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