5 Colo. Code Regs. § 1002-101.11
The provisions of Colorado Revised Statute Sections 25-8-608(1) provides the specific statutory authority for the Water Quality Civil Penalty Inflation Adjustment Regulation adopted by the Commission. The Commission has also adopted, in compliance with Colorado Revised Statute Section 24-4-103(4) C.R.S., the following Statement of Basis and Purpose.
BASIS AND PURPOSE
Section 25-8-608(1), C.R.S., directs that "the commission shall, by rule, annually adjust the amount of the maximum civil penalty based on the percentage change in the United States Department of Labor's Bureau of Labor Statistics Consumer Price Index for Denver-Aurora-Lakewood for All Items and All Urban Consumers, or its successor index." This revision to the regulation implements this statutory direction and provides for the new annually adjusted maximum civil penalty identified in 25-8-608(1) C.R.S., effective January 1, 2024.
The commission applied the first adjustment to the maximum civil penalty on January 1, 2022, which was based on the change between the July 2020 Consumer Price Index and the July 2021 Consumer Price Index and resulted in the maximum penalty amount of $56,759 per day per violation.
The commission applied the second adjustment to the maximum civil penalty on January 1, 2023, which was based on the change between the July 2021 Consumer Price Index and the July 2022 Consumer Price Index and resulted in the maximum civil penalty amount of $61,427 per day per violation.
The new maximum penalty is calculated by adjusting the previous maximum penalty by the percent change in the Consumer Price Index from July 2022 to July 2023. The July 2023 Consumer Price Index is 323.298. The July 2022 Consumer Price Index is 308.728. This represents a 4.7% change.
The adjusted maximum penalty is therefore equal to the previous maximum penalty $61,427 multiplied by (1 + (323.298 - 308.728) / 308.728). This results in a 2024 adjusted maximum penalty of $64,326.
5 CCR 1002-101.11