5 Colo. Code Regs. § 1001-5-A-VI

Current through Register Vol. 48, No. 1, January 10, 2025

Section 5 CCR 1001-5-A-VI - Fees

VI.A. General

VI.A.1. Every person required to obtain a Construction or Operating Permit or to file an Air Pollution Emission Notice shall pay fees as set forth in the following sections. Such fees shall be charged to recover the direct and indirect costs incurred by the Division in processing permit applications, issuing permits, and in conducting a compliance monitoring and enforcement program. Such fees shall apply without regard to whether a permit is issued, denied, withdrawn, or revoked. Fees shall be charged as indicated in Section VI.D. of this part.

VI.B. Permit Processing Fees

VI.B.1. Applicants for a permit shall be assessed total fees that shall be partially determined at the time that the Division makes its decision whether to issue preliminary approval of the permit and partially at the time the Division makes its decision whether to issue final approval.

VI.B.2. The partial fee collected at the time the Division makes its decision whether to issue preliminary approval of the permit shall include the costs associated with the preliminary engineering evaluation, modeling, and analysis of impact on ambient air quality, notice and publication requirements, analysis and implementation of Disproportionately Impacted Community monitoring and modeling requirements, and such other costs as are required for the aforementioned activities incurred by the Division up to the time of the decision of whether to issue preliminary approval.

VI.B.3. The final fee collected at the time the Division makes its decision of whether to issue final approval shall include the balance of the total of all costs associated with enforcement of any terms and conditions of the emission permit, the supervision of compliance testing, notice and publication requirements, and such other costs as are required for the processing, issuance, and administration of the permit.

VI.B.4. If the Division requires more than thirty hours to process an application, the Division shall inform the owner or operator of the source and provide an estimate of what the actual charges may be, prior to commencing with processing of the application, unless the owner or operator waives this requirement in writing.

VI.B.5. All permit processing fees assessed must be received within thirty days of the date of receipt of the written request therefore. All fees collected under this regulation shall be made payable to the Colorado Department of Public Health and Environment. Construction permits may be issued prior to the Division's receipt of such fees. Failure to pay the permit processing fees within ninety days of the written request for fees may result in late fees or revocation of the permit. Permits issued in accordance with Part C of this regulation may be issued upon approval by the Division of a fee payment schedule.

VI.C. Annual Emissions Fees

VI.C.1. As used in this Section VI., in accordance with Colorado Revised Statute Section 25-7-114.7, regulated air pollutant means:

VI.C.1.a. A volatile organic compound;

VI.C.1.b. Each hazardous air pollutant;

VI.C.1.c. Each pollutant regulated under Section 111 of the Federal Act (New Source Performance Standards);

VI.C.1.d. Each pollutant for which a National Ambient Air Quality Standard has been promulgated, except for carbon monoxide; and

VI.C.1.e. Each pollutant regulated under Section 25-7-109 of the state Act.

VI.C.1.f. The term regulated air pollutant does not include fugitive dust as defined in Section I.B.26. of this Part A, or any fraction thereof.

VI.C.2. Every owner or operator of an air pollution source required to file an Air Pollutant Emission Notice shall pay a nonrefundable annual emissions fee as set forth in Section VI.D.3. of this Part A.

VI.C.3. All annual emissions fees assessed must be received within sixty days of the date of issuance of the written request therefore. All fees collected under this regulation shall be made payable to the Colorado Department of Public Health and Environment.

VI.C.4. In no event shall an owner or operator of a source pay more than a fee based upon total annual emissions of four thousand tons of each regulated air pollutant per source.

VI.D. Fee Schedule

VI.D.1. Air Pollutant Emission Notice filing fees shall be $242.00.

VI.D.2. Permit processing fees shall be $119.00 per hour.

VI.D.3. Annual emission fees for regulated pollutants shall be $36.00 per ton. Annual emission fees for hazardous air pollutants shall be $239.00 per ton. GHG is exempt from the requirement to pay this annual emission fee.

VI.D.4. (State Only) Annual greenhouse gas emission fees.

VI.D.4.a. Beginning in 2024, fees on greenhouse gas emissions in the form of carbon dioxide equivalent will be collected.

VI.D.4.b. For owners or operators required to report greenhouse gases pursuant to Regulation Number 7, Part B, Section IV. and pursuant to Regulation Number 3, Part A, Section II.A.2.; owners or operators required to report greenhouse gases pursuant to Regulation Number 22 with facility CO2e emissions equal to or greater than 25,000 metric tpy; and owners or operators required to report greenhouse gases pursuant to Regulation Number 7, Part B, Section V. with company-wide CO2e emissions equal to or greater than 25,000 metric tpy, the annual greenhouse gas emission fee is determined according to the following formula.

Annual greenhouse gas emission fee:

1. number of fee payers * 4,000 = total billable CO2e

2. $6,540,000 / total billable CO2e = average dollar per ton of CO2e

3. total emissions reported by fee payers / number of fee payers = average emissions per fee payer

4. individual fee payer's reported emissions / average emissions per fee payer = CO2e proportionality factor

5. average dollar per ton of CO2e * CO2e proportionality factor = individual fee payer's dollar per ton of CO2e

6. individual fee payer's dollar per ton of CO2e * 4,000 tons = individual fee payer's annual CO2e fee

Where:

In (1) and (3), the number of fee payers means the total number of (a) facilities reporting greenhouse gases pursuant to Regulation Number 7, Part B, Section IV. and Regulation Number 3, Part A, Section II.A.2., (b) facilities reporting greenhouse gases pursuant to Regulation Number 22 with facility CO2e emissions equal to or greater than 25,000 metric tpy, and (c) owners or operators reporting greenhouse gases pursuant to Regulation Number 7, Part B, Section V. with company-wide CO2e emissions equal to or greater than 25,000 metric tpy for the calendar year reported prior to billing (e.g., for a bill issued in 2024, calendar year 2022 emissions as reported in 2023)

In (2), $6,540,000 means the indirect and direct cost required to develop and administer the Division's programs that pertain to emissions of greenhouse gas

In (3), total emissions reported by fee payers means the total CO2e reported by owners or operators reporting greenhouse gases pursuant to (a) Regulation Number 7, Part B, Section IV. and Regulation Number 3, Part A, Section II.A.2., (b) by owners or operators reporting greenhouse gases pursuant to Regulation Number 22 with facility CO2e emissions equal to or greater than 25,000 metric tpy, and (c) by owners or operators reporting greenhouse gases pursuant to Regulation Number 7, Part B, Section V. with company-wide CO2e emissions equal to or greater than 25,000 metric tpy for the calendar year reported prior to billing (e.g., for a bill issued in 2024, calendar year 2022 emissions as reported in 2023)

In (4), the individual fee payer's reported emissions means the total CO2e reported by (a) a facility reporting greenhouse gases pursuant to Regulation Number 7, Part B, Section IV. and Regulation Number 3, Part A, Section II.A.2., (b) a facility reporting greenhouse gases pursuant to Regulation Number 22 with facility CO2e emissions equal to or greater than 25,000 metric tpy, or (c) a company reporting greenhouse gases pursuant to Regulation Number 7, Part B, Section V. with company-wide CO2e emissions equal to or greater than 25,000 metric tpy for the calendar year reported prior to billing (e.g., for a bill issued in 2024, calendar year 2022 emissions as reported in 2023)

In (6), the annual CO2e fee means the facility or company's individualized CO2e fee after considering the facility or company's proportional CO2e contribution to the total billable CO2e and the 4,000 ton limitation in 25-7-114.7(2)(a)(II), C.R.S., (2023)

VI.D.4.c. For calendar year 2024, collecting greenhouse gas emission fees on calendar year 2022 emissions as reported in calendar year 2023, the indirect and direct costs to be collected are $3,924,000. Thereafter, the costs to be collected are $6,540,000.

VI.E. Major Stationary Source Fee Program

VI.E.1. Purpose. To establish fees pursuant to the federal Clean Air Act Sections 182(d)(3) and 185. Fees will be assessed if the 2008 ozone National Ambient Air Quality Standard (NAAQS) ozone nonattainment area fails to attain the 2008 ozone NAAQS by the date the nonattainment area is mandated to reach attainment of the 2008 ozone NAAQS (i.e., 2027, unless granted an extension). Fees determined in accordance with Section VI.E.4. must be paid for each year beginning the year after the attainment year and each year thereafter until EPA determines that the 2008 ozone NAAQS ozone nonattainment area attains the 2008 ozone NAAQS.

VI.E.2. Applicability. Any stationary source located in the 2008 ozone NAAQS ozone nonattainment area that is a major stationary source of VOC or NOx in the attainment year and the year(s) thereafter until EPA determines that the 2008 ozone NAAQS ozone nonattainment area attains the 2008 ozone standard.

VI.E.3. Exemption. No source is required to pay any fee under Section VI.E. with respect to emissions during any year that is considered an extension year under the federal Clean Air Act Section 181(a)(5).

VI.E.4. Baseline emissions are calculated for each pollutant (VOC and/or NOx) for which the source is classified as a major stationary source.

VI.E.4.a. For major stationary sources that commenced operation prior to the attainment year, the baseline emissions are the lower of

VI.E.4.a.(i) The actual emissions in the attainment year, or

VI.E.4.a.(ii) The amount of emissions allowed under permit in the attainment year.

VI.E.4.b. For major stationary sources that commenced operation in the attainment year, the baseline emissions are the lower of

VI.E.4.b.(i) The actual emissions from the operational period extrapolated over the attainment year, or

VI.E.4.b.(ii) The amount of emissions allowed under permit in the attainment year.

VI.E.4.c. For major stationary sources that commenced operation after the attainment year, the baseline emissions are the lower of:

VI.E.4.c.(i) The actual emissions from the operational period extrapolated over the year the source commenced operation, or

VI.E.4.c.(ii) The amount of emissions allowed under permit in the year the source commenced operation.

VI.E.4.d. If a major stationary source's emissions are irregular, cyclical, or otherwise vary significantly from year to year, the source may calculate the baseline emissions in accordance with Part D, Sections II.A.4.a. through II.A.4.d. (baseline actual emissions). Any source that calculates baseline emissions pursuant to this section must submit the calculation to the Division by March 1 of the year after the attainment year, or of the year after the source commenced operation if after the attainment year.

VI.E.5. Aggregated baseline amount. After calculating each pollutant's baseline emissions in accordance with Section VI.E.3., a major stationary source may combine the baseline emissions as follows.

VI.E.5.a. VOC emissions into a single, aggregated VOC baseline amount for multiple major stationary sources under common control.

VI.E.5.b. NOx emissions into a single, aggregated NOx baseline amount for multiple major stationary sources under common control.

VI.E.5.c. VOC and NOx emissions into a single, aggregated baseline amount for multiple major stationary sources under common control.

VI.E.5.d. VOC and NOx emissions into a single, aggregated baseline amount for a single major stationary source.

VI.E.5.e. Pollutants that are combined into a single, aggregated baseline amount must have the same time period and the same basis of either actual or authorized emissions for calculating the baseline emissions.

VI.E.5.f. Any source that aggregates baseline emissions pursuant to this section must submit a list of the aggregated major stationary sources and associated emissions to the Division by March 1 of the year after the attainment year, or of the year after the source commenced operation if after the attainment year.

VI.E.6. Collection of fees.

VI.E.6.a. Beginning for each year after the attainment year, or the year after a granted extension year(s), major stationary sources must pay a fee per ton of VOC or NOx emissions, for which the source is major, during the calendar year that exceed 80% of the source's baseline emissions of VOC or NOx.

VI.E.6.a.(i) The fee is $5,000 per ton, adjusted annually beginning in the year 1991, by the change in the Consumer Price Index.

Fee = 5000 * [Ea - (0.8 * Eb)] * (1 + CPI)

Where:

Fee = Clean Air Act Section 185 fee

Ea = actual emissions for the applicable fee assessment year

Eb = baseline emissions determined in accordance with Sections VI.E.4. or VI.E.5.

CPI = percent change in the Consumer Price Index

VI.E.6.a.(ii) The Consumer Price Index adjustment will be made pursuant to the Clean Air Action Sections 185(b)(3) and 502(b)(3)(B)(v) (1990).

5 CCR 1001-5-A-VI

37 CR 18, September 25, 2014, effective 10/15/2014

37 CR 24, December 25, 2014, effective 1/14/2015

39 CR 04, February 25, 2016, effective 3/16/2016

39 CR 21, November 10, 2016, effective 11/30/2016

41 CR 21, November 10, 2018, effective 11/30/2018

43 CR 02, January 25, 2020, effective 2/14/2020

44 CR 02, January 25, 2021, effective 2/14/2021

46 CR 02, January 25, 2022, effective 2/14/2023

46 CR 12, June 25, 2023, effective 7/15/2023

47 CR 06, March 25, 2024, effective 4/15/2024

47 CR 12, June 25, 2024, effective 7/15/2024