# STATE OF COLORI\00

John W. Hcken l ooper, Governor Christopher E. U r bina, MD, MPH

Executive Director and Ch i ef Medical Officer

Ded i cated :o protecting and improvi 1 ng the health and environment of the peop l e of Colorado

4300 Cheny Creek Dr. S

. Laboratory Services Divis i on Denver, Colorado 80246-1530 E1 00 Lowry Blvd. Phone (303) 692

- 2000 Denver

, Colorado 80230·6928 Located in Glenda l e, Co l orado (303) 692-3090

ht t p://www

. cdphe.state

. co.us

December 31, 2012

Carl Daly, Air Program D irec tor US En vironmental Protection Agency Region 8, Mail Code 8P-AR 1595 Wynkoop St Denver, CO 80202-1129

Dear Mr. Daly: Colorado Department of Public Health and Environment

I am submitting th is letter and attachment in response to the U.S. E nvironmental Protection Agency's request to certify that Colorado meets the requirements of Section llO(a)(l) and (2) of the Clean Air Act for t he 2008 Ozone Ambient Air Quality Standards. Colorado has a well developed regulatory program that meets the "infrastructure" elements for State Implementat ion Plans (SIPs) as outlined in CAA Section 110(a)( 1) and (2) for all NAAQS.

The attached doc u men t, which has been through a 30

- day public comment period, outlines the Colorado provisions, programs and efforts to meet the requirements of Section llO(a) (1) and (2) of the Clean Air Act. The document is no t ; ntended to modify or amend any portion or provision of Colorado's S IP

.
Sincerely,

# I Christopher E

. Urbina

, MD, MPH Execut ive Director and Chief Medical Officer

cc: Scott Jackson, Acting Unit Chief, Air Quality Planning and Management Un i t, EPA Region 8 K athy Ayala, Air Qual i ty Planning and Management Unit, EPA Region 8 William A llison

, Director, Air Pollution Control Division, CDPHE Michael Silvers t ein, Administrator and T echnical Secretary, Air Quality Control C omm i ssion

Attachment- 1 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 State of Colorado Provisions to Meet the Requirements of Section 110(a) (1) and (2) of the Clean Air Act

Section 110 (a)(1) State Implemen tation Plan for National Am bient Air Quality Standards

Colorado has established the following State Implementation Plan local elements to address criteria pollutants in areas that have violat ed the National Ambient Air Quality Standards (NAAQS)

NAAQS Location Status
1-Hour Ozone Denver Attainment since 2001 1997 8-Hour Ozone Northern Front Range Ozone Area Nonattainment effective November 20, 2007. Ozone Action Plan SIP revision submitted to EPA June 18, 2009. Approved by EPA, August 5, 2011 ( 76 FR 47443 ) 2008 8-Hour Ozone Northern Front Range Ozone Area Nonattainment (marginal classi fication) effective July 20, 2012. (77 FR 30088 ) Nitrogen Oxide Denver Attainment since 1984 Lead Denver Attainment since 1984 Carbon Monoxide Colorado Springs Attainment since 1999 Carbon Monoxide Denver Attainment since 2002 Carbon Monoxide Fort Collins Attainment since 2003 Carbon Monoxide Greeley Attainment since 1999 Carbon Monoxide Longmont Attainment since 1999 PM10 Aspen Attainment since 2003 PM10 Canon City Attainment since 2001 PM10 Denver Attainment since 2002 PM10 Lamar Attainment since 2005 PM10 Pagosa Springs Attainment since 2001 PM10 Steamboat Springs Attainment since 2004 PM10 Telluride Attainment since 2001

Section 110 (a)(2)(A) - Emission Li mits and Other Control Measures

Enforceable emission limits and control measures are detailed in the various Air Quality Control Commission regulations for all s ources of criteria pollutants, regulated New Source Review pollutants, as well as hazardous air pollutant s, CFCs, smoke and odor s. A summary of the regulations is found below under section 110 (a)(2)(C).

The enforceable emission limits also apply to pe riods of startup, shutdown and malfunction. The Colorado Common Provisions Regulation, Sections II. E. and II. J. contain emission control provisions specific to startup, s hutdown and malfunction events that are in Colorado’s SIP, which was approved by EPA on August 7, 2008 ( 73 FR 45879 ).

Section 110 (a)(2)(B) - Ambi ent Air Quality Monitoring and Data Sys tem

The provisions for episode monitoring, data compilation and reporting, public availability of information, and annual network reviews are found in the federally-approved statewide monitoring SIP (58 FR 49435)

.- 2 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 As part of the Monitoring SIP, Colorado submits a Colora do Annual Monitoring Network Plan each year for EPA approval. The plan de tails monitoring locations for all criteria pollu tants, including the EPA’s Ozone monitoring requirem ents under the the 2008 Ozone NAAQS, an d lists the quality assurance accuracy audits and precision check methods performe d for each monitor.

The Colorado Air Pollution Control Division (Division) periodi cally submits a Qu ality Management Plan and a Quality Assura nce Project Plan to EPA Region VIII. These plan s cover procedures to monitor, analyze data and report data to an EPA central database.

The State of Colorado has an approved monitoring SIP, a plan and authorit y for monitoring, and the ability to properly hand le all related data.

Section 110 (a)(2)(C) - Program for Enforcement of Control Measures

Colorado has an approved SIP regulating the constr uction and modification of stationary sources as necessary to assure that the NAAQS are achieved (Colorado Ai r Quality Control Commission Regulation 3), including a New S ource Review (NSR) permitting program as requ ired in Title I, Parts C and D of the federal Clea n Air Act. Colorado has an appr oved SIP which provides for the enforcement of the control m easures required by Clean Air Act Section 110 (a)(2)(C).

Many of the Colorado Air Quality Control Commi ssion regulations address, in some manner, the programs for enforcement of co ntrol measures. Some of these regulations and other relevant Colorado-specific programs that are in the SIP are described below:

 Regulation 1, Particulates, Smokes, Carbon Mono xide, and Sulfur Dioxides -- Regulation 1 sets forth emissions limitation s, equipment requirements, and work practices (abatement and control measures) intended to control th e emissions of particulates, smoke and sulfur oxides from new and existing stationary sources. Control measures specified in this regulation are designed to limit emissions into the atmosphere and ther eby minimize the ambien t concentrations of particulates and sulfur dioxides.

 Regulation 3, Stationa ry Source Permitting an d Air Pollution Emission Notice Requirements -- Regulation 3 provides for a procedural perm itting program and requires air pollution sources to file Air Pollutant Emissi ons Notices (APENs). The regulation al so requires that new or modified sources of air pollution, with ce rtain exemptions, obtain preconstru ction permits, and to meet the federal requirements of Prevention of Significan t Deterioration (PSD) and Non-attainment New Source Review (NNSR). Colorado’s NSR progra m applies to all regul ated NSR pollutants, including GHGs.

Regulation 3 has been revised to incorporate PM2.5 emissions. On May 16, 2008, October 20, 2010, April 6, 2011 and May 18 , 2011, EPA promulgated a seri es of rules regarding the regulation of PM2.5 under the NSR permitting program. On November 15, 2007, Colorado’s Air Quality Control Commission a dopted rule revisions that inco rporated PM2.5 into the APEN and minor source perm itting programs. EPA promulgated its final PM 2.5 NSR Implementation Rules in 2010, which specifies how PM2.5 emissions are treated for PSD and major source NSR sources. On October 20, 2011, Colorado’s Air Quality Control- 3 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 Commission adopted rule revision s requiring major sources in the state to be subject to PSD and NSR permitting thresholds for PM2.5 at the same level as PM10. The 2007 revision was submitted to the EPA in 2008. The 2011 revision has been submitted to EPA.

Colorado’s minor source and PSD permitting pr ograms apply to sources that emit GHG in accordance with EPA’s Tailoring Rule. The Co lorado Air Quality Control Commission on October 21, 2010, adopted revisions throughout Regulation Number 3 to address GHG regulation in Colorado. These revisions were made to incorporate EPA’s GHG Tailoring Rule into Colorado’s Title V and PSD Permittin g Programs, and to extend synthetic minor permitting to Colorado’s stationary sources seeking federally enforceable limits to avoid major source or major stationary source app licability thresholds specific to GHG. On October 20, 2011, Colorado’s Air Qua lity Control Commis sion adopted rule revisions that incorporated EPA’s Biogenic CO2 Deferral in to Regulation 3. The 2010 revision has been submitted to EPA.

Regulation 3 also was revised in 2008 to a ddress ozone formation in the Denver Metro Area/North Front Range Ozone nonattainment area. Specifically, the Commission adopted revisions to remove and/or revise severa l categorical APEN reporting and/or permitting exemptions in order to improve the Division’s em issions inventory and for the sake of equity. The revisions are part of the federally-enf orceable SIP and help Colorado make progress toward eventual compliance with th e 2008 Ozone NAAQS set at 0.075 ppm.

 Regulation 4, Woodburning Controls -- Regulati on 4 requires that new woodstove and fireplace inserts meet the federal certification requi rements in specified areas of Colorado.

 Regulation 7, Control of Ozone via Ozone Precur sors and Nitrogen Oxides -- Regulation 7 controls the emissions of volatile organic compound s, primarily in the Denver-metro area. It sets standards and mandates c ontrols for specific t ypes of volatile organic compound sources. In 2008, Regulation 7 was revised to increase cont rol requirements for o il and gas condensate tanks, glycol dehydrators and reciprocating inte rnal combustion engines. These revisions were submitted to EPA in 2009 as part of the state’s State Implemen tation Plan for the 1997 Ozone Standard. EPA approved the associated Ozone attainment demonstration.

 Regulation 11, Motor Vehicle In spection -- Regulation 11 requires automobile emission inspection and maintenance programs to be impl emented in specified ar eas of the state for gasoline powered on-road vehicles. These progr ams apply to businesses, industry, and the general public. In addition, th e State’s Automobile Inspec tion and Readju stment (AIR) program’s purpose is to redu ce motor vehicle related polluti on through the inspection and emissions related repair of auto mobiles. The program, as defi ned in Regulatio n 11, works in specific areas of the State of Colorado and requir es motor vehicles to me et emission standards through periodic inspection an d, as necessary, repair.

 Regulation 16, Street Sanding an d Sweeping -- Regulation 16 sets specification standards for street sanding material and street sweeping practices in the Auto mobile Inspection and Readjustment program area an d Denver-metro particulate attainment/maintenance area.

 Common Pr ovisions Regu lation -- The Division may require owners and operators of- 4 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 stationary air pollution sources to install, maintain, and use instrumentation to monitor and record emission data as a basis for periodic re ports to the Division unde r the provisions of the Colorado Air Quality Control Commission Co mmon Provisions regulation. Also, the Common Provisions Regulation co ntains emission control provi sions specific to startup, shutdown and malfunction events that are in Co lorado’s SIP, which was approved by EPA on August 7, 2008 (73 FR 45879)

.
Section 110 (a)(2)(D)(i) - Interstate Transport

For interstate transport, the SIP needs to contain four provisions to ensure that Colorado emissions and pollutants do not:

• significantly contribute to nonattainment in another State (Prong 1);

• interfere with maintena nce of the NAAQS by anothe r State (Prong 2);

• interfere with another State’s measures to pr event significant deterior ation of air quality (Prong 3); and

• interfere with another State’s measur es to protect visibility (Prong 4).

Colorado has addressed federal interstate tran sport requirements for th e 1997 ozone and PM2.5 NAAQS with an interstate transport SIP revision submitted to EPA March 31, 20 10. EPA has since approved all four prongs of In terstate Transport for both the 1997 Ozone and PM2.5 standards.

EPA has not provided Interstate Transport (IT) Guidance for the 2008 Ozone standard which establishes any additional technical requirement s associated with demonstr ating whether a state has transport impacts on a nearby state(s). Colorado will review such guidance when it becomes available. Based on considerat ion of the distance between Colorado and the nearest downwind nonattainment areas in Arkansas, Missouri and Texas, as well previous inters tate transport analyses and beneficial changes in Colorado’s emissions inventory, Colorado does not believe that it significantly contributes to nonattainment or inte rferes with maintenance in another state.

With regards to the 2006 PM2.5 standard, the Colorado Air Quality Control Commission approved an Interstate Transport SIP in D ecember 2011, which was submitted to EPA May 11.

Prong 3 of Interstate Transport deals with prev ention of significant dete rioration. As explained under section 110 (a)(2)(C), Colora do has revised its SIP through revisions to Regulation No. 3 in 2007, 2010 and 2011 to have a PSD program that meets all federal requirements and that applies to all regulated NSR pollutants.

Thus, the implementation of Colorado’s PSD and NNSR permitting programs prevent significant deterioration in neighboring states and thereby satisfy the PSD portion of 110(a)(2)(D)(i)(II) of the CAA. Colorado’s PSD and NNSR permitting progr ams require that demonstrations be made for all areas that are potentially impacted by emissions from a proposed major source or modification. A PSD permit may not be issued un less the new or modified source demonstrates that emissions from the construction or operation of the facility will not cause or contribute to air pollution in any area that exceeds any NAAQS.- 5 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 A NNSR permit may not be issued unless the so urce shows it has obtaine d sufficient emissions reductions to offset increases in emissions of th e pollutants for which an area is in nonattainment, consistent with reasonable further progress toward attainment.

Prong 4 of Interstate Tr ansport relates to visibi lity. EPA approved Colorado’s Regional Haze SIP on on September 10, 2012, when the Regional Administ rator signed final rulemaking that is awaiting publication in the Fe deral Register. Colorado relie s on its Regional Haze SIP to demonstrate that the state does not interfer e with visibility in any other state.

Section 110 (a)(2)(D)(ii) – Interstate and International Transport

The EPA guidance from October 14, 2011, indicates th at states have no obligation at this time under Sections 115, 126 (b) and 126(c) of the CAA rega rding interstate or in ternational transport because there are no petitions or pending actions before EPA unde r these sections. Furthermore, the control measures in the SIP protect not only Colorado from NAAQS violations, but neighboring states and countries as well.

However, the guidance indicates an obligation u nder Section 126(a) that directs each SIP to include provisions requiring new or modified sources to notify neighboring states of potential impacts from the sources. Colorado’s approved NS R program has a regulatory provision in place that requires notification of ne ighboring states of potential im pacts from sources, specifically, Regulation No. 3, Part D, Section IV, provides for notice to any state, tribal governing body, federal land manager or local agency that may be affected by emissions from a major source or major modification subject to the PSD program.

Clean Air Act Section 110 (a)(2)(E) - Adequate Resources, State Boards, and Authority Personnel, Funding, and Authority

There are no state or federal provisions prohib iting the implemen tation of any provision of the Colorado SIP. In general, Colora do provides the necessary assuranc es that funding, personnel, and authority exist and that the Stat e of Colorado has resp onsibility for im plementing local provisions. The Air Quality Control Co mmission adopt ed all of the regula tory provisions in th e SIP pursuant to authority delegated to it by st atute. The Commission’s general authority to adopt the rules and regulations necessary to implement the SIP is se t out in the Colorado Ai r Pollution Prevention and Control Act Section 25-7-1 05 of the Colorado Revised Statutes (C.R.S.). The general authority for the Division to administer and enforce the program is set out at 25-7-111, C.R.S. Additional authority to regulate air pollution and implement pr ovisions in the SIP is se t out elsewhere in the Colorado Air Pollution Pr evention and Control Act, Article 7 of Title 25. In addition, the Commission and the Divisi on have the authority delegated to them in Sections 42-4-301 through 42-4-316, C.R.S. (concerning motor vehicle emi ssions) and 42-4-414, C.R. S. (concerning emissions from diesel-powered vehicles).

The Air Quality Control Commissi on’s authority includes the au thority to regul ate particulate emissions, regardless of size (Sect ion 25-7-109 (2 )(b), C.R.S.).

The Division has staff and an annua l budget to operate its six programs (Stationary Sources, Mobile Sources, Indoor Environm ent, Technical Services, Planning an d Policy, Administ rative Services).- 6 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 The Division employed 1 61 people and had a budget of $21.2 million for fiscal year 2011.

Of the total budget, 21 percent was derived from federal grants, 31 percent from mobile source fees, 43 percent from stationary source fees, and 5 percent from other cash sources.

State Boards Section 128 of the CAA i ndicates Colorado’s State Implementa tion Plan must contain requirements that any board or body which a pproves permits or enforcement orde rs under the CAA must have a majority of members who represent the public intere st and do not derive an y significant portion of their income from persons subject to permits or enforcement orders.

The Air Quality Control Commissi on’s Procedural Rules, sect ion 1.11.0 stat e that “The Commission shall have at least a majority of members who represent th e public interest and do not derive a significant portion of their income from persons subject to permits or enforcement orders under this article or unde r the federal act. The members of the Commission shall disclose any potential conflicts of intere st that arise during their term s of membership to the other Commissioners in a public meeting of the Co mmission.” AQCC Procedural Rules, section 1.11.0 were incorporated into Colorado’s SIP and approved by EPA on January 4, 2012 (77 FR 235).

Relationships with other agencies respon sible for carrying out State activities The Division contracts with local g overnments in two distinct ways: 1. Colorado grants monies to local health departme nts to endow them as ag ents of the State to provide inspections of some lo cal stationary sources, asbestos abatement jobs, and CFC sources. Some local health departments also ope rate gaseous and particulate monitors under contract for the state. These efforts must comply with federal and state regulations. 2. Colorado grants monies to local governments to help pay for their support of SIP elements via public and private partnerships, education and informational campai gns. Most of these agencies create their own work plan that consis ts of programs they be lieve will help enhance air quality in their commun ities in accordance with ge neral SIP directives.

Colorado has adopted specific regu lations for local attainment/maint enance areas to assure these areas meet requi rements of the stat e SIP. These regula tions include The Co lorado Air Quality Control Commission SI P-specific regulations, 5 CCR 1001-20 . These regulati ons provide the necessary authority for the Divisi on to adequately enforce the pr ovisions of the SIP elements in local attainment/maintenance areas.

In addition, Colorado reta ins its full authority and responsibility to enforce the SIP and the Colorado Pollution Preventi on and Control Act in local jurisdictions under the local government provisions of 25-7-128, C.R.S.

Clean Air Act Section 110 (a)(2)(F) - Stationary Source Monitoring and Reporting

Colorado Air Quality Control Commission Regul ations 1, 3, and 7, as well as the Common Provisions Regulation, address the issu e of stationary source monitoring.

Colorado Regulation 1 sets forth emission limitati ons, equipment requirements and work practices (abatement and control measures) intended to co ntrol the emissions of particulates, smoke, and- 7 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 sulfur dioxides from new and existing stationary sources.

An Air Pollutant Emission Progra m is required in the Colorado Pollution Pr evention and Control Act Section 25-7-114.1, C.R.S. APEN requirements are further defined in Regulation 3, which requires stationary sources to report their emi ssions on a regular basi s through APENs. These requirements are found in Regula tion 3, Part A, Section II, “A ir Pollutant Em ission Notice Requirements.”

Regulation 3 also requires statio nary sources to monitor their em issions under certain conditions. Part A. Section VIII requires mo nitoring performed in accordance with EPA accepted procedures, and record keeping of air pollutants.

Regulation 3 also provides for a permitting progr am that establishes em ission limita tions and standards. Emissions must be re ported by sources to the state for correlation with applicable emissions limitations and standards. Monitoring may be required for both construction and operating permits.

Regulation 7 includes requirem ents for owners and operators of VOC sources to conduct monitoring, keep records, and re port results to the Division.

The Common Provisions Regulation may require owne rs and operators of stationary air pollution sources to install, maintain, and use instrumentation to monitor and record emission data as a basis for periodic reports to the Division.

Section 110 (a)(2)(G) - Emergency Power

The State has the authority to implement emergency powers similar to Section 303 of the Clean Air Act. First, the EPA-approved “D enver Emergency Episode Plan” ( 74 FR 47888 ) addresses ozone, particulate matter, and carbon monoxide for the Denver metro region and requires the State to implement protective measures when ai r quality exceeds defi ned thresholds.

Additionally, the Colorado Pollution Prevention and Control Act, Sections 25-7-112 an d 25-7-113, C.R.S. generally describe Colo rado’s authority regarding air pollution emergencies for any air pollutants endangering public health, welfare or the environment anywhere in the state. These sections provide authority comparable to CAA Sectio n 303. The Colora do act allows the Division to issue a cease-and-desist order if conditions warrant, and to apply for a restra ining order or injunction in district court. Sections 25-7-11 2 and 113, C.R.S. also allow the G overnor to declare a state of air pollution emergency and take any a nd all actions necessary to prot ect the health of the public.

As described in EPA’s Septembe r 25, 2009 guidance, areas that have had a PM2.5 exceedance greater than 140.4 ug/m3 should have an emergency episode plan . If no such concentration was recorded since 2006, the state can rely on its ge neral emergency authorities. Colorado has never recorded such a PM2.5 level and thus an emergency episode plan for PM2.5 is not necessary.

Nevertheless, the State hereby certifies that it has the appropriate emergency powers to address PM2.5 episodes, as described above.- 8 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 Additionally, the State implements EPA’s air qualit y index system and typically issues alerts and advisories to the public when any pollutant is expe cted to or exceeds an AQI index value of 100. If pollutant concentrations are expected to or actually exceed EPA’s recommended index value thresholds of 201 (alert), 301 (warning), 350.5 (si gnificant harm), or 401 (e mergency), the State can invoke emergency powers.

Section 110 (a)(2)(H) - Provisions for SIP Revisions Due to NAAQS Changes or Findings of Inadequacies

The State of Colorado has the ab ility and authority to a ddress and revise the State Implementation Plan due to changes in the NAAQS or due to find ings of inadequacies.

The Colorado Air Quality Control Commission has the au thority and the duty to adopt and revise a State Implementation Plan as necessary to comp ly with the federal requirements. Colorado Air Pollution Preventi on and Control Act, Sectio n 25-7-105 (1)(a)(I), C.R.S. directs the Colorado Air Quality Control Commission to promulgate rules a nd regulations as related to a comprehensive SIP which will assure attainment and maintenance of the NAAQS and which w ill prevent si gnificant deterioration of air quality in the State of Colorado. The Colorado Act states that the comprehensive SIP shall meet all requirements of the federal act and shall be revised whenever necessary or appropriate.

Colorado Air Pollution Pr evention and Control Act Section, 25-7-109, C. R.S. also gives the Colorado Air Quality Control Commi ssion the authority to promulgate emission control regulations.

Section 110 (a)(2)(I) – Provisi ons for Nonattainment Area s to Meet the Applicable Requirements of Part D

While the EPA 110 SIP guidance of both Oct ober 2, 2007, and October 14, 2011, excludes the need for determ inations under Part I, Colorado meets the applicable re quirements for SIPS and SIP revisions in nonattainment areas under th e Colorado Air Quality Control Commission’s Regulation 3, Part D, as explained above.

Section 110 (a)(2)(J) – Consulta tion with government offici als, Public Notification, Prevention of Significant Deterioration of Air Quality and Vi sibility Protection

Consultation with Go vernment Officials

The Colorado Air Pollution Prev ention and Control Act 25-7-105( 1)(d), C.R.S. requires a satisfactory process of consultation with genera l purpose local governments and any federal land manager having authority over federal land to which the state implementation plan applies, pertaining to transportation controls, air qualit y maintenance plan requirements, preconstruction review of stationary sources of air pollution, or any measure re ferred to in the PSD or the NNSR permitting programs, or granting delayed compliance orders pur suant to Section 25-7-118, C.R.S.

Colorado’s Transportation Conformity Rule, Regulation 10, Part III, sp ecifies in detail the process for interagency consultation related to transportatio n conformity in SIP planning. The rule sets out the minimum requirements and ro les and responsibilities for inte ragency consultation (Federal,- 9 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 State, regional and local) and resolution of conflicts.

Consultation requirements are also detailed in Chapters 2 and 10 of Colorado’s Regional Haze SIP. The chapters specify the consulta tion process with federal land ma nagers, tribes and other states, both during the development of the plan an d in future commitme nts under the plan.

Local government coordination and c onsultation is also described in 25-7-128, C.R.S. which covers local government’s authority to enact air pollution resolutions or ordinances, standards and regulations, their submission and enforceability as part of the SI P, and the coordination of air pollution plans and programs between the state and local governments.

Engineering and meteorological consultation is prov ided by the State to lo cal agencies. The State assists local agencies in planning air management programs for thei r respective areas. The Colorado Air Quality Control Commission holds public m eetings and hearings on all SIP revisions in accordance with the Air Quality Co ntrol Commission Procedural Rule s. Public comment is solicited and accepted at Colorado Air Quality Cont rol Commission mee tings and hearings.

Public Notification

Colorado notifies the public of instances or of areas in which any nati onal primary ambient air quality standard is exceeded through the websit e and public announcements. Included in this notification are public awareness announcements regarding health hazards and manners in which the public can participate in regulatory and other ef forts to improve Colorado ’s air quality. Not only does the State pr ovide after-the-fact information about readings in excess of the NAAQS, the Denver PM 10 SIP provides for advance warnings to the public that the NAAQS may be exceeded whenever meteorological conditions make it possible or likely for am bient concentrations to exceed the NAAQS.

The Air Quality Control Comm ission also issues an annual Report to the P ublic, as part of its duties under 25-7-105, C.R. S. which notifies the pu blic of areas of NAAQS exceedances statewide, associated health hazards, and how the public can participate in regulatory and other efforts to improve air quality. The Report to the Public is distributed thro ugh the Commissi on’s mailing list and posted on the Commission’s public website.

The Division prepares a daily pub lic notification in the form of an Air Pollution Advisory for a nine-county Denver-Boulder metrop olitan and North Front Range area and the communities of Grand Junction, Fort Collins, Greeley and Colorado Springs. The advisory is posted on the Division website and includes details of the day’ s air quality and visibi lity, a forecast of the coming day’s air quality, residential burning rest rictions and voluntary motor vehicle driving reduction requests during the wint er high pollution season. The advi sory includes links to an open burning forecast and other important informa tion such as the day’s Air Quality Index, the health effects of specific pollu tants and measures that can be taken by the public to reduce exposure. While not part of Colorado’s SIP, the advisories are part of an ongoing commitment by the State to inform and edu cate citizens about air quality.

In addition to the daily Front Range and Gra nd Junction air quality forecasts, the state has expanded its forecasting and notificat ion abilities statewide. The stat e utilizes data from monitors- 10 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 throughout Colorado and will issue a h ealth advisory if monitors s how, or are expected to show, an exceedance of air quality standards.

The state issues statewide smoke and blowing dust advisories when conditions show that such an event is imminent or in process. The advisories include public notification and education elements, and inform the public about actions to take during imminent blowing dust and wildfire events that could lead to high levels of particulate matter.

The smoke and blowing dust advisories may be issued as part of EPA-approved Natural Events Action Plans that have been developed for Lamar and Alamosa, and for wildfires. The advisories may also be issued independently of such Natural Events Action Plans for communities not covered by the plans.

Other Colorado communities also maintain and operate daily air quality forecasts, including Mesa County on the Western Slope and El Pa so County in the Co lorado Springs area.

Prevention of Significant Deterioration of Air Quality and Visi bility Protection

Prevention of Significant Deterioration Colorado Air Quality Co ntrol Commission Regula tion 3 (Stationary Sour ce Permitting and Air Pollution Emission Notice Requirements), Regul ation 6 (Standards of Performance for New Stationary Sources) an d Colorado’s Long Term Strategy for Visibility Protection adequately address Prevention of Significant Deterioration and Visibility Prot ection. For exam ple, new major stationary sources or major modifications are restri cted in their emissions in order to protect the PSD increment under Colorado Ai r Quality Control Commission Regu lation 3. PSD and visibility analyses are also required by NSR regulations of Colorado. Colorado is required to review new major stationary sources and major modifications prior to construction to assess potential impacts on visibility in any Clas s I Area. Colorado Air Quality Cont rol Commission Re gulation 3.XI.E, “New Source Review” (Appendix D) describes th e applicant’s demonstration that the proposed source will not have an adverse effect on visibility in Class I Areas.

Visibility

Colorado relies on its Regional Haze SIP to prot ect visibility. The Regional Haze SIP received approval from the U.S. EPA on September 10, 2012, when the Regional Administrator signed final rulemaking that is awaiting pu blication in the Federal Register.

In addition, The Interstate Transport SIP submitted to EPA on March 31, 2010 and approved by EPA ( 77 FR 1027, 75 FR 31306, 76 FR 22036 ), demonstrates that there is a significant downward trend in Colorado’s visibility im pairing emissions, visibility in surrounding Mandatory Class I Areas is improving over time, and regional modeling indicates that Colorado has an extremely small contribution to out-of-st ate haze. Thus, air pollution sources and other types of emission activity within the State of Colorado do not interf ere with measures required to be included in the applicable implementation plan of another state to protect visibility.

Clean Air Act Section 110 (a)(2)(K) - Ai r Quality Modeling and Data Handling- 11 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 Colorado has the authority and reso urces to model for all criteria pollu tants. Air quality modeling is done for SIP revisions and for transportation confor mity. Colorado Air Qual ity Control Commission Regulation 3 (Stationary Source Permitting and Air Pollution Em ission Notice Requirements) requires stationary sources to predict the effect of air pollutants in attain ment areas. Regulation 3 also details the State of Colorado’s program rega rding permitting as related to air qualit y modeling and data handling in pred icting the effect of emissions of a pollutant with an established NAAQS.

Regulation 3 Part A, Section V III "Technical Modeling and Monitori ng Requirements" states that all estimates of ambient concentrations required und er Regulation 3 shall be based on the applicable air quality models, data bases, and other requirements generally ap proved by EPA and specifically approved by the Division. Part A also requires all m odeling data used to dete rmine compliance to be appropriate given the topography, meteorolog y and other characteristics of the region.

The Modeling, Meteorology, and Emission Inventory Unit within the Division performs and reviews air quality impact analyses for a variety of programs, incl uding state implementation plan revisions, transportation conformity determinatio n, stationary source permitting, environmental impact statements, and hazardous wa ste site studies. The analyses include modeling, meteorological analysis, and emission inventory development for mo bile sources and area st ationary sources such as woodburning. The unit also performs air quality forecas ting for the Denver-a rea High Pollution Season, open burning, a nd for special air quality studies. Ad ditional informatio n regarding these programs and authority is provided below. Some of these programs are found in the SIP. For example, both Colorado Air Quality Control Commission Regulation 4 (Woodburning) and the Denver PM 10 SIP address State air qu ality modeling programs.

PSD and Increment Consumption - Colorado's PSD program includes a requirement that the State periodically assess the adeq uacy of its plan to prev ent significant deteriorati on of air quality. This is presented in Regulation 3, Part D, Section X.A.4. Part D also re quires major sources to conduct air quality impact analyses for PSD increment consumption and for compliance with NAAQS. Part D also requires analysis of the impair ment to visibility, wate r, soils, and vegetatio n that would occur as a result of the emissions of a regulated pollutan t in significant amounts and general commercial, residential, industrial, and other growth a ssociated with the sour ce or modification.

SIP Development - Modeling is performed in the de velopment and revision of State Implementation Plans, as needed or prescribed by the U.S. EPA, to ensure that specific ar eas of the state will maintain or re-attain co mpliance with the NAAQS in light of development and in creased population and traffic.

Permits - The primary Co lorado regulation for ai r quality permits is Colo rado Air Quality Control Commission Regulation No. 3. Certain new/modified air polluti on sources are subject to the regulatory modeling requirements in Regulation 3. Regulation 3, Part A, subsection VIII describes

Colorado’s technical modeling and m onitoring requirements. Modelin g is often required to obtain a construction permit.

The state submits data to the U.S. EPA as requir ed under Regulation No. 3, Part D, Section VI.C. requiring the Division to transmit to the Administ rator of the U. S. EPA a copy of each permit application relating to a major stationary source or major modification subj ect to this regulation,- 12 – Draft Colorado 110 SIP Elements – 2008 Ozone NAAQS November 30, 2012 and provide notice of every action related to the consid eration of such permit.

Clean Air Act Section 110 (a )(2)(L) - Permitting Fees

The State of Colorado requires the owner or operator of a majo r stationary source to pay the Division any fee necessary to cover the reasonable costs of reviewing and acting upon any permit application. The collect ion of fees is describe d in Colorado Air Qua lity Control Commission Regulation 3. Specifically, Regulation 3, Part A. Sec tion VI describes that ea ch applicant required to obtain a permit must pay a fee, in cluding the cost of permit review and relevant actions and that stationary source owners or operators must pay an annual fee base d on total emissi ons. The funds are used by the State to administer programs for the control of air pollution fr om stationary sources.

Clean Air Act Section 110 (a)(2)(M) - Consultati on/Participation by Affected Local Entities

The Colorado Air Pollution Prev ention and Control Act 25-7-105( 1)(d), C.R.S. requires a satisfactory process of consultation with genera l purpose local governments and any federal land manager having authority over federal land to which the state implementation plan applies, pertaining to transportation controls, air qualit y maintenance plan requirements, preconstruction review of stationary sources of air pollution, or any measure re ferred to in the PSD or the NNSR permitting programs, or granting delayed compliance orders pur suant to Section 25-7-118, C.R.S.

Colorado Air Quality Control Commission Regula tion 3 provides for consul tation and participation by local entities. Local governments receive notice and have the opportunity to comment on and participate in construction permit review proce dures and operating permit application procedures under the provisions of Reg. 3, Part D. Section IV.A.1., “P ublic Comment Re quirements.”

Local government coordination and c onsultation is also described in 25-7-128, C.R.S. which covers local government’s authority to enact air pollution resolutions or ordinances, standards and regulations, their submission and enforceability as part of the SI P, and the coordination of air pollution plans and programs between the state and local governments.

Colorado Air Quality Control Commission Regulatio n 10, “Transportation C onformity,” defines the criteria the Colorado Air Qua lity Control Commissi on uses for trans portation conformity determinations to develop SIP revisions in no n-attainment areas. Interagency consultation requirements are detailed in Reg. 10, and meet the federal requirements under 40 CFR 51.390, as published on August 15, 1997 ( 62 FR 158 ).

The Colorado Air Quality Cont rol Commission holds a public hearing before adopting any regulatory revisions to the SIP. Local political subdivisions may participate in the hearing. The requirements for public hearings, including public notice of heari ngs, are establishe d in 25-7-110, C.R.S. that describes the procedures to be followed in setting standa rds and regulations.**e~ 03infrastructu** **r** x 'i:j Ai r P o lluti o n C o n

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services fo r Bus i ness and I ndust ry

I nd oor E n vi r onmen t Public Comment Opportunities

Th e A i r P ollutio n Cont r ol Division is se e ki ng pu blic comm e nt on the follow i n g items:

• I n f rastructure St a te I mplementat io n P l a n elements f or 200 8 Ozone S t a nda r d**Open** f or p u blk: comme nt f rom Nove m ber 30 through De<:embe r 30

, 2012
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a n for submission to the u S E nv i ronment Protection Age n cy Ex plains Colorado ' s reso u r ces a nd a uthority to e n f orce the 2008 ozone National Ambie n t Ai r Qua lity Standards as requ i r ed under section 110 (a) (1) and ( 2 ) o f the Clean Ai r Act

• A i r Oual i tv Mon i toring Network Moc! if tc ation s Publ !c Comment Oooortumtv Open for pub l ic comment t h rough close
of business De<:ember 27, 2012
E xp l a i ns r ecen t changes to the a i r q u a l i ty monito ri ng netwo r lc

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• p ermit p ub l ic Notices

Send Com m en t s :

Comment s a n d requests f or more i n f ormatiOn o n the abo v e it e ms may be sen t b y email to cdohe commentsaocd@sfal e co us

You may also mai l your comments to

ColOr

ad o Ai r Pollutto n**Contr~** DivSIO n Att n Bob Tr u e , APCD

- B1December 21, 2012

Colorado Air Pollution Control Divsio n Attn: Bob True, APCD

- B 1 4300 Cherry Creek Drive Sout h Denver, CO 80246

- 153 0

VIA EMAIL to: cdphe.commentsapcd@state.co.us

Re: Comments on (1) Colorado Infrastructure State Impleme ntation Plan Elements fo r 2008 Ozone S tandar d and (2) Air Q uality Monitoring Network Modification

Dear Mr. True:

Thank you for accepting these comments on behalf of the Sierra Club on the two above

referenced actions. We apprec iate Colorado ’ s efforts to reduce air pollution, and look forward to working with the state through out the implementation process for the 2008 ozone NAAQS. Because the comment period for these actions takes place over the holiday season, the se initial comments are brief. We reserve the right to submit additional comments and data as we develop them and this process continues

.
Sierra Club is seriously concerned that emissions of volatile organic compounds (VOCs)

an d NO x from oil and gas production are contributing to substantial ozone pollution problems throughout much of the country and in the Rocky Mountain west, in particular. We are , of course, aware of Colorado ’ s efforts to control these emissions, and discussed its regu latory efforts in detail in comments upon EPA ’ s now

- final New Source Performance Standards for the industry. 1 The NSPS, and Colorado ’ s existing rules, however, still leave significant amounts of pollution uncontrolled. The federal standards, for instance, do not c ontrol significant emissions from most existing

1 See Comments of S i erra Club et al. on Proposed Oil and Gas Production NSPS (Nov. 30, 2011), attached as Ex. 1.infrastructure, liquids unloading from any wells
, completion emissions from

hydrofractured oil wells, or emissions from the transmission and distribution systems. Although the Colorado regulations may addre ss some of these gaps, there is significantly more work to be done to assure compliance with the ozone NAAQS by managing this pollution, including by enforcing and extending the reach of the NSPS and the existing state rules. In fact, researchers from NOAA have measured atmospheric concentrations of VOC s near Colorado oil and gas fields significantly higher than would be expected on the basis of federal inventory data. 2

As you are awa re, the infrastructure SIP must “assure that the [NAAQS] are achieved. ” 42 U.S.C. § 7410(a) (2) (C)

. Colorado cites Regulation 3, which addresses ozone formations in certain areas not in compliance with the NAAQS, and Regulation 7, which focuses on emissions in the Denver metr o

- area, as measures satisfying these requirements, but th ose rules do not clearly assure compliance because they are limited only to certain areas of the state (indeed, in the case of Regulation 3 , to areas not now in attainment).

Colorado must ensure that oil and gas sources not now covered by its regulations will

not interfere with NAAQS compliance, and has the authority to require appropriate control equipment and practic es to do so. See 42 U.S.C. § 7410(a)(2)(F). We urge Colorado to ensure that oil and gas production sources throughout the state are covered by regulations at least as rigorous as those in Regulations 3 and 7, and which are sufficient to control ozone precursors from the industry to the point where NAAQS compliance is assured.

In this regard, we remind Colorado that E PA ’ s Clean Air Science Advisory Committee has repeatedly found that the 2008 ozone NAAQS is
, in fact
, too lenient to adequately protect public health and welfare and that EPA must, accordingly, lower the NAAQS levels shortly. In fact, EPA has proposed a revised NAAQS at levels as much as 15 ppb below the current NAAQS, and will return to that rulemaking this coming year. Given this, Colorado would be well advised to get ahead of the problem , providing industry more regulatory certainty and protecting the public, by ensuring that oil and gas sources are sufficiently controlled to move the state towards compliance with an appropriately rigorous standard (likely closer to 60 ppb than the 75 ppb of the current NAAQS).

2 Gabrielle Petron et al.
, Hydrocarbon Emissions Characterization in the Colorado Front Range

– A Pilot Study
, Journal of Geophysical Research (2012), attached as Ex. 2.Colorado also must ensure that its monitoring network is sufficient to provide reliable

information sufficient to enforce th e NAAQS. 42 U.S.C. § 7410(a)(2)(B). Inadequate monitoring in oil and gas production regions is a recurring national problem, which Sierra Club has recently joined other groups to petition EPA to address on an urgent basis under section 114 of the Cl ean Air Act. 3 This effort, of course, in no way obviates Colorado ’ s (and EPA ’ s) obligation to ensure that the SIP and the monitoring network are sufficie nt to address the requirements of section 110 of the Act. We therefore request that the state, in its monitoring network revisions and in its SIP, demonstrate and ensure that the system is sufficient to provide full coverage of oil and gas pro duction emissions, and allows regulators to readily identify and address sources which risk undermining NAAQS attainment or which contribute to nonattainment.

Thank you for reviewing these comments. Please contact me with any questions or concerns. We look forward to working with you as this process continues.

Sincerely,

Craig Holt Segall Staff Attorney Sierra Club Environmental Law Program 50 F St NW, Eighth Floor Washington, DC, 20001 (202)

- 548

- 4597 Craig.Segall@sier raclub.org

3 See Petition of Environmental Defense Fund, Sierra Club, et al. (Dec. 2012), attached as Ex. 3.

# STATE OF COLOMDO

John W. Hicken l ooper, Governor Christopher E

. Urbina, MD, MPH

Executive D i rector and Chief Medical Officer

Dedicated to protecting and improv ing th e health and envi r onment 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 Located i n Glendale

, Colorado (303 ) 692-3090 http :// www.cdphe.state

. co

. us

December 28, 2012

Craig Holt Segall Sierra C lub E nv i ronmental Law Program 50 F St NW, Eighth Floor Washington, DC 20001 Colorado Department of Public Health and Environment

Rc: Responses to Comments on Colorado Infrastructure State Implementation Plan Elements for 2008 Ozone Standard and Air Quality Monitoring Network Modification

Dear Mr. Segall:

Thank you for your comments on the Colorado 2008 Ozone Infrastructure State Implementation Plan (I

S IP ). As you probably know

, the purpose of the I-SIP i s to establish that Co l orado has the required
program elements and resources necessary to implement Natio nal Ambient Air Qua li ty Standards (NAAQS)

. As such, the I-SIP is a part of our lar ger SIP planning process, which includes co mpliance with the provisions of Part D of the Clean Air Act (Act) governing plan requirements for non-att ainment

areas, as well as other parts of the Act designed to assure attainment and maintenance of all NAAQS throughout Colorado.

Given it s somewha t narrow purpose, we be l ieve that the comments addres sed in your letter are outside the scope of the I-SIP. Nevertheless, your comm ents r aise important and l egitimate concerns regardin g Colorado's ongoing Ozone planning efforts. We acknow ledge that Colorado faces additional challenges in bringing the Denver Me t ro/North Front Ran ge (DMAINFR) Non

- Attainment Area into compliance

w i th the 2008 Ozone Standard. A lowered ozone standard in th e future will increase this challenge, and could create addit io nal ozone non-attainment areas within the state. G i ven this, we are committed to exploring additional strategies that could be employed to reduce ozone precursor emissions within the
state.

With respec t to your comments r ega rding m onitoring, Co lorado operates and maintains a ro bus t ozone

mon i toring network in both the DMA/NFR Non-A ttainme nt Area and in other parts of th e state. Ozone is a secondary p ollutant and e l eva ted concen trations are ge nerally not found in precursor sou r ce area s, such as oil and gas development areas or urban areas. Many of Colorado's ozone monitors are located in

areas that have been modeled to have expected higher concentrat ions that are downwind of precursor

source areas. Colorado plans to continue monitoring for ozon e in expected high concentration areas fo r NAAQS compliance.We agree with your statements that the oil and gas industry is a significant contributor to Ozone
precursor emissions within the DMAINFR Non-Attainment Area as well as in other parts of the state. As your comments acknowledge, Colorado has take n significant steps over the last several years to control emissions from oil and gas sources. Given the growth in the oil and gas industry, however, more inay need to be done in order to assure compliance with the existing and any future Ozone NAQQS. In recognition ofthis, we are initiating a stakeholder process in January 2013 to further explore costeffective ways to improve oil and gas emission controls, which we anticipate will culminate in rule revisions to be considered by the Colorado Air Quality Control Commission at the end of2013

. We welcome Sierra Club's participation in that process, as well as any additional future processes related to the 2008 Ozone NA.AQS.

Thank you again for your comments.

Sincerely,

Garry Kaufman Deputy Director, Air Pollution Control Division, Colorado Department of Public Health and Environment

2