5 CCR 1002-101
Department of Public Health and Environment REGULATION NO. 101 - WATER QUALITY CIVIL PENALTY INFLATION ADJUSTMENT REGULATION 5 CCR 1002-101 [Editor’s Notes follow the text of the rules at the end of this CCR Document.]
101.1 AUTHORITY
These regulations are promulgated pursuant to the Colorado Water Quality Control Act, sections 25-8-101 through 25-8-803, C.R.S. In particular, they are promulgated under sections 25-8-202 and 25-8-608(1), C.R.S.
101.2 PURPOSE
The purpose of this regulation is to annually adjust the amount of the maximum civil penalty applied to violations of the Colorado Water Quality Control Act, 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 Consumer, or its successor index.
101.3 REGULATIONS
A. Beginning on May 30, 2026, the maximum civil penalty identified in 25-8-608(1), C.R.S., for a person who violates the Water Quality Control Act, a permit issued under the Act, a control regulation promulgated pursuant to the Act, or a final cease-and-desist order or clean-up order shall be not more than $66,895 per day per violation.
101.4 DEFINITIONS
The following definitions are applicable within the intent of these regulations:
A. “Colorado Water Quality Control Act” or “Act” means the Colorado Water Quality Control Act as from time to time amended, section 25-8-101, C.R.S., 1973, et seq.
B. “Commission” means the water quality control commission created by section 25- 8-201, C.R.S.
C. “Division” means the Colorado Department of Public Health and Environment, Water Quality Control Division.
D. “Person” means an individual, corporation, partnership, association, state or political subdivision thereof, federal agency, state agency, municipality, commission, or interstate body.
101.5 – 101.9 RESERVED
101.10 STATEMENT OF BASIS, SPECIFIC STATUTORY AUTHORITY, AND
PURPOSE, ADOPTED OCTOBER 12, 2021: EFFECTIVE JANUARY 1, 2022 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 Colorado Revised Statute Section 24-4-103(4) C.R.S., the following Statement of Basis 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 index.”
This regulation implements this statutory direction and provides for the new annually adjusted maximum civil penalty identified in 25-8-608(1), C.R.S. The maximum penalty prior to adjustment that is identified in statute is fifty-four thousand eight hundred thirty- three dollars ($54,833). This prior maximum penalty is applicable from July 2, 2020, when it was added to 25-8-608(1), C.R.S., through January 1, 2022, when the new maximum penalty identified in this regulation goes into effect. . In accordance with the statutory direction to adjust the maximum penalty annually, the commission intends to revise this regulation annually to identify a new maximum penalty to become effective no later than January 1st of each subsequent year.
1) Method for Determining the Percentage Change in the Consumer Price Index: The Commission used the following method to calculate the percent 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 (the Consumer Price Index) to be used for calculating the new maximum penalty. The commission based the percentage change calculation on the change between the July 2020 Consumer Price Index and the July 2021 Consumer Price Index. Using the July Consumer Price Index values for this calculation aligns with the statutory direction to provide an annual adjustment to the maximum penalty because the previous maximum was established in statute effective in July 2020. This method also allows for the use of the most recent available data. The commission expects that the same method will be used for future revisions to this regulation. Any changes to the method will be addressed in the applicable future Statement of Basis and Purpose.
2) Calculation of the 2022 Adjusted Maximum Penalty:
The Previous Maximum Penalty is identified in 25-8-608(1), C.R.S., as $54,833. The July 2020 Consumer Price Index is 275.589. The July 2021 Consumer Price Index is 285.267. This represents a 3.512% change.
The adjusted maximum penalty is therefore equal to $54,833 multiplied by (1 + ((285.267 - 275.589) / 275.589). This results in a 2022 adjusted maximum penalty of $56,759.
3) Regulatory Process for Future Adjustments:
101.11 STATEMENT OF BASIS, SPECIFIC STATUTORY AUTHORITY, AND
PURPOSE, ADOPTED OCTOBER 11, 2022: EFFECTIVE JANUARY 1, 2023 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 Colorado Revised Statute Section 24-4-103(4) C.R.S., the following Statement of Basis 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 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, 2023.
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 new maximum penalty is calculated by adjusting the previous maximum penalty by the percent change in the Consumer Price Index from July 2021 to July 2022. The July 2021 Consumer Price Index is 285.267. The July 2022 Consumer Price Index is 308.728. This represents a 8.2% change.
The adjusted maximum penalty is therefore equal to the previous maximum penalty $56,759 multiplied by (1 + (308.728 - 285.267) / 285.267). This results in a 2023 adjusted maximum penalty of $61,427.
101.12 STATEMENT OF BASIS, SPECIFIC STATUTORY AUTHORITY, AND
PURPOSE, ADOPTED OCTOBER 10, 2023: EFFECTIVE JANUARY 1, 2024 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 Colorado Revised Statute Section 24-4-103(4) C.R.S., the following Statement of Basis 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 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.
101.13 STATEMENT OF BASIS, SPECIFIC STATUTORY AUTHORITY, AND
PURPOSE, ADOPTED NOVEMBER 12, 2024: EFFECTIVE JANUARY 1, 2025 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 Colorado Revised Statute Section 24-4-103(4) C.R.S., the following Statement of Basis 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 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, 2025.
The new maximum penalty is calculated by adjusting the previous maximum penalty by the percent change in the Consumer Price Index from July 2023 to July 2024. The July 2023 Consumer Price Index is 323.298. The July 2024 Consumer Price Index is 329.418. This represents a 1.89% change.
The adjusted maximum penalty is therefore equal to $64,326 multiplied by (1 + ((329.418 – 323.298) /323.298). This results in a 2025 adjusted maximum penalty of $65,544.
101.14 STATEMENT OF BASIS, SPECIFIC STATUTORY AUTHORITY, AND
PURPOSE, ADOPTED APRIL 13, 2026: EFFECTIVE MAY 30, 2026 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 Colorado Revised Statute Section 24-4-103(4) C.R.S., the following Statement of Basis 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 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 May 30, 2026.
The new maximum penalty is calculated by adjusting the previous maximum penalty by the percent change in the Consumer Price Index from July 2024 to July 2025. The July 2024 Consumer Price Index is 329.418. The July 2025 Consumer Price Index is 336.208. This represents a 2.06% change.
The adjusted maximum penalty is therefore equal to $65,544 multiplied by (1 + ((336.208 - 329.418) /329.418). This results in a 2026 adjusted maximum penalty of $66,895.
Editor’s Notes History New rule eff. 11/30/2021.
Rules 101.2, 101.3 A, 101.11 eff. 01/01/2023.
Rules 101.3, 101.11 eff. 01/01/2024.
Rules 101.3 A, 101.10 - 101.13 eff. 01/01/2025.
Rules 101.3, 101.14 eff. 05/30/2026.