Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 14-0847.01 Thomas Morris x4218 SENATE BILL 14-134 SENATE SPONSORSHIP Hodge, Steadman, Lambert HOUSE SPONSORSHIP May and Gerou, Duran Senate Committees House Committees Appropriations A BILL FOR AN ACT Concerning the repeal of statutory fee schedules applicable to water quality. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Joint Budget Committee. Section 1 of the bill: Repeals the water quality control fund and the statutory schedule of fees applicable to numerous categories and subcategories of water quality discharge permits; Creates the public and private utilities fund, construction fund, commerce and industry fund, pesticides fund, and water quality certifications fund; Identifies the particular entities that must pay fees into the new funds and the services for which the fees must be set to cover; and Gives the water quality control commission rule-making authority to set the fees for the various funds and categories of water quality discharge permits. The animal feeding operations fund is reenacted, as are the procedural requirements applicable to the review, issuance, and appeal of water pollutant discharge permits. Sections 2 through 4 make conforming amendments. Section 5 repeals the drinking water cash fund's statutory schedule of fees applicable to numerous categories and subcategories of public water systems and gives the water quality control commission rule-making authority to set the fees. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, repeal and reenact, with amendments, 25-8-502 as follows: 25-8-502. Discharge permit fees - funds created - legislative declaration - rules - repeal. (1) (a) It is the intent of the general assembly that a portion of the expenses of the implementation of this article be funded from the general fund, reflecting the benefit derived by the general public; except that the general assembly may determine, in any given fiscal year, that general fund revenues are inadequate to meet general fund demands and that, as a consequence, it may be necessary to forgo, subject to future reconsideration, all or some portion of the general fund contribution to the discharge permit program pursuant to this part 5. (b) The commission, by rule or as otherwise provided by law, may adjust the amount of one or more of the fees established by rule pursuant to this section if necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted reserves of any of the funds created in this section. After the uncommitted reserves of the fund are sufficiently reduced, the commission, by rule or as otherwise provided by law, may increase the amount of one or more of the fees as provided in section 24-75-402 (4), C.R.S. (c) (I) On July 1, 2014, the state treasurer shall transfer the unobligated balance of the water quality control fund, as it existed before its repeal, as follows: (A) Fifty-three percent to the public and private utilities fund created in subsection (2) of this section; (B) Seventeen percent to the construction fund created in subsection (3) of this section; and (C) Thirty percent to the commerce and industry fund created in subsection (4) of this section. (II) This paragraph (c) is repealed, effective July 1, 2015. (2) (a) There is hereby created in the state treasury the public and private utilities fund. The commission shall promulgate rules to establish annual fees and a permit application review fee to cover, except as specified in paragraph (a) of subsection (1) of this section, the division's direct and indirect costs associated with services provided by the division, including permit application review, permit issuance, inspections, compliance, enforcement, preliminary effluent limits, site applications, and design reviews with regard to and to be paid by sources that seek these services in connection with a discharge permit for the operation of a sewage system, domestic waste water treatment works, municipal separate storm sewer system, public water system, public water treatment facility, or reclaimed water system. (b) Any unexpended and unencumbered moneys remaining in the fund at the end of any fiscal year remain in the fund and shall not be transferred or revert to the general fund or any other fund. The general assembly shall annually appropriate moneys in the fund to the department of public health and environment for the purposes specified in this subsection (2). (3) (a) There is hereby created in the state treasury the construction fund. The commission shall promulgate rules to establish annual fees and a permit application review fee to cover, except as specified in paragraph (a) of subsection (1) of this section, the division's direct and indirect costs associated with services provided by the division, including permit application review, permit issuance, inspections, compliance, enforcement, and preliminary effluent limits with regard to and to be paid by construction project owners and operators that seek these services in connection with a discharge permit. (b) Any unexpended and unencumbered moneys remaining in the fund at the end of any fiscal year remain in the fund and shall not be transferred or revert to the general fund or any other fund. The general assembly shall annually appropriate moneys in the fund to the department of public health and environment for the purposes specified in this subsection (3). (4) (a) There is hereby created in the state treasury the commerce and industry fund. The commission shall promulgate rules to establish annual fees and a permit application review fee to cover, except as specified in paragraph (a) of subsection (1) of this section, the division's direct and indirect costs associated with services provided by the division, including permit application review, permit issuance, inspections, compliance, enforcement, and preliminary effluent limits with regard to and to be paid by commercial and industrial operations, other than the application of pesticides, that seek these services in connection with a discharge permit. (b) Any unexpended and unencumbered moneys remaining in the fund at the end of any fiscal year remain in the fund and shall not be transferred or revert to the general fund or any other fund. The general assembly shall annually appropriate moneys in the fund to the department of public health and environment for the purposes specified in this subsection (4). (5) (a) There is hereby created in the state treasury the pesticides fund. The commission may promulgate rules to establish annual fees and a permit application review fee to cover, except as specified in paragraph (a) of subsection (1) of this section, the division's direct and indirect costs associated with services provided by the division, including permit application review, permit issuance, inspections, compliance, and enforcement with regard to and to be paid by sources that seek these services in connection with a discharge permit for the application of pesticides. (b) Any unexpended and unencumbered moneys remaining in the fund at the end of any fiscal year remain in the fund and shall not be transferred or revert to the general fund or any other fund. The general assembly may annually appropriate moneys in the fund to the department of public health and environment for the purposes specified in this subsection (5). (6) (a) There is hereby created in the state treasury the water quality certification fund. The commission shall promulgate rules to establish an application review fee to cover, except as specified in paragraph (a) of subsection (1) of this section, the division's direct and indirect costs associated with water quality certification services provided by the division with regard to and to be paid by sources that seek a water quality certification pursuant to section 401 of the federal act, 33 U.S.C. sec. 1341. (b) Any unexpended and unencumbered moneys remaining in the fund at the end of any fiscal year remain in the fund and shall not be transferred or revert to the general fund or any other fund. The general assembly shall annually appropriate moneys in the fund to the department of public health and environment for the purposes specified in this subsection (6). (7) (a) There is hereby created in the state treasury the animal feeding operations fund. The commission shall promulgate rules to establish annual fees and a permit application review fee to cover, except as specified in paragraph (a) of subsection (1) of this section, the division's direct and indirect costs associated with services provided by the division, including permit application review, permit issuance, inspections, compliance, and enforcement, with regard to and to be paid by sources that own or operate housed commercial swine feeding operations. (b) Any unexpended and unencumbered moneys remaining in the fund at the end of any fiscal year remain in the fund and shall not be transferred or revert to the general fund or any other fund. The general assembly shall annually appropriate moneys in the fund to the department of public health and environment for the purposes specified in this subsection (7). (8) (a) A complete and accurate application for all discharges must be filed with the division not less than one hundred eighty days before the date proposed for commencing the discharge. (b) The application must contain such relevant plans, specifications, water quality data, and other information related to the proposed action as the division reasonably requires. Before submitting an application for a permit, the applicant may request and, if so requested, the division shall grant a planning meeting with the applicant. At the meeting, the division shall advise the applicant of the applicable administrative requirements, including the information, plans, specifications, and data required to be furnished with the permit application. (c) The division shall begin the review of an application within forty-five days after the receipt of the application and shall notify the applicant within ninety days after receipt of the application whether the application is complete. If the division determines that an application is incomplete, the division may request that the applicant submit additional information. If the division requests additional information from the applicant, the division has fifteen days after the date the additional information is submitted to determine whether the additional information satisfies the request and to advise the applicant if and in what respects the additional information does not satisfy the request. A final decision that an application is not complete is final agency action upon issuance of such decision to the applicant and is subject to judicial review. The court shall give priority scheduling to a petition for review of such decision. (9) (a) The division shall evaluate complete permit applications to determine whether the proposed discharge will comply with all applicable federal and state statutory and regulatory requirements. (b) The division shall give public notice of a complete permit application and the division's preliminary analysis of the application as provided in subsection (10) of this section. The notice must advise of the opportunity for interested persons to submit written comments on the permit application and the division's preliminary analysis or to request, for good cause shown, a public meeting on the application and analysis. A request for a public meeting must be made within thirty days after the initial public notice of the permit application and the division's preliminary analysis. If a public meeting is requested and the division, in its discretion and for good cause shown, grants the request, the division shall hold the public meeting not more than seventy-five days after the initial public notice. The division shall provide notice of the public meeting as provided in subsection (10) of this section not less than thirty days before the date of the meeting. (c) The period for public comment closes thirty days after the date of notice of the permit application and the division's preliminary analysis of the application; except that, if a public meeting is held on the application and analysis, the period for public comment closes sixty days after the date of notice of the application. (10) The division shall circulate public notice of every complete permit application and the division's preliminary analysis in a manner designed to inform interested and potentially interested persons of the application and analysis. The commission shall establish procedures for the circulation of the public notice or of a notice regarding a public meeting concerning an application and analysis, and must include at least the following: (a) Notice shall be given by at least one publication in a newspaper of general circulation that is distributed within the geographic areas of the proposed discharge. (b) Notice shall be mailed to any person or group upon request. (c) The division shall add the name of any person or group upon request to a mailing list to receive copies of notices for all discharge permit applications within the state or within a certain geographic area. (d) The division shall also, during the period from the date of the initial public notice of the application and analysis to the close of the public comment period, maintain in the office of the county clerk and recorder of the county in which the proposed discharge, or a part thereof, is to occur a copy of its preliminary analysis and a copy of the permit application with all accompanying data for public inspection. (11) (a) (I) Except as provided in this subsection (11), if the division has not finally issued or denied a permit within one hundred eighty days after receipt of the permit application, unless this time limit is waived or extended by the applicant or if the division determines at any time after receiving an application that it cannot issue a permit before the expiration of an existing permit, the division shall issue a temporary permit or the existing permit is extended pursuant to the operation of section 24-4-104, C.R.S. (II) The deadlines established pursuant to subparagraph (I) of this paragraph (a) for a determination on a permit application are extended by: (A) The number of days that an applicant takes to submit information requested by the division pursuant to paragraph (c) of subsection (8) of this section plus the fifteen days provided for the division to evaluate such additional information; and (B) Forty-five days, if a public meeting is held pursuant to subsection (9) of this section. (b) All temporary permits must contain such conditions as are necessary to protect public health and must not be less restrictive than required by state and federal effluent guidelines unless a schedule of compliance or a variance is set forth in the temporary permit. A temporary permit must be issued for a period not to exceed two years and expires as provided in the issuance or denial of the final permit. Issuance of a temporary permit is final agency action for the purposes of section 24-4-106, C.R.S. SECTION 2. In Colorado Revised Statutes, 25-8-308, amend (2) as follows: 25-8-308. Additional authority and duties of division - fee and penalties. (2) All fees collected by the division shall be transmitted to the state treasurer for deposit to the credit of the water quality control fund created by section 25-8-502 and shall be subject to appropriation by the general assembly. Except as provided in section 25-8-608, all fines and penalties for violations of this article shall be transmitted to the state treasurer for deposit to the credit of the general fund. SECTION 3. In Colorado Revised Statutes, 25-8-503.5, amend (1) introductory portion and (3) as follows: 25-8-503.5. General permits - process for changing permit requirements. (1) With respect to a general permit, listed in section 25-8-502 (1) (b) (I) (G), when proposing new or amended permit requirements for dischargers to meet, to obtain, or to maintain authorization for discharges under the permit, the division shall: (3) A party may appeal a general permit issued under section 25-8-502 (1) (b) (I) (G) pursuant to the appeals process set forth in section 24-4-105, C.R.S. SECTION 4. In Colorado Revised Statutes, 25-10-107, amend (3) as follows: 25-10-107. Fees. (3) In addition to the fees established in this section, The division may assess a fee of twenty-three dollars established pursuant to section 25-8-502 (2) (a) for each permit authorized for a new, repaired, or upgraded on-site wastewater treatment system. Of that fee, the county in which the on-site wastewater treatment system is or will be located shall retain three dollars an amount established pursuant to section 25-8-502 (2) to cover the county's administrative costs, and twenty dollars the remainder shall be transmitted to the state treasurer, who shall deposit that sum in the water quality control public and private utilities fund created in section 25-8-502 (1) (c) (2) (a). SECTION 5. In Colorado Revised Statutes, 25-1.5-209, amend (1) as follows: 25-1.5-209. Drinking water fee - drinking water cash fund - rules. (1) Effective July 1, 2007, the division may assess The water quality control commission created in section 25-8-201 shall promulgate rules to establish an annual fee upon categories and subcategories of public water systems. and all such fees shall be in accordance with the following schedule: The commission shall set the fees to cover the division's direct and indirect costs associated with services provided by the division in connection with the division's administration and implementation of the federal "Safe Drinking Water Act", 42 U.S.C. sec. 300f et seq., with regard to the categories and subcategories of public water systems. Facility Categories and Subcategories for Drinking Water Fees Annual Fees (a) Category 01 Community surface water systems Subcategory 1 Population from 25 - 250 $ 75 Subcategory 2 Population from 251 - 500 $ 100 Subcategory 3 Population from 501 - 1,000 $ 310 Subcategory 4 Population from 1,001 - 3,300 $ 465 Subcategory 5 Population from 3,301 - 10,000$ 865 Subcategory 6 Population from 10,001 - 30,000$ 1,850 Subcategory 7 Population from 30,001 - 100,000$ 4,940 Subcategory 8 Population from 100,001 - 200,000$ 9,270 Subcategory 9 Population from 200,001 - 500,000$ 15,450 Subcategory 10 Population greater than 500,000$ 21,630 (b) Category 02 Community groundwater systems Subcategory 1 Population from 25 - 250 $ 75 Subcategory 2 Population from 251 - 500 $ 100 Subcategory 3 Population from 501 - 1,000 $ 220 Subcategory 4 Population from 1,001 - 3,300 $ 310 Subcategory 5 Population from 3,301 - 10,000$ 680 Subcategory 6 Population from 10,001 - 30,000$ 1,545 Subcategory 7 Population greater than 30,001$ 4,450 (c) Category 03 Community-purchased surface water or groundwater systems Subcategory 1 Population from 25 - 250 $ 75 Subcategory 2 Population from 251 - 500 $ 100 Subcategory 3 Population from 501 - 1,000 $ 155 Subcategory 4 Population from 1,001 - 3,300 $ 250 Subcategory 5 Population from 3,301 - 10,000$ 490 Subcategory 6 Population from 10,001 - 30,000$ 865 Subcategory 7 Population greater than 30,001$ 2,470 (d) Category 04 Nontransient, noncommunity surface water systems Subcategory 1 Population from 25 - 250 $ 75 Subcategory 2 Population from 251 - 500 $ 100 Subcategory 3 Population from 501 - 1,000 $ 280 Subcategory 4 Population from 1,001 - 3,300 $ 400 Subcategory 5 Population from 3,301 - 10,000$ 620 Subcategory 6 Population from 10,001 - 30,000$ 1,670 Subcategory 7 Population greater than 30,001$ 4,450 (e) Category 05 Nontransient, noncommunity groundwater systems Subcategory 1 Population from 25 - 250 $ 75 Subcategory 2 Population from 251 - 500 $ 100 Subcategory 3 Population from 501 - 1,000 $ 155 Subcategory 4 Population from 1,001 - 3,300 $ 245 Subcategory 5 Population from 3,301 - 10,000$ 495 Subcategory 6 Population from 10,001 - 30,000$ 1,360 Subcategory 7 Population greater than 30,001$ 3,650 (f) Category 06 Nontransient, noncommunity-purchased surface water or groundwater systems Subcategory 1 Population from 25 - 250 $ 75 Subcategory 2 Population from 251 - 500 $ 100 Subcategory 3 Population from 501 - 1,000 $ 125 Subcategory 4 Population from 1,001 - 3,300 $ 185 Subcategory 5 Population from 3,301 - 10,000$ 325 Subcategory 6 Population from 10,001 - 30,000$ 805 Subcategory 7 Population greater than 30,001$ 1,980 (g) Category 07 Transient, noncommunity surface water systems Subcategory 1 Population from 25 - 250 $ 75 Subcategory 2 Population from 251 - 500 $ 100 Subcategory 3 Population from 501 - 1,000 $ 245 Subcategory 4 Population from 1,001 - 3,300 $ 310 Subcategory 5 Population from 3,301 - 10,000$ 555 Subcategory 6 Population from 10,001 - 30,000$ 620 Subcategory 7 Population greater than 30,001$ 3,960 (h) Category 08 Transient, noncommunity groundwater systems Subcategory 1 Population from 25 - 250 $ 75 Subcategory 2 Population from 251 - 500 $ 100 Subcategory 3 Population from 501 - 1,000 $ 125 Subcategory 4 Population from 1,001 - 3,300 $ 185 Subcategory 5 Population from 3,301 - 10,000$ 495 Subcategory 6 Population from 10,001 - 30,000$ 535 Subcategory 7 Population greater than 30,001$ 2,970 (i) Category 09 Transient, noncommunity-purchased surface water or groundwater systems Subcategory 1 Population from 25 - 250 $ 75 Subcategory 2 Population from 251 - 500 $ 100 Subcategory 3 Population from 501 - 1,000 $ 110 Subcategory 4 Population from 1,001 - 3,300 $ 125 Subcategory 5 Population from 3,301 - 10,000$ 310 Subcategory 6 Population from 10,001 - 30,000$ 435 Subcategory 7 Population greater than 30,001 $1,490 SECTION 6. Effective date. This act takes effect July 1, 2014. SECTION 7. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.