(1) (a) As used in this section, unless the context otherwise requires: (I) "Beneficial use" has the meaning set forth in section 37-92-103 (4). (II) "Department" means the department of natural resources. (III) "Executive director" means the executive director of the department. (IV) "Governing body" means the governing body of the consortium appointed pursuant to subsection (3)(a) of this section to appoint members of the consortium. (V) "Local government" means a statutory or home rule city, city and county, or county. (VI) "Nontributary groundwater" has the meaning set forth in section 37-90-103 (10.5). (VII) "State institution of higher education" has the meaning set forth in section 23-18- 102 (10). (VIII) "Water right" has the meaning set forth in section 37-92-103 (12). (b) Definitions in section 34-60-134 (1) apply to terms as they are used in this section. (2) (a) There is created in the department the Colorado produced water consortium to make recommendations that are protective of public health, safety, and welfare; the environment; and wildlife with regard to: (I) An informed path for the recycling and reuse of produced water within, and potentially outside of, oil and gas operations in the state; and (II) Measures to address barriers associated with the utilization of produced water. (b) The consortium has no role within the exterior boundaries of an Indian reservation located within the state. (c) The primary goal of the consortium is to help reduce the consumption of fresh water within oil and gas operations. The consortium shall bring together the following groups to collaborate on working toward that goal: (I) State and federal agencies; (II) Research institutions; (III) State institutions of higher education; (IV) Affected and interested nongovernmental organizations; (V) Local governments; (VI) Affected industries; (VII) Environmental justice organizations; (VIII) Disproportionately impacted community members; and (IX) Other interested parties. (3) (a) (I) Except as provided in subsection (3)(a)(IV) of this section, a governing body of the consortium shall make appointments to the consortium in accordance with this subsection (3). The members of the governing body also serve as members of the consortium. (II) The executive director or the executive director's designee shall appoint the following three individuals to serve as the governing body and members of the consortium: (A) One representative of the commission; (B) One representative of the division of water resources in the department; and (C) One representative from the Colorado department of public health and environment. (III) The governing body shall appoint the following twenty-two members of the consortium: (A) Four representatives from a state or federal agency, other than a commissioner of the commission, associated with the regulation of produced water, including at least one member from the Colorado department of public health and environment. A staff person for the commission may be appointed pursuant to this subsection (3)(a)(III)(A). (B) Four representatives from research institutions or state institutions of higher education with experience in produced water; (C) Four representatives from environmental nongovernmental organizations that engage in work and advocate for policies related to produced water; (D) Four representatives from the oil and gas industry, with one member appointed from each of the following basins: The Denver-Julesburg oil and gas basin; the Piceance oil and gas basin; the San Juan oil and gas basin; and the Raton oil and gas basin; (E) Two representatives who serve on a governing body of a local government, who shall be appointed with consideration of the need for geographic representation of areas of the state that have current or anticipated recycled or reused produced water; and (F) Four representatives with expertise and experience in produced water. (IV) The president of the senate and the speaker of the house of representatives shall appoint six members of the consortium as follows: (A) Three members, each from a nongovernmental organization in the state that works on and advocates for policies related to environmental justice and conservation, two of whom are appointed by the president of the senate and one of whom is appointed by the speaker of the house of representatives; and (B) Three members, each of whom must be from a nongovernmental organization in the state that works with and advocates for disproportionately impacted communities and communities of color or must reside in a disproportionately impacted community, one of whom is appointed by the president of the senate and two of whom are appointed by the speaker of the house of representatives. (b) Any vacancy in membership of the consortium shall be filled as soon as practicable in accordance with the appointment process set forth in subsection (3)(a)(III) or (3)(a)(IV) of this section. (c) The governing body shall call the first meeting of the consortium, at which meeting the members of the consortium shall elect a member to serve as chair of the consortium. The chair of the consortium serves for two years, and the members of the consortium elect a new chair as needed. (d) (I) Members shall be reimbursed for actual and necessary expenses incurred while performing official duties, together with mileage, at the rate at which members of the general assembly are reimbursed pursuant to section 2-2-317. All consortium members are entitled to receive fifty dollars for each meeting attended during the 2023-24 state fiscal year; except that members who are appointed under subsection (3)(a)(IV)(B) of this section and reside in a disproportionately impacted community are eligible to receive an additional one hundred fifty dollars for each meeting attended during the 2023-24 state fiscal year. (II) A member of the consortium who, as part of the member's typically assigned, regular job duties, receives professional compensation for the member's participation in a consortium meeting is not eligible for the additional per diem for representatives of a disproportionately impacted community pursuant to subsection (3)(d)(I) of this section. (III) The director of the consortium hired pursuant to subsection (3)(e) of this section shall annually adjust the per diem amounts set forth in subsection (3)(d)(I) of this section based on the annual percentage change in the United States department of labor's bureau of labor statistics consumer price index for Denver-Aurora-Lakewood for all items paid by all urban consumers, or its successor index. (IV) The director of the consortium shall determine the form and manner by which a consortium member may request expense reimbursement, mileage reimbursement, or a per diem allowance. (e) The executive director shall hire a director and a director of research to assist the consortium as follows: (I) The director of the consortium shall provide administrative support; coordinate meetings and membership; write grants; prepare the consortium budget; contract for analyses and studies; and interact with and report to agencies and the general assembly regarding policies, rule-making proceedings, and legislation regarding reuse, recycling, and beneficial use of produced water; (II) The director of research for the consortium shall manage academic analyses, research, pilot projects, and case studies for the consortium. (4) The consortium shall: (a) Provide recommendations to state agencies and the general assembly as follows: (I) On or before May 1, 2024, how state and federal agencies can better coordinate regulatory policies related to produced water; (II) On or before September 1, 2024, topics related to produced water; (III) On or before November 1, 2024, any legislation or agency rules needed to remove barriers to the safe recycling and reuse of produced water in the state, taking into consideration: (A) Environmental justice issues; (B) Any legal issues that may affect the recycling and reuse of produced water; (C) Testing standards and procedures for treatment of produced water for both conventional and nonconventional oil and gas exploration and development; (D) Research gaps associated with the treatment of produced water, including gaps in addressing emissions from produced water treatment and storage and any other deficiencies in the treatment of produced water; (E) Water sharing agreements; and (F) Infrastructure and storage for produced water reuse and recycling, specifically addressing new or existing pits; (IV) On or before December 1, 2024, short- and long-term produced water reuse and recycling goals for the state and contemporaneous decreases in fresh water use; (b) Participate in relevant state agency rule-making proceedings regarding produced water; except that the consortium shall not participate as a party in any rule-making proceeding; (c) On or before March 1, 2024, develop guidance documents and case studies to promote best practices for in-field recycling and reuse of produced water throughout the state; (d) On or before July 1, 2024, based on data reported under section 34-60-134, analyze and report on current produced water infrastructure, storage, and treatment facilities within the different oil and gas production basins in the state, with specific emphasis on opportunities within the Denver-Julesburg oil and gas production basin; (e) On or before August 1, 2024, analyze and report on the volume of produced water produced in the different oil and gas production basins available for reuse and recycling in comparison to the total volume of water necessary for completion activities in new oil and gas operations; (f) On or before September 1, 2024, analyze and report on the infrastructure, storage, and technology necessary to achieve different levels of recycling and reuse of produced water in oil and gas production basins throughout the state, with specific emphasis on opportunities within the Denver-Julesburg oil and gas production basin; (g) On or before July 1, 2025, evaluate analytical and toxicological methods employed during produced water treatment and assess tools used to evaluate produced water and its potential for use outside the oil field; and (h) On or before April 1, 2024, in the 2024 legislative session and annually thereafter, and notwithstanding section 24-1-136 (11)(a)(I), through the director of the consortium, update the house of representatives energy and environment committee and the senate transportation and energy committee, or their successor committees, on the consortium's work pursuant to this section. (5) (a) On or before July 1, 2023, the governing body and membership of the consortium shall be appointed pursuant to subsection (3) of this section. (b) The consortium shall meet on a monthly basis during the consortium's first year and on a quarterly basis in subsequent years, or more often if needed as determined by the chair of the consortium. (6) (a) Reports and analyses that the consortium provides to both state agencies and the general assembly must be inclusive of all of the opinions of members of the consortium on the reported topics. (b) Notwithstanding section 24-1-136 (11)(a)(I), the executive director or the executive director's designee shall include in the annual "SMART Act" departmental presentation, made to a joint committee of the general assembly, pursuant to section 2-7-203 (2) a summary of the consortium's work, including the consortium's recommendations made to the commission and reports prepared pursuant to this section. (7) This section is repealed, effective September 1, 2030. Before the repeal, this section is scheduled for review in accordance with section 24-34-104.
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