SB 24-165

Senate Bill 24-165, titled "Air Quality Improvements," aims to enhance air quality in Colorado by setting stricter emission standards for diesel-powered equipment and oil and gas operations. The bill requires the Air Quality Control Commission to create rules that limit emissions from facilities contributing to mobile source pollution within the Denver metro area. It also mandates a pause on certain oil and gas activities during summer months when ozone levels are highest, starting in 2025. Additionally, it establishes reporting requirements for oil and gas operators to track their emissions and sets targets for reducing vehicle miles traveled in affected areas. Since the bill has been signed into law, these regulations will be implemented according to the specified deadlines, impacting industries such as transportation, construction, and energy within the designated nonattainment area.

Official Summary

On or before December 31, 2028, the bill requires the air quality control commission (AQCC) in the department of public health and environment (department) to adopt by rule certain emission standards and requirements for in-use, off-road, diesel-fueled fleets. On or before December 31, 2025, the AQCC must adopt rules for controlling emissions from facilities, buildings, structures, installations, or real property that generates mobile source activity that results in emissions of air pollutants (indirect source) within the 8-hour ozone Denver metro/north front range nonattainment area (covered nonattainment area). The rules must include emission reduction targets for indirect sources to achieve and a process for the division of administration (division) in the department to review alternative approaches proposed by an owner or operator of an indirect source. The commission may establish a fee for indirect sources within the covered nonattainment area to cover the division's costs in implementing the rules. The bill also defines "ozone season" as the period beginning May 1 and ending September 30 of each year (ozone season). Beginning in the 2025 ozone season, and in each ozone season thereafter, any oil and gas preproduction activity within the covered nonattainment area must pause for the duration of the ozone season. On or before June 30, 2024, and on or before each June 30 thereafter, an oil and gas operator in the state is required to submit an oil and natural gas annual emission inventory report (inventory report) to the division that includes, for the previous calendar year, the emissions of certain air pollutants from oil and gas operations under the control of the oil and gas operator. On or before October 1, 2024, and on or before each October 1 thereafter, the division, in coordination with the energy and carbon management commission (ECMC), must prepare a report regarding the inventory reports received by the division for the previous calendar year and certain other information. On or before November 30, 2024, and on or before each November 30 thereafter, for the ozone season of the subsequent year, an oil and gas operator that controls oil and gas operations in the covered nonattainment area must submit a report to the division estimating emissions of nitrogen oxides from the oil and gas operator's operations in the covered nonattainment area (estimates). For the 2025 ozone season, and for each ozone season thereafter, the ECMC, in consultation with the division, must develop an ozone season nitrogen oxides emission budget (budget) for the emissions of nitrogen oxides by oil and gas operations in the covered nonattainment area, which budget must set certain maximum average emission levels of nitrogen oxides by oil and gas operations. On or before February 1, 2025, and on or before each February 1 thereafter, the division must prepare a nitrogen oxides report regarding the estimates received by the division for use by the ECMC in determining if the total estimates received exceed the budget for the ozone season of the current year. Beginning in February 2025, and in each February thereafter, the ECMC, in consultation with the division, must act to limit emissions of nitrogen oxides from oil and gas operations in the covered nonattainment area in a manner that prevents an exceedance of the current year's budget. The bill also requires the department of transportation to establish vehicle miles traveled reduction targets for the covered nonattainment area and to develop policies and programs to assist applicable metropolitan planning organizations in meeting the targets. (Note: This summary applies to this bill as introduced.)

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