HB 24-1330

HB 24-1330, also known as the Air Quality Permitting bill in Colorado, aims to strengthen regulations for air quality permits related to oil and gas activities. The bill requires that when evaluating permit applications for new oil and gas systems, especially in areas with poor air quality, the state must consider emissions from all parts of the system, including exploration and preproduction stages. It also mandates that any proposed source in a nonattainment area (an area not meeting federal air quality standards) must demonstrate significant emission reductions and cannot be located in communities already heavily impacted by pollution. The bill further specifies that starting January 1, 2025, permits will need to include detailed modeling of potential air quality impacts and strict conditions based on this analysis. Since the bill has been signed into law, these new rules are now set to take effect as specified.

Official Summary

Section 1 of the bill clarifies that a request for general permit registration does not constitute having a valid construction permit (permit). Section 1 also requires the division of administration in the department of public health and environment (division) or the air quality control commission (commission), in evaluating a permit application for an emitting source (source) that includes an oil and gas system (oil and gas system), to: Aggregate emissions from the oil and gas system; and Include emissions from exploration and preproduction activities. Section 2 requires that the division or the commission only grant permits for certain proposed sources in a nonattainment area if: The division or commission determines that the proposed source will not contribute to an exceedance of any applicable national ambient air quality standard (determination); The owner or operator of the proposed source achieves emissions reductions of each air pollutant for which the nonattainment area is in nonattainment that are equal to or greater than the anticipated emissions of the proposed source; and The proposed source is not in a disproportionately impacted community. On and after January 1, 2025, the division or commission must base any determination on the modeling of air quality impacts from emissions (air quality modeling). If a permit is granted after air quality modeling is conducted: Any assumption used in the air quality modeling must be included in the permit as a permit condition; and Any averaging time utilized for a permit condition must be no greater than the averaging time for any applicable national ambient air quality standard. Section 3 requires the energy and carbon management commission to require that an oil and gas operator obtain a permit from the division or the commission before making a final determination on an oil and gas permit application.(Note: This summary applies to this bill as introduced.)