Sections 25-8-202(1)(e) and (g); and section 37-95-107.6, C.R.S. provide the specific statutory authority for adoption of the attached regulatory amendments. The Commission also adopted, in compliance with section 24-4-103(4), C.R.S., the following statement of basis and purpose.
Basis and Purpose
The Commission took action to modify Regulation #51 by: removing the criteria for determining the priority assigned and including it in the Intended Use Plan (IUP); eliminating the categories and developing new criteria for determining the a project's priority; moving a number of items to the General Policies Section; establishing a Project Loan List that includes all projects that can be reasonably anticipated to receive a loan; and adding/deleting/revising definitions and updating other provisions. The Commission adopted these revisions for two principal reasons:
1. To provide a new emphasis on funding projects based on improving water quality consistent with subsection 51.4 of this regulation while maintaining the current emphasis on providing funding opportunities for smaller, less financially capable communities; and2. To improve the function and transparency of the Water Pollution Control Revolving Fund loan process. The Commission's action to modify Regulation #51 will require revisions to the process for prioritizing projects and the Commission is aware of the approach the Water Quality Control Division (Division), the Colorado Water Resources and Power Development Authority (Authority), and the Colorado Division of Local Governments (DLG) have developed to revise the project prioritization system for inclusion in the 2013 IUP. While the revised system will be proposed for consideration in a draft IUP at the October 2012 administrative action hearing, the Commission understands and appreciates that the Division, the Authority, and DLG have conducted significant outreach to inform stakeholders of the draft approach that will be included in the IUP.
Specific modifications to Regulation #51 on a section-by-section basis are described below.
Section 51.2 - Definitions - Several new definitions were added to define terms used in the previous regulation as well as terms added to the regulation. Several existing definitions were deleted as the terms were no longer used in the regulation. The Commission also revised existing definitions to clarify their intent or to make them consistent with the definition in other regulations or statute.Section 51.3 - Intended Use Plan - This section was modified to direct that the criteria for prioritizing projects are to be included in the IUP and to identify that the federal authority for projects is derived from sections 212 and 319 of the Clean Water Act.Section 51.4 - General Policies - The Commission revised subsection 51.4 to indicate it will promote green infrastructure projects related to the control of stormwater pollution as these projects are sustainable approaches to pollution control as are the other projects described in this subsection. The Commission also moved several provisions from section 51.5 to this section because they were seen more as statements of policy.Section 51.5 - Procedures for Identifying Projects and Establishing the Project Eligibility List - The Commission renamed this section to denote a change in the process due to the addition of the concept of the Projected Loan List. This section lays out the broad approach to identify projects and to develop the Project Eligibility List. The Commission deleted the previous concept of project categories that had been used to prioritize projects and was based on a blend of concepts: 1) the type of problem to be solved (e.g., noncompliance at a wastewater treatment facility and health hazard due to surfacing ISDS), and 2) the type of project (e.g., wastewater treatment plants, stormwater treatment, and nonpoint source projects). These were replaced with project types that will be used to categorize projects for the Project Eligibility List. The Commission also deleted the detailed project priority scoring system that will be replaced by the new project priority system to be established in the IUP. This eliminates the previous approach of prioritizing projects based on category first, and then priority score within the category. Section 51.6 - Procedures for Establishing the Projected Loan List and Distributing Funds - The Commission created a new section 51.6 to establish the concept of the Projected Loan List. This list will be used to identify which projects on the Project Eligibility List are most likely ready to proceed to the application and funding stages. Project proponents will have to provide information under the five identified factors in subsection 51.6 to allow for the required priority scoring. These factors are based on local fiscal capacity and affordability indicators, water quality improvement benefits, green project/sustainability benefits, compliance status, and readiness to proceed that, taken together, will result in projects being funded that will help attain the water quality and other goals identified by the Division and the Commission. These factors will serve as a general guide for the Division, the Authority, and DLG to establish specific criteria in the IUP upon which all projects will be evaluated and scored. The Commission also established conditions under which the Division will identify projects that are within the fundable range based on a combination of readiness to proceed and priority score. This will allow the Division, Authority, and DLG to focus the bulk of their efforts on projects that are most likely to proceed during the coming year.
Section 51.7 - Disadvantaged Communities - The Commission revised section 51.7 (previously section 51.6) to delete the requirement for periodic review of the disadvantaged community program, as the Commission finds that provision of funding to disadvantaged communities is an important aspect of the WPCRF program and such funding should be provided when authorized.Section 51.8 - The Commission added a new section 51.8 to authorize funding of planning and design grants when such funding is approved in the IUP.PARTIES TO THE RULEMAKING
1. Colorado Municipal League2. Colorado Stormwater Council38 CR 17, September 10, 2015, effective 9/30/2015