Struck = removed from the bill ยท
added = the amendment's new text.
FirstSB305_H_APP.002 RegularNOT SessionAMENDED Seventy-fifthHOUSE GeneralCOMMITTEE Assembly STATE OF COLORADOREFERENCE ENGROSSEDREPORT This_______________________________ VersionApril Includes30, All2025 AmendmentsChair Adoptedof onCommittee SecondDate ReadingCommittee inon theAppropriations House. of Introduction LLS NO.
25-1052.01After Richardconsideration Sweetmanon x4333the SENATEmerits, BILLthe 25-305Committee SENATErecommends SPONSORSHIPthe Kirkmeyerfollowing: and Bridges, Amabile HOUSE SPONSORSHIP Bird and Taggart, Sirota Senate Committees House Committees Appropriations A BILL FOR AN ACT C ONCERNING THE PROCESS BY WHICH THE DIVISION OF ADMINISTRATION IN THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT ISSUES PERMITS RELATING TO WATER QUALITY , AND ,IN CONNECTION THEREWITH ,MAKING AND REDUCING AN APPROPRIATION .
BillSB25-305 Summarybe (Note:referred to the Committee of the Whole with favorable recommendation.
This** summary*** applies** to*** this** bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill 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/.) g Joint Budget Committee.
Current law requires the division of d administration (division) within the department of public health and e 2 T R 2 A 2 5 Shading denotes HOUSE amendment.
Double underlining denotes SENATE amendment.
E d i 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.
e A A environment to report annually to the water quality control commission (commission) and to include in the report any regulatory or legislative recommendations the division may have.
The bill requires the report to also include:
! Information on the division's timing in considering and issuing water quality permits (permits);
and ! For the report submitted in 2026, a detailed discussion of how the division has prioritized reducing the permit backlog,implementedrecommendationsfromwaterquality permittees (permittee) for permitting efficiency, and increased safe drinking water program inspections.
The bill requires the division, upon receipt of an application to modify a permit, to limit its review and its approval or denial of the application to the scope of the specific requests contained in the application.
The bill requires the commission to adopt rules on or before December31,2026,thatestablishprocedureswherebythedivision,prior togivingpublicnoticeof a complete permitapplicationforanindividual permit and the division's preliminary analysis of the application, may provide a period of public notice and review of a preliminary draft prepared by the division.
If a period of public notice and review is required by rules of the commission, the period of public notice and review maynot exceed 14 days, and the purpose of the review is limited to identifying errors in the division's preliminary draft.
On or before December 31, 2027, the division must propose rules to the commission that establish a time frame during which the division will either grant or deny applications for each type of permitting action.
On or before June 30, 2028, the commission must adopt rules based on the division's proposal.
The rules must establish the time frames for permitting actions.
The bill requires the division to consider current debt service on existing local government water infrastructure when developing schedules of compliance for new effluent limits in local government permits.
Any schedule of compliance for new effluent limits in local governmentpermitsmust,consistentwithstateandfederallaw,consider thelocalgovernment'sfinancialcapabilitytorepayexistingdebtonwater infrastructure or to fund water infrastructure upgrades before requiring newwaterinfrastructureupgrades.Totheextentallowableunderfederal law, the division may issue compliance schedules in a local government permit for a new effluent limit in excess of 20 years.
The bill states that, on and after May1, 2026, after an application for permit modification or permit renewal has been pending before the division for 60 days, or for any application for permit modification or permit renewal that is pending before the division as of May 1, 2026, or if the division informs an applicant that the division will not process an -2- 305 application for preliminary effluent limitations, the applicant and the division may mutually agree to use a qualified and independent nongovernmental contractor (contractor) under the direction of the division to provide the division with technical assistance in completing the permit action.
The division shall maintain a list of at least 3 qualified nongovernmental contractors for this purpose.
An applicant shall bear the contractor's costs for any technical assistanceprovidedbythecontractorandshallpaythecontractorforsuch costs.
The division may charge an applicant an additional fee in an amount not exceeding 10% of the contract amount for contract administration,technicalreview,andadditionalpermitprocessing,which fee is credited to the clean water cash fund.
The division may, before issuing its final permit action, require the applicant to fully pay this fee and any contractor costs.
The division shall provide oversight to ensure thatcontractorsprovidetechnicalassistanceinaccordancewiththeterms of their contracts.
The bill requires the division, upon a permittee's request, to make available to the permittee all documents, data, and information the division relied upon indevelopingthepermittee'spermitmodification or permit renewal, except to the extent that such materials are protected by an applicable privilege or exception.
The bill makes the following transfers of money:
! On July 1, 2025, $111,000 from the water quality improvement fund to the drinking water cash fund;
! On July 1, 2025, $3,518,564 from the perfluoroalkyl and polyfluoroalkyl substances cash fund to the clean water cash fund;
! On July 1, 2026, $3,002,435 from the perfluoroalkyl and polyfluoroalkyl substances cash fund to the clean water cash fund;
and ! On July 1, 2026, $516,129 dollars from the perfluoroalkyl and polyfluoroalkyl substances cash fund to the drinking water cash fund.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1.
In Colorado Revised Statutes, 25-8-305, amend (2)(f) and (4)(b);
and add (2)(h) and (4)(c) as follows:
25-8-305.
Annual report - repeal.
(2) The annual report describedinsubsection(1)ofthissectionmustincludeinformationonthe division's:
-3- 305 (f) Ratio of general fund appropriations to cash fund appropriations that were authorized for the state fiscal year immediately preceding the date of the report;
and (h) TIMINGINCONSIDERINGANDISSUINGPERMITS ,INCLUDINGTHE NUMBER OF YEARS ADMINISTRATIVELY CONTINUED PERMITS HAVE BEEN PENDING , CATEGORIZED BY YEARS PENDING , AND A NARRATIVE DESCRIPTIONOFTHEDIVISION 'SPLANFORPROCESSINGADMINISTRATIVELY CONTINUED PERMITS THAT HAVE BEEN ADMINISTRATIVELY CONTINUED FOR LONGER THAN FIVE YEARS .
(4) (b) This subsection (4) is repealed, effective July1, 2026 REPORT THAT THE DIVISION SUBMITS I2026 MUST INCLUDE A DETAILED DISCUSSIONOFHOWTHEDIVISIONHASPRIORITIZEDREDUCINGTHEWATER QUALITY PERMIT BACKLOG , IMPLEMENTED RECOMMENDATIONS FROM PERMITTEES FOR PERMITTING EFFICIENCY,AND INCREASED THE NUMBER OF SAFE DRINKING WATER PROGRAM INSPECTIONS .
(c) THIS SUBSECTION(4)IS REPEALED,EFFECTIVE ULY 1, 2027.
SECTION2.
InColoradoRevisedStatutes,25-8-501,amend(2) as follows:
25-8-501.
Permits required for discharge of pollutants - administration.
(2) (a) The division shall examine applications for and may issue, suspend, revoke, modify, deny, and otherwise administer permits for the discharge of pollutants into state waters and for the use anddisposalofbiosolids.SuchTHE administrationshallbeinaccordance withtheprovisionsofthisarticlARTICLE8andregulationspromulgated RULES ADOPTED by the commission.
Until modified pursuant to this articleARTICLE 8, final permits shall be governed by their existing limitations.
-4- 305 (b) UPON RECEIPT OF AN APPLICATION TO MODIFY A PERMI,THE DIVISIONSHALLLIMITITSREVIEWAND ,ASAPPROPRIATE ,ITSAPPROVALOR DENIAL OF THE APPLICATION,TO THE SCOPE OF THE SPECIFIC REQUESTS CONTAINED IN THE APPLICATION.
SECTION3.
InColoradoRevisedStatutes,25-8-502,add(3)(d) and (7) as follows:
25-8-502.
Application - definitions - fees - funds created - public participation - rules - repeal.
(3) (d) OFORED ECEMBER 31, 2026, THE COMMISSION SHALL ADOPT RULES ESTABLISHING PROCEDURESWHEREBYTHEDIVISION ,PRIORTOGIVINGPUBLICNOTICEOF A COMPLETE PERMIT APPLICATION FOR AN INDIVIDUAL PERMIT AND THE DIVISIONS PRELIMINARY ANALYSIS OF THE APPLICATION PURSUANT TO SUBSECTION (3)(bOF THIS SECTION,MAY PROVIDE A PERIOD OF PUBLIC NOTICE AND REVIEW OF A PRELIMINARY DRAFT PREPARED BY THE DIVISION.
F A PERIOD OF PUBLIC NOTICE AND REVIEW IS REQUIRED BY RULES OF THE COMMISSION ,THE PERIOD OF PUBLIC NOTICE AND REVIEW MAY NOT EXCEED FOURTEEN DAYS ,AND THE PURPOSE OF THE REVIEW IS LIMITED TO IDENTIFYING ERRORS IN THE DIVIS'S PRELIMINARY DRAFT.
T HEDIVISIONSHALLMAKEAVAILABLEONTHEDIVISION SPUBLICWEBSITE ANYDOCUMENTSPROVIDEDBYTHEDIVISIONDURINGAPERIODOFPUBLIC NOTICE AND REVIEW .
(7) (a) ON OR BEFORED ECEMBER 31, 2027,THE DIVISION SHALL PROPOSE RULES TO THE COMMISSION THAT ESTABLISH A TIME FRAME DURINGWHICHTHEDIVISIONWILLEITHERGRANTORDENYAPPLICATIONS FOR EACH TYPE OF PERMITTING ACTION .
N OR BEFORE JUNE 30, 2028, THE COMMISSION SHALL ADOPT RULES BASED ON THE DIVISION S PROPOSAL .
THE RULES MUST ESTABLISH THE TIME FRAMES FOR -5- 305 PERMITTING ACTIONS,INCLUDING:
(I) TEISSUANCEOFNEWINDIVIDUALPERMITSANDNEWGENERAL PERMITS;
(II) TERENEWALOFGENERALPERMITSANDINDIVIDUALPERMITS ;
(III) THE GRANTING OR DENYING OF REQUESTS FOR PERMIT MODIFICATIONS;AND (IV) THE DETERMINATION OF PRELIMINARY EFFLUENT LIMITATIONS.
(b) (I) TE DIVISION SHALL BEGIN THE PROCESS TO CREATE A PROPOSAL OF TIME FRAMES FOR PERMITTING ACTIONS FOR THE PURPOSES OF SUBSECTION (7)(aOF THIS SECTION ON OR BEFOAEUGUST 1, 2025.
(II) HISSUBSECTION(7)(bISREPEALED,EFFECTIVEJULY 1,2026.
SECTION 4.
In Colorado Revised Statutes, 25-8-503, add (10) as follows:
25-8-503.
Permits - when required and when prohibited - variances-definition.(10)(a) TDIVISIONSHALLCONSIDERCURRENT DEBTSERVICEONEXISTINGLOCALGOVERNMENTWATERINFRASTRUCTURE WHENDEVELOPINGSCHEDULESOFCOMPLIANCEFORNEWEFFLUENTLIMITS IN LOCAL GOVERNMENT PERMITS.
(b) ANYSCHEDULEOFCOMPLIANCETHATTHEDIVISIONDEVELOPS FOR NEW EFFLUENT LIMITS IN LOCAL GOVERNMENT PERMITS MUST , CONSISTENT WITH STATE AND FEDERAL LAW ,CONSIDER THE LOCAL GOVERNMENT S FINANCIAL CAPABILITY TO REPAY EXISTING DEBT ON WATERINFRASTRUCTUREORTOFUNDWATERINFRASTRUCTUREUPGRADES BEFORE REQUIRING NEW WATER INFRASTRUCTURE UPGRADES .
TO THE EXTENTALLOWABLEUNDERFEDERALLAW ,THEDIVISIONMAYESTABLISH COMPLIANCE SCHEDULES IN A LOCAL GOVERNMENT PERMIT FOR A NEW -6- 305 EFFLUENT LIMIT IN EXCESS OF TWENTY YEARS.
(c) ASUSEDINTHISSUBSECTION (10),"WATERINFRASTRUCTURE " INCLUDESWASTEWATERTREATMENTINFRASTRUCTURE ,DRINKINGWATER TREATMENT INFRASTRUCTURE ,AND RAW WATER INFRASTRUCTURE .
SECTION 5.
In Colorado Revised Statutes, add 25-8-503.7 as follows:
25-8-503.7.
Use of qualified and independent contractors - powers and duties of the division - fees - definitions.
(1) OD AFTER M AY 1, 2026,AN APPLICANT AND THE DIVISION MAY MUTUALLY AGREE TO USE A QUALIFIED AND INDEPENDENT NONGOVERNMENTAL CONTRACTOR UNDER THE DIRECTION OF THE DIVISION TO PROVIDE THE DIVISION WITH TECHNICAL ASSISTANCE IN COMPLETING THE PERMIT ACTION IF:
(a) A N APPLICATION FOR PERMIT MODIFICATION OR PERMIT RENEWAL HAS BEEN PENDING BEFORE THE DIVISION FOR SIXTY DAYS;
(b) A N APPLICATION FOR PERMIT MODIFICATION OR PERMIT RENEWAL IS PENDING BEFORE THE DIVISION AS OM AY 1, 2026OR (c) THEDIVISIONINFORMSANAPPLICANTTHATTHEDIVISIONWILL NOTPROCESSANAPPLICATIONFORPRELIMINARYEFFLUENTLIMITATIONS .
(2) A CONTRACTOR THAT PROVIDES TECHNICAL ASSISTANCE PURSUANT TOTHISSECTIONMAYASSIST THE DIVISIONWITHSOME ORALL OF THE FOLLOWING ,AT THE DIVISIOS DISCRETION:
(a) PREPARING THE DIVISIO'S PROPOSED PERMIT ACTION;
(b) PREPARING THE DIVISIONS RESPONSES TO PUBLIC COMMENTS RECEIVED ON THE PROPOSED PERMIT ACTION,IF ANY;
(c) PREPARING THE DIVISIO'S FINAL PERMIT ACTIO;
(d) A IDING IN THE DIVISIO'S DEFENSE OF THE FINAL PERMIT -7- 305 ACTION IN ANY ADMINISTRATIVE ADJUDICATORY PROCEEDINGS ;AND (e) A IDING IN THE DIVISIO'S DEFENSE OF THE FINAL PERMIT ACTION IN ANY JUDICIAL PROCEEDINGS.
(3) THE APPLICANT SHALL BEAR THE CONTRACTOR S COSTS FOR ANY TECHNICAL ASSISTANCE PROVIDED PURSUANT TO THIS SECTION AND SHALL REMIT PAYMENT FOR THE COSTS DIRECTLY TO THE CONTRACTOR .
T HE DIVISION MAY CHARGE THE APPLICANT AN ADDITIONAL FEE IN AN AMOUNT NOT EXCEEDING TEN PERCENT OF THE CONTRACT AMOUNT FOR CONTRACT ADMINISTRATION ,TECHNICAL REVIEW , AND ADDITIONAL PERMIT PROCESSING .
MONEY COLLECTED AS AN ADDITIONAL FEE SHALL BE CREDITED TO THE CLEAN WATER CASH FUND CREATED IN SECTION 25-8-210.T HE DIVISION MA,BEFORE ISSUING ITS FINAL PERMIT ACTI,N REQUIRE THE APPLICANT TO FULLY PAY THE ADDITIONAL FEE AND ANY CONTRACTOR COSTS .
(4) (a) THE DIVISIO, IN ITS SOLE DISCRETI,NSHALL PROVIDE OVERSIGHT TO ENSURE THAT CONTRACTORS PROVIDE TECHNICAL ASSISTANCEINACCORDANCEWITHTHETERMSOFTHEIRCONTRACTS .THE DIVISION MAY REQUIRE A CONTRACTOR S TECHNICAL ASSISTANCE TO CONFORM TO ALL COMMISSION RULES ,DIVISION POLICI,AND DIVISION PRACTICES APPLICABLE TO THE PERMIT ACTION IN QUESTIO.
(b) THE DIVISION MAY DEEM SOME OR ALLOFTHE CONTRACTOR S TECHNICAL ASSISTANCE AS UNACCEPTABLE AND MAY REJECT ,REQUIRE CORRECTION OF ,OR DENY APPROVAL FOR SUCH ASSISTANCE .
THE DIVISIONS REJECTION,REQUIRED CORRECTION ,OR DENIAL OF APPROVAL OFACONTRACTOR STECHNICALASSISTANCEISNOT SUBJECT TOJUDICIAL OR ADMINISTRATIVE REVIEW AND DOES NOT RELIEVE AN APPLICANT OF THEOBLIGATIONTOPAYTHECONTRACTOR SCOSTSFORSUCHTECHNICAL -8- 305 ASSISTANCE .
(c) T HE DIVISIONS USE OF CONTRACTORS PURSUANT TO THIS SECTIONDOESNOTRELIEVETHEDIVISIONOFITSOBLIGATIONSUNDERTHIS ARTICLE 8.
(d) THE DIVISION IS NOT SUBJECT TO THE REQUIREMENTS OF THE "P ROCUREMENT CODE ",ARTICLES101 TO 112OFTITLE 24,IN SELECTING OR CONTRACTING WITH THE CONTRACTORS .
(5) A S USED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "CONFLICT OF INTEREST"MEANS A DIRECT AND SUBSTANTIAL PERSONAL OR FINANCIAL INTEREST IN THE OUTCOME OF A PERMIT OR PERMIT ACTION SUCH THAT A CONTRACTOR IS UNABLE TO FULFILL ITS DUTY TO REMAIN FAIR ,IMPARTIAL,OR OBJECTIVE.
(b) "INDEPENDENT "MEANS HAVING NO CONFLICT OF INTEREST WITH A PERMITTEE .
(c) "Q UALIFIED" MEANS HAVING SUBSTANTIAL PROFESSIONAL EDUCATION ,TRAINING,OR EXPERIENCE IN WATER QUALITY PERMITTING.
SECTION 6.
In Colorado Revised Statutes, 25-8-210, add (4)(a)(I.2) as follows:
25-8-210.
Fees established administratively - rules - shareholding requirement - phase-in period - clean water cash fund - creation - repeal.
(4) (a) The clean water cash fund is created in the state treasury.
The fund consists of:
(I.2) FEES COLLECTED PURSUANT TO SECTION 25-8-503.7 (3);
SECTION 7.
In Colorado Revised Statutes, add 25-8-503.8 as follows:
25-8-503.8.
Documents, information, and data utilized in -9- 305 developingpermits.U PONAPERMITTEE SREQUEST ,THEDIVISIONSHALL MAKE AVAILABLE TO THE PERMITTEE ALL DOCUMENTS ,DATA ,AND INFORMATIONTHEDIVISIONRELIEDUPONINDEVELOPINGTHEPERMITTEE S PERMIT MODIFICATION OR PERMIT , INCLUDING ANY MODEL ,TOOL, OR TABULAR WORKSHEET AND ANY FORMULAS ,MACROS ,METADATA ,AND CALCULATIONS CONTAINED IN SUCH MATERIALS ,EXCEPT TO THE EXTENT THAT THE DOCUMENTS ,DATA,AND INFORMATION ARE PROTECTED BY AN APPLICABLEPRIVILEGE ,SUCHASTHEATTORNEY -CLIENTPRIVILEGEORTHE DELIBERATIVE PROCESS PRIVILEGE, OR ARE SUBJECT TO AN EXCEPTION FROM DISCLOSURE SET FORTH IN SECTION24-72-204.
SECTION 8.
In Colorado Revised Statutes, 25-8-608, amend (1.8) as follows:
25-8-608.
Civil penalties - rules - fund created - temporary moratorium on penalties for minor violations - definitions - repeal.
(1.8) (a) Notwithstanding any provision of subsection (1.5) or (1.7) of this section to the contrary, on April 20, 20091, 2025, the state treasurer shall deduct seven hundred thousand dollarsSFER ONE HUNDRED ELEVEN THOUSAND DOLLARS from the water quality improvement fund and transfer such suto the general fuDRINKING WATER CASH FUND CREATED IN SECTION 25-1.5-209 (2).
(b) T HIS SUBSECTION(1.8)IS REPEALED,EFFECTIVE AUGUST 1, 2026.
SECTION 9.
In Colorado Revised Statutes, 8-20-206.5, add (7)(d) as follows:
8-20-206.5.
Environmental response surcharge - liquefied petroleum gas and natural gas inspection fund - perfluoroalkyl and polyfluoroalkyl substances cash fund - hazardous materials -10- 305 infrastructure cash fund - fuels impact reduction grant program - definitions - repeal.
(7) (d) (I) NSTANDING SUBSECTION (7)(c) OF THIS SECTION , THE STATE TREASURER SHALL TRANSFER THE FOLLOWING AMOUNTS FROM THE FUND ON THE FOLLOWING DATES :
(A) O N ULY 1, 2025,THREE MILLION FIVE HUNDRED EIGHTEEN THOUSAND FIVE HUNDRED SIXTY -FOUR DOLLARS TO THE CLEAN WATER CASH FUND CREATED IN SECTION25-8-210;
(B) O N JULY 1, 2026,THREE MILLION TWO THOUSAND FOUR HUNDRED THIRTY FIVE DOLLARS TO THE CLEAN WATER CASH FUND CREATED IN SECTION25-8-210;AND (C) O N JULY 1, 2026FIVE HUNDRED SIXTEEN THOUSAND ONE HUNDRED TWENTY -NINE DOLLARS TO THE DRINKING WATER CASH FUND CREATED IN SECTION25-1.5-209 (2).
(II) TISSUBSECTION (7)(dISREPEALED,EFFECTIVEJULY1,2028.
SECTION 10.
Appropriation.
(1) For the 2025-26 state fiscal year, $2,904,599 is appropriated to the department of public health and environment.
This appropriation consists of $446,315 from the drinking water cash fund created in section 25-1.5-209 (2)(a), C.R.S., and $2,458,284 from the clean water cash fund created in section 25-8-210 (4)(a), C.R.S.
To implement this act, the department may use this appropriation as follows:
(a) $2,035,705, from the clean water cash fund for clean water program costs which amount is based on an assumption that the department will require an additional 18.0 FTE;
(b) $385,345 from the drinking water cash fund for use by the drinking water program for personal services, which amount is based on an assumption that the department will require an additional 4.0 FTE;
-11- 305 (c) $322,938, which consists of $60,970 from the drinking water cash fund and $261,968 from the clean water cash fund for use by the water quality control division for indirect cost assessments;
and (d) $160,611 from the clean water cash fund for the purchase of legal services.
(2) For the 2025-26 state fiscal year, $160,611 is appropriated to the department of law.
This appropriation is from reappropriated funds received from the department of public health and environment under subsection (1)(d) of this section and is based on an assumption that the department of law will require an additional 0.7 FTE.
To implement this act, the department of law may use this appropriation to provide legal services for the department of public health and environment.
SECTION 11.
Appropriation - adjustments to 2025 long bill.
(1) To implement this act, appropriations made in the annual general appropriation act for the 2025-26 state fiscal year to the department of public health and environment for use by the adminstration and support division are adjusted as follows:
(a) The general fund appropriation for health, life, and dental is decreased by $171,630;
(b) The appropriation for health, life, and dental is increased by $171,630 which consists of $31,205 from the drinking water cash fund createdinsection25-1.5-209(2)(a),C.R.S.,and$140,425fromtheclean water cash fund created in section 25-8-210 (4)(a), C.R.S.
(c) The general fund appropriation for short-term disability is decreased by $2,140;
(d) The appropriation for short-term disability is increased by $2,140,whichconsistsof$389fromthedrinkingwatercashfundcreated -12- 305 insection25-1.5-209(2)(a),C.R.S.,and$1,751fromthecleanwatercash fund created in section 25-8-210 (4)(a), C.R.S.
(e) The general fund appropriation for unfunded liability amortization equalization disbursement payments is decreased by $140,238;
and (f) The appropriation for unfunded liability amortization equalization disbursement payments is increased by $140,238, which consists of $25,498 from the drinking water cash fund created in section 25-1.5-209 (2)(a), C.R.S., and $114,740 from the clean water cash fund created in section 25-8-210 (4)(a), C.R.S.
SECTION 12.
Safety clause.
The general assembly finds, determines, and declares that this act is necessary for the immediate preservationofthepublicpeace,health,orsafetyorforappropriationsfor the support and maintenance of the departments of the state and state institutions.
-13- 305