5 Colo. Code Regs. § 1002-55.31
The provisions of sections 25-1.5-208, 25-8-202(1)(g), 25-8-608 (1.7), 25-8-608.5, and 25-8-608.7, C.R.S., provide the specific statutory authority for adoption of the attached regulation. The Water Quality Control Commission has adopted the following statement of basis and purpose in compliance with section 24-4-103(4), C.R.S.
BASIS AND PURPOSE
Due to an increase in funding programs provided by the Colorado General Assembly, the commission felt it was important to consolidate all state funded programs into one regulation. Therefore, the commission renamed Regulation #55 from the Water Quality Improvement Fund to State Funded Water and Wastewater Infrastructure Programs, which now encompasses the Water Quality Improvement Fund, the Nutrient Management Grant Fund, the Natural Disaster Grant Fund, and the Small Communities Water and Wastewater Grant Fund.
Specific changes to Regulation #55 include the following:
* The authority, scope, and purpose was combined for all state funded grant funds in section 55.1
Section 55.2 is now reserved for definitions applicable to all state funded programs listed in the regulation, which now includes new definitions for the terms "pollution," "beneficial use," "consolidation," and "waterborne disease outbreak" and various edits to existing definitions
* Previous Water Quality Improvement Fund sections have been renamed to include other state funded grant funds
Section 55.6 Small Communities Water and Wastewater Grant Fund was added as a result of Senate Bill 14-025
* Each state funded program title was changed to include the word "criteria" and is listed in its own section:
* 55.3 Water Quality Improvement Fund Criteria
* 55.4 Nutrient Management Grant Fund Criteria
* 55.5 Natural Disaster Grant Fund Criteria
* 55.6 Small Communities Water and Wastewater Grant Fund Criteria
* Various editorial corrections have been made to align with other regulations or to provide clarity
New Provisions for Administration of the Small Communities Water and Wastewater Grant Fund
The Water Quality Control Commission's Regulations #53 and #54 provided the rules for the Water Quality Control Division to administer two separate small community grant programs under two statutes: grants for drinking water in section 25-1.5-208 C.R.S., and grants for wastewater in section 25-8-703 C.R.S. In 2009, Senate Bill 09-165 amended section 25-1.5-208, C.R.S. by providing a continuous source of revenue from the severance tax trust fund. The legislation directed an annual transfer of up to $10 million to the drinking water grant program after revenues from the fund exceeded $201.5 million. However, this bill only amended the drinking water statute and did not provide the same continuous source of revenue for wastewater, which made it unclear that funds could be used for both drinking water and wastewater. As a result, SB 14-025 was introduced and signed into law on February 27, 2014 to clarify that drinking water and wastewater projects are eligible under the small community grant program.
Since SB 14-025 combined both water and wastewater small community grant programs, the commission determined it was important to be consistent with legislation and have one regulation for program administration. The commission therefore repealed Regulation #53 for the Domestic Wastewater Treatment Grant Funding System and Regulation #54 for the Drinking Water Grant Fund as part of this rule adoption. In addition, the Commission incorporated all statements of basis and purpose from Regulations #53 and #54 into Regulation #55.
In order to administer the newly-combined Small Communities Water and Wastewater Grant Fund, the commission added sections 55.1 and 55.6 to Regulation #55. The following information lists the commission's actions for the Small Community Grant Fund:
* In alignment with SB14-025, the commission added section 55.1 and has determined that governmental agencies, including counties, and not-for-profit public water systems, as defined in section 25-1.5-201(1) C.R.S., which serve a population of not more than five thousand people are eligible to apply for funds for the planning, design, and construction of public water systems.
* In order to assist parties submitting applications, and in order to provide an equitable and transparent process for allocation and award of funds, the commission created section 55.6 , Small Communities Water and Wastewater Grant Program Criteria. This section established four subsections for administering the program: entity eligibility, project eligibility, award process and funding allocation, and project prioritization for both drinking water and wastewater projects.
* The project prioritization criteria that were developed for the Small Communities Water and Wastewater Grant Fund were designed to reflect language contained in SB 14-025 which emphasized priority to be given to eligible applicants who have the greatest financial need. The commission felt it was important to further prioritize projects based on population criteria, water quality and public health protection, compliance, and readiness to proceed.
5 CCR 1002-55.31