Colorado 2025 Regular Session

Colorado Senate Bill SB137 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	First Regular Session
2	2	Seventy-fifth General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 25-0779.01 Christopher McMichael x4775
8	8	SENATE BILL 25-137
9	9	Senate Committees House Committees
10	10	Transportation & Energy
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING GREENHOUSE GAS CREDIT TRADING PROGRAM101
14	14	ELIGIBILITY FOR WATER QUALITY GREEN INFRASTRUCTURE102
15	15	PROJECTS THAT CREATE GREENHOUSE GAS CREDITS .103
16	16	Bill Summary
17	17	(Note: This summary applies to this bill as introduced and does
18	18	not reflect any amendments that may be subsequently adopted. If this bill
19	19	passes third reading in the house of introduction, a bill summary that
20	20	applies to the reengrossed version of this bill will be available at
21	21	http://leg.colorado.gov
22	22	.)
23	23	The bill authorizes the owner or operator of a water quality green
24	24	infrastructure project (project) to sell or trade any greenhouse gas credits
25	25	(GHG credit) created by the project in the GHG credit trading program
26	26	(trading program) that is established by the air quality control commission
27	27	(AQCC) by rule.
28	28	SENATE SPONSORSHIP
29	29	Simpson,
30	30	HOUSE SPONSORSHIP
31	31	(None),
32	32	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
33	33	Capital letters or bold & italic numbers indicate new material to be added to existing law.
34	34	Dashes through the words or numbers indicate deletions from existing law. The owner or operator that is conducting a project shall pay an
35	35	independent third-party auditor to certify the GHG credits created by the
36	36	project in order to sell or transfer those GHG credits in the trading
37	37	program.
38	38	The division of administration in the department of public health
39	39	and environment (division) shall monitor the sale and transfer of the GHG
40	40	credits created from a project in the trading program and permit owners
41	41	and operators of facilities that are regulated by the AQCC and the
42	42	division and participating in the trading program to purchase the GHG
43	43	credits in order to reach certain greenhouse gas compliance targets.
44	44	Be it enacted by the General Assembly of the State of Colorado:1
45	45	SECTION 1. In Colorado Revised Statutes, 25-7-105, amend (1)2
46	46	introductory portion, (1)(f)(I)(A), (1)(f)(I)(C), (1)(f)(II) introductory3
47	47	portion, (1)(f)(III) introductory portion, and (1)(f)(III)(B); and add4
48	48	(1)(f)(I)(A.5), (1)(f)(I)(D), and (1)(f)(IV) as follows:5
49	49	25-7-105. Duties of commission - technical secretary - rules -6
50	50	report - legislative declaration - definitions - repeal. (1) Except as7
51	51	provided in sections 25-7-130 and 25-7-131, the commission shall8
52	52	promulgate
53	53	ADOPT rules that are consistent with the legislative declaration9
54	54	set forth in section 25-7-102 and necessary for the proper implementation10
55	55	and administration of this article 7, including:11
56	56	(f) (I) Definitions. The definitions in subsection (1)(e)(XI) of this12
57	57	section apply to this subsection (1)(f). As used in this subsection (1)(f),13
58	58	unless the context requires otherwise:14
59	59	(A) "GHG credit" means a tradeable compliance instrument in a15
60	60	physical or electronic format, the use of which is authorized pursuant to16
61	61	a regulatory program adopted by the commission that represents the17
62	62	reduction of one metric ton of carbon dioxide equivalent of greenhouse18
63	63	gas by a regulated source
64	64	OR BY A WATER QUALITY GREEN19
65	65	INFRASTRUCTURE PROJECT.20
66	66	SB25-137-2- (A.5) "INDEPENDENT THIRD -PARTY AUDITOR" MEANS A1
67	67	THIRD-PARTY ENTITY OR INDIVIDUAL APPROVED BY A RELEVANT2
68	68	NONGOVERNMENTAL REGISTRY THAT AUDITS AND CERTIFIES TO THE3
69	69	NONGOVERNMENTAL REGISTRY THE AMOUNT OF GHG CREDITS THAT ARE4
70	70	GENERATED BY A WATER QUALITY GREEN INFRASTRUCTURE PROJECT .5
71	71	(C) "Trading program" means a commission-adopted regulatory6
72	72	program that allows for regulated sources to meet their greenhouse gas7
73	73	compliance obligations under subsection (1)(e) of this section through the8
74	74	creation, purchase, acquisition, or exchange of, or other commercial-type9
75	75	transaction involving, a GHG credit with other regulated sources
76	76	OR A10
77	77	WATER QUALITY GREEN INFRASTRUCTURE PROJECT .11
78	78	(D) "W
79	79	ATER QUALITY GREEN INFRASTRUCTURE PROJECT " OR12
80	80	"
81	81	PROJECT" MEANS A PILOT PROJECT ESTABLISHED PURSUANT TO SECTION13
82	82	25-8-311 (3)(b)
83	83	THAT EMPLOYS GREEN INFRASTRUCTURE TO IMPROVE THE14
84	84	WATER QUALITY OF WATER UTILIZED BY A WATER QUALITY TREATMENT15
85	85	FACILITY.16
86	86	(II) Greenhouse gas accounting system. Except as specified in17
87	87	subsection (1)(f)(III) of this section, before the commission adopts a rule18
88	88	or program that provides for the use of a trading program, the commission19
89	89	shall adopt a rule that directs the division to create a comprehensive and20
90	90	centralized accounting system to track emissions from, at a minimum, all21
91	91	regulated sources
92	92	AND WATER QUALITY GREEN INFRASTRUCTURE22
93	93	PROJECTS in the state covered by or that may otherwise participate in that23
94	94	trading program, which system must:24
95	95	(III) The commission may adopt a trading program among25
96	96	regulated sources
97	97	AND WATER QUALITY GREEN INFRASTRUCTURE26
98	98	PROJECTS as necessary to timely implement subsection (1)(e)(IX) of this27
99	99	SB25-137
100	100	-3- section if that program:1
101	101	(B) Enables the division to track the emissions of, and emission2
102	102	reductions, trades, and other transactions by, all regulated sources
103	103	AND3
104	104	WATER QUALITY GREEN INFRASTRUCTURE PROJECTS participating in the4
105	105	trading program;5
106	106	(IV) Water quality green infrastructure project participation6
107	107	in trading program - rules. (A) T
108	108	HE OWNER OR OPERATOR OF A WATER7
109	109	QUALITY GREEN INFRASTRUCTURE PROJECT MAY SELL OR TRADE A GHG8
110	110	CREDIT CREATED BY THE PROJECT IN THE TRADING PROGRAM ESTABLISHED9
111	111	BY THE COMMISSION PURSUANT TO THIS SUBSECTION (1)(f).10
112	112	(B) T
113	113	HE OWNER OR OPERATOR OF A WATER QUALITY GREEN11
114	114	INFRASTRUCTURE PROJECT THAT INTENDS TO SELL OR TRADE A GHG12
115	115	CREDIT IN THE TRADING PROGRAM SHALL PAY AN INDEPENDENT13
116	116	THIRD-PARTY AUDITOR TO CERTIFY ANY GHG CREDIT CREATED BY THE14
117	117	PROJECT.15
118	118	(C) T
119	119	HE COMMISSION SHALL ADOPT ANY RULES NECESSARY TO16
120	120	AUTHORIZE THE SALE, TRADING, AND PURCHASE OF GHG CREDITS17
121	121	CREATED BY A WATER QUALITY GREEN INFRASTRUCTURE PROJECT IN THE18
122	122	TRADING PROGRAM.19
123	123	SECTION 2. Act subject to petition - effective date. This act20
124	124	takes effect at 12:01 a.m. on the day following the expiration of the21
125	125	ninety-day period after final adjournment of the general assembly; except22
126	126	that, if a referendum petition is filed pursuant to section 1 (3) of article V23
127	127	of the state constitution against this act or an item, section, or part of this24
128	128	act within such period, then the act, item, section, or part will not take25
129	129	effect unless approved by the people at the general election to be held in26
130	130	SB25-137
131	131	-4- November 2026 and, in such case, will take effect on the date of the1
132	132	official declaration of the vote thereon by the governor.2
133	133	SB25-137
134	134	-5-