Colorado Revised Statutes Title 25. Health § 25-8-311. Water quality green infrastructure--feasibility studies--pilot projects--division collaboration with universities--legislative declaration--definitions--reports--gifts, grants, or donations--repeal

(I) Supporting cost-effective, holistic solutions for the attainment of water quality standards;

(II) In furtherance of the Colorado pollutant trading policy, helping owners and operators of water and wastewater treatment facilities meet state and federal water quality standards without having to invest in gray infrastructure upgrades; and

(III) To finance the monitoring, management, conservation, and water quality improvement of both surface and groundwater in the state, connecting operators of water and wastewater treatment facilities with new, climate-focused sources of financing and capital, including carbon credits and wildfire mitigation investments.

(I) The university of Colorado and Colorado state university should conduct, and the division may advise on, a feasibility study regarding the use of green infrastructure and develop pilot projects to demonstrate green infrastructure in Colorado; and

(II) Nothing in this section shall be construed to authorize or encourage speculation in the development of a water right, as defined in section 37-92-103(12), or any violation of:

(I) Green infrastructure, rather than traditional gray infrastructure, may be used in an alternative compliance program using mechanisms described in the Colorado pollutant trading policy and the federal water quality trading policy;

(II) New sources of funding through environment-focused mechanisms, such as green bonds, mitigation banking, climate finance, and carbon credits, may:

(III) An alternative compliance program may be aligned with other state and community interests including wildfire mitigation; and

(IV) The use of alternative compliance programs would reduce costs for the department of public health and environment, municipalities, and other water and wastewater providers in the state in comparison to using gray infrastructure to comply with state and federal water quality standards.

(b)(I) The universities shall complete, and the division may advise on, the feasibility study on or before April 1, 2026. With consideration given to the findings of the feasibility study, the universities, with the approval of the division, shall establish up to three pilot projects in the state to demonstrate the:

(II) A pilot project established pursuant to this subsection (3)(b) may be operated for up to five years. The universities may provide technical assistance to the operator of a pilot project that the division approves under this subsection (3)(b), and the universities shall recommend for the division's approval the design, size, and monitoring requirements for each pilot project.

(I) Any conclusions of the division, in coordination with the entities listed in subsection (3)(a) of this section, regarding the potential success of alternative compliance programs or funding sources listed in subsection (3)(a)(II) of this section; and

(II) Any recommendations for legislative or administrative action needed to promote the use of alternative compliance programs or the funding sources listed in subsection (3)(a)(II) of this section.