House Bill 25-1165 Preamended

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:

• This Unofficial Version Includes Committee

• Amendments Not Yet Adopted on Second Reading

• 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 (5) 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)  Liability arises from conduct of the geologic storage

• Page 20, Line 4operator associated with the geologic storage operations or

• Page 20, Line 5any associated geologic storage facility and, if the commission

• Page 20, Line 6had known of the conduct at the time of considering the request

• Page 20, Line 7to approve site closure, such knowledge would have materially affected the commission's decision to approve site closure; or

• Page 20, Line 8(IV)  There is fluid migration for which the geologic

• Page 20, Line 9storage operator is responsible that causes or threatens to

• Page 20, Line 10cause imminent and substantial endangerment to an underground source of drinking water.

• Page 20, Line 11(e)  After notice and hearing, the commission may reimpose

• Page 20, Line 12any regulatory liability from which the geologic storage

• Page 20, Line 13operator has been released pursuant to subsection (9.4)(c)(III) of

• Page 20, Line 14this section and financial assurance obligations, if the commission determines that:

• Page 20, Line 15(I)  The geologic storage operator made a material

• Page 20, Line 16misrepresentation or omission that caused the commission to approve a site closure;

• Page 20, Line 17(II)  The geologic storage operator was in material

• Page 20, Line 18violation of a duty imposed on the operator by state law,

• Page 20, Line 19including by rules, prior to approval of a site closure, the

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

• Page 20, Line 21(III)  There is migration of the injection carbon dioxide for

• Page 21, Line 1which the geologic storage operator is responsible that causes

• Page 21, Line 2or threatens to cause imminent and substantial endangerment to an underground source of drinking water.

• Page 21, Line 3(f)  Nothing in this subsection (9.4) waives, abrogates, or

• Page 21, Line 4limits governmental immunity, as described in article 10 of title

• Page 21, Line 524. Geologic storage facilities, geologic storage locations,

• Page 21, Line 6geologic storage resources, injection carbon dioxide, and

• Page 21, Line 7facilities associated with geologic storage operations are not

• Page 21, Line 8gas facilities for the purposes of section 24-10-106 (1)(f) and do

• Page 21, Line 9not constitute any other area or facility for which sovereign immunity is waived pursuant to section 24-10-106 (1).

• Page 21, Line 10SECTION 5.  In Colorado Revised Statutes, 34-60-140, amend (2)(a)(II) introductory portion as follows:

• Page 21, Line 1134-60-140.  Ownership of geologic storage resources and

• Page 21, Line 12injection carbon dioxide - legislative declaration. (2) (a)  Except as set forth in subsection (5) of this section:

• Page 21, Line 13(II)  Until ownership of injection carbon dioxide and the facilities

• Page 21, Line 14and equipment that store injection carbon dioxide in the state transfer

• Page 21, Line 15to the state pursuant to section 34-60-106 (9.4)(c)(I), such ownership is vested in:

• Page 21, Line 16SECTION 6.  In Colorado Revised Statutes, 37-80-111.5, amend (1)(d) as follows:

• Page 21, Line 1737-80-111.5.  Fees - rules - satellite monitoring system cash

• Page 21, Line 18fund - well inspection cash fund - created. (1) (d)  Of each fee collected

• Page 21, Line 19pursuant to sections 37-90-105 (3)(a)(I) and (4)(a); 37-90-107 (7)(d)(I);

• Page 21, Line 2037-90-116 (1)(a), (1)(c), and (1)(h); 37-90-137 (2)(a); 37-90.5-106;

• Page 21, Line 2137-90.5-107; and 37-92-602 (3)(a) and (5), forty dollars a portion shall

• Page 22, Line 1be credited to the well inspection cash fund, which fund is hereby created.

• Page 22, Line 2Moneys The amount of the portion transferred to the well

• Page 22, Line 3inspection cash fund is forty dollars, and this amount may be

• Page 22, Line 4modified by rules adopted by the board of examiners pursuant to

• Page 22, Line 5section 37-91-104 (1)(c). Money in the well inspection cash fund shall

• Page 22, Line 6be continuously appropriated to and expended by the state engineer for

• Page 22, Line 7the purposes established in section 37-91-113. Any moneys money

• Page 22, Line 8credited to the well inspection cash fund and unexpended at the end of

• Page 22, Line 9any given state fiscal year remain remains in the fund and do does not

• Page 22, Line 10revert to the general fund. All interest derived from the deposit and

• Page 22, Line 11investment of this fund remain remains in the fund and do does not revert to the general fund.

• Page 22, Line 12SECTION 7.  In Colorado Revised Statutes, 37-80-111.7, amend (2) introductory portion and (2)(b) as follows:

• Page 22, Line 1337-80-111.7.  Water resources cash fund - created - uses.

• Page 22, Line 14(2)  The state engineer shall collect the following fees and transmit them

• Page 22, Line 15to the state treasurer, who shall credit them to the fund, except as

• Page 22, Line 16specified in paragraph (b) of this subsection (2) subsection (2)(b) of this section:

• Page 22, Line 17(b)  The state engineer shall collect fees pursuant to sections

• Page 22, Line 1837-90-105 (3)(a) and (4); 37-90-107 (7)(c)(I) and (7)(d)(I); 37-90-108 (4)

• Page 22, Line 19and (6); 37-90-116 (1)(a), (1)(c), (1)(h), and (1)(i); 37-90-137 (2), (3)(a),

• Page 22, Line 20and (3)(c); 37-90.5-106; 37-90.5-107; 37-92-305 (17); 37-92-308; and

• Page 22, Line 2137-92-602 (1)(g)(III)(C), (3)(a), and (5). The state treasurer shall credit

• Page 22, Line 22the 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 23SECTION 8.  In Colorado Revised Statutes, 37-90-103, amend (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 24, Line 1precludes the designation of any aquifer or basin, or any portion thereof,

• Page 24, Line 2which of an aquifer or basin, that is otherwise eligible for

• Page 24, Line 3designation under the standard set forth in subsection (6) of this section

• Page 24, Line 4relating to groundwater in areas not adjacent to a continuously flowing

• Page 24, Line 5natural stream wherein groundwater withdrawals have constituted the

• Page 24, Line 6principal water usage for at least fifteen years preceding the date of the first hearing on the proposed designation of a basin.

• Page 24, Line 7SECTION 9.  In Colorado Revised Statutes, 37-90-137, amend

• Page 24, Line 8(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 937-90-137.  Permits to construct wells outside designated

• Page 24, Line 10basins - fees - permit no groundwater right - evidence - time

• Page 24, Line 11limitation - well permits - rules - definition. (2) (a) (II)  Effective July

• Page 24, Line 121, 2006, upon receipt of an application for a replacement well or a new,

• Page 24, Line 13increased, or additional supply of groundwater from an area outside the

• Page 24, Line 14boundaries of a designated groundwater basin, accompanied by a filing

• Page 24, Line 15fee of one hundred dollars, the state engineer shall make a determination

• Page 24, Line 16as to whether or not the exercise of the requested permit will materially

• Page 24, Line 17injure the vested water rights or prior geothermal operations of others.

• Page 24, Line 18(b) (I)  The state engineer shall issue a permit to construct a well only if:

• Page 24, Line 19(A)  The state engineer finds, as substantiated by hydrological and

• Page 24, Line 20geological facts, that there is unappropriated water available for

• Page 24, Line 21withdrawal 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 22(B)  Except as specified in subparagraph (II) of this paragraph (b)

• Page 25, Line 1subsection (2)(b)(II) of this section, the location of the proposed well

• Page 25, Line 2will be more than six hundred feet from an existing well completed in

• Page 25, Line 3the same aquifer and more than one mile from a prior geothermal operation.

• Page 25, Line 4(II)  If the state engineer, after a hearing, finds that circumstances

• Page 25, Line 5in a particular instance so warrant, or if a court decree is entered for the

• Page 25, Line 6proposed well location after notice has been given in accordance with

• Page 25, Line 7sub-subparagraph (B) of this subparagraph (II) subsection (2)(b)(II)(B)

• Page 25, Line 8of this section, the state engineer may issue a permit without regard to

• Page 25, Line 9the limitation specified in sub-subparagraph (B) of subparagraph (I) of

• Page 25, Line 10this paragraph (b) subsection (2)(b)(I)(B) of this section; except that

• Page 25, Line 11no a hearing shall be is not required and the state engineer may issue a

• Page 25, Line 12well permit without regard to the limitation specified in sub-subparagraph

• Page 25, Line 13(B) of subparagraph (I) of this paragraph (b) subsection (2)(b)(I)(B) of this section:

• Page 25, Line 14(A)  If the state engineer notifies the owners of all wells within six

• Page 25, Line 15hundred feet of the proposed well by certified mail and receives no

• Page 25, Line 16response within the time set forth in the notice, and if the proposed

• Page 25, Line 17well is located within one mile of a prior geothermal operation,

• Page 25, Line 18and the state engineer notifies the prior geothermal operation's

• Page 25, Line 19designated individuals by certified mail and the energy and

• Page 25, Line 20carbon management commission by electronic mail and receives no response within the time set forth in the notice;

• Page 25, Line 21(B)  If the proposed well is part of a water court proceeding

• Page 25, Line 22adjudicating the water right for the well, or if the proposed well is part of

• Page 25, Line 23an adjudication of a plan for augmentation or change of water right and

• Page 25, Line 24if evidence is provided to the water court that the applicant has given

• Page 26, Line 1notice of the water court application, at least fourteen days before making

• Page 26, Line 2the application, by registered or certified mail, return receipt requested,

• Page 26, Line 3to the owners of record of all wells within six hundred feet of the

• Page 26, Line 4proposed well and to all owners or operators of prior geothermal operations within one 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" or "materially injure" means

• Page 26, Line 10"materially injure a valid prior geothermal operation", as defined in section 37-90.5-106 (1)(c).

• Page 26, Line 11(II)  "Prior geothermal operation" has the meaning set forth in section 37-90.5-103 (14.5).

• Page 26, Line 12(7.5) (a)  Except as required by subsection (7.5)(b) of this

• Page 26, Line 13section, a permit from the state engineer is not required in the

• Page 26, Line 14case of withdrawing nontributary groundwater from a geologic

• Page 26, Line 15formation if the withdrawal is permitted as a deep geothermal

• Page 26, Line 16operation, as defined in section 37-90.5-103 (3), and the

• Page 26, Line 17withdrawn nontributary groundwater will be used only for operations to extract or utilize heat, including:

• Page 26, Line 18(I)  Generating electricity;

• (II)  Heating and cooling buildings;

• Page 26, Line 19(III)  Heating swimming pools, public bathhouses, or

• Page 26, Line 20developed hot springs facilities;

• (IV)  Heating aquaculture;

• Page 27, Line 1(V)  Melting snow or ice;

• Page 27, Line 2(VI)  Heating to facilitate carbon dioxide capture or hydrogen production;

• Page 27, Line 3(VII)  Deep geothermal exploration, resource confirmation, or reservoir enhancement; and

• Page 27, Line 4(VIII)  Heating and drying for other industrial processes.

• Page 27, Line 5(b)  A well permit is required if the operator will use the

• Page 27, Line 6nontributary groundwater for additional beneficial uses unrelated to the extraction or utilization of heat.

• Page 27, Line 7SECTION 10.  In Colorado Revised Statutes, 37-90.5-102, amend (1)(b) as follows:

• Page 27, Line 837-90.5-102.  Legislative declaration. (1)  The general assembly hereby declares that:

• Page 27, Line 9(b)  The development of geothermal resources should be

• Page 27, Line 10undertaken in such a manner as to safeguard life, health, property, public

• Page 27, Line 11welfare, historic geothermal hot springs, and the environment,

• Page 27, Line 12including wildlife resources; encourage the maximum economic recovery

• Page 27, Line 13of each resource and prevent its waste; and protect associated correlative rights.

• Page 27, Line 14SECTION 11.  In Colorado Revised Statutes, 37-90.5-103, amend (1)(b) and (3)(c)(II); repeal (13); and add (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(13)  "Nonconsumptive geothermal operation" means an operation

• Page 28, Line 7using geothermal resources in which the volume of geothermal fluid

• Page 28, Line 8extracted from an aquifer or formation is no more than the volume of the

• Page 28, Line 9geothermal fluid reinjected in the same aquifer or formation over a reasonable time frame and distance.

• Page 28, Line 10(14.5)  "Prior geothermal operation" means:

• Page 28, Line 11(a)  A geothermal well, operation, district, or unit

• Page 28, Line 12authorized by the state engineer or the energy and carbon management commission pursuant to this article 90.5; or

• Page 28, Line 13(b)  A commercial geothermal hot spring with vested water rights.

• Page 28, Line 14SECTION 12.  In Colorado Revised Statutes, 37-90.5-104, amend (2) and (4); and repeal (5) as follows:

• Page 28, Line 1537-90.5-104.  Ownership declaration. (2)  The property right to

• Page 28, Line 16a hot dry rock resource or a geothermal resource associated with

• Page 28, Line 17nontributary groundwater is an incident of the ownership of the overlying

• Page 28, Line 18surface, unless the property right is severed, reserved, or transferred with

• Page 28, Line 19the subsurface estate expressly or is otherwise expressly separate

• Page 28, Line 20from the surface estate. Geothermal resources associated with

• Page 28, Line 21nontributary groundwater shall not be transferred separately

• Page 29, Line 1from the nontributary groundwater. With respect to any

• Page 29, Line 2severance, reservation, or transfer occurring after July 1, 2025:

• Page 29, Line 3(a)  For any severance, reservation, or transfer of

• Page 29, Line 4nontributary groundwater, there is a rebuttable presumption

• Page 29, Line 5that the severance, reservation, or transfer includes any

• Page 29, Line 6associated geothermal resources unless the severance, reservation, or transfer expressly states otherwise; and

• Page 29, Line 7(b)  For any severance, reservation, or transfer of

• Page 29, Line 8geothermal resources associated with nontributary

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

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

• Page 29, Line 11nontributary groundwater unless the severance, reservation, or transfer expressly states otherwise.

• Page 29, Line 12(4)  Notwithstanding any provision of this section to the contrary, nothing in this section:

• Page 29, Line 13(a)  Derogates the rights of a landowner to nontributary groundwater; or

• Page 29, Line 14(b)  Affects any ownership or rights to a geothermal resource

• Page 29, Line 15associated with nontributary groundwater, which resource is acquired before July 1, 2023; or

• Page 29, Line 16(c)  Prevents an owner of nontributary groundwater

• Page 29, Line 17rights from accessing nontributary groundwater for

• Page 29, Line 18nongeothermal purposes that will not materially injure a valid prior geothermal operation.

• Page 29, Line 19(5)  Notwithstanding any provision of this section to the contrary,

• Page 29, Line 20geothermal resources associated with nontributary groundwater shall not be transferred separately from the nontributary groundwater.

• Page 30, Line 1SECTION 13.  In Colorado Revised Statutes, 37-90.5-106,

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

• Page 30, Line 337-90.5-106.  Regulation of geothermal resource operations -

• Page 30, Line 4reinjection - fees - rules. (1) (a) (I)  The state engineer has and the

• Page 30, Line 5board of examiners of water well and ground heat exchanger

• Page 30, Line 6contractors created in section 37-91-103 have the exclusive

• Page 30, Line 7authority to regulate shallow geothermal operations and may adopt rules that regulate shallow geothermal operations.

• Page 30, Line 8(II)  Prior to Before constructing a test bore, ground heat

• Page 30, Line 9exchanger, monitoring well, or production well or reworking an

• Page 30, Line 10existing well associated with shallow geothermal operations, a person

• Page 30, Line 11shall obtain an operations permit must be obtained from the state engineer.

• Page 30, Line 12(b) (III)  In issuing an operations permit pursuant to subsection (1)(b)(II) of this section, the commission:

• Page 30, Line 13(A)  May allow for the use of groundwater as part of

• Page 30, Line 14nonconsumptive geothermal operations pursuant to section 37-90-137

• Page 30, Line 15(7.5)(a) as a material medium for allocated geothermal resources that

• Page 30, Line 16have been determined to be nontributary pursuant to section 37-90.5-107 (1)(b);

• Page 30, Line 17(B)  Shall, to the extent practicable, ensure that the

• Page 30, Line 18proposed operation will not materially injure a valid prior geothermal operation; and

• Page 30, Line 19(C)  Shall require each applicant for a permit concerning

• Page 30, Line 20deep geothermal operations to provide notice of the application

• Page 31, Line 1to any owners or operators of prior geothermal operations

• Page 31, Line 2registered pursuant to subsection (7) of this section and located within one mile of the proposed deep geothermal operations.

• Page 31, Line 3(c)  As used in this section, unless the context otherwise

• Page 31, Line 4requires, "materially injure a valid prior geothermal operation"

• Page 31, Line 5may include a diminution or alteration in the available water

• Page 31, Line 6supply or temperature only if the diminution or alteration adversely affects the prior geothermal operation.

• Page 31, Line 7(2) (c)  The commission may enforce rules adopted pursuant to this subsection (2) in accordance with section 34-60-121.

• Page 31, Line 8(3)  Where the maintenance of underground pressures, the

• Page 31, Line 9prevention of subsidence, or the disposal of brines is necessary,

• Page 31, Line 10reinjection of geothermal fluid or water may be required by the state engineer or the commission.

• Page 31, Line 11(6) (a)  On and after July 1, 2023, Except as set forth in subsection

• Page 31, Line 12(6)(b)(II) of this section, the commission is responsible for administering

• Page 31, Line 13and enforcing any permits issued by the state engineer pursuant to this section that cover deep geothermal operations.

• Page 31, Line 14(b)  The powers, duties, functions, and obligations concerning

• Page 31, Line 15permits issued by the state engineer pursuant to this section that cover

• Page 31, Line 16deep geothermal operations are transferred, effective July 1, 2023, to the

• Page 31, Line 17commission. The state engineer retains or the board of examiners of

• Page 31, Line 18water well and ground heat exchanger contractors may

• Page 31, Line 19exercise any powers, duties, functions, and obligations power, duty,

• Page 31, Line 20function, or obligation necessary to issue, administer, and enforce any permits or licenses that cover:

• Page 31, Line 21(I)  Shallow geothermal operations; and

• Page 32, Line 1(II)  The use of geothermal fluid in deep geothermal operations

• Page 32, Line 2pursuant to section 37-90.5-107, except for nonconsumptive deep geothermal operations subject to section 37-90-137 (7.5)(a).

• Page 32, Line 3(c)  The rules of the state engineer pertaining to the powers, duties,

• Page 32, Line 4functions, and obligations transferred to the commission pursuant to

• Page 32, Line 5subsection (6)(b) of this section continue in effect and apply to the

• Page 32, Line 6commission until the rules are replaced by rules adopted by the commission pursuant to subsection (1)(b)(I) of this section.

• Page 32, Line 7(d)  The commission and the state engineer shall enter into

• Page 32, Line 8memoranda of understanding, interagency agreements, or both, as

• Page 32, Line 9appropriate, to provide for the timely transfer of the powers, duties,

• Page 32, Line 10functions, and obligations transferred to the commission pursuant to subsection (6)(b) of this section.

• Page 32, Line 11(7)  An owner or operator of prior geothermal operations

• Page 32, Line 12shall register their locations and designated individuals to

• Page 32, Line 13receive electronic mail notifications from the state engineer

• Page 32, Line 14and the commission as described in section 37-90-137 (2) and subsection (1)(b)(III)(C) of this section.

• Page 32, Line 15SECTION 14.  In Colorado Revised Statutes, 37-90.5-107, amend (1)(a) and (4); and repeal (3)(b) and (3)(d) as follows:

• Page 32, Line 1637-90.5-107.  Permits for the use of geothermal resources -

• Page 32, Line 17rules. (1) (a)  After receipt of the necessary application, the state engineer

• Page 32, Line 18shall issue a use permit to use distributed geothermal resources consistent

• Page 32, Line 19with 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 32, Line 20(3) (b)  The requirement to issue a use permit pursuant to

• Page 32, Line 21subsection (1)(b) of this section does not apply to operations that are

• Page 33, Line 1solely nonconsumptive geothermal operations using allocated geothermal resources.

• Page 33, Line 2(d)  The use permit issued pursuant to subsection (1) of this section

• Page 33, Line 3may allow for nonconsumptive secondary uses of geothermal fluid,

• Page 33, Line 4including the recovery of geothermal by-products, and may allow for

• Page 33, Line 5consumptive secondary uses of geothermal fluid, including sale, which do not impair valid, prior water rights.

• Page 33, Line 6(4)  Notwithstanding any provision of this section to the contrary,

• Page 33, Line 7section 37-90-137 (4) applies to any consumptive beneficial use of

• Page 33, Line 8allocated geothermal resources, except for those operations described in section 37-90-137 (7.5)(a).

• Page 33, Line 9SECTION 15.  In Colorado Revised Statutes, 37-90.5-111, amend (1)(b) as follows:

• Page 33, Line 1037-90.5-111.  Coordination between the commission and the

• Page 33, Line 11state engineer. (1)  When an operations permit is issued by the

• Page 33, Line 12commission pursuant to section 37-90.5-106 (1)(b)(II) and a use permit

• Page 33, Line 13is issued by the state engineer pursuant to section 37-90.5-107 (1), the commission and the state engineer shall coordinate to:

• Page 33, Line 14(b)  Determine whether an accounting for the use and reinjection

• Page 33, Line 15of geothermal fluid or water pursuant to the applicable permit may be

• Page 33, Line 16submitted to only the commission, or only to the state engineer, or to both.

• Page 33, Line 17SECTION 16.  In Colorado Revised Statutes, amend 37-91-101 as follows:

• Page 33, Line 1837-91-101.  Legislative declaration. (1)  The general assembly hereby finds, determines, and declares that:

• Page 33, Line 19(a)  It has been established by Scientific evidence has

• Page 34, Line 1established that improperly constructed wells, improperly abandoned

• Page 34, Line 2wells, improperly constructed or abandoned ground heat

• Page 34, Line 3exchangers, and improperly installed pumping equipment can adversely

• Page 34, Line 4affect groundwater resources and the public health, safety, and welfare; and

• Page 34, Line 5(b)  Therefore, the proper location, construction, repair, and

• Page 34, Line 6abandonment of wells; the proper location, construction, repair,

• Page 34, Line 7and abandonment of ground heat exchangers; the proper

• Page 34, Line 8installation and repair of pumping equipment; the licensing and regulation

• Page 34, Line 9of persons engaging in the business of contracting either for the

• Page 34, Line 10construction of wells, the construction of ground heat

• Page 34, Line 11exchangers, or for the installation of pumping equipment; and the

• Page 34, Line 12periodic inspection of well construction, ground heat exchanger

• Page 34, Line 13construction, and pump installation are essential for the protection of

• Page 34, Line 14the public health, safety, and welfare and the preservation of groundwater resources.

• Page 34, Line 15SECTION 17.  In Colorado Revised Statutes, 37-91-102, amend

• Page 34, Line 16(3), (10), (10.5), (14), (15), (15.5), (16)(b)(I)(B), (16)(b)(I)(C),

• Page 34, Line 17(16)(b)(II), and (17); and add (4.1), (6.5), (6.7), (7.5), and (16)(b)(I)(D) as follows:

• Page 34, Line 1837-91-102.  Definitions. As used in this article 91, unless the context otherwise requires:

• Page 34, Line 19(3)  "Board" means the state board of examiners of water well

• Page 34, Line 20construction and pump installation and ground heat exchanger contractors created by in section 37-91-103.

• Page 34, Line 21(4.1) (a)  "Construction or installation of a ground heat

• Page 34, Line 22exchanger" means any act undertaken at a ground heat

• Page 35, Line 1exchanger site for the establishment or modification of a ground heat exchanger.

• Page 35, Line 2(b)  "Construction or installation of a ground heat

• Page 35, Line 3exchanger" includes the locating of a ground heat exchanger

• Page 35, Line 4and the excavating or fracturing necessary to install a ground heat exchanger.

• Page 35, Line 5(c)  "Construction or installation of a ground heat

• Page 35, Line 6exchanger" does not include surveying, site preparation, site modification, or other preparatory acts.

• Page 35, Line 7(6.5)  "Ground heat exchanger" means a continuous,

• Page 35, Line 8sealed, subsurface heat exchanger consisting of a closed loop

• Page 35, Line 9through which a heat-transfer fluid passes to and returns from

• Page 35, Line 10a heat pump or manifold. A ground heat exchanger may be

• Page 35, Line 11vertically or horizontally configured or submerged in surface water.

• Page 35, Line 12(6.7)  "Ground heat exchanger contractor" means an

• Page 35, Line 13individual licensed pursuant to this article 91 who is responsible

• Page 35, Line 14for the drilling, construction, grouting, repair, testing, or

• Page 35, Line 15abandonment of a ground heat exchanger, either by contract or for hire, for any consideration whatsoever.

• Page 35, Line 16(7.5)  "Heat-transfer fluid" means a fluid heat-transfer

• Page 35, Line 17medium to convey thermal energy to and from the thermal source or sink.

• Page 35, Line 18(10)  "License" means the document issued by the board to a

• Page 35, Line 19qualified persons making application therefor, applicant pursuant to

• Page 35, Line 20section 37-91-105, authorizing such persons which document

• Page 35, Line 21authorizes the applicant to engage in one or more methods of well

• Page 36, Line 1construction, ground heat exchanger construction, or pump installation or any combination of such methods.

• Page 36, Line 2(10.5)  "Monitoring and observation well" includes any excavation

• Page 36, Line 3that is drilled, cored, bored, washed, fractured, driven, dug, jetted, or

• Page 36, Line 4otherwise constructed when the intended use of such the excavation is

• Page 36, Line 5for locating such a well, pumping equipment or aquifer testing,

• Page 36, Line 6monitoring groundwater, groundwater remediation, or collection of water quality samples.

• Page 36, Line 7(14)  "Pump installation contractor" means any person an

• Page 36, Line 8individual licensed to install, remove, modify, or repair pumping equipment for compensation.

• Page 36, Line 9(15)  "Repair" means:

• Page 36, Line 10(a)  Any change, replacement, or other alteration of any well or

• Page 36, Line 11pumping equipment which that requires a breaking or opening of the

• Page 36, Line 12well seal or any waterlines up to and including the pressure tank and any coupling appurtenant thereto to the pressure tank; or

• Page 36, Line 13(b)  Any change, replacement, or other alteration of a

• Page 36, Line 14ground heat exchanger that requires excavation of any portion

• Page 36, Line 15of the ground heat exchanger to repair or replace components

• Page 36, Line 16of surface casing, piping or grout within the borefield, or piping between the borefield and the manifold.

• Page 36, Line 17(15.5)  "Supervision" means personal and continuous on-the-site

• Page 36, Line 18on-site direction by a licensed well construction contractor, licensed

• Page 36, Line 19ground heat exchanger contractor, or licensed pump installation

• Page 36, Line 20contractor, unless the licensed contractor has applied for and received

• Page 36, Line 21from the board an exemption from continuous on-the-site on-site

• Page 36, Line 22direction for a specific task.

• (16) (b) (I)  "Well" does not include:

• Page 37, Line 1(B)  An excavation made for the purpose of obtaining or

• Page 37, Line 2prospecting for minerals or those wells subject to the jurisdiction of the

• Page 37, Line 3energy and carbon management commission, as provided in article 60 of title 34 or in article 90.5 of this title 37;

• Page 37, Line 4(C)  Wells A well subject to the jurisdiction of the office of mined

• Page 37, Line 5land reclamation division of reclamation, mining, and safety, as provided in article 33 articles 32 to 34 of title 34; or

• Page 37, Line 6(D)  Recharge basins or infiltration basins that are

• Page 37, Line 7constructed in such a manner that the intent of their design is to remain above the groundwater level.

• Page 37, Line 8(II)  "Well" does not include a naturally flowing spring or springs

• Page 37, Line 9where the natural spring discharge is captured or concentrated by

• Page 37, Line 10installation of a near-surface structure or device less then than ten feet

• Page 37, Line 11in depth located at or within fifty feet of the spring or springs' natural

• Page 37, Line 12discharge point and the water is conveyed directly by gravity flow or into

• Page 37, Line 13a separate sump or storage, if so long as the owner obtains a water right

• Page 37, Line 14for such the structure or device as a spring pursuant to article 92 of this title title 37.

• Page 37, Line 15(17)  "Well construction contractor" means any person an

• Page 37, Line 16individual licensed pursuant to this article article 91 and responsible

• Page 37, Line 17for the construction, test-pumping, or development of wells, either by contract or for hire, or for any consideration whatsoever.

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

• Page 37, Line 1937-91-103.  State board of examiners of water well and ground

• Page 37, Line 20heat exchanger contractors. (1) (a)  There is created, in the division of

• Page 38, Line 1water resources in the department of natural resources, a The state board

• Page 38, Line 2of examiners of water well construction and pump installation and

• Page 38, Line 3ground heat exchanger contractors consisting of five members and

• Page 38, Line 4comprised of is created in the division of water resources within

• Page 38, Line 5the department of natural resources. The board includes the following persons six individuals:

• Page 38, Line 6(I)  The state engineer or a representative designated by the state engineer engineer's designee;

• Page 38, Line 7(II)  A representative of the department of public health and environment designated by the executive director of the department; and

• Page 38, Line 8(III)  three Four members appointed by the governor, two of

• Page 38, Line 9whom must shall be well construction contractors or pump installation

• Page 38, Line 10contractors, each with a minimum of ten years' experience in the well

• Page 38, Line 11construction or pump installation business preceding the individual's

• Page 38, Line 12appointment, and one of whom must shall be an engineer or geologist

• Page 38, Line 13with a minimum of ten years' experience in water supply and well

• Page 38, Line 14construction preceding the individual's appointment, and one of whom

• Page 38, Line 15shall be an individual with a minimum of ten years' experience

• Page 38, Line 16relating to ground heat exchangers preceding the individual's appointment.

• Page 38, Line 17(b)  The state board of examiners of water well construction and

• Page 38, Line 18pump installation and ground heat exchanger contractors is a type 1 entity, as defined in section 24-1-105.

• Page 38, Line 19(3)  The board shall meet at least once every three months and at

• Page 38, Line 20such other times as it deems necessary or advisable. Special Board

• Page 38, Line 21meetings may be called at any time on order of the chairman chair or

• Page 38, Line 22vice-chairman vice-chair or any three four members of the board. The

• Page 39, Line 1board shall determine the time and place of all meetings, but at least one

• Page 39, Line 2meeting every three months shall be held in Denver. Three Four

• Page 39, Line 3members of the board shall constitute a quorum, and the affirmative vote

• Page 39, Line 4of three at least four members shall be is required to pass any action

• Page 39, Line 5or motion of the board. The board may adopt bylaws to govern its own procedure.

• Page 39, Line 6SECTION 19.  In Colorado Revised Statutes, 37-91-104, amend (1)(b), (1)(i), and (1)(l) as follows:

• Page 39, Line 737-91-104.  Duties of the board. (1)  The board shall:

• Page 39, Line 8(b)  Have general supervision and authority over the construction

• Page 39, Line 9and abandonment of wells, construction and abandonment of

• Page 39, Line 10ground heat exchangers, and the installation of pumping equipment, as provided by sections 37-91-109 and 37-91-110;

• Page 39, Line 11(i)  Disseminate information to pump installation contractors,

• Page 39, Line 12ground heat exchanger contractors, and well construction

• Page 39, Line 13contractors in order to protect and preserve the groundwater resources of the state;

• Page 39, Line 14(l) (I)  Assure protection of groundwater resources and the public

• Page 39, Line 15health by ordering the nondestructive investigation, abandonment, repair,

• Page 39, Line 16drilling, redrilling, casing, recasing, deepening, or excavation of a well or

• Page 39, Line 17ground heat exchanger where it the board finds such action to be

• Page 39, Line 18an order necessary to correct violations of this article article 91 or

• Page 39, Line 19rules promulgated adopted by the board with respect pursuant to this

• Page 39, Line 20article article 91 or to protect groundwater resources and the public health.

• Page 39, Line 21(II)  An existing wells well or ground heat exchanger that

• Page 39, Line 22were was constructed in compliance with the laws and regulations in

• Page 40, Line 1effect at the time of their its construction shall is not be required to be

• Page 40, Line 2repaired, redrilled, or otherwise modified to meet the current standards for

• Page 40, Line 3well construction or ground heat exchanger construction

• Page 40, Line 4contained in this article article 91 or the in rules adopted by the board

• Page 40, Line 5pursuant to this article 91. The board may order any such wells

• Page 40, Line 6well or ground heat exchanger that present presents an imminent

• Page 40, Line 7threat to public health or an imminent threat of groundwater

• Page 40, Line 8contamination may be ordered to be repaired or abandoned. The Any

• Page 40, Line 9remedial action required by the board for such wells shall a well or

• Page 40, Line 10ground heat exchanger must be the minimum repair necessary to

• Page 40, Line 11remove the threat to public health or of groundwater pollution. An order

• Page 40, Line 12to abandon a well that is issued under this article article 91 is not a

• Page 40, Line 13determination of intent to abandon any water right associated with the well.

• Page 40, Line 14SECTION 20.  In Colorado Revised Statutes, 37-91-105, amend (1), (2)(d), (2.5), (5), and (7); and add (8) as follows:

• Page 40, Line 1537-91-105.  Licensing - registration of rigs. (1)  Every person,

• Page 40, Line 16Before engaging in the business of contracting either for the construction

• Page 40, Line 17of wells a well,the installation of a ground heat exchanger, or

• Page 40, Line 18for the installation of pumping equipment, an individual shall obtain a

• Page 40, Line 19license for one or more methods of well construction, ground heat

• Page 40, Line 20exchanger installation, or pump installation from the board and shall

• Page 40, Line 21secure a registration from the board for each well-drilling, ground heat

• Page 40, Line 22exchanger, or pump-installing rig to be operated or leased by him or his the individual or the individual's employee.

• Page 40, Line 23(2)  The board shall issue a license to each applicant who files an

• Page 40, Line 24application upon a form and in such manner as the board prescribes,

• Page 41, Line 1accompanied by such fees and bond as required by section 37-91-107, and who furnishes evidence satisfactory to the board that the applicant:

• Page 41, Line 2(d)  Has had not less than two years' experience in the type of well

• Page 41, Line 3construction work, ground heat exchanger work, or pump

• Page 41, Line 4installation work for which the applicant is initially applying for a license; however:

• Page 41, Line 5(I)  Once a person An individual who is licensed in one or more

• Page 41, Line 6methods of well construction the person is eligible without further

• Page 41, Line 7experience to take an examination to obtain a license for a different method of well construction;

• Page 41, Line 8(II)  Once a person An individual who is licensed for installing

• Page 41, Line 9one or more types of pumps the person is eligible without further

• Page 41, Line 10experience to take an examination to obtain a license for a different type of pump installation; and

• Page 41, Line 11(III)  An individual's education in an accredited program

• Page 41, Line 12approved by the board may substitute for well construction, ground

• Page 41, Line 13heat exchanger installation, or pump installation experience upon application to and acceptance by the board; and

• Page 41, Line 14(IV)  An individual's possession of a license for well

• Page 41, Line 15construction may substitute for ground heat exchanger

• Page 41, Line 16installation experience upon application to and acceptance by the board.

• Page 41, Line 17(2.5)  The board shall issue a special license for the use of special

• Page 41, Line 18equipment or limited procedures in well construction, ground heat

• Page 41, Line 19exchanger installation, or pump installation to each applicant who

• Page 41, Line 20files an application upon a form and in such manner as the board

• Page 41, Line 21prescribes, accompanied by such fees and bond as are required by section

• Page 42, Line 137-91-107, and who furnishes evidence satisfactory to the board that he

• Page 42, Line 2the applicant meets the requirements established in subsection (2) of

• Page 42, Line 3this section; except that a special licensee shall is not be eligible to take

• Page 42, Line 4an examination to obtain a license for a different method of well

• Page 42, Line 5construction, ground heat exchanger installation, or pump

• Page 42, Line 6installation unless said the licensee has at least two years of experience

• Page 42, Line 7in the method of well construction, ground heat exchanger

• Page 42, Line 8installation, or pump installation for which the additional license is sought.

• Page 42, Line 9(5)  The examination shall must consist of an oral and written

• Page 42, Line 10examination and shall fairly test the applicant's knowledge and

• Page 42, Line 11application thereof in of the following subjects, respectively, depending on the license type:

• Page 42, Line 12(a)  For a well construction contractor license: Basics of

• Page 42, Line 13drilling methods, specific drilling methods, basics of pump installation

• Page 42, Line 14methods, specific pump installation methods, and basics of well

• Page 42, Line 15construction and his the applicant's knowledge and application of state

• Page 42, Line 16laws and local ordinances concerning the construction of wells or and rules adopted in connection with such laws and ordinances;

• Page 42, Line 17(b)  For a pump installation contractor license: Basics of

• Page 42, Line 18pump installation methods, specific pump installation methods

• Page 42, Line 19and associated pumping equipment, and the applicant's

• Page 42, Line 20knowledge and application of state laws and local ordinances

• Page 42, Line 21concerning the installation of pumping equipment or both, and rules

• Page 42, Line 22promulgated adopted in connection therewith with such laws and ordinances; and

• Page 42, Line 23(c)  For a ground heat exchanger contractor license:

• Page 43, Line 1Basics of ground heat exchanger installation, specific methods

• Page 43, Line 2related to ground heat exchanger installation, and the

• Page 43, Line 3applicant's knowledge and application of state laws and local

• Page 43, Line 4ordinances concerning the installation of ground heat

• Page 43, Line 5exchangers and rules adopted in connection with such laws and ordinances.

• Page 43, Line 6(7)  Each licensee shall complete eight hours of continuing

• Page 43, Line 7education training as approved by the board every year in order to maintain or renew a license.

• Page 43, Line 8(8) (a)  Until the governor appoints to the board a member

• Page 43, Line 9with ten or more years of ground heat exchanger experience,

• Page 43, Line 10and until the board adopts rules concerning the licensing of

• Page 43, Line 11ground heat exchanger contractors, an individual operating

• Page 43, Line 12pursuant to a permit issued from the state engineer may install

• Page 43, Line 13ground heat exchangers in accordance with rules adopted by the state engineer pursuant to section 37-90.5-106.

• Page 43, Line 14(b)  After the time frame described in subsection (8)(a) of

• Page 43, Line 15this section, an individual operating under a permit issued by the

• Page 43, Line 16state engineer who applies for a ground heat exchanger

• Page 43, Line 17contractor license is required to pass an oral examination

• Page 43, Line 18pursuant to subsection (2)(e) of this section but is not required to:

• Page 43, Line 19(I)  Demonstrate their experience pursuant to subsection (2)(d) of this section; or

• Page 43, Line 20(II)  Pass a written examination pursuant to subsection (2)(e) of this section.

• Page 43, Line 21SECTION 21.  In Colorado Revised Statutes, 37-91-106, amend (2) as follows:

• Page 44, Line 137-91-106.  License - exemptions - rules. (2)  A license shall is

• Page 44, Line 2not be required of any person individual who performs labor or services

• Page 44, Line 3if he the individual is directly employed by, or under the supervision of,

• Page 44, Line 4a licensed well construction contractor, licensed ground heat exchanger contractor, or licensed pump installation contractor.

• Page 44, Line 5SECTION 22.  In Colorado Revised Statutes, 37-91-107, amend (2), (3), (4), (4.5), (5), and (6) as follows:

• Page 44, Line 637-91-107.  Fees and bonds - license renewal - continuing

• Page 44, Line 7education. (2) (a)  The board shall charge require an application fee to

• Page 44, Line 8be paid in the amount of twenty dollars. to The payment of the fee

• Page 44, Line 9must accompany each application from a resident of the state. of

• Page 44, Line 10Colorado and The board shall also require an applicant to pay a

• Page 44, Line 11further fee in the amount of fifty dollars upon the applicant's

• Page 44, Line 12successful completion of the examination and before issuance of the board issues a license.

• Page 44, Line 13(b)  In addition topaying a fee pursuant to subsection (2)(a)

• Page 44, Line 14of this section, each successful resident applicant shall file and

• Page 44, Line 15maintain with the board evidence of financial responsibility in the form

• Page 44, Line 16of a savings account, deposit, or certificate of deposit in the amount of ten

• Page 44, Line 17thousand dollars, meeting the requirements of section 11-35-101, C.R.S.,

• Page 44, Line 18or an irrevocable letter of credit for the amount of ten thousand dollars,

• Page 44, Line 19meeting the requirements of section 11-35-101.5, C.R.S., or shall file and

• Page 44, Line 20maintain with the board an approved compliance bond with a corporate

• Page 44, Line 21surety authorized to do business in the state, of Colorado, in the amount

• Page 44, Line 22of ten thousand dollars, for the use and benefit of any person or the state

• Page 44, Line 23of Colorado suffering loss or damage, conditioned that such the licensee

• Page 45, Line 1will comply with the laws of the state of Colorado in engaging in the

• Page 45, Line 2business for which he the licensee receives a license and the rules of the board promulgated adopted in the regulation of such business.

• Page 45, Line 3(3) (a)  The board shall charge an application fee in the amount

• Page 45, Line 4of fifty dollars, to the payment of which application fee must

• Page 45, Line 5accompany each application from a nonresident of the state. of Colorado

• Page 45, Line 6and The board shall also charge a further nonresident fee of four

• Page 45, Line 7hundred dollars, which a nonresident shall pay upon successful completion of the examination and before the issuance of a license.

• Page 45, Line 8(b)  In addition to paying any fees required by subsection

• Page 45, Line 9(3)(a) of this section, each successful nonresident applicant shall file

• Page 45, Line 10and maintain with the board evidence of financial responsibility in the

• Page 45, Line 11form of a savings account, deposit, or certificate of deposit in the amount

• Page 45, Line 12of twenty thousand dollars, meeting the requirements of section

• Page 45, Line 1311-35-101, C.R.S., or shall file and maintain with the board an approved

• Page 45, Line 14compliance bond in the amount of twenty thousand dollars with a

• Page 45, Line 15corporate surety authorized to do business in the state of Colorado for the

• Page 45, Line 16use and benefit of any person or the state of Colorado suffering loss or

• Page 45, Line 17damage, conditioned that such the licensee will shall comply with the

• Page 45, Line 18laws of the state in engaging in the business for which he the licensee

• Page 45, Line 19receives a license and the rules of adopted by the board promulgated in compliance therewith with such laws.

• Page 45, Line 20(4) (a) (I)  Every Each licensed well construction contractor,

• Page 45, Line 21licensed ground heat exchanger contractor, and licensed pump installation contractor in this state shall:

• Page 45, Line 22(A)  Pay to the board during the month of January of each year,

• Page 45, Line 23beginning in the year immediately subsequent to his or her following the licensee's initial licensing, a renewal fee of fifty dollars; shall

• Page 46, Line 1(B)  Concurrently file and thereafter maintain a new bond or letter of credit if required pursuant to this section; and shall

• Page 46, Line 2(C)  Annually file a certificate of completion of continuing education as required pursuant to section 37-91-105 (7).

• Page 46, Line 3(II)  Upon a licensee's satisfaction of the requirements

• Page 46, Line 4described in subsection (4)(a)(I) of this section, the secretary shall

• Page 46, Line 5thereupon issue a renewal license for one year. The license of any well

• Page 46, Line 6construction contractor, ground heat exchanger contractor, or

• Page 46, Line 7pump installation contractor who fails to have his or her their license

• Page 46, Line 8renewed during the month of January in each year shall lapse. Any

• Page 46, Line 9lapses. A lapsed license may be renewed, without reexamination, within

• Page 46, Line 10a period of one year after such lapse it lapses upon payment of all fees

• Page 46, Line 11in arrears. Licensees A licensee may elect to renew their licenses

• Page 46, Line 12license and file and maintain a bond or letter of credit for a term of up

• Page 46, Line 13to three years, paying fifty dollars for each year the license will be in effect.

• Page 46, Line 14(b)  The board shall not set a license renewal fee

• Page 46, Line 15described in subsection (4)(a) of this section or a rig registration

• Page 46, Line 16fee described in subsection (5) of this section in an amount

• Page 46, Line 17greater than is necessary to further the purposes of this article

• Page 46, Line 1891. The amount must not cause the total amount of money

• Page 46, Line 19collected under this article 91 to exceed the direct and indirect costs of the board in administering this article 91.

• Page 46, Line 20(4.5)  A licensee shall maintain the amount of financial

• Page 46, Line 21responsibility required by subsections (2), (3), and (4) of this section for

• Page 46, Line 22the life duration of the license for which the financial responsibility is

• Page 47, Line 1required. The license of any well construction contractor, ground heat

• Page 47, Line 2exchanger contractor, or pump installation contractor who fails to

• Page 47, Line 3maintain such financial responsibility shall lapse lapses. A lapsed

• Page 47, Line 4license that has so lapsed may be reinstated upon the licensee's

• Page 47, Line 5submission of current evidence of the required financial responsibility to

• Page 47, Line 6the board and payment to the board of a one-hundred-dollar reinstatement fee in the amount of one hundred dollars.

• Page 47, Line 7(5)  The board shall charge an annual registration fee of ten dollars

• Page 47, Line 8for each well drilling or rig, ground heat exchanger installation rig, and pump installation rig to be operated in the state. of Colorado.

• Page 47, Line 9(6)  The board shall no later than January 7, 2007, develop

• Page 47, Line 10maintain a continuing education program in conjunction with the

• Page 47, Line 11Colorado water well contractors association or any analogous or successor organization.

• Page 47, Line 12SECTION 23.  In Colorado Revised Statutes, 37-91-108, amend

• Page 47, Line 13(1) introductory portion, (1)(d), (1)(f), (1)(g), (1)(h), (3), (4), and (5) as follows:

• Page 47, Line 1437-91-108.  Denial, revocation, or suspension of license. (1)  The

• Page 47, Line 15board, by an affirmative vote of three at least four of its five six

• Page 47, Line 16members, may withhold, deny, revoke, or suspend any license issued or

• Page 47, Line 17applied for in accordance with the provisions of this article this article 91, upon proof that the licensee or applicant:

• Page 47, Line 18(d)  Has Knowingly constructed a well, installed a ground

• Page 47, Line 19heat exchanger, or installed pumping equipment without a valid permit;

• Page 47, Line 20(f)  Has Used fraud or deception in collecting fees from persons

• Page 47, Line 21with whom he has the licensee contracted for well construction, ground heat exchanger installation, or pump installation;

• Page 48, Line 1(g)  Has Failed to submit a well completion report or a pump

• Page 48, Line 2installation report pursuant to the requirement therefor in report required by the rules and regulations of the board;

• Page 48, Line 3(h)  Has Authorized a person not directly employed or directly

• Page 48, Line 4supervised by the licensee to construct wells, install ground heat

• Page 48, Line 5exchangers, or install pumping equipment under the authority of the licensee's license; or

• Page 48, Line 6(3)  A hearing upon a complaint may be initiated only if the

• Page 48, Line 7complaint was filed with the board within two years of after the filing

• Page 48, Line 8of the completion report for the well, ground heat exchanger, or

• Page 48, Line 9pumping equipment, the construction or installation of which formed the

• Page 48, Line 10basis of the complaint. If no completion report was filed, a hearing upon

• Page 48, Line 11the complaint may be initiated only if the complaint was filed with the

• Page 48, Line 12board within two years of after the discovery of the violation or defect that constituted the grounds for the complaint.

• Page 48, Line 13(4)  The board may order the nondestructive investigation,

• Page 48, Line 14abandonment, repair, drilling, redrilling, casing, recasing, deepening, or

• Page 48, Line 15excavation of a well or ground heat exchanger to protect

• Page 48, Line 16groundwater resources and the public health if the board finds such the

• Page 48, Line 17action to be necessary to correct violations of article 90 of this title title

• Page 48, Line 1837, this article article 91, or the rules promulgated adopted by the board pursuant to this article article 91.

• Page 48, Line 19(5)  The board may assess fines of not less than at least fifty

• Page 48, Line 20dollars nor more than one thousand dollars for violations of article 90 of

• Page 48, Line 21this title title 37, this article article 91, or the rules promulgated

• Page 48, Line 22adopted by the board pursuant to this article article 91 for each such

• Page 49, Line 1violation. Such The fines shall be transmitted to the state treasurer, who

• Page 49, Line 2shall credit them credited to the well inspection cash fund created in section 37-80-111.5.

• Page 49, Line 3SECTION 24.  In Colorado Revised Statutes, 37-91-109, amend (1) as follows:

• Page 49, Line 437-91-109.  Further scope of article - orders - penalties.

• Page 49, Line 5(1) (a)  In addition to the licensing of well construction contractors, and

• Page 49, Line 6pump installation contractors as required by this article, no A well or

• Page 49, Line 7ground heat exchanger shall not be located, constructed, repaired, or

• Page 49, Line 8abandoned and no pumping equipment shall not be installed or repaired

• Page 49, Line 9contrary to the provisions of this article this article 91 and applicable

• Page 49, Line 10rules of the board promulgated adopted to effectuate the purposes of this article article 91.

• Page 49, Line 11(b)  The board may by order require any a licensee, private driller,

• Page 49, Line 12or private pump installer to remedy any such noncompliant installation,

• Page 49, Line 13construction, or repair and may, pursuant to rules and after due notice and a hearing, impose penalties for such noncompliance.

• Page 49, Line 14(c)  The provisions of this article shall apply This article 91 applies to:

• Page 49, Line 15(I)  Any well or any pumping equipment that is not otherwise subject to regulation under the laws of this state; and to

• Page 49, Line 16(II)  Any distribution, observation, monitoring, or dewatering of

• Page 49, Line 17water therefrom; but this article shall from any such well or pumping

• Page 49, Line 18equipment; except that this article 91 does not apply to any

• Page 49, Line 19distribution of water beyond the point of discharge from the pressure tank

• Page 49, Line 20or to any distribution of water beyond the point of discharge from the

• Page 49, Line 21pumping equipment if no pressure tank or an overhead pressure tank is employed.

• Page 50, Line 1(d)  This article 91 applies to any ground heat exchanger

• Page 50, Line 2that is not otherwise subject to regulation under the laws of

• Page 50, Line 3this state; except that this article 91 does not apply to any

• Page 50, Line 4distribution of heat-transfer fluid beyond the point of

• Page 50, Line 5transition between the ground heat exchanger piping or ground

• Page 50, Line 6heat exchanger manifold and the distribution lines from the ground heat exchanger manifold.

• Page 50, Line 7SECTION 25.  In Colorado Revised Statutes, 37-91-110, amend (1) introductory portion, (2), and (3); and add (1)(c) as follows:

• Page 50, Line 837-91-110.  Basic principles and minimum standards. (1)  The

• Page 50, Line 9following basic principles, general in scope and fundamental in character,

• Page 50, Line 10shall govern the construction, repair, or abandonment of any a well; the

• Page 50, Line 11installation, repair, or abandonment of a ground heat exchanger; and the installation or repair of any pumping equipment:

• Page 50, Line 12(c)  A ground heat exchanger shall be:

• Page 50, Line 13(I)  Located in a manner that considers the physical

• Page 50, Line 14limitations of the land area and the proximity to other elements

• Page 50, Line 15that might affect the type and configuration of the ground heat exchanger; and

• Page 50, Line 16(II)  Installed or abandoned in a manner that maintains

• Page 50, Line 17natural protection against pollution of water-bearing formations and excludes known sources of contamination.

• Page 50, Line 18(2)  The board shall adopt and may, from time to time, amend rules

• Page 50, Line 19and regulations reasonably necessary to insure ensure the proper

• Page 50, Line 20construction or proper abandonment of wells, the proper installation

• Page 50, Line 21or proper abandonment of ground heat exchangers, and the

• Page 51, Line 1proper installation of pumping equipment. The board has the authority to

• Page 51, Line 2may require the filing of information and reports relating to the

• Page 51, Line 3construction or abandonment of wells, the installation or

• Page 51, Line 4abandonment of ground heat exchangers, and the installation of

• Page 51, Line 5pumping equipment whenever if it may deem deems such action to be necessary.

• Page 51, Line 6(3)  All wells and ground heat exchangers shall be

• Page 51, Line 7constructed or abandoned and all pumping equipment shall be installed

• Page 51, Line 8in compliance with this article article 91 and with the rules and regulations promulgated adopted by the board.

• Page 51, Line 9SECTION 26.  In Colorado Revised Statutes, 37-91-111, amend (1) and (3) as follows:

• Page 51, Line 1037-91-111.  Violations and penalties. (1)  It is unlawful:

• Page 51, Line 11(a)  For any person an individual to represent himself themself

• Page 51, Line 12as a well construction contractor, ground heat exchanger

• Page 51, Line 13contractor, or a pump installation contractor who if the individual

• Page 51, Line 14is not licensed under this article article 91 or to so represent himself

• Page 51, Line 15after his the individual's license has been suspended or revoked or has lapsed;

• Page 51, Line 16(b)  For any person an individual who is not licensed under this

• Page 51, Line 17article article 91 to advertise or issue any sign, card, or other device

• Page 51, Line 18which would indicate that he that indicates the individual is a well

• Page 51, Line 19construction contractor, ground heat exchanger contractor, or a pump installation contractor;

• Page 51, Line 20(c)  For any person an individual who is not licensed or whose

• Page 51, Line 21license is suspended to construct wells unless he the individual is a

• Page 51, Line 22private driller or directly employed by or under the supervision of a licensed well construction contractor;

• Page 52, Line 1(d)  For any person an individual who is not licensed or whose

• Page 52, Line 2license is suspended to install pumping equipment unless he the

• Page 52, Line 3individual is a private pump installer or directly employed by or under

• Page 52, Line 4the supervision of a licensed pump installation contractor, except as excluded pursuant to described in section 37-91-106 (4); or

• Page 52, Line 5(d.5)  For an individual who is not licensed or whose

• Page 52, Line 6license is suspended to install a ground heat exchanger unless

• Page 52, Line 7the individual is directly employed by or under the supervision

• Page 52, Line 8of a licensed ground heat exchanger contractor, except as described in section 37-91-105 (8); or

• Page 52, Line 9(e)  For any person an individual to otherwise violate any of the provisions of this article this article 91.

• Page 52, Line 10(3)  Any In addition to any penalty assessed pursuant to

• Page 52, Line 11subsection (2) of this section, a person who violates any provision of

• Page 52, Line 12subsection (1) of this section shall also be is subject to a civil penalty

• Page 52, Line 13assessed by the court of not less than one hundred dollars nor more than

• Page 52, Line 14five thousand dollars for each such violation. All civil penalties collected

• Page 52, Line 15under this subsection (3) shall be transmitted to the state treasurer, who

• Page 52, Line 16shall credit the same credited to the well inspection cash fund created in section 37-80-111.5.

• Page 52, Line 17SECTION 27.  In Colorado Revised Statutes, 37-91-113, amend

• Page 52, Line 18(1), (2) introductory portion, (2)(a), (3) introductory portion, (3)(a), (3)(e), and (3)(f) as follows:

• Page 52, Line 1937-91-113.  Well inspection program. (1)  The state engineer

• Page 52, Line 20shall monitor compliance with this article article 91, including by

• Page 52, Line 21inspecting water well construction, ground heat exchanger

• Page 53, Line 1installation, and pump installation, and the state engineer may

• Page 53, Line 2employ inspectors for such this purpose. The costs of such monitoring

• Page 53, Line 3and inspection shall be paid from the well inspection cash fund created by in section 37-80-111.5.

• Page 53, Line 4(2)  Inspectors shall have the following qualifications, but need not be licensed pursuant to this article article 91:

• Page 53, Line 5(a)  Knowledge of proper well construction, ground heat

• Page 53, Line 6exchanger installation, and pump installation techniques and practices;

• Page 53, Line 7(3)  Inspectors shall annually spend a majority of their time

• Page 53, Line 8conducting field inspections and a minority of their time preparing and

• Page 53, Line 9evaluating reports and related office work. Duties shall include the following:

• Page 53, Line 10(a)  Well construction, ground heat exchanger installation, and pump installation inspection and observation;

• Page 53, Line 11(e)  Field inspections of existing wells, ground heat exchangers, and pumps;

• Page 53, Line 12(f)  Field inspections of well, ground heat exchanger, and hole plugging and abandonment; and

• Page 53, Line 13SECTION 28.  In Colorado Revised Statutes, 24-1-124, amend (4)(d) as follows:

• Page 53, Line 1424-1-124.  Department of natural resources - creation - divisions. (4)  The division of water resources includes the following:

• Page 53, Line 15(d)  The state board of examiners of water well construction and

• Page 53, Line 16pump installation and ground heat exchanger contractors created in

• Page 53, Line 17article 91 of title 37 section 37-91-103. The state board of examiners of

• Page 53, Line 18water well construction and pump installation and ground heat

• Page 54, Line 1exchanger contractors is a type 1 entity, as defined in section 24-1-105,

• Page 54, Line 2and exercises its powers and performs its duties and functions under the

• Page 54, Line 3department of natural resources and is allocated to the division of water resources as a section thereof of the division of water resources.

• Page 54, Line 4SECTION 29.  In Colorado Revised Statutes, 24-33-104, amend (1)(e) introductory portion and (1)(e)(IV) as follows:

• Page 54, Line 524-33-104.  Composition of the department. (1)  The department

• Page 54, Line 6of natural resources consists of the following commissions, divisions, boards, offices, and councils:

• Page 54, Line 7(e)  The division of water resources, the head of which shall be is

• Page 54, Line 8the state engineer. The division shall consist consists of the following sections:

• Page 54, Line 9(IV)  The state board of examiners of water well construction and pump installation and ground heat exchanger contractors.

• Page 54, Line 10SECTION 30.  Act subject to petition - effective date. This act

• Page 54, Line 11takes effect at 12:01 a.m. on the day following the expiration of the

• Page 54, Line 12ninety-day period after final adjournment of the general assembly; except

• Page 54, Line 13that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 54, Line 14of the state constitution against this act or an item, section, or part of this

• Page 54, Line 15act within such period, then the act, item, section, or part will not take

• Page 54, Line 16effect unless approved by the people at the general election to be held in

• Page 54, Line 17November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.