Earlier this year, Colorado’s Democratic lawmakers introduced two significant bills aimed at implementing a statewide ban on oil and gas wells, marking a potential first in the U.S. One bill seeks to halt new oil and gas drilling permits by ending new licenses by 2028. The second bill would require oil and gas companies to pause production for five months each year.
These proposals represent unprecedented restrictions on oil and gas operations and may inspire similar actions in other states. Environmentalists are urging lawmakers to end oil and gas production altogether, especially targeting fracking, a common technique in Colorado. In 2019, Oregon and Washington enacted fracking bans, and climate activists are now advocating for the same in Colorado. However, passing such laws is challenging. States like New Mexico, which also have Democratic majorities, have struggled to modify oil and gas regulations in recent years.
Colorado is a key player in the oil and gas sector, experiencing a sharp increase in crude production over the past decades. From nearly 2.7 million barrels per day (bpd) in 2010, output rose to almost 13.5 million bpd in June of this year. Colorado ranks as the fourth-largest oil-producing state in the U.S., contributing about 4 percent of the nation’s total crude oil output. Innovations in horizontal drilling and hydraulic fracturing have fueled this growth.
In 2019, Colorado passed new regulations that granted local governments more authority to oversee the expansion of the oil and gas industry. The law required the Colorado Energy & Carbon Management Commission (ECMC) to collaborate with the Colorado Department of Public Health and Environment to assess the cumulative impacts of oil and gas development. These changes came in response to increasing public concern over the industry’s expansion into urban areas, which has led to declining air quality and health problems. However, in August, lawmakers criticized state regulators for diluting the oversight rules, making 17 revisions to the original draft. Twenty-four legislators sent a letter to the ECMC stating, “The current draft deviates significantly from the intent of the laws we worked to pass, jeopardizing the protection of disproportionately impacted communities and allowing operators broad leeway to exceed pollution thresholds.” Representative Elizabeth Velasco added, “The agency has prioritized industry over public health and safety.”
Other states are also responding to public calls for more sustainable energy practices. In New York, lawmakers are considering a ban on using carbon dioxide for oil and gas recovery. California passed a law in 2022 that prohibits drilling for oil and gas within 3,200 feet of certain structures, like homes and schools, which has reduced the number of new well licenses, although the law has yet to take effect.
Vermont is taking a leading role in oil and gas legislation, having banned fracking in 2012. This year, the state aims to introduce a new measure requiring oil and gas companies to compensate for damages linked to the climate crisis. This aligns with the Environmental Protection Agency’s Superfund program, which mandates companies to pay for toxic waste cleanup. If enacted, the new measure could cost oil and gas firms operating in Vermont billions for their historical emissions.
Elena Mihaly, vice president of the Conservation Law Foundation’s Vermont chapter, stated, “If you contributed to a mess, you should play a role in cleaning it up.” However, passing this bill may be a lengthy process, likely to face legal challenges. If successful, it could serve as a model for other states.
Across the U.S., many lawmakers are responding to public demand by introducing ambitious regulations on the oil and gas industry. This aligns with the Biden administration’s Inflation Reduction Act and other national policies aimed at fostering a green transition. Despite broad support for such measures, enacting comprehensive state climate laws remains a formidable challenge that may take years and provoke strong opposition from the industry.
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