Thought Leaders: New Water Conservation Laws and Construction Projects

In the 2024 Legislative Session, the Colorado General Assembly passed two new laws affecting construction projects:

Protection of Wetlands and Streams: “Dredge and fill activities” occur when a party is digging, grading, or placing dirt or fill material into wetlands or surface waters during construction projects. Prior to 2023, the Clean Water Act implemented by the Environmental Protection Agency (EPA) protected Colorado’s wetlands and waters from dredge and fill activities. In 2023, however, the U.S. Supreme Court issued a ruling limiting the EPA’s authority to regulate wetlands and streams thereby ending federal permitting requirements applicable to construction in many wetlands and waters. In 2024, Colorado responded to the change in federal law by passing legislation intended to restore protections to wetlands and streams resulting from dredge and fill activities. In short, the new law:

• Requires the Colorado Water Quality Control Commission (CWQCC) to promulgate rules by December 31, 2025 implementing a state dredge and fill discharge authorization program; Tasks the Colorado Department of Public Health and Environment’s Division of Administration with implementing and enforcing the program subject to detailed statutory requirements and guidance; and
• Sets up an interim plan for dredge and fill activities until the CWQCC issues its new rules.
• Businesses and individuals intending to conduct dredge and fill operations in wetlands or waters must comply with the new law which became effective on May 29, 2024.

Graywater Use Authorized and Encouraged: “Graywater” is wastewater from sinks, baths, showers, washing machines, and other household appliances which is no longer safe to drink, but is clean enough to reuse in toilets and as irrigation water. The new law, which takes effect on January 1, 2026, authorizes and encourages water conservation through the installation of graywater treatment systems in new construction projects unless such use is expressly prohibited by a local government.

Landowners, developers, and construction professionals with questions about the impact of these new laws are encouraged to contact Geoffrey Williamson and Megan Christensen.

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