| AI Summary |
This bill will improve the timeliness, transparency, and efficiency of Colorado’s water quality permitting process, while providing flexibility for local governments and ensuring proper funding and oversight mechanisms.
KEY PROVISIONS
Annual Reporting Improvements
- The Division of Administration (within CDPHE) must:
- Include in its annual report to the Water Quality Control Commission:
- Information on timing of water quality permit reviews
- For the 2026 report only:
- Detail efforts to reduce permit backlogs
- Summarize feedback from permit holders
- Report on increased drinking water inspections
Narrow Scope for Permit Modifications
- When reviewing a permit modification application, the division must only consider the specific elements requested—not the entire permit.
Pre-Public Review of Draft Permits
- By December 31, 2026, the Commission must adopt rules to:
- Allow a 14-day public review of the division’s preliminary draft permit before formal notice.
- Purpose: To identify errors only (not to debate policy).
Deadlines for Permitting Actions
- By June 30, 2028, rules must be in place to establish clear timeframes for how long the division may take to grant or deny different types of permit applications.
Local Government Financial Considerations
- When setting compliance schedules for new effluent limits, the division must:
- Consider a local government’s existing debt for water infrastructure.
- Allow up to 20+ years for compliance if consistent with federal law.
Independent Contractor Option for Delayed Permits
- Starting May 1, 2026, if a permit modification or renewal has been pending for over 60 days, or if the division won’t process it:
- The applicant and division can agree to use a qualified third-party contractor for technical assistance.
- Division must maintain a list of at least 3 qualified contractors.
- Applicant pays:
- Contractor costs
- Up to 10% administrative fee to the division (credited to the Clean Water Cash Fund)
- Division retains oversight of contractor’s work.
Data Transparency for Permittees
- Upon request, the division must give permittees access to all non-privileged documents it used in developing a permit decision.
Transfers of Funds
- Effective July 1, 2025–2026, the bill shifts funds to support clean and drinking water programs:
- $111,000 to Drinking Water Cash Fund (from Water Quality Improvement Fund)
- $6.5+ million total from the PFAS Cash Fund split between:
- Clean Water Cash Fund
- Drinking Water Cash Fund
OVERALL EFFECT
- Increases regulatory efficiency in water permitting
- Addresses backlogs and delays
- Balances environmental compliance with local financial realities
- Adds transparency and public input safeguards
- Ensures funding to support permitting and oversight functions
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| Summary |
Joint Budget Committee. Current law requires the division of
administration (division) within the department of public health and
environment to report annually to the water quality control commission
(commission) and to include in the report any regulatory or legislative
recommendations the division may have. The bill requires the report to
also include:
•
Information on the division's timing in considering and
issuing water quality permits (permits); and
•
For the report submitted in 2026, a detailed discussion of
how the division has prioritized reducing the permit
backlog, implemented recommendations from water quality
permittees (permittee) for permitting efficiency, and
increased safe drinking water program inspections.
The bill requires the division, upon receipt of an application to
modify a permit, to limit its review and its approval or denial of the
application to the scope of the specific requests contained in the
application.
The bill requires the commission to adopt rules on or before
December 31, 2026, that establish procedures whereby the division, prior
to giving public notice of a complete permit application for an individual
permit and the division's preliminary analysis of the application, may
provide a period of public notice and review of a preliminary draft
prepared by the division. If a period of public notice and review is
required by rules of the commission, the period of public notice and
review may not exceed 14 days, and the purpose of the review is limited
to identifying errors in the division's preliminary draft.
On or before December 31, 2027, the division must propose rules
to the commission that establish a time frame during which the division
will either grant or deny applications for each type of permitting action.
On or before June 30, 2028, the commission must adopt rules based on
the division's proposal. The rules must establish the time frames for
permitting actions.
The bill requires the division to consider current debt service on
existing local government water infrastructure when developing
schedules of compliance for new effluent limits in local government
permits. Any schedule of compliance for new effluent limits in local
government permits must, consistent with state and federal law, consider
the local government's financial capability to repay existing debt on water
infrastructure or to fund water infrastructure upgrades before requiring
new water infrastructure upgrades. To the extent allowable under federal
law, the division may issue compliance schedules in a local government
permit for a new effluent limit in excess of 20 years.
The bill states that, on and after May 1, 2026, after an application
for permit modification or permit renewal has been pending before the
division for 60 days, or for any application for permit modification or
permit renewal that is pending before the division as of May 1, 2026, or
if the division informs an applicant that the division will not process an
application for preliminary effluent limitations, the applicant and the
division may mutually agree to use a qualified and independent
nongovernmental contractor (contractor) under the direction of the
division to provide the division with technical assistance in completing
the permit action. The division shall maintain a list of at least 3 qualified
nongovernmental contractors for this purpose.
An applicant shall bear the contractor's costs for any technical
assistance provided by the contractor and shall pay the contractor for such
costs. The division may charge an applicant an additional fee in an
amount not exceeding 10% of the contract amount for contract
administration, technical review, and additional permit processing, which
fee is credited to the clean water cash fund. The division may, before
issuing its final permit action, require the applicant to fully pay this fee
and any contractor costs. The division shall provide oversight to ensure
that contractors provide technical assistance in accordance with the terms
of their contracts.
The bill requires the division, upon a permittee's request, to make
available to the permittee all documents, data, and information the
division relied upon in developing the permittee's permit modification or
permit renewal, except to the extent that such materials are protected by
an applicable privilege or exception.
The bill makes the following transfers of money:
•
On July 1, 2025, $111,000 from the water quality
improvement fund to the drinking water cash fund;
•
On July 1, 2025, $3,518,564 from the perfluoroalkyl and
polyfluoroalkyl substances cash fund to the clean water
cash fund;
•
On July 1, 2026, $3,002,435 from the perfluoroalkyl and
polyfluoroalkyl substances cash fund to the clean water
cash fund; and
•
On July 1, 2026, $516,129 dollars from the perfluoroalkyl
and polyfluoroalkyl substances cash fund to the drinking
water cash fund.
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