A Bill for an Act
Page 1, Line 101Concerning greenhouse gas credit trading program
Page 1, Line 102eligibility for water quality green infrastructure
Page 1, Line 103projects that create greenhouse gas credits.
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 authorizes the owner or operator of a water quality green infrastructure project (project) to sell or trade any greenhouse gas credits (GHG credit) created by the project in the GHG credit trading program (trading program) that is established by the air quality control commission (AQCC) by rule.
The owner or operator that is conducting a project shall pay an independent third-party auditor to certify the GHG credits created by the project in order to sell or transfer those GHG credits in the trading program.
The division of administration in the department of public health and environment (division) shall monitor the sale and transfer of the GHG credits created from a project in the trading program and permit owners and operators of facilities that are regulated by the AQCC and the division and participating in the trading program to purchase the GHG credits in order to reach certain greenhouse gas compliance targets.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 25-7-105, amend (1)
Page 2, Line 3introductory portion, (1)(f)(I)(A), (1)(f)(I)(C), (1)(f)(II) introductory
Page 2, Line 4portion, (1)(f)(III) introductory portion, and (1)(f)(III)(B); and add (1)(f)(I)(A.5), (1)(f)(I)(D), and (1)(f)(IV) as follows:
Page 2, Line 525-7-105. Duties of commission - technical secretary - rules -
Page 2, Line 6report - legislative declaration - definitions - repeal. (1) Except as
Page 2, Line 7provided in sections 25-7-130 and 25-7-131, the commission shall
Page 2, Line 8
promulgatePage 2, Line 9set forth in section 25-7-102 and necessary for the proper implementation and administration of this article 7, including:
Page 2, Line 10(f) (I) Definitions. The definitions in subsection (1)(e)(XI) of this
Page 2, Line 11section apply to this subsection (1)(f). As used in this subsection (1)(f), unless the context requires otherwise:
Page 2, Line 12(A) "GHG credit" means a tradeable compliance instrument in a
Page 2, Line 13physical or electronic format, the use of which is authorized pursuant to
Page 2, Line 14a regulatory program adopted by the commission that represents the
Page 2, Line 15reduction of one metric ton of carbon dioxide equivalent of greenhouse
Page 2, Line 16gas by a regulated source or by a water quality green
Page 2, Line 17infrastructure project.
Page 3, Line 1(A.5) "Independent third-party auditor" means a
Page 3, Line 2third-party entity or individual approved by a relevant
Page 3, Line 3nongovernmental registry that audits and certifies to the
Page 3, Line 4nongovernmental registry the amount of GHG credits that are generated by a water quality green infrastructure project.
Page 3, Line 5(C) "Trading program" means a commission-adopted regulatory
Page 3, Line 6program that allows for regulated sources to meet their greenhouse gas
Page 3, Line 7compliance obligations under subsection (1)(e) of this section through the
Page 3, Line 8creation, purchase, acquisition, or exchange of, or other commercial-type
Page 3, Line 9transaction involving, a GHG credit with other regulated sources or a water quality green infrastructure project.
Page 3, Line 10(D) "Water quality green infrastructure project" or
Page 3, Line 11"project" means a pilot project established pursuant to section
Page 3, Line 1225-8-311 (3)(b) that employs green infrastructure to improve the
Page 3, Line 13water quality of water utilized by a water quality treatment facility.
Page 3, Line 14(II) Greenhouse gas accounting system. Except as specified in
Page 3, Line 15subsection (1)(f)(III) of this section, before the commission adopts a rule
Page 3, Line 16or program that provides for the use of a trading program, the commission
Page 3, Line 17shall adopt a rule that directs the division to create a comprehensive and
Page 3, Line 18centralized accounting system to track emissions from, at a minimum, all
Page 3, Line 19regulated sources and water quality green infrastructure
Page 3, Line 20projects in the state covered by or that may otherwise participate in that trading program, which system must:
Page 3, Line 21(III) The commission may adopt a trading program among
Page 3, Line 22regulated sources and water quality green infrastructure
Page 3, Line 23projects as necessary to timely implement subsection (1)(e)(IX) of this section if that program:
Page 4, Line 1(B) Enables the division to track the emissions of, and emission
Page 4, Line 2reductions, trades, and other transactions by, all regulated sources and
Page 4, Line 3water quality green infrastructure projects participating in the trading program;
Page 4, Line 4(IV) Water quality green infrastructure project participation
Page 4, Line 5in trading program - rules. (A) The owner or operator of a water
Page 4, Line 6quality green infrastructure project may sell or trade a GHG
Page 4, Line 7credit created by the project in the trading program established by the commission pursuant to this subsection (1)(f).
Page 4, Line 8(B) The owner or operator of a water quality green
Page 4, Line 9infrastructure project that intends to sell or trade a GHG
Page 4, Line 10credit in the trading program shall pay an independent
Page 4, Line 11third-party auditor to certify any GHG credit created by the project.
Page 4, Line 12(C) The commission shall adopt any rules necessary to
Page 4, Line 13authorize the sale, trading, and purchase of GHG credits
Page 4, Line 14created by a water quality green infrastructure project in the trading program.
Page 4, Line 15SECTION 2. Act subject to petition - effective date. This act
Page 4, Line 16takes effect at 12:01 a.m. on the day following the expiration of the
Page 4, Line 17ninety-day period after final adjournment of the general assembly; except
Page 4, Line 18that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 4, Line 19of the state constitution against this act or an item, section, or part of this
Page 4, Line 20act within such period, then the act, item, section, or part will not take
Page 4, Line 21effect unless approved by the people at the general election to be held in
Page 5, Line 1November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.