A Bill for an Act
Page 1, Line 101Concerning the process by which the division of
Page 1, Line 102administration in the department of public health and
Page 1, Line 103environment issues permits relating to water quality,
Page 1, Line 104and, in connection therewith, making and reducing an
Page 1, Line 105appropriation.
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/.)
Joint Budget Committee. Current law requires the division of administration (division) within the department of public health and environment to report annually to the water quality control commission (commission) and to include in the report any regulatory or legislative recommendations the division may have. The bill requires the report to also include:
- Information on the division's timing in considering and issuing water quality permits (permits); and
- For the report submitted in 2026, a detailed discussion of how the division has prioritized reducing the permit backlog, implemented recommendations from water quality permittees (permittee) for permitting efficiency, and increased safe drinking water program inspections.
- On July 1, 2025, $111,000 from the water quality improvement fund to the drinking water cash fund;
- On July 1, 2025, $3,518,564 from the perfluoroalkyl and polyfluoroalkyl substances cash fund to the clean water cash fund;
- On July 1, 2026, $3,002,435 from the perfluoroalkyl and polyfluoroalkyl substances cash fund to the clean water cash fund; and
- On July 1, 2026, $516,129 dollars from the perfluoroalkyl and polyfluoroalkyl substances cash fund to the drinking water cash fund.
The bill requires the division, upon receipt of an application to modify a permit, to limit its review and its approval or denial of the application to the scope of the specific requests contained in the application.
The bill requires the commission to adopt rules on or before December 31, 2026, that establish procedures whereby the division, prior to giving public notice of a complete permit application for an individual permit and the division's preliminary analysis of the application, may provide a period of public notice and review of a preliminary draft prepared by the division. If a period of public notice and review is required by rules of the commission, the period of public notice and review may not exceed 14 days, and the purpose of the review is limited to identifying errors in the division's preliminary draft.
On or before December 31, 2027, the division must propose rules to the commission that establish a time frame during which the division will either grant or deny applications for each type of permitting action. On or before June 30, 2028, the commission must adopt rules based on the division's proposal. The rules must establish the time frames for permitting actions.
The bill requires the division to consider current debt service on existing local government water infrastructure when developing schedules of compliance for new effluent limits in local government permits. Any schedule of compliance for new effluent limits in local government permits must, consistent with state and federal law, consider the local government's financial capability to repay existing debt on water infrastructure or to fund water infrastructure upgrades before requiring new water infrastructure upgrades. To the extent allowable under federal law, the division may issue compliance schedules in a local government permit for a new effluent limit in excess of 20 years.
The bill states that, on and after May 1, 2026, after an application for permit modification or permit renewal has been pending before the division for 60 days, or for any application for permit modification or permit renewal that is pending before the division as of May 1, 2026, or if the division informs an applicant that the division will not process an application for preliminary effluent limitations, the applicant and the division may mutually agree to use a qualified and independent nongovernmental contractor (contractor) under the direction of the division to provide the division with technical assistance in completing the permit action. The division shall maintain a list of at least 3 qualified nongovernmental contractors for this purpose.
An applicant shall bear the contractor's costs for any technical assistance provided by the contractor and shall pay the contractor for such costs. The division may charge an applicant an additional fee in an amount not exceeding 10% of the contract amount for contract administration, technical review, and additional permit processing, which fee is credited to the clean water cash fund. The division may, before issuing its final permit action, require the applicant to fully pay this fee and any contractor costs. The division shall provide oversight to ensure that contractors provide technical assistance in accordance with the terms of their contracts.
The bill requires the division, upon a permittee's request, to make available to the permittee all documents, data, and information the division relied upon in developing the permittee's permit modification or permit renewal, except to the extent that such materials are protected by an applicable privilege or exception.
The bill makes the following transfers of money:
Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 3, Line 2SECTION 1. In Colorado Revised Statutes, 25-8-305, amend (2)(f) and (4)(b); and add (2)(h) and (4)(c) as follows:
Page 3, Line 325-8-305. Annual report - repeal. (2) The annual report
Page 3, Line 4described in subsection (1) of this section must include information on the
Page 3, Line 5division's:
Page 4, Line 1(f) Ratio of general fund appropriations to cash fund
Page 4, Line 2appropriations that were authorized for the state fiscal year immediately preceding the date of the report;
andPage 4, Line 3(h) Timing in considering and issuing permits, including the
Page 4, Line 4number of years administratively continued permits have been
Page 4, Line 5pending, categorized by years pending, and a narrative
Page 4, Line 6description of the division's plan for processing administratively
Page 4, Line 7continued permits that have been administratively continued for longer than five years.
Page 4, Line 8(4) (b)
This subsection (4) is repealed, effective July 1, 2026Page 4, Line 9report that the division submits in 2026 must include a detailed
Page 4, Line 10discussion of how the division has prioritized reducing the water
Page 4, Line 11quality permit backlog, implemented recommendations from
Page 4, Line 12permittees for permitting efficiency, and increased the number of safe drinking water program inspections.
Page 4, Line 13(c) This subsection (4) is repealed, effective July 1, 2027.
Page 4, Line 14SECTION 2. In Colorado Revised Statutes, 25-8-501, amend (2) as follows:
Page 4, Line 1525-8-501. Permits required for discharge of pollutants -
Page 4, Line 16administration. (2) (a) The division shall examine applications for and
Page 4, Line 17may issue, suspend, revoke, modify, deny, and otherwise administer
Page 4, Line 18permits for the discharge of pollutants into state waters and for the use
Page 4, Line 19and disposal of biosolids.
SuchPage 4, Line 20with
the provisions ofarticleregulations promulgatedPage 4, Line 21rules adopted by the commission. Until modified pursuant to this
Page 4, Line 22
articlePage 4, Line 23limitations.
Page 5, Line 1(b) Upon receipt of an application to modify a permit, the
Page 5, Line 2division shall limit its review and, as appropriate, its approval or
Page 5, Line 3denial of the application, to the scope of the specific requests contained in the application.
Page 5, Line 4SECTION 3. In Colorado Revised Statutes, 25-8-502, add (3)(d) and (7) as follows:
Page 5, Line 525-8-502. Application - definitions - fees - funds created -
Page 5, Line 6public participation - rules - repeal. (3) (d) On or before December
Page 5, Line 731, 2026, the commission shall adopt rules establishing
Page 5, Line 8procedures whereby the division, prior to giving public notice of
Page 5, Line 9a complete permit application for an individual permit and the
Page 5, Line 10division's preliminary analysis of the application pursuant to
Page 5, Line 11subsection (3)(b) of this section, may provide a period of public
Page 5, Line 12notice and review of a preliminary draft prepared by the
Page 5, Line 13division. If a period of public notice and review is required by
Page 5, Line 14rules of the commission, the period of public notice and review
Page 5, Line 15may not exceed fourteen days, and the purpose of the review is
Page 5, Line 16limited to identifying errors in the division's preliminary draft.
Page 5, Line 17The division shall make available on the division's public website
Page 5, Line 18any documents provided by the division during a period of public notice and review.
Page 5, Line 19(7) (a) On or before December 31, 2027, the division shall
Page 5, Line 20propose rules to the commission that establish a time frame
Page 5, Line 21during which the division will either grant or deny applications
Page 5, Line 22for each type of permitting action. On or before June 30, 2028,
Page 5, Line 23the commission shall adopt rules based on the division's
Page 5, Line 24proposal. The rules must establish the time frames for permitting actions, including:
Page 6, Line 1(I) The issuance of new individual permits and new general permits;
Page 6, Line 2(II) The renewal of general permits and individual permits;
Page 6, Line 3(III) The granting or denying of requests for permit modifications; and
Page 6, Line 4(IV) The determination of preliminary effluent limitations.
Page 6, Line 5(b) (I) The division shall begin the process to create a
Page 6, Line 6proposal of time frames for permitting actions for the purposes of subsection (7)(a) of this section on or before August 1, 2025.
Page 6, Line 7(II) This subsection (7)(b) is repealed, effective July 1, 2026.
Page 6, Line 8SECTION 4. In Colorado Revised Statutes, 25-8-503, add (10) as follows:
Page 6, Line 925-8-503. Permits - when required and when prohibited -
Page 6, Line 10variances - definition. (10) (a) The division shall consider current
Page 6, Line 11debt service on existing local government water infrastructure
Page 6, Line 12when developing schedules of compliance for new effluent limits in local government permits.
Page 6, Line 13(b) Any schedule of compliance that the division develops
Page 6, Line 14for new effluent limits in local government permits must,
Page 6, Line 15consistent with state and federal law, consider the local
Page 6, Line 16government's financial capability to repay existing debt on
Page 6, Line 17water infrastructure or to fund water infrastructure upgrades
Page 6, Line 18before requiring new water infrastructure upgrades. To the
Page 6, Line 19extent allowable under federal law, the division may establish
Page 6, Line 20compliance schedules in a local government permit for a new effluent limit in excess of twenty years.
Page 7, Line 1(c) As used in this subsection (10), "water infrastructure"
Page 7, Line 2includes wastewater treatment infrastructure, drinking water treatment infrastructure, and raw water infrastructure.
Page 7, Line 3SECTION 5. In Colorado Revised Statutes, add 25-8-503.7 as follows:
Page 7, Line 425-8-503.7. Use of qualified and independent contractors -
Page 7, Line 5powers and duties of the division - fees - definitions. (1) On and
Page 7, Line 6after May 1, 2026, an applicant and the division may mutually
Page 7, Line 7agree to use a qualified and independent nongovernmental
Page 7, Line 8contractor under the direction of the division to provide the
Page 7, Line 9division with technical assistance in completing the permit action if:
Page 7, Line 10(a) An application for permit modification or permit renewal has been pending before the division for sixty days;
Page 7, Line 11(b) An application for permit modification or permit renewal is pending before the division as of May 1, 2026; or
Page 7, Line 12(c) The division informs an applicant that the division will not process an application for preliminary effluent limitations.
Page 7, Line 13(2) A contractor that provides technical assistance
Page 7, Line 14pursuant to this section may assist the division with some or all of the following, at the division's discretion:
Page 7, Line 15(a) Preparing the division's proposed permit action;
Page 7, Line 16(b) Preparing the division's responses to public comments received on the proposed permit action, if any;
Page 7, Line 17(c) Preparing the division's final permit action;
Page 7, Line 18(d) Aiding in the division's defense of the final permit action in any administrative adjudicatory proceedings; and
Page 8, Line 1(e) Aiding in the division's defense of the final permit action in any judicial proceedings.
Page 8, Line 2(3) The applicant shall bear the contractor's costs for
Page 8, Line 3any technical assistance provided pursuant to this section and
Page 8, Line 4shall remit payment for the costs directly to the contractor.
Page 8, Line 5The division may charge the applicant an additional fee in an
Page 8, Line 6amount not exceeding ten percent of the contract amount for
Page 8, Line 7contract administration, technical review, and additional
Page 8, Line 8permit processing. Money collected as an additional fee shall
Page 8, Line 9be credited to the clean water cash fund created in section
Page 8, Line 1025-8-210. The division may, before issuing its final permit action,
Page 8, Line 11require the applicant to fully pay the additional fee and any contractor costs.
Page 8, Line 12(4) (a) The division, in its sole discretion, shall provide
Page 8, Line 13oversight to ensure that contractors provide technical
Page 8, Line 14assistance in accordance with the terms of their contracts. The
Page 8, Line 15division may require a contractor's technical assistance to
Page 8, Line 16conform to all commission rules, division policies, and division practices applicable to the permit action in question.
Page 8, Line 17(b) The division may deem some or all of the contractor's
Page 8, Line 18technical assistance as unacceptable and may reject, require
Page 8, Line 19correction of, or deny approval for such assistance. The
Page 8, Line 20division's rejection, required correction, or denial of approval
Page 8, Line 21of a contractor's technical assistance is not subject to judicial
Page 8, Line 22or administrative review and does not relieve an applicant of
Page 8, Line 23the obligation to pay the contractor's costs for such technical assistance.
Page 9, Line 1(c) The division's use of contractors pursuant to this
Page 9, Line 2section does not relieve the division of its obligations under this article 8.
Page 9, Line 3(d) The division is not subject to the requirements of the
Page 9, Line 4"Procurement Code", articles 101 to 112 of title 24, in selecting or contracting with the contractors.
Page 9, Line 5(5) As used in this section, unless the context otherwise requires:
Page 9, Line 6(a) "Conflict of interest" means a direct and substantial
Page 9, Line 7personal or financial interest in the outcome of a permit or
Page 9, Line 8permit action such that a contractor is unable to fulfill its duty to remain fair, impartial, or objective.
Page 9, Line 9(b) "Independent" means having no conflict of interest with a permittee.
Page 9, Line 10(c) "Qualified" means having substantial professional education, training, or experience in water quality permitting.
Page 9, Line 11SECTION 6. In Colorado Revised Statutes, 25-8-210, add (4)(a)(I.2) as follows:
Page 9, Line 1225-8-210. Fees established administratively - rules -
Page 9, Line 13shareholding requirement - phase-in period - clean water cash fund
Page 9, Line 14- creation - repeal. (4) (a) The clean water cash fund is created in the state treasury. The fund consists of:
Page 9, Line 15(I.2) Fees collected pursuant to section 25-8-503.7 (3);
Page 9, Line 16SECTION 7. In Colorado Revised Statutes, add 25-8-503.8 as follows:
Page 9, Line 1725-8-503.8. Documents, information, and data utilized in
Page 10, Line 1developing permits.Upon a permittee's request, the division shall
Page 10, Line 2make available to the permittee all documents, data, and
Page 10, Line 3information the division relied upon in developing the permittee's
Page 10, Line 4permit modification or permit, including any model, tool, or
Page 10, Line 5tabular worksheet and any formulas, macros, metadata, and
Page 10, Line 6calculations contained in such materials, except to the extent
Page 10, Line 7that the documents, data, and information are protected by an
Page 10, Line 8applicable privilege, such as the attorney-client privilege or the
Page 10, Line 9deliberative-process privilege, or are subject to an exception from disclosure set forth in section 24-72-204.
Page 10, Line 10SECTION 8. In Colorado Revised Statutes, 25-8-608, amend (1.8) as follows:
Page 10, Line 1125-8-608. Civil penalties - rules - fund created - temporary
Page 10, Line 12moratorium on penalties for minor violations - definitions - repeal.
Page 10, Line 13(1.8) (a) Notwithstanding any provision of subsection (1.5) or (1.7) of
Page 10, Line 14this section to the contrary, on
April 20, 2009Page 10, Line 15treasurer shall
deduct seven hundred thousand dollarsPage 10, Line 16hundred eleven thousand dollars from the water quality
Page 10, Line 17improvement fund
and transfer such sumgeneral fundPage 10, Line 18(b) This subsection (1.8) is repealed, effective August 1, 2026.
Page 10, Line 19SECTION 9. In Colorado Revised Statutes, 8-20-206.5, add (7)(d) as follows:
Page 10, Line 208-20-206.5. Environmental response surcharge - liquefied
Page 10, Line 21petroleum gas and natural gas inspection fund - perfluoroalkyl and
Page 10, Line 22polyfluoroalkyl substances cash fund - hazardous materials
Page 11, Line 1infrastructure cash fund - fuels impact reduction grant program -
Page 11, Line 2definitions - repeal. (7) (d) (I) Notwithstanding subsection (7)(c)
Page 11, Line 3of this section, the state treasurer shall transfer the following amounts from the fund on the following dates:
Page 11, Line 4(A) On July 1, 2025, three million five hundred eighteen
Page 11, Line 5thousand five hundred sixty-four dollars to the clean water cash fund created in section 25-8-210;
Page 11, Line 6(B) On July 1, 2026, three million two thousand four
Page 11, Line 7hundred thirty-five dollars to the clean water cash fund created in section 25-8-210; and
Page 11, Line 8(C) On July 1, 2026, five hundred sixteen thousand one
Page 11, Line 9hundred twenty-nine dollars to the drinking water cash fund created in section 25-1.5-209 (2).
Page 11, Line 10(II) This subsection (7)(d) is repealed, effective July 1, 2028.
Page 11, Line 11SECTION 10. Appropriation. (1) For the 2025-26 state fiscal
Page 11, Line 12year, $2,904,599 is appropriated to the department of public health and
Page 11, Line 13environment. This appropriation consists of $446,315 from the drinking
Page 11, Line 14water cash fund created in section 25-1.5-209 (2)(a), C.R.S., and
Page 11, Line 15$2,458,284 from the clean water cash fund created in section 25-8-210
Page 11, Line 16(4)(a), C.R.S. To implement this act, the department may use this appropriation as follows:
Page 11, Line 17(a) $2,035,705, from the clean water cash fund for clean water
Page 11, Line 18program costs which amount is based on an assumption that the department will require an additional 18.0 FTE;
Page 11, Line 19(b) $385,345 from the drinking water cash fund for use by the
Page 11, Line 20drinking water program for personal services, which amount is based on
Page 11, Line 21an assumption that the department will require an additional 4.0 FTE;
Page 12, Line 1(c) $322,938, which consists of $60,970 from the drinking water
Page 12, Line 2cash fund and $261,968 from the clean water cash fund for use by the water quality control division for indirect cost assessments; and
Page 12, Line 3(d) $160,611 from the clean water cash fund for the purchase of legal services.
Page 12, Line 4(2) For the 2025-26 state fiscal year, $160,611 is appropriated to
Page 12, Line 5the department of law. This appropriation is from reappropriated funds
Page 12, Line 6received from the department of public health and environment under
Page 12, Line 7subsection (1)(d) of this section and is based on an assumption that the
Page 12, Line 8department of law will require an additional 0.7 FTE. To implement this
Page 12, Line 9act, the department of law may use this appropriation to provide legal services for the department of public health and environment.
Page 12, Line 10SECTION 11. Appropriation - adjustments to 2025 long bill.
Page 12, Line 11(1) To implement this act, appropriations made in the annual general
Page 12, Line 12appropriation act for the 2025-26 state fiscal year to the department of
Page 12, Line 13public health and environment for use by the adminstration and support division are adjusted as follows:
Page 12, Line 14(a) The general fund appropriation for health, life, and dental is decreased by $171,630;
Page 12, Line 15(b) The appropriation for health, life, and dental is increased by
Page 12, Line 16$171,630 which consists of $31,205 from the drinking water cash fund
Page 12, Line 17created in section 25-1.5-209 (2)(a), C.R.S., and $140,425 from the clean water cash fund created in section 25-8-210 (4)(a), C.R.S.
Page 12, Line 18(c) The general fund appropriation for short-term disability is decreased by $2,140;
Page 12, Line 19(d) The appropriation for short-term disability is increased by
Page 12, Line 20$2,140, which consists of $389 from the drinking water cash fund created
Page 13, Line 1in section 25-1.5-209 (2)(a), C.R.S., and $1,751 from the clean water cash fund created in section 25-8-210 (4)(a), C.R.S.
Page 13, Line 2(e) The general fund appropriation for unfunded liability
Page 13, Line 3amortization equalization disbursement payments is decreased by $140,238; and
Page 13, Line 4(f) The appropriation for unfunded liability amortization
Page 13, Line 5equalization disbursement payments is increased by $140,238, which
Page 13, Line 6consists of $25,498 from the drinking water cash fund created in section
Page 13, Line 725-1.5-209 (2)(a), C.R.S., and $114,740 from the clean water cash fund created in section 25-8-210 (4)(a), C.R.S.
Page 13, Line 8SECTION 12. Safety clause. The general assembly finds,
Page 13, Line 9determines, and declares that this act is necessary for the immediate
Page 13, Line 10preservation of the public peace, health, or safety or for appropriations for
Page 13, Line 11the support and maintenance of the departments of the state and state institutions.