| Summary |
The bill requires the clean transit enterprise (enterprise) to impose
a production fee for clean transit (production fee for clean transit) to be
paid quarterly by every producer of oil and gas in the state (producer).
The production fee for clean transit applies to all oil and gas produced by
the producer in the state on and after July 1, 2025.
No later than one week after October 1, 2025, and no later than
one week after the first day of each calendar quarter thereafter, the energy
and carbon management commission (commission) must calculate the
average Henry Hub natural gas spot price reported by the United States
energy information administration (average gas spot price) and average
west Texas intermediate spot price reported by the United States energy
information administration (average oil spot price) for the previous
quarter and publish the average gas spot price and average oil spot price
on the commission's website.
No later than one month after the commission publishes the
average gas spot price and average oil spot price on the commission's
website, the enterprise must set the production fee amounts for the
previous calendar quarter, which are determined by the enterprise based
on the average gas spot price and average oil spot price calculated by the
commission; notify the executive director of the department of revenue
(executive director) of the production fee amounts set; and publish the
production fee amounts on the enterprise's website. Prior to adopting the
production fee amounts, the enterprise must consult with the commission
on the production fee amounts.
On or before the last day of the second month following the
previous calendar quarter, every producer must file a return and pay the
production fee for clean transit for the previous calendar quarter to the
department of revenue in accordance with applicable department of
revenue procedures. The state treasurer must first credit the costs to the
department of revenue for administering the production fees for clean
transit and then credit the remaining production fees for clean transit in
the following manner:
•
70% to the local transit operations cash fund to be used for
expanding local transit service and prioritizing transit
improvements in certain communities;
•
10% to the local transit grant program cash fund to be used
for providing competitive grants to certain eligible entities
for expenses associated with providing public
transportation; and
•
20% to the rail funding program cash fund to be used for
passenger rail projects and service.
No later than March 1, 2030, and every fifth March 1 thereafter,
the enterprise must complete an analysis of the production fee amounts
and post the analysis on the enterprise's website.
The bill also requires the regional transportation district to
prioritize completion of the northwest rail line to Longmont and the north
lines of the transportation expansion plan adopted by the regional
transportation board (plan). On or before July 1, 2025, the regional
transportation district is also required to submit a report to the governor
and the general assembly that demonstrates how the regional
transportation district will fulfill certain commitments made in the plan.
The bill also requires the division of parks and wildlife (division)
to impose a production fee for wildlife and land remediation (production
fee for wildlife and land remediation) to be paid quarterly by every
producer of oil and gas in the state (producer). The production fee for
wildlife and land remediation applies to all oil and gas produced by the
producer in the state on and after July 1, 2025.
No later than one month after the commission publishes the
average gas spot price and average oil spot price on the commission's
website, the division must set the production fee amounts for the previous
calendar quarter, which are determined by the division based on the
average gas spot price and average oil spot price calculated by the
commission; notify the executive director of the production fee amounts
set; and publish the production fee amounts on the division's website.
Prior to adopting the production fee amounts, the division must consult
with the commission on the production fee amounts.
On or before the last day of the second month following the
previous calendar quarter, every producer must file a return and pay the
production fee for wildlife and land remediation for the previous calendar
quarter to the department of revenue in accordance with applicable
department of revenue administrative procedures. The state treasurer must
credit the production fees for wildlife and land remediation in the
following manner:
•
First, the costs to the department of revenue for
administering the production fees for wildlife and land
remediation are credited to the department of revenue; and
•
Second, the remaining amount of production fees for
wildlife and land remediation are credited to the climate
resilient wildlife and land cash fund to be used for certain
wildlife and land remediation purposes.
No later than March 1, 2030, and every fifth March 1 thereafter,
the division must complete an analysis of the production fee amounts and
post the analysis on the division's website.
Along with publishing the average gas spot price and average oil
spot price on the commission's website, the commission is required to
routinely provide written guidance to the enterprise and the division on
factors relevant to the production fee amounts for the production fee for
clean transit and the production fee for wildlife and land remediation.
The bill also establishes:
•
Certain department of revenue administrative procedures,
including certain registration and return filing
requirements, for the collection of the production fees for
clean transit and the production fees for wildlife and land
remediation;
•
A petty offense and civil penalty for a producer's failure to
register with the department of revenue; and
•
The accrual of interest and penalties for a producer's failure
to pay or correctly account for any production fees for
wildlife and land remediation or production fees for clean
transit or to keep complete and accurate records.
If a constitutional amendment is adopted at the 2024 statewide
general election that requires voter approval of fees assessed for the
purpose of funding mass transportation, the bill creates certain definitions
that apply to the constitutional amendment.
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