House Bill 25-1165 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the management of underground energy

• Page 1, Line 102resources.

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 creates the geologic storage stewardship enterprise (enterprise) in the department of natural resources (department) for the purpose of:

• Imposing and determining the amount of annual stewardship fees;
• Funding the long-term stewardship of geologic storage facilities in the state;
• Funding the plugging, abandoning, reclaiming, and remediating of orphaned geologic storage facilities in the state; and
• Ensuring that costs associated with long-term stewardship of geologic storage facilities are borne by geologic storage operators in the form of stewardship fees.
• Ownership of the injection carbon dioxide, and ownership of any remaining facilities used to inject or store injection carbon dioxide, transfer to the state without payment of additional compensation;
• Except in specified circumstances, the geologic storage operator is released from all regulatory liability associated with the continued storage of the injection carbon dioxide and the long-term stewardship of the associated geologic storage facility; and
• The enterprise undertakes long-term stewardship of the injection carbon dioxide and any associated geologic storage facility.
• Clarifying that "nontributary groundwater" does not include "designated groundwater", as these terms are defined in current law;
• Exempting certain geothermal operations from needing a well permit from the state engineer;
• Requiring the state engineer to notify the operator of a prior geothermal operation of an application for a proposed well, and allowing the operator the opportunity to request a hearing if the application causes concern for material injury to the prior geothermal operation;
• Establishing that the authority to regulate shallow geothermal operations is shared by the state engineer and the state board of examiners;
• Renaming the state board of examiners of water well construction and pump installation contractors as the "state board of examiners of water well and ground heat exchanger contractors" (state board of examiners); and
• Regulating ground heat exchanger contractors in the same manner that currently exists for water well construction contractors and pump installation contractors.

The bill creates the geologic storage stewardship enterprise board (enterprise board) to administer the enterprise.

The bill requires each geologic storage operator to pay an annual stewardship fee for each ton of injection carbon dioxide that the geologic storage operator injects in the state. The energy and carbon management commission (commission) collects the stewardship fee on the enterprise's behalf. All money collected as stewardship fees is credited to the geologic storage stewardship enterprise cash fund, which is created in the bill. Money in the geologic storage stewardship enterprise cash fund is continuously appropriated to the enterprise.

The enterprise and the commission may each adopt rules to implement the bill.

Upon the commission's approval of a site closure:

The bill makes several updates to laws concerning the administration of underground geothermal resources, including:

• Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 3, Line 2SECTION 1.  Legislative declaration. (1)  The general assembly finds that:

• Page 3, Line 3(a)  Colorado has established statewide emission targets to reduce

• Page 3, Line 4greenhouse gas emissions based on the levels that existed in 2005,

• Page 3, Line 5including a 26% reduction by 2025, a 50% reduction by 2030, and net-zero emissions by 2050;

• Page 3, Line 6(b)  Meeting these goals will involve multiple, simultaneously pursued strategies, as well as a streamlined administrative structure;

• Page 3, Line 7(c)  Carbon capture and storage, or "CCS", has been identified as an essential tool for hard-to-decarbonize sectors;

• Page 3, Line 8(d)  The geologic sequestration of carbon dioxide, or "CO2", in the

• Page 3, Line 9subsurface is necessary to reach net-zero emission targets globally and may be equally critical to Colorado's own climate targets;

• Page 3, Line 10(e)  Through CCS, stored CO2 remains in the subsurface

• Page 3, Line 11permanently. These CO2 storage projects require an extended

• Page 3, Line 12post-injection site care phase, typically lasting for decades after injection

• Page 3, Line 13has ceased, in which the injected CO2 is monitored to thoroughly

• Page 3, Line 14demonstrate that the injected CO2 is stable and will not pose a risk to

• Page 3, Line 15underground sources of drinking water.

• Page 4, Line 1(f)  When a storage operator ceases to exist, for example, through

• Page 4, Line 2bankruptcy, current law does not provide for monitoring and stewardship of the the storage facility;

• Page 4, Line 3(g)  These are some of the reasons why the Colorado carbon

• Page 4, Line 4management roadmap, the energy and carbon management commission's

• Page 4, Line 5CCS study, and Colorado's carbon capture sequestration and utilization

• Page 4, Line 6task force all called for the state to create a process for long-term

• Page 4, Line 7stewardship of CO2 storage sites whereby CCS storage sites can be monitored and maintained for decades after site closure;

• Page 4, Line 8(h)  Establishing an enterprise funded by a fee imposed on

• Page 4, Line 9geologic storage operators to provide the necessary resources for the state

• Page 4, Line 10to conduct long-term monitoring and stewardship activities protects

• Page 4, Line 11Colorado communities from future impacts from storage facilities,

• Page 4, Line 12supports our state's climate goals, relieves state taxpayers of a potential burden to manage these sites, and provides certainty to operators;

• Page 4, Line 13(i)  Geothermal energy also provides many opportunities to support

• Page 4, Line 14the state's transition to a low-carbon economy by offering more reliable

• Page 4, Line 15energy service and predictable, affordable costs while improving local air quality and offering new economic growth opportunities;

• Page 4, Line 16(j)  The energy and carbon management commission and the

• Page 4, Line 17division of water resources are responsible for regulating geothermal development in Colorado;

• Page 4, Line 18(k)  In 2023, in Senate Bill 23-285, the general assembly directed

• Page 4, Line 19the energy and carbon management commission and the division of water

• Page 4, Line 20resources to study the state regulatory structure for geothermal resources and determine if additional changes are necessary;

• Page 4, Line 21(l)  In support of the state's climate and energy goals, the

• Page 5, Line 1department of natural resources has identified statutory changes that will

• Page 5, Line 2clarify and streamline Colorado's regulatory framework while facilitating responsible development of geothermal resources in Colorado; and

• Page 5, Line 3(m)  These recommendations will minimize costs, expedite

• Page 5, Line 4permitting, reduce risks to industry and the public, and clarify regulatory authority across state agencies.

• Page 5, Line 5(2)  The general assembly therefore declares that it is important

• Page 5, Line 6that Colorado drive and oversee the deployment of CCS and geothermal

• Page 5, Line 7technologies in a manner that encourages protective growth and

• Page 5, Line 8adaptation of infrastructure and improved coordination for permitting authorities.

• Page 5, Line 9SECTION 2.  In Colorado Revised Statutes, add 34-60-144 as follows:

• Page 5, Line 1034-60-144.  Geologic storage stewardship enterprise - created

• Page 5, Line 11- legislative declaration - powers and duties of enterprise - geologic

• Page 5, Line 12storage stewardship enterprise board - membership and duties of

• Page 5, Line 13enterprise board - stewardship fees - geologic storage stewardship

• Page 5, Line 14enterprise cash fund - definitions - rules - repeal. (1)  Legislative declaration. (a)  The general assembly finds that:

• Page 5, Line 15(I)  Geologic storage operations are an important tool to help the state meet its greenhouse gas emission reduction goals;

• Page 5, Line 16(II)  Geologic storage operations involve permanently storing injection carbon dioxide underground;

• Page 5, Line 17(III)  It is prudent to monitor and otherwise conduct

• Page 5, Line 18long-term stewardship of injection carbon dioxide to

• Page 5, Line 19demonstrate that the injection carbon dioxide is stable and will

• Page 5, Line 20not pose a risk to underground sources of drinking water;

• Page 6, Line 1(IV)  Geologic storage operations present the state with risks of orphaned geologic storage facilities;

• Page 6, Line 2(V)  It is necessary, appropriate, and in the best interest of

• Page 6, Line 3geologic storage operators for the state to conduct long-term stewardship; and

• Page 6, Line 4(VI)  It is necessary, appropriate, and in the best interest

• Page 6, Line 5of geologic storage operators for the state to ensure that

• Page 6, Line 6orphaned geologic storage facilities are plugged, abandoned,

• Page 6, Line 7reclaimed, and remediated, if necessary, in a timely manner if available financial assurance is insufficient.

• Page 6, Line 8(b)  The general assembly also finds that:

• Page 6, Line 9(I)  Current law in January 2025 provides no mechanism to

• Page 6, Line 10pay for the state's long-term stewardship of geologic storage facilities; and

• Page 6, Line 11(II)  Current law in January 2025 authorizes the

• Page 6, Line 12commission to require geologic storage operators to maintain

• Page 6, Line 13and demonstrate certain financial assurances to plug, abandon, reclaim, and remediate geologic storage facilities.

• Page 6, Line 14(c)  Now, therefore, the general assembly declares that:

• Page 6, Line 15(I)  It is in the public interest to create an enterprise

• Page 6, Line 16within the department that is committed to funding long-term

• Page 6, Line 17stewardship of injection carbon dioxide and, if necessary, the

• Page 6, Line 18plugging, abandonment, reclaiming, and remediating of orphaned geologic storage facilities;

• Page 6, Line 19(II)  The activities of the enterprise shall be funded by

• Page 6, Line 20revenue generated from stewardship fees paid by operators of

• Page 6, Line 21class VI injection wells in Colorado;

• Page 7, Line 1(III)  It is appropriate that geologic storage operators

• Page 7, Line 2should pay such stewardship fees, as geologic storage operators

• Page 7, Line 3are the direct beneficiaries of the services provided by the

• Page 7, Line 4enterprise, which are long-term stewardship and, where

• Page 7, Line 5necessary, the plugging, abandonment, reclaiming, and remediating of orphaned geologic storage facilities;

• Page 7, Line 6(IV)  Geologic storage operators benefit from long-term

• Page 7, Line 7stewardship because services, such as long-term monitoring and

• Page 7, Line 8site management, allow geologic storage operators to operate

• Page 7, Line 9class VI injection wells in Colorado by addressing the risks

• Page 7, Line 10presented by the permanent storage of injection carbon dioxide

• Page 7, Line 11without requiring geologic storage operators to conduct long-term stewardship;

• Page 7, Line 12(V)  Consistent with the determination of the Colorado

• Page 7, Line 13supreme court in Nicholl v. E-470 Public Highway Authority, 896

• Page 7, Line 14P.2d 859 (Colo. 1995), that the power to impose taxes is

• Page 7, Line 15inconsistent with enterprise status under section 20 of article

• Page 7, Line 16X of the state constitution, the general assembly concludes

• Page 7, Line 17that the stewardship fee is a fee, not a tax, and the enterprise

• Page 7, Line 18operates as a business because the stewardship fee is imposed for the following specific business purposes:

• Page 7, Line 19(A)  The long-term stewardship services authorized by this

• Page 7, Line 20section provide a benefit to geologic storage operators by

• Page 7, Line 21allowing a geologic storage operator to be released of

• Page 7, Line 22regulatory and long-term stewardship responsibilities

• Page 7, Line 23associated with injection carbon dioxide after the commission

• Page 7, Line 24approves site closure of a geologic storage facility; and

• Page 8, Line 1(B)  The plugging, abandonment, reclaiming, and

• Page 8, Line 2remediating services authorized by this section provide a benefit

• Page 8, Line 3to geologic storage operators by allowing them to operate

• Page 8, Line 4class VI injection wells in Colorado despite the risk that

• Page 8, Line 5available financial assurance may be insufficient to protect the

• Page 8, Line 6public from the costs of geologic storage facilities being orphaned; and

• Page 8, Line 7(VI)  So long as the enterprise qualifies as an enterprise

• Page 8, Line 8for purposes of section 20 of article X of the state constitution,

• Page 8, Line 9the revenue from the stewardship fee administered by the

• Page 8, Line 10enterprise and collected by the commission is not state fiscal

• Page 8, Line 11year spending, as defined in section 24-77-102 (17), or state

• Page 8, Line 12revenues, as defined in section 24-77-103.6 (6)(c), and does not

• Page 8, Line 13count against either the state fiscal year spending limit imposed

• Page 8, Line 14by section 20 of article X of the state constitution or the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I)(G).

• Page 8, Line 15(2)  Definitions.As used in this section, unless the context otherwise requires:

• Page 8, Line 16(a)  "Department" means the department of natural resources.

• Page 8, Line 17(b)  "Enterprise" means the geologic storage stewardship enterprise created in subsection (3) of this section.

• Page 8, Line 18(c)  "Enterprise board" means the geologic storage

• Page 8, Line 19stewardship enterprise board created in subsection (5) of this section.

• Page 8, Line 20(d)  "Geologic storage stewardship enterprise cash fund"

• Page 8, Line 21means the geologic storage stewardship enterprise cash fund created in subsection (7) of this section.

• Page 9, Line 1(e)  "Long-term stewardship" means monitoring and

• Page 9, Line 2integrity maintenance of geologic storage facilities after the

• Page 9, Line 3commission approves a site closure, as well as any associated

• Page 9, Line 4action necessary to protect public health, safety, welfare, the environment, or wildlife resources.

• Page 9, Line 5(f)  "Orphaned geologic storage facility" means a geologic

• Page 9, Line 6storage facility in the state for which no owner or operator can

• Page 9, Line 7be found or for which the owner or operator is unwilling or

• Page 9, Line 8unable to pay the costs of plugging, abandoning, remediating,

• Page 9, Line 9reclaiming, or other action necessary to obtain site closure pursuant to commission rules.

• Page 9, Line 10(g)  "Stewardship fee" means the stewardship fee

• Page 9, Line 11authorized and imposed pursuant to subsection (6) of this section.

• Page 9, Line 12(3)  Enterprise created. (a)  The geologic storage

• Page 9, Line 13stewardship enterprise is created in the department, is a type 1

• Page 9, Line 14entity, as defined in section 24-1-105, and exercises its powers

• Page 9, Line 15and performs its duties and functions under the department. The enterprise is created for the purpose of:

• Page 9, Line 16(I)  Imposing and determining the amount of stewardship fees;

• Page 9, Line 17(II)  Funding the long-term stewardship of geologic storage facilities in the state;

• Page 9, Line 18(III)  Funding the plugging, abandonment, reclaiming, and

• Page 9, Line 19remediating of orphaned geologic storage facilities in the state

• Page 9, Line 20if the director of the commission determines that available financial assurance is insufficient; and

• Page 10, Line 1(IV)  Ensuring that costs associated with long-term

• Page 10, Line 2stewardship of geologic storage facilities are borne by geologic storage operators in the form of stewardship fees.

• Page 10, Line 3(b)  The enterprise board, in consultation with the

• Page 10, Line 4commission, shall administer the enterprise in accordance with this section.

• Page 10, Line 5(c) (I)  The enterprise constitutes an enterprise for

• Page 10, Line 6purposes of section 20 of article X of the state constitution so

• Page 10, Line 7long as it retains the authority to issue revenue bonds and

• Page 10, Line 8receives less than ten percent of its total revenues in grants, as

• Page 10, Line 9defined in section 24-77-102 (7), from all Colorado state and

• Page 10, Line 10local governments combined. So long as it constitutes an

• Page 10, Line 11enterprise, the enterprise is not subject to section 20 of article X of the state constitution.

• Page 10, Line 12(II)  The enterprise is authorized to issue revenue bonds for

• Page 10, Line 13the expenses of the enterprise, secured by revenue of the enterprise.

• Page 10, Line 14(4)  Enterprise board created - membership - duties - repeal.

• Page 10, Line 15(a) (I)  The geologic storage stewardship enterprise board is

• Page 10, Line 16created to administer the enterprise. The enterprise board includes the following five members:

• Page 10, Line 17(A)  The chair of the commission;

• Page 10, Line 18(B)  The director of the commission or the director's designee;

• Page 10, Line 19(C)  An individual with substantial experience in geologic

• Page 10, Line 20storage, to be appointed by the governor and confirmed by the senate;

• Page 11, Line 1(D)  An individual with formal training or substantial

• Page 11, Line 2experience in environmental protection, public health, or other

• Page 11, Line 3relevant fields, to be appointed by the governor and confirmed by the senate; and

• Page 11, Line 4(E)  An individual with formal training or substantial

• Page 11, Line 5experience in wellbore monitoring, long-term stewardship, or

• Page 11, Line 6other relevant technical fields, to be appointed by the governor and confirmed by the senate.

• Page 11, Line 7(II) (A)  The governor shall appoint the initial members of

• Page 11, Line 8the enterprise board pursuant to subsections (4)(a)(I)(C),

• Page 11, Line 9(4)(a)(I)(D), and (4)(a)(I)(E) of this section on or before September 1, 2025.

• Page 11, Line 10(B)  This subsection (4)(a)(II) is repealed, effective July 1, 2026.

• Page 11, Line 11(III)  The members of the enterprise board described in

• Page 11, Line 12subsections (4)(a)(I)(C), (4)(a)(I)(D), and (4)(a)(I)(E) of this section

• Page 11, Line 13shall each serve terms of three years; except that the initial

• Page 11, Line 14term of the member appointed pursuant to subsection (4)(a)(I)(C)

• Page 11, Line 15of this section is one year, and the initial term of the member

• Page 11, Line 16appointed pursuant to subsection (4)(a)(I)(D) of this section is

• Page 11, Line 17two years. In the event of a vacancy, the governor may appoint

• Page 11, Line 18an individual to complete the term of the member whose seat has become vacant.

• Page 11, Line 19(IV)  An individual may be appointed to serve as a member

• Page 11, Line 20of the enterprise board pursuant to subsection (4)(a)(I)(C),

• Page 11, Line 21(4)(a)(I)(D), or (4)(a)(I)(E) of this section for an unlimited number of terms.

• Page 12, Line 1(V)  Enterprise board members serving pursuant to

• Page 12, Line 2subsections (4)(a)(I)(C), (4)(a)(I)(D), and (4)(a)(I)(E) of this section

• Page 12, Line 3may receive compensation from the enterprise on a per diem basis

• Page 12, Line 4for reasonable expenses actually incurred in the performance

• Page 12, Line 5of duties required of enterprise board members under this section.

• Page 12, Line 6(VI)  The governor shall select a member of the enterprise board to serve as chair of the enterprise board.

• Page 12, Line 7(b)  In addition to administering the enterprise, the enterprise board shall:

• Page 12, Line 8(I)  Set the amount of the stewardship fee at an amount

• Page 12, Line 9that is reasonably related to the overall cost of the long-term

• Page 12, Line 10stewardship services provided by the enterprise. The enterprise

• Page 12, Line 11board shall set the initial amount within six months after the enterprise board is confirmed.

• Page 12, Line 12(II)  As frequently as the enterprise board determines

• Page 12, Line 13necessary, consider whether the amount of the stewardship fee should be increased or reduced, based on:

• Page 12, Line 14(A)  The overall cost of the enterprise's long-term

• Page 12, Line 15stewardship services, including reasonably anticipated future

• Page 12, Line 16expenditures from the geologic storage stewardship enterprise cash fund; and

• Page 12, Line 17(B)  The need to comply with subsection (7)(b) of this section;

• Page 12, Line 18(III)  When setting the stewardship fee amount, in

• Page 12, Line 19accordance with subsection (4)(b)(I) of this section, and when

• Page 13, Line 1considering whether and how frequently to increase or reduce

• Page 13, Line 2the stewardship fee amount, in accordance with subsection

• Page 13, Line 3(4)(b)(II) of this section, consider the importance of financial predictability for operators;

• Page 13, Line 4(IV)  If the enterprise board determines that an increase

• Page 13, Line 5or reduction of the stewardship fee amount is warranted, adjust

• Page 13, Line 6the stewardship fee amount to an amount that is reasonably

• Page 13, Line 7related to the overall cost of the long-term stewardship services provided by the enterprise; and

• Page 13, Line 8(V)  Advise the commission of the outcome of the enterprise board's deliberations pursuant to this subsection (4).

• Page 13, Line 9(5)  Powers and duties.In addition to any other powers and

• Page 13, Line 10duties specified in this section, the enterprise board has the

• Page 13, Line 11following general powers and duties on behalf of the enterprise:

• Page 13, Line 12(a)  To adopt procedures for conducting the enterprise board's affairs;

• Page 13, Line 13(b)  To acquire, hold title to, and dispose of real and

• Page 13, Line 14personal property, including ownership of injection carbon

• Page 13, Line 15dioxide upon approval of site closure of an associated geologic storage facility by the commission;

• Page 13, Line 16(c)  To employ and supervise individuals, professional

• Page 13, Line 17consultants, and contractors as are necessary in the enterprise board's judgment to carry out its business purposes;

• Page 13, Line 18(d)  To engage the services of contractors, consultants,

• Page 13, Line 19and the attorney general's office for professional and

• Page 13, Line 20technical assistance and advice and to supply other services

• Page 14, Line 1related to the conduct of the affairs of the enterprise without

• Page 14, Line 2regard to the "Procurement Code", articles 101 to 112 of title

• Page 14, Line 324. The enterprise may contract with the department for the

• Page 14, Line 4provision of office space and administrative staff to the enterprise at a fair market rate.

• Page 14, Line 5(e)  To impose the stewardship fee on geologic storage operators;

• Page 14, Line 6(f)  To have and exercise all rights and powers necessary

• Page 14, Line 7or incidental to or implied from the specific powers and duties granted by this section; and

• Page 14, Line 8(g)  To perform all acts necessary to accomplish site

• Page 14, Line 9closures pursuant to commission rules for orphaned geologic storage facilities.

• Page 14, Line 10(6)  Stewardship fees - rules. (a)  On or before April 30, 2026,

• Page 14, Line 11and on or before April 30 each year thereafter, each geologic

• Page 14, Line 12storage operator shall pay a stewardship fee to the commission,

• Page 14, Line 13which shall collect the stewardship fee on the enterprise's

• Page 14, Line 14behalf, for each ton of injection carbon dioxide that the geologic storage operator injects in the state.

• Page 14, Line 15(b)  Money collected as stewardship fees shall be credited to the geologic storage stewardship enterprise cash fund.

• Page 14, Line 16(c)  The money collected by the commission for transfer to

• Page 14, Line 17the geologic storage stewardship enterprise cash fund pursuant to subsection (6)(b) of this section is:

• Page 14, Line 18(I)  Collected for the enterprise;

• Page 14, Line 19(II)  Custodial money intended for the enterprise and held

• Page 14, Line 20temporarily by the commission and the state treasurer solely

• Page 15, Line 1for the purpose of transferring the money to the geologic storage stewardship enterprise cash fund; and

• Page 15, Line 2(III)  Based on the enterprise's status as an enterprise, not

• Page 15, Line 3subject to section 20 of article X of the state constitution at any time during the money's collection, transfer, and use.

• Page 15, Line 4(d)  The commission may adopt rules to implement this subsection (6).

• Page 15, Line 5(7)  Geologic storage stewardship enterprise cash fund - repeal.

• Page 15, Line 6(a)  The geologic storage stewardship enterprise cash fund is

• Page 15, Line 7created in the state treasury. The geologic storage stewardship enterprise cash fund consists of:

• Page 15, Line 8(I)  Money received as stewardship fees;

• Page 15, Line 9(II)  Any money received from the issuance of revenue bonds, as described in subsection (3)(c)(II) of this section; and

• Page 15, Line 10(III)  Any other money that the general assembly may

• Page 15, Line 11appropriate or transfer to the geologic storage stewardship enterprise cash fund.

• Page 15, Line 12(b) (I)  The total amount of money credited or

• Page 15, Line 13appropriated to the geologic storage stewardship enterprise

• Page 15, Line 14cash fund as stewardship fees shall not exceed one hundred

• Page 15, Line 15million dollars in the first five years of the enterprise's existence.

• Page 15, Line 16(II)  This subsection (7)(b) is repealed, effective July 1, 2031.

• Page 15, Line 17(c)  The state treasurer shall credit all interest and

• Page 15, Line 18income derived from the deposit and investment of money in the

• Page 15, Line 19geologic storage stewardship enterprise cash fund to the

• Page 15, Line 20geologic storage stewardship enterprise cash fund. Any

• Page 16, Line 1unexpended and unencumbered money remaining in the geologic

• Page 16, Line 2storage stewardship enterprise cash fund at the end of a fiscal

• Page 16, Line 3year remains in the geologic storage stewardship enterprise

• Page 16, Line 4cash fund and shall not be credited or transferred to the general fund or to any other fund.

• Page 16, Line 5(d)  Money credited to the geologic storage stewardship

• Page 16, Line 6enterprise cash fund is continuously appropriated to the enterprise and shall be expended to pay the costs of:

• Page 16, Line 7(I)  Long-term stewardship;

• Page 16, Line 8(II)  Plugging, reclaiming, and remediating services for

• Page 16, Line 9orphaned geologic storage facilities at the request of the

• Page 16, Line 10director of the commission if the director determines that available financial assurance is insufficient; and

• Page 16, Line 11(III)  The enterprise's reasonable and necessary operating expenses.

• Page 16, Line 12(8)  Rules.The enterprise shall adopt rules as necessary to

• Page 16, Line 13implement this section. In adopting any rules concerning

• Page 16, Line 14subsection (6) of this section, the enterprise shall consult with the commission.

• Page 16, Line 15(9)  Governmental immunity.Nothing in this section

• Page 16, Line 16constitutes a waiver, abrogation, or limitation of governmental

• Page 16, Line 17immunity, as described in article 10 of title 24. Geologic storage

• Page 16, Line 18facilities, geologic storage locations, geologic storage

• Page 16, Line 19resources, injection carbon dioxide, and facilities associated

• Page 16, Line 20with geologic storage operations are not gas facilities for the

• Page 16, Line 21purposes of section 24-10-106 (1)(f) and do not constitute any

• Page 16, Line 22other area or facility for which sovereign immunity is waived pursuant to section 24-10-106 (1).

• Page 17, Line 1SECTION 3.  In Colorado Revised Statutes, 34-60-106, amend (9)(c)(IV)(D); repeal (9)(c)(IV)(D.5); and add (9.4) as follows:

• Page 17, Line 234-60-106.  Additional powers of commission - fees - rules -

• Page 17, Line 3definitions - repeal. (9) (c) (IV) (D)  A geologic storage operator shall

• Page 17, Line 4maintain the financial assurance required under by this subsection

• Page 17, Line 5(9)(c)(IV) or under any rules adopted pursuant to this subsection

• Page 17, Line 6(9)(c)(IV) until the commission approves site closure, as specified in rules

• Page 17, Line 7adopted by the commission. Except as described in subsection (9.4)

• Page 17, Line 8of this section, commission approval of a site closure does not

• Page 17, Line 9otherwise modify an operator's responsibility to comply with applicable laws.

• Page 17, Line 10(D.5)  If a geologic storage operator makes a material

• Page 17, Line 11misrepresentation or omission that causes the commission to approve a

• Page 17, Line 12site closure pursuant to subsection (9)(c)(IV)(D) of this section, the

• Page 17, Line 13commission may reimpose any regulatory responsibility or financial

• Page 17, Line 14assurance obligation imposed on the geologic storage operator pursuant to subsection (9)(c)(IV)(A) of this section.

• Page 17, Line 15(9.4) (a)  Before the commission approves a site closure,

• Page 17, Line 16title to the injection carbon dioxide stored by a geologic

• Page 17, Line 17storage operator remains with the geologic storage operator

• Page 17, Line 18or any party to which the geologic storage operator transferred title.

• Page 17, Line 19(b)  In addition to any criteria for site closure required by

• Page 17, Line 20rules adopted by the commission, the commission shall not

• Page 17, Line 21approve a site closure until the commission has determined that

• Page 17, Line 22the geologic storage operator requesting the site closure has

• Page 18, Line 1contributed money to the geologic storage stewardship

• Page 18, Line 2enterprise cash fund created in section 34-60-144 (7) in an

• Page 18, Line 3amount sufficient to pay for long-term stewardship of the

• Page 18, Line 4geologic storage facility for which the operator requests the site closure.

• Page 18, Line 5(c)  Upon approval by the commission of a site closure:

• Page 18, Line 6(I)  Ownership of the injection carbon dioxide and

• Page 18, Line 7ownership of any remaining geologic storage facilities,

• Page 18, Line 8including those used to inject, monitor, or store injection

• Page 18, Line 9carbon dioxide, transfer to the state without payment of compensation;

• Page 18, Line 10(II)  The geologic storage stewardship enterprise created

• Page 18, Line 11in section 34-60-144 shall undertake long-term stewardship of

• Page 18, Line 12the injection carbon dioxide and any associated geologic storage facility; and

• Page 18, Line 13(III)  The geologic storage operator is released from all

• Page 18, Line 14further regulatory liability associated with the geologic

• Page 18, Line 15storage operations or associated geologic storage facility, except as provided in subsection (9.4)(d) of this section.

• Page 18, Line 16(d)  Regulatory liability remains with the geologic

• Page 18, Line 17storage operator to the extent that the commission determines, after notice and hearing, that:

• Page 18, Line 18(I)  The geologic storage operator violated a state law or

• Page 18, Line 19regulation related to the geologic storage operations or any

• Page 18, Line 20associated geologic storage facility that was not remedied

• Page 18, Line 21prior to approval of site closure and any applicable statutes of

• Page 18, Line 22limitation have not run;

• Page 19, Line 1(II)  The geologic storage operator provided deficient or

• Page 19, Line 2erroneous information that was material and relied upon by the commission to support the site closure;

• Page 19, Line 3(III)  Liability arises from conduct of the geologic storage

• Page 19, Line 4operator associated with the geologic storage operations or

• Page 19, Line 5any associated geologic storage facility and, if the commission

• Page 19, Line 6had known of the conduct at the time of considering the request

• Page 19, Line 7to approve site closure, such knowledge would have materially affected the commission's decision to approve site closure; or

• Page 19, Line 8(IV)  There is fluid migration for which the geologic

• Page 19, Line 9storage operator is responsible that causes or threatens to

• Page 19, Line 10cause imminent and substantial endangerment to an underground source of drinking water.

• Page 19, Line 11(e)  After notice and hearing, the commission may reimpose

• Page 19, Line 12any regulatory liability from which the geologic storage

• Page 19, Line 13operator has been released pursuant to subsection (9.4)(c)(III) of

• Page 19, Line 14this section and financial assurance obligations, if the commission determines that:

• Page 19, Line 15(I)  The geologic storage operator made a material

• Page 19, Line 16misrepresentation or omission that caused the commission to approve a site closure;

• Page 19, Line 17(II)  The geologic storage operator violated a duty

• Page 19, Line 18imposed on the operator by state law, including by rules, prior

• Page 19, Line 19to approval of a site closure and any applicable statutes of limitation have not run; or

• Page 19, Line 20(III)  There is migration of the injection carbon dioxide for

• Page 19, Line 21which the geologic storage operator is responsible that causes

• Page 20, Line 1or threatens to cause imminent and substantial endangerment to an underground source of drinking water.

• Page 20, Line 2(f)  Nothing in this subsection (9.4) waives, abrogates, or

• Page 20, Line 3limits governmental immunity, as described in article 10 of title

• Page 20, Line 424. Geologic storage facilities, geologic storage locations,

• Page 20, Line 5geologic storage resources, injection carbon dioxide, and

• Page 20, Line 6facilities associated with geologic storage operations are not

• Page 20, Line 7gas facilities for the purposes of section 24-10-106 (1)(f) and do

• Page 20, Line 8not constitute any other area or facility for which sovereign immunity is waived pursuant to section 24-10-106 (1).

• Page 20, Line 9SECTION 4.  In Colorado Revised Statutes, 37-80-111.5, amend (1)(d) as follows:

• Page 20, Line 1037-80-111.5.  Fees - rules - satellite monitoring system cash

• Page 20, Line 11fund - well inspection cash fund - created. (1) (d)  Of each fee collected

• Page 20, Line 12pursuant to sections 37-90-105 (3)(a)(I) and (4)(a); 37-90-107 (7)(d)(I);

• Page 20, Line 1337-90-116 (1)(a), (1)(c), and (1)(h); 37-90-137 (2)(a); 37-90.5-106;

• Page 20, Line 1437-90.5-107; and 37-92-602 (3)(a) and (5), forty dollars a portion shall

• Page 20, Line 15be credited to the well inspection cash fund, which fund is hereby created.

• Page 20, Line 16Moneys The amount of the portion transferred to the well

• Page 20, Line 17inspection cash fund is forty dollars, and this amount may be

• Page 20, Line 18modified by rules adopted by the board of examiners pursuant to

• Page 20, Line 19section 37-91-104 (1)(c). Money in the well inspection cash fund shall

• Page 20, Line 20be continuously appropriated to and expended by the state engineer for

• Page 20, Line 21the purposes established in section 37-91-113. Any moneys money

• Page 20, Line 22credited to the well inspection cash fund and unexpended at the end of

• Page 20, Line 23any given state fiscal year remain remains in the fund and do does not

• Page 20, Line 24revert to the general fund. All interest derived from the deposit and

• Page 21, Line 1investment of this fund remain remains in the fund and do does not revert to the general fund.

• Page 21, Line 2SECTION 5.  In Colorado Revised Statutes, 37-80-111.7, amend (2) introductory portion and (2)(b) as follows:

• Page 21, Line 337-80-111.7.  Water resources cash fund - created - uses.

• Page 21, Line 4(2)  The state engineer shall collect the following fees and transmit them

• Page 21, Line 5to the state treasurer, who shall credit them to the fund, except as

• Page 21, Line 6specified in paragraph (b) of this subsection (2) subsection (2)(b) of this section:

• Page 21, Line 7(b)  The state engineer shall collect fees pursuant to sections

• Page 21, Line 837-90-105 (3)(a) and (4); 37-90-107 (7)(c)(I) and (7)(d)(I); 37-90-108 (4)

• Page 21, Line 9and (6); 37-90-116 (1)(a), (1)(c), (1)(h), and (1)(i); 37-90-137 (2), (3)(a),

• Page 21, Line 10and (3)(c); 37-90.5-106; 37-90.5-107; 37-92-305 (17); 37-92-308; and

• Page 21, Line 1137-92-602 (1)(g)(III)(C), (3)(a), and (5). The state treasurer shall credit

• Page 21, Line 12the fees collected pursuant to this paragraph (b) subsection (2)(b) to the fund except as specified in section 37-80-111.5 (1)(d).

• Page 21, Line 13SECTION 6.  In Colorado Revised Statutes, 37-90-103, amend (10.5) as follows:

• Page 21, Line 1437-90-103.  Definitions - repeal. As used in this article 90, unless the context otherwise requires:

• Page 21, Line 15(10.5)  "Nontributary groundwater" means that groundwater,

• Page 21, Line 16located outside the boundaries of any designated groundwater basins in

• Page 21, Line 17existence on January 1, 1985 excluding designated groundwater,

• Page 21, Line 18the withdrawal of which will not, within one hundred years of continuous

• Page 21, Line 19withdrawal, deplete the flow of a natural stream, including a natural

• Page 21, Line 20stream as defined in sections 37-82-101 (2) and 37-92-102 (1)(b), at an

• Page 21, Line 21annual rate greater than one-tenth of one percent of the annual rate of

• Page 22, Line 1withdrawal. The determination of whether groundwater is nontributary

• Page 22, Line 2shall be based on aquifer conditions existing at the time of permit

• Page 22, Line 3application; except that, in recognition of the de minimis amount of water

• Page 22, Line 4discharging from the Dawson, Denver, Arapahoe, and Laramie-Fox Hills

• Page 22, Line 5aquifers into surface streams due to artesian pressure, when compared

• Page 22, Line 6with the great economic importance of the groundwater in those aquifers,

• Page 22, Line 7and the feasibility and requirement of full augmentation by wells located

• Page 22, Line 8in the tributary portions of those aquifers, it is specifically found and

• Page 22, Line 9declared that, in determining whether groundwater of the Dawson,

• Page 22, Line 10Denver, Arapahoe, and Laramie-Fox Hills aquifers is nontributary, it shall

• Page 22, Line 11be assumed that the hydrostatic pressure level in each such aquifer has

• Page 22, Line 12been lowered at least to the top of that aquifer throughout that aquifer;

• Page 22, Line 13except that not nontributary groundwater, as defined in subsection (10.7)

• Page 22, Line 14of this section, in the Denver basin shall not become nontributary

• Page 22, Line 15groundwater as a result of the aquifer's hydrostatic pressure level

• Page 22, Line 16dropping below the alluvium of an adjacent stream due to Denver basin

• Page 22, Line 17well pumping activity. Nothing in this subsection (10.5) shall preclude

• Page 22, Line 18precludes the designation of any aquifer or basin, or any portion thereof,

• Page 22, Line 19which of an aquifer or basin, that is otherwise eligible for

• Page 22, Line 20designation under the standard set forth in subsection (6) of this section

• Page 22, Line 21relating to groundwater in areas not adjacent to a continuously flowing

• Page 22, Line 22natural stream wherein groundwater withdrawals have constituted the

• Page 22, Line 23principal water usage for at least fifteen years preceding the date of the first hearing on the proposed designation of a basin.

• Page 22, Line 24SECTION 7.  In Colorado Revised Statutes, 37-90-137, amend

• Page 22, Line 25(2)(a)(II), (2)(b)(I), (2)(b)(II) introductory portion, (2)(b)(II)(A),

• Page 22, Line 26(2)(b)(II)(B), and (2)(c); and add (2)(e) and (7.5) as follows:

• Page 23, Line 137-90-137.  Permits to construct wells outside designated

• Page 23, Line 2basins - fees - permit no groundwater right - evidence - time

• Page 23, Line 3limitation - well permits - rules - definition. (2) (a) (II)  Effective July

• Page 23, Line 41, 2006, upon receipt of an application for a replacement well or a new,

• Page 23, Line 5increased, or additional supply of groundwater from an area outside the

• Page 23, Line 6boundaries of a designated groundwater basin, accompanied by a filing

• Page 23, Line 7fee of one hundred dollars, the state engineer shall make a determination

• Page 23, Line 8as to whether or not the exercise of the requested permit will materially

• Page 23, Line 9injure the vested water rights or prior geothermal operations of others.

• Page 23, Line 10(b) (I)  The state engineer shall issue a permit to construct a well only if:

• Page 23, Line 11(A)  The state engineer finds, as substantiated by hydrological and

• Page 23, Line 12geological facts, that there is unappropriated water available for

• Page 23, Line 13withdrawal by the proposed well and that the vested water rights or prior geothermal operations of others will not be materially injured; and

• Page 23, Line 14(B)  Except as specified in subparagraph (II) of this paragraph (b)

• Page 23, Line 15subsection (2)(b)(II) of this section, the location of the proposed well

• Page 23, Line 16will be more than six hundred feet from an existing well completed in

• Page 23, Line 17the same aquifer and more than one-fourth of a mile from a prior geothermal operation completed in the same aquifer.

• Page 23, Line 18(II)  If the state engineer, after a hearing, finds that circumstances

• Page 23, Line 19in a particular instance so warrant, or if a court decree is entered for the

• Page 23, Line 20proposed well location after notice has been given in accordance with

• Page 23, Line 21sub-subparagraph (B) of this subparagraph (II) subsection (2)(b)(II)(B)

• Page 23, Line 22of this section, the state engineer may issue a permit without regard to

• Page 23, Line 23the limitation specified in sub-subparagraph (B) of subparagraph (I) of

• Page 24, Line 1this paragraph (b) subsection (2)(b)(I)(B) of this section; except that

• Page 24, Line 2no a hearing shall be is not required and the state engineer may issue a

• Page 24, Line 3well permit without regard to the limitation specified in sub-subparagraph

• Page 24, Line 4(B) of subparagraph (I) of this paragraph (b) subsection (2)(b)(I)(B) of this section:

• Page 24, Line 5(A)  If the state engineer notifies the owners of all wells within six

• Page 24, Line 6hundred feet of the proposed well by certified mail and receives no

• Page 24, Line 7response within the time set forth in the notice, and the proposed well

• Page 24, Line 8is located within one-fourth of a mile of a prior geothermal

• Page 24, Line 9operation, and the state engineer notifies the operator of the

• Page 24, Line 10prior geothermal operation by certified mail and the energy and

• Page 24, Line 11carbon management commission by electronic mail and receives no response within the time frame set forth in the notice;

• Page 24, Line 12(B)  If the proposed well is part of a water court proceeding

• Page 24, Line 13adjudicating the water right for the well, or if the proposed well is part of

• Page 24, Line 14an adjudication of a plan for augmentation or change of water right and

• Page 24, Line 15if evidence is provided to the water court that the applicant has given

• Page 24, Line 16notice of the water court application, at least fourteen days before making

• Page 24, Line 17the application, by registered or certified mail, return receipt requested,

• Page 24, Line 18to the owners of record of all wells within six hundred feet of the

• Page 24, Line 19proposed well and to all operators of prior geothermal operations within one-fourth of a mile of the proposed well;

• Page 24, Line 20(c)  The permit shall set forth such the conditions for drilling,

• Page 24, Line 21casing, and equipping wells and other diversion facilities as are

• Page 24, Line 22reasonably necessary to prevent waste, pollution, or material injury to existing rights or prior geothermal operations.

• Page 24, Line 23(e)  As used in this subsection (2), unless the context

• Page 25, Line 1otherwise requires, "prior geothermal operation" has the meaning set forth in section 37-90.5-103 (14.5).

• Page 25, Line 2(7.5) (a)  Except as required by subsection (7.5)(b) of this

• Page 25, Line 3section, a permit from the state engineer is not required in the

• Page 25, Line 4case of withdrawing nontributary groundwater from a geologic

• Page 25, Line 5formation if the withdrawal is permitted as a deep geothermal

• Page 25, Line 6operation, as defined in section 37-90.5-103 (3), and the

• Page 25, Line 7withdrawn nontributary groundwater will be used only for operations to extract or utilize heat, including:

• Page 25, Line 8(I)  Generating electricity;

• (II)  Heating and cooling buildings;

• Page 25, Line 9(III)  Heating swimming pools, public bathhouses, or developed hot springs facilities;

• Page 25, Line 10(IV)  Heating aquaculture;

• (V)  Melting snow or ice;

• Page 25, Line 11(VI)  Heating to facilitate carbon dioxide capture or hydrogen production;

• Page 25, Line 12(VII)  Deep geothermal exploration, resource confirmation, or reservoir enhancement; and

• Page 25, Line 13(VIII)  Heating and drying for other industrial processes.

• Page 25, Line 14(b)  A well permit is required if the operator will use the

• Page 25, Line 15nontributary groundwater for additional beneficial uses unrelated to the extraction or utilization of heat.

• Page 25, Line 16SECTION 8.  In Colorado Revised Statutes, 37-90.5-103, amend (1)(b) and (3)(c)(II); repeal (13); and add (14.5) as follows:

• Page 25, Line 1737-90.5-103.  Definitions. As used in this article 90.5, unless the

• Page 25, Line 18context otherwise requires:

• Page 26, Line 1(1) (b)  "Allocated geothermal resource" does not include

• Page 26, Line 2groundwater in the Denver basin aquifers or nontributary

• Page 26, Line 3groundwater aquifers entirely located shallower than two thousand five hundred feet.

• Page 26, Line 4(3) (c)  "Deep geothermal operation" does not include:

• Page 26, Line 5(II)  The use of any heat extracted with produced fluids in an oil

• Page 26, Line 6and gas operation if the utilization of the heat is only utilized to reduce

• Page 26, Line 7emissions from the operation in the same location as the well from which

• Page 26, Line 8it was produced and would otherwise not be economically feasible as a standalone geothermal resource project.

• Page 26, Line 9(13)  "Nonconsumptive geothermal operation" means an operation

• Page 26, Line 10using geothermal resources in which the volume of geothermal fluid

• Page 26, Line 11extracted from an aquifer or formation is no more than the volume of the

• Page 26, Line 12geothermal fluid reinjected in the same aquifer or formation over a reasonable time frame and distance.

• Page 26, Line 13(14.5)  "Prior geothermal operation" means a geothermal

• Page 26, Line 14well, operation, district, or unit authorized by the state

• Page 26, Line 15engineer or the energy and carbon management commission pursuant to this article 90.5.

• Page 26, Line 16SECTION 9.  In Colorado Revised Statutes, 37-90.5-104, amend (2) and (4); and repeal (5) as follows:

• Page 26, Line 1737-90.5-104.  Ownership declaration. (2)  The property right to

• Page 26, Line 18a hot dry rock resource or a geothermal resource associated with

• Page 26, Line 19nontributary groundwater is an incident of the ownership of the overlying

• Page 26, Line 20surface, unless the property right is severed, reserved, or transferred with

• Page 26, Line 21the subsurface estate expressly or is otherwise expressly separate

• Page 26, Line 22from the surface estate. Geothermal resources associated with

• Page 27, Line 1nontributary groundwater shall not be transferred separately

• Page 27, Line 2from the nontributary groundwater. With respect to any

• Page 27, Line 3severance, reservation, or transfer occurring after July 1, 2025:

• Page 27, Line 4(a)  For any severance, reservation, or transfer of

• Page 27, Line 5nontributary groundwater, there is a rebuttable presumption

• Page 27, Line 6that the severance, reservation, or transfer includes any

• Page 27, Line 7associated geothermal resources unless the severance, reservation, or transfer expressly states otherwise; and

• Page 27, Line 8(b)  For any severance, reservation, or transfer of

• Page 27, Line 9geothermal resources associated with nontributary

• Page 27, Line 10groundwater, there is a rebuttable presumption that the

• Page 27, Line 11severance, reservation, or transfer includes the associated

• Page 27, Line 12nontributary groundwater unless the severance, reservation, or transfer expressly states otherwise.

• Page 27, Line 13(4)  Notwithstanding any provision of this section to the contrary, nothing in this section:

• Page 27, Line 14(a)  Derogates the rights of a landowner to nontributary groundwater; or

• Page 27, Line 15(b)  Affects any ownership or rights to a geothermal resource

• Page 27, Line 16associated with nontributary groundwater, which resource is acquired before July 1, 2023; or

• Page 27, Line 17(c)  Prevents an owner of nontributary groundwater

• Page 27, Line 18rights from accessing nontributary groundwater for

• Page 27, Line 19nongeothermal purposes that will not materially injure a valid prior geothermal operation.

• Page 27, Line 20(5)  Notwithstanding any provision of this section to the contrary,

• Page 28, Line 1geothermal resources associated with nontributary groundwater shall not be transferred separately from the nontributary groundwater.

• Page 28, Line 2SECTION 10.  In Colorado Revised Statutes, 37-90.5-106,

• Page 28, Line 3amend (1)(a)(I), (1)(a)(II), (1)(b)(III), (3), and (6); and add (2)(c) as follows:

• Page 28, Line 437-90.5-106.  Regulation of geothermal resource operations -

• Page 28, Line 5reinjection - fees - rules. (1) (a) (I)  The state engineer has and the

• Page 28, Line 6board of examiners of water well and ground heat exchanger

• Page 28, Line 7contractors created in section 37-91-103 have the exclusive

• Page 28, Line 8authority to regulate shallow geothermal operations and may adopt rules that regulate shallow geothermal operations.

• Page 28, Line 9(II)  Prior to Before constructing a test bore, ground heat

• Page 28, Line 10exchanger, monitoring well, or production well or reworking an

• Page 28, Line 11existing well associated with shallow geothermal operations, a person

• Page 28, Line 12shall obtain an operations permit must be obtained from the state engineer.

• Page 28, Line 13(b) (III)  In issuing an operations permit pursuant to subsection (1)(b)(II) of this section, the commission:

• Page 28, Line 14(A)  May allow for the use of groundwater as part of

• Page 28, Line 15nonconsumptive geothermal operations pursuant to section 37-90-137

• Page 28, Line 16(7.5)(a) as a material medium for allocated geothermal resources that

• Page 28, Line 17have been determined to be nontributary pursuant to section 37-90.5-107 (1)(b); and

• Page 28, Line 18(B)  Shall, to the extent practicable, ensure that the

• Page 28, Line 19proposed operation will not materially injure a valid prior geothermal operation.

• Page 28, Line 20(2) (c)  The commission may enforce rules adopted pursuant to this subsection (2) in accordance with section 34-60-121.

• Page 29, Line 1(3)  Where the maintenance of underground pressures, the

• Page 29, Line 2prevention of subsidence, or the disposal of brines is necessary,

• Page 29, Line 3reinjection of geothermal fluid or water may be required by the state engineer or the commission.

• Page 29, Line 4(6) (a)  On and after July 1, 2023, Except as set forth in subsection

• Page 29, Line 5(6)(b)(II) of this section, the commission is responsible for administering

• Page 29, Line 6and enforcing any permits issued by the state engineer pursuant to this section that cover deep geothermal operations.

• Page 29, Line 7(b)  The powers, duties, functions, and obligations concerning

• Page 29, Line 8permits issued by the state engineer pursuant to this section that cover

• Page 29, Line 9deep geothermal operations are transferred, effective July 1, 2023, to the

• Page 29, Line 10commission. The state engineer retains or the board of examiners of

• Page 29, Line 11water well and ground heat exchanger contractors may

• Page 29, Line 12exercise any powers, duties, functions, and obligations power, duty,

• Page 29, Line 13function, or obligation necessary to issue, administer, and enforce any permits or licenses that cover:

• Page 29, Line 14(I)  Shallow geothermal operations; and

• Page 29, Line 15(II)  The use of geothermal fluid in deep geothermal operations

• Page 29, Line 16pursuant to section 37-90.5-107, except for nonconsumptive deep geothermal operations subject to section 37-90-137 (7.5)(a).

• Page 29, Line 17(c)  The rules of the state engineer pertaining to the powers, duties,

• Page 29, Line 18functions, and obligations transferred to the commission pursuant to

• Page 29, Line 19subsection (6)(b) of this section continue in effect and apply to the

• Page 29, Line 20commission until the rules are replaced by rules adopted by the commission pursuant to subsection (1)(b)(I) of this section.

• Page 29, Line 21(d)  The commission and the state engineer shall enter into

• Page 30, Line 1memoranda of understanding, interagency agreements, or both, as

• Page 30, Line 2appropriate, to provide for the timely transfer of the powers, duties,

• Page 30, Line 3functions, and obligations transferred to the commission pursuant to subsection (6)(b) of this section.

• Page 30, Line 4SECTION 11.  In Colorado Revised Statutes, 37-90.5-107, amend (1)(a) and (4); and repeal (3)(b) and (3)(d) as follows:

• Page 30, Line 537-90.5-107.  Permits for the use of geothermal resources -

• Page 30, Line 6rules. (1) (a)  After receipt of the necessary application, the state engineer

• Page 30, Line 7shall issue a use permit to use distributed geothermal resources consistent

• Page 30, Line 8with the requirements described in section 37-90-137 section 37-90-107, 37-90-108, 37-90-109, or 37-90-137.

• Page 30, Line 9(3) (b)  The requirement to issue a use permit pursuant to

• Page 30, Line 10subsection (1)(b) of this section does not apply to operations that are

• Page 30, Line 11solely nonconsumptive geothermal operations using allocated geothermal resources.

• Page 30, Line 12(d)  The use permit issued pursuant to subsection (1) of this section

• Page 30, Line 13may allow for nonconsumptive secondary uses of geothermal fluid,

• Page 30, Line 14including the recovery of geothermal by-products, and may allow for

• Page 30, Line 15consumptive secondary uses of geothermal fluid, including sale, which do not impair valid, prior water rights.

• Page 30, Line 16(4)  Notwithstanding any provision of this section to the contrary,

• Page 30, Line 17section 37-90-137 (4) applies to any consumptive beneficial use of

• Page 30, Line 18allocated geothermal resources, except for those operations described in section 37-90-137 (7.5)(a).

• Page 30, Line 19SECTION 12.  In Colorado Revised Statutes, 37-90.5-111, amend (1)(b) as follows:

• Page 30, Line 2037-90.5-111.  Coordination between the commission and the

• Page 31, Line 1state engineer. (1)  When an operations permit is issued by the

• Page 31, Line 2commission pursuant to section 37-90.5-106 (1)(b)(II) and a use permit

• Page 31, Line 3is issued by the state engineer pursuant to section 37-90.5-107 (1), the commission and the state engineer shall coordinate to:

• Page 31, Line 4(b)  Determine whether an accounting for the use and reinjection

• Page 31, Line 5of geothermal fluid or water pursuant to the applicable permit may be

• Page 31, Line 6submitted to only the commission, or only to the state engineer, or to both.

• Page 31, Line 7SECTION 13.  In Colorado Revised Statutes, amend 37-91-101 as follows:

• Page 31, Line 837-91-101.  Legislative declaration. (1)  The general assembly hereby finds, determines, and declares that:

• Page 31, Line 9(a)  It has been established by Scientific evidence has

• Page 31, Line 10established that improperly constructed wells, improperly abandoned

• Page 31, Line 11wells, improperly constructed or abandoned ground heat

• Page 31, Line 12exchangers, and improperly installed pumping equipment can adversely

• Page 31, Line 13affect groundwater resources and the public health, safety, and welfare; and

• Page 31, Line 14(b)  Therefore, the proper location, construction, repair, and

• Page 31, Line 15abandonment of wells; the proper location, construction, repair,

• Page 31, Line 16and abandonment of ground heat exchangers; the proper

• Page 31, Line 17installation and repair of pumping equipment; the licensing and regulation

• Page 31, Line 18of persons engaging in the business of contracting either for the

• Page 31, Line 19construction of wells, the construction of ground heat

• Page 31, Line 20exchangers, or for the installation of pumping equipment; and the

• Page 31, Line 21periodic inspection of well construction, ground heat exchanger

• Page 31, Line 22construction, and pump installation are essential for the protection of

• Page 32, Line 1the public health, safety, and welfare and the preservation of groundwater resources.

• Page 32, Line 2SECTION 14.  In Colorado Revised Statutes, 37-91-102, amend

• Page 32, Line 3(3), (10), (10.5), (14), (15), (15.5), (16)(b)(I)(B), (16)(b)(I)(C),

• Page 32, Line 4(16)(b)(II), and (17); and add (4.1), (6.5), (6.7), (7.5), and (16)(b)(I)(D) as follows:

• Page 32, Line 537-91-102.  Definitions. As used in this article 91, unless the context otherwise requires:

• Page 32, Line 6(3)  "Board" means the state board of examiners of water well

• Page 32, Line 7construction and pump installation and ground heat exchanger contractors created by in section 37-91-103.

• Page 32, Line 8(4.1) (a)  "Construction or installation of a ground heat

• Page 32, Line 9exchanger" means any act undertaken at a ground heat

• Page 32, Line 10exchanger site for the establishment or modification of a ground heat exchanger.

• Page 32, Line 11(b)  "Construction or installation of a ground heat

• Page 32, Line 12exchanger" includes the locating of a ground heat exchanger

• Page 32, Line 13and the excavating or fracturing necessary to install a ground heat exchanger.

• Page 32, Line 14(c)  "Construction or installation of a ground heat

• Page 32, Line 15exchanger" does not include surveying, site preparation, site modification, or other preparatory acts.

• Page 32, Line 16(6.5)  "Ground heat exchanger" means a continuous,

• Page 32, Line 17sealed, subsurface heat exchanger consisting of a closed loop

• Page 32, Line 18through which a heat-transfer fluid passes to and returns from

• Page 32, Line 19a heat pump or manifold. A ground heat exchanger may be

• Page 32, Line 20vertically or horizontally configured or submerged in surface water.

• Page 33, Line 1(6.7)  "Ground heat exchanger contractor" means an

• Page 33, Line 2individual licensed pursuant to this article 91 who is responsible

• Page 33, Line 3for the drilling, construction, grouting, repair, testing, or

• Page 33, Line 4abandonment of a ground heat exchanger, either by contract or for hire, for any consideration whatsoever.

• Page 33, Line 5(7.5)  "Heat-transfer fluid" means a fluid heat-transfer

• Page 33, Line 6medium to convey thermal energy to and from the thermal source or sink.

• Page 33, Line 7(10)  "License" means the document issued by the board to a

• Page 33, Line 8qualified persons making application therefor, applicant pursuant to

• Page 33, Line 9section 37-91-105, authorizing such persons which document

• Page 33, Line 10authorizes the applicant to engage in one or more methods of well

• Page 33, Line 11construction, ground heat exchanger construction, or pump installation or any combination of such methods.

• Page 33, Line 12(10.5)  "Monitoring and observation well" includes any excavation

• Page 33, Line 13that is drilled, cored, bored, washed, fractured, driven, dug, jetted, or

• Page 33, Line 14otherwise constructed when the intended use of such the excavation is

• Page 33, Line 15for locating such a well, pumping equipment or aquifer testing,

• Page 33, Line 16monitoring groundwater, groundwater remediation, or collection of water quality samples.

• Page 33, Line 17(14)  "Pump installation contractor" means any person an

• Page 33, Line 18individual licensed to install, remove, modify, or repair pumping equipment for compensation.

• Page 33, Line 19(15)  "Repair" means:

• Page 33, Line 20(a)  Any change, replacement, or other alteration of any well or

• Page 33, Line 21pumping equipment which that requires a breaking or opening of the

• Page 34, Line 1well seal or any waterlines up to and including the pressure tank and any coupling appurtenant thereto to the pressure tank; or

• Page 34, Line 2(b)  Any change, replacement, or other alteration of a

• Page 34, Line 3ground heat exchanger that requires excavation of any portion

• Page 34, Line 4of the ground heat exchanger to repair or replace components

• Page 34, Line 5of surface casing, piping or grout within the borefield, or piping between the borefield and the manifold.

• Page 34, Line 6(15.5)  "Supervision" means personal and continuous on-the-site

• Page 34, Line 7on-site direction by a licensed well construction contractor, licensed

• Page 34, Line 8ground heat exchanger contractor, or licensed pump installation

• Page 34, Line 9contractor, unless the licensed contractor has applied for and received

• Page 34, Line 10from the board an exemption from continuous on-the-site on-site direction for a specific task.

• Page 34, Line 11(16) (b) (I)  "Well" does not include:

• Page 34, Line 12(B)  An excavation made for the purpose of obtaining or

• Page 34, Line 13prospecting for minerals or those wells subject to the jurisdiction of the

• Page 34, Line 14energy and carbon management commission, as provided in article 60 of title 34 or in article 90.5 of this title 37;

• Page 34, Line 15(C)  Wells A well subject to the jurisdiction of the office of mined

• Page 34, Line 16land reclamation division of reclamation, mining, and safety, as provided in article 33 articles 32 to 34 of title 34; or

• Page 34, Line 17(D)  Recharge basins or infiltration basins that are

• Page 34, Line 18constructed in such a manner that the intent of their design is to remain above the groundwater level.

• Page 34, Line 19(II)  "Well" does not include a naturally flowing spring or springs

• Page 34, Line 20where the natural spring discharge is captured or concentrated by

• Page 34, Line 21installation of a near-surface structure or device less then than ten feet

• Page 35, Line 1in depth located at or within fifty feet of the spring or springs' natural

• Page 35, Line 2discharge point and the water is conveyed directly by gravity flow or into

• Page 35, Line 3a separate sump or storage, if so long as the owner obtains a water right

• Page 35, Line 4for such the structure or device as a spring pursuant to article 92 of this title title 37.

• Page 35, Line 5(17)  "Well construction contractor" means any person an

• Page 35, Line 6individual licensed pursuant to this article article 91 and responsible

• Page 35, Line 7for the construction, test-pumping, or development of wells, either by contract or for hire, or for any consideration whatsoever.

• Page 35, Line 8SECTION 15.  In Colorado Revised Statutes, 37-91-103, amend (1) and (3) as follows:

• Page 35, Line 937-91-103.  State board of examiners of water well and ground

• Page 35, Line 10heat exchanger contractors. (1) (a)  There is created, in the division of

• Page 35, Line 11water resources in the department of natural resources, a The state board

• Page 35, Line 12of examiners of water well construction and pump installation and

• Page 35, Line 13ground heat exchanger contractors consisting of five members and

• Page 35, Line 14comprised of is created in the division of water resources within

• Page 35, Line 15the department of natural resources. The board includes the following persons six individuals:

• Page 35, Line 16(I)  The state engineer or a representative designated by the state engineer engineer's designee;

• Page 35, Line 17(II)  A representative of the department of public health and environment designated by the executive director of the department; and

• Page 35, Line 18(III)  three Four members appointed by the governor, two of

• Page 35, Line 19whom must shall be well construction contractors or pump installation

• Page 35, Line 20contractors, each with a minimum of ten years' experience in the well

• Page 35, Line 21construction or pump installation business preceding the individual's

• Page 36, Line 1appointment, and one of whom must shall be an engineer or geologist

• Page 36, Line 2with a minimum of ten years' experience in water supply and well

• Page 36, Line 3construction preceding the individual's appointment, and one of whom

• Page 36, Line 4shall be an individual with a minimum of ten years' experience

• Page 36, Line 5relating to ground heat exchangers preceding the individual's appointment.

• Page 36, Line 6(b)  The state board of examiners of water well construction and

• Page 36, Line 7pump installation and ground heat exchanger contractors is a type 1 entity, as defined in section 24-1-105.

• Page 36, Line 8(3)  The board shall meet at least once every three months and at

• Page 36, Line 9such other times as it deems necessary or advisable. Special Board

• Page 36, Line 10meetings may be called at any time on order of the chairman chair or

• Page 36, Line 11vice-chairman vice-chair or any three four members of the board. The

• Page 36, Line 12board shall determine the time and place of all meetings, but at least one

• Page 36, Line 13meeting every three months shall be held in Denver. Three Four

• Page 36, Line 14members of the board shall constitute a quorum, and the affirmative vote

• Page 36, Line 15of three at least four members shall be is required to pass any action

• Page 36, Line 16or motion of the board. The board may adopt bylaws to govern its own procedure.

• Page 36, Line 17SECTION 16.  In Colorado Revised Statutes, 37-91-104, amend (1)(b), (1)(i), and (1)(l) as follows:

• Page 36, Line 1837-91-104.  Duties of the board. (1)  The board shall:

• Page 36, Line 19(b)  Have general supervision and authority over the construction

• Page 36, Line 20and abandonment of wells, construction and abandonment of

• Page 36, Line 21ground heat exchangers, and the installation of pumping equipment, as provided by sections 37-91-109 and 37-91-110;

• Page 36, Line 22(i)  Disseminate information to pump installation contractors,

• Page 37, Line 1ground heat exchanger contractors, and well construction

• Page 37, Line 2contractors in order to protect and preserve the groundwater resources of the state;

• Page 37, Line 3(l) (I)  Assure protection of groundwater resources and the public

• Page 37, Line 4health by ordering the nondestructive investigation, abandonment, repair,

• Page 37, Line 5drilling, redrilling, casing, recasing, deepening, or excavation of a well or

• Page 37, Line 6ground heat exchanger where it the board finds such action to be

• Page 37, Line 7an order necessary to correct violations of this article article 91 or

• Page 37, Line 8rules promulgated adopted by the board with respect pursuant to this

• Page 37, Line 9article article 91 or to protect groundwater resources and the public health.

• Page 37, Line 10(II)  An existing wells well or ground heat exchanger that

• Page 37, Line 11were was constructed in compliance with the laws and regulations in

• Page 37, Line 12effect at the time of their its construction shall is not be required to be

• Page 37, Line 13repaired, redrilled, or otherwise modified to meet the current standards for

• Page 37, Line 14well construction or ground heat exchanger construction

• Page 37, Line 15contained in this article article 91 or the in rules adopted by the board

• Page 37, Line 16pursuant to this article 91. The board may order any such wells

• Page 37, Line 17well or ground heat exchanger that present presents an imminent

• Page 37, Line 18threat to public health or an imminent threat of groundwater

• Page 37, Line 19contamination may be ordered to be repaired or abandoned. The Any

• Page 37, Line 20remedial action required by the board for such wells shall a well or

• Page 37, Line 21ground heat exchanger must be the minimum repair necessary to

• Page 37, Line 22remove the threat to public health or of groundwater pollution. An order

• Page 37, Line 23to abandon a well that is issued under this article article 91 is not a

• Page 37, Line 24determination of intent to abandon any water right associated with the

• Page 37, Line 25well.

• Page 38, Line 1SECTION 17.  In Colorado Revised Statutes, 37-91-105, amend (1), (2)(d), (2.5), (5), and (7); and add (8) as follows:

• Page 38, Line 237-91-105.  Licensing - registration of rigs. (1)  Every person,

• Page 38, Line 3Before engaging in the business of contracting either for the construction

• Page 38, Line 4of wells a well,the installation of a ground heat exchanger, or

• Page 38, Line 5for the installation of pumping equipment, an individual shall obtain a

• Page 38, Line 6license for one or more methods of well construction, ground heat

• Page 38, Line 7exchanger installation, or pump installation from the board and shall

• Page 38, Line 8secure a registration from the board for each well-drilling, ground heat

• Page 38, Line 9exchanger, or pump-installing rig to be operated or leased by him or his the individual or the individual's employee.

• Page 38, Line 10(2)  The board shall issue a license to each applicant who files an

• Page 38, Line 11application upon a form and in such manner as the board prescribes,

• Page 38, Line 12accompanied by such fees and bond as required by section 37-91-107, and who furnishes evidence satisfactory to the board that the applicant:

• Page 38, Line 13(d)  Has had not less than two years' experience in the type of well

• Page 38, Line 14construction work, ground heat exchanger work, or pump

• Page 38, Line 15installation work for which the applicant is initially applying for a license; however:

• Page 38, Line 16(I)  Once a person An individual who is licensed in one or more

• Page 38, Line 17methods of well construction the person is eligible without further

• Page 38, Line 18experience to take an examination to obtain a license for a different method of well construction;

• Page 38, Line 19(II)  Once a person An individual who is licensed for installing

• Page 38, Line 20one or more types of pumps the person is eligible without further

• Page 38, Line 21experience to take an examination to obtain a license for a different type

• Page 38, Line 22of pump installation; and

• Page 39, Line 1(III)  An individual's education in an accredited program

• Page 39, Line 2approved by the board may substitute for well construction, ground

• Page 39, Line 3heat exchanger installation, or pump installation experience upon application to and acceptance by the board; and

• Page 39, Line 4(IV)  An individual's possession of a license for well

• Page 39, Line 5construction may substitute for ground heat exchanger

• Page 39, Line 6installation experience upon application to and acceptance by the board.

• Page 39, Line 7(2.5)  The board shall issue a special license for the use of special

• Page 39, Line 8equipment or limited procedures in well construction, ground heat

• Page 39, Line 9exchanger installation, or pump installation to each applicant who

• Page 39, Line 10files an application upon a form and in such manner as the board

• Page 39, Line 11prescribes, accompanied by such fees and bond as are required by section

• Page 39, Line 1237-91-107, and who furnishes evidence satisfactory to the board that he

• Page 39, Line 13the applicant meets the requirements established in subsection (2) of

• Page 39, Line 14this section; except that a special licensee shall is not be eligible to take

• Page 39, Line 15an examination to obtain a license for a different method of well

• Page 39, Line 16construction, ground heat exchanger installation, or pump

• Page 39, Line 17installation unless said the licensee has at least two years of experience

• Page 39, Line 18in the method of well construction, ground heat exchanger

• Page 39, Line 19installation, or pump installation for which the additional license is sought.

• Page 39, Line 20(5)  The examination shall must consist of an oral and written

• Page 39, Line 21examination and shall fairly test the applicant's knowledge and

• Page 39, Line 22application thereof in of the following subjects, respectively, depending on the license type:

• Page 39, Line 23(a)  For a well construction contractor license: Basics of

• Page 40, Line 1drilling methods, specific drilling methods, basics of pump installation

• Page 40, Line 2methods, specific pump installation methods, and basics of well

• Page 40, Line 3construction and his the applicant's knowledge and application of state

• Page 40, Line 4laws and local ordinances concerning the construction of wells or and rules adopted in connection with such laws and ordinances;

• Page 40, Line 5(b)  For a pump installation contractor license: Basics of

• Page 40, Line 6pump installation methods, specific pump installation methods

• Page 40, Line 7and associated pumping equipment, and the applicant's

• Page 40, Line 8knowledge and application of state laws and local ordinances

• Page 40, Line 9concerning the installation of pumping equipment or both, and rules

• Page 40, Line 10promulgated adopted in connection therewith with such laws and ordinances; and

• Page 40, Line 11(c)  For a ground heat exchanger contractor license:

• Page 40, Line 12Basics of ground heat exchanger installation, specific methods

• Page 40, Line 13related to ground heat exchanger installation, and the

• Page 40, Line 14applicant's knowledge and application of state laws and local

• Page 40, Line 15ordinances concerning the installation of ground heat

• Page 40, Line 16exchangers and rules adopted in connection with such laws and ordinances.

• Page 40, Line 17(7)  Each licensee shall complete eight hours of continuing

• Page 40, Line 18education training as approved by the board every year in order to maintain or renew a license.

• Page 40, Line 19(8) (a)  Until the governor appoints to the board a member

• Page 40, Line 20with ten or more years of ground heat exchanger experience,

• Page 40, Line 21and until the board adopts rules concerning the licensing of

• Page 40, Line 22ground heat exchanger contractors, an individual operating

• Page 40, Line 23pursuant to a permit issued from the state engineer may install

• Page 41, Line 1ground heat exchangers in accordance with rules adopted by the state engineer pursuant to section 37-90.5-106.

• Page 41, Line 2(b)  After the time frame described in subsection (8)(a) of

• Page 41, Line 3this section, an individual operating under a permit issued by the

• Page 41, Line 4state engineer who applies for a ground heat exchanger

• Page 41, Line 5contractor license is required to pass an oral examination

• Page 41, Line 6pursuant to subsection (2)(e) of this section but is not required to:

• Page 41, Line 7(I)  Demonstrate their experience pursuant to subsection (2)(d) of this section; or

• Page 41, Line 8(II)  Pass a written examination pursuant to subsection (2)(e) of this section.

• Page 41, Line 9SECTION 18.  In Colorado Revised Statutes, 37-91-106, amend (2) as follows:

• Page 41, Line 1037-91-106.  License - exemptions - rules. (2)  A license shall is

• Page 41, Line 11not be required of any person individual who performs labor or services

• Page 41, Line 12if he the individual is directly employed by, or under the supervision of,

• Page 41, Line 13a licensed well construction contractor, licensed ground heat exchanger contractor, or licensed pump installation contractor.

• Page 41, Line 14SECTION 19.  In Colorado Revised Statutes, 37-91-107, amend (2), (3), (4), (4.5), (5), and (6) as follows:

• Page 41, Line 1537-91-107.  Fees and bonds - license renewal - continuing

• Page 41, Line 16education. (2) (a)  The board shall charge require an application fee to

• Page 41, Line 17be paid in the amount of twenty dollars. to The payment of the fee

• Page 41, Line 18must accompany each application from a resident of the state. of

• Page 41, Line 19Colorado and The board shall also require an applicant to pay a

• Page 41, Line 20further fee in the amount of fifty dollars upon the applicant's

• Page 42, Line 1successful completion of the examination and before issuance of the board issues a license.

• Page 42, Line 2(b)  In addition topaying a fee pursuant to subsection (2)(a)

• Page 42, Line 3of this section, each successful resident applicant shall file and

• Page 42, Line 4maintain with the board evidence of financial responsibility in the form

• Page 42, Line 5of a savings account, deposit, or certificate of deposit in the amount of ten

• Page 42, Line 6thousand dollars, meeting the requirements of section 11-35-101, C.R.S.,

• Page 42, Line 7or an irrevocable letter of credit for the amount of ten thousand dollars,

• Page 42, Line 8meeting the requirements of section 11-35-101.5, C.R.S., or shall file and

• Page 42, Line 9maintain with the board an approved compliance bond with a corporate

• Page 42, Line 10surety authorized to do business in the state, of Colorado, in the amount

• Page 42, Line 11of ten thousand dollars, for the use and benefit of any person or the state

• Page 42, Line 12of Colorado suffering loss or damage, conditioned that such the licensee

• Page 42, Line 13will comply with the laws of the state of Colorado in engaging in the

• Page 42, Line 14business for which he the licensee receives a license and the rules of the board promulgated adopted in the regulation of such business.

• Page 42, Line 15(3) (a)  The board shall charge an application fee in the amount

• Page 42, Line 16of fifty dollars, to the payment of which application fee must

• Page 42, Line 17accompany each application from a nonresident of the state. of Colorado

• Page 42, Line 18and The board shall also charge a further nonresident fee of four

• Page 42, Line 19hundred dollars, which a nonresident shall pay upon successful completion of the examination and before the issuance of a license.

• Page 42, Line 20(b)  In addition to paying any fees required by subsection

• Page 42, Line 21(3)(a) of this section, each successful nonresident applicant shall file

• Page 42, Line 22and maintain with the board evidence of financial responsibility in the

• Page 42, Line 23form of a savings account, deposit, or certificate of deposit in the amount

• Page 42, Line 24of twenty thousand dollars, meeting the requirements of section

• Page 43, Line 111-35-101, C.R.S., or shall file and maintain with the board an approved

• Page 43, Line 2compliance bond in the amount of twenty thousand dollars with a

• Page 43, Line 3corporate surety authorized to do business in the state of Colorado for the

• Page 43, Line 4use and benefit of any person or the state of Colorado suffering loss or

• Page 43, Line 5damage, conditioned that such the licensee will shall comply with the

• Page 43, Line 6laws of the state in engaging in the business for which he the licensee

• Page 43, Line 7receives a license and the rules of adopted by the board promulgated in compliance therewith with such laws.

• Page 43, Line 8(4) (a) (I)  Every Each licensed well construction contractor,

• Page 43, Line 9licensed ground heat exchanger contractor, and licensed pump installation contractor in this state shall:

• Page 43, Line 10(A)  Pay to the board during the month of January of each year,

• Page 43, Line 11beginning in the year immediately subsequent to his or her following the licensee's initial licensing, a renewal fee of fifty dollars; shall

• Page 43, Line 12(B)  Concurrently file and thereafter maintain a new bond or letter of credit if required pursuant to this section; and shall

• Page 43, Line 13(C)  Annually file a certificate of completion of continuing education as required pursuant to section 37-91-105 (7).

• Page 43, Line 14(II)  Upon a licensee's satisfaction of the requirements

• Page 43, Line 15described in subsection (4)(a)(I) of this section, the secretary shall

• Page 43, Line 16thereupon issue a renewal license for one year. The license of any well

• Page 43, Line 17construction contractor, ground heat exchanger contractor, or

• Page 43, Line 18pump installation contractor who fails to have his or her their license

• Page 43, Line 19renewed during the month of January in each year shall lapse. Any

• Page 43, Line 20lapses. A lapsed license may be renewed, without reexamination, within

• Page 43, Line 21a period of one year after such lapse it lapses upon payment of all fees

• Page 43, Line 22in arrears. Licensees A licensee may elect to renew their licenses

• Page 44, Line 1license and file and maintain a bond or letter of credit for a term of up

• Page 44, Line 2to three years, paying fifty dollars for each year the license will be in effect.

• Page 44, Line 3(b)  The board shall not set a license renewal fee

• Page 44, Line 4described in subsection (4)(a) of this section or a rig registration

• Page 44, Line 5fee described in subsection (5) of this section in an amount

• Page 44, Line 6greater than is necessary to further the purposes of this article

• Page 44, Line 791. The amount must not cause the total amount of money

• Page 44, Line 8collected under this article 91 to exceed the direct and indirect costs of the board in administering this article 91.

• Page 44, Line 9(4.5)  A licensee shall maintain the amount of financial

• Page 44, Line 10responsibility required by subsections (2), (3), and (4) of this section for

• Page 44, Line 11the life duration of the license for which the financial responsibility is

• Page 44, Line 12required. The license of any well construction contractor, ground heat

• Page 44, Line 13exchanger contractor, or pump installation contractor who fails to

• Page 44, Line 14maintain such financial responsibility shall lapse lapses. A lapsed

• Page 44, Line 15license that has so lapsed may be reinstated upon the licensee's

• Page 44, Line 16submission of current evidence of the required financial responsibility to

• Page 44, Line 17the board and payment to the board of a one-hundred-dollar reinstatement fee in the amount of one hundred dollars.

• Page 44, Line 18(5)  The board shall charge an annual registration fee of ten dollars

• Page 44, Line 19for each well drilling or rig, ground heat exchanger installation rig, and pump installation rig to be operated in the state. of Colorado.

• Page 44, Line 20(6)  The board shall no later than January 7, 2007, develop

• Page 44, Line 21maintain a continuing education program in conjunction with the

• Page 44, Line 22Colorado water well contractors association or any analogous or

• Page 44, Line 23successor organization.

• Page 45, Line 1SECTION 20.  In Colorado Revised Statutes, 37-91-108, amend

• Page 45, Line 2(1) introductory portion, (1)(d), (1)(f), (1)(g), (1)(h), (3), (4), and (5) as follows:

• Page 45, Line 337-91-108.  Denial, revocation, or suspension of license. (1)  The

• Page 45, Line 4board, by an affirmative vote of three at least four of its five six

• Page 45, Line 5members, may withhold, deny, revoke, or suspend any license issued or

• Page 45, Line 6applied for in accordance with the provisions of this article this article 91, upon proof that the licensee or applicant:

• Page 45, Line 7(d)  Has Knowingly constructed a well, installed a ground

• Page 45, Line 8heat exchanger, or installed pumping equipment without a valid permit;

• Page 45, Line 9(f)  Has Used fraud or deception in collecting fees from persons

• Page 45, Line 10with whom he has the licensee contracted for well construction, ground heat exchanger installation, or pump installation;

• Page 45, Line 11(g)  Has Failed to submit a well completion report or a pump

• Page 45, Line 12installation report pursuant to the requirement therefor in report required by the rules and regulations of the board;

• Page 45, Line 13(h)  Has Authorized a person not directly employed or directly

• Page 45, Line 14supervised by the licensee to construct wells, install ground heat

• Page 45, Line 15exchangers, or install pumping equipment under the authority of the licensee's license; or

• Page 45, Line 16(3)  A hearing upon a complaint may be initiated only if the

• Page 45, Line 17complaint was filed with the board within two years of after the filing

• Page 45, Line 18of the completion report for the well, ground heat exchanger, or

• Page 45, Line 19pumping equipment, the construction or installation of which formed the

• Page 45, Line 20basis of the complaint. If no completion report was filed, a hearing upon

• Page 45, Line 21the complaint may be initiated only if the complaint was filed with the

• Page 46, Line 1board within two years of after the discovery of the violation or defect that constituted the grounds for the complaint.

• Page 46, Line 2(4)  The board may order the nondestructive investigation,

• Page 46, Line 3abandonment, repair, drilling, redrilling, casing, recasing, deepening, or

• Page 46, Line 4excavation of a well or ground heat exchanger to protect

• Page 46, Line 5groundwater resources and the public health if the board finds such the

• Page 46, Line 6action to be necessary to correct violations of article 90 of this title title

• Page 46, Line 737, this article article 91, or the rules promulgated adopted by the board pursuant to this article article 91.

• Page 46, Line 8(5)  The board may assess fines of not less than at least fifty

• Page 46, Line 9dollars nor more than one thousand dollars for violations of article 90 of

• Page 46, Line 10this title title 37, this article article 91, or the rules promulgated

• Page 46, Line 11adopted by the board pursuant to this article article 91 for each such

• Page 46, Line 12violation. Such The fines shall be transmitted to the state treasurer, who

• Page 46, Line 13shall credit them credited to the well inspection cash fund created in section 37-80-111.5.

• Page 46, Line 14SECTION 21.  In Colorado Revised Statutes, 37-91-109, amend (1) as follows:

• Page 46, Line 1537-91-109.  Further scope of article - orders - penalties.

• Page 46, Line 16(1) (a)  In addition to the licensing of well construction contractors, and

• Page 46, Line 17pump installation contractors as required by this article, no A well or

• Page 46, Line 18ground heat exchanger shall not be located, constructed, repaired, or

• Page 46, Line 19abandoned and no pumping equipment shall not be installed or repaired

• Page 46, Line 20contrary to the provisions of this article this article 91 and applicable

• Page 46, Line 21rules of the board promulgated adopted to effectuate the purposes of this article article 91.

• Page 46, Line 22(b)  The board may by order require any a licensee, private driller,

• Page 47, Line 1or private pump installer to remedy any such noncompliant installation,

• Page 47, Line 2construction, or repair and may, pursuant to rules and after due notice and a hearing, impose penalties for such noncompliance.

• Page 47, Line 3(c)  The provisions of this article shall apply This article 91 applies to:

• Page 47, Line 4(I)  Any well or any pumping equipment that is not otherwise subject to regulation under the laws of this state; and to

• Page 47, Line 5(II)  Any distribution, observation, monitoring, or dewatering of

• Page 47, Line 6water therefrom; but this article shall from any such well or pumping

• Page 47, Line 7equipment; except that this article 91 does not apply to any

• Page 47, Line 8distribution of water beyond the point of discharge from the pressure tank

• Page 47, Line 9or to any distribution of water beyond the point of discharge from the

• Page 47, Line 10pumping equipment if no pressure tank or an overhead pressure tank is employed.

• Page 47, Line 11(d)  This article 91 applies to any ground heat exchanger

• Page 47, Line 12that is not otherwise subject to regulation under the laws of

• Page 47, Line 13this state; except that this article 91 does not apply to any

• Page 47, Line 14distribution of heat-transfer fluid beyond the point of

• Page 47, Line 15transition between the ground heat exchanger piping or ground

• Page 47, Line 16heat exchanger manifold and the distribution lines from the ground heat exchanger manifold.

• Page 47, Line 17SECTION 22.  In Colorado Revised Statutes, 37-91-110, amend (1) introductory portion, (2), and (3); and add (1)(c) as follows:

• Page 47, Line 1837-91-110.  Basic principles and minimum standards. (1)  The

• Page 47, Line 19following basic principles, general in scope and fundamental in character,

• Page 47, Line 20shall govern the construction, repair, or abandonment of any a well; the

• Page 47, Line 21installation, repair, or abandonment of a ground heat exchanger; and the installation or repair of any pumping equipment:

• Page 48, Line 1(c)  A ground heat exchanger shall be:

• Page 48, Line 2(I)  Located in a manner that considers the physical

• Page 48, Line 3limitations of the land area and the proximity to other elements

• Page 48, Line 4that might affect the type and configuration of the ground heat exchanger; and

• Page 48, Line 5(II)  Installed or abandoned in a manner that maintains

• Page 48, Line 6natural protection against pollution of water-bearing formations and excludes known sources of contamination.

• Page 48, Line 7(2)  The board shall adopt and may, from time to time, amend rules

• Page 48, Line 8and regulations reasonably necessary to insure ensure the proper

• Page 48, Line 9construction or proper abandonment of wells, the proper installation

• Page 48, Line 10or proper abandonment of ground heat exchangers, and the

• Page 48, Line 11proper installation of pumping equipment. The board has the authority to

• Page 48, Line 12may require the filing of information and reports relating to the

• Page 48, Line 13construction or abandonment of wells, the installation or

• Page 48, Line 14abandonment of ground heat exchangers, and the installation of

• Page 48, Line 15pumping equipment whenever if it may deem deems such action to be necessary.

• Page 48, Line 16(3)  All wells and ground heat exchangers shall be

• Page 48, Line 17constructed or abandoned and all pumping equipment shall be installed

• Page 48, Line 18in compliance with this article article 91 and with the rules and regulations promulgated adopted by the board.

• Page 48, Line 19SECTION 23.  In Colorado Revised Statutes, 37-91-111, amend (1) and (3) as follows:

• Page 48, Line 2037-91-111.  Violations and penalties. (1)  It is unlawful:

• Page 48, Line 21(a)  For any person an individual to represent himself themself

• Page 49, Line 1as a well construction contractor, ground heat exchanger

• Page 49, Line 2contractor, or a pump installation contractor who if the individual

• Page 49, Line 3is not licensed under this article article 91 or to so represent himself

• Page 49, Line 4after his the individual's license has been suspended or revoked or has lapsed;

• Page 49, Line 5(b)  For any person an individual who is not licensed under this

• Page 49, Line 6article article 91 to advertise or issue any sign, card, or other device

• Page 49, Line 7which would indicate that he that indicates the individual is a well

• Page 49, Line 8construction contractor, ground heat exchanger contractor, or a pump installation contractor;

• Page 49, Line 9(c)  For any person an individual who is not licensed or whose

• Page 49, Line 10license is suspended to construct wells unless he the individual is a

• Page 49, Line 11private driller or directly employed by or under the supervision of a licensed well construction contractor;

• Page 49, Line 12(d)  For any person an individual who is not licensed or whose

• Page 49, Line 13license is suspended to install pumping equipment unless he the

• Page 49, Line 14individual is a private pump installer or directly employed by or under

• Page 49, Line 15the supervision of a licensed pump installation contractor, except as excluded pursuant to described in section 37-91-106 (4); or

• Page 49, Line 16(d.5)  For an individual who is not licensed or whose

• Page 49, Line 17license is suspended to install a ground heat exchanger unless

• Page 49, Line 18the individual is directly employed by or under the supervision

• Page 49, Line 19of a licensed ground heat exchanger contractor, except as described in section 37-91-105 (8); or

• Page 49, Line 20(e)  For any person an individual to otherwise violate any of the provisions of this article this article 91.

• Page 49, Line 21(3)  Any In addition to any penalty assessed pursuant to

• Page 50, Line 1subsection (2) of this section, a person who violates any provision of

• Page 50, Line 2subsection (1) of this section shall also be is subject to a civil penalty

• Page 50, Line 3assessed by the court of not less than one hundred dollars nor more than

• Page 50, Line 4five thousand dollars for each such violation. All civil penalties collected

• Page 50, Line 5under this subsection (3) shall be transmitted to the state treasurer, who

• Page 50, Line 6shall credit the same credited to the well inspection cash fund created in section 37-80-111.5.

• Page 50, Line 7SECTION 24.  In Colorado Revised Statutes, 37-91-113, amend

• Page 50, Line 8(1), (2) introductory portion, (2)(a), (3) introductory portion, (3)(a), (3)(e), and (3)(f) as follows:

• Page 50, Line 937-91-113.  Well inspection program. (1)  The state engineer

• Page 50, Line 10shall monitor compliance with this article article 91, including by

• Page 50, Line 11inspecting water well construction, ground heat exchanger

• Page 50, Line 12installation, and pump installation, and the state engineer may

• Page 50, Line 13employ inspectors for such this purpose. The costs of such monitoring

• Page 50, Line 14and inspection shall be paid from the well inspection cash fund created by in section 37-80-111.5.

• Page 50, Line 15(2)  Inspectors shall have the following qualifications, but need not be licensed pursuant to this article article 91:

• Page 50, Line 16(a)  Knowledge of proper well construction, ground heat

• Page 50, Line 17exchanger installation, and pump installation techniques and practices;

• Page 50, Line 18(3)  Inspectors shall annually spend a majority of their time

• Page 50, Line 19conducting field inspections and a minority of their time preparing and

• Page 50, Line 20evaluating reports and related office work. Duties shall include the following:

• Page 50, Line 21(a)  Well construction, ground heat exchanger installation, and pump installation inspection and observation;

• Page 51, Line 1(e)  Field inspections of existing wells, ground heat exchangers, and pumps;

• Page 51, Line 2(f)  Field inspections of well, ground heat exchanger, and hole plugging and abandonment; and

• Page 51, Line 3SECTION 25.  In Colorado Revised Statutes, 24-1-124, amend (4)(d) as follows:

• Page 51, Line 424-1-124.  Department of natural resources - creation - divisions. (4)  The division of water resources includes the following:

• Page 51, Line 5(d)  The state board of examiners of water well construction and

• Page 51, Line 6pump installation and ground heat exchanger contractors created in

• Page 51, Line 7article 91 of title 37 section 37-91-103. The state board of examiners of

• Page 51, Line 8water well construction and pump installation and ground heat

• Page 51, Line 9exchanger contractors is a type 1 entity, as defined in section 24-1-105,

• Page 51, Line 10and exercises its powers and performs its duties and functions under the

• Page 51, Line 11department of natural resources and is allocated to the division of water resources as a section thereof of the division of water resources.

• Page 51, Line 12SECTION 26.  In Colorado Revised Statutes, 24-33-104, amend (1)(e) introductory portion and (1)(e)(IV) as follows:

• Page 51, Line 1324-33-104.  Composition of the department. (1)  The department

• Page 51, Line 14of natural resources consists of the following commissions, divisions, boards, offices, and councils:

• Page 51, Line 15(e)  The division of water resources, the head of which shall be is

• Page 51, Line 16the state engineer. The division shall consist consists of the following sections:

• Page 51, Line 17(IV)  The state board of examiners of water well construction and

• Page 51, Line 18pump installation and ground heat exchanger contractors.

• Page 52, Line 1SECTION 27.  Act subject to petition - effective date. This act

• Page 52, Line 2takes effect at 12:01 a.m. on the day following the expiration of the

• Page 52, Line 3ninety-day period after final adjournment of the general assembly; except

• Page 52, Line 4that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 52, Line 5of the state constitution against this act or an item, section, or part of this

• Page 52, Line 6act within such period, then the act, item, section, or part will not take

• Page 52, Line 7effect unless approved by the people at the general election to be held in

• Page 52, Line 8November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.