Regulation of Underground Injection Control Wells

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction HOUSE BILL 26-1112 LLS NO. 26-0613.01 Sarah Lozano x3858 HOUSE SPONSORSHIP Paschal and Smith, Bacon, Brown, Duran, Froelich, Goldstein, Gonzalez R., Jackson, Joseph, Lindsay, Marshall, McCluskie, McCormick, Rydin, Stewart K., Titone, Valdez, Woodrow SENATE SPONSORSHIP Hinrichsen and Simpson, House Committees Senate Committees Energy & Environment Finance Appropriations A BILL FOR AN ACT CONCERNING STATE REGULATION OF UNDERGROUND INJECTION CONTROL WELLS, AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.

The bill grants the energy and carbon management commission (commission) authority over class I, class IV, and class V injection wells and allows the commission to seek and adopt rules related to primacy from the United States environmental protection agency (EPA) for these classes of injection wells. The commission may assess and collect fees Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.

Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law.

May 11, 2026 HOUSE HOUSE Amended 2nd Reading May 9, 2026 (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://leg.colorado.gov.) 3rd Reading Unamended Bill Summary related to the regulation of class I, class IV, and class V injection wells. A person that willfully violates a rule, permit, authorization, or order of the commission related to these classes of injection wells commits a misdemeanor and is subject to certain penalties. The bill also grants the mined land reclamation board (board) authority over class III injection wells and allows the board to seek and adopt rules related to primacy from the EPA for class III injection wells. The board may assess and collect fees related to the regulation of class III injection wells. A person that violates a rule, permit, authorization, or order of the board related to class III injection wells or that operates a class III injection well without a permit from the board is subject to certain penalties. The bill also provides that a class III injection well is not eligible for an exemption from designated mining operation status, which status subjects the operator to certain rules adopted by the board.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly finds that:

(a) Underground injection control wells, referred to in this section as "UIC wells", are used to place fluid underground into geologic formations;

(b) The United States environmental protection agency, referred to in this section as the "EPA", regulates the construction and operation of 6 classes of UIC wells, which are classified based on the type of fluid injected and the depth of the injection in relation to underground sources of drinking water;

(c) The federal "Safe Drinking Water Act" requires the EPA to develop UIC well program requirements that protect underground sources of drinking water from endangerment;

(d) The EPA may grant primacy enforcement and regulatory authority, referred to in this section as "primacy", to a state; (e) Colorado, specifically the Colorado energy and carbon management commission, has primacy over class II UIC wells and anticipates gaining primacy over class VI UIC wells in 2026; all other classes of UIC wells are still regulated by the EPA; and

(f) As of July 2025, over half of the states in the United States have been granted primacy by the EPA for at least class I, II, III, IV, and V UIC wells, and 5 states have been granted full primacy for all UIC well classes.

(2) The general assembly therefore declares that:

(a) It is in the public interest for Colorado state agencies to regulate all UIC well classes; (b) Primacy over all UIC well classes will enable Colorado to have a tailored approach to UIC well regulation that:

(I) Attracts and supports emerging industries with technologies to help achieve climate goals, including carbon management, geothermal, and hydrogen operations;

(II) Facilitates innovative water management strategies, including aquifer recharge, storage, and recovery necessary to meet the state's water challenges;

(III) Provides a more straightforward approach to permitting, authorizing, and regulating several industries where state and federal authorities currently overlap;

(IV) Provides reliability in resource commitment and expectations amidst fluctuating federal priorities; and (V) Establishes timely and efficient authorization and permitting processes; (c) Colorado will regulate UIC wells in a manner that protects public health, safety, and welfare; the environment; wildlife resources;

and underground sources of drinking water; and

(d) The Colorado energy and carbon management commission should lead the state's primacy application process and collaborate with the division of reclamation, mining, and safety and the division of water resources in the Colorado department of natural resources, the Colorado department of public health and environment, and the Colorado department of labor and employment.

SECTION 2. In Colorado Revised Statutes, 34-60-102, add (4) as follows:

34-60-102. Legislative declaration.

(4) IT IS FURTHER DECLARED TO BE IN THE PUBLIC INTEREST FOR THE COMMISSION TO SEEK AND RECEIVE PRIMACY OVER CLASS I, CLASS IV, AND CLASS V INJECTION WELLS CLASSIFIED IN 40 CFR 144.6 BECAUSE PRIMACY WILL ENABLE COLORADO TO HAVE A TAILORED APPROACH TO INJECTION WELL REGULATION THAT:

(a) FACILITATES INNOVATIVE WATER MANAGEMENT STRATEGIES, INCLUDING AQUIFER RECHARGE, STORAGE, AND RECOVERY NECESSARY TO MEET THE STATE'S WATER CHALLENGES;

(b) PROVIDES A MORE STRAIGHTFORWARD APPROACH TO PERMITTING, AUTHORIZING, AND REGULATING SEVERAL INDUSTRIES WHERE STATE AND FEDERAL AUTHORITIES CURRENTLY OVERLAP;

(c) PROVIDES RELIABILITY IN RESOURCE COMMITMENT AND EXPECTATIONS AMIDST FLUCTUATING FEDERAL PRIORITIES; AND

(d) ESTABLISHES TIMELY AND EFFICIENT AUTHORIZATION AND PERMITTING PROCESSES.

SECTION 3. In Colorado Revised Statutes, 34-60-106, add (23) and (24) as follows:

34-60-106. Additional powers of commission - fees - rules definitions - repeal.

(23) (a) (I) NOTWITHSTANDING SECTION 34-60-120 OR ANY OTHER PROVISION OF LAW OTHER THAN SECTION 34-60-105 (4), AS TO CLASS I, CLASS IV, AND CLASS V INJECTION WELLS CLASSIFIED IN 40 CFR 144.6, THE COMMISSION MAY PERFORM ALL ACTS FOR THE PURPOSE OF PROTECTING ACCORDANCE WITH STATE PROGRAMS AUTHORIZED BY THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C. SEC. 300f ET SEQ., AND REGULATIONS UNDER THOSE SECTIONS, AS AMENDED.

UNDERGROUND SOURCES

(II) THE COMMISSION MAY SEEK OF DRINKING WATER IN CLASS I, CLASS IV, AND CLASS V INJECTION WELL PRIMACY UNDER THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C. SEC. 300f ET SEQ., AND REGULATIONS UNDER THOSE SECTIONS, AS AMENDED. THE COMMISSION MAY ADOPT RULES FOR THE PURPOSES OF ESTABLISHING AND OPERATING THE UNDERGROUND INJECTION CONTROL AUTHORIZATION AND PERMIT PROGRAM. THE RULES ADOPTED BY THE COMMISSION MUST MEET THE REQUIREMENTS PRESCRIBED BY 42 U.S.C. SEC. 300h (b), AS AMENDED. THE COMMISSION SHALL SEEK TO ESTABLISH TIMELY AND EFFICIENT AUTHORIZATION AND PERMITTING PROCESSES. UPON RECEIVING PRIMACY, THE COMMISSION MAY ENFORCE RULES FOR THE PERMITTING, AUTHORIZATION, AND REGULATION OF CLASS I, CLASS IV, AND CLASS V INJECTION WELLS IN ACCORDANCE WITH THIS SUBSECTION (23).

(III) THE COMMISSION MAY ADOPT RULES RELATED TO CLASS I, CLASS IV, AND CLASS V INJECTION WELLS THAT ARE MORE STRINGENT THAN CORRESPONDING ENFORCEABLE TECHNICAL FEDERAL REQUIREMENTS ONLY IF IT IS DEMONSTRATED AT A PUBLIC HEARING, AND THE COMMISSION FINDS, THAT RULES MORE STRINGENT THAN THE CORRESPONDING FEDERAL REQUIREMENTS ARE NECESSARY TO PROTECT PUBLIC HEALTH, SAFETY, AND WELFARE; THE ENVIRONMENT; AND WILDLIFE RESOURCES.

(23)(a)(III) BY THE COMMISSION MUST BE ACCOMPANIED BY A STATEMENT OF BASIS AND PURPOSE REFERRING TO AND EVALUATING INFORMATION AND STUDIES RELATED TO PUBLIC HEALTH, SAFETY, AND WELFARE; THE ENVIRONMENT; AND WILDLIFE RESOURCES CONTAINED IN THE RECORD THAT FORMS THE BASIS FOR THE COMMISSION'S FINDING.

A FINDING PURSUANT TO THIS SUBSECTION

(b) A PERSON THAT WILLFULLY VIOLATES A CLASS I, CLASS IV, OR CLASS V INJECTION WELL RULE, PERMIT, AUTHORIZATION, OR ORDER OF THE COMMISSION ISSUED PURSUANT TO THIS SUBSECTION (23) COMMITS A MISDEMEANOR AND, UPON CONVICTION BY A COURT OF COMPETENT JURISDICTION, IS SUBJECT TO A FINE OF AT LEAST FIVE THOUSAND DOLLARS AND NO MORE THAN SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR EACH ACT OF VIOLATION AND FOR EACH DAY THAT THE PERSON REMAINS IN VIOLATION.

(c) (I) FOR THE PURPOSES OF IMPLEMENTING AND ADMINISTERING THIS SUBSECTION (23), THE COMMISSION MAY ASSESS AND COLLECT FEES, INCLUDING, BUT NOT LIMITED TO, PERMITTING AND REGULATORY FEES FOR CLASS I, CLASS IV, AND CLASS V INJECTION WELLS, IN AN AMOUNT AND FREQUENCY DETERMINED BY THE COMMISSION BY RULE. THE COMMISSION SHALL SET THE FEES IN AN AMOUNT TO COVER THE COMMISSION'S DIRECT AND INDIRECT AND REASONABLY NECESSARY COSTS OF IMPLEMENTING AND ADMINISTERING THIS SUBSECTION (23).

(II) THE STATE TREASURER SHALL CREDIT THE FEES ASSESSED AND COLLECTED PURSUANT TO SUBSECTION (23)(c)(I) OF THIS SECTION TO THE ENERGY AND CARBON MANAGEMENT CASH FUND CREATED IN SECTION

(d) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY, NOTHING IN THIS SECTION ESTABLISHES, ALTERS, IMPAIRS, OR NEGATES THE ABILITY OF A LOCAL GOVERNMENT TO REGULATE LAND USE RELATED TO CLASS I, CLASS IV, OR CLASS V INJECTION WELLS.

(e) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF NATURAL RESOURCES CREATED IN SECTION 24-33-101 (1) SHALL PROPOSE, AS PART OF THE ANNUAL BUDGET REQUEST OF THE DEPARTMENT OF NATURAL RESOURCES PURSUANT TO SECTION 2-3-208, INITIAL SPENDING AUTHORITY IN THE AMOUNT NECESSARY TO ENFORCE RULES FOR THE PERMITTING, AUTHORIZATION, AND REGULATION OF CLASS I, CLASS IV, AND CLASS V INJECTION WELLS IN ACCORDANCE WITH THIS SUBSECTION (23). THE OFFICE OF STATE PLANNING AND BUDGETING CREATED IN SECTION 24-37-102, IN CONJUNCTION WITH THE DEPARTMENT OF NATURAL RESOURCES, SHALL INCLUDE IN THE ANNUAL BUDGET REQUEST SUBMITTED PURSUANT TO SECTION 2-3-208 A PROPOSAL TO ELIMINATE OR MINIMIZE THE IMPACT, FOR THE FIRST FISCAL YEAR IN WHICH FEE REVENUE WILL BE COLLECTED OR EXPENDED, OF THE MONEY IN THE ENERGY AND CARBON MANAGEMENT CASH FUND CREATED IN SECTION 34-60-122 (5) ON THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION.

NOTWITHSTANDING SECTION 34-60-115, ANY ACTION UNDERTAKEN PURSUANT TO SUBSECTION (9)(c)(II)(B) OF THIS SECTION OR SUBSECTION (23)(b) OF THIS SECTION MUST COMMENCE WITHIN FIVE YEARS AFTER THE DATE THAT THE COMMISSION DISCOVERS THE ALLEGED VIOLATION.

SECTION 4. In Colorado Revised Statutes, 34-60-124, amend (1)(g) as follows:

34-60-124. Energy and carbon management cash fund definitions.

(1) The state treasurer shall credit the following money to the fund: (g) Money credited to the fund pursuant to sections 34-60-106, 34-64-108 (4), and 37-90.5-106 (4). SECTION 5. In Colorado Revised Statutes, 34-32-102, add (4) as follows:

34-32-102. Legislative declaration.

(4) THE GENERAL ASSEMBLY FURTHER DECLARES THAT IT IS IN THE PUBLIC INTEREST FOR THE BOARD TO SEEK AND RECEIVE PRIMACY OVER CLASS III INJECTION WELLS BECAUSE PRIMACY WILL ENABLE COLORADO TO HAVE A TAILORED APPROACH TO INJECTION WELL REGULATION THAT:

(a) PROVIDES A MORE STRAIGHTFORWARD APPROACH TO PERMITTING, AUTHORIZING, AND REGULATING SEVERAL INDUSTRIES WHERE STATE AND FEDERAL AUTHORITIES CURRENTLY OVERLAP;

(b) PROVIDES RELIABILITY IN RESOURCE COMMITMENT AND EXPECTATIONS AMIDST FLUCTUATING FEDERAL PRIORITIES; AND

(c) ESTABLISHES TIMELY AND EFFICIENT AUTHORIZATION AND PERMITTING PROCESSES.

SECTION 6. In Colorado Revised Statutes, 34-32-103, amend (3.5)(a)(II), (3.5)(a)(III), (5.7), and (8); and add (2.7) and (3.5)(a)(IV) as follows:

34-32-103. Definitions - rules.

As used in this article 32, unless the context otherwise requires:

(2.7) (a) "CLASS III INJECTION WELL" MEANS A WELL AS CLASSIFIED IN 40 CFR 144.6 THAT IS USED TO INJECT FLUIDS AND EXTRACT MINERALS AND IS DRILLED PURSUANT TO AUTHORIZATION FOR A CLASS III INJECTION WELL ISSUED UNDER THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C. SEC. 300f ET SEQ., AND REGULATIONS UNDER THOSE SECTIONS, AS AMENDED.

(b) "CLASS III INJECTION WELL" DOES NOT INCLUDE A PRODUCTION WELL THAT BRINGS MINING FLUIDS TO THE SURFACE.

(3.5) (a) "Designated mining operation" means a mining operation at which: (II) Acid- or toxic-forming materials will be exposed or disturbed as a result of mining operations; or

(III) Uranium is developed or extracted, either by in situ leach mining or by conventional underground or open mining techniques. A uranium mining operation OTHER THAN IN SITU LEACH MINING may seek an exemption from designated mining operation status in accordance with section 34-32-112.5 (2); OR

(IV) A CLASS III INJECTION WELL IS OPERATED, WHICH OPERATION IS NOT ELIGIBLE FOR AN EXEMPTION FROM DESIGNATED MINING OPERATION STATUS IN ACCORDANCE WITH SECTION 34-32-112.5 (2).

(5.7) "In situ leach mining" means in situ mining for uranium through the in-place dissolution of mineral components of an ore deposit by causing a chemical leaching solution, usually aqueous, to penetrate or to be pumped down wells through the ore body and then removing the mineral-containing solution for development or extraction of the mineral values.

(8) "Mining operation" means the development or extraction of a mineral from its natural occurrences or within refuse on affected land.

"Mining operation" includes, but is not limited to, open mining, in situ mining, in situ leach mining, surface operations, OPERATIONS RELATED TO CLASS III INJECTION WELLS, and the disposal of refuse from underground mining, in situ mining, and in situ leach mining. "Mining operation" also includes the following operations on affected lands: Transportation, concentrating, milling, evaporation, removal of waste piles and refuse, and other processing. "Mining operation" does not include: The exploration and extraction of natural petroleum in a liquid or gaseous state by means of wells or pipe; the development or extraction of coal; the extraction of geothermal resources; smelting, refining, cleaning, preparation, transportation, and other off-site operations not conducted on affected land; or the extraction of construction material where there is no development or extraction of any mineral.

SECTION 7. In Colorado Revised Statutes, 34-32-107, add (3) as follows: 34-32-107. Powers of board - authority to regulate class III injection wells - misdemeanor - fees - rules.

(3) (a) (I) THE BOARD, AS TO CLASS III INJECTION WELLS, MAY PERFORM ALL ACTS FOR THE PURPOSES OF PROTECTING UNDERGROUND SOURCES OF DRINKING WATER IN ACCORDANCE WITH STATE PROGRAMS AUTHORIZED BY THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C.

SEC. 300f ET SEQ., AND REGULATIONS UNDER THOSE SECTIONS, AS AMENDED.

(II) THE BOARD MAY SEEK CLASS III INJECTION WELL PRIMACY UNDER THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C. SEC. 300f ET SEQ., AND REGULATIONS UNDER THOSE SECTIONS, AS AMENDED. THE BOARD MAY ADOPT RULES FOR THE PURPOSES OF ESTABLISHING AND OPERATING THE UNDERGROUND INJECTION CONTROL AUTHORIZATION AND PERMIT PROGRAM. THE RULES ADOPTED BY THE BOARD MUST MEET THE REQUIREMENTS PRESCRIBED BY 42 U.S.C. SEC. 300h (b), AS AMENDED.

THE BOARD SHALL SEEK TO ESTABLISH TIMELY AND EFFICIENT AUTHORIZATION AND PERMITTING PROCESSES. UPON RECEIVING PRIMACY, THE BOARD MAY ENFORCE RULES FOR THE PERMITTING, AUTHORIZATION, AND REGULATION OF CLASS III INJECTION WELLS IN ACCORDANCE WITH THIS SUBSECTION (3).

(III) THE BOARD MAY ADOPT RULES RELATED TO CLASS III INJECTION WELLS THAT ARE MORE STRINGENT THAN CORRESPONDING ENFORCEABLE TECHNICAL FEDERAL REQUIREMENTS ONLY IF IT IS DEMONSTRATED AT A PUBLIC HEARING, AND THE BOARD FINDS, THAT RULES REQUIREMENTS ARE NECESSARY TO PROTECT PUBLIC HEALTH, SAFETY, AND WELFARE; THE ENVIRONMENT; AND WILDLIFE RESOURCES. A FINDING PURSUANT TO THIS SUBSECTION (3)(a)(III) BY THE BOARD MUST BE ACCOMPANIED BY A STATEMENT OF BASIS AND PURPOSE REFERRING TO AND EVALUATING INFORMATION AND STUDIES RELATED TO PUBLIC HEALTH, SAFETY, AND WELFARE; THE ENVIRONMENT; AND WILDLIFE RESOURCES CONTAINED IN THE RECORD THAT FORMS THE BASIS FOR THE BOARD'S FINDING.

MORE STRINGENT THAN THE CORRESPONDING FEDERAL

(b) (I) A PERSON THAT WILLFULLY VIOLATES A CLASS III INJECTION WELL RULE, PERMIT, AUTHORIZATION, OR ORDER OF THE BOARD ISSUED PURSUANT TO THIS SUBSECTION (3) COMMITS A MISDEMEANOR AND, UPON CONVICTION BY A COURT OF COMPETENT JURISDICTION, IS SUBJECT TO A FINE OF AT LEAST FIVE THOUSAND DOLLARS AND NO MORE THAN SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR EACH ACT OF VIOLATION AND FOR EACH DAY THAT THE PERSON REMAINS IN VIOLATION.

(II) ANY ACTION UNDERTAKEN PURSUANT TO SUBSECTION (3)(b)(I) OF THIS SECTION MUST COMMENCE WITHIN FIVE YEARS AFTER THE DATE THAT THE BOARD DISCOVERS THE ALLEGED VIOLATION.

(c) (I) FOR THE PURPOSES OF IMPLEMENTING AND ADMINISTERING THIS SUBSECTION (3), THE BOARD MAY ASSESS AND COLLECT FEES, INCLUDING, BUT NOT LIMITED TO, PERMITTING AND REGULATORY FEES FOR CLASS III INJECTION WELLS, IN AN AMOUNT AND FREQUENCY DETERMINED BY THE BOARD BY RULE. THE BOARD SHALL SET THE FEES IN AN AMOUNT TO COVER THE BOARD'S DIRECT AND INDIRECT COSTS OF IMPLEMENTING AND ADMINISTERING THIS SUBSECTION (3).

(II) THE STATE TREASURER SHALL CREDIT THE FEES ASSESSED AND COLLECTED PURSUANT TO SUBSECTION (3)(c)(I) OF THIS SECTION TO THE MINED LAND RECLAMATION FUND CREATED IN SECTION 34-32-127 (1)(a).

(d) THE EXECUTIVE DIRECTOR SHALL PROPOSE, AS PART OF THE ANNUAL BUDGET REQUEST OF THE DEPARTMENT PURSUANT TO SECTION 2-3-208, INITIAL SPENDING AUTHORITY IN THE AMOUNT NECESSARY TO ENFORCE RULES FOR THE PERMITTING, AUTHORIZATION, AND REGULATION OF CLASS III INJECTION WELLS IN ACCORDANCE WITH THIS SUBSECTION (3).

THE OFFICE OF STATE PLANNING AND BUDGETING CREATED IN SECTION 24-37-102, IN CONJUNCTION WITH THE DEPARTMENT, SHALL INCLUDE IN THE ANNUAL BUDGET REQUEST SUBMITTED PURSUANT TO SECTION 2-3-208 A PROPOSAL TO ELIMINATE OR MINIMIZE THE IMPACT, FOR THE FIRST FISCAL YEAR IN WHICH FEE REVENUE WILL BE COLLECTED OR EXPENDED, OF THE MONEY IN THE MINED LAND RECLAMATION FUND CREATED IN

SECTION 34-32-127 (1)(a) ON THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 OF ARTICLE CONSTITUTION.

X OF THE STATE

SECTION 8. In Colorado Revised Statutes, 34-32-112.5, amend (2) as follows:

34-32-112.5. Designated mining operation - rules.

(2) If an operator demonstrates to the board at the time of applying for a permit or at a subsequent hearing that toxic or acidic chemicals are not stored or used on-site and that acid- or toxic-producing materials will not be used, stored, or disturbed in quantities sufficient to adversely affect any A person, any property, or the environment, UNLESS THE PERMIT IS FOR A CLASS III INJECTION WELL, the board shall exempt such operations whether conducted pursuant to section 34-32-110 or otherwise. The board may promulgate ADOPT rules governing the conduct of mining operations which THAT are exempted pursuant to this subsection (2).

SECTION 9. In Colorado Revised Statutes, 34-32-122, add (6) as follows: 34-32-122. Fees, civil penalties, and forfeitures - deposit emergency response cash fund - created - definition.

(6) AN OPERATOR THAT VIOLATES A CLASS III INJECTION WELL RULE, PERMIT, AUTHORIZATION, OR ORDER ISSUED BY THE BOARD PURSUANT TO SECTION 34-32-107 (3) IS SUBJECT TO A CIVIL PENALTY OF AT LEAST TWO THOUSAND FIVE HUNDRED DOLLARS PER DAY BUT NO MORE THAN FIVE THOUSAND DOLLARS PER DAY FOR EACH ACT OF VIOLATION PER DAY THAT THE VIOLATION CONTINUES.

SECTION 10. In Colorado Revised Statutes, 34-32-123, add (4) as follows:

34-32-123. Operating without a permit - penalty.

(4) NOTWITHSTANDING SUBSECTION (2) OF THIS SECTION AND UPON THE BOARD OBTAINING REGULATORY PRIMACY PURSUANT TO

SECTION 32-34-107 (3), AN OPERATOR THAT OPERATES A CLASS III INJECTION WELL WITHOUT A PERMIT ISSUED BY THE BOARD IS SUBJECT TO A CIVIL PENALTY AS DESCRIBED IN SECTION 34-32-122 (6).

SECTION 11. In Colorado Revised Statutes, 34-32-124, amend (7) as follows: 34-32-124. Failure to comply with conditions of order, permit, or regulation.

(7) Any A person who THAT violates any provision of any permit issued under this article shall be ARTICLE 32, OTHER THAN A CLASS III INJECTION WELL PERMIT, IS subject to a civil penalty of not less than one hundred dollars per day nor more than one thousand dollars per day for each day during which such violation occurs; except that any AN operator who THAT operates under a permit issued under section 34-32-110 shall be IS subject to a civil penalty of not less than fifty dollars nor more than two hundred dollars per day for each day during which such THE violation occurs.

SECTION 12. In Colorado Revised Statutes, 34-32-127, amend (2)(a) introductory portion and (2)(a)(IV) introductory portion; and add (2)(a)(I)(P) and (2)(a)(IV)(H) as follows:

34-32-127. Mined land reclamation fund - created - fees - fee adjustments - rules.

(2) (a) The office shall collect fees for STATE fiscal year 2014-15 and for each subsequent year of operation for operations according to the following schedule:

(I) Applications pursuant to:

(P) SECTION 34-32-107 (3) RELATING TO CLASS III INJECTION WELLS.

(IV) Annual fees for STATE fiscal year 2014-15 and for each subsequent year for operations pursuant to: (H) SECTION 34-32-107 (3) RELATING TO CLASS III INJECTION WELLS.

SECTION 13. In Colorado Revised Statutes, 16-5-401, amend (4.5)(z) and (4.5)(aa); and add (4.5)(bb) as follows:

16-5-401. Limitation for commencing criminal proceedings, civil infraction proceedings, and juvenile delinquency proceedings - definitions.

(4.5) The period within which a prosecution must be commenced begins to run upon discovery of the criminal act or the delinquent act for:

(z) Abuse of a corpse, pursuant to section 18-13-101; and

(aa) Criminal offenses relating to misuse of gametes, pursuant to section 18-13-131; AND

(bb) OFFENSES RELATED TO A WILLFUL VIOLATION OF RULES, PERMITS, AUTHORIZATIONS, OR ORDERS RELATED TO UNDERGROUND INJECTION WELLS ADOPTED BY THE ENERGY AND CARBON MANAGEMENT COMMISSION PURSUANT TO SECTION 34-60-106 (9) AND (23) OR ADOPTED BY THE MINED LAND RECLAMATION BOARD PURSUANT TO SECTION

SECTION 14. Appropriation. (1) For the 2026-27 state fiscal year, $213,867 is appropriated to the department of natural resources.

This appropriation is from the energy and carbon management cash fund created in section 34-60-122 (5)(a), C.R.S. To implement this act, the department may use this appropriation as follows:

(a) $172,326 for use by the energy and carbon management commission for program costs, which amount is based on an assumption that the commission will require an additional 1.3 FTE; and

(b) $41,541 for use by the executive director's office for the purchase of legal services.

(2) For the 2026-27 state fiscal year, $41,541 is appropriated to the department of law. This appropriation is from reappropriated funds received from the department of natural resources under subsection (1)(b) of this section and is based on an assumption that the department of law will require an additional 0.2 FTE. To implement this act, the department of law may use this appropriation to provide legal services for the department of natural resources.

SECTION 15.

Act subject to petition - effective date - applicability. (1) This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 12, 2026, if adjournment sine die is on May 13, 2026); except that, if a referendum petition is filed pursuant to section 1

(3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

(2) This act applies to conduct occurring on or after the applicable effective date of this act.