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 Se!ifices Division 

Denver, Colorado 80246-1530 8100 Lowry Blvd. 

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

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

Located in Glendale, Colorado 

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

June II, 2008 

Robert Roberts 

Regional Administrator 

US EPA Region VIII 

999 18'h Street, Suite 500 

Dynve~.-G,~o _!t92 

Dear ~ X:~~ -~-- -~ 

Colorado Department 

of Public Health 

and Environment 

The follo~ng;ctions 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. 

);> Interstate Air Pollutant Transport State Implementation Plan 

);> Regulation Number II, Vehicle Emissions Inspection Program 

);> Regional Haze State Implementation Plan Element and Regulation Number 3, PartE 

);> Regulation Number 3, Part A; regarding Stationary Source Fees 

Colorado is working to complete the analyses on four more BART sources and to complete the reasonable 

progress analysis requirements for the federal regional haze rule. Colorado is not asking for parallel 

processing, but that you consider what we have submitted today. The BART and Reasonable Progress 

components will be forthcoming to EPA as soon as they can be resolved in our process. 

We look forward to your timely review and approval of this request. The Office of the Colorado Air Quality 

Control Commission may submit any additional technical support documentation or information that you may 

need for review directly to the EPA. Should there be any questions regarding these materials, please contact 

Doug Lempke at the Commission Office at 303-692-34 78. 

Thank you. 

Sincerely, 

;\ ~--_ ..... \~~ ~Qt:, \ ~-- > 

, James B. Mru:ti 

\ E~ecutive Director 

\"· \ 

'c.,) Martha Rudolph 

Paul Tourangeau 

Doug Lempke 

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. Hearing held on October 18,2007. 

• Hearing Notice and Proposed Language as Published in the CCR 

• Meeting Agenda where Public Hearing Occurred 

• Procedural Documents of the Commission 

• Parties, EPA and Public Comments if any. 

• Statement of Basis, Specific Statutory Authority and Purpose for each regulation. 

• Opinion of the Attorney General 

• Regulation as published in the CCR 

• Notice of final adoption 

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 

hnp:/l'www.cdphc.state.co.us 

EDO-AQCC-A5 

4300 Cherry Creek Drive South 

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 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 VI.D.1. 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. commencing in 2007. 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. 

FEDERAL REQUIREMENTS: 

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

subject of this 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: October 18,2007 

TIME: 9:00 AM 

PLACE: Colorado Department of Public Health & Environment 

4300 Cherry Creek Drive South, Sabin ConfRoom 

Denver, Colorado 80246 

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

Page I of3 
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 submissions prior to the hearing are requested to allow 

review prior to presentation at the hearing. Written 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. An original and three (3) copies of a written 

petition for party status must be filed with the Office of the Air Quality Control Commission no 

later than 5:00p.m. August 24, 2007. The petition must: I) identifY the applicant; 2) provide 

the name, address, and telephone and facsimile numbers 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. Copies of the petition for party status 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. 

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 twenty (20) 

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

the Commission's procedural rules and must be filed with the Office of the Commission by the 

date specified for party status requests. Initial alternative rules must also be filed 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 

Steve Brown 

Attorney for the Commission 

Attorney General's Office 

1525 Sherman St., S'h Floor 

Denver, CO 80203 

Air Pollution Control Division 

Kirsten King 

APCD-BI 

4300 Cherry Creek Drive South 

Denver, CO 80246 

Will Allison 

Attorney for the Division 

Attorney General's Office 

1525 Sherman St., 5th Floor 

Denver, CO 80203 

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

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

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

Page 2 of3 
STATUS CONFERENCE: 

A status conference will be held August 31, 2007 at 3:00p.m., at the Department of Public 

Health and 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 CONFERENCE/PREHEARING STATEMENTS: 

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

prehearing conference will be held September 17, 2007 at 3:00p.m. in the Commission Offices 

at 4300 Cherry Creek Drive South, Denver. All parties must submit an original and Twenty (20) 

copies of a preliminary prehearing statement to the Commission Office by 5:00 p.m., 

September 10, 2007. In addition, copies ofthese documents must be mailed or hand-delivered 

by that date to all persons who have requested party status. A copy of the pre hearing statement 

must also be delivered to the Division point of contact and each of the Assistant Attorney's 

General identified above by 5:00p.m. September 10, 2007. Any revisions to the prehearing 

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

Commission at the prehearing conference. Any exhibit included in the prehearing statements 

will be mailed to individual Commissioners for review prior to the hearing, provided the party 

files twenty (20) copies of such exhibit. Rebuttals to the prehearing statement may be submitted 

to the Commission office and all other parties by 5:00 p.m., September 24, 2007. 

STATUTORY AUTHORITY FOR THE COMMISSION'S ACTIONS: 

The specific statutory authority for these revisions is set forth in Section, 25-7-114.7, which 

gives the Air Quality Control Commission authority to set annual emission fees for regulated and 

hazardous air pollutants. 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 _ _,J=ul~v"--- at Denver, Colorado 

Colorado Air Quality Control Commission 

Douglas A. Lempke, Administrator 

Page 3 of3 

Meeting Agenda where Public Hearing Occurred 

-

STATE OF COLORADO 

Bill Ritter, Jr., Governor 

James B. Martin, Executive Director 

COLORADO AIR QUALITY CONTROL COMMISSION 

hltp://www .cdphe. stah:.co. us 

4300 Cherry Creek Drive South 

OED-OLRA-A5 

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 Meeting and Agenda 

Air Quality Control Commission 

& --

Board of Health 

October 18, 2007 

Colorado Department of Public Health & Environment 

4300 Cherry Creek Drive South, Sabin Room 

Note": 

Call to Order: 

Approval of Minutes: 

Public Comment: 

Agenda Review: 

Denver, Colorado 

9:00a.m. 

Board of Health members shall join the Commission to discuss 

the Commission's Annual Report to the Pubic in fulfillment of 

the requirements of25-7-105(4)(a) 

Determination of a Quorum 

Review/Approval of the September 21, 2007 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 any changes that have 

made to the agenda since its publication. 
REQUEST FOR PUBLIC HEARINGS 

l. Public Land Emission Inventory 

The Division will request that the Commission set a public hearing for November to 

consider public land emission inventories for all State owned and managed lands. The 

inventory will include both current emissions and projected future emissions over at least a 

five-year period. 

2. Denver Regional Council of Governments (DR COG) Conformity 

The DRCOG will request that the Commission hold a public hearing in November for 

AQCC concurrence with its anticipated Transportation Conformity findings regarding the 

2035 Regional Transportation Plan. 

3. North Front Range Metropolitan Planning Organization (NFRMPO) Conformity 

The NFRMPO will request that the Commission hold a public hearing in November for 

AQCC concurrence with its anticipated Transportation Conformity findings regarding the 

2035 Regional Transportation Plan and the 2008-2013 Transportation Improvement 

Program. 

WRITTEN COMMENT 0NL Y RULEMAKING HEARINGS 

4. Procedural Rules 

The Attorney General's Office will present a proposal to revise the procedural rules to 

require the electronic submission of rulemaking hearing documents. 

5. Regulation Number 6, Part A 

The Air Quality Control Commission will consider proposed revisions to its Regulation 

Number 6, Part A to incorporate by reference additions and changes the U.S. Environmental 

Protection Agency (EPA) made to its New Stationary Source Performance Standards 

(NSPS) in 40 C.F.R. Part 60. 

6. Regulation Number 8, PartE 

The Air Pollution Control Division will present to the Commission a proposal to revise 

regulation Number 8, PartE (MACT Standards) to incorporate by reference changes the 

U.S. Environmental Protection Agency made to its National Emission Standards for 

Hazardous Air Pollutants rules. 

RULEMAKING HEARINGS 

7. Regulation Number 3, Part A 

(I 0 minutes presentation, 10 minutes discussion) 

The Division will present to the Commission a proposal to increase the Air Pollution 

Emission Notice emission fees to the statutory maximum to address increased program 

costs. 

8. Regulation Number 11 

(15 minutes presentation, 15 minutes discussion) 

The Commission will consider a proposal to revise Regulation 11 to implement specific 

provisions and authorities to begin an enforceable high emitter vehicle identification 

program. The Commission will also consider cutpoints and pass/fail criteria for remote 

sensing for the HB06-1302 plan. 

2 
9. Regulation Number 6, Part A and 8 

(60 minutes presentation, 30 minutes discussion) 

The Air Quality Control Commission will consider revisions to Regulation Number 6, Part 

A and B, that would include revisions to the federal New Source Performance Standards for 

Coal-Fired Power Plants, state-only New Source Performance Standards for Coal-Fired 

Power Plants specific to Mercury, and changes associated with reorganizing Regulation 6. 

PUBLIC HEARINGS 

10. PM2.5 Designations 

(I 0 minutes presentation, 10 minutes discussion) 

The Division will present to the Commission a proposal to consider Statewide designations 

for the revised PM2.5 NAAQS. 

BRIEFINGS, REPORTS AND COMMISSION DISCUSSIONS 

11. Annual Review of the Air Quality Management of Oil and Gas Operations in Colorado 

(35 minutes presentation, 45 minutes discussion) 

The Division will review how it is managing the air pollutant emissions and impacts from 

oil and gas operations in Colorado. An update of the implementation of Regulation Number 

7' s oil and gas requirements will also be provided. At this briefing the Division will discuss 

resources, inspections/compliance, permitting, monitoring, regulatory/mitigation efforts, 

outreach, and ongoing health studies among other topics. 

12. Annual Report to the Public 

(1 0 minutes presentation, 10 minutes discussion) 

The Commission's Administrator will review the annual report to the public and discuss air 

quality in the various regions of the state. The Commission will provide an opportunity for 

public comment. 

13. 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. 

14. Division Director's Report- Paul Touranageau 

Monthly activities report 

15. Attorney General's Report- Steve Brown 

Update of any recent court actions on air quality issues 

16. Administrator's Report· Doug Lempke 

November meeting agenda items review 

Adjourn 

3 

Agenda Item Control Sheet (AICS) 

(and attachments) 

Memorandum ofNotice {MON) 

- Issue Fact Sheet 

- Economic Impact Analysis (EIA) 

COLORADO AIR QUALITY CONTROL COMMISSION 

AGENDA ITEM CONTROL SHEET 

1u:m Title: Proposed Revisions to Regulation No. 3. Part A. Section VI.D.1. 

Meeting date : __ ""O""ct,o"'b""e,_r -'-'1 8""''-'2"'0""0,_7 

TYPES OF ACTION 

NON-HEARING ACTIONS REQUEST FOR HEARING HEARING 

- Administrative _ Public Rulemaking X Public Rulemaking 

_Briefing - Informational - Informational 

Policy 

Area Designations 

RECOMMENDED ACTION 

X Adoption _Approval - Denial 

MOTION 

X.. Required - Attached _ Not applicable 

STATUTORY AUTHORITY 

General Specific~ 

EPA SUBMITTAL 

Is this issue considered a SIP revision? Yes No X 

Which SIP? Date of EPA submission deadline: 

Regulation No. 3, Part A, Section VI.D.1 
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.r 

commencing in 2007. The proposed increase raises fees to the limit set by the Colorado Legislature a 

would be used to fund legislatively-approved FTE (for Division permit backlog, for oil and gas activities, 

and for additional air monitoring as directed by the General Assembly) and helps address present 

revenue shortfalls. 

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 that annual emission fees for criteria pollutants shall be set at $17.97 per ton and that 

the fee for hazardous air pollutants shall be set at $119.96 per ton. 

The current fee levels are inadequate to generate revenue sufficient to cover existing spending. 

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 the current statutory limits of $17.97 per ton for criteria 

pollutants and $119.96 per ton for HAPs. The Division further requests that the matter be set for hearing 

in October. 

ATTACHMENTS: 

1. Memorandum of Notice 

2. Final Economic Impact Analysis 

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

4. Statement of Basis and Purpose 

5. Presentation 

6. Comments from Rocky Mountain Clean Air Action 

Regulation No. 3, Part A, Section VI.D.1 
SIGNATURES: 

1.ntr 

Date 

Date 

3. 

Date 

4. 

Division Director Date 

Revised: 9/19/07 

Regulation No. 3, Part A, Section VI.D.1 

Date: 

To: 

Subject: 

MEMORANDUM OF NOTICE 

October 18, 2007 

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 of Regulation No. 3. Part A, Section VI.D.I. 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 2007. The proposed increase raises 

fees to the limit set by the General Assembly, and would be used to cover present revenue 

shortfalls and additional monitoring requested by the General Assembly. 

RULEMAKING PACKAGE 

This package includes the language of the proposed changes to Regulation No.3, Part A, Section 

VI.D.l, including the Statements of Basis, and final economic analysis of the proposed changes. 

EXPLANATION OF THE PROPOSED REVISION 

Pursuant to Regulation No. 3, Part A, Secti9n 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 that annual emission fees for criteria pollutants shall 

increase from $16.54 to $17.97 per ton and that the fee for hazardous air pollutants shall increase 

from $114.96 to $119.96 per ton. The statute further provides that if the amount of money left in 

the Stationary Sources Control Fund at the end of a fiscal year ("Target Reserve") exceeds 

16.5% of the money expended from the fund during the fiscal year, the fees shall be reduced so 

that the expected Target Reserve at the end of the next fiscal year will be below 16.5%. 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 exceed the 16.5% threshold. 

Due to a decrease in fee revenues, the Division is currently operating under a shortfall on 

an annual basis. Additional revenue will be needed in the near future to cover currently 

authorized spending. The current fee levels are inadequate to generate revenue sufficient to 

cover existing spending. Accordingly, the Division is requesting that the Commission modifY 

Regulation No. 3, Part A, Section VI. D.!. so as to increase annual emission fees to $17.97 per 

ton for criteria pollutants and $119.96 per ton for HAPs. 
MATERIALS TO BE INCORPORATED 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 

currently authorized spending. 

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

The proposed emission fee increase will fund the Division's current work through the end of the 

2007-2008 fiscal year. 

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 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 requirements 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. 

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? 

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

solvency of the Division through the end of fiscal year 2007-2008. 

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. 

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. prehearing and hearing process by obtaining party status in accordance with the Commission's 

Procedural Rules. Additionally, as part of the Decision Item process, the Division will actively 

engage the regulated community in a stakeholder process that will address the need for additional 

FTE. 

CONTACT INFORMATION: 

For more information please contact: 

Theresa Amoroso 

Regulatory Development 

Stationary Sources Program 

Air Pollution Control Division 

4300 Cherry Creek Drive South 

Denver, CO 80246-1530 

Phone: (303) 692-3111 

Fax: (303) 782-0278 

E-mail: theresa.amoroso@state.co.us 

Final 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 .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. The current fees are set 

at $16.54 per ton for criteria pollutants and $114.96 per ton for HAPs. The proposed 

increase would raise the fees to $17.97 per ton for criteria pollutants and $119.96 per ton 

for HAPs. 

Based on an analysis of the state's current emission inventory the proposed 

increase will cost fee payers an additional $351,635 per year. Broken down by individual 

air pollution sources the estimated median increase will be $47.04 per year, the estimated 

maximum increase will be $48,384 per year. 

Parties, EPA and Public Comments 

BEFORE THE AIR QUALITY CONTROL COMMISSION 

STATE OF COLORADO 

PREHEARING STATEMENT OF THE AIR POLLUTION CONTROL DIVISION 

IN THE MATTER OF THE PROPOSED REVISIONS TO REGULATION NUMBER 3, 

ANNUAL EMISSION FEES 

SUMMARY STATEMENT OF ISSUES 

The Air Pollution Control Division is requesting that the Air Quality Control 

Commission revise to its Regulation Number 3, Part A, Section VI.D.l., and raise the 

annual emission fees for criteria and hazardous air pollutants, commencing in 2007. 

Annual fees for regulated pollutants would increase by $1.43, from $16.54 to $17.97. 

Annual fees for hazardous air pollutants would increase by $5, from $114.96 to $119.96. 

The requested revision would be in accordance with the provisions and limits of§ 25-7-

114.7. C.R.S. The proposed fee increase would be used to fund legislatively-approved 

staffing increases to address permitting, oil and gas activities, and additional air quality 

monitoring. 

There are no parties to this rulemaking, and no entity has raised any objections to 

the proposed increase. Accordingly, the Division respectfully requests that the 

Commission approve the fee increase set forth in the proposed rule. 

WITNESSES and EXHIBITS 

Kirsten King of the Air Pollution Control Division will present testimony 

regarding the need for the annual fee increase. The Division does not anticipate 

introducing any exhibits at the hearing. 

Respectfully submitted this I Oth day of September 2007. 

JOHN W. SUTHERS 

Attz::a~? ~~ WILLIAM C. ALLISON V, 25288* 

First Assistant Attorney General 

Environmental Quality Unit 

Natural Resources and Environment Section 

Attorneys for Colorado Department of Public 

Health and Environment, Air Quality 

Control Division 
-

1525 Shennan Street, 5th Floor 

Denver, Colorado 80203 

Telephone: (303) 866-5008 

*Counsel of Record 
OCKY MOUNTAIN 

AIR ACTION 

September 24, 2007 

Colorado Air Quality Control Commission 

EDOAQCC-A5 

4300 Cherry Creek Drive South 

Denver, CO 80246 

RE: COMMENTS ON mE PROPOSED REVISIONS TO REGULATION NUMBER 

3, STATIONARY SOURCE PERMITTING AND AIR POLLUTION EMISSION 

NOTICE REQUIREMENTS, CONCERNING THE INCREASE OF 

STATIONARY SOURCE EMISSION FEES 

Dear Air Quality Control Commissioners: 

Rocky Mountain Clean Air Action, Environment Colorado, Oil and Gas Accountability 

Proje.ct, and Western Colorado Congress support the Air Pollution Control Division's proposed 

revisions to regulation number 3 regarding stationary source emission fees. We urge the 

Commission to adopt the Division's proposed rule. An increase in permit fees will not only 

allow the Division to better regulate air pollution from oil and gas development, but better 

protect Colorado citizens from harmful air pollution. 

However, we want to strongly emphasize that Colorado's air permit fee cap continues to 

be far below what the Clean Air Act recommends. Section 502(b)(3) of the Clean Air Act sets a 

minimum fee of $39.48 per ton of criteria air pollutant released, although the law is clear that 

fees must be set to cover "all reasonable (direct and indirect) costs required to develop and 

administer the permit program." See, 42 USC § 7661a(b )(3)(A). Reasonable costs include the 

costs of reviewing and acting upon permit applications, implementing and enforcing the terms 

and conditions of any permit, emissions and ambient monitoring, preparing generally applicable 

regulations, or guidance, modeling, analyses, and demonstrations, and preparing inventories and 

tracking emissions. See, 42 USC § 7661a(b)(3)(A)(i)-(vi). 

It is clear that Colorado's permit fees are insufficient to fully cover all reasonable costs 

required to develop and administer the state's permit program. To this end, in addition to 

approving the proposed fee increase, we also urge the Commission to direct the Division to seek 

legislative support for increasing air permit fees by law in the state of Colorado so that the costs 

of reviewing and acting upon permit applications, implementing and enforcing the terms and 

conditions of any permit, emissions and ambient monitoring, preparing generally applicable 

regulations, or guidance, modeling, analyses, and demonstrations, and preparing inventories and 

tracking emissions are fully covered. 

Rocky Mountain Clean Air Action • www.ourcleanair.org 

1536 Wynkoop, Suite 302 • Denver, CO 80202 • (303) 454-3370 • rmcleanair@gmail.com 
Thank you for the opportunity to comment. 

Sincerely, 

Jeremy Nichols 

Director 

Rocky Mountain Clean Air Action 

On behalf of: 

Jennifer Goldman 

Oil and Gas Accountability Project 

PO Box 7193 

Bozeman, MT 59771 

(406) 587-4473 

Matt Baker 

Executive Director 

Environment Colorado 

1536 Wynkoop, Suite I 00 

Denver, CO 80202 

(303) 573-3871 

Patrick Barker 

Western Colorado Congress 

PO Box 2601 

Glenwood Springs, CO 81602 

(970) 379-3252 

2 
w· 

BEFORE THE Am QUALITY CONTROL COMMISSION 

STATE OF COLORADO 

IN THE MATTER OF PROPOSED REVISIONS TO REGULATION NUMBER 3, 

STATIONARY SOURCE PERMITTING AND AIR POLLUTION EMISSION NOTICE 

REQUIREMENTS, CONCERNING THE INCREASE OF STATIONARY SOURCE 

EMISSION FEES 

WITHDRAWAL OF PETITION FOR PARTY STATUs-ROCKY MOUNTAIN CLEAN 

Am ACTION, ENVmONMENT COLORADO, OIL AND GAS ACCOUNTABILIT.}: 

PROJECT, AND WESTERN COLORADO CONGRESS 

Rocky Mountain Clean Air Action, Environment Colorado, the Oil and Gas Accountability 

Project, and Western Colorado Congress hereby withdraw their August 24, 2007 petition for 

party status in the matter regarding proposed revisions to Regulation 3, stationary source 

permitting and air pollution emission notice requirements, concerning the increase of stationary 

source emission fees. 

Respectfully submitted this 29th day of August 2007. 

Jeremy Nichols 

Director 

Rocky Mountain Clean Air Action 

1536 Wynkoop, Suite 302 

Denver, CO 80202 

(303) 454-3370 

rmcleanairlalgmail.com 

On behalf of: 

Jennifer Goldman 

Oil and Gas Accountability Project 

PO Box 7193 

Bozeman, MT 59771 

(406) 587-4473 
Matt Baker 

Executive Director 

Environment Colorado 

1536 Wynkoop, Suite 100 

Denver, CO 80202 

(303) 573-3871 

Patrick Barker 

Western Colorado Congress 

PO Box2601 

Glen wood Springs, CO 81602 

(970) 379-3252 

2 
BEFORE THE Am QUALITY CONTROL COMMISSION 

STATE OF COLORADO 

IN THE MATTER OF PROPOSED REVISIONS TO REGULATION NUMBER 3, 

STATIONARY SOURCE PERMITTING AND AIR POLLUTION EMISSION NOTICE 

REQUIREMENTS, CONCERNING THE INCREASE OF STATIONARY SOURCE 

EMISSION FEES 

PETITION FOR PARTY STATUS--ROCKY MOUNTAIN CLEAN AIR ACTION, 

ENVIRONMENT COLORADO, OIL AND GAS ACCOUNTABILITY PROJECT, AND 

WESTERN COLORADO CONGRESS 

Rocky Mountain Clean Air Action, Environment Colorado, Oil and Gas Accountability Project, 

and Western Colorado Congress, and hereby petition for party status in the matter regarding 

proposed revisions to Regulation 3, stationary source permitting and air pollution emission 

notice requirements, concerning the increase of stationary source emission fees. Enclosed please 

find three copies with this original containing the requested information. Copies of this petition 

are concurrently being sent to the Air Pollution Control Division and Assistant Attorney General 

as indicated in the Notice of Public Rulemaking Hearing. 

Petition for Party Status 

I. Applicants 

Rocky Mountain Clean Air Action is a Colorado nonprofit membership corporation dedicated to 

protecting clean air for healthy children and healthy communities in Colorado and the 

surrounding region. 

Environment Colorado is a statewide, citizen-based environmental advocacy organization 

working to safeguard the state's air, water, and open spaces. 

Oil and Gas Accountability Project is the only organization in the Untied States with the sole 

mission of working with tribal, urban and rural communities to protect their homes and the 

environment from the devastating impacts of oil and gas development. 

Western Colorado Congress is a grassroots organization dedicated to working together to create 

healthy, sustainable communities in western Colorado. 

2. Applicants' Representative 

Name: Jeremy Nichols, Director 

Organization: Rocky Mountain Clean Air Action 
Address: 

City/State: 

Phone: 

Fax: 

E-mail: 

1536 Wynkoop, Suite 302 

Denver, CO 80202 

(303) 454-3370 

(303) 572-0032 

rmcleanair@gmail.com 

3. Issues With the Proposal 

Rocky Mountain Clean Air Action, Environment Colorado, Oil and Gas Accountability Project, 

and Western Colorado Congress support the proposed rulemaking and seek to ensure its swift 

and full adoption by the Colorado Air Quality Control Commission. The proposed fee increase 

is designed to respond to the Division's permitting backlog and the increased workload arising 

from the rapid growth of oil and gas development in Colorado. An increase in permit fees will 

not only allow the Division to better regulate air pollution from oil and gas development, but 

better protect Colorado citizens from harmful air pollution. 

However, we want to strongly emphasize that Colorado's air permit fee cap continues to be far 

below what the Clean Air Act recommends. Section 502(b)(3) of the Clean Air Act sets a 

minimum fee of $39.48 per ton of criteria air pollutant released, although the law is clear that 

fees must be set to cover "all reasonable (direct and indirect) costs required to develop and 

administer the permit program." See, 42 USC § 7661a(b)(3)(A). Reasonable costs include the 

costs of reviewing and acting upon permit applications, implementing and enforcing the terms 

and conditions of any permit, emissions and ambient monitoring, preparing generally applicable 

regulations, or guidance, modeling, analyses, and demonstrations, and preparing inventories and 

tracking emissions. See, 42 USC§ 766la(b)(3)(A)(i)-(vi). 

It is clear that Colorado's permit fees are insufficient to fully cover all reasonable costs required 

to develop and administer the state's permit program. To this end, in addition to approving the 

proposed fee increase, we also urge the Commission to direct the Division to seek legislative 

support for increasing air permit fees by law in the state of Colorado so that the costs of 

reviewing and acting upon permit applications, implementing and enforcing the terms and 

conditions of any permit, emissions and ambient monitoring, preparing generally applicable 

regulations, or guidance, modeling, analyses, and demonstrations, and preparing inventories and 

tracking emissions are fully covered. 

Respectfully submitted this 24th day of August 2007. 

Jeremy Nichols 

Director 

Rocky Mountain Clean Air Action 

2 
On behalf of: 

Jennifer Goldman 

Oil and Gas Accountability Project 

PO Box 7193 

Bozeman, MT 59771 

( 406) 587-44 73 

Matt Baker 

Environment Colorado 

1536 Wynkoop, Suite I 00 

Denver, CO 80202 

(303) 573-3871 

Patrick Barker 

Western Colorado Congress 

PO Box2601 

Glenwood Springs, CO 81602 

(970) 379-3252 

3 

Statement of Basis, 

Specific Statutory Authority and Purpose 

I. MM. October 18, 2007 Statement of Basis, Specific Statutory Authority and Purpose Revisions 

to Regulation No. 3, Part A, Section VI.D.1. 

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

Colorado Admi.nistrative Procedure Act Sections 24-4-103(4), C.R.S. for new and revised regulations. 

Basis 

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

,ne annual emission fees charged to air pollution sources in Colorado commencing in 2007. The revised 

fees are at the statutory limit set by Section 25-7-114.7, C. R. S. The increase is necessary to address 

decreasing fee revenues used to fund existing programs. These revisions are concurrent with other 

recent fee adjustments to ensure appropriate funding for the program. 

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 revisions to Part A, Section VI.D.1. were adopted to cover anticipated revenue shortfalls and fund 

requested additional FTE that will be used to address the Division's permitting backlog and the increased 

workload arising from the rapid growth of oil and gas sources in Colorado. 

COLORADO AIR QUALITY CONTROL COMMISSION 

ADOPTED: October 18, 2007 

1 

Opinion of the Attorney General 

CY'\'THIA H. COH \i.->.'\' 

DA:'oilEL D. D0~1Ei\IC'O 

STATE OF COLORADC 

OFFICE OF THE ATTOR"'EY 

t;E"\ERAL 

ST•.TE SERVICES, 

BLiLDING 

: 5~5 Si;;;-:·:na:-: S::·.?~:- 7:!: :-=-:~:;::;:· 

:)::~ve:-. Colo:-ado 8C203 

;>;-,;J::~ ~:::.u: 86::.-,;sc= :~ax ~383) 866-St~~: 

01'1"\ION OF THE ATTOR"\EY GE:'o!El-P.L RENDERED I!\ 

CON'iECT!O·'i WITH THE Rl!LES ADOPTED BY TI-lE 

Air Quality Control Commission 

ON I 0/18/2007 

5 CCH. iOt:l-3 

T!--:e aJove-:efe:·C":l~ed :-t::es we:-~ s~bmitteC t0 ::1is o!'fice or: 10 124/2007 c:s req~:i:·ed by·s~ction 2~--+-iO.:. C.R.~. -~-~1:s 

o~Ti-:e h:ls revie\,-~d t!-:en; a:1d t:r.ds no appare:"!! co:~stitt:tiona! or lega: d~fi:ien:.::y i1: the:r form o:· s~bsta~;cc. 

OctoiH'r 29, 2iHJ':' llS:JO: 18 MST 

JOHN W. SUTHERS 

A•::o-.·ney Gei~e:·ai 

by DA!\lEL D. DOMO:NlCO 

Sol:citor Geile:a: 

Regulation as Published in the CCR 

w· 

Regulation No.3, Part A, 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. Annual fees for 

hazardous air pollutants shall be$ 111.99119.96. 

Braft Statement of Basis, Specific Statutm·v Authoritv and l'urpose 

REVISIONS TO PART A, SECTION Vl.D.l. 

OCTOBER 18, 2007 

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. 

THE AIR QUALITY CONTROL COMMISSION HAS ADOPTED REVISIONS TO PART A. SECTION 

Vl.D.I. IN ORDER TO INCREASE THE ANNUAL EMISSION FEES CHARGED TO AIR POLLUTION 

SOURCES IN COLORADO COMMENCING IN 2007. THE REVISED FEES ARE AT THE STATUTORY 

LIMIT SET BY SECTION 25-7-114.7, C.R.S. THE INCREASE IS NECESSARY TO ADDRESS 

DECREASING FEE REVENUES USED TO FUND EXISTING PROGRAMS. THESE REVISIONS ARE 

CONCURRENT WITH OTHER RECENT FEE ADJUSTMENTS TO ENSURE APPROPRIATE FUNDING 

FOR THE PROGRAM. 

SPECIFIC STATUTORY AUTHORITY 

THE SPECIFIC STATUTORY AUTHORITY FOR THESE REVISIONS IS SET FORTH IN SECTIONS 25-

7-114.7 OF THE COLORADO AIR POLLLTION PREVENTION AND CONTROL ACT ("'An''), 

WHICH ALLOWS THE COMMISSION TO SET ANNUAL EMISSION FEES FOR REGULATED AND 

HAZARDOUS AIR POLLUTANTS. 

PURPOSE 

THE REVISIONS TO PART A. SECTION VI. D.!. WERE ADOPTED TO COVER ANTICIPATED 

REVENUE SHORTFALLS AND FUND REQUESTED ADDITIONAL FTE THAT WILL BE USED TO 

ADDRESS THE DIVISION'S PERMITTING BACKLOG AND THE lt\CREASED WORKLOAD ARISING 

FROM THE RAPID GROWTH OF OIL AND GAS SOURCES IN COLORADO. 

COLORADO AIR QUALITY CONTROL COMMISSION 

ADOPTED: OCTOBER 18.2007 

r r. ·.; .. ---'·· 

\/ . ......,_. 

-

A:! 2:-:~~2: 2:-r:~ss!o:-:s ~e-:=s c:ssess2:: ~~s~ ~e ~c:e:veC: ~.v:·~:-:::-: sixt~.' days ::' ~;-:e Ca'.:2 o: 

:ss:...:a::ce a:-:r.e \'J:-:tte:: :-·2q~est :.-:e:·e~o:-2:. Ai ~ees coltec:oc ;...;-:~e:· ::-::s mg...:la~;c:; s:-:c::: 

~2 ~-s~e ~a.ya::;:e -~: ::-:2 ~c:o:-adc :Jepa;-~~':":en~ ::::·; ?:..:~i1s :-iea:::-: c:::C: ::::·/:--o::~e:;:._ 

;;--_ ~c eve::~ si-:a~: c.r: 0\'/:-';e; 0:- O;Je:atc:· :::::·:B. sc~:-ce ;:;a~-- ::-:c:-e -~:-:a:; a ·:8e ~ase~ :..:po:-: 

to:a: a:-:;-:;..:a: e:-r;:ssi~::s at ~o:..::- :~o~sa:JG ~or;s :.;7 eac:-: :-eg;..;:a~ed a::- ;Jo:~~ta::t pe~ so:..::-ce 

v:.D ~ An~:..:a: and pe:~!t p;ocess:::g fees sha!: be cha:-ged tn acco:dar.ce w~tr: a~C !r: the 

a~c:.1:::s a:-~d ~::-r::~s spe:::~ie::: ::: ~~e ;Jrov:s:::::s of co;o;atc ~ev:seC S~8t~tes sect:o:-: 

25-l<~~J. /\;.:-:~a: fees fo:- regu:ated p:J!!;..;:a:-:ts s!oa:: 8c $~7.9? .. 4:-:i.:..:a! fees fo:--

:,azc:rdc~s air po!!u!ar.~s sr:all be S ~: 9.96. 

VLD_? Air ?o:~;;tant Er;;isstc:-: Notice f:;~ng fees sha:; be cha;geC ~:--: accorda:1ce with a:-....,.':: 

the amo~::ts a::d !im~ts spec!f~eC i:: tr:e ;xov~sio~s of Co:o:-adc RevjseC Sta!~tes sec-

!lon 25-7-': 14.'. 

VII. CONFIDENTIAL INFORMATION OR DATA CONTAINED IN AIR POLLUTANT EMISSION 

NOTICES, PERMIT APPLICATIONS, OR REPORTS SUBMITTED PURSUANT TO PART C, 

SECTION V.C.6. 

V!J.A. Upon '..'Jritter: request to the a;vis~on. any person filing an Ai; PoHuta;,: !::mission Notice or penr.~t 

appl1cauon. or submitting reports pursuant to Reguiation No.3. Part C. sect1o~s V C.6. or 

V.C.7. :-nay request that informatio:: co~tained :n sue~. ar A!r Po\iutant Emissio~ Notice. perr.1it 

app:i(;;..l-._Jor:. o; repor! relating to secre~ processes or methods of :nanut(;lcture or productio:-: ~e 

kept wnfidentiaL The written request must identify the baSIS for the cia 1m that the information 

re:ates to secret processes or methods of manufacture or production. All information clair.1ed 

as co~1fidential must be segregated from the rest of the A~r Po~lutant Emission Notice. permlt 

applic..-~tron, or report when submitted. with each page cleariy markeC as "Confideiltiat." "Trade 

Secret" or other similar marking. 

VI!.B. The d~v~sior. wii: evaluate confide~tiality c!air:1s based on the wrttten request. The burden of 

es:abi:shing tha! the information relates to secret processes or methods of manufacture or 

produc~ion !son the claimant. Emission data. as defined in Co!orado Revised Statutes section 

25-7-103(1 1 5). shall not be entitled to confidential treatment notwithstanding this section VIL. 

or a:-1y other ;avv to the contra!)'. in :10 event shall an Ope:-at:ng Permit or the compllance 

certificatio:;s submitted pursuant to sectio:~ IH.B.B. of Part C of this Regulation Nc. 3 be entitled 

to co:-:f:ae~~ia: t;eatme!l·~- if the divis!o:: deter:nines tha~ i~fcrmatior. :--equested tc be kept 

confider.tta: is not er.titied to confide;-;tiai t;eatment. i: sf.aE provide written i10tice of this 

deten:::1at::y~ at !east three work:~g days ;J:-icr to n-:aktn:; s~c:-: 1nfo:r.-tation ava:;ab:e :o ~he 

;;:..;;-:-.;;~:. 

\/;~_c_ A req;;est ·fc:- ::::o:-:ftde~;t:a: '~:-eat:~e:-:·~ of ~~·:o:-:;;at:o;; c::-- .:ia.ta s~~~:t~ec :c t::e c=~v:sio:-: s=-:a:1 je 

~ee;~,e:: s :::-:-::-~e:: wa:ve:- ~y -~:-;e ap::i:::::a:-.~ .:.·: :::-:e -~::-:.2! .::::::;;-:s~:--a::-:-.:s ;::c:-:~2~:-:e:: ::A. scc:-~:a:--. :::.3. :.-: ?a;~ 3. ~=- sec:io:-: :v. of ?a~ C :::~ th:s :-e-;;:..::a'~:c:--.. -:-he:-e·?c:-c a:-:'j c:e~ay ::-: -~:le ;J::xess~;;g c~ c: 

;:>e:-:--:-:~~ ap;;:!catio:; :-esu~::!ig f:-a~ the d~v:s:or:'s be!ng :-eq:..:l:-eC :c s;:ve ;:otice ~:1der sectior: v~;. 3 .. 

heres:' s~.a:; ;;c: be :::;o!;s:de:-eC ~:. :ieter:-:-1::-:::-:g v.'he~:-:e:- :;;e ~:::.e c::::-:s::-a::::s se: ~c~r ::. ::--::s 

:-eg-..::a~:c:-: :-.a·/e ~Ge:-. :-:-:e~. 

v;::.A< . .A:: esti::;ates cf a;o;-:bie;1: :::c:-:ce:-:t:-a·~:c::-:s :--eq~::-e::: ~:-:ta:- -~:~:s Reg~;abor: NG. 3 s:1a:: :;s 

baseC or: :he ap!J;jcab:e a~:- q:..i·all~y :":1odeis databases. a:--:C::: othe:- .-eq:.:!:-e:-:-:e~:s 

;;e:-:a:-a::y ap;J:-cvat ~y '...:.S. :=? . .:::..a:-:::: s;:>eG~f::::a::y a~;::-c·.'e:: j·y· ·~:-:e ::i:v:s:c: .. 

:.KK 

S:x:;:::es. ::-tf: 8\.'r-c:- o:- vpt:;-c::tJ; c~ e 58:...::-:::e c~ ~:1:: s:;t:~e::::t :c. a D:v~sb~ SAR-:--

da:e:-~:~a~::::~ as:a::,:~she::i c:s z ;x::;:-::;: :::or:d::~o:-: :-nay rc~:..:est a ::ea1!ng ~:..::-s:Ja~: '.:~ 

Sec~:::m ?5--7< i~_5{8)_ C_R_S e.::::i :.:-:2 Ai:- Qua:tty C;:;~:;oi Co:-:;r:-:lssjo;, Prccechrc:: 

Ru:es (~CCR ~ 8C~- ~ ~ SECTiO~ ~ .6.8_ ;:,e ow:~e: o; operator cf a sot.:rse subJes~ :::; 

S:..ici': e: 3A:--r~ de:e;:~:~a~.:~Y-: ::-:c:y ::;z::e: ... ~e t::e t,2::s:::;:-: ~~ ~:-:e C0:-:-:~~ss:o:-: p:..::s:..:a:-:': 

:c 1\:-~:cie 4 of T:tis 24. C_R_S. 

O::~e 1:-~te~estc:C Pc~ s::::·~s. Otf~o: l:-:te:-esteC iJ·2:so:-:s see~::-:g :c :~a!ie:--:ge a DAR-:-· 

de:ernli:lat:o:---: o:· c:1~crceable ag:-eer.;e;;~ :-nay mq~os~ a p:..; b!ic cc:--:1mon! heanng 

r:;~:-s~an~ to iV. f=.b of this ;-eguiat:or. No_ 3 Pa~ G_ cr may cha:jenge a :::iec:sio:-: 8:' ~:he 

Co:Tim:ssion purs~ant to A~tfcie 4 o~Titie 2t.;, C.R.S. 

Statements of Basis. Specific S~ati..:to;y Authori~y a;;d Pu;pose 

Revls:or:s to Reguia:br. No_ 3 

-r:,:s S~atc~::·;e:--:t of Bas:s. Spectf:~ s:atL:~o~y Autr.ority an:: P;;rpose comf)iies w:tn :he ;equireme:-:ts o; 

t!;e Coto~e::c::.) Adm:nistrative Procedures Act. Section 24-4-103. C.R_S. anC the Co!orado A!r Pol!:..;tion 

PrevenUc:: CJnd Cor.tro: Ac~, Sections 25-7-110 and 25-7-~tG.5 C.R.S. 

Ire accor<ian~e with the 1990 Amendments to the Federal Clean Air Act the U.S. Environmenta: 

Protectio:·~ ,.:\ge;,cy (EPA) has approved incorpo\atior; af the provisions 7or the New Source Reviell\1 

a:1d Preve:1t1o:-: of Significant Deterioration programs (co!iectivefy refer;ed to as "NSR'·; into 

Colorado s state implementation plan (SIP). In June 2005. the Governor submiited revisions to 

Colorados NSR program to EPA Region VII! foe rev1ew and approvaL During rev1ew of the submiital, 

Region Vi!! identi~ied minor issues with p;-ovisions ir: Reg~latio~ No. 3 that the Commission is 

correcting to e;;sure contin:.:tng federat app:-ova! of Ca!orado·s NSR program. The Commission is 

also adoptmg language to treat mtrogen oxides as ar. ozone precursor, consistent with EPA's 

promulgation of corresponding ianguage on November 29, 2005. 

Sectior. 1 ~2 of the Clean Air Act reqUires EPA to maintain a !is! of hazardous atr pollutants (HAPs) 

subject to regulation under that section. EPA occasionally rev1ses the list by adding or removing 

pollutants based on updated scientific evidence of health impacts. EPA removed methyl ethyl ketone 

(MEK} :-ror.-~ the list on Dece:nbe:- ~8. 2005. Therefore. the Cor:n':l;ssio~ :s re:-nov!ng MEK from the !iSt 

c:' 1-i.A.Ps ~r: Reg~iation No. 3. Pa:-t P.,_ Appe:1dix 3 

On N8V2;;"~be:-- 2S. 2~04. E?A :-evised the fede;a: def1n!t!o;. of voiatiie organ!c co:'":lpoi.!r.Cs ~VOCs) ~c 

spec!fica~:y treat te:-:iary bu~y: :·t-b:..:ty~) acetate as a VOC oniy fo:- certain p;.:rposes. :r:ciud;ng repo:-:ing 

a~C :J~~o-~ac:-ie~ica: d~spe:-s:o:1 :-:-::::;de[ing. -:-he Cc:-n::--::ss~or. :s :-::aki~g correspond:::g ci--:a~:ges !c t:--:e 

def:~it;G:-: o~ VOCs :r: the Corr.rr:::>:--: ?:·o·is:o:;s Reg~iatio:-: .. and :s addir1g :-Duty: acetate as a nor;-

::::-::e:-:c: :-e;:o:-ta~:e ~o:~t.;~a;;~ :r: ~ef::.::a::a:--: Nc. 3_ ?al'. P. .. . A.;;;Je:-:~:x 3. Sc:.;~::::es c.7 ~-;:;~~y. a::::e:a~e v:::: :::-.e 

:-a~:...:::·s-:::: ~c :-a~:::--:: ·c:-:s ;:;~::~·~a:-:·~ s:=:;Ja:-s:e:y :"rc::-. ·~.:e~:- \/8C: 2:-:-;:ss:c:;s .::-: a:--. A.::- ?J:::.:~a:---::- =::-:-::ss::::::: 

Notice. a~C sr:o~;d ~ot coun: the:; :-b:.;:y; acetate e:;;1ssic:-:s v.·her. evai~atng ccmpiian:::e w::r: 

app::cab:e VOC e:niss:o:-: ::r:1itato:-:s. :he ::v:s:o:-: S:1C!..lid :o:;-::Ji:-:e VOC e:-:1iss:~:...s a:-:d re~c:-teG ·~­

bL.:ty: ace:a:e e~lss:c:-:s wr~eo. :::or:~~c·:;:-:g :::::spe:-s:c:; :-::oce:::-:g fo:-- sa:.;:-ces a:= :-bi.l:{ a:::e~a~e. 

T:-:e Coio;-ada A;: Po!;~tio;: P;ever::i::~:-: anC Cc:itro: Ac:. Sect: a:-: 25-7 < 85 C. R.S .. g:ves t~--:e 

Cor:1:;.iss:o:-: a-.;t::or~ty '.c p:-a:-:-:~:;a~e :-eg:..:la:~o;;s ~ecessary ~c:- t!"!e ;:::-ope:- :m~Ler::e:1tat:o:; of t:-:e .i..::::·~. 

::--:c:L!:j:;"l~ :-:..::es tc ass-...::-e a!:a:~~e:-:~ a~C ;:.ai:;te:-:a:-:ce :::::: r.a::ona: . .::..~b~e:-:~ A.~; Q:..:a:;':y Star.da:Gs a~C: 
a ~:2ve~tro:: · s:g;;::=::a::~ :i-2~e~:c:--s::c::-. ~;ogrzr:-:. Sest0:: 25-7--:Js:~L.). C.~.S. ::~::;viC2s s:J·=:::~~.: 

a:..::::::>:-~~y tc ·8.;. :~l:s:- e;-:.:ss:o:-: :l::::~;::e. c~~st:-:.:c;·::o~ pe:-:n:~ a~G cpe!"a:::-:g ;.-,e:-~;-~ prog:-arns. S:J~-;-:c; c~ 

-~;;o s·~a~:...;::):-~.' · · .raf":"".e~e:s -~v~ -~>es·2 ::;:-:.:;:2~-:~ a;·e se·~ ~o:i:~ ;;t Sec~:(ns 25-7< :~- '~:;:o~g:-. 25-7< ~-<.7 cJf 

~:--;s .:...c~ z~:: ~:. se Se~::c~s ::-' -~~.:~~-- ~:-:;v::::e s!a~L.:~s;y 2~~:-;cr::y ~c~ :::-2 :::::..;:-:e::~ -:e-.':s:~:-:s .. .::..:::::~::::::a: 

E:Jt:-:;:;:·i·~y f~-: :. :se -:e;.':s::;:-:s :s s&·~ ~c-:~:: =~ Se:::::ic;-:s 25-7< ·J6. 25-7-~ ~;a:--;::: 25-T ~32. ::::.:.'.\.S_ 

-:-:-:e Co:;;:~[S~' .::'s aCsp~:cr: c7 ::;;s :-~:e :s :ake:: ~~:-s:..;ar:~ :o procec:J:-es c.-:tC: :-ec;~:::-e~e:·.ts s2~ .:;:-_:·: ::: 

Sac::c::s25--~- .:::5. 25-7<~= 2:-::-: 2:3-.l<~:::.:s. C.R.S. 

·~:-:e Co:-ni"r!:ss:- ;:: is :-ev:s:ng ~et;-.;iat:o:: ~\io. 3 to address :ss:1es :de:-:tlfied by ~i:e :J. S. =:--:v::·c:-::-r;e:J::a: 

?:-otection A9: -:1cy ;EPA; du;i~g :--ev~ew of Coio:-ado s state :mp~erre~tatc;; ;J:a~ ;SIP;!:-: 20:~. :o [~corporate ~f:~~crai c!:anges to t:-:e Nevv Source Review p;ograrr:. to revise t~e def:~titio;; c: vo;a::~c 

o:-ga:-1~c co:-r:;:c.;.::--:ds a:<d the ~!s: c~ ::aza;-dous a::- po~iuta:~ts co::siste:;~ wit(: federa: act:o~s. a~:i to 

;;:ake :;:isce1::1:·:s-ous techr::ca: co:-rectcr~s. These cha:~ges win hefp to er:su:e ca;;:tr::Jed app.:uva: bj: 

EPA of Coior<·.~io'~ NeVI SoL;oce Revlevv p;ogram and wili provide consistent treatment by EPA a :tO 

t~e c:v:sio:-~ c: ::e:zc:::-:::c:...:s a~r ~c;::;..:ta;:ts a:;d vc~at~!e orga:t~c co~;;ci..:r.ds. These c~a:.gss 'l-d: 2:sc 

cor:--ect :egu;a:cry crcss-refere:1ces vithin Reguiatron No. 3. VJhich wi:! make the :"egu~at!c:l. easier tc 

~;ndersta!ld. f" :..~:the:-. these :-evisions inc!ude a!"ly typographica: errors w;thin the :-egu!abor!. 

i.LL Decembe~ ~5. 2006 Statement of Basis. Spec1fic Statutory Authority and Purpose Revisio::s tc Regulatior, No. 3. Pa~ A. Section Vi.D.1. 

i'his Statemen~ of Basis, Specific Statutory Authority and Purpose compiles with ·the requiremer.ts of 

t~e C0lorado 1\a~!n!st:-at:ve Procedure Act Sectlo:1s 24-4-~83\4). C.RS. for new ar.:::i revised regL:)atl::ms. 

The Afr Qua!ity Controi Comm:ssior; has adopted revfsions to Part A. Section VI. D.'!. in order to increase the annuaf emission fees charged to air poifutior. sources in Coiorado commencing in 2007 

The cevisea fees are within the statutory iimit set by Section 25-7-114.7. C.R.S. The Increase is necessary to address decreasing fee revenues ~sed to fund existing programs, as weil as to provide additiona: fund inn for requested additionai permitting and inspection personneL The proposed increase 

was addressed at length during a subcommittee process invoiving the Commission, the Division. 

stakeholders and other interested parties. The revisior. is a collaborative effort of the Divisior. and 

interested stakehoiders. 

:~e s~e~:~ic sta::.:::c-::; a:..:t~o-:i:Y' fa:- ::-:ese :--evis:or.s :sse: ~:xti": :r. Se:::t;o~s 25·-7-! ~4.7 a7 :~e Colc:-a.d::; 

P..~': ?:J::t..:·~:ar. Preve:-:~:8~ a~-::: S0::7:-G~ .A.c: ,:··Ac~'\ v:t-::::::-: ai:o·-:-.,·s :r:e Co:;.~:ss:o;. ·~o se·~ a:1~ua: a;~iss:o:: 

~ees ~o-: :eg:.:iateG a:-:d :~aza:--.::.:..:s a:r ;JO~i:.:ta~ts 

-:-:-:e :c·1~s~o:-:s ·~o Pa~: A 8-:::c~i:.::-: \:':.:J.~. we:e zdc;:;~ec ::: ccr,:e:- a:-:t:c:;JateC: :-eve:-::.:e s:-:~~a~ls and ~~t.:: 

:-eqces'~e::: acd:::c:-:a: F:=: -~~12: \'::!: ~·e :.:seC: '::c aCd:-ess t~~e :J·~~/:sio:--:'s pe:-~:t:~r:s; :ac!<:~;- a::c: :r.e :::-

:::-aas·:::: 'l-..':xk:aa-: a::s::-:; ·::-c::. ~:-:&:-a;::::: ;:·::;·ut~-. o: c:. a:-::: ~as s~:..::-ces ;;-; co:c:·:-aC::::. 

-:-~is s:a:e:;-:e:-:: ()~ 3as:s. S~ec;f~c Sta·:utGiy .A.:;th:>:~~~~ ar.::: Pu:-pose CCi.lp:[es "#:'~:-. ~~e :-ec;u:~e~en'~s a7 

·::--;e Co:o:-a~o Ad~~~:s~:-a:iv-e ?:-oceC:::..;~e Act Sect~c:-:s 2ii--~--~C3(4), C.R.S. 7o:-- ~ei.v a~~ reviseC: ;-eg:..:;a-

·~j~:--:s. 

"'-r::"· ,.,..1" :.--..-:> < ·--..ro. ..... >..J~•'-- ~~~--:..<.~"--
~:;,::; /- ·~:c:~.~·::-: ~:-:::-:·-:~.!ss::-::-· :-:.::~ 2~:;:-t2:l :s\·:s::::~~ -~:. ?2~~ P· .. 82::-~:::::::-. '/:.:=;.·:. ;_ :::::::;: ·~::: ·~·­

~:·e2s2 ~.::: .. ::;::.:;·~: e:-:-::ss:c::-: fees c:~a:-geC :c a!:- po;~utlo:-: so:.::-::::cs ;:; Cclo:-edu 8C:"":""":r:1e:1c:;-":; !:-. 2:;:=:~ .. -

~-:ie :-e·-.t:s; :~~~;~-: c.:2 .::: -~r:e s·tc:·~;,_;t:;ry :::~:: se~ b~~ Sect:8,-: 2.~-:.-?"<:.( 7. C.R.S. : :-:e ::-:c:-ease :s :-:c:::es 

sa:y t.::i c:~~ .::;SS (.<c:c:-ec:.s::-~g fee~ reve:1: . .:c::s :;sse ~c- ~u::d ex!s::~~ p:-cg-:-a~s. These revis:o:-:s e:-e cc:"":--

:::::.::-:-e:.: ·.;;: · ._.:::~: :·c-;c;e::t fee adj:..:s::;lerots ~c c:;sure ap;xov:c.te ~u::di:;g for ~'le ~rog:-at-:"',. 

T:;e spe~::~. sto~:::a:·y at:thohty fer these :-ev:s:8;-":S is set fcr:r. : •. Se::::t:c::s 25-"?< ~~ •. : c7 t~e Cc::::::-a~c 

A.::- :.:.~o:;..:t::·.· :>;-svcn:1or: a~:C: Co;.t:·c: P.::;: ~· ,_"·-.:::::·· _ w:""::::::t: a:ic\l.'S ~:-:e :=::::::-:-::;--:~ss:c;-": ~c sc::t a:-::-:~2.: ,s:-:;:ss:c-:-. 

~ :;2 ;ev:si:.::~s :c Par: A, Sec:ticr: VLQ. ~. '·./.le:e ado;:;~ed :o c:ove:- anticipated reve~~~e shc:-t~a:!s a:1d ~·J:-:G 

:-cq~esteC ~ricdio:-:a: FTE :hat ·~'\d: be ~;sed :c add:-ess the D:visior.'s permi:t:~;g back!cg anC ~~•c ::---.-

CO:...OR/\~JCJ AiR QUA~iTY CONTROL COMMiSSION 

ADOPTU: October 18. 2007 

r·. ,~. ~") 

.;. '- ' __:_·~ 

Notice of Final Adoption 

ST~TE OF COLORt~DO 

£13:Jc Che~~Y C:er~:-. D:-. S. 

::)er.ver. Cojoradc dD246-1 :J3C 

?~or.e (303) 69~-:<)0C: 

TJD Une (303) C:.': -1700 

Located ir. Gien8;:-::lc:, Co!o~adc 

il!t'(J://www .cdp;l(' ... ~a:e.co. us 

~~~~· 

:_aoc~a!ory Services :Jivisio:-: 

B~GO :_aw:y B:vd. 

Jer.ve:. ColoraDo 8G23G-6928 

(303) 692-3090 

:\OTICE OF FI:\AL ADOPTIO:'\ 

Colorado Department 

of Public Health 

and Environment 

PLRSCA~T t,· th~ pnwisions of sections 25-7-105. 25-7-i05(1:~). 25-7-114 through 25-7-; 1~.-'. :5-7--

;o6. 25-7-119 and ':!..5--7-!32 C.R.S. of the Colorado Pollution Prevention and Control Act. _. 

l\:OTICE IS Hl:REBY GIVEN that after a public rulemaking hearing October] 8, ~007. and in 

compliance with the requirements of sections ~5-7-] 05. c5-7-J I 0. and ~5-7-ll 0.5. C.R.S., the Colorado 

Air Quality Control Commission made revisions to: 

Regulation Number 3. Part A, Section Vl.D.!.- Stationary Source Permitting and Air Pollution Emission 

Notice Requirements Concerning the Increase of Stationary Source Emission Fees 

The Commission adopted revisions to Regulation ~umber 3. Part A. Section VI.D.1. The reYisions '''e:·e 

adopted in orde-r to raise the annual emission fees for criteria and hazardous air pol iutants in accordance 

with the provisions of Section ~5-7-1 14.7, C.R.S. commencing in 2007. The increase raises fees to the 

limit set by Cok1rado Legislature and will 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 ~0 days after adoption for publication 

in the Colorado Register. pursuant to ~4-4-103(5) and (I l)(d), C.R.S .. and will become effective 

November 30. ~007, 

Additionally. pursuant to ~4-4- I 03(8)(d). C.R.S .. within ~0 days after the date of the Attorney General's 

Opinipn, this action will be submitted lo the Office of Legislative Legal Services for revie-w. 

Dated this l st day of November ~007 at Denver. Colorado.