STATE OF COLORADO 


EXECUTIVE CHAMBERS 

136 State Capitol 


Denver, Colorado 80203-1792 


Phone (303) 866-2471 


June 20, 2003 Bill Owens 

Governor 

Robert Roberts 


Regional Administrator 


liS EPA Region VIII 


t)<)<) I XIII Street. SUite 500 


Denver. ('Olorlldo X0202 


Dear Mr. Robcl1s: 

The following actions are submitted to EPA for final approval and incorporation into the Colorado State 

Implementation Plan, Two copies of the materials needed for your review of each action are included 

with this letter. 

, Rl.'gulatlon Numhc-r 11: Motor Vehicle Emissions Inspection Program, regarding tbe use orvalid remote 

sensing readings 

, Regulation Number 11: Motor Vehicle EmiSSIOns Inspection Program, regarding Clean Screen program tce 

colle<:llol1s 

, Regulation Numher 3: Air Contammant Emission Notices, regarding public comment permit bearings 

:,.. COlnnl0n Provisions Regulation and Regulation Number 3: Air C:ontan1inant Emission 1'\otlces. regarding a 

comprehensive review of the rules to make updates 

, Regulation Number II: Motor Vehicle Emissions Inspection Program, regarding the Clean Screen Program 

pay-upon-registration system for Larimer and Weld Counties 

, Reglilution Numher 3: Air Contaminant Emission Notices, regarding crude oil and condensate storage 

tanks and trlll.:k loading equipment 

, Regulation Number I I: Vlotor Vehicle Emissions Inspeetion Program, regarding the Ckan Screen Prognlill 

puy-upon-registfallon system for the Denver metropolitan area 

, Regulation Numher II: MOlor Vehicle Emissions Inspection Program, regurding the vehicle emission 

w,lIvn limit 

Greeley Carbon MonOXide Attainment/Maintenance Plan, regarding the repeal ofunncCl'ssary 

emiSSion control stratq!les. 

We: look forward to your timely review and approval of this request. Any additional technical sLlpport 

documentation or information that you may need for review may be submItted directly to thc I:P.I\ hy the 

Office of the Colorado Air Quality Control Commission, Should there be any questions regardIng Ihese 

materials, please contact Mr. Doug Lempke at the Commtssion Office at 303-692-3478, Thank YOLl. 

\ '. 

Bill Owens 

JUN ? 6 

('c: without lllta<:hmcnts 

Doug BencVl'nto, Executivc Director 


Howard Roilman, COPI IE. Environmental Programs DIrector 


Doug Lempke, Air Quality Control CommissIon Administrator 

STATE OF COLORADO 


Bill Owens, Governor 


Douglas H. Benevento, Executive Director 


, 	 .Dedicated to protecting and improving the health and environment of the people ofColorado 

'--"	4300 Cherry Creek Dr. S. laboratory and Radiation Services Division 

Denver, Colorado 80246-1 S30 8100 lowry Blvd. 

Phone (303) 692-2000 Denver, Colorado 80230-6928 

TOO line (303) 691-7700 (303) 692-3090 Colorado Deparbnent located in Glendale, Colorado ofPublic Health 

http://www.cdphe.state.co.us and Environment 

'1 6¥ 


June 3, 200/? 


The Honorable Bill Owens 


Governor, State of Colorado 


136 State Capitol 


Denver, Colorado 80203 


Dear Governor Owens: 

The Air Quality Control Commission respectfully requests that the following Commission 

actions be submitted to the EPA through your office for final approval, and inclusion in the 

Colorado State Implementation Plan (SIP). The Commission submits nine actions for revision to 

the SIP as identified below. 

1. 	 Regulation Number 11: Motor Vehicle Emissions Inspection Program 

On November 16, 2000, the Commission considered and adopted a proposal to revise the 

regulation to increase the amount oftime allowed between valid remote sensing readings 

from 90 days to 120 days. The proposal adopted by the Commission also revised the 

statutory citation referencing the licensing requirements for clean screen inspectors. 

2. 	 Regulation Number 11: Motor Vehicle Emissions Inspection Program 

On December 20,2001, the Commission considered and adopted a proposal to revise the 

regulation to establish the Clean Screen Authority provided for by the General Assembly in 

2001 House Bill 1402. The rule revisions expanded the clean screen program to include the 

enhanced vehicle emissions inspection program area, essentially the Denver metropolitan 

area, into the program. The proposal adopted by the Commission also excluded the EI Paso 

County program area from in the clean screen program and repealed the requirement to have 

a windshield sticker displayed on the vehicle to signify that a vehicle had passed the 

emissions test. 

3. 	 Regulation Number 3: Air Contaminant Emission Notices 

On February 21, 2002, the Commission considered and adopted a proposal to revise the 

regulation to clarify the process for public comment hearings on construction permits and 
The Honorable Bill Owens Air Quality Control Commission 

Governor SIP Submission Letter 

June 3, 2003 Page 2 of6 

operating pennits held before the Conunission. The Conunission clarified that there is an 

opportunity for adjudication once the pennit is issued. The Conunission also adopted a 

proposal to allow the Division to effectuate public notice for pennit applications and the Air 

Pollution Control Division's preliminary analysis by posting such documents on the 

Division's internet site and by publication ofnotice in a newspaper of statewide distribution. 

4. 	 Common Provisions Regulation and 

Regulation Number 3: Air Contaminant Emission Notices 

On July 18, 2002, the Conunission considered and adopted proposals to revise the 

regulations as a part of a comprehensive review of the two regulations. The Conunission 

adopted revisions to the regulations to 1) delete outdated and duplicative provisions, 2) 

ensure the stylistic, grammatical, and fonnatting consistency ofthe document, 3) clarify 

ambiguous provisions in several definitions and other requirements throughout the 

regulation, 4) delete some existing requirements, and 5) to add some exemptions from the 

requirements ofthe regulation. The Conunission also modified some provisions, such as the 

agricultural exemption, to more closely reflect statutory provisions. 

5. 	 Regulation Number 11: Motor Vehicle Emissions Testing Program 

On August 15,2002, the Conunission considered and adopted a proposal to revise the 

regulation to implement the pay-upon-registration system for the Larimer and Weld 

Counties' clean screen program. The Conunission also adopted a proposal to change the 

timing requirements for remote sensing readings from two remote. sensing readings within 

one year ofthe registration renewal date with one ofthe two being required within 120 days 

ofthe registration date to simply requiring two remote sensing readings within the one-year 

time period. The Conunission action on this rule also revised provisions to reflect statutory 

changes made in 2001 House Bill 1402. 

6. 	 Regulation Number 3: Air Contaminant Emission Notices 

On October 17,2002, the Conunission considered and adopted revisions to the regulation 

regarding the exemptions for crude oil and condensate storage tanks and for crude oil and 

condensate truck loading equipment. The 1993 adoption did not consider the substantial 

amount of emissions from the operations due to depressurization of the liquids when added to 

the tanks or the volatilization ofhydrocarbons during tank filling. The Commission adopted 

provisions that would require these facilities to begin meeting the same requirements as other 

sources with similar amount of emissions. The Conunission provided a phase-in period for 

the initial collection ofthis infonnation. 

7. 	 Regulation Number 11: Motor Vehicle Emissions Inspection Program 

On October 17,2002, the Conunission considered and adopted a proposal to revise the 

regulation to initiate the pay-upon-registration system for the clean screen program in the 

Denver metropolitan area and to repeal the requirement for a vehicle to fail the emission test 

ifthe malfunction indicator or check engine light is illuminated. 
The Honorable Bill Owens Air Quality Control Commission 

Governor SIP Submission Letter 

June 3, 2003 Page 30f6 

8. 	 Regulation Number 11: Motor Vehicle Emissions Inspection Program 

On November 21, 2002, the Commission considered and adopted a proposal to revise the 

monetary amount ofthe vehicle emissions repair waiver limit. The Commission adopted a 

proposal to require the Air Pollution Control Division to adjust the emissions repair waiver 

limit by the consumer price index for the next two years and then to return to the 

Commission for further review ofthis requirement. The Commission also extended the 

effective date ofthe repeal ofthe pass/fail criteria for the malfunction indicator light to April 

of 2003 to allow time for the development of computer programming software. 

9. 	 Greeley Carbon Monoxide AttainmentlMaintenance Plan Revisions: 

On December 19,2002, the Commission considered and adopted a proposal from the Air 

Pollution Control Division to reduce the requirements that would be necessary to 

demonstrate long-tenn compliance with the national air quality standard for carbon 

monoxide in the Greeley area. The Commission made revisions to the Motor Vehicle 

Emissions Inspection Program, the Oxygenated Fuels Program, and the Ambient Air Quality 

Standards Regulation. The Commission adopted a proposal to remove the vehicle emissions 

inspection program from the State Implementation Plan as of December 31, 2003. The 

proposal adopted by the Commission repealed the implementation of the oxygenated fuels 

program in the Greeley area. The proposal also modified the air quality emissions budgets 

for transportation planning based on the most recent infonnation available. 

If these actions meet with your approval, two copies of each action are required to be submitted 

to EPA for their review and consideration. Attached is a suggested draft letter that would 

accompany the submission of these materials to EPA, along with the two requisite copies ofthe 

materials for EPA's review and a file copy for you. Also attached is a preaddressed envelope for 

your use in transmitting these materials to EPA. 

The Colorado General Assembly has approved these SIP revisions for submission to EPA 

pursuant to §25-7-133, C.R.S. Should you have any questions on the above referenced actions or 

if additional infonnation is needed, please contact me at 303-692-3478. 

Sincerely, 

Administrator 

Attachments: 	 suggested draft transmittal letter to EPA 

three copies of administrative materials for each action 

pre addressed envelope to EPA 
The Honorable Bill Owens Air Quality Control Commission 

Governor SIP Submission Letter 

June 3, 2003 Page 4 of6 

CC: 	 without attachments 

Doug Benevento, CDPHE, Executive Director 

Cynthia Honssinger, CDPHE, Deputy Executive Director 

Howard Roitman, CDPHE, Director ofEnvirorunental Programs 

Britt Weygandt, Governor's Office ofLegal Counsel 

John Swartout, Governor's Office of Policy 

Mark Komp, Region VIII, EPA 
':c;)f:J1__Pfli_i;;Spc:citic statutory Authority and Purpose for each ~ 

,~fi;r~otthoAttomrot·Gcneral f«each reauJation ,~;~~t'::J"_;~:-;""~~:~:'~: ,';,;-:" t,,'" '., -. ' .' -, '- - 'j '.

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I 

1 STATE OF COLORADO 

I Bill Oweu. Govcroor 


Jane E. Norton. EXCl.:lItive Director 


~­

:~ COLORADOAJRQUAUITYCONTROLCO~~ON I, bltp-J/www.~te.co.lIS 

1 

1 

4300 Cherry Creet Drive South 

OED-OUtA·AS 

DeDver. Colorado 80246·1530 

Phone (303) 692·3100 

Fax (303) 691·7702 

TDD (303) 69}·7700 

Colorado Departmeot 


ofPubUc Healtli 


and EuviroDmeJlt 


NOTICE OF PUBLIC RULEMAKING HEARING 

BEFORE THE 

COLORADO AIR QUALITY CONTROL COMMISSION 

Regarding proposed revisions to: 


Regulation Number 3, 


AIR POLLUTION EMISSION NOTICE EXEMPTIONS 


SUBJECT: 

The Air Quality Control Commission will hold a public rulemaking hearing to consider a 

proposal to revise Regulation Number 3 requirements for crude oil storage tank APEN 

exemptions, condensate storage tank APEN exemptions, and crude oil and condensate truck 

loading operations. The Commission will also consider as a part ofthe proposal, suggested 

revisions to modify the language ofthe regulation at Part A, Section II.D.4, regarding the 

exemption from the ability ofa source to take advantage of listed APEN exemptions. 

FEDERAL REQUIREMENTS: 

The federal act does not require the Commission to make any ofthe rule revisions that 

are the subject ofthis Notice ofPublic Rulemaking Hearing. Although these revisions are not 

required by the federal act, they are not more stringent than the requirements ofthe federal act. 

HEARING SCHEDULE: 

DATE: October 17, 2002 

TIME: 9:00 A.M. 

PLACE Colorado Department ofPublic Health & Environment 

Sabin Room 

4300 Cheny Creek Drive South 

Denver, CO 

ECEIVED -92!AM 


JUL 24 2002 

~LE.C.'TIONS/LICENS!NG@PT

~l::TA pv ..... '- " .....·1,-,·-" , . _ . <l, ; , U!'"" ,,~, .. . 
PUBUC COMMENT: 

The Co~ssion encourages all interested persons to provide their views either orally at 

the hearing or in writing prior to or at the hearing. The Commission especially solicits 

comments and analyses from persons who will incur directly some cost or benefit from the 

proposed revisions. Public testimony will be taken as close to the start ofthe hearing as possible 

and during the hearing as necessary. Written submissions prior to the hearing are requested to 

allow review prior to presentation at the hearing. Written submission should be mailed to the 

Commission Office at least 14 days prior to the hearing. 

PARTY STATUS: 

In order to obtain party status at the hearing compliance with several requirements as 

defined in the Commission's Procedural Rules is necessary. An original and three (3) copies of a 

written petition for party status must be filed with the Office ofthe Air Quality Control 

Commission no later than 5:00 p.m. August 14, 2002. The petition must: 1) identify the 

applicant; 2) provide the name, address, and telephone and facsimile numbers ofthe applicants 

representative; and 3) briefly summarize what, ifany, policy, factual, and legal issues the 

applicant has with the proposal(s) as ofthe time offiling the application. Copies ofthe petition 

for party status must also be received, by this same date, by the Division staffperson and the 

Assistant Attorneys General representing the Division and the Commission identified below. 

Individuals may also obtain party status through the submittal of an initial alternative rule to the 

proposed rule. The submittal ofan alternative proposal must be accompanied by twenty (20) 

copies ofthe initial alternative proposed rule and all other associated documents by the date 

specified for party status requests. Initial alternative rules must also be filed with the Division 

staffperson and with the Assistant Attorneys General. 

Air Quality Control Commission Air Pollution Control Division 

Marla Biberstine-A5 Kirsten King 

4300 Cherry Creek Dr. S. APCD-B1 

Denver, CO 80246 4300 Cherry Creek Dr. S. 

Denver, CO 80246 

Casey Shpall Tony Trombly 

Attorney for the Commission Attorney for the Division 

Attorney General's Office Attorney General's Office 

1525 Sherman St., 5th Floor 1525 Sherman St., 5th Floor 

Denver, CO 80203 Denver, CO 80203 

Requests received beyond the above stated deadline shall only be considered upon a written 

motion for good cause shown. The Commission reserves the right to deny party status to anyone 

that does not comply with the Commissions procedural rules. A copy ofthe Commission's 

Procedural Rules can be obtained by contacting the office ofthe Commission at (303) 692-3476. 
STATUS CONFERENCE: 

A status conference will be held August 21, 2002, at 1:00 pm with Commissioner Doug 

Blewitt as prehearing officer to ascertain and discuss the issues involved, and to ensure that 

parties are making all necessary efforts to discuss and resolve such issues prior to the submission 

ofprehearing statements. Attendance at this status conference is mandatory for anyone who has 

requested party status. 

PREHEARING CONFERENCEIPREHEARING STATEMENS: 

Attendance at the prehearing conference is also mandatory for all parties to this hearing. 

A prehearing conference will be held with Commissioner Blewitt as prehearing officer on 

September 20, at 1 :00 pm in the Commission Offices at 4300 Cherry Creek Drive Sou~ 

Denver. All parties must submit an original and twenty (20) copies of a prehearing statement to 

the Commission Office by 5:00 p.m., September 13, 2002. In addition, copies ofthese 

documents must be mailed or hand-delivered by that date to all persons who have requested 

party status. A copy ofthe prehearing statement must also be delivered to the Division point of 

contact, and the Assistant Attorneys General identified above by 5:00 p.m. September 13, 2002. 

The Division point ofcontact for this rulemaking hearing is Phyllis Woodford. Any revisions to 

the prehearing statement must be submitted with an original and twenty (20) copies to the 

Administrator ofthe Commission at the prehearing conference. Any exhibit included in the 

prehearing statemens will be mailed to individual Commissioners for review prior to the hearing, 

provided the party files twenty (20) copies ofsuch exhibit. Rebuttals to the prehearing statement 

may be submitted to the Commission office and all other Parties by 5:00 p.m., September 25, 

2002. 

STATUTORY AUTHORITY FOR THE COMMISSION'S ACTIONS: 

The rule-making authority ofthe Commission can be found in sections 25-7-105, 106, 

107, and 109 C.R.S., as amended. The rulemaking hearing will be conducted in accord with 

sections 24-4-103 and 25-7-110, C.R.S., as ameded, the Procedural Rules ofthe Commission and 

as otherwise stated in this notice. This list ofstatutory authority is not intended as an exhaustive 

list ofthe Commission's statutory authority to act in this matter. 

Dated this 19th day ofJuly, 2002 at Denver, Colorado 

ss)on 
4: ," 

Revisions to Part A 

ll.D.1.ee. Crude oil er eeBdensate loading truck equipment at crude oil production sites 

where the loadlng rate does not exceed 10,000 gallons per day averaged ON AN ANNUAL 

BASIS. 

ll.D.I.ddd. Crude oil or eeBEleBsate storage tanks with a capacity of40,000 gallons or 

less. 

New ll.D.l.eeee. CONDENSATE STORAGE TANKS wmIA TIlROUGHPUI' OF 30,660 

GAlLONS PER YEAR OR LESS. 

ll.D.4. A pennit application may not omit infoIDlation needed to determine the 

applicability of, or to impose any state or federal requirement on the source. De miBimis 

levels eeBtaiBed in New Seuree Perfemumee Standanls, RegtilatiOB Ne. 7, Pflwen.tien ef 

Sigaifieant Deterieratioo, Nooaf:tainment New Souree Review, Title m(ineludiBg 

NBSHAPS, Title V, and Colende W ..CT er GACT estahJisheEI in statute, regtilatiOB er 

guidaBee) are Bot eeBSide:reEI Sl:lbjeet te any speeifie federal er state applieabl8 

requifemeat and the exemptienslisted in Paragmph 1 ean be takeD by SOlHee9. None of 

the exemptions listed in SBCTIONll.D.l.par&graph I, above, including emission de 

minimis levels, shall apply ifby taking such exemption a source would avoid any specific 

federal or state applicable requirement, including, but not limited to, New Source 

Performance Standards, RegaJatiOB Ne. 7, Prevention ofSignificant Deterioration 

(§ion IY.D.3., Part B ofthis Regulation No.3), nonattainment New Source Review 

requirements (Ssection N.D.2.a, ofPart B ofthis Regulation No.3), Title ill (including 

NATIONAL EMISSION STANDARDS FOR lIAzARoous AIR POLLUTANTS (NESHAPS), Tm..B 

V, AND COLORADO MAxIMuM ACHIEVABLE CONTROL TEcHNOLOGY MACf OR 

GENBRALLYAVAILABLE CONTROL TEcHNOLOGY (GACf). (Ifthe potential to emit, taking 

into account full design rate and continuous operation, triggers PREVENTION OF 

SIGNIFICANT DETERIORAnON PSD OR NEW SOURes REvIEw NSR requirements, the 

source must submit an AIR POLLUTANT EMISSION NOTICE APEN and apply for the 

appropriate permit, or must apply for a permit to limit the physical or operational 

capacity of the source such that the source is not considered to :t>e a major source as 

defined'in §ion I.B.60.$&., ofPart A ofthis regulation.) 

II.D.4.a. Notwithstanding SSECTION II.D.paragraph n.D.4., above, emission units 

that are listed in in; SECTION n.D.I. ofPart A of this Regulation No.3 THATwhieh 

are subject solely to the following requirements, or to a combination ofsUch 

requirements, are allowed to take the exemptions: 

II.D.4.a.(i)Emission units that which are subject to the general opacity standard 

contained in Regulation No.1. 
H.D.4.a.(il)Emission units that whish are subject to the general fuel buniing, 

manufacturing process, and fugitive particulate standards contained in Regulation 

No. 1 and Part B ofRegulation No.6. 

H.D.4.a.(ili) Emission units subject to a REASONABLY AVAn.ABLB CONlROL 

1ECHNOLOGY requirement ofRegulation No.7, PROVIDED THATTIIB AC1UAL 

EMISSIONS ARE LESS THAN 1lIB DE MINIMIS THRESHOIDS CONTAINED IN SECTION 

ll.O.l.A., except for small remote reservoir degreasers TIlATMUST meet the 

requirements ofsection n.OA.a.(vi) below. 

UO.4.a.(iv) Emission units BELOW TIlE DE MINlMIS LEVELS CONTAINED IN subjeet 

t& REGULAnON NO.6 AND/OR Regulation No.8 NBSHAPS 8Bd the de miBimis 

18'¥els BI'e Bet 9eeeded. 

II.OA.a.(v) Emission units subject to Regulation No.2, as set forth in section 

II.O.l.rr. ofthis Regulation No.3, Part A. 

Revisions to Part C (to conform to changes in Part A) 

n.E.3.ee. Crude oil or eeBdeusate loading truck equipment at crude oil production sites 

where the loading rate does not exceed 10,000 gallons per day averaged ON AN ANNUAL 

BASIS. 

D.E.3.ddd. Crude oil er eende.nsate storage tanks with a capacity of 40,000 gallons or 

less. 

New II.E.3.ftff. CONDENSATE STORAGE TANKS WI1H ATIiROUGHPUf OF 30,660 GAllONS 

PER YEAR OR LESS. 
DRAFTSTATEMENT OF BASIS, SPECIFIC STATUTORY 


AUTHORITY AND PURPOSE 


REVISIONS TO REGULATION No.3 


OcTOBER~ 2002 


THIs STATEMENT OF BASIS, SPEClFJC STAlUTORY AUlHORITY AND PuRPosE COMPIlES 

Wl11:I nm REQUIREMENTS OFmE COLORADO ADMINISTRATIVE PROCEDURE Acr SECI10NS 

24-4-103(4) AND (12.5), C.RS. FOR NEW AND REVISED REGULATIONS. 

BASIS 

REGuLATION No.3 SETS FORm mEAIR QuAUTY CONTROL COMMISSION'S PERMITI1NG 

AND AIR POLLUfANT EMISSION NOTICE PROGRAMS FOR STATIONARY SOURCES. PuRsUANT 

TO ITS STATUTORY AunlORITY, mE COMMISSION MAY EXEMPT CERTAIN STATIONARY 

SOURCES FROM PERMIT11NG AND APEN REQUIREMENTS WHERE EMISSIONS FROM SUCH 

SOURCES ARE DEEMED TO BE INSIGNIFICANT. THE COMMISSION IS REVISING mE 

EXEMPTIONS FOR CONDENSATE AND CRUDE on. TANKS AND CONDENSATE AND CRUDE on. 

LOADING EQUIPMENT TO ENSURE mAT mE EXEMPTIONS APPLY ONLY WHERE TIm 

EMISSIONS ARE TRULY INSIGNIFICANT. ADDmONALLY, mE COMMISSION IS REVISING mE 

PROVISIONS DESIGNED TO ENSURE mAT IN EXEMPTING CERTAIN SOURCES FROM APEN 

REQUIREMENTS, TIlE REGULATION DOES NOT ALLOW SOURCES TO AVOID OrnER STATE AND 

FEDERAL REQUIREMENTS. TIns REVISION CLARIFIES WHEN APPUCATION OF OTIIER 

REQUIREMENTS PROHIBIT SOURCES FROM CLAIMING EXEMPTIONS. 

SPECIFIC STATUTORY AUTHORITY 

THB SPECIFlC STA lUTORY AUlHORITY FOR TIIESE REVISIONS IS SET FORTII IN VARIOUS 

SECI10NS OF TIlE COLOR.AJX) AIR POLLunON PREvENTION AND CONTROL ACT ("ACT''). 

SEcnON, 25-7-105(1), C.RS., GIVES TIm AIR QUAUTY CONTROL COMMISSION 

AtmlORITY TO PROMULGATE RULES AND REGULATIONS NECESSARY FOR TIm PROPER 

IMPLEMENTATION OF mE ACT, INCLUDING REGULATIONS TO ASSURE ATIAINMENT AND 

MAINTENANCE OF NATIONAL AMBIENT AIR QUAUTY STANDARDS, EMISSION CONTROL 

REGULATIONS AND A PREVENTION OF SIGNIFICANT DETERIORATION PROGRAM. SECI10N, 

25-7-105(12), C.R.S., PROVIDES SPECIFlC AUlHORITY TO ESTABUSH, EMISSION NOTICE, 

CONSTRUCI10N PERMIT AND OPERATING PERMIT PROGRAMS. SOME OF TIm STATUfORY 

PA.RAMETERSFOR TIlESE PROORAMSARESETFORTII IN SECI10NS 25-7-114.1, AND 25-7­

114.2 OF TIlE ACT, INCLUDING mE AUTIIORITY TO EXEMPT CERTAIN SOURCES FROM APEN 

AND PERMITTING REQUIREMENTS. TIIESE SECTIONS IN TURN, PROVIDE ADDmONAL 

STAlUTORY AUTIIORITY FOR TIlE CURRENT REVISIONS. 
I. CONDENSATI: TANKS AND TRUCK LOADING EQUIPMENT 

RBvIsIONS TO mECRUDB on. AND CONDENSATE STORAGB TANK. EXEMPTION IN PARTA, 

SEC110N TI.D.l.DDD.AND CRUDB On. AND CONDENSATE TRUCK LOADING BQUIPMENT 

BXBMP110N IN PARTA, SBCTION ll.D.l.DDD., WERE PROPOSED TO ADDRESS TIlE ISSUB OP 

PLASHING EMISSIONS IN CONDENSATE TANKS. 'DmsB EXEMPTIONS, AND A CORRESPONDING 

BXBMP110N IN PART C, SBCTION ll.E.3.DDD., DID NOT TAKE FLASH EMISSIONS INTO 

ACCOUNfWHEN nIB BXEMPTION WAS INI11AILY ADOPTED BY nIB COMMISSION. nm 

LARGB QUANTITY OP VOLATILE ORGANIC EMISSIONS TIIAT CAN BB RELEASED DURING A 

PLASH BVENTLED TO CHANGES IN nIB BXEMPTIONS TO ENSURE TIIAT EMISSIONS FROM 

nmsB SOURCES WD.L BE APPROXIMATELY AT OR BELOW nIB DE MINIMIS LEVEL. 

ADDmONAUY, SEPARATE EXEMPTIONS HAVB BEEN BSTABUSHBD FOR CRUDB On. TANKS 

AND EQUIPMENT AND CONDENSATE TANKS AND EQUIPMENT IN RBCOGNmON OP nIB PACT 

1lIAT FLASHING EMISSIONS FROM CRUDE OIL AND CONDENSATE ARB SIGNIFlCANlLY 

DIFFERENT. 

II. APEN CATCHALL 

CHANGES TO nIB APEN CATCHALL IN SECTION TI.D.4., WERE REWORKED "TO ADD 

CLARITY. nmPRIOR VERSION WAS UNCLEAR AS TO WHEN 01HBRWISB EXEMPT SOURCES 

WOULD BE REQUIRED TO FILE APEN's. nmNEW LANGUAGB CLARIFIBS TInS 

REQUIREMENT. SPECIFICALLY, TIlE SECOND SENTENCE WAS ELIMINATED, A NEW 

SUBSECTION WAS ADDED TO CLARIFY 11IAT SOURCES 11lAT MAY BE SUBJECT TO A DE 

MlNIMISLBVBL IN ANOlHBR PROGRAM (SUCH AS A NEW SOURCE PERFORMANCE 

STANDARD DEMINIMISLBVEL) BUT DO NOT EXCEED 11lATLBVEL MAY STILL CLAIM AN 

APPUCABLB APEN EXEMPTION, AND, LANGUAGE WAS ADDED EXEMPTING SMALL VOC 

SOURCES SUBJECT TO CERTAIN REQUIRMBNTS OF REGULATION NO.7. 

COLORADO AIR QUALITY CONTROL COMMISSION 

ADOPTED: OcroBER ----,2002 

2 
DRAFf 

ECONOMIC IMPACT ANALYSIS 

f·r 

AQCC RegulatioD No.3 


AIr PODutaDt EmissioD Notices aDd OperatiDg Permits 


per 

CAS. 25-7-110.5(4) 

I. Introduction 

The Air ponution Control Division is petitioning the Air Quality Control Commission to 

adopt proposed changes to Regulation No.3. The purpose ofthese proposed changes is to 

provide clarity to inconSistent and confusing regulatory provisions and to delete 

inappropriate exemptions. 

Some of these revisions are considered to be substantive and may be interpreted as more 

stringent than the original rule. As suc~ the changes could increase costs to the regulated 

community. For this reason, the 'eConomic impact analysis will address two specific 

provisions of the proposed rulemaking: 1) changes to oil and gas condensate storage 

tanks exemptions in Regulation No.3., Part A, section n.D.1.ddd., and Part C, section 

n.E.3.ddd.; and, 2) changes to crude oil and condensate loading truck equipment 

exemptions at crude oil production sites in Regulation No.3, Part A, section n.D.l.ee., 

and Part C~ section I1E.3.ee. 

Requirements for EIA 

Section 25-7-110.5 (4)(a), C.R.S. sets forth the requirements for initial and final 

Economic Jmpact Analysis, as stated below: 

"Before any permanent rule is proposed pursuant to this section, an initial economic 

impact analysis shall be conducted in compliance with this subsection (4) ofthe proposed 

rule or alternative proposed rules. Such economic impact analysis shall be in writing, 

developed by the proponent, or the Division in cooperation with the proponent and made 

available to the public at the time any request for hearing on a proposed rule is heard by 

the commission. A final economic impact analysis shall be in writing and delivered to the 

technical secretary and to all parties ofrecord five working days prior to the preheating 

conference. Ifno prehearing conference is scheduled, the economic impact analysis shall 

be submitted at least ten working days before the date ofthe rule-making hearing. The 

proponent ofan alternative proposal will provide, in conjunction with the Division, a 

final economic impact analysis five working days prior to the prehearing conference. The 

econqmic impact analyses shall be based upon reasonably available data. Except where 

data is not reasonably available, or as otherwise provided in this section, the failure to 

provide an economic impact analysis of any noticed proposed rule or any alternative 

proposed rule will preclude such proposed rule or alternative proposed rule from being 

considered by the Commission. Nothing in this section shall be construed to restrict the 

Commission's authority to consider alternative proposals and alternative economic impact 

analyses that have not been submitted prior to the prehearing conference for good cause 

and so long as parties have adequate time to review them." 
Futther, the statute lists those situations when no Economic Impact Analysis is needed. 

These can be found in CRS section 25-7-110.5 (2), which states: 

"The requirements ofsubsections (1) (c) to (1) (f), (3) (g), and (4) ofthis section shall not 

apply to any rule--making packet (or any Commission rule, and the requirements' of 

subsections (3) (g) and (4) ofthis section shall not apply to any Commission rule, which 

adopts by reference applicable federal rules or which rule is adopted to implement 

prescriptive state statutory requirements, where the Commission is allowed no significant 

policy-making options, or which rule will have no regulatory impact on any person, 

facility, or activity." 

m. Changes RequiriDg Economic Impact Analysis 

The Division's review of the proposed rules shows that changes to the crude oil or 

condensate storage tanks and the crude oil or condensate truck loading equipment 

exemptions in regulation No. 3 will impose an economic cost on sources cmrently 

exempt from filing Air Pollutant Emissions Notices, obtaining a permit and paying the 

associated fees. A discussion ofthese issues is presented in sections V. and VI. below. 

IV. Methods of Analysis 

- The statute further lists the methods available for performing the analysis required in 

CRS section 25-7-110.5 (4)(c) as follows: 

"The proponent and the Division shall select one or more ofthe following economic 

impact analyses. The Commission may ask affected industry to submit information with 

regard to the cost ofcompliance with the proposed rule, and, ifit is not provided, it shall 

not be considered reasonably available. The economic impact analysis required by this 

subsection (4) shall be based upon reasonably available data and shall consist ofone or 

more ofthe fol1owing: 

(I) Cost-effectiveness analyses for air pollution control that identify: 

(A) The cumulative cost including but not limited to the total capital, operation, and 

maintenance costs ofany proposed controls for affected business entity or industry to 

comply with the provisions ofthe proposal; 

(B) Any direct costs to be incurred by the general public to comply with the provisions of 

the proposal; 

(C) Air pollution reductions caused by the proposal; 

(D) The cost per unit of air pollution reductions caused by the proposal; 

(E) The cost for the Division to implement the provisions ofthe proposal; or, 
- -----------

(ll) Industry studies that examine the direct costs ofthe proposal tln directly affected 

entities that may be either in the fOIm ofa business analysis (The regulatory impacts on 

the general business climate or subsets thereof) or an industry analysis (the regulatory 

impacts on specific industries), including: 

(A) The characteristics and cmrent economic conditions ofthe impacted business or 

industry sector; 

(B) The projected impacts on the growth ofthe affected industry sectors with and without 

implementation ofthe proposal; 

(C) How the proposal may effect or alter the growth ofthe affected industry sector; 

(D) The direct cost ofthe proposal on the affected industry sector; or, 

(Ill) An economic impact analysis that: 

(A) Identifies the industrial and business sectors that will be impacted by the proposal; 

(B) Quantifies the direct cost to the primary affected business or industrial sector; and, 

(C) Incorporates an estimate ofthe economic impact ofthe proposal on the supporting 

business and industrial sectors associated with the primary affected business or industry 

sectors. 

In addition to the requirements listed above, the statute requires that economic impact 

analysis shall not consist of an analysis of any non-market costs or external costs asserted 

to occur notwithstanding compliance by a souree with applicable environmental 

regulations (25-7-110.5 (4)(e), CRS). 

v. Condensate Storage Tanks 

The proposed modifications pertaining to crude oil or condensate storage tanks can be 

found in Regulation No.3, Part A in section IID.l.ddd., and in Part C in section 

I.E.3.ddd. 

In general, section H.D., ofPart A, lists categories ofsourees and activities that are 

exempt from Air Pollutant Emission Notice requirements. Similarly, Part C, section 

1.E.3., identifies sourees and activities exempt from obtaining an operating permit. The 

intent ofthese sections is to identify sourees that in all likelihood will always be below 

de minimis emission thresholds, thus removing the burden on the regulated community to 

estimate emissions for these categories. As mentioned, the proposed changes in question 

pertain to crude oil or condensate storage tanks. The Commission previously set this 

exemption at a storage capacity of 40,000 gallons or less. It has come to the attention of 

the Division that there are condensate tanks less than the 40,000 gallon cut-offwhich 

emit considerably more than the de minimis thresholds for both criteria pollutants and 
hazardous pollutants due to "flash emissions." In recent information submitted to 

the Division with an application for a construction permit suggests emissions from some 

"exempt" facilities may exceed 100 tons per year. 

The proposed changes will eliminate the capacity-based exemption and establish a 

30~600-gallon per year throughput exemption. On average this equates to approximately 

4-S tons per year ofemissions. These changes will not affect facilities which have major 

source (Title V) or synthetic minor source permi~ as even under the previous exemption 

cutoff, they would have had to report these emissions because ofthe "catch all~~ 

provisions" contained in Regulation No. 3~ Part A, Section ll. D. 4. Therefore~ the only 

economic impact ofthe proposed changes will be to true minor sources. 

Based on a preliminary meeting between the Division and the Colorado Oil and Gas 

Associatio~ there are estimated to be over 200 oil and gas facilities and possibly as many 

3,900 storage tanks that may be affected by these proposed provisions. 

Analysis: 

The cumulative cost includiDg, but not limited to, the total capital, operation, and 

maiDtenance costs of any proposed controls for affected busiDess entity or industry 

to comply with the provisions of the proposaL 

The economic impact will inc1ude: 

• 	 Air Pollutant Emission Notice filing fees of$119.96 per tank 

or per set ofgrouped tanks; 

• 	 Permit processing fees of $S9.98/hour~ the average permit 

processing time is estimated to be five hours; 

• 	 Annual fees of$17.97 per ton ofcriteria pollutant and $119.96 

per ton ofHazardous Air Pollutant Thus, annual fees for a 

source emitting 2 tons/year source would total about $36/year; 

a 100 tonslyear sources would be billed about $180/year for 

criteria pollutant emissions. 

Direct costs to be incurred by the general public to comply with the provisions of the 

proposal: 

None anticipated. 

Air pollution reductions caused by the proposal: 

None can be quantified at this time~ but the proposal would help the Division to identify 

the location of numerous sources of air pollution so that this information can be used in 

future air quality analyses. 
The cost per unit ofair poDutiOD reductioDS caused by the proposal: 

None anticipated 

'The cost for the DivisioD to implemeDt the provisioDs of the proposal: 

The permit processing and annual fees generated will cover the anticipated costs to the 

Division. 

VI. Crude on & CODdeDsate Loading Truck EquipmeDt at Crude on PrOductiOD 

Sites 

This modification pertaining to crude oil and condensate loading truck equipment at 

crude oil production sites can be found in Regulation Reg. 3, Part A, section II.D.l.ee and 

Part C, section II.E.3.ee. . 

In general the rule lists categories ofsourees that are exempt from Air Pollutant Emission 

Notice requirements. The intention being to list sources that in all likelihood will always 

be below de minimis emission thresholds, thus removing the burden on the regulated 

community to estimate emissions for these categories. 

The Commission previously set the exemption for crude oil and condensate loading 

equipment at a loading rate of 10,000 gallons per day, averaged over any 3O-day period. 

It has come to the attention ofthe Division that at these loading rates, VOC emissions 

could exceed 25 tons per year. Specifically, at 10,000 gallons per day, the emissions 

calculation from splash fill condensate truck loading (RVP 13 gasoline) is estimated to be 

27.1 tons/yr. Emissions from truck loading using a submerged pipe is estimated to be 

11.2 tons/yr. For crude oil (RVP 5: API in the range of34-36), the splash fill emissions 

are an estimated 8.9 tonslyr-. and 3.7 tons/yr. from a submerged pipe. Based on this 

information and discussions with the Division"s permit engineers, the exemption for 

condensate truck loading should be deleted from Parts A and C. 

Analysis: 

'The cumulative cost including, but Dot Hmited to, the total capital, operatioD, aDd 

maiDteDaDce costs of aDY proposed cODtrols for affected business eDtity or industry 

to comply with the provisioDs ofthe proposal 

The economic impact will include: 

• 	 Air Pollutant Emission Notice filing fees of$119.96 per 

installation; 

• 	 Permit processing fees of $59.98Ibour; the average permit 

processing time is estimated to be five hours; 
• 	 Annual fees of$17.97 per ton ofcriteria poDutant and $119.96 

perton ofHazardous Air Pollutant Thus, annual fees for a 

somce emitting 2 tons/year would total about $361year, a 100­

tonslyear somce would be billed about $1801year. 

• 	 The Division anticipates that a small number of somces (12­

20) will be affected by this proposed action. 

Direct costs to be Incurred by the geueral pubBc to comply with the provisions ofthe 

proposal: 

None anticipated. 


Air pollution reductions caused by the proposal: 


None anticipated, but the proposal would help the Division identify the location of 


numerous somces ofair pollution so that this information can be used in fume air 


quality. 


The cost per unit ofair pollution reductions caused by the proposal: . 


None anticipated 


The cost for the Division to implement the provisions of the proposal: 


The permit processing and annual fees generated will cover the anticipated costs to the 


Division. 

AGENDA 

STATE OF COLORADO 


Bill Owens, Govemor 

Doualas H. Benevento, Actina Executive Director 

COLORADOAJRQUAUITYCONTROLCO~ON 

btIp:Ilwww.cdpIle,slafe co.lIS 

4300 Cbeny Creek Drive Soutb 

OED-OUA-AS 

Denver, Colorado 80246-1 S30 

Phone (303) 692-3100 

Fax (303) 691-7702 

TDD (303) 691-7700 

Colorado DepartmeDt 

ofPub. HeaJtII 

aod EDvlroDmeDt 

Notice ofMeeting and Agenda 

Air Quality Control Commission 

0:t0ter17,2002 

Colorado Department ofPubHc Health & Environment 


Sabin Room 


4300 Cherry Creek Drive South 


Denver, Colorado 


8:00 a..m. 

The Commission will meet in the Cafeteria for infonnal conversation prior to the start of 

the general business meeting. No public comment will be accepted. 

Notes: A specific amount oftime is provided for presentation and discussion on each of 

the agenda items. This time allotment is approximate only and may be changed or 

modified without notice at the discretion ofthe Commission. 

At 12:30PMthe Commission will provide an opportunityfor thepublic to express 

their views and opinions on the Commission's AnnualReport to the Publlc. Atthis 

time the Technical Secretary shall answer reasonable questions about the 

administration and enforcement oftheprovisions ofthe statute. AnnualReports 

JfIiIl be available at the start ofthe Commission meeting. This opportunity is 

provided in fulfillment ofthe requirements of25-7-105(4)(a), C.R-S. 
8:30 a.m. 


<..." CaD to Order: Determination of a Quorum 

AgeDda Review: 	 The Commission will review the agenda, noting any changes or 

additions to the agenda since publication. 

Approval ofMinutes: 	 Review/Approval ofthe September 2002 meeting minutes ofthe 

Air Quality Control Commission. 

1. 	PubUe CommeDt 

The public is invited to comment on any air pollution issue not on the agenda The 

Commission will not take action on issues discussed under this agenda item today; however~ 

items may be scheduled for further discussion or action. 

REQUEST FOR RULEMAKING HEARING 

2. 	 RegulatioD Number 8, Part B - Asbestos 

The Division will request that the Commission set a hearing date to consider revisions to the 

asbestos program to incorporate statutory revisions that were made in the 2001 regular 

legislative session in Senate Bill 121 and to make revisions to the rule to make the 

requirements more readily understandable. 

REQUEST FOR PuBLIC HEARING 

3. 	PubUe Land EmissioD IDveDtories 

Dan Ely ofthe Division will request that the Commission set a hearing date to consider for 

approval the Public Lands Emission Inventory developed pursuant to the requirements of 

99 HB-1351 and Commission Regulation Number 3~ Part B~ Section XI.G. 

--'"7~ 

RULE NG HEARING 

4.=RegulatioD Number 3, Air CODtamiDaDt EmissioD Notices '7 . 

(120 minutes presentatio~ 45 minutes discussion) [;J 

The Division will present a proposal to revise the rule regarding the requirements for the 

crude oil storage tank APEN exemption~ condensate storage tank APEN exemption, and the 

provisions ofthe rule that preclude a source from taking advantage ofany APEN exemption. 

s. 	 RegulatioD Number 11, Vehicle EmissioDs IDspectioD Program 

(30 minutes presentation, 30 minutes discussion) , 

The Division will present a proposal to revise the rule to initiate llie pay upon registration 

system in the Denver metropoJitan area The Divisions' proposal will also address the 

malfunction indicator light/on-board diagnostics and the vehicle emissions repair waiver 

limit. 

~ 6. 	 Platte River Power Authority-VoluDtary EmissioDs Reduction Agreement 

(35 minutes presentatio~ 35 minutes discussion) 

John Fooks ofthe Platte River Power Authority and David Ouimette ofthe Division will 

present to the Commission the Voluntary Emission Reduction Agreement entered into by the 

2 

Platte River Power Authority and the Air Pollution Control Division. The agreement makes 

reductions in the actual emission rate from the Rawhide generating station ofthe pollutants 

sulfur dioxide and oxides ofnitrogen. The Division and Platte River Power Authority will 

provide responses to several Commission questions posed at the time ofthe request for 

hearing. A period ofpublic comment will be provided at the end ofthe presentations made 

by the Division and Platte River Power Authority. 

ADJUDICATORY BEARING 

7. 	 Onyx Environmental Services 

(80 minutes presentation, 45 minutes discussion) 

The Commission will consider the appeal ofthe Onyx Environmental Services, Inc. 

regarding a Compliance Determination and Assessment ofCivil Penalty issued on December 

6,2001. The Compliance Determination and Assessment ofCivil Penalty sets forth 

Conclusions ofLaw by the Air Pollution Control Division that Onyx failed to comply with 

the requirements ofthe Air Quality Control Commission's Regulation Number 8, Part B in 

several instances and sets forth a civil penalty of$6,778.75. 

BRJEFINGS, REpORTS AND COMMISSION DISCUSSIONS 

8. 	 Commissioner Informational Items 

(15 minutes discussion) 

Commissioners will discuss among themselves activities that they have participated in over 

the past month that they believe other Commissioners and/or members ofthe public may be 

interested in hearing about. 

9. 	 Division Director~s Report - Margie Perkins 

(10 minute presentation, 10 minute discussion) 

• 	 Monthly activities report 

10. Attorney General~s Report - Casey Sbpall 

(5 minutes presentation,S minutes discussion) 

• 	 Litigation Updates 


- Regional Haze 


11. Administrator's Report - Doug Lempke 

(10 minutes presentation, 10 minutes discussion) 

• 	 Review ofthe Commission's November meeting agenda 

Meeting adjourned. 

3 

----- 

-.--~ 
REVISED: 


STATUS CONFERENCE IS 8121/02 AT 1:00 PM IN ROOM B1D 


8/l0l0l 

COLORADO AIR QUALITY CONTROL COMMISSION 


PARTY STATUS LIST 


FOR THE PUBLIC RULEMAKING HEARING REGARDING PROPOSED 


REVISIONS TO: 


REGULATION NUMBER. 3 


Air Pollution Emission Notice Exemptions 


OCTOBER 17, 2002 


Hearing Chair: Commissioner Blewitt 


DMSION STAFF: Kinten King 692-3111 


NAME REPRESENTED BY/ADDRESS TELEPHONEIFAX 

Brent A. Tracy 

1. Colorado Association of Dennis L. Arlinann (303)861-7000 

Commerce and Industry 1700 Lincoln Street, Suite 4100 Fax-303 866-0200 

Denver, CO 80203 

Stan Dempsey, Jr., President 

2. Colorado Pe1roleumAssOciation 1410 Grant Street, Suite C-207 (303)860-0099 

Denver, CO 80203 FAX (303)860-0310 

3. Colorado Oil & Gas Assoc. Kenneth A. Wonstolen (303) 861-0362 

1776 Lincoln. Suite 1008 Fax (303) 861-0373 

Denver, CO 80203 

Lawrence E. Volmert, Esq. (303)295-8528 

Colo. Oil & Gas and Colo 555 17* St, Suite 3200 FAX:303)295-8261 

Petrolemn Association Denver, CO 80202 

Attorney General's Offiee Representatives 

Air Quality Control Commission 	 Casey Sbpall (303) 866-5069 

Attorney General's Office FAX: (303) 866-3558 

1525 Shennan St., 5th Floor 

Denver, CO 80203 

Sl>L( 

Air Pollution Control Division 	 Gary Kaufmann (303) 866-~ 3 

Attorney General's Office FAX: (303) 866-3558 

1525 Shennan St., 5th Floor 

Denver, CO 80203 

NOTE TO PARTIES: Please send copies oraD documents (prebearing statements, etc.) directly to the 

Commission and Division attorneys listed above. 

Status Conference August 21, 2002 1:00PM CDPHE ROOM BID 
Prehearing Statc:men1s due September 13, 2002 

Prehearing Conference SepIrmbe.r 20, 2002 1:00pm CDPHE 

Rebuttal Statements due September 25, 2002 ­
_ ... _

RECEIVED 

AUG 142002 BEFORE THE AIR QUALITY CONTROL COMMISSION 

STATE OF COLORADO AlROOALITY camnCCMllSSOl 

IN..:J;HE MATTER -~ OF PROPOSED REVISIONS TO REGULATION NO.3 

REQUEST FOR PARTY STATUS OF THE COLORADO ASSOCIATION OF 

COMMERCE AND INDUSTRY 

This Request for Party Status is submitted through the undersigned on behalf ofthe 

Colorado Association ofCommerce and Industry ("CACI"). CACI is a trade association having 

a large number ofColorado's business and industrial companies as members. CACI was 

involved in the prior Reg. 3 hearing, from which the issues in this rulemaking have been deferred 

and re-noticed. Many CACI members are subject to the provisions ofthese regulations, and as 

such, will be directly affected by this rule. 

CACI asks that it be made a party to this hearing and have the right to call its own 

witnesses and to cross-examine others' witnesses. CACrs issue in this rulemaking is to develop 

acceptable language for Part A, Section II.D.4. CACI agrees with Commissioner Brady's 

statement at the hearing that some sort of"catchall" exemption is necessary. CACI is confident 

that mutually acceptable language can be developed. CACI currently believes that this is the 

only issue it has in this rulemaking, but as we have not seen the proposal language, CACI 

reserves the right to raise other issues as this rulemaking progresses. 

Respectfully submitted this E!!:- day ofAugust, 2002. 

HOLME ROBERTS & OWEN LLP 

Brent A Tracy 

1700 Lincoln Street, Suite 4100 

Denver, Colorado 80203 

(303) 861-7000 

fax: (303) 866-0200 

Chair, Air Quality Committee 

Colorado Association ofCommerce and Industry 

11838409 vI 
CERTIFICATE OF SERVICE 

I hereby certify that on this ~fAugust, 2002, a true and correct copy ofthe foregoing 

REQUEST FOR PARTY{.ti-~~;as sent by facsimile to the following: 

Air Quality Control Commission (original plus 3 copies) 

Marla Biberstine-A5 

4300 Cherry Creek Drive South 

Denver, CO 80246-1530 

Jean Terry (per request ofKirsten King) 

Air Pollution Control Division 

APCD-Bl 

4300 Cherry Creek Drive South 

Denver, CO 80246-1530 

CaseyShpall 

Attorney for the Commission 

Attorney General's Office 

1525 Sherman St., 5th Floor 

Denver, CO 80203 

Attorney 

T~y TFYRibiy 

for the 

6<er,/ 

Division 

~ 

Attorney General's Office 

1525 Sherman St., 5th Floor 

Denver, CO 80203 

#838409 vi 
RECEIVl:D 

BEFORE THE AIR QUALITY CONTROL COMMISSIO~G 14 •. 

STATE OF COLORADO 

MCQUAUTY

cormn.COMSSION 

IN THE MATTER OF PROPOSED REVISIONS TO REGULATION 

NUMBER 3, AIR POLLUTION EMISSION NOTICE EXEMPTION 

REQUEST FOR PARTY STATUS BY THE COLORADO 

PETROLEUM ASSOCIATION AND THE COLORADO OIL & GAS 

ASSOCIATION 

The Colorado Petroleum Association (CPA) and the Colorado Oil & Gas 

Association (COGA), through their undersigned counsel, submit the following Request 

for Party Status in the above-captioned proceeding, noticed for hearing by the Air 

Quality Control Commission on October 17, 2002. 

1. The CP A and the COGA are trade associations having as members a large 

number of Colorado businesses engaged in the oil and gas industry, and the proposed 

revisions to the Air Quality Control Commission's regulations will affect their 

members. 

2 . For purposes of thi s proceeding, the representatives of the CPA are: 

a) Stan Dempsey, Jr., President 

Colorado Petroleum Association 

1410 Grant Street, Suite C-207 

Denver, CO 80203 

Phone: 303-860-0099 

...-Fax: 303-860-0310 

E-mail: sdempsey@1410grant.com 

I b) 	 LawrenceE. Volmert, Esq. 


Holland & Hart LLP 


Attorneys for The Colorado Petroleum Association 


555 17th St., Suite 3200 


Denver, CO 80202 


Phone: 303-295-8528 


Fax: 303-295-8261 


E-mail: Ivolmert@hollandhart.com 

3. For purposes of this proceeding, the representatives of the COGA are: 

a) 	 Kenneth A. Wonstolen 


Colorado Oil & Gas Association 


1776 Lincoln, Suite 1008 


Denver, CO 80203 


Phone: 303-861-0362 


Fax: 303-861-0373 


E-mail: kwonstolen@coga.org 


b) 	 Lawrence E. Volmert, Esq. 

Holland & Hart LLP 

Attorneys for The Colorado Oil & Gas Association 

555 17th St., Suite 3200 

Denver, CO 80202 

Phone: 303-295-8528 

Fax: 303-295-8261 

E-mail: lvolmert@hollandhart.com 

4. The CPA and COGA have participated and continue to participate in 

discussions with the Air Pollution Control Division regarding proposed changes to 

APEN exemptions for crude oil and condensate tanks and crude oil and condensate 

truck loading operations. These discussions involve issues related to APEN exemption 

levels, the impact of a revision to the APEN exemptions on the applicability of 

construction permit requirements, the extent to which existing facilities might be 

grandfathered respecting construction permit requirements, the development of 

simplified forms and a simplified process for applying revised regulations to a very 

large number of previously exempt facilities and related matters. 

5. The CPA and COGA are hopeful that these discussions will be productive 

and result in a proposal which all parties can sponsor and endorse for adoption by the 

Commission. However, in the event these efforts do not succeed, the CP A and COGA 

wish to reserve the right to comment on these issues and present to the Commission for 

its adoption or approval an alternative proposal to address these issues. Therefore, the 

CPA and COGA request that they be accorded party status in this proceeding. 

-2­
Respectfully submitted this 14th day of August, 2002. 

HOLLAND & HART LLP 

BY.~~~ awrence E. Volmert 


555 Seventeenth Street, Suite 3200 


Post Office Box 8749 


Denver, Colorado 80201-8749 


Phone: (303) 295-8528 


Fax: (303) 295-8261 


E-mail: Ivolmert@hollandhart.com 


ATTORNEYS FOR 

THE COLORADO PETROLEUM ASSOCIATION 

AND 

THE COLORADO OIL & GAS ASSOCIATION 

·3­
CERTIFICATE OF SERVICE 

I certify that on August 14, 2002, I served a copy ofthe foregoing Request for 

Party Status by the Colorado Petroleum Association and the Colorado Oil & Gas 

Association to the following by: 

D 

~ 

D 

2975840_l.DOC 

U.S. Mail, postage prepaid 

Hand Delivery 

Fax 

Air Quality Control Commission 

Marla Biberstine-A5 

4300 Cherry Creek Dr. S. 

Denver, CO 80246 

Kirsten King 

APCD-BI 

Air Pollution Control Division 

4300 Cherry Creek Dr. S. 

Denver, CO 80246 

Casey Shpall 

Attorney for the Commission 

Attorney General's Office 

1525 Sherman Street, 5

th Floor 

Denver, CO 80203 

Tony Trumbly 

Attorney for the Division 

Attorney General's Office 

1525 Sherman Street, 5

th Floor 

Denver, CO 80203 

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COLORADO AIR QUALITY CONTROL COMMISSION 

AGENDA ITEM CONTROL SHEET' 

t~tIe Revisions to Regulation No.3 

deeting date October 11,2002 

NON-HEARING ACTIONS 

_ Administrative 

_Briefing 

_Policy 

_ Area Designations 

",,~Adoption 

4I11III 

-X Required 

General X 

TYPES OF ACTION 

REQUESTFOR HEARING 

_Public Rulemaking 

_ Informational 

RECO~NDEDACTION 

lLApproval 

MOTION 


- Attached 


STATUTORY AUTHORITY 

HEARING 

X Public Rulema1dng 

_ Informational 

:. 

. ,. 

- Denial ~ 

:: 

". 

_ Not applicable 

Specific _ 

EPA SUBMITTAL 

Is this issue considered a SIP revision? Yes _________________ ". 


vnnchSIP?~M=I~_______________________ 


Date ofEPA submission deadline: _________----:2=OO=3~_ 
SSUE STATEMENT: The Colorado Air Pollution Control Division (division) requests that the Colorado Air 

~ty Control Commission (commission) adopt revisions to Regulation No.3., Parts A and C pertaining to 

. . ti.·ons for condensate and crude oil storage tanks and truck loading equipment, and to the Part A and Part 

hall" provisions in sections II.D.4. and m.D.5., respectively. These revisions are necessa:ryto provide 

:1 and more comprehensive regulations. A summary ofrevisions to the regulation is outlined below. 

;UMMARY OF PROPOSED REVISIONS 

1. 	 Condensate tanks: Part A, section n.D.l.ddd. revised, Part C, section n.E.3.ddd. revised, Part A, section 

n.D.l.eeee. new, Part C section n.E.3.gggg. new, and to Part A, Section n.D.l.ID. revised. 

2. 	 Truck loading equipment: Part A, section n.D.I.ee. revised, Part C, section n.E.3.ee. revised. 

3. 	 Catchall: Part A, Section II.D.4 revised, Part B, Section m.D.5. revised, plus an alternative proposal. 

DETAILED ISSUE STATEMENT 

REGULATION NO.3, PARTS A & C 

Condensate TankslF1ash Emissions - Part A, Section II.D.l.ddd. and eeee.; Part C, Section 

II.E.3.ddd. and gggg.; Part A, Section II.D.l.m. 

Section II.D.l.ddd., provides for an exemption for crude oil and condensate tanks that have a capacity of 

40,000 gallons. This gallon capacity number was believed to be close to the APEN de minimis level for 

"condensate storage tanks. Flash emissions, however. were not taken into account when the exemption 

. as developed. Flash emissions result when condensate goes from a high-pressure pipeline to an 

atmospheric storage tank. similar to what happens when a beverage can is opened. Condensate tanks 

can have flash emissions that range from a few tons per year to over one hundred tons per year of 

volatile organic compounds and hazardous air pollutants. Condensate (hydrocarbon liquids separated 

from oil and natural gas) varies by region in its composition and in the amount ofcondensate produced. 

As a result, the amount and composition offlash emissions can vary greatly from one tank to another. 

The industry. recognizing the large variability inherent in the exemption, agreed to perform field studies 

to collect data and to work with the division to develop a more accurate exemption threshold. 

On May 30, 2002, industry presented preliminary summary data to the division on flash emissions from 

condensate tanks at 25 well head sites (i.e., exploration and production sites); however, testing was not 

performed at condensate tanks at natural gas gathering stations, compressor stations or processing 

plants. The data demonstrate an inherent variability ofcondensate liquids by region and that other 

associated variables may affect emissions. The data also demonstrate that there are potential emissions 

from all well operations combined in excess of30,000 tons ofVOCs per year. Given the late receipt of 

the data and the complexity ofthe issue, both industry and the division asked the commission to 

continue consideration ofthe condensate exemption from the July 2002 hearing on Regulation No.3 

until October 2002. Delaying consideration ofthe condensate portion ofthe hearing has allowed the 

division and industry to continue working together on concerns raised by flash emissions. 

The division, the Colorado Oil and Gas Association, the Colorado Petroleum Association and industry 

representatives met nwnerous times to resolve the issues that surrolDld regulation (APENs and permits) '	'')fcondensate storage tanks. The division proposed and industry agreed to change the exemption 

. . eshold to 30,360 gallons ofcondensate per year. This equates to approximately 730 barrels of 

condensate per year or about 2 barrels per day. Exploration and production operations producing more 

than 730 barrels ofcondensate per year will be required to file APENs. 

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The commission must consider ifthe exemption level proposed by the division and supported by 

industry is appropriate, since it is precedent setting. The exemption level of730 barrels per year equates ." "', to approximately three to five tons per year ofemissions, depending on location. Tanks in the Piceance U asin will use an emission factor that results in approximately 3.2 tons per year per 730 barrels of

condensate produced while tanks in the Denver-Julesburg Basin will use an emission factor that results 

in 5.0 tons per year per 730 barrels produced. Tanks located anywhere else in the state will use an 

emission factor that results in approximately 4~0 tons per year per 730 barrels produced. The 730 barrels 

per year exemption threshold represents a negotiated value and the division supports this level of 

exemption for condensate storage tanks at Oil and Natural Gas Exploration and Production facilities 

only, but not at gathering stations, compressor stations, gas plants, etc ... located downstream from well 

head sites. The reason for this is because the industry only collected data at well head operations. The 

division believes that the chemical makeup offlash emissions from condensate storage tanks at these 

other sites may be different, since the natural gas has already been flashed. It is our understanding that 

the only unresolved condensate-related issue that must be decided by the commission at the hearing is 

whether or not to extend the 730 barrels per year exemption level to operations downstream ofthe well 

head. Both parties will provide testimony. 

Numerous other issues were addressed by the parties, most ofwhich have been resolved. A few are 

listed here to provide additional context for the commission. 

The group also resolved that an "emission unit" for APEN reporting purposes is a tank or group oftanks 

that are manifolded together, and that up to 5 emission units could be reported on a single APEN. 

Relatively few companies own a majority ofthe exploration and production sites; therefore, the division 

.. has agreed to allow phased-in APEN reporting for larger companies, and for companies to submit their 

,·. '~EN data on spreadsheets. All APENs for previously unreported condensate storage tanks are due on 0 r before March 31, 2003. 

The Attorney General's Office advised the division that it should not require permits from existing 

condensate storage tanks. Condensate storage tanks are being brought into the air program due to a 

change in the exemption level contained in the rule. This does not meet the statutory criteria for 

requiring a permit; therefore, all existing condensate storage tanks are proposed to be exempt from 

minor source permits (operating permits under Title V, major nonattainment new source review permits 

and prevention ofsignificant deterioration permits still apply, as appropriate). However, ifan owner or 

operator adds a new producing well or other piece ofequipment to the site, then the division will require 

a minor source permit ifthe permit threshold is exceeded. The recompletion or re:ftac-ing ofa well does 

not trigger the requirement for a permit. 

The division will require more information from sources that approach major source thresholds. Ifa 

tank or group ofmanifolded condensate storage tanks exceeds a throughput of 11,000 barrels per year in 

the Denver-Julesburg Basin (17,000 barrels per year in the Piceance Basin and 13,000 barrels per year in 

the rest ofthe state), then the division believes the source needs to do test;ing to determine the actual 

emissions from the tank(s) and evaluate the need for a synthetic minor permit. Although the testing may 

be moderately costly, the division believes that it is necessary due to the variable nature ofcondensate 

emissions, and the limited emissions data at hand. Industry does not believe that testing should be 

required in all cases above the aforementioned levels. This issue is still being discussed with industry 

outside ofthe rulemaking process and we do not anticipate the need for the commission to discuss this c;:tter during the hearing. 

'., ,. e division and industry also discussed when a new permit application must be submitted. Whereas 

Part A ofRegulation No.3, section IT.D.l.11I. addresses this issue, after further disCussion, the division 

agreed with industry that it would be more accurate to determine emissions after the well has begun 

production rather than when the well is completed. Therefore, the division believes it is necessary to 
t , ~ 

t 

also amend section n.D.l.m. to require that the APEN and permit application are d~e 30 days after the I 

Report ofFirst Production is filed with the Colorado Oil and Gas Conservation Commission but no later ': than 90 days after the onset ofproduction. I 

w 

I C t

The division agreed to allow the indus1ry to apply a decline factor to estimate VOC emissions during the 

first year ofoperation of a new well. The slope ofthe plot ofproduction over time determines a decline 

factor. The average decline factor used is 0.6; however, ifsite-specific information is available, it will J 

be used. I

•

~. 

Given our current limited knowledge about the nature and breadth ofthe condensate issue, the division ~ 

l

• intends to report back to the commission on the results ofits oil and natural gas einissions inventory t 

~ development efforts and may recommend a decrease in the 730 barrels per year reporting thresholds. ~ 

! I 

REGULATION NO.3, PARTS A & C i 

Condensate Truck Loading Eqnipment -Part A, Section D.D.I.ee. & Part C, Section D.E.3.ee. I 

t 

~ 

Late in the Regulation No.3 rulemaking process of2002, the division identified high emission levels , 

associated with the exemption for condensate loading truck equipment included in Regulation No.3, f 

I 

I' 

Part A, section IID.1.ee., and Part C, section n.E.3.ee. This exemption is for sources located at crude oil l 

production sites where the loading rate does not exceed 10,000 gallons ofcrude oil or condensate per 

day. 

£ 

According f to calculations provided by division staff, emissions from condensate loading at qualifying ~ 

t .. ....facilities can be substantiall.y over the de minimis APEN level (an estimated 27.1 'tons ofVOCs per year 

I 

l with a splash fill truck and 11.2 tons per year with a submerged pipe). Crude oil loading is estimated to 

()emit 8.9 tons per year ofVOCs using splash fill and 3.7 tons per year with a submerged fill truck. Given 

the lateness ofthis issue and the short time period before the hearing to discuss this issue with interested ,~

parties, the division requested that these provisions also be continued to October 2002. I[ 

I 

In this proposal, the division requests that the exemptions in Parts A and C be retained for crude oil l. 

I loading truck equipment, but the exemption for condensate loading truck equipment be revised to more ~ 

accurately reflect the APEN de minimis level. Therefore, the division supports an APEN exemption for t 

condensate truc~ loading at less than 6750 barrels per year for splash fill truck loading and less than I 

16308 barrels per year for submerged or bottom fill truck loading. f 

I 

t 

t REGULATION NO, 3, PARTS A & B 


Part A, Section D.D.4 • - "APEN Catchall" 


Part B, Section m.D.S. - "Permit Catchall" 


t Section n.D.l. contains numerous exemptions from APEN requirements. Section n.D.4. precludes [ certain exemptions ifthey trigger more substantive requirements. The division has found the language ~ in this section to be confusing and subject to multiple interpretations, especially considering 0 

the provision is intended to be "exceptions to the exemptions". The division proposed in January 2002 t 

to clarify the catchall provision. The commission initially rejected the amendment, but, after further r 

consideration at the July 2002 Regulation No.3 hearing, agreed to re-notice the "APEN catchall" 


provisions. The division has worked with the Colorado Association ofCommerce and Industry to i: 

,. '0. clarify the intent ofthis provision, and to make corresponding changes to the "permit catchall" in Part B ! 

I

£'0 :fthe regulation. Some ofthe exceptions to the exemptions have been removed thereby allowing more I 

'-"'sources to take the exemptions. The division is reluctant to remove the requirement for sources to file I, 

APENs and permit applications ifthey are subject to Regulation No.7 given the current status ofthe 


ozone standard in the Denver Metropolitan area. Therefore, division is submitting two sets oflanguage 

,

for the commission to consider: one that allows sources subject to Regulation No. 7 to take the f 

i 

I 

~ 
exemptions in Section n.D.l.~ and an alternative that would require sources subject to a specific 

standard in Regulation No. 7 (but not the general reasonably available control technology requirement) 

.... to not take the exemptions. Sources must still meet the requirements ofRegulation No.7 even ifthey do 


1'··jIlot have to submit APENs. These sections may be relocated within each Part ofthe regulation to add 


'-'further clarity. 


ATIACHMENTS: 

1. Statement ofBasis and Specific Statutory Authority and Purpose 

2. Final Economic Impact Analysis 

3. Proposed language with revisions 

)IGNATURES: 

lb- 4-2... .: 

Date 

.~ /O-'-t>L · ~4.--~ :; 

, 

Supervisor· Kirsten King . Date 

.' 

"(;I~eJL~ IO~ ,{'O"'­

.. 

....: Program Manager- David e Date ., 

~> 

'. 

~T 

~ ~;. 'f/o41.J:xJl-­

Division Director· Margie Per " Date : 

t 
~ Revisions to Part A Regarding Condensate 

lI.D.1.ee. Crude oil O£ eeBde:ssate TRUCK loading tRleIi equipment at crude oil 

EXPLORATION AND production sites where the loading rate does not exceed 10,000 gallons I 

OF CRUDE Oll. per day averaged ON AN ANNUAL BAsIS. CONDENSATE TRUCK LOADING 

EQUIPMENT AT EXPLORATION AND PRODUCTION SITES TIIAT SPLASH FJLL LESS TIIAN 6750 

BARRELS OF CONDENSATE PER YEAR OR TIlAT SUBMERGE FJLL LESS TIIAN 16308 BARRELS !

OF CONDENSATE PER YEAR. 

lI.D.l.ddd. 

less. 

Crude oil or eondeBSate storage tanks with a capacity of40,000 gallons or I

I 

lID.l.lll. Oil aad gas eExploration and production operations SITES (well site and 

associated equipment) shall provide written notice to the Colorado Oil and Gas f 

Conservation Commission ofproposed drilling locations prior to commencement ofsuch I 

operations. Air Pollutant Emission Notices are not required until after exploration and/or 

production drilling, workovers, completions, and testing are finished. 

Ifproduction will result in reportable emissions, the owner or operator shall file an Air 

Pollutant Emission Notice with the 4ivision within thirty days after the well oompletioa 

or reeompletioB report BBd log is REPORT OF FIRST PRODUCTION IS filed with the 

appropriate state or federal agency BUT NO LATER TIIAN 90 DAYS FOllOWING TIm FIRST 

DAY OF PRODUCTION. Ifproduetioa vfin BOt oeeur, or proOOetioB 'Ifill BOt result in 

reportable emissions, the O\'YBer or operator shaD submit written Botiee to the dPfisioa 

iBdieatiBg that the ',vell ',vas plugged, or that emissions are otherwise BOt reportable. 

lI.D.l.eeee. ANY CONDENSATE STORAGE TANK WIlli A PRODUCTION RATE OF 730 

BARRELS PER YEAR OR LESS OR CONDENSATE STORAGE TANKS TIIAT ARE MANIFOLDED 

TOOETIIER WIlli A PRODUCTION RATE OF 730 BARRELS PER YEAR OR LESS THAT ARE 

OWNED AND/OR OPERATED BY nm SAME PERSON, AND ARE LOCATED AT EXPLORATION 

AND PRODUCTION SITES. 

II.D.l.eeee.(i) IF AN AIR POLLUTANT EMISSION NOTICE HAS NOT PREVIOUSLY 

BEEN FJLED FOR AN EXISTING CONDENSATE STORAGE TANK OR CONDENSATE 

STORAGE TANKS TIlAT ARE MANIFOLDED TOOETImR, AN AIR POllUTANT 

EMISSION NOTICE MUST BE FJLED ON OR BEFORE MARCH 31. 2003, EXCEPT AS 

PROVIDED BELOW. 

II.D.1.eeee.(ii) A SINGLE OWNER OR OPERATOR OF MORE TIIAN 50 EXISTING 

CONDENSATE STORAGE TANKS FOR WHICH AIR POLLUTANT EMISSION NOTICES 

HAVB NOT PREVIOUSLY BEEN FJLED SHAll FJLE AT LEAST ONE-1HJRD OF TIm 

REQUIRED APENs BY JANUARY 31. 2003, AT LEAST TWO-TIlIRDS BY FEBRUARY 

28, 2003, AND TIm REMAINDER BY MARCH 31, 2003. 

~ReviSions to Part C (to conform with changes in Part A) 
" 

II.E.3.ee. Crude oil or eenElensate loading truck equipment at entEIe eil EXPLORATION 


AND production sites where the loading rate does not exceed 10,000 gallons OF CRUDE On. 


per day averaged ON AN ANNUAL BASIS. CONDENSATE TRUCK LOADING EQUIPMENT AT 
 ! 

EXPLORATION AND PRODUCTION SITES 1lIAT SPLASH FILL LESS 1lIAN 6750 BARRELS OF I 

I 

l , CONDENSATE PER YEAR OR 1lIAT SUBMERGE FILL LESS 1HAN 16308 BARRELS OF 

CONDENSATE PER YEAR. 

II.E.3.ddd. Crude oil or e~ate storage tanks with a capacity of40,000 gallons or I less. 

II.E.3.GGGG. *ANY CONDENSATE STORAGE TANK wrm A PRODUCTION RATE OF 730 I 

BARRELS PER YEAR OR LESS OR CONDENSATE STORAGE TANKS TIIAT ARE MANIFOLDED 

I TOGETHER WI1H A PRODUCTION RATE OF 730 BARRELS PER YEAR OR LESS 1HA TARE r

OWNED AND/OR OPERATED BY TIlE SAME PERSON, AND ARE LOCATED AT EXPLORATION 

AND PRODUCTION SITES. 

I 

J 

r 

", 

I 

f ,­

I 

J 

i 

~ 

.' 

.; 

...~: ( =: 

':< 

: l 

I 

f -

i 

.' I 

I 

t 

I 
Revised CatchaD Language: Two Proposals 

Part A 

n.D.4. REsERVED. A permit BppliCatioD may BOt omit infermatiOB Heeded to determine 

the applieability ef, or to impose BBy state or federal requirement OB the sOm'Ce. De 

minimisleveis COBtaiBed in New Somee PerfoflB8flee StaBdards, Reg1.ilatioD No.7, 

Pre'lentiOB ofSigaifieBBt DeterioratiOB; Bomttaimnent New Souree Re¥iew, Title ill 

(inellldiBg NESHAPs, Title V, aad Colorado W ..CT. or GACT established in statute, 

rega1atiOB or gaidaBee) are Bot cOBsideree suejeet to BBy specific federal or state 

Bpplioal31e requirement BBd the exemptions listed in Paragraph 1 eBB lle taken lly sources. 

Noae ofthe exemptioas listed iaparagmph I, allove, inellldiBg emiSSiOB de minimis 

levels, Mall apply iflly taking sush eKemptiOB a SOlH'eO would avoid By speeifie federal 

or state applicable requirement, iBeludiBg, llut Bot limited to, New SOUfGe PerformBBCe 

StBBdanls, RegulatioB No.7, Pre"lentioB ofSignificBBt DeterioratiOB (SoetioB IV.D.3., 

Part B ofthis RegulatioB No.3), BOmttaiBmeat New Seuree RS'lie"N (N8R) requiremeats 

(SeetiOB IV.D.2.a., ofPart B ofthis RegulatioB No.3), Title ill (inellldiBg NBSHAPs), 

Title V, aDd Colorado MA-CT or G/..cT. (Ifthe potential to emit; taking into aecOllBt full 

desigo rate aad oOBtiB'UOllS opemtiOB, triggem PSD or NSR requirements, the souree tmlSt 

submit an Air PoUutBBt EmissiOB Notice and apply for the appropriate permit; or nmst 

apply for a permit to limit the physical or operatioBal capacity of the seuree such that tho 

somee is BOt eOBsidered to be a major seuree as deMed in SoetiOB I.B.6G ofPart A of 

this rogulatioB.) 

n.D.4.a.~loty,rjthstBBding paragraph 4ft; abo",e, emiSSiOB units that are listed iB sectioB 

GofPart A ofthis RegalatioB No.3 that are suejeet solely to the following 

requiremeats, or to a COmbiBatiOB ofsuch req'Uiremeats, are allowed to take the 

e*emptioas: 

n.DA.a.(i)BmissioB units whish are suejeet to the geBeml opacity staadard 

eoataiBed iB RegulatioB No.1. 

n.D.4.a.(ii)EmissiOB 'UBits whish are suejeet to the geBeral fuelllumiBg, 

mamlfaeturiBg process, BBd fugitive particwate stBBdards coBtaiBed iB RegulatioB 

No. 1 aDd Part B ofRegalatiOB No.6. 

. I1.D.4.a.(iii)BmissioB units "llhich are Bot suejeet to a specific ReasOBably 

Available CoBtfOl Toebnology requiremeat ofRegulatiOB }io. 7. BJi:cJ:udiBg small 

remote resOPtI()K degreasers meetiBg the req'Uiremeats of(vi) in this SoetiOB. 

I1.D.4.a.(i'l)BmissioB units v.rftish are suejeet to RegulatiOft No. 8 NBSHAPS and 

the de miBimis le:r.'el is BOt eKseeded. 

n.D.4.a.(v)EmissiOB units subjeet to RegulatioD tW. 2, as set forth in sectioD 

Error! Referenee seuree Dot feUDd.. ofRegulatioD No.3, Part A. 
II.D.4.a.(vi)NotwithstaodiBg the provisioos efthis seetioa small felBete feSeJVeir 

eeld sehrellt degrees81'S that meet the feD&'WiBg reqWremellts, may stiD take the 

eHemptioa: 

II.D.4.a.(vi)(A)The \lSed sewellt shall drain inte a sepamte selvent sink 

that is oot aeeessible fer seakiBg werkleads, 

II.D.4.a.("li)(B)The sewent \lSed shall have a heiling peint greater the 248 

degrees Fahrenheit (120 degrees Celsil:lS), 

II.D.4.a.(vi)(C)The emissieBS Bem the small remete feServeir degreaser 

shall oot eH6eed ene teB efTlelatile erganie eempOllBds per year, 

IID.4.a.6~)(D)The temperature efthe solvent es \lSed shall he 180 degrees 

FabreBheit (82 degrees Celsi\lS) helOT1.. the sowent hoiliBg poiDt, BBd 

n.D.4.a.("li)(B)The solvent used shall not he subjeet te ey state OF federal 

Maximum Aemevable Control Teohnolegy or Generally A ....ailable 

CoBtfol Teelmelogy standards. 

Air Pollutam Emission Netiee 8*emptiOBS takeD oa emissioBS HBits under 

this SeeQOB de oot affeet the applieability ofthe regulatioBS to file somee. 

II.D.1. NOTWIlHSTANDING TIlE EXEMPTIONS CONTAINED IN SECTION II.D.I., AIR 

POLLUTANT EMISSION NOTICES MUST BE FILED FOR ALL EMISSION UNITS SPECIFICALLY 

IDENTIFIED IN 1lIE APPLICABll...ITY SECTION OF ANY SUBPART OF PART A OF REGULATION 

NO.6 (NEW SOURCE PERFORMANCE STANDARDS) AND REGULATION NO.8 (HAzARDous 

AIR POLLUTANTS), PARTS A,C,D, AND E. HOWEVER, AIR POLLUTANT EMISSION NOTICES 

NEED NOT BE FILED FOR WET SCREENING OPERATIONS SUBJECT TO SUBPART 000 OF 1lIE 

NEW SOURCE PERFORMANCE STANDARDS IF 1lIE EXEMPTION IN SECTION II.D.I.cccc. IS 

APPLICABLE. 

STATIONARY SOURCES HAVING EMISSION UNITS THAT ARE EXEMPT FROM TIm 

REQUIREMENT TO FILE AN AIR POLLUTANT EMISSION NOTICE MUST NEVERTImLESS 

COMPLY wrm ALL REQUIREMENTS TIIA TARE 01llERWISE APPUCABLE SPECIFICALLY TO 

mE EXEMPTED EMISSION UNITS, INCLUDING, BUT NOT LIMITED TO: TITLE V, PREvENTION 

OF SIGNIFICANT DETERIORATION, NONATIAINMENTNEW SOURCEREvmw, OPACi1Y 

LIMITATIONS, ODOR LIMITATIONS, PARTICULATE MATTER LIMITATIONS AND VOLATILE 

ORGANIC COMPOUNDS CONTROLS. 

AN APPLICANT MAY NOT OMIT ANY INFORMATION REGARDING APEN EXEMPT EMISSION 

UNITS IN ANY PERMIT APPUCA TION IF SUCH INFORMATION IS NEEDED TO DETERMINE THE 

APPLICABILITY OF, OR TO IMPOSE ANY FEDERAL REQUIREMENT ON AN EMISSION UNIT OR A 

SOURCE, INCLUDING, BUT NOT LIMITED TO, TITLE V(PART C OF THIS REGULATION No.3), 

PREVENTION OF SIGNIFICANT DETERlORA TION (SECTION N.D.3., PART B OF THIS 

REGULATION No.3), OR NONATIAINMENTNEW SOURCE REvIEW(SECTION IV.D.2.A., 

PARTB OF THIS REGULATION No. 3). 
The following sources are exempt from the requirement to file Air Pollutant Emission 

Notices because by themselves, or cumulatively as a category, they are deemed to have a 

. negligible impact on air quality. 

PartB 

mD;5. REsERVED 

NeBe ofthe e1femptiOBS listed ab07le iB seetioRS m.D.l. m.D.4., shall apply ifa souree 

Vtre&kl odierWise be subjeet to My speeifie federal or state applieable reEllliFement, 

iBeludiBg; 1mt Bot limited to, New Source Performanee StaBdards, RegalatioB No.7, 

PwleBtiou ofSignifieant Deterioratiou (sestiou N.D')., Port B), BOBattainment New 

Seuree ~;i8ll.r reqB:irements (soetiOB N.D.l.a., efPort B), Title m (iBeludiBg lederal 

NatiOBal Bmissiou Standards for HEaroOOS Air Polmtants), Title V, and Co1era8o 

MmBmlHB lA.dHevable COBtrol TeeJmology or Generally A¥ailable COBtroI Teelmology. 

(Ifthe potential to emit; taking iBto 8GeouBt fuU design rate and sontimlous operatiOB, 

triggers PwlentiOU of Signifieant DeterioratioR or Bouattainment Ne\\' SOBree Re¥i8ll.' 

~eBt5, the sourse must submit aB Air Pollutant Emissiou NOtise aBd apply for the 

appropriate permit, or Jmlst apply for a permit to limit the p~sal or operatioual 

eapaeity oftha sourse SUM that the sourse is Bot sORSidered to be a major soU{ce as 

"defined in seetioR I.B.S9., ofthis regulatioB, Part A.) 

"NotwithstimdiBg sestioR m.D.S.a., souroes that are subjeet solely to the following 

regulations, or to a eombinatiou ofthe regulatious, may take the 

e1femptiOflS. 

Sourees that are subjest to the general opaeity standard cORtamed is RegalatioB 

No:-h 

Sourees that are subjeet to the general fuel blHlliBg, manafaeturiBg proeess, and 

fugiti7

•

t e partiswate staBd-ards sontaiBed is Regulatiou NO. 1 andler 

Port B ofRegulatioB NO.6. ' 

Sourees that are subjeet solely to work praetiee standards ofRegolatioR No.7. 

SOBrees that are subjeet to state oBly Natioual Bmissiou StaBEiards for HEardoos 

Air Polmtants in RegulatioR NO.8. 

Penmt exemptioRS taken UBder this sestiou do Bot affest the applieability oft:he 

regulations to the souree. 

m.D. Exemption from Construction Permit Requirements 

NONE OF TIlE EXEMPTIONS LISTED BELOW IN SECTIONS m.D.I. - m.D.4., SHALL APPLY IF 

A SOURCE IS SUBJECf TO PART A OF REGULATION NO.6 (NEW SOURCE PERFORMANCE 

STANDARDS) AND REGULATION NO.8 (HAzARDous Am POLLUTANTS), PARTS A,C,D, 
AND E. PERMrrBXEMPTIONS TAKBNUNDBR TIllS SBCTION 00 NOT AFFECT THE 

APPUCABll..ITY OF THE REGULATIONS TO THE SOURCE. 

AN APPUCANT MAY NOT OMIT ANY INFORMATION REGARDING APEN OR PBRMITBXEloAYf 

. EMISSION UNITS IN ANY PERMIT APPUCATION IF SUCH INFORMATION ISNBBDED TO 

DB1BRMINB THE APPUCABIUTY OF TrrLB V (PART C OF TIllS REGULATION No.3), 

PREvENTION OF SIGNIFICANT DETERIORATION (SECTION N .D.3., PART B OF TIllS 

REGULATION No.3), OR NONATTAINMBNT NEW SOURCE REVIEW (SECTION IV.D.2.A., 

PARTB OF TInS REGULATION No. 3). 

Alternative Proposal: Includes Reg. 7 

Part A (this would completely replace existing language in Section D.D.4., except . 

for the language regarding smaU degreasers, and would be stricken as in the first 

proposal, but would not be moved to section D.D.I.) 

II.D.4. NOTWITIISTANDING THE EXEMPTIONS CONTAINED IN SECTION II.D.I., AIR 


POlLUTANT EMISSIONS NOTICES MUST BB FILED FOR ALL EMISSION UNITS'SPECIFICAILY 


IDENTIFIED IN THE APPUCABILITY SECTION OF ANY SUBPART OF PART A OF REGULATION 

NO.6 (NEW SOURCE PERFORMANCE STANDARDS) AND REGULATION NO.8 (HAzARDous 

AIR POLLUTANTS), PARTS A,C,D, AND E; HOWEVER, AIR POLLUTANT EMISSION NOTICES 

NEED NOT BE FILED FOR WET SCREENING OPERATIONS SUBJECT TO SUBPART 000 OF THE 

NEW SOURCE PERFORMANCE STANDARDS IF THE EXEMPTION IN SECTION II.D.l.cccc. IS 

APPUCABLE. AIR POLLUTANT EMISSIONS NOTICES MUST ALSO BE FILED FOR ALL EMISSION 

UNITS SUBJECT TO A SPECIFIC REASONABLY AVAILABLE CONTROL TECHNOLOGY 

REQUIREMENT OF REGULATION No. 7 EXCEPT FOR SMALL REMOTE RESERVOIR 

DEGREASERS THAT MEET TIIE REQUIREMENTS OF SECTION TI.D.4.c. BELOW. 

II.D.4.A. STATIONARY SOURCES HAVING EMISSION UNITS THAT ARE EXEMPT 

FROM THE REQUIREMENT TO FILE AN AIR POLLUTANT EMISSION NOTICE MUST 

NEVERTHELESS COMPLY WIllI ALL REQUIREMENTS THAT ARE OTHERWISE APPUCABLE 

SPECIFICALLY TO THE EXEMPTED BMISSION UNITS, INCLUDING, BUT NOT UMITED TO: TnLE 

V, PREYBNTION OF SIGNIFICANT DETBRIORA TION, NONA TTAINMBNT NEW SOURCE 

REVIEW, OPACITY LIMITATIONS, ODOR UMITATIONS, PARTICULATE MATI'ER LIMITATIONS 

AND VOLATILE ORGANIC COMPOUNDS CONTROLS. 

II.D.4.B. AN APPLICANT MAY NOT OMIT ANY INFORMATION REGARDING 

APEN EXEMPT EMISSION UNITS IN ANY PERMIT APPLICATION IF SUCH INFORMATION IS 

NEEDED TO DETERMINE THE APPLICABILITY OF, OR TO IMPOSE ANY FEDERAL REQUIREMENT 

ON AN EMISSION UNIT OR A SOURCE, INCLUDING, BUT NOT LIMITED TO, TITLE V, 

PREYBNTION OF SIGNIFICANT DETERIORATION, OR NONA TTAINMENT NEW SOURCE 

REVIEW. 

II.D.4.c. NoT\VlTIISTMIDING TIlE PRO'IlSIONS or nns SECTION &Small 

remote reservoir cold solvent degreasers that meet the folloWing requirements, 

may still take the exemption: 

.~ 

;.'. 

...

, 
II.D.4.c.(i) The used solvent shall drain into a separate solvent sink that is not 

accessible for soaking workloads, 

II.D.4.c.(ii) The solvent used shall have a boiling point greater than 248 

degrees Fahrenheit (120 degrees Celsius), 

II.D.4.c.(iii) The emissions from-the small remote reservoir degreaser shall 

not exceed one ton ofvolatile organic compounds per year, 

II.D.4.c.(iv) The temperature ofthe solvent as used shall be 180 degrees 

Fahrenheit (82 degrees Celsius) below the solvent boiling point, and 

II.D.4.c.(v)The solvent used shall not be subject to any state or federal 

Maximum Achievable Control Technology or Generally Available Control 

Technology standardS. 

Part B (this would completely replace existing language in Section II.D.4. and would 

be stricken as in the first proposal) . 

ill.D.S. REsERVED 

(." ill.D. Exemption from Construction Permit Requirements 

NONE OF TIlE EXEMPTIONS LISTED ABOVE IN SECTIONS ill.D.I. - ill.D.4., SHALL APPLY IF A 

SOURCE WOULD OTIIERWISE BE SUBJECT TO, SPECIFIC RBASONABLYAVAILABLE CONTROL 

TECHNOLOGY REQUIREMENTS OF REGULATION No. 7, PART A OF REGULA110N NO.6 

(NEW SOURCE PERFoRMANCE STANDARDS) AND REGULA110N NO.8 (HAzARDous AIR 

POLLUTANTS), PARTS A,C,D, AND E. PERMIT EXEMPTIONS TAKEN UNDER nns SECTION 

DO NOT AFFECT TIlE APPLICABILITY OF TIlE REGULA110NS TO TIm SOURCE. 

AN APPLICANT MAY NOT OMIT ANY INFORMA110N REGARDING APEN OR PERMIT EXEMPT 

EMISSION UNITS IN ANY PERMIT APPLICA110N IF SUCH INFORMA110N IS NEEDED TO . 

DETERMINE TIlE APPLICABILITY OF TITLE V (PART C OF TIllS REGULA110N No.3), 

PREVENTION OF SIGNIFICANT DETERIORATION (SECTION N .D.3., PART B OF nns 

REGULA110N No.3), OR NONATTAINMENTNEW SOURCEREvmw (SECTION N.D.2.A., 

PARTB OFlHlSREGULA110NNo. 3). 
DRAFTSTATEMENT OF BASIS, SPECIFIC STATUTORY 


AUTHORITY AND PURPOSE 


RevisioDs to RegulatioD No.3 


October 2002 


This Statement ofBasis, Specific Statutory Authority and Purpose complies with the 


requirements ofthe Colorado Administrative Procedure Act Sections 24-4-1 03(4) and 


(12.5), C.R.S. for new and revised regulations. 


Basis 

Regulation No.3 sets forth the Air Quality Control Commission's permitting and air 

pollutant emission notice programs for stationary sources. Pursuant to its statutory 

authority, the Commission may exempt certain stationary sources from permitting and 

APEN requirements where emissions from such sources are deemed to be insignificant. 

The Commission is revising the exemptions for condensate and crude oil tanks and 

condensate and crude oil loading equipment to ensure that the exemptions apply only 

where the emissions are truly insignificant. Additionally. the Commission is revising the 

provisions designed to ensure that in exempting certain sources from APEN and permit 

requirements, the regulation does not allow sources to avoid other state and federal 

requirements. This revision clarifies when application ofother requirements prohibit 

sources from claiming exemptions. 

Specific Statutory Authority 

The specific statutory authority for these revisions is set forth in various sections ofthe 

Colorado Air Pollution Prevention and Control Act ("Act"). Section. 25-7-105(1), 

C.R.S., gives the Air Quality Control Commission authority to promulgate rules and 

regulations necessary for the proper implementation ofthe Act, including regulations to 

assure attainment and maintenance ofnational ambient air quality standards, emission 

. control regulations and a prevention ofsignificant deterioration program. Section. 25-7­

105(12), C.R.S., provides specific authority to establish, emission notice, construction 

permit and operating permit programs. Some ofthe statutory parameters for these 

programs are set forth in Sections 25-7-114.1, and 25-7-114.2 ofthe Act, including the 

authority to exempt certain sources from APEN and Permitting requirements. These 

sections in turn, provide additional statutory authority for the current revisions. 
Purpose 

I. Condensate Tanks and Truck Loading Equipment 

Revisions to the crude oil and condensate storage tank exemption in Part A, Section 

II.D.I.ddd.and crude oil and condensate truck loading equipment exemption in Part A, 

Section II.D.I.ee., were propOsed to address the issue offlashing emissions in condensate 

tanks. The exemptions, and a corresponding ~xemption in Part C, Section II.E.3.ee. and 

ddd., did not take flash emissions into account when the Commission initially adopted the 

exemption. The large quantity ofvolatile organic emissions that can be released during a 

flash event led to changes in the exemptions. Additionally, separate exemptions have 

been established for crude oil tanks and equipment and condensate tanks and equipment 

in recognition ofthe fact that flashing emissions from crude oil and condensate are 

significantly different. 

The Commission recognizes that in changing these exemptions a number oftanks and 

equipment th~t were previously exempt from APEN reporting, and therefore exempt from 

construction permitting requirements, will now be required to file APENs. The 

Commission does not believe, however, that these existing sources will now be required 

to obtain state construction permits, since such a requirement is triggered by construction 

or modification ofa source, and not by a change in a previously applicable exemption. 

If, however, the tanks or equipment are subsequently modified, a construction permit will 

be required for the modification unless the tanks or equipment are exempt under the new 

exemption levels. Additionally, sources subject to PSD, NSR-NAA and Title V 

permitting requirements are required to have such permits regardless ofwhether they are 

subsequently modified. The Commission notes to permit applicants that this change 

becomes effective on the effective date ofthis regulation. 

In connection with these revisions. the Commission has also looked at the timing 

requirements set forth in Part A, Section II.D.I.llI., for submitting APENs and obtaining 

construction permits for tanks at crude oil and natural gas exploration and production 

sites. The Commission enacted this provision in 1993 to allow sources sufficient time to 

determine production levels before being required to submit APENs or construction 

permit applications. To affect this, Section n.D.m. provided that APENs for oil and gas 

exploration and production operations were not required until 30 days after filing the 

well completion or recompletion report with the appropriate state or federal agency. 

Additionally, Part B, Section m.D.S. provided that applications for construction permits 

for such operations were due at the same time as the APEN filing. Based on discussions 

during the regulation revision process the Commission discovered that the well 

completion report must be filed before production levels can be determined and that the 

provision should have referenced the report offirst production. Therefore. the 

Commission has revised Section n.D.I.lll. to clarify and effectuate the intent ofthe 1993 

revisions. 

The Commission also recognizes the definition of condensate that appears in the 

Common Provisions Regulation does not include reference to an API gravity and 

I:/ssp_regslreg3/sbap reg3 12_28 2 
therefore could be read to include crude oil. It is the Commission's intent that for the 

purposes ofthese exemptions, as well as APEN reporting, condensate should only 

include hydrocarbOn liquids that fit within the Common Provisions definition and that 

have an API gravity of40 degrees or above. The Commission anticipates revising the. 

. Common Provisions definition to more clearly reflect this intent the next time the 

Common Provisions regulation is opened for revision. 

II. APEN Catchall 

Changes to the APEN catchall in Part A, Section n.D.4. and the construction permit 

catchall in Part B, Section ill.D.S., were significantly reworked to add clarity. The prior 

versions were somewhat unclear as to both the effect ofAPEN and permitting 

exemptions on other applicable requirements and when otherwise exempt sources would 

be required to file APENs. While the revisions minimally change the substantive 

requirements ofthe two catchall provisions the new language is intended to more clearly 

express these requirements. The new language clarifies that sources that are exempt from 

APEN and/or constroction permitting requirements are not, by virtue of that exemption, 

exempt from any other applicable requirements. Thus, for example, a source that is 

exempt from APEN or permitting requirements, must still comply with the Regulation 

No. I 20% opacity standard. Likewise, an APEN exempt emission point at a major 

source is excused from paying APEN fees but may still need to be listed as an 

insignificant activity under the requirements ofthe Title V program. Additionally, 

information regarding exempt sources and emission points must still be included in any 

permit application where such information is needed to determine the applicability of any 

state or federal requirement. For example, where the emissions from a particular 

emission point would cause a source to trigger PSD, NSR-NAA or Title V requirements, 

information regarding that emission point cannot be omitted from any permit application, 

notwithstanding the fact that the emission point standing alone might be exempt from 

APEN or Constroction Permit requirements. 

The commission also requires that ifthe potential to emit, taking into account full design 

rate and continuous operation, triggers PSD or NSR requirements, the source must submit 

an Air Pollutant Emission Notice and apply for the appropriate permit, or must apply for 

a permit to limit the physical or operational capacity ofthe source such that the source is 

not considered to be a major soUrce as defined in Section LB.S9 ofPart A ofthis 

regulation. This language previously appeared in the catchalls, but was relocated to this 

statement ofbasis. 

Finally, the revised catchall provisions subject certain emission points and sources to 

APEN and Constroction Permit requirements notwithstanding the fact that such points 

and sources would otherwise be exempt. Sources specifically identified in the 

applicability section ofany subpart ofPart A ofRegulation No.6 (New Source 

Performance Standards), Regulation No.8 (Hazardous Air Pollutants), Parts A,C,D, and 

E, and Regulation No. 7 (not including those instances where only general RACT applies C .; (Section II.C.) may not Claim exemptions. [Note: this previous sentence may need to 

~ be stricken from the Statement of Basis if the Commission decides not to add 

' \ \ RegulatiOD No. 7 to the exceptioDS listI This provisioD allows the Division to keep 

/ ~:/ssp_regslreg3/sbap reg3 12_28 

\ 

3 
track ofthese points and so~ and ensure that the requirements ofthese programs are 

being properly followed. It must be noted, however, that wet screening operations 

subject to the exemption set forth at Part Section n.D.I.ccce may claim exemptions 

notwithstanding the fact that such sources are subject to New Source Performance . Standard 000. 

COLORADO AIR QUALITY CONTROL COMMISSION 

ADOPTED: October 2002 

:: 

,. 

4 
FINAL ECONOMIC IMPACT ANALYSIS 

AQCC Regulation No.3. 

Air Pollutant Emission Notices, Construction Permits and Fees, Operating permits, 

Including the Prevention ofSignificant Deterioration 

I. Introduction 

The Air Pollution Control Division is petitioning the Air Quality Control Commission 

to adopt proposed changes to Regulation No.3. The pmpose oftheSe proposed 

changes is to correct exemptions and provide clarity to confusing regulatory 

provisions. 

Three revisions are proposed. The first are revisions to the "catchall" language 

contained in Part A.. sections 11.0.1 and II.D.4 as well as Part B sections ill.D. and 

m.D.5. These proposed changes do not warrant economic impact. analysis as they 

reorganize, clarify, and relax the APEN filing provisions and therefore will have no 

net adverse economic impact. The other two proposed revisions, however, are 

considered to be substantive and may be interpreted as more stringent than the 

original rule. As such, the changes could increase costs to the regulated community. 

For this reason, this economic impact analysis will address these two specific 

provisions ofthe proposed rulemaking: I) changes to oil and gas condensate storage 

tanks exemptions in Regulation No.3., Part A, section II.D.I.ddd., and Part C, section 

II.E.3.ddd.; and, 2) changes to crude oil and condensate loading truck equipment 

exemptions at crude oil production sites in Regulation No.3, Part A. section 

n.D.l.ee., and Part C, section n.E.3.ee. 

II. Requirements for EIA 

Section 25-7-110.5 (4)(a), C.RS. sets forth the requirements for initial and final 

Economic Impact Analysis, as stated below: 

"Before any pennanent rule is proposed pmsuant to this section, an initial 

economic impact analysis shall be conducted in compliance with this subsection 

(4) ofthe proposed rule or alternative proposed rules. Such economic impact 

analysis shall be in writing, developed by the proponent, or the Division in 

cooperation with the proponent and made available to the public at the time any 

request for hearing on a proposed rule is heard by the commission. A final 

economic impact analysis shall be in writing and delivered to the technical 

secretary and to all parties ofrecord five working days prior to the pre hearing 

conference. Ifno prehearing conference is scheduled, the economic impact 

analysis shall be submitted at least ten working days before the date ofthe rulemaking hearing. The proponent ofan alternative proposal will provide, in 

conjUnction with the Division, a final economic impact analysis five working days 

prior to the prehearing conference. The economic impact analyses shall be based 

upon reasonably available data. Except where data is not reasonably available, or 

.: 
as otherwise provided in this section, the failure to provide an economic impact 

analysis ofany noticed proposed rule or any alternative proposed rule will 

preclude such proposed rule or alternative proposed rule from being considered 

by the Commission. Nothing in this section shall be construed to restrict the 

Commission's authority to consider alternative proposals and alternative 

economic impact analyses that have not been submitted prior to the prehearing 

conference for good cause and so long as parties have adequate time to review 

them." 

Further, the statute lists those situations when no Economic Impact Analysis is 

needed. These can be found in C.R.S. section 25-7-110.5 (2), that states: . 

"The requirements ofsubsections (1) (c) to (1) (f), (3) (g), and (4) ofthis section 

shall not apply to any rule-making packet for any Commission rule, and the 

requirements ofsubsections (3) (g) and (4) ofthis section shall not apply to any 

Commission rule, which adopts by reference applicable federal rules or which 

rule is adopted to implement prescriptive state statutory requirements, where the 

Commission is allowed no significant policy-making options, or which rule will 

have no regulatory impact on any person, facility, or activity." 

m. Chaages Requiring Economic Impact Analysis 

The Division's review of the proposed rules shows that changes to the crude oil or 

condensate storage tanks and the crude oil or condensate truck loading equipment 

exemptions in regulation No. 3 will impose an economic cost on sources currently 

exempt from filing Air Pollutant Emissions Notices, obtaUiing a permit and paying 

the associated fees. Amendments to the "catchall" provisions of Regulation No. 3 do 

not cause an increase in compliance costs. 

IV. Methods of Analysis 

The statute further lists the methods available for performing the analysis required in 

C.R.S., section 25-7-110.5 (4)(c) as follows: 

"The proponent and the Division shall select one or more ofthe following 

economic impact analyses. The Commission may ask affected industry to submit 

infonnation with regard to the cost ofcompliance with the proposed rule, and, ifit 

is not provided, it shall not be considered reasonably available. The economic 

impact analysis required by this subsection (4) shall be based Upon reasonably 

available data and shall consist ofone or more ofthe following: 

Q) Cost-effectiveness analyses for air pollution control that identify: 

(A) The cumulative cost including but not limited to the total capital, 

operation, and maintenance costs ofany proposed controls for affected 

business entity or industry to comply with the provisions ofthe proposal; 

.~' 
(B) Any direct costs to be incmred by the general public to comply with 

the provisions ofthe proposal; 

(C) Air pollution reductions caused by the proposal; 

(D) The cost per unit ofair pollution reductions caused by the proposal; 

(E) The cost for the Division to implement the provisions ofthe proposal; 

or, 

(IT) Industry studies that examine the direct costs ofthe proposal on directly 

affected entities that may be either in the form ofa business analysis (The 

regulatory impacts on the general business climate or subsets thereof) or an 

industry analysis (the regulatory impacts on specific industries), including: 

(A) The characteristics and current economic conditions ofthe impacted 

business or industry sector; 

(B) The projected impacts on the growth ofthe affected industry sectors 

with and without implementation ofthe proposal; 

(C) How the proposal may effect or alter the growth ofthe affected 

industry sector; 

(D) The direct cost ofthe proposal on the affected industry sector; or, 

(Ill) An economic impact analysis that: 

(A) Identifies the industrial and business sectors that will be impacted by 

the proposal; 

(B) Quantifies the direct cost to the primary affected business or industrial 0 

sector; an~ 

(C) Incorporates an estimate ofthe economic impact ofthe proposal on the 

supporting business and industrial sectors associated with the primary 

affected business or industry sectors. 

In addition to the requirements listed above, the statute requires that economic impact 

analysis shall not consist ofan analysis ofany non-market costs or external costs asserted 

to occur notwithstanding compliance by a source with applicable environmental 

regulations (25-7-110.5 (4)(e), C.RS.). 

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V. Condensate Storage Tanks 

The proposed modifications pertaining to crude oil or condensate storage ta.Dks can be 


found in Regulation No.3, Part A in section nD.l.ddd., and in Part C in section 


n.E.3. ddd. 

In general, section II.D., ofPart A, lists categories of sources and activities that are 

exempt from Air Pollutant Emission Notice requirements. Similarly, Part C, section 

II.E.3., identifies sources and activities exempt from obtaining an operating permit. 

The intent of these sections is to identify sources that in all likelihood will always be 

below de minimis emission thresholds, thus removing the burden on the regulated 

community to estimate emissions for these categories. As mentioned, the PfQposed 

changes in question pertain to crude oil or condensate storage tanks. The Coimnission 

previously set this exemption at a storage capacity of40,000 gallons or less. It has .

! 

come to the attention ofthe Division that there are condensate tanks less than the 

40,000 gallon cut-ofIthat emit considerably more than the de minimis thresholds for I 

{C 

both criteria pollutants and hazardous pollutants due to '~ash emissions". In fact, j 

i recent information submitted to the Division with an application for a construction 

I permit r suggests emissions from some "exempf' facilities may exceed 100 tons per 


year ofVOCs. 


The proposed changes will eliminate the capacity-based exemption for condensate .f 

tanks and establish a 730 barrel per year throughput exemption at exploration and f 

production sites. On average this equates to approximately three to five tons per year I 

ofemissions. These changes will not affect facilities that have major source (Title V) i 

or synthetic minor source permits, as even under the previous exemption cutoff, they l 

would have had to report these emissions because ofthe "catch all" provisions" 'c ~ 

contained in Regulation No.3, Part A, Section II.D.4. Therefore, the only economic i

f impact ofthe proposed changes will be to true minor sources. 	 t

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Based on a preliminary meeting between the Division and the Colorado Oil and Gas l 

Association, there are estimated to be over 2000 oil and gas facilities and possibly as i 

f many 3,000 - 4,000 storage tanks that may be affected by these proposed provisions. 

Analysis: t

I 

The cumulative cost including, but not limited to, the total capital, operation, f 

and maintenance costs of any proposed controls for affected business entity or i 

industry to comply with the provisions of the proposal. I 

The economic impact will include: 	 t 

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• 	 Air Pollutant Emission Notice filiilg fees of$119.96 per tank or 

manifolded tanks; f'

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• 	 Permit processing fees of$59.98lhour, for tanks that are new or modified, 

the average permit processing time is estimated to be five hours; 

• 	 Annual fees of$i 7.97 per ton ofcriteria pollutant and $119.96 per ton of 

Hazardous Air Pollutant Thus, annual fees for a source emitting 4 

tons/year source would total about $721year; a 100 tons/year sources 

would be billed about $1,8001year for criteri~ pollutant emissions. 

• 	 The Division, as part ofthe implementation ofthese rules, will require a 

small subset ofthe facility population (facilities over 11,000 bbVyear) to 

perform sampling rather than use emission factors to calculate the 

emissions. The Division requested and received estimates ofthe associated 

sampling costs ofdetermining flashing VOC emissions from storage tanks 

from Colorado Oil and Gas Association. The cost breakdown is as 

follows: 

• 	 Extended high pressure liquid sample 

• 	 Retrofit equipment $500 

• 	 Sampling Tech $275 

• 	 Sample Analysis $200 

• 	 RVPSample 

• 	 Sampling Tech $65 

• 	 Sample Analysis $100 - $150 

• 	 API Gravity 

• 	 Sampling Tech $65 

• 	 Sample Analysis $40 

• 	 Evaluation 

• 	 Process Simulation $500 

Total $ 1,800 

The Division made a request to iridustry for reasonably available data 

reflecting costs ofgathering information needed for APEN filing. None ofthis 

has been provided to date. Therefore, this analysis is our best estimate ofthe 

economic burden. 

Direct costs to be incurred by the general public to comply with the provisions of 

the proposal: " 

None anticipated. 

Air pollution reductions caused by the proposal: 

None can be quantified at this time, but the proposal would help the Division to 

identify the location ofnumerous sources ofair pollution. 

;.". 
The cost per unit of air pollution reductions caused by the proposal: 

None anticipated. 

The cost for the Division to implement the provisions ofthe proposal: 

The permit processing and annual fees generated will cover the anticipated costs 

to the Division. 

VI. Crude on & Condensate Loading Truck Equipment at Crude on 

Production Sites . 

This modification pertaining to condensate loading truck equipment at crude oil 

production sites can be found in Regulation Reg. 3, Part A, section II.D.1.ee. and 

Part C, section II.E.3.ee. 

In general, the rule lists categories ofsources that are exempt from Air Pollutant 

Emission Notice requirements. The intention being to list sources that in all 

likelihood will always be below de minimis emission thresholds, thus removing 

the burden on the regulated community to estimate emissions for these categories. 

The Commission previously set the exemption for crude oil "and condensate 

loading equipment at a loading rate of 10,000 gallons per day, averaged over any 

30-day period. It has come to the attention ofthe Division that at these loading 

rates, VOC emissions for condensate loading could exceed 25 tons per year. 

Specifically, at 10,000 gallons per day, the emissions calculation from splash fill 

condensate truck loading (RVP 13 gasoline) is estimated to be 27.1 tons/yr. 

Emissions from truck loading using a submerged pipe is estimated to be 11.2 

tons/yr. Based on this information and discussions with the Division's permit 

engineers, the exemption for condensate truck loading is proposed to be set at 

6,750 barrels ofcondensate per year at splash fill sites, and 16,308 barrels per 

year at sites that use submerged fill. These exemption thresholds correspond to 

near 2 tons/year ofVOC emissions. The exemption for crude oil truck loading 

equipment is not proposed for change. 

Analysis: 

The cumulative cost including, but not limited to, the total capital, operation, 

and maintenance costs of any proposed controls for affected business entity 

or industry to comply with the provisions of the proposal. 

The economic impact will include: 

• 	 Air Pollutant Emission Notice filing fees of$119.96 per 

installation; 
• 	 Permit processing fees of$59. 98/hour, for new or modified 

sources; the average permit processing time is estimated to be 

five hours; 

• 	 Annual fees ofS17.97 per ton ofcriteria pollutant and $119.96 

per ton ofHazardous Air Pollutant. Thus, annual fees for a 

source emitting 2 tons/year would total about $36Jyear, a 100 

tons/year source would be billed about $1,800/year. 

• 	 The Division anticipates that a small number of sources (12­

20) will be affected by this proposed action. 

Direct costs to be incurred by the general public to comply with the 


provisions ofthe proposal: 


None anticipated. 


Air pollution reductions caused by the proposal: 


None anticipated, but the proposal would help the Division identify the location 


ofnumerous sources ofair pollution. 


The cost per unit of air pollution reductions caused by the proposal: 


None anticipated 


The cost for the Division to implement the provisions of the proposal: 


The permit processing and annual fees generated will cover the anticipated costs 


to the Division. 

~~ . STATE SERVICES BUILDING STATE OF COLORADO Attorney General 1525 Sherman Street - 5th Floor 

DEPARTMENT OF LAW Denver Colorado 80203 

ClnusnNE M. ARGUELLO Phone 303)8~500 

OaiefDeputy Attorney General FAJ< r303)8~5691 OmaOFmE ATTORNEY GENERAL 


ALAN J. GILBERT 
 . Solicitor General 

OPINION OF THE ATTORNEY GENERAL RENDERED IN 


CONNECfION WITH THE RULES ADOPTED BY 


COLORADO AIR QUALITY CONTROL COMMISSION 


ON OCfOBER 17, 2002 


CONCERNING REGULATION NO.3 ­

AIR CONTAMINANT EMISSIONS NOTICES 


[5 C.C.R. 1001-5] 


The. above-referenced rules were submitted to this office on October 17, 2002, as required by 

§ 24-4-103, c.R.S. (2(02). This office has reviewed them and finds no apparent 

constitutional or legal deficiency in their form or substance. 

'-" DATE: Z'f, un> L­
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DEPARTMENT OF PUBLIC 


HEALTH AND ENVIRONMENT 


AIR QUALITY CONTROL COMMISSION 

REGULATION No.3 


AIR CONTAMINANT EMISSIONS NOTICES 


5 CCR 1001-5 

EDITOR'S NOTES~ 

Authority Cited: 

Article 7 of litle 25, C.R.S. 


History and Amendments: 


Amended 1/12178,1 CR 2. Repealed and readopted 12/14n8, 2 CR 1. pp. 7-8.01 adopted 


as emergency regulation 6nn9, 2 CR 7. P. 12 approved 7112179,2 CR 8. Pp.1-26 


repromulgated 6/5180, effective 7130/80, 3 CR 7. Pp. 7-8.25 adorxed 5113/82, effective 


6/30/82, 5 CR 6. Pp. 1-52 adorxed 3/10/83, effective 4/30/83,6 CR 4. Pp. 34-60 adopted 


217185. EFFECTIVE 3/30185.8 CR 3. pp. 1-61 adopted 3/20186, effective 4/30/86,9 CR 4. 


Pp. 21-22 reissued due to clerical error b~ Department of Health. 9 CR 7. Pp. 1-58 adopted 


3/19/87. effective 4130/87. 10 CR 4. Pp. 59-63 ad opted 11/19/87, effective 12130/87, 


10 CR 12. P. 42 adopted as emergency regulation 6116/88, effective 6/16188. 11 CR 7. 


Pp. 1-74 adopted 8/18/88, effective 9130/88, 11 CR 9. Pp. 48-49 adopted 9/15/88, effective 


10130188; p. 48E adopted as emergency regulation 9/20/88, effective 9120188, 11 CR 10. 


P. 49 adopted as emergency regulation 611/89, effective 6/1/89; p. 50 adopted as emergency 

regulation 6/15/89. effective 6/15189.12 CR 7. P. 50 adopted as emergency regulation 

9/21/89, effective 9121189, 12 CR 10, pp. 1-74 adopted as emergency regulation 1/18190, 

A. G. Opinions: 

1 AG 129; 2AG 15; 2 AG 162; 3 AG 187; 5 AG 150; 6 AG 110-111; 8 AG 52; 9AG 88; 

9 AG 193; 10AG 101; 10AG 359; 11 AG 206; 11 AG271; 11 AG 318-319; 12 AG 215-216; 

Annotations: 

Colorado-Ute Electric Association v. Air Pollution Control CommisSion, Colorado Court of 

Appeals No. 77-662, November 27. 1981, held that the Air Pollution Control Commission 

did not have statutory authority to issue section II.H.1 of Air Pollution Control Commission 

Regulation NO.3 (5 CCR 1001-5) goveming the issuance of air contaminant emission. 

pemits. 

*This Title Page does not constitute an official part of any regulation. Information contained on the Title Page is provided by the 

Publisher from sources deemed reliable and is solely for informational and historical purposes. See cautionary note in Introductorv 

Materials, How to Use the CCR. . 

C 2002 DAlLY JOURNAL CORPORATION. ALL RIGHTS RESERVED. (303) 222·3200 
EDITOR'S NOTES (continued) 

History and Amendments: 

13 CR 2. Pp. 1-78 adopted 5/17/90, effective 6/30/90, 13 CR 6. Pp. 1-75 adopted 10/17/91, effective 

11130191, 14 CR 11. Pp. 1-36 adopted 8120/92, effective 9/30/92, 15 CR 9. Pp. 76-93 adopted as emergency regulation 10/15/92, effective 10/15192, 15 CR 11. Pp.1-75 adopted 11/19/92, effective 12130192, 

15 CR 12. Pp. 1-142 adopted 6122193, effective 8/30/93,16 CR 8. Pp. 1-236 adopted 7/15/93, effective 

9/30/93, 16 CR 9. Pp. 11-15, 25-31,62-63,67-70,95-97 adopted 2117/94, effective 4130194; p. 48 adopted 

3/17/94, effective 4/30/94,17 CR 4. Pp.141-142 adopted as emergency regulation 5/19/94, effective 

5/23/94,17 CR 7. Pp. 1-220 adopted 8118194, effective 9/30194, 17 CR 9. Pp. 48-60 adopted 10/20194. effective 12/30/94,17 CR 12. Pp. 25-27, 39-43, 125-126, 128-128.02 adopted 11/17194, effective 1130/95, 

i 18 CR 1. Pp. 73,80-81 adopted as emergency regulation 12115/94. effective 12115195, 18 CR 2. Pp.73-74 

adopted 2116195, effective 2116195, 18 CR 4. Pp. 5-6,9-14, 16-22,24-25,28-30, 42-44,49-50.56-56.01,62-66, 

75-76,78-80,83-87,97-98,100-100.02 adopted 3/16/95, effective 5130195, 18 CR 5. Pp. 45, 73.01, 76-77, 78­

~:-aclJ~~ 5/18/95, effective 7/30/95, 18 CR 7. Pp. 1-25,46-56, 78-95.01, 104-106. 110-111.01 adopted 

IS/17/95, effective 10/30/95, 18 CR 10. Pp. 20-24,30-31.96-98 adopted 12121/95, effective 3/1196,19CR 2. 

p. 4-45 adopted 2115/96, effective 4/30196,19 CR 4. pp. 4, 41,41.02-45.75.01-76,80-82,125-128.02 

adopted 3/21196, EFFECTIVE 5130196,19 CR 5. Pp. 3-5,25-26,50,64.01-66,76,119,145,147-149,157-158, 

168-169, 179,184-185,201-202,207-208 adopted 6/20/96, EFFECTIVE 8130196, 19 CR 8. Pp.48-63.05 

adopted 10124196, EFFECTIVE 12130196,19 CR 12. Pp. 165-209 adopted 11121/96, EFFECTIVE 1130197, 

[20 CR 1. Pp. 119-157,227-229 adopted 11118199, EFFECTIVE 1/30100,23 CR 1. Pp.118.01-118.02 


AdoPted 11/15101, EFFECTIVE 12130/01, 24 CR 12. Pp. 73-118.06, 144-146.01,230-234 adopted 2121102, 


j
EFFECTIVE 4130/02. 25 CR 4. 

AG. Opinions: 

12AG341; 13AG 51-52; 13 AG 176; 14AG 360; 15 AG 361-361A; 15AG455; 15 AG 508; 16AG275; 

16 AG 306; 17 AG 140-141; 17 AG 269; 17 AG 348; 17 AG 480; 18 AG 30; 18 AG 77; 18 AG 140; 18AG 180; 

18 AG 251; 18AG 364; 19 AG 52; 19 AG 111; 19 AG 125-126; 19 AG 236-237; 19 AG 380; 20AG 19; 

23 AG 8; 24 AG 363; 25 AG 120 

Annotations: 

Rule IV, H.6, adopted 5/17190, was not extended by H.B. 91-1257 and therefore expired June 1,1991. 

~' 

I 

5 CCR 1001-5 

EDITOR'S NOTES (continued) 

History and Amendments: 


pp.I-260adopted 7118/02, EFFECTIVE 9130/02, 25 CR 9. pp. 1-275 adopted 10/17/02, EFFECTIVE 12130/02,25 CR 12. 


Regulation I.A adopted 03121103, EFFECTIVE 04130/03,26 CR 4. 


A.G. Opinions: 


25 AG 312; 25 AG 431; 26 AG 162 


Aoootations: 

02003 Well Publishing for the State ofColorado 


AD Rights Reserved. (800) 877-WElL Page 3 5 CCR 1001-5 

EDITOR'S NOTES (continued) 

History and Amendments: 


pp. 1-260 adopted 7118/02, EFFECTIVE 9/30/02,25 CR 9. 


A.G. Opinions: 

25 AG 312 

Annotations: 

@ 2002 Wei! Publishing for the State of Colorado 

All Rights Reserved. (800) 877-WEIL Page 3 5 CCRlOOl-S 
EDITOR'S NOTES (continued) 

History and Amendments: 


pp. 1-260 adopted 7118/02, EFFECfNE 9/30/02, 25 CR 9. pp. 1-275 adopted 10/17/02, EFFECTNE 12/30/02, 


25 CR 12. 


A.G. Opinions: 


25 AG 312; 25 AG 431 


Annotations: 

~~--------------~ 

c 2002 Well Publishing for the State of Colorado 


All Rights Reserved. (800) 877-WEIL Page 3 5 CCR 1001-5 

Table ofContents 

PART A CONCERNING GENERAL PROVISIONS APPUCABLE TO 


CONSTRUCTION PERMITS AND OPERATING PERMITS .....................................1 


I. 	 APPLICABILITY ...........................................................................................................1 


n. 	 AIR POLLUTANT EMISSION NOTICE (APEN) REQUIREMENTS ......................28 


m. 	 ADMINISTRATIVE PERMIT AMENDMENT PROCEDURES .............................. .42 


IV. 	 OPERATIONAL FLEXIBILITY ...... : ........................................................................... 43 


y. 	 CERTIFICATIONAND TRADING OFEMISSION REDUCTION CREDITS 


OFFSETAND NErrING TRANSACTIONS.................................................................44 


VI. 	 FEES..............................................................................................................................59 


VII. 	 CONFIDENTIAL INFORMATION OR DATA CONTAINED IN AIR 


POLLUTANT EMISSION NOTICES. PERMIT APPUCATIONS. OR 


REPORTS SUBMITTED PURSUANT TO PART C. SECTION V.C.6 .....................61 


VIII. 	 TECHNICAL MODELING AND MONITORING REQUIREMENTS ......................62 


PART B CONCERNING CONSTRUCTION PERMITS INCLUDING REGULATIONS 


FOR THE PREVENTION OF SIGNIFICANT DETERIORATION (PSD) ................67 


L APPLICABILITY .........................................................................................................67 


fi. RESERVED ..................................................................................................................67 


m. 	 GENERAL REQUIREMENTS FOR CONSTRUCTION PERMITS ..........................67 


IV. 	 CONSTRUCTION PERMIT REVIEW PROCEDURES .............................................71 


V. 	 AREA CLASSIFICATIONS ........................................................................................91 


VI. 	 REDESIGNA TION .......................................................................................................93 


VII. 	 AIR QUALITY LIMITATIONS ...................................................................................95 


VIII. 	 EXCLUSIONS FROM INCREMENT CONSUMPTION ............................................98 


IX. 	 INNOVATIVE CONTROL TEClINOLOGY ..............................................................98 


X. 	 FEDERAL CLASS I AREAS .....................................................................................100 


XI. 	 VISmILITY ................................................................................................................103 


PART C CONCERNING OPERATING PERMITS ...................................................................109 


I. APPUCABILITY .......................................................................................................109 


fi. GENERAL REQUIREMENTS FOR OPERATING PERMITS ................................109 


m. 	 OPERATING PERMIT APPUCATION REQUIREMENTS ....................................119 


IV. 	 PROCESSING OF APPUCATIONS .........................................................................124 


V. 	 OPERATING PERMIT ISSUANCE. RENEWALS AND MODIFICATIONS ........126 


VI. 	 PUBLIC PARTICIPATION REQUIREMENTS ........................................................134 


VII. EMERGENCY PROVISIONS ....................................................................................137 


VDI. GENERAL OPERATING PERMITS .........................................................................137 


IX. 	 REVIEW BY AFFECTED STATES ..........................................................................139 


X. 	 MINOR PERMIT MODIFICATION PROCEDURES ...............................................140 


XI. 	 PROCEDURES FOR GROUP PROCESSING OF MINOR PERMIT 


MODIFICATION APPLICATIONS ..........................................................................142 


XU. OPERATIONAL FLExmILI1'Y ................................................................................145 


xm. REOPENING FOR CAUSE OF PERMITS ISSUED PURSUANT TO PART C .....146 


XIV. 	 COMPLIANCE ASSURANCE MONITORING .......................................................147 


APPENDIX A ..............................................................................................................................150 


APPENDIX B ..............................................................................................................................152 


PARTD 	STATEMENTS OF BASIS. SPECIFIC STATUTORY AUTIIORITY AND 


PURPOSE .......................................................................................................................1 


II) 2002 Well Publishing for the State of Colorado. 


All Rights Reserved. (800) 877-WEIL 5 CCR 1001-5 

Colorado Air Quality Control Commission 

Regulation No.3 

Rulemaking Chronology 

Action 	 Adoption Date 

Amended 

Repealed & Readopted 

Emergency Adoption 617179 

Re-promulgated 615180 

5/13182 

3710/83 

217/85 

3120186 

3119187 

11119/87 

EmeJgency Adoption 	 6116/88 

8/18/88 

9115/88 

EmelQency Adoption 9120/88 

Emergency Adoption 611189 

Emergency Adoption 6/15/89 

EmerQeney Adoption 9/21/89 

Emergency Adoption 1/18190 

5/17190 

10/17191 

Long term strategy repOrt 8/20192 

Emergency Adoption 10/15/92 

Ensure regulation conforms with EPA rules 11/19/92 

Revise exemption list 6/22193 

Operating permit program implementation 7/15/93 

2117194 

3117194 

Emergency Adoption 5/19194 

Revisions to operating permit program 8/18/94 

10120/94 

11117194 

Ememency Adoption 12115194 

2116/95 

Clarify State Implementation Plan provisions 3116195 

Synthetic minor permit 5118195 

Replace TSP increment with PM-10 increment 8/17195 

12121195 

2115/96 

3121196 

6120/96 

10124/96 

11121196 

11/18/99 

7/18/02 

Amended 	 10117/02 

Effective Date 

1/12178 

12114178 

7/12179 

7/30/80 

6130/82 

4/30/83 

3130185 

4/30/86 

4130/87 

12130187 

6116/88 

9130188 

10130188 

9120/88 

611/89 

6/15/89 

9121189 

1/18190 

6I30I90 

11130191 

9130192 

10/15192 

12130192 

8/30193 

9130193 

4130194 

4/30194 

5123194 

9/30194 

12130/94 

1130195 

12115194 

2116/95 

5130195 

7130195 

10130/95 

311/96 

4130196 

5130/96 

8130196 

12130196 

1130197 

1131/00 

9/30/02 

12130102 

J 


5 CCR 1001-5 	 ii 
TABLE OF CONTENTS 

~ ~ ~ 

PART A 

Applicability I 1 


Air Pollutant Emission Notice (APEN) Requirements II 31 


Administrative Permit Amendment Procedures III 45 


Operational Flexibility IV 46 


Certification and Trading ofEmission Reduction Credits, 


Offset and Netting Transactions V 48 


Fees VI 64 


Confidential Information or Data Contained in APENs, 


Permit Application or Reports Submitted pursuant to 


Section V.C.6., Part C VII 66 


Technical Modeling and Monitoring Requirements VIII 67 


PARTB 

Applicability I 73 


(Reserved) II 73 


General Requirements for Construction Permits III 73 


Construction Permit Review Procedures IV 78 


Area Classificaions V 101 


Redesignation VI 102 


Air Quality Limitations VII 104 


.., 

Exclusions from Increment Consumption VIII 107


Innovative Control Technology IX 108 


Federal Class I Areas X 110 


Visibility XI 113 


PARTe 

Applicability I 119 


General Requirements for Operating Permits II 119 


Operating Permit Application Requirements III 129 


Processing of Applications IV 134 


Operating Permit Issuance, Renewals and Modifications V 136 


Public Participation Requirements VI 143 


Emergency Provisions VII 146 


General Operating Permits VIII 147 


Review by Affected States IX 149 


Minor Permit Modification Procedures X 149 


Procedures for Group Processing of Minor Pmnit 


Modification Applications XI 152 


Operational Flexibility XII 155 


5 CCR 1001-5 

TABLE OF CONTENTS--con/ 'd 

Reopening for Cause of Permits Issued Pursuant 

to Part C 

Compliance Assurance Monitoring 

XIII 

XIV 

Appendix A ­ Method for Determining De Minimus 

Levels for Non-Criteria Reponable Pollutants 

Appendix B - 1993 Reponable Pollutants 

Appendix C -1994 (and Subsequent Years) Reportable Pollutants 

Appendix D - (Sorted by BIN) 

PARTD 

Statements of Basis. Specific Statutory Authority and Purpose 

. f','. 

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156 

157 

163 

165 

177 

199 

210 

5CCR 1001-5 

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All Rights Reserved 

PART A 


CONCERNING GENERAL PROVISIONS APPUCABLE TO CONSTRUcnON PERMITS 


AND OPERATING PERMITS 


I. 	 APPUCABILITY 

I.A 	 The provisions ofthis Part A shall apply statewide to all sources of air pollutants 

except as otherwise provided herein. 

All sources of air pollutants that have previously obtained an emissions permit (prior 

to July I. 1992) or a construction permit, and are subject only to the Part B 

Construction Permit Program. may choose to reapply for a new construction permit 

pursuant to Part B oftbis Regulation No.3 in order to obtain the operational 

flexibility provided in section IV., of this Part A, or to obtain federally enforceable 

limitations to limit the source's potential to emit ("synthetic minor"). Sources of air 

pollutants that are subject only to the Part B Construction Permit Program may 

voluntarily apply for an Operating Permit pursuant to Part C. 

Pursuant to Colorado Revised Statutes section 24-4-103 (12.5), materials 

incorporated by reference are available for public inspection during normal business 

hours, or copies may be obtained at a reasonable cost :from the Technical Secretary of 

the Air Quality Control Commission (the commission), 4300 Cheny Creek Drive 

South, Denver, Colorado 80246-1530, or may be examined at any State Publications 

Depository Library. Materials incorporated by reference are those editions in 

existence as ofthe date this regulation is promulgated or revised by the commission 

and references do not include later amendments to or editions ofthe incorporated 

materials. . 

lB. 	 Definitions 

1.B.t. 	 Actual Emissions 

The actual rate ofemission ofa pollutant :from an emissions unit, determined as 

follows: 

1.B.I.c. 	 Actual emissions as ofa particular date shall equal the avemge rate, in tons per year, 

at which the unit emitted the pollutant during a two-year period that precedes the 

particular date and is representative ofnormal unit operation. A different period may 

be used ifit is more representative ofnormal unit operation. Actual emissions shall 

be calculated using actual operatinghours, production rates.. and types ofmaterial 

stored or combusted or actual emission data during the selected time period; 

1.B.I.a. 	 The division may presume that source-specific allowable emissions for the 

unit are equivalent to the actual emissions ofthe unit only ifactual emissions 

cannot be determined pursuant to section LB.I.c., above; 

lB.1.b. 	 For any emissions unit (other than an electric utility steam generating unit 

specified in section LB.69.e. that has not begun normal operations on the . 

particular date, actual emissions shall equal the potential to emit ofthe unit on 

that date. 

CODE OF COLORADO REGULATIONS 5CCR 1001-5
Page 2 

I.B.I.c. 	 For an electric utility steam generating unit (other than a new unit or the 

replacement ofan existing unit) actual emissions ofthe unit following the 

physical or operational change shall equal the representative actual annual 

emissions ofthe unit, provided the source owner or operator maintains and 

submits to the division on an annual basis, for a period of five years from the 

date the unit resumes regular operation, information demonstrating that the 

physical or operational change did not result in an emissions increase. A 

longer period, not to exceed ten years. may be required by the division ifit 

detennines such a period to be more representative ofnormal source post· 

change operations. 

I.B.2. Administrator 

The administrator ofthe U.S. Environmental Protection Agency (U.S. BP A). 

I.B.3. Adverse Environmental Effect 

As a term used in the context ofregulating hazardous air pollutants any significant 

and widespread adverse effect, that may reasonably be anticipated, to wildlife, aquatic 

life. or other natural resources, including adverse impacts on populations of 

endangered or threatened species or significant degradation ofenvironmental quality 

over broad. areas. 

I.B.4. Affected states 

All states whose air quality may be affected by issuance ofan operating permit, 

operating permit modification, or operating permit renewal and that are contiguous to 

Colorado; and/or all states that are within fifty miles ofa permitted source. 

I.B.S. Affected Unit 

A unit that is subject to any acid rain emissions reduction requirement or acid rain 

emissions limitation pursuant to Title IV ofthe Federal Act or regulations 

promulgated thereunder, in the Code ofFederal Regulations Title 40, Part 72. 

LB.6. Air Pollutant 

Means carbon monoxide. nitrogen oxides, sulfur dioxide, PM1o. total sUspend~ 

particulates, ozone, volatile organic compounds, lead, all pollutants regulated under 

section 111 ofthe Federal Act (Regulation No. 6), all hazardous air pollutants, and an 

class I and class nozone depleting compounds as defined and referenced in section 

602 ofthe Federal Act. 

LB.7. Air Quality Related Value (for purposes ofPart B - Construction Permit Program) 

AJJy value ofan area that may be affected by a change in air quality. Examples 

include flora, fauna, soil, water, visibility, cultut:al, and odor. 

I.B.S. Allowable Emissions 

Regulation No.3 	 Part A, Page 2 

CODE OF COLORADO REGULATIONS 
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The emissions rate calculated using the maximum rated capacity ofthe source (unless 

the source is subject to enforceable permit conditions that limit the operating rate or 

hours of operation, or both) and the most stringent ofthe following: 

I.B.8.a. The applicable standards promulgated pursuant to the Federal Act for new 

source performance or hazardous air pollutants; 

I.B.8.b. The applicable Colorado Emission Control Regulation; or 

I.B.8.c. The emissions rate specified as an enforceable permit condition. 

LB.9. Applicable Requirement 

Means all of the following as they apply to emissions units in a source subject to 

operating permit requirements ofthis regulation (including requirements that have 

been promulgated or approved by the U.S. EPA through rulemaking at the time of 

permit issuance but have future effective compliance dates); 

1.B.9.a. 	 Any term or condition ofany construction permit issued pursuant to Part B of 

this Regulation No.3, or any such term or condition as modified by 

procedures authorized by the operating permit program pursuant to Parts B 

and C of this Regulation, or any permit issued under Part C or Part 0 of the 

Federal Act, except that state-only permit terms or conditions shall remain 

enforceable solely pursuant to state law; 

I.B.9.b. 	 Any standard or other requirement provided for in the state implementation 

plan; 

I.B.9.c. 	 Any standard or other requirement under section 111 ofthe Federal Act (New 

Source Performance Standards), including section 111(d) ofthe Federal Act 

(Standards ofPerformance for existing sources) (Regulation No.6); 

I.B.9.d. 	 Any standard or other requirement under section 112 ofthe Federal Act 

(hazardous air pollutants, including any requirement concerning accident 

prevention under section 112(r)(7) of the Federal Act (Regulation No.8» but 

not including the contents ofany risk management plan required under section 

tI2(r) ofthe Federal Act; 

LB.9.e. 	 Any requirements for monitoring and compliance assurance monitoring 

methods and procedures to ensure compliance with permit requirements, 

including periodic monitoring and testing, and compliance certifications, 

established pursuant to sections 504(b) or 114(a)(3) of the Federal Act; 

I.B.9.f. 	 Any standards or other requirement under the Code of Federal Regulations 

Title 40, Part 72 (acid deposition control); 

lB.9.g. 	 Any standard or other requirement governing solid waste incineration; 

1B.9.h. 	 Any standard or other requirement for consumer and commercial products; 

Regulation No.3 	 Part A, Page 3 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 4 

1.B.9.i. Any standard or other requirement ofthe regulations promulgated to protect 

stratospheric ozone under Title VI ofthe Federal Act, except where the 

Administrator has determined such requirement need not be contained in an 

operating permit (Regulation No. 15)~ 

I.B.9.j. Any national ambient air quality standard or increment or visibility 

requirement under Part C ofTitle I ofthe Federal Act, but only as it would 

apply to temporary sources permitted pursuant to Part C ofthis Regulation 

No.3. 

I.B.IO. Baseline Area (for purposes ofPart B - Construction Pennits Only) 

l.B.lO.a. 	 Any intrastate area (and every part thereof) designated as attainment or 

unclassifiable under sections 107(d)(l)(D) or (E) ofthe Federal Act in which 

the major source or major modification establishing the minor source baseline 

date would construct or would have an air quality impact equal to or greater 

than one microgram/cubic meter (Jlglm3

) (annual average) ofthe pollutant for 

which the minor source baseline date is established. 

I.B.lO.b. 	 Any baseline area established originally for the total suspended particulate 

increments shall remain in effect and shall apply for purposes ofdetermining 

the amount ofavailable PMlO increments, except that such baseline area shall 

not remain in effect ifthe permit authority rescinds the corresponding minor 

source baseline date in accordance with section lB.3S.c. 

1.B.II. Baseline Concentration 

The ambient concentration level that exists in the baseline area at the time ofthe 

applicable minor source baseline date. A baseline concentration is determined for 

each pollutant for which a minor source baseline date is established and shall include: 

lB.ll.a. 	 The actual emissions representative ofsources in existence on the applicable 

minor source baseline date, except as otherwise provided in this definition; 

and 

lB.ll.b. 	 The allowable emissions from major stationary sources and major 

modifications that commenced construction before the major source baseline 

date, but were not in operation by the applicable minor source baseline date 

(for purposes ofPart B - Construction Permit Program). 

I.B.ll.c. 	 The following will not be included in the baseline concentration and will 

affect the applicable maximum allowable increase(s): 

l.B.ll.c.(i) Actual emissions from any major stationary source or major modification 

on which construction commenced on or after the major source baseline 

date; and 

1.B.ll.c.(ii) 	 Actual emission increases and decreases at any stationary source occurring 

after the minor source baseline date. 

Regulation No.3 	 Part A, Page 4 

5 CCR 1001-5 	 CODE OF COLORADO REGULATIONS 

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I.B.12. 


I.B.l3. 

I.B.14. 


Best Available Control Technology 

An emission limitation (including a visible emissions standard) based on the 

maximum degree ofreduction of each air pollutant subject to regulation under the 

Federal Act that would be emitted from any proposed major stationary source or 

major modification that the division or commission, on a case-by-case basis, taking 

into account the duration ofthe source or modification and energy, environmental, 

and economic impacts and other costs, detennines is achievable for such source or 

modification through application ofproduction processes or available methods, 

systems, and techniques, including fuel cleamng"t>r treatment or innnvative fuel 

combustion techniques for control ofsuch air pollutant. In no event shall application 

ofthe best available control technology result in emissions of any air pollutants that 

would exceed emissions allowed by the applicable standards in the Code of Federal 

Regulations, Title 40, Parts 60 and 61 (Regulations Nos. 6 and 8) as in effect on the 

effective date ofthis clause, but not including later amendments, unless such 

amendments are specifically incorporated by reference in accordance with the 

provisions ofColorado Revised Statutes section 24-4-103 (12.5). 

Infonnation as to the availability ofsuch standards may be obtained from the 

Director, Air Pollution Control Division, Colorado Department ofPublic Health and 

Environment, 4300 Cherry Creek Drive South, Denver, Colorado 80246-1530. Ifthe 

division or commission detennines that technological or economic limitations on the 

application ofmeasurement methodology to a particular emissions unit would make 

the imposition ofan emissions standard infeasible, it may instead prescribe a design, 

equipment, work practices, operational standard or combination thereof, to satisfy the 

requirement for the application ofbest available control technology. Such standard 

shall, to the degree possible, set forth the emissions reduction achievable by 

implementation ofsuch design, equipment, work practice or operation and shall 

provide for compliance by means that achieve equivalent results. 

Commenced Construction 

When the owner or operator has obtained all necessary pre-construction approvals or 

permits required by federal, state, or local air pollution and air quality laws and 

regulations and has either; (a) begun, or caused to begin, a continuous program of 

physical onsite construction ofthe source, or (b) entered into binding agreements or 

contractual obligation that cannot be cancelled or modified without substantial loss to 

the owner or operator, to undertake a program of actual construction ofthe source to 

be completed within a reasonable time. The following activities do not require the 

owner or operator to obtain a pennit: 1) planning; 2) site clearing and grading; 3) 

ordering ofequipment and materials; 4) storing of equipment; 5) setting up temporary 

trailers to house construction management staff and contractor personnel; 6) 

engineering and design; and 7) geotechnical investigation. In the event that the 

source does not qualify for issuance of a pennit, the owner or operator accepts the 

financial risk of commencing these activities. 

Commencement ofOperation 

Regulation No. 3 	 Part A, Page 5 

CODE OF COLORADO REGULATIONS 5 CCR 1001-5
Page 6 

A new source commences operation when it first conducts the activity that it was 

designed and permitted for (i.e., producing cement or generating electricity). 

1.B.1S. Complete (For purposes ofthe Prevention ofSignificant Deterioration program) 

In reference to an application for a permit, an application that contains all the 

information necessary for processing the application. Designating an application 

complete for purposes of permit processing does not preclude the division from 

requesting or accepting any additional information. 

LB.lS.a. 	 At a minimum, a complete application for a permit to construct a major source 

or major modification subject to the requirements of Regulation No.3, section 

IV.D.3., PartB, shall include: 

LB.IS.a.(i) 	 All monitoring data required pursuant to this regulation and an analysis of 

ambient air quality in accordance with section IV.D.3.a.(iii), Part B; 

I.B.lS.a.(ii) 	 The impact analysis required by section IV.D.3.a.(ii), Part B, a written 

summary ofthe data inputs to the model and a topographic presentation of 

the resultant concentrations of each pollutant modeled for each applicable 

ambient standard or Prevention of Significant Deterioration increment 

within the impact area of the source; 

LB.IS.a.(iii) 	 A report ofthe regulatory status ofthe model pursuant to section 

VllI.A.l., Part A; 

LB.1S.a.(iv) 	 A demonstration that the proposed technological system ofcontinuous 

emission reduction that is to be used will enable such source to comply 

consistently with the standards ofperformance that are to apply to such 

source and that the emission inputs to the model for the impact analysis 

are equivalent to the emissions allowed by such standards ofperformance; 

I.B.lS.a.(v) 	 A description ofthe devices or systems that will be installed to monitor 

the emissions of each pollutant that will be emitted in significant amounts, 

maintaining such devices or systems, and the schedule and format for 

reporting the results ofsuch emission monitoring to the division; 

LB.1S.a.(vi) 	 The additional impact analysis required by section IV.D.3.a.(vi), Part B; 

any demonstration of facts needed to establish a claim by the applicant to 

qualifY for any exemption or exclusion under section IV.D.3.b., Part B; 

l.B.lS.a.(vii) 	 A schedule of construction in accordance with section IV.GA., Part B; 

I.B.1S.a.(viii) 	An additional copy ofthe application for the federal land manager of each 

affected Class 1 area, for the U.S. EPA, for the county commissioner, and 

for public notice (county clerk). Two additional copies shall be submitted 

for interested public groups. 

I.B.16. Reserved 

Regulation No.3 	 Part A, Page 6 J 

5 CCR 1001-5 	 CODE OF COLORADO REGULATIONS 

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I.B.17. 

I.B.18. 

I.B.19. 

I.B.20. 

I.B.21. 

I.B.22. 

I.B.23. 

I.B.24. 

Construction Permit 

Means the same as an emission permit as required under Part B ofthis regulation as it 

existed prior to July I, 1992 and is the permit required under Colorado Revised 

Statutes section 25-7-114.2, after July I, 1992. 

Designated Representative 

Means a responsible natural person authorized by the owners and operators of an 

affected source and of all affected units at the sov.rce, as evidenced by a certificate of 

representation submitted in accordance with Subpart B ofCode ofFederal 

Regulations, Title 40, Part 72, to represent and legally bind each owner and operator, 

as a matter oflaw, in matters pertaining to the acid rain program. Whenever the term 

responsible official is used, it shall be deemed to refer to the designated representative 

with regard to all matters under the acid rain program. 

Draft Permit 

Means a proposed form ofa permit that is released to the public for an opportunity for 

public comment and hearing, and for affected state review prior to the division's final 

decision on a permit application. 

Emissions Allowable Under the Permit 

Means: (a) a federally-enforceable term or condition that is determined at the time of 

permit issuance to be required by an applicable requirement that establishes an 

emission limit (including a work practice standard); or (b) a federally enforceable 

emissions cap that the source has assumed in order to avoid an otherwise applicable 

requirement. 

Reserved 

Federal Land Manager (FLM) 

With respect to any lands ofthe United States, the secretary ofthe department with 

authority over such lands. 

Reserved 

Fugitive Dust 

For purposes ofRegulation No.3 fugitive dust means soil or other airborne 

particulate matter (exclUding particulates produced directly during combustion) 

resulting from natural forces or from surface use or disturbance, including, but not 

limited to, ail dust from agriculture, construction, forestry, unpaved roads, mining, 

exploration, or similar activities in which earth is either moved, stored, transported, or 

redistributed; except that fugitive dust shall not include any fraction ofsuch soil or 

other airborne particulate matter that is ofa size or substance to adversely affect 

public health or welfare. 

Regulation No.3 Part A, Page 7 

CODE OF COLORADO REGULATIONS 5 CCR 1001-5
Page 8 

1.B.25. 	 Reserved 

1.B.26. 	 General Pennit 


Means a single pennit issued to cover numerous similar sources. 


1.B.27. 	 Reserved 

I.B.28. Reserved 


1B.29. Reserved 


I.B.30. 	 Reserved 

1B.31. 	 Reserved 

1B.32. 	 Innovative Control Technology 

Any system of air pollution control that has not been adequately demonstrated in 

practice, but would have a substantial likelihood of achieving greater continuous 

emissions reduction than any control system in current practice or of achieving at 

least comparable reductions at lower cost in tenus ofenergy, economics, or non-air 

quality environmental impacts. 

1B.33. 	 Lowest Achievable Emissions Rate (LAER) 

For any source, the more stringent rate of emissions based on the following: 

LB.33.a. 	 The most stringent emission limit contained in any state implementation plan 

for such class or category ofstationary source, unless the owner or operator of 

the proposed stationary source demonstrates that such limits are not 

achievable; or 

1.B.33.b. 	 The most stringent emission limitation that is achieved in practice or can 

reasonably be expected to occur in practice by such class or category of 

source, taking into consideration the pollutant that must be controlled. In no 

event shall a source emit any pollutant in excess ofthe amount allowable 

under an applicable new source perfonnance standard (Regulation No.6). 

I.B.34. 	 Major Source Baseline Date 

1.B.34.a. 	 In the case ofparticulate matter and sulfur dioxide, January 6, 1975; and 

I.B.34.b. 	 In the case ofnitrogen dioxide, February 8, 1988. 

1.B.35. 	 Minor Source Baseline Date 

I.B.35.a. 	 The earliest date after the trigger date that a major stationary source or a major 

modification subject to the requirements ofRegulation No.3, Part B, section 

Regulation No.3 	 Part A, Page 8 J 

5 CCR 1001-5 	 CODE OF COLORADO REGULATIONS 

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N.D.3. or Code of Federal Regulations, Title 40, Part 52.21, submits a 

complete application under the relevant regulations. The trigger date is: 

I.B.35.a.(i) In the case of particulate matter and sulfur dioxide, August 7, 1977; and 

I.B.35.a.(ii) In the case of nitrogen dioxide, February 8, 1988. 

I.B.35.b. 	 The baseline date is established for each pollutant for which increments or 

other equivalent measures have been established if: 

I.B.35.b.(i) 

I.B.35.b.(ii) 

The area in which the proposed source or modification would construct is 

designated as attainment or unc1assifiable under sections 107(d)(1)(D) or 

(E) of the Federal Act for the pollutant on the date ofits complete 

application under Regulation No.3, Part B, section N.D.3.; and 

In the case of a major stationary source the pollutant would be emitted in 

significant amounts, or, in the case ofa major modification, there would 

be a significant net emissions increase ofthe pollutant. 

I.B.35.c. 	 Any minor source baseline date established originally for the Total Suspended 

Particulates increments shall remain in effect and shall apply for purposes of 

determining the amount of available PMIO increments, except that the division 

may rescind any such minor source baseline date where it can be shown, to 

the satisfaction ofthe division, that the emissions increase from the major 

stationary source, or the net emissions increase from the major modification 

responsible for triggering that date, did not result in a significant amount of 

PMIO emissions. 

I.B.36. Modification Definitions 

1.B.36.a. 	 Administrative Permit Amendment. 

A permit revision that: 

I.B.36.a.(i) 


I.B.36.a.{ii) 


I.B.36.a.(iii) 


I.B.36.a.(iv) 


Regulation No. 3 

Corrects typographical errors; 

Identifies a change in the name, address, or phone number of any person 

identified in the permit, or provides a similar minor administrative change 

at the source; 

Requires more frequent monitoring or reporting by the permittee; 

Allows for a change in ownership or operational control of a source where 

the division determines that no other change in the permit is necessary, 

provided that a written agreement containing a specific date for transfer of 

permit responsibility, coverage, and liability between the current and new 

permittee has been submitted to the division; 

A,Page 9 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 10 

An administrative pennit amendment for purposes ofthe acid rain portion 

of a pennit shall be governed by regulations promulgated under Title IV of 

the Federal Act, found at Code of Federal Regulations Title 40, Part 72. 

LB.36.b. 	 Major Modification (applicable to Prevention ofSignificant Deterioration and 

Nonattainment New Source Review program) 

Means any physical change or change in the method ofoperation of, or 

addition to a major stationary source that would result in a significant net 

emissions increase of any air pollutant sueject to regulation under the Federal 

Act or the State Act (taking into account all emissions decreases and increases 

at the source that would accompany the modification). 

LB.36.b.(i) 	 Any net emissions increase that is significant for volatile organic 

compounds shall be considered significant for ozone. 

In the Denver Metropolitan PM10 nonattainment area, any net emission 

increase that is significant for sulfur dioxide or nitrogen oxides shall be 

considered significant for PMlO• 

lB.36.b.(ii) 	 A physical change or change in the method ofoperation shall not include 

routine maintenance, repair, and replacement. 

1.B.36.b.(iii) 	 A physical change or change in the method ofoperation, unless previously 

limited by any enforceable or federally enforceable permit condition that 

was established after January 6, 1975, for sources in attainment or 

unclassifiable areas and December 21, 1976, for sources in nonattainment 

areas, shall not include: 

I.B.36.b.(iii)(A) 	 Use ofan alternative fuel or raw material by reason of an order in 

effect under sections 2(a) and (b) of the Federal Energy Supply and 

Environmental Coordination Act of 1974 (or any superseding 

legislation), a prohibition under the Power Plant and Industrial 

Fuel Use Act of 1978 (or any superseding legislation) or by reason 

of a natural gas curtailment plan in effect pursuant to the Federal 

Power Act; 

I.B.36.b.(iii)(B) 	 Use ofan alternative fuel by reason of an order or rule under 

section 125 ofthe Federal Act; 

LB.36.b.(iii)(C) 	 Use ofan alternative fuel or raw material that, prior to January 6, 

1975 for a source in an attainment or unclassifiable area, and prior 

to December 21,1976 for a source in a nonattainment area, the 

stationary source was capable of accommodating, or that the 

source is approved to use under any pennit issued under Code of 

Federal Regulations Title 40, Subparts I, or 52.21, or under 

Regulation No.3. 

Regulation No. 3 	 Part A, Page 10 

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I.B.36.b.{iii)(D) An increase in the production rate, unless such change would be 

prohibited under a federally enforceable permit condition; 

I.B.36.b.(iii)(E) An increase in the hours of operation, unless such increase would 

be prohibited under a federally enforceable permit condition; or 

LB.36.b.(iii)(F) Any change in ownership of a stationary source. 

lB.36.b.(iii)(G) The addition, replacement or use of a pollution control project at 

an existing electric utility steam generating unit, .unless the division 

determines that such addition, replacement, or use renders the unit 

less envirorunentally beneficial, except: 

1.B.36.b.(iiiXG)(I) 	 When the division has reason to believe that the pollution 

control project would result in a significant net increase in 

representative actual annual emissions of any criteria 

pollutant over levels used for that source in the most recent 

air quality impact analysis in the area conducted for the 

purpose of Title I ofthe Federal Act, if any, and 

I.B.36.b.(iii)(G)(2) 	 The division determines that the increase will cause or 

contribute to a violation of any National Ambient Air 

Quality Standard or Prevention ofSignificant Deterioration 

increment, or visibility limitation. 

lB.36.b.(iii)(H) 	 The installation, operation, cessation, or removal of a temporary 

clean coal technology demonstration project, provided that the 

project complies with: 

LB.36.b.(iii)(H)(I) 	 The Colorado State Implementation Plan, and 

1.B.36.b.(iii)(H)(2) 	 Other requirements necessary to attain and maintain the 

National Ambient Air Quality Standards during the project 

and after it is terminated. 

1.B.36.b.(iii)(I) 	 The installation or operation of a permanent clean coal technology 

demonstration project that constitutes repowering, provided that 

the projcct does not result in an increase in the potential to emit of 

any regulated pollutant emitted by the unit. This exemption shall 

apply on a polJutant-by-polJutant basis. 

lB.36.b.(iii)(J) 	 The reactivation of a very clean coal-fired electric utility steam 

generating unit. 

lB.36.b.(iv) 	 Emissions caused by indirect sources of pollution, emissions from internal 

combustion engines on any vehicle, and emissions resulting from 

temporary construction or exploration activities shall be excluded in 

determining whether a major modification will occur. 

Regulation No.3 	 Part A, Page 11 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 12 

Emissions from on-going construction are not considered to be temporary 

emissions, and are included in determining whether a major modification 

will occur. 

I.B.36.b.(v) 	 Fugitive emissions from the listed sources in Code ofFederal Regulations 

Title 40, Part 70, Section 70.2 (Definition of "major source"). including 

sources regulated under section 111 or 112 ofthe Federal Act 

(Regulations No.6 and 8). shall, to the extent quantifiable, be considered 

in calculating the potential to emit of the modification for sources subject 

to an operating permit. For purposes ofPrevention ofSignificant 

Deterioration and Nonattainment New Source Review, fugitive emissions 

from the listed sources in section I.B.59.e.(i) and any other stationary 

source category that, as ofAugust 7, 1980 was regulated under 111 or 112 

ofthe Federal Act (Regulations Nos. 6 and 8) shall, to the extent 

quantifiable, be considered in calculating the potential to emit ofthe 

modification. 

I.B.36.c. 	 Minor Permit Modification 

Any revision to an operating pennit issued by the division that meets the 

criteria ofsections X., or Xl., ofPart C. 

LB.36.d. 	 Modification (for purposes ofPart B only) 

Any physical change in, or change in the method of operation of, a stationary 

source that does not meet the definition ofmajor modification, and that 

increases the emission rate of any pollutant for which a federal or state 

emission standard has been promulgated or that results in the emission of any 

such pollutant previously not emitted. The following exceptions apply: 

I.B.36.d.(i) 	 Routine maintenance, repair, and replacement shall not be considered a 

physical change; 

1.B.36.d.(ii) 	 Unless previously limited by enforceable permit tenns and conditions, the 

following shall not be considered to be a change in the method of 

operation: 

I.B.36.d.(ii)(A) 	 An increase in the production rate ifsuch increase does not exceed 

the design capacity ofthe source and does not lead to emissions in 

excess ofthe emission standards; 

I.B.36.d.(ii)(B) 	 An increase in the hours of operation that does not lead to 

emissions in excess ofthe emission standards. 

I.B.36.d.(ii)(C) 	 Use of an alternative fuel or raw material by reason of an order in 

effect under sections 2(a) and (b) ofthe Federal Energy Supply and 

Environmental Coordination Act of1974 (or any superseding 

legislation), a prohibition under the Federal Power Plan and 

Industrial Fuel Act of 1978 (or any superseding legislation) or by 

Regulation No.3 Part A, Page 12 J 

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reason of a natural gas curtaibnent plan in effect pursuant to the 

Federal Power Act; 

IB.36.d.(ii)(D) Use ofan alternative fuel by reason of an order or rule under 

section 125 ofthe Federal Act; or 

I.B.36.d.{ii)(E) Change in ownership of the source. 

I.B.36.d.(iii) 	 Emissions resulting from construction and exploration shall be excluded in 

determining whether a modification will occur. Emissions from on·going 

construction, and emissions from natural gas flaring are not considered to 

be temporary emissions, and are included in determining whether a 

modification will occur. 

LB.36.d.(iv) 	 This definition shall not be used as a definition ofmajor modification or 

minor permit modification-- these are distinct and separate definitions. 

I.B.36.d.(v) 	 Any physical change or change in the method ofoperation at a source with 

an operating permit issued pursuant to Part C ofthis Regulation No.3, that 

does not constitute a major modification as defined in Part A, section 

I.B.36.b., ofRegulation No.3 and that does not trigger new source 

performance standards or hazardous air pollutant requirements under the 

Federal Act is not considered to be a modification; except that any such 

change shall trigger the provisions ofPart C, section X.A., and Part B, 

section IV.D.l.a.-h., Part C, sections XII.A., or XlI.B., as appropriate. 

1.B.36.e. 	 Permit Modification (operating permits only): means any revision to an 

operating permit issued by the division that cannot be accomplished under the 

administrative permit amendment procedures set forth in section III., ofthis 

Part A, or the minor permit modification procedures set forth in sections X., or 

XI., ofPart C. A permit modification for purposes ofthe acid rain portion of 

a permit shall be governed by regulations promulgated under Title IV of the 

Federal Act, found at Code ofFederal Regulations, Title 40, Part 72. 

I.B.36.f. 	 Permit Revision: means any permit modification, minor permit modification, 

or administrative permit amendment. No permit revision shall be required for 

increases in emissions that are authorized by allowances acquired pursuant to 

the acid rain program provided that such increases do not require a permit 

revision under any other applicable requirement. 

1.B.36.g. 	 Reconstruction: will be presumed to have taken place where the fixed capital 

cost ofthe new components exceed fifty percent ofthe fixed capital cost ofan 

entirely new stationary source. Any final decision as to whether 

reconstruction has occurred shall be made in accordance with the provisions 

in Regulation No.6. In determining lowest achievable emission rate for a 

reconstructed stationary source, the provisions ofRegulation No.6 shall be 

taken into account in assessing whether a new source performance standard is 

applicable to such stationary source. 

Regulation No.3 	 Part A, Page 13 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 14 

I.B.36.h. 	

do 

Significant 

not qualify 

Pennit 

as minor 

Modification: 

pennit modifications 

means all operating 

or as administrative 

pennit modifications 

permit 

that ..~ amendments. At a minimum, a significant pennit modification shall include: 

I.B.36.h.(i} 	 Any change that causes a significant increase in the rate ofemissions as 


described by any pennit tenn or condition; 


1.B.36.h.(ii} 	 Any change that is considered a modification under Title I ofthe Federal 


Act; 


1.B.36.h.(iii} 	 Any change that requires or changes a case-by-case detennination of an 


emission limitation or other standard; 


I.B.36.h.(iv} 	 Any change that requires or changes a source-specific detennination for 


temporary sources of ambient impacts; 


IB.36.h.(v} 	 Any change that requires or changes a visibility or increment analysis; 

IB.36.h.(vi} 	 Every significant change in existing monitoring pennit terms or 


conditions; and 


1.B.36.h.(vii} 	 Every relaxation ofreporting or record keeping pennit tenns or 


conditions. 


I.B.36.h.(viii} Every change that seeks to establish or change a pennit term or condition 


for which there is no corresponding underlying applicable requirement and 


that the source has assumed to avoid an applicable requirement to which 


the source would otherwise be subject. Such tenns and conditions 


include: 


1.B.36.h.(viii}(A} 	A federally enforceable emissions cap assumed to avoid 

classification as a modification under any provision ofTitle I of 

the Federal Act; and 

IB.36.h.(viii}{B} 	 An alternative emissions limit approved pursuant to regulations 

promulgated under section I 12(i}(S} ofthe Federal Act 

All significant permit modifications shall be processed using the 

procedures set forth in Part C ofRegulation No.3 for combined 

Construction\Operating Permit issuance. Such source may choose 

to obtain a construction permit pursuant to Part B and shall 

subsequently meet the operating permit requirements ofPart C. 

I.B.37. 	 Net Emissions Increase (This definition applies where specifically referenced in 

other provision ofRegulation No.3, and may also be used for purposes ofsection V. 

of Part A - "Certification and Trading ofEmission Reduction Credits"). 

I.B.37.a. 	 The amount by which the sum of the following exceeds zero: 

Regulation No.3 	 Part A, Page 14 

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I.B.37.a.(i) Any increase in the actual emissions from a particular physical change or 

change in the method ofoperation at a stationary source; and 

I.B.37.a.(ii) Any other increases and decreases in actual emissions at the source that 

are contemporaneous with the particular change and are otherwise 

creditable. 

LB.37.b. 	 Contemporaneous - an increase or decrease in actual emissions is 

contemporaneous with the increase from the particular change only if it occurs 

between: 

I.B.37.b.(i) 	 The date five years before construction on the particular change 

commences; and 

I.B.37.b.(ii) 	 The date that the increase from the particular change occurs. 

I.B.37.c. 	 An increase or decrease in actual emissions is creditable only if: 

I.B.37.c.(i) 	 The division has not relied on it in issuing a permit for the source under 

Regulation No.3, or the U.S. EPA has not relied on it in issuing a permit 

under Part C ofthe Federal Act, that permit is in effect when the increase 

in actual emissions from the particular change occurs; and 

I.B.37.c.(ii) 	 In order to establish a baseline emissions rate, the owner or operator 

submits an Air Pollutant Emission Notice to the division prior to the 

increase or decrease indicating actual emissions according to the definition 

in Regulation No.3, Part A, section LB.1., and the owner or operator 

submits a revised Air Pollutant Emission Notice to the division within one 

year after making the increase or decrease, or 

I.B.37.c.(iii) 	 The owner or operator provides credible, demonstrable evidence to the 

division ofwhat actual emissions were before making the increase or 

decrease and what they were after making the increase or decrease. 

I.B.37.d. 	 An increase or decrease in actual emissions ofsulfur dioxide, particulate 

matter, or nitrogen oxides that occurs before the applicable minor source 

baseline date is creditable only if it is required to be considered in calculating 

the amount ofmaximum allowable increases remaining available. With 

respect to particulate matter, only PMIO emissions can be used to evaluate the 

net emissions increase for PMJO. 

I.B.37.e. 	 An increase in actual emissions is creditable only to the extent that the new 

level of actual emissions exceeds the old level. 

I.B.37.f. 	 A decrease in actual emissions is creditable only to the extent that the division 

has not relied on it in issuing any permit under regulations approved pursuant 

to Title 40 ofthe Code ofFederal Regulations, Part 51, Subpart I or has not 

relied on it in demonstrating attainment or reasonable further progress: 

Regulation No.3 	 Part A, Page 15 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 16 

LB.3 7.f.(i) The old level of actual emissions or the old level of allowable emissions, 

whichever is lower, exceeds the new level of actual emissions; 

LB.37.f.(ii) It is federally enforceable at and after the time that actual construction on 

the particular change begins; and 

LB.37.f.(iii) It has approximately the same qualitative significance for public health 

and welfare as that attributed to the increase from the particular change. 

LB.37.g. 	 An increase that results from a physical change at a source occurs when the 

emissions unit on which construction occurred becomes operational and 

begins to emit a particular pollutant. Any replacement unit that requires 

shakedown becomes operational only after a reasonable shakedown period, 

not to exceed one hundred and eighty days. 

LB.37.h. 	 The organic compounds referenced in the common provisions definition of 

negligibly reactive volatile organic compounds are neither counted as reactive 

volatile organic compounds in determining significant ozone increases nor 

creditable against an increase in emissions of any volatile organic compound. 

LB.37.i. 	 Creditable Decreases for Fuel Switching. Generally, for credit to be given for 

the emissions reduction in potential to emit or actual emissions reSUlting from 

a physical change or change in method of operation of a major stationary 

source occurring on or after the effective date of this rule, an Air Pollutant 

Emission Notice reporting such reduction must be filed within one year after 

the reduction occurs unless an extension is requested due to uncertainty as to 

the permanence ofsuch reduction. At the time credit for any reduction is 

requested, such reduction must be enforceable. Such reductions must be 

enforceable through permit conditions or source specific state implementation 

plan revisions. 

LB.38. Reserved 

LB.39. Non-criteria Reportable Pollutants 

The list ofpollutants set forth in Appendix B and those ozone depleting compounds 

listed in section 602 ofthe Federal Act. 

I.B.40. Nonroad Engine 

I.B.40.a. 	 Except as discussed in section LB.40.b., of this definition, a nonroad engine is 

an internal combustion engine: 

I.B.40.a.(i) 	 In or on a piece of equipment that is self-propelled or serves a dual 

purpose by both propelling itself and performing another function (such as 

garden tractors, off-highway mobile cranes and bulldozers); or 

I.B.40.a.(ii) 	 In or on a piece of equipment that is intended to be propelled while 

performing its function (such as lawnmowers and string trimmers); or 

Regulation No.3 	 Part A, Page 16 

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LBAO.a.(iii) 	 That, by itself or in or on a piece of equipment is portable or transportable, 

meaning designed to be and capable ofbeing carned or moved from one 

location to another. lndicia oftransportability include, but are not limited 

to wheels, skids, carrying handles, dolly, trailer or platform. 

lB.40.b. 	 An internal combustion engine is not a nonroad engine if: 

LBAO.b.(i) 	 The engine is used to propel a motor vehicle or a vehicle used solely for 

competition, or is subject to standards promulgated under section 202 of 

the Federal Act; or 

LBAO.b.(ii) 	 The engine is regulated by a federal New Source Performance Standard 

promulgated under section 111 ofthe Federal Act; or 

lBAO.b.(iii) 	 The engine otherwise included in section I.BAO.a.(iii) ofthis definition 

remains or will remain at a location for more than twelve consecutive 

months or a shorter period of time for an engine located as a seasonal 

source. A location is any single site at a building. structure, facility, or 

installation. Any engine (or engines) that replaces an engine at a location 

and that is intended to perform the same or similar function as the engine 

replaced will be included in calculating the consecutive time period. An 

engine located at a seasonal source is an engine that remains at a seasonal 

source during the full annual operating period ofthe seasonal source. A 

seasonal source is a stationary source that remains in a single location on a 

permanent basis (Le., at least two years) and that operates at a single 

location approximately three months (or more) each year. This section 

does not apply to an engine after the engine is removed from the location. 

LBAO.c. 	 Nonroad engines not co-located at an existing major source 

An operator ofa nonroad engine as defined in section LB.40.a.(iii), above, 

with a manufacturer's site-rated horsepower of 1,200 or greater, or an 

aggregation ofsuch nonroad engines each with a manufacturer's site-rated 

horsepower of 1,200 or greater, that operate more than 4,380 hours per year at 

the same location are subject to the following state-only requirements: 

I.BAO.c.(i) 	 Submit an air pollutant emission notice and pay the appropriate fees 

pursuant to section VI., Part A ofthis regulation; 

I.BAO.c.(ii) 	 Submit an application for a site-specific, temporary, nonroad engine 

permit on forms supplied by the division ifthe estimated actual emissions 

reported on the Air Pollutant Emission Notice, as required by section 

I.BAO.c.(i), are equal to or exceed 100 tons per year or more ofnitrogen 

oxides, 100 tons per year or more ofcarbon monoxide, or 40 tons per year 

or more ofsulfur dioxide. After receipt and review ofa complete 

application, the division shall issue a state-only nonroad engine permit 

containing such terms and conditions as are necessary to protect the 

ambient air quality standards. 

Regulation No.3 	 Part A, Page 17 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 18 

IB.40.c.(iii) 	 The operator of a nonroad engine that is exempt on the basis ofhours of 

operation or the annual emissions thresholds described above, must 

maintain sufficient records to verify that the engine or engines are exempt 

from the state-only reporting and permit requirements. Such records shall 

be made available for division review upon request. 

IB.40.d. 	 Nonroad engines co-located at an existing major source ofnitrogen oxides and 

sulfur dioxide 

An operator of a nonroad engine or aggregation of engines each-with a 

manufacturer's site-rated horsepower of 1,200 or greater, and are nonroad engines 

under section IB.40.a.(iii) ofthis definition, are subject to the following stateonly requirements: 

I.B.40.d.(i) Submit an air pollutant emission notice and pay the fees required by Part 

A, section VI, ofthis regulation; 

IB.40.d.(ii) Submit an application for a site-specific, temporary, state-only nonroad 

engine permit on forms supplied by the division ifthe estimated actual 

emissions reported on the air pollutant emission notice, as required by 

section I.B.40.d.(i), are equal to or exceed 40 tons per year or more of 

nitrogen oxides, 100 tons per year or more ofcarbon monoxide, or 40 tons 

per year or more ofsulfur dioxide. After receipt and review of a complete 

application the division shall issue a temporary state-only nonroad engine 

permit containing such terms and conditions as are necessary to protect the 

ambient air quality standards. 

IB.40.d.(iii) The operator ofa nonroad engine that is 1,200 horsepower or greater, but 

is exempt on the basis ofthe annual emissions thresholds described above, 

must maintain sufficient records to verify that the engine or engines are 

exempt from the state-only reporting and permit requirements. Such 

records shall be made available for division review upon request. 

I.B.4l. 	 Operating Permit 

Unless the context suggests otherwise, means any permit or group ofpermits 

covering an operating permit source that is issued, renewed, amended or revised 

pursuant to Regulation No.3. 

I.B.42. 	 Operating Permit Source 

Means any source subject to the permitting requirements ofPart C ofthis regulation. 

I.B.43. 	 Reserved 

I.B.44. 	 Permit Shield (part C - Operating Permits Only) 

Means that where a source operates in compliance with all operating permit terms and 

conditions, the source shall be deemed in compliance with the state and Federal Acts 

Regulation No.3 Part A, Page 18 

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I.B.4S. 

I.B.46. 

I.B.47. 

LB.48. 

lB.49. 

LB.SO. 

LB.S!' 

where the pennit includes all applicable requirements ofsuch acts, specifically states 

that other identified provisions are not applicable, and states that the permit shield 

applies. The pennit shield does not apply to tenns and conditions that become 

applicable to the source subsequent to pennit issuance. The permit shield shaH not 

alter or affect the provisions of Colorado Revised Statutes sections 2S-7-112 or 2S-7­

113, section 303 ofthe Federal Act, the applicable requirements ofthe acid rain 

program, consistent with section 408(a) ofthe Federal Act, or the ability ofthe 

Administrator to obtain infonnation from a source pursuant to section 114 ofthe 

Federal Act; nor shall the pennit shield affect the liability of an owner or operator of a 

source for any violation of applicable requirements prior to or at thtHime ofpennit 

issuance. 

Potential to Emit 

The maximwn capacity ofa stationary source to emit a polJutant under its physical 

and operational design. Any physical or operational limitation on the capacity ofthe 

source to emit a pollutant, including air pollution control equipment and restrictions 

on hours ofoperation or on the type or amount ofmaterial combusted, stored, or 

processed, shall be treated as part ofits design ifthe limitation or the effect it would 

have on emissions is state enforceable and federally enforceable. Secondary 

emissions do not count in detennining the potential to emit ofa stationary source. 

Reserved 

Reserved 

Proposed Operating Pennit 

Means the version of an operating pennit that the division proposes to issue and 

forwards to the Administrator for review in compliance with the Code ofFedera1 

Regulations Title 40, Part 70, Section 70.8. 

Reserved 

Reserved 

Regulated Air Pollutant 

Means nitrogen oxides or any volatile organic compounds, except as listed in section 

I.B.37.h.; any pollutant for which a national or state ambient air quality standard has 

been promulgated; any pollutant that is subject to any standard promulgated under 

section III ofthe Federal Act (Regulation No.6); any class lor II substance subject 

to a standard promulgated under or established by Title VI ofthe Federal Act; any 

pollutant subject to a standard promUlgated under section 112 or other requirements 

established under section 112 ofthe Federal Act, including sections II2(g), (;), and 

(r) ofthe Federal Act; and any pollutant subject to a standard promUlgated pursuant to 

Colorado Revised Statutes section 2S-7-109.3(S)(a), (state-only hazardous air 

pollutants listed in section 2S-7-109.3(S)(a) are subject to state enforcement only and 

Regulation No.3 Part A, Page 19 

CODE OF COLORADO REGULATIONS 5 CCR 1001-5 

Page 20 

do not trigger enforcement by the Administrator or by citizens under section 304 of 

the Fedeml Act.) 

Once a source becomes subject to the operating pennit requirements, regulated 

pollutants must be addressed in the permit application and in the permit. 

I.B.52. Renewal of an Operating Pennit 

Means the process by which a permit is reissued at the end of its term. 

I.B.53. Reserved 

I.B.54. Responsible Official 

Means one ofthe following: 

I.B.54.a. 	 For a corporation: a president, secretary, treasurer, or vice president of the 

corporation in charge of a principal business function, or any other person 

who perfonns similar policy or decision making functions for the corpomtion, 

or a duly authorized representative of such person if the representative is 

responsible for the overall operation ofone or more manufacturing, 

production, or operating facilities applying for or subject to a permit and 

either: 

I.B.54.a.(i) 	 The facilities employ more than two hundred and fifty persons or have 

gross annual sales or expenditures exceeding twenty-five million dollars 

(in second quarter 1980 dollars); or 

I.B.54.a.(ii) 	 The delegation of authority to such representative is approved in advance 

by the division; 

1.B.54.b. 	 For a partnership or sole proprietorship: a general partner or the proprietor, 

respectively; 

I.B.54.c. 	 For a municipality, state, federal, or other public agency; either a principal 

executive officer, or ranking elected official. For the purposes ofthis section, 

a principal executive officer ofa federal agency includes the chief executive 

officer having responsibility for the overall operations of a principal 

geographic unit of the agency; or 

I.B.54.d. 	 For affected sources: 

1.B.54.d.(i) 	 The designated representative in so far as actions, standards, requirements, 

or prohibitions under Title IV ofthe Federal Act or the regulations, found 

at Code ofFederal Regulations Title 40, Part 72, promulgated thereunder 

are concerned; and 

LB.54.d.(ii) 	 The designated representative under Title IV of the Federal Act or the 

Code ofFederal Regulations Title 40, Part 72 for any other purposes under 

the Code ofFederal Regulations Title 40, Part 70. 

Regulation No.3 	 Part A, Page 20 

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I.B.55. Schedule ofcompliance 

Means a schedule ofrequired measures, including an enforceable sequence of actions 

or operations, leading to compliance with an applicable state implementation plan, 

emission standard, emission limitation, emission prohibition, or emission control 

regulation. 

I.B.56. Secondary Emissions 

Emissions that would occur as a result ofthe construction or operation of a major 

stationary source or major modification, but do not come from the major stationary 

source or major modification itself. Secondary emissions must be specific, 

well-defined, quantifiable, and impact the same geographic areas as the stationary 

source or modification that causes the secondary emissions. Secondary emissions 

include emissions from any offsite support facility that would not otherwise be 

constructed or increase its emissions except as a result ofthe construction or 

operation ofthe major stationary source or major modification. Secondary emissions 

do not include any emissions that come directly from a mobile source, such as 

emissions from the tailpipe of a motor vehicle, from a train, or from a vessel. 

I.B.57. Section 502(b)(1 0) Changes 

Means changes that contravene an express permit term. Such changes do not violate 

applic~ble requirements or contravene federally enforceable permit terms and 

conditions that are monitoring (including test methods), record keeping, reporting, or 

compliance certification requirements. 

I.B.58. Significant 

I.B.58.a. 	 Unless the context otherwise requires, for purposes ofthe Colorado 

Prevention ofSignificant Deterioration program and for purposes ofsection 

N.D.3., ofPart B (nonattainmcnt requirements) ofRegulation No.3, a 

significant rate of emissions in tons per year is defined as a value that would 

equal or exceed any of the following: 

Carbon monoxide: 100 tons per year 

Nitrogen Oxides: 40 (nitric oxide + nitrogen dioxide) tons per year 

Sulfur dioxide: 40 tons per year 

Particulate matter: 25 tons per year particulate matter emissions or, 15 tons 

per year ofPMIO emissions 

PMIO - Precursors in the Denver Metropolitan PMIO non attainment area: 40 

tons per year for each individual precursor (nitrogen oxides or sulfur oxides) 

Ozone: 40 tons per year of volatile organic compounds 

Lead: 0.6 tons per year 

Regulation No. 3 Part A, Page 21 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 22 

Fluorides: 3 tons per year 

Sulfuric acid mist: 7 tons per year 

Hydrogen sulfide: 10 tons per year 

Total reduced sulfur (including hydrogen sulfide: 10 tons per year) 

Reduced sulfur compounds (including hydrogen sulfide: 10 tons per year) 

Municipal Waste Combustor Organics (measured as total tetra- through octachlorinated dibenzo-p-dioxins and dibenzofurans): 3.2 x 10-6 megagrams per 

year (3.5 x 10-6 tons per year) 

Municipal Waste Combustor Metals (measured as particulate matter): 14 

megagrams per year (15 tons per year) 

Municipal Waste Combustor Acid Gases (measured as sulfur dioxide and 

hydrogen chloride): 36 megagrams per year (40 tons per year) 

Municipal Solid Waste Landfill Gases (measured as nonmethane organic 

compounds): 45 megagrams per year (50 tons per year) 

1.B.58.b. 	 Significant means, in reference to a net emissions increase or the potential of a 

source to emit a pollutant subject to regulation under the state Act or the 

Federal Act that this definition does not list, any emissions rate, except that 

this definition shall not apply to hazardous air pollutants listed in or pursuant 

to section 112 ofthe Federal Act. 

1.B.58.c. 	 Notwithstanding the significant emission rates above, significant means any 

emissions rate or any net emissions increase associated with a major 

stationary source or major modification, that would construct within ten 

kilometers of a Class I area, and have an impact on such area equal to or 

greater than one microgram/cubic meter (J1g1m3 ) (twenty-four hour average). 

I.B.59. Source Definitions 

Affected Source: (acid deposition program) means a source of air pollutants that 

includes one or more fossil fuel fired combustion devices subject to emission 

reduction requirements or limitations under Title IV ofthe Federal Act, Code of 

Federal Regulations Title 40, Part 72, or under the state Act. 

Existing Source: An air pollutant source that has been constructed, is in operation, or 

has received an initial approval of a construction pennit prior to the effective date of 

applicable requirements. 

Indirect Source: A facility, building, structure, or installation, or any combination 

thereof, excluding dwellings, which can reasonably be expected to cause or induce 

substantial mobile source activity that results in emissions ofair pollutants that might 

Regulation No.3 	 Part A, Page 22 

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reasonably be expected to interfere with the attainment and maintenance of~ational 

Ambient Air Quality Standards. 

Major Source: (for purposes ofPart C - operating permits) means any stationary 

source or group ofstationary sources that have the same two digit standard industrial 

code, are located on one or more contiguous or adjacent properties, and are under 

common control ofthe same person (or persons under common control) that: 

l.B.59.a. 	 Directly emits, or has the potential to emit considering enforceable controls, in 

the aggregate, ten tons per year or more of any hazardous air- pollutant or 

twenty-five tons per year or more of any combination ofhazardous air 

pollutants, or such lesser quantity of hazardous air pollutants as may be 

established pursuant to the Federal Act. Emissions from any oil or gas 

exploration or production well (with its associated equipment) and emissions 

from any pipeline compressor or pump station shall not be aggregated with 

emissions from other similar units, whether or not such units are in a 

contiguous area or under common control, to determine whether such units or 

stations are major sources, and in the case of any oil or gas exploration or 

production well (with its associated equipment), such emissions shall not be 

aggregated for any purpose under this provision. Fugitive emissions shall be 

considered in detennining whether a stationary source ofhazardous air 

pollutants is a major source. 

I.B.59.b. 	 Directly emits, or has the potential to emit, one hundred tons per year or more 

of any air pollutant. Fugitive emissions shall be considered in determining 

whether a source is a major stationary source for purposes ofthis section 

I.B.59.b., with regard to those source categories that are listed in section 

I.B.59.e.(i) ofthat definition, Part A, Regulation No.3, and with regard to all 

other stationary source categories regulated by a standard promulgated as of 

August 7, 1980 under section 111 or 112 ofthe Federal Act, but only with 

respect to those air pollutants that have been regulated for that category. 

I.B.59.c. 	 Meets any ofthe definitions ofmajor stationary source set forth in section 

1.B.59., ofthis Regulation No.3. 

Major Stationary Source: (for purposes ofPart B, Construction Permits) 

1.B.59.d. 	 For the purpose of detennining whether a source in a nonattainment area is 

subject to the requirements ofRegulation 3, Part B, section IV.D.2., and 

whether a source in an attainment area affecting a nonattainment area is 

subject to the requirements ofPart B, section IV.D.3.d., major stationary 

source means any stationary source ofair pollutants which emits, or has the 

potential to emit, one hundred tons per year or more of any pollutant 

regulated under the Federal Act for which the area is nonattainment. In the 

Denver Metropolitan PM10 nonattainment area, sulfur dioxide and nitrogen 

oxides shall be treated as PMIO precursors, and any source that is major for 

these precursors is subject to the nonattainment new source review provisions. 

Additionally, a source causing or contributing to a violation ofa national 

ambient air quality standard for any pollutant regulated under section 110 of 

Regulation No.3 	 Part A, Page 23 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 24 

the Federal Act shall be considered major when it has the potential to emit one 

hundred tons per year or more ofthat pollutant. The source will be considered 

to cause or contribute to a violation when the source exceeds the significance 

levels in the table under section lV.D.3.d.(ii), Part B. Such source is subject 

to the requirements ofsection lV.D.3. 

lB.59.e. 	 For the purpose of determining whether a source in an attainment or 

unclassifiable area is subject to the requirements ofRegulation No.3, Part B, 

section lV.D.3., (except section lV.D.3.d.) and sections VIIl, IX., and X., 

major stationary source means: . 

IB.59.e.(i) 	 Any ofthe following stationary sources of air pollutants which emit, or 

have the potential to emit, one hundred tons per year or more of any 

pollutant subject to regulation under the Federal Act: fossil fuel-fired 

steam electric plants ofmore than two hundred and fifty million British 

thermal units per hour heat input, coal cleaning plants (with thermal 

dryers), kraft pulp mills, portland cement plants, primary zinc smelters, 

iron and steel mill plants, primary aluminum ore reduction plants, primary 

copper smelters, municipal incinerators capable ofcharging more than two 

hundred and fifty tons ofrefuse per day, hydrofluoric, sulfuric, and nitric 

acid plants, petroleum refineries, lime plants, phosphate processing plants, 

coke oven batteries, sulfur recovery plants, carbon black plants (furnace 

process), primary lead smelters, fuel conversion plants, sintering plants, 

secondary metal production facilities, chemical process plants, fossil fuel 

boilers (or combination thereof) totaling more than two hundred and fifty 

million British thermal units per hour heat input, petroleum storage and 

transfer facilities with a total storage capacity exceeding three hundred 

thousand barrels, taconite ore processing facilities, glass fiber processing 

plants, and charcoal production plants. 

IB.59.e.(ii) 	 Any other stationary source which emits, or has the potential to emit two 

hundred and fifty tons per year or more of any air pollutant regulated 

under the Federal Act. 

1.B.59.f. 	 Major stationary source includes any physical change that would occur at a 

stationary source not otherwise qualifying as a major stationary source under 

this definition if the change would constitute a major stationary source by 

itself. 

lB.59.g. 	 A major source that is major for volatile organic compounds shall be 

considered major for ozone, except that none ofthe emissions ofthe volatile 

organic compounds listed in section 1.B.37.h., shall be included in the 

determination ofmajor for ozone. 

lB.59.h. 	 Emissions caused by indirect air pollution sources, emissions from internal 

combustion engines on any vehicle, and emissions reSUlting from temporary 

activities, such as construction or exploration, shall be excluded in 

determining whether a source is a major stationary source. Emissions from 

Regulation No.3 	 Part A, Page 24 

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on-going construction are not considered to be temporary emissions and are 

included in determining whether a major modification will occur. 

IB.59.i. Fugitive emissions from any source category listed in section IB.59.e.(i) of 

this definition, and any other stationary source category, which as of August 

7, 1980 was regulated under section III or, 112 ofthe Federal Act 

(Regulations Nos. 6 and 8), shall be included in determining whether a source 

is a major stationary source. 

I.B.59.j. A major source in the Denver Metropolitan PMlO nonattainment area that is 

major for sulfur dioxide or nitrogen oxides shall be considered major for 

PM10. 

Mobile Source: Motor vehicles and other sources of air pollution that emit pollutants 

while moving and that commonly do not remain at one site (one or more contiguous 

or adjacent properties owned or operated by the same person or by persons under 

common control), but does not include portable sources. 

New Source: A stationary air pollution source, other than an existing source; or any 

source that resumes operation after being inactive for more than one year after having 

been shut down for the purpose of eliminating emissions that violated any applicable 

emission control regulation or regulation for the control of hazardous air pollutants. 

Portable Source: A source such as, but not limited to, asphalt batch plants and 

aggregate crushers that commonly and by usual practice are moved from one site to 

another. A source will not be considered portable ifit remains on one site for more 

than two years. 

Stationary Source: Any building, structure, facility, equipment, or installation, or any 

combination thereof belonging to the same industrial grouping, that emits or may 

emit any air pollutant subject to regulation under the Federal Act, that is located on 

one or more contiguous or adjacent properties and that is owned or operated by the 

same person or by persons under common control. Those emissions resulting directly 

from an internal combustion engine for transportation purposes or from a nonroad 

engine as defined in section I.B.40., of this regulation shall not be considered a 

stationary source. Building, structures, facilities, equipment, and installations shall be 

considered to belong to the same industrial grouping if they belong to the same major 

groups (i.e., have the same two-digit codes) as described in the Standard Industrial 

Classification Manual, 1987, but not later amendments. See National Technical 

Information Service, Order No. PB 87-100012. The manual is available for 

examination at the office ofthe Director ofthe Air Pollution Control Division, 

Department ofPublic Health and Environment, 4300 Cherry Creek Drive South, 

Denver, Colorado 80246-1530. 

Temporary Source: Not more than two years in duration unless the division 

determines that a longer time period is appropriate. 

LB.60. Reserved 

Regulation No.3 Part A, Page 25 

CODE OF COLORADO REGULATIONS 5 CCR 1001-5 

Page 26 

I.B.61. Reserved 

I.B.62. Reserved 

I.B.63. State-only Condition 

Means any standard, tenn or condition that is not required by Part C (prevention of 

Significant Deterioration), Part D (nonattainment), Title V (operating pennit 

program), Title III (hazardous air pollutants) or section III (New Source 

Perfonnance Standards) ofthe Federal Act, is nat required to be federally enforceable 

to participate in the early reductions program, is not required to create a federally 

enforceable emissions limitation in order to create a synthetic minor source, or is 

otherwise more stringent than a requirement under the Federal Act. 

1.B.64. Reserved 

1.B.65. Reserved 

1.B.66. Reserved 

I.B.67. Volatile Organic Compound (see Common Provisions Regulation) 

1.B.68. Reserved 

1.B.69. WEPCO (Wisconsin Electric Power Company) Definitions 

1.B.69.a. Clean Coal Technology 

Any technology, including technologies applied at the pre-combustion, 

combustion, or post-combustion stage, at a new or existing facility which will 

achieve significant reductions in air emissions ofsulfur dioxide or oxides of 

nitrogen associated with the utilization ofcoal in the generation ofelectricity, 

or process steam which was not in widespread use as ofNovember 15, 1990. 

I.B.69.b. Clean Coal Technology Demonstration Project 

A project using funds appropriated under the heading "Department ofEnergyClean Coal Technology," up to a total amount of $2.5 billion for commercial 

demonstration ofclean coal technology, or similar projects funded through 

appropriations for the U.S. EPA. The federal contribution for a qualifying 

project shall be at least twenty percent ofthe total cost ofthe demonstration 

project. 

I.B.69.c. Electric Utility Steam Generating Unit 

Any steam electric generating unit that is constructed for the purpose of 

supplying more than one-third of its potential electrical output capacity and 

more than twenty-five megawatts electrical output to any utility power 

distribution system for sale. Any steam supplied to a steam distribution system 

for the purpose ofproviding steam to a steam--electric generator that would 

Regulation No.3 Part A, Page 26 

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produce electrical energy for sale is also considered in detennining the 

electrical energy output capacity of the affected facility. 

IB.69.d. 	 Pollution Control Project 

Any activity or project undertaken at an existing electric utility steam 

generating unit for purposes of reducing emissions from such unit. Such 

activities or projects are limited to: 

I.B.69.d.(i) 	 The installation ofconventional or iIUlOvative pollution control 

technology, including, but not limited to advanced flue gas 

desulfurization, sorbent injection for sulfur dioxide and nitrogen oxides 

controls and electrostatic precipitators; 

I.B.69.d.(ii) 	 An activity or project to accommodate switching to a fuel which is less 

polluting that the fuel in use prior to the activity or project, including, but 

not limited to natural gas or coal re-burning, or the co-firing ofnatural gas 

and other fuels for the purpose ofcontrolling emissions; 

I.B.69.d.(iii) 	 A permanent clean coal technology demonstration project conducted 

under Title n, section 101(d) ofthe Further Continuing Appropriations 

Act of 1985 (Section 5903(d) ofTitle 42 ofthe United States Code, or 

subsequent appropriations, up to a total amount of$2.5 billion for 

commercial demonstration ofclean coal technology, or similar projects 

funded through appropriations for the U.S. EPA; or 

IB.69.d.(iv) 	 A permanent clean coal technology demonstration project that constitutes 

a repowering project. 

LB.69.e. 	 Reactivation ofVery Clean Coal-fired Electric Utility Steam Generating Unit 

Any physical change or change in the method ofoperation associated with 

the commencement ofcommercial operations by a coal-fired utility unit 

after a period ofdiscontinued operation where the unit: 

IB.69.e.(i) 	 Has not been in operation for the two year period prior to the enactment of 

the Clean Air Act Amendments of 1990, and the emissions from such unit 

continue to be carried in the permitting authority's emissions inventory at 

the time ofthe enactment; 

I.B.69.e.(ii) 	 Was equipped prior to shut-down with a continuous system of emissions 

control that achieves a removal efficiency for sulfur dioxide ofno less 

than eighty-five percent and a removal efficiency for particulates ofno 

less than ninety-eight percent; 

LB.69.e.(iii) 	 Is equipped with low-nitrogen oxide burners prior to the time of 

commencement ofoperations following reactivation; and 

IB.69.e.(iv) 	 Is otherwise in compliance with the requirements ofthe Federal Act. 

Regulation No.3 	 Part A, Page 27 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 28 

I.B.69.f. 	 Repowering 

1.B.69.f.(i) 	 Replacement of an existing coal-fired boiler with one of the following 

clean coal technologies: atmospheric or pressurized fluidized bed 

combustion, integrated gasification combined cycle, magneto 

hydrodynamics, direct and indirect coal-fired turbines, integrated 

gasification fuel cells, or as determined by the Administrator, in 

consultation with the Secretary ofEnergy, a derivative ofone or more of 

these technologies, and any other technology capable ofcontrolling 

multiple combustion emissions simultuneously with improved boiler or 

generation efficiency and with significantly greater waste reduction 

relative to the performance of technology in widespread commercial use 

as ofNovember 15, 1990. 

I.B.69.f.(ii) 	 Repowering shall also include any oil and/or gas-fired unit that has been 

awarded clean coal technology demonstration funding as of January 1, 

1991, by the Department ofEnergy. 

I.B.69.g. 	 Representative Actual Annual Emissions 

The average rate, in tons per year, at which the source is projected to emit 

a pollutant for the two year period after a physical change or change in the 

method ofoperation ofa unit, (or a different consecutive two year period 

within ten years after that change, where the division determines that such 

period is more representative ofnormal source operations), considering 

the effect any such change will have on increasing or decreasing the 

hourly emissions rate and on projected capacity utilization. In projecting 

future emissions, the division shall: 

I.B.69.g.(i) 	 Consider all relevant information, including but not limited to, historical 

operational data, the company's own representations, filings with the state 

or federal regulatory authorities, and compliance plans under Title IV of 

the Federal Act; and 

I.B.69.g.(ii) 	 Exclude, in calculating any increase in emissions that results from the 

particular physical change or change in the method ofoperation at an 

electric utility steam generating unit, that portion ofthe unit's emissions 

following the change that could have been accommodated during the 

representative baseline period and is attributable to an increase in 

projected capacity utilization at the unit that is unrelated to the particular 

change, including any increased utilization due to the rate of electricity 

demand growth for the utility system as a whole. 

I.B.69.h. 	 Temporary Clean Coal Technology Demonstration Project 

I.B.69.h.(i) 	 A clean coal technology demonstration project that is operated for a period 

of five years or less, and which complies with the state implementation 

plan and other requirements necessary to attain and maintain the National 

Regulation No. 3 	 Part A, Page 28 

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Ambient Air Quality Standards during the project and after it is 

terminated. 

lR70. Wet Screening Operations 

A screening operation at a nonmetallic mineral processing plant that removes 

unwanted material or that separates marketable fines from the product by a washing 

process that is designed and operated at all times such that water is an integral part of 

the process and the product is saturated with water. Screens that use spray bars for the 

purposes ofdust control are not included in this definition. 

II. AIR POLLUTANT EMISSION NOTICE (APEN) REQUIREMENTS 

II.A. Air Pollutant Emission Notices for New, Modified, and Existing Sources 

Except as specifically exempted in section 11.0., no person shall allow emission of air 

pollutants from, or construction, modification or alteration of, any facility, process, 

activity which constitutes a stationary source, except residential structures, from 

which air pollutants are, or are to be, emitted unless and until an Air Pollutant 

Emission Notice and the associated Air Pollutant Emission Notice fee has been filed 

with the division with respect to such emission. Each such notice shall specify the 

location at which the proposed emission will occur, the name and address ofthe 

persons operating and owning such facility, the nature ofsuch facility, process or 

activity, an estimate ofthe quantity and composition ofthe expected emission and 

other information as required in the current Air Pollutant Emission Notice fonn. 

ItR General 

II.RI. Emission Estimate 

The Air Pollutant Emission Notice shall include an estimate of the actual emissions, 

including emission controls. The emissions estimate shall be based upon actual test 

data or, in the absence ofsuch data upon estimations acceptable to the division. The 

following alternative estimate methods, in order ofdescending acceptability, are 

acceptable to the division: 

n.RI.a. 	 Mass balance calculations or a published, verifiable emission factor, 

whichever is best applied to the source; or 

n.RI.b. 	 Other engineering calculations. 

Stack testing or emission monitoring will not be required solely to meet the 

Air Pollutant Emission Notice reporting requirements. 

An owner or operator shall provide a justification to the division for not using 

any methods that are higher on the list than the method the owner or operator 

proposes to use. Ifnone ofthe above methods are available or applicable to 

the source, an appropriate method will be determined on a case-by-case basis 

by the division, taking into account the provisions ofsection II.C.2., of 

Regulation No.3, Part A. 

Regulation No.3 	 Part A, Page 29 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 30 

The division shall make available to all air pollution control authority offices 

appropriate fonns on which the infonnation required by this section shall be 

submitted. Applications for Construction Pennits must include an Air 

Pollutant Emission Notice. 

II.B.2. Air Pollutant Emission Notice Tenn 

An Air Pollutant Emission Notice is valid for a period of five years. The five-year 

period recommences when a revised Air PoJlutant Emission Notice is received by the 

division. 

D.B.3. Source Definition 

For the purposes ofAir Pollutant Emission Notice reporting, a source will be 

considered to be an individual emission point, or group of points pursuant to section 

D.B.4., below. 

D.B.3.a. Criteria Pollutants 

For criteria pollutants, Air Pollutant Emission Notices are required for: each 

individual emission point in a nonattainment area with uncontrolled actual 

emissions ofone ton per year or more of any individual criteria pollutant 

(pollutants are not summed) for which the area is nonattainment; each 

individual emission point in an attainment area with uncontrolled actual 

emissions oftwo tons per year or more ofany individual criteria pollutant 

(pollutants are not summed); each individual emission point with uncontrolled 

actual emissions oflead greater than one hundred pounds per year, regardless 

ofwhere the source is located. 

D.B.3.b. Non-criteria Reportable Pollutants 

For non-criteria reportable pollutants, Air Pollutant Emission Notices are 

required for each individual emission point with uncontrolled actual emissions 

that exceed the de minimis levels as detennined following the procedures set 

forth in Appendix A. 

II.B.4. Source Grouping . 

Grouping ofmultiple emission points on a single Air Pollutant Emission Notice shall 

be allowed as often as possible, provided the overall goals ofreceiving accurate and 

verifiable emissions infonnation are not compromised. The following guidelines 

shall be used to delineate occasions when grouping can be allowed. These are 

intended to be used as guidelines only, and specific questions regarding grouping 

should be directed to the division. 

Multiple pieces of equipment or processes from a single facility may be grouped or 

associated together and reported on one single Air Pollutant Emission Notice 

provided the individual sources of emissions meet the following guidelines: 

Regulation No.3 Part A, Page 30 

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II.B.4.a. 	 All of the aggregated sources have identical source classification codes and 

emission factors for criteria pollutants; 

II.B.4.b. 	 Each ofthe aggregated sources share a similar location within the facility; 

II.B.4.c. 	 Similar sources regulated under the New Source Performance Standards 

(Regulation No.6) and non-New Source Performance Standard sources 

should not be grouped; 

II.B.4.d. 	 None of the individual sources are required to monitor emissions through the 

use ofcontinuous emission monitors; 

II.B.4.e. 	 Each ofthe individual emission points has fuel usage, production, and a 

consumption level which are indistinguishable from the other points which 

have been grouped on the Air Pollutant Emission Notice; 

II.B.4.f. 	 None ofthe individual sources grouped on the Air Pollutant Emission Notice 

has previously been issued its own separate emissions permit. 

The division maintains its authority to require individual separate Air 

Pollutant Emission Notices for any process or activity. 

The division may allow a source to deviate from this emission point grouping 

criteria upon a showing that an alternative is reasonable and will not 

compromise the overall goals ofreceiving accurate and verifiable emissions 

information. 

II.B.S. 	 Uncontrolled Actual Emissions 

Uncontrolled actual emissions, for the purposes ofAir Pollutant Emission Notice 

reporting and construction permit requirements, means the annual emission rate 

corresponding to the annual process rate listed on the Air Pollutant Emission Notice 

form, without consideration of any emission control equipment or procedures. 

The division may allow a source to forego calculating or estimating its uncontrolled 

actual emissions of hazardous air pollutants upon a showing by the source and a 

determination by the division that the creation ofsuch data is unreasonably costly, 

technically impractical or not reasonably related to information necessary for making 

regulatory decisions with respect to that source. The division's final determination 

may be appealed to the commission by the source. 

II.B.6. 	 Air Pollutant Emission Notices and revised Air Pollutant Emission Notices shall be 

based on calendar years (January through December). 

II.B.7. 	 The emissions noted on the current Air Pollutant Emission Notice on file with the 

division shall be used for emission fee calculations as described in section II.I.4., of 

Regulation, Part A. 

II.B.S. 	 Reserved. 

Regulation NO.3 	 Part A, Page 31 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 32 

ILB.9. Criteria pollutants are: carbon monoxide, nitrogen oxides, sulfur dioxide, PMIO, total 

suspended particulate matter, ozone, volatile organic compounds, lead, fluorides, 

sulfuric acid mist, hydrogen sulfide, total reduced sulfur, reduced sulfur compounds, 

municipal waste combustor organics, municipal waste combustor metals, and 

municipal waste combustor acid gases. 

II.B.IO. Reserved. 

II.C. Revised Air Pollutant Emission Notices 

II.C.I. A revised Air Pollutant Emission Notice shall be filed: 

II.C.I.a. 	 Annually whenever a significant change in emissions occurs, as defined below 

in section II.Co2. 

II.C.I.b. 	 Whenever there is a change in the owner or operator of any facility, process, 

or activity; or 

II.C.I.c. 	 Whenever new control equipment is installed, or whenever a different type of 

control equipment replaces an existing type ofcontrol equipment (revised Air 

Pollutant Emission Notices are not required for routine maintenance, repair, or 

replacement ofcontrol equipment); or 

II.C.l.d. 	 Whenever a permit limitation must be modified; or 

II.C.l.e. 	 Before the Air Pollutant Emission Notice expires. 

II.C.I.f. 	 A revised Air Pollutant Emission Notice is not required whenever the location 

of a portable facility, process, or activity is changed, however, the owner or 

operator of such source must file a relocation notice. Such notice shall be 

received by the division at least ten days prior to the change in location. 

Alternatively, the owner or operator of a portable source may request written 

approval from the division to report multiple relocations. Relocation forms 

are available at the division offices. 

II.C.l.g. 	 A revised Air Pollutant Emission Notice is not required for emergency or 

backup generators that are ancillary to the main units at electric utility 

facilities, and that have a permit under Part C or D ofTitle I, or Title V ofthe 

Federal Act. 

II.C.1.h. 	 A revised Air Pollutant Emission Notice is not required for emergency or 

backup generators for electric power generating facilities that are not ancillary 

to a main unit at an electric utility facility, and that have a permit containing 

limits on the physical or operational capacity ofthe source to emit a pollutant 

such that the source is not considered to be a major stationary source as 

defined in section I.B.59., ofRegulation No.3, Part A. Ifan owner or 

operator ofsuch a source chooses to file a revised Air Pollutant Emission 

Notice, the Air Pollutant Emission Notice shall list the average of the actual 

emissions for the preceding three years. 

Regulation NO.3 	 Part A, Page 32 

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ILC.2. Significant change, for the purposes ofthis section means: 

II.C.2.a. 	 For any non-criteria reportable pollutant if the emissions increase by fifty 

percent or five tons per year, whichever is less, above the level reported on the 

last Air Pollutant Emission Notice submitted to the division. 

fl.C.2.b. 	 For criteria pollutants: 

II.C.2.b.{i) 	 For sources emitting less than one hundred tons per year, a change in 

actual emissions offive tons per year or more, above th~.Ievel reported on 

the last Air Pollutant Emission Notice submitted to the division, of any 

such air pollutant; or 

II.C.2.b.{ii) 	 For volatile organic compound sources in ozone nonattainment areas 

emitting less than one hundred tons of volatile organic compound per year, 

a change in actual emissions ofone ton per year or more or five percent, 

whichever is greater, above the level reported on the last Air Pollutant 

Emission Notice submitted to the division; or 

II.C.2.b.{iii) 	 For sources emitting one hundred tons per year or more, a change in actual 

emissions of five percent or fifty tons per year or more, whichever is less, 

above the level reported on the last Air Pollutant Emission Notice 

submitted to the division, ofany such air pollutant; or 

II.C.2.b.{iv) 	 A change in actual emissions, above the level reported on the last Air 

Pollutant Emission Notice submitted to the division, of fifty pounds of 

lead. 

fl.C.3. Timefrarne for Revised Air Pollutant Emission Notice submittals 

II.C3.a. 	 Revised Air Pollutant Emission Notices shall be submitted no later than 

within thirty days before the five-year term expires. 

fl.C.3.b. 	 Owners or operators of sources that are required to obtain a permit revision 

must file a revised Air Pollutant Emission Notice along with a request for 

permit revision. A revised permit must be obtained before the change at the 

source occurs. 

fl.C.3.c. 	 Sources submitting revised Air Pollutant Emission Notices to inform the 

division of a change in actual emission rates must do so by April 30 ofthe 

following year (e.g., a change in emissions in calendar year 1993 must be 

reported by April 30, 1994). I 

II.C.3.d. Air Pollutant Emission Notices for changes in control equipment must be i 

submitted before the change occurs. 

t 

II.D. Exemptions from Air Pollutant Emission Notice Requirements I 

I1.D.L Notwithstanding the exemptions contained in Section II.D.1., Air Pollutant 

Emission Notices must be filed for all emission units specifically identified in the 

Regulation No.3 	 Part A, Page 33 

i 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 34 

applicability section of any subpart ofPart A ofRegulation No.6 (New Source 

Performance Standards) and/or Regulation No.8 (Hazardous Air Pollutants), Parts 

A,C,D, and E. However, Air Pollutant Emission Notices need not be filed for wet 

screening operations subject to Subpart 000 of the New Source Perfonnance 

Standards ifthe exemption in section II.D.I.cccc. is applicable. 

Stationary sources having emission units that are exempt from the requirement to file 

an Air Pollutant Emission Notice must nevertheless comply with all requirements that 

are otherwise applicable specifically to the exempted emission units, including, but 

not limited to: Title V, Prevention ofSignificanroeterioration, nonilttainment New 

Source Review, opacity limitations, odor limitations, particulate matter limitations 

and volatile organic compounds controls. 

An applicant may not omit any information regarding APEN exempt emission units 

in any permit application ifsuch infonnation is needed to detennine the applicability 

of- Title V(part C ofthis Regulation No.3), Prevention ofSignificant Deterioration 

(Section IV.D.3., Part B ofthis Regulation No.3), or nonattainment New Source 

Review(Section IV.D.2.a., Part B of this Regulation No.3). 

The following sources are exempt from the requirement to file Air Pollutant Emission 

Notices because by themselves, or cumulatively as a category, they are deemed to 

have a negligible impact on air quality. 

II.D.l.a. Individual emission points in nonattainment areas having uncontrolled actual 

emissions of any criteria pol1utant ofless than one ton per year, and individual 

emission points in attainment areas having uncontrolled actual emissions of 

any criteria pollutant of less than two tons per year, and each individual 

emission point with uncontrolled actual emissions of lead less than one 

hundred pounds per year, regardless of where the source is located. 

II.D.I.b. Individual emission points of non-criteria reportable pollutants having 

uncontrolled actual emissions less than the de minimis levels as determined 

following the procedures set forth in Appendix A. 

II.D.I.c. Air conditioning or ventilating systems not designed to remove air pollutants 

generated by or released from other processes or equipment. 

II.D .I.d. Fireplaces used for recreational purposes, inside or outside. 

II.D .I.e. Fires and equipment used for noncommercial cooking of food for human 

consumption, or cooking of food for human consumption at commercial food 

service establishments, except for char broilers and wood fired equipment (but 

not including campfires) in PM 10 nonattainment areas. Charbroiled shall 

mean a cooking device in a commercial food service establishment, either gas 

fired or using charcoal or other fuel, upon which grease drips down upon an 

open flame, charcoal or embers. 

II.D.I.f. Safety flares used to indicate danger to the pUblic. 

Regulation No.3 Part A, Page 34 

5 CCR 1001-5 CODE OF COLORADO REGULATIONS 

ID 2002 Wei! Publishing for the State of Colorado 25 CR 12, 12-02 	 Page 35 

All Rights Reserved 

IT.D.I.g. 

IT.D.I.h. 

IT.D.Li. 

II.D.l.i.(i) 

II.D.l.i.(ii) 

Agricultural operations such as fanning, cultivating, harvesting, seasonal crop 

drying, grain handling operations that are below New Source Performance 

Standards de minimis levels (including milling and grain elevator operations), 

and animal feeding operations that are not housed commercial swine feeding 

facilities as defined in Regulation No.2, Part B. This exemption does not 

apply to an agricultural operation that: (I) is a major stationary source 

(Regulation No.3 Part A, section 1.B.59); (2) meets or exceeds the storage 

capacity thresholds ofa federal New Source Performance Standard 

(Regulation No.6, Part A); or (3) participates in the early reduction program 

ofthe Federal Act, section 112. Ancillary operations such as"fueling stations 

located at fanns or ranches are not exempt from Air Pollutant Emission Notice 

and permit requirements unless otherwise below the de minimis emission 

levels contained in this regulation, and are not exempt from other applicable 

regulation promulgated by the commission. 

Emissions from, or construction, or alteration ofresidential structures, 

including all buildings or other structures used primarily as a place of 

residence, and including home heating devices. 

Laboratories and research & development facilities: 

Noncommercial (in-house) experimental and analytical laboratory 

equipment that is bench scale in nature including quality control/quality 

assurance laboratories, process support laboratories, environmental 

laboratories supporting a manufacturing or industrial facility, and research 

and development laboratories. 

Research and development activities that are of a small pilot scale and that 

process less than ten thousand pounds oftest material per year; 

II.D.I j.(iii) 	 Small pilot scale research and development projects less than six months 

in duration with controlled actual emissions less than five hundred pounds 

of any criteria pollutant or ten pounds of any non-criteria reportable 

pollutant. 

I1D.l.j. 	 Disturbance ofsurface areas for purposes ofland development, that do not 

exceed twenty-five contiguous acres and that do not exceed six months in 

duration. (This does not include mining operations or disturbance of 

contaminated soil). 

IT.D.l.k. 	 Each individual piece of fuel burning equipment, other than smokehouse 

generators and internal combustion engines, that uses gaseous fuel, and that 

has a design rate less than or equal to five million British thermal units per 

hour. (See definition offuel burning equipment, Common Provisions 

Regulation). 

II.D.I.I. 	 Internal combustion engines powering portable drilling rigs. 

(.; Regulation No.3 	 Part A, Page 35 I 

I 

r 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

i 

i 

~ 
Page 36 

II.D.l.m. 

II.D.l.n. 

II.D.I.o. 

II.D.1.p. 

II.D.1.q. 

II.D.l.r. 

II.D.I.s. 

II.D.I.t. 

II.D.I.u. 

II.D.l.v. 

II.D.I.w. 

II.D.l.x. 

II.D.I.y. 

II.D.l.z. 

II.D.1.aa. 

II.D.l.bb. 

II.D.l.cc. 

II.D.l.dd. 

Regulation No.3 

5 CCR 1001-5 

Petroleum industry flares, not associated with refineries, combusting natural 

gas containing no hydrogen sulfide except in trace (less than five hundred 

parts per million weight) amounts, approved by the Colorado Oil and Gas 

Conservation Commission and having uncontrolled emissions of any pollutant 

of less than five tons per year. 

Chemical storage tanks or containers that hold less than five hundred gallons, 

and that have an annual average daily throughput of less than twenty-five 

gallons. 

Unpaved public and private roadways, except for haul roads located within a 

stationary source site boundary. 

Sanding ofstreets and roads to abate traffic hazards caused by ice and snow. 

Open burning activities, except that all reporting and pennitting requirements 

that apply to such operations must be followed (see Regulation No. 9).+ 

Brazing, soldering, or welding operations, except those that use lead based 

compounds. All welding that occurs strictly for maintenance purposes is 

exempt. 

Street and parking lot striping. 


Battery recharging areas. 


Aerosol can usage. 


Sawing operations, that are ancillary to facility operations, and are not part of 


the production process. 


The process ofdemolition and re-bricking of furnaces and kilns. This does not 


include subsequent operation ofsuch furnaces or kilns. 


Road and lot paving operations at commercial and industrial facilities, except 


that asphalt and cement batch plants require Air Pollutant Emission Notices 


and permits, unless exempt under some other section. 


Adhesive use that is not related to production. 


Fire training activities. 


Caulking operations that are not part of a production process. 


Landscaping and site housekeeping devices equal to or less than ten 


horsepower in size (lawnrnowers, trimmers, snow blowers, etc.). 


Fugitive emissions from landscaping activities (e.g., weeding, sweeping). 

Landscaping use ofpesticides, fumigants, and herbicides. 

Part A, Page 36 

CODE OF COLORADO REGULATIONS 
c 2002 Well Publishing for the State of Colorado 25 CR 12, 12-02 Page 37 

All Rights Reserved 

II.D.l.ee. Crude oil truck loading equipment at exploration and production sites where 

the loading rate does not exceed 10,000 gallons of crude oil per day averaged 

on an annual basis. Condensate truck loading equipment at exploration and 

production sites that splash fill less than 6750 barrels of condensate per year 

or that submerge fill less than 16308 barrels of condensate per year. 

II.D.I.fT. Emergency events such as accidental fires. 

II.D.1.gg. Smoking rooms and areas. 

II.D.I.hh. Plastic pipe welding. 

II.D.l.ii. Vacuum cleaning systems used exclusively for industrial, commercial, or 

residential housekeeping purposes. 

II.D.l.jj. Beauty salons. 

II.D.I.kk. Operations involving acetylene, butane, propane and other flame cutting 

torches. 

II.D.I.ll. Pharmacies. 

II.D.I.mm. Chemical storage areas where chemicals are stored in closed containers, and 

where total storage capacity does not exceed five thousand gallons. This 

exemption applies solely to storage of such chemicals. This exemption does 

not apply to transfer ofchemicals from, to, or between such containers. 

II.D.I.nn. Architectural painting, roof coating material and associated surface 

preparation (except for sandblasting and except for volatile organic compound 

emissions, associated with surface preparation, above Air Pollutant Emission 

Notice de minimis levels) for maintenance purposes at industrial or 

commercial facilities. 

II.D.l.oo. Emissions that are not criteria or non-criteria reportable pollutants (See 

section I.B.39., Part A) (These emissions include methane, ethane, and carbon 

dioxide). 

II.D.I.pp. Janitorial activities and products. 

II.D.I.qq. Grounds keeping activities and products. 

II.D.I.rr. Sources ofodorous emissions that do not utilize emission control equipment 

for control of odorous emissions. This exemption applies to the odor 

emissions only. All other emissions are subject to other exemptions set forth 

in this regulation. This exemption does not exempt any source from the 

requirements of Regulation No.2. 

II.D.I.ss. Truck and car wash units. 

II.D.I.tt. Office emissions, including cleaning, copying, and restrooms. 

Regulation No.3 Part A, Page 37 

CODE OF COLORADO REGULATIONS 5 CCR 1001-5 

Page 38 

II.D.I.uu. Oil production wastewater (produced water tanks), containing less than one 

percent by volume crude oil on an annual average, except for commercial 

facilities that accept oil production wastewater for processing. 

n.D.I.vv. Electrically operated curing ovens, drying ovens and similar activities, 

articles, equipment, or appurtenances. This exemption applies to the ovens 

only, and not to the items being dried in the ovens. 

II.D.l.ww. Equipment used exclusively for portable steam cleaning. 

II.D.I.xx. Blast cleaning equipment using a suspension of abrasive in water and any 

exhaust system or collector serving them exclusively. 

n.D.I.yy. Commercial laundries (except dry cleaners) that do not bum liquid or solid 

fuel. 

n.D.I.u. Storage ofbutane, propane, or liquefied petroleum gas in a vessel with a 

capacity ofless than sixty thousand gallons, provided the requirements of 

Regulation No.7, section IV. are met, where applicable. 

II.D.I.aaa. Storage tanks of capacity less than forty thousand gallons of lubricating oils or 

used lubricating oils. 

IlD.l.bbb. Venting ofcompressed natural gas, butane or propane gas cylinders, with a 

capacity ofone gallon or less. 

IlD.l.ccc. Fuel storage and dispensing equipment in ozone attainment areas operated 

solely for company owned vehicles where the daily fuel throughput is no more 

than four hundred gallons per day that is calculated as an annual average. 

Sources in the Denver-Metropolitan ozone attainment-maintenance area must 

utilize Stage I vapor recovery on all tanks greater than 550 gallons capacity, 

as required by Regulation No.7. in order to take this exemption. 

n.D.l.ddd. Crude oil storage tanks with a capacity of40,000 gallons or less. 

n.D.I.eee. Indirect sources are exempt until a permit regulation specific to indirect 

sources is promulgated by the commission. 

n.D.l.fIf. Storage tanks meeting all of the folloWing criteria: 

IlD.I.fIf.(i) Annual throughput is less than four hundred thousand gallons; and 

II.D.I.fff.(ii) The liquid stored is one of the following: 

II.D.l.fff.(ii)(A) Diesel fuels I-D, 2-D, or 4-6; 

I1.D.1.fff.(ii)(B) Fuel oils #1 through #6; 

II.D.1.fff.(ii)(C) Gas turbine fuels I-GT through 4-GT; 

Regulation No. 3 Part A, Page 38 

5 CCR 1001-5 CODE OF COLORADO REGULATIONS 

02002 Weil Publishing for the State of Colorado 25 CR 12, 12-02 Page 39 

All Rights Reserved 

II.D.l.fff.(ii)(D) An oiVwater mixture with a vapor pressure equal to or lower than 

that of diesel fuel (Reid Vapor Pressure of0.025 pounds per square 

inch absolute). 

II.D.I.ggg. Each individual piece of fue] burning equipment that uses gaseous fuel, and 

that has a design rate less than or equal to ten million British thermal units per 

hour, and that is used solely for heating buildings for personal comfort. 

II.D.l.hhh. Natural gas vehicle fleet fueling facilities. 

n.D.l.iii. Electric motors driving equipment at non-commercial machining shops. 

II.D.l.jjj. Recreational swimming pools. 

n.D.l.kkk. Forklifts. 

n.D.l.llI. Exploration and production sites (well site and associated equipment) shall 

provide written notice to the Colorado Oil and Gas Conservation Commission 

ofproposed drilling locations prior to commencement ofsuch operations. Air 

Pollutant Emission Notices are not required until after exploration and/or 

production drilling, workovers, completions, and testing are finished. If 

production will result in reportable emissions, the owner or operator shaH file 

an Air Pollutant Emission Notice with the division within thirty days after the 

report of first production is filed with the appropriate state or federal agency 

but JlO later than 90 days following the first day ofproduction. 

II.D.I.mmm. Handling equipment and associated activities for glass that is destined for 

recycling. 

n.D.1.nnn. Fugitive emissions ofhazardous air pollutants that are natural constituents of 

native soils and rock (not added or concentrated by chemical or mechanical 

processes) from under ground mines or surface mines unless such source is a 

major source ofhazardous air pollutants under Part C of the Regulation No.3. 

n.D.l.ooo. The use of pesticides, fumigants, and herbicides when used in accordance 

with requirements established under the federal Insecticide, Fungicide and 

Rodenticide Act as established by the U.S. EPA (United States Code Title 7, 

Section 136 et seq.). 

n.D.l.ppp. Ventilation of emissions from mobile sources operating within a tunnel, 

garage, or building. 

n.D.l.qqq. Non-asbestos demolition. 

II.D.1.rn. Sandblast equipment when the blast media is recycled and the blasted material 

is collected, including small sandblast glove booths. 

II.D.l.sss. Stationary Internal Combustion Engines that meet the following 

specifications: 


Regulation No.3 Part A, Page 39 


CODE OF COLORADO REGULATIONS 5 CCR 1001-5 

Page 40 

II.D.l.sss.(i) Less than or equal to 175 horsepower that operate less than 1,450 hours 

per year; or 

II.D.l.sss.(ii) Greater than 175 horsepower and less than or equal to 300 horsepower that 

operate less than 850 hours per year; or 

II.D.l.sss.(iii) Greater than 300 horsepower and less than or equal to 750 horsepower that 

operate less than 340 hours per year. 

II.D.I.ttt. Emergency power generators that: 

II.D.l.ttt.(i) Have a rated horsepower ofless than 260; or 

II.D.l.ttt.(ii) Operate no more than 250 hours per year and have a rated horsepower of 

less than 737; or 

II.D.I.ttt.(iii) Operate no more than 100 hours per year and have a rated horsepower of 

less than 1,840. 

II.D.I.uuu. Surface water storage impoundment ofnot potable water and storm water 

evaporation ponds. 

n.D.l.vvv. Non-potable water pipeline vents. 

II.D.l.www. Stearn vents and safety release valves. 

n.D.l.xxx. Deaerator/vacuum pump exhausts. 

II.D.l.yyy. Seal and lubricating oil systems for stearn turbine electric generators. 

n.D.I.zxz. Venting ofnatural gas lines for safety purposes. 

n.D.1.aaaa. Chemical Storage Tanks 

n.D.1.aaaa.(i) Sulfuric acid storage tanks not to exceed ten thousand five hundred 

gallons capacity. 

n.D.1.aaaa,(ii) Sodium hydroxide storage tanks. 

n.D.1.bbbb. 	 Containers, reservoirs, or tanks used exclusively for dipping operations that 

contain no organic solvents for coating objects with Qils, waxes, greases, or 

natural or synthetic resins. 

II.D.I.cccc. 	 Wet screening operations notwithstanding the applicability ofthe New Source 

Performance Standards included in the Code ofFederal Regulations, Title 40, 

Part 60, Subpart 000. 

II.D. Ldddd. 	 Nonroad engines as defined in Part A, section I.B.40. of this regulation 

except certain nonroad engines subject to state-only air pollutant emission 

notice and pennitting requirements pursuant to Part A., section I.B.40.c. 

Regulation No. 3 	 Part A, Page 40 

5 CCR 1001-5 	 CODE OF COLORADO REGULATIONS 

(i:) 2002 Weil Publishing for the State of Colorado 2S CR 12, 12-02 Page 41 

All Rights Reserved 

H.D.l.eeee. 	 Any condensate storage tank with a production rate of 730 barrels per year or 

less or condensate storage tanks that are manifolded together with a 

production rate 0[730 barrels per year or less that are owned and/or operated 

by the same person, and are located at exploration and production sites. 

ll.D.l.eeee.(i) 	If an Air Pollutant Emission Notice has not previously been filed for an 

existing condensate storage tank or condensate storage tanks that are 

manifolded together, an Air Pollutant Emission Notice Must be filed on 

or before March 31, 2003, except as provided below. 

H.D.l.eeee.(ii) A single owner or operator of more than 50 existing condensate storage 

tanks for which Air Pollutant Emission Notices have not previously been 

filed shall file at least one-third ofthe required APENs by January 31, 

2003, at least two-thirds by February 28,2003, and the remainder by 

March 31, 2003. 

1I.D.l.eeee.(iii) The need to file APENs for condensate storage tanks at operations 

located downstream of natural gas exploration and production facilities, 

but not including natural gas processing plants, shall be evaluated in light 

of a throughput limit to be established by the division based upon data 

acceptable to the division that the estimated emissions from such tanks (or 

manifolded tanks) at the specified throughput is equal to or less than the 

appropriate APEN de minimis level set forth in Part A, section ll.D.l.a. of 

this regulation No.3. The throughput level may be established for either a 

particular company's operations, and, if supported, for natural gas 

gathering operations generally. In the latter case, the division would 

establish the accepted APEN throughput level by policy. 

1I.D.2. 	 An Air Pollutant Emission Notice must be filed for all incinerators. 

ll.D.3. 	 Air Pollutant Emission Notices are required for emergency and backup generators 

that are ancillary to the main units at electric utility facilities however, these units 

may be included on the same Air Pollutant Emission Notice as the main unit. 

ll.D.4. 	 Reserved. 

1I.D.5. 	 Any person may request the division to examine a particular source category or 

activity for exemption from Air Pollutant Emission Notice or permit requirements. 

ll.D.5.a. 	 Such requests shall be made separately from the permit application review 

procedure. 

1I.D.S.b. 	 Such requests shall include documentation indicating that emissions from the 

source category or activity have a negligible impact on air quality and public 

health in Colorado, based on, but not limited to, the following criteria. 

1I.D.S.b.(i) 	 Emissions from the source or activity are below the Air Pollutant 

Emission Notice or pennit emission de minimis levels set forth in this 

Regulation No.3; or 

Regulation No.3 	 Part A, Page 41 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 42 

II.D.5.b.(ii) The existing division emission inventory is sufficient to indicate that the 

source or activity has a negligible impact; or 

IlD.5.b.(iii) For pennit exemptions, criteria (i) and/or (ii) are met, and the source or 

activity has no applicable requirement that applies to it, and the division 

finds that monitoring or record keeping are not necessary. 

II.D.5.b.(iv) Exemptions shall not be granted for any source or activity that is subject to 

any federal applicable requirement. The division shall detennine on a 

case-by-case basis ifsources or activities subject to state-only regulations 

may be granted an exemption. 

II.D.5.c. 	 None ofthe activities submitted as exemption requests to the division may be 

taken by a source until the commission has duly adopted the exemptions as 

revisions to this Regulation No.3 and the U.S. EPA has approved the 

exemption requests. 

n.D.5.d. 	 The division will annually submit the list of requested exemptions to the 

commission for adoption and the U.S. EPA for approval, along with the 

division's preliminary detennination ofthe appropriateness of each request for 

exemption. 

II.D.5.e. 	 In order to be made a part ofthe division's annual submission in a particular 

year, a source must submit its request(s) for exemption along with all the 

required documentation supporting such request, no later than August 1 ofthat 

year. 

II.D.6. 	 Commercial (for-hire) laboratories whose primary responsibilities are to perfonn 

qualitative or quantitative analysis on environmental, clinical, geological, forensic, or 

process samples may estimate emissions for purposes ofAir Pollutant Emission 

Notice reporting based upon a mass balance calculation utilizing inventory and 

purchase records ofsolvents and reagents. Such laboratories may, at their discretion, 

group emission points ifsuch grouping meets the grouping criteria outlined in this 

regulation. All inert samples are exempt from Air Pollutant Emission Notice 

reporting. Emissions from samples subjected to analysis provided to such 

laboratories for analysis and testing, and by-products that result from sample testing, 

are exempt from Air Pollutant Emission Notice reporting, provided such samples 

subjected to analysis are less than five gallons for liquids, or five pounds for solids. 

n.D.7. 	 Research and development activities that do not fall within the small scale exemption 

in section n.D.l.i., may estimate emissions for purposes ofAir Pollutant Emission 

Notice reporting based upon either a mass balance calculation utilizing inventory and 

purchase records, or best engineering judgment. Such facilities may file an Air 

Pollutant Emission Notice or revised Air Pollutant Emission Notice on an annual 

basis by April 30 ofthe year following the project's conclusion for each project that is 

not exempt under section Ii.D.l.i., irrespective of section II.C., herein (revised Air 

Pollutant Emission Notice requirements), such Air Pollutant Emission Notices shall 

be filed on a per project basis and shall be based on controlled actual emissions. 

Regulation No.3 	 Part A, Page 42 

5 CCR 1001-5 	 CODE OF COLORADO REGULATIONS 

@ 2002 Weil Publishing for the State of Colorado 25 CR 12. 12-02 	 Page 43 

All Rights Reserved 

III. 	 ADMINISTRATIVE PERMIT AMENDMENT PROCEDURES 

m.A 	 An application for an administrative pennit amendment shall be prepared on forms 

supplied by the division. 

lILB. 	 Within sixty calendar days after receipt of a complete application for an 

administrative permit amendment the division shall issue its final determination on 

such application in accordance with the following: 

III.B.!. 	 Deny the application for an administrative permit. amendment; or 

III.B.2. 	 Grant the application and incorporate any such changes into the permit providing 

such permit revisions are made pursuant to this Part A. section ill. 

lILe. 	 A source may implement the changes addressed in the application for an 

administrative amendment immediately upon submittal ofrequest, subject to the final 

determination ofthe division. 

ill.D. 	 As required under the Federal Act, the division shall transmit to the Administrator a 

copy ofeach revised permit made pursuant to an administrative permit amendment 

under this provision. 

III.E. 	 No public notice or review by affected states shall be necessary for permit revisions 

made pursuant to administrative amendment procedures. 

III.F. 	 Administrative permit amendments for purposes ofthe acid rain portion of a permit 

shall be governed by regulations promulgated under Title IV ofthe Federal Act, 

found at Code ofFederal Regulations Title 40, Part 72. 

IV . 	 OPERATIONAL FLEXIBILITY 

IV.A 	 Alternative operating scenarios 

No pennit revision is required for reasonably anticipated operating scenarios 

identified by the source in its application for a permit and approved by the division, 

provided the permit contains terms and conditions that: 

IV.At. 	 Require the source, contemporaneously with making a change from one operating 

scenario to another. to record in a log at the permitted facility a record ofthe scenario 

under which it is operating; 

IV.A2. 	 Ensure that the tenns and conditions of each such alternative scenario meet all 

applicable requirements ofthe state and Federal Act. 

IV.A3. 	 Extend the permit shield to all operating permit terms and conditions under each such 

operating scenario. 

IV.B. 	 Trading based on the permit 

Regulation No.3 	 Part A, Page 43 

CODE OF COLORADO REGULATIONS 	 5 CCR 10tU-5 
Page 44 

Ifallowed by the applicable state implementation plan, no pennit revision shall be 

required under any approved economic incentives, marketable pennits, emissions 

trading and other similar programs or processes for changes in emissions that are 

provided for in the pennit. The permit applicant must request such provisions to be 

included in its permit, and if approved by the division, the pennit shall contain tenns 

and conditions that: 

N .B.I. For operating permits, include all tenns required under section V.C. ofPart C; 

N.B.2. Ensure that changes reSUlting from such increases and decreases in emissions meet all 

applicable requirements under the state and Federal Acts; 

N.B.3. Extend the pennit shield to all operating pennit tenns and conditions that allow such 

increases and decreases in emissions. 

N.C. Emissions trading under pennit caps 

No pennit revision shall be required where an applicant requests, and the division 

approves such request, for a pennit containing tenns and conditions allowing for the 

trading ofemissions increases and decreases in the pennitted facility. Procedures for 

such changes are: 

N.C.I. For operating permits, the pennit shall contain terms and conditions required pursuant 

to section V.C. ofPart C; 

N.C.2. The pennit applicant shall include in its application proposed replicable procedures 

and permit tenns that ensure the emissions trades are quantifiable; 

N.C.3. Any emissions units for which emissions are not quantifiable or for which there are 

no replicable procedures to enforce the emissions trades shall not be included in this 

provision allowing emissions trading without pennit revision; 

N .C.4. The source shall comply with all other applicable requirements. 

N.C.5. The source shall provide a minimum of seven days written notification in advance of 

the proposed changes to the division and to the Administrator. The notice must be 

received by the division no later than seven days in advance ofthe proposed changes. 

The source and the division shall attach each such notice to their copy ofthe relevant 

permit. The notice shaH contain: 

N.C.S.a. 	 When the change will occur; 

N.C.5.b. 	 A description of the changes in emissions that will result and how these 

increases and decreases in emissions will comply with the tenns and 

conditions ofthe permit; 

N .C.5.c. The pennit shield shall extend to all operating pennit terms and conditions 

that allow such increases and decreases in emissions. 

Regulation No.3 	 Part A, Page 44 

5 CCR 1001-5 	 CODE OF COLORADO REGULATIONS 

Cl2002 Wei! Publishing for the State of Colorado 25 CR 12, 12-02 Page 45 

All Rights Reserved 

IV.C.6. A source shall be allowed to make such change proposed in its notice on the day 

following the last day of the advance notice described in section IV.C.S., above, ifthe 

division has not responded nor objected to such changes on or before that day. 

V. Certification And Trading OfEmission Reduction Credits Offset And Netting 

Transactions 

V.A. Purpose 

This section establishes procedures for the recording ofcertified emissions reductions 

andfor their use in emission credit transactions. These procedures are intended to: 

V.A.I. Promote economic development and lower the cost ofmeeting pollution control 

requirements while assuring ambient air quality progress and continued air quality 

maintenance; and 

V.A.2. Encourage development ofinnovative pollution control methods and technologies. 

V.A.3. The portions ofRegulation No.3, Part A, section V printed in italics are repealed and 

shall no longer be part ofthis regulation in accordance with the following sentence: 

Pursuant to Colorado Revised Statutes section 24-4-103(5), the commission 

designates the effective date ofthe repeal ofthe italicized portions ofRegulation No. 

3, Part A. section Vas the date on which the US. EPA promulgates a final rule 

adopting the revisions to section V ofthis regulation (and commission Regulation No. 

5) as a permanent part ofthe state implementation plan. 

V.B. Scope 

This section applies to any pollutant regulated under the Colorado Air Quality 

Control Act or the regulations promulgated thereunder in all attainment and 

nonattainment areas ofthe state. This section does not apply to emissions trading 

under permit caps in section IV. c., ofPart A. 

V. C. Definitions 

V.C.1. Alternative compliance methods means the use ofemissions reductions credits to 

meet emissions control requirements in lieu ofan applicable control technique 

guidance method or reasonably available control technology. 

V.C.2. Bubble lets existing sources (or groups ofsources) increase emissions at one 

operation in exchange for compensating extra decreases in emissions at another 

operation. The net result must be equivalent to or better than would have been 

accomplished using conventional source-specific controls. 

V.C.3. Certified emissions reduction means a reduction in emissions below the baseline, that 

has been certified by the division in accordance with the criteria ofsection V.E., and 

that may then be used in an emission credit transaction. 

V.CA. Criteria pollutant means an air pollutant for which a National Ambient Air Quality 

Standard has been promulgated. 

Regulation No.3 Part A, Page 4S 

CODE OF COLORADO REGULATIONS 5 CCR 1001-5 

Page 46 

V.C.S. Emission credit transaction means the use ofcertified emission reduction credits in a 

bubble, netting or offset transaction or as an alternative compliance method. 

V.C.6. Netting is designed to exempt modifications ofexisting major sourcesfrom new 

source review requirements ifthe resultant impact does not exceed any ofthe 

Significant valuesfound in the definition ofsignificant in section IB.59., ofPart A. 

V.C.7. Non-inventoried source means any source that has not been recorded on the 

division:S emission inventory system. 

V.C.8. Offset means a transaction in which a certified emissions reduction is used either to 

avoid causing a violation ofan increment in an attainment area, to meet the 

requirements ofsection IV.D. 2.a. (iii). Part B. regarding the maintenance of 

reasonable further progress towards attainment ofthe National Ambient Air Quality 

Standards in nonattainment areas, or to avoid contributing to visibility or other air 

quality related values impairment in a Class I area. 

V.C.9. Registry means the division:S record ofthe certification and use ofemissions 

reductions. 

V.C.lO. Surplus means emission reductions not required by current regulations, relied onfor 

state implementation plan planning purposes, and not used to meet any other 

regulatory requirement. 

V.C.II. Open Dust means solid or other air borne particulate matter (excluding particulates 

produced directly during combustion) resultingfrom naturalforces orfrom surface 

use or disturbance, including, but not limited to, all dust from agriculture, 

construction. forestry. unpaved roads. mining. exploration. or similar activities in 

which earth is either moved, stored. transported or redistributed. 

V.C.12. Baseline emissions are equal to the product ofthe: 

V.Cl2.a. 	 Emission Rate (ER), specified in tenns ofmass emission per unit of 

production or throughput (e.g., pounds sulfur dioxide per million British 

thermal units orpounds ofvolatile organic compounds per weight ofsolids 

applied); 

V.C12.b. 	 Average hourly capacity utilization (CU) e.g., millions ofBritish thermal units 

per hour or weight ofsolids applied per hour; and 

V.Cl2.c. 	 Number ofhours ofoperation (II) during the relevant time period i.e.• 

baseline emissions = ER x CUx H. Net baseline emissions for a bubble are 

the sum ofthe baseline emissions ofall sources involved in the trade. 

V.D. 	 Procedurefor Certification ofEmissions Reductions and Approval ofTransactions 

V.D.l. 	 The owner or operator ofa source may request the division to certify any emissions 

reduction anticipated to occur after the effective date ofthis section. provided the 

owner or operator files his application prior to the occurrence ofthe reduction. at a 

time at which the source is emitting the baseline emissions ofthe subject pollutant. 

Regulation No.3 	 Part A, Page 46 

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Sources that shutdown prior to the application to bank or trade have zero emissions, 

and therefore no credit is available. 

V.D.2. Upon receiving an application for certification, the division may require the 

applicant 10 submit all data and calculations necessary to verify the baseline 

emissions or the reduction ofemissions below the base level including, but not limited 

to, documentation ofoperating hours and inputs. The division may also require the 

applicant to perform source tests to establish the baseline emissions or the reduction 

ofemissions below the baseline emissions. The division shall not certify reductions 

anticipated to occur after the effective date ofthis regulation until the reductions 

have occurred and been verified. 

V.D.3. The division shall maintain an emissions reduction registry, in which it shall maintain 

a record ofall certified emissions reductions, and ofthe use ofcertified emissions 

reductions in emission credit transactions. The information contained in such 

registry shall include the name and address ofthe owner or operator ofthe source 

creating the emissions reduction, the location ofthe source, its stackparameters, the 

temperature and velocity ofits plume, particle size, the existence ofany hazardous 

pollutants, daily and seasonal emission rates, and any other data that might 

reasonably be necessary to evaluate future use. 

V.D.4. Ifthe division determines that certification should be granted it shall modify the 

permit ofthe applicant to provide that the allowable emissions are equal to the level 

ofcurrent emissions utilized in the calculation ofthe emissions reduction. The owner 

or operator ofa source not required to obtain a permit by provisions oflaw other 

than this section shall be required to apply for and accept a permit as a condition of 

obtaining a certified emissions reduction. Such permits shall contain only those 

conditions necessary to ensure the enforcement ofthe emissions limitations 

applicable to the source as a result ofcertification ofits emissions reduction. 

V.D.S. The amount ofthe emissions reduction to be certified and entered in the registry shall 

be calculated asfollows: 

"v'D.5.a. 	 For any emissions reduction that has occurred in an attainment area, the 

amount ofthe certified emissions reduction shall be 90percent ofthe amount 

by which emissions have been reduced below the baseline emissions. 

"V.D.5.b. 	 For any emissions reduction that has occurred in a nonattainment area, the 

amount ofthe certified emission reduction shall be 80 percent ofthe amount 

by which emissions have been reduced below the baseline emissions. 

"v'D.5.c. 	 For bubbles in nonattainment areas that need, but lack, approved 

demonstrations ofattainment, i.e., areas with unapproved state 

implementation plans, a greater discount may be taken. This discount will be 

based on the area's total baseline emissions, the target emissions for 

attainment, the emissions for the projected attainment year and the reductions 

needed to achieve attainment. These values are dynamic and so the discount 

value may change from year to year but will never be less than 20 percent. 

These transactions will require a state implementation plan revision. 

Regulation No.3 	 Part A, Page 47 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 48 

V.D.6. 


V.D.7. 

V.D.8. 

V.D.9. 

An application may be filed for approval ofthe use ofa certified emissions reduction 

in an emissions credit transaction simultaneously with the filing ofa certification 

application, or within seven years after certification has been granted. Ifthe 

transaction would require the modification ofpermits held by more than one person, 

the application shall bejointly submitted by all potentially affected permittees. The 

commission shall determine whether to approve all bubble and alternative 

compliance method transactions, or any offset transactions that, pursuant to section 

V.H., require a state implementation plan revision. The division shall determine 

whether to approve all netting transactions, or any offset transactions for which no 

state implementation plan revision is required. The commission may approve the use 

ofa certified emissions reduction credit as an alternative compliance method in lieu 

ofa specified control technique guidance method or reasonable available control 

technology. 

Applicationsfor certification ofemissions reductions and approval oftransactions 

shall be made on forms provided by the division. Any source applying for approval of 

an alternative compliance method transaction shall submit to the division a 

construction permit application in accordance with Regulation No.3, Part B, section 

lV.Jor the construction or modification, reflecting the source and proposed use of 

the emissions credit. The application shall contain information sufficient to 

demonstrate that the criteria setforth in section V.F. ofthis Part A are met as well as 

the criteria for approval ofthe state implementation plan revision. The division shall 

review the application andprepare its preliminary analysis in accordance with 

Regulation No.3, Part B, section lV.B. The source requesting approval for the 

transaction and the state implementation plan revision should be granted, and shall 

provide with its petition, a copy ofthe preliminary analysis ofthe division. The 

division shall not grant initial approval ofany such application until the commission 

has approved the transaction, the source has met the conditions placed on the 

transaction by the commission, and the requirements ofall other applicable 

regulations are met. 

Where the owner or operator ofa source requests a state implementation plan 

revision pursuant to this section v., the commission shall set a hearing on the 

proposed revision to be held in accordance with the procedures setforth in Colorado 

Revised Statutes section 25-7-119. With respect to applications for certification of 

emissions reductions, orfor approval ofany netting transactions, or offset 

transactions within the division'sjurisdiction under section V.H.2., the same time 

limitationsfor emission permits asfound in Part B section IV-B., ofthis regulation 

shall apply. 

Applicantsfor certification ofan emissions reduction, orfor approval ofany emission 

credit transaction, shall be assessed fees for time spent by division personnel in 

evaluating such applications in accord with the criteria for assessment ofemissions 

permit fees setforth in section VI C. Where more than one person applies for 

approval ofa transaction, all such persons shall be jointly liablefor thefees 

assessed. Applicants shall be responsiblefor paying such fees regardless ofwhether 

the division approves or denies an application. The costs ofdivision review ofany 

emissions modeling or other information necessary for the division to formulate 

Regulation No.3 Part A, Page 48 

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All Rights Reserved 

recommendations to the commission regarding any proposed emission credit 

transaction shall be included in the costs attributed to the permit application for the 

source(s) seeking approval ofthe transaction and shall be paid by the source 

regardless ofwhether the emission credit transaction is approved. 

V.D.IO. 	 The state shall not utilize a certified emissions reduction in making demonstrations of 

attainment, or reasonable further progress toward attainment ofthe National 

Ambient Air Quality Standards, within seven years after the date ofcertification, or at 

any time after an application for use ofthe certified emissions reduction in a 

transaction has been approved. Where no appli~ation has been filedfor the approval 

ofthe use ofa certified emissions reduction within seven years after certification was 

granted. the state shall subsequently utilize the reduction in making demonstrations of 

attainment, or reasonable further progress towards attainment ofthe National 

Ambient Air Quality Standards. This seven-year period shall be tolled during any 

time in that there is a pending application before the division or the commission for 

approval ofa bubble. netting. or offset transaction based on the certified emissions 

reduction. 

V.D.11. 	 Applicationsfor approval oftransactions involving PMJO (fine particulates for 

Prevention ofSignificant Deterioration increment consumption). sulfur dioxide, 

carbon monoxide, lead, and oxides ofnitrogen (where visibility impacts are of 

concern). shall be subject to the following ambient air quality modeling 

requirements: 

V.D.11.a. 	 De minimis: In general modeling is not required to determine the ambient 

equivalence oftrades in which applicable net baseline emissions do not 

increase and in that the sum ofthe emissions increases, looking only at the 

increasing sources, 15 tons peryearfor PMJ()' 40 tons per yearfor sulfur 

dioxide, 100 tons per yearfor carbon monoxide, 40 tons per yearfor nitrogen 

oxide (where visibility impacts are ofconcern), or 0.6 tons per yearfor lead, 

after applicable control requirements. For purposes ofPrevention of 

Significant Deterioration any increase in PM]o should be modeled. 

v.n.11.b. 	 Levell.' In general, modeling to determine ambient equivalence is not 


required if: 


V.D.11.b.(i) 	 The trade does not result in an increase in applicable net baseline 

emissions; 

v.n.11.b.(ii) 	 The relevant sources are located in the same immediate vicinity (within 

250 meters) ofeach other; 

V.D.11.b.(iii) 	 An increase in baseline emissions does not occur at the source with the 

lower effective plume height, as determined under the U.S. EPA approved 

and division accepted guidelines, as interpreted in the Code ofFederal 

Regulations Title 40, Subpart 52.343. 

V.D.11.b.(iv) 	 No complex terrain is within the area ofsignificant impact (see Figure 1) 

ofthe trade or 50 kilometers, whichever is less; 

Regulation No.3 	 Part A, Page 49 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 50 

V.D. ii.b.(v) Stacks with increasing baseline emissions are sufficiently tall to avoid 

possible downwash situations, as determined by good engineering 

practice; 

V.D.ii.b.(vi) 	 The trade does not involve open dust sources. 

V.D.ii.c. 	 LevellI: Bubble trades that are neither De minimis nor Level I may 

nevertheless be evaluatedfor approval based on modeling to determine 

ambient equivalence limited solely to the impacts ofthe specific emission 

sources involved in the trade, if: 

V.D.ii.c.(i) 	 There is no increase in applicable net baseline emissions; 

V.D.ii.c.(ii) 	 Jfthepotential change in emissions before and after the trade will not 

cause a significant increase in pollutant concentrations at any receptor for 

an averaging time specified in an applicable ambient air quality standard; 

and 

V.D.i i.c.(iii) Such an analysis does not predict any increase in ambient concentrations 

in a Class I or Category I area. However, a bubble will not be approved 

under Leveill where evidence clearly indicates the bubble would create a 

new violation ofan ambient standard or Prevention ofSignificant 

Deterioration increment or would delay the planned removal ofan 

existing violation. The change in concentration from the before-trade 

case to the after-trade case must, in general, be modeled using refined 

models for each appropriate averaging time for the relevant national 

ambient air quality standards for each receptor, using the most recent full 

year ofmeteorological data. Other techniques may be approved where 

sources show they equally well protect national ambient air quality 

standards, applicable Prevention ofSignificant Deterioration increments, 

and visibility. For example, in limited circumstances conservative 

screening models may be acceptable in lieu ofrefined models. In such 

cases, use ofa full year ofmeteorological data may not be necessary. 

Such screening models may be acceptable where: (A) the screening model 

shows that all the emissions from the stack(s) with increasing emissions 

would not produce exceedances ofthe Level IIsignificance values; (B) the 

stackparameters at the stack(s) with increasing emissions do not change; 

and (C) the screening model shows that the increase in emissions at the 

increasing stack(s) would not produce exceedances ofthese significant 

values. 

In determining significant impact for Level II bubble trades, the division 

will use the follOWing significance values to identify trades whose 

potential ambient impact need not be further evaluated before approval: 

8 micrograms/cubic meter (pglmJ) for any twenty-four hourperiodfor 

PMJO; 

Regulation No.3 	 Part A, Page 50 

5 CCR 1001-5 	 CODE OF COLORADO REGULATIONS 

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All Rights Reserved 

4 microgramsicubic meter (pg/mJ) for any annual arithmetic mean for 

PM/o; 

13 microgramsicubic meter (pg/m3) for any twenty-four hour periodfor 

sulfur dioxide; 

46 microgramsicubic meter (pg/mJ) for any three hour periodfor sulfur 

dioxide; 

3 micrograms/cubic meter (pg/mJ) fo.,.any annual periodfor sulfur 

dioxide; 

575 micrograms/cubic meier (pg/m3) for any eight hour periodfor carbon 

monoxide; 

2,300 microgramsicubic meter (pglm3) for anyone hour periodfor carbon 

monoxide; 

0.1 micrograms/cubic meter (pg/m3) for any three month periodfor lead. 

Except that: 

V.D.II.c.(iii)(A) 	 For ojJset transactions, significant impact shall be determined by 

the values found in the table ofsignificant values in section 

lV.D.3.d.(ii} ofthis regulation, Part B. 

V.D.ll.c.(iii)(B) 	 Only process fugitive emissions vented through stacks maybe 

approved in a Level n analysis. 

V.D.ll.c.(iii)(C) 	 Trades involving open dust sources may not be approved in a 

Level II analysis. 

V.D.l1.c.(iii)(D) 	 Trades involving complex terrain cannot be approved with a Level 

II analysis. 

V.D.I1.d. 	 LEVEL IIIfull dispersion modeling considering all sources affecting the 

trade's area ofimpact is required to determine ambient equivalence if 

applicable net baseline emissions will increase as a result ofthe trade, or if 

the trade cannot meet criteria for approval under De Minimis, Levellor 

Levell!. 

V.D.lI.e. 	 Approved Models: 

Modeling: Only US. EPA-approved models may be used in 

banking transactions. Use ofnon-guideline models will be allowed 

once they have been approved according to the requirements of 

section VIl!.A.I., Part A, ofthis regulation. 

V.D.12. 	 Following the certification ofan emissions reduction, ifthe division determines that 

certification was granted on the basis offraud or material misstatement or omission, 

the division shall revoke certification ofthe reduction. Certification shall be revoked 

Regulation No. 3 	 Part A, Page 51 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 52 

only after the owners or operators ofthe affected sources have received notice and, if 

requested, a hearing has been conducted. In such cases the division shall also modifY 

the permit ofthe source that has used the emissions reduction, so that the permit will 

contain all conditions that would have applied ifthe emissions reduction had not 

been certified initially. 

V.E. Criteria for Certification ofEmissions Reductions 

An emissions reduction shall be certified for use in an emission credit transaction, 

provided it meets the following criteria: 

V.E.1. The emissions reduction shall be surplus. Surplus reductions are those below the 

baseline emissions. The baseline emissions shall be determined as follows: 

V.E.l.a. 	 In attainment areas, the baseline emissions shall be a source's actual 

emissions ofthe subject pollutant, or allowable emissions whichever is lower, 

for the three baseline factors. Reasonably Available Control Technology 

shall be as set forth in the State implementation plan for the source. Where 

Reasonably Available Control Technology has not been determined in the 

state implementation plan for the source, it shall be determined by the 

division. 

V.E.1.b. 	 In nonattainment areas for which there is a demonstration ofattainment ofthe 

National Ambient Air Quality Standards approved by the U.S. EPA, the 

baseline emissions shall be actual emissions, provided, however, the baseline 

emissions shall not exceed reasonably available control technology as defined 

in the state implementation plan or the level ofemissions used by the state in 

making a demonstration ofattainment. 

V.E.l.c. 	 In nonattainment areas for which there is not a demonstration ofattainment of 

National Ambient Air Quality Standards approved by the U.S. EPA, the 

baseline emissions shall be the lower oll) the actual emissions, 2) allowable 

emissions under the state implementation plan or 3) allowable emissions ifthe 

source is subject to Reasonably Available Control Technology. 

V.E.l.d. 	 Emission rate, capacity utilization and hours ofoperation must be used to 

compute pre-trade andpost-trade emission levels. Baseline must be 

established on an annual basis andfor all other averaging periods consistent 

with the relevant National Ambient Air Quality Standards and Prevention of 

Significant Deterioration increments. 

V.E.2. 	 No emissions reduction shall be certified ifthe division has relied upon the 

occurrence ofthe reduction in demonstrating attainment ofthe National Ambient Air 

Quality Standards or reasonable further progress towards attainment, or in 

establishing a baseline concentration. 

V.E.3. 	 Each certified reduction ofa pollutant's emissions shall be quantified in the same unit 

ofmeasurement used in the standard or regulation applicable to the pollutant. 

Regulation No.3 	 Part A. Page 52 

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V.E.4. 	 In attainment areas, reductions at major stationary sources that commenced 

construction after January 1. 1975 may be able to qualify for credit whether such 

reductions occurred before or after the Prevention ofSignificant Deterioration 

baseline triggering date. Other emission reductions (e.g .• at minor sources) cannot 

qualifyfor credit where the Prevention ofSignificant Deterioration baseline date is 

or has been triggered and such reductions occurred prior to the trigger date, unless 

these reductions are not assumed in the Prevention ofSignificant Deterioration 

baselines. Since banked emission reduction credits must be considered to be "In the 

Air"for all planning purposes, ifthe baseline date is triggered before banked credits 

are actually used. such banked credits will be considered as part ofihe baseline and 

will not consume increment when used in an emissions trade. 

In attainment areas where the Prevention ofSignificant Deterioration baseline has 

not been triggered as ofthe date the permitting authority takes relevant final action 

on the trading transaction. reductions below current state implementation plan or 

permit limits generally may be used without special restrictions in bubble or banking 

transactions. provided they are otherwise creditable and there is assurance that 

National Ambient Air Quality Standards will not be violated due to any potential 

increase in actual emissions. However. reductions at sources other than major 

stationary sources on which construction commenced before January 1. 1975 may not 

be used to balance increases at such pre-1975 major sources. 

V.E.s. 	 Emission reductions achieved by shutting down an existing source or curtailing 

production or operating hours be/ow baseline levels may be generally credited ifsuch 

reductions are permanent. quantifiable. andfederally enforceable, and ifthe area has 

an u.s. EPA-approved attainment plan. In addition, the shutdown or curtailment is 

creditable only ifit occurred on or after the date specified for this purpose in the 

plan, and ifsuch date is on or after the date ofthe most recent emissions inventory 

used in the plan's demonstration ofattainment. Where the plan does not specify a 

cutoffdate for shutdown credits. the date ofthe most recent emissions inventory or 

attainment demonstration. as the case may be, shall apply. However, in no event may 

credit be given for shutdowns that occurred prior to August 7, 1977. For purposes of 

this section a permitting authority may choose to consider a prior shutdown or 

curtailment to have occurred after the date ofits most recent emissions inventory, if 

the inventory explicitly includcs as current existing emissions the emissions from such 

previously shutdown or curtailcd sourccs. 

V.E.5.a. 	 Such reductions may be credited in the absence ofan approved attainment 

demonstration only ifthe shutdown or curtailment occurred on or after the 

date the new sourcc permit application is filed, or, ifthe applicant can 

establish that the proposed new source is a replacement for the shutdown or 

curtailed source. and thc cutoffdate provisions ofsection A, above, are met. 

V.E.6. 	 No emission reduction credits are aI/owed from mobile sources unless those sources 

are subject to ambient impact and new source review permitting. 

V.E.7. 	 Reductions down to compliance levels may not qualify for emission reduction credit. 

Regulation No.3 	 Part A, Page 53 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 54 

V.E.8. 

V.E.9. 

V.F. 

V.F.!. 

V.F.2. 

V.F.3. 

V.FA. 

V.F.5. 

V.F.6. 

Ifan existing source commits to switch to a cleaner fuel at some future date, emission 

reduction credit is allowable only ifa permit is conditioned to require use ofa 

specified alternative control measure that would achieve the same degree ofemission 

reduction should the source switch back to a dirtier fuel at some later date. The 

division will ensure that adequate long-term supplies ofthe new fuel are available 

before granting the reduction credit. 

Emission reductions otherwise required by the Federal Act shall not be creditable as 

emission reductions. Incidental emission reductions that are not otherwise required 

by the Federal Act are creditable as emission reductions ifsuch emission reductions 

meet the requirements ofsection IV.D.2., Part B. ifapplicable and this section V. 

Criteria for Approval ofall Transactions 

The use ofan emissions reduction in an emission credit transaction shall be approved 

only ifit meets the following criteria: 

The transaction shall involve like pollutants. For toxic or volatile organic compound 

pollutants. the trade should involve the same degrees oftoxicity or photochemical 

reactivity or else a greater reduction may be required. New or modified major 

sources ofa PM}o precursor can only obtain offsets from emissions reductions in that 

same PMJO precursor or in PMJ(}. New or modified major sources ofPM}o can only 

obtain offsets from emissions reductions in PMu). The offsets must be greater than 

onefor one and represent a net air quality benefit in the area the source is proposing 

to locate or modify. (See exception in section V.H.8.) 

No transaction shall be approved ifit will result in an increased concentration, at the 

point ofmaximum impact. ofhazardous air pollutants. 

Where a significant fraction ofa criteria pollutant stream has been listed as 

hazardous by the commission under Regulation No.8 or the U.s. EPA under United 

States Code. Title 42. Section 7412 but has not yet been regulated, emissions 

containing that pollutant from sources within two hundred andfifty meters ofeach 

other may only be traded against each other on a greater than one for one basis that 

assures a net decrease in emissions ofthe hazardous pollutant. 

Hazardous and non-hazardous emissions ofthe same criteria pollutant may be traded 

against each other. provided the total emissions containing the hazardous pollutant 

from the sources involved in the transaction are required to decrease as a result of 

the transaction. 

No transaction may be approved that is inconsistent with any standard established by 

the Federal Act, the state Act or the regulations promulgated under either, or to 

circumvent New Source Performance Standards requirements or Best Available 

Control Technology although the commission may approve a transaction using a 

certified emissions reduction credit in lieu ofa specified control technique guidance 

method or reasonably available control technology. 

No transaction shall be approved unless either: 

Regulation No.3 Part A, Page 54 

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V.F.6.a. The source at which the emissions reduction occurred and the source using 

the emissions reductions are in the same nonattainment area or Prevention of 

Significant Deterioration baseline area; or 

V.F.6.b. The emissions reduction is to be used as an offset to meet the requirements of 

section IV.D.2.a.(iii), Part B, and the conditions ofthat section are met for the 	

I 

I 

f 

use ofan offset obtained from a source outside the nonattainment area. 

V.F.7. 	 Emission reduction credits may not be used to meet applicable technology-based 

requirements for new sources such as New Source Performance Standards, Best 

Available Control Technology, or Lowest Achievable Emission Rate, although the 

commission may approve a transaction using a certified emissions reduction credit in 

lieu ofa specified control technique guidance method or reasonably available control 

technology. 

V.F.8. 	 Trades Involving Open Dust: Sources ofparticulate emissions may be approved 

through case-by-case state implementation plan revisions based on modeled 

demonstrations ofambient equivalence. Sources proposing such trades must commit, 

as part ofthe trade's approval, to: 

V. F.8.a. Undertake a post-approval monitoring program to evaluate the impact of 

their control efforts. and 

V.F.8.b. 	 Make further enforceable reductions ifpost-trade monitoring indicates initial 

open dust controls do not produce the predicted air quality results. 

V.F.9. 	 The federal land manager must be notified ifan emissions trade will take place within 

one hundred kilometers ofa Prevention ofSignificant Deterioration Class I area. 

Notification must occur early enough in the review process to allow at least thirty 

days for the submittal ofcomments before the trade will be approved by the reviewing 

authority. 

Where a bubble within fifty kilometers ofa Prevention ofSignificant Deterioration 

Class I area is submitted as a case-by-case state implementation plan revision, the 

division may callfor additional technical support, beyond the applicable 

requirements ofthe modeling screen ifdeemed necessary to protect air quality in the 

Class I area. 

V.F.10. 	 Effect on Trades ofSubsequently-Discovered Clean Air Act Problems: Revisitation 

Considerations - Ifambient violations are discovered in an area where the division 

has approved a trade, or ifother violations ofthe act are discovered in that area, 

sources in the trade should be aware that they are potentially subject to requirements 

for additional emission reductions, just as are all other sources in the area. 

V.F.11. For volatile organic compound and nitrogen oxide trades, poundfor pound trades 

will be considered equal in ambient effect where all sources involved in the trade are 

in the same control strategy demonstration area (nonattainment area) or ifoutside 

that area are sufficiently close to show an equal effect. 

Regulation No.3 	 Part A, Page 55 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 56 

V.F.I2. For volatile organic compound trades involving surface coating, the emissions must 

be calculated on a solids-applied basis and should specify the maximum time period 

over which the emissions may be averaged, not to exceed twenty-four hours. 

V.F.l3. Thefollowing trades require a state implementation plan revision: 

V.F.13.a. 	 PMJO, sulfur dioxide. carbon monoxide or lead trades requiring full scale 

dispersion modeling under Level Ill; 

V.F.J3.b. 	 PM/O. sulfur dioxide, carbon monoxide or:. lead trades where.complex terrain 

is within the area ofthe source's significant impact orfifty kilometers, 

whichever is less, unless the trade does not result in a modification ofeffective 

stack heights and the trade otherwise qualifies as De mimimis or Level L The 

area ofsignificant impact can be determined from Figure 1; 

V.F.13.c. 	 Open Dust Trades; 

V.F.13.d. 	 Level II trades involving process fugitive PM/O, sulfur dioxide, carbon 

monoxide or lead emissions not discharged through stacks; 

V.F.J3.e. 	 Trades involving Emission Reduction Credits from mobile sources (SEE 

section V.E.7.); 

V.F.J3.j 	 Trades involving sources that are subject ofa notice ofviolation (NO VJ, 

noncompliance penalty action or the filing ofa judicial complaint; 

V.F13.g. 	 Interstate trades; 

V.FJ3.i. 	

V.F.13.h. 	

four 

Trades 

Volatile 

hours; 

involving 

organic compound 

work practice 

trades 

and 

with 

equipment 

averaging 

standards; 

times longer than twentyV.F.J3J. 	 Trades involving negotiated Reasonably Available Control Technology 

baselines; 

V.F.J3.k. 	 Trades affecting areas that need but lack approved demonstrations of 

attainment. 

V.FJ3.l. 	 Emission credit transactions used as an alternative compliance method. 

V.F.I4. 	 No emission credit transaction shall be approved unless the terms ofthe transaction 

are incorporated in permits applicable to the originating (as applicable) and 

receiving emissions sources. 

V.F.15. 	 Emission credit transactions that require a state implementation plan revision shall 

be considered by the commission on a case-by-case basis. The source requesting 

approval ofthe transaction has the burden ofdemonstrating that all the criteria of 

this section V.F., are met and ofdemonstrating that all applicable requirements for 

approval ofthe state implementation plan revision has been met. 

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v.G. 	 Bubble Transactions 

V.G.1. 	 An owner or operator ofan existing source may apply to the commission for approval 

ofa state implementation plan revision establishing a bubble. The bubble shall 

establish new emissions limitations for two or more facilities or operations within the 

source. 

V.G.2. 	 The commission shall not approve a bubble unless it meets the criteria for approval 

ofsection V.F., and the division has first certified an emissions reduction at a facility 

or operation included in the bubble. 

V.G.3. 	 As part ofthe certification process, the amount ofallowable emissions shall be 

reduced at the facility or operation where the emissions reduction has occurred in 

accord with section V.D.5. As part ofthe bubble approval, the commission may 

approve an increase in the total allowable emissions at the other facilities or 

operations covered by the bubble, by an amount not to exceed the amount ofthe 

subject certified emissions reduction. 

V.G.4. 	 As part ofthe bubble approval, the commission may extend compliance deadlines 

otherwise required by commission regulations for volatile organic compounds or 

carbon monoxide emissions, provided the following criteria are met: 

V.GA.a. 	 Ifthe source is located in a nonattainment area, the area must have received 

an attainment extensionfrom the U.S. EPA beyond December 31,1982. 

V.GA.b. 	 The applicant must demonstrate to the satisfaction ofthe commission that 

reasonable further progress toward the attainment ofthe National Ambient 

Air Quality Standards under the state implementation plan shall be 

maintained either by: 

V. GA. b.(i) Achievement ofemissions reductions earlier than otherwise required by 

certain facilities or operations covered by the bubble; or 

V. GA. b.(ii) Temporary use ofa certified emissions reduction to assure reasonable 

further progress toward attainment ofthe National Ambient Air Quality 

Standards. 

V.G.5. 	 Ifsubsequent to the approval ofa bubble, the commission promulgates new 

regulations or amends existing regulations applicable to a source for which the 

bubble has been approved, the source shall be required to meet the new or amended 

regulations, irrespective ofthe bubble, by either further reducing emissions or using 

certified emissions reductions as offsets. 

V.G.6. 	 Bubble applications in areas that require but lack approved demonstrations of 

attainment, i.e., non-approved state implementation plans, must be accompanied by 

assurances ofconsistency with ambient progress and air quality planning goals 

specified below: 

Regulation No.3 	 Part A, Page 57 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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V.G.6.a. The resulting emission limits comply with the reduction requirements of 

section V.D.5.c., and the baseline requirements ofsection VE.; 

VG.6.b. The bubble emission limits will be included in any new state implementation 

plan and associated control strategy demonstration; 

VG.6.c. The bubble will not constrain the division's ability to obtain any additional 

emission reductions needed to expeditiously attain and maintain ambient air 

quality standards; 

VG.6.d. The division is making reasonable efforts to develop a complete approvable 

state implementation plan and intends to adhere to the schedule for such 

development (including dates for completion ofemission inventory and 

subsequent increments ofprogress) stated in or with the letter formally 

submitting the bubble. 

V.G.7. 	 Bubbles should not increase applicable net baseline emissions. Ordinarily, bubbles 

may not result in an increase in applicable net baseline emissions. Such a bubble 

would require a case-by-case state implementation plan revision, and may only be 

approved based upon a combined Level III and Level II modeling analysis (i.e., an 

analysis sufficient to show that all applicable requirements ofafull Level III analysis 

are met, and that the bubble would not result in any exceedance ofsignificance 

values specified for a Level II analysis at any receptorfor any averaging time 

specified in an applicable ambient air quality standard). 

V.G.8. 	 Bubbles should not increase emissions ofhazardous or toxic air pollutants. 

V.H. 	 Offset Transactions 

V.H.I. 	 The owner or operator ofa source at which an emissions reduction has occurred, and 

the owner or operator ofanother source who wishes to use the emissions reduction as 

an offset, may applyfor approval ofan offset transaction. In such transactions 

certified emissions reductions may be applied to avoid causing a violation ofan 

increment in an attainment area, or to meet the requirements ofsection IVD.2.a. (iii), 

Part B. A certified emissions reduction may not be used as an offsetfor the purpose 

ofcomplying with an existing applicable emissions control regulation, except for 

Reasonably Available Control Technology. 

V.H.2. 	 The division shall determine whether to approve an offset transaction in the following 

cases: 

VH.2.a. 	 Where the source using the emissions reduction would be allowed to increase 

emissions by less than one hundred tons per year. 

VH.2.b. 	 Where the transaction involves volatile organic compounds or oxides of 

nitrogen emissions. 

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V.H.2.c. 	 Where the transaction involves sulfur dioxide, PMJO or carbon monoxide 

emissions, and all sources involved in the transaction are within two hundred 

andfifty meters ofone another. 

V.H.3. 	 Any proposed offtet transaction, other than those referred to in section V.H.2., shall 


be treated as a request to the commission for a state implementation plan revision. 


V.H.4. 	 Sources ofPMJO precursors, sulfur dioxide, nitrogen oxide and carbon monoxide 


must seek offtets within reasonably close proximity. Sources ofnitrogen oxide and 


volatile organic compounds may seek offtets oVe1' a greater area. However, for 


widely dispersed and volatile organic compound trades, a higher offtet may be 


required. 


V.H.5. 	 lfthe applicant has used his best efforts in seeking the required emission offiets but 


was unsuccessful, the source may petition for use ofsome portion ofgrowth 


allowance. The petition must state the emission increase will not interfere with 


Reasonably Further Progress and the petitioner is willing to enter into an 


enforceable program to provide the required emission offiet at somefuture time. 


V.H.6. 	 In the absence ofan approved attainment demonstration. banked Emission Reduction 


Creditsfrom shutdowns or curtailments may be usedfor offiets only ifthe criteria 


stated in section V.E.5.b., ofRegulation, Part A. are met. 


V .H. 7. In nonattainment areas with approved demonstrations, banked Emission Reduction 


Credits may be usedfor offtets in any trade provided the criteria stated in section 


V.E.5.a., Part A, ofthis Regulation are met. 


V.H.8. 	 Interpollutant offtets (other than those offtets discussed above) may be approved by 

u.s. EPA on a case-by-case basis provided that the applicant demonstrates, on the 

basis ofu.s. EPA-approved methods where possible, that the emissions increases 

from the new or modified source will not cause or contribute to a violation ofan 

ambient air quality standard. A source's permit application that includes such an 

interpollutant offtet proposal shall not be approved by the division until there has 

been an opportunity for public hearing on the proposed emissions trade and until 

written approval has been received from the U.S. EPA. 

V.I. 	 Netting Transactions 

V.I. 1. Netting may exempt modifications ofexisting major sources from certain pre­


construction permit requirements under new source review, so long as there is no 


significant net emission increase, as net emissions increase is defined in section 
 t 

I.B.3 7., ofthis regulation. By netting out, the modification is not considered major 

and therefore not subject to pre-construction permit requirementsfor major t 

modifications asfollows: \ 

f. 

V.1.1.a. 	 Section IV.D.3., Part B, for prevention ofsignificant deterioration; 

V.I.l.b. 	 Visibility analysis; and 

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V.l.l.c. Section IV.D.2.a., Part B, for nonattainment new source review. 

V.I.2. 	 The division shall grant such an exemption ifthe emissions reduction qualifies as an 

Emission Reduction Credit under Regulation No.5 meets the criteria in section V.E., 

for certification. and the difference between the amount ofthe certified emissions 

reduction, and the amount ofnew pollutants to be emitted from the new or modified 

facility, does not constitute a significant increase ofpollutants. 

V.I.3. 	 An increase ofpollutants shall be considered significant ifit equals or exceeds the 

amounts specified in the definition ofSignificant iff Part A. 

VI. 	 FEES 

V1A. 	 General 

V1A.l. 	 Every person required to obtain a Construction or Operating Pennit or to file an Air 

Pollution Emission Notice shall pay fees as set forth in the following sections. Such 

fees shall be charged to recover the direct and indirect costs incurred by the division 

in processing pennit applications, issuing pennits, and in conducting a compliance 

monitoring and enforcement program. Such fees shall apply without regard to 

whether a pennit is issued, denied, withdrawn, or revoked. Fees shall be charged as 

indicated on the fee schedule ofthis regulation. 

VI.A.2. 	 All fees assessed must be received within thirty days ofthe date ofreceipt ofthe 

written request therefore. All fees collected under this regulation shall be made 

payable to the Colorado Department ofPublic Health and Environment. The pennit 

shall not be issued until all such assessed fees have been paid. 

V1B. 	 Pennit Fees 

V1B.l. 	 Applicants for a pennit shall be assessed total fees that shall be partially detennined 

at the time that the division makes its decision whether to issue preliminary approval 

ofthe pennit and partially at the time the division makes its decision whether to issue 

fmal approval. 

V1B.2. 	 The partial fee collected at the time the division makes its decision whether to issue 

preliminary approval ofthe pennit shall include the costs associated with the 

preliminary engineering evaluation, modeling, and analysis ofimpact on ambient air 

quality, notice and publication requirements, and such other costs as are required for 

the aforementioned activities incurred by the division up to the time ofthe decision of 

whether to issue preliminary approval. 

V1B.3. 	 The final fee coUected at the time the division makes its decision ofwhether to issue 

final approval shall include the balance ofthe total ofall costs associated with 

enforcement ofany tenns and conditions ofthe emission pennit, the supervision of 

compliance testing, notice and publication requirements, and such other costs as are 

required for the processing, issuance, and administration ofthe pennit. 

Regulation No. 3 	 Part A, Page 60 

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VI.B.4. Effective July 1, 1992 the hourly billing shall be as set forth in the fee schedule of this 

section. 

VI.B.5. If the division requires more than thirty hours to process an application, the division 

shall infonn the owner or operator ofthe source and provide an estimate ofwhat the 

actual charges may be, prior to commencing with processing of the application, 

unless the owner or operator waives this requirement in writing. 

VI.c. Annual Fees 

VI.C.l. As used in this section VI., regulated pollutant means: 

VI.C.l.a. 	 A volatile organic compound; 

VI.C.l.b. 	 Each hazardous air pollutant; 

VI.C.1.c. 	 Each pollutant regulated under section 111 of the Federal Act (New Source 

Perfonnance Standards); and 

VI.C.1.d. 	 Each pollutant for which a National Ambient Air Quality Standard has been 

promulgated, except for carbon monoxide. 

V1C.l.e. 	 Each pollutant regulated under section 25-7-109 of the state Act. 

V1C.1.( 	 The tenn regulated pollutant does not include fugitive dust as defined in 

section 1.B.24., ofthis Regulation No.3, Part A, or any fraction thereof. 

VI.C.2. 	 Every owner or operator of an air pollution source required to file an Air Pollutant 

Emission Notice shall pay an annual nonrefundable fee as set forth in the fee schedule 

of this section. 

VI.C.3. 	 In no event shall an owner or operator of a source pay more than a fee based upon 

total annual emissions offour thousand tons ofeach regulated pollutant per source. 

VI.D. 	 Fee Schedule 

VlD.l. 	 Annual and pennit processing fees shall be charged in accordance with and in the 

amounts and limits specified in the provisions ofColorado Revised Statutes section 

25-7-114.7. 

VI.D.2. 	 Air Pollutant Emission Notice fees shall be charged in accordance with and in the 

amounts and limits specified in the provisions ofColorado Revised Statutes section 

25-7-114.1. 

VII. 	 CONFIDENTIAL INFORMATION OR DATA CONTAINED IN AIR 

POLLUTANT EMISSION NOTICES, PERMIT APPLICATIONS, OR REPORTS 

SUBMITTED PURSUANT TO PART C, SECTION V.C.6. 

VIlA. 	 Upon written request to the division, any person filing an Air Pollutant Emission 

Notice or pennit application, or SUbmitting reports pursuant to Regulation No.3, Part 

Regulation No.3 	 Part A, Page 61 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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C, sections V.C.6., or V.C.7., may request that information contained in such an Air 

Pollutant Emission Notice, permit application, or report relating to secret processes or 

methods ofmanufacture or production be kept confidential. The written request must 

identify the basis for the claim that the information relates to secret processes or 

methods ofmanufacture or production. All information claimed as confidential must 

be segregated from the rest ofthe Air Pollutant Emission Notice, permit application, 

or report when submitted, with each page clearly marked as "Confidential," "Trade 

Secret, tI or other similar marking. 

VO.B. The division will evaluate confidentiality claims based on the written request. The 

burden of establishing that the information relates to secret processes or methods of 

manufacture or production is on the claimant. Emission data, as defined in Colorado 

Revised Statutes section 25-7-1 03( 11.5), shall not be entitled to confidential treatment 

notwithstanding this section VII., Part A, Regulation No.3, or any other law to the 

contrary. In no event shall an Operating Permit or the compliance certifications 

submitted pursuant to section m.B.B., Part C, Regulation No.3 be entitled to 

confidential treatment. If the division determines that information requested to be 

kept confidential is not entitled to confidential treatment, it shall provide written 

notice of this determination at least three working days prior to making such 

information available to the public. 

VII.C. A request for confidential treatment ofinformation or data submitted to the division 

shall be deemed a limited waiver by the applicant of the time constraints contained in 

section IV.B., Part B, or section IV., Part C. Therefore, any delay in the processing of 

a permit application resulting from the division's being required to give notice under 

section VII.B., hereof, shall not be considered in determining whether the time 

constraints set forth in this regulation have been met. 

VIII. TECHNICAL MODELING AND MONITORING REQUIREMENTS 

VIII.A. Air Quality Models 

VIII.A.I. All estimates of ambient concentrations required under this Regulation No.3 shall be 

based on the applicable air quality models, databases, and other requirements 

generally approved by U.S. EPA and specifically approved by the division. 

Ifa non-U.S. EPA approved model, such as a wind tunnel study, is proposed, the 

nature and requirements ofsuch a model should be outlined to the division at a preapplication meeting. The application will be deemed incomplete until there has been 

an opportunity for a public hearing on the proposed model and written approval ofthe 

U.S. EPA has been received. 

VIII.B. Monitoring 

VIlLB .1. All monitoring must be performed in accordance with U.S. EPA accepted procedures 

as approved by the division. 

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VIII.B.2. 	 An owner or operator may submit a monitoring program for a proposed source or 

modification to the division for review. Within sixty days after such submittal, the 

division shall: 

VIII.B.2.a. 	 Approve the monitoring program; or 

VIII.B.2.b. 	 SpecifY the changes necessary for approval; otherwise, the monitoring 

program shall be deemed approved. 

VIlI.e. 	 Stack Heights 

This regulation sets limits for the maximum stack height credit to be used in ambient 

air quality modeling for the purpose of setting an emission limitation and calculating 

the air quality impact of a source. It does not limit the actual physical stack height for 

any source. The following shall not be considered in determining whether an 

emission limitation is met: 

VIII.e.l. 	 Stack height in excess of good engineering practice; or 

VIII.e.2. 	 Any other dispersion technique except that the provisions of this section VIII.e., shall 

not apply to stack heights in existence or dispersion techniques implemented before 

December 31, 1970. Sources that were constructed, reconstructed, or for which major 

modifications were carried out after December 31, 1970, and that are emitting 

pollutants from such stacks, or using such dispersion techniques, shall be subject to 

the provisions ofthis section. 

VIII.D. 	 Definitions as used in section VIlLe. 

VIII.D.1. 	 Stack in existence means that the owner or operator had: 

VIII.D.I.a. 	 Begun, or caused to begin. a continuous program ofphysical on-site 

construction of the stack; or 

VIII.D.I.b. 	 Entered into binding agreements or contractual obligations that could not be 

cancelled or modified without substantial loss to the owner or operator, to 

undertake a program of construction of the stack to be completed in a 

reasonable time. 

VIII.D.2. 	 Dispersion Technique means any technique that attempts to affect the concentration 

of a pollutant in the ambient air by using that portion of a stack that exceeds good 

engineering practice stack. height. \,at)ing the rate of emission of a pollutant 

according to atmospheric conditions or ambient concentrations ofthat pollutant, or by 

increasing final exhaust gas plume rise by manipulating source process parameters, 

exhaust gas parameters, or combining exhaust gases from several existing stacks into 

one stack; or other selective handling of exhaust gas streams so as to increase the 

exhaust gas plwne rise. The preceding sentence does not include: 

VIII.D.2.a. 	 The reheating of a gas stream, following use of a pollution control system, for 

the purpose ofreturning the gas to the temperature at which it was originally 

discharged from the facility generating the gas stream; 

Regulation No.3 	 Part A, Page 63 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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VIII.D.2.b. 	 The merging of exhaust gas streams where: 

VIII.D.2.b.(i) 	The source owner or operator demonstrates that the facility was originally 

designed and constructed with such merged gas streams; 

VIII.D.2.b.(ii) After July 8, 1983, such merging is part of a change in operation at the 

facility that includes the installation ofpollution controls and is 

accompanied by a net reduction in the allowable emissions of a pollutant. 

This exclusion from the definition of dispersion techniques shall apply 

only to the emission limitation for the pollutant affected by such change in 

operation; or 

VIII.D.2.b.(iii)Before July 8, 1985, such merging was part of a change in operation at the 

facility that included the installation of emissions control equipment or 

was carried out for sound economic or engineering reasons. Where there 

was an increase in the emissions limitation or, in the event that no 

emission limitation was in existence prior to the merging, the reviewing 

agency shall presume that merging was significantly motivated by an 

intent to gain emissions credit for greater dispersion. 

Absent a demonstration by the source owner or operator that merging was 

not significantly motivated by such intent, the reviewing agency shall 

deny credit for the effects of such merging in calculating the allowable 

emissions for the source; 

VIII.D.2.c. Smoke management in agricultural or silvicultural prescribed burning 

programs; 

VllI.D.2.d. Episodic restrictions on residential woodburning and open burning; or 

VllI.D.2.e. Techniques that increase final exhaust gas plume rise where the resulting 

allowable emissions of sulfur dioxide from the facility do not exceed five 

thousand tons per year. 

VllI.D.3. Good Engineering Practice Stack Height means the greater of: 

VllI.D.3.a. 	 65 meters; or 

VllI.D.3.b. 	 For stacks in existence on January 12, 1979 and for which the owner or 

operator had obtained all applicable pre-construction permits or approvals 

required, Hg = 2.5H, provided the owner or operator produces evidence that 

this equation was actually relied on in establishing an emission limitation; and 

VIII.D.3.c. 	 For all other stacks, Hg = H+1.5L where: 

VIILD.3.c.(i) Hg =good engineering practice stack height measured from the ground 

level elevation at the base ofthe stack; 

VIII.D.3.c.(ii) H = height of nearby structure(s) measured from the ground level 

elevation at the base of the stack; 

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VIII.D.3.c.(iii) L = lesser dimension (height or projected width) of nearby structure(s) 

provided that the reviewing agency may require the use ofa field study or 

fluid model to verify Good Engineering Practice stack height for the 

source; or 

VIII.D.3.d. 	 The height demonstrated by a fluid model or a field study approved by the 

reviewing agency, which ensures that the emissions from a stack do not result 

in excessive concentrations of any air pollutant as a result ofatmospheric 

downwash, wakes, or eddy effects created by the source itself, structures, or 

terrain obstacles. 

VIII.DA. 	 Nearby as applied to good engineering practice is: 

VIII.DA.a. 	 For purposes of applying the formulae provided in sections VIII.D.3.b., and 

VIII.D.3.c., in the definition of good engineering practice stack height means 

that distance up to five times the lesser ofthe height or the width dimension of 

a structure, but not greater than 0.8 kilometers (112 mile), and 

VIII.DA.b. 	 For conducting demonstrations in section VIII.D.3., in the definition of good 

engineering practice means not greater than 0.8 kilometers (112 mile), except 

that the portion ofa terrain feature may be considered to be nearby that falls 

within a distance of up to ten times the maximum height ofthe feature, not to 

exceed two miles ifsuch feature achieves a height 0.8 kilometers from the 

stack that is at least forty percent of the good engineering practice stack height 

determine by the formula or twenty-six meters, whichever is greater. 

VIII.D.S. 	 Excessive concentrations for the purpose of determining good engineering practice, 

stack height in a fluid model or field study, means: 

VIn.D.S.a. 	 For sources seeking credit for stack height exceeding that established by the 

formulae, a maximum ground level concentration due to emissions from a 

stack due in whole or part to downwash, wakes, and eddy effects produced by 

nearby structures or nearby terrain features that individually is at least forty 

percent in excess ofthe maximum concentration experienced in the absence of 

such downwash, wakes, or eddy effects and that contributes to a total 

concentration due to emissions from all sources that is greater than an ambient 

air quality standard. For sources subject to the prevention of significant 

deterioration program, an excessive concentration alternatively means a 

maximum ground level concentration due to emissions from a stack due in 

whole or part to downwash, wakes, or eddy effects produced by nearby 

structures or nearby terrain features that individually is at least forty percent in 

excess ofthe maximum concentration experienced in the absence of such 

downwash, wakes, or eddy effects and greater than a prevention ofsignificant 

deterioration increment. The allowable emission rate to be used in making 

demonstrations shall be prescribed by the new source performance standard 

that is applicable to the source category unless the owner or operator 

demonstrates that this emission rate is infeasible. Where such demonstrations 

are approved by the division, an alternative emission rate shall be established 

in consu1tation with the source owner or operator; 

Regulation No.3 	 Part A, Page 65 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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VIIID.5.b. 	 For sources seeking credit after October 1, 1983 for increases in existing stack 

heights up to the heights established by the formulae, either: 

VIlI.D.5.b.(i) 	A maximwn ground level concentration due in whole or part to 

downwash, wakes or eddy effects as provided in section VIII.D.5.a, 

above, except that the emission rate specified by any applicable state 

implementation plan (or, in the absence ofsuch a limit, the actual emission 

rate) shall be used; or 

VIll.D.5.b.(ii) The actual presence of a local nuisance caused by the existing stack, as 

determined by the division; and 

VIII.D.5.b.(iii)For sources seeking credit after January 12, 1979 for a stack height 

determined using the formula, where the division requires the use of a 

field study or fluid model to verify good engineering practice stack height; 

for sources seeking stack height credit after November 9, 1984 based on 

the aerodynamic influence ofcooling towers; and for sources seeking 

credit after December 31, 1970 based on the aerodynamic influence of 

structures not adequately represented by the formulae: a maximwn 

ground level concentration due in whole or part to downwash, wakes or 

eddy effects that is at least forty percent in excess ofthe maximum 

concentration experienced in the absence ofsuch downwash, wakes or 

eddy effects. 

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PARTB 


CONCERNING CONSTRUCTION PERMITS INCLUDING REGULATIONS 


FOR THE PREVENTION OF SIGNIFICANT DETERIORATION (PSD) 


I. APPLICABILITY 

LA. The provisions ofthis Part B shall apply statewide. All sources that did not 

commence construction or operation prior to February 1, 1972, are required to have a 

construction pennit except as specified in sectiOlrIII. 

II. RESERVED 

III. GENERAL REQUIREMENTS FOR CONSTRUCTION PERMITS 

I1I.A. General Considerations 

Ill.A.t. Except where specificalJy authorized by the tenns ofthis Regulation No.3, no person 

shall commence construction of any stationary source or modification of a stationary 

source without first obtaining or having a valid construction permit from the division. 

III.A.2. Any permit that has been issued pursuant to a prior regulation ofthe commission, 

with respect to a project or the operation thereof, shaH continue in full force and 

effect for the purpose for that it was originally issued, unless this current regulation 

no longer requires such permit, in that case the pennit can be rescinded upon request 

ofthe owner or operator ofthe pennitted source. 

III.A.3. Any orders or decisions ofthe division shaH be final upon issuance, according to 

section IV.G.3., ofthis regulation, Part B. 

I1I.A.4. Construction pennits for criteria ponutants and hazardous air poJIutants shall be 

issued based on the production/process rate requested in the Air PoJIutant Emission 

Notice submitted with the permit application or as requested in the application. The 

emission rate associated with the requested production/process rate shall be a permit 

condition. For permits to limit the potential to emit criteria or hazardous air 

pollutants the division may modify the production/process rate, hours of operation or 

other requested permit conditions in order to create state-only or federally and 

practicalJy enforceable permit conditions; provided, however, that the applicant may 

decline to accept such modifications and elect instead to forego limits on its potential 

to emit or pursues any right ofappeal or other available alternative. For details 

regarding pennits to limit the potential to emit hazardous air pollutants see Regulation 

No.8, Part E, section IV. 

I1I.A.S. Construction pennits are required for hazardous air pollutants if: 

III.A.S.a. 	 The source is subject to Colorado Maximum Achievable Control Technology 

or Generally Available Control Technology; or 

Ill.A.S.b. The source is subject to Federal National Emission Standards for Hazardous 

Air Pollutants; or 

Regulation No.3 Part B, Page 67 

f 

f 

! 

I 

I 

( 

l 

i 

1, 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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III.A.S.c. The source is subject to Federal Maximum Achievable Control Technology or 

Generally Available Control Technology standards; or 

IILA.S.d. The source is subject to Regulation No.8, Part E, where the more specific 

requirements ofRegulation No.8, Part E, take precedence over requirements 

in this regulation. 

IILA.6. 	 Owners or operators ofsources that have valid operating permits in accordance with 

Part C ofthis regulation may construct or modify such source without obtaining a 

construction permit prior to construction or modification, provided the construction or 

modification qualifies for a minor permit modification or for operational flexibility, 

and the applicable provisions as set forth in sections X., XL, or XII., ofPart Care 

met. In addition, all applicable requirements that are related to construction permit 

approval and that are set forth in sections IV.D.l.a. IV.D.l.h., ofthis Part B remain 

in effect. 

III.A.7. 	 A source that is voluntarily applying for a permit to create state-only or federally 

enforceable permit conditions, as appropriate, to limit the potential to emit criteria or 

hazardous air pollutants may request to obtain such limits in a construction permit. 

III.B. 	 Transfer or Assignment ofOwnership 

If transfer or assignment ofownership or operation of an air pollution emission 

source permitted pursuant to this Part B is anticipated, the prospective owner or 

operator shall apply to the division on division supplied administrative permit 

amendment forms for reissuance ofthe existing permit. Section III., ofPart A, 

governs the administrative permit amendment procedures required for transfer or 

assignment ofownership. 

In accordance with the provisions ofthis section, the permit shall be reissued upon 

completion ofthe transfer or assignment ifthe applicant certifies that no change is 

contemplated that might constitute a new or modified air pollution source. In no 

event shall the new owner or operator of a source that was subject to the requirements 

ofthese regulations prior to the transfer or assignment be relieved ofthe obligation to 

comply with such requirements by reason of a transfer. Such transfers are subject to 

all applicable permit processing and inspection fees. 

If a company is changing its name only, the owner or operator shall apply to the 

division, on division supplied administrative permit amendment forms, for reissuance 

ofthe existing permit. Section IlL, ofPart A, governs the administrative permit 

amendment procedures required for identifying a change in name. If all other 

procedures and information as stated in the last submitted Air Pollutant Emission 

Notice(s) remains unchanged, only one Air Pollutant Emission Notice need be 

submitted, indicating the name change. 

No administrative permit amendment for transfer or assignment of ownership of a 

source shaH be complete until a written agreement containing a specific date for 

transfer ofpermit, responsibility, coverage and liability between the current and new 

permittee is received by the division. 

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III.C. 	 Portable Sources 

A permitted portable source (e.g., asphalt plants, crushers, etc.) shall have its permit 

number permanently and prominently displayed on each major component of 

equipment that is a part ofthat portable source. 

III.D. 	 Exemption from Construction Permit Requirements 

None ofthe exemptions listed below in sections III.D.l. - 111.0.4., shall apply ifa 

source is subject to Part A ofRegulation No.6 (New Source Perfonnance Standards) 

and/or Regulation No.8 (Hazardous Air Pollutants), Parts A,C, 0, and E. Permit 

exemptions taken under this section do not affect the applicability of the regulations 

to the source. 

An applicant may not omit any information regarding APEN or permit exempt 

emission units in any application ifsuch information is needed to determine the 

applicability ofTitle V (Part C ofthis Regulation No.3), Prevention ofSignificant 

Deterioration (section IV.D.3., Part B ofthis Regulation No.3), or Nonattainment 

New Source Review (section IV.D.2.a., Part B ofthis Regulation No.3). 

III.D.l. 	 The following sources are exempt because by themselves, or cumulatively as a 

category, are deemed to have a negligible impact on air quality: 

IIID.I.a. 	 Those sources exempted from the filing ofAir Pollutant Emission Notices in 

section n.D., of Part A, ofthis regulation. 

III.D.l.b. 	 Containers, reservoirs, or tanks used exclusively for dipping operations for 

coating objects with oils, waxes, greases, or natural or synthetic resins 

containing no organic solvents. 

III.D.I.c. 	 Stationary Internal Combustion Engines that: 

m.D.1.c.(i) Power portable drilling rigs; or 

m.D.I.c.(ii) Are emergency power generators that operate no more than two hundred 

and fifty hours per year, or 

m.D.l.c.(iii) Have uncontrolled actual emissions in: 

m.D.l.c.(iii)(A) Nonattainment areas of less than five tons per year or 

manufacturer's site-rated horsepower ofless than fifty; or 

m.D.1.c.(iii)(B) 	 Attainment areas ofless than ten tons per year or manufacturer's 

site-rated horsepower of less than one hundred. 

III.D.I.d. 	 The collection, transmission, liquid treatment, and solids treatment processes 

at domestic wastewater treatment works, or treatment facilities that treat only 

domestic type wastewater, except for combustion processes. 

Regulation No.3 	 Part B, Page 69 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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III.D.I.e. Each individual piece of fuel burning equipment, other than smokehouse 

generators, that uses gaseous fuel, and that has a design rate less than or equal 

to 10 million British thermal unit per hour. 

III.D.I.f. Gasoline stations located in ozone attainment areas, except for stations located 

in the Denver Metropolitan ozone attainment/maintenance area. 

III.D.l.g. Surface mining activities that mine seventy thousand tons or fewer of product 

material per year. A fugitive dust control plan is required for such sources. 

Crushers, screens and other processing equipment activities -are not included 

in this exemption. 

III.D.l.h. Compo sting piles, however, all odor requirements ofRegulation No.2 must 

be met. 

III.D.Li. Commercial and product quality control laboratory equipment. 

m.D.1.j. Fires and equipment used for noncommercial cooking offood for human 

consumption and for cooking of food for human consumption at commercial 

food service establishments. 

III.D.2. 	 Facilities located in a nonattainment area for any criteria pollutant for which the area 

is nonattainment; with total facility uncontrolled actual emissions (potential emissions 

at actual operating hours) that are less than the following amounts: 

m.D.2.a. Two tons per year volatile organic compounds. 

m.D.2.b. One ton per year PMIO. 

m.D.2.c. Five tons per year total suspended particulate. 

m.D.2.d. Five tons per year carbon monoxide. 

m.D.2.e. Five tons per year sulfur dioxide. 

m.D.2.f. Five tons per year nitrogen oxides. 

m.D.2.g. Two hundred pounds per year lead. 

For purposes of calculating total facility uncontrolled actual emissions, only those 

individual (or grouped) emission points requiring Air Pollutant Emission Notices are 

to be considered. 

m.D.3. 	 Facilities located in attainment areas for all criteria pollutants with total facility 

uncontrolled actual emissions less (potential emissions at actual operating hours) than 

the following amounts: 

III.D.3.a. Five tons per year volatile organic compounds. 

m.D.3.b. Five tons per year PMIO. 

Regulation No.3 Part B, Page 70 

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m.D.3.c. Ten tons per year total suspended particulate. 

III.D.3.d. Ten tons per year carbon monoxide. 

m.D.3.e. Ten tons per year sulfur dioxide. 

III.D.3.f. Ten tons per year nitrogen oxides. 

III.D.3.g. Two hundred pounds per year lead. 

For purposes ofcalculating total facility uncontrolled actual emissions, only 

those individual (or grouped) emission points requiring Air Pollutant 

Emission Notices are to be considered. 

m.DA. 	 Facilities that emit any other criteria pollutant that is not listed in sections m.D.2., 

and m.D.3., above (fluorides, sulfuric acid mist, hydrogen sulfide, total reduced 

sulfur, reduced sulfur compounds, and municipal waste combustor emissions), with 

total facility uncontrolled actual emissions ofsuch pollutants that are less than two 

tons per year. 

III.D.S. 	 Reserved. 

IIID.6. 	 When a facility that was previously exempt from permit requirements exceeds one of 

the permit de minimis levels stated in sections m.D.2. - IILDA., above, due to the 

addition of new emission points, the division will issue either a facility-wide permit 

for all non-grandfathered emission units above Air Pollutant Emission Notice de 

minimis levels, or individual emission permits for those emission units. 

III.D.7. 	 All incinerators require a permit as stated in Regulation No.1, section III.B.I. 

III.D.8. 	 Oil and gas exploration and production operations that are addressed under section 

n.D.l.l1l., ofthis Regulation No.3, Part A, and that are required to obtain a 

construction permit, are not required to file an application for a construction permit 

until they are required to file an Air Pollutant Emission Notice, as set forth in section 

II.D.1.lll The application shall include a list of all applicable requirements, and how 

the requirements will be met until a construction permit is issued. 

III.D.9. 	 Any person may request the division to add source categories to the permit exemption 

list, in accordance with the procedures set forth in section n.D.S., ofPart A, ofthis 

regulation. 

m.D.IO. 	 Sources with a valid operating permit are not required to obtain a construction permit 

prior to commencing construction or modification, as set forth in section m.A.6., of 

this Part B. 

IV. 	 CONSTRUCfION PERMIT REVIEW PROCEDURES 

IV.A. 	 Option for Pre-Application Meeting 

Regulation No.3 	 Part B, Page 71 

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CODE OF COLORADO REGULATIONS 	 5 CCR lOOl~5 
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Prior to sUbmitting an application for a permit, an applicant may request and, if so 

requested, the division shall grant, a pre-application meeting with the applicant. At 

such meeting, the division shall advise the applicant of the applicable permit 

requirements, including the information, plans, specifications and the data required to 

be furnished with the permit application. 

IV.B. Application for a Construction Permit 

IV .B.1. An application for a Construction Permit shall be prepared on forms currently 

supplied by the division. 

IV .B.2. Applications shall be signed by a person legally authorized to act on behalfofthe 

applicant. The applicant shall furnish all information and data required by the 

division to evaluate the permit application and to make its preliminary analysis in 

accordance with section IV.B.4 

IV.B.3. An application for a Construction Permit will not be deemed to be complete until all 

information and data required to evaluate the application have been submitted to the 

division. Within sixty calendar days after the receipt of an application or any 

supplemental information timely requested by the division, the division will give 

notice to the applicant if and in what respect the application is incomplete. Ifthe 

division fails to notify an applicant that the application is incomplete within sixty 

calendar days of receipt ofthe original application or receipt ofthe requested 

supplemental information, the application shall be deemed to have been complete as 

of the day of receipt by the division ofthe application or the last submitted 

supplemental information, whichever is later. 

IV.B.4. Except for applications for sources subject to the requirements ofsection IV.D.3., 

(prevention of Significant Deterioration), the division shall prepare its preliminary 

analysis within sixty calendar days after receipt of a complete permit application. 

The preliminary analysis allows the division to determine whether the new source 

will, at date of commencement ofoperation, comply with: 

IV.B.4.a. 	 All applicable emission control regulations, 

IV.B.4.b. 	 Applicable regulations for the control ofhazardous pollutants, 

IV.B.4.c. 	 Requirements ofthe nonattainment and attainment programs (IV.D.2., and 

IV.D.3.), and 

IV.B.4.d. 	 Any applicable ambient air quality standards and all applicable regulations. 

The preliminary analysis shall indicate what impact, if any, the new source 

will have (as ofthe projected date of commencement of operation) on all areas 

(attainment, nonattainment, unclassifiable), within the probable area of 

influence of the proposed source. If so requested on the permit application 

form, a copy ofthis preliminary analysis shall be forwarded to the applicant 

postmarked no later than fifteen calendar days after the completion ofthe 

preliminary analysis. 

Regulation No.3 	 Part B, Page 72 

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When the preliminary analysis includes modeling, the model used shall be an 

appropriate one given the topography, meteorology and other characteristics 

of the region that the source will impact. Use of any nonguideline model 

requires US. EPA approval under section vrn.A., of Part A. 

IV.B.S. 	 The division shall complete the processing ofapplications (including any requested 

public hearing) for sources subject to section IV.D.3., ofPart B ofthis regulation 

(Prevention of Significant Deterioration) within twelve months of receipt of a 

complete application. 

IV.C. 	 Public Comment and Hearing Requirements 

IV.C.l. 	 The following sources, unless exempted in section IV.C.2., below, are subject to 

public comment: 

IV.C.I.a. 	 Sources with projected controlled annual emissions of any pollutant for which 

an ambient air quality standard has been designated, where such emissions 

will be greater than twenty-five tons per year ifthe source is located in a 

nonattairunent area, fifty tons per year ifthe source is located in an attainment 

area, or two hundred pounds per year oflead (for any area of the state). 

IV.C.I.b. 	 Sources for which preliminary anaJysis indicates a possible violation of 

commission Regulation No.2 (odor emissions). 

IV.C.l.c. 	 For hazardous air pollutants if: 

IV.C.l.c.(i) 	 The source is subject to Federal National Emission Standards for 

Hazardous Air Pollutants, 

IV.C.l.c.(ii) 	 The source is subject to Federal or Colorado Maximum Achievable 

Control Technology or Generally Available Control Technology 

standards, or 

IV .C.l.c.(iii) 	 The source is voluntarily applying for permit conditions to limit the 

source's potential to emit hazardous air pollutants. 

IV.C.I.d. 	 Sources subject to sections IV.D.2 .• or IV.D.3., ofPart B that are attempting 

to obtain a federally enforceable limit on the potential to emit ofthe source in 

order to avoid other requirements. 

IV.C.2. 	 The following sources are generally not required to be subject to public comment, 

unless the division determines that public comment is warranted pursuant to section 

XlI.C.3., below: 

IV.C.2.a. 	 Sources ofsix months duration or less, except that public comment shall be 

required for all sources of hazardous pollutants without regard to the duration 

ofthe operation of such source unless specifically exempted below. 

Regulation No.3 	 Part B, Page 73 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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IV.C.2.b. Demolition projects, even if asbestos materials are present, provided that all 

the requirements ofRegulation No.8 are followed for any and all materials 

suspected ofcontaining asbestos. 

IV.C.2.c. Construction or modification ofsources in accordance with the minor 

modification and operational flexibility provisions of sections x., XI., and 

xn., ofPart C, of this regulation are subject to the public participation 

requirements ofPart C. 

IV.C.3. 	 Sources for which a permit is required, but for wkich public comment is not required 

by sections IV.C.l., IV.C.2.a., or IV.C.2.b., above, are exempt from public comment 

requirements unless the division determines that public comment is warranted. In 

making such determinations, the division shall take into consideration the duration of 

the operation, its location, the nature and projected amount of emissions, anticipated 

public concern, and other relevant factors. 

IV.C.4. 	 When public comment is required by section IV.C.i., or when the division 

determines, pursuant to section IV.C.3., that an application warrants public comment, 

the division shall, within fifteen calendar days after the preparation ofthe preliminary 

analysis, cause public notice of the application to be published in a newspaper of 

general distribution in the area in which the proposed project or activity is or will be 

located, and by such other means necessary to assure notice to the affected public, 

that may include posting ofsuch notice on the publicly accessible portion ofthe 

division's web site, and cause a copy of the application, the preliminary analysis and 

the draft permit to be filed with the county clerk for each county in which the source 

is, or will be located. The division shall send written or electronic notice to persons 

requesting notice ofpermit applications for the type ofsource or geographic area. 

For sources applying for a permit to limit the potential to emit criteria pollutants or 

federal hazardous air pol1utants, the division shall send a copy ofthe public notice 

and the draft permit to the U.S. EPA Administrator for comment. The division shall 

also send a copy of the final permit approval to the U.S. EPA Administrator for 

comment. For sources subject to the provisions ofsection IV.D.3., a copy of all the 

materials the applicant submitted, and a copy or summary of other materials, if any, 

considered in making the preliminary analysis shall be filed with the county clerk for 

each county in which the source is or will be located. In addition, for sources subject 

to the provisions ofsection IV.D.3., a copy ofthe written or electronic notice of 

public comment shall be sent to the applicant, the U.S. EPA Administrator, and to 

officials and agencies having cognizance over the location where the proposed 

construction would occur as fol1ows: any other state or local air pollution control 

agencies, the chief executives of the city and county where the source is located, any 

comprehensive regional land use planning agency, and any state, Indian governing 

body or Federal Land Manager whose lands may be affected by emissions from the 

source or modification. The newspaper notice shall contain the information listed 

below in sections IV.C.4.a. - IV.C.4.e. The division's web site notice shall contain 

all of the following information in IV.C.4.a. - IV.C.4.f.: 

IV.C.4.a. 	 The location and nature of the proposed proj ect or activity for which a 

construction permit application has been filed. 

Regulation No.3 	 Part B, Page 74 

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IV.C.4.b. The locations where the application and preliminary analysis are available for 

public inspection. 

IV.C.4.c. That comments concerning the ability ofthe proposed project or activity to 

comply with the applicable standards and regulations ofthe commission are 

solicited from any interested person. 

IV.C.4.d. That the division will receive and consider public comments for thirty 

calendar days after such publication. 

IV.C.4.e. The division's preliminary determination ofapproval, conditional approval, or 

disapproval ofthe application. 

IV.C.4.f. Additiona1ly, for permit applications subject to the requirements ofsections 

IV.D.2., or IV.D.3., ofthis Part B: 

IV.C.4.f.(i) 	 That comments are solicited on an innovative technological system for 

pollution control ifproposed by the applicant and that a hearing by the 

commission will be held on such system ifrequested by any interested 

person; 

IV.CA.f.(ii) 	 That comments are solicited on the air quality impacts ofthe source or 

modification; 

IV.C.4.f.(iii) 	 That comments are solicited on alternatives to the source or modification; 

IV.CA.f.(iv) 	 That any interested person may submit a written request for a public 

comment hearing to be held pursuant to section 1.7.0., ofthe 

commission's procedural rules to receive comments regarding the 

foregoing concerns, the sufficiency ofthe preliminary ana1ysis, and 

whether the division should approve or deny the permit application; and 

IV .C.4.f.(v) 	 The degree of increment consumption that is expected from the source or 

modification. 

IV.C.S. 	 Within fifteen ca1endar days after the preparation of the preliminary analysis for those 

applications subject to the requirements ofsections IV.D.2., or IV.D.3., ofthis Part B, 

the division shall forward to the applicant written notice ofthe applicant's right to a 

public comment hearing with respect to the application pursuant to section 1.7.0., of 

the commission's procedural rules. 

IV.C.6. 	 A hearing request pursuant to section IV.C.4.f.(i), Part B, regarding innovative 

control, must be transmitted by the division to the commission within twenty days 

after its receipt 

IV.C.7. 	 A hearing request pursuant to section IV.C.4.f.(iv), PartB, must be transmitted by the 

division to the commission, along with the complete permit application, the 

preliminary analysis, the draft permit, and any written comments received by the 

division within five days after the end ofthe thirty day comment period. At least 

thirty days prior to the date set for the public comment hearing. the notice ofpublic 

Regulation No.3 	 Part B, Page 7S 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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comment hearing, the preliminary analysis and the draft permit shall be posted on the 

division's web site. No substantive revisions shall be made to the draft permit during 

the thirty days prior to the public comment hearing. 

N.C.8. The commission shall hold a public comment hearing within sixty days ofits receipt 

ofthe request for such hearing pursuant to section N.C.4.f., Part B (unless such 

greater time is agreed to by the applicant and the division), but at least sixty days after 

receipt by any Federal Land Manager of notice and the permit application required 

pursuant to section XA., Part B. The division shall appear at the public comment 

hearing in order to present the permit application: At least thirty days prior to such 

hearing, notice thereof shall be mailed by the commission to the applicant, to any 

interested person who submitted a request for a public hearing and to any Federal 

Land Manager given notice pursuant to section X.A., printed in a newspaper of 

general distribution in the area ofthe proposed source or modification, and submitted 

for public review with the county clerk for each county in which the source or 

modification is or will be located. Except as provided herein and in the notice, such 

hearings will be conducted pursuant to the Act, the Procedural Rules ofthe Air 

Quality Control Commission and the State Administrative Procedure Act, Colorado 

Revised Statute, section 24-4-101 et seq. 

N.C.9. Within fifteen days after the division makes a final decision on an application subject 

to the requirements ofRegulation No.3., Part B, sections N.D.2., or N.D.3., the 

division shall make available for public inspection the decision and all public 

comments with the county clerk for each county where the pre-construction 

information was made available. 

N.D. Construction Permit Review Requirements 

N.D. I. Requirements applicable to all construction permit applications (except that 

processing timeframes ofcombined construction/operating applications shall be as set 

forth in Part C, section N., ofthis Regulation No.3). Within thirty calendar days 

following the completion ofthe division's preliminary analysis for applications not 

subject to the public comment, within thirty calendar days following the period for 

public comment for applications subject to public comment, or ifa public comment 

hearing is held, within thirty calendar days following such hearing, the division shall 

grant the permit ifit finds that: 

N.D.I.a. 	 The proposed source or activity will meet all applicable emission control 

regulations and regulations for the control ofhazardous air pollutants; 

N.D.l.b. 	 As applicable, the proposed source or activity will meet the requirements of 

the attainment program as outlined in section N.D.2., Part B, ifany; 

N.D.I.c. 	 The proposed source or activity will not cause an exceedance ofany National 

Ambient Air Quality Standards in any attainment area; 

N.D.l.d. 	 The source or activity will meet any applicable ambient air quality standards 

and all applicable regulations; 

Regulation No.3 	 Part B, Page 76 

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IV.D.l.e. 	 As applicable, the proposed source or modification will meet the requirements 


ofthe prevention ofsignificant deterioration program ofsection IV .D.3. 
 ( 

I 

i 

[Provided however, that the division shall not deny a permit for failure of the 

proposed source to meet any applicable requirement ofthe state 

implementation plan where (I) there is pending an application for a revision to 

the state implementation plan pursuant to Colorado Revised Statute, section 

25-7-305 (Alternative Emission Reduction) that, ifadopted, would require the I

division to grant the permit and (2) the applicant waives the time constraints J 

on the division to act on its application wrtil the commissiotl'has issued its 

final decision on the request for a state implementation plan revision and the 

U.S. EPA has acted on the proposed revision to the state implementation plan. 

In such circumstances, the division shall delay its decision on the permit 

application until after final action on the request for revision of the state 

implementation plan (including action by the U.S. EPA)]; 

IV.D.l.f. 	 The fees required in section VI., Part A ofthis regulation have been paid; 

IV.D.l.g. 	 (Reserved); and, 

IV.D.l.h. 	 Permit approval shall not relieve any owner or operator of the responsibility to 


comply fully with applicable provisions ofthe state implementation plan and 


any other requirements under local, state, or federal law. 


IV.D.2. Requirements Applicable to Nonattainment Areas (Attainment Program) 

IV.D.2.a. 	 Major Stationary Sources. 

For any new major stationary source or major modification, the division shall 

grant a permit ifit determines that the following conditions in sections 

IV.D.2.a.(i) 	 IV.D.2.a.(vi), as well as those in section IV.D.l., Part B, will be 

met: 

IV.D.2.a.(i) 	 The proposed source will achieve the lowest achievable emission rate for 


the specific source category. 


IV.D.2.a.(ii) 	 The applicant has certified that all other existing major stationary sources 


owned, operated, or controlled by the applicant (or any entity controlling, 


controlled by, or under the common control with the applicant) in 


Colorado are in compliance with the requirements ofthe State 


implementation plan and the federally approved state implementation 


plan, or are subject to and in compliance with an enforceable compliance 


schedule, or a federally enforceable compliance schedule. 


IV .D.2.a.(iii) 	 Prior to the date ofcommencement of operations, emission reductions 


(offsets) greater than one for one must be obtained from existing sources 


within the nonattainment area for each pollutant, or its precursors, for 


which the area is nonattainment. 


Regulation No.3 	 Part B, Page 77 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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Offsets must represent reasonable further progress towards attainment of 

the National Ambient Air Quality Standards when considered in 

connection with other new and existing sources of emissions. In addition, 

offsets for PM\o, sulfur oxides, and carbon monoxide must show, through 

atmospheric modeling, a positive net air quality benefit in the area affected 

by the emissions. Provided, however, that offsets meeting the 

requirements ofthis section IV.D.2.a.(iii), may also be obtained from 

existing sources outside the nonattainment area ifthe applicant 

demonstrates: 

IV.D.2.a.{iii)(A) 	 A greater air quality benefit may thus be achieved, or sufficient 

offsets are not available from sources within the non attainment 

area; and 

IV .D.2.a.(iii)(B) 	 The other area has an equal or higher nonattainment classification 

than the area in which the source is located; and 

IV.D.2.a.(iii)(C) 	 Emissions from such other area contribute to a violation ofthe 

National Ambient Air Quality Standard in the nonattainment area 

in the source is located. 

With respect to offsets obtained from outside the non attainment 

area, the division may increase the ratio ofthe required offsets to 

new emissions the greater the distance such offsets are from the 

new or modified source; 

IV.D.2.a.{iv) 	 The permit application shall include an analysis of alternative sites, sizes, 

production processes and environmental control techniques for such 

proposed source that demonstrates that benefits ofthe proposed source 

significantly outweigh the environmental and social costs imposed as a 

result of its location, construction, or modification. 

IV.D.2.a.(v) 	 Offsets for which emission reduction credit is taken must be enforceable 

through permit conditions or source specific state implementation plan 

revisions. 

IV.D.2.a.(vi) 	 The applicant will demonstrate that emissions from the proposed source 

will not adversely impact visibility in a Class I area. This demonstration 

shall be reviewed by the Federal Land Manager and any determination 

made by the Federal Land Manager shall be considered in the division's 

decision to grant the permit Ifan adverse impact, as described in section 

XI.E., is predicted by the division, the permit application will be denied. 

Federal Land Manager involvement shall follow the same procedures as 

stated in section X.A., Part B ofthis Regulation No.3. The demonstration 

will be performed using either techniques described in the latest version of 

the U.S. EPA document entitled "Workbook for Estimating Visibility 

Impairment" or other techniques approved by the division. 

IV.Dol.b. 	 Applicability ofCertain Nonattainment Area Requirements 

Part B, Page 78 

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N.D.2.b.(i) 	 Any major source in a nonattainment area is subject to the requirement of 

section N.D.2.a., Part B. 

N.D.2.b.(ii) 	 The requirements ofsection N.D.2., a shall apply at such time that any 

stationary source or modification becomes a major stationary source or 

major modification solely by virtue of a relaxation in any enforceable 

limitation that was established after August 7, 1980, on the capacity ofthe 

source or modification to otherwise emit a pollutant, such as a restriction 

on hours ofoperation. 

N.D.2.c. 	 Exemptions from certain nonattainment area requirements: 

N.D.2.c.(i) 	 The following are exempt from the major stationary source criteria of 

N.D.2.a.(iii). 

N.D.2.c.(i)(A) Portable sources that will relocate outside a nonattainment area in 

less than one year. 

N.D.2.c.(i)(B) Each pilot plant that operates an aggregate of less than six months. 

N.D.2.c.(i)(C) Construction phases ofa new or modified building, facility, 

structure, or installation. These may, at the discretion ofthe 

division, exceed a period of one year. 

N.D.2.c.(i)(D) Other temporary processes or activities ofless than one year in 

duration. 

N.D.2.c.(i)(E) Sources undergoing fuel switches as required by federal order if 

the division determines that: 

N.D.2.c.(i)(E)(I) 	 The applicant has used best efforts in seeking the required 

emission offsets but was unsuccessful; 

N.D.2.c.(i)(E)(2) 	 All available emission offsets were obtained; and, 

N .D.2.c.(i)(E)(3) 	 The applicant will continue to seek emission offsets as they 

become available. 

N.D.2.d. 	 Minor Sources of volatile organic compounds, carbon monoxide, nitrogen 

oxides, sulfur dioxide, and PMto in nonattainment areas 

N.D.2.d.(i) 	 For minor sources in designated nonattainment areas, permits shall be 

issued if, in addition to determining that the source will meet the 

requirements ofsection N.D. I., the division determines that Reasonably 

Available Control Technology will be applied for the pollutants for which 

the area is nonattainment. 

N.D.2.d.(ii) 	 In the Denver PMIO nonattainment area, for any new minor source with a 

potential to emit forty tons per year or more ofnitrogen oxides or sulfur 

dioxide, or a modification of an existing minor source with a net emissions 

Regulation No.3 	 Part B, Page 79 

CODE OF COLORADO REGULATIONS 5 CCR 1001-5
Page 80 

increase offorty tons per year or more ofnitrogen oxides, or sulfur 

dioxide, the source will install Reasonably Available Control Technology 

for the specific source category, as determined by the division on a caseby-case basis. 

IV.D.3. 	 Requirements applicable to attairunent and unclassifiable areas and pollutants 

implemented under section 110 ofthe Federal Act (prevention of Significant 

Deterioration Program). 

IV.D.3.a. 	 Major Stationary Sources and Major Modifications. 

The requirements ofthis section IV.D.3., shall apply to any major stationary 

source and any major modification with respect to each pollutant regulated 

under the Act and the Federal Act that it would emit, except as this Regulation 

No.3 would otherwise allow. 

For any new major stationary source or major modification proposing to 

construct in any area in Colorado designated under section 107 (d) ofthe 

Federal Act as attairunent or unclassifiable for any criteria pollutant as ofthe 

date ofsubmittal ofa complete application under this Regulation No.3, or for 

pollutants implemented under section 110 ofthe Federal Act, the division 

shall grant a permit ifit determines that the following requirements, in 

addition to those in section IV .0.1., have been or will be met: 

IV.D.3.a.(i) 	 Control Technology Review. 

IV.D.3.a.(i)(A) 	 A new major stationary source shall apply Best Available Control 

Technology for each pollutant regulated under the Act or Federal 

Act that it would have the potential to emit in significant amounts. 

IV.D.3.a.(i)(B) 	 A major modification shall apply best available control technology 

for each pollutant regulated under the Act or Federal Act for which 

there would be a significant net emissions increase at the source. 

This requirement applies to each proposed emissions unit at which 

a net emissions increase in the pollutant would occur as a result of 

a physical change or change in the method ofoperation ofthe unit. 

IV.D.3.a.(i)(C) 	 For phased construction projects, the determination ofbest 

available control technology shall be reviewed and modified as 

appropriate for phases that commence construction more than 18 

months after the initial granting ofthe permit. The review will be 

conducted in a timely manner that will allow the owner or operator 

to proceed with scheduled construction ofthe source. During the 

review, the owner or operator ofthe applicable stationary source 

may be required to demonstrate the adequacy of any previous 

determination ofbest available control technology for the source. 

IV.D.3.a.(ii) 	 Source Impact Analysis. The owner or operator ofthe proposed source or 

modification shall demonstrate to the division that allowable emission 

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increases from the proposed source or modification in conjunction with all 

other emissions increases or reductions (including secondary emissions) 

will not cause or contribute to concentrations of air polJutants in the 

ambient air in violation of: 

N.D.3.a.(ii)(A) Any state or national ambient air quality standard in any baseline 

area or air quality control region; or 

N.D.3.a.(ii)(B) Any applicable maximum allowable increase over the baseline 

concentration in any area. 

N.D.3.a.(iii) Pre-construction Monitoring and Analysis 

N .D.3.a.(iii)(A) 	 An analysis ofambient air quality in any area that would be 

affected by the proposed major stationary source or major 

modification shall be performed for each pollutant regulated under 

the Act or Federal Act that the source or modification would emit 

or have the potential to emit in a significant amount, or for which 

there would be a significant net emissions increase. 

N.D.3.a.(iii)(B) 	 With respect to any such regulated pollutant for which no national 

ambient air quality standard exists and for which there is an 

acceptable method for the monitoring ofthat pollutant, the analysis 

shall contain such air quality monitoring data as the division 

determines are reasonably necessary to assess ambient air quality 

for that pollutant in any area that emissions ofthat pollutant would 

affect. 

N.D.3.a.(iii)(C) 	 With respect to any such pollutant for which a national ambient air 

quality standard does exist, the analysis shall contain continuous 

air quality monitoring data gathered for purposes ofdetermining 

whether emissions ofthat pollutant would cause or contribute to a 

violation ofthe applicable standard or any maximum allowable 

increase. 

N.D.3.a.(iii)(D) 	 In general, the continuous air quality monitoring data that are 

required under section N.D.3.a.(iii)(C), or the pre-application 

monitoring ofair quality related values required by section X.B., 

shall have been gathered over a period ofone year and shall 

represent the year preceding receipt ofthe application, except that 

the division may determine that a complete and adequate analysis 

can be accomplished with: (1) monitoring data gathered over a 

period shorter than one year (but not to be less than four months); 

or (2) the use ofexisting representative air quality data. 

When existing background ambient air levels of a pollutant are 

reasonably estimated to be small and a monitoring network would 

not reliably measure the predicted background concentrations, the 

division has the discretion to not require a source owner or 

Regulation No.3 	 Part B, Page 81 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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operator to generate pre-construction monitoring data for that 

pollutant. 

N.D.3.a.(iii)(E) 	 The owner or operator of a proposed major stationary source or 

major modification ofvolatile organic compounds who satisfies all 

conditions ofthe Code ofFederal Regulations Title 40, Part 51, 

Appendix S, Section N., (but not including conditions resulting 

from amendments after July 1, 1991 and not including section N. 

B., ofAppendix S) may provide post-approval monitoring data for 

ozone in lieu ofproviding pre;O{X)nstruction data as required under 

section N.D.3.a.{iii)(A). (Information on obtaining the Code of 

Federal Regulations Title 40, Part 51, Appendix S, Section N. is 

available from the Director, Air Pollution Control Division, 4300 

Cherry Creek Drive South, Denver, Colorado, 80246-1530.) 

N.D.3.a.{iv) 	 Post-Construction Monitoring. At its discretion, the division may require 

that the owner or operator of a major stationary source or major 

modification conduct post-construction ambient monitoring for a period 

up to one year. The division may also require additional monitoring 

beyond the one year period ifsuch monitoring is necessary to determine 

the effect emissions from the stationary source or modification have, or 

may have, on air quality in any area. The monitoring of air quality related 

values or sensitive receptors required by section X.B., shall be for such 

time as is necessary to determine the effect emissions from the source or 

modification will have on the air quality related values or sensitive 

receptors. 

Post-construction monitoring requirements will be permit conditions. 

N .D.3.a.(v) 	 Operation ofMonitoring Stations. The owner or operator of a major 

stationary source or major modification shall use the U.S. EPA accepted 

procedures for ambient monitoring as approved by the division during the 

operation ofmonitoring stations for pwposes ofsatisfying the 

requirements ofsections N D.3.a.{iii), and N.D.3.a.{iv), above. 

N.D.3.a.{vi) 	 Additional hnpact Analysis. For each polJutant that is regulated under the 

Act or the Federal Act, and for which the source or modification would 

emit or for which there would be a significant net emissions increase, the 

owner or operator shall provide an analysis ofthe impairment to visibility, 

water, soils, and vegetation that would occur as a result ofthe emissions of 

such pollutant from the source or modification and general commercial, 

residential, industrial, and other growth associated with the source or 

modification. The analysis of impairment to water will not be used in the 

determination ofbest available control technology. The owner or operator 

need not provide an analysis ofthe impact on vegetation having no 

significant commercial or recreational value. The additional impact 

analysis will include the effects on air quality related values as stated in 

section X.B., ofthis regulation, if applicable. 

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The owner or operator shall provide an analysis of the air quality impact 

projected for the area as a result of general commercial, residential, 

industrial and other growth associated with the source or modification. 

IV.D.3.b. 	 Applicability of Certain PSD Requirements. 

IV.D.3.b.(i) 	 The requirements of section IV.D.3.a., Part B, do not apply to a major 

stationary source or major modification with respect to a particular 

pollutant if the owner or operator demonstrates that, as to that pollutant: 

IV.D.3.b.(i)(A) 	 The source or modification is subject to Part 3 of the Act and 

section IV.D.2., Part B, of this Regulation No.3, and the source or 

modification would not impact any area designated as attainment 

or unclassifiable for that pollutant; or 

IV.D.3.b.(i)(B) 	 Reserved 

IV.D.3.b.(i)(C) 	 The emissions from the source or modification would not be 

significant; or 

IV.D.3.b.(i)(D) 	 The source or modification is a portable stationary source that has 

previously received a permit under requirements equivalent to 

those contained in section IV.D.3.a., ofthis regulation, Part B, or 

the Code of Federal Regulations Title 40 Section 51.166(j) (r) if: 

IV.D.3.b.(i)(D)(1) 	 The source proposes to relocate and emissions ofthe source 

at the new location would be temporary; 

IV.D.3.b.(i)(D)(2) 	 The emissions from the source would not exceed its 

allowable emissions; 

IV .D.3.b.(i)(D)(3) 	 The emissions from the source would impact no Class I 

area and no area where an applicable increment is known to 

be vioJated; and 

IV.D.3.b.(i)(D)(4) 	 Reasonable notice identifying the proposed new location 

and the probable duration ofoperation at the new location 

and a revised Air Pollutant Emission Notice is given to the 

division prior to the relocation. Such notice and revised 

Air Pollutant Emission Notice shall be given to the division 

not less than ten days in advance of the proposed relocation 

unJess a different time duration is previously approved by 

the division. 

IV.D.3.b.(ii) 	 The requirements contained in sections IV.D.3.a.(ii) IV.D.3.a.(vi), do 

not apply: 

IV.D.3.b.(ii)(A) 	 To a proposed major stationary source or major modification with 

respect to a particular pollutant, ifthe emissions would be from a 

temporary source, modification or activity, such as construction or 

Regulation No.3 	 Part B, Page 83 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

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exploration, and would not have an impact on air quality in any 

Class I area or an area where an applicable increment is known to 

be violated; or 

rv.D.3.b.(ii)(B) 	 As they relate to any maximum allowable increase for a Class II 

area, to a modification of a major stationary source that was in 

existence on March 1, 1978, ifthe net increase in allowable 

emissions ofeach pollutant subject to regulation under the Act 

from the modification after the application ofbest available control 

technology would be less than fifty tons per year. 

rv.D.3.b.(iii) 	 The division may exempt a proposed major stationary source or major 

modification from the requirements ofsections rv.D.3.a.(iii)­

rv.D.3.a.(v), with respect to monitoring for a particular pollutant if: 

rv.D.3.b.(iii)(A) 	 The emissions ofthe pollutant from the new stationary source or 

the net emissions increase ofthe pollutant from the modification 

would cause air quality impacts, in any area, less than the 

following: 

rv.D.3.b.(iii)(A)(1) Carbon monoxide - 575 Jlg/m3

, 8-hour average; 

rv.D.3.b.(iii)(A)(2) Nitrogen dioxide -14 Jlg/m3

, annual average; -. 

rv.D.3.b.(iii)(A)(3) Particulate Matter - 10 Jlg/m3 total suspended particulate 

matter, 24-hour average; PMJO- 10 Jlg/m3

, 24-hour .~ average; 

rv.D.3.b.(iii)(A)(4) Sulfur dioxide - 13 Jlg/m3

, 24-hour average; 

rv.D.3.b.(iii)(A)(5) Lead - 0.1 Jlg/m3

, 3-month average; 

rv.D.3.b.(iii)(A)(6) Mercury - 0.25 Jlg/m3

, 24-hour average; 

rv.D.3.b.(iii)(A)(7) Beryllium - 0.001 Jlg/m3

, 24-hour average; 

rv.D.3.b.(iii)(A)(8) Fluorides - 0.25 Jlg/m3

, 24-hour average; 

rv.D.3.b.(iii)(A)(9) Vinyl chloride -15 Jlg/m3

, 24-hour average; 

rv.D.3.b.(iii)(A)(10) Total reduced sulfur - 10 Jlg/m3

, I-hour average; 

rv.D.3.b.(iii)(A)(II) Hydrogen sulfide - 0.2 Jlg/m3

,I-hour average; 

rv.D.3.b.(iii)(A)(12) Reduced sulfur compounds -10 Jlg/m3

,I-hour average; or 

rv.D.3.b.(iii)(B) 	 The existing concentrations of the pollutant in the area that the 

source or modification would affect are less than the 

concentrations listed in this section; or 

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IV.D.3.b.(iii)(C) 	 For ozone, the emissions increase or net emissions increase of 

volatile organic compounds from the source or modification would 

be less than 100 tons per year; or 

IV.D.3.b.(iii)(D) 	 The pollutant is not referred to in this section. 

IV.D.3.b.(iv) 	 The requirements ofPart B, sections IV.C., and IV.D.3.a., Part A, section 

VIll., the definition ofcomplete, Part B, section IX., and section x., shall 

apply at such time that any stationary source or modification becomes a 

major stationary source or major modification solely by virtue of a 

relaxation in any enforceable limitation that was established after August 

7,1980, on the capacity ofthe source or modification to otherwise emit a 

pollutant such as a restriction on hours of operation. 

IV.D.3.b.(v) 	 A stationary source or modification may apply the applicable maximum 

allowable increases for total suspended particulate matter as in effect on 

the date ofthe permit application, in meeting the requirements ofsection 

IV.D.3.a.(ii), ifthe following requirements are met: 

IV.D.3.b.(v)(A) 	 The owner or operator ofthe source or modification submitted an 

application for a permit under Regulation No.3 before the 

provisions for maximum allowable increases for PMIO took effect; 

and 

IV.D.3.b.(v)(B) 	 The division determines that the application as submitted, before 

the date that the maximum allowable increases for PM 10 took 

effect, was complete. 

IV.D.3.c. 	 Notice to the U.S. EPA. 

The division shall transmit to the Administrator of the U. S. EPA a copy of 

each permit application relating to a major stationary source or major 

modification subject to this regulation, and provide notice of every action_ 

related to the consideration ofsuch permit. 

IV.D.3.d. 	 Major Sources in attainment areas affecting nonattainment area. 

IV.D.3.d.(i) 	 For any new major stationary source or major modification that is 

proposed to be constructed in an area designated under section 107(d) of 

the Federal Act as attainment or unclassifiable for a particular pollutant 

and the emissions ofsuch pollutant from which would significantly affect 

ambient air quality in an area designated as nonattainment for such 

pollutant, the division shall grant a permit ifit determines that one or both 

ofthe following conditions, as wen as those in sections IV.D.!., and 

IV.D.3.a., Part B, will be met: 

IV.D.3.d.(i)(A) 	 The proposed source or modification win meet the requirements of 

Part B, sections IV.D.2.a.(i), and IV.D.2.a.{ii), and obtain 

sufficient emission reductions of such pollutant in the 

Regulation No.3 	 Part B, Page 85 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 86 

nonattainment area to offset that portion of its emissions ofsuch 

pollutant that affect the nonattainment area. Offsets may be 

obtained from outside the nonattainment area as provided in 

section IV.D.2.a.(iii), Part B ofthis Regulation No.3.; or 

IV.D.3.d.(i)(B) 	 The proposed source or modification will achieve an emissions 

rate that will ensure that the emissions ofsuch pollutant from the 

source or modification will not significantly affect ambient air 

quality in the nonattainment area. 

IV .D.3.d.(ii) 	 Ambient air quality will be deemed to be significantly affected if, but for 

any offsets, the applicable significance level set forth in the following 

table would be exceeded in the nonattainment area. 

TABLE OF SIGNIFICANCE LEVELS 

Pollutant Averaging Time 

Annual 24-Hour 8-Hour 3-Hour I-Hour 

SOz 1.0 J.lglm3 5 J.lglm3 25 J.lglm3 

PMIO 1.0 J.lglm3 5 J.1g1m3 

TSP 1.0 J.1g1m3 51lg/m3 

NOz 1.0 J.1g1m3 

CO 500 J.1g1m3 2000 J.1g1m3 

IV .D.3.d.(iii) Any new major stationary source or major modification subject to this 

section that will emit or cause a net emissions increase in volatile organic 

compounds shall demonstrate to the satisfaction ofthe division that its 

emissions will not affect any ozone nonattainment area or shall obtain 

offsets as required in section IV.D.3.d.(i), above. 

IV.D.3.d.(iv) 	 Emission offsets for PM 10. sulfur dioxide, and carbon monoxide, must 

show, through air quality modeling, a positive net air quality benefit in the 

portion ofthe nonattainment area affected by emissions from the proposed 

source or modification. 

IV.D.3.e. 	 Minor stationary sources ofvoJaliJe organic compounds, carbon monoxide, 

nitrogen oxides, sulfur dioxide and PMIO in designated 

attainment/maintenance areas 

IV.D.3.e.(i) 	 For minor sources localed in designated attainment/maintenance areas, 

permits shall be issued if, in addition to determining that the source will 

meet the requirements ofsection IV.D.I., the division determines that 

Regulation No.3 	 Part B, Page 86 

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Reasonably Available Control Technology will be applied for the 

pollutants for which the area was previously nonattainment. 

IV.D.3.e.{ii) 	 In the Denver Metropolitan PMIO attainment/maintenance area, for any 

new minor source with a potential to emit 40 tons per year or more of 

nitrogen oxides or sulfur dioxide, or a modification of an existing minor 

source with a net emissions increase of40 tons per year or more of 

nitrogen oxides or sulfur dioxide, the source will apply Reasonably 

Available Control Technology for the specific source category, as 

determined by the division on a case-by-case basis. 

IV.D.4. 	 Negligibly Reactive Volatile Organic Compounds (NRVOCs) 

IV.D.4.a. 	 The negligibly reactive volatile organic compounds referenced in the 

Common Provisions definition ofnegligibly reactive volatile organic 

compounds are considered to be ofnegligible photochemical reactivity and 

are neither counted as reactive volatile organic compounds in determining 

volatile organic compound emission contributions to an increase in ozone nor 

used as volatile organic compound emission offsets or other volatile organic 

compound emission trading credits against volatile organic compounds not 

listed in the common provisions negligibly reactive volatile organic 

compound definition. 

IV.D.4.b. 	 Negligibly reactive volatile organic compounds may be substituted for volatile 

organic compounds and the resulting decrease in volatile organic compound 

emissions, ifotherwise creditable, may be used for offset, banking or other 

emission trading credit. 

IV.E. 	 Permit Terms and Conditions 

The division shall include such terms and conditions in any permit as it deems 

necessary for the proposed project or activity to qualify for the permit. 

IV.F. 	 Time Constraints on Division Action-- Reserved. 

IV.G. 	 Denial or Revocation ofthe Construction Permit 

IV.G.t. 	 If the division determines that a source cannot comply with the provisions ofPart B, 

section IV.D., ofthis regulation, the division shall issue its written denial ofthe 

permit application stating the reasons for such denial. Any division denial ofa permit 

shall become final upon mailing ofthe denial notice to the applicant by certified mail. 

The applicant may appeal the division's final denial ofa permit as provided in section 

IV.G.3., below. 

N.G.2. 	 Any applicant for a construction permit shall advise the division in writing ofany 

refusal to accept any permit condition imposed by the division within twenty calendar 

days after receipt ofthe permit. Such refusal shall be deemed a denial ofthe permit 

application. 

Regulation No.3 	 Part B, Page 87 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 88 

IV.G.3. If the division denies a permit, imposes conditions upon a pennit that are contested by 

the applicant, or the division revokes a permit, or the division requires a permit from 

a source that may qualify for an exemption, the applicant or owner or operator of a 

source may request a hearing before the commission for review ofthe division's 

action. The request for a hearing must be filed with the commission within thirty 

days after the issuance ofthe permit, denial or revocation. The hearing shall be heard 

in accordance with the provisions ofsection 1.6.0., ofthe commission's procedural 

rules, Colorado Revised Statute sections 25-7-114.5(8), and 25-7-119, (Colorado Air 

Pollution Prevention and Control Act) and section 24-4-105, (State Administrative 

Procedure Act). 

IV.G.4. Initial Approval Expiration 

IV.G.4.a. 	 An initially approved permit shall expire ifthe owner or operator ofthe source 

for which the permit was issued: (i) does not commence construction or 

operation ofthe source within eighteen months after either the date of 

issuance ofthe permit or the date on which such construction or activity was 

scheduled to commence as set forth in the permit, whichever is later; (ii) 

discontinues construction for a period of eighteen months or more; or (iii) 

does not complete construction within a reasonable time ofthe estimated 

completion date. 

IV.G.4.b. 	 Upon a showing of good cause by the pennittee, the division may grant 

extensions ofthe pennit not to exceed eighteen months per extension. 

Construction or operation shall commence or be resumed within a reasonable 

period oftime from the granting ofthe extension. In determining what 

constitutes good cause or a reasonable period oftime, the division shall 

consider the degree of construction already completed, the amount invested or 

legally committed to the project, whether an extension would prevent (e.g., 

through reservation of a Prevention Significant Deterioration increment) 

economic development in the affected area, general economic conditions, the 

health ofthe community as it affects the ability ofthe permittee to proceed, 

and other relevant factors. The division shall notify the commission of any 

requested extensions and the reason given for each request. 

IV.G.4.c. 	 This section shall not apply to sources that have received an initially approved 

permit on or prior to the effective date ofthis regulation. 

IV.H. 	 Final Permit Approval 

IV.H.I. Unless prior and mutually acceptable arrangements have been made, the applicant 

shall not commence the operation of a stationary source for which a construction 

permit has been issued or reinstated without giving notice to the division, thirty 

calendar days (fifteen calendar days for portable sources) prior to the date on which 

commencement will take place. 

IV .H.2. 	 Within one hundred eighty calendar days after commencement of operation, the 

source shall demonstrate to the division compliance with the terms and conditions of 

the initial approval construction pennit. The division may inspect the source to 

Regulation No.3 	 Part B, Page 88 

5 CCR 1001-5 	 CODE OF COLORADO REGULATIONS 

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determine whether or not the operating terms and conditions ofthe initial approval 

construction permit have been satisfied. At the end of one hundred and eighty days, 

the division must revoke the construction permit; or, continue the construction permit 

if applicable; or, notify the owner or operator that the source has demonstrated 

compliance with the construction permit. 

IV.H.3. 	 Before final approval of the permit is granted, the division may require the applicant 

to conduct and pay for performance tests in accordance with methods approved by the 

division. A test protocol shaH be submitted to the division for review and approval at 

least thirty days prior to testing. The division may monitor such tests and may, at its 

expense, conduct its own performance tests. 

IV.H.4. 	 For sources that submit an application for an operating permit pursuant to Part C of 

this Regulation No.3, including any application for a permit modification or permit 

renewal, prior to issuance of a final approval construction permit, upon demonstration 

by the source ofcompliance with all terms and conditions ofthe construction permit 

or a satisfactory final approval inspection, as required pursuant to this section IV.H., 

the division may elect to either issue a final approval construction permit or allow the 

initial approval construction permit to continue in full force and effect. The division 

shall provide written notice to the permittee ofits election. 

IV.H.S. 	 Ifthe division determines that the terms and conditions ofthe permit have been 


satisfied, the division shall issue in writing its final permit approval to the applicant, 


or shall incorporate the terms and conditions into an operating permit issued in 


accordance with Part C ofthis regulation. Otherwise, the division shall revoke the 


permit. 


IV .H.6. 	 Reserved 

IV.H.7. 	 Final approval may be issued at the same time as initial approval for temporary 


sources ofa duration ofone month or less. 


IV .H.8. 	 Prior to issuance offinal approval, the applicant shall furnish: 

IV.H.S.a. 	 An 

practices; 

operating 

and 

and maintenance plan for all control equipment and control I

IV.H.S.b. 	 A proposed record keeping format for demonstrating compliance on an 

ongoing basis. I 

IV.I. 	 Permit Cancellation t 

Whenever an owner or operator wishes to cancel a permit, the owner or operator shall 

notify the division, using forms provided by the division. I

I. IV.J. 	 General Construction Permits 

IV.J.1. 	 The division may issue a general construction permit covering numerous similar 


sources to a source that would otherwise be required to obtain a construction permit 


pursuant to this Part B. Any general construction permit shall comply with all 


Regulation No.3 	 Part B, Page 89 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 90 

applicable requirements, including notice and opportunity for public participation 

where warranted for such sources. The division may issue a general construction 

permit in accordance with one or more ofthe following considerations: 

IV.J.l.a. The control equipment utilized by the sources; 

IV.J.l.b. The design characteristics ofthe sources; 

IV.J.l.c. The operational variability of the sources; 

IV.J.l.d. The location ofthe sources. 

IV.J.2. 	 A source shall not perform any ofthe following without first obtaining a valid general 

construction permit from the division pursuant to this provision, or a valid 

construction permit as otherwise required pursuant to section IV., of this Part B: 

IV.J.2.a. 	 Commence construction or modify any building, facility, structure, or 

installation; 

IV.J.2.b. 	 Install any machine, equipment, or other device; 

IV.J.2.c. 	 Commence the conduct of any such activity; 

IV.J.2.d. 	 Commence performance ofany combinations thereof; or 

IV.J.2.e. 	 Commence operations of any ofthe same that will or do constitute a new 

stationary source. 

IV.J.3. 	 Administration 

IV.J.3.a. 	 General construction permits may be issued, modified, revoked and reissued, 

or terminated in accordance with the provisions of this regulation. 

IV.J.3.b. 	 Sources shall submit applications to be covered under the general construction 

permit on forms provided by the division. 

IV.J.3.c. 	 Individual Permit Requirements 

IV.J.3.c.O) 	 The division may require any source authorized by a general construction 

permit to apply for and obtain an individual permit. Cases where an 

individual permit may be required include, but are not limited to, the 

following: 

IV.J.3.c.(iXA) 	 A change has occurred in the availability ofcontrol technology or 

practices for the control or abatement ofair pollutants applicable to 

the source; or 

IV.J.3.c.(i)(B) 	 Circumstances have changed since the time ofthe request to be 

covered so that the source is no longer appropriately controlled 

under the general construction permit. 

Regulation No. 3 	 Part B, Page 90 

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IV.J.3.c.(ii) 	 Any source authorized by a general construction permit may request to be 

excluded from the coverage ofthe general construction permit by applying 

for an individual permit, as provided for under this regulation, Parts A and 

B. 

IV.J.3.c.(iii) 	 When the division issues an individual permit to a source otherwise 

subject to a general construction permit, the applicability ofthe general 

construction permit to the individual permittee is automatically terminated 

on the effective date ofthe individual permit. 

IV.J.3.c.(iv) 	 A source excluded from a general construction permit solely because it 

already has an individual permit may request that the individual permit be 

revoked, and that it be covered by the general construction permit. Upon 

revocation ofthe individual permit, the general construction permit shall 

apply to the source. 

IV.J.3.c.(v) 	 In determining whether an individual permit is required, the division may 

consider the compliance history and current compliance status ofthe 

source. 

IV.J.4. 	 The division shall review the application and certify or deny the request based on 

criteria specified in the general construction permit established by the division for that 

type ofsource. 

IV.J.S. 	 General construction permits shall include conditions necessary to ensure the sources 

will meet all applicable requirements. 

IV.J.6. 	 General construction permits issued by the division may include the following 

requirements, as appropriate and as specified in each permit: 

IV.J.6.a. 	 An operating and maintenance plan for all control equipment and control 

practices; 

IV.J.6.b. 	 A record keeping format for demonstrating compliance; 

IV.J.6.c. 	 Monitoring methods to assure compliance; and 

IV.J.6.d. 	 Alternative operating scenarios that include specific monitoring, record 

keeping, and reporting methods that will assure compliance with the permit 

conditions. 

IV.J.7. 	 All general construction permits shall undergo statewide public notice. Ifa source 

wants to be covered under a general construction permit, the source must apply within 

the time period specified in the public notice. 

v. 	 AREA CLASSIFICA nONS 

V.A. 	 The following areas in Colorado shall be Class I areas and may not be redesignated: 

V.A.I. 	 National Parks 

Regulation No.3 	 Part B, Page 91 

CODE OF COLORADO REGULATIONS 5 CCR 1001-5
Page 92 

V.Al.a. Rocky Mountain 

V.Al.b. Mesa Verde 

V.A2. National Wilderness Areas 

V.A2.a. Black Canyon ofthe Gunnison 

V.A2.b. Eagle's Nest 

V.A2.c. Flattops 

V.A2.d. Great Sand Dunes 

V.A2.e. La Garita 

V.A2.f. Maroon Bells - Snowmass 

V.A2.g. Mount Zirkel 

V.A2.h. Rawah 

V.A2.i. Weminuche 

V.A2.j. West Elk 

V.B. 	 All other areas ofColorado, unless otherwise specified by Act ofCongress or the 

Colorado legislature, or the commission pursuant to section VI., are designated Class 

II; provided, however that in the following areas as they existed on August 7,1977 

(maps available from the division), the increase allowed in sulfur dioxide 

concentrations over the baseline concentration shall be the same as the increase 

established by section 163(b) ofthe Federal Act for Class I areas, except that such 

allowable increases may not be allowed ifa Federal Land Manager should make an 

adverse impact determination under section X.C., with which the division concurs 

and except that such allowable increases may be exceeded by compliance with the 

provisions ofsections X.D., X.E., or X.F.: 

V.B.t. 	 National Monuments 

V.B.l.a. 	 Florissant Fossil Beds 

V.B.1.b. 	 Colorado 

V.B.l.c. 	 Dinosaur 

V.B.l.d. 	 Great Sand Dunes (those portions not included as National Wilderness Areas 

in section V.A.2.) 

V.B.2. 	 Forest Service Primitive Areas 

V.B.2.a. Uncompahgre Mountain 

Regulation No.3 Part B, Page 92 

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V.B.2.b. Wilson Mountain 

V.B.3. 	 Lands administered by the Federal Bureau ofLand Management in the Gunnison 

Gorge Recreation Area as of October 27, 1977. All areas designated Class II under 

this section may be redesignated as provided in section VI., ofthis Regulation No.3, 

PartB. 

V.BA. 	 National Parks 

Black Canyon ofthe Gunnison (those portions not included as National Wilderness 


Areas in section V.A.2.) 


V.C. 	 The following areas may be redesignated only as Class lor II. 

V.C.I. 	 An area that, exceeds ten thousand acres in size and is a national monument, a 

national primitive area, a national preserve, a national recreational area, a national 

wild and scenic river, a national wildlife refuge, a national lakeshore; and 

V.C.2. 	 A national park or national wilderness area established after August 7, 1977. that 

exceeds ten thousand acres in size. 

V.D. 	 The commission recognizes out ofstate Class I areas that have been listed in the i 

Federal Register (44FR69124). Emissions from sources in Colorado shall not violate i 

any standard in these areas. I 

f VI. 	 REDESIGNATION 

VLA. 	 Except as provided otherwise in this section or section V., ofPart B ofthis 

Regulation No.3, the commission may redesignate any area in Colorado as Class I, 

Class II or Class TIl as herein provided. The commission will provide notice to the I

f General Purpose Unit of local government in an area where the maximum allowable 

I 

f increase is being approached. 

VI.B. 	 The commission shall review and consider a request for redesignation by any person. 

VLC. 	 The commission shall not set a hearing date on a proposed redesignation until the 

following have been completed: 

VI.C.1. 	 A complete description ofthe area proposed for redesignation; I

VI.C.2. 	 A detailed statement ofthe circumstances that support the proposed redesignation; 

VI.C.3. 	 A prediction ofthe costs and benefits for the affected population from the proposed 

redesi gnation; 

VI.CA. 	 A technical analysis ofexpected impacts on ambient air quality in adjacent or nearby 

areas; 

Regulation No.3 	 Part B, Page 93 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 94 

VI.C.5. Comments, or evidence ofan opportunity for submission ofcomments, by all 

appropriate regional planning agencies and councils of government organizations, 

affected municipalities and other affected political subdivisions; and 

VI.C.6. An analysis ofthe relationship ofthe proposed redesignation with applicable county 

or regional development plans, including but not limited to, comprehensive area wide 

plans and 208 water quality plans. 

VLD. The commission shall provide sixty day notice prior to a public hearing, including 

notice to other states, Indian governing bodies and Federal Land Managers whose 

lands may be affected by a proposed redesignation, ofany proposed redesignation, 

and conduct public hearings on such proposed redesignation in or near areas within 

Colorado that may be affected by such proposed redesignation, including at least one 

public hearing within or as near as is practicable to the area to be redesignated. At 

least thirty days prior to any such public hearings, the commission shall make 

available for public inspection a discussion ofthe reasons for the proposed 

redesignation, including a satisfactory description and analysis ofthe health, 

environmental, economic, societal and energy effects ofthe proposed redesignation. 

The notice announcing any public hearings shall contain appropriate notification of 

the availability ofsuch discussion. 

VI.E. Prior to the issuance ofnotice respecting the proposed redesignation of an area that 

includes any federal lands, the commission shall provide written notice to the 

appropriate Federal Land Manager and afford adequate opportunity (not in excess of 

sixty days) to confer with the commission respecting the notice ofproposed 

redesignation and to submit written comments and recommendations with respect to 

such notice ofproposed redesignation. In redesignating any area with respect to 

which any Federal Land Manager had submitted written comments and 

recommendations, the commission shall publish a list ofany inconsistency between 

such redesignation and such comments and recommendations and an explanation of 

such inconsistency (together with the reasons for making such redesignation against 

the recommendation ofthe Federal Land Manager). 

VI.F. All redesignations, except any established by an Indian governing body, shall be 

specifically approved; (I) by the governor, after consultation with the appropriate 

committees ofthe legislature, ifit is in session, or with the leadership ofthe 

legislature, if it is not in session, and (2) by resolutions or ordinances enacted by the 

general purpose units oflocal government representing a majority ofthe residents of 

the area to be redesignated. 

VLG. No area may be redesignated ifsuch redesignation would cause or contribute to 

concentrations ofany air pollutant in any other area that exceed any maximum 

allowable increase or maximum allowable concentration pennitted under the 

classification ofsuch area. 

VI.H. Lands within the exterior boundaries ofreservations of federally recognized Indian 

tribes may be redesignated only by the appropriate Indian governing body. 

Regulation No.3 Part B, Page 94 

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VI.I. Any redesignation shall constitute a revision to the Colorado State hnplementation 


Plan and shall be submitted for approval to the Administrator ofthe U .S. EPA 


VI.J. 	 Any redesignation or denial of a proper request for redesignation made pursuant to I

this section VI., shall be subject to judicial review in accord with Colorado Revised 

Statute section 25-7-120. I 

I VI.K. 	 Any area other than an area to which V.A, or V.C., refers to may be redesignated as r 

Class III if any major stationary source or major modification could receive a permit 

only ifthe area in question were redesignated as Class Ill, and any material submitted 

as part ofthat application were available, insofar as was practicable, for public 

inspection prior to any public hearing on redesignation of any area as Class III. 

VII. AIR QUALITY LIMITATIONS 


vn.A. Ambient Air Increments 


VIlA.I. The maximum allowable increases over the baseline concentration for sulfur dioxide, 


PMIO, or nitrogen dioxide except as provided in section V.B., ofthis Regulation No. 

3, Part B, are: 

VII.AI.a. For any Class I area: 

PM 10 (p.glm3

) 

Annual arithmetic mean 4 

Twenty-four hour maximum 8 

Sulfur dioxide (J.lglm3

) 

Annual arithmetic mean 2 

Twenty-four hour maximum 5 

Three hour maximum 25 

Nitrogen dioxide (J.lglm3

) 

Annual arithmetic mean 2.5 

Regulation No. 3 	 Part B, Page 95 

CODE OF COLORADO REGULATIONS 5 CCR 1001-5
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VIlA.l.b. 

VIlA.l.c. 

For any Class II area: 

PMIO (Jlglm3) 

Annual arithmetic mean 17 

Twenty-four hour maximum 30. 

Sulfur dioxide (Jlglm3

) 

Annual arithmetic mean 20 

Twenty-four hour maximum 91 

Three hour maximum 512 

Nitrogen dioxide (Jlglm3

) 

Annual arithmetic mean 25 

For any Class III area: 

PMIO (Jlglm3

) 

Annual arithmetic mean 34 

Twenty-four hour maximum 60 

Sulfur dioxide (Jlglm3

) 

Annual arithmetic mean 40 

Twenty-four hour maximum 182 

Three hour maximum 700 

Nitrogen dioxide (Jlglm3

) 

Annual arithmetic mean 50 

VILA.2. The maximum allowable increases over the baseline concentration for any other air 

pollutant shall be the same as those increases established pursuant to section 166(a) of 

the Federal Act. 

Regulation No.3 Part B, Page 96 

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VII.A3. 	 For any period but an annual period, the applicable maximum allowable increase may 

be exceeded during one such period per year at anyone location. 

VII.A4. 	 Periodic Review 

VII.A4.a. 	 The division shall, on a periodic basis, review the adequacy of this Regulation 

No.3 for preventing significant deterioration of air quality. Within thirty days 

after any information becomes available and there is cause to believe that an 

applicable increment is being violated, the division shall present the cause for 

such belief to the commission. 

VII.A.4.b. 	 Ifthe commission concurs that there is cause to believe that an increment is 

being violated, it shall hold a hearing to determine whether an increment 

violation exists. The hearing shall be held pursuant to the procedures of 

Colorado Revised Statute section 25-7-119. Notice should be given by first 

class mail to permitted sources that can be reasonably identified as emitting f 

the pollutant in violation and affecting the area of violation. 

VII.A.4.c. 	 Should the commission determine that an increment violation exists, the 

division shall review all sources affecting the area ofincrement violation and 

ensure that all such sources are in compliance with all applicable permit 

conditions and state and local regulations. Within thirty days after completing 

such a review, the division shall recommend revisions, if necessary, to the 

commission to correct the violation. Upon receipt of recommended revisions 

from the division, the commission shall as soon as practicable act to revise 

this regulation as it deems necessary. 

VII.A5. 	 Increment Consumption Restriction 

VII.A.S.a. 	 No new major stationary source or major modification shall individually 

consume more than seventy-five percent of an applicable increment. 

VII.A.5.a.(i) 	 Applicants may request a hearing before the commission to request a 

waiver ofthis restriction. The hearing shall be heard in accordance with 

the provisions ofColorado Revised Statute sections 25-7-114 (4)(h), 

25-7-119 (Colorado Air Pollution Prevention and Control Act), and 

Colorado Revised Statute 24-4-1 OS (State Administrative Procedure Act). 

VII.A.5.a.(i)(A) 	 The commission shall not set a hearing date for a waiver request 

until submittal ofcomments, or evidence ofan opportunity for 

submittal of comments by all appropriate regional planning 

agencies and councils of government organizations, affected 

municipalities and other affected political subdivisions has 

occurred. 

VII.A.5.a.(i)(B) 	 Ambient Air Limits. No concentrations of a pollutant shall exceed 

a national ambient air quality standard or a state ambient air 

standard where no national ambient air quality standard has been 

established. 

Regulation No.3 	 Part B, Page 97 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 

Page 98 

VIII. EXCLUSIONS FROM INCREMENT CONSUMPTION 


VIllA. The following concentrations are excluded in determining compliance with a 

maximum allowable increase: 

VIllA. I. Concentrations attributable to the increase in emissions from stationary sources that 

have converted from the use ofpetroleum products, natural gas, or both by an order in 

effect under sections 2(a) and (b) ofthe federal "Energy Supply and Envirorunental 

Coordination Act of 1974" (or any superseding legislation) over the emissions from 

such sources before the effective date ofsuch an.Qrder, but not more· than five years 

after the effective date ofsuch an order. 

VIII.A.2. Concentrations attributable to the increase in emissions from sources that have 

converted from using natural gas by reason ofa natural gas curtailment plan in effect 

pursuant to the Federal "Power Act" over the emissions from such sources before the 

effective date ofsuch plan, but not more than five years after the effective date ofthe 

plan. 

VIIlA.3. Concentrations ofparticulate matter attributable to an increase in emissions from a 

temporary source, modification, or activity. 

VIIIA.4. Reserved 

VIII.A.S. Concentrations attributable to the temporary increase in emissions ofsulfur dioxide, 

or particulate matter, or nitrogen oxides from stationary sources that are affected by 

revisions ofthe Colorado State hnplementation Plan that are approved by the 

Administrator ofthe U.S. EPA and that provide: 

VIII.A.S.a. The time period ofsuch temporary increase in emissions is not renewable and 

may not exceed two years in duration, unless a longer time is approved by the 

division and the U.S. EPA; 

VIII.A.S.b. Such temporary increase in emissions shall not impact a Class I area or an . 

area where an applicable increment is known to be violated or cause or 

contribute to the violation ofa national ambient air quality standard; and 

VIII.A.S.c. Emission limitations shall be in effect at the end of the time period specified 

in the plan revision that will ensure that the emissions levels from stationary 

sources affected by the plan revision will not exceed those levels occurring 

from such sources before the plan revision was approved by the U.S. EPA. 

IX. 	 INNOVATNE CONTROL TECHNOLOGY 

IX.A. 	 An owner or operator of a proposed major stationary source or major modification 

otherwise subject to the requirements ofPart B, section N.D.3., ofthis Regulation 

No.3 may request the division to grant a waiver from the Best Available Control 

Technology requirements and to approve a system ofinnovative control technology, 

in order to encourage the use of such technology. 

Regulation No.3 	 Part B, Page 98 

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IX.B. The division or the commission may, with the consent ofthe governor( s) ofother 

affected states, grant a waiver from the Best Available Control Technology 

requirements ofPart B, section IV.D.3.a.(i), of this regulation necessary for the 

employment of innovative control technology and determine that the source or 

modification may employ such system if: 

IX.B.I. The proposed control system would not cause or contribute to an unreasonable risk to 

public health, welfare, or safety in its operation or function; 

IX.B.2. The owner or operator agrees to achieve a level efcontinuous emissions reduction 

greater than or equivalent to that that would have been required under section 

IV.D.3.a.(i), by a date specified by the division. Such date shall not be later than four 

years from the time ofstartup or seven years from permit issuance; 

IX.B.3. The source or modification would meet the requirements ofsections IV.D.3.a.(i), and 

IV.D.3.a.(ii), based on the emissions rate that the stationary source employing the 

system of innovative control technology would be required to meet on the date 

specified by the division; 

IX.B.4. The source or modification would not, before the date specified by the division under 

section IX.B.2., above; 

IX.B.4.a. 	 Cause or contribute to any violation ofan applicable national ambient air 

quality standard; or 

IX.B.4.a.(i) 	 Impact any area where an applicable increment is known to be violated; or 

IX.B.S. 	 All other applicable requirements including those for public participation have been 

met. 

IX.B.6. 	 The provisions ofsection V., ofthis regulation (relating to Class I areas) have been 

satisfied with respect to all periods during the life of the source or modification. 

IX.C. 	 The division shall withdraw any approval to employ a system ofinnovative control 

technology made under this section, if: 

IX.C.l. 	 The proposed system fails by the specified date to achieve the required continuous 

emissions reduction rate; or 

IX.C.2. 	 The proposed system fails before the specified date so as to contribute to an 

unreasonable risk to public health, welfare, or safety; or 

IX.C.3. 	 The division decides at any time that the proposed system is unlikely to achieve the 

required level ofcontrol or to protect the public health, welfare, or safety. 

IX.D. 	 If a source or modification fails to meet the required level of continuous emissions 

reduction within the specified time period, or ifthe approval is withdrawn in 

accordance with section IX.C., above, the division may allow the source or 

modification up to an additional three years to meet the requirement for the 

Regulation No.3 	 Part B, Page 99 

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application of best available control technology through use ofa demonstrated system 

of control. 

x FEDERAL CLASS I AREAS 

XA. 	 Within twenty days ofreceipt of a permit application for a new major stationary 

source or major modification that may affect visibility or air quality related values in 

any Federal Class I area, the division shall transmit a copy of the application to all 

affected Federal Land Managers and consult with them as to its completeness in its 

analysis and monitoring (if required) of air quality related values. Ifthe division 

receives advance notification of a permit application of a source that may affect 

visibility or air quality related values, it will notify all affected Federal Land 

Managers within thirty days ofsuch notification. The division will consider any 

analysis performed by a Federal Land Manager that indicates there will be an adverse 

impact on visibility or air quality related values if such analysis is received within 

thirty days after the Federal Land Manager receives a copy ofthe complete 

application. Ifthe division disagrees with the Federal Land Manager, any notices for 

public comment or of a public hearing on the application will explain the 

disagreement or state where the explanation can be obtained. 

X.B. 	 In addition to the general impact analysis required by Part B, section IV.D.3.a.(vi), 

any source that will have or is likely to have an impact on any designated Class I area 

may be required to conduct monitoring to establish the condition of and impact on air 

quality related values in such Class I area(s) both prior to completing an application 

for a permit to construct and during the construction and operation ofsuch source. 

XB.l. 	 Ifmonitoring is required, the source shall conduct a private monitoring program. 

However, ifmonitoring is being conducted by any other existing source or 

government agency, the new source may enter into a joint monitoring program with 

that source or agency. All monitoring programs must be approved in advance by the 

division. 

X.B.2. 	 Pre-application monitoring may include the monitoring of not more than three air 

quality related values or sensitive receptors ofair quality related values specified by 

the division after consultation with the Federal Land Manager. The air quality related 

values or sensitive receptor(s) selected must be important to the affected Class I area, 

and there must be cause to believe that monitoring ofthe air quality related values or 

sensitive receptors will provide a basis for evaluating effects to the relevant air 

quality related values. 

X.B.3. 	 Monitoring during construction and operation may only be required for the sensitive 

receptors specified for pre-application monitoring, unless new information becomes 

available that demonstrates a significant economic or technological advantage of 

monitoring a different sensitive receptor, and it is acceptable to the source owner or 

operator. 

X.B.4. 	 Monitoring of air quality related values or sensitive receptors of air quality related 

values may only be required if: 

..~ 

Regulation No.3 	 Part B, Page 100 

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X.B.4.a. 	 Monitoring methods are reasonably available and research and development 

ofmonitoring methods are unnecessary; 

XB.4.b. 	 The major effect on the air quality related values or sensitive receptor would 

reasonably be predicted to be a result of the applicant's individual emissions 

or ofthe applicant's emissions in combination with any person's emissions 

with whom the applicant may be required to conduct joint monitoring; and 

X.B.4.c. 	 It is economically reasonable for the source to conduct such monitoring. 

XC. 	 Sources Impacting Federal Class I Area - Additional Requirements. Federal Land 

Managers may present to the division, after its preliminary analysis required under 

section IV.B., ofthis Regulation No.3, Part B, a demonstration that the emissions 

from the proposed source or modification would have an adverse impact on the air 

quality related values (including visibility) of any federal mandatory Class I lands, 

notwithstanding that the change in air quality reSUlting from emissions from such 

source or modification would not cause or contribute to concentrations that would 

exceed the maximum allowable increases for a Class I area. Ifthe division concurs 

with such demonstration, or in the event the Federal Land Manager fails to perform 

an adverse impact analysis and the division determines that there is an adverse impact 

on visibility. or the division determines that a demonstration ofno adverse impact is 

in error, the division shall not issue the permit. 

XD. 	 Class I Variances. The owner or operator of a proposed major stationary source or 

major modification may demonstrate to the satisfaction ofthe Federal Land Manager 

that the emissions from such source or modification would not have an adverse 

impact on the air quality related values (including visibility) ofClass I lands under the 

Federal Land Manager's jurisdiction, notwithstanding that the change in air quality 

resulting from emissions from such source or modification would cause or contribute 

to concentrations that would exceed the maximum allowable increases for a Class I 

area. Ifthe Federal Land Manager concurs with such demonstration and so certifies 

to the division, the division or the commission may, provided that applicable 

requirements are otherwise met, issue the permit with such emission limitations as 

may be necessary to assure that emissions ofsulfur dioxide, and PMlO• and nitrogen 

oxides would not exceed the following maximum allowable increases over the minor 

source baseline concentration for such pollutants. 

Maximum allowable increase 

Particulate matter 

PMlO• Annual arithmetic mean 17 J.lg/m1 

PMIO, Twenty-four hour maximum 30 J.lg/m1 

Regulation No.3 	 Part B, Page 101 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001·5 

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Sulfur dioxide 

Annual arithmetic mean 20 J.lg/m3 

Twenty-four hour maximum 91 J.lg/m3 

Three hour maximum 325 J.l.g/m3 

Nitrogen dioxide 

Annual arithmetic mean 25 J.lg/m3 

X.E. 	 Sulfur Dioxide Variance by Governor 

X.E.1. 	 The owner or operator ofa proposed major stationary source or major modification 

that cannot be approved under section X.D., above, may demonstrate to the governor 

that the source or modification cannot be constructed by reason of any maximum 

allowable increase for sulfur dioxide for periods oftwenty-four hours or less, 

applicable to any Class I area and, in the case ofthe federal mandatory Class I areas, 

that a variance under this section would not have an adverse affect on the air quality 

related values ofthe area (including visibility). 

X.E.2. 	 The governor, after consideration ofthe Federal Land Manager's recommendation (if 

any) and subject to his concurrence, may grant, after notice and an opportunity for a 

public hearing, a variance from such maximum allowable increase. 

X.E.3. 	 Ifsuch variance is granted, the division may issue a permit to such source or 

modification in accordance with section X.G., below, provided that the applicable 

requirements ofRegulation No.3 are otherwise met. 

X.F. 	 Variance by the Governor with the President's Concurrence 

X.F.1. 	 The recommendations ofthe governor and the Federal Land Manager shall be 

transferred to the president in any case where the governor recommends a variance 

with which the Federal Land Manager does not concur. 

X.F.2. 	 Ifthe president approves the variance, the division may issue a pennit in accordance 

with section X.G., below, provided that the applicable requirements ofRegulation 

No.3 are otherwise met. 

X.G. 	 Emission Limitations for Presidential and Gubernatorial Variance. In the case ofa 

permit to be issued under sections X.E., and X.F., the source or modification shall 

comply with emission limitations as may be necessary to assure that emissions of 

sulfur dioxide from the source or modification would not (during any day on that the 

otherwise applicable maximum allowable increases are exceeded) cause or contribute 

to concentrations that would exceed the following maximum allowable increases over 

the baseline concentration assure that such emissions would not cause or contribute to 

Regulation No. 3 	 Part B, Page 102 

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concentrations that exceed the otherwise applicable maximwn allowable increases for I 

periods ofexposure oftwenty-four hours or less for more than eighteen days, not f 

necessarily consecutive, during any annual period: l 

Maximwn Allowable Increase (flglm3

) 	 ~ 

l 

Period ofExposure Terrain Areas 

Low High I

24-hour maximum 36 62 

f 3-hour maximum 130 221 

XI. 	 VISffiILITY I 

XI.A. 	 Purpose l 

t 

This section assures reasonable progress towards the national goal ofpreventing 

future, and remedying existing, visibility impairment in Class I areas, where such I

I 

impairment results from man-made air pollution. 

XI.B. 	 Applicability 

This section applies to all Class I areas and to sources in Colorado the emissions from 

which may reasonably be anticipated to cause or contribute to any impairment of I

visibility in any such area (even ifthe area is in another state). 

XI.C. 	 Definitions I

For purposes ofthis section XI.: I 

XI.C.l. Adverse impact on visibility means for the purpose ofsection XI.E., visibility 


impairment that interferes with the management, protection, preservation, or 


enjoyment ofthe visitor's visual experience ofthe Class I area. Any determination 


shaH be made on a case-by-case basis taking into account the geographic extent, 
 I, intensity, duration, frequency and time of visibility impairments, and how these 

factors correlate with times ofvisitor use ofthe Class I area, and the frequency and 

timing ofnatural conditions that reduce visibility. t i 

XI.C.2. 	 Best Available Retrofit Technology means an emission limitation achievable through 

the application ofthe best system ofcontinuous emission reduction for each pollutant t 

t that is emitted by an existing stationary facility. The emission limitation shaH be 

established on a case-by-case basis taking into consideration the technology available, 

the costs of compliance, the energy and non-air quality environmental impacts of 

compliance, any pollution control equipment in use or in existence at the source, the 

remaining useful life ofthe source, and the degree ofimprovement in visibility that 

may reasonably be anticipated to result from the use ofsuch technology. 

Regulation No.3 	 Part B, Page 103 

CODE OF COLORADO REGULATIONS 	 5 CCR 1001-5 
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XI.C.3. Existing stationary facility means any of the stationary sources of air pollutants listed 

in section I.B.59., definition of major stationary source, section LB.59.e.(i), in Part A 

ofthis Regulation, including any reconstructed source, that was not in operation prior 

to August 7, 1962, and had commenced construction on or before August 7, 1977, 

and has the potential to emit two hundred and fifty tons per year or more of any air 

pollutant. In determining potential to emit, fugitive emissions, to the extent 

quantifiable shall be counted. 

XI.e.4. Long-term strategy means a ten to fifteen year plan for making reasonable progress 

toward the national goal specified in XI.A. 

XI.C.5. Natural conditions includes naturally occurring phenomena that reduce visibility as 

measured in terms ofvisual range, contrast, or coloration. 

XI.C.6. Reasonably attributable means attributable by visual observation or any other 

technique the state deems appropriate. 

XI.C.7. Significant impairment means, for purposes ofsection XI.D.2.c., visibility 

impairment, that interferes with the management, protection, preservation or 

enjoyment ofthe visitor's visual experience ofthe Class I area. 

XI.e.8. Visibility impairment means any humanly perceptible change in visibility (visual 

range, contrast, coloration) that would have existed under natural conditions. 

XI.e.9. Class I area means an area listed in section V.A., Part B, ofthis regulation and any 

area that may be redesignated to Class I in the future. 

XI.D. Existing Impairment 

XI.D.l. The Federal Land Manager or the division may, at any time, certify to the division 

director that visibility impairment exists in any Class I area. The division may also 

certify that visibility impairment exists in any Class I area without the concurrence of 

the Federal Land Manager. 

XID.2. Each existing stationary facility located in Colorado to which the cause ofor 

contribution to visibility impairment in any Class I area is reasonably attributable, 

shall apply for and obtain from the division a permit that requires the installation and 

operation ofBest Available Retrofit Technology. The facility shall install and 

operate Best Available Retrofit Technology as expeditiously as practicable but in no 

case later than five years after permit issuance. 

XI.D.2.a. 	 For fossil-fuel fired generating plants having a total generating capacity in 

excess of 750 megawatts, Best Available Retrofit Technology shall be 

determined pursuant to "Guidelines for Determining Best Available Retrofit 

Technology for Coal-fired Power Plants and Other Existing Stationary 

Facilities" (U.S. EPA Publication No. 450/3-80-009b, 1980), and state ofthe 

art information available at the time ofBest Available Retrofit Technology 

analysis. Pursuant to Colorado Revised Statute section 24-4-103 (12.5), the 

document referenced in this section is available for public inspection during 

Regulation No.3 	 Part B, Page 104 

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nonnal working hours, or copies are available for cost, from the technical 

secretary ofthe commission, 4300 Cherry Creek Drive South, Denver, 

Colorado 80246-1530. This Regulation No.3 does not include later 

amendments to or editions of the referenced documents. 

XI.D.2.b. 	 Should technological or economic limitations make the application ofBest 

Available Retrofit Technology as previously defined infeasible, the state may 

instead prescribe a design, equipment, work practice, or other operational 

standard, or combination thereof, as representing Best Available Retrofit 

Technology. Where a facility is subject to section XI.D.2.a.;'due to 

technological limitations. the facility shall install and operate Best Available 

Retrofit Technology as previously defined when new technology for control 

ofthe pollutant becomes reasonably available provided: 1) the pollutant is 

emitted by the existing facility; 2) controls representing Best Available 

Retrofit Technology for the pollutant have not previously been required under 

this section; and 3) the impainnent ofvisibility in any Class I area is 

reasonably attributable to the emissions ofthat pollutant. 

XI.D.2.c. 	 Any existing stationary facility required to install and operate Best Available 

Retrofit Technology under this section may apply to the division and the U.S. 

EPA Administrator for an exemption. 

XI.D.2.c.(i) 	 An application under this section must include all available documentation 

relevant to the impact of the source's emissions on visibility in any Class I 

area and a demonstration by the existing stationary facility that it does not 

or will not by itself or in combination with other sources, emit any air 

pollutant that may be reasonably anticipated to cause or contribute to a 

significant impainnent of visibility in any Class I area. 

XI.D.2.c.(ii) 	 Any fossil fuel fired power plant with a total generating capacity of750 

megawatts or more may receive an exemption from Best Available 

Retrofit Technology only ifthe owner or operator ofsuch power plant 

demonstrates to the satisfaction ofthe division that such power plant is 

located at such a distance from all Class I areas that such power plant does 

not or will not by itselfor in combination with other sources emit any air 

pollutant that may reasonably be anticipated to cause or contribute to 

significant impainnent of visibility in any such Class I area. 

XI.D.2.c.(iii) 	 The existing stationary facility must give prior written notice to all 

affected Federal Land Managers of any application for exemption. 

XID.2.c.(iv) 	 The Federal Land Manager may provide an initial recommendation or 

comment on the disposition ofsuch application. Such recommendation, 

where provided, must be part of the exemption application. This 

recommendation is not to be construed as the concurrence required under 

section XI.D.2.c.(vi). 

XI.D.2.c.(v) 	 After notice and opportunity for public hearing, before the commission, 

the division may grant or deny the exemption. 

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X1.D.2.c.(vi) 	 An exemption granted by the division under this section wilJ be effective 

only upon concurrence by all affected Federal Land Managers. 

XI.D.2.c.(vii) Any detennination shall be made on a case-by-case basis taking into 

account the geographic extent, intensity, duration, frequency and time of 

the visibility impairment, and how these factors correlate with time of 

visitor use of the Class I area, and the frequency and timing ofnatural 

conditions that reduce visibility. 

X1.D.2.d. 	 The division shall process any application for a permit required by section 

XI.D.2., above, or any application for exemption under section Xl.D.2.b., of 

this section according to the time constraints stated in Part B, section IV.B., of 

this regulation. All applications for permits or exemptions will be subject to 

public notice and public hearing requirements applicable to sources subject to 

the provisions ofPart B, section IV.D.3. Processing fees will be charged to 

the applicant to recover actual costs incurred by the division as stated in 

section VI., Part A, ofRegulation No.3. 

X1.E. 	 New Source Review 

Applicants for new major stationary sources and major modifications shall 

demonstrate that the proposed source will not have an adverse impact on visibility in 

a Class I area as required by Part B, sections IV.D.2.a.(vi), IV.D.3.a.(vi), and X., of 

this regulation. 

X1.F. 	 Long-tenn Strategy 

XI.F.1. 	 The commission shall review and revise, if appropriate, the long-term strategy every 

three years. 

X1.F.l.a. 	 During the long-term strategy development and review process, the 


commission shall consult with the Federal Land Managers. 


XI.F.l.b. 	 A public hearing shall be held upon request of any interested person. The 

state shall provide written notification to each affected Federal Land Manager 

and other affected states at least sixty days prior to holding any public hearing. 

XI.F.l.c. 	 The division shall prepare a report for the coinmission on any progress made 

toward the national visibility goal since the last long-term strategy revisions. 

The report will be made available on September 1, at least every third year 

following the submittal ofthe previous report. The report shall include an 

assessment of: 

XI.F.l.c.(i) 	 The progress achieved in remedying existing impairment ofvisibility in 

any Class I area; 

XI.F.1.c.(ii) 	 The ability of the long-tenn strategy to prevent future impainnent of 

visibility in any Class I area; 

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All Rights Reserved 

XI.F.l.c.(iii) 	 Any change in visibility since the last such report, or in the case ofthe first 

report, since plan approval, including an assessment of existing 

conditions; 

XIF.I.c.(iv) 	 Additional measures, including the need for state implementation plan 

revisions, that may be necessary to assure reasonable progress toward the 

national visibility goal; 

XIF.1.c.(v) 	 The progress achieved in implementing Best Available Retrofit 

Technology and meeting other schedlll.es set forth in the-Iong-tenn 

strategy; 

XIF.1.c.(vi) 	 The impact of any exemption granted under section XID.2.c.; and, 

XLF.l.c.(vii) 	 The need for Best Available Retrofit Technology to remedy existing 

impainnent in an integral vista declared since plan approval. 

XI.G. Public Land Emission Inventories 

XIG.l. Federal Public Lands 

XI.G.I.a. 	 For the purposes ofthis section XI.G., federal land management agency 

means a federal agency that owns and manages at least 50,000 acres of federal 

land in Colorado_ 

XI.G.l.b. 	 Federal land management agencies shaH submit to the commission emission 

inventories by December 31, 2001 and no less frequently than every five years 

thereafter. The initial submittal in December 31,2001 may be supplemented 

with additional infonnation toward fulfilling the requirements ofthis section 

XIG. Any supplementary submittal must be to the commission by July 1, 

2002. 

XI.G.l.c. 	 The inventory shall include the sources listed in section XI.G.3.b. ofthis 

regulation and emissions ofcriteria pollutants, including surrogates or 

precursors for such pollutants, from activities in Colorado or other states that 

may affect any mandatory class I federal area in Colorado by reducing 

visibility in such area. 

XI.G.2. Colorado State Public lands 

XI.G.2.a. 	 The division shall submit to the commission emission inventories for all state 

land management agencies including the State Land Board, the Department of 

Agriculture, and the Department of Natural Resources by July 1, 2002 and no 

less frequently than every five years thereafter. 

XIG.2.b. 	 The inventory shall include the sources listed in section XlG.3.b. ofthis 

regulation and emissions ofcriteria pollutants, including surrogates or 

precursors for such pollutants, from activities in Colorado that may affect any 

mandatory class I federal area in Colorado by reducing visibility in such area. 

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XI.G.3. Public Land Emission Inventory Requirements 

XI.G.3.a. The inventory shall include both current emissions and projected future 

emissions, over at least a five-year period. 

XI.G.3.b. The following sources on public lands shall be included in the inventory: 

XI.G.3.b.(i) Stationary source emissions, based on existing air pollution emission 

notices filed with the division; 

XI.G.3.b.(ii) Mobile sources utilizing state lands, excluding state and federal highways; 

XI.G.3.b.(iii) Paved and unpaved roads; 

XI.G.3.b.(iv) Fires on public lands from all sources; and 

XI.G.3.b.(v) Biogenic sources, including emissions from flora and fauna. 

XI.GA. Public Hearings 

Not later than December 31, 2002, and no less frequently than every five years 

thereafter, a public hearing before the commission shall be conducted to approve 

the public land emission inventories. 

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