House Bill 25-1165 Reengrossed

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, a 65%

• Page 3, Line 6reduction by 2035, a 75% reduction by 2040, a 90% reduction by 2045,and net-zero emissions by 2050;

• Page 3, Line 7(b)  Meeting these goals will involve multiple, simultaneously pursued strategies, as well as a streamlined administrative structure;

• Page 3, Line 8(c)  Carbon capture and storage, or "CCS", has been identified as an essential tool for hard-to-decarbonize sectors;

• Page 3, Line 9(d)  The geologic sequestration of carbon dioxide, or "CO2", in the

• Page 3, Line 10subsurface is necessary to reach net-zero emission targets globally and may be equally critical to Colorado's own climate targets;

• Page 3, Line 11(e)  Through CCS, stored CO2 remains in the subsurface

• Page 3, Line 12permanently. These CO2 storage projects require an extended

• Page 3, Line 13post-injection site care phase, typically lasting for decades after injection

• Page 3, Line 14has ceased, in which the injected CO2 is monitored to thoroughly

• Page 3, Line 15demonstrate that the injected CO2 is stable and will not pose a risk to underground 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

• Page 4, Line 21and determine if additional changes are necessary;

• Page 5, Line 1(l)  In support of the state's climate and energy goals, the

• Page 5, Line 2department of natural resources has identified statutory changes that will

• Page 5, Line 3clarify and streamline Colorado's regulatory framework while facilitating responsible development of geothermal resources in Colorado; and

• Page 5, Line 4(m)  These recommendations will minimize costs, expedite

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

• Page 5, Line 6(2)  The general assembly therefore declares that it is important

• Page 5, Line 7that Colorado drive and oversee the deployment of CCS and geothermal

• Page 5, Line 8technologies in a manner that encourages protective growth and

• Page 5, Line 9adaptation of infrastructure and improved coordination for permitting authorities.

• Page 5, Line 10SECTION 2.  In Colorado Revised Statutes, amend 34-60-101 as follows:

• Page 5, Line 1134-60-101.  Short title.The short title of this article shall be

• Page 5, Line 12known and may be cited as article 60 is the "Oil and Gas Conservation "Energy and Carbon Management Act".

• Page 5, Line 13SECTION 3.  In Colorado Revised Statutes, add 34-60-144 as follows:

• Page 5, Line 1434-60-144.  Geologic storage stewardship enterprise - created

• Page 5, Line 15- legislative declaration - powers and duties of enterprise - geologic

• Page 5, Line 16storage stewardship enterprise board - membership and duties of

• Page 5, Line 17enterprise board - stewardship fees - geologic storage stewardship

• Page 5, Line 18enterprise cash fund - definitions - rules - repeal. (1)  Legislative declaration. (a)  The general assembly finds that:

• Page 5, Line 19(I)  Geologic storage operations are an important tool to

• Page 5, Line 20help the state meet its greenhouse gas emission reduction goals;

• Page 6, Line 1(II)  Geologic storage operations involve permanently storing injection carbon dioxide underground;

• Page 6, Line 2(III)  It is prudent to monitor and otherwise conduct

• Page 6, Line 3long-term stewardship of injection carbon dioxide to

• Page 6, Line 4demonstrate that the injection carbon dioxide is stable and will not pose a risk to underground sources of drinking water;

• Page 6, Line 5(IV)  Geologic storage operations present the state with risks of orphaned geologic storage facilities;

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

• Page 6, Line 7geologic storage operators for the state to conduct long-term stewardship; and

• Page 6, Line 8(VI)  It is necessary, appropriate, and in the best interest

• Page 6, Line 9of geologic storage operators for the state to ensure that

• Page 6, Line 10orphaned geologic storage facilities are plugged, abandoned,

• Page 6, Line 11reclaimed, and remediated, if necessary, in a timely manner if available financial assurance is insufficient.

• Page 6, Line 12(b)  The general assembly also finds that:

• Page 6, Line 13(I)  Current law in January 2025 provides no mechanism to

• Page 6, Line 14pay for the state's long-term stewardship of geologic storage facilities; and

• Page 6, Line 15(II)  Current law in January 2025 authorizes the

• Page 6, Line 16commission to require geologic storage operators to maintain

• Page 6, Line 17and demonstrate certain financial assurances to plug, abandon, reclaim, and remediate geologic storage facilities.

• Page 6, Line 18(c)  Now, therefore, the general assembly declares that:

• Page 6, Line 19(I)  It is in the public interest to create an enterprise

• Page 6, Line 20within the department that is committed to funding long-term

• Page 7, Line 1stewardship of injection carbon dioxide and, if necessary, the

• Page 7, Line 2plugging, abandonment, reclaiming, and remediating of orphaned geologic storage facilities;

• Page 7, Line 3(II)  The activities of the enterprise shall be funded by

• Page 7, Line 4revenue generated from stewardship fees paid by operators of class VI injection wells in Colorado;

• Page 7, Line 5(III)  It is appropriate that geologic storage operators

• Page 7, Line 6should pay such stewardship fees, as geologic storage operators

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

• Page 7, Line 8enterprise, which are long-term stewardship and, where

• Page 7, Line 9necessary, the plugging, abandonment, reclaiming, and remediating of orphaned geologic storage facilities;

• Page 7, Line 10(IV)  Geologic storage operators benefit from long-term

• Page 7, Line 11stewardship because services, such as long-term monitoring and

• Page 7, Line 12site management, allow geologic storage operators to operate

• Page 7, Line 13class VI injection wells in Colorado by addressing the risks

• Page 7, Line 14presented by the permanent storage of injection carbon dioxide

• Page 7, Line 15without requiring geologic storage operators to conduct long-term stewardship;

• Page 7, Line 16(V)  Consistent with the determination of the Colorado

• Page 7, Line 17supreme court in Nicholl v. E-470 Public Highway Authority, 896

• Page 7, Line 18P.2d 859 (Colo. 1995), that the power to impose taxes is

• Page 7, Line 19inconsistent with enterprise status under section 20 of article

• Page 7, Line 20X of the state constitution, the general assembly concludes

• Page 7, Line 21that the stewardship fee is a fee, not a tax, and the enterprise

• Page 7, Line 22operates as a business because the stewardship fee is imposed for

• Page 7, Line 23the following specific business purposes:

• Page 8, Line 1(A)  The long-term stewardship services authorized by this

• Page 8, Line 2section provide a benefit to geologic storage operators by

• Page 8, Line 3allowing a geologic storage operator to be released of

• Page 8, Line 4regulatory and long-term stewardship responsibilities

• Page 8, Line 5associated with injection carbon dioxide after the commission approves site closure of a geologic storage facility; and

• Page 8, Line 6(B)  The plugging, abandonment, reclaiming, and

• Page 8, Line 7remediating services authorized by this section provide a benefit

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

• Page 8, Line 9class VI injection wells in Colorado despite the risk that

• Page 8, Line 10available financial assurance may be insufficient to protect the

• Page 8, Line 11public from the costs of geologic storage facilities being orphaned; and

• Page 8, Line 12(VI)  So long as the enterprise qualifies as an enterprise

• Page 8, Line 13for purposes of section 20 of article X of the state constitution,

• Page 8, Line 14the revenue from the stewardship fee administered by the

• Page 8, Line 15enterprise and collected by the commission is not state fiscal

• Page 8, Line 16year spending, as defined in section 24-77-102 (17), or state

• Page 8, Line 17revenues, as defined in section 24-77-103.6 (6)(c), and does not

• Page 8, Line 18count against either the state fiscal year spending limit imposed

• Page 8, Line 19by 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 20(2)  Definitions.As used in this section, unless the context otherwise requires:

• Page 8, Line 21(a)  "Department" means the department of natural resources.

• Page 8, Line 22(b)  "Enterprise" means the geologic storage stewardship enterprise created in subsection (3) of this section.

• Page 9, Line 1(c)  "Enterprise board" means the geologic storage

• Page 9, Line 2stewardship enterprise board created in subsection (4) of this section.

• Page 9, Line 3(d)  "Geologic storage stewardship enterprise cash fund"

• Page 9, Line 4means the geologic storage stewardship enterprise cash fund created in subsection (7) of this section.

• Page 9, Line 5(e)  "Long-term stewardship" means monitoring and

• Page 9, Line 6integrity maintenance of geologic storage facilities after the

• Page 9, Line 7commission approves a site closure, as well as any associated

• Page 9, Line 8action necessary to protect public health, safety, welfare, the environment, or wildlife resources.

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

• Page 9, Line 10storage facility in the state for which no owner or operator can

• Page 9, Line 11be found or for which the owner or operator is unwilling or

• Page 9, Line 12unable to pay the costs of plugging, abandoning, remediating,

• Page 9, Line 13reclaiming, or other action necessary to obtain site closure pursuant to commission rules.

• Page 9, Line 14(g)  "Stewardship fee" means the stewardship fee

• Page 9, Line 15authorized and imposed pursuant to subsection (6) of this section.

• Page 9, Line 16(3)  Enterprise created. (a)  The geologic storage

• Page 9, Line 17stewardship enterprise is created in the department, is a type 1

• Page 9, Line 18entity, as defined in section 24-1-105, and exercises its powers

• Page 9, Line 19and performs its duties and functions under the department. The enterprise is created for the purpose of:

• Page 9, Line 20(I)  Determining the amount of stewardship fees;

• Page 10, Line 1(II)  Funding the long-term stewardship of geologic storage facilities in the state;

• Page 10, Line 2(III)  Funding the plugging, abandonment, reclaiming, and,

• Page 10, Line 3as necessary, remediating of orphaned geologic storage

• Page 10, Line 4facilities in the state if the commission, after notice and a

• Page 10, Line 5hearing, determines that available financial assurance is insufficient; and

• Page 10, Line 6(IV)  Ensuring that costs associated with long-term

• Page 10, Line 7stewardship of geologic storage facilities are borne by geologic storage operators in the form of stewardship fees.

• Page 10, Line 8(b)  The enterprise board, in consultation with the

• Page 10, Line 9commission, shall administer the enterprise in accordance with this section.

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

• Page 10, Line 11purposes of section 20 of article X of the state constitution so

• Page 10, Line 12long as it retains the authority to issue revenue bonds and

• Page 10, Line 13receives less than ten percent of its total revenues in grants, as

• Page 10, Line 14defined in section 24-77-102 (7), from all Colorado state and

• Page 10, Line 15local governments combined. So long as it constitutes an

• Page 10, Line 16enterprise, the enterprise is not subject to section 20 of article X of the state constitution.

• Page 10, Line 17(II)  The enterprise is authorized to issue revenue bonds for

• Page 10, Line 18the expenses of the enterprise, secured by revenue of the enterprise.

• Page 10, Line 19(4)  Enterprise board created - membership - duties - repeal.

• Page 10, Line 20(a) (I)  The geologic storage stewardship enterprise board is

• Page 10, Line 21created to administer the enterprise. The enterprise board includes the following five members:

• Page 11, Line 1(A)  The chair of the commission;

• Page 11, Line 2(B)  The director of the commission or the director's designee;

• Page 11, Line 3(C)  An individual with substantial experience in geologic

• Page 11, Line 4storage, to be appointed by the governor and confirmed by the senate;

• Page 11, Line 5(D)  An individual with formal training or substantial

• Page 11, Line 6experience in environmental protection, public health, or other

• Page 11, Line 7relevant fields, to be appointed by the governor and confirmed by the senate; and

• Page 11, Line 8(E)  An individual with formal training or substantial

• Page 11, Line 9experience in wellbore monitoring, long-term stewardship, or

• Page 11, Line 10other relevant technical fields, to be appointed by the governor and confirmed by the senate.

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

• Page 11, Line 12the enterprise board pursuant to subsections (4)(a)(I)(C),

• Page 11, Line 13(4)(a)(I)(D), and (4)(a)(I)(E) of this section on or before September 1, 2025.

• Page 11, Line 14(B)  This subsection (4)(a)(II) is repealed, effective July 1, 2026.

• Page 11, Line 15(III)  The members of the enterprise board described in

• Page 11, Line 16subsections (4)(a)(I)(C), (4)(a)(I)(D), and (4)(a)(I)(E) of this section

• Page 11, Line 17shall each serve terms of three years; except that the initial

• Page 11, Line 18term of the member appointed pursuant to subsection (4)(a)(I)(C)

• Page 11, Line 19of this section is one year, and the initial term of the member

• Page 11, Line 20appointed pursuant to subsection (4)(a)(I)(D) of this section is

• Page 12, Line 1two years. In the event of a vacancy, the governor may appoint

• Page 12, Line 2an individual to complete the term of the member whose seat has become vacant.

• Page 12, Line 3(IV)  An individual may be appointed to serve as a member

• Page 12, Line 4of the enterprise board pursuant to subsection (4)(a)(I)(C),

• Page 12, Line 5(4)(a)(I)(D), or (4)(a)(I)(E) of this section for an unlimited number of terms.

• Page 12, Line 6(V)  Enterprise board members serving pursuant to

• Page 12, Line 7subsections (4)(a)(I)(C), (4)(a)(I)(D), and (4)(a)(I)(E) of this section

• Page 12, Line 8may receive compensation from the enterprise on a per diem basis

• Page 12, Line 9for reasonable expenses actually incurred in the performance

• Page 12, Line 10of duties required of enterprise board members under this section.

• Page 12, Line 11(VI)  The governor shall select a member of the enterprise board to serve as chair of the enterprise board.

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

• Page 12, Line 13(I)  Set the amount of the stewardship fee at an amount

• Page 12, Line 14that is reasonably related to the overall cost of the long-term

• Page 12, Line 15stewardship services provided by the enterprise. The enterprise

• Page 12, Line 16board shall set the initial amount within six months after the enterprise board is confirmed.

• Page 12, Line 17(II)  As frequently as the enterprise board determines

• Page 12, Line 18necessary, consider whether the amount of the stewardship fee should be increased or reduced, based on:

• Page 12, Line 19(A)  The overall cost of the enterprise's long-term

• Page 12, Line 20stewardship services, including reasonably anticipated future

• Page 13, Line 1expenditures from the geologic storage stewardship enterprise cash fund; and

• Page 13, Line 2(B)  The need to comply with subsection (7)(b) of this section;

• Page 13, Line 3(III)  Consider the importance of financial

• Page 13, Line 4predictability for operators when determining the frequency of changes to the stewardship fee amount;

• Page 13, Line 5(IV)  If the enterprise board determines that an increase

• Page 13, Line 6or reduction of the stewardship fee amount is warranted, adjust

• Page 13, Line 7the stewardship fee amount to an amount that is reasonably

• Page 13, Line 8related to the overall cost of the long-term stewardship services provided by the enterprise; and

• Page 13, Line 9(V)  Advise the commission of the outcome of the enterprise board's deliberations pursuant to this subsection (4).

• Page 13, Line 10(5)  Powers and duties.In addition to any other powers and

• Page 13, Line 11duties specified in this section, the enterprise board has the

• Page 13, Line 12following general powers and duties on behalf of the enterprise:

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

• Page 13, Line 14(b)  To acquire, hold title to, and dispose of real and

• Page 13, Line 15personal property, including ownership of injection carbon

• Page 13, Line 16dioxide upon approval of site closure of an associated geologic storage facility by the commission;

• Page 13, Line 17(c)  To employ and supervise individuals, professional

• Page 13, Line 18consultants, and contractors as are necessary in the enterprise

• Page 13, Line 19board's judgment to carry out its business purposes;

• Page 14, Line 1(d)  To engage the services of contractors, consultants,

• Page 14, Line 2and the attorney general's office for professional and

• Page 14, Line 3technical assistance and advice and to supply other services

• Page 14, Line 4related to the conduct of the affairs of the enterprise. The

• Page 14, Line 5enterprise may contract with the department for the provision

• Page 14, Line 6of office space and administrative staff to the enterprise at a fair market rate.

• Page 14, Line 7(e)  To seek, accept, and expend gifts, grants, donations, or

• Page 14, Line 8other payments from private or public sources for the purposes

• Page 14, Line 9of this section, so long as the total amount of all grants from

• Page 14, Line 10Colorado state and local governments received in any state

• Page 14, Line 11fiscal year is less than ten percent of the enterprise's total

• Page 14, Line 12annual revenue for the state fiscal year. All money received as

• Page 14, Line 13gifts, grants, and donations shall be credited to the geologic storage stewardship enterprise cash fund.

• Page 14, Line 14"(f)  To create and impose upon geologic storage operators

• Page 14, Line 15an additional fee to address plugging, abandoning, reclaiming,

• Page 14, Line 16and remediating of orphaned geologic storage facilities, which

• Page 14, Line 17fee is in an amount that is reasonably related to the overall

• Page 14, Line 18cost of plugging, abandoning, reclaiming, and remediating

• Page 14, Line 19orphaned geologic storage facilities, so long as the enterprise board finds that:

• Page 14, Line 20(I)  Geologic storage operations in the state are likely to create orphaned geologic storage facilities in the future;

• Page 14, Line 21(II)  Financial assurance provided by operators will be insufficient to address orphaned geologic storage facilities; and

• Page 14, Line 22(III)  Stewardship fees deposited into the geologic storage

• Page 15, Line 1stewardship cash fund will be insufficient to address both

• Page 15, Line 2long-term stewardship and orphaned geologic storage facilities;

• Page 15, Line 3(g)  To have and exercise all rights and powers necessary

• Page 15, Line 4or incidental to or implied from the specific powers and duties granted by this section; and

• Page 15, Line 5(h)  To perform all acts necessary to accomplish site

• Page 15, Line 6closures pursuant to commission rules for orphaned geologic storage facilities.

• Page 15, Line 7(6)  Stewardship fees - rules. (a)  On or before April 30, 2026,

• Page 15, Line 8and on or before April 30 each year thereafter, each geologic

• Page 15, Line 9storage operator shall pay a stewardship fee to the commission,

• Page 15, Line 10which shall collect the stewardship fee on the enterprise's

• Page 15, Line 11behalf, for each ton of injection carbon dioxide that the geologic storage operator injects in the state.

• Page 15, Line 12(b)  Money collected as stewardship fees shall be credited to the geologic storage stewardship enterprise cash fund.

• Page 15, Line 13(c)  The money collected by the commission for transfer to

• Page 15, Line 14the geologic storage stewardship enterprise cash fund pursuant to subsection (6)(b) of this section is:

• Page 15, Line 15(I)  Collected for the enterprise;

• Page 15, Line 16(II)  Custodial money intended for the enterprise and held

• Page 15, Line 17temporarily by the commission and the state treasurer solely

• Page 15, Line 18for the purpose of transferring the money to the geologic storage stewardship enterprise cash fund; and

• Page 15, Line 19(III)  Based on the enterprise's status as an enterprise, not

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

• Page 16, Line 1(d)  The commission may adopt rules to implement this subsection (6).

• Page 16, Line 2(7)  Geologic storage stewardship enterprise cash fund - repeal.

• Page 16, Line 3(a)  The geologic storage stewardship enterprise cash fund is

• Page 16, Line 4created in the state treasury. The geologic storage stewardship enterprise cash fund consists of:

• Page 16, Line 5(I)  Money received as stewardship fees;

• Page 16, Line 6(II)  Any money received from the issuance of revenue bonds, as described in subsection (3)(c)(II) of this section;

• Page 16, Line 7(III)  Any gifts, grants, or donations received pursuant to subsection (5)(e) of this section; and

• Page 16, Line 8(IV)  Any other money that the general assembly may

• Page 16, Line 9appropriate or transfer to the geologic storage stewardship enterprise cash fund.

• Page 16, Line 10(b) (I)  The total amount of money credited or

• Page 16, Line 11appropriated to the geologic storage stewardship enterprise

• Page 16, Line 12cash fund as stewardship fees shall not exceed one hundred

• Page 16, Line 13million dollars in the first five years of the enterprise's existence.

• Page 16, Line 14(II)  This subsection (7)(b) is repealed, effective July 1, 2031.

• Page 16, Line 15(c)  The state treasurer shall credit all interest and

• Page 16, Line 16income derived from the deposit and investment of money in the

• Page 16, Line 17geologic storage stewardship enterprise cash fund to the

• Page 16, Line 18geologic storage stewardship enterprise cash fund. Any

• Page 16, Line 19unexpended and unencumbered money remaining in the geologic

• Page 16, Line 20storage stewardship enterprise cash fund at the end of a fiscal

• Page 17, Line 1year remains in the geologic storage stewardship enterprise

• Page 17, Line 2cash fund and shall not be credited or transferred to the general fund or to any other fund.

• Page 17, Line 3(d)  Money credited to the geologic storage stewardship

• Page 17, Line 4enterprise cash fund is continuously appropriated to the enterprise and shall be expended to pay the costs of:

• Page 17, Line 5(I)  Long-term stewardship;

• Page 17, Line 6(II)  Plugging, abandoning, reclaiming, and remediating

• Page 17, Line 7services for orphaned geologic storage facilities at the request

• Page 17, Line 8of the director of the commission if the commission, after notice

• Page 17, Line 9and a hearing, determines that available financial assurance is insufficient; and

• Page 17, Line 10(III)  The enterprise's reasonable and necessary operating expenses.

• Page 17, Line 11(8)  Rules.The enterprise shall adopt rules as necessary to

• Page 17, Line 12implement this section. In adopting any rules concerning

• Page 17, Line 13subsection (6) of this section, the enterprise shall consult with the commission.

• Page 17, Line 14(9)  Governmental immunity.Nothing in this section

• Page 17, Line 15constitutes a waiver, abrogation, or limitation of governmental

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

• Page 17, Line 17facilities, geologic storage locations, geologic storage

• Page 17, Line 18resources, injection carbon dioxide, and facilities associated

• Page 17, Line 19with geologic storage operations are not gas facilities for the

• Page 17, Line 20purposes of section 24-10-106 (1)(f) and do not constitute any

• Page 17, Line 21other area or facility for which sovereign immunity is waived

• Page 17, Line 22pursuant to section 24-10-106 (1).

• Page 18, Line 1SECTION 4.  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 18, Line 234-60-106.  Additional powers of commission - fees - rules -

• Page 18, Line 3definitions - repeal. (9) (c) (IV) (D)  A geologic storage operator shall

• Page 18, Line 4maintain the financial assurance required under by this subsection

• Page 18, Line 5(9)(c)(IV) or under any rules adopted pursuant to this subsection

• Page 18, Line 6(9)(c)(IV) until the commission approves site closure, as specified in rules

• Page 18, Line 7adopted by the commission. Except as described in subsection (9.4)

• Page 18, Line 8of this section, commission approval of a site closure does not

• Page 18, Line 9otherwise modify an operator's responsibility to comply with applicable laws.

• Page 18, Line 10(D.5)  If a geologic storage operator makes a material

• Page 18, Line 11misrepresentation or omission that causes the commission to approve a

• Page 18, Line 12site closure pursuant to subsection (9)(c)(IV)(D) of this section, the

• Page 18, Line 13commission may reimpose any regulatory responsibility or financial

• Page 18, Line 14assurance obligation imposed on the geologic storage operator pursuant to subsection (9)(c)(IV)(A) of this section.

• Page 18, Line 15(9.4) (a)  Before the commission approves a site closure,

• Page 18, Line 16title to the injection carbon dioxide stored by a geologic

• Page 18, Line 17storage operator remains with the geologic storage operator

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

• Page 18, Line 19(b)  In addition to any criteria for site closure required by

• Page 18, Line 20rules adopted by the commission, the commission shall not

• Page 18, Line 21approve a site closure until the commission has determined that

• Page 18, Line 22the geologic storage operator requesting the site closure has

• Page 18, Line 23contributed money to the geologic storage stewardship

• Page 19, Line 1enterprise cash fund created in section 34-60-144 (7) in an

• Page 19, Line 2amount sufficient to pay for long-term stewardship of the

• Page 19, Line 3geologic storage facility for which the operator requests the site closure.

• Page 19, Line 4(c)  Upon approval by the commission of a site closure:

• Page 19, Line 5(I)  Ownership of the injection carbon dioxide and

• Page 19, Line 6ownership of any remaining geologic storage facilities,

• Page 19, Line 7including those used to inject, monitor, or store injection

• Page 19, Line 8carbon dioxide, transfer to the state without payment of compensation;

• Page 19, Line 9(II)  The geologic storage stewardship enterprise created

• Page 19, Line 10in section 34-60-144 shall undertake long-term stewardship of

• Page 19, Line 11the injection carbon dioxide and any associated geologic storage facility; and

• Page 19, Line 12(III)  The geologic storage operator is released from all

• Page 19, Line 13further regulatory liability associated with the geologic

• Page 19, Line 14storage operations or associated geologic storage facility, except as provided in subsection (9.4)(d) of this section.

• Page 19, Line 15(d)  Regulatory liability remains with the geologic

• Page 19, Line 16storage operator to the extent that the commission determines, after notice and hearing, that:

• Page 19, Line 17(I)  The geologic storage operator was in material

• Page 19, Line 18violation of a state law or regulation related to the geologic

• Page 19, Line 19storage operations or any associated geologic storage facility

• Page 19, Line 20that was not remedied prior to approval of site closure and has

• Page 19, Line 21not been remedied since that time, and any applicable statutes

• Page 19, Line 22of limitation have not run;

• Page 20, Line 1(II)  The geologic storage operator provided deficient or

• Page 20, Line 2erroneous information that was material and relied upon by the commission to support the approval of site closure;

• Page 20, Line 3(III)  Contractual, civil, or criminal liability arises from

• Page 20, Line 4conduct of the geologic storage operator associated with the

• Page 20, Line 5geologic storage operations or any associated geologic storage

• Page 20, Line 6facility and such liability materially affects the commission's decision to approve site closure; or

• Page 20, Line 7(IV)  There is fluid migration for which the geologic

• Page 20, Line 8storage operator is responsible that causes or threatens to

• Page 20, Line 9cause imminent and substantial endangerment to an underground source of drinking water.

• Page 20, Line 10(e)  After notice and hearing, the commission may reimpose

• Page 20, Line 11any regulatory liability from which the geologic storage

• Page 20, Line 12operator has been released pursuant to subsection (9.4)(c)(III) of

• Page 20, Line 13this section and financial assurance obligations, if the commission determines that:

• Page 20, Line 14(I)  The geologic storage operator made a material

• Page 20, Line 15misrepresentation or omission that caused the commission to approve a site closure;

• Page 20, Line 16(II)  The geologic storage operator was in material

• Page 20, Line 17violation of a duty imposed on the operator by state law,

• Page 20, Line 18including by rules, prior to approval of a site closure, the

• Page 20, Line 19material violation has not been remedied, and any applicable statutes of limitation have not run; or

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

• Page 20, Line 21which the geologic storage operator is responsible that causes

• Page 21, Line 1or threatens to cause imminent and substantial endangerment to an underground source of drinking water.

• Page 21, Line 2(f)  Nothing in this subsection (9.4) waives, abrogates, or

• Page 21, Line 3limits governmental immunity, as described in article 10 of title

• Page 21, Line 424. Geologic storage facilities, geologic storage locations,

• Page 21, Line 5geologic storage resources, injection carbon dioxide, and

• Page 21, Line 6facilities associated with geologic storage operations are not

• Page 21, Line 7gas facilities for the purposes of section 24-10-106 (1)(f) and do

• Page 21, Line 8not constitute any other area or facility for which sovereign immunity is waived pursuant to section 24-10-106 (1).

• Page 21, Line 9SECTION 5.  In Colorado Revised Statutes, 34-60-140, amend (2)(a)(II) introductory portion as follows:

• Page 21, Line 1034-60-140.  Ownership of geologic storage resources and

• Page 21, Line 11injection carbon dioxide - legislative declaration. (2) (a)  Except as set forth in subsection (5) of this section:

• Page 21, Line 12(II)  Until ownership of injection carbon dioxide and the facilities

• Page 21, Line 13and equipment that store injection carbon dioxide in the state transfer

• Page 21, Line 14to the state pursuant to section 34-60-106 (9.4)(c)(I), such ownership is vested in:

• Page 21, Line 15SECTION 6.  In Colorado Revised Statutes, 37-80-111.5, amend (1)(d) as follows:

• Page 21, Line 1637-80-111.5.  Fees - rules - satellite monitoring system cash

• Page 21, Line 17fund - well inspection cash fund - created. (1) (d)  Of each fee collected

• Page 21, Line 18pursuant to sections 37-90-105 (3)(a)(I) and (4)(a); 37-90-107 (7)(d)(I);

• Page 21, Line 1937-90-116 (1)(a), (1)(c), and (1)(h); 37-90-137 (2)(a); 37-90.5-106;

• Page 21, Line 2037-90.5-107; and 37-92-602 (3)(a) and (5), forty dollars a portion shall

• Page 21, Line 21be credited to the well inspection cash fund, which fund is hereby created.

• Page 22, Line 1Moneys The amount of the portion transferred to the well

• Page 22, Line 2inspection cash fund is forty dollars, and this amount may be

• Page 22, Line 3modified by rules adopted by the board of examiners pursuant to

• Page 22, Line 4section 37-91-104 (1)(c). Money in the well inspection cash fund shall

• Page 22, Line 5be continuously appropriated to and expended by the state engineer for

• Page 22, Line 6the purposes established in section 37-91-113. Any moneys money

• Page 22, Line 7credited to the well inspection cash fund and unexpended at the end of

• Page 22, Line 8any given state fiscal year remain remains in the fund and do does not

• Page 22, Line 9revert to the general fund. All interest derived from the deposit and

• Page 22, Line 10investment of this fund remain remains in the fund and do does not revert to the general fund.

• Page 22, Line 11SECTION 7.  In Colorado Revised Statutes, 37-80-111.7, amend (2) introductory portion and (2)(b) as follows:

• Page 22, Line 1237-80-111.7.  Water resources cash fund - created - uses.

• Page 22, Line 13(2)  The state engineer shall collect the following fees and transmit them

• Page 22, Line 14to the state treasurer, who shall credit them to the fund, except as

• Page 22, Line 15specified in paragraph (b) of this subsection (2) subsection (2)(b) of this section:

• Page 22, Line 16(b)  The state engineer shall collect fees pursuant to sections

• Page 22, Line 1737-90-105 (3)(a) and (4); 37-90-107 (7)(c)(I) and (7)(d)(I); 37-90-108 (4)

• Page 22, Line 18and (6); 37-90-116 (1)(a), (1)(c), (1)(h), and (1)(i); 37-90-137 (2), (3)(a),

• Page 22, Line 19and (3)(c); 37-90.5-106; 37-90.5-107; 37-92-305 (17); 37-92-308; and

• Page 22, Line 2037-92-602 (1)(g)(III)(C), (3)(a), and (5). The state treasurer shall credit

• Page 22, Line 21the 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 22, Line 22SECTION 8.  In Colorado Revised Statutes, 37-90-103, amend

• Page 22, Line 23(10.5) as follows:

• Page 23, Line 137-90-103.  Definitions - repeal. As used in this article 90, unless the context otherwise requires:

• Page 23, Line 2(10.5)  "Nontributary groundwater" means that groundwater,

• Page 23, Line 3located outside the boundaries of any designated groundwater basins in

• Page 23, Line 4existence on January 1, 1985 excluding designated groundwater,

• Page 23, Line 5the withdrawal of which will not, within one hundred years of continuous

• Page 23, Line 6withdrawal, deplete the flow of a natural stream, including a natural

• Page 23, Line 7stream as defined in sections 37-82-101 (2) and 37-92-102 (1)(b), at an

• Page 23, Line 8annual rate greater than one-tenth of one percent of the annual rate of

• Page 23, Line 9withdrawal. The determination of whether groundwater is nontributary

• Page 23, Line 10shall be based on aquifer conditions existing at the time of permit

• Page 23, Line 11application; except that, in recognition of the de minimis amount of water

• Page 23, Line 12discharging from the Dawson, Denver, Arapahoe, and Laramie-Fox Hills

• Page 23, Line 13aquifers into surface streams due to artesian pressure, when compared

• Page 23, Line 14with the great economic importance of the groundwater in those aquifers,

• Page 23, Line 15and the feasibility and requirement of full augmentation by wells located

• Page 23, Line 16in the tributary portions of those aquifers, it is specifically found and

• Page 23, Line 17declared that, in determining whether groundwater of the Dawson,

• Page 23, Line 18Denver, Arapahoe, and Laramie-Fox Hills aquifers is nontributary, it shall

• Page 23, Line 19be assumed that the hydrostatic pressure level in each such aquifer has

• Page 23, Line 20been lowered at least to the top of that aquifer throughout that aquifer;

• Page 23, Line 21except that not nontributary groundwater, as defined in subsection (10.7)

• Page 23, Line 22of this section, in the Denver basin shall not become nontributary

• Page 23, Line 23groundwater as a result of the aquifer's hydrostatic pressure level

• Page 23, Line 24dropping below the alluvium of an adjacent stream due to Denver basin

• Page 23, Line 25well pumping activity. Nothing in this subsection (10.5) shall preclude

• Page 23, Line 26precludes the designation of any aquifer or basin, or any portion thereof,

• Page 24, Line 1which of an aquifer or basin, that is otherwise eligible for

• Page 24, Line 2designation under the standard set forth in subsection (6) of this section

• Page 24, Line 3relating to groundwater in areas not adjacent to a continuously flowing

• Page 24, Line 4natural stream wherein groundwater withdrawals have constituted the

• Page 24, Line 5principal water usage for at least fifteen years preceding the date of the first hearing on the proposed designation of a basin.

• Page 24, Line 6SECTION 9.  In Colorado Revised Statutes, 37-90-137, amend

• Page 24, Line 7(2)(a)(II), (2)(b)(I), (2)(b)(II) introductory portion, (2)(b)(II)(A), (2)(b)(II)(B), and (2)(c); and add (2)(e) and (7.5) as follows:

• Page 24, Line 837-90-137.  Permits to construct wells outside designated

• Page 24, Line 9basins - fees - permit no groundwater right - evidence - time

• Page 24, Line 10limitation - well permits - rules - definition. (2) (a) (II)  Effective July

• Page 24, Line 111, 2006, upon receipt of an application for a replacement well or a new,

• Page 24, Line 12increased, or additional supply of groundwater from an area outside the

• Page 24, Line 13boundaries of a designated groundwater basin, accompanied by a filing

• Page 24, Line 14fee of one hundred dollars, the state engineer shall make a determination

• Page 24, Line 15as to whether or not the exercise of the requested permit will materially

• Page 24, Line 16injure the vested water rights or prior geothermal operations of others.

• Page 24, Line 17(b) (I)  The state engineer shall issue a permit to construct a well only if:

• Page 24, Line 18(A)  The state engineer finds, as substantiated by hydrological and

• Page 24, Line 19geological facts, that there is unappropriated water available for

• Page 24, Line 20withdrawal by the proposed well and that the vested water rights or prior geothermal operations of others will not be materially injured; and

• Page 24, Line 21(B)  Except as specified in subparagraph (II) of this paragraph (b)

• Page 24, Line 22subsection (2)(b)(II) of this section, the location of the proposed well

• Page 25, Line 1will be more than six hundred feet from an existing well completed in

• Page 25, Line 2the same aquifer and more than one-fourth of a mile from a prior geothermal operation utilizing water from the same aquifer.

• Page 25, Line 3(II)  If the state engineer, after a hearing, finds that circumstances

• Page 25, Line 4in a particular instance so warrant, or if a court decree is entered for the

• Page 25, Line 5proposed well location after notice has been given in accordance with

• Page 25, Line 6sub-subparagraph (B) of this subparagraph (II) subsection (2)(b)(II)(B)

• Page 25, Line 7of this section, the state engineer may issue a permit without regard to

• Page 25, Line 8the limitation specified in sub-subparagraph (B) of subparagraph (I) of

• Page 25, Line 9this paragraph (b) subsection (2)(b)(I)(B) of this section; except that

• Page 25, Line 10no a hearing shall be is not required and the state engineer may issue a

• Page 25, Line 11well permit without regard to the limitation specified in sub-subparagraph

• Page 25, Line 12(B) of subparagraph (I) of this paragraph (b) subsection (2)(b)(I)(B) of this section:

• Page 25, Line 13(A)  If the state engineer notifies the owners of all wells within six

• Page 25, Line 14hundred feet of the proposed well by certified mail and receives no

• Page 25, Line 15response within the time set forth in the notice, and if the proposed

• Page 25, Line 16well is located within one-fourth of a mile of a prior

• Page 25, Line 17geothermal operation, and the state engineer notifies the prior

• Page 25, Line 18geothermal operation's designated individuals and the energy

• Page 25, Line 19and carbon management commission by electronic mail and receives no response within the time set forth in the notice;

• Page 25, Line 20(B)  If the proposed well is part of a water court proceeding

• Page 25, Line 21adjudicating the water right for the well, or if the proposed well is part of

• Page 25, Line 22an adjudication of a plan for augmentation or change of water right and

• Page 25, Line 23if evidence is provided to the water court that the applicant has given

• Page 25, Line 24notice of the water court application, at least fourteen days before making

• Page 26, Line 1the application, by registered or certified mail, return receipt requested,

• Page 26, Line 2to the owners of record of all wells within six hundred feet of the

• Page 26, Line 3proposed well and to all designated individuals of prior

• Page 26, Line 4geothermal operations within one-fourth of a mile of the proposed well;

• Page 26, Line 5(c)  The permit shall set forth such the conditions for drilling,

• Page 26, Line 6casing, and equipping wells and other diversion facilities as are

• Page 26, Line 7reasonably necessary to prevent waste, pollution, or material injury to existing rights or prior geothermal operations.

• Page 26, Line 8(e)  As used in this subsection (2), unless the context otherwise requires:

• Page 26, Line 9(I)  "Material injury to a prior geothermal operation" has the meaning set forth in section 37-90.5-106 (1)(c).

• Page 26, Line 10(II)  "Prior geothermal operation" has the meaning set forth in section 37-90.5-103 (14.5).

• Page 26, Line 11(7.5) (a)  Except as required by subsection (7.5)(b) of this

• Page 26, Line 12section, a permit from the state engineer is not required in the

• Page 26, Line 13case of withdrawing nontributary groundwater from a geologic

• Page 26, Line 14formation if the withdrawal is permitted as a deep geothermal

• Page 26, Line 15operation, as defined in section 37-90.5-103 (3), and the

• Page 26, Line 16withdrawn nontributary groundwater will be used only for operations to extract or utilize heat, including:

• Page 26, Line 17(I)  Generating electricity;

• (II)  Heating and cooling buildings;

• Page 26, Line 18(III)  Heating swimming pools, public bathhouses, or developed hot springs facilities;

• Page 26, Line 19(IV)  Heating aquaculture;

• (V)  Melting snow or ice;

• Page 27, Line 1(VI)  Heating to facilitate carbon dioxide capture or hydrogen production;

• Page 27, Line 2(VII)  Deep geothermal exploration, resource confirmation, or reservoir enhancement; and

• Page 27, Line 3(VIII)  Heating and drying for other industrial processes.

• Page 27, Line 4(b)  A well permit is required if the operator will use the

• Page 27, Line 5nontributary groundwater for additional beneficial uses unrelated to the extraction or utilization of heat.

• Page 27, Line 6SECTION 10.  In Colorado Revised Statutes, 37-90.5-102, amend (1)(b) as follows:

• Page 27, Line 737-90.5-102.  Legislative declaration. (1)  The general assembly hereby declares that:

• Page 27, Line 8(b)  The development of geothermal resources should be

• Page 27, Line 9undertaken in such a manner as to safeguard life, health, property, public

• Page 27, Line 10welfare, historic geothermal hot springs, and the environment,

• Page 27, Line 11including wildlife resources; encourage the maximum economic recovery

• Page 27, Line 12of each resource and prevent its waste; and protect associated correlative rights.

• Page 27, Line 13SECTION 11.  In Colorado Revised Statutes, 37-90.5-103,

• Page 27, Line 14amend (1)(b) and (3)(c)(II); repeal (13); and add(9.5) and (14.5) as follows:

• Page 27, Line 1537-90.5-103.  Definitions. As used in this article 90.5, unless the context otherwise requires:

• Page 27, Line 16(1) (b)  "Allocated geothermal resource" does not include

• Page 27, Line 17groundwater in the Denver basin aquifers or nontributary

• Page 27, Line 18groundwater aquifers entirely located shallower than two thousand five hundred feet.

• Page 28, Line 1(3) (c)  "Deep geothermal operation" does not include:

• Page 28, Line 2(II)  The use of any heat extracted with produced fluids in an oil

• Page 28, Line 3and gas operation if the utilization of the heat is only utilized to reduce

• Page 28, Line 4emissions from the operation in the same location as the well from which

• Page 28, Line 5it was produced and would otherwise not be economically feasible as a standalone geothermal resource project.

• Page 28, Line 6(9.5)  "Historic hot spring" means a hot spring that is registered as described in section 37-90.5-106 (7) and is either:

• Page 28, Line 7(a)  A commercial geothermal hot spring with a vested water right; or

• Page 28, Line 8(b)  A noncommercial geothermal hot spring that is accessible to and enjoyed by the public.

• Page 28, Line 9(13)  "Nonconsumptive geothermal operation" means an operation

• Page 28, Line 10using geothermal resources in which the volume of geothermal fluid

• Page 28, Line 11extracted from an aquifer or formation is no more than the volume of the

• Page 28, Line 12geothermal fluid reinjected in the same aquifer or formation over a reasonable time frame and distance.

• Page 28, Line 13(14.5)  "Prior geothermal operation" means:

• Page 28, Line 14(a)  A geothermal well, operation, district, or unit

• Page 28, Line 15authorized by the state engineer or the energy and carbon management commission pursuant to this article 90.5; or

• Page 28, Line 16(b)  A historic hot spring.

• Page 28, Line 17SECTION 12.  In Colorado Revised Statutes, 37-90.5-104, amend (2) and (4); and repeal (5) as follows:

• Page 28, Line 1837-90.5-104.  Ownership declaration. (2)  The property right to

• Page 28, Line 19a hot dry rock resource or a geothermal resource associated with

• Page 29, Line 1nontributary groundwater is an incident of the ownership of the overlying

• Page 29, Line 2surface, unless the property right is severed, reserved, or transferred with

• Page 29, Line 3the subsurface estate expressly or is otherwise expressly separate

• Page 29, Line 4from the surface estate. Geothermal resources associated with

• Page 29, Line 5nontributary groundwater shall not be transferred separately

• Page 29, Line 6from the nontributary groundwater. With respect to any

• Page 29, Line 7severance, reservation, or transfer occurring after September 1, 2025:

• Page 29, Line 8(a)  For any severance, reservation, or transfer of

• Page 29, Line 9nontributary groundwater, there is a rebuttable presumption

• Page 29, Line 10that the severance, reservation, or transfer includes any

• Page 29, Line 11associated geothermal resources unless the severance, reservation, or transfer expressly states otherwise; and

• Page 29, Line 12(b)  For any severance, reservation, or transfer of

• Page 29, Line 13geothermal resources associated with nontributary

• Page 29, Line 14groundwater, there is a rebuttable presumption that the

• Page 29, Line 15severance, reservation, or transfer includes the associated

• Page 29, Line 16nontributary groundwater unless the severance, reservation, or transfer expressly states otherwise.

• Page 29, Line 17(4)  Notwithstanding any provision of this section to the contrary, nothing in this section:

• Page 29, Line 18(a)  Derogates the rights of a landowner to nontributary groundwater; or

• Page 29, Line 19(b)  Affects any ownership or rights to a geothermal resource

• Page 29, Line 20associated with nontributary groundwater, which resource is acquired before July 1, 2023; or

• Page 29, Line 21(c)  Prevents an owner of nontributary groundwater

• Page 30, Line 1rights from accessing nontributary groundwater for

• Page 30, Line 2nongeothermal purposes that will not materially injure a prior geothermal operation.

• Page 30, Line 3(5)  Notwithstanding any provision of this section to the contrary,

• Page 30, Line 4geothermal resources associated with nontributary groundwater shall not be transferred separately from the nontributary groundwater.

• Page 30, Line 5SECTION 13.  In Colorado Revised Statutes, 37-90.5-106,

• Page 30, Line 6amend (1)(a)(I), (1)(a)(II), (1)(b)(III), (3), and (6); and add(1)(a)(IV), (1)(a)(V), (1)(c), (2)(c), and (7) as follows:

• Page 30, Line 737-90.5-106.  Regulation of geothermal resource operations -

• Page 30, Line 8reinjection - fees - rules - definition. (1) (a) (I)  The state engineer has

• Page 30, Line 9and the board of examiners of water well and ground heat

• Page 30, Line 10exchanger contractors created in section 37-91-103 have the

• Page 30, Line 11exclusive authority to regulate shallow geothermal operations and may adopt rules that regulate shallow geothermal operations.

• Page 30, Line 12(II)  Prior to Before constructing a test bore, ground heat

• Page 30, Line 13exchanger, monitoring well, or production well or reworking an

• Page 30, Line 14existing well associated with shallow geothermal operations, a person

• Page 30, Line 15shall obtain an operations permit must be obtained from the state engineer.

• Page 30, Line 16(IV)  The state engineer shall maintain a tributary geothermal notification list for each water division.

• Page 30, Line 17(V) (A)  An applicant for a new geothermal well permit

• Page 30, Line 18withdrawing tributary groundwater at a rate greater than

• Page 30, Line 19fifty gallons per minute shall provide a copy of the application

• Page 30, Line 20by electronic mail to all parties that have subscribed to the

• Page 30, Line 21tributary geothermal notification list for the water division in

• Page 31, Line 1which the well will be located and shall file proof of such notice with the state engineer.

• Page 31, Line 2(B)  The state engineer shall allow the owners or

• Page 31, Line 3operators of prior geothermal operations, vested water rights,

• Page 31, Line 4or wells thirty-five days after the date of the electronic

• Page 31, Line 5mailing of the notice to submit a claim of material injury. Any

• Page 31, Line 6such claim may request conditions to be imposed upon the well

• Page 31, Line 7permit in order to prevent such injury and provide other

• Page 31, Line 8information to be considered by the state engineer in reviewing the application.

• Page 31, Line 9(C)  If an applicant proposes a geothermal well

• Page 31, Line 10withdrawing tributary groundwater at a rate greater than

• Page 31, Line 11fifty gallons per minute, and the proposed well is in a

• Page 31, Line 12hydrogeologic setting where it has the potential to materially

• Page 31, Line 13injure a historic hot spring, the applicant shall provide geologic

• Page 31, Line 14and hydrologic evidence to be considered by the state engineer.

• Page 31, Line 15The evidence must demonstrate that the proposed well will not

• Page 31, Line 16materially injure the historic hot spring. The state engineer

• Page 31, Line 17shall amend the geothermal rules adopted pursuant to

• Page 31, Line 18subsection (1)(a)(I) of this section to implement the requirements of this subsection (1)(a)(V)(C).

• Page 31, Line 19(b) (III)  In issuing an operations permit pursuant to subsection (1)(b)(II) of this section, the commission:

• Page 31, Line 20(A)  May allow for the use of groundwater as part of

• Page 31, Line 21nonconsumptive geothermal operations pursuant to section 37-90-137

• Page 31, Line 22(7.5)(a) as a material medium for allocated geothermal resources that

• Page 31, Line 23have been determined to be nontributary pursuant to section 37-90.5-107 (1)(b); and

• Page 32, Line 1(B)  Shall make a finding based upon available data that

• Page 32, Line 2the proposed operation will not materially injure a prior geothermal operation; and

• Page 32, Line 3(C)  Shall require each applicant for a permit concerning

• Page 32, Line 4deep geothermal operations to provide notice of the application

• Page 32, Line 5to the designated individuals of prior geothermal operations

• Page 32, Line 6registered pursuant to subsection (7) of this section and located

• Page 32, Line 7within one-fourth of a mile of the proposed deep geothermal operations.

• Page 32, Line 8(c)  As used in this section, unless the context otherwise

• Page 32, Line 9requires, "material injury to a prior geothermal operation"

• Page 32, Line 10includes injury to any aspect of the vested water rights of a

• Page 32, Line 11prior geothermal operation, which may include water quantity,

• Page 32, Line 12pressure, rate of flow, mineral content, or temperature.

• Page 32, Line 13Regardless of whether water quantity, pressure, rate of flow,

• Page 32, Line 14mineral content, or temperature are decreed, "material injury

• Page 32, Line 15to a prior geothermal operation" also includes diminution or

• Page 32, Line 16alteration of any such parameter that results in an adverse effect to a prior geothermal operation.

• Page 32, Line 17(2) (c)  The commission may enforce rules adopted pursuant to this subsection (2) in accordance with section 34-60-121.

• Page 32, Line 18(3)  Where the maintenance of underground pressures, the

• Page 32, Line 19prevention of subsidence, or the disposal of brines is necessary,

• Page 32, Line 20reinjection of geothermal fluid or water may be required by the state engineer or the commission.

• Page 32, Line 21(6) (a)  On and after July 1, 2023, Except as set forth in subsection

• Page 33, Line 1(6)(b)(II) of this section, the commission is responsible for administering

• Page 33, Line 2and enforcing any permits issued by the state engineer pursuant to this section that cover deep geothermal operations.

• Page 33, Line 3(b)  The powers, duties, functions, and obligations concerning

• Page 33, Line 4permits issued by the state engineer pursuant to this section that cover

• Page 33, Line 5deep geothermal operations are transferred, effective July 1, 2023, to the

• Page 33, Line 6commission. The state engineer retains or the board of examiners of

• Page 33, Line 7water well and ground heat exchanger contractors may

• Page 33, Line 8exercise any powers, duties, functions, and obligations power, duty,

• Page 33, Line 9function, or obligation necessary to issue, administer, and enforce any permits or licenses that cover:

• Page 33, Line 10(I)  Shallow geothermal operations; and

• Page 33, Line 11(II)  The use of geothermal fluid in deep geothermal operations

• Page 33, Line 12pursuant to section 37-90.5-107, except for nonconsumptive deep geothermal operations subject to section 37-90-137 (7.5)(a).

• Page 33, Line 13(c)  The rules of the state engineer pertaining to the powers, duties,

• Page 33, Line 14functions, and obligations transferred to the commission pursuant to

• Page 33, Line 15subsection (6)(b) of this section continue in effect and apply to the

• Page 33, Line 16commission until the rules are replaced by rules adopted by the commission pursuant to subsection (1)(b)(I) of this section.

• Page 33, Line 17(d)  The commission and the state engineer shall enter into

• Page 33, Line 18memoranda of understanding, interagency agreements, or both, as

• Page 33, Line 19appropriate, to provide for the timely transfer of the powers, duties,

• Page 33, Line 20functions, and obligations transferred to the commission pursuant to subsection (6)(b) of this section.

• Page 33, Line 21(7) (a)  An owner or operator of a prior geothermal

• Page 33, Line 22operation, or a government entity with an interest in the public's

• Page 34, Line 1enjoyment of a noncommercial geothermal hot spring, shall register with the state engineer:

• Page 34, Line 2(I)  The location of the prior geothermal operation; and

• Page 34, Line 3(II)  Designated individuals to receive electronic mail

• Page 34, Line 4notifications from the state engineer and the commission as

• Page 34, Line 5described in section 37-90-137 (2) and subsection (1)(b)(III)(C) of this section.

• Page 34, Line 6(b)  The state engineer shall add the designated

• Page 34, Line 7individuals to the tributary geothermal notification list

• Page 34, Line 8described in subsection (1)(a)(IV) of this section for the water division in which the prior geothermal operation is located.

• Page 34, Line 9SECTION 14.  In Colorado Revised Statutes, 37-90.5-107, amend (1)(a) and (4); and repeal (3)(b) and (3)(d) as follows:

• Page 34, Line 1037-90.5-107.  Permits for the use of geothermal resources -

• Page 34, Line 11rules. (1) (a)  After receipt of the necessary application, the state engineer

• Page 34, Line 12shall issue a use permit to use distributed geothermal resources consistent

• Page 34, Line 13with the requirements described in section 37-90-137 section 37-90-107, 37-90-108, 37-90-109, 37-90-137, or 37-90.5-106.

• Page 34, Line 14(3) (b)  The requirement to issue a use permit pursuant to

• Page 34, Line 15subsection (1)(b) of this section does not apply to operations that are

• Page 34, Line 16solely nonconsumptive geothermal operations using allocated geothermal resources.

• Page 34, Line 17(d)  The use permit issued pursuant to subsection (1) of this section

• Page 34, Line 18may allow for nonconsumptive secondary uses of geothermal fluid,

• Page 34, Line 19including the recovery of geothermal by-products, and may allow for

• Page 34, Line 20consumptive secondary uses of geothermal fluid, including sale, which do

• Page 34, Line 21not impair valid, prior water rights.

• Page 35, Line 1(4)  Notwithstanding any provision of this section to the contrary,

• Page 35, Line 2section 37-90-137 (4) applies to any consumptive beneficial use of

• Page 35, Line 3allocated geothermal resources, except for those operations described in section 37-90-137 (7.5)(a).

• Page 35, Line 4SECTION 15.  In Colorado Revised Statutes, 37-90.5-111, amend (1)(b) as follows:

• Page 35, Line 537-90.5-111.  Coordination between the commission and the

• Page 35, Line 6state engineer. (1)  When an operations permit is issued by the

• Page 35, Line 7commission pursuant to section 37-90.5-106 (1)(b)(II) and a use permit

• Page 35, Line 8is issued by the state engineer pursuant to section 37-90.5-107 (1), the commission and the state engineer shall coordinate to:

• Page 35, Line 9(b)  Determine whether an accounting for the use and reinjection

• Page 35, Line 10of geothermal fluid or water pursuant to the applicable permit may be

• Page 35, Line 11submitted to only the commission, or only to the state engineer, or to both.

• Page 35, Line 12SECTION 16.  In Colorado Revised Statutes, amend 37-91-101 as follows:

• Page 35, Line 1337-91-101.  Legislative declaration. (1)  The general assembly hereby finds, determines, and declares that:

• Page 35, Line 14(a)  It has been established by Scientific evidence has

• Page 35, Line 15established that improperly constructed wells, improperly abandoned

• Page 35, Line 16wells, improperly constructed or abandoned ground heat

• Page 35, Line 17exchangers, and improperly installed pumping equipment can adversely

• Page 35, Line 18affect groundwater resources and the public health, safety, and welfare; and

• Page 35, Line 19(b)  Therefore, the proper location, construction, repair, and

• Page 35, Line 20abandonment of wells; the proper location, construction, repair,

• Page 36, Line 1and abandonment of ground heat exchangers; the proper

• Page 36, Line 2installation and repair of pumping equipment; the licensing and regulation

• Page 36, Line 3of persons engaging in the business of contracting either for the

• Page 36, Line 4construction of wells, the construction of ground heat

• Page 36, Line 5exchangers, or for the installation of pumping equipment; and the

• Page 36, Line 6periodic inspection of well construction, ground heat exchanger

• Page 36, Line 7construction, and pump installation are essential for the protection of

• Page 36, Line 8the public health, safety, and welfare and the preservation of groundwater resources.

• Page 36, Line 9SECTION 17.  In Colorado Revised Statutes, 37-91-102, amend

• Page 36, Line 10(3), (10), (10.5), (14), (15), (15.5), (16)(b)(I)(B), (16)(b)(I)(C),

• Page 36, Line 11(16)(b)(II), and (17); and add (4.1), (6.5), (6.7), (7.5), and (16)(b)(I)(D) as follows:

• Page 36, Line 1237-91-102.  Definitions. As used in this article 91, unless the context otherwise requires:

• Page 36, Line 13(3)  "Board" means the state board of examiners of water well

• Page 36, Line 14construction and pump installation and ground heat exchanger contractors created by in section 37-91-103.

• Page 36, Line 15(4.1) (a)  "Construction or installation of a ground heat

• Page 36, Line 16exchanger" means any act undertaken at a ground heat

• Page 36, Line 17exchanger site for the establishment or modification of a ground heat exchanger.

• Page 36, Line 18(b)  "Construction or installation of a ground heat

• Page 36, Line 19exchanger" includes the locating of a ground heat exchanger

• Page 36, Line 20and the excavating or fracturing necessary to install a ground heat exchanger.

• Page 36, Line 21(c)  "Construction or installation of a ground heat

• Page 37, Line 1exchanger" does not include surveying, site preparation, site modification, or other preparatory acts.

• Page 37, Line 2(6.5)  "Ground heat exchanger" means a continuous,

• Page 37, Line 3sealed, subsurface heat exchanger consisting of a closed loop

• Page 37, Line 4through which a heat-transfer fluid passes to and returns from

• Page 37, Line 5a heat pump or manifold. A ground heat exchanger may be

• Page 37, Line 6vertically or horizontally configured or submerged in surface water.

• Page 37, Line 7(6.7)  "Ground heat exchanger contractor" means an

• Page 37, Line 8individual licensed pursuant to this article 91 who is responsible

• Page 37, Line 9for the drilling, construction, grouting, repair, testing, or

• Page 37, Line 10abandonment of a ground heat exchanger, either by contract or for hire, for any consideration whatsoever.

• Page 37, Line 11(7.5)  "Heat-transfer fluid" means a fluid heat-transfer

• Page 37, Line 12medium to convey thermal energy to and from the thermal source or sink.

• Page 37, Line 13(10)  "License" means the document issued by the board to a

• Page 37, Line 14qualified persons making application therefor, applicant pursuant to

• Page 37, Line 15section 37-91-105, authorizing such persons which document

• Page 37, Line 16authorizes the applicant to engage in one or more methods of well

• Page 37, Line 17construction, ground heat exchanger construction, or pump installation or any combination of such methods.

• Page 37, Line 18(10.5)  "Monitoring and observation well" includes any excavation

• Page 37, Line 19that is drilled, cored, bored, washed, fractured, driven, dug, jetted, or

• Page 37, Line 20otherwise constructed when the intended use of such the excavation is

• Page 37, Line 21for locating such a well, pumping equipment or aquifer testing,

• Page 37, Line 22monitoring groundwater, groundwater remediation, or collection of water quality samples.

• Page 38, Line 1(14)  "Pump installation contractor" means any person an

• Page 38, Line 2individual licensed to install, remove, modify, or repair pumping equipment for compensation.

• Page 38, Line 3(15)  "Repair" means:

• Page 38, Line 4(a)  Any change, replacement, or other alteration of any well or

• Page 38, Line 5pumping equipment which that requires a breaking or opening of the

• Page 38, Line 6well seal or any waterlines up to and including the pressure tank and any coupling appurtenant thereto to the pressure tank; or

• Page 38, Line 7(b)  Any change, replacement, or other alteration of a

• Page 38, Line 8ground heat exchanger that requires excavation of any portion

• Page 38, Line 9of the ground heat exchanger to repair or replace components

• Page 38, Line 10of surface casing, piping or grout within the borefield, or piping between the borefield and the manifold.

• Page 38, Line 11(15.5)  "Supervision" means personal and continuous on-the-site

• Page 38, Line 12on-site direction by a licensed well construction contractor, licensed

• Page 38, Line 13ground heat exchanger contractor, or licensed pump installation

• Page 38, Line 14contractor, unless the licensed contractor has applied for and received

• Page 38, Line 15from the board an exemption from continuous on-the-site on-site direction for a specific task.

• Page 38, Line 16(16) (b) (I)  "Well" does not include:

• Page 38, Line 17(B)  An excavation made for the purpose of obtaining or

• Page 38, Line 18prospecting for minerals or those wells subject to the jurisdiction of the

• Page 38, Line 19energy and carbon management commission, as provided in article 60 of title 34 or in article 90.5 of this title 37;

• Page 38, Line 20(C)  Wells A well subject to the jurisdiction of the office of mined

• Page 38, Line 21land reclamation division of reclamation, mining, and safety, as provided in article 33 articles 32 to 34 of title 34; or

• Page 39, Line 1(D)  Recharge basins or infiltration basins that are

• Page 39, Line 2constructed in such a manner that the intent of their design is to remain above the groundwater level.

• Page 39, Line 3(II)  "Well" does not include a naturally flowing spring or springs

• Page 39, Line 4where the natural spring discharge is captured or concentrated by

• Page 39, Line 5installation of a near-surface structure or device less then than ten feet

• Page 39, Line 6in depth located at or within fifty feet of the spring or springs' natural

• Page 39, Line 7discharge point and the water is conveyed directly by gravity flow or into

• Page 39, Line 8a separate sump or storage, if so long as the owner obtains a water right

• Page 39, Line 9for such the structure or device as a spring pursuant to article 92 of this title title 37.

• Page 39, Line 10(17)  "Well construction contractor" means any person an

• Page 39, Line 11individual licensed pursuant to this article article 91 and responsible

• Page 39, Line 12for the construction, test-pumping, or development of wells, either by contract or for hire, or for any consideration whatsoever.

• Page 39, Line 13SECTION 18.  In Colorado Revised Statutes, 37-91-103, amend (1) and (3) as follows:

• Page 39, Line 1437-91-103.  State board of examiners of water well and ground

• Page 39, Line 15heat exchanger contractors. (1) (a)  There is created, in the division of

• Page 39, Line 16water resources in the department of natural resources, a The state board

• Page 39, Line 17of examiners of water well construction and pump installation and

• Page 39, Line 18ground heat exchanger contractors consisting of five members and

• Page 39, Line 19comprised of is created in the division of water resources within

• Page 39, Line 20the department of natural resources. The board includes the following persons six individuals:

• Page 39, Line 21(I)  The state engineer or a representative designated by the state engineer engineer's designee;

• Page 40, Line 1(II)  A representative of the department of public health and environment designated by the executive director of the department; and

• Page 40, Line 2(III)  three Four members appointed by the governor, two of

• Page 40, Line 3whom must shall be well construction contractors or pump installation

• Page 40, Line 4contractors, each with a minimum of ten years' experience in the well

• Page 40, Line 5construction or pump installation business preceding the individual's

• Page 40, Line 6appointment, and one of whom must shall be an engineer or geologist

• Page 40, Line 7with a minimum of ten years' experience in water supply and well

• Page 40, Line 8construction preceding the individual's appointment, and one of whom

• Page 40, Line 9shall be an individual with a minimum of ten years' experience

• Page 40, Line 10relating to ground heat exchangers preceding the individual's appointment.

• Page 40, Line 11(b)  The state board of examiners of water well construction and

• Page 40, Line 12pump installation and ground heat exchanger contractors is a type 1 entity, as defined in section 24-1-105.

• Page 40, Line 13(3)  The board shall meet at least once every three months and at

• Page 40, Line 14such other times as it deems necessary or advisable. Special Board

• Page 40, Line 15meetings may be called at any time on order of the chairman chair or

• Page 40, Line 16vice-chairman vice-chair or any three four members of the board. The

• Page 40, Line 17board shall determine the time and place of all meetings, but at least one

• Page 40, Line 18meeting every three months shall be held in Denver. Three Four

• Page 40, Line 19members of the board shall constitute a quorum, and the affirmative vote

• Page 40, Line 20of three at least four members shall be is required to pass any action

• Page 40, Line 21or motion of the board. The board may adopt bylaws to govern its own procedure.

• Page 40, Line 22SECTION 19.  In Colorado Revised Statutes, 37-91-104, amend (1)(b), (1)(i), and (1)(l) as follows:

• Page 41, Line 137-91-104.  Duties of the board. (1)  The board shall:

• Page 41, Line 2(b)  Have general supervision and authority over the construction

• Page 41, Line 3and abandonment of wells, construction and abandonment of

• Page 41, Line 4ground heat exchangers, and the installation of pumping equipment, as provided by sections 37-91-109 and 37-91-110;

• Page 41, Line 5(i)  Disseminate information to pump installation contractors,

• Page 41, Line 6ground heat exchanger contractors, and well construction

• Page 41, Line 7contractors in order to protect and preserve the groundwater resources of the state;

• Page 41, Line 8(l) (I)  Assure protection of groundwater resources and the public

• Page 41, Line 9health by ordering the nondestructive investigation, abandonment, repair,

• Page 41, Line 10drilling, redrilling, casing, recasing, deepening, or excavation of a well or

• Page 41, Line 11ground heat exchanger where it the board finds such action to be

• Page 41, Line 12an order necessary to correct violations of this article article 91 or

• Page 41, Line 13rules promulgated adopted by the board with respect pursuant to this

• Page 41, Line 14article article 91 or to protect groundwater resources and the public health.

• Page 41, Line 15(II)  An existing wells well or ground heat exchanger that

• Page 41, Line 16were was constructed in compliance with the laws and regulations in

• Page 41, Line 17effect at the time of their its construction shall is not be required to be

• Page 41, Line 18repaired, redrilled, or otherwise modified to meet the current standards for

• Page 41, Line 19well construction or ground heat exchanger construction

• Page 41, Line 20contained in this article article 91 or the in rules adopted by the board

• Page 41, Line 21pursuant to this article 91. The board may order any such wells

• Page 41, Line 22well or ground heat exchanger that present presents an imminent

• Page 41, Line 23threat to public health or an imminent threat of groundwater

• Page 42, Line 1contamination may be ordered to be repaired or abandoned. The Any

• Page 42, Line 2remedial action required by the board for such wells shall a well or

• Page 42, Line 3ground heat exchanger must be the minimum repair necessary to

• Page 42, Line 4remove the threat to public health or of groundwater pollution. An order

• Page 42, Line 5to abandon a well that is issued under this article article 91 is not a

• Page 42, Line 6determination of intent to abandon any water right associated with the well.

• Page 42, Line 7SECTION 20.  In Colorado Revised Statutes, 37-91-105, amend (1), (2)(d), (2.5), (5), and (7); and add (8) as follows:

• Page 42, Line 837-91-105.  Licensing - registration of rigs. (1)  Every person,

• Page 42, Line 9Before engaging in the business of contracting either for the construction

• Page 42, Line 10of wells a well,the installation of a ground heat exchanger, or

• Page 42, Line 11for the installation of pumping equipment, an individual shall obtain a

• Page 42, Line 12license for one or more methods of well construction, ground heat

• Page 42, Line 13exchanger installation, or pump installation from the board and shall

• Page 42, Line 14secure a registration from the board for each well-drilling, ground heat

• Page 42, Line 15exchanger, or pump-installing rig to be operated or leased by him or his the individual or the individual's employee.

• Page 42, Line 16(2)  The board shall issue a license to each applicant who files an

• Page 42, Line 17application upon a form and in such manner as the board prescribes,

• Page 42, Line 18accompanied by such fees and bond as required by section 37-91-107, and who furnishes evidence satisfactory to the board that the applicant:

• Page 42, Line 19(d)  Has had not less than two years' experience in the type of well

• Page 42, Line 20construction work, ground heat exchanger work, or pump

• Page 42, Line 21installation work for which the applicant is initially applying for a license; however:

• Page 42, Line 22(I)  Once a person An individual who is licensed in one or more

• Page 43, Line 1methods of well construction the person is eligible without further

• Page 43, Line 2experience to take an examination to obtain a license for a different method of well construction;

• Page 43, Line 3(II)  Once a person An individual who is licensed for installing

• Page 43, Line 4one or more types of pumps the person is eligible without further

• Page 43, Line 5experience to take an examination to obtain a license for a different type of pump installation; and

• Page 43, Line 6(III)  An individual's education in an accredited program

• Page 43, Line 7approved by the board may substitute for well construction, ground

• Page 43, Line 8heat exchanger installation, or pump installation experience upon application to and acceptance by the board; and

• Page 43, Line 9(IV)  An individual's possession of a license for well

• Page 43, Line 10construction may substitute for ground heat exchanger

• Page 43, Line 11installation experience upon application to and acceptance by the board.

• Page 43, Line 12(2.5)  The board shall issue a special license for the use of special

• Page 43, Line 13equipment or limited procedures in well construction, ground heat

• Page 43, Line 14exchanger installation, or pump installation to each applicant who

• Page 43, Line 15files an application upon a form and in such manner as the board

• Page 43, Line 16prescribes, accompanied by such fees and bond as are required by section

• Page 43, Line 1737-91-107, and who furnishes evidence satisfactory to the board that he

• Page 43, Line 18the applicant meets the requirements established in subsection (2) of

• Page 43, Line 19this section; except that a special licensee shall is not be eligible to take

• Page 43, Line 20an examination to obtain a license for a different method of well

• Page 43, Line 21construction, ground heat exchanger installation, or pump

• Page 43, Line 22installation unless said the licensee has at least two years of experience

• Page 43, Line 23in the method of well construction, ground heat exchanger

• Page 44, Line 1installation, or pump installation for which the additional license is sought.

• Page 44, Line 2(5)  The examination shall must consist of an oral and written

• Page 44, Line 3examination and shall fairly test the applicant's knowledge and

• Page 44, Line 4application thereof in of the following subjects, respectively, depending on the license type:

• Page 44, Line 5(a)  For a well construction contractor license: Basics of

• Page 44, Line 6drilling methods, specific drilling methods, basics of pump installation

• Page 44, Line 7methods, specific pump installation methods, and basics of well

• Page 44, Line 8construction and his the applicant's knowledge and application of state

• Page 44, Line 9laws and local ordinances concerning the construction of wells or and rules adopted in connection with such laws and ordinances;

• Page 44, Line 10(b)  For a pump installation contractor license: Basics of

• Page 44, Line 11pump installation methods, specific pump installation methods

• Page 44, Line 12and associated pumping equipment, and the applicant's

• Page 44, Line 13knowledge and application of state laws and local ordinances

• Page 44, Line 14concerning the installation of pumping equipment or both, and rules

• Page 44, Line 15promulgated adopted in connection therewith with such laws and ordinances; and

• Page 44, Line 16(c)  For a ground heat exchanger contractor license:

• Page 44, Line 17Basics of ground heat exchanger installation, specific methods

• Page 44, Line 18related to ground heat exchanger installation, and the

• Page 44, Line 19applicant's knowledge and application of state laws and local

• Page 44, Line 20ordinances concerning the installation of ground heat

• Page 44, Line 21exchangers and rules adopted in connection with such laws and ordinances.

• Page 44, Line 22(7)  Each licensee shall complete eight hours of continuing

• Page 45, Line 1education training as approved by the board every year in order to maintain or renew a license.

• Page 45, Line 2(8) (a)  Until the governor appoints to the board a member

• Page 45, Line 3with ten or more years of ground heat exchanger experience,

• Page 45, Line 4and until the board adopts rules concerning the licensing of

• Page 45, Line 5ground heat exchanger contractors, an individual operating

• Page 45, Line 6pursuant to a permit issued from the state engineer may install

• Page 45, Line 7ground heat exchangers in accordance with rules adopted by the state engineer pursuant to section 37-90.5-106.

• Page 45, Line 8(b)  After the time frame described in subsection (8)(a) of

• Page 45, Line 9this section, an individual operating under a permit issued by the

• Page 45, Line 10state engineer who applies for a ground heat exchanger

• Page 45, Line 11contractor license is required to pass an oral examination

• Page 45, Line 12pursuant to subsection (2)(e) of this section but is not required to:

• Page 45, Line 13(I)  Demonstrate their experience pursuant to subsection (2)(d) of this section; or

• Page 45, Line 14(II)  Pass a written examination pursuant to subsection (2)(e) of this section.

• Page 45, Line 15SECTION 21.  In Colorado Revised Statutes, 37-91-106, amend (2) as follows:

• Page 45, Line 1637-91-106.  License - exemptions - rules. (2)  A license shall is

• Page 45, Line 17not be required of any person individual who performs labor or services

• Page 45, Line 18if he the individual is directly employed by, or under the supervision of,

• Page 45, Line 19a licensed well construction contractor, licensed ground heat exchanger contractor, or licensed pump installation contractor.

• Page 45, Line 20SECTION 22.  In Colorado Revised Statutes, 37-91-107, amend (2), (3), (4), (4.5), (5), and (6) as follows:

• Page 46, Line 137-91-107.  Fees and bonds - license renewal - continuing

• Page 46, Line 2education. (2) (a)  The board shall charge require an application fee to

• Page 46, Line 3be paid in the amount of twenty dollars. to The payment of the fee

• Page 46, Line 4must accompany each application from a resident of the state. of

• Page 46, Line 5Colorado and The board shall also require an applicant to pay a

• Page 46, Line 6further fee in the amount of fifty dollars upon the applicant's

• Page 46, Line 7successful completion of the examination and before issuance of the board issues a license.

• Page 46, Line 8(b)  In addition topaying a fee pursuant to subsection (2)(a)

• Page 46, Line 9of this section, each successful resident applicant shall file and

• Page 46, Line 10maintain with the board evidence of financial responsibility in the form

• Page 46, Line 11of a savings account, deposit, or certificate of deposit in the amount of ten

• Page 46, Line 12thousand dollars, meeting the requirements of section 11-35-101, C.R.S.,

• Page 46, Line 13or an irrevocable letter of credit for the amount of ten thousand dollars,

• Page 46, Line 14meeting the requirements of section 11-35-101.5, C.R.S., or shall file and

• Page 46, Line 15maintain with the board an approved compliance bond with a corporate

• Page 46, Line 16surety authorized to do business in the state, of Colorado, in the amount

• Page 46, Line 17of ten thousand dollars, for the use and benefit of any person or the state

• Page 46, Line 18of Colorado suffering loss or damage, conditioned that such the licensee

• Page 46, Line 19will comply with the laws of the state of Colorado in engaging in the

• Page 46, Line 20business for which he the licensee receives a license and the rules of the board promulgated adopted in the regulation of such business.

• Page 46, Line 21(3) (a)  The board shall charge an application fee in the amount

• Page 46, Line 22of fifty dollars, to the payment of which application fee must

• Page 46, Line 23accompany each application from a nonresident of the state. of Colorado

• Page 46, Line 24and The board shall also charge a further nonresident fee of four

• Page 47, Line 1hundred dollars, which a nonresident shall pay upon successful completion of the examination and before the issuance of a license.

• Page 47, Line 2(b)  In addition to paying any fees required by subsection

• Page 47, Line 3(3)(a) of this section, each successful nonresident applicant shall file

• Page 47, Line 4and maintain with the board evidence of financial responsibility in the

• Page 47, Line 5form of a savings account, deposit, or certificate of deposit in the amount

• Page 47, Line 6of twenty thousand dollars, meeting the requirements of section

• Page 47, Line 711-35-101, C.R.S., or shall file and maintain with the board an approved

• Page 47, Line 8compliance bond in the amount of twenty thousand dollars with a

• Page 47, Line 9corporate surety authorized to do business in the state of Colorado for the

• Page 47, Line 10use and benefit of any person or the state of Colorado suffering loss or

• Page 47, Line 11damage, conditioned that such the licensee will shall comply with the

• Page 47, Line 12laws of the state in engaging in the business for which he the licensee

• Page 47, Line 13receives a license and the rules of adopted by the board promulgated in compliance therewith with such laws.

• Page 47, Line 14(4) (a) (I)  Every Each licensed well construction contractor,

• Page 47, Line 15licensed ground heat exchanger contractor, and licensed pump installation contractor in this state shall:

• Page 47, Line 16(A)  Pay to the board during the month of January of each year,

• Page 47, Line 17beginning in the year immediately subsequent to his or her following the licensee's initial licensing, a renewal fee of fifty dollars; shall

• Page 47, Line 18(B)  Concurrently file and thereafter maintain a new bond or letter of credit if required pursuant to this section; and shall

• Page 47, Line 19(C)  Annually file a certificate of completion of continuing education as required pursuant to section 37-91-105 (7).

• Page 47, Line 20(II)  Upon a licensee's satisfaction of the requirements

• Page 47, Line 21described in subsection (4)(a)(I) of this section, the secretary shall

• Page 48, Line 1thereupon issue a renewal license for one year. The license of any well

• Page 48, Line 2construction contractor, ground heat exchanger contractor, or

• Page 48, Line 3pump installation contractor who fails to have his or her their license

• Page 48, Line 4renewed during the month of January in each year shall lapse. Any

• Page 48, Line 5lapses. A lapsed license may be renewed, without reexamination, within

• Page 48, Line 6a period of one year after such lapse it lapses upon payment of all fees

• Page 48, Line 7in arrears. Licensees A licensee may elect to renew their licenses

• Page 48, Line 8license and file and maintain a bond or letter of credit for a term of up

• Page 48, Line 9to three years, paying fifty dollars for each year the license will be in effect.

• Page 48, Line 10(b)  The board shall not set a license renewal fee

• Page 48, Line 11described in subsection (4)(a) of this section or a rig registration

• Page 48, Line 12fee described in subsection (5) of this section in an amount

• Page 48, Line 13greater than is necessary to further the purposes of this article

• Page 48, Line 1491. The amount must not cause the total amount of money

• Page 48, Line 15collected under this article 91 to exceed the direct and indirect costs of the board in administering this article 91.

• Page 48, Line 16(4.5)  A licensee shall maintain the amount of financial

• Page 48, Line 17responsibility required by subsections (2), (3), and (4) of this section for

• Page 48, Line 18the life duration of the license for which the financial responsibility is

• Page 48, Line 19required. The license of any well construction contractor, ground heat

• Page 48, Line 20exchanger contractor, or pump installation contractor who fails to

• Page 48, Line 21maintain such financial responsibility shall lapse lapses. A lapsed

• Page 48, Line 22license that has so lapsed may be reinstated upon the licensee's

• Page 48, Line 23submission of current evidence of the required financial responsibility to

• Page 48, Line 24the board and payment to the board of a one-hundred-dollar reinstatement

• Page 48, Line 25fee in the amount of one hundred dollars.

• Page 49, Line 1(5)  The board shall charge an annual registration fee of ten dollars

• Page 49, Line 2for each well drilling or rig, ground heat exchanger installation rig, and pump installation rig to be operated in the state. of Colorado.

• Page 49, Line 3(6)  The board shall no later than January 7, 2007, develop

• Page 49, Line 4maintain a continuing education program in conjunction with the

• Page 49, Line 5Colorado water well contractors association or any analogous or successor organization.

• Page 49, Line 6SECTION 23.  In Colorado Revised Statutes, 37-91-108, amend

• Page 49, Line 7(1) introductory portion, (1)(d), (1)(f), (1)(g), (1)(h), (3), (4), and (5) as follows:

• Page 49, Line 837-91-108.  Denial, revocation, or suspension of license. (1)  The

• Page 49, Line 9board, by an affirmative vote of three at least four of its five six

• Page 49, Line 10members, may withhold, deny, revoke, or suspend any license issued or

• Page 49, Line 11applied for in accordance with the provisions of this article this article 91, upon proof that the licensee or applicant:

• Page 49, Line 12(d)  Has Knowingly constructed a well, installed a ground

• Page 49, Line 13heat exchanger, or installed pumping equipment without a valid permit;

• Page 49, Line 14(f)  Has Used fraud or deception in collecting fees from persons

• Page 49, Line 15with whom he has the licensee contracted for well construction, ground heat exchanger installation, or pump installation;

• Page 49, Line 16(g)  Has Failed to submit a well completion report or a pump

• Page 49, Line 17installation report pursuant to the requirement therefor in report required by the rules and regulations of the board;

• Page 49, Line 18(h)  Has Authorized a person not directly employed or directly

• Page 49, Line 19supervised by the licensee to construct wells, install ground heat

• Page 49, Line 20exchangers, or install pumping equipment under the authority of the licensee's license; or

• Page 50, Line 1(3)  A hearing upon a complaint may be initiated only if the

• Page 50, Line 2complaint was filed with the board within two years of after the filing

• Page 50, Line 3of the completion report for the well, ground heat exchanger, or

• Page 50, Line 4pumping equipment, the construction or installation of which formed the

• Page 50, Line 5basis of the complaint. If no completion report was filed, a hearing upon

• Page 50, Line 6the complaint may be initiated only if the complaint was filed with the

• Page 50, Line 7board within two years of after the discovery of the violation or defect that constituted the grounds for the complaint.

• Page 50, Line 8(4)  The board may order the nondestructive investigation,

• Page 50, Line 9abandonment, repair, drilling, redrilling, casing, recasing, deepening, or

• Page 50, Line 10excavation of a well or ground heat exchanger to protect

• Page 50, Line 11groundwater resources and the public health if the board finds such the

• Page 50, Line 12action to be necessary to correct violations of article 90 of this title title

• Page 50, Line 1337, this article article 91, or the rules promulgated adopted by the board pursuant to this article article 91.

• Page 50, Line 14(5)  The board may assess fines of not less than at least fifty

• Page 50, Line 15dollars nor more than one thousand dollars for violations of article 90 of

• Page 50, Line 16this title title 37, this article article 91, or the rules promulgated

• Page 50, Line 17adopted by the board pursuant to this article article 91 for each such

• Page 50, Line 18violation. Such The fines shall be transmitted to the state treasurer, who

• Page 50, Line 19shall credit them credited to the well inspection cash fund created in section 37-80-111.5.

• Page 50, Line 20SECTION 24.  In Colorado Revised Statutes, 37-91-109, amend (1) as follows:

• Page 50, Line 2137-91-109.  Further scope of article - orders - penalties.

• Page 50, Line 22(1) (a)  In addition to the licensing of well construction contractors, and

• Page 51, Line 1pump installation contractors as required by this article, no A well or

• Page 51, Line 2ground heat exchanger shall not be located, constructed, repaired, or

• Page 51, Line 3abandoned and no pumping equipment shall not be installed or repaired

• Page 51, Line 4contrary to the provisions of this article this article 91 and applicable

• Page 51, Line 5rules of the board promulgated adopted to effectuate the purposes of this article article 91.

• Page 51, Line 6(b)  The board may by order require any a licensee, private driller,

• Page 51, Line 7or private pump installer to remedy any such noncompliant installation,

• Page 51, Line 8construction, or repair and may, pursuant to rules and after due notice and a hearing, impose penalties for such noncompliance.

• Page 51, Line 9(c)  The provisions of this article shall apply This article 91 applies to:

• Page 51, Line 10(I)  Any well or any pumping equipment that is not otherwise subject to regulation under the laws of this state; and to

• Page 51, Line 11(II)  Any distribution, observation, monitoring, or dewatering of

• Page 51, Line 12water therefrom; but this article shall from any such well or pumping

• Page 51, Line 13equipment; except that this article 91 does not apply to any

• Page 51, Line 14distribution of water beyond the point of discharge from the pressure tank

• Page 51, Line 15or to any distribution of water beyond the point of discharge from the

• Page 51, Line 16pumping equipment if no pressure tank or an overhead pressure tank is employed.

• Page 51, Line 17(d)  This article 91 applies to any ground heat exchanger

• Page 51, Line 18that is not otherwise subject to regulation under the laws of

• Page 51, Line 19this state; except that this article 91 does not apply to any

• Page 51, Line 20distribution of heat-transfer fluid beyond the point of

• Page 51, Line 21transition between the ground heat exchanger piping or ground

• Page 51, Line 22heat exchanger manifold and the distribution lines from the ground heat exchanger manifold.

• Page 52, Line 1SECTION 25.  In Colorado Revised Statutes, 37-91-110, amend (1) introductory portion, (2), and (3); and add (1)(c) as follows:

• Page 52, Line 237-91-110.  Basic principles and minimum standards. (1)  The

• Page 52, Line 3following basic principles, general in scope and fundamental in character,

• Page 52, Line 4shall govern the construction, repair, or abandonment of any a well; the

• Page 52, Line 5installation, repair, or abandonment of a ground heat exchanger; and the installation or repair of any pumping equipment:

• Page 52, Line 6(c)  A ground heat exchanger shall be:

• Page 52, Line 7(I)  Located in a manner that considers the physical

• Page 52, Line 8limitations of the land area and the proximity to other elements

• Page 52, Line 9that might affect the type and configuration of the ground heat exchanger; and

• Page 52, Line 10(II)  Installed or abandoned in a manner that maintains

• Page 52, Line 11natural protection against pollution of water-bearing formations and excludes known sources of contamination.

• Page 52, Line 12(2)  The board shall adopt and may, from time to time, amend rules

• Page 52, Line 13and regulations reasonably necessary to insure ensure the proper

• Page 52, Line 14construction or proper abandonment of wells, the proper installation

• Page 52, Line 15or proper abandonment of ground heat exchangers, and the

• Page 52, Line 16proper installation of pumping equipment. The board has the authority to

• Page 52, Line 17may require the filing of information and reports relating to the

• Page 52, Line 18construction or abandonment of wells, the installation or

• Page 52, Line 19abandonment of ground heat exchangers, and the installation of

• Page 52, Line 20pumping equipment whenever if it may deem deems such action to be necessary.

• Page 52, Line 21(3)  All wells and ground heat exchangers shall be

• Page 53, Line 1constructed or abandoned and all pumping equipment shall be installed

• Page 53, Line 2in compliance with this article article 91 and with the rules and regulations promulgated adopted by the board.

• Page 53, Line 3SECTION 26.  In Colorado Revised Statutes, 37-91-111, amend (1) and (3) as follows:

• Page 53, Line 437-91-111.  Violations and penalties. (1)  It is unlawful:

• Page 53, Line 5(a)  For any person an individual to represent himself themself

• Page 53, Line 6as a well construction contractor, ground heat exchanger

• Page 53, Line 7contractor, or a pump installation contractor who if the individual

• Page 53, Line 8is not licensed under this article article 91 or to so represent himself

• Page 53, Line 9after his the individual's license has been suspended or revoked or has lapsed;

• Page 53, Line 10(b)  For any person an individual who is not licensed under this

• Page 53, Line 11article article 91 to advertise or issue any sign, card, or other device

• Page 53, Line 12which would indicate that he that indicates the individual is a well

• Page 53, Line 13construction contractor, ground heat exchanger contractor, or a pump installation contractor;

• Page 53, Line 14(c)  For any person an individual who is not licensed or whose

• Page 53, Line 15license is suspended to construct wells unless he the individual is a

• Page 53, Line 16private driller or directly employed by or under the supervision of a licensed well construction contractor;

• Page 53, Line 17(d)  For any person an individual who is not licensed or whose

• Page 53, Line 18license is suspended to install pumping equipment unless he the

• Page 53, Line 19individual is a private pump installer or directly employed by or under

• Page 53, Line 20the supervision of a licensed pump installation contractor, except as excluded pursuant to described in section 37-91-106 (4); or

• Page 53, Line 21(d.5)  For an individual who is not licensed or whose

• Page 54, Line 1license is suspended to install a ground heat exchanger unless

• Page 54, Line 2the individual is directly employed by or under the supervision

• Page 54, Line 3of a licensed ground heat exchanger contractor, except as described in section 37-91-105 (8); or

• Page 54, Line 4(e)  For any person an individual to otherwise violate any of the provisions of this article this article 91.

• Page 54, Line 5(3)  Any In addition to any penalty assessed pursuant to

• Page 54, Line 6subsection (2) of this section, a person who violates any provision of

• Page 54, Line 7subsection (1) of this section shall also be is subject to a civil penalty

• Page 54, Line 8assessed by the court of not less than one hundred dollars nor more than

• Page 54, Line 9five thousand dollars for each such violation. All civil penalties collected

• Page 54, Line 10under this subsection (3) shall be transmitted to the state treasurer, who

• Page 54, Line 11shall credit the same credited to the well inspection cash fund created in section 37-80-111.5.

• Page 54, Line 12SECTION 27.  In Colorado Revised Statutes, 37-91-113, amend

• Page 54, Line 13(1), (2) introductory portion, (2)(a), (3) introductory portion, (3)(a), (3)(e), and (3)(f) as follows:

• Page 54, Line 1437-91-113.  Well inspection program. (1)  The state engineer

• Page 54, Line 15shall monitor compliance with this article article 91, including by

• Page 54, Line 16inspecting water well construction, ground heat exchanger

• Page 54, Line 17installation, and pump installation, and the state engineer may

• Page 54, Line 18employ inspectors for such this purpose. The costs of such monitoring

• Page 54, Line 19and inspection shall be paid from the well inspection cash fund created by in section 37-80-111.5.

• Page 54, Line 20(2)  Inspectors shall have the following qualifications, but need not be licensed pursuant to this article article 91:

• Page 54, Line 21(a)  Knowledge of proper well construction, ground heat

• Page 55, Line 1exchanger installation, and pump installation techniques and practices;

• Page 55, Line 2(3)  Inspectors shall annually spend a majority of their time

• Page 55, Line 3conducting field inspections and a minority of their time preparing and

• Page 55, Line 4evaluating reports and related office work. Duties shall include the following:

• Page 55, Line 5(a)  Well construction, ground heat exchanger installation, and pump installation inspection and observation;

• Page 55, Line 6(e)  Field inspections of existing wells, ground heat exchangers, and pumps;

• Page 55, Line 7(f)  Field inspections of well, ground heat exchanger, and hole plugging and abandonment; and

• Page 55, Line 8SECTION 28.  In Colorado Revised Statutes, 24-1-124, amend (4)(d) as follows:

• Page 55, Line 924-1-124.  Department of natural resources - creation - divisions. (4)  The division of water resources includes the following:

• Page 55, Line 10(d)  The state board of examiners of water well construction and

• Page 55, Line 11pump installation and ground heat exchanger contractors created in

• Page 55, Line 12article 91 of title 37 section 37-91-103. The state board of examiners of

• Page 55, Line 13water well construction and pump installation and ground heat

• Page 55, Line 14exchanger contractors is a type 1 entity, as defined in section 24-1-105,

• Page 55, Line 15and exercises its powers and performs its duties and functions under the

• Page 55, Line 16department of natural resources and is allocated to the division of water resources as a section thereof of the division of water resources.

• Page 55, Line 17SECTION 29.  In Colorado Revised Statutes, 24-33-104, amend (1)(e) introductory portion and (1)(e)(IV) as follows:

• Page 55, Line 1824-33-104.  Composition of the department. (1)  The department

• Page 56, Line 1of natural resources consists of the following commissions, divisions, boards, offices, and councils:

• Page 56, Line 2(e)  The division of water resources, the head of which shall be is

• Page 56, Line 3the state engineer. The division shall consist consists of the following sections:

• Page 56, Line 4(IV)  The state board of examiners of water well construction and pump installation and ground heat exchanger contractors.

• Page 56, Line 5SECTION 30.  Act subject to petition - effective date. This act

• Page 56, Line 6takes effect at 12:01 a.m. on the day following the expiration of the

• Page 56, Line 7ninety-day period after final adjournment of the general assembly; except

• Page 56, Line 8that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 56, Line 9of the state constitution against this act or an item, section, or part of this

• Page 56, Line 10act within such period, then the act, item, section, or part will not take

• Page 56, Line 11effect unless approved by the people at the general election to be held in

• Page 56, Line 12November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.