5 Colo. Code Regs. § 1002-102.30
The provisions of Colorado Revised Statutes section 25-8-210 provides the specific statutory authority for setting fees by regulation. In compliance with Colorado Revised Statutes Section 24-4-103(4), the Commission has adopted the following Statement of Basis and Purpose.
BASIS AND PURPOSE
Section 25-8-210, C.R.S., directs the Commission that "on or before October 31, 2025, the Commission shall establish the following fees by rule:
The Commission and Division have fulfilled the requirements of Section 25-8-210(1)(c)(II), C.R.S., as all permit holders and public water systems have been notified of the fee setting by rule stakeholder process. In addition, the Division's stakeholder process for this effort is well documented on its website. In addition, the fee increases for this rulemaking will not be phased in over time.
The Commission has determined that the fees for the drinking water cash fund and the clean water cash fund's commerce and industry fee payor type should be established in the rule as soon as practicable. Both funds generate significantly less than the revenue required to sustain the staffing and support necessary to provide the required services. These services are necessary to administer the Safe Drinking Water Act and Clean Water Act in Colorado. The legislature establishes the spending authority for these funds. The spending authority reflects the cost to operate the Division and increases through time to account for inflation in the cost of drinking water and clean water staff support and maintenance of the Division's general and administrative services for staff and the public. The Commission found that fee increases are necessary as a component of the funding needed to maintain existing Division services for the drinking water program and commerce and industry fee payors. In addition, the Commission understands that the projected revenue for other Division cash funds is sufficient for state fiscal year 24-25 and that those funds do not require an increase during this rulemaking.
The drinking water fee increase resulted in fee increases ranging from $10 to $2,812 per year, or a 13 percent increase. The commerce and industry fee increase resulted in fee increases ranging from $16 to $4,136 per year, or a 13 percent increase. The Commission understands that this is the first step that these fee increases are not the total amount needed for the Division to maintain existing services and that the Division is exploring options to fill the gap so that the Division can maintain existing services as well as to address environmental justice needs. In addition, the Commission and Division understand that fee payors would like to have advance notice of fee increases for budget planning purposes and will strive to provide timely information that helps fee payors with budget planning.
The Commission recognizes that the Division has conducted outreach to obtain stakeholder input regarding the total funding for the Division, including federal money, money from the General Fund, and all cash fees, and that those efforts are ongoing per Section 25-8-210(2)(a). In addition, the Commission anticipates that the May 2025 fee-setting rulemaking will revisit decisions made as part of this rulemaking and will be more expansive to cover all of the Division's cash fees and meet the requirements outlined in Section 25-8-210, C.R.S.
5 CCR 1002-102.30