOGIC15
1110	1107		AND HYDROLOGIC EVIDENCE TO BE CONSIDERED BY THE STATE ENGINEER.16
1111	1108		THE EVIDENCE MUST DEMONSTRATE THAT THE PROPOSED WELL WILL NOT17
1112	1109		MATERIALLY INJURE THE HISTORIC HOT SPRING . THE STATE ENGINEER18
1113	1110		SHALL AMEND THE GEOTHERMAL RULES ADOPTED PURSUANT TO19
1114	1111		SUBSECTION (1)(a)(I) OF THIS SECTION TO IMPLEMENT THE REQUIREMENTS20
1115	1112		OF THIS SUBSECTION (1)(a)(V)(C).21
1116	1113		(b) (III) In issuing an operations permit pursuant to subsection22
1117	1114		(1)(b)(II) of this section, the commission:23
1118	1115		(A) May allow for the use of groundwater as part of24
1119	1116		nonconsumptive geothermal operations PURSUANT TO SECTION 37-90-13725
1120	1117		(7.5)(a) as a material medium for allocated geothermal resources that26
1121	1118		have been determined to be nontributary pursuant to section 37-90.5-10727
1122	1119		1165
1123	1120		-33- (1)(b); AND1
1124	1121		(B) SHALL MAKE A FINDING BASED UPON AVAILABLE DATA THAT2
1125	1122		THE PROPOSED OPERATION WILL NOT MATERIALLY INJURE A PRIOR3
1126	1123		GEOTHERMAL OPERATION ; AND4
1127	1124		(C) SHALL REQUIRE EACH APPLICANT FOR A PERMIT CONCERNING5
1128	1125		DEEP GEOTHERMAL OPERATIONS TO PROVIDE NOTICE OF THE APPLICATION6
1129	1126		TO THE DESIGNATED INDIVIDUALS OF PRIOR GEOTHERMAL OPERATIONS7
1130	1127		REGISTERED PURSUANT TO SUBSECTION (7) OF THIS SECTION AND LOCATED8
1131	1128		WITHIN ONE-FOURTH OF A MILE OF THE PROPOSED DEEP GEOTHERMAL9
1132	1129		OPERATIONS.10
1133	1130		(c) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE11
1134	1131		REQUIRES, "MATERIAL INJURY TO A PRIOR GEOTHERMAL OPERATION"12
1135	1132		INCLUDES INJURY TO ANY ASPECT OF THE VESTED WATER RIGHTS OF A13
1136	1133		PRIOR GEOTHERMAL OPERATION, WHICH MAY INCLUDE WATER QUANTITY,14
1137	1134		PRESSURE, RATE OF FLOW, MINERAL CONTENT, OR TEMPERATURE.15
1138	1135		REGARDLESS OF WHETHER WATER QUANTITY, PRESSURE, RATE OF FLOW,16
1139	1136		MINERAL CONTENT, OR TEMPERATURE ARE DECREED, "MATERIAL INJURY17
1140	1137		TO A PRIOR GEOTHERMAL OPERATION" ALSO INCLUDES DIMINUTION OR18
1141	1138		ALTERATION OF ANY SUCH PARAMETER THAT RESULTS IN AN ADVERSE19
1142	1139		EFFECT TO A PRIOR GEOTHERMAL OPERATION .20
1143	1140		(2) (c) T
1144	1141		HE COMMISSION MAY ENFORCE RULES ADOPTED PURSUANT21
1145	1142		TO THIS SUBSECTION (2) IN ACCORDANCE WITH SECTION 34-60-121.22
1146	1143		(3) Where the maintenance of underground pressures, the23
1147	1144		prevention of subsidence, or the disposal of brines is necessary,24
1148	1145		reinjection of geothermal fluid
1149	1146		OR WATER may be required by the state25
1150	1147		engineer or the commission.26
1151	1148		(6) (a) On and after July 1, 2023,
1152	1149		Except as set forth in subsection27
1153	1150		1165
1154	1151		-34- (6)(b)(II) of this section, the commission is responsible for administering1
1155	1152		and enforcing any permits issued by the state engineer pursuant to this2
1156	1153		section that cover deep geothermal operations.3
1157	1154		(b) The powers, duties, functions, and obligations concerning4
1158	1155		permits issued by the state engineer pursuant to this section that cover5
1159	1156		deep geothermal operations are transferred, effective July 1, 2023, to the6
1160	1157		commission. The state engineer retains OR THE BOARD OF EXAMINERS OF7
1161	1158		WATER WELL AND GROUND HEAT EXCHANGER CONTRACTORS MAY8
1162	1159		EXERCISE any powers, duties, functions, and obligations POWER, DUTY,9
1163	1160		FUNCTION, OR OBLIGATION necessary to issue, administer, and enforce any10
1164	1161		permits
1165	1162		OR LICENSES that cover:11
1166	1163		(I) Shallow geothermal operations; and12
1167	1164		(II) The use of geothermal fluid in deep geothermal operations13
1168	1165		pursuant to section 37-90.5-107, except for nonconsumptive
1169	1166		DEEP14
1170	1167		geothermal operations
1171	1168		SUBJECT TO SECTION 37-90-137 (7.5)(a).15
1172	1169		(c) The rules of the state engineer pertaining to the powers, duties,
1173	1170		16
1174	1171		functions, and obligations transferred to the commission pursuant to17
1175	1172		subsection (6)(b) of this section continue in effect and apply to the18
1176	1173		commission until the rules are replaced by rules adopted by the19
1177	1174		commission pursuant to subsection (1)(b)(I) of this section.20
1178	1175		(d) The commission and the state engineer shall enter into21
1179	1176		memoranda of understanding, interagency agreements, or both, as22
1180	1177		appropriate, to provide for the timely transfer of the powers, duties,23
1181	1178		functions, and obligations transferred to the commission pursuant to24
1182	1179		subsection (6)(b) of this section.25
1183	1180		(7) (a) AN OWNER OR OPERATOR OF A PRIOR GEOTHERMAL26
1184	1181		OPERATION, OR A GOVERNMENT ENTITY WITH AN INTEREST IN THE PUBLIC'S27
1185	1182		1165
1186	1183		-35- ENJOYMENT OF A NONCOMMERCIAL GEOTHERMAL HOT SPRING , SHALL1
1187	1184		REGISTER WITH THE STATE ENGINEER:2
1188	1185		(I) THE LOCATION OF THE PRIOR GEOTHERMAL OPERATION ; AND3
1189	1186		(II) DESIGNATED INDIVIDUALS TO RECEIVE ELECTRONIC MAIL4
1190	1187		NOTIFICATIONS FROM THE STATE ENGINEER AND THE COMMISSION AS5
1191	1188		DESCRIBED IN SECTION 37-90-137 (2) AND SUBSECTION (1)(b)(III)(C) OF6
1192	1189		THIS SECTION.7
1193	1190		(b) THE STATE ENGINEER SHALL ADD THE DESIGNATED8
1194	1191		INDIVIDUALS TO THE TRIBUTARY GEOTHERMAL NOTIFICATION LIST9
1195	1192		DESCRIBED IN SUBSECTION (1)(a)(IV) OF THIS SECTION FOR THE WATER10
1196	1193		DIVISION IN WHICH THE PRIOR GEOTHERMAL OPERATION IS LOCATED .11
1197	1194		SECTION 15. In Colorado Revised Statutes, 37-90.5-107,12
1198	1195		amend (1)(a) and (4); and repeal (3)(b) and (3)(d) as follows:13
1199	1196		37-90.5-107. Permits for the use of geothermal resources -14
1200	1197		rules. (1) (a) After receipt of the necessary application, the state engineer15
1201	1198		shall issue a use permit to use distributed geothermal resources consistent16
1202	1199		with the requirements described in section 37-90-137 SECTION 37-90-107,17
1203	1200		37-90-108,
1204	1201		37-90-109,
1205	1202		37-90-137, OR 37-90.5-106.18
1206	1203		(3) (b) The requirement to issue a use permit pursuant to19
1207	1204		subsection (1)(b) of this section does not apply to operations that are20
1208	1205		solely nonconsumptive geothermal operations using allocated geothermal21
1209	1206		resources.22
1210	1207		(d) The use permit issued pursuant to subsection (1) of this section23
1211	1208		may allow for nonconsumptive secondary uses of geothermal fluid,24
1212	1209		including the recovery of geothermal by-products, and may allow for25
1213	1210		consumptive secondary uses of geothermal fluid, including sale, which do26
1214	1211		not impair valid, prior water rights.27
1215	1212		1165
1216	1213		-36- (4) Notwithstanding any provision of this section to the contrary,1
1217	1214		section 37-90-137 (4) applies to any consumptive BENEFICIAL use of2
1218	1215		allocated geothermal resources,
1219	1216		EXCEPT FOR THOSE OPERATIONS3
1220	1217		DESCRIBED IN SECTION 37-90-137 (7.5)(a).4
1221	1218		SECTION 16.
1222	1219		In Colorado Revised Statutes, 37-90.5-111,5
1223	1220		amend (1)(b) as follows:6
1224	1221		37-90.5-111. Coordination between the commission and the7
1225	1222		state engineer. (1) When an operations permit is issued by the8
1226	1223		commission pursuant to section 37-90.5-106 (1)(b)(II) and a use permit9
1227	1224		is issued by the state engineer pursuant to section 37-90.5-107 (1), the10
1228	1225		commission and the state engineer shall coordinate to:11
1229	1226		(b) Determine whether an accounting for the use and reinjection12
1230	1227		of geothermal fluid
1231	1228		OR WATER pursuant to the applicable permit may be13
1232	1229		submitted to only the commission, or
1233	1230		only TO the state engineer, OR TO14
1234	1231		BOTH.15
1235	1232		SECTION 17. In Colorado Revised Statutes, amend 37-91-10116
1236	1233		as follows:17
1237	1234		37-91-101. Legislative declaration. (1) The general assembly18
1238	1235		hereby finds, determines, and declares that:19
1239	1236		(a) It has been established by Scientific evidence HAS20
1240	1237		ESTABLISHED that improperly constructed wells, improperly abandoned21
1241	1238		wells,
1242	1239		IMPROPERLY CONSTRUCTED OR ABANDONED GROUND HEAT22
1243	1240		EXCHANGERS, and improperly installed pumping equipment can adversely23
1244	1241		affect groundwater resources and the public health, safety, and welfare;24
1245	1242		and25
1246	1243		(b) Therefore, the proper location, construction, repair, and26
1247	1244		abandonment of wells;
1248	1245		THE PROPER LOCATION, CONSTRUCTION, REPAIR,27
1249	1246		1165
1250	1247		-37- AND ABANDONMENT OF GROUND HEAT EXCHANGERS ; the proper1
1251	1248		installation and repair of pumping equipment; the licensing and regulation2
1252	1249		of persons engaging in the business of contracting either for the3
1253	1250		construction of wells,
1254	1251		THE CONSTRUCTION OF GROUND HEAT4
1255	1252		EXCHANGERS, or for
1256	1253		the installation of pumping equipment; and the5
1257	1254		periodic inspection of well construction,
1258	1255		GROUND HEAT EXCHANGER6
1259	1256		CONSTRUCTION, and pump installation are essential for the protection of7
1260	1257		the public health,
1261	1258		SAFETY, AND WELFARE and the preservation of8
1262	1259		groundwater resources.9
1263	1260		SECTION 18.
1264	1261		In Colorado Revised Statutes, 37-91-102, amend10
1265	1262		(3), (10), (10.5), (14), (15), (15.5), (16)(b)(I)(B), (16)(b)(I)(C),11
1266	1263		(16)(b)(II), and (17); and add (4.1), (6.5), (6.7), (7.5), and (16)(b)(I)(D)12
1267	1264		as follows:13
1268	1265		37-91-102. Definitions. As used in this article 91, unless the14
1269	1266		context otherwise requires:15
1270	1267		(3) "Board" means the state board of examiners of water well16
1271	1268		construction and pump installation AND GROUND HEAT EXCHANGER17
1272	1269		contractors created by IN section 37-91-103.18
1273	1270		(4.1) (a) "C
1274	1271		ONSTRUCTION OR INSTALLATION OF A GROUND HEAT19
1275	1272		EXCHANGER" MEANS ANY ACT UNDERTAKEN AT A GROUND HEAT20
1276	1273		EXCHANGER SITE FOR THE ESTABLISHMENT OR MODIFICATION OF A21
1277	1274		GROUND HEAT EXCHANGER .22
1278	1275		(b) "C
1279	1276		ONSTRUCTION OR INSTALLATION OF A GROUND HEAT23
1280	1277		EXCHANGER" INCLUDES THE LOCATING OF A GROUND HEAT EXCHANGER24
1281	1278		AND THE EXCAVATING OR FRACTURING NECESSARY TO INSTALL A GROUND25
1282	1279		HEAT EXCHANGER.26
1283	1280		(c) "C
1284	1281		ONSTRUCTION OR INSTALLATION OF A GROUND HEAT27
1285	1282		1165
1286	1283		-38- EXCHANGER" DOES NOT INCLUDE SURVEYING , SITE PREPARATION, SITE1
1287	1284		MODIFICATION, OR OTHER PREPARATORY ACTS .2
1288	1285		(6.5) "G
1289	1286		ROUND HEAT EXCHANGER " MEANS A CONTINUOUS ,3
1290	1287		SEALED, SUBSURFACE HEAT EXCHANGER CONSISTING OF A CLOSED LOOP4
1291	1288		THROUGH WHICH A HEAT-TRANSFER FLUID PASSES TO AND RETURNS FROM5
1292	1289		A HEAT PUMP OR MANIFOLD . A GROUND HEAT EXC HANGER MAY BE6
1293	1290		VERTICALLY OR HORIZONTALLY CONFIGURED OR SUBMERGED IN SURFACE7
1294	1291		WATER.8
1295	1292		(6.7) "G
1296	1293		ROUND HEAT EXCHANGER CONTRACTOR " MEANS AN9
1297	1294		INDIVIDUAL LICENSED PURSUANT TO THIS ARTICLE 91 WHO IS RESPONSIBLE10
1298	1295		FOR THE DRILLING, CONSTRUCTION, GROUTING, REPAIR, TESTING, OR11
1299	1296		ABANDONMENT OF A GROUND HEAT EXC HANGER , EITHER BY CONTRACT OR12
1300	1297		FOR HIRE, FOR ANY CONSIDERATION WHATSOEVER .13
1301	1298		(7.5) "H
1302	1299		EAT-TRANSFER FLUID" MEANS A FLUID HEAT-TRANSFER14
1303	1300		MEDIUM TO CONVEY THERMAL ENERGY TO AND FROM THE THERMAL15
1304	1301		SOURCE OR SINK.16
1305	1302		(10) "License" means the document issued by the board to
1306	1303		A17
1307	1304		qualified persons making application therefor,
1308	1305		APPLICANT pursuant to18
1309	1306		section 37-91-105, authorizing such persons WHICH DOCUMENT19
1310	1307		AUTHORIZES THE APPLICANT to engage in one or more methods of well20
1311	1308		construction,
1312	1309		GROUND HEAT EXCHANGER CONSTRUCTION , or pump21
1313	1310		installation or any combination of such methods.22
1314	1311		(10.5) "Monitoring and observation well" includes any excavation23
1315	1312		that is drilled, cored, bored, washed, fractured, driven, dug, jetted, or24
1316	1313		otherwise constructed when the intended use of such
1317	1314		THE excavation is25
1318	1315		for locating such A well, pumping equipment or aquifer testing,26
1319	1316		monitoring groundwater,
1320	1317		GROUNDWATER REMEDIATION , or collection of27
1321	1318		1165
1322	1319		-39- water quality samples.1
1323	1320		(14) "Pump installation contractor" means any person AN2
1324	1321		INDIVIDUAL licensed to install, remove, modify, or repair pumping3
1325	1322		equipment for compensation.4
1326	1323		(15) "Repair" means:5
1327	1324		(a) Any change, replacement, or other alteration of any well or6
1328	1325		pumping equipment which THAT requires a breaking or opening of the7
1329	1326		well seal or any waterlines up to and including the pressure tank and any8
1330	1327		coupling appurtenant thereto TO THE PRESSURE TANK; OR9
1331	1328		(b) A
1332	1329		NY CHANGE, REPLACEMENT, OR OTHER ALTERATION OF A10
1333	1330		GROUND HEAT EXCHANGER THAT REQUIRES EXC AVATION OF ANY PORTION11
1334	1331		OF THE GROUND HEAT EXCHANGER TO REPAIR OR REPLACE COMPONENTS12
1335	1332		OF SURFACE CASING, PIPING OR GROUT WITHIN THE BOREFIELD, OR PIPING13
1336	1333		BETWEEN THE BOREFIELD AND THE MANIFOLD .14
1337	1334		(15.5) "Supervision" means personal and continuous on-the-site
1338	1335		15
1339	1336		ON-SITE direction by a licensed well construction contractor, LICENSED16
1340	1337		GROUND HEAT EXCHANGER CONTRACTOR , or licensed pump installation17
1341	1338		contractor, unless the licensed contractor has applied for and received18
1342	1339		from the board an exemption from continuous on-the-site ON-SITE19
1343	1340		direction for a specific task.20
1344	1341		(16) (b) (I) "Well" does not include:21
1345	1342		(B) An excavation made for the purpose of obtaining or22
1346	1343		prospecting for minerals or those wells subject to the jurisdiction of the23
1347	1344		energy and carbon management commission, as provided in article 60 of24
1348	1345		title 34 or
1349	1346		IN ARTICLE 90.5 OF THIS TITLE 37;25
1350	1347		(C) Wells
1351	1348		A WELL subject to the jurisdiction of the office of mined26
1352	1349		land reclamation DIVISION OF RECLAMATION, MINING, AND SAFETY, as27
1353	1350		1165
1354	1351		-40- provided in article 33 ARTICLES 32 TO 34 of title 34; OR1
1355	1352		(D) R
1356	1353		ECHARGE BASINS OR INFILTRATION BASINS THAT ARE2
1357	1354		CONSTRUCTED IN SUCH A MANNER THAT THE INTENT OF THEIR DESIGN IS3
1358	1355		TO REMAIN ABOVE THE GROUNDWATER LEVEL .4
1359	1356		(II) "Well" does not include a naturally flowing spring or springs5
1360	1357		where the natural spring discharge is captured or concentrated by6
1361	1358		installation of a near-surface structure or device less then
1362	1359		THAN ten feet7
1363	1360		in depth located at or within fifty feet of the spring or springs' natural8
1364	1361		discharge point and the water is conveyed directly by gravity flow or into9
1365	1362		a separate sump or storage, if SO LONG AS the owner obtains a water right10
1366	1363		for such THE structure or device as a spring pursuant to article 92 of this11
1367	1364		title TITLE 37.12
1368	1365		(17) "Well construction contractor" means any person AN13
1369	1366		INDIVIDUAL licensed pursuant to this article ARTICLE 91 and responsible14
1370	1367		for the construction, test-pumping, or development of wells, either by15
1371	1368		contract or for hire, or for any consideration whatsoever.16
1372	1369		SECTION 19. In Colorado Revised Statutes, 37-91-103, amend17
1373	1370		(1) and (3) as follows:18
1374	1371		37-91-103. State board of examiners of water well and ground19
1375	1372		heat exchanger contractors. (1) (a) There is created, in the division of20
1376	1373		water resources in the department of natural resources, a THE state board21
1377	1374		of examiners of water well construction and pump installation AND22
1378	1375		GROUND HEAT EXCHANGER contractors consisting of five members and23
1379	1376		comprised of IS CREATED IN THE DIVISION OF WATER RESOURCES WITHIN24
1380	1377		THE DEPARTMENT OF NATURAL RESOURCES . THE BOARD INCLUDES the25
1381	1378		following persons SIX INDIVIDUALS:26
1382	1379		(I) The state engineer or a representative designated by the state27
1383	1380		1165
1384	1381		-41- engineer ENGINEER'S DESIGNEE;1
1385	1382		(II) A representative of the department of public health and2
1386	1383		environment designated by the executive director of the department; and3
1387	1384		(III) three FOUR members appointed by the governor, two of4
1388	1385		whom must SHALL be well construction contractors or pump installation5
1389	1386		contractors, each with a minimum of ten years' experience in the well6
1390	1387		construction or pump installation business preceding the individual's7
1391	1388		appointment, and one of whom must SHALL be an engineer or geologist8
1392	1389		with a minimum of ten years' experience in water supply and well9
1393	1390		construction preceding the individual's appointment, and
1394	1391		ONE OF WHOM10
1395	1392		SHALL BE AN INDIVIDUAL WITH A MINIMUM OF TEN YEARS ' EXPERIENCE11
1396	1393		RELATING TO GROUND HEAT EXCHANGERS PRECEDING THE INDIVIDUAL 'S12
1397	1394		APPOINTMENT.13
1398	1395		(b) The state board of examiners of water well construction and
1399	1396		14
1400	1397		pump installation AND GROUND HEAT EXCHANGER contractors is a type15
1401	1398		1 entity, as defined in section 24-1-105.16
1402	1399		(3) The board shall meet at least once every three months and at17
1403	1400		such other times as it deems necessary or advisable. Special Board18
1404	1401		meetings may be called at any time on order of the chairman CHAIR or19
1405	1402		vice-chairman VICE-CHAIR or any three FOUR members of the board. The20
1406	1403		board shall determine the time and place of all meetings, but at least one21
1407	1404		meeting every three months shall be held in Denver. Three FOUR22
1408	1405		members of the board shall constitute a quorum, and the affirmative vote23
1409	1406		of three AT LEAST FOUR members shall be IS required to pass any action24
1410	1407		or motion of the board. The board may adopt bylaws to govern its own25
1411	1408		procedure.26
1412	1409		SECTION 20. In Colorado Revised Statutes, 37-91-104, amend27
1413	1410		1165
1414	1411		-42- (1)(b), (1)(i), and (1)(l) as follows:1
1415	1412		37-91-104. Duties of the board. (1) The board shall:2
1416	1413		(b) Have general supervision and authority over the construction3
1417	1414		and abandonment of wells,
1418	1415		CONSTRUCTION AND AB ANDONMENT OF4
1419	1416		GROUND HEAT EXCHANGERS , and the installation of pumping equipment,5
1420	1417		as provided by sections 37-91-109 and 37-91-110;6
1421	1418		(i) Disseminate information to pump installation contractors,7
1422	1419		GROUND HEAT EXCHANGER CONTRACTORS , and well construction8
1423	1420		contractors in order to protect and preserve the groundwater resources of9
1424	1421		the state;10
1425	1422		(l) (I) Assure protection of groundwater resources and the public11
1426	1423		health by ordering the nondestructive investigation, abandonment, repair,12
1427	1424		drilling, redrilling, casing, recasing, deepening, or excavation of a well
1428	1425		OR13
1429	1426		GROUND HEAT EXCHANGER where it
1430	1427		THE BOARD finds such action to be14
1431	1428		AN ORDER necessary to correct violations of this article ARTICLE 91 or15
1432	1429		rules promulgated ADOPTED by the board with respect PURSUANT to this16
1433	1430		article ARTICLE 91 or to protect groundwater resources and the public17
1434	1431		health.18
1435	1432		(II) A
1436	1433		N existing wells
1437	1434		WELL OR GROUND HEAT EXC HANGER that19
1438	1435		were WAS constructed in compliance with the laws and regulations in20
1439	1436		effect at the time of their ITS construction shall IS not be required to be21
1440	1437		repaired, redrilled, or otherwise modified to meet the current standards for22
1441	1438		well construction
1442	1439		OR GROUND HEAT EXCHANGER CONSTRUCTION23
1443	1440		contained in this article
1444	1441		ARTICLE 91 or the IN rules adopted by the board24
1445	1442		PURSUANT TO THIS ARTICLE 91. THE BOARD MAY ORDER any such wells25
1446	1443		WELL OR GROUND HEAT EXCHANGER that present PRESENTS an imminent26
1447	1444		threat to public health or
1448	1445		AN IMMINENT THREAT OF groundwater27
1449	1446		1165
1450	1447		-43- contamination may be ordered to be repaired or abandoned. The ANY1
1451	1448		remedial action required by the board for such wells shall A WELL OR2
1452	1449		GROUND HEAT EXCHANGER MUST be the minimum repair necessary to3
1453	1450		remove the threat to public health or of groundwater pollution. An order4
1454	1451		to abandon a well that is issued under this article ARTICLE 91 is not a5
1455	1452		determination of intent to abandon any water right associated with the6
1456	1453		well.7
1457	1454		SECTION 21. In Colorado Revised Statutes, 37-91-105, amend8
1458	1455		(1), (2)(d), (2.5), (5), and (7); and add (8) as follows:9
1459	1456		37-91-105. Licensing - registration of rigs. (1) Every person,10
1460	1457		Before engaging in the business of contracting either for the construction11
1461	1458		of wells A WELL, THE INSTALLATION OF A GROUND HEAT EXCHANGER , or12
1462	1459		for the installation of pumping equipment, AN INDIVIDUAL shall obtain a13
1463	1460		license for one or more methods of well construction,
1464	1461		GROUND HEAT14
1465	1462		EXCHANGER INSTALLATION , or pump installation from the board and shall15
1466	1463		secure a registration from the board for each well-drilling,
1467	1464		GROUND HEAT16
1468	1465		EXCHANGER, or pump-installing rig to be operated or leased by him or his
1469	1466		17
1470	1467		THE INDIVIDUAL OR THE INDIVIDUAL'S employee.18
1471	1468		(2) The board shall issue a license to each applicant who files an19
1472	1469		application upon a form and in such manner as the board prescribes,20
1473	1470		accompanied by such fees and bond as required by section 37-91-107, and21
1474	1471		who furnishes evidence satisfactory to the board that the applicant:22
1475	1472		(d) Has had not less than two years' experience in the type of well23
1476	1473		construction work,
1477	1474		GROUND HEAT EXCHANGER WORK , or pump24
1478	1475		installation work for which the applicant is initially applying for a license;25
1479	1476		however:26
1480	1477		(I) Once a person
1481	1478		AN INDIVIDUAL WHO is licensed in one or more27
1482	1479		1165
1483	1480		-44- methods of well construction the person is eligible without further1
1484	1481		experience to take an examination to obtain a license for a different2
1485	1482		method of well construction;3
1486	1483		(II) Once a person AN INDIVIDUAL WHO is licensed for installing4
1487	1484		one or more types of pumps the person is eligible without further5
1488	1485		experience to take an examination to obtain a license for a different type6
1489	1486		of pump installation; and7
1490	1487		(III) A
1491	1488		N INDIVIDUAL'S education in an accredited program8
1492	1489		approved by the board may substitute for well construction,
1493	1490		GROUND9
1494	1491		HEAT EXCHANGER INSTALLATION , or pump installation experience upon10
1495	1492		application to and acceptance by the board;
1496	1493		AND11
1497	1494		(IV) A
1498	1495		N INDIVIDUAL'S POSSESSION OF A LICENSE FOR WELL12
1499	1496		CONSTRUCTION MAY SUBSTITUTE FOR GROUND HEAT EXCHANGER13
1500	1497		INSTALLATION EXPERIENCE UPON APPLICATION TO AND ACCEPTANCE BY14
1501	1498		THE BOARD.15
1502	1499		(2.5) The board shall issue a special license for the use of special16
1503	1500		equipment or limited procedures in well construction,
1504	1501		GROUND HEAT17
1505	1502		EXCHANGER INSTALLATION , or pump installation to each applicant who18
1506	1503		files an application upon a form and in such manner as the board19
1507	1504		prescribes, accompanied by such fees and bond as are required by section20
1508	1505		37-91-107, and who furnishes evidence satisfactory to the board that he
1509	1506		21
1510	1507		THE APPLICANT meets the requirements established in subsection (2) of22
1511	1508		this section; except that a special licensee shall IS not be eligible to take23
1512	1509		an examination to obtain a license for a different method of well24
1513	1510		construction,
1514	1511		GROUND HEAT EXCHANGER INSTALLATION , or pump25
1515	1512		installation unless said
1516	1513		THE licensee has at least two years of experience26
1517	1514		in the method of well construction,
1518	1515		GROUND HEAT EXCHANGER27
1519	1516		1165
1520	1517		-45- INSTALLATION, or pump installation for which the additional license is1
1521	1518		sought.2
1522	1519		(5) The examination shall MUST consist of an oral and written3
1523	1520		examination and shall fairly test the applicant's knowledge and4
1524	1521		application thereof in OF the following subjects, RESPECTIVELY,5
1525	1522		DEPENDING ON THE LICENSE TYPE:6
1526	1523		(a) F
1527	1524		OR A WELL CONSTRUCTION CONTRACTOR LICENSE : Basics of7
1528	1525		drilling methods, specific drilling methods, basics of pump installation
1529	1526		8
1530	1527		methods, specific pump installation methods, and basics of well9
1531	1528		construction and his THE APPLICANT'S knowledge and application of state10
1532	1529		laws and local ordinances concerning the construction of wells or AND11
1533	1530		RULES ADOPTED IN CONNECTION WITH SUCH LAWS AND ORDINANCES ;12
1534	1531		(b) F
1535	1532		OR A PUMP INSTALLATION CONTRACTOR LICENSE : BASICS OF13
1536	1533		PUMP INSTALLATION METHODS , SPECIFIC PUMP INSTALLATION METHODS14
1537	1534		AND ASSOCIATED PUMPING EQUIPMENT , AND THE APPLICANT 'S15
1538	1535		KNOWLEDGE AND APPLICATION OF STATE LAWS AND LOCAL ORDINANCES16
1539	1536		CONCERNING the installation of pumping equipment or both,
1540	1537		and rules17
1541	1538		promulgated ADOPTED in connection therewith WITH SUCH LAWS AND18
1542	1539		ORDINANCES; AND19
1543	1540		(c) F
1544	1541		OR A GROUND HEAT EXCHANGER CONTRACTOR LICENSE :20
1545	1542		B
1546	1543		ASICS OF GROUND HEAT EXCHANGER INSTALLATION , SPECIFIC METHODS21
1547	1544		RELATED TO GROUND HEAT EXCHANGER INSTALLATION , AND THE22
1548	1545		APPLICANT'S KNOWLEDGE AND APPLICATION OF STATE LAWS AND LOCAL23
1549	1546		ORDINANCES CONCERNING THE INSTALLATION OF GROUND HEAT24
1550	1547		EXCHANGERS AND RULES ADOPTED IN CONNECTION WITH SUCH LAWS AND25
1551	1548		ORDINANCES.26
1552	1549		(7) Each licensee shall complete eight hours of continuing27
1553	1550		1165
1554	1551		-46- education training as approved by the board every year in order to1
1555	1552		maintain or renew a license.2
1556	1553		(8) (a) U
1557	1554		NTIL THE GOVERNOR APPOINTS TO THE BOARD A MEMBER3
1558	1555		WITH TEN OR MORE YEARS OF GROUND HEAT EXCHANGER EXPERIENCE ,4
1559	1556		AND UNTIL THE BOARD ADOPTS RULES CONCERNING THE LICENSING OF5
1560	1557		GROUND HEAT EXCHANGER CONTRACTORS , AN INDIVIDUAL OPERATING6
1561	1558		PURSUANT TO A PERMIT ISSUED FROM THE STATE ENGINEER MAY INSTALL7
1562	1559		GROUND HEAT EXCHANGERS IN ACCORDANCE WITH RULES ADOPTED BY8
1563	1560		THE STATE ENGINEER PURSUANT TO SECTION 37-90.5-106.9
1564	1561		(b) A
1565	1562		FTER THE TIME FRAME DESCRIBED IN SUBSECTION (8)(a) OF10
1566	1563		THIS SECTION, AN INDIVIDUAL OPERATING UNDER A PERMIT ISSUED BY THE11
1567	1564		STATE ENGINEER WHO APPLIES FOR A GROUND HEAT EXCHANGER12
1568	1565		CONTRACTOR LICENSE IS REQUIRED TO PASS AN ORAL EXAMINATION13
1569	1566		PURSUANT TO SUBSECTION (2)(e) OF THIS SECTION BUT IS NOT REQUIRED14
1570	1567		TO:15
1571	1568		(I) D
1572	1569		EMONSTRATE THEIR EXPERIENCE PURSUANT TO SUBSECTION16
1573	1570		(2)(d)
1574	1571		OF THIS SECTION; OR17
1575	1572		(II) P
1576	1573		ASS A WRITTEN EXAMINATION PURSUANT TO SUBSECTION18
1577	1574		(2)(e)
1578	1575		OF THIS SECTION.19
1579	1576		SECTION 22.
1580	1577		In Colorado Revised Statutes, 37-91-106, amend20
1581	1578		(2) as follows:21
1582	1579		37-91-106. License - exemptions - rules. (2) A license shall IS22
1583	1580		not be required of any person INDIVIDUAL who performs labor or services23
1584	1581		if he THE INDIVIDUAL is directly employed by, or under the supervision of,24
1585	1582		a licensed well construction contractor,
1586	1583		LICENSED GROUND HEAT25
1587	1584		EXCHANGER CONTRACTOR , or LICENSED pump installation contractor.26
1588	1585		SECTION 23.
1589	1586		In Colorado Revised Statutes, 37-91-107, amend27
1590	1587		1165
1591	1588		-47- (2), (3), (4), (4.5), (5), and (6) as follows:1
1592	1589		37-91-107. Fees and bonds - license renewal - continuing2
1593	1590		education. (2) (a) The board shall charge REQUIRE an application fee TO3
1594	1591		BE PAID IN THE AMOUNT of twenty dollars. to THE PAYMENT OF THE FEE4
1595	1592		MUST accompany each application from a resident of the state. of5
1596	1593		Colorado and THE BOARD SHALL ALSO REQUIRE AN APPLICANT TO PAY a6
1597	1594		further fee IN THE AMOUNT of fifty dollars upon THE APPLICANT'S7
1598	1595		successful completion of
1599	1596		THE examination AND before issuance of
1600	1597		THE8
1601	1598		BOARD ISSUES a license.9
1602	1599		(b) In addition
1603	1600		TO PAYING A FEE PURSUANT TO SUBSECTION (2)(a)10
1604	1601		OF THIS SECTION, each successful resident applicant shall file and11
1605	1602		maintain with the board evidence of financial responsibility in the form12
1606	1603		of a savings account, deposit, or certificate of deposit in the amount of ten13
1607	1604		thousand dollars, meeting the requirements of section 11-35-101, C.R.S.,
1608	1605		14
1609	1606		or an irrevocable letter of credit for the amount of ten thousand dollars,15
1610	1607		meeting the requirements of section 11-35-101.5, C.R.S., or shall file and16
1611	1608		maintain with the board an approved compliance bond with a corporate17
1612	1609		surety authorized to do business in the state, of Colorado, in the amount18
1613	1610		of ten thousand dollars, for the use and benefit of any person or the state19
1614	1611		of Colorado suffering loss or damage, conditioned that such THE licensee20
1615	1612		will comply with the laws of the state of Colorado in engaging in the21
1616	1613		business for which he THE LICENSEE receives a license and the rules of the22
1617	1614		board promulgated ADOPTED in the regulation of such business.23
1618	1615		(3) (a) The board shall charge an application fee
1619	1616		IN THE AMOUNT24
1620	1617		of fifty dollars, to
1621	1618		THE PAYMENT OF WHICH APPLICATION FEE MUST25
1622	1619		accompany each application from a nonresident of the state. of Colorado26
1623	1620		and THE BOARD SHALL ALSO CHARGE a further nonresident fee of four27
1624	1621		1165
1625	1622		-48- hundred dollars, WHICH A NONRESIDENT SHALL PAY upon successful1
1626	1623		completion of
1627	1624		THE examination AND before THE issuance of a license.2
1628	1625		(b) In addition
1629	1626		TO PAYING ANY FEES REQUIRED BY SUBSECTION3
1630	1627		(3)(a)
1631	1628		OF THIS SECTION, each successful nonresident applicant shall file4
1632	1629		and maintain with the board evidence of financial responsibility in the5
1633	1630		form of a savings account, deposit, or certificate of deposit in the amount6
1634	1631		of twenty thousand dollars, meeting the requirements of section7
1635	1632		11-35-101, C.R.S.,
1636	1633		or shall file and maintain with the board an approved8
1637	1634		compliance bond in the amount of twenty thousand dollars with a9
1638	1635		corporate surety authorized to do business in the state of Colorado for the10
1639	1636		use and benefit of any person or the state of Colorado suffering loss or11
1640	1637		damage, conditioned that such THE licensee will SHALL comply with the12
1641	1638		laws of the state in engaging in the business for which he THE LICENSEE13
1642	1639		receives a license and the rules of ADOPTED BY the board promulgated in14
1643	1640		compliance therewith WITH SUCH LAWS.15
1644	1641		(4) (a) (I) Every EACH licensed well construction contractor,16
1645	1642		LICENSED GROUND HEAT EXCHANGER CONTRACTOR , and licensed pump17
1646	1643		installation contractor in this state shall:18
1647	1644		(A) Pay to the board during the month of January of each year,19
1648	1645		beginning in the year immediately subsequent to his or her FOLLOWING20
1649	1646		THE LICENSEE'S initial licensing, a renewal fee of fifty dollars; shall21
1650	1647		(B) Concurrently file and
1651	1648		THEREAFTER maintain a new bond or22
1652	1649		letter of credit if required pursuant to this section; and shall
1653	1650		23
1654	1651		(C) Annually file a certificate of completion of continuing24
1655	1652		education as required pursuant to section 37-91-105 (7).25
1656	1653		(II) U
1657	1654		PON A LICENSEE'S SATISFACTION OF THE REQUIREMENTS26
1658	1655		DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS SECTION, the secretary shall27
1659	1656		1165
1660	1657		-49- thereupon issue a renewal license for one year. The license of any well1
1661	1658		construction contractor,
1662	1659		GROUND HEAT EXCHANGER CONTRACTOR , or2
1663	1660		pump installation contractor who fails to have his or her
1664	1661		THEIR license3
1665	1662		renewed during the month of January in each year shall lapse. Any4
1666	1663		LAPSES. A lapsed license may be renewed, without reexamination, within5
1667	1664		a period of one year after such lapse IT LAPSES upon payment of all fees6
1668	1665		in arrears. Licensees A LICENSEE may elect to renew their licenses7
1669	1666		LICENSE and file and maintain a bond or letter of credit for a term of up8
1670	1667		to three years, paying fifty dollars for each year the license will be in9
1671	1668		effect.10
1672	1669		(b) T
1673	1670		HE BOARD SHALL NOT SET A LICENSE RENEWAL FEE11
1674	1671		DESCRIBED IN SUBSECTION (4)(a) OF THIS SECTION OR A RIG REGISTRATION12
1675	1672		FEE DESCRIBED IN SUBSECTION (5) OF THIS SECTION IN AN AMOUNT13
1676	1673		GREATER THAN IS NECESSARY TO FURTHER THE PURPOSES OF THIS ARTICLE14
1677	1674		91.
1678	1675		THE AMOUNT MUST NOT CAUSE THE TOTAL AMOUNT OF MONEY15
1679	1676		COLLECTED UNDER THIS ARTICLE 91 TO EXCEED THE DIRECT AND INDIRECT16
1680	1677		COSTS OF THE BOARD IN ADMINISTERING THIS ARTICLE 91.17
1681	1678		(4.5) A licensee shall maintain the amount of financial18
1682	1679		responsibility required by subsections (2), (3), and (4) of this section for19
1683	1680		the life
1684	1681		DURATION of the license for which the financial responsibility is20
1685	1682		required. The license of any well construction contractor,
1686	1683		GROUND HEAT21
1687	1684		EXCHANGER CONTRACTOR , or pump installation contractor who fails to22
1688	1685		maintain such financial responsibility shall lapse
1689	1686		LAPSES. A LAPSED23
1690	1687		license that has so lapsed may be reinstated upon THE LICENSEE'S24
1691	1688		submission of current evidence of the required financial responsibility to25
1692	1689		the board and payment to the board of a one-hundred-dollar reinstatement26
1693	1690		fee
1694	1691		IN THE AMOUNT OF ONE HUNDRED DOLLARS .27
1695	1692		1165
1696	1693		-50- (5) The board shall charge an annual registration fee of ten dollars1
1697	1694		for each well drilling or RIG, GROUND HEAT EXCHANGER INSTALLATION2
1698	1695		RIG, AND pump installation rig to be operated in the state. of Colorado.3
1699	1696		(6) The board shall no later than January 7, 2007, develop4
1700	1697		MAINTAIN a continuing education program in conjunction with the5
1701	1698		Colorado water well contractors association or any analogous or6
1702	1699		successor organization.7
1703	1700		SECTION 24. In Colorado Revised Statutes, 37-91-108, amend8
1704	1701		(1) introductory portion, (1)(d), (1)(f), (1)(g), (1)(h), (3), (4), and (5) as9
1705	1702		follows:10
1706	1703		37-91-108. Denial, revocation, or suspension of license. (1) The11
1707	1704		board, by an affirmative vote of three AT LEAST FOUR of its five SIX12
1708	1705		members, may withhold, deny, revoke, or suspend any license issued or13
1709	1706		applied for in accordance with the provisions of this article THIS ARTICLE14
1710	1707		91, upon proof that the licensee or applicant:15
1711	1708		(d) Has Knowingly constructed a well, INSTALLED A GROUND16
1712	1709		HEAT EXCHANGER, or installed pumping equipment without a valid17
1713	1710		permit;18
1714	1711		(f) Has Used fraud or deception in collecting fees from persons19
1715	1712		with whom he has THE LICENSEE contracted for well construction,20
1716	1713		GROUND HEAT EXCHANGER INSTALLATION , or pump installation;21
1717	1714		(g) Has Failed to submit a well completion report or a pump22
1718	1715		installation report pursuant to the requirement therefor in REPORT23
1719	1716		REQUIRED BY the rules and regulations of the board;24
1720	1717		(h) Has Authorized a person not directly employed or directly25
1721	1718		supervised by the licensee to construct wells,
1722	1719		INSTALL GROUND HEAT26
1723	1720		EXCHANGERS, or install pumping equipment under the authority of the27
1724	1721		1165
1725	1722		-51- licensee's license; or1
1726	1723		(3) A hearing upon a complaint may be initiated only if the2
1727	1724		complaint was filed with the board within two years of AFTER the filing3
1728	1725		of the completion report for the well,
1729	1726		GROUND HEAT EXCHANGER , or4
1730	1727		pumping equipment, the construction or installation of which formed the5
1731	1728		basis of the complaint. If no completion report was filed, a hearing upon6
1732	1729		the complaint may be initiated only if the complaint was filed with the7
1733	1730		board within two years of
1734	1731		AFTER the discovery of the violation or defect8
1735	1732		that constituted the grounds for the complaint.9
1736	1733		(4) The board may order the nondestructive investigation,10
1737	1734		abandonment, repair, drilling, redrilling, casing, recasing, deepening, or11
1738	1735		excavation of a well
1739	1736		OR GROUND HEAT EXCHANGER to protect12
1740	1737		groundwater resources and the public health if the board finds such
1741	1738		THE13
1742	1739		action to be necessary to correct violations of article 90 of this title TITLE14
1743	1740		37, this article ARTICLE 91, or the rules promulgated ADOPTED by the15
1744	1741		board pursuant to this article ARTICLE 91.16
1745	1742		(5) The board may assess fines of not less than AT LEAST fifty17
1746	1743		dollars nor more than one thousand dollars for violations of article 90 of18
1747	1744		this title TITLE 37, this article ARTICLE 91, or the rules promulgated19
1748	1745		ADOPTED by the board pursuant to this article ARTICLE 91 for each such20
1749	1746		violation. Such THE fines shall be transmitted to the state treasurer, who21
1750	1747		shall credit them CREDITED to the well inspection cash fund created in22
1751	1748		section 37-80-111.5.23
1752	1749		SECTION 25. In Colorado Revised Statutes, 37-91-109, amend24
1753	1750		(1) as follows:25
1754	1751		37-91-109. Further scope of article - orders - penalties.26
1755	1752		(1) (a) In addition to the licensing of well construction contractors, and27
1756	1753		1165
1757	1754		-52- pump installation contractors as required by this article, no A well OR1
1758	1755		GROUND HEAT EXCHANGER shall NOT be located, constructed, repaired, or2
1759	1756		abandoned and no pumping equipment shall NOT be installed or repaired3
1760	1757		contrary to the provisions of this article THIS ARTICLE 91 and applicable4
1761	1758		rules of the board promulgated ADOPTED to effectuate the purposes of this5
1762	1759		article ARTICLE 91.6
1763	1760		(b) The board may by order require any A licensee, private driller,7
1764	1761		or private pump installer to remedy any such noncompliant installation,8
1765	1762		construction, or repair and may, pursuant to rules and after due notice and9
1766	1763		a hearing, impose penalties for such noncompliance.10
1767	1764		(c) The provisions of this article shall apply THIS ARTICLE 9111
1768	1765		APPLIES to:12
1769	1766		(I) Any well or any pumping equipment
1770	1767		THAT IS not otherwise13
1771	1768		subject to regulation under the laws of this state; and to
1772	1769		14
1773	1770		(II) Any distribution, observation, monitoring, or dewatering of15
1774	1771		water therefrom; but this article shall FROM ANY SUCH WELL OR PUMPING16
1775	1772		EQUIPMENT; EXCEPT THAT THIS ARTICLE 91 DOES not apply to any17
1776	1773		distribution of water beyond the point of discharge from the pressure tank18
1777	1774		or to any distribution of water beyond the point of discharge from the19
1778	1775		pumping equipment if no pressure tank or an overhead pressure tank is20
1779	1776		employed.21
1780	1777		(d) T
1781	1778		HIS ARTICLE 91 APPLIES TO ANY GROUND HEAT EXCHANGER22
1782	1779		THAT IS NOT OTHERWISE SUBJECT TO REGULATION UNDER THE LAWS OF23
1783	1780		THIS STATE; EXCEPT THAT THIS ARTICLE 91 DOES NOT APPLY TO ANY24
1784	1781		DISTRIBUTION OF HEAT -TRANSFER FLUID BEYOND THE POINT OF25
1785	1782		TRANSITION BETWEEN THE GROUND HEAT EXCHANGER PIPING OR GROUND26
1786	1783		HEAT EXCHANGER MANIFOLD AND THE DISTRIBUTION LINES FROM THE27
1787	1784		1165
1788	1785		-53- GROUND HEAT EXCHANGER MANIFOLD .1
1789	1786		SECTION 26. In Colorado Revised Statutes, 37-91-110, amend2
1790	1787		(1) introductory portion, (2), and (3); and add (1)(c) as follows:3
1791	1788		37-91-110. Basic principles and minimum standards. (1) The4
1792	1789		following basic principles, general in scope and fundamental in character,5
1793	1790		shall govern the construction, repair, or abandonment of any A well; THE6
1794	1791		INSTALLATION, REPAIR, OR ABANDONMENT OF A GROUND HEAT7
1795	1792		EXCHANGER; and the installation or repair of any pumping equipment:8
1796	1793		(c) A
1797	1794		GROUND HEAT EXCHANGER SHALL BE :9
1798	1795		(I) L
1799	1796		OCATED IN A MANNER THAT CONSIDERS THE PHYSICAL10
1800	1797		LIMITATIONS OF THE LAND AREA AND THE PROXIMITY TO OTHER ELEMENTS11
1801	1798		THAT MIGHT AFFECT THE TYPE AND CONFIGURATION OF THE GR OUND HEAT12
1802	1799		EXCHANGER; AND13
1803	1800		(II) I
1804	1801		NSTALLED OR ABANDONED IN A M ANNER THAT MAINTAINS14
1805	1802		NATURAL PROTECTION AGAINST POLLUTION OF WATER -BEARING15
1806	1803		FORMATIONS AND EXCLUDES KNOWN SOURCES OF CONTAMINATION .16
1807	1804		(2) The board shall adopt and may, from time to time, amend rules17
1808	1805		and regulations
1809	1806		reasonably necessary to insure ENSURE the proper18
1810	1807		construction or proper abandonment of wells,
1811	1808		THE PROPER INSTALLATION19
1812	1809		OR PROPER ABANDONMENT OF GROUND HEAT EXCHANGERS , and the20
1813	1810		proper installation of pumping equipment. The board has the authority to
1814	1811		21
1815	1812		MAY require the filing of information and reports relating to the22
1816	1813		construction or abandonment of wells,
1817	1814		THE INSTALLATION OR23
1818	1815		ABANDONMENT OF GROUND HEAT EXCHANGERS , and the installation of24
1819	1816		pumping equipment whenever
1820	1817		IF it may deem DEEMS such action to be25
1821	1818		necessary.26
1822	1819		(3) All wells
1823	1820		AND GROUND HEAT EXCHANGERS shall be27
1824	1821		1165
1825	1822		-54- constructed or abandoned and all pumping equipment shall be installed1
1826	1823		in compliance with this article ARTICLE 91 and with the rules and2
1827	1824		regulations promulgated ADOPTED by the board.3
1828	1825		SECTION 27. In Colorado Revised Statutes, 37-91-111, amend4
1829	1826		(1) and (3) as follows:5
1830	1827		37-91-111. Violations and penalties. (1) It is unlawful:6
1831	1828		(a) For any person AN INDIVIDUAL to represent himself THEMSELF7
1832	1829		as a well construction contractor,
1833	1830		GROUND HEAT EXCHANGER8
1834	1831		CONTRACTOR, or a pump installation contractor who
1835	1832		IF THE INDIVIDUAL9
1836	1833		is not licensed under this article ARTICLE 91 or to so represent himself10
1837	1834		after his THE INDIVIDUAL'S license has been suspended or revoked or has11
1838	1835		lapsed;12
1839	1836		(b) For any person AN INDIVIDUAL WHO IS not licensed under this13
1840	1837		article ARTICLE 91 to advertise or issue any sign, card, or other device14
1841	1838		which would indicate that he THAT INDICATES THE INDIVIDUAL is a well15
1842	1839		construction contractor,
1843	1840		GROUND HEAT EXCHANGER CONTRACTOR , or a16
1844	1841		pump installation contractor;17
1845	1842		(c) For any person
1846	1843		AN INDIVIDUAL WHO IS not licensed or whose18
1847	1844		license is suspended to construct wells unless he THE INDIVIDUAL is a19
1848	1845		private driller or directly employed by or under the supervision of a20
1849	1846		licensed well construction contractor;21
1850	1847		(d) For any person AN INDIVIDUAL WHO IS not licensed or whose22
1851	1848		license is suspended to install pumping equipment unless he THE23
1852	1849		INDIVIDUAL is a private pump installer or directly employed by or under24
1853	1850		the supervision of a licensed pump installation contractor, except as25
1854	1851		excluded pursuant to DESCRIBED IN section 37-91-106 (4); or26
1855	1852		(d.5) F
1856	1853		OR AN INDIVIDUAL WHO IS NOT LICENSED OR WHOSE27
1857	1854		1165
1858	1855		-55- LICENSE IS SUSPENDED TO INSTALL A GROUND HEAT EXCHANGER UNLESS1
1859	1856		THE INDIVIDUAL IS DIRECTLY EMPLOYED BY OR UNDER THE SUPERVISION2
1860	1857		OF A LICENSED GROUND HEAT EXC HANGER CONTRACTOR , EXCEPT AS3
1861	1858		DESCRIBED IN SECTION 37-91-105 (8); OR4
1862	1859		(e) For any person AN INDIVIDUAL to otherwise violate any of the5
1863	1860		provisions of this article THIS ARTICLE 91.6
1864	1861		(3) Any IN ADDITION TO ANY PENALTY ASSESSED PURSUANT TO7
1865	1862		SUBSECTION (2) OF THIS SECTION, A person who violates any provision of8
1866	1863		subsection (1) of this section shall also be IS subject to a civil penalty9
1867	1864		assessed by the court of not less than one hundred dollars nor more than10
1868	1865		five thousand dollars for each such violation. All civil penalties collected11
1869	1866		under this subsection (3) shall be transmitted to the state treasurer, who12
1870	1867		shall credit the same CREDITED to the well inspection cash fund created13
1871	1868		in section 37-80-111.5.14
1872	1869		SECTION 28. In Colorado Revised Statutes, 37-91-113, amend15
1873	1870		(1), (2) introductory portion, (2)(a), (3) introductory portion, (3)(a), (3)(e),16
1874	1871		and (3)(f) as follows:17
1875	1872		37-91-113. Well inspection program. (1) The state engineer18
1876	1873		shall monitor compliance with this article ARTICLE 91, including by19
1877	1874		inspecting water well construction,
1878	1875		GROUND HEAT EXCHANGER20
1879	1876		INSTALLATION, and pump installation, and THE STATE ENGINEER may21
1880	1877		employ inspectors for such
1881	1878		THIS purpose. The costs of such monitoring22
1882	1879		and inspection shall be paid from the well inspection cash fund created23
1883	1880		by IN section 37-80-111.5.24
1884	1881		(2) Inspectors shall have the following qualifications, but need not25
1885	1882		be licensed pursuant to this article ARTICLE 91:26
1886	1883		(a) Knowledge of proper well construction,
1887	1884		GROUND HEAT27
1888	1885		1165
1889	1886		-56- EXCHANGER INSTALLATION , and pump installation techniques and1
1890	1887		practices;2
1891	1888		(3) Inspectors shall annually spend a majority of their time3
1892	1889		conducting field inspections and a minority of their time preparing and4
1893	1890		evaluating reports and related office work. Duties shall include the5
1894	1891		following:6
1895	1892		(a) Well construction,
1896	1893		GROUND HEAT EXCHANGER INSTALLATION ,7
1897	1894		and pump installation inspection and observation;8
1898	1895		(e) Field inspections of existing wells,
1899	1896		GROUND HEAT9
1900	1897		EXCHANGERS, and pumps;10
1901	1898		(f) Field inspections of well,
1902	1899		GROUND HEAT EXCHANGER , and hole11
1903	1900		plugging and abandonment; and12
1904	1901		SECTION 29.
1905	1902		In Colorado Revised Statutes, 24-1-124, amend13
1906	1903		(4)(d) as follows:14
1907	1904		24-1-124. Department of natural resources - creation -15
1908	1905		divisions. (4) The division of water resources includes the following:16
1909	1906		(d) The state board of examiners of water well construction and17
1910	1907		pump installation AND GROUND HEAT EXCHANGER contractors created in18
1911	1908		article 91 of title 37 SECTION 37-91-103. The state board of examiners of19
1912	1909		water well construction and pump installation AND GROUND HEAT20
1913	1910		EXCHANGER contractors is a type 1 entity, as defined in section 24-1-105,21
1914	1911		and exercises its powers and performs its duties and functions under the22
1915	1912		department of natural resources and is allocated to the division of water23
1916	1913		resources as a section thereof OF THE DIVISION OF WATER RESOURCES .24
1917	1914		SECTION 30. In Colorado Revised Statutes, 24-33-104, amend25
1918	1915		(1)(e) introductory portion and (1)(e)(IV) as follows:26
1919	1916		24-33-104. Composition of the department. (1) The department27
1920	1917		1165
1921	1918		-57- of natural resources consists of the following commissions, divisions,1
1922	1919		boards, offices, and councils:2
1923	1920		(e) The division of water resources, the head of which shall be IS3
1924	1921		the state engineer. The division shall consist CONSISTS of the following4
1925	1922		sections:5
1926	1923		(IV) The state board of examiners of water well construction and6
1927	1924		pump installation AND GROUND HEAT EXCHANGER contractors.7
1928	1925		SECTION 31. Act subject to petition - effective date. This act8
1929	1926		takes effect at 12:01 a.m. on the day following the expiration of the9
1930	1927		ninety-day period after final adjournment of the general assembly; except10
1931	1928		that, if a referendum petition is filed pursuant to section 1 (3) of article V11
1932	1929		of the state constitution against this act or an item, section, or part of this12
1933	1930		act within such period, then the act, item, section, or part will not take13
1934	1931		effect unless approved by the people at the general election to be held in14
1935	1932		November 2026 and, in such case, will take effect on the date of the15
1936	1933		official declaration of the vote thereon by the governor.16
1937	1934		1165
1938	1935		-58-