What are 1041 land-use regulations?

Responding to concerns that development and activities impact the state and its residents required more effective oversight and regulation, the Colorado Legislature enacted H.B.1041 in 1974 to encourage local governments, with state input and review, to designate and regulate "areas and activities of state interest." Not designed to prohibit activities, the law allows regulation and mitigation for specified types of activities and areas and related environmental impacts. The law gives local governments, such as counties and municipalities, some control over "matters of state interest" within their boundaries, provided such matters are not controlled through other means. Not all counties have adopted these regulations. For example, El Paso County doesn’t have 1041 regulations.

Why is Colorado Springs opposing Pueblo County’s 1041 authority?

Pueblo County revised its 1041 regulations while Colorado Springs was seeking clarification from the County on how it intended to apply them to SDS. Colorado Springs is concerned Pueblo County may have revised their 1041 regulations to prevent or delay SDS construction by attempting to exert control over the project and other aspects of Colorado Springs’ water operations that extend well beyond what is provided for in H.B. 1041. And we are concerned that Pueblo County’s 1041 regulations, if applied, may result in excessive costs to our customers. That said, we want to work with Pueblo County on a consultative and advisory basis to make reasonable accommodations for their concerns.

Why does Colorado Springs believe it is exempt from 1041 for the SDS project?

H.B. 1041 exempts activities and projects built and operated in accordance with local zoning rules from 1041 review, and also prohibits 1041 powers from being used to interfere with established water rights. Our proposed path for the SDS pipeline runs through a corridor which has long been zoned and used for utility facilities, including power lines, gas lines and water lines.

Why is Colorado Springs appealing the judge’s ruling in favor of Pueblo County?

We disagree with the ruling. Colorado Springs and Pueblo County agreed to limit court review to a narrow set of legal issues related to whether the “zoned land exemption” of 1041 exempted the SDS pipeline from County regulation. The judge issued a broader decision that went well beyond the issues presented to him pursuant to the stipulation. And the decision is vague and potentially has very serious ramifications with respect to certain key issues. We believe the decision may be understood as holding that Pueblo County has powers over the operation of Colorado Springs’ water system that go well beyond SDS and well beyond the provisions of H.B. 1041 or any other Colorado law. If understood in that way, the decision would have a serious negative impact on how Colorado Springs and other home rule cities in Colorado manage their water rights and serve their citizens and customers.

The judge said he views Pueblo County’s 1041 powers as very broad, – including the power to control the storage of water in Pueblo Reservoir. Pueblo Reservoir is a federal facility owned and operated by the U.S. Bureau of Reclamation, and was built and is maintained in large measure with fees paid by residents of Colorado Springs and El Paso County. The judge also said that he believes Pueblo County can use its 1041 powers to control treated return waters originating in El Paso County (outside Pueblo County). If allowed to stand, his ruling could make it challenging for home rule cities in Colorado to control the delivery of drinking water to their residents.

Why not work things out with Pueblo County instead of taking the issue to court?

We’ve attempted to discuss our concerns with the commissioners on numerous occasions. While these attempts have been generally unsuccessful, we will continue to pursue these efforts and would welcome more discussions. But we also believe the judge’s decision is vague and reaches far beyond the bounds of the law.

Will you build the pipeline in Pueblo County if you are forced to comply with 1041?
Perhaps. Fully reserving our rights and our position that a 1041 permit from Pueblo County is unnecessary, we plan to apply to the County for a 1041 permit.

Is Fremont County a viable option?

Building a pipeline through Fremont County would be more expensive and does not offer the same operating efficiencies as building a pipeline from Pueblo Dam to Colorado Springs – the shortest, most direct and most logical path for the pipeline. However, we consider Fremont County route a viable alternative and we are further exploring the option.