SB137 would expand Colorado’s greenhouse gas credit trading framework to include certain water quality green infrastructure projects. Under the bill, an owner or operator of a qualifying project could sell or trade greenhouse gas credits generated by the project in the Air Quality Control Commission’s trading program. The bill defines these projects as pilot projects under existing water quality law that use green infrastructure to improve the quality of water used by a water quality treatment facility.
To participate, the project owner or operator would have to hire an independent third-party auditor to certify the credits created by the project. The bill also directs the Air Quality Control Commission to adopt rules authorizing the sale, trading, and purchase of these credits, and requires the Department of Public Health and Environment’s division of administration to monitor sales and transfers. The bill further updates statutory definitions and accounting requirements so that water quality green infrastructure projects are included in the state’s greenhouse gas tracking and compliance systems.
Impact
The bill would amend Colorado’s air quality statutes, specifically the provisions governing the Air Quality Control Commission’s rulemaking authority and greenhouse gas credit trading program. It would broaden the definition of a GHG credit and trading program to expressly include credits generated by water quality green infrastructure projects, and it would require the state’s centralized emissions accounting system to track these projects alongside regulated sources. In practical terms, the bill would create a pathway for certain water infrastructure pilot projects to monetize emissions reductions and allow regulated entities to use those credits toward greenhouse gas compliance obligations.
Sentiment
The available voting history suggests the bill did not advance out of the Senate Transportation & Energy Committee, where it was postponed indefinitely on a 9-0 vote. There are no committee transcript excerpts provided, so the record here shows unanimous committee action but no recorded debate in the supplied materials. Overall, the bill appears to have had procedural support for consideration but no support for moving forward in committee.
Contention
The main policy issue is whether water quality green infrastructure projects should be allowed to generate and trade greenhouse gas credits within Colorado’s compliance market. Supporters would likely view the bill as encouraging innovative environmental projects and creating an additional funding stream for water quality improvements. Potential concerns include the integrity and verification of credits, the role of nongovernmental registries and third-party auditors, and whether expanding the trading program could complicate oversight or dilute emissions-reduction goals. The unanimous committee vote to postpone indefinitely indicates that, at least at that stage, members were not prepared to advance the proposal.