Colorado § 25-8-210 - Fees established administratively - rules - shareholding requirement - phase-in period - clean water cash fund - creation - repeal.

§ 25-8-210. Fees established administratively - rules - shareholding requirement - phase-in period - clean water cash fund - creation - repeal.

(1) (a) On or before October 31, 2025, the commission shall establish the following fees by rule:

(I) Drinking water fees assessed on public water systems pursuant to section 25-1.5-209 (1), as that section existed prior to its repeal on July 1, 2026;

(II) Commerce and industry sector permitting fees assessed pursuant to section 25-8-502 (1.1)(b), as that section existed prior to its repeal on July 1, 2026;

(III) Construction sector permitting fees assessed pursuant to section 25-8-502 (1.1)(c), as that section existed prior to its repeal on July 1, 2026;

(IV) Pesticide sector permitting fees assessed pursuant to section 25-8-502 (1.1)(d), as that section existed prior to its repeal on July 1, 2026;

(V) Public and private utilities sector permitting fees pursuant to section 25-8-502 (1.1)(e), as that section existed prior to its repeal on July 1, 2026;

(VI) Municipal separate storm sewer system sector permitting fees pursuant to section 25-8-502 (1.1)(f), as that section existed prior to its repeal on July 1, 2026;

(VII) Review fees assessed pursuant to section 25-8-502 (1.2) for requests for certification under section 401 of the federal act, as that section existed prior to its repeal on July 1, 2026;

(VIII) Preliminary effluent limitation determination fees assessed pursuant to section 25-8-502 (1.3)(b), as that section existed prior to its repeal on July 1, 2026;

(IX) Wastewater site application and design review fees assessed pursuant to section 25-8-502 (1.3)(c), as that section existed prior to its repeal on July 1, 2026;

(X) On-site wastewater treatment system fees assessed pursuant to section 25-10-107 (3), including rules establishing the percentage of the on-site wastewater treatment system fees collected that a county may retain to cover the county's administrative costs, as that section existed prior to its repeal on July 1, 2026; and

(XI) Biosolids management program fees assessed pursuant to section 30-20-110.5 (1), as that section existed prior to its repeal on July 1, 2026.

(b) The commission shall set the fees and periodically adjust the fees, and the general assembly may, by bill, annually adjust the fees, in an amount sufficient to cover the division's direct and indirect costs associated with administering and implementing the federal act, the federal "Safe Drinking Water Act", 42 U.S.C. sec. 300f et seq., section 25-1-114.1, part 2 of article 1.5 of this title 25, this article 8, and the "On-site Wastewater Treatment Systems Act", article 10 of this title 25.

(c) (I) The fee-setting rules adopted pursuant to subsection (1)(a) of this section must become effective on or before January 1, 2026. If the commission adopts rules authorizing the division to phase in the fee-setting rules, the division may require permit applicants, permit holders, and public water systems to pay fees as set by the fee-setting rules instead of the fees set forth in statute before July 1, 2026.

(II) If the commission establishes a process for the division's phase in of the fee-setting rules pursuant to subsection (1)(c)(I) of this section, the commission's rules must establish a process for the division's phase in of the fee-setting rules. The process established by rule must include notice to permit applicants, permit holders, and public water systems regarding the process, including requirements to post the process on the division's website and engage in community outreach regarding the process.

(III) This subsection (1)(c) is repealed, effective September 1, 2027.

(d) On or before December 31, 2025, the commission shall establish by rule the authorization fees for the dredge and fill program, as defined in section 25-8-205.1 (3). The division shall transmit the fees collected pursuant to the commission's fee-setting rules adopted under this subsection (1)(d) to the state treasurer, who shall credit the fees to the clean water cash fund created in subsection (4) of this section.

(2) (a) Before the commission adopts the fee-setting rules pursuant to subsection (1)(a) of this section or adopts any subsequent adjustments to the fees, and in accordance with section 25-8-502 (1.5)(c)(I)(B), the department of public health and environment shall conduct outreach to obtain stakeholder input regarding the total funding for the division, including federal money, money from the general fund, and all cash fees.

(b) Through the stakeholder process, the department of public health and environment shall identify the fee revenue needed for evaluation of the feasibility of treatment methods required to meet water quality standards and other regulations adopted or proposed for adoption, including the funding needed:

(I) To support the development of variances;

(II) To improve permit issuance processes to increase efficiency and facilitate the timely issuance of new permits;

(III) For renewal permits, permit modifications, and reducing permit backlog; and

(IV) For the preparation of cost-benefit analyses and regulatory analyses when required pursuant to section 24-4-103 (2.5) or (4.5) of the "State Administrative Procedure Act".

(c) In conducting stakeholder outreach, the department of public health and environment shall discuss with stakeholders the options for setting a cap on the amount of fee increases.

(d) Through the stakeholder process, the department of public health and environment shall seek input from:

(I) Owners and operators of regulated drinking water systems;

(II) Permit holders;

(III) County representatives;

(IV) Representatives of other local governments;

(V) Conservation groups;

(VI) Environmental justice groups; and

(VII) Community members, including members of disproportionately impacted communities as defined in section 24-4-109 (2)(b)(II).

(e) The department of public health and environment shall conduct outreach to and engagement of disproportionately impacted communities pursuant to this subsection (2) in accordance with section 24-4-109 (3).

(3) (a) Repealed.

(b) On and after July 1, 2026, the division shall transmit:

(I) The fees collected pursuant to the commission's fee-setting rules adopted under subsections (1)(a)(II) to (1)(a)(XI) of this section to the state treasurer, who shall credit the fees to the clean water cash fund created in subsection (4) of this section; and

(II) The fees collected pursuant to the commission's fee-setting rules adopted under subsection (1)(a)(I) of this section to the state treasurer, who shall credit the fees to the drinking water cash fund created in section 25-1.5-209 (2).

(4) (a) The clean water cash fund is created in the state treasury. The fund consists of:

(I) Fees collected pursuant to the commission's fee-setting rules adopted pursuant to subsections (1)(a)(II) to (1)(a)(XI) of this section;

(I.2) Fees collected pursuant to section 25-8-503.7 (3);

(I.5) Money that the general assembly transfers to the fund pursuant to subsection (4)(d) of this section;

(II) Any other money that the general assembly may appropriate or transfer to the fund; and

(III) Any federal funds credited to the fund.

(b) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the clean water cash fund to the fund.

(c) The general assembly shall annually appropriate money from the sources specified in subsections (1)(a)(I) and (1)(a)(II) of this section in the clean water cash fund to the department for use by the division for the division's administration and implementation of the federal act and this article 8.

(d) For the 2026-27 state fiscal year and for each state fiscal year thereafter, the state treasurer shall transfer two hundred forty-eight thousand three hundred four dollars from the general fund to the clean water cash fund.

Source: L. 2023: Entire section added, (SB 23-274), ch. 216, p. 1111, § 4, effective May 17. L. 2024: (1)(d), (4)(a)(I.5), and (4)(d) added, (HB 24-1379), ch. 274, p. 1823, § 4, effective May 29. L. 2025: (4)(a)(I.2) added, (SB 25-305), ch. 429, p. 2479, § 6, effective June 4.

Editor's note: Subsection (3)(a)(II) provided for the repeal of subsection (3)(a), effective September 1, 2026. (See L. 2023, p. 1111.)

PART 3

ADMINISTRATION