SB24-230 Summary

• Imposes two production fees on all oil and gas produced in Colorado beginning July 1, 2025: a Production Fee for Clean Transit and a Production Fee for Wildlife and Land Remediation, with rates varying based on commodity spot prices.

• Production Fee for Clean Transit funds transit operations, service expansion, and rail projects through three cash funds (70% local transit operations, 10% local transit grants, 20% rail funding) managed by the Clean Transit Enterprise.

• Production Fee for Wildlife and Land Remediation funds conservation and restoration activities including creating state parks and wildlife areas, protecting habitats, improving ecosystem resilience, and conducting research on climate and oil/gas impacts.

• Both fees are structured as enterprise fees (not taxes) with quarterly assessments by producers, collection by the Department of Revenue, and rate adjustments based on Energy and Carbon Management Commission guidance and market conditions.

• Fee revenue collection is capped at $100 million in the enterprise's first five fiscal years (through June 30, 2026), and the bill includes provisions contingent on passage of a 2024 constitutional amendment defining "fee" for TABOR purposes.