STATE OF COLORADO 

Bill Ritter, Jr., Governor 

James B. Martin, Executive Director 

Dedicated to protecting and improving the health and environment of the people of Colorado 

4300 Cherry Creek Dr. S. Laboratory Services Division 

Denver, Colorado 80246-1530 8100 Lowry Blvd. 

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

TOO Line (303) 691-7700 (303) 692·3090 

Located in Glendale, Colorado 

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

June 18, 2009 

Carol Rushin 

Acting Regional Administrator 

US EPA Region VIII 

1595 Wynkoop Street 

Denver, CO 80202-1129 

Dear Ms. Rushin: 

RECBIVBD 

JUN 28 2009 

USEPARNS OFFICE 

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

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

with this letter. 

• Regulation Number 3: Stationary Industrial Source Emission Fees- On September 18, 2008 the 

Colorado Air Quality Control Commission (AQCC) adopted a proposal to increase the fees 

charged to stationary industrial sources for emissions of regulated air pollutants to reflect the 

changes that the legislature made to the air pollutant emission fees. 

• Regulation Number 11: Motor Vehicle Emissions Inspection Program - On October 16, 2008 

the AQCC adopted a proposal to revise the emission control systems inspection procedures for 

1996 and newer model year vehicles and to eliminate obsolete provisions for gasoline filler neck 

inspections and chlorofluorocarbon leak check requirements. 

• Regulation Number 10: Transportation Conformity - On November 20, 2008 the AQCC 

adopted a proposal to include changes that EPA had made to the federal program that reflected 

changes in federal transportation legislation. 

• Canon City PM I 0 Maintenance Plan - On November 20, 2008 the AQCC adopted a proposal to 

revise the Canon City PM 10 element of the State Implementation Plan to satisfy the federal 

requirement for demonstrating long-term compliance with the national standard for a second tenyear period after the area had shown that it could achieve and maintain long-term compliance 

with the national standard. 

• Regulation Numbers 3, 7, 11 , Ambient Air Quality Standards, and Ozone State Implementation 

Plan: Long-term Compliance with the National Eight-hour Ozone Standard - on December 12, 
..... . "' ~~ ~ r~· ,.,. f ~ ' . ( i' ') k.l ~ '· 

1 , • I ) r-:1~ rf !1 ., l. • • " ..... -
Carol Rushin 

June 18, 2009 

Page 2 

2008 the AQCC adopted a State Implementation Plan element and a set of requirements to 

ensure compliance with the 1997 National Ambient Air Quality Standard for eight-hour ozone 

set at 0.08 ppm (part per million) by the end of20 10. The AQCC acted to adopt several new 

requirements for stationary and mobile sources. 

• Regulation Number 3: Regional Haze Requirements for Stationary Source Permitting - On 

December 19,2008 the AQCC adopted a set of Best Available Retrofit Technology (BART) 

requirements for the Colorado Springs Utilities and the CEMEX-Lyons Cement Plant pursuant 

to the provisions of the federal regional haze rule. 

We look forward to your timely review and approval of this request. The AQCC office may submit any 

additional technical support documentation or information that you may need for review directly to 

EPA. Should there be any questions regarding these materials, please contact the AQCC office at 

303-692-3478. Thank you. 

Sincerely, 

cc: Martha Rudolph, Director of Environmental Programs 

Doug Lempke, Administrator, Colorado Air Quality Control Commission 

Paul Tourangeau, Director, Air Pollution Control Division 

Stationary Source Permitting and Air Pollutant 

Emission Notice Requirements 

Regulation Number 3, Part A 

ADMINISTRATIVE MATERIALS 

Copies of the following administrative materials are included in this submittal of revisions to 

Regulation Number 3, Part A: Stationary Source Permitting and Air Pollutant Emission 

Notice Requirements. Hearing held on September 18, 2008. 

• Hearing Notice and Proposed Language as Published in the CCR 

• Meeting Agenda where Public Hearing Occurred and Notice published in the Legal 

Ads of the Denver Post 

• Procedural Documents of the Commission (this includes the Agenda Item Control 

Sheet, the Memorandum of Notice, the Economic Impact Analysis) 

• Parties Hearing Documents (this includes a list of the parties, the parties prehearing 

statements and rebuttal statements, and any orders by the Commission - - do not 

include all the attachments from the parties) 

• EPA Comments 

• Public Comments 

• Adopted Statement of Basis, Specific Statutory Authority and Purpose 

• Adopted Language by the Commission (in redline & footer noting adoption date and 

page numbers) 

• Final Adoption Notice 

• Opinion of the Attorney General 

• Regulation as published in the CCR (this is the version that is published by Lexis 

Nexis) 

Hearing Notice and Proposed Language 

as Published in the CCR 

STATE OF COLORADO 

Bill Ritter, Jr., Governor 

James B. Martin, Executive Director 

Dedicated to protecting and Improving the health and environment of the people of Colorado 

COLORADO AIR QUALITY CONTROL COMMISSION 

http://www .cdphc.statc.co.us 

EDO-AQCC-A5 

4300 Cherry Creek Drive South 

Denver, Colorado 80246-1530 

Phone (303) 692-3100 

Fax (303) 691-7702 

TDD (303) 691 -7700 

Colorado Department 

of Public Health 

and Environment 

NOTICE OF PUBLIC RULEMAKING HEARING 

BEFORE THE 

COLORADO AIR QUALITY CONTROL COMMISSION 

Regarding proposed revisions to: 

Regulation Number 3 

STATIONARY SOURCE PERMITTING 

AND AIR POLLUTION EMISSION NOTICE REQUIREMENTS 

· Part A, Section VI.D.l. 

CONERNING THE INCREASE OF STATIONARY SOURCE EMISSION FEES 

SUBJECT: 

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

revisions to its Regulation Number 3, Part A, Section VLD.L that would raise the annual 

emission fees for criteria and hazardous air pollutants in accordance with the provisions of 

Section 25-7-114.7. C.R.S. The proposed increase raises (ees to the limit set by Colorado 

Legislature and would be used to fund legislatively approved staffing increases to address 

permitting, oil and gas activities, and additional air quality monitoring. 

FEDERAL REQUIREMENTS: 

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

subject ofthis Notice of Public Rulemaking Hearing. 

A proposed Statement of Basis, Specific Statutory Authority, and Purpose and a regulatory 

analysis (if one has been requested) will be available for inspection no later than five (5) days 

prior to the hearing. The proposed language for the rule revision is attached to and made a part 

of this notice. 

HEARING SCHEDULE: 

DATE: September 18,2008 

TIME: 9:00AM 

PLACE: Colorado Department of Public Health & Environment 

4300 Cherry Creek Drive South, Sabin ConfRoom 

Denver, Colorado 80246 

Page I of4 
The hearing may be continued at such places and time as the Commission may announce. 

Interested parties may contact the Commission Office at 303-692-3476 to confirm meeting dates 

and times. 

The Commission shall deliberate upon the evidence; testimony and written submissions 

presented at this hearing, as well as any related matters properly submitted before the hearing 

record is closed. 

PUBLIC COMMENT: 

The Commission encourages all interested persons to provide their views either orally at the 

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

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

revisions. Public testimony will be taken as close to the start of the hearing as possible and 

during the hearing as necessary. Written and/or electronic submissions prior to the hearing are 

requested to allow review prior to presentation at the hearing. Written and/or electronic 

submissions should be mailed to the Commission Office at least 14 days prior to the hearing. 

PARTY STATUS: 

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

the Commissions Procedural Rules is necessary. A petition for party status must be filed by 

electronic mail with the Office of the Air Quality Control Commission no later than close of 

business on July 18, 2008. The petition must: 1) identify the applicant; 2) provide the name, 

address, telephone and facsimile numbers, and email address of the applicants representative; 

and 3) briefly summarize what, if any, policy, factual, and legal issues the applicant has with the 

proposal(s) as of the time of filing the application. Electronically mailed copies must also be 

received, by this same date, by the Division staff person and the Assistant Attorneys General 

representing the Division and the Commission identified below. Any person may petition the 

Commission to file documents in paper copy format if they are unable for any reason to not 

comply with the requirements of 1.3.8(2) of the Commissions Procedural Rules. An original and 

a specified number of paper copies must be filed in the Office of the Air Quality Control 

Commission, Colorado Department of Public Health and Environment, 4300 Cherry Creek Drive 

South, Denver, Colorado 80246. 

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

proposed rule. The submittal of an alternative proposal must be accompanied by an electronic 

copy of the initial alternative proposed rule and all other associated documents as required by the 

Commission's procedural rules and must be filed by electronic mail with the Office ofthe 

Commission by the date specified for party status requests. Initial alternative rules must also be 

filed by electronic mail with the Division staff person and with each of the Assistant Attorneys 

General. 

Air Quality Control Commission 

Theresa L. Martin 

EDO-AQCC-A5 

4300 Cherry Creek Drive South 

Denver, CO 80246 

Theresa.Martin@state.co.us 

Air Pollution Control Division 

Kirsten King 

APCD-Bl 

4300 Cherry Creek Drive South 

Denver, CO 80246 

Kirsten.King@state.co. us 

Page 2 of4 
Jerry Goad 

Attorney for the Commission 

Attorney General's Office 

1525 Sherman St., 51

h Floor 

Denver, CO 80203 

Jerrv.Goad@state.co.us 

William Allison 

Attorney for the Division 

Attorney General's Office 

1525 Sherman St., 51

h Floor 

Denver, CO 80203 

William.Allison@state.co.us 

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

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

that does not comply with the Commission's procedural rules. 

STATUS CONFERENCE: 

A status conference will be held July 24 at 10:00 a.m., at the Department of Public Health and 

Environment to ascertain and discuss the issues involved, and to ensure that parties are making 

all necessary efforts to discuss and resolve such issues prior to the submission of prehearing 

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

party status. 

PREHEARING CONFERENCEIPREHEARING STATEMENTS: 

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

prehearing conference will be held August 20, 2008 at 9:00 a.m. in the Commission Offices at 

4300 Cherry Creek Drive South, Denver. All parties must submit by electronic mail a 

preliminary prehearing statement to the Commission Office by close ofbusines~ April15, 2008. 

In addition, electronically mailed copies of these documents must be delivered by that date to all 

persons who have requested party status. A copy of the preheaTing statement must also be 

electronically mailed to the Division point of contact and each of the Assistant Attorney's 

General identified above by close ofbusiness April IS, 2008. Any revisions to the prehearing 

statement must be submitted to the Administrator of the Commission at the preheaTing 

conference and by electronic mail to the Commission Office on the day of the prehearing 

conference. Any exhibit included in the preheaTing statements will be electronically mailed to 

individual Commissioners for review prior to the hearing, provided the party files electronic 

copies of such exhibit. Rebuttals to the prehearing statement may be submitted to the 

Commission Office and all other parties by close of business September 5, 2008. 

EXCEPTIONS TO FILE DOCUMENTS BY ELECTRONIC MAIL 

The Commission's Procedural Rules provide for an exception to file documents by electronic 

mail. If granted an exception to electronic filing pursuant to the provisions of 1.3.8(3) of the 

Commissions Procedural Rules, the applicant for party status shall file an original and fifteen 

copies of the pre hearing statement in the Office of the Air Quality Control Commission, and 

shall also deliver copies to each other party, applicant for party status, the Assistant Attorneys 

General representing the Commission and Division, and the Division staff person for the 

proceedings, by electronic mail or as otherwise provided by the exception granted under 

Subsection 1.3.8(3), by that same day. 

Page 3 of4 
STATUTORY AUTHORITY FOR THE COMMISSION'S ACTIONS: 

The Commission promulgates this regulation pursuant to the authority granted in Sections 25-7-

lOS(l)(c), C.R.S. (authority to adopt a prevention of significant deterioration program); 25-7-

l09(l)(a) (authority to require the use of air pollution controls); 25-7-l09(2)(a) (authority to 

adopt emission control regulations pertaining to visible pollutants); 25-7-114.4(1) (authority to 

adopt rules for the administration of permits); and 25-7-1002 (authority to maintain a program 

that complies with the requirements of the federal act for prevention and remediation of 

significant deterioration of visibility in class I federal areas). The rulemaking hearing will be 

conducted in accordance with sections 24-4-103 and 25-7-110, C.R.S., as amended, the 

Procedural Rules of the Commission and as otherwise stated in this notice. This list of statutory 

authority is not intended as an exhaustive list of the Commission's statutory authority to act in 

this matter. 

Dated this 20th day of June 2008 at Denver, Colorado 

Page4 of4 
Regulation No. 3, Section VI.D.l. 

VI.D. Fee Schedule 

VI.D.1. Annual and permit processing fees shall be charged in accordance with 

and in the amounts specified in the provisions of Colorado Revised Statutes section 25-7-

114.7. Annual fees for regulated pollutants shall be \17.97$22.90. Annual fees for 

hazardous air pollutants shall be $ 119.96$152.90. 

Statement of Basis, Specific Statutory Authority and Purpose 

R EVISIONS TO PART A , SECTION Vl.D.l . 

S EPTEMBER 18, 2008 

THIS STATEMENT OF BASIS, SPECIFIC STATUTORY AUTHORITY AND PURPOSE COMPLIES WITH THE 

REQUIREMENTS OF THE COLORADO ADMINISTRATIVE PROCEDURE ACT SECTIONS 24-4-1 03( 4), 

C.R.S. FOR NEW AND REVISED REGULATIONS. 

BASIS 

THE A IR QUALITY CONTROL COMMISSION HAS ADOPTED REVISIONS TO PART A, SECTION VI.D.l. 

IN ORDER TO INCREASE THE ANNUAL EMISSION FEES CHARGED TO AIR POLLUTION SOURCES IN 

COLORADO COMMENCING IN 2008. THE REVISED FEES ARE AT THE STATUTORY LIMIT SET BY 

SECTION 25-7- 114.7, C.R.S. THE PROPOSAL INCREASES FEES TO THE LEVELS ENACTED BY THE 

GENERAL ASSEMBLY, AND SIGNED BY THE GOVERNOR, IN SB08-055, REFLECTED IN SECTION 25-7-

114.7, C.R.S. AS AMENDED. 

SPECIFIC STATUTORY AUTHORITY 

THE SPECIFIC STATUTORY AUTHORITY FOR THESE REVISIONS IS SET FORTH fN SECTIONS 25-7-114.7 

OF THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT ("ACT"), WHICH ALLOWS 

THE COMMISSION TO SET ANNUAL EMISSION FEES FOR REGULATED AND HAZARDOUS AIR 

POLLUTANTS. 

P URPOSE 

THE REVISIONS TO PART A, SECTION VI.D.l. WERE ADOPTED TO PROVIDE NECESSARY REVENUE 

FOR EXISTlNG AND ANTICIPATED REVENUE SHORTFALLS, AND FUND ADDITIONAL LEGISLATIVELYAUTHORIZED FTE AND LEGISLATIVELY-DIRECTED AIR QUALIY MONITORING. 

COLORADO AIR QUALITY CONTR OL COMMISSION 

ADOPTED: SEPTEMBER 18, 2008 

Regulation No.3 Page 1 

Meeting Agenda where Public Hearing Occurred and 

Notice published in the Legal Ads of the Denver Post 

STATE OF COLORADO 

Bill Ritter, Jr., Governor 

James B. Martin, Executive Director 

COLORADO AIR QUALITY CONTROL COMMISSION 

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

4300 Cherry Creek Drive South 

OED-OLRA-AS 

Denver, Colorado 80246-1530 

Phone (303) 692-31 00 

Fax (303) 691-7702 

TDD (303) 691-7700 

Colorado Department 

of Public Health 

and Environment 

Notice of Meeting and Agenda 

Air Quality Control Commission 

September 18, 2008 

Colorado Department of Public Health & Environment 

4300 Cherry Creek Drive South, Sabin Room 

Call to Order: 

Approval of Minutes: 

Public Comment: 

Agenda Review: 

Denver, Colorado 

9:00a.m. 

Determination of a Quorum 

Review/ Approval of the August 21 & 22, 2008 meeting minutes of 

the Air Quality Control Commission. 

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

the agenda. The Commission will not take action on issues 

discussed under this agenda item today; however, items may be 

scheduled for further discussion or action. 

The Commission Administrator will review the meeting agenda 

and discuss any proposed revisions to the agenda for the 

Commission's consideration. 
RULEMAKING HEARING 

l. Regulation Number 3: Stationary Source Fees 

( 1 0 minutes presentation, 15 minutes discussion) 

The Division will present to the Commission revisions to the annual emission fees for 

stationary sources based on 2008 Senate Bill 055 that provided for an increase in the 

statutory limit of the fees. 

2. Regulation Number 15: Chlorofluorocarbon Annual Fees 

(1 0 minutes presentation, 10 minutes discussion) 

The Division will present to the Commission revised annual chlorofluorocarbon emission 

fees based on 2008 Senate Bill 055 that provided for an increase in the statutory limit of the 

fees. 

PUBLIC HEARING 

3. North Front Range Metropolitan Planning Organization (NFRMPO) and Denver 

Regional Council of Governments (DRCOG) Conformity 

(20 minutes presentation, 25 minutes discussion) 

The NFRMPO and DRCOG will present to the Commission its 8-Hour Ozone Conformity 

determination. DRCOG and NFRMPO will discuss how they have worked together to 

determine conformity of their Regional Transportation Plans and their Transportation 

Improvement program plans. · 

REQUEST FOR RULEMAKING HEARING - DECEMBER 11, 2008 

4. Regulation Number 9: Prescribed Fire Program Fees 

(5 minutes presentation, 5 minutes discussion) 

The Division will request the Commission set a rulemaking hearing to consider proposed 

revisions to the rule to modify the cost of the smoke management program as well as the 

structure of assessing fees to significant users of prescribed fire. The Division is also 

proposing to update emissions and permitting activity data to better define small users of the 

program and to make non-substantive typographical, grammatical and formatting revisions 

to the rule. 

5. Denver Metropolitan and North Front Range Area Ozone Action Plan 

(25 minutes presentation, 45 minutes discussion) 

The Regional Air Quality Council, the North Front Range Transportation and Air Quality 

Planning Council and the Division will request the Commission set a rulemaking hearing to 

consider a proposed 8-hour ozone attainment plan and accompanying regulations; 

Regulation Numbers 3, 7, 11 and the Ambient Standards Regulation, to revise the State 

Implementation Plan as well as state only regulatory requirements to reduce ozone precursor 

emissions and demonstrate compliance with the 8-hour ozone National Ambient Air Quality 

Standards and to address the September 2007 directive of the Governor to work toward 

attainment of the newly revised 8-hour ozone standard. 

2 
6. Regulation Numbers 3: Regional Haze BART 

(20 minutes presentation, 30 minutes discussion) 

The Division will request the Commission set a rulemaking hearing to·consider regulations 

to codify the Division's BART determinations for CEMEX and the Martin Drake facility. 

The Regional Haze SIP Element will also be revised to document these BART 

determinations. 

BRIEFINGS, DISCUSSIONS AND REPORTS 

7. Front Range Ozone Update 

(20 minutes presentation, 20 minutes discussion) 

The Division will review the summertime ozone monitoring data and report on any 

exceedences or violations of the ozone standards. The Division will also review the 

historical data and project future values that will be needed to remain below the national 

standard in the coming summer season for 2009. 

8. Commissioner Informational Items 

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

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

interested in hearing about. 

9. Division Director's Report- Paul Tourangeau 

Monthly activities report 

10. Attorney General's Report-Jerry Goad 

Update of any recent court actions on air quality issues 

11. Administrator's Report - Doug Lempke 

October meeting agenda items review 

Regulation Number 6 revised notice 

Adjourn 

3 

,;,.-·--

Regulation No. 3, Part A, Section 

VJ.D.l., Annual Emission Fees 

Kirsten King 

Air J>ojtutlon Control Division 

Rationale for Increased Fees tr"' - -

1 +Increase fees to legislatively enacted 

levels (SB08-055) 

• Fund Legislatively-authorized monitoring 

on Westem Slope, and elsewhere 

• Legislatively approved FTE, past and 

current 

• Recover reduced federal grant-monies 

• Fees have not been adjusted In statute 

since 2001 

.... ,. 

Proposed Revision 

+Increase current fees to statutory limits 

• Increase fees for criteria pollutants from 

$17.97 per ton to $22.90 per ton 

• Increase fees for hazardous air pollutants 

from pollutants from $119.96 per ton to 

$152.90 per ton 

+Increase will apply to calendar year 

2008 emissions 
Conclusion 

";,-, --

+Increase in annual fees is necessary to 

fund existing programs 

+Requested fees are statutory maximum 

+Recommend that the AQCC adopt the 

fee revisions 

2 
The Denver Newspaper Agency 

DENVER, CO 

PUBLISHER'S AFFIDAVIT 

City and County of Denver, 

STATE OF COLORADO, SS. 

Jean Birch 

• • • • .. • .. • • • .. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • belna of lawful 

••• and bolna ftrat duly •-m up011 oath, ctapo .. s ud says1 

Legal Advertising Reviewer 

That he/sho Is tho •••• • • ••••••••• , • ••• • ••• ••• •• • ••• • , • • •• • , • 

Of Tho Donvor Newspaper AtloftC)', publlahor of tho Denver Post and 

Rocky Mountain News, dall)' nowapapora of general Circulation published 

and prfntod In whole or In part In Donvar, In tho Count)' of Donvor and 

State of Colorado, Dlld thot said -wspapor wu Prfor to and durfng 

all tho tlmo hereinafter mentioned duly qualified for tho publication of 

legal notices and actvortlsornonta withi n tho Moaning of an Act of tho 

Oonoral Assembly of tho State of Colorado, 

Approved Aprfl 7, 1821, as amended and appro¥od March 30, 11231 

Aftd as amended and approved March S, 1138, entitled •Aft Act 

Concomln1 Loaal Notlc oa, ActvortiHmonta and Publications and tha 

foH of prfntora and publlahora thereof, and to repool all acta and parts 

Of acta In conflict with tho provlalon of thle act• and amondmanta 

Tharetot 

That tho notice, of which tho annex ed Is • trua copy, wu published In 

Tho said newspaper to wit: (datn of publication) 

............. ~ .. /.~ .. ?.. .. .................... ~ . ............... '£ ... , ............ .. 

..................... . .~~ .......... . 111naturo 

lubscrtbod and awom to boforo mo this • • • • • 15 ..... day 

Of • •• Au,..,t: •• A.D. 2001. "' 

..... /..~.~ ............... . Notary Public. 

My commlaslon expires • • • • • laptombor I, 20ot • • , , , 

RECEIVED 

AUG 1 8 2008 

Executive Oiredors 

Office 

Procedural Documents of the Commission 

- Agenda Item Control Sheet 

- Memorandum ofNotice 

- Economic Impact Analysis (initial and final) 

COLORADO AIR QUALITY CONTROL COMMISSION 

AGENDA ITEM CONTROL SHEET 

Item Title: Proposed Revisions to Regulation No. 3. Part A, Section VI.D.1. 

Meeting date: __ =S=ep~:..:t~e=.:.m::.::b=e!-r ...:..;18:..~·-=2:..::0:..::::0=8 

NON-HEARING ACTIONS 

_Administrative 

_Briefing 

Policy 

Area Designations 

.X. Adoption 

£Required 

TYPES OF ACTION 

REQUEST FOR H EARING 

_ Public Rulemaking 

Informational 

RECOMMENDED ACTION 

_Approval 

MOTION 

Attached 

STATUTORY AUTHORITY 

HEARING 

L Public Rulemaking 

Informational 

Denial 

_ Not applicable 

General Specific~ 

EPA SUBMITTAL 

Is this issue considered a SIP revision? Yes X No --- Which SIP? Date of EPA submission deadline: ___ _ 
ISSUE: The Colorado Department of Public Health and Environment, Air Pollution Control Division 

("Division") requests that the Colorado Air Quality Control Commission ("Commission") revise the 

provisions of Regulation No. 3, Part A. Section VI.D.1. in order to raise the annual emission fees for 

criteria and hazardous air pollutants in accordance with the provisions of Section 25-7-114.7., C.R.S. 

commencing in 2008. The proposal increases fees to the levels enacted by the General Assembly, and 

signed by the Governor, in SB08-055, reflected in Section 25-7-114.7, C.R.S. as amended. 

Pursuant to Regulation No. 3, Part A, Section VI.D.1. annual emission fees shall be charged in 

accordance with and in the amounts and limits specified in Section 25-7-114.7., C.R.S. This statutory 

provision provides, as recently amended, that annual emission fees for criteria pollutants shall be set at 

$22.90 per ton and the fee for hazardous air pollutants shall be set at $152.90 per ton. 

Type of Fee Current Fee Proposed Fee 

Criteria Pollutant Fee (per ton) $17.97 $22.90 

Hazardous Pollutant Fee (per ton) $119.96 $152.90 

The General Assembly established these fee increases because the prior statutory fee levels, last 

adjusted in 2001, are now inadequate to support existing authorized expenditures to operate the 

program. In addition, the fee increases will fund additional legislatively-authorized FTE, additional 

legislatively-directed air monitoring, and recover current and anticipated federal grant reductions. 

Accordingly, the Division is requesting that the Commission modify Regulation No. 3, Part A, Section 

VI.D.1. so as to increase annual emission fees to match the statutory levels approved by legislature. 
ATTACHMENTS: 

1. Final Economic Impact Analysis 

2. Regulation No. 3, Part A, Section VI.D.1. Proposed Rule 

3. Statement of Basis and Purpose 

4. Presentation 

SIGNATURES: 

1. :t:fL~?f_ Preparer , Date 

2. 

Date 

3. 

Date 

4 . 

Division Director Date 

Revised: 8/1/08 

FAQs 

Air Pollution Fee Increase 

1. History behind the Stationary Sources Fund and how it grew, became depleted and 

why it is going insolvent. 

The statutory fees from stationary sources for the APCD were last increased in FYO 1102. Since 

the fee increase in FY01/02 several things have impacted the revenue and costs for the APCD. 

The ongoing ozone control challenges required the division to re-examine possible sources of 

emissions of volatile organic compounds. During the analysis the division determined that the 

oil and gas industry had significant emissions that were adversely impacting Front Range ozone 

levels. Based on this analysis the division began inventorying and billing for these emissions. 

The additional funds from these oil and gas sources caused the APCD Stationary Sources Fund 

balance to exceed the statutory 16.5% limit, and the division reduced fees in FY03/04 to address 

the situation. 

Because of continued ozone problems in the Denver metro area, the division entered into an 

Early Action Compact (EAC) with EPA, which resulted in placing emission controls on certain 

oil and gas sources. This significantly increased the division's workload for inspections and 

permitting, but in parallel the emissions controls on these sources also served to reduce the 

division's fee revenues. In addition, since 2006 the division has received several appropriation 

increases from the legislature, without corresponding revenue increases, and must request a 

funding increase to sustain the necessary staffing and work efforts endorsed by the legislature. 

With the increase in controls resulting in a significant reduction in billable emissions, and 

additional staffing and project costs, the division's long-term analysis shows the revenues and 

fund balance is insufficient to support the program. 

The following table summarizes the approved staffing and expenditure increases for the division, 

for which appropriate revenue is necessary from the proposed fee bill. 

- -

2006 Emergency Supplemental $192,360.00 

2007 Decision Item $373,000.00 

2007 Budget Amendment $797,000.00 

Western Slope Monitoring $385,700.00 

2. When were the air fees originally established? 

Several forms of emission and permit fees have been in existence for more than 25 years. The 

Title V Permit Fee program, for example, was established in 1991 after the Clean Air Act 

established the national program. The Title V permit fee program began collecting fees in the 

1990s for permit processing for major stationary sources in the state. Construction permits 

issued to small sources are charged a fee based on hours spent in processing the permit. Annual 

emissions fees - for standard criteria pollutants but also for Hazardous Air Pollutants- are 

assessed for minor and major emissions sources, and have been part of a pre-1990 fee system for 

the Division. 
3. What is the percentage increase proposed for the air fees? 

Th e mcrease b h etween t e current fi ees an d h d t e rec ueste ~ ees ts . 27 46o/< o. 

Fee Description· Current Statutory Requested Change in Percent 

Fee Statutory Fee Fee Change 

Criteria pollutant emissions fee per $17.97 $22.90 $4.93 27.43% 

ton 

Hazardous Air Pollutant emissions $119.96 $152.90 $32.94 27.46% 

fee per ton 

4. Is it possible to create an ozone plan without the fee increase- meaning do we need to 

fund this program in order to implement any SIP or ozone plan? Why? 

It is possible to create an ozone plan without increasing the fees, though creation of an ozone 

plan is not the purpose of the proposed fee increase. The fee increase is to maintain the solvency 

of the base program. For the ozone plan, the division has submitted an emergency supplemental 

to fund required ozone modeling, and this is not part of the fee bill. The modeling is needed to 

create the plan. The ozone modeling is both a stationary source and mobile source problem and 

should not be funded solely out of the Stationary Sources Control Fund. The division has neither 

the spending authority nor revenue stream to support the work reflected in the emergency 

supplemental request. The work needed to develop the ozone attainment plan, referred to as the 

ozone state implementation plan, will be absorbed by the division with current staff, but 

development of that important plan could be impacted if the base program of the division could 

not be funded. The basis for the fee bill is largely due to prior-authorized resources and 

activities, and is not driven by the new ozone challenge faced by the state. 

5. What would be the response to Xcel Energy when it complains the pollution is oil and 

gas and they should not have to pay the fees? 

First, emission fee rates are equal for all emissions sources, and are based on the impact of a 

source on the air shed. Each source and source category pays its per ton emission fees based on 

the amount of pollution emitted, or emissions loading to the atmosphere. Air emissions fees are 

used to support the state's overall Stationary Sources Program- generally captured in the 

emissions fees - and are thus spread proportionately across all sources that contribute to the 

emissions loading of the atmosphere in the state. Xcel is thus charged its proportionate share of 

fees as compared to any other emissions source in the state. 

Second, the largest emissions sources in the state enjoy a statutory cap on the amount of 

emissions from each facility against which the division may charge fees, and thus effectively pay 

less for their impact on the air shed. The utilities in the state are the only sources that are large 

enough to take advantage of this emissions volume cap for fees, and they have saved significant 

revenue over the years- and currently do so- by this effective cap on fees. 

Third, the oil and gas sector is the second highest emitting source category, after the electric 

utility generators, and because emissions from those individual facilities do not approach the 

emissions volume cap in statute, that sector does not enjoy the fee cost cap that the utilities do. 

Fourth, Colorado's per ton emissions fees are significantly lower than those charged by EPA, 

and wiJI remain lower even with the requested increase. EPA suggests approximately $39/ton 

for major source emissions fees. Fourth, the division has historically adjusted the fees when the 

fees coJiected run higher than the cost of the program. The division reduced fees in FY 03/04 

and saved Colorado sources approximately $4.5M. 
6. What entities will be charged the air fee? Please provide specific examples. 

All stationary sources that emit more than one ton in a non-attainment area or two tons in an 

attainment area pay fees. The spreadsheet provides some specific examples. 

SFY06..07 Current Current 

Number of Billed Statutory Requested SFY06.07 Statutory Requ .. ted 

Sou rea SSP Revenue Source Unlta Unlta Rate UmltRete Rata Billed Rete Limit Rate Rata Total 

XCEL Cherokee Plant Criteria Feea 8 394.0 tons $13.54 $17.97 $22.9000 $113 655 $150 8<10 $192 223 

(actual tona billed laat HAP Feea 25.0 tons $90.34 $119.96 $152.9000 $2 259 $2 999 $3 623 

lYear) • Total $115,913 $153 839 $196,045 

XCEL Valmont Plant Criteria Feea 3 563.0 tons $13.54 $17.97 $22.9000 $48 514 $64 367 $82 051 

- HAP Fees 4.7 tons $90.34 $119.96 $152.9000 $425 $564 $719 

Totlll $411938 $64 950 $82 769 

Suncor Plant Criteria Fees 3,593.0 tons $13.54 $17.97 $22.9000 $48649 $64 566 $82,280 

HAP Fees 17.3 tons $90.34 $119.96 $152.9000 $1 563 $2 075 $2 645 

Total $50 212 $66 642 $84 925 

Coora Brewing Valley Criteria F eea 585.2 tons $13.54 $17.97 $22.9000 $7 924 $10 516 $13,401 

Plant HAP Fees 58.0 tons $90.34 $119.96 $152.9000 $5,240 $6 958 $8 868 

Total $13163 $17,474 $22,269 

Criteria Feea 6 769.0 tons $13.54 $17.97 $22.9000 $91 653 $121 639 $155011 

Petroleum HAP Fees 139.0 tons $90.34 $119.96 $152.9000 $12 557 $16 874 $21 253 

Development Corp. - Totlll $104 210 $138 314 $176,264 

ConUnentlll Cleaners Criteria Feea tons $13.54 $17.97 $22.9000 $0 $0 $0 

In Lulavllle HAP Fees 2.7 ton a $90.34 $119.96 $152.9000 $243 $323 $411 

Total $243 $323 $411 

~o; urrent 

Statutory 

VI 

Requ .. ted 

Rate %Rata 

Revenue Change 

$41 362 27.43% 

$624 27.46% 

$42 206 

$17 664 27.43% 

$155 27.48% 

$17 819 

$17 713 27.43% 

$570 27.48% 

$18 283 

$2 885 27.43% 

$1 911 27.48% 

$4796 

$33 371 27.43% 

$4 579 27.46% 

$37 950 

$0 27.43% 

$89 27.48% 

$89 

• This plant triggers statutory emissions cap for fees (for Nox and So2) (chargeable tons: Nox 4,000 tons out of 10,810; S02 4000 Ions out of 7,082; particulate matter 

317 tons out 317· and VOC n tons out of 77. 

•• This plant does not trigger statutory caps for fees I l ... This is for the whole company. all souroeslfacilities I I 

7. How do our Air Quality fees compare to other states? 

The following states responded to a survey of their fees. 

State Stationary Sources Criteria 

Pollutant Per Ton Fee 

Colorado Current statutory cap: $17.97 

Proposed statutory cap: $22.09 

Wyoming $25.00 

Utah $43.03 

EPA tribal lands $40.52 

South Dakota $6.10 

Nebraska $38.00 

Kansas $25.00 

Texas $30.90 

Oregon $38.08 

Arizona $13.24 

North Dakota $12.00 

Montana $21.58 

I 

I 

Fee Emissions Cal! (tons} 

4,000 

4,000 

4,000 

4,000 

No Cap1 

4,000 

4L000 

4,000 

4,000 

No Cap 

No Cap 

No Cap 

1 These states have lower fees because there is no emissions fee cap. In other words, industry must pay for every ton 

emitted (unlimited) rather than paying for each ton emitted up to 4,000 tons. 

I 

l 
8. Can you please differentiate between how much of the revenue (and associated fees) 

are for (a) insolvency; (b) climate change initiatives; and (c) lost federal funds? 

The estimated increase in revenues from the proposed fee increases would be approximately 

$1 ,756,235. 

(a) $1 ,512,001 to address program insolvency; 

(b) $84,418 for the climate change initiative; and 

(c) $159,816 for the loss of federal funds. 

9. Why did the federal government reduce air quality federal funds? 

There are many competing needs for federal resources. The available resources for air pollution 

control available to EPA have been proposed for reduction in recent Presidential budgets, and in 

FFY2007 were reduced $319,631 for Colorado. The President's budget does not describe with 

any specifics why these monies are reduced 
Date: 

To: 

Subject: 

MEMORANDUM OF NOTICE 

May 12,2008 

Interested Parties 

Proposed revisions to the Air Quality Control Commission's Regulation 

Number 3, Part A, Section VI.D.l. 

GENERAL DESCRIPTION 

The Colorado Department of Public Health and Environment, Air Pollution Control 

Division ("Division") requests that the Colorado Air Quality Control Commission 

("Commission") revise the provisions ofRegulation No. 3, Part A, Section VI.D.l. in order to 

raise the annual emission fees for criteria and hazardous air pollutants in accordance with the 

provisions of Section 25-7-114.7., C.R.S. commencing in 2008. The proposal increases fees to 

the [evels enacted by the General Assembly, and signed by the Governor, in SB08-055, reflected 

in Section 25-7-114.7, C.R.S. as amended. 

RULEMAKINGPACKAGE 

Attachments to this memorandum provide details on the proposal as follows: 

• Attachment A: An initial economic impact analysis of the proposed revisions. 

• Attachment B: The actual language ofthe proposed revisions to Regulation No.3, Part 

A, Section VI.D.1. 

EXPLANATION OF THE PROPOSED REVISION 

Pursuant to Regulation No.3, Part A, Section VI.D.l. annual emission fees shall be 

charged in accordance with and in the amounts and limits specified in Section 25-7-114.7., 

C.R.S. This statutory provision provides that annual emission fees for criteria pollutants shall 

increase from $17.97 to $22.90 per ton and that the fee for hazardous air pollutants shall increase 

from $119.96 to $152.90 per ton. The statute further provides that ifthe amount of money left in 

the Stationary Sources Control Fund at the end of a fiscal year exceeds the Target Reserve (24-

75-201), the fees shall be reduced so that the expected Target Rese·rve at the end of the next 

fiscal year. The statute also provides that after fees have been lowered in order the meet the 

Target Reserve requirements in a given year, fees may be raised in a subsequent year so long as 

the expected Target Reserve for that year will not be exceeded. 

Due to a increased program costs from legislatively authorized FTE and other actions, 

and to decreased federal grant revenue, the Division is currently operating under a shortfall qn an 

annual basis. Additional revenue is necessary in the near future to cover all currently authorized 
spending. Accordingly, the Division is requesting that the Commission modify Regulation No. 

3, Part A, Section VI.D.l. so as to increase fees as shown in the following table: 

Type of Fee Current Fee Proposed Fee 

Criteria Pollutant Fee (per $17.97 $22.90 

too) 

Hazardous Pollutant Fee (per $119.96 $152.90 

ton) 

MATERIALS TO BE IN CORPORA TED BY REFERENCE 

There are no materials to be incorporated by reference in the proposed rule revision. 

BACKGROUND ON DEVELOPMENT OF THE PROPOSED RULE 

What is the problem? 

The Division is currently operating under a shortfall. Additional revenue is needed to cover all 

currently-authorized spending. 

How would the proposed regulatory revisions help solve the problem(s)? 

The proposed fee increase will generate appropriate revenue to fund the air program implement 

by the Division, as authorized by the legislature. 

How were the proposed revisions developed? 

The proposed new fee levels are based on an economic analysis of the amount of additional 

funds necessary to support the program. 

How do the proposed rule revisions affect the public, regulated community, and other agencies? 

• The proposed revisions will increase annual emission fees for the regulated community. 

• The increase will fund additional Western slope and other air monitoring authorized by 

the legislature in the Long Bill. 

• Other government agencies will be largely unaffected by the proposed rule revisions at 

this time. 

How do the proposed rule revisions relate to federal reguireme.nts or adjacent state requirements? 

The proposed rule revisions will not affect existing federal requirements. The revisions will not 

affect other states' regulatory status or obligations. The following table provides examples of 

criteria pollutant fees from other western states. 
State Stationary Sources Criteria Fee Emissions Cap (tons) 

Pollutant Per Ton Fee 

Colorado Current statutory cap: $17.97 

Proposed statutory cap: $22.09 

Wyoming $25.00 

Utah $43.03 

EPA tribal lands $40.52 

South Dakota $6.10 

Nebraska $38.00 

Kansas $25.00 

Texas $30.90 

Oregon $38.08 

Arizona $13.24 

North Dakota $12.00 

Montana $21.58 

How will the regulatory revisions be implemented? 

The revisions will be implemented through the Division's established emission fee billing 

process. 

Are there time constraints? 

4,000 

4,000 

4,000 

4,000 

NoCap1 

4,000 

4,000 

4,000 

4,000 

No Cap 

No Cap 

No Cap 

Expeditious consideration and approval of the requested fee increase is necessary to ensure the 

solvency of the Division. 

What if the Air Quality Control Commission does not adopt the proposed Rule revisions? 

If the Commission does not adopt the proposed rule revisions, the Division will not be able to 

fund the program. Program elements will not be implemented, and/or various backlogs will be 

created or will increase. 

RANGE OF REGULATORY ALTERNATIVES 

The Division has not proposed any alternative regulatory options. 

NO-ACTION ANALYSIS 

If the Commission does not adopt the proposed rule revisions, the Division will not be able to 

fund legislatively-directed activities, and would have to curtail existing programs to cover 

anticipated revenue shortfalls. 

PUBLIC MEETINGS 

The Commission will hold a Rulemaking Hearing on the proposed rule. The Commission will 

establish a pre-hearing process to ensure an orderly hearing. Anyone may participate in the pre1 These states have lower fees because there is no emissions fee cap. In other words, industry must pay for every ton 

emitted (unlimited) rather than paying for each ton emitted up to 4,000 tons. 
hearing and hearing process by obtaining party status in accordance with the Commission's 

Procedural Rules. 
CONTACT INFORMATION: 

For more information please contact: 

Kirsten King 

Manager 

Stationary Sources Program 

Air Pollution Control Division 

4300 Cherry Creek Drive South 

Denver, CO 80246-1530 

Phone: (303) 692-3178 

Fax: (303) 782-5493 

E-mail: Kirsten.king@state.co.us 

Source 

Initial Economic Impact Analysis of the Proposed Revisions to Regulation No.3, 

Part A, Section VI.D.l. 

INITIAL ECONOMIC IMPACT ANALYSIS 

Per C.R.S. 25-7-110.5 

The Colorado Department of Public Health and Environment, Air Pollution 

Control Division ("Division") is proposing revisions to Regulation No. 3, Part A, Section 

VI.D.1. in order to raise the annual emission fees for criteria and hazardous air pollutants, 

in accordance with the provisions ofSection 25-7-114.7., C.R.S. The fee changes are 

d eta1 'I e d m . t h e fi o II OWJng . ta bl e. 

TypeofFee Current Fee Proposed Fee 

Criteria Pollutant Fee (per ton) $17.97 $22.90 

Hazardous Pollutant Fee (per ton) $119.96 $152.90 

Table 2 provides a selecti.on of sources and the impacts of the fee changes to those 

sources: 

Current Current 

Current 

Statutory vs 

Number of Statutory Requested Statutory Requested Requested Rllte 

~p Revnuc Source Uuits Uaits Limit Rate Rate Limit Rate Rate Total Revenue 

XCEL Cherokee Plant ~riteria Fees 8,394.0tons Sl7.97 $22.900C $150,840 Sl92,223 $41,382 (actual tons billed last 

year) • HAP Fees 25.0tons $119.96 $152.9000 S2,999 S3,823 S824 

Total $153,839 $196,045 $42,206 

~CEL Valmont Plant Criteria Fees 3,583.0tons $17.97 $22.9000 $64,387 $82,051 $17,664 .. HAP Fees 4.7tons S119.96 Sl52.9000 $564 S719 $ISS 

Total $64,95~ $82,769 $17,819 

Suncor Plant riteria Fees 3,593.0 tons Sl7.97 $22.9000 $64,566 S82,280 $17,713 

HAP Fees I 7.3 tons $119.96 SIS2.9000 $2,075 $2,645 S570 

Total $66,642 $84,925 $18,283 

Coors Brewing Valley ~riteria Fees 585.2 tons $17.97 $22.9000 $10,516 Sl3,401 $2,885 Plant 

HAP Fees 58.0tons $119.96 $152.9000 $6,958 $8,868 Sl,91 I 

[Total $17,474 $22,26~ $4,796 

!Petroleum jcriteria Fees 6, 769.0 tons $17.97 $22.900( $121 ,639 $155,011 $33,371 Development Corp. 

••• !HAP Fees 139.0tons Sl19.96 S152.9000 $16,674 $21,253 $4,579 

Total $138,314 $176,264 $37,95~ 

Continental Clea11crs Criteria Fees tons $17.97 $22.9000 so so so In Luisvillc 

HAP Fees 2.7 tons $119.96 $152.9000 $323 $411 $89 

rrotal $323 $411 $89 

o/e Rate 

Cbaage 

27.43o/c 

27.46o/c 

27.43o/c 

27.46o/c 

27.43o/c 

27.46o/c 

27.43o/c 

27.46o/c 

27.43o/c 

27.46o/c 

27.43% 

27.46o/c 

• This plant triggers statutory emissions cap for fees (for NOx and S02) {chargeable tons : NOx 4,000 tons out of 10,810; S02 4,000 tons out of7,062; particulate maner 

317 tons out of317; and VOC 77 tons out of77 

•• This plant does not trigger satutory caps for fees 

••• This is for the whole company, all sources/facilities 
Based on an analysis of the state's current emission inventory the proposed 

increase will cost fee payers an additional $1.09 million per year. Broken down by 

individual air pollution sources the estimated median increase will be $43.24 per year. 
Source 

Initial Economic Impact Analysis of the Proposed Revisions to Regulation No.3, 

Part A, Section VI.D.l. 

Final ECONOMIC IMPACT ANALYSIS 

Per C.R.S. 25-7-110.5 

The Colorado Department of Public Health and Environment, Air Pollution 

Control Division ("Division") is proposing revisions to Regulation No. 3, Part A, Section 

VI.D.l. in order to raise the annual emission fees for criteria and hazardous air pollutants, 

in accordance with the provisions of Section 25-7-114.7., C.R.S. The fee changes are 

d eat t '1 e d . m th e fi o 11 owmg . t a bl e. 

Type of Fee Current Fee Proposed Fee 

Criteria Pollutant Fee (per ton) $17.97 $22.90 

Hazardous Pollutant Fee (per ton) $119.96 $152.90 

Table 2 provides a selection of sources and the impacts of the fee changes to those 

sources: 

Current Current 

Currtnt 

Statutory vs 

Number of Statutory Requested Statutory Requested Requested Rate· 

!ssP Revenue Source Units Units Limit Rate Rate Limit Rate Rate Total Revenue 

XCEL Cherokee Plant ~riteria Fees 8,394.0 tons $17.97 $22.9000 $150,840 $192,223 $41,382 actual tons billed last 

year) • HAP Fees 25.0tons $119.96 $152.9000 $2,999 $3,823 $824 

[Total $153,839 $196,045 $42,20~ 

XCEL Valmont Plant riteria Fees 3,583.0tons $17.97 $22.9000 $64,38/ $82,051 $17,664 •• 

HAP Fees 4.7tons $119.96 $152.9000 $564 $719 $155 

;Total $64,950 $82,769 $17,819 

Suncor Plant Criteria Fees 3,593.0tons $17.97 $22.9000 $64,566 $82,280 $17,713 

HAP Fees 17.3 tons $119.96 $152.9000 $2,075 $2,645 $570 

Total $66,642 $84,925 $18,283 

Coors Brewing Valley Criteria Fees 585.2tons $17.97 $22.9000 $10,516 $13,401 $2,885 Plant 

HAP Fees 58.0tons $119.96 $152.9000 $6,958 $8,868 $1,911 

Total $17,474 $22,269 $4,796 

Petroleum Criteria Fees 6,769.0tons $17.97 $22.9000 $121 ,639 $155,011 $33,371 Development Corp. 

*** HAP Fees 139.0tons $119.96 $152.9000 $16,674 $21.253 $4,579 

~otal $138,314 $176,264 $37,950 

ootioental Cleaners riteria Fees tons $17.97 $22.9000 so so so in Luisville 

!HAP Fees 2.7tons $1 19.96 $152.9000 $323 $411 $89 

lfotal $323 $411 $89 

o/e Rate 

Change 

27.43o/o 

27.46o/o 

27.43o/o 

27.46% 

27.43% 

27.46% 

27.43o/o 

27.46o/o 

27.43o/o 

27.46o/o 

27.43o/o 

27.46o/o 

• This plant triggers statutory emissions cap for fees (for NOx and S02) (chargeable tons : NOx 4,000 tons out of 10,810; S02 4,000 tons out of7.062; particulate matter 

317 tons out of317; and VOC 77 tons out of77. 

•• This plant does not trigger satutOJy caps for fees 

... This is for the whole company, all sources/facilities 
Based on an analysis of the state's current emission inventory the proposed 

increase will cost fee payers an additional $1.09 million per year. Broken down by 

individual air pollution sources the estimated median increase will be $43.24 per year. 
Parties Hearing Documents 

(this includes a list of the parties, the parties prehearing statements 

and rebuttal statements, and any orders by the Commission) 

No Parties to this Hearing 

EPA Comments 

No Comments 

Public Comments 

C olorado S tone, Sand & G rav el A ssociat i o n 

Ms. Theresa L. Martin 

Air Quality Control Commission 

CDPHE 

EDO-AQCC-A5 

4300 Cherry Creek Drive South 

Denver, CO 80246 

Dear Ms. Martin: 

August 14, 2008 

On behalf of the Colorado Stone, Sand & Gravel Association (CSSGA), I would 

like to submit a few brief comments regarding the Stationary Source Permit 

Rulemaking Hearing on September 18, 2008. This rulemaking process is the 

result of the passage of Senate Bill #55 which Govemor Ritter signed earlier 

this year. 

I am planning to attend the Pre-Hearing conference on August 20 at 9 AM. You 

should also know that a yet to be determined representative from one of our 

Producer Members will make official comments, on behalf of CSSGA, during the 

September 20 hearing. 

Comments 

Senate Bill #55 was introduced and passed because the CDPHE is experiencing 

a back-log in processing permits due to the significant increase in permit 

applications from many industry sectors. Representatives from CDPHE met 

with members of CSSGA's Land, Use & Environment Committee in mid-April of 

this year to discuss the merits of SB #55 and the pending 27% permit fee 

increase. As you can imagine, our membership which is comprised of aggregate 

producers had concems regarding the fee increase. 

The membership of CSSGA is very hopeful, that as a result of this 27% fee 

increase, the Department will in-fact streamline the permit application process. 

The significant increase in oil and gas permit applications has undoubtedly 

slowed down the permit process for the aggregate industry. CSSGA 

understands and supports the Department's requirement of hiring new FI'E's to 

help overcome the back-log in permit processing. 

With the pending increase in FI'E's, the membership of CSSGA requests that 

the Department dedicated a specific percentage of the current and new FI'E's to 

processing aggregate industry permit applications. The 27% fee increase 

impacts all of us and we hope to receive our fair share of dedicated permit 

writers for the aggregate industry. 

1799 Pennsylvania Street, Suite 240, Denver7 CO 80201 

Ms. Theresa Martin 

Augustl4,2008 

Page Two 

If you have any further questions or comments, please don't hesitate to contact 

me at your earliest convenience. Thank you. 

cc: Kirsten King 

Jerry Goad 

William Allison 

Sincerely, 

Pete Jacobson 

Managing Director 

Adopted Statement of Basis, 

Specific Statutory Authority and Purpose 

I.QQ. Adopted September 18, 2008 

Revisions to Regulation Number 3, Part A 

This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the 

Colorado Administrative Procedures Act, § 24-4-103(4), C.R.S., for new and revised regulations. 

The Air Quality Control Commission has adopted revisions to Part A, Section VI.D.1. in order to increase 

the annual emission fees charged to air pollution sources in Colorado commencing in 2008. The revised 

fees are at the statutory limit set by Section 25-7-114.7, C.R.S. The proposal increases the fees to the 

levels enacted by the General Assembly, and signed by the Governor, in SB08-055, reflected in Section 

25-7-1,14.7, C.R.S. as amended. 

Specific Statutory Authority 

The specific statutory authority for these revisions is set forth in Sections 25-7-114.7 of the Colorado Air 

Pollution Prevention and Control Act ("Acf), which allows the Commission to set annual emission fees for 

regulated and hazardous air pollutants. 

Purpose 

The revisions to Part A, Section VI. 0 .1. were adopted to provide necessary revenue for existing and 

anticipated revenue shortfalls, and fund additional legislatively-authorized FTE and legislatively-directed 

air quality monitoring. 

Adopted Language by the Commission 

DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT 

Air Quality Control Commission 

REGULATION NUMBER 3 

STATIONARY SOURCE PERMITTING AND AIR POLLUTANT EMISSION NOTICE 

REQUIREMENTS 

PART A 

5 CCR 1001-5 

CONCERNING GENERAL PROVISIONS APPLICABLE TO REPORTING AND 

PERMITTING 

VI.D. Fee Schedule 

VI.D.1 . Annual and permit processing fees shall be charged in accordance with and in the 

amounts and limits specified in the provisions of Colorado Revised Statutes Section 25-7-

114.7. Annual fees for regulated pollutants shall be ~- Annual fees for 

hazardous air pollutants shall be $-1.~$152 90. 

VI.D.2. Air Pollutant Emission Notice filing fees shall be charged in accordance with and in the 

amounts and limits specified in the provisions of Colorado Revised Statutes Section 25-7-

114.1 . 

PART G STATEMENTS OF BASIS, SPECIFIC STATUTORY AUTHORITY AND PURPOSE 

I.QQ. Adopted September 18, 2008 

Revisions to Regulation Number 3, Part A 

This Statement of Basis. Specific Statutory Authority and Purpose complies with the requirements of the 

Colorado Administrative Procedures Act.§ 24-4-103(4). C.R.S .. for new and revised regulations. 

The Air Quality Control CommiSSion has adopted revisions to Part A Section VI.D.1. in order to mcrease 

the annual emission fees charged to air pollution sources in Colorado commencing in 2008. The revised 

fees are at the statutory limit set by Section 25-7-114.7. C.R.S. The proposal increases the fees to the 

levels enacted by the General Assembly, and signed by the Governor. in SB08-055. reflected in Section 

25-7-114.7. C.R.S. as amended. 

Specific Statutory Authority 

The specific statutory authority for these revisions is set forth in Sections 25-7-114.7 of the Colorado Air 

Pollution Prevention and Control Act ("Act"), which allows the Commission to set annual emission fees for 

regulated and hazardous air pollutants. 

Purpose 

The rev1s1ons to Part A Section VI.D.1 . were adopted to provide necessary revenue for existing and 

anticipated revenue shortfalls. and fund additional legislatively-authorized FTE and legislatively-directed 

air quality monitoring. 

Regulation Number 3, Pa rt A 

Adopted 09/18/08 Page 1 

Final Adoption Notice 

STATE OF COLORA.DO 

Bill Ritter, Jr., Governor 

James B. Martin, Executive Director 

Dedicated to protecting and Improving the health and environment of the people of Colorado 

4300 Cherry Creek Dr. S. Laboratory Services Division 

Denver, Colorado 80246-1530 8100 Lowry Blvd. 

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

TOO Line (303) 691-7700 (303) 692-3090 

Located in Glendale, Colorado 

http:f/www .cdphe.state.co.us 

NOTICE OF FINAL ADOPTION 

Colorado Department 

of Public Health 

and Environment 

PURSUANT to the provisions of sections 25-7-105, 25-7- 105(12), 25-7-114 through 25-7-114.7,25-7-

106,25-7-119 and 25-7-132 C.R.S. ofthe Colorado Pollution Prevention and Control Act. 

NOTICE IS HEREBY GIVEN that after a public rulemaking hearing September 18, 2008, and in 

compliance with the requirements of sections 25-7-105, 25-7-110, and 25-7-110.5, C.R.S., the Colorado 

Air Quality Control Commission made revisions to: 

Regulation Number 3 

Stationary Source Permitting and Air Pollutant Emission Notice Requirements 

The Commission adopted revisions to Regulation Number 3 Part A, Section VI.D.l. that would raise the 

annual emission fees for criteria and hazardous air pollutants in accordance with the provisions of Section 

25-7-114.7. C.R.S. The proposed increase raises fees to the limit set by Colorado Legislature and would 

be used to fund legislatively approved staffing increases to address permitting, oil and gas activities, and 

additional air quality monitoring. 

This action was submitted to the Secretary of State's Office within 20 days after adoption for publication 

in the Colorado Register, pursuant to 24-4-1 03(5) and (1l)(d), C.R.S., and will become effective October 

30, 2008. 

Additionally, pursuant to 24-4-1 03(8)(d), C.R.S., within 20 days after the date of the Attorney General's 

Opinion, this action will be submitted to the Office of Legislative Legal Services for review. 

Dated this 25th day of September 2008 at Denver, Colorado. 

. Lempke, Administrator 

Opinion of the Attorney General 

AGOpinion 

JOHN W. SUTHERS 

Attorney General 

CYNTHIA H. COFFMAN 

Chief Deputy Attorney General 

DANIEL D. DOMENICO 

Solicitor General 

STATE OF COLORADO 

DEPARTMENT OF LAW 

OFFICE OF THE ATTORNEY 

GENERAL 

STATE SERVICES 

BUILDING 

Page I of I 

1525 Shennan Street - 7th Floor 

Denver, Colorado 80203 

Phone (303) 866-4500 

Fax (303) 866-5691 

Tracking Number: 2008-00604 

OPINION OF THE ATTORNEY GENERAL RENDERED lN 

CONNECTION WITH THE RULES ADOPTED BY THE 

Air Quality Control Commission 

ON 09/18/2008 

S CCR 1001-S 

REGULATION No.3 STATIONARY SOURCE PERMITTING AND AIR POLLUTANT EMISSION NOTICE REQUIREMENTS 

The above-referenced rules were submitted to this office on 09/25/2008 as required by section 24-4-103, C.R.S. This 

office has reviewed them and finds no apparent constitutional or legal deficiency in their form or substance. 

September 30,2008 09:46:50 MST 

JOHN W. SUTHERS 

Attorney General 

by DANIEL D. DOMENICO 

Solicitor General 

http:/ /www.sos. state. co. us/CCR/Opinion.do ?forview=true&trackingN um=2008 -00604 9/30/2008 

Regulation as Published in the CCR 

(this is the version that is published by Lexis Nexis) 

EDITOR'S NOTES (continued) 

History and Amendments: 

Adopted 7/18/02, EFFECTIVE 9/30/02,25 CR 9. Adopted 10117/02, EFFECTIVE 12/30/02, 25 CR 12. 

Regulation LA adopted 03/21/03, EFFECTIVE 04/30/03,26 CR 4. Adopted 03/12/04, EFFECTIVE 05/30/04, 

27 CR 5. Regulation No.3 Adopted 04/16/04, EFFECTIVE 06/30/04, 27 CR 6. Part B adopted by technical 

correction, 27 CR 12. Part A, Part 8, Part C, Part D, Part F adopted 12/ 16/04, EFFECTIVE 03/02/05, 28 CR 

2. Parts A to F adopted 7/21/05, EFFECTIVE 10/02/05, 28 CR 9. Pp 23-27, 35, 77, 111-183, 283-285 

adopted J 2/15/06, EFFECTIVE 03/02/06, 29 CR 2. Regulation 3, Part B, Section Ill.C adopted by technical 

correction; Regulation 3, Part G adopted 03/ 16/06, EFFECTIVE 05/30/06, 29 CR 5. Rule replaced in its 

entirety, adopted 08/17/06, EFFECTIVE 10/30/06, 29 CR 10. Rules Vl.D.I. and I.LL. adopted 12/15/06, 

EFFECTIVE 03/04/07,30 CR 2. Part A, Section LA. and Part D adopted by technical correction, 30 CR 6. 

Rules VI.D.l and I.MM adopted 10/18/07, EFFECTIVE 11/30/07,30 CR J 1. PartE Best Available Retrofit 

Technology (BART), Rules V.B, VI (entire section), l.NN adopted 12/2 1/07, EFFECTIVE 03/01/08,31 CR 

2. Rule replaced in its entirety, adopted 02/21/08. EFFECTIVE 04/30/08, 31 CR 4. Part F, Section IV.B, Part 

G, Section l.PP adopted 05/14/08, EFFECTIVE 06/30/08, 31 CR 6. Part A, Section Vl.D.I, Part G, Section 

I.QQ adopted 09118/08, EFFECTIVE I 0/30/08, 31 CR 10. 

A.G. Opinions: 

25 AG 3 12; 25 AG 431; 26 AG 162; 27 AG 170; 27 AG 208; 28 AG 42; 28 AG 225; 29 AG 77-78; 29 AG 

174; 29 AG Oct 1001-5; 30 AG Feb 1001-5; 30 AG; 30 AG Nov 1001-5; 31 AG Feb 1001-5; 3 1 AG Apr 

1001-5;31 AGJun 1001-5;31 AGOct 1001-5 

Annotations: 

10 2008 Stale of Colorado Page 3 5 CCR 1001-5 

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