# 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 ofeach 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 ofthe 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 ofthis 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 ofthe 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 andenvironment ofthe 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 

### ColoradoDeparbnent located in Glendale, Colorado 

### ofPublicHealth http://www.cdphe.state.co.us 

### andEnvironment



### '1 6¥ 

### June 3, 200/?

The Honorable Bill Owens Governor, State ofColorado 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 ContaminantEmission 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 andThe 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 ofstatewide 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 ofa comprehensive review ofthe 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: MotorVehicle 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 ofemissions from the operations due to depressurization ofthe 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 ofemissions. The Conunission provided a phase-in period for the initial collection ofthis infonnation. 

### 7. Regulation Number 11: MotorVehicle 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 of2003 to allow time for the development ofcomputer 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 ofDecember 31, 2003. The proposal adopted by the Commission repealed the implementation ofthe 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. Ifthese actions meet with your approval, two copies ofeach action are required to be submitted to EPA for their review and consideration. Attached is a suggested draft letter that would accompany the submission ofthese 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 ifadditional infonnation is needed, please contact me at 303-692-3478. Sincerely,

Administrator

Attachments: suggested draft transmittal letter to EPA three copies ofadministrative materials for each action preaddressed envelope to EPAThe 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 ofPolicy Mark Komp, Region VIII, EPA

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# STATEOF COLORADO 

# I Bill Oweu. Govcroor Jane E. Norton. EXCl.:lItive Director**~­ :~** **COLORADOAJRQUAUITYCONTROLCO~~ON** I ,**bltp-J/www.~te.co.lIS** 1 1 4300Cherry 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 OFPUBLIC 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 Commissionwill hold a public rulemaking hearing to consider a proposal to reviseRegulation 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 oftheproposal, 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 oflisted APEN exemptions. 

### FEDERAL REQUIREMENTS: The federal act does notrequire the Commission to make any ofthe rule revisions that are the subject ofthis Notice ofPublic Rulemaking Hearing. Although these revisions are not required bythe 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 

### CreekDrive South Denver, CO 

# ECEIVED -92!AM 

# JUL 24 2002

# ~LE.C. 'TIONS/LICENS!NG@PT**~l::TA** pv
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### .. .

### PUBUC COMMENT: The**Co~ssion** 

### encourages 

### all interested personsto providetheirviewseitherorally at 

### thehearing orinwritingpriorto or at thehearing. The Commission especially solicits comments and analyses from persons who will incurdirectly some cost orbenefit from the proposedrevisions. Public testimonywillbe taken as closeto the start 

### ofthehearing as possible and during the hearing as necessary. Written submissionspriorto thehearing arerequested to allow review priorto presentation at thehearing. Written submission shouldbemailedto the Commission Office at least 14dayspriorto thehearing. 

### PARTY STATUS: In orderto obtainparty status at thehearing compliance with several requirements as definedin the Commission's ProceduralRulesisnecessary. An original and 

### three (3) copies ofa written petition for party status must 

### be filed with the Office ofthe Air Quality Control Commission no later than 5:00p.m. August 14,2002. Thepetitionmust: 1)identify the applicant; 2)providethe name, address, and telephone and facsimile numbers ofthe applicants representative; and 3)briefly summarizewhat, ifany, policy, factual, and legal issues the applicant 

### has withtheproposal(s) as ofthe time offiling the application. Copies ofthepetition for party status must also bereceived, by this same date, by the Division 

### staffperson andthe Assistant Attorneys General representing the Division and the Commission identifiedbelow. Individuals may also obtain party status through the submittal ofan initial alternative rule to the proposedrule. The submittal ofan alternativeproposal mustbe accompanied bytwenty (20) copies ofthe initial alternativeproposedrule and all other associated documents bythe date specified forparty status requests. Initial alternative rules must also be filed withtheDivision staffperson and with the Assistant Attorneys General. Air Quality ControlCommission AirPollution Control Division MarlaBiberstine-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 theDivision 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 theright to deny party status to anyone that does not comply with the Commissionsprocedural rules. A copy ofthe Commission's Procedural Rules canbe obtainedby contacting the office ofthe Commission at (303) 692-3476.

### STATUS CONFERENCE: A status conference will 

### be held August 

### 21, 2002, at 

### 1:00pmwithCommissionerDoug Blewitt asprehearing officerto ascertain and discuss the issues involved, and to ensure

### that parties are making all necessary efforts to discuss and resolve such issuespriorto the submission ofprehearing statements. Attendance at this status conference is mandatory for anyone who 

### has requested party status. 

### PREHEARING CONFERENCEIPREHEARING STATEMENS: Attendance at theprehearing conference is also mandatory for all parties to this hearing. A prehearing conference will beheld with CommissionerBlewitt asprehearing officeron September20, at 1:00pminthe Commission Offices at 

### 4300 Cherry CreekDrive**Sou~** 

### Denver. All parties must submit an original and twenty 

### (20) copies ofa prehearing statement to the Commission Officeby 

### 5:00p.m., September 

### 13, 2002. In addition, copies ofthese documents mustbe mailed orhand-deliveredbythat date to all persons who have requested party status. A copy oftheprehearing statement must also be delivered to the Divisionpoint of contact, and the Assistant Attorneys General identified above by 

### 5:00p.m. September 

### 13, 2002. TheDivisionpoint ofcontact forthis rulemaking hearing is Phyllis Woodford. Anyrevisions to theprehearing statement must

### be submitted with an original and twenty 

### (20) copiesto the Administrator ofthe Commission at theprehearing conference. Any exhibit included inthe prehearing statemens will 

### bemailed to individual Commissioners for review priorto the hearing, provided theparty files twenty 

### (20) copies ofsuch exhibit. Rebuttals to theprehearing statement may

### be submittedto the Commission office and all other Parties by 

### 5:00p.m., September25, 

### 2002. STATUTORY AUTHORITY FORTHE COMMISSION'S ACTIONS: Therule-making authority ofthe Commission canbe found in sections 

### 25-7-105, 106, 107, and 

### 109 C.R.S., as amended. Therulemaking 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)on4: ," 

## Revisions to PartA ll.D.1.ee

. Crude oil ereeBdensate loading truck equipment at 

### crude oilproduction 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 capacityof40,000 gallons or less.


### New ll.D.l.eeee. CONDENSATE STORAGETANKS wmIA

### TIlROUGHPUI' OF 30,660 GAlLONS PER 

### YEAR OR LESS. ll.D.4. A pennit application maynot omit infoIDlation needed to determine the applicability of, orto impose any state or federal requirement onthe source. DemiBimis levels 

### eeBtaiBed inNew Seuree Perfemumee Standanls, RegtilatiOB Ne. 7, 

### Pflwen.tien ef Sigaifieant Deterieratioo, Nooaf:tainmentNew Souree Review, 

### Title

# m(ineludiBg NBSHAPS, Title V, and Colende 

### W

..CT erGACT estahJisheEI 

### in 

### statute, regtilatiOB er guidaBee) are Bot 

### eeBSide:reEI Sl:lbjeet te any speeifie federal erstate applieabl8 requifemeat and 

### the exemptienslistedin 

### Paragmph 1eanbe takeD 

### by

### SOlHee9. None of the 

### exemptions listed in SBCTIONll.D.l.par&graph I, 

### above, including emission de minimis levels, shall apply ifbytaking such exemption a source would avoid any specific federal orstate applicable requirement, including, butnot 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 NATIONALEMISSION STANDARDS FORlIAzARoous AIRPOLLUTANTS (NESHAPS), Tm..B 

### V, AND 

### COLORADO MAxIMuM

### ACHIEVABLE CONTROL TEcHNOLOGY MACfOR GENBRALLYAVAILABLE CONTROL TEcHNOLOGY (GACf). (If

### the potential to emit, taking into account full design rate and continuous operation, triggers PREVENTION OF SIGNIFICANTDETERIORAnONPSDORNEW SOURes REvIEw

### NSR

### requirements, the source must submit an AIRPOLLUTANTEMISSION NOTICE APEN 

### and apply for the appropriate permit, ormust apply for apermit to limit the physical or operational capacityofthe 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 ofthis Regulation No.3 THATwhieh are subject solely to the following requirements, orto 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 thatwhish are 

### subject 

### to the general fuel

## buniing, manufacturingprocess, and

### fugitive particulate standards 

### contained

## in Regulation No. 1 

### andPart B 

### ofRegulation No.6. H.D.4.a.(ili) Emission units subject to a REASONABLYA VAn.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 BELOWTIlE

### DE MINlMIS 

### LEVELS CONTAINED IN 

### subjeet t&

### REGULAnONNO.6 AND/OR RegulationNo.8 NBSHAPS 

### 8Bd the de miBimis 

### 18'¥els BI'e

### Bet 9eeeded. 

### II.OA.a.(v) Emission units subject to RegulationNo.2, as 

### set forth 

## in section II.O.l.rr

. ofthis RegulationNo.3, Part A. 

## Revisions to Part C (to conform to changes in PartA) n.E.3.ee

. Crude oil or eeBdeusate loadingtruck 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 ereende.nsate storage tanks with 

### a capacity of40,000 gallons or less.


### New II.E.3.ftff. CONDENSATE STORAGE TANKS WI1H ATIiROUGHPUfOF 30,660 GAllONS PERYEAROR LESS.

## DRAFTSTATEMENT OFBASIS, SPECIFIC STATUTORY AUTHORITYAND PURPOSE

REVISIONSTO REGULATION 

### No.3**OcTOBER~** 

### 2002

THIs STATEMENT OFBASIS, SPEClFJC STAlUTORYAUlHORITYAND PuRPosECOMPIlES Wl11:I nmREQUIREMENTS OF mE COLORADO ADMINISTRATIVE PROCEDUREAcrSECI10NS 

### 24-4-103(4) AND 

### (12.5), C.RS. FORNEWAND REVISED REGULATIONS.
BASIS
REGuLATION

### No.3 SETS FORm mE 

### AIR QuAUTY CONTROL COMMISSION'S PERMITI1NG ANDAIR POLLUfANTEMISSION NOTICE PROGRAMS FOR STATIONARY SOURCES. PuRsUANT TO ITS STATUTORY AunlORITY, mE COMMISSIONMAY EXEMPTCERTAIN STATIONARY SOURCES FROM PERMIT11NG AND 

### APEN REQUIREMENTS WHERE EMISSIONS FROM SUCH SOURCES ARE DEEMED TO BEINSIGNIFICANT. 

### THE COMMISSION IS REVISING mE EXEMPTIONS FOR CONDENSATE AND CRUDE on.TANKS AND CONDENSATE ANDCRUDEon. LOADING EQUIPMENTTO ENSURE mATmEEXEMPTIONSAPPLY ONLY WHERETIm EMISSIONS ARE TRULY INSIGNIFICANT. ADDmONALLY, mECOMMISSION IS REVISING mE PROVISIONS DESIGNED TO ENSURE mAT IN EXEMPTING CERTAIN SOURCES FROM

### APEN REQUIREMENTS, TIlE REGULATION DOES NOTALLOW SOURCES TO AVOID OrnER STATE AND FEDERAL REQUIREMENTS. TInsREVISION CLARIFIES WHEN APPUCATION OF OTIIER REQUIREMENTS PROHIBIT SOURCES FROM CLAIMING EXEMPTIONS.
SPECIFIC STATUTORYAUTHORITY 

### THB SPECIFlC STAlUTORY AUlHORITY FORTIIESE REVISIONS IS SET FORTII INVARIOUS SECI10NS OFTIlE COLOR.AJX)

### AIR POLLunON PREvENTIONAND CONTROL ACT ("ACT''). SEcnON, 

### 25-7-105(1), C.RS., GIVES TIm

### AIR QUAUTY CONTROL COMMISSION AtmlORITYTO PROMULGATE RULES ANDREGULATIONS NECESSARY FORTImPROPER IMPLEMENTATION OF mE ACT, INCLUDING REGULATIONS TO ASSURE ATIAINMENTAND MAINTENANCE OFNATIONAL AMBIENTAIR QUAUTY STANDARDS, EMISSION CONTROL REGULATIONS AND A PREVENTION OFSIGNIFICANTDETERIORATION PROGRAM. SECI10N, 

### 25-7-105(12), C.R.S., PROVIDES SPECIFlC AUlHORITY TO ESTABUSH, EMISSION NOTICE, CONSTRUCI10N PERMITAND OPERATING PERMITPROGRAMS. SOME OFTIm STATUfORY PA.RAMETERSFOR TIlESE PROORAMSARESETFORTII IN SECI10NS

### 25-7-114.1, AND 

### 25-7­ 114.2 OF TIlEACT, INCLUDING mEAUTIIORITY TO EXEMPTCERTAIN SOURCES FROM

### APEN AND PERMITTING REQUIREMENTS. TIIESE SECTIONS INTURN, PROVIDE ADDmONAL STAlUTORYAUTIIORITY FORTIlE CURRENTREVISIONS.

## I. CONDENSATI:TANKSANDTRUCK LOADINGEQUIPMENT
RBvIsIONS TO mE CRUDB on.AND CONDENSATE STORAGB TANK. EXEMPTIONINPART

### A, SEC110NTI.D.l.DDD.ANDCRUDB On.

## AND CONDENSATE TRUCK LOADING BQUIPMENT BXBMP110N INPART

### A, SBCTIONll.D.l.DDD., WERE PROPOSED TO ADDRESS TIlEISSUB OP PLASHING EMISSIONS IN CONDENSATE TANKS. 'DmsBEXEMPTIONS, AND A CORRESPONDING BXBMP110N INPART

### C, SBCTION ll.E.3.DDD., DIDNOTTAKE FLASH EMISSIONS INTO ACCOUNfWHEN nIBBXEMPTION WAS INI11AIL Y ADOPTED BY nIB COMMISSION. 

## nm LARGB QUANTITY OPVOLATILE ORGANIC EMISSIONSTIIAT CAN BB RELEASED DURINGA PLASH BVENTLED TOCHANGES IN nIB BXEMPTIONS TOENSURETIIAT EMISSIONS FROM nmsBSOURCES WD.LBE APPROXIMATELYATORBELOW nIBDEMINIMIS LEVEL. ADDmONAUY, SEPARATEEXEMPTIONS HAVB BEEN BSTABUSHBD FOR CRUDB On.TANKS AND EQUIPMENTANDCONDENSATE TANKSAND EQUIPMENT IN RBCOGNmON OPnIB PACT 1lIAT FLASHING EMISSIONS FROM CRUDE OILANDCONDENSATE ARB SIGNIFlCANlL Y DIFFERENT. 

### II. APEN CATCHALL
CHANGESTO nIB

### APEN CATCHALL IN SECTIONTI.D.4., WERE REWORKED "TO ADD CLARITY. 

## nm PRIOR VERSION WAS UNCLEARAS TO WHEN 01HBRWISBEXEMPTSOURCES WOULD BEREQUIREDTO FILE

### APEN's. 

## nm NEW LANGUAGB CLARIFIBS TInS REQUIREMENT. SPECIFICALLY, TIlESECOND SENTENCEWAS ELIMINATED, A NEW SUBSECTION WAS ADDED TO CLARIFY 11IATSOURCES 11lATMAY BE SUBJECTTOA DE MlNIMISLBVBL IN ANOlHBRPROGRAM (SUCH AS A NEW SOURCEPERFORMANCE STANDARDDEMINIMISLBVEL) BUTDONOTEXCEED 11lATLBVELMAY STILL CLAIM AN APPUCABLB

### APEN EXEMPTION, AND, LANGUAGE WAS ADDEDEXEMPTING SMALL

### VOC SOURCES SUBJECTTO CERTAIN REQUIRMBNTS OF REGULATION NO.7.



### COLORADO AIR QUALITY CONTROL COMMISSION 

### ADOPTED: OcroBER 

### ----,2002

2

## DRAFf 

## ECONOMIC IMPACTANALYSIS f·r AQCCRegulatioD No.3 AIr PODutaDtEmissioD Notices aDd OperatiDgPermits per CAS. 25-7-110.5(4) 

## I. Introduction The

### Airponution Control Division is petitioningthe 

### Air QualityControl Commissionto adopt

### proposed changes to Regulation No.3. Thepurpose ofthese proposedchanges isto provide clarity

## to inconSistent and confusingregulatoryprovisions and to delete inappropriate exemptions. Some ofthese 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 theregulated 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 isproposedpursuant to this section, an initial economic impact analysis shall 

### beconducted in compliance with this subsection (4) oftheproposed rule oralternative proposed rules. Such economic impact analysis shall be 

### inwriting, developed bytheproponent, or the Division 

### in cooperation with theproponent and made available tothepublic at the time anyrequest for hearing on a proposedruleisheardby the commission. A final economic impact analysis shall be 

### in writing 

### and delivered to 

### the technical secretary and to all parties ofrecord five workingdays priorto thepreheating conference. 

### Ifnoprehearingconferenceis scheduled, the economic impact analysis shall 

### be submitted at least ten working daysbeforethe date ofthe rule-making hearing. The proponent ofan alternative proposal will provide, 

### inconjunction with the Division, a final economic impact analysis five working days priorto theprehearing conference. The econqmic impact analyses shall bebasedupon reasonably available data. Exceptwhere data is not reasonably available, or as otherwiseprovided 

### in this section, the failure to provide an economic impact analysis ofanynoticed proposedrule or any alternative proposedrulewill preclude such proposed rule or alternative proposed rule from being consideredbythe Commission. Nothing in this section shall be construed to restrictthe Commission's authority to consider alternative proposals and alternative economic impact analyses thathavenotbeen submitted prior to theprehearing conference for good cause and so long as parties have adequate timeto 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

### byreference applicable federal rules orwhich rule is adopted to implement prescriptive state statutory requirements, where the Commission is allowed no significant policy-making options, orwhich rule will have no regulatory impact on any person, facility, or activity." 

# m. Changes RequiriDg Economic ImpactAnalysis 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 ofAnalysis



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

### consideredreasonably available. The economic impact analysis required by this subsection (4) shall be 

### basedupon 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 ofanyproposed controls for affected business entity or industryto comply with the provisions ofthe proposal; (B) 

### Any direct 

### costs to be incurred bythe general public to comply with the provisions of the proposal; (C) 

### Airpollutionreductions caused bythe proposal; (D) 

### The cost per unit ofair

### pollution reductions caused bythe 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 maybe

### eitherin the 

### fOIm ofabusiness analysis (The regulatory impacts on the general business climate or subsets thereof) oran industry analysis (theregulatory impacts on specific industries), including: (A) The characteristics and cmrent economic conditions ofthe impactedbusiness or industry 

### sector; (B) 

### Theprojected impacts onthe 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 bythe proposal; (B) 

### Quantifies the direct cost to the primary affected business orindustrial sector; and, (C) 

### Incorporates an estimate ofthe economic impact ofthe proposal on the supporting business and industrial sectors associated with the primary affected business orindustry 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 souree with applicable environmental regulations (25-7-110.5 (4)(e), CRS). 

# v. Condensate StorageTanks 

### Theproposed modifications pertaining to crude oil orcondensate 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 AirPollutant EmissionNotice requirements. Similarly, Part C, section 1.E.3., identifies sourees and activities exempt from obtaining an operating permit. The intent ofthese sections isto identify sourees that in all likelihood will always bebelow 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 of40,000 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 criteriapollutants and

### hazardous pollutants due to "flash emissions." In 

### recent information submitted to the

### Division with an application for a constructionpermit suggests emissions from some "exempt" facilities may exceed 100 tons per

## year. Theproposed 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 yearofemissions. These changes will not affect facilities which have major source (Title V) 

### or synthetic minor source**permi~** 

### as evenunder 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 preliminarymeeting between the Division and the Colorado Oil and Gas**Associatio~** 

### there are estimated to be over 200 oil and gas facilities andpossibly as many 3,900 storage tanks 

### that may be affected bythese proposed provisions. Analysis: 

### Thecumulativecost includiDg, butnotlimited to, the total capital, operation, and maiDtenance costs ofanyproposed controls for affected busiDess entity orindustry to comply with the provisions oftheproposaL 

### The economic impact will inc1ude:

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

### orper set ofgrouped tanks;



### • Permitprocessing fees of**$S9.98/hour~** 

### the average permit processing time is estimated to be five hours;

• Annual 

### fees of$17.97 perton ofcriteria pollutant and $119.96 perton 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 criteriapollutant emissions. Direct costs to be incurred bythe general public to comply with theprovisions ofthe proposal: 

### None anticipated. Airpollution reductions caused by theproposal: 

### None can be 

### quantified at this**time~** 

### but the proposal would help the Division to identify the location ofnumerous sources ofair pollution so that this information can be 

### used in future air quality analyses.

### The costperunit of

### airpoDutiOD reductioDS causedbythe proposal: None anticipated 'The costfor the DivisioD to implemeDt theprovisioDs ofthe proposal: Thepermitprocessing and annual fees generated will coverthe anticipated costs to the Division. VI. Crude

## on & CODdeDsate LoadingTruckEquipmeDt at Crude

## on PrOductiOD Sites This modificationpertainingto crude oil and condensate loading truck equipment at 

### crude oil production sites canbe found inRegulation Reg. 3, Part

### A, sectionII.D.l.ee and Part C, sectionII.E.3.ee.

. In general therule lists categories ofsourees that are exempt from 

### AirPollutantEmission Notice requirements. The intentionbeingto list sources that 

### in all likelihood will always bebelow deminimis emissionthresholds, thus removingthe burden onthe regulated communityto estimate emissions for these categories. The Commissionpreviously set the exemption for crude oil and condensate loading equipment at a loading rate of 10,000 gallons 

### perday, averaged over any 3O-dayperiod. 

### Ithas come to the attention ofthe Division that atthese loading rates, VOC emissions could exceed 25 tons 

### peryear. Specifically, at 10,000 gallons perday, the emissions calculation from splash fill condensate truck loading (RVP 13 gasoline) is estimated to be 27.1 tons/yr. Emissions from truck loadingusing a submerged pipe is estimated tobe 11.2 tons/yr. Forcrude oil (RVP 5: APIintherange of34-36), the splash fill emissions are an estimated 8.9 tonslyr-. and 3.7 tons/yr. from a submergedpipe. Based on this information and discussions 

### with the Division"s permit engineers, the exemption for condensate truck loading shouldbe deleted from Parts A and C. Analysis: 'The cumulativecost including, but Dot Hmited 

### to, the total capital, operatioD, aDd maiDteDaDce costs ofaDY proposed cODtrols for affected business eDtity or industry to complywith the provisioDs ofthe proposal The economic impactwill include: 

### • AirPollutant Emission Notice filing fees of$119.96per installation;

• Permitprocessing fees of$59.98Ibour; the average permit processing time is estimated to be five hours;

### • Annual fees of

### $17.97 per

### ton ofcriteriapoDutant

### and 

### $119.96 perton ofHazardous

### Air Pollutant Thus, 

### annual fees for a somceemitting2 tons/yearwould

### total about $361year, a 100­ tonslyear somcewould

### bebilledabout 

### $1801year.

• The Division anticipates that a 

### small number of somces 

### (12­ 20)will

### be affectedbythisproposed action. Direct costs tobe Incurredbythe geueral pubBc to complywith the provisions ofthe proposal: Noneanticipated. 

### Air pollution reductions caused by the proposal: None anticipated, butthe

### proposal wouldhelpthe Divisionidentifythe location of numerous somces ofairpollution so that

### this information can

### be used in fume air quality. The costperunit ofairpollution reductions causedby the proposal:

. None anticipated The cost for the Division to implement the provisions ofthe proposal: The permit processing and annual fees generated 

### will coverthe anticipated coststo the Division.

# AGENDA

# STATEOFCOLORADO

Bill Owens, Govemor Doualas H. Benevento, Actina Executive Director**COLORADOAJRQUAUITYCONTROLCO~ON** btIp:Ilwww.cdpIle,slafe co.lIS 4300 CbenyCreek Drive Soutb OED-OUA-AS Denver, Colorado 80246-1 S30 Phone (303) 692-3100 Fax (303) 691-7702 TDD (303) 691-7700 ColoradoDepartmeDt ofPub.HeaJtII aodEDvlroDmeDt



# Notice ofMeeting and Agenda Air Quality Control Commission 0:t0ter17, 2002

Colorado Department ofPubHc 

### Health & 

### Environment Sabin Room 4300 Cherry CreekDrive South Denver, Colorado 

# 8:00 

# a..m. TheCommission will meet 

### inthe Cafeteria for infonnal conversation priorto the start of the general business meeting. No public comment will 

### be accepted.



### Notes: A specificamountof time isprovided forpresentation anddiscussion on each of theagenda items. This time allotment isapproximate onlyandmaybechangedor modifiedwithoutnoticeat thediscretion of the Commission. At12:30PMthe Commission will providean opportunity for thepublicto express their views andopinions on the Commission'sAnnualReportto thePubllc. Atthis timethe TechnicalSecretaryshallanswer reasonable questions aboutthe administration andenforcement of theprovisions of thestatute. AnnualReports JfIiIl

### beavailable

### atthe start of the Commission meeting. This opportunity is providedin fulfillment of the requirements of25-7-105(4)(a), C.R-S.

# 8:30 

# a.m. 

# <..." CaD to Order: Determination ofa Quorum AgeDda Review: The Commission will review the agenda, noting anychanges or additions to the agenda sincepublication. Approval ofMinutes: Review/Approval ofthe September2002 meeting minutes ofthe 

### Air Quality Control Commission. 1. PubUe CommeDt Thepublic isinvited to comment on any airpollution issue not on the agenda The Commission will not take action on issues discussed underthis agenda item today;**however~** 

### items maybe scheduled for further discussion or action. REQUEST FOR RULEMAKING HEARING 

### 2. RegulatioD Number 

### 8, PartB - Asbestos TheDivision will request that the Commission set a hearing date to considerrevisions to the asbestos program to incorporate statutoryrevisions that were made inthe 2001 regular legislative session in Senate Bill 121 and to make revisions to therule tomakethe requirements morereadily 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 Inventorydeveloped pursuant to the requirements of 99 HB-1351 and Commission Regulation Number**3~** 

### Part**B~** 

### SectionXI.G.**--'"7~** RULE NG HEARING 

### 4.

# = RegulatioD Number 3,Air CODtamiDaDt EmissioD Notices '7

. 

### (120 minutes**presentatio~** 

### 45 minutes discussion) [;J 

### TheDivision will present a proposal torevise theruleregarding the requirements for the crude oil storage tank APEN**exemption~** 

### condensate storage 

### tank APEN exemption, and the provisions oftherule that preclude a source from taking advantage ofanyAPEN exemption. 

# s. RegulatioD Number 11,Vehicle EmissioDs IDspectioD Program (30 minutespresentation, 30minutes discussion) , TheDivision will present a proposal to revise therule to initiate llie payupon registration system in the DenvermetropoJitan area The Divisions' proposal will also address the malfunction indicator light/on-board diagnostics and the vehicle emissionsrepairwaiver 

### limit.

## ~ 6. Platte River Power Authority-VoluDtary EmissioDs Reduction Agreement (35 minutes**presentatio~** 

### 35 minutes discussion) John Fooks ofthe Platte RiverPowerAuthorityand David Ouimette oftheDivision will present to the Commission the VoluntaryEmission Reduction Agreement entered intobythe

2

### PlatteRiverPowerAuthority and the AirPollution Control Division. The agreement makes reductions 

### inthe actual emission rate from the Rawhide generating station ofthepollutants sulfur dioxide 

### and oxides ofnitrogen. TheDivision and Platte RiverPowerAuthoritywill provide responses to several Commission questionsposed at the time oftherequest for hearing. A period ofpublic comment will be 

### provided at the end 

### ofthe presentations made bythe Division and Platte RiverPowerAuthority.

ADJUDICATORY BEARING 

### 7. OnyxEnvironmental Services (80minutes presentation, 45 minutes discussion) The Commission will considerthe appeal ofthe Onyx 

### Environmental Services, Inc. regarding a Compliance Determination and Assessment ofCivil Penaltyissued onDecember 6,2001. The Compliance Determination and Assessment ofCivil Penalty sets forth Conclusions ofLawbythe AirPollution Control Divisionthat Onyx 

### failed to complywith the requirements ofthe Air QualityControl Commission's RegulationNumber 8, Part B 

### in several instances and sets forth a civil penalty of$6,778.75. BRJEFINGS, REpORTSAND COMMISSION DISCUSSIONS 

### 8. Commissioner Informational Items (15 minutes discussion) Commissioners will discuss among themselves activities thattheyhaveparticipated 

### inover thepast month that theybelieve otherCommissioners and/ormembers ofthe public may

### be interested inhearing 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 (10minutes presentation, 10 minutes discussion) • Review ofthe Commission'sNovembermeeting agenda Meeting adjourned.

3----- ---**-.--~**REVISED: 

## STATUS CONFERENCE IS 

## 8121/02 AT 1:00 PMINROOM B1D 8/l0l0l 

### COLORADOAIR QUALITY CONTROL COMMISSION PARTY STATUS LIST FORTHE PUBLIC RULEMAKING HEARING REGARDING PROPOSED REVISIONS TO: REGULATION NUMBER. 3 Air

### Pollution Emission Notice Exemptions OCTOBER 17, 2002 HearingChair: Commissioner Blewitt DMSIONSTAFF: 

### Kinten King 

### 692-3111

NAME REPRESENTED BY/ADDRESS TELEPHONEIFAX Brent A. Tracy 1. ColoradoAssociation of Dennis L. Arlinann (303)861-7000 Commerce and Industry 1700Lincoln Street, Suite 4100 Fax-303 866-0200 Denver, CO 80203 StanDempsey, 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 1776Lincoln. 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 OffieeRepresentatives AirQuality 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( AirPollution ControlDivision Gary Kaufmann (303)

# 866-~ 3 Attorney General's Office FAX: (303) 866-3558 1525 Shennan St., 5thFloor 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 August21, 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 OFPROPOSED REVISIONS TO REGULATION NO.3



### REQUEST FORPARTY STATUS OFTHE COLORADO ASSOCIATION OF COMMERCE AND INDUSTRY

This Request for Party Status is submitted through the undersigned on behalfofthe 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 bedirectly affected bythis rule. CACI asks that it be made a partyto 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 canbe developed. CACI currently believes that this is the only issue ithas 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!!:- dayofAugust, 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 certifythat on this

# ~f August, 2002, a true and correct copyofthe 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) 

### AirPollution 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

## T~y TFYRibiy

# 6<er,/**~** Attorney for the 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 CPA and the COGA are trade associations having as members a large number ofColorado 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 ofthis proceeding, the representatives ofthe 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 ofthis proceeding, the representatives ofthe 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 ofa 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 ofpreviously 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 CPA 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 ofAugust, 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 

# ICERTIFICATE 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, 5th 

### Floor Denver, CO 80203 Tony Trumbly Attorney for the Division Attorney General's Office 1525 Sherman Street, 5th 

### Floor Denver, CO 80203 

# I I 1 

# I i g 

# t t f 

### I 

# I ! r



### -4­ 

# t 

# , t



### •

## COLORADOAIR QUALITY CONTROL COMMISSION AGENDA ITEM CONTROL SHEET'

# t~tIe Revisions 

### to Regulation No.3 deeting date October 11,2002

NON-HEARINGACTIONS



### _ Administrative _Briefing _Policy



### _ Area Designations**",,~Adoption** 

# 4 I11III

-XRequired



### General 

### X TYPES OFACTION REQUESTFOR HEARING 

### _Public Rulemaking

_ Informational**RECO~NDEDACTION** 

### lLApproval



### MOTION



# - Attached



### STATUTORYAUTHORITY 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 of revisions to the regulationis outlinedbelow. 

## ;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 REGULATIONNO.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.; PartA, 

### 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 capacitynumber 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. similarto what happens when abeverage can is opened. Condensate tanks can have flash emissions that range from a few tons per year to over one hundred tons peryear of volatile organic compounds and hazardous air

### pollutants. Condensate (hydrocarbon liquids separated from oil and natural gas) varies byregion in its composition and in the amount ofcondensate produced. As aresult, 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 workwith 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, testingwas not performed at condensate tanks at natural gas gathering stations, compressor stations orprocessing plants. The data demonstrate an inherent variability ofcondensate liquids byregion and that other associated variables may affect emissions. The data also demonstrate that there are potential emissions from all 

### well operations combined inexcess of30,000 tons ofVOCsperyear. 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 raisedbyflash 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 peryear or about 2 barrels per day. Exploration and production operations producing more than 730 barrels ofcondensate per year will berequired to file APENs. 

# I

f 

# I**~** :

..

.­

t; '. 

# , t I.

### ~ .::

<. 

# I

.w," 

### f



# .. J

: 

# . 

# l I (

-:::­

..''.



# ! 

# I I 

### I 

# [ I I 

# C

### The commission must consider 

### ifthe exemption level proposedbythe division and supportedby industry is appropriate, since it is precedent setting. The exemption level of730barrels peryear equates 

# .""', to approximately three to five tons per

### year ofemissions, depending on location. Tanks in thePiceance asin will use an emission factor that results in approximately 3.2 tons peryearper730barrels of 

# U condensateproduced while tanks 

### in the Denver-Julesburg Basin will use an emission factor thatresults in 5.0 tons peryearper 730 barrels produced. Tanks located anywhere else in the state will use

# an emission factor that results in approximately**4~0** 

### tonsperyearper 730 barrels produced. The 730 barrels per year exemption threshold represents anegotiated value and the division supports this level of exemption for condensate storage tanks 

### at Oil and Natural Gas 

### Exploration and Production facilities only, butnot 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 

### alreadybeen flashed. It

### is our understanding that the only unresolved condensate-related issue that must be decided bythe commission at the hearing is whether ornot to extend the 730 barrels per year exemption level to operations downstream ofthe well head. Bothparties will provide testimony. Numerous other issues were addressed bythe 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 couldbereported on a single APEN. Relatively few companies own amajority ofthe exploration and production sites; therefore, the division

.. has 

### agreedto 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 beingbrought into the air

### program due to a change in the exemption level contained in the rule. This does not meetthe statutory criteria for requiring apermit; 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 anew 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 orre:ftac-ing ofa well does not trigger the requirement for apermit. The division will require more information from sources that approach major source thresholds. If

### a tank 

### or group ofmanifolded condensate storage tanks 

### exceeds a throughput of 11,000 barrels per yearin the Denver-Julesburg Basin (17,000 barrels per year in the Piceance Basin and 13,000 barrels per yearin 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 minorpermit. Although the testing may be moderately costly, the divisionbelieves that it is necessary due to the variable nature ofcondensate emissions, and the limited emissions data at hand. Industry 

### does notbelieve 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 commissionto discuss this 

# c;:tterduring

### the hearing.



### '., ,. e division and industry also discussed when a new permit application must be submitted. Whereas PartA ofRegulation No.3, section IT.D.l.11I. addresses this issue, after further disCussion, the division agreed with industrythat 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 andpermit application are**d~e** 

### 30 days afterthe 

# I Report ofFirst Production

### is filed withthe Colorado 

### Oil and 

### Gas Conservation Commissionbutno later 

# ': than 90 days after the onset ofproduction. 

# I

w 

# I t 

# C Thedivision agreed to allow the indus1ry to apply a decline factor to estimateVOC emissions duringthe first year ofoperation ofa new well. The slope oftheplot ofproduction over time determines a decline factor. The average decline factor used

### is 0.6; however, ifsite-specific informationis available, it

### will 

### J be used. 

# I •**~.** 

### Given ourcurrent limited knowledge about the nature and breadth ofthe condensateissue, the division**~** 

# l • intends toreportbackto the commission ontheresults ofits oil andnatural gas einissions inventory t**~** 

### development efforts and mayrecommend a decrease in the 730barrelsperyearreporting thresholds.**~** ! I 

### REGULATION NO.3, PARTS A & 

### C i 

### Condensate Truck LoadingEqnipment-PartA, 

### Section D.D.I.ee. & 

### Part C, Section D.E.3.ee. 

# I t**~** 

### Late in the Regulation No.3 rulemakingprocess of2002, the division identifiedhigh emission levels 

# , associated with the exemption for condensate loadingtruck equipment included 

### inRegulationNo.3, 

## f 

# I I' 

### PartA, section IID.1.ee., and Part C, sectionn.E.3.ee

. This exemption is for sources located at crude oil l 

### production siteswhere the loading rate does not exceed 10,000 gallons ofcrude oil orcondensate per day.

£ f 

### Accordingto calculationsprovidedbydivision 

### staff, emissions from condensate loading at qualifying**~** 

# t

.. ....facilities can

### be substantiall.

### y overthe de minimis APEN level (an estimated 27.1 'tons ofVOCsperyear 

# I l with a splashfill truck and 11.2 tons peryearwith a submergedpipe). Crude oil loadingis estimated to ()emit 8.9 tons peryear ofVOCs using splash fill and 3.7 tons peryear with a submerged fill truck. Given the lateness ofthis issue and the short time period 

### before thehearing to discuss this issue with interested**,~** 

### parties, the division requested that these provisions also be continued to October2002. I[ 

# I In this proposal, the divisionrequests that the exemptions inParts A and C be retained for crude oil l. 

## I loadingtruck equipment, but the exemption for condensate loading truck equipmentbe revised to more**~** 

### accurately reflectthe APEN de minimis level. Therefore, the division supports an APEN exemption for 

# t condensate**truc~** 

### loading at less than 6750barrelsper year for splash fill truck loading and less than 

# I 16308 barrels peryear for submerged orbottom fill truck loading. 

### f 

# I t t REGULATION NO, 3,PARTS A & 

### B PartA, 

### Section D.D.4 • - "APEN Catchall" PartB, Section m.D.S.

- "Permit Catchall" 

## t Section n.D.l. contains numerous exemptions from APENrequirements. Sectionn.D.4. precludes 

# [ certain exemptionsifthey trigger more substantive requirements. The division has found the language**~** 

### inthis section to

### beconfusing and subjectto multiple interpretations, especiallyconsidering

0 

### the provision is intended to 

### be "exceptions to the exemptions". The divisionproposed in January 2002 

# t to clarifythe catchall provision. The commission initiallyrejected the amendment, but, after further 

## r consideration atthe July 2002 Regulation No.3 hearing, agreed to re-notice the "APEN catchall" provisions. Thedivision has worked with the Colorado Association ofCommerce and Industryto 

### i: ,. '0. 

### clarify the intent ofthis provision, and to make corresponding changes to the "permit catchall" inPartB ! I 

# £'0 :fthe regulation. Some ofthe exceptions to the exemptions havebeenremovedthereby allowingmore 

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

### APENs andpermit applications iftheyare subject to Regulation No.7 given the current status ofthe ozone standard in the DenverMetropolitan 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

### inSection**n.D.l.~** 

### and an alternative thatwouldrequire 

### sources subject to a specific standard 

### inRegulationNo. 7 (but not the generalreasonably available control technologyrequirement)

.... to nottake the exemptions. Sources

# must stillmeet therequirements ofRegulationNo.7 even 

### iftheydo 1'··jIlothave to submitAPENs. These sections maybe relocatedwithin eachPart oftheregulationto add '-'furtherclarity. ATIACHMENTS: 

## 1. Statement ofBasis 

### and Specific StatutoryAuthority andPurpose 

### 2. Final Economic

### Impact Analysis 

### 3. Proposed language withrevisions

)IGNATURES: 

## lb- 

# 4-2... .: 

### Date**.~** 

### /O-'-t>L 

# ·

# ~4.--~ :; , 

### Supervisor· Kirsten King

. Date

.'

### IO~ 

### ,{'O "'­

# "(;I~eJL~ ..

....: 

### Program Manager- David e Date 

### .,**~>** 

# '.**~T ~;.** 

# ~ 

# 'f/o

# 41.J:xJl-­ Division Director· Margie Per " Date : 

# I t

## ~ Revisions to PartA Regarding Condensate

lI.D.1.ee

. Crude oil O£ 

### eeBde:ssate TRUCK loading

### tRleIi equipment at 

### crude oil EXPLORATION AND production sites where the loadingrate 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. Crude oil 

### or eondeBSate storage 

### tanks with a capacity of

### 40,000 gallons or 

# I

less. 

# 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. 

### AirPollutant EmissionNotices 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 PollutantEmissionNotice with the 4ivision within

### thirty days after the 

### well oompletioa orreeompletioB report BBd log is REPORT OF FIRST PRODUCTION IS filed with 

### the appropriate state or federal agency BUT NO LATER TIIAN 

### 90 DAYS FOllOWINGTImFIRST DAY OF PRODUCTION. 

### Ifproduetioa vfin BOt oeeur, orproOOetioB '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 BOtreportable. lI.D.l.eeee. 

### ANY CONDENSATE STORAGE TANK WIlliA 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 YEAROR LESS THATARE OWNED AND/OR OPERATED BY nmSAME PERSON, ANDARE LOCATED ATEXPLORATION 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 MUSTBE FJLED ON OR BEFORE MARCH 

### 31. 2003, EXCEPTAS PROVIDED BELOW. II.D.1.eeee.(ii) 

### A SINGLE OWNER OR OPERATOR OF MORE TIIAN 

### 50 EXISTING CONDENSATE STORAGE TANKS FOR WHICH 

### AIR POLLUTANTEMISSION NOTICES HAVB NOT PREVIOUSLY BEEN FJLED SHAllFJLE AT LEAST ONE-1HJRD OF TIm REQUIRED APENsBY JANUARY 

### 31. 2003, ATLEAST TWO-TIlIRDS BY FEBRUARY 

### 28, 2003, AND TImREMAINDER BY MARCH 

### 31, 2003.**~ReviSions** 

## to PartC (to conform with changes in PartA)

### "



### II.E.3.ee

. Crude oil oreenElensate loading truck equipment at 

### entEIe eilEXPLORATION AND 

### production sites

### where the loadingrate does not exceed 10,000 gallons OF CRUDE On. 

### per day averaged ON AN ANNUAL BASIS. CONDENSATE TRUCK LOADING EQUIPMENTAT ! 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** 

### storagetanks with a capacityof40,000 gallons or 

# I less. II.E.3.GGGG. 

# * ANY CONDENSATE STORAGE TANK

## wrmA PRODUCTIONRATE OF

### 730 

# I

BARRELS PER YEAR OR LESS OR CONDENSATE STORAGE TANKS TIIATARE MANIFOLDED 

# I r TOGETHERWI1H A PRODUCTION RATE OF 

### 730 BARRELS PER YEAR OR LESS 1HA TARE 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

PartA 

### n.D.4. REsERVED. 

### A permit BppliCatioD mayBOt omit 

### infermatiOB Heeded to 

### determine the applieability ef, orto impose BBy state or federal requirement OB the sOm'Ce. De minimisleveis COBtaiBed in

### New SomeePerfoflB8flee 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 inParagraph 

### 1 eBB

### lle takenlly sources. Noae ofthe exemptioas listed 

### iaparagmph I, 

### allove, inellldiBg emiSSiOB de minimis levels, Mall apply iflly taking sush eKemptiOB a SOlH'eO 

### would 

### avoid Byspeeifie 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), BOmttaiBmeatNew SeureeRS'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. (If

### the potential to emit; taking

### into aecOllBt full desigo rate aad 

### oOBtiB'UOllS opemtiOB, triggem PSD orNSRrequirements, the souree tmlSt 

### submit an Air

### PoUutBBt EmissiOB Notice and apply for the 

### appropriate permit;ornmst 

### apply for apermit to limit the physical or operatioBal capacity ofthe 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, orto 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 

### RegulatiOftNo. 8NBSHAPS 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, PartA.

### II.D.4.a.(vi)NotwithstaodiBg the provisioos efthis seetioa smallfelBete feSeJVeir eeld sehrellt degrees81'S 

### thatmeetthe 

### feD&'WiBg reqWremellts, may

### stiD 

### take the eHemptioa: II.D.4.a.(vi)(A)The \lSed sewellt shall drain 

### inte a sepamte selvent 

### sink thatis oot aeeessible fer 

### seakiBg werkleads, II.D.4.a.("li)(B)The sewent\lSed shall have a heilingpeint greater the 

### 248 degrees Fahrenheit 

### (120 degrees Celsil:lS), II.D.4.a.(vi)(C)The emissieBS Bemthe small remetefeServeir degreaser shall oot eH6eed eneteB 

### efT lelatile erganie eempOllBds per

### year,**IID.4.a.6~)(D)The** 

### temperature efthe solvent es \lSed shallhe 

### 180 degrees FabreBheit 

### (82 degrees Celsi\lS) helOT1

.. the sowenthoiliBg poiDt, BBd n.D.4.a.("li)(B)The solventused shall not he subjeet te 

### eystate OF 

### federal Maximum Aemevable Control Teohnolegy or Generally A

....ailable CoBtfol Teelmelogy standards. 

### Air Pollutam EmissionNetiee 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 POLLUTANTEMISSION NOTICES MUSTBEFILED FOR ALL EMISSION UNITS SPECIFICALLY IDENTIFIED IN 1lIEAPPLICABll...ITY SECTION OF ANY SUBPARTOF 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 POLLUTANTEMISSIONNOTICES NEED NOTBE FILED FOR WET SCREENING OPERATIONS SUBJECTTO SUBPART

### 000 OF 1lIE NEW SOURCE PERFORMANCE STANDARDS IF 1lIEEXEMPTION IN SECTION II.D.I.cccc. IS APPLICABLE.
STATIONARY SOURCES HAVING EMISSION UNITS THATARE EXEMPTFROM TIm REQUIREMENT TOFILE AN 

### AIR POLLUTANTEMISSIONNOTICEMUSTNEVERTImLESS COMPLY

### wrm ALL REQUIREMENTS TIIA TARE 01llERWISE APPUCABLESPECIFICALLY TO mEEXEMPTED EMISSION UNITS, INCLUDING, BUTNOTLIMITED TO: 

### TITLEV, PREvENTION OF SIGNIFICANT DETERIORATION, NONATIAINMENTNEW SOURCEREvmw, OPACi1Y LIMITATIONS, ODOR LIMITATIONS, PARTICULATE MATTER LIMITATIONS AND VOLATILE ORGANIC COMPOUNDS CONTROLS. 

### AN APPLICANT MAY NOT OMITANY INFORMATION REGARDING 

### APEN EXEMPTEMISSION UNITS IN ANY PERMIT APPUCA TION IF SUCH INFORMATION ISNEEDED TO DETERMINE THE APPLICABILITY OF, OR TO IMPOSE ANY FEDERAL REQUIREMENT ON AN EMISSION UNIT OR A SOURCE, INCLUDING, BUTNOTLIMITED TO, 

### TITLE V(PART

### C OFTHIS REGULATIONNo.3), PREVENTION OF SIGNIFICANTDETERlORA TION (SECTION

### N.D.3., PARTB OFTHIS REGULATION No.3), OR NONATIAINMENTNEW SOURCEREvIEW(SECTION IV.D.2.A., PARTB OF THIS REGULATIONNo. 3).

### The following sources are exempt from the requirement to file AirPollutant Emission Notices because bythemselves, 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 Myspeeifie federal or state applieable reEllliFement, 

### iBeludiBg; 1mtBot limited to, New 

### Source Performanee StaBdards, RegalatioB No.7, PwleBtiou ofSignifieant Deterioratiou (sestiouN.D')., 

### Port B), BOBattainment New 

### Seuree**~;i8ll.r** 

### reqB:irements (soetiOB N.D.l.a., efPortB), 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. (If

### the 

### potential to emit; 

### taking iBto 8GeouBt fuU design rate and sontimlous operatiOB, triggers PwlentiOU ofSignifieant 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 solelyto the following regulations, or to a eombinatiou ofthe regulatious, may take the e1femptiOflS. Sourees that are subj est

### 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 workpraetiee 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 TIlEEXEMPTIONS LISTED BELOW IN SECTIONS 

### m.D.I.

- m.D.4., SHALL APPLY IF A SOURCE IS SUBJECfTO PART

### A OFREGULATION NO.6 (NEW SOURCE PERFORMANCE STANDARDS) AND REGULATION NO.8 

### (HAzARDous Am POLLUTANTS), PARTS

### A,C,D,AND

### E. PERMrrBXEMPTIONS TAKBNUNDBR TIllS SBCTION 00NOTAFFECTTHE APPUCABll..ITY OFTHE REGULATIONS TO THE SOURCE. 

### AN APPUCANTMAYNOT OMITANYINFORMATION REGARDING

### APEN OR PBRMITBXEloAYf

. EMISSION

## UNITS INANY PERMITAPPUCATION IF SUCH INFORMATION ISNBBDEDTO

DB1BRMINB THEAPPUCABIUTY OF

### TrrLB 

### V (PART C OF TIllS REGULATION No.3), PREvENTION OF SIGNIFICANTDETERIORATION (SECTION

### N .D.3., PARTB OF TIllS REGULATION No.3), ORNONATTAINMBNTNEW SOURCE REVIEW (SECTION 

### IV.D.2.A., PARTB OFTInSREGULATION No. 3). 

## Alternative Proposal: Includes Reg. 7 PartA (this would completely replace existing language in Section D.D.4., except

. for thelanguage regarding smaU degreasers, and would be stricken as in the first proposal,butwould notbe moved to section D.D.I.)

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

### AIR POlLUTANTEMISSIONS NOTICES MUSTBB FILED FORALL EMISSION UNITS'SPECIFICAILY IDENTIFIED IN THEAPPUCABILITY SECTION OF ANY SUBPARTOFPARTA OF REGULATION NO.6 (NEW SOURCEPERFORMANCE STANDARDS) AND REGULATION NO.8 

### (HAzARDous 

### AIR POLLUTANTS), PARTS A,C,D, AND E; HOWEVER, 

### AIR POLLUTANTEMISSIONNOTICES NEED NOTBEFILED FORWET SCREENING OPERATIONS SUBJECTTO SUBPART

### 000 OF THE NEW SOURCEPERFORMANCE STANDARDS IF THE EXEMPTION IN SECTION II.D.l.cccc. IS APPUCABLE. 

### AIR POLLUTANTEMISSIONSNOTICES MUSTALSO BE FILED FOR ALL EMISSION UNITS SUBJECTTO A SPECIFIC REASONABLY AVAILABLE CONTROLTECHNOLOGY REQUIREMENT OFREGULATION No. 

### 7 EXCEPT FOR SMALLREMOTERESERVOIR DEGREASERS THATMEETTIIE REQUIREMENTS OFSECTIONTI.D.4.c. BELOW.
II.D.4.A. STATIONARY SOURCES HAVING EMISSION UNITS THATARE EXEMPT FROM THE REQUIREMENT TO FILE AN

### AIR POLLUTANTEMISSIONNOTICE MUST NEVERTHELESS COMPLY WIllI ALLREQUIREMENTS THATARE OTHERWISE APPUCABLE SPECIFICALLYTO THE EXEMPTED BMISSION UNITS, INCLUDING, BUTNOTUMITEDTO: 

### TnLE V, PREYBNTION OF SIGNIFICANTDETBRIORA TION, NONATTAINMBNTNEW SOURCE REVIEW, OPACITY LIMITATIONS, ODOR UMITATIONS, PARTICULATE MATI'ER LIMITATIONS AND VOLATILE ORGANIC COMPOUNDS CONTROLS.

II.D.4.B. 

### AN APPLICANTMAY NOT OMITANY INFORMATION REGARDING 

### APEN EXEMPTEMISSION UNITS INANY PERMIT APPLICATION IF SUCH INFORMATION IS NEEDEDTO DETERMINE THEAPPLICABILITY OF, OR TO IMPOSE ANY FEDERALREQUIREMENT ON AN EMISSION UNIT OR A SOURCE, INCLUDING, BUTNOTLIMITED TO, TITLE

### V, PREYBNTION OF SIGNIFICANTDETERIORATION, ORNONATTAINMENTNEW SOURCE REVIEW.

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

### &Small remotereservoir 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 oneton 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 boilingpoint, and II.D.4.c.(v)The solvent used shall notbe subject to any state orfederal 

### Maximum Achievable Control Technology orGenerally Available Control Technology 

### standardS. PartB (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., SHALLAPPLY IFA SOURCEWOULD OTIIERWISE BE SUBJECTTO, SPECIFIC RBASONABLYAVAILABLE CONTROL TECHNOLOGY REQUIREMENTS OFREGULATION No. 7, PART A OF REGULA110NNO.6 (NEW SOURCEPERFoRMANCE STANDARDS) ANDREGULA110NNO.8 (HAzARDous 

### AIR POLLUTANTS), PARTS A,C,D, AND E. PERMIT EXEMPTIONS TAKEN UNDER nns SECTION DO NOTAFFECTTIlE APPLICABILITY OF TIlEREGULA110NS TO TIm

### SOURCE. AN 

### APPLICANTMAY NOT OMITANY INFORMA110N REGARDING APEN 

### ORPERMITEXEMPT EMISSION UNITS IN ANY PERMITAPPLICA110NIF SUCH INFORMA110N IS NEEDED TO

. DETERMINETIlEAPPLICABILITY OFTITLE V 

### (PART C 

### OF TIllS REGULA110NNo.3), PREVENTION OF SIGNIFICANTDETERIORATION (SECTION N 

### .D.3., PART B OFnns REGULA110N No.3), ORNONATTAINMENTNEW SOURCEREvmw (SECTION 

### N.D.2.A., PARTB OFlHlSREGULA110NNo. 3).

## DRAFTSTATEMENT OFBASIS, SPECIFIC STATUTORY AUTHORITY AND PURPOSE RevisioDs to RegulatioD No.3 October 2002

This Statement ofBasis, Specific Statutory Authority and Purpose complies withthe requirements ofthe Colorado Administrative Procedure Act Sections 24-4-103(4) and (12.5), C.R.S. for new and revised regulations. Basis Regulation No.3 sets forth the AirQuality Control Commission's permitting and air 

### pollutant emission noticeprograms for stationary sources. Pursuant to its statutory authority, the Commissionmayexempt certain stationary sources from permitting and APENrequirements 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 isrevising the provisions designed toensure that in exempting certain sources from APEN andpermit requirements, the regulation does not allow sources to avoid other state and federal requirements. This revision clarifies when application ofotherrequirements prohibit sources from claiming exemptions. Specific StatutoryAuthority The specific statutory authority for these revisions is set forth 

### in various sections ofthe Colorado AirPollution Preventionand Control Act ("Act"). Section. 25-7-105(1), C.R.S., gives the Air QualityControl 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 authorityto establish, emission notice, construction permit and operatingpermitprograms. Some ofthe statutoryparameters for these programs are set forth inSections 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 currentrevisions.

### Purpose I. Condensate Tanks and TruckLoading Equipment Revisions to the crude oil and condensate storage tank exemption inPart 

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

### A, SectionII.D.I.ee., werepropOsed to address the issue offlashing emissions in condensate tanks. The exemptions, and a corresponding**~xemption** 

### inPart C, Section II.E.3.ee. and ddd., did not take flash emissions into account whenthe Commission initially adopted the exemption. The large quantity ofvolatile organic emissions that canbereleased during a flash event led to changes 

### in the exemptions. Additionally, separate exemptionshave 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 significantlydifferent. The Commissionrecognizes that 

### in changingthese exemptions a number oftanks 

### and equipment**th~t** 

### werepreviously exempt from APEN reporting, and therefore exempt from construction permittingrequirements, will nowbe required to file APENs. The Commission does not believe, however, that these existing sources will nowberequired to obtain state construction permits, since such a requirement is triggered byconstruction ormodification ofa source, and not bya changein a previously applicable exemption. 

### If, however, the 

### tanks orequipment are subsequentlymodified, a construction permit will 

### be required for the modification unless the tanks or equipment are exempt underthe new exemption levels. Additionally, sources subject to PSD,NSR-NAA and Title V permittingrequirements are required to have suchpermits regardless ofwhetherthey are subsequentlymodified. The Commission notes topermit applicants that this change becomes effective on the effective date ofthisregulation. 

### Inconnectionwith these revisions. the Commissionhas also looked at the timing requirements set forth inPartA, Section II.D.I.llI., for submittingAPENs and obtaining constructionpermits 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 beforebeingrequired to submitAPENs or construction permit applications. To affect this, Sectionn.D.m. provided that APENs for oil and gas exploration and production operations werenotrequired until 30 days afterfiling the well completion orrecompletion report with the appropriate state or federal agency. Additionally, PartB, Section m.D.S. provided that applications for constructionpermits for suchoperations were due at the same time as the APEN filing. Based on discussions during theregulationrevision process the Commission discovered that the well completionreport mustbe filed before production levels canbe determined and that the provision should have referenced the report offirst production. Therefore. the Commissionhas revised Section n.D.I.lll. to 

### clarify and effectuate the intent ofthe 1993 revisions. TheCommission also recognizes the definition ofcondensate that appears inthe 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. Itis 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 orabove. The Commission anticipates revising the.

. CommonProvisions definition to more clearly reflect this intent the next time the

CommonProvisions regulation is opened for revision. II. APEN Catchall Changes to the APEN catchall inPart A, 

### Section n.D.4. and the constructionpermit catchall inPartB, Section ill.D.S., were significantlyreworked 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, byvirtue ofthat exemption, exempt from any other applicable requirements. Thus, for example, a source that is exempt from APEN orpermitting requirements, must still complywith the Regulation No. I 20% opacity standard. Likewise, an APEN exempt emissionpoint at a major source is excused from paying APEN fees butmay still need to be listed as an insignificant activityunder the requirements ofthe Title V program. Additionally, information regarding exempt sources and emissionpoints must still be included in any permit application where such information is needed to determine the applicability ofany state or federal requirement. For example, where the emissions from aparticular emission point would cause a source to trigger PSD, NSR-NAA orTitle V requirements, information regarding that emissionpoint cannot be omitted from anypermit 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 AirPollutant EmissionNotice and apply for the appropriate permit, or must apply for apermit to limit the physical oroperational capacity ofthe source such that the source is not consideredto 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.) maynot Claim exemptions. [Note: this previous sentence may need to**~** 

### be stricken from the Statement ofBasis if

### the Commission decides notto add 

### ' \ \ RegulatiOD No. 7 to 

### the exceptioDS list

## I This provisioD allows the 

### Division to keep 

### /**~:/ssp** _ regslreg3/sbap reg3 12_28 \ 3

### track ofthesepoints and**so~** 

### and ensure that the requirements ofthese programs are beingproperly followed. It

### must be

### noted, however, that wet screening operations subjectto 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 IMPACTANALYSIS AQCC Regulation No.3. Air PollutantEmission Notices, Construction Permits andFees, Operatingpermits, Including the Prevention ofSignificantDeterioration I. Introduction The

### AirPollution Control Division ispetitioning the 

### Air Quality Control Commission to adoptproposed changesto Regulation No.3. The pmpose oftheSe proposed changes is

### to correct exemptions andprovide clarityto 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 inRegulation 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 statedbelow: "Before any pennanent rule isproposed pmsuantto this section, an initial economic impact analysis shall 

### beconducted incompliance with this subsection (4) ofthe proposedrule or alternative proposed rules. Such economic impact analysis shall beinwriting, developedbytheproponent, ortheDivision in cooperation with theproponent andmade available to the public at the time any request for hearing on a proposedrule isheard bythe commission. A final economic impact analysis shall 

### beinwriting and delivered to the technical secretary andto all parties ofrecord five working days priorto the pre hearing conference. Ifnoprehearing conference is scheduled, the economic impact analysis shall be submitted at least

### ten working days before the date ofthe rulemaking hearing. Theproponent ofan alternative proposal will provide, in conjUnction with theDivision, a final economic impact analysis five working days prior to 

### the prehearing conference. The economic impact analyses shall bebased upon reasonably available data. Except where data isnotreasonably available, or .:

### as otherwise provided in this section, the failure to provide an economic impact analysis ofany noticedproposedrule or any alternative proposed rule will preclude such proposed rule or alternative proposedrule from being considered bythe Commission. Nothing in this section shall be 

### construed to

### restrict the Commission's authority to consider alternative proposals and alternative economic impact analyses thathave notbeen 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 byreference applicable federal rules orwhich rule is adopted to 

### implement prescriptive state statutoryrequirements, where the Commission is allowed no significant policy-making options, orwhich rule will have no regulatory impact on any person, facility, or activity." 

# m. Chaages Requiring Economic ImpactAnalysis The Division's review ofthe 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 ofRegulation No. 3 do not cause an increase in compliance costs. IV. Methods ofAnalysis 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, if

### it is not provided, it shall not be

### considered reasonably available. The economic impact analysis required bythis subsection (4) shall be 

### based Upon reasonably available data 

### and shall consist ofone ormore ofthe following: Q) 

### Cost-effectiveness analyses for air

### pollution control that identify: (A) The cumulative cost including butnot 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) Anydirect costs to 

### be incmredbythe general publicto 

### comply with 

### theprovisions oftheproposal; 

### (C) 

### Airpollutionreductions causedbytheproposal; 

### (D) The costperunit of

## airpollutionreductions causedbythe proposal; 

### (E) The cost for the Divisionto 

### implement the provisions ofthe proposal; or, 

### (IT) Industry studies that examine the direct costs oftheproposal on directly affected entities thatmaybe eitherinthe form ofa business analysis (The regulatory impacts onthe generalbusiness climate or subsets thereof) oran industry analysis (the regulatory impacts on specific industries), including: (A) The characteristics and current economic conditions ofthe impacted business orindustry sector; 

### (B) The projected impacts onthe 

### growth ofthe affected industry sectors with and without implementation ofthe proposal; 

### (C) Howthe proposal mayeffect or alter the growth ofthe affected industry sector; 

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

### Aneconomic impact analysis that: (A) Identifies the industrial and business sectors that will beimpactedby the proposal; 

### (B) Quantifies the direct cost to theprimary affectedbusiness orindustrial

0 

### sector;**an~** 

### (C) Incorporates an estimate ofthe economic impact ofthe proposal onthe supporting business and industrial sectors associated with the primary affected business orindustry sectors. In 

### addition to the requirements listed above, the statute requires 

### that economic impact analysis shall not consist ofan analysis ofanynon-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.). 

# I 

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### V. Condensate StorageTanks 

### The proposed modifications pertaining to crude oil orcondensate 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 ofsources 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 ofthese sections is to identify sources that in

### all likelihood will always be below de minimis emission thresholds, thus removing the burden onthe regulated community to estimate emissions for these categories. As 

### mentioned, the PfQposed changes in question pertain 

### to crude oil orcondensate storage tanks. The Coimnission previously setthis exemption at a storage capacity of40,000 gallons or less. Ithas



# . ! 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 r 

### permit 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, SectionII.D.4. Therefore, the only economic 

# i

f 

### impact ofthe proposed changes will be to true minor sources. t 

### ! it 

### Based on apreliminary 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 bythese proposed provisions. 

# t Analysis: I The cumulative costincluding, butnot limited to, the total capital, operation, 

## f and maintenance costs ofany proposed controls for affected business entity or 

## i industry to comply with the provisions ofthe proposal. 

# I The economic impact will include: 

# t 

# I I
• Air Pollutant Emission Notice filiilg fees of$119.96 per tank 

### or manifolded tanks; f' 

# • ! f. !**~** 

# I**~** 

# t I t

### • Permitprocessing fees of$59.98lhour, for

### tanks that arenewormodified, the average permitprocessing time is estimatedto 

### be five hours;

• Annual fees of$

## i7.97perton ofcriteria pollutant and $119.96 

### perton of Hazardous 

### AirPollutant Thus, annual fees for a source emitting4 tons/year source would total about $721year; a 100 tons/year sources would 

### be billed about $1,8001year for**criteri~** 

### pollutant emissions.

• TheDivision, as part ofthe implementation ofthese 

### rules, willrequire a 

### small subset ofthe facility population (facilities over 11,000 bbVyear) to perform samplingrather than 

### use emission factors to calculate the emissions. The Divisionrequested and received estimates ofthe associated samplingcosts ofdetermining flashing VOC emissions from storagetanks 

### from Colorado Oil and Gas Association. The costbreakdown is as follows:

• Extendedhigh 

### pressure liquid sample • Retrofit equipment $500 • SamplingTech $275 • Sample Analysis $200 • RVPSample • SamplingTech $65 • Sample Analysis $100

- $150 • API Gravity • SamplingTech $65 • SampleAnalysis $40 • Evaluation • Process Simulation $500 Total $ 1,800 TheDivision made a request to iridustry for reasonably available data reflecting costs ofgathering information needed for APEN filing. Noneofthis has been

### provided to date. Therefore, this analysis is ourbest estimate ofthe economic burden. 

### Directcosts to beincurred bythe generalpublicto comply with the provisions of the proposal: " None anticipated. Air

### pollution reductions caused bythe proposal: None can be quantified at this time, but the proposal would help the Division to identifythe location ofnumerous sources ofair

### pollution. ;. 

### ".

### The cost perunitofair

### pollution reductions caused bytheproposal: None anticipated. 

### The cost for the Division to implementthe provisions oftheproposal: Thepermitprocessing and annual fees generatedwill coverthe anticipated costs to theDivision.



### VI. Crude

## on & 

### CondensateLoading TruckEquipment at Crude 

## on Production Sites

. This modificationpertaining to condensate loading truck equipment at crude oil production sites canbe found inRegulation Reg. 3, Part 

### A, section II.D.1.ee. and Part C, section II.E.3.ee. 

### Ingeneral, the rule lists categories ofsources that are exempt from AirPollutant EmissionNotice requirements. Theintentionbeingto list sources that in all likelihood will always bebelowde minimis emissionthresholds, thus removing the burden on the regulated communityto estimate emissions for thesecategories. The Commissionpreviously set the exemption for crude oil"and condensate loading equipment at a loadingrate of 10,000 gallons perday, averaged over any 30-dayperiod. 

### Ithas cometo the attention ofthe Division that at these loading rates, VOC emissions for condensate loading could exceed 25 tons peryear. Specifically, at 10,000 gallons perday, the emissions calculation 

### from splash fill condensate truck loading (RVP 13 gasoline) is estimated tobe 27.1 tons/yr. Emissions from truck loading using a submergedpipe is estimated to be 11.2 tons/yr. Based onthis information and discussions with the Division's permit engineers, the exemption for condensatetruck loading isproposedtobe set at 6,750 barrels ofcondensate

### peryear at 

### splash fill sites, and 16,308 barrelsper 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 notproposed for change. Analysis: 

### Thecumulative cost including,butnot limited to,the total capital, operation, and maintenance costs ofany proposed controls for affected business entity orindustry to comply with theprovisions ofthe proposal. The economic impact will include: • AirPollutant Emission Notice filing fees of$119.96per installation;

### • Permitprocessing fees of$59.98/hour, fornew ormodified sources; the averagepermitprocessing time 

### is estimated to be 

### five hours;

• Annual fees ofS17.97 per

### ton ofcriteriapollutant and $119.96 

### perton ofHazardous Air Pollutant. Thus, annual fees for a source emitting 2 tons/year would total about $36Jyear, a 100 tons/year source wouldbebilled about $1,800/year.

• The Division anticipates that a small number of sources (12­ 20) willbe affectedbythis proposed action.



### Direct costs to beincurred by the general publicto complywith the provisions ofthe proposal: None anticipated. 

### Air

### pollution reductions caused bytheproposal: None anticipated, but theproposal would help the Division identifythe location ofnumerous sources ofair

### pollution. 

### Thecost perunit ofair pollution reductions caused by the proposal: None anticipated 

### Thecost for the Division to implement the provisions oftheproposal: Thepermitprocessing and annual fees generated will coverthe anticipated costs to the Division.. STATE SERVICES BUILDING

# ~~ STATE OF COLORADO 1525 Sherman Street

- 5th Floor Attorney General Denver Colorado 80203 

### DEPARTMENT OF LAW ClnusnNEM. ARGUELLO Phone**303)8~500** OaiefDeputyAttorney General FAJ< 

# r**303)8~5691** 

### Oma OFmE ATTORNEY GENERAL ALAN J. GILBERT

. SolicitorGeneral 

### OPINION OF THEATTORNEY 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 

### intheir form or substance.



### '-" DATE: 

# Z'f, un> L­

# A$';PUBIIJ.'W41 

# 11);.lN 

# ,:,''lHf£€CR

# I

.. 1

# ~' 1 

# .
...

# I 1 

# 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 andAmendments: 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 adopted 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 ofAir Pollution Control Commission Regulation NO.3 (5 CCR 1001-5) goveming the issuance ofair contaminant emission. pemits.

*This Title Page does not constitute an official part ofany 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 toUse 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 I S/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, jEFFECTIVE 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; 19AG 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 1001-5EDITOR'S NOTES (continued) History and Amendments: pp.I-260adopted 7118/02, EFFECTIVE 9130/02, 25 CR9.

## pp. 1-275 adopted 10/17/02, EFFECTIVE 12130/02,25CR 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 1001-5EDITOR'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 ofColorado All Rights Reserved. (800) 877-WEIL 

### Page 3 5 CCRlOOl-SEDITOR'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 ofColorado 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. AIRPOLLUTANT EMISSIONNOTICE (APEN) REQUIREMENTS

......................28 

## m. ADMINISTRATIVE PERMIT

### AMENDMENT PROCEDURES

...............................42 

### IV. OPERATIONAL FLEXIBILITY

......:...........................................................................43 

### y. CERTIFICATION AND TRADING OFEMISSIONREDUCTIONCREDITS OFFSET ANDNErrING TRANSACTIONS

.................................................................44 

### VI. FEES

..............................................................................................................................59 VII. CONFIDENTIAL INFORMATION ORDATA CONTAINED IN AIR POLLUTANT EMISSION NOTICES. PERMIT APPUCATIONS. OR REPORTS SUBMITTED PURSUANTTO PART C. SECTION V.C.6

.....................61 VIII. TECHNICAL MODELING AND MONITORING REQUIREMENTS

......................62 PART B CONCERNING CONSTRUCTION PERMITS INCLUDING REGULATIONS FORTHEPREVENTION 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 OFAPPUCATIONS

......................................................................... 124 V. OPERATING PERMIT ISSUANCE. RENEWALS AND MODIFICATIONS

........ 126 VI. PUBLIC PARTICIPATION REQUIREMENTS

........................................................ 134 VII. EMERGENCYPROVISIONS

.................................................................................... 137 VDI. GENERAL OPERATING PERMITS

......................................................................... 137 IX. REVIEW BYAFFECTED STATES

.......................................................................... 139 X. MINOR PERMIT MODIFICATION PROCEDURES

............................................... 140 XI. PROCEDURES FOR GROUP PROCESSING OFMINOR PERMIT MODIFICATION APPLICATIONS

.......................................................................... 142 XU. OPERATIONAL FLExmILI1'Y

................................................................................ 145 xm. REOPENINGFORCAUSE OFPERMITS ISSUED PURSUANTTO 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 ofColorado. All Rights Reserved. (800) 877-WEIL 

### 5 CCR 1001-5Colorado 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 iiTABLE 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 pursuantto 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 ofApplications 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 ofMinor Pmnit Modification Applications 

### XI 152 Operational Flexibility 

### XII 155



### 5 CCR 1001-5TABLE OF CONTENTS--con/'d

Reopening for Cause ofPermits 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 ofBasis. Specific Statutory Authority and Purpose

### . f ','.

# .~ ;



### 156 157

163 165 177 199

210



### 5CCR 1001-5

### Page 1 C 2003 Weil Publishing for the State ofColorado 

### 26 CR4, 4-03 All Rights 

### Reserved



### PART A CONCERNING GENERAL PROVISIONS APPUCABLETO CONSTRUcnONPERMITS AND OPERATING PERMITS I. 

### APPUCABILITY 

### I.A The provisions ofthis

### PartA shall apply statewide to all 

### sources ofairpollutants except as otherwise provided herein. All sources ofair

### pollutants that

### have previously obtained an emissions permit (prior to July I. 1992) or a construction permit, and 

### are subject only to the PartB ConstructionPermitProgram. maychoose to reapply for a new construction permit pursuantto PartB oftbisRegulation No.3 

### inorder to obtain the operational flexibilityprovided 

### in section IV., ofthis

### Part A, 

### orto obtain federally enforceable limitations to limit the source'spotential to 

### emit ("synthetic minor"). Sources ofair 

### pollutants that are subject onlyto the Part B ConstructionPermitProgram

### may voluntarily apply for an Operating Permit pursuant to Part C. Pursuant to 

### Colorado Revised Statutes section 24-4-103 (12.5), materials incorporated byreference are available for public inspection during

### normal business hours, orcopies maybe 

### obtained at areasonable cost :fromtheTechnical Secretary of the AirQuality

### Control Commission (the commission), 4300 Cheny

### CreekDrive South,Denver, Colorado 80246-1530, ormay be

### examined at 

### any StatePublications DepositoryLibrary. Materials incorporatedbyreference are those editions 

### in existence as ofthe date this 

### regulation ispromulgated orrevised 

### bythecommission and references do not include later amendments to oreditions oftheincorporated materials.

. 

### lB. Definitions 1.B.t. ActualEmissions The actual rate

### ofemission ofapollutant :from an emissions unit, determined as follows: 1.B.I.c. Actual emissions as ofa particular date shall 

### equal

### the avemgerate,

### intons peryear, at

### which

### the unit emitted the

### pollutant during 

### a two-year

### period that

### precedesthe particular date and 

### is

### representative ofnormal unit operation. A different periodmay beused 

### ifit is 

### more representative ofnormal unit

### operation. Actual 

### emissions shall be calculated 

### using actual 

### operatinghours,

### productionrates.. and types 

### ofmaterial storedorcombustedoractual emission data 

### during the selected timeperiod; 

### 1.B.I.a. The

### divisionmaypresumethat source-specific allowable emissions for the unit are equivalent to the 

### actual emissions ofthe 

### unit only ifactual 

### emissions cannot be

### determined

### pursuantto 

### sectionLB.I.c., above; lB.1.b. 

### For any emissions unit (other than 

### an electric utility steam 

### generatingunit specified in section LB.69.e. that has 

### notbegun 

### normal operations onthe

. particulardate, actual 

### emissions shall equal 

### thepotential to 

### emitofthe unit on that 

### date.



### 5CCR 1001-5 CODE OFCOLORADO REGULATIONS

### Page 2

I.B.I.c. For an electric utility steam 

### generating unit (other than 

### a newunitorthe replacement ofan existing unit) actual emissions ofthe unit following the physical oroperational change shall 

### equal the representative actual annual emissions oftheunit, provided the source owner oroperatormaintains and submits to the division on an annual basis, for a period offive years from the date the unit resumes regular operation, information demonstrating that the physical oroperational change did not result in an 

### emissions increase. 

### A longer period, not to exceed ten years. mayberequired bythe division ifit detennines such

### a periodto be 

### morerepresentative ofnormal sourcepost· change operations. 

### I.B.2. Administrator The administrator oftheU.S. EnvironmentalProtectionAgency (U.S. BP A). I.B.3. Adverse Environmental Effect As 

### a term used in the context ofregulating hazardous airpollutants any significant and 

### widespread adverse effect, that mayreasonably be 

### anticipated, to

### wildlife, aquatic life. orother natural 

### resources, including adverse 

### impacts onpopulations of endangered orthreatened species or significantdegradation ofenvironmentalquality over

### broad. areas. I.B.4. Affected 

## states All states whose air quality may be 

### affected byissuance

### ofan

### operatingpermit, operating permitmodification, or operatingpermitrenewal andthat are contiguous to Colorado; and/or all 

### states that 

### are within fifty miles ofapermitted source. I.B.S. Affected Unit A unit that 

### is 

### subject to 

### any acid rain 

### emissionsreduction requirement or acid rain 

### emissions 

### limitationpursuant to 

### Title IV

### ofthe FederalAct orregulations promulgatedthereunder, inthe Code 

### ofFederalRegulations Title40, Part72. LB.6. 

### AirPollutant 

### Means carbonmonoxide. nitrogen oxides, sulfur

### dioxide, PM1o. total**sUspend~** 

### particulates, ozone, volatile organic compounds, lead, all

### pollutants regulatedunder section 111 

### ofthe 

### Federal Act (Regulation No. 6), 

### allhazardous air

### pollutants, and

# an class I 

### and 

### class

# nozone depleting compounds as defined and 

### referenced in section 602

### oftheFederal Act. 

### LB.7. 

### Air QualityRelated Value (for purposes ofPart B - ConstructionPermitProgram) 

### AJJyvalue ofanarea that 

### maybe 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 PartA, 

### Page2



### CODE OFCOLORADO REGULATIONS

### Page 3 c 2002 Weil Publishing for the State of Colorado 

### 25 CR 12, 12-02 All Rights Reserved



### , ! j

# I" 1 !

I 

# 1 

# 1 " · 1 '-' 

### I 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 ofoperation, 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 airpollutants; 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 ofthe 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 bythe U.S. EPA through rulemaking at the time of permit issuance buthave future effective compliance dates); 1.B.9.a. Any term orcondition 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 ofthis Regulation, or anypermit issued under Part C or Part 0 ofthe Federal Act, except that state-onlypermit terms or conditions shall remain enforceable solelypursuant to state law; I.B.9.b. Any standard or other requirementprovided 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 otherrequirement under section 112 ofthe Federal Act (hazardous air pollutants, including any requirement concerning accident prevention under section 112(r)(7) ofthe Federal Act (Regulation No.8»but not including the contents ofany risk management planrequired 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) ofthe Federal Act; I.B.9.f. Any standards or otherrequirement under the Code ofFederal Regulations Title 40, Part 72 (acid deposition control); lB.9.g. Any standard or otherrequirement governing solid waste incineration; 1B.9.h. Any standard or other requirement for consumer and commercial products; Regulation No.3 PartA, 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 orvisibility 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 (forpurposes 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 ormajormodification establishing the minor source baseline date would construct orwould 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 sourcebaseline 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 bythe applicable minor source baseline date (forpurposes 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 ormajor 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

# I 1 Page 5

### ~ c 2002 Weil Publishing for the State of Colorado 

### 25 CR 

### 12, 12-02 All Rights Reserved

# l~ 

# I 1

i 

# I 1 I 

### i 

# i 

# I I 

# I 

# I ! I 

## 1 

# 1 

# ! 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 ofeach air pollutant subject to regulation under the Federal Act that would be emitted from anyproposed major stationary source or major modification that the division or commission, on a case-by-case basis, taking into account the duration ofthe source ormodification 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 ofany air pollutants that would exceed emissions allowed by the applicable standards in the Code ofFederal 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 maybe 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 orcommission detennines that technological oreconomic 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 complianceby means that achieve equivalent results. Commenced Construction When the owneror operator has obtained all necessarypre-construction approvals or permits required by federal, state, or local air pollution and air quality laws and regulations and has either; (a) begun, orcaused to begin, a continuous program of physical onsite construction ofthe source, or (b) entered into binding agreements or contractual obligation that cannot becancelled ormodified without substantial loss to the owner or operator, to undertake a program ofactual 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 ofequipment; 5) setting up temporary trailers to house construction management staffand contractorpersonnel; 6) engineering and design; and 7) geotechnical investigation. In the event that the source does not qualify for issuance ofa pennit, the owner oroperator accepts the financial risk ofcommencing these activities. Commencement ofOperation

Regulation No. 3 Part A, Page 5



### 5 CCR 1001-5 CODE OF COLORADO REGULATIONS

### 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 ofpermit 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 ofRegulation 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 ofeach pollutant modeled for each applicable ambient standard orPrevention ofSignificant Deterioration increment within the impact area ofthe 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 tobe 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 ofeachpollutant 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 offacts needed to establish a claim bythe applicant to qualifY for any exemption or exclusion under section IV.D.3.b., Part B; l.B.lS.a.(vii) A schedule ofconstruction in accordance with section IV.GA., Part B; I.B.1S.a.(viii) An additional copyofthe application for the federal land manager ofeach 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

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### 25 CR 12, 12-02 All Rights Reserved

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 ofan affected source and ofall 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 legallybind 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 secretaryofthe 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 sizeor substance to adversely affect public health orwelfare. Regulation No.3 Part A, Page 7



### 5 

### CCR 1001-5 CODE OF COLORADO REGULATIONS

### 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 ofairpollution control that has not been adequately demonstrated in practice, but would have a substantial likelihood ofachieving greater continuous emissions reduction than any control system in current practice orofachieving 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 ofemissions 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 oroperator of the proposed stationary source demonstrates that such limits are not achievable; or 1.B.33.b. The most stringent emission limitationthat is achieved in practice or can reasonably be expected to occurinpractice by such class or category of source, taking into consideration thepollutant 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 (RegulationNo.6). I.B.34. Major Source BaselineDate 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 

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## I 

# I 

# Ie I I 

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### ,**~** c 2002 Weil Publishing for the State of Colorado 

### 25 CR 

### 12, 12"()2 Page 9 All Rights Reserved



### N.D.3. orCode ofFederal 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 ofparticulate matter and sulfur dioxide, August 7, 1977; and I.B.35.a.(ii) In the case ofnitrogen 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) ofthe 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 ofa major stationary source thepollutant would be emitted in significant amounts, or, in the case ofa majormodification, there would be a significant net emissions increase ofthe pollutant. I.B.35.c. Anyminor source baseline date established originally for the Total Suspended Particulates increments shall remain in effect and shall apply for purposes of determining the amount ofavailable PMIO increments, except that the division may rescind any such minor source baseline date where it canbe shown, to the satisfaction ofthe division, that the emissions increase from the major stationary source, orthe 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, orphone number ofany person identified in the permit, orprovides a similar minor administrative change at the source; Requires more frequent monitoring orreporting by the permittee; Allows for a change in ownership oroperational control ofa 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 ofa pennit shall be governed byregulations promulgated underTitle IV of the Federal Act, found at Code ofFederal 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 ofany 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) Anynet emissions increase that is significant for volatile organic compounds shall be considered significant for ozone. In the DenverMetropolitan PM10 nonattainment area, any net emission increase that is significant for sulfurdioxide or nitrogen oxides shall be considered significant for PMlO• lB.36.b.(ii) A physical change orchange in the method ofoperation shall not include routine maintenance, repair, and replacement. 1.B.36.b.(iii) A physical change orchange 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 orraw material byreason ofan order in effect under sections 2(a) and (b) ofthe 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) orbyreason ofa natural gas curtailment plan in effect pursuant to the Federal Power Act; I.B.36.b.(iii)(B) Use ofan alternative fuel byreason ofan order or rule under section 125 ofthe Federal Act; LB.36.b.(iii)(C) Use ofan alternative fuel orraw 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 ofaccommodating, or that the source is approved to use under any pennit issued under Code of Federal Regulations Title 40, Subparts I, or 52.21, orunder 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 ofoperation, unless such increase would be prohibited under a federally enforceable permit condition; or LB.36.b.(iii)(F) Any change in ownership ofa stationary source. lB.36.b.(iii)(G) The addition, replacement or use ofa pollution control project at an existing electric utility steam generating unit, .unless the division determines that such addition, replacement, oruse 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 ofany criteria pollutant over levels used for that source in the most recent air quality impact analysis in the area conducted for the purpose ofTitle I ofthe Federal Act, ifany, and I.B.36.b.(iii)(G)(2) The division determines that the increase will cause or contribute to a violation ofany National Ambient Air Quality Standard or Prevention ofSignificant Deterioration increment, or visibility limitation. lB.36.b.(iii)(H) The installation, operation, cessation, orremoval ofa 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 ofa 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 ofa very clean coal-fired electric utility steam generating unit. lB.36.b.(iv) Emissions caused by indirect sources ofpollution, 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



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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 ofthe modification for sources subject to an operating permit. Forpurposes 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, 1980was regulated under 111 or 112 oftheFederal 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, orchange in the method ofoperation of, a stationary source that does not meet the definition ofmajormodification, and that increases the emission rate ofany pollutant for which a federal or state emission standard has been promulgated or that results in the emission ofany 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 byenforceable 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 capacityofthe source and does not lead to emissions in excess ofthe emission standards; I.B.36.d.(ii)(B) Anincrease in the hours ofoperation that does not lead to emissions in excess ofthe emission standards. I.B.36.d.(ii)(C) Use ofan alternative fuel orraw material byreason ofan 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 PowerPlan and Industrial Fuel Act of 1978 (or any superseding legislation) orby Regulation No.3 Part A, Page 12 

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reason ofa natural gas curtaibnent plan in effect pursuant to the Federal Power Act; IB.36.d.(ii)(D) Use ofan alternative fuel by reason ofan order orrule under section 125 ofthe Federal Act; or I.B.36.d.{ii)(E) Change in ownership ofthe 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 ofmajormodification 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, orthe 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 byregulations promulgated underTitle IV ofthe 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



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I.B.36.h. Significant Pennit Modification: means all operating pennit modifications that

..

# ~ do not qualify as minor pennit modifications or as administrative permit 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} Anychange 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 ofan emission limitation or other standard; I.B.36.h.(iv} Any change that requires or changes a source-specific detennination for temporary sources ofambient 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} Everyrelaxation 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 beused for purposes ofsection V. ofPart A - "Certification and Trading ofEmission Reduction Credits"). I.B.37.a. The amount bywhich the sum ofthe 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) Anyother 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 ordecrease in actual emissions is contemporaneous with the increase from the particular change only ifit 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 ordecrease 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 owneror operator submits an Air Pollutant Emission Notice to the division prior to the increase ordecrease indicating actual emissions according to the definition in Regulation No.3, Part A, section LB.1., and the owner oroperator 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 oroperatorprovides credible, demonstrable evidence to the division ofwhat actual emissions were before making the increase or decrease and what they were after making the increase ordecrease. I.B.37.d. An increase ordecrease in actual emissions ofsulfurdioxide, particulate matter, or nitrogen oxides that occurs before the applicable minor source baseline date is creditable only ifit 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 ofactual 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 anypermit under regulations approved pursuant to Title 40 ofthe Code ofFederal Regulations, Part 51, Subpart I orhas not relied on it in demonstrating attainment orreasonable further progress: Regulation No.3 Part A, Page 15



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LB.37.f.(i) The old level ofactual emissions orthe old level ofallowable emissions, whichever is lower, exceeds the new level ofactual 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. Anyreplacement 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 ofany volatile organic compound. LB.37.i. Creditable Decreases for Fuel Switching. Generally, for credit to be given for the emissions reduction inpotential to emit or actual emissions reSUlting from a physical change or change in method ofoperation ofa major stationary source occurring on or after the effective date ofthis 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., ofthis definition, a nonroad engine is an internal combustion engine: I.B.40.a.(i) In or on a piece ofequipment that is self-propelled or serves a dual purpose byboth propelling itselfand performing another function (such as garden tractors, off-highway mobile cranes and bulldozers); or I.B.40.a.(ii) In or on a piece ofequipment 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 itselfor in or on a piece ofequipment 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 orwill remain at a location for more than twelve consecutive months or a shorter period oftime 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 (ormore) 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 peryear at the same location are subject to the following state-only requirements: I.BAO.c.(i) Submit an air pollutant emission notice and paythe 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 ormore ofnitrogen oxides, 100 tons per year ormore ofcarbon monoxide, or40 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



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IB.40.c.(iii) The operator ofa 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 ofa nonroad engine or aggregation ofengines 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 stateonlyrequirements: I.B.40.d.(i) Submit an air pollutant emission notice and pay the fees required byPart 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 ormore of nitrogen oxides, 100 tons per year or more ofcarbon monoxide, or40 tons per year or more ofsulfur dioxide. After receipt and review ofa 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 ofanonroad 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 anypermit or group ofpermits covering an operating permit source that is issued, renewed, amended orrevised 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 ofColorado 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 ofan owneroroperator ofa source for any violation ofapplicable 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 airpollution control equipment and restrictions on hours ofoperation oron 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 ofan 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 airquality standard has been promulgated; any pollutant that is subject to any standard promulgated under section III ofthe Federal Act (Regulation No.6); any class lorII substance subject to a standard promulgated underorestablished by Title VI ofthe Federal Act; any pollutant subject to a standard promUlgated under section 112 orotherrequirements established under section 112 ofthe Federal Act, including sections II2(g), (;), and (r) ofthe Federal Act; and anypollutant 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



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do not trigger enforcement by the Administrator orby 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 ofan Operating Pennit Means the process by which a permit is reissued at the end ofits 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 ofthe corporation in charge ofa principal business function, or any otherperson who perfonns similarpolicy or decision making functions for the corpomtion, or a duly authorized representative ofsuchperson ifthe representative is responsible for the overall operation ofone or moremanufacturing, 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 orhave gross annual sales orexpenditures exceeding twenty-five million dollars (in second quarter 1980 dollars); or I.B.54.a.(ii) The delegation ofauthority to such representative is approved in advance by the division; 1.B.54.b. For a partnership or sole proprietorship: a general partnerorthe proprietor, respectively; I.B.54.c. For a municipality, state, federal, or other public agency; either a principal executive officer, orranking elected official. Forthe purposes ofthis section, a principal executive officer ofa federal agency includes the chiefexecutive officer having responsibility for the overall operations ofa principal geographic unit ofthe agency; or I.B.54.d. For affected sources: 1.B.54.d.(i) The designated representative in so far as actions, standards, requirements, orprohibitions 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 ofthe 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 ofactions oroperations, leading to compliance with an applicable state implementationplan, emission standard, emission limitation, emission prohibition, or emission control regulation. I.B.56. SecondaryEmissions Emissions that would occur as a result ofthe construction oroperation ofa major stationary source or major modification, but do not come from the major stationary source or major modification itself. Secondaryemissions 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 off site support facility that would not otherwise be constructed orincrease its emissions except as a result ofthe construction or operation ofthe major stationary source ormajor modification. Secondary emissions do not include any emissions that come directly from a mobile source, such as emissions from the tailpipe ofa motor vehicle, from a train, or from a vessel. I.B.57. Section 

### 502(b)(10) 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 ofemissions in tons per year is defined as a value that would equal or exceed any ofthe following: Carbon monoxide: 100 tons 

### per year Nitrogen Oxides: 40 (nitric oxide 

### + nitrogen dioxide) tons per year Sulfurdioxide: 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 PM IO nonattainment area: 40 tons per year for each individual precursor (nitrogen oxides or sulfur oxides) Ozone: 40 tons per year ofvolatile organic compounds Lead: 0.6 tons per year Regulation No. 3 Part A, Page 21



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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 CombustorMetals (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 ofa 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 orpursuant 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 ormajor modification, that would construct within ten kilometers ofa 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 ofairpollutants that includes one ormore 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 hasbeen constructed, is in operation, or has received an initial approval ofa construction pennitprior to the effective date of applicable requirements. Indirect Source: A facility, building, structure, or installation, or any combination thereof, excluding dwellings, which canreasonably be expected to cause orinduce substantial mobile source activity that results in emissions ofairpollutants that might RegulationNo.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, orhas 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 ormore ofany combination ofhazardous air pollutants, or such lesser quantity ofhazardous 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 orpump 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 suchunits or stations are major sources, and in the case ofany 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, orhas the potential to emit, one hundred tons per year or more ofany 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 onlywith 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 ofdetennining 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 ofairpollutants which emits, orhas the potential to emit, one hundred tons per year ormore ofany 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 orcontributing to a violation ofa national ambient air quality standard for any pollutant regulated under section 110 of Regulation No.3 Part A, Page 23



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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 ofdetermining 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 ofair pollutants which emit, or have the potential to emit, one hundred tons per year or more ofany pollutant subject to regulation under the Federal Act: fossil fuel-fired steam electric plants ofmore than two hundred and fifty million British thermal units perhour 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 perday, hydrofluoric, sulfuric, and nitric acid plants, petroleum refineries, lime plants, phosphate processing plants, coke oven batteries, sulfur recovery plants, carbon blackplants (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 hourheat 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 emittwo hundred and fifty tons per year ormore ofany air pollutant regulated under the Federal Act. 1.B.59.f. Major stationary source includes anyphysical change that would occur at a stationary source not otherwise qualifying as a major stationary source under this definition ifthe 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 ofAugust 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 PM lO nonattainment area that is major for sulfur dioxide ornitrogen oxides shall be considered major for PM 10. Mobile Source: Motor vehicles and other sources ofair pollution that emit pollutants while moving and that commonly do not remain at one site (one or more contiguous or adjacent properties owned oroperated bythe same person orbypersons 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 afterbeing inactive for more than one year after having been shut down for the purpose ofeliminating emissions that violated any applicable emission control regulation orregulation for the control ofhazardous air pollutants. Portable Source: A source such as, but not limited to, asphalt batch plants and aggregate crushers that commonly and byusual practice are moved from one site to another. A source will not be considered portable ifitremains on one site for more than two years. Stationary Source: Anybuilding, structure, facility, equipment, or installation, orany combination thereofbelonging to the same industrial grouping, that emits ormay emit any air pollutant subject to regulation under the Federal Act, that is located on one ormore 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., ofthis regulation shall not be considered a stationary source. Building, structures, facilities, equipment, and installations shall be considered to belong to the same industrial grouping ifthey 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 

### AirPollution 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



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I.B.61. Reserved I.B.62. Reserved I.B.63. State-only Condition Means any standard, tenn orcondition 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, oris 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, orprocess steamwhich was not inwidespread use as ofNovember 15, 1990. I.B.69.b. Clean Coal TechnologyDemonstration Project A project using funds appropriated undertheheading "Department ofEnergyClean Coal Technology," up to a total amount of$2.5 billion for commercial demonstration ofclean coal technology, or similarprojects 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 ofits potential electrical output capacity and more than twenty-five megawatts electrical output to any utilitypower 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 ofthe affected facility. IB.69.d. Pollution Control Project Any activity or project undertaken at an existing electric utility steam generating unit for purposes ofreducing 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 orproject to accommodate switching to a fuel which is less polluting that the fuel in use prior to the activity orproject, including, but not limited to natural gas or coal re-burning, orthe 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 Anyphysical change orchange 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 ofemissions 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



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I.B.69.f. Repowering 1.B.69.f.(i) Replacement ofan existing coal-fired boiler with one ofthe following clean coal technologies: atmospheric orpressurized 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 simultuneouslywith improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance oftechnology 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 ofJanuary 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 orchange in the method ofoperation ofa unit, (or a different consecutive two yearperiod 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. Inprojecting 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 underTitle IV of the Federal Act; and I.B.69.g.(ii) Exclude, in calculating any increase in emissions that results from the particularphysical change orchange in the method ofoperation at an electric utility steam generating unit, that portion ofthe unit's emissions following the changethat could have been accommodated during the representative baselineperiod 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 ofelectricity demand growth for the utility system as a whole. I.B.69.h. Temporary Clean Coal TechnologyDemonstration Project I.B.69.h.(i) A clean coal technology demonstration project that is operated for a period offive 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. AirPollutant Emission Notices for New, Modified, and Existing Sources Except as specifically exempted in section 11.0., no person shall allow emission ofair pollutants from, orconstruction, 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 specifythe 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 AirPollutant EmissionNotice fonn. 

### ItR General 

### II.RI. Emission Estimate TheAirPollutant EmissionNotice shall include an estimate ofthe 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 notbe required solely to meet the Air Pollutant Emission Notice reporting requirements. An owner oroperator shall provide ajustification to the division for not using any methods that are higher on the list than the method the owner oroperator 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



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The division shall make available to all air pollution control authority offices appropriate fonns on which the infonnation required bythis section shall be submitted. Applications for Construction Pennits must include an Air Pollutant Emission Notice. II.B.2. Air Pollutant EmissionNotice Tenn An Air Pollutant Emission Notice is valid for a period offive years. The five-year period recommences when a revised Air PoJlutant Emission Notice is received bythe 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 ofpoints pursuant to section D.B.4., below. D.B.3.a. Criteria Pollutants For criteria pollutants, AirPollutant Emission Notices arerequired for: each individual emission point in a nonattainment area with uncontrolled actual emissions ofone ton per year or more ofany individual criteriapollutant (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 ormore ofany individual criteriapollutant (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 Fornon-criteriareportable pollutants, Air PollutantEmission Notices are required for each individual emission point withuncontrolled 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. Multiplepieces ofequipment or processes from a single facility maybe grouped or associated together and reported on one singleAirPollutant Emission Notice provided the individual sources ofemissions meet the following guidelines:
Regulation No.3 Part A, Page 30



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II.B.4.a. All ofthe 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 ofthe 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 otherpoints 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 ofAirPollutant 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 ofany emission control equipment or procedures. The division may allow a source to forego calculating or estimating its uncontrolled actual emissions ofhazardous 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. 

### AirPollutant 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



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ILB.9. Criteriapollutants 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. Wheneverthere is a change in the owner oroperator ofany facility, process, oractivity; or II.C.I.c. Whenevernew 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 wheneverthe location ofa portable facility, process, or activity is changed, however, the owner or operator ofsuch source must file a relocation notice. Such notice shall be received bythe division 

### at least ten days prior to the change in location. Alternatively, the owner or operator ofa portable source mayrequest written approval from the division to report multiple relocations. Relocation forms are available at the division offices. II.C.l.g. A revised AirPollutant 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 underPart C orD ofTitle I, orTitle V ofthe Federal Act. II.C.1.h. A revised AirPollutant 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 oroperational 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 ofthe 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 ifthe 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 ormore, above**th~.Ievel** reported on the last 

### Air Pollutant Emission Notice submitted to the division, ofany such air pollutant; or II.C.2.b.{ii) For volatile organic compound sources in ozone nonattainment areas emitting less than one hundred tons ofvolatile organic compoundper 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 offive 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 airpollutant; 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, offifty pounds of lead. fl.C.3. Timefrarne for Revised AirPollutant 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 oroperators ofsources that are required to obtain a permit revision must file a revised AirPollutant Emission Notice along with a request for permit revision. A revised permit mustbe obtained before the change at the source occurs. fl.C.3.c. Sources submitting revised AirPollutant Emission Notices to inform the division ofa change in actual emission rates must do so byApril 30 ofthe following year (e.g., a change in emissions in calendar year 1993 must be reported byApril 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 

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applicability section ofany 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 000ofthe 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 specificallyto 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 nonattainmentNew Source Review(Section IV.D.2.a., Part B ofthis Regulation No.3).

The following sources are exempt from the requirement to file AirPollutant Emission Notices because by themselves, orcumulatively 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 ofany criteria pol1utant ofless than one ton per year, and individual emission points in attainment areas having uncontrolled actual emissions of any criteria pollutant ofless than two tons per year, and each individual emission point with uncontrolled actual emissions oflead less than one hundred pounds per year, regardless ofwhere the source is located. II.D.I.b. Individual emission points ofnon-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 airpollutants generated by or released from otherprocesses or equipment. II.D.I.d. Fireplaces used for recreational purposes, inside oroutside. II.D.I.e. Fires and equipment used for noncommercial cooking offood for human consumption, or cooking offood 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 orembers. II.D.I.f. Safety flares used to indicate danger to the pUblic. Regulation No.3 Part A, Page 34


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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 orranches are not exempt from AirPollutant 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, orconstruction, 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 orindustrial facility, and research and development laboratories. Research and development activities that are ofa small pilot scale and that process less than ten thousand pounds oftest material per year; II.D.Ij.(iii) Small pilot scale research and development projects less than six months in duration with controlled actual emissions less than five hundredpounds ofany criteria pollutant or ten pounds ofany 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 offuel 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 poweringportable drilling rigs. 

# I (.; Regulation No.3 Part A, Page 35 

### I 

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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 permillion weight) amounts, approved by the Colorado Oil and Gas Conservation Commission and having uncontrolled emissions ofany pollutant ofless than five tons per year. Chemical storage tanks orcontainers that hold less than five hundred gallons, and that have an annual average daily throughput ofless 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. Openburning activities, except that all reporting and pennitting requirements that apply to such operations mustbe followed (see Regulation No. 9).+ Brazing, soldering, orwelding 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 offurnaces and kilns. This does not include subsequent operation ofsuch furnaces orkilns. Road and lot paving operations at commercial and industrial facilities, except that asphalt and cementbatch plants require 

### AirPollutant Emission Notices and permits, unless exempt under some othersection. Adhesive use that is not related to production. Fire training activities. Caulking operations that are not part ofa 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


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II.D.l.ee. Crude oil truck loading equipment at exploration and production sites where the loading rate does not exceed 10,000 gallons ofcrude oil per day averaged on an annual basis. Condensate truck loading equipment at exploration and production sites that splash fill less than 6750 barrels ofcondensate per year or that submerge fill less than 16308 barrels ofcondensate 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 ofsuch chemicals. This exemption does not apply to transfer ofchemicals from, to, orbetween such containers. II.D.I.nn. Architectural painting, roofcoating 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 ofodorous 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 ofRegulation 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



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II.D.I.uu. Oil production wastewater (produced watertanks), 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, orappurtenances. 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 ofabrasive 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 ofcapacity less than forty thousand gallons oflubricating oils or used lubricating oils. IlD.l.bbb. Venting ofcompressed natural gas, butane orpropane 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 orderto take this exemption. n.D.l.ddd. Crude oil storage tanks 

### with a capacity of40,000 gallons orless. 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 ofthe 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 ofthe 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



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II.D.l.fff.(ii)(D) An oiVwater mixture with a vaporpressure equal to or lowerthan that ofdiesel fuel (Reid Vapor Pressure of0.025 pounds per square inch absolute). II.D.I.ggg. Each individual piece offue] 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 offirst 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 orconcentrated bychemical or mechanical processes) from under ground mines or surface mines unless such source is a major source ofhazardous air pollutants under Part C ofthe Regulation No.3. n.D.l.ooo. The use ofpesticides, 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 ofemissions from mobile sources operating within a tunnel, garage, orbuilding. 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


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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 250hours 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 waterpipeline 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. ofthis regulation except certain nonroad engines subject to state-only airpollutant emission notice and pennitting requirements pursuant to Part A., 

### section I.B.40.c. Regulation No. 3 Part A, Page 40



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H.D.l.eeee. Any condensate storage tank with a production rate of730 barrels peryear 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)Ifan AirPollutant Emission Notice has not previously been filed for an existing condensate storage tank orcondensate 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 oroperator ofmore 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 remainderby March 31, 2003. 1I.D.l.eeee.(iii) The need to file APENs for condensate storage tanks at operations located downstream ofnatural gas exploration and production facilities, but not including natural gas processing plants, shall be evaluated in light ofa 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 maybe established for either a particular company's operations, and, ifsupported, for natural gas gathering operations generally. Inthe 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. AirPollutant 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. Anyperson 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


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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) Forpennit 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 orrecord 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 maybe 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 ofrequested exemptions to the commission for adoption and the U.S. EPA for approval, along with the division's preliminary detennination ofthe appropriateness ofeach 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 mayestimate 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 EmissionNotice 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 

### AirPollutant 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, orbest engineeringjudgment. Such facilities may file an Air Pollutant Emission Notice or revised Air Pollutant Emission Notice on an annual basis byApril 30 ofthe year following the project's conclusion for each project that is not exempt under section Ii.D.l.i., irrespective ofsection II.C., herein (revised Air Pollutant Emission Notice requirements), such Air Pollutant EmissionNotices shall be filed on a perproject basis and shall be based on controlled actual emissions. Regulation No.3 PartA, Page 42



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III. ADMINISTRATIVE PERMIT AMENDMENT PROCEDURES m.A An application for an administrative pennit amendment shall be prepared on forms supplied bythe division. lILB. Within sixty calendar days after receipt ofa 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 permitproviding 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 permitrevisions made pursuant to administrative amendment procedures. III.F. Administrative permit amendments for purposes ofthe acid rain portion ofa 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 bythe source in its application for a permit and approved bythe division, provided the permit contains terms and conditions that: IV.At. Require the source, contemporaneouslywith 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 ofeach 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



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If

### allowed by the applicable state implementation plan, no pennitrevision shall be required under any approved economic incentives, marketable pennits, emissions trading and other similar programs orprocesses 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 ifapproved 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 pennitrevision 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. Thepennit 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 pennitrevision; N .C.4. The source shall comply with all other applicable requirements. 

### N.C.5. The source shall provide a minimum ofseven 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 ofthe 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. Thepennit shield shall extend to all operating pennit terms and conditions that allow such increases and decreases in emissions.
Regulation No.3 Part A, Page44



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IV.C.6. A source shall be allowed to make such change proposed in its notice on the day following the last day ofthe 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 Of Emission Reduction Credits OffsetAndNetting Transactions V.A. Purpose This section establishesprocedures for the recording of certifiedemissions reductions and for their use in emission credit transactions. Theseprocedures are intendedto: V.A.I. Promote economic development and lower the cost of meetingpollution control requirements while assuring ambient airqualityprogress and continuedairquality maintenance; and V.A.2. Encourage development of innovativepollution controlmethods and technologies. V.A.3. Theportions of Regulation No.3, PartA, section V printedin italics are repealedand shall no longer bepart of this regulation in accordance with the following sentence: Pursuant to Colorado RevisedStatutes section 24-4-103(5), the commission designates the effective date of the repeal of the italicized portions of Regulation No. 3, PartA. section Vas the date on which the US. EPApromulgates afinal rule adopting the revisions to section Vof this regulation (and commission Regulation No. 5) as apermanentpart of the state implementationplan. V.B. Scope This section applies to anypollutant regulated under the ColoradoAir Quality ControlAct orthe regulationspromulgatedthereunder in allattainment and nonattainment areas of the state. This section does notapply to emissions trading underpermit caps in section IV.

## c., of PartA. V.

### C. Definitions V.C.1. Alternative compliance methods means the use of emissions reductions credits to meet emissions control requirements in lieu of an applicable control technique guidance methodor reasonably available control technology. V.C.2. Bubble lets existingsources (or groups of sources) increase emissions at one operation in exchange for compensating extra decreases in emissions at another operation. The net result must beequivalent to or betterthan wouldhave been accomplishedusing conventionalsource-specific controls. V.C.3. Certified emissions reduction means a reduction in emissions below the baseline, that has been certifiedby the division in accordance with the criteria of section V.E., and that may then be used in an emission credit transaction. V.CA. Criteriapollutant means an airpollutant for which a NationalAmbientAir Quality Standard has beenpromulgated. Regulation No.3 Part A, Page 4S



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V.C.S. Emission credit transaction means the use of certifiedemission reduction credits in a bubble, netting or offset transaction or as an alternative compliance method. V.C.6. Netting is designed to exempt modifications of existing majorsources from new source review requirements if the resultant impact does not exceedany of the Significant valuesfound in the definition of significant in section IB.59., of PartA. V.C.7. Non-inventoried source means any source that has not been recordedon the division:S emission inventorysystem. V.C.8. Offset means a transaction in which a certified emissions reduction is usedeither to avoid causing a violation of an increment in an attainment area, to meet the requirements of section IV.D.2.a. (iii). Part B. regarding the maintenance of reasonable furtherprogress towards attainment of theNationalAmbientAir Quality Standards in nonattainment areas, or to avoidcontributing to visibility or other air quality related values impairment in a Class I area. V.C.9. Registrymeans the division:S record of the certification and use of emissions reductions. V.C.lO. Surplus means emission reductions not required by current regulations, relied onfor state implementationplanplanningpurposes, andnot used to meet any other regulatory requirement. V.C.II. Open Dust meanssolidorother air borneparticulate matter (excludingparticulates produceddirectly during combustion) resultingfrom naturalforces or from surface use ordisturbance, including, but not limited to, all dust from agriculture, construction.forestry. unpaved roads. mining. exploration. orsimilaractivities in which earth is eithermoved, stored. transported or redistributed. V.C.12. Baseline emissions are equal to theproduct of the: 

### V.Cl2.a. Emission Rate (ER), specified in tenns of mass emissionper unit of production or throughput (e.g., pounds sulfur dioxidepermillion British thermal units orpounds of volatile organic compoundsper weight of solids applied); V.C12.b. Average hourly capacity utilization (CU) e.g., millions of British thermal units perhour or weight of solids appliedperhour; and 

### V.Cl2.c. Number of hours of operation (II) during the relevant timeperiod i.e.• baseline emissions = ERx CUx H. Net baseline emissions for a bubble are the sum of the baseline emissions of allsources involved in the trade. V.D. Procedure for Certification of Emissions Reductions andApproval of Transactions 

### V.D.l. The owner or operator of a source may request the division to certify any emissions reduction anticipated to occur after the effective date of this section.provided the owneror operator files his applicationprior to the occurrence of the reduction. ata time atwhich the source is emitting the baseline emissions of the subject pollutant. 

### Regulation No.3 Part A, 

### Page 46



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Sources that shutdownprior to the application to bank or trade have zero emissions, andtherefore no credit is available. V.D.2. Upon receivingan application for certification, the division may require the applicant 10submit all data and calculations necessary to verify the baseline emissions or the reduction of emissions below the base level including, but not limited to, documentation of operating hours and inputs. The division mayalso require the applicant toperform source tests to establish the baseline emissions or the reduction of emissions below the baseline emissions. The division shall not certify reductions anticipated to occurafter the effective date of this regulation until the reductions have occurredand been verified. V.D.3. The division shall maintain an emissions reduction registry, in which it shallmaintain a record of all certifiedemissions reductions, andof the use of certified emissions reductions in emission credit transactions. The information contained in such registryshall include the name andaddress of the owner oroperator of the source creating the emissions reduction, the location of thesource, itsstack parameters, the temperature andvelocity of itsplume,particlesize, the existence of anyhazardous pollutants, daily andseasonal emission rates, andany other data that might reasonably be necessary to evaluate future use. V.D.4. 

## If the division determines that certification should begranted itshall modify the permit of the applicant toprovide that the allowable emissions are equal to the level of current emissions utilized in the calculation of the emissions reduction. The owner or operator of a source not required to obtain apermit byprovisions of law other than this section shall be required to apply for andaccept apermit as a condition of obtaining a certified emissions reduction. Suchpermits shall contain only those conditions necessary to ensure the enforcement of the emissions limitations applicable to the source as a result of certification of its emissions reduction. V.D.S. The amount of the emissions reduction to be certifiedand entered in the registry shall be calculatedas follows: "v'D.5.a. For any emissions reduction that has occurred in an attainment area, the amount of the certifiedemissions reduction shall be 90percent of the amount by which emissions have been reduced below the baseline emissions. 

### "V.D.

### 5.b. Forany emissions reduction that has occurred in a nonattainment area, the amount of the certifiedemission reduction shall be 80percent of the amount bywhich emissions have been reduced below the baseline emissions. "v'D.5.c. For bubbles in nonattainment areas that need, but lack, approved demonstrations of attainment, i.e., areas with unapprovedstate implementationplans, a greater discount may be taken. This discount will be basedon the area's total baseline emissions, the target emissions for attainment, the emissions for theprojectedattainmentyearand the reductions needed to achieve attainment. These values aredynamic andso the discount value may change from yeartoyear but will never be less than 20percent. These transactions will require a state implementationplan revision. 

### Regulation No.3 Part A, Page 47


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V.D.6.

V.D.7.

V.D.8.

V.D.9. An application maybe filed for approval of the use of a certifiedemissions reduction in an emissions credit transaction simultaneously with the filing of a certification application, orwithin sevenyears after certification has been granted. 

## If the transaction would require the modification of permits heldbymore than oneperson, the application shallbe jointlysubmitted by allpotentially affectedpermittees. The commission shalldetermine whether to approve all bubble andalternative compliance methodtransactions, or any offset transactions that, pursuant to section V.H., require a state implementationplan revision. The division shalldetermine whether to approve all nettingtransactions, orany offset transactions for which no state implementationplan revision is required. The commission may approve the use of a certified emissions reduction credit as an alternative compliance method in lieu of a specifiedcontrol technique guidance methodor reasonable available control technology. Applications for certification of emissions reductions andapproval of transactions shall bemade on formsprovided by the division. Anysource applying for approval of an alternative compliance method transaction shallsubmit to the division a constructionpermitapplication in accordance with RegulationNo.3, Part B, section lV.Jor the construction ormodification, reflecting thesource andproposeduse of the emissions credit. The application shallcontain information sufficient to demonstrate that the criteria set forth in section V.F. of this PartA are metas well as the criteriafor approval of the state implementationplan revision. The division shall review the application and prepare itspreliminary analysis in accordance with Regulation No.3, Part B, section lV.B. The source requesting approval for the transaction andthe state implementationplan revision shouldbegranted, andshall provide with itspetition, a copy of thepreliminary analysis of the division. The division shall notgrant initial approval of anysuch application until the commission has approved the transaction, the source has met the conditionsplacedon the transaction by the commission, andthe requirements of all otherapplicable regulations aremet. Where the owner oroperator of a source requests a state implementationplan revisionpursuant to this section 

# v., the commission shallset a hearing on the proposedrevision to beheld in accordance with theprocedures set forth in Colorado Revised Statutes section 

### 25-7-119. With respect to applications for certification of emissions reductions, or for approval of any netting transactions, or offset transactions within the division'sjurisdiction undersection V.H.2., the same time limitations for emissionpermits as found in Part B sectionIV-B., of this regulation shallapply. Applicants for certification of an emissions reduction, or for approval of anyemission credit transaction, shall be assessed fees for time spent bydivisionpersonnelin evaluatingsuch applications in accord with the criteria for assessment of emissions permit fees set forth in section VI

### C. Where more than oneperson applies for approval of a transaction, allsuchpersons shall be jointly liable for the fees assessed. Applicantsshall be responsible forpayingsuch fees regardless of whether the division approves ordenies an application. The costs of division review of any emissions modelingorother information necessary for the division to formulate Regulation No.3 Part A, Page 48



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recommendations to the commission regarding anyproposed emission credit transaction shall be included in the costs attributedto thepermit application for the source(s) seeking approval of the transaction andshall bepaid by the source regardless of whether the emission credit transaction is approved. 

### V.D.IO. The stateshall not utilize a certifiedemissions reduction in making demonstrations of attainment, or reasonable furtherprogress towardattainment of theNational AmbientAir Quality Standards, within seven years after the date of certification, orat any time afteran application for use of the certifiedemissions reduction in a transaction has been approved. Where no**appli~ation** has been filed for the approval of the use of a certifiedemissions reduction within sevenyears after certification was granted. thestate shallsubsequently utilize the reduction in making demonstrations of attainment, orreasonable furtherprogress towards attainment of the National AmbientAir Quality Standards. This seven-yearperiodshall be tolledduring any time in that there is apendingapplication before the division orthe commission for approval of a bubble. netting. or offset transaction based on the certified emissions reduction. 

### V.D.11. Applications for approval of transactions involving PMJO (fineparticulates for Prevention of Significant Deterioration increment consumption). sulfur dioxide, carbon monoxide, lead, andoxides of nitrogen (where visibility impacts are of concern). shall be subject to the following ambient air qualitymodeling requirements: V.D.11.a. De minimis: In general modeling is not required to determine the ambient equivalence of trades in which applicable net baseline emissions do not increase andin that the sum of the emissions increases, looking onlyat the increasing sources, 

### 15 tonsperyear for PMJ()' 40 tonsperyear for sulfur dioxide, 100 tonsperyear for carbon monoxide, 40 tonsperyear for nitrogen oxide (where visibility impacts are of concern), or 0.6 tonsperyear for lead, after applicable control requirements. Forpurposes of Prevention of Significant Deterioration any increase in PM]o shouldbemodeled. 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 sameimmediate vicinity (within 250meters) of each other; V.D.11.b.(iii) An increase in baseline emissions does not occurat the source with the lower effectiveplume height, as determined under the U.S. EPA approved anddivision acceptedguidelines, as interpreted in the Code of Federal Regulations Title 40, Subpart 52.343. V.D.11.b.(iv) No complex terrain is within the area of significant impact (see Figure 1) of the trade or50kilometers, whichever is less; 

### Regulation No.3 Part A, Page49


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V.D. ii.b. (v) Stacks with increasing baseline emissions are sufficiently tall to avoid possible downwash situations, as determined bygood engineering practice; V.D.ii.b.(vi) The trade does not involve open dust sources. V.D.ii.c. LevellI: Bubble trades thatare neitherDe minimis norLevelI may nevertheless be evaluated for approval basedon modeling to determine ambient equivalence limitedsolelyto the impacts of the 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 beforeandafter the trade will not cause a significant increase inpollutant 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 notpredict any increase in ambient concentrations in a Class I or CategoryI area. However, a bubble will not be approved underLeveillwhere evidence clearly indicates the bubble would create a new violation of an ambient standard orPrevention of Significant Deterioration increment orwoulddelay theplannedremoval of an existing violation. The change in concentration from the before-trade case to the after-trade case must, in general, bemodeled using refined models for each appropriate averaging time for the relevant national ambient airquality standards for each receptor, using the most recent full yearof meteorological data. Other techniques may be approved where sources show they equally wellprotect national ambient air quality standards, applicablePrevention of SignificantDeterioration increments, and visibility. For example, in limited circumstances conservative screening models may be acceptable in lieu of refined models. In such cases, use of a

fullyear of meteorological data maynot be necessary. Such screening models may be acceptable where: (A) thescreening model shows that all the emissions from the stack(s) with increasing emissions would notproduce exceedances of theLevelIIsignificance values; (B) the stack parameters at the stack(s) with increasing emissions do not change; and (C) the screening modelshows that the increase in emissions at the increasingstack(s) wouldnotproduce exceedances of these significant values. In determining significant impact for LevelIIbubble trades, the division will use the follOWing significance values to identify trades whose potentialambient impact neednot be further evaluated before approval: 8 micrograms/cubic meter (pglmJ)for any twenty-four hourperiod for 

### PMJO;

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4 microgramsicubicmeter (pg/mJ)for anyannual arithmetic mean for 

### PM/o; 13 microgramsicubic meter (pg/m3)for any twenty-four hourperiod for sulfurdioxide; 46 microgramsicubic meter (pg/mJ)for any three hourperiod forsulfur dioxide; 3 micrograms/cubic meter (pg/mJ)fo.,.any annualperiod for sulfur dioxide; 575 micrograms/cubic meier (pg/m3)for any eight hourperiod for carbon monoxide; 2,300 microgramsicubic meter (pglm3 )for anyone hourperiod for carbon monoxide; 0.1 micrograms/cubic meter (pg/m3)for any three monthperiod for lead. Except that: V.D.II.c.(iii)(A) For ojJset transactions, significant impact shall be determined by the values found in the table of significant values in section lV.D.3.d.(ii} of this regulation, PartB. 

### V.D.ll.c.(iii)(B) Onlyprocess 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

### III full dispersion modeling considering allsources affecting the trade's area of impact is required to determine ambient equivalence 

### if applicable net baseline emissions will increase as a result of the trade, or 

### if the trade cannot meet criteria for approval underDeMinimis, Levellor Levell!. V.D.lI.e. ApprovedModels: Modeling: Only US. EPA-approvedmodels may be used in banking transactions. Use of non-guideline models will beallowed once they have been approvedaccording to the requirements of section VIl!.A.I., PartA, of this regulation. 

### V.D.12. Following the certification of an emissions reduction, 

### if the division determines that certification was granted on the basis offraudor materialmisstatement or omission, the division shall revoke certification of the reduction. Certification shall be revoked 

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onlyafter the owners oroperators of the affectedsources have received notice and, 

### if requested, a hearing has been conducted. In such cases the division shall also modifY thepermit of the source that has usedthe emissions reduction, so that thepermit will contain all conditions that wouldhave applied 

### if the emissions reduction hadnot been certified initially. V.E. Criteria for Certification of Emissions 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 besurplus. Surplus reductions are those below the baseline emissions. The baseline emissions shall bedetermined as follows: V.E.l.a. In attainment areas, the baseline emissions shall bea source's actual emissions of the subjectpollutant, orallowable emissions whichever is lower, for the three baseline factors. ReasonablyAvailable Control Technology shall be as set forth in the State implementationplan for the source. Where ReasonablyAvailable Control Technology has not been determined in the state implementationplan for the source, it shall be determined by the division. V.E.1.b. In nonattainment areas for which there is a demonstration of attainment of the NationalAmbientAir Quality Standards approved by the U.S. EPA, the baseline emissions shall be actual emissions,provided, however, the baseline emissions shallnot exceed reasonably available control technology as defined in the state implementationplan or the level of emissions usedby thestate in makinga demonstration of attainment. V.E.l.c. In nonattainment areas for which there is not a demonstration of attainment of NationalAmbientAir QualityStandards approvedbythe U.S. EPA, the baseline emissions shall be the lower oll) the actual emissions, 2) allowable emissions under the state implementationplan or 3) allowable emissions 

### if the source is subject to ReasonablyAvailable Control Technology. V.E.l.d. Emission rate, capacity utilization andhours of operation must be used to computepre-trade and post-trade emission levels. Baseline must be established on an annual basis and for all other averagingperiods consistent with the relevantNationalAmbientAir Quality Standards andPrevention of SignificantDeterioration increments. V.E.2. No emissions reduction shall be certified 

### if the division has relied upon the occurrence of the reduction in demonstrating attainment of the NationalAmbientAir Quality Standards orreasonable furtherprogress towards attainment, or in establishing a baseline concentration. V.E.3. Each certified reduction of apollutant's emissions shall be quantified in the same unit of measurement used in the standardor regulation applicable to thepollutant. Regulation No.3 Part A. Page 52



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V.E.4. In attainment areas, reductions at majorstationarysources that commenced construction afterJanuary 1. 1975 maybe able to qualify for credit whether such reductions occurred before orafter the Prevention of Significant Deterioration baseline triggering date. Other emission reductions (e.g.• at minorsources) cannot qualify for credit where the Prevention of Significant Deterioration baseline date is orhas been triggeredandsuch reductions occurredprior to the triggerdate, unless these reductions are notassumed in the Prevention of SignificantDeterioration baselines. Since bankedemission reduction credits must be considered to be "In the Air" for allplanningpurposes, 

### if the baseline date is triggered before bankedcredits are actually used. such banked credits will be consideredaspart ofihe baseline and will not consume increment when used in an emissions trade. In attainment areas where the Prevention of Significant Deterioration baseline has not been triggeredas of the date thepermittingauthority takes relevant final action on the trading transaction. reductions below current state implementationplan or permit limits generallymay be used without special restrictions in bubble orbanking transactions. providedthey are otherwise creditable andthere is assurance that NationalAmbientAir Quality Standards will not be violateddue to anypotential increase in actual emissions. However. reductions at sources other than major stationarysources on which construction commenced beforeJanuary 1. 1975maynot be usedto balance increases at suchpre-1975 majorsources. V.E.s. Emission reductions achievedby shutting down an existing source orcurtailing production or operating hours be/ow baseline levels may begenerally credited 

### if such reductions arepermanent. quantifiable. and federally enforceable, and 

### if the area has an 

# u.s. EPA-approved attainmentplan. In addition, the shutdown or curtailment is creditable only 

### if it occurred on orafter the date specified for thispurpose in the plan, and 

### if such date is on or after the date of the most recent emissions inventory used in theplan's demonstration of attainment. Where theplan does not specifya cutoff date for shutdown credits. the date of the most recent emissions inventory or attainment demonstration. as the case may be, shallapply. However, in no event may credit begiven for shutdowns that occurred prior toAugust 7, 1977. Forpurposes of this section apermittingauthority may choose to consider apriorshutdown or curtailment to have occurredafter the date of its most recent emissions inventory, 

### if the inventory explicitly includcs as current existing emissions the emissions from such previouslyshutdown or curtailcdsourccs. V.E.5.a. Such reductions may be credited in the absence of an approvedattainment demonstration only 

### if the shutdown or curtailment occurred on orafter the date the new sourccpermit application isfiled, or, 

### if the applicant can establish that theproposednewsource is a replacement for theshutdown or curtailedsource. and thc cutoff dateprovisions of section 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 andnewsource reviewpermitting. V.E.7. Reductions down to compliance levels may not qualify for emission reduction credit.

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V.E.8.

V.E.9.

V.F.

V.F.!.

V.F.2.

V.F.3.

V.FA.

V.F.5.

V.F.6. 

## If an existingsource commits to switch to a cleaner fuel atsome future date, emission reduction credit is allowable only 

## if apermit is conditionedto require use of a specifiedalternative controlmeasure that wouldachieve the same degree of emission reduction shouldthe sourceswitch back to a dirtier fuel atsome later date. The division will ensure thatadequate long-term supplies of the new fuel are available beforegranting the reduction credit. Emission reductions otherwise required by the FederalActshallnot be creditable as emission reductions. Incidental emission reductions that are not otherwise required by the FederalActare creditable as emission reductions 

## if such emission reductions meet the requirements of section IV.D.2., PartB. 

## if applicable andthis section V. Criteria forApproval of all Transactions The use of an emissions reduction in an emission credit transaction shall be approved only 

## if it meets the following criteria: The transaction shall involve likepollutants. For toxic or volatile organic compound pollutants. the trade should involve the same degrees of toxicity orphotochemical reactivity orelsea greater reduction may be required. New ormodifiedmajor sources of a PM}oprecursor can only obtain offsets from emissions reductions in that samePMJOprecursor or in PMJ(}. New ormodifiedmajorsources of PM}o can only obtain offsets from emissions reductions in PM u). The offsets must begreaterthan one for oneand represent a netairquality benefit in the area thesource isproposing to locate ormodify. (See exception in section V.H.8.) No transaction shall be approved 

## if it will result in an increasedconcentration, at the point of maximum impact. of hazardous airpollutants. Where a significant fraction of a criteriapollutantstream has been listed as hazardous by the commission underRegulation No.8 or the U.s. EPA under United States Code. Title 42. Section 7412 but has notyet been regulated, emissions containing thatpollutant from sources within two hundred and fifty meters of each othermayonly be tradedagainst each other on a greater than one for one basis that assures a netdecrease in emissions of the hazardouspollutant. Hazardous andnon-hazardous emissions of the same criteriapollutant may be traded against each other. providedthe total emissions containing the hazardouspollutant from the sources involved in the transaction are required to decrease as a result of the transaction. No transaction may be approvedthat is inconsistent with anystandardestablishedby the FederalAct, the stateAct or the regulationspromulgated under either, orto circumventNew Source Performance Standards requirements orBestAvailable Control Technology although the commission may approve a transaction using a certifiedemissions reduction credit in lieu of a specified control technique guidance methodorreasonably available control technology. No transaction shallbe 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 occurredandthe source using the emissions reductions are in thesame nonattainment area orPrevention of Significant Deterioration baseline area; or V.F.6.b. The emissions reduction is to be usedas an offset to meet the requirements of section IV.D.2.a.(iii), Part B, andthe conditions of that section are met for the 

# I 

# I f

use of an 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 newsources such as New Source Performance Standards, Best Available Control Technology, orLowestAchievable Emission Rate, although the commission mayapprove a transaction using a certified emissions reduction credit in lieu of a specified control technique guidance method or reasonably available control technology. V.F.8. Trades Involving Open Dust: Sources of particulate emissions may be approved through case-by-case state implementationplan revisions basedon modeled demonstrations of ambient equivalence. Sourcesproposingsuch trades must commit, aspart of the trade's approval, to: V.F.8.a. Undertake apost-approval monitoringprogram to evaluate the impact of their control efforts. and V.F.8.b. Make further enforceable reductions 

## if post-trade monitoring indicates initial open dust controls do notproduce thepredictedair quality results. V.F.9. The federal landmanagermust be notified 

### if an emissions trade will takeplacewithin onehundredkilometers of a Prevention of Significant Deterioration Class I area. Notification must occur early enough in the reviewprocess to allow at least thirty days for the submittal of comments before the trade will be approved by the reviewing authority. Where a bubble within fifty kilometers of a Prevention of Significant Deterioration Class I area is submittedas a case-by-case state implementationplan revision, the division may call for additional technicalsupport, beyondthe applicable requirements of the modelingscreen 

### if deemed necessary toprotect air quality in the Class I area. V.F.10. Effect on Trades of Subsequently-Discovered CleanAirActProblems: Revisitation Considerations

- 

## If ambient violations arediscovered in an area where the division hasapproveda trade, or 

### if other violations of the act are discovered in that area, sources in the trade should be aware that theyarepotentially subject to requirements for additional emission reductions,just as are all othersources in the area. V.F.11. For volatile organic compound andnitrogen oxide trades,pound forpoundtrades will be consideredequal in ambient effect where allsources involved in the trade are in thesamecontrolstrategy demonstration area (nonattainment area) or 

### if outside that area are sufficiently close to showan equal effect. 

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V.F.I2. For volatile organic compound trades involving surface coating, the emissions must be calculated on a solids-appliedbasis andshouldspecify the maximum timeperiod over which the emissions may be averaged, not to exceedtwenty-four hours. 

### V.F.l3. Thefollowing trades require a state implementationplan revision: V.F.13.a. PMJO, sulfurdioxide. carbon monoxide or leadtrades requiring full scale dispersion modeling underLevelIll; V.F.J3.b. PM/O. sulfurdioxide, carbon monoxide or:. leadtrades where.complex terrain is within the area of thesource's significant impact or fifty kilometers, whichever is less, unless the trade does not result in a modification of effective stackheights andthe trade otherwise qualifies as De mimimis orLevelL The area of significant impact can bedetermined from Figure 

### 1; V.F.13.c. Open Dust Trades; V.F.13.d. LevelII trades involvingprocess fugitive PM/O, sulfurdioxide, carbon monoxide or leademissions not discharged through stacks; V.F.J3.e. Trades involvingEmission Reduction Credits from mobile sources (SEE section V.E.7.); V.F.J3.j Trades involvingsources that aresubject of a notice of violation (NO

## VJ, noncompliancepenaltyaction or the filing of ajudicial complaint; V.F13.g. Interstate trades; V.F.13.h. Volatile organic compound trades with averaging times longer than twentyfour hours; V.FJ3.i. Trades involving workpractice and equipment standards; V.F.J3J. Trades involving negotiatedReasonablyAvailable Control Technology baselines; V.F.J3.k. Trades affecting areas that needbut lackapproveddemonstrations of attainment. V.FJ3.l. Emission credit transactions usedas an alternative compliance method. 

### V.F.I4. No emission credit transaction shall be approved unless the terms of the transaction are incorporated inpermits applicable to the originating (as applicable) and receiving emissions sources. 

### V.F.15. Emission credit transactions that requirea state implementationplan revision shall be considered by the commission on a case-by-case basis. The source requesting approval of the transaction has the burden of demonstrating that all the criteria of this section V.F., are met andof demonstrating that allapplicable requirements for approval of the state implementationplan revision has been met. 

### Regulation No.3 Part A. Page 56



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### 25 CR 12, 12-02 Page 57 All Rights Reserved



### v.G. Bubble Transactions V.G.1. An owner or operator of an existing source mayapply to the commissionfor approval of a state implementationplan 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 of section V.F., and the division has first certifiedan emissions reduction at a facility or operation included in the bubble. V.G.3. Aspart of the certificationprocess, the amount of allowable emissions shall be reducedat the facility or operation where the emissions reduction has occurred in accord with section V.D.5. Aspart of the 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 of the subject certified emissions reduction. V.G.4. Aspart of the 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. 

## If the source is located in a nonattainment area, the area must have received an attainment extensionfrom the U.S. EPA beyondDecember 31,1982. V.GA.b. The applicant must demonstrate to the satisfaction of the commission that reasonable furtherprogress toward the attainment of theNationalAmbient Air QualityStandards under the state implementationplan shall be maintained either by: V. GA.b.(i) Achievement of emissions reductions earlier than otherwise required by certain facilities oroperations covered by the bubble; or V. GA.b.(ii) Temporary use of a certified emissions reduction to assure reasonable furtherprogress towardattainment of theNationalAmbientAir Quality Standards. V.G.5. 

## If subsequent to the approval of a bubble, the commissionpromulgates new regulations oramends existing regulations applicable to a source for which the bubble has been approved, the sourceshall be required to meet the new or amended regulations, irrespective of the bubble, by either further reducing emissions or using certified emissions reductions as offsets. V.G.6. Bubble applications in areas that require but lackapproved demonstrations of attainment, i.e., non-approvedstate implementationplans, must be accompanied by assurances of consistency with ambientprogress and air qualityplanninggoals specified below:

Regulation No.3 Part A, Page 57



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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 of section VE.; VG.6.b. The bubble emission limits will be included in any newstate 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 implementationplan and intends to adhere to the schedule for such development (including dates for completion of emission inventory and subsequent increments of progress) stated in or with the letter formally submitting the bubble. V.G.7. Bubbles shouldnot increase applicable net baseline emissions. Ordinarily, bubbles maynot result in an increase in applicable net baseline emissions. Such a bubble would require a case-by-case state implementationplan revision, and may only be approved based upon a combinedLevelIIIandLevelIImodeling analysis (i.e., an analysis sufficient to show that allapplicable requirements of afullLevelIIIanalysis are met, and that the bubble wouldnot result in any exceedance of significance values specified for a LevelIIanalysis at any receptor for any averaging time specified in an applicable ambient air quality standard). V.G.8. Bubbles shouldnot increase emissions of hazardous ortoxic airpollutants. V.H. Offset Transactions V.H.I. The owner or operator of a source at which an emissions reduction has occurred, and the owner oroperator of anothersource who wishes to use the emissions reduction as an offset, may apply for approval of an offset transaction. In such transactions certifiedemissions reductions may be applied to avoid causing a violation of an increment in an attainment area, orto meet the requirements of section IVD.2.a.(iii), Part B. A certifiedemissions reduction maynot be used as an offset for thepurpose of complying with an existing applicable emissions control regulation, except for ReasonablyAvailable Control Technology. V.H.2. The division shalldetermine whether to approve an offset transaction in the following cases: VH.2.a. Where the source using the emissions reduction wouldbe allowed to increase emissions by less than one hundred tonsperyear. VH.2.b. Where the transaction involves volatile organic compounds or oxides of nitrogen emissions.

Regulation No.3 Part A, Page 58



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### 25 CR 12, 12-02 Page 59 All Rights Reserved

V.H.2.c. Where the transaction involves sulfur dioxide, PMJO orcarbon monoxide emissions, andall sources involved in the transaction are within two hundred and fifty meters of one another. V.H.3. Anyproposed offtet transaction, other than those referred to in section V.H.2., shall be treatedas a request to the commission for a state implementationplan revision. V.H.4. Sources of PMJOprecursors, sulfur dioxide, nitrogen oxide and carbon monoxide must seek offtets within reasonably closeproximity. Sources of nitrogen oxideand volatile organic compounds mayseek offtets oVe1' a greaterarea. However,for widely dispersed andvolatile organic compoundtrades, a higher offtetmaybe required. V.H.5. lfthe applicant has used his best efforts in seeking the required emission offiets but was unsuccessful, the source maypetition for use of someportion of growth allowance. Thepetition muststate the emission increase will not interfere with Reasonably Further Progress and thepetitioner is willing to enter into an enforceableprogram toprovide the required emission offiet atsome future time. V.H.6. In the absence of an approved attainment demonstration. bankedEmission Reduction Credits from shutdowns orcurtailments may be used for offiets only 

## if the criteria stated in section V.E.5.b., of Regulation, PartA. are met. 

### V.H.7. In nonattainment areas with approveddemonstrations, bankedEmission Reduction Credits may be used for offtets in any tradeprovided the criteria stated in section V.E.5.a., PartA, of this 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 basisprovided that the applicant demonstrates, on the basis of

# u.s. EPA-approvedmethods wherepossible, that the emissions increases from the new ormodifiedsource will not cause or contribute to a violation of an ambient air quality standard. A source'spermit application that includes such an interpollutant offtetproposalshallnot beapproved by the division until there has been an opportunity forpublic hearing on theproposed emissions trade anduntil written approval has been received from the U.S. EPA. V.I. Netting Transactions V.I. 1. Netting mayexempt modifications of existingmajorsources from certainpre­ constructionpermit requirements under newsource review, so long as there is no significant net emission increase, as net emissions increase isdefined in section 

# t I.B.3

### 7., of this regulation. Bynetting out, the modification is notconsideredmajor and therefore notsubject topre-constructionpermit requirements for major 

# t modifications as follows: \ f. V.1.1.a. Section IV.D.3., Part B,forprevention of significant deterioration; V.I.l.b. Visibility analysis; and Regulation No.3 Part A, Page 59



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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 shallgrant such an exemption if the 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 of the certified emissions reduction, and the amount of newpollutants to be emitted from the new ormodified facility, does not constitute a significant increase of pollutants. V.I.3. An increase of pollutants shall be consideredsignificant ifit equals or exceeds the amounts specified in the definition of Significant iff PartA. 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 payfees as set forth in the following sections. Such fees shall be charged to recover the direct and indirect costs incurred bythe 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 thirtydays 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 partiallydetennined 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. Thepartial 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 othercosts as are required for the processing, issuance, and administration ofthe pennit.

Regulation No. 3 Part A, Page 60



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### 25 CR 12, 12-02 Page 61 All Rights Reserved

VI.B.4. Effective July 1, 1992 the hourlybilling shall be as set forth in the fee schedule ofthis section. VI.B.5. Ifthe 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 ofthe 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 ofthe 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 ofthe 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 ofan air pollution source required to file an AirPollutant Emission Notice shall pay an annual nonrefundable fee as set forth in the fee schedule ofthis section. VI.C.3. In no event shall an owner or operator ofa source paymore 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 orpennit application, or SUbmitting reports pursuant to Regulation No.3, Part Regulation No.3 Part A, Page 61



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C, sections V.C.6., orV.C.7., may request that information contained in such an 

### Air Pollutant Emission Notice, permit application, orreport relating to secret processes or methods ofmanufacture orproduction 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, orreport 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 ofestablishing that the information relates to secret processes or methods of manufacture orproduction is on the claimant. Emission data, as defined in Colorado Revised Statutes section 25-7-103( 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. Ifthe division determines that information requested to be kept confidential is not entitled to confidential treatment, it shall provide written notice ofthis determination at least three working days priorto making such information available to the public. VII.C. A request for confidential treatment ofinformation ordata submitted to the division shall be deemed a limited waiverby the applicant ofthe 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 ofambient concentrations required under this Regulation No.3 shall be based on the applicable air quality models, databases, and other requirements generally approved byU.S. EPA and specifically approved bythe division. Ifa non-U.S. EPA approved model, such as a wind tunnel study, is proposed, the nature and requirements ofsuch a model shouldbe 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 withU.S. EPA accepted procedures as approved bythe division.

Regulation No.3 Part A, Page 62



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VIII.B.2. An owner oroperator 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 ofsetting an emission limitation and calculating the air quality impact ofa 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 ofgood engineering practice; or VIII.e.2. Any other dispersion technique except that the provisions ofthis section VIII.e., shall not applyto stack heights in existence ordispersion 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, orcaused to begin. a continuous program ofphysical on-site construction ofthe 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 owneroroperator, to undertake a program ofconstruction ofthe stack to be completed in a reasonable time. VIII.D.2. Dispersion Technique means any technique that attempts to affect the concentration ofa pollutant in the ambient 

### air by using that portion ofa stack that exceeds good engineering practice stack. height. \,at)ing the rate ofemission ofa pollutant according to atmospheric conditions or ambient concentrations ofthat pollutant, orby 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; orother selective handling ofexhaust gas streams so as to increase the exhaust gas plwne rise. The preceding sentence does not include: VIII.D.2.a. The reheating ofa gas stream, following use ofa 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



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VIII.D.2.b. The merging ofexhaust 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 ofa change in operation at the facility that includes the installation ofpollution controls and is accompanied by a net reduction in the allowable emissions ofa pollutant. This exclusion from the definition ofdispersion techniques shall apply only to the emission limitation for thepollutant affected by such change in operation; or VIII.D.2.b.(iii)Before July 8, 1985, such merging was part ofa change in operation at the facility that included the installation ofemissions 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 priorto the merging, the reviewing agency shall presume that merging was significantly motivated byan intent to gain emissions credit for greater dispersion. Absent a demonstration by the source owner oroperator that merging was not significantly motivated by such intent, the reviewing agency shall deny credit for the effects ofsuch 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 onresidential woodburning and open burning; or VllI.D.2.e. Techniques that increase final exhaust gas plume rise where the resulting allowable emissions ofsulfur 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-constructionpermits 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 ofnearby structure(s) measured from the ground level elevation at the base ofthe stack; Regulation No.3 Part A, Page 64



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VIII.D.3.c.(iii)L 

### =lesser dimension (height orprojected width) ofnearby 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 ofany air pollutant as a result ofatmospheric downwash, wakes, or eddy effects created bythe source itself, structures, or terrain obstacles. VIII.DA. Nearby as applied to good engineering practice is: VIII.DA.a. For purposes ofapplying the formulae provided in sections VIII.D.3.b., and VIII.D.3.c., in the definition ofgood 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 ofgood 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 ofup 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 ofthe good engineeringpractice stack height determine bythe formula ortwenty-six meters, whicheveris greater. VIII.D.S. Excessive concentrations for the purpose ofdetermining 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 ofsignificant 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 ofsuch downwash, wakes, or eddy effects and greater than a prevention ofsignificant deterioration increment. The allowable emission rate to be used in making demonstrations shall beprescribed by the new sourceperformance standard that is applicable to the source category unless the owner oroperator 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 oroperator; Regulation No.3 Part A, Page 65



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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 orpart to downwash, wakes oreddy 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 ofa 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 ofa field study or fluid model to verify good engineering practice stack height; for sources seeking stack height credit afterNovember 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 bythe 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.

Regulation No.3 PartA, Page 66



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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. GENERALREQUIREMENTS FOR CONSTRUCTION PERMITS I1I.A. General Considerations Ill.A.t. Except where specificalJy authorizedby the tenns ofthis Regulation No.3, no person shall commence construction ofany stationary source ormodification ofa 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 longerrequires suchpermit, in that case the pennit canbe 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 AirPoJIutant 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 ofoperation or other requested permit conditions in orderto 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 orpursues any right ofappeal or other available alternative. Fordetails regardingpennits to limit the potential to emit hazardous airpollutants 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 

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III.A.S.c. The source is subject to Federal Maximum Achievable Control Technology or GenerallyAvailable 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 overrequirements in this regulation. IILA.6. Owners or operators ofsources that have valid operating permits in accordance with Part C ofthis regulation may construct ormodify such source without obtaining a construction permit prior to construction ormodification, 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, orXII., 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 mayrequest to obtain such limits in a construction permit. III.B. Transfer orAssignment ofOwnership Iftransfer or assignment ofownership or operation ofan 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 changeis contemplated that might constitute a new ormodified air pollution source. 

### Inno event shall the new owner or operator ofa source that was subject to the requirements ofthese regulations prior to the transfer or assignment berelieved ofthe obligation to comply with such requirements byreason ofa transfer. Such transfers are subject to all applicable permit processing and inspection fees. Ifa company is changing its name only, the owner or operator shall applyto 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. Ifall other procedures and information as stated in the last submitted AirPollutant 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 ofownership ofa source shaH be complete until a written agreement containing a specific date for transfer ofpermit, responsibility, coverage and liabilitybetween the current and new permittee is received by the division. Regulation NO.3 Part B, Page 68



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III.C. Portable Sources A permitted portable source (e.g., asphalt plants, crushers, etc.) shall have its permit numberpermanently 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 ofthe 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), orNonattainment 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., ofPart 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) Powerportable 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 ofless 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 ofless 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



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III.D.I.e. Each individual piece offuel 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 ofproduct material peryear. A fugitive dust control plan is required for such sources. Crushers, screens and otherprocessing equipment activities-are not included in this exemption. 

### III.D.l.h. Composting piles, however, all odorrequirements 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 offood 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. Forpurposes ofcalculating 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 criteriapollutants with total facility uncontrolled actual emissions less (potential emissions at actual operatinghours) than the following amounts: III.D.3.a. Five tons per year volatile organic compounds. m.D.3.b. Five tons peryear PMIO. Regulation No.3 PartB, 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. Forpurposes 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 ofnew 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 ofall applicable requirements, and how the requirements will be met until a construction permit is issued. III.D.9. Anyperson 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 operatingpermit are not required to obtain a construction permit prior to commencing construction ormodification, 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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Prior to sUbmitting an application for a permit, an applicant may request and, ifso requested, the division shall grant, a pre-application meeting with the applicant. At such meeting, the division shall advise the applicant ofthe 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 ofan application or any supplemental information timely requested by the division, the division will give notice to the applicant ifand in what respect the application is incomplete. Ifthe division fails to notify an applicant that the application is incomplete within sixty calendar days ofreceipt ofthe original application orreceipt ofthe requested supplemental information, the application shall be deemed to havebeen complete as ofthe day ofreceipt bythe division ofthe application orthe last submitted supplemental information, whichever is later. IV.B.4. Except for applications for sources subject to the requirements ofsection IV.D.3., (prevention ofSignificant Deterioration), the division shall prepare its preliminary analysis within sixty calendar days after receipt ofa complete permit application. The preliminary analysis allows the division to determine whetherthe new source will, at date ofcommencement 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, ifany, the new source will have (as ofthe projected date ofcommencement ofoperation) on all areas (attainment, nonattainment, unclassifiable), within the probable area of influence ofthe proposed source. Ifso 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 ofthe region that the source will impact. Use ofany nonguideline model requires US. EPA approval under section 

### vrn.A., ofPart 

### 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 ofSignificant Deterioration) within twelve months ofreceipt ofa 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 ofanypollutant 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, ortwo hundred pounds per year oflead (for any area ofthe 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. Forhazardous 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 orGenerally 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 ofhazardous pollutants without regard to the duration ofthe operation ofsuch source unless specifically exempted below.

Regulation No.3 Part B,Page 73



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IV.C.2.b. Demolition projects, even ifasbestos 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 ormodification ofsources in accordance with the minor modification and operational flexibility provisions ofsections

## x., XI., and 

## xn., ofPart C, ofthis 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 ofemissions, anticipated public concern, and other relevant factors. IV.C.4. When public comment is required by section IV.C.i., orwhen 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 ofthe application to be published in a newspaper of general distribution in the area in which the proposedproject or activity is orwill be located, and by such othermeans 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 ofthe application, the preliminary analysis and the draft permit to be filed with the county clerk for each county in which the source is, orwill 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 airpol1utants, 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 ofthe final permit approval to theU.S. EPA Administrator for comment. For sources subject to the provisions ofsection IV.D.3., a copy ofall the materials the applicant submitted, and a copyor summary ofother materials, ifany, considered inmaking the preliminary analysis shall be filed with the county clerk for each county in which the source is orwill be located. In addition, for sources subject to theprovisions ofsection IV.D.3., a copyofthe written orelectronic notice of public comment shall be sent tothe applicant, the U.S. EPA Administrator, and to officials and agencies having cognizance over the location where theproposed construction would occur as fol1ows: any other state or local air pollution control agencies, the chiefexecutives ofthe city and countywhere 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 ormodification. The newspaper notice shall containthe information listed below in sections IV.C.4.a.

- IV.C.4.e. The division's web site notice shall contain all ofthe following information in IV.C.4.a.

- IV.C.4.f.: IV.C.4.a. The location and nature ofthe proposed project 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 considerpublic 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 bythe applicant and that a hearing bythe 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 ormodification; 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 ofthepreliminary ana1ysis, and whether the division should approve or deny the permit application; and IV.C.4.f.(v) The degree ofincrement consumption that is expected from the source or modification. IV.C.S. Within fifteen ca1endar days after the preparation ofthe 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), PartB, 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 bythe division to the commission, along with the complete permit application, the preliminary analysis, the draft permit, and anywritten comments received by the division within five days after the end ofthe thirty day comment period. At least thirty days priorto the date set for the public comment hearing. the notice ofpublic Regulation No.3 PartB, Page 7S



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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 sixtydays 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 ofnotice 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 thereofshall 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 airpollutants; 

### 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., PartB, 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 PartB, 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 ofthe 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 

# I

25-7-305 (Alternative Emission Reduction) that, ifadopted, would require the 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 ofthe 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 oroperator ofthe responsibility to comply fully with applicable provisions ofthe state implementation plan and any otherrequirements 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, orare 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 ofoperations, emission reductions (offsets) greaterthan one for one mustbe 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



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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 ofemissions. 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 nonattainment area; and IV.D.2.a.(iii)(B) The other area has an equal orhigher 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 nonattainment 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 ofalternative 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 ofits 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 bereviewedbythe 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 bythe 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" orother techniques approved bythe 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 byvirtue ofa 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 ofless than six months. N.D.2.c.(i)(C) Construction phases ofa new ormodified building, facility, structure, or installation. These may, at the discretion ofthe division, exceed a period ofone 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 ofvolatile organic compounds, carbon monoxide, nitrogen oxides, sulfur dioxide, and PMto in nonattainment areas N.D.2.d.(i) Forminor 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 anynew minor source with a potential to emit forty tons peryear ormore ofnitrogen oxides or sulfur dioxide, ora modification ofan existing minor source with a net emissions Regulation No.3 Part B, Page 79



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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 ofSignificant 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 anymajor 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 ormajor modification proposingto construct in any area in Colorado designated under section 107 (d) ofthe Federal Act as attairunent orunclassifiable 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 majormodification shall apply best available control technology for each pollutant regulated underthe Act orFederal 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) Forphased 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 timelymanner that will allow the owner oroperator to proceed with scheduled construction ofthe source. During the review, the owner oroperatorofthe applicable stationary source may be required to demonstrate the adequacy ofanyprevious determination ofbest available control technology for the source. IV.D.3.a.(ii) Source Impact Analysis. The owner oroperator oftheproposed source or modification shall demonstrate to the division that allowable emission Regulation No.3 PartB, Page 80



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increases from the proposed source ormodification in conjunction with all other emissions increases or reductions (including secondary emissions) will not cause or contribute to concentrations ofair polJutants in the ambient air in violation of: N.D.3.a.(ii)(A) Any state ornational 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 ormajor modification shall be performed for each pollutant regulated under the Act orFederal 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 ofthatpollutant 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 datathat 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 precedingreceipt 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 airlevels ofa 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 owneror Regulation No.3 Part B, Page 81



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operator to generate pre-construction monitoring data for that pollutant. N.D.3.a.(iii)(E) The owner oroperator ofa proposed major stationary source or majormodification 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) mayprovidepost-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 owneroroperator ofa 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 mayhave, on air quality in any area. The monitoring ofair qualityrelated 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 oroperator ofa major stationary source or majormodification 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 hnpactAnalysis. For eachpolJutant 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 suchpollutant from the source or modification and general commercial, residential, industrial, and other growth associated with the source or modification. The analysis ofimpairment to water will not be used in the determination ofbest available control technology. The owner oroperator 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 qualityrelated values as stated in section X.B., ofthisregulation, ifapplicable. Regulation No.3 Part B, Page 82



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The owner oroperator shall provide an analysis ofthe air quality impact projected for the area as a result ofgeneral commercial, residential, industrial and other growth associated with the source or modification. IV.D.3.b. Applicability ofCertain PSD Requirements. IV.D.3.b.(i) The requirements ofsection IV.D.3.a., Part B, do not apply to a major stationary source or majormodification with respect to a particular pollutant ifthe owner oroperator demonstrates that, as to that pollutant: IV.D.3.b.(i)(A) The source or modification is subject to Part 3 ofthe Act and section IV.D.2., Part B, ofthis 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 ormodification 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 ofFederal 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 ofthe 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



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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 ofa 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 ofthe pollutant in

### the area that the source or modification would affect are less than the concentrations listed in this section; or Regulation No.3 Part B, Page 84



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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 ormajor modification solely byvirtue ofa 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. IV.D.3.b.(v) A stationary source ormodification 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 owneroroperator 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 ofthe U. S. EPA a copyof each permit application relating to a major stationary source or major modification subject to this regulation, and provide notice ofevery 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 majormodification that is proposed to be constructed in an area designated under section 107(d) of the Federal Act as attainment orunclassifiable 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 orboth 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 ofsuch pollutant in the Regulation No.3 Part B, Page 85



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nonattainment area to offset that portion ofits 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 airquality 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 ormodification. IV.D.3.e. Minor stationary sources ofvoJaliJe organic compounds, carbon monoxide, nitrogen oxides, sulfur dioxide and PM IO in designated attainment/maintenance areas IV.D.3.e.(i) Forminor 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 PM IO 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, ora modification ofan 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 orother 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, maybe 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. Ifthe 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 afterreceipt ofthe permit. Such refusal shall be deemed a denial ofthe permit application. Regulation No.3 Part B, Page 87



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IV.G.3. Ifthe 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 ofa 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 orthe 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 ofeighteen months or more; or (iii) does not complete construction within a reasonable time ofthe estimated completion date. IV.G.4.b. Upon a showing ofgood cause by the pennittee, the division may grant extensions ofthe pennitnot to exceed eighteen months per extension. Construction or operation shall commence orbe resumed within a reasonable period oftime from the granting ofthe extension. In determiningwhat constitutes good cause or a reasonable period oftime, the division shall consider the degree ofconstruction already completed, the amount invested or legally committed to the project, whether an extension would prevent (e.g., through reservation ofa 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 otherrelevant factors. The division shall notify the commission ofany 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 havebeen made, the applicant shall not commence the operation ofa 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 onwhich commencement will take place. IV.H.2. Within onehundred eighty calendar days after commencement ofoperation, 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



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determine whether ornot the operating terms and conditions ofthe initial approval construction permit have been satisfied. At the end ofone hundred and eighty days, the division must revoke the construction permit; or, continue the construction permit ifapplicable; or, notify the owner oroperator that the source has demonstrated compliance with the construction permit. IV.H.3. Before final approval ofthe 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 maymonitor such tests and may, at its expense, conduct its own performance tests. IV.H.4. For sources that submit an application for an operating permitpursuant to Part C of this Regulation No.3, including any application for a permit modification orpermit renewal, prior to issuance ofa 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 maybe issued at the same time as initial approval for temporary sources ofa duration ofone month or less. IV.H.8. Priorto issuance offinal approval, the applicant shall furnish: IV.H.S.a. Anoperating and maintenance plan for all control equipment and control 

# I

practices; and 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 oroperator wishes to cancel a permit, the owneroroperator shall notify the division, using forms provided bythe 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 PartB. Any general construction permit shall comply with all Regulation No.3 Part B, Page 89



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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 ormore 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 ofthe 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., ofthis Part B: IV.J.2.a. Commence construction ormodify anybuilding, facility, structure, or installation; IV.J.2.b. Install any machine, equipment, or other device; IV.J.2.c. Commence the conduct ofany such activity; IV.J.2.d. Commence performance ofany combinations thereof; or IV.J.2.e. Commence operations ofany 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, orterminated in accordance with the provisions ofthis 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 maybe 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 PartB, 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) Indetermining 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 CLASSIFICAnONS 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



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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 maybe exceeded by compliance with the provisions ofsections X.D., X.E., orX.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 ofOctober 27, 1977. All areas designated Class II under this section maybe 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 maybe 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 ornational wilderness area established after August 7, 1977. that exceeds ten thousand acres 

### in size. 

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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 mayredesignate any area in Colorado as Class I, 

# I

Class II or Class TIl as herein provided. The commission will providenotice to the f General Purpose Unit oflocal 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 anyperson. VLC. The commission shall not set a hearing date on a proposed redesignation until the following have been completed: 

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VI.C.1. A complete description ofthe area proposed for redesignation; 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 redesignation; VI.CA. A technical analysis ofexpected impacts on ambient airquality in adjacent ornearby areas;

Regulation No.3 Part B, Page 93



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VI.C.5. Comments, or evidence ofan opportunity for submission ofcomments, by all appropriate regional planning agencies and councils ofgovernment 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 qualityplans. 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 conductpublic hearings on such proposed redesignation in ornear areas within Colorado that maybe 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 suchpublic hearings, the commission shall make available for public inspection a discussion ofthereasons 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. Priorto the issuance ofnotice respecting the proposed redesignation ofan 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 Managerhad 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, ifitis in session, or with the leadership ofthe legislature, ifit is not in session, and (2) by resolutions orordinances enacted bythe general purpose units oflocal government representing a majority ofthe residents of the area to be redesignated. VLG. No area maybe redesignated ifsuch redesignation would cause orcontribute to concentrations ofany air pollutant in any other area that exceed any maximum allowable increase ormaximum allowable concentration pennitted underthe classification ofsuch area. VI.H. Lands within the exterior boundaries ofreservations offederally recognized Indian tribes maybe redesignated onlyby the appropriate Indian governing body.

Regulation No.3 Part B, Page 94



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### VI.I. Anyredesignation shall constitute a revision to the Colorado State hnplementation Plan and shall be submitted for approval to the Administrator ofthe U.S. EPA 

# I

VI.J. Any redesignation or denial ofa properrequest for redesignation made pursuant to this section VI., shall be subject tojudicial 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 ifany 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 ofany area as Class III. VII. AIR QUALITY LIMITATIONS vn.A. Ambient Air Increments VIlA. I. The maximum allowable increases over the baseline concentration for sulfurdioxide, PMIO, or nitrogen dioxide except as provided in section V.B., ofthis Regulation No. 3, Part B, are: VII.AI.a. Forany 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



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VIlA.l.b.

VIlA.l.c. For any Class II area:
PMIO (Jlglm3) Annual arithmetic mean 17 Twenty-four hourmaximum 30. Sulfur dioxide (Jlglm3) Annual arithmetic mean 20 Twenty-four hourmaximum 91 Three hourmaximum 512 Nitrogen dioxide (Jlglm3) Annual arithmetic mean 25 For any Class III area: PMIO (Jlglm3) Annual arithmetic mean 34 Twenty-fourhour maximum 60 Sulfur dioxide (Jlglm3) Annual arithmetic mean 40 Twenty-fourhour 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 ofthis Regulation No.3 for preventing significant deterioration ofair 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 beliefto 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 

# I

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 ofviolation. 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, ifnecessary, to the commission to correct the violation. Upon receipt ofrecommended 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 majormodification shall individually consume more than seventy-five percent ofan applicable increment. VII.A.5.a.(i) Applicants may request a hearing before the commission to request a waiver ofthis restriction. The hearing shall beheard 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 ofcomments by all appropriate regional planning agencies and councils ofgovernment organizations, affected municipalities and other affected political subdivisions has occurred. VII.A.5.a.(i)(B) Ambient Air Limits. No concentrations ofa 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



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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, orparticulate 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 orcause 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 ofthe time period specified in the plan revision that will ensure that the emissions levels from stationary sources affected bythe 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 ofa proposed major stationary source or major modification otherwise subject to the requirements ofPart B, section 

### N.D.3., ofthis Regulation No.3 mayrequest 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 ofsuch 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), ofthis regulation necessary for the employment ofinnovative 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 ofinnovative 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 orcontribute 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. Theprovisions ofsection V., ofthis regulation (relating to Class I areas) have been satisfied with respect to all periods during the life ofthe 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 bythe 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. Ifa source or modification fails to meet the required level ofcontinuous 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 ofbest available control technology through use ofa demonstrated system ofcontrol. 

# x FEDERAL CLASS I AREAS XA. Within twenty days ofreceipt ofa 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 ofthe application to all affected Federal Land Managers and consult with them as to its completeness in its analysis and monitoring (ifrequired) ofair quality related values. Ifthe division receives advance notification ofa permit application ofa 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 ifsuch 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 ofa 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 ofand 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 ajoint monitoring program with that source or agency. All monitoring programs must be approved in advanceby the division. X.B.2. Pre-application monitoring may include the monitoring ofnot 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 qualityrelated 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 ofair quality related values or sensitive receptors ofair quality related values may only berequired 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 qualityrelated values or sensitive receptor would reasonablybepredicted to be a result ofthe applicant's individual emissions or ofthe applicant's emissions in combination with any person's emissions with whom the applicant maybe required to conductjoint monitoring; and X.B.4.c. It is economicallyreasonable 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 ormodification would have an adverse impact on the air quality related values (including visibility) ofany federal mandatory Class I lands, notwithstanding that the change in air quality reSUlting from emissions from such source or modification would not cause orcontribute 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. orthe division determines that a demonstration ofno adverse impact is in error, the division shall not issue the permit. XD. Class I Variances. The owner oroperator ofa 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'sjurisdiction, 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 maybe necessary to assure that emissions ofsulfur dioxide, and PMlO • and nitrogen oxides would not exceed the following maximum allowable increases over the minor sourcebaseline 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 

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Sulfurdioxide Annual arithmetic mean 20 J.lg/m3 Twenty-fourhour maximum 91 J.lg/m3
Three hourmaximum 325 J.l.g/m3 Nitrogen dioxide Annual arithmetic mean 25 J.lg/m3

X.E. SulfurDioxide Variance by Governor X.E.1. The owner or operator ofa proposed major stationary source or majormodification that cannotbe approved under section X.D., above, may demonstrate to the governor that the source or modification cannot be constructed byreason ofany maximum allowable increase for sulfur dioxide for periods oftwenty-four hours orless, 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. Varianceby 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 governorrecommends 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 otherwisemet. X.G. Emission Limitations for Presidential and Gubernatorial Variance. 

### Inthe case ofa permit to be issued under sections X.E., and X.F., the source or modification shall complywith emission limitations as maybe necessaryto assure that emissions of sulfur dioxide from the source ormodification would not (during any dayon that the otherwise applicable maximum allowable increases are exceeded) cause orcontribute to concentrations that would exceed the following maximum allowable increases over the baseline concentration assure that such emissions would not cause orcontribute to Regulation No. 3 Part B, Page 102



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concentrations that exceed the otherwise applicable maximwn allowable increases for 

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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 

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24-hour maximum 36 

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# f 3-hour maximum 130 221

XI. VISffiILITY 

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XI.A. Purpose 

## l t

This section assures reasonable progress towards the national goal ofpreventing 

# I future, and remedying existing, visibility impairment in Class I areas, where such 

### 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 

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which may reasonably be anticipated to cause orcontribute to any impairment of visibility in any such area (even ifthe area is in another state). 

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XI.C. Definitions Forpurposes ofthis section XI.: 

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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-casebasis taking into account the geographic extent, 

# I

, intensity, duration, frequency and time ofvisibility impairments, and how these factors correlate with times ofvisitoruse 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 ofcompliance, the energy and non-air quality environmental impacts of compliance, anypollution control equipment in use or in existence at the source, the remaining useful life ofthe source, and the degree ofimprovement in visibilitythat mayreasonablybe anticipated to result from the use ofsuch technology.

Regulation No.3 Part B, Page 103



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XI.C.3. Existing stationary facility means any ofthe stationary sources ofairpollutants listed in section I.B.59., definition ofmajor 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 orbefore August 7, 1977, and has the potential to emit two hundred and fifty tons per year or more ofany air pollutant. In determiningpotential to emit, fugitive emissions, to the extent quantifiable shall be counted. XI.e.4. Long-term strategy means a ten to fifteen yearplan 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 byvisual 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 beredesignated to Class I in the future. XI.D. Existing Impairment XI.D.l. The Federal Land Manager orthe 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 afterpermit issuance. XI.D.2.a. For fossil-fuel fired generating plants having a total generating capacity in excess of750 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 ofthe 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 ofthe source's emissions on visibility in any Class I area and a demonstration bythe existing stationary facility that it does not orwill not byitselfor in combination with other sources, emit any air pollutant that may be reasonably anticipated to cause or contribute to a significant impainnent ofvisibility 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 Technologyonly ifthe owner oroperator ofsuch powerplant demonstrates to the satisfaction ofthe division that such powerplant is located at such a distance from all Class I areas that such powerplant does not orwill not by itselfor in combination with other sources emit any air pollutant that may reasonably be anticipated to cause or contribute to significant impainnent ofvisibility 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 ofany 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 ofthe 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. Regulation No.3 Part B, Page 105



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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 ofthe 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, orany 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 orexemptions 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 majormodifications 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, ifappropriate, the long-term strategy every three years. X1.F.l.a. During the long-term strategydevelopment and review process, the commission shall consult with the Federal Land Managers. XI.F.l.b. A public hearing shall beheld upon request ofany interested person. The state shall provide written notification to each affected Federal Land Manager and other affected states at least sixtydays prior to holding any public hearing. XI.F.l.c. The division shall prepare a report for the coinmission on anyprogress made toward the national visibility goal since the last long-term strategyrevisions. The report will bemade 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 ofthe long-tenn strategy to prevent future impainnent of visibilityin any Class I area; Regulation No.3 Part B, Page 106



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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 ofexisting conditions; XIF.I.c.(iv) Additional measures, including the need for state implementation plan revisions, that maybe 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 ofany 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 offederal land in Colorado_ XI.G.l.b. Federal land management agencies shaH submit to the commission emission inventories byDecember 31, 2001 and no less frequently than every five years thereafter. The initial submittal inDecember 31,2001 may be supplemented with additional infonnation toward fulfilling the requirements ofthis section XIG. Any supplementary submittal must be to the commission byJuly 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 LandBoard, the Department of Agriculture, and the Department ofNatural Resources byJuly 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. Regulation No.3 Part B, Page 107



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XI.G.3. Public Land Emission InventoryRequirements 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 onpublic 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.

Regulation No. 3 Part B, Page 108



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