DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT REGULATION NO. 102 - WATER QUALITY CONTROL DIVISION CASH FEES 5 CCR 1002-102 [Editor’s Notes follow the text of the rules at the end of this CCR Document.] _________________________________________________________________________

102.1 AUTHORITY

These regulations are promulgated pursuant to the Colorado Water Quality Control Act, section 25-8-205, C.R.S., and section 25-8-210, C.R.S.

102.2 PURPOSE

The purpose of this regulation is to set fees associated with the drinking water cash fund and the commerce and industry cash fund. The drinking water cash fees cover a portion of the Division's direct and indirect costs associated with implementing the federal “Safe Drinking Water Act,” 42 U.S.C., sec 300f et seq. and Section 25-1-114.1, Part 2 of Article 1.5, C.R.S. The commerce and industry cash fees cover a portion of the Division's direct and indirect costs associated with implementing the “Clean Water Act,” 33 U.S.C. sec 1251 et seq. and the “Water Quality Control Act” (C.R.S. Title 25, Art. 8) for the commerce and industry sector.

102.3 DEFINITIONS

(1) “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.

(2) “Commission” means the water quality control commission created by section 25-8-201, C.R.S.

(3) “Division” means the Colorado Department of Public Health and Environment, Water Quality Control Division.

102.4 DRINKING WATER CASH FEES

(1) INTRODUCTION The cash fees generated from this section shall be used to implement the Division's drinking water program. These fees cover a portion of the Division's direct and indirect costs associated with administering the federal “Safe Drinking Water Act”, 42 U.S.C. sec. 300f et seq. and section 25-1-114.1, C.R.S. and C.R.S. Title 25, Art. 1.5, Pt. 2. All fees shall be credited to the drinking water cash fund per section 25-1.5-209(2)(a), C.R.S.

(2) DRINKING WATER ANNUAL CASH FEE SCHEDULE The following 102.4(2) Table A contains the drinking water cash fee schedule. The Division may assess an annual fee upon public water systems, and all such fees shall be in accordance with 102.4 Table A.

(a) Category 01 Community surface water systems Subcategory 3 Population from 501 - 1,000 $350 Subcategory 4 Population from 1,001 - 3,300 $525 Subcategory 5 Population from 3,301 - 10,000 $977 Subcategory 6 Population from 10,001 - 30,000 $2,091 Subcategory 7 Population from 30,001 - 100,000 $5,582 Subcategory 8 Population from 100,001 - 200,000 $10,475 Subcategory 9 Population from 200,001 - 500,000 $17,459 Subcategory 10 Population greater than 500,000 $24,442 (b) Category 02 Community groundwater systems Subcategory 3 Population from 501 - 1,000 $249 Subcategory 4 Population from 1,001 - 3,300 $350 Subcategory 5 Population from 3,301 - 10,000 $768 Subcategory 6 Population from 10,001 - 30,000 $1,746 Subcategory 7 Population greater than 30,001 $5,029 (c) Category 03 Community-purchased surface water or groundwater systems Subcategory 3 Population from 501 - 1,000 $175 Subcategory 4 Population from 1,001 - 3,300 $283 Subcategory 5 Population from 3,301 - 10,000 $554 Subcategory 6 Population from 10,001 - 30,000 $977 Subcategory 7 Population greater than 30,001 $2,791 (d) Category 04 Nontransient, noncommunity surface water systems Subcategory 3 Population from 501 - 1,000 $316 Subcategory 4 Population from 1,001 - 3,300 $452 Subcategory 5 Population from 3,301 - 10,000 $701 Subcategory 6 Population from 10,001 - 30,000 $1,887 Subcategory 7 Population greater than 30,001 $4,450 (e) Category 05 Nontransient, noncommunity groundwater systems Subcategory 3 Population from 501 - 1,000 $175 Subcategory 4 Population from 1,001 - 3,300 $277 Subcategory 5 Population from 3,301 - 10,000 $559 Subcategory 6 Population from 10,001 - 30,000 $1,537 Subcategory 7 Population greater than 30,001 $4,125 (f) Category 06 Nontransient, noncommunity-purchased surface water or groundwater systems Subcategory 3 Population from 501 - 1,000 $141 Subcategory 4 Population from 1,001 - 3,300 $209 Subcategory 5 Population from 3,301 - 10,000 $367 Subcategory 6 Population from 10,001 - 30,000 $910 Subcategory 7 Population greater than 30,001 $2,237 (g) Category 07 Transient, noncommunity surface water systems Subcategory 3 Population from 501 - 1,000 $277 Subcategory 4 Population from 1,001 - 3,300 $350 Subcategory 5 Population from 3,301 - 10,000 $627 Subcategory 6 Population from 10,001 - 30,000 $701 Subcategory 7 Population greater than 30,001 $4,475 (h) Category 08 Transient, noncommunity groundwater systems Subcategory 3 Population from 501 - 1,000 $141 Subcategory 4 Population from 1,001 - 3,300 $209 Subcategory 5 Population from 3,301 - 10,000 $559 Subcategory 6 Population from 10,001 - 30,000 $605 Subcategory 7 Population greater than 30,001 $3,356 (i) Category 09 Transient, noncommunity-purchased surface water or groundwater systems Subcategory 3 Population from 501 - 1,000 $124 Subcategory 4 Population from 1,001 - 3,300 $141 Subcategory 5 Population from 3,301 - 10,000 $350 Subcategory 6 Population from 10,001 - 30,000 $492 Subcategory 7 Population greater than 30,001 $1,684

102.5 COMMERCE AND INDUSTRY SECTOR CASH FEES

(1) INTRODUCTION The cash fees generated from this section shall be used to implement clean water program activities associated with the commerce and industry sector. These fees cover a portion of the Division's direct and indirect costs associated with administering the federal “Clean Water Act,” 33 U.S.C. sec. 1251 et seq. and “Water Quality Control Act” (C.R.S. Title 25, Art. 8) for the commerce and industry sector. All fees shall be credited to the clean water cash fund per section 25-8-210(4), C.R.S.

(2) COMMERCE AND INDUSTRY CASH FEE SCHEDULE This section includes the clean water annual cash fee schedules for the commerce and industry fee payor type. The Division may assess an annual fee upon commerce and industry fee payors, and all such fees shall be in accordance with 102.5(2) Table A. The commerce and industry fee payor type includes activities associated with mining, hydrocarbon refining, sugar processing, industrial stormwater, utilities not included in the private and public utilities sector, manufacturing activities, commercial activities, and all other industrial activities.

1. Category 1 Sand and gravel and placer mining individual permit I-A Pit dewatering only $910 I-B Pit dewatering or wash-water discharge $1,037 I-C Mercury use with discharge impact $1,164 I-D Storm water discharge only $791 Category 2 Coal mining individual permit II-A Sedimentation ponds, surface runoff only $1,783 II-B Mine water, preparation plant discharge $2,401 Category 3 Hard rock mining individual permit III-A Mine dewatering from 0 up to 49,999 gallons per day $2,074 III-B Mine dewatering from 50,000 up to 999,999 gallons per day $3,912 III-C Mine dewatering, 1,000,000 gallons per day or more $5,968 III-D Mine dewatering and milling with no discharge $5,968 III-E Mine dewatering and milling with discharge $17,975 III-F No discharge $2,074 III-G Milling with discharge from 0 up to 49,999 gallons per day $6,095 III-H Milling with discharge, 50,000 gallons per day or more $12,153 Category 4 Oil Shale IV-A Sedimentation ponds, surface runoff only $3,621 IV-B Mine water from 0 up to 49,999 gallons per day $3,912 IV-C Mine water from 50,000 up to 999,999 gallons per day $4,858 IV-D Mine water from 1,000,000 gallons per day or more $4,730 IV-E Mine water and process water discharge $17,975 IV-F No discharge $3,329 Category 5 General Permits V-A Sand and gravel with process discharge and storm water $492 V-B Sand and gravel without process discharge - storm water only $137 V-C Placer mining $946 V-D Coal mining $1,419 V-E Industrial - single municipal industrial - storm water only $337 V-F Active mineral mines less than ten acres - storm water only $227 V-G Active mineral mines - ten acres or more - storm water only $683 V-H Inactive mineral mines - storm water only $137 V-I Department of transportation - sand and gravel storm-water permit $7,933 V-J Coal degasification - process water from 0 up to 49,999 gallons per $3,912 day V-K Coal degasification - process water from 50,000 up to 99,999 $5,968 gallons per day V-L Coal degasification - process water, 100,000 gallons per day or $17,975 more V-M Minimal discharge of industrial or commercial waste waters - $712 general permit Category 6 Power plants VI-A Cooling water only, no discharge $2,074 VI-B Process water from 0 up to 49,999 gallons per day $3,912 VI-C Process water from 50,000 up to 999,999 gallons per day $5,968 VI-D Process water from 1,000,000 up to 4,999,999 gallons per day $17,975 VI-E Process water, 5,000,000 gallons per day or more $17,975 Category 7 Sugar Processing VII-A Cooling water only, no discharge $2,201 VII-B Process water from 0 up to 49,999 gallons per day $2,693 VII-C Process water from 50,000 up to 999,999 gallons per day $6,731 VII-D Process water from 1,000,000 up to 4,999,999 gallons per day $17,975 VII-E Process water, 5,000,000 gallons per day or more $17,975 Category 8 Petroleum refining VIII-A Cooling water only, no discharge $2,074 VIII-B Process water from 0 up to 49,999 gallons per day $4,658 VIII-C Process water from 50,000 up to 999,999 gallons per day $5,977 VIII-D Process water from 1,000,000 up to 4,999,999 gallons per day $17,975 VIII-E Process water, 5,000,000 gallons per day or more $17,975 Category 9 Fish Hatcheries IX Fish hatcheries $1,492 Category 10 Manufacturing and other industry:

   X-A Cooling water only $2,074 X-B Process water from 0 up to 49,999 gallons per day $3,912 X-C Process water from 50,000 up to 999,999 gallons per day $5,968 X-D Process water from 1,000,000 up to 4,999,999 gallons per day $17,975 X-E Process water from 5,000,000 up to 19,999,999 gallons per day $22,086 X-F Process water, 20,000,000 gallons per day or more $35,950 X-G No discharge $2,693 X-H Amusement and recreation services $2,693 Category 11 Individual industrial storm-water permits:

   XI-A Individual industrial - less than ten acres $537 XI-B Individual industrial - ten acres or more $683 XI-C Individual industrial - storm water only - international airports $11,316

(3) CLEAN WATER CASH FEES FOR REGULATORY REQUIREMENTS This section includes the clean water cash fee schedules for the following regulatory requirements: permit application and permit modification.

(a) Permit Application Fee The Division may assess an annual permit fee and a nonrefundable permit application fee for new permits that must equal fifty percent of the annual permit fee in Section 102.5(2).

(b) Permit Modification Fee The Division may assess a fee for an amendment or modification to permits. For minor amendments, the fee must be in an amount equal to twenty-five percent of the annual permit fee in Section 102.5(2) for the permit being amended, not to exceed two thousand eight hundred ten dollars. For major amendments, the fee must be in an amount equal to fifty-five percent of the annual permit fee in Section 102.5(2) for the permit being amended, not to exceed five thousand nine hundred fifty dollars.

102.6 RESERVED

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102.15 RESERVED

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102.29 RESERVED

102.30 STATEMENT OF BASIS, SPECIFIC STATUTORY AUTHORITY, AND PURPOSE: MAY 13,

1. 2024 RULEMAKING HEARING; FINAL ACTION MAY 13, 2024 EFFECTIVE JULY 15, 2024 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:

(1) Drinking water fees assessed on public water systems pursuant to section 25-1.5-209 (1), as that section existed prior to its repeal on July 1, 2026.

(2) Commerce and industry sector permitting fees assessed pursuant to section 25-8-502 (1.1)(b), as that section existed prior to its repeal on July 1, 2026.” 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.

_________________________________________________________________________ Editor’s Notes History New rule eff. 07/15/2024.