# 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 ofPublic 

### Health andEnvironment

The

### follo~ng;ctions are submitted to EPA for final approval and incorporation into the Colorado State Implementation Plan. Two copies ofthe materials needed for your review ofeach 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 ofthis request. The Office ofthe 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 303-692-3478.

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 ofthe following administrative materials are included in this submittal ofrevisions 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 ofthe Commission

• Parties, EPA and Public Comments ifany.
• Statement ofBasis, Specific Statutory Authority and Purpose for each regulation.

• Opinion ofthe Attorney General

• Regulation as published in the CCR

• Notice offinal 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 ofthe people ofColorado 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 ofthe rule revisions that are the subject ofthis Notice ofPublic Rulemaking Hearing.

A proposed Statement ofBasis, Specific Statutory Authority, and Purpose and a regulatory analysis (ifone 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 ofthis notice.

HEARING SCHEDULE: DATE: October 18,2007 TIME: 

### 9:00 AM PLACE: Colorado Department ofPublic Health & 

### Environment 4300 Cherry Creek Drive South, Sabin ConfRoom Denver, Colorado 80246 The hearing may be continued at suchplaces 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 ofthe hearing as possible and during the hearing as necessary. Written submissions prior to the hearing are requested to allow review prior to presentation at the hearing. Written 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 ofa written petition for party status must be filed with the Office ofthe 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 ofthe petition for party status must also be received, by this same date, by the Division staffperson and the Assistant Attorneys General representing the Division and the Commission identified below.

Individuals may also obtain party status through the submittal ofan initial alternative rule to the proposed rule. The submittal ofan alternative proposal must be accompanied by twenty (20) copies ofthe initial alternative proposed rule and all other associated documents as required by the Commission's procedural rules and must be filed with the Office ofthe Commission by the date specified for party status requests. Initial alternative rules must also be filed with the Division staffperson and with each ofthe 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 ofPublic 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 ofprehearing 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 ofa 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 ofthe prehearing statement must also be delivered to the Division point ofcontact and each ofthe 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 ofthe 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 ofsuch 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 ofthe Commission and as otherwise stated in this notice. This list ofstatutory authority is not intended as an exhaustive list ofthe Commission's statutory authority to act in this matter.

Dated this 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 ofMeeting and Agenda Air Quality Control Commission & 

# -- Board ofHealth

October 

# 18, 2007

Colorado Department ofPublic Health & 

## Environment 4300 Cherry Creek Drive South, Sabin Room

Note":

Call to Order:
Approval ofMinutes:

Public Comment:

Agenda Review: 

### Denver, Colorado



## 9:00a.m.

Board ofHealth 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 ofa 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 ofGovernments (DRCOG) 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 0NLY 

### RULEMAKING HEARINGS 

### 4. Procedural Rules The Attorney General's Office will present a proposal to revise the procedural rules to require the electronic submission ofrulemaking 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 ofthe implementation ofRegulation 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 ofthe 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 ofthe 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 bythe 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 perton for criteria pollutants and $119.96 perton 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.1SIGNATURES: 

# 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 ofPublic Health and Environment, Air Pollution Control Division ("Division") requests that the Colorado Air Quality Control Commission ("Commission") revise the provisions ofRegulation No. 3. Part A, Section VI.D.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 ofthe proposed changes to Regulation No.3, Part A, Section VI.D.l, including the Statements ofBasis, and final economic analysis ofthe 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 ifthe amount ofmoney left in the Stationary Sources Control Fund at the end ofa fiscal year ("Target Reserve") exceeds 16.5% ofthe money expended from the fund during the fiscal year, the fees shall be reduced so that the expected Target Reserve at the end ofthe 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 ofthe 2007-2008 fiscal year.

How were the proposed revisions developed?

The proposed new fee levels are based on an economic analysis ofthe amount ofadditional 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 ofthe requested fee increase is necessary to ensure the solvency ofthe Division through the end offiscal year 2007-2008.

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

### Ifthe 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

Ifthe 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 ofthe 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 ofthe 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 ofPublic Health and Environment, Air Pollution Control Division ("Division") is proposing revisions to Regulation No. 3, Part A, Section VI.D.1. in order to raise the annual emission fees for criteria and hazardous air pollutants in accordance with the provisions ofSection 25-7-114.7., C.R.S. The 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 ofthe 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 CommentsBEFORE 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 increaseby $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 ofthe 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 IOth day ofSeptember 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 ofPublic

Health and Environment, Air Quality Control Division

# -

1525 Shennan Street, 5th Floor Denver, Colorado 80203 Telephone: (303) 866-5008 *Counsel ofRecord

# 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) ofthe Clean Air Act sets a minimum fee of $39.48 per ton ofcriteria 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 ofreviewing and acting upon permit applications, implementing and enforcing the terms and conditions ofany 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 ofreviewing and acting upon permit applications, implementing and enforcing the terms and conditions ofany 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.comThank you for the opportunity to comment.
Sincerely,

Jeremy Nichols Director Rocky Mountain Clean Air Action

On behalfof:

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 I00 Denver, CO 80202 (303) 573-3871

Patrick Barker Western Colorado Congress PO Box 2601 Glenwood Springs, CO 81602 (970) 379-3252



### 2w·

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 ofstationary
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 behalfof:

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 Glenwood 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 ofthis petition
are concurrently being sent to the Air Pollution Control Division and Assistant Attorney General
as indicated in the Notice ofPublic 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 ofworking with tribal, urban and rural communities to protect their homes and the environment from the devastating impacts ofoil 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 ActionAddress: 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 ofoil 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) ofthe Clean Air Act sets a minimum fee of$39.48 per ton ofcriteria 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 ofreviewing and acting upon permit applications, implementing and enforcing the terms and conditions ofany 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 ofColorado so that the costs of reviewing and acting upon permit applications, implementing and enforcing the terms and conditions ofany 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 ofAugust 2007.

Jeremy Nichols Director Rocky Mountain Clean Air Action

2On behalfof:

Jennifer Goldman Oil and Gas Accountability Project PO Box 7193 Bozeman, MT 59771 (406) 587-4473

Matt Baker Environment Colorado 1536 Wynkoop, Suite I00 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 PurposeI. 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 ofthe Attorney GeneralCY'\'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 I0/18/2007

5 CCH. iOt:l-3

T!--:e**aJove-:efe:·C":l~ed** :-t::es**we:-~ s~bmitteC**  t0 ::1is o!'fice or: 10 1 24/2007 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 CCRw·



### 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 ofBasis, 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 18.2007r r. ·.; .. ---'··

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

# -

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

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### 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 cia1m 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** 

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### :::.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. 

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### 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:

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: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 byadding 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:

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-:-:-: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**

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ADOPTU: October 18. 2007

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# Notice of Final Adoption

# ST~TE 

# OF**COLORt~DO**

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...**~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 ofPublic Health and Environment**PLRSCA~T** t,·**th~** pnwisions ofsections 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. ofthe 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 I0. 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 ofState'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-** I03(8)(d). C.R.S

.. within**~0** days after the date ofthe Attorney General's Opinipn, this action will be submitted lo the Office of Legislative Legal Services for revie-w.

Dated this l st day ofNovember**~007** at Denver. Colorado.