Tell Lawmakers to OPPOSE HB 1294

A broad new proposal introduced in the state legislature late last week would have far-reaching consequences for the state’s economy. While the intent is to improve air quality, in reality, the bill would have little impact on ambient ozone reduction while instead creating new complexities in Colorado’s regulatory framework that go far beyond just energy production.

While much of the attention surrounding HB 1294 has been on its detrimental impact on the energy industry and its potential to effectively cease all new oil and gas development, the Colorado Chamber has additional concerns from the perspective of the broader business community.

First, the new permitting requirements laid out in the bill would apply to a wide range of industries that are considered “indirect” sources of pollution. This could include businesses like dry cleaners, bakeries, warehouses, railyards, distribution centers, and more – requiring hundreds of companies to comply with costly and complicated new permitting processes in order to operate.

In addition, the bill attempts to revive a wildly unpopular regulatory proposal that failed two years ago after major backlash from both workers and employers. The 2021 Employee Trip Reduction Plan (ETRP) was an initiative aimed at reducing emissions by dictating how Coloradans commute to work. It created mandates surrounding the use of personal vehicles and required businesses to limit employee choices in how they get to their workplace or job site. The Colorado Chamber led a powerful business coalition against the proposed plan and it ultimately was defeated.

HB 1294 sets the stage for another regulatory battle over Coloradans’ personal driving choices by directing the state’s air quality control division to pass a new “vehicle miles traveled reduction rule.” This provision of the bill ignores the fact that the General Assembly already addressed this issue in statute last year by creating an alternative transportation tax credit for businesses. This incentive-based approach gives businesses and employees the flexibility to reduce vehicle usage in a way that makes sense for their unique circumstances.

While HB 1294 creates these new mandates and regulatory burdens on Colorado businesses and workers, it has little to show for it in terms of air quality improvements. The bill provides no evidence of any meaningful reduction in ambient ozone levels – all at the expense of Colorado’s economic standing and competitiveness.

HB 1294 is scheduled for its first hearing in the House Energy and Environment Committee this Thursday. Please join the Colorado Chamber in asking members of the committee to OPPOSE this bill. You can do so using the grassroots tool below: