HOUSE 3rd Reading Unamended April 18, 2012 HOUSE Amended 2nd Reading March 29, 2012Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 12-0472.02 Thomas Morris x4218 HOUSE BILL 12-1161 HOUSE SPONSORSHIP Looper, SENATE SPONSORSHIP King K., House Committees Senate Committees Agriculture, Livestock, & Natural Resources Appropriations A BILL FOR AN ACT Concerning scientific review of water quality rules regulating nutrients. 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://www.leg.state.co.us/billsummaries.) The bill establishes a nutrients scientific advisory board, appointed by leadership of the general assembly, to review proposed numeric water quality nutrient standards regulating nitrogen and phosphorus to determine how the proposed rules comply with an executive order; reflect active stakeholder participation; fully consider a cost-benefit study; are structured to avoid unnecessary regulation and minimize the fiscal impact to state agencies and local governments; and are designed to address basin-specific conditions. The advisory board will deliver a report to the water quality control commission and the general assembly by February 1, 2013. The commission cannot adopt the proposed rule until the rule is approved by the general assembly acting by bill. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly hereby: (a) Finds that: (I) The nutrients nitrogen and phosphorus are widely present in the environment from both natural and anthropogenic sources; (II) Colorado has historically established nutrient reduction requirements where necessary to protect uses, water resources, and aquatic life from excessive plant growth; (III) In response to environmental protection agency requirements, the Colorado water quality control division (division) has proposed nutrient control regulations and the Colorado water quality control commission has scheduled a rule-making hearing in March 2012 to consider changes to its nutrient regulations; and (IV) Governor Hickenlooper has established a policy by executive order D 2011-005, dated January 11, 2011, stating that no state agency shall promulgate any regulation unless it is specifically mandated by law, and only then in consultation with local governments, and funding is provided to comply with the mandate; (b) Determines that: (I) Controlling nutrients as recommended by the environmental protection agency and proposed by the division will impose a widespread economic burden on those entities responsible for meeting numeric standards, and this economic burden may affect the viability of urban and rural communities; and (II) Implementing nutrient regulations may also have environmental benefits, including protection of drinking water supplies, that need to be better understood; and (c) Declares that: (I) It is in Colorado's interests to minimize nutrient reduction costs by developing a program that is flexible, effectively protects drinking water supplies, and allows consideration of basin-specific concerns; and (II) This act is necessary to ensure that the division's proposal: (A) Complies with executive order D 2011-005; (B) Reflects active stakeholder participation; (C) Fully considers applicable cost-benefit study conclusions; and (D) Is structured to avoid unnecessary regulation and minimize the fiscal impact to state agencies and local governments; and (E) Is designed to address basin-specific conditions. SECTION 2. In Colorado Revised Statutes, 25-8-402, amend (1); and add (6) as follows: 25-8-402. Procedures to be followed in classifying state waters and setting standards and control regulations - nutrients subcommittee. (1) Except as specified in subsection (6) of this section, prior to the classification of state waters and promulgating any water quality standard or any control regulation authorized in this article, the commission shall conduct a public hearing thereon as provided in section 24-4-103, C.R.S. Notice of any such the hearing shall must conform to the requirements of section 24-4-103, C.R.S., but such the notice shall must be given at least sixty days prior to the hearing and shall must include each proposed standard or regulation. (6) Revisions to the basic standards and methodologies related to total nitrogen, total inorganic nitrogen, total phosphorous, and chlorophyll a for surface water regulation no. 31, 5 CCR 1002-31, and adoption of a new nutrients management control regulation, regulation no. 85, 5 CCR 1002-85, cannot take effect unless and until specifically approved by the general assembly acting by a bill other than the annual bill introduced pursuant to section 24-4-103, C.R.S. SECTION 3. In Colorado Revised Statutes, 37-98-102, add (7) as follows: 37-98-102. Water resources review committee - creation - repeal. (7) (a) During the 2012 interim, the committee shall hold at least one public meeting, on or before October 1, 2012, to consider whether the proposed revisions to the basic standards and methodologies related to total nitrogen, total inorganic nitrogen, total phosphorous, and chlorophyll a for surface water regulation no. 31, 5 CCR 1002-31, and adoption of a new nutrients management control regulation, regulation no. 85, 5 CCR 1002-85, as referenced in section 25-8-402 (6), C.R.S.: (I) Comply with executive order D 2011-005; (II) Reflect active stakeholder participation; (III) Fully consider the conclusions of the cost-benefit study conducted on behalf of the Colorado water resources and power development authority; (IV) Are structured to avoid unnecessary regulation and minimize the fiscal impact to state agencies and local governments; and (V) Are designed to address basin-specific conditions. (b) By November 1, 2012, the committee shall deliver a report containing its findings on the factors specified in paragraph (a) of this subsection (7) to the water quality control commission created in section 25-8-201, C.R.S. (c) This subsection (7) is repealed, effective July 1, 2013. SECTION 4. Applicability. The provisions of this act apply to rules adopted before, on, or after the effective date of this act. SECTION 5. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.