department of public health and environment
Air Quality Control Commission
Regulation No. 6
Standards of Performance for New Stationary Sources
5 CCR 1001-8
Part A
Federal Register Regulations Adopted by Reference
The regulations promulgated by the United States Environmental Protection Agency listed below, found in Part 60, Chapter I, Title 40, of the Code of Federal Regulations (CFR) and in effect as of the dates indicated, but not including later amendments, were adopted by the Colorado Air Quality Control Commission and are hereby incorporated by reference.  Copies of the material incorporated by reference are available for public inspection during regular business hours at the Office of the Commission, located at 4300 Cherry Creek Drive South, Denver, Colorado 80222-1530, or may be examined at any state publications depository library.  Parties wishing to inspect these materials should contact the Technical Secretary of the Commission, located at the Office of the Commission.   
All new sources of air pollution and all modified or reconstructed sources of air pollution shall comply with the standards, criteria, and requirements set forth herein.  For the purpose of this regulation, the word "Administrator" as used in Part 60, Chapter I, Title 40, of the CFR shall mean the Colorado Air Pollution Control Division, except that in the sections in Table 1, "Administrator" shall mean both the Administrator of the Environmental Protection Agency or his authorized representative and the Colorado Air Pollution Control Division.  (Other deviations from these federal standards, as presented in the CFR and which the Colorado Air Quality Control Commission ordered, are noted in the affected Subpart, and/or included in Part B of this Regulation.)
TABLE 1
40 CFR Part 60 Subpart*	Section(s)	
A	60.8 (b)(2) and (b)(3) and those sections throughout the standards that reference 60.8(b)(2) and (b)(3),60.11 (b) and (e).	
Da	60.45a.	
Ka	60.114a.	
Kb	60.111b(f)(4), 60.114b, 60.116b (e)(3)(iii) and (e)(3)(iv), 60.116b(f)(2)(iii).	
S	60.195(b).	
DD	60.302(d)(3).	
GG	60.332(a)(3), 60.335(a).	
VV	60.482-1(c)(2), 60.484.	
WW	60.493(b)(2)(i)(A), 60.496(a)(1).	
XX	60.502(e)(6).	
GGG	60.592(c).	
JJJ	60.623.	
KKK	60.634.	
*And any other section which 40 CFR Part 60 specifically states will not be delegated to the States.
Subpart A	General Provisions 40 CFR Part 60 (July 1, 2006), and as amended on July 6, 2006, May 16, 2007 and June 13, 2007.
(See Part B of this Regulation Number 6 for Additional Requirements Regarding Modifications)
Subpart Cb	Emission Guidelines and Compliance Times for Existing Sources: Municipal Waste Combustors That Are Constructed On or Before September 20, 1994.  40 CFR Part 60 (July 1, 2006).
Subpart Cc	Emission Guidelines and Compliance Times for Municipal Solid Waste Landfills.  40 CFR Part 60 (July 1, 2006).  
In addition for clarification regarding requirements applicable to existing municipal solid waste landfills, designated facilities as defined in 40 CFR 60.32c which meet the condition in 40 CFR 60.33c(a)(1) shall submit to the Division an initial design capacity report and an initial emission rate report in accordance with 40 CFR 60.757 within 90 days of the effective date of this regulation.  If the design capacity report reflects that the facility meets the condition in 40 CFR 60.33c(a)(2) and the initial NMOC emission rate report reflects that the facility meets the condition in 40 CFR 60.33c(a)(3), the facility shall comply with the collection and control system requirements in 40 CFR 60.752(b)(2)(ii), applicable control device requirements in 40 CFR 60.33c(c)(1), (2) and (3), test methods and procedures requirements in 40 CFR 60.754, operational standards in 40 CFR 60.753, compliance provisions in 40 CFR 60.755, monitoring provisions in 40 CFR 60.756 and reporting and recordkeeping provisions in 40 CFR 60.757 and 60.758, respectively.  Such facilities must complete installation of air emission collection and control equipment capable of meeting the requirements of this subpart no later than 30 months from the effective date of these requirements or the date on which the source becomes subject to this subpart pursuant to 40 CFR 60.36c(b) (the date on which the condition in 60.33c(a)(3) is met (i.e., the date of the first annual report in which the nonmethane organic compounds emission rate equals or exceeds 50 megagrams per year)), whichever occurs later. These facilities must submit a final collection and control system design plan pursuant to 40 CFR 60.757(c) within one year of the effective date of these requirements, which must be reviewed and approved by the state.  The final collection and control system design plan must specify: (1) the date by which contracts for control systems/process modifications shall be awarded, (which shall be no later than 20 months after the effective date); (2) the date by which on-site construction or installation of the air pollution control device(s) or process changes will begin, (which shall be no later than 24 months after the effective date); and (3) the date by which the construction or installation of the air pollution control device(s) or process changes will be complete (which shall be no later than 30 months after the effective date).  In addition, the plan shall include site-specific design plans for the gas collection and control system(s).  These facilities shall comply with the approved final collection and control system design plan and shall demonstrate compliance with these emission standards in accordance with 40 CFR 60.8 not later than 180 days following initial startup of the collection and control system.  The Commission designates the effective date for these requirements applicable to designated facilities, including the state emission standard for existing municipal solid waste landfills, as the date on which the United States Environmental Protection Agency promulgates a final rule approving the state plan under section 111(d) of the Clean Air Act.
Subpart Ce	Emission Guidelines and Compliance Times for Hospital/Medical/Infectious Waste Incinerators.  40 CFR Part 60, subpart Ce, 40 CFR Part 60 (July 1, 2006) Paragraphs 60.31e, 60.32e, 60.33e, 60.34e, 60.35e, 60.36e, 60.37e, 60.38e, 60.39e.
The Commission designates the effective date for these requirements applicable to designated facilities as the date on which the United States Environmental Protection Agency promulgates a final rule approving the state plan (which can be obtained from the Air Quality Control Commission office) under section 111(d) of the Clean Air Act.  Designated facilities shall comply with all requirements of this Subpart Ce on or before one year from the effective date for these requirements.
Subpart D	Standards of Performance for Fossil-Fuel-Fired Steam Generators for which Construction is Commenced after August 17, 1971. 40 CFR Part 60 (July 1, 2006), and as amended on June 13, 2007.
Subpart Da	Standards of Performance for Electric Utility Steam Generators for which Construction is Commenced after September 18, 1978.  40 CFR Part 60 (July 1, 2006) and as amended on June 13, 2007.
(See Subpart HHHH below and Part B of this Regulation Number 6 for additional requirements regarding Electric Utility Steam Generating Units)
Subpart Db	Standards of Performance for Industrial-Commercial-Institutional Steam Generating Units. 40 CFR Part 60 (July 1, 2006) and as amended on June 13, 2007.
(See Part B, Section III.D. of this Regulation Number 6 for Additional Requirements)
Subpart Dc	Standards of Performance for Small Industrial-Commercial- Institutional Steam Generating Units.  40 CFR Part 60 (July 1, 2006) and as amended on June 13, 2007.
Subpart E	Standards of Performance for Incinerators.  40 CFR Part 60 (July 1, 2006.
(See Part B, Sections V, VI and VII of this Regulation No. 6 for Additional Requirements)  
Subpart Ea	Standards of Performance for Municipal Waste Combustors For Which Construction Is Commenced After December 20, 1989 and On or Before September 20, 1994.  40 CFR Part 60 (July 1, 2006).
Subpart Eb	Standards of Performance for Municipal Waste Combustors For Which Construction Is Commenced After September 20, 1994.   40 CFR Part 60 (July 1, 2006).
(See Part B, Section VI of this Regulation No. 6 for Additional Requirements)
Subpart Ec	Standards of Performance for Hospital/Medical/Infectious Waste Incinerators for Which Construction is Commenced After June 20, 1996.  40 CFR Part 60, Subpart Ec, 40 CFR Part 60 (July 1, 2006).
(See Part B, Section V of this Regulation No. 6 for Additional Requirements)
Subpart F	Standards of Performance for Portland Cement Plants.  40 CFR Part 60 (July 1, 2006).
Subpart G	Standards of Performance for Nitric Acid Plants.  40 CFR Part 60 (July 1, 2006).
Subpart H	Standards of Performance for Sulfuric Acid Plants.  40 CFR Part 60 (July 1, 2006).
Subpart I	Standards of Performance for Hot Mix Asphalt Facilities.  40 CFR Part 60 (July 1, 2006).
Subpart J	Standards of Performance for Petroleum Refineries. 40 CFR Part 60 (July 1, 2006).
Subpart K	Standards of Performance for Storage Vessels for Petroleum Liquids Constructed after June 11, 1973 and prior to May 19, 1978.  40 CFR Part 60 (July 1, 2006).
Subpart Ka	Standards of Performance for Storage Vessels for Petroleum Liquids Constructed after May 18, 1978, and prior to July 23, 1984.  40 CFR Part 60 (July 1, 2006).
Subpart Kb	Standards of Performance for Volatile Organic Liquid Storage Vessels (Including Petroleum Liquid Storage Vessels) for which Construction, Reconstruction, or Modification Commenced after July 23, 1984. 40 CFR Part 60 (July 1, 2006.
Subpart L	Standards of Performance for Secondary Lead Smelters.  40 CFR Part 60 (July 1, 2006).
Subpart M	Standards of Performance for Secondary Brass and Bronze Production Plants.  40 CFR Part 60 (July 1, 2006).
Subpart N	Standards of Performance for Iron and Steel Plants.  40 CFR Part 60 (July 1, 2006).
Subpart Na	Standards of Performance for Basic Oxygen Process Furnaces.  40 CFR Part 60 (July 1, 2006).
Subpart O	Standards of Performance for Sewage Treatment Plants.  40 CFR Part 60 (July 1, 2006).
Subpart P	Standards of Performance for Primary Copper Smelters.  40 CFR Part 60 (July 1, 2006).
Subpart Q	Standards of Performance for Primary Zinc Smelters.  40 CFR Part 60 (July 1, 2006).
Subpart R	Standards of Performance for Primary Lead Smelters.  40 CFR Part 60 (July 1, 2006).
Subpart S	Standards of Performance for Primary Aluminum Reduction Plants.  40 CFR Part 60 (July 1, 2006).
Subpart T	Standards of Performance for the Phosphate Fertilizer Industry:  Wet-Process Phosphoric Acid Plants.  40 CFR Part 60 (July 1, 2006).
Subpart U	Standards of Performance for the Phosphate Fertilizer Industry:  Superphosphoric Acid Plants.  40 CFR Part 60 (July 1, 2006).
Subpart V	Standards of Performance for the Phosphate Fertilizer Industry:  Diammonium Phosphate Plants.  40 CFR Part 60 (July 1, 2006).
Subpart W	Standards of Performance for the Phosphate Fertilizer Industry:  Triple Superphosphate Plants.  40 CFR Part 60 (July 1, 2006).
Subpart X	Standards of Performance for the Phosphate Fertilizer Industry:  Granular Triple Superphosphate Storage Facilities.  40 CFR Part 60 (July 1, 2006).
Subpart Y	Standards of Performance for Coal Preparation Plants.  40 CFR Part 60 (July 1, 2006).
Subpart Z	Standards of Performance for Ferroalloy Production Facilities.  40 CFR Part 60 (July 1, 2006).
Subpart AA	Standards of Performance for Steel Plants:  Electric Arc Furnaces Constructed after October 21, 1974, and on or before August 17, 1983.  40 CFR Part 60 (July 1, 2006).
Subpart AAa	Standards of Performance for Steel Plants:  Electric Arc Furnaces and Argon-Oxygen Decarburization Vessels Constructed after August 17, 1983.  40 CFR Part 60 (July 1, 2006).
Subpart BB	Standards of Performance for Kraft Pulp Mills.  40 CFR Part 60 (July 1, 2006).
Subpart CC	Standards of Performance for Glass Manufacturing Plants.  40 CFR Part 60 (July 1, 2006).
Subpart DD	Standards of Performance for Grain Elevators.  40 CFR Part 60 (July 1, 2006).
Subpart EE	Standards of Performance for Surface Coating of Metal Furniture.  40 CFR Part 60 (July 1, 2006).
Subpart GG	Standards of Performance for Stationary Gas Turbines.  40 CFR Part 60 (July 1, 2006).
(See Subpart KKKK of this Regulation Number 6 for additional requirements for Stationary Combustion Turbines)
Subpart HH	Standards of Performance for Lime Manufacturing Plants.  40 CFR Part 60 (July 1, 2006).
Subpart KK	Standards of Performance for Lead-Acid Battery Manufacturing Plants.  40 CFR Part 60 (July 1, 2006).
Subpart LL	Standards of Performance for Metallic Mineral Processing Plants.  40 CFR Part 60 (July 1, 2006).
Subpart MM	Standards of Performance for Automobile and Light-Duty Truck Surface Coating Operations.  40 CFR Part 60 (July 1, 2006).
Subpart NN	Standards of Performance for Phosphate Rock Plants.  40 CFR Part 60 (July 1, 2006).
Subpart PP	Standards of Performance for Ammonium Sulfate Manufacture.  40 CFR Part 60 (July 1, 2006).
Subpart QQ	Standards of Performance for the Graphic Arts Industry:  Publication Rotogravure Printing.  40 CFR Part 60 (July 1, 2006).
Subpart RR	Standards of Performance for Pressure Sensitive Tape and Label Surface Coating Operations.  40 CFR Part 60 (July 1, 2006).
Subpart SS	Standards of Performance for Industrial Surface Coating:  Large Appliances.  40 CFR Part 60 (July 1, 2006).
Subpart TT	Standards of Performance for Metal Coil Surface Coating.  40 CFR Part 60 (July 1, 2006).
Subpart UU	Standards of Performance for Asphalt Processing and Asphalt Roofing Manufacture.  40 CFR Part 60 (July 1, 2006).
Subpart VV	Standards of Performance for Equipment Leaks of VOC in the Synthetic Organic Chemicals Manufacturing Industry.  40 CFR Part 60 (July 1, 2006).
Subpart WW	Standards of Performance for the Beverage Can Surface Coating Industry.  40 CFR Part 60 (July 1, 2006).
Subpart XX	Standards of Performance for Bulk Gasoline Terminals.  40 CFR Part 60 (July 1, 2006).
Subpart BBB	Standards of Performance for the Rubber Tire Manufacturing Industry.  40 CFR Part 60 (July 1, 2006).
Subpart DDD	Standards of Performance for Volatile Organic Compound (VOC) Emissions from the Polymer Manufacturing Industry.  40 CFR Part 60 (July 12006).
Subpart FFF	Standards of Performance for Flexible Vinyl and Urethane Coating and Printing.  40 CFR Part 60 (July 1, 2006).
Subpart GGG	Standards of Performance for Equipment Leaks of VOC in Petroleum Refineries.  40 CFR Part 60 (July 1, 2006).
Subpart HHH	Standards of Performance for Synthetic Fiber Production Facilities.  40 CFR Part 60 (July 1, 2006).
Subpart III	Standards of Performance for Volatile Organic Compound (VOC) Emissions From Synthetic Organic Chemical Manufacturing Industry (SOCMI) Air Oxidation Unit Processes (July 1, 2006).
Subpart JJJ	Standards of Performance for Petroleum Dry Cleaners.  40 CFR Part 60 (July 1, 2006).
Subpart KKK	Standards of Performance for Equipment Leaks of VOC from Onshore Natural Gas Processing Plants.  40 CFR Part 60 (July 1, 2006).
Subpart LLL	Standards of Performance for Onshore Natural Gas Processing:  SO2 Emissions.  40 CFR Part 60 (July 1, 2006).
Subpart NNN	Standards of Performance for Volatile Organic Compound Emissions from Synthetic Organic Chemical Manufacturing Industry Distillation Operations.  40 CFR Part 60 (July 1, 2006). 
Subpart OOO	Standards of Performance for Nonmetallic Mineral Processing Plants.  40 CFR Part 60 (July 1, 2006).
Subpart PPP	Standards of Performance for Wool Fiberglass Insulation Manufacturing Plants.  40 CFR Part 60 (July 1, 2006).
Subpart QQQ	Standards of Performance for VOC Emissions from Petroleum Refinery Wastewater Systems.  40 CFR Part 60 (July 1, 2006).
Subpart RRR	Standards of Performance for Volatile Organic Compounds (VOC) Emissions from Synthetic Organic Chemical Manufacturing Industry (SOCMI) Reactor Processes. 40 CFR Part 60 (July 1, 2006). 
Subpart SSS	Standards of Performance for the Magnetic Tape Manufacturing Industry.  40 CFR Part 60 (July 1, 2006).
Subpart TTT	Standards of Performance for Industrial Surface Coating of Plastic Parts for Business Machines.  40 CFR Part 60 (July 1, 2006).
Subpart UUU	Standards of Performance for Calciners and Dryers in Mineral Industries.  40 CFR Part 60 (July 1,2006).
Subpart VVV	Standards of Performance for Polymeric Coating of Supporting Substrates.  40 CFR Part 60 (July 1, 2006).
Subpart WWW	Standards of Performance for Municipal Solid Waste Landfills.  40 CFR Part 60 (July 1, 2006).
Subpart AAAA	Standards of Performance for Small Municipal Waste Combustion Units for which Construction is Commenced after August 30, 1999 or for which Modification or Reconstruction is Commenced after June 6 2001.  40 CFR Part 60 (July 1, 2006).
Subpart CCCC	Standards of Performance for Commercial and Industrial Solid Waste Incineration Units for which Construction is Commenced after November 30, 1999 or for which Modification or Reconstruction is Commenced on or after June 1, 2001.  40 CFR Part 60 (July 1, 2006).
Subpart EEEE	Standards of Performance for Other Solid Waste Incineration Units for which Construction is Commenced after December 9, 2004 or for which Modification or Reconstruction is Commenced on or after June 16, 2006.  40 CFR Part 60 (July 1, 2006, and as amended on November 24, 2006.
Subpart HHHH	Emission guidelines and compliance times for coal-fired electric steam generating units. 40 CFR Part 60 (July 1, 2006) Sections 60.4101 through 60.4108, Excluding 60.4105(B)(2); 60.4110 through 60.4114; 60.4120 through 60.4124; 60.4140; 60.4142(A)(1)(I), (A)(2)(I) and (C)(2) through (C)(4); 60.4151 through 60.4157; 60.4160 through 60.4162; and 60.4170 through 60.4176.
Any conflict between this subpart and the Federal sections incorporated by reference shall be resolved in favor of this subpart.  In addition to the requirements contained in the sections listed above, owners and operators of Hg Budget Units and Hg Budget Sources shall comply with the following provisions:
I. Definitions
The following definitions shall apply for the purposes of this Subpart:
I.A. Allocation Deficit
A circumstance wherein an Hg Budget Unit’s Hg emissions in a given Control Period, as reported in accordance with 40 CFR 60.4170 through 60.4176, exceed the amount of Hg Allowances allocated to that unit under Sections III.B.2. and III.B.3. below, for that Control Period.
I.B. Best Available Hg Control Technology Alternative Standard
An emission control standard and associated limitation based on the maximum degree of reductions in Hg taking into account energy, environmental, and economic impacts, balance of plant impacts, and other costs, determined by the Division to be achievable and compatible with existing control technology installed at the Hg Budget Unit.  In making this determination, the Division shall consider the availability of alternate methods, systems, and techniques for control of Hg, and factors such as average and marginal Hg removal costs.  Best Available Hg Control Technology Alternative Standards shall be determined on a case-by-case basis.
I.C. Existing Unit 
An Hg Budget Unit, as defined in 40 CFR 60.4102, that commenced operation before January 1, 2001 and was not permanently retired before October 31, 2006.
I.D. Inlet Hg
The average concentration of Hg in the coal burned at an Hg Budget Unit, as determined by ASTM methods, EPA-approved methods, or alternative equivalent methods approved by the Division.  Inlet Hg shall be determined prior to any Hg control-related coal treatment.
I.E. Low Emitter
An Hg Budget Unit with actual Hg emissions of no more than 29 pounds per Control Period, as determined in accordance with 40 CFR Part 75.
I.F. New Unit
An Hg Budget Unit, as defined in 40 CFR 60.4102, that commences operation on or after January 1, 2001.
I.G.  Gigawatt-hour (GWh)
A unit of energy expended for one hour (one billion watts of energy for one hour) relating to electric generation and use.  Herein, the gross GWh value shall be used in association with the permit limit.
II.  Certificate of Representation 
A copy of each complete certificate of representation for a Hg Designated Representative or an Alternate Hg Designated Representative submitted to the Administrator in accordance with 40 CFR 60.4110 through 60.4114 shall also be submitted to the Division at the time of submission to the Administrator. 
III.  Hg Allowances 
III.A.  All Colorado Hg Allowances transferred from the Administrator shall be deposited annually in the Division’s General Account and allocated by the Division as specified in Section III.B. below.
III.B. Hg Allowance  Allocations 
III.B.1.  Baseline Heat Input
The baseline heat input (in MMBtu) used with respect to Hg Allowance allocations under Sections III.B.2. and III.B.3. for each Hg Budget Unit shall be determined in accordance with 40 CFR 60.4142(a)(1)(i).  
III.B.2.  Base Allocations to Hg Budget Units for Compliance Purposes
III.B.2.a. For each Control Period, the Division shall hold in the Division’s General Account for allocation to subject Hg Budget Units in the State 100 percent of the State’s annual allocation of Hg Allowances pursuant to 40 CFR 60.4140.  To facilitate planning by Hg Budget Units, the Division shall identify a provisional allocation of Hg Allowances to Hg Budget Units as follows:
III.B.2.a.(i).  For Existing Units, an amount equal to what the unit would receive in that Control Period under 40 CFR 60.4142(a)(1)(i);
III.B.2.a.(ii).  For New Units operating each calendar year during a period of four or more consecutive calendar years, beginning in the Control Period of the unit’s fifth year of operation, an amount equal to what the unit would have received if it were an Existing Unit pursuant to Section III.B.2.a.(i)., above; and
III.B.2.a.(iii).  Section III.C.2., below, notwithstanding, for New Units not eligible to receive an allocation pursuant to Section III.B.2.a.(ii)., above:
III.B.2.a.(iii).(a).  For each Control Period from 2010 through 2017, an amount equal to five percent of the Division trading budget for the Control Period pursuant to 40 CFR 60.4140 divided proportionally, based on heat input, among the number of New Units receiving Hg Allowances under this Section III.B.2.a.(iii).
III.B.2.a.(iii).(b).  For each Control Period from 2018 and beyond, an amount equal to three percent of the Division trading budget for the Control Period pursuant to 40 CFR 60.4140 divided proportionally, based on heat input, among the number of New Units receiving Hg Allowances under this Section III.B.2.a.(iii).
III.B.2.b.  A New Unit shall report to the Division, within thirty days after the end of its first four calendar years of operation, its heat input value for each year and its highest three-year average heat input value. 
III.B.2.c. If actual emissions for an Hg Budget Unit during a Control Period equal or exceed the provisional allocation identified pursuant to Section III.B.2.a., above, the Hg Budget Unit shall have a right to an allocation of that base amount of Hg Allowances.  If the actual emissions for the Control Period exceed an Hg Budget Unit’s provisional allocation, the unit may utilize the safety valve provision in Section III.B.3., below.  In no instance, however, shall the allocation of Hg Allowances to an Hg Budget Unit exceed the unit’s actual emissions for such period, as provided in Section III.B.2.d., below.
III.B.2.d. The Division shall allocate Hg Allowances to each subject Hg Budget Unit’s Compliance Account in an amount equal to the actual emissions of each subject Hg Budget Unit consistent with any emission standards that may be in effect under Section IV.A., below.  If the Division has insufficient Hg Allowances in its General Account to cover all actual Hg emissions, available Hg Allowances shall be allocated to Existing Units and New Units pursuant to the priorities set forth in Section III.C.2., below.
III.B.2.e.  In order to develop an estimate of each Hg Budget Unit’s actual emissions in a Control Period for the purpose of forming a preliminary estimate of whether total actual Hg emissions from Colorado Hg Budget Sources in a Control Period may exceed the Division allowance budget for each Control Period pursuant to 40 CFR 60.4140, each Hg Budget Unit shall submit to the Division a certification of Hg emissions on forms supplied by the Division, no later than thirty days following the end of each quarter of a Control Period.  The Division shall calculate the statewide Hg emissions for Existing Units and New Units for each quarter of each year and provide such calculations to the Hg Budget Sources for the purpose of creating an estimate of whether there may be excess Hg Allowances for allocation to Hg Budget Units that otherwise may need to acquire Hg Allowances through the Hg Budget Trading Program, as defined in 40 CFR 60.4102.  
III.B.2.f. Beginning in 2011, each Existing Unit and New Unit shall submit to the Division no later than February 10th of each Control Period the actual emissions for the previous Control Period for each Hg Budget Unit.  
III.B.2.g.  After each Control Period, the Division shall publish a summary of the operation of the State Hg Control Program during the previous Control Period.  Such summary may include information such as the Inlet Hg or lb/GWh, the provisional allocation identified, the actual emissions and the final allocation transferred to the Hg Budget Unit. 
III.B.3.  Disposition of Unallocated Allowances
III.B.3.a.  The Division shall hold in reserve Hg Allowances not allocated to Hg Budget Units pursuant to Section III.B.2., above, if any, in the Division’s General Account for the following purposes:
III.B.3.(a).(i). safety valve allocations in accordance with Section III.B.3.(b)., below; and
III.B.3.(a).(ii). allocations for New Units in Colorado.
III.B.3.b.  Safety Valve 
If, after completion of the procedures under Section III.B.2., above, for each Control Period in 2010 and beyond, the Division has not allocated or transferred all available Hg Allowances, the Division may transfer Hg Allowances to the Compliance Accounts of Hg Budget Units having an Allocation Deficit upon request by the Hg Designated Representative.  
III.B.3.b.(i).  A request for necessary additional Hg Allowances shall be submitted to the Division on a form provided by the Division no later than February 10th of the year following the Control Period for which additional Hg Allowances are requested.  A request for additional Hg Allowances shall include: 
III.B.3.b.(i).(a).  A summary of actual Hg emissions, base Hg Allowance allocation, and the Allocation Deficit for the Hg Budget Unit in the applicable Control Period;
III.B.3.b.(i).(b)  A statement of Hg emission measurement methodologies used to determine mass of Hg emitted by the unit in the applicable Control Period; and
III.B.3.b.(i).(c).  Total annual unit operating hours and heat input.
III.B.3.b.(ii)  If the Division receives requests for a total amount of safety valve Hg Allowances greater than is available, the Division shall divide each Hg Budget Unit’s request by the total amount requested and multiply the result by the total amount of excess Hg Allowances available for allocation in the Division’s General Account for  safety valve purposes, pursuant to the following equation:
Unit A safety valve allocation = [Unit A Request ÷ Sum all requests] x account balance in Division’s General Account
III.B.3.b.(iii).  The Division shall allocate additional Hg Allowances in an amount that shall not exceed the total amount requested and shall not allocate more Hg Allowances than are available.  Any additional Hg Allowances allocated pursuant to Section III.B.3.b. shall be allocated in an amount consistent with emission standards that may be in effect under Section IV.A., below.
III.B.4.  The Division shall file a request for recordation according to 40 CFR 60.4160 to transfer total allocations from the Division’s General Account into each Hg Budget Unit’s Compliance Account on or before February 20th of each year for the previous Control Period, beginning in 2011.  
III.C.  General Account
III.C.1.  The Division shall allocate Hg Allowances out of the Division’s General Account in accordance with Sections III.B.2., III.B.3., and III.B.4, above. 
III.C.2.  General Account Prioritization 
When transferring Hg Allowances pursuant to Sections III.B.2, III.B.3., and III.B.4., above, held in the Division’s General Account, if there are insufficient Hg Allowances to allocate in order to cover actual Hg emissions from Hg Budget Units, priority shall be given in the following order:
III.C.2.a. Existing Units; then
III.C.2.b.  New Units. 
III.C.3.  If the total amount of Hg Allowances allocated and transferred to an Hg Budget Unit pursuant to Section III.B., above, exceeds the amount of Hg Allowances subtracted by EPA from the unit’s Compliance Account for the applicable Control Period in accordance with 40 CFR 60.4154, the Division shall withhold Hg Allowances from future transfers of additional Hg Allowances requested for that unit under this Section III.C.3., until an equivalent amount has been recovered by the Division.  
IV. State-only Program
IV.A. Emission Standards
IV.A.1. Base Emission Standards
IV.A.1.a. Pawnee  Station Unit 1,  14940 County Road 2, Brush, Colorado 80723, and Rawhide Station Unit 101, 2700 East County Road 82, Wellington, Colorado 80549,  shall comply, beginning January 1, 2012, with either of the following standards on a rolling 12-month basis and compliance therewith first determined on December 31, 2012:  
IV.A.1.a.(i).  An Hg output-based emission standard of 0.0174 lb/GWh; or
IV.A.1.a.(ii).  A minimum of 80 percent capture of Inlet Hg.
IV.A.1.b. Any  Hg Budget Unit, which is not a Low Emitter as defined in Section I.E., above, and is not  subject to Section IV.A.1.a., above,  shall have Hg controls installed and operating consistent with its compliance plan, beginning January 1, 2014, and shall comply with either of the following standards:
IV.A.1.b.(i).  An Hg output-based emission standard of 0.0174 lb/GWh; or
IV.A.1.b.(ii). A minimum 80 percent capture of Inlet Hg. 
For the year 2014, the compliance period for such standards shall be on a six-month average basis, for the period July 1 through December 31, 2014, and compliance therewith first determined on December 31, 2014.  For the years 2015 through 2017, compliance with these standards shall be on a rolling 12-month basis, and compliance therewith first determined on  June 30, 2015.
IV.A.1.c. Any Hg Budget Unit, which is not a Low Emitter as defined in Section I.E., above, shall comply, beginning January 1, 2018, with  either of the following standards on a rolling 12-month basis, and compliance therewith first determined on December 31, 2018:
IV.A.1.c.(i).  An Hg output-based emission standard of 0.0087 lb/GWh; or
IV.A.1.c.(ii). A minimum 90 percent capture of Inlet Hg.
IV.A.1.d. In demonstrating compliance with the base emission standards set forth in Sections IV.A.1.b and IV.A.1.c., above, , an Hg Budget Source may average the emissions or reductions from any Hg Budget Units at the Hg Budget Source that are  subject to the provisions of IV.A.1.b. and IV.A.1.c. and that commenced operation prior to January 1, 2010, and that have chosen the same  form of emission standard (i.e. lb/GWh or percent capture) with which to comply.
IV.A.1.e.  Comanche Station Unit 3, 2005 Lime Road, Pueblo, Colorado 81006, is subject to a mercury emission limitation under a state-issued permit, and Comanche Station Units 1-3 are subject to a December 2004 Settlement Agreement providing for, among other limitations and requirements, compliance with a plant-wide mercury emission limit that maximizes cost-effective mercury reductions on a plant wide basis no later than two years after the initial startup of Comanche Station Unit 3.  The requirements applicable to the Comanche Station include the installation of continuous emissions monitoring systems at Comanche Station Units 1-3.
The Hg emission-related requirements contained in this settlement agreement shall apply to Comanche Station  Units 1-3  in lieu of the standards set forth in Sections IV.A.1.b. and IV.A.1.c., above.  Lamar Station Unit 4, 100 North 2nd Street, Lamar, Colorado 81052, is subject to a permit issued pursuant to Section 169 of the Clean Air Act on February 6, 2006, which contains Hg emission limitation standards.  The Hg emission standards determined by the permit shall apply to Lamar Station Unit 4 in lieu of the standards set forth in Sections IV.A.1.b and IV.A.1.c., above.
IV.A.2. Best Available Hg Control Technology Alternative Standard
IV.A.2.a. An Hg Budget Unit can comply with the Best Available Hg Control Technology Alternative Standard, instead of the base standards in Sections IV.A.1.a., IV.A.1.b., and IV.A1.c., above, if:
IV.A.2.a.(i).  prior to the compliance date thereof, the Division determines, after consultation with the owner or operator of the Hg Budget Unit, which consultation shall include, among other relevant factors,  an assessment of the feasibility of compliance with the base emission standard in the future, that the unit cannot meet the base emission standard; or
IV.A.2.a.(ii).   After installation of Hg controls designed to meet the base emission standard, a New Unit or Existing Unit can comply with the Best Available Hg Control Technology Alternative Standard if the Division determines the following conditions have been met:
IV.A.2.a.(ii).(a). The owner or operator timely installed and operated Hg control technology, which the manufacturer thereof projected would meet or exceed the selected base emission standard;
IV.A.2.a.(ii).(b).The owner or operator has maintained the unit, including any associated air pollution control equipment, in a manner consistent with good air pollution control practices for minimizing Hg emissions, following all applicable manufacturers’ recommendations;
IV.A.2.a.(ii)(c). The control strategy has failed to result in Hg emissions meeting the base standards in Sections IV.A.1.a., IV.A.1.b., or IV.A.1.c, above;
IV.A.2.a.(ii)(d). The owner or operator notifies the Division of the failure to comply within 12 months from the initial compliance date; and
IV.A.2.a.(ii)(e).  The owner or operator files a complete construction and/or operating permit application for a significant modification pursuant to Section IV.B., below, containing an analysis designed to achieve the Best Available Hg Control Technology Alternative Standard, within 24 months from the initial compliance date.
IV.A.2.b. The Best Available Hg Control Technology Alternative Standard shall consist of an emissions limit in lbs/GWh or percent reduction rate .
IV.B. Permitting Requirements
IV.B.1.  The emission standards (including any Best Available Hg Control Technology Alternative Standard),  Low Emitter provisions, and permitting, monitoring, and enforceability requirements found in this Section IV. are applicable requirements and shall be incorporated into the permit for each subject Hg Budget Unit.
IV.B.2. The owner or operator of an Hg Budget Unit shall submit a complete construction permit and/or operating permit application for a significant modification to the Division to incorporate the applicable requirements of this Section IV.  at least 18 months prior to commencement of construction of the control equipment, or, for Low Emitters, 18 months prior to the compliance date; provided, however, for purposes of Section IV.A.1.a,  above, Rawhide Unit 101 and Pawnee Unit 1 shall submit their applications by January 1, 2009, and the Division shall issue a permit revision by January 1, 2010.
IV.B.3. Such  permit modification application shall include:
IV.B.3.a. A statement indicating that Hg Budget Units in the State under the control of the owner or operator shall comply with the emission standards and other requirements of this Section IV.;
IV.B.3.b. A detailed compliance plan for each applicable emission standard, or schedule for achieving compliance with a Best Available Hg Control Technology Alternative Standard, for each Hg Budget Unit under the control of the owner or operator, including monitoring and reporting; and
IV.B.3.c. A description of the assumptions on which the plan is based. 
IV.B.4. The Division shall issue a  permit modification within 18 months from receiving a complete permit modification application.  Such permit shall incorporate all applicable requirements, including:
IV.B.4.a. Requirements to comply with the emission standards in Section IV.A.; and 
IV.B.4.b. Requirements to comply with the permitting and monitoring requirements of Sections IV.B. and IV.C., hereof, and 40 CFR Part 75.
IV.C.  Monitoring
Hg Budget Units demonstrating compliance with the percent capture emission standard in Section IV.A.1.a.(ii)., IV.A.1.b.(ii)., IV.A.1.c.(ii)., or IV.A.2., above, shall submit to the Division for approval a monitoring plan, including the information in Section IV.C.1. or IV.C.2., below.  
IV.C.1. For Hg Budget Units that chose to demonstrate compliance with a percent Hg capture emission standard, coal Inlet Hg monitoring and emission standard demonstration methodology including, but not limited to: coal sampling location, frequency, analysis method, results documentation and calculation for incorporation into the rolling 12-month total emission standard.
IV.C.2. For  Hg Budget Units that chose to demonstrate compliance with a pounds Hg per GWh emission standard, GWh monitoring and emission standard demonstration methodology including, but not limited to: GWh monitoring, frequency, results documentation and calculation for incorporation into the rolling 12-month total emission standard.
IV.D.  Enforceability
IV.D.1. The emission standards, including Best Available Hg Control Technology Alternative Standards, permitting and monitoring requirements under Sections IV.A., IV.B., and IV.C., above, are enforceable.  Any violations of permit terms may be enforced by the Division pursuant to Section 25-7-115, C.R.S.
IV.D.2.  If an Hg Budget Unit demonstrates compliance with the  compliance plan required by Section IV.B.3.b., above, but did not comply with the applicable emission standards in Sections IV.A.1.a. through d. or Section IV.A.2., above, that unit shall be considered to be in compliance with such emission standards. 
IV.E.	 Colorado Citizens’ Mercury Reductions Trust Account
IV.E.1.	  By October 1, 2007, the Division shall establish a separate account with EPA’s Clean Air Markets Division, called the “Colorado Citizens’ Mercury Reductions Trust Account.”  In addition to the disposition of allowances by the Division as set forth in Section III.B.3., above, the Division may also transfer available allowances in accordance with this Section IV.E.
IV.E.2.  On July 1, 2016, the Division shall transfer 60 percent of the balance of the Division’s General Account to the Colorado Citizens’ Mercury Reductions Trust Account.  The Hg Allowances in the Colorado Citizens’ Mercury Reduction Trust Account shall be held in trust for the benefit of public health and the environment of the people of Colorado.  The remaining 40 percent shall remain in the Division’s General Account, and shall only be allocated for safety valve and New Unit and Existing Unit purposes, in accordance with Sections III.B.2. and III.B.3.a., above. 
IV.E.3.  On July 1, 2019, and on a periodic five-year basis thereafter, the Division shall transfer 60 percent of the incremental increase in the Division’s General Account, which has accrued since the date of the last transfer to the Colorado Citizens’ Mercury Reductions Trust Account.  The remaining 40 percent of the incremental increase shall remain in the Division’s General Account, and can be allocated for safety valve and new power generation purposes, in accordance with Section III.B.3.a., above. 
IV.E.4.  The default allocations of Sections IV.E.2. and IV.E.3. shall not occur if a rulemaking is timely commenced by the Commission prior to any default transfer date.  For purposes of Sections IV.E.2. and IV.E.3., the receipt of a petition for rulemaking, if filed after January 1st of the year in which the default would occur, commences the rulemaking.
IV.E.5.  Hg Allowances in the Colorado Citizens’ Mercury Reductions Trust Account shall not be sold, traded, or transferred.  The foregoing prohibition does not preclude the possibility of future transfer of Hg Allowances in the Colorado Citizens’ Mercury Reductions Trust Account to a private trust or similar mechanism designed to permanently retire such allowances. 
IV.E.6.  Any person may request that the Commission hold a rulemaking hearing to consider the proper disposition of any unallocated Hg Allowances in the Division’s General Account, at any time.  In any such rulemaking, the Commission shall consider the following factors and criteria, in determining the disposition of such allowances:
IV.E.6.a.  the balance of HG Allowances in the Division’s General Account; 
IV.E.6.b.  projections regarding future energy generation needs in Colorado;
IV.E.6.c.  the goal of maximizing Hg Allowances held in trust for the benefit of public health and environment for the citizens of Colorado; and
IV.E.6.d.  any other factors deemed relevant by the Commission.
Subpart IIII	Standards of Performance for Stationary Spark Ignition Internal Combustion Engines.  40 CFR Part 60 (July 1, 2006), and as amended on July 11, 2006.
Subpart KKKK	Standards of Performance for Stationary Combustion Turbines (July 1, 2006), and as amended on July 6, 2006.
(See Subpart GG for additional requirements for Stationary Gas Turbines)
APPENDIX A	Test Methods. 40 CFR Part 60 (July 1, 2006).
APPENDIX B	Performance Specifications.  40 CFR Part 60 (July 1, 2006).
APPENDIX C	Determination of Emission Rate Change.  40 CFR Part 60 (July 1, 2006).
APPENDIX D	Required Emission Inventory Information.  40 CFR Part 60 (July 1, 2006).
APPENDIX F	Quality Assurance Procedures.  40 CFR Part 60 (July 1, 2006).
APPENDIX I	Removable Label and Owner's Manual.  40 CFR Part 60 (July 1, 2006).
STATEMENTS OF BASIS, SPECIFIC STATUTORY AUTHORITY AND PURPOSE (For Part A)
I.	Adopted - June 20, 1996
Background
This statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Administrative Procedures Act, C.R.S. 1973, Section 24-4-103(4) for adopted or modified regulations.
Basis
The EPA has promulgated revisions to the federal Standards of Performance for New Stationary Sources (NSPS). The state of Colorado is required under Section 110 of the federal Clean Air Act as amended to adopt such NSPS standards and revisions into its regulations in order to maintain agency authority with regard to the Standards. 
Authority
The general authority for this regulation is contained in the Colorado Air Pollution Prevention and Control Act. Sections 25-7-105(1)(b). Specific authority is found at 25-7-109, which provides authority to adopt emission control regulations. Section 25-7-1-6(6) provides the Commission authority to require testing, monitoring and recordkeeping. In addition, Section 25-7-102 requires the Commission to use all available practical methods that are technically feasible and economically reasonable to adopt federal regulations by reference. Commission action in promulgating these revisions is taken pursuant to Sections 25-7-105 to -109 and 25-7-114, C.R.S., as amended. 
Purpose
The EPA has developed emission control regulations for specific categories of new sources based upon research that examines technical and economic feasibility and the current; best demonstrated controls being used on specific source categories. The commission is adopting these revisions to the federal rules in order to maintain administrative authority and referencing accuracy.
1.	Standards of Performance for New Stationary Sources Appendix A--Reference Methods; Amendments to Method 24 for the Determination of Volatile Matter Content, Water Content, Density, Volume Solids, and Weight Solids of Surface Coatings, 40 CFR, Section 60.17(A)(63.
This rule amends those referenced analysis procedures already in the rules to include one that can be applied to non-thin film ultraviolet radiation-cured coatings. The proposed rule does not change any emission standard, nor does it impose any new emission measurement requirements. It simply amends references to existing test methods. Method 24 is used to determine volatile matter and water content, density, volume solids and weight solids of surface coatings, such as paint, varnish, lacquer, or related surface coatings. Method 24, which references the American Society for Testing and Materials (ASTM) Method D2369-81, was meant to apply to all such coatings. However, that ASTM method cannot be used to calculate the VOC content of ultraviolet radiation-cured coatings. This rule amends Method 24 to reference ASTM Method D5403-93, which is used to measure volatile organic compounds in non-thin ultraviolet radiation-cured coatings.
2.	Standards of Performance for Volatile Organic Compound Emissions from Synthetic Organic Chemical Manufacturing Industry (SOCMI) Distillation Operations, 40 CFR, Subpart NNN, Sections 60.665 and 60.667, and SOCMI Reactor Processes, 40 CFR, Subpart RRR, Sections 60.700, 60.705, and 60.707.
This amendment corrects the spelling of certain chemical names, the Chemical Abstract System (CAS) numbers for certain chemicals, and certain cross-referencing and drafting errors in the Standard of Performance for New Sources for new, modified and reconstructed distillation operations and reactor processes in the SOCMI. The proposed amendment would also clarify reporting and recordkeeping requirements for these processes--allowing them to be submitted in conjunction with semiannual reports or as a single separate report in order to avoid their duplication. Subparts NNN and RRR of Colorado Regulation No. 6 are corrected by this amendment.
3.	Standards of Performance for New Stationary Sources and Emission Guidelines for Existing Sources: Municipal Waste Combustors, 40 CFR, Subparts Cb, Ea and Eb of Section 60.
The rule applies to municipal waste combustion (MWC) units at plants with aggregate capacities to combust more than 35 megagrams (40 tons) of municipal solid waste per day, and require sources to achieve emission levels reflecting the maximum degree of reduction in emissions of air pollutants achievable. The 40-ton-per-day threshold is lower than the 50-ton threshold previously found in Colorado’s Regulation No. 6, Part B. The standards and guidelines establish emission levels for MWC dioxins, furans, cadmium, lead, mercury, particulate matter, opacity, hydrogen chloride, sulfur dioxide, oxides of nitrogen and fugitive ash. 
The standards apply to new sources that begin construction after September 20, 1994, or that begin modification or reconstruction after June 19, 1996. MWCs constructed after December 20, 1989 and on or before September 20, 1994 are subject to previously issued (1991) standards and to the 1995 retrofit guidelines for existing sources. MWCs constructed on or before September 20, 1994 are subject only to the guidelines.
Time line table for MWC NSPS:

	On or Before Dec. 20, 1989	Dec. 21, 1989 to Sept. 20, 1994	Sept. 21, 1994 to June 19, 1996	After 
June 19, 1996	
Type of Activity	Constructed, Modified, or Reconstructed	Constructed, Modified or Reconstructed	Begin Construction	Begin Modification or Reconstruction	
Applicable Regulations	Subject to the 1995 retrofit guidelines (Subpart Cb)	Subject to 1991 standards (Subpart Ea) and 1995 retrofit guidelines (Subpart Cb)	Subject to revised standards (Subpart Eb)	
II.	Adopted - February 20, 1997 - Adoption by Reference - Subpart Cc and Subpart WWW
This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Colorado Administrative Procedures Act, section 24-4-103, C.R.S. and the Colorado Air Pollution Prevention and Control Act, section 25-7-110.5, C.R.S.
Basis
The Environmental Protection Agency on March 12, 1996 promulgated Standards of Performance for Municipal Solid Waste Landfills and Emission Guidelines and Compliance Times for Municipal Solid Waste Landfills.  The state of Colorado is required under Section 111(c) of the federal Clean Air Act as amended to adopt such New Source Performance Standards (“NSPS”) and guidelines in order to retain its authority to implement and enforce the federal Standards of Performance for New Stationary Sources.  
The Commission adopted by reference Subpart WWW of Part 60, Title 40, CFR as a New Source Performance Standard in order to obtain state authority to implement and enforce this federal standard.  In addition, the Commission adopted Subpart Cc of Part 60, Title 40, CFR, to provide the authority for the Division to proceed with preparation of the plan for existing sources required by that subpart.  
The Commission intends to review and approve a plan that meets the requirements of section 111 of the federal act in the next few months.  The Commission contemplates that the plan will include implementation and enforcement of the New Source Performance Standard in Subpart WWW as well as the emission guidelines for existing sources that are adopted as part of this rulemaking.
The Commission adopted emissions guidelines for existing municipal solid waste landfills, consistent with the required elements of a state plan set forth in 40 CFR Part 60 Subpart Cc.  The language adopted complies with the requirements of Subpart Cc and refers to that subpart for applicability provisions and some other matters.  However, the rule also refers directly to the substantive provisions of Subpart WWW, the NSPS, which are largely adopted by reference by Subpart Cc.  This strategy was developed in discussion with the interested party to make the requirements of the emissions guidelines for existing sources clear.  
Specific Statutory Authority
The general authority for this regulation is contained in the Colorado Air Pollution Prevention and Control Act, title 25, article 7, of the Colorado Revised Statutes.  Sections 25-7-105(1)(b) and 25-7-109, C.R.S., provide authority for the Commission to adopt emission control regulations.  Section 25-7-109(1)(a)(II), C.R.S., provides authority for the Commission to adopt emission control regulations for particular types of facilities, processes and activities.  Section 25-7-106(6) provides the Commission authority to require testing, monitoring and record keeping.  Section 24-4-103 (12.5) provides authority to adopt federal regulations by reference.  Commission action in promulgating these regulations is taken pursuant to the above statutory provisions.
The only portion of this rulemaking which is not an adoption by reference or a duplication of federal requirements is the choice by the Commission of interim deadlines for tasks necessary to achieving full compliance with the federal minimum collection and control system requirements as required by EPA’s guidance.  These elements of the rule are not by themselves intended to reduce air pollution.  Accordingly, the findings and determinations outlined in section 25-7-110.8(1), C.R.S., are not applicable to this rulemaking.
III.	Adopted:  July 17, 1998
This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Colorado Administrative Procedures Act, section 24-4-103, C.R.S. and the Colorado Air Pollution Prevention and Control Act, section 25-7-110.5, C.R.S.
Basis
The Environmental Protection Agency promulgated New Source Performance Standards (NSPS) and Emission Guidelines (EG) for Hospital, Medical, Infectious Waste Incinerators on September 15, 1997.  The State of Colorado is required under Section 110 of the Federal Clean Air Act, as amended, to adopt such NSPS and EG standards and revisions into its regulations in order to maintain agency authority with regard to the Standards.
The action taken today is an adoption by reference of the federal regulations and in no way deviates from the federal requirements.  This regulation does impose new and more stringent requirements on the affected facilities and will cause a significant fiscal impact on the affected facilities.  
Specific Statutory Authority
The general authority for this regulation is contained in the Colorado Air Pollution Prevention and Control Act.  Sections 25-7-105(1)(b).   Specific authority is found at 25-7-109, which provides authority to adopt emission control regulations.  Section 25-7-106(6) provides the Commission authority to require testing, monitoring and record keeping.  Commission action in promulgating these revisions is taken pursuant to Sections 25-7-105 to -109 and 25-7-114, C. R. S., as amended.
Purpose
The Commission makes the following findings and determinations pursuant to section 25-7-110.8, C.R.S.:
1.	The Commission has considered, and has based its decision, on the reasonably available, validated, reviewed and sound scientific methodologies and information made available by interested parties.
2.	Evidence in the record supports the conclusion that the operating limitations adopted will result in a demonstrable reduction in air pollution when taken in conjunction with the Federal New Source Performance Standard and Emissions Guideline.
3.	The alternative selected maximizes the air quality benefits of the emissions standards applicable.
IV.	Adopted - November 18, 1999
This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Colorado Administrative Procedures Act, section 24-4-103, C.R.S. and the Colorado Air Pollution Prevention and Control Act, section 25-7-110.5, C.R.S.
Basis
The EPA has promulgated revisions to the federal Standards of Performance for New Stationary Sources (NSPS).  The state of Colorado is required under Section 110 of the federal Clean Air Act as amended to adopt such NSPS standards and revisions into its regulations in order to maintain agency authority with regard to the Standards.
Specific Statutory Authority
The general authority for this regulation is contained in the Colorado Air Pollution Prevention and Control Act.  Sections 25-7-105(1)(b).  Specific authority is found at 25-7-109, which provides authority to adopt emission control regulations.  Section 25-7-106(6) provides the Commission authority to require testing, monitoring and record keeping.  In addition, Section 25-7-102 requires the Commission to use all available practical methods that are technically feasible and economically reasonable to adopt federal regulations by reference.  Commission action in promulgating these revisions is taken pursuant to Sections 25-7-105 to -109 and 25-7-114, C. R. S., as amended.
Purpose
The EPA has developed emission control regulations for specific categories of new sources based upon research that examines the technical and economic feasibility and the current; best demonstrated controls being used on specific source categories.  The commission is adopting these revisions to the federal rules in order to maintain administrative authority and referencing accuracy. 
Landfill
June 16, 1998
Definitions 
The definition of a new source has been changed to include modification. This change makes the landfill regulation consistent with other new source performance standards. 
The definition of modification has been clarified so that changes in compaction, cover material or thickness, and bailing and compaction practices do not trigger a modification.  These changes would not typically require a capital expenditure and so would not trigger the New Source Performance Standards. 
The definition of design capacity is being clarified so that sources may state design capacity in terms of volume or mass.
Compliance Dates 
The compliance dates section is being modified to clarify that landfills have 30 months to install a collection and control system once the landfill becomes affected.
Title V permitting
This change clarifies that sources with design capacities of 2.5 million megagrams of 2.5 million cubic meters are subject to title V permit requirements.
Monitoring
This change clarifies that a temperature-measuring device does not need to be permanently installed at each wellhead.
February 24, 1999 
Clarifies the definition of modification so that it is clear that a modification is an increase in the permitted volume of the landfill.
Other changes were clarifications in the required reporting and typographical.
Electric Arc Furnaces
March 2, 1999 Changes
Amends the NSPS for electric arc furnaces under 40 CFR 60 AA and AAa.  The changes add alternative requirements for monitoring and capture systems. 
Coal unloading
October 5, 1998 changes
Amends 40 CFR 60 Y to include coal unloading that involves conveying coal to coal plant machinery and includes and fugitive emissions from coal dumping in the determination of major source status.
Utility and Industrial Steam Generation
September 16, 1998 
Amends 40 CFR 60 Da and Db.  This change reduces the numerical NOx emission limits for utility and industrial steam generating units to reflect the performance of best-demonstrated technology.
Test Methods
May 14, 1999
Addition of three new optional test methods for measuring velocity and volumetric flow rate of flue gas from fossil fuel fired boilers and turbines.  The new methods account for velocity drop off near the wall and yaw and pitch angles of flow.  NOTE: this Federal Register includes both final and proposed rules.  The State of Colorado is requesting adoption of the final rules not the proposed rules.
Adoption of Subpart III for Synthetic Organic Chemical Manufacturing Industries
EPA promulgated this subpart in 1990 but it has not previously been adopted into Regulation No. 6.  Colorado has seen some growth in the SOCMI industry, but currently has no sources covered by this subpart.
1.	The Commission has considered, and has based its decision, on the reasonably available, validated, reviewed and sound scientific methodologies and information made available by interested parties.
2.	Evidence in the record supports the conclusion that the operating limitations adopted will result in a demonstrable reduction in air pollution when taken in conjunction with the Federal New Source Performance Standard.
3.	The alternative selected maximizes the air quality benefits of the emissions standards applicable.
V.	Adopted: January 11, 2001: Incorporation by Reference of Federal Amendments to 40 CFR part 60, subparts A, Db, Ea, and WWW into Colorado Air Quality Control Commission Regulation No. 6, Part A.
Background
This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Administrative Procedures Act, C.R.S. (1988), Sections 24-4-103(4) and (12.5) for adopted or modified regulations, and with the requirements of federal regulations incorporated by reference.
Section 111 of the 1990 Clean Air Act Amendments was enacted to help reduce the levels of air pollutant emissions from new stationary sources nationwide.  Pursuant to this section, the EPA was given the authority to promulgate New Source Performance Standards.  These standards are set forth at 40 CFR part 60. 
Basis
The EPA has promulgated revisions to the following current new source performance standards (NSPS): 40 CFR part 60, General Provisions (Appendices A and B), Guideline for Control of Existing Municipal Solid Waste Landfills, Industrial-Commercial-Institutional Steam Generating Units, and federal Plan Requirements for Large Municipal Waste Combustors Constructed On or Before September 20, 1994. The State of Colorado is required to adopt such revisions into its regulations. This rulemaking adopts these revisions to the current NSPSs.
Authority
Sections 25-7-105(1)(b) and 25-7-109, C.R.S. (2000) authorize the Commission to adopt emission control regulations, including emission control regulations relating to new stationary sources. 
Purpose
Adoption of the federal amendments to 40 CFR part 60, subparts A, Db, Ea, and WWW will make these revised NSPSs enforceable under Colorado law.  Adoption of the amendments will not impose upon sources additional requirements beyond the minimum required by federal law, and may benefit the regulated community by providing sources with up-to-date information. 
VI.	Adopted: February 21, 2002: 
Incorporation by Reference of Federal Amendments to and New Standards contained in 40 CFR part 60 into Colorado Air Quality Control Commission Regulation No. 6, Part A.
Background
This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Administrative Procedures Act, C.R.S. (2001), Sections 24-4-103(4) and (12.5) for adopted or modified regulations, and with the requirements of federal regulations incorporated by reference.
Section 111 of the 1990 Clean Air Act Amendments was enacted to help reduce the levels of air pollutant emissions from new stationary sources nationwide.  Pursuant to this section, the EPA was given the authority to promulgate New Source Performance Standards.  These standards are set forth at 40 CFR part 60. 
Basis
The EPA has promulgated revisions to the following current new source performance standards (NSPS): 40 CFR part 60, subparts A, D, Da, Db, Dc, E, Ea, Eb, Ec, F, H, J, K, Ka, Kb, L-N, Na, O, P, S, T-Z, AA, Aaa, BB-EE, GG, HH, KK-NN, PP-XX, BBB, DDD, FFF, GGG-LLL, NNN-RRR, TTT, UUU, WWW, and Appendices A and B.  In addition, the EPA has promulgated two new standards: 40 CFR part 60, subparts AAAA (Standards of Performance for Small Municipal Waste Combustion Units for which Construction is Commenced after August 30, 1999 or for which Modification or Reconstruction is Commenced after June 6 2001), and CCCC (Standards of Performance for Commercial and Industrial Solid Waste Incineration Units for which Construction is Commenced after November 30, 1999 or for which Modification or Reconstruction is Commenced on or after June 1, 2001). The State of Colorado is required to adopt such revisions and new standards into its regulations. This rulemaking adopts these revisions to the current NSPSs and new NSPSs.
Authority
Sections 25-7-105(1)(b) and 25-7-109, C.R.S. (2001) authorize the Commission to adopt emission control regulations, including emission control regulations relating to new stationary sources. 
Purpose
Adoption of the federal amendments to and new standards contained in 40 CFR part 60 will make these revised NSPSs and new NSPSs enforceable under Colorado law.  Adoption of the amendments and new standards will not impose upon sources additional requirements beyond the minimum required by federal law, and may benefit the regulated community by providing sources with up-to-date information. 
VII.	Adopted July 15, 2004
Incorporation by Reference of Federal Amendments to 40 CFR Part 60 into Colorado Air Quality Control Commission Regulation No. 6, Part A.
Background
This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Administrative Procedures Act, C.R.S. (2001), Sections 24-4-103(4) and (12.5) for adopted or modified regulations, and with the requirements of federal regulations incorporated by reference.
Section 111 of the 1990 Clean Air Act Amendments was enacted to help reduce the levels of air pollutant emissions from new stationary sources nationwide.  Pursuant to this section, the EPA was given the authority to promulgate New Source Performance Standards.  These standards are set forth at 40 CFR Part 60. 
Basis
The EPA has promulgated revisions to the following current new source performance standards (NSPS): 40 CFR Part 60, subparts A, D, Da, Db, Dc, Ea, Eb, Ec, J, Kb, CC, GG, NN, XX, SSS, GGG, CCCC, Appendix B and Appendix F.  The State of Colorado is required to adopt such revisions into its regulations. This rulemaking adopts these revisions to the current NSPSs.
Authority
Sections 25-7-105(1)(b) and 25-7-109, C.R.S. (2001) authorize the Commission to adopt emission control regulations, including emission control regulations relating to new stationary sources. 
Purpose
Adoption of the federal amendments to 40 CFR Part 60 will make these revised NSPSs enforceable under Colorado law.  Adoption of the amendments will not impose upon sources additional requirements beyond the minimum required by federal law, and may benefit the regulated community by providing sources with up-to-date information. 
VIII.	STATEMENTS OF BASIS, SPECFIC STATUTORY AUTHORITY, AND PURPOSE
This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Colorado Administrative Procedures Act, section 24-4-103, C.R.S. and the Colorado Air Pollution Prevention and Control Act, section 25-7-110.5, C.R.S.
Annual Update
Basis
The EPA promulgated a new federal NSPS for Other Solid Waste Incineration Units (OSWI) on December 16, 2005 at 40 CFR Part 60, Subpart EEEE.  In addition, EPA promulgated amendments to the following standards: 40 CFR Part 60, subparts Cb, Da, Db, Dc, AA, AAa, GG, and Appendix B.  
The State of Colorado is required under Sections 110 of the Federal Clean Air Act, as amended, to adopt such NSPS and Emission Guidelines into its regulations in order to maintain agency authority with regard to the Standards.  
Specific Statutory Authority
The general authority for this regulation is contained in the Colorado Air Pollution Prevention and Control Act.  Sections 25-7-105(1)(b).   Specific authority is found at 25-7-109, which provides authority to adopt emission control regulations.  Section 25-7-106(6) provides the Commission authority to require testing, monitoring and record keeping.  Commission action in promulgating these revisions is taken pursuant to Sections 25-7-105 to -109 and 25-7-114, C. R. S., as amended.
Purpose
Adoption by reference of amendments to the federal regulations at 40 CFR Part 60, Subparts Cb, Da, Db, Dc, AA, AAa, GG, and Appendix B will make these revised standards enforceable under Colorado law. Adoption of the amendments will not impose upon sources additional requirements beyond the minimum required by federal law, and may benefit the regulated community by providing sources with up-to-date information. 
Further, these revisions will include any typographical and grammatical errors throughout the regulation.
COLORADO AIR QUALITY CONTROL COMMISSION
ADOPTED:	SEPTEMBER 21, 2006
IX.	Adopted February 6, 2007
This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Colorado Administrative Procedures Act, section 24-4-103, C.R.S. and the Colorado Air Pollution Prevention and Control Act, section 25-7-110.5, C.R.S.
Basis for the Colorado Utility Mercury Reduction Program 
The U.S. Environmental Protection Agency (EPA) promulgated the Clean Air Mercury Rule (CAMR) on May 18, 2005. The CAMR includes Emission Guidelines for Coal-Fired Electric Steam Generating Units at 40 CFR Part 60, Subpart HHHH (Model Rule); revisions to the New Source Performance Standard (NSPS) for Electric Utility Steam Generating Units at 40 
CFR Part 60, Subpart Da; and revisions to definitions for the Acid Rain Program at 40 CFR Part 72. The CAMR sets up an interstate cap and trade program for mercury (Hg) emissions. The CAMR allocates to each state an annual mercury emissions budget, wherein each “allowance” equates to one ounce of Hg allowed to be emitted in a given year. The CAMR sets a national, first phase cap for Hg emissions of 38 tons per year (tpy) for 2010-2017 (21 percent reduction), and then a second phase cap of 15 tpy (70 percent reduction) which becomes effective in 2018. 
In accordance with Section 111(d) of the federal Clean Air Act, states adopting Emission Guidelines under Subpart HHHH are required to submit plans demonstrating how mercury emissions from coal-fired power plants will be limited consistent with the federal standards of performance. In addition, the State of Colorado is required under Section 111 of the federal Clean Air Act, as amended, to adopt Standards of Performance and Emission Guidelines into its regulations in order to maintain agency authority with regard to the Standards. Section 116 of the Clean Air Act, CAMR and the Colorado Revised Statutes authorize Colorado to adopt source-specific Hg emission limitations for Coal-Fired Electric Steam Generating Units and to provide for compliance with such limitations on an advanced timetable. 
State plans were originally due to EPA on November 17, 2006. Colorado, like many other states, did not submit its state plan by that date. It is the Commission’s intention that Colorado’s state plan be submitted to EPA expeditiously, and that Colorado implement its state plan for all Hg control periods. The Commission does not intend for the Model Rule or federal plan to be imposed by default upon Colorado for any control period. The Commission’s adoption of the Colorado Utility Mercury Reduction Program on February 6, 2007 will meet minimum EPA requirements, help ensure timely EPA approval, and secure significant reductions in Hg emissions for the citizens and environment of Colorado. 
Specific Statutory Authority 
Sections 25-7-105(1)(b), 25-7-109(1)(a), (2)(h) and (4), and 25-7-109.3, C.R.S. authorize the Commission to adopt emission control regulations, including emission control regulations relating to hazardous air pollutants. Section 25-7-106(6), C.R.S. authorizes the Commission to require testing, monitoring and record keeping. 
Purpose 
Hg is a listed hazardous air pollutant under federal and Colorado law. Adoption of a state plan for controlling Hg emissions from coal-fired electric steam generating units, including incorporation by reference of certain provisions of the CAMR, coupled with technology-based performance standards, will ensure that Hg emission reduction objectives in Colorado are met. 
40 CFR Part 60 identifies the provisions of Subpart HHHH that states must adopt to secure EPA’s approval to engage in interstate trading. The CAMR provides flexibility to states to adopt methodologies for allocating Hg emission allowances, and establishes minimum guidelines for states to notify EPA of allowance allocations. The Commission adopted by reference certain provisions of Subpart HHHH, in order to secure EPA’s approval for Colorado’s state plan. The Commission has adopted by reference the text of the remaining provisions, CFR Title 40 Part 60, Sections 4140 through 4142, with adjustments (including state law limitations on allocations and promulgation of technology-based performance standards) to fulfill state emissions control objectives. 
Mercury Emission Estimates 
There is uncertainty regarding actual Hg emissions in Colorado, and a possibility that the EPA has provided Colorado with a surplus of Hg emission allowances. An excess allocation of Colorado’s Hg allowances could lead to benefits for certain facilities without any concomitant reduction of their Hg emissions. An excess allocation could also delay installation of Hg controls by units that bank any surplus they receive. Excess allowances could also be transferred or traded to facilities in other states delaying regional and national Hg reductions. Finally, there is also uncertainty regarding the ultimate fate of the CAMR, as several states have sued EPA over objections to the CAMR, and various states have indicated an unwillingness to engage in Hg emissions trading or otherwise adopt the CAMR by reference. In light of all of the foregoing, the Commission does not believe that it would be appropriate to initially allocate the full amount of Colorado’s annual Hg emissions budget. The Commission instead finds that Hg allowances shall be allocated to facilities in Colorado for the sole purpose of complying with the Colorado Utility Mercury Reduction Program, reserving remaining allowances for well-controlled new Coal-Fired Electric Steam Generating Units and maximizing the remaining allowances held in trust for the people of Colorado. 
Compliance Allowances 
Colorado General Account. Therefore, Colorado will limit its annual allocations to Hg budget units in the following manner. EPA will annually allocate all of the Hg allowances in Colorado’s budget (1412 lbs. per year in 2010-2017 and 558 lbs per year in 2018 and beyond) to the Division to be held in the Division’s Clean Air Markets Division General Account.. The Division, in turn, will allocate allowances out of its account to each Unit in an amount equal to that Unit’s actual emissions for that year. This allocation will also be consistent with the applicable technology-based emission limit included in each Unit’s permit, as discussed below. The state’s allocation methodology is intended to ensure that each Unit receives the amount of allowances it needs to cover actual emissions (to the extent possible), and achieves actual and significant Hg emission reductions in a timely manner. The Division maintaining control of allowances will achieve this result. Out of the annual state budget amount, up to 95 percent will be allocated to Existing Units, and 5 percent will be allocated to New Units in 20102017. In 2018 and beyond, these percentages will change to 97 percent (Existing Units) and 3 percent (New Units). The Division will transfer allowances to Units upon certification that the actual Hg emissions in the preceding year on the basis of advanced Hg emission monitoring systems. The state will be prohibited from distributing allowances for a control period in an amount greater than actual emissions, consistent with the applicable emission limitations. Similarly, the owners and operators of Coal-Fired Electric Steam Generating Units in Colorado will only use such allowances for compliance with Colorado’s Utility Mercury Reduction Program. At the same time, Colorado will identify in advance the allowances projected to be available for such actual emissions to aid planning and compliance for owner/operators of affected facilities. 
Unallocated allowances will also be held in this account for new Coal-Fired Electric Steam Generating Units meeting a protective Hg emission limitation. The Division intends to commence a rulemaking prior to July 2007 to evaluate the adequacy of Hg emission limitations for such New Units and, as appropriate, adopting revised limits. 
Any unallocated allowances will remain in Division’s General Account with EPA’s Clean Air Markets Division or will be transferred to the Colorado Citizens’ Mercury Reductions Trust as provided below. 
Colorado Citizens’ Mercury Reductions Trust. The state will establish a second account for unallocated allowances denominated the Colorado Citizens’ Mercury Reductions Trust. This account will be established by October 1, 2007 for the purpose of creating a durable mechanism to hold unallocated allowances in trust for the sole benefit of human health and the environment in Colorado. The Colorado Citizens’ Mercury Reductions Trust is thus provided for in these rules. On July 1, 201660 percent of all allowances held in the Division’s General Account shall be immediately transferred to the Colorado Citizens’ Mercury Reductions Trust. On July 1, 2019, and every five years thereafter, 60 percent of allowances that have been added to the Division’s General Account since the date of the last transfer of allowances to the Colorado Citizens’ Mercury Trust shall be transferred to that trust account. Provided, however, that at any time, any interested person may submit a request for rulemaking before the Commission in which it requests that a higher or lower percentage of allowances be transferred into the Colorado Citizens’ Mercury Reductions Trust on a one time or periodic basis. The Commission would promptly convene a rulemaking hearing and review such request considering: the availability of allowances to cover actual emissions for new and existing Coal-Fired Electric Steam Generating Units complying with the Colorado Utility Mercury Reduction Program and the goal of maximizing allowances permanently held in the Colorado Citizens’ Mercury Reductions Trust for the benefit of human health and the environment. 
Safety Valve 
If allowances remain in the Division’s General Account after all initial allocations to New and Existing Units have been made in any given year, any units that have an allocation deficit may request additional allowances for the sole purpose of holding allowances equivalent to actual emissions, via a “safety-valve” provision. Under this provision, the Division will allocate allowances to cover emissions from: 1) Existing Units whose actual emissions exceed their allocation amount; and 2) New Units that were not considered in the current allocation period, whose actual emissions exceed their allocation amount. If a source is allocated more allowances out of the Division’s General Account than are needed to cover its actual emissions for a control period, the Division will automatically reduce the next provision of additional allowances by the amount of the excess provided previously. This will provide a disincentive for requesting more additional allowances than is actually needed. 
If there are not enough allowances to cover the actual emissions for new and existing Coal-Fired Electric Steam Generating Units, the available allowances will be allocated to each subject Hg Budget Unit on a pro-rata basis, in an amount determined by multiplying the total amount of Hg allowances allocated for each control period by the ratio of the baseline heat input of such subject Hg Budget Unit to the total amount of baseline heat input of all such subject Hg Budget Units in the state and rounding to the nearest whole allowance as appropriate. Provided, however, that under no circumstances shall a Unit receive allowances greater than its actual emissions under the Colorado Utility Mercury Reduction Program. Any allowances remaining in the Division’s General Account after the allowance transfer deadline will continue to be held in the Division’s General Account unless transferred to the Colorado Citizens’ Mercury Reductions Trust as provided for above. 
Limitation on CAMR Allowances. 
Allowances allocated to Colorado under CAMR shall not be used for purposes other than those provided for herein. Because units only receive amounts equal to their actual emissions, units will not have extra allowances from Colorado’s Utility Mercury Reduction Program allocation to bank, trade, transfer, or sell. 
Mercury Reductions: Technology-Based Performance Standard Under the Colorado Utility Mercury Reduction Program 
Mercury Limits in Effect. The Comanche Power Station and the Lamar Power Station shall adhere to the Hg emission limits and requirements applicable to those coal-fired electric generating units under permits and agreements in effect. 
Phase I Early Mercury Reduction Program in 2012. Beginning on January 1, 2012, Xcel Energy’s Pawnee Power Station in Brush, and Platte River Power Authority’s Rawhide power plant in Wellington, shall achieve either an 80% capture of inlet Hg or an Hg output-based emission limit of 0.0174 pounds of Hg per Gigawatt hour (lbs/GWh). Compliance with such limits shall be demonstrated on December 31, 2012 and on an annual rolling average basis thereafter. 
The Division and the owners and operators of Hg Budget Units recognize that achieving dates for compliance in 2012, 2014, and 2018 requires that the Division issue the relevant permits in the timeframes provided in Section IV.B. of the Rule. The Division will use its best efforts to meet the dates in the Rule for permit issuance. If a permit is not issued within the time set forth in the Rule, the parties will confer in an effort to minimize the resulting delays both in installation of Hg emissions controls and in the dates for required compliance with emissions standards. 
Phase I Hg Emissions Reduction Requirements in 2014. Beginning on January 1, 2014, all existing coal-fired electric generating units in Colorado, excluding sources with limits in effect and low emitters, will be required to install and operate Hg emission controls designed as necessary to achieve either an 80% capture of inlet Hg or an Hg output-based emission limit of 0.0174 pounds of Hg per Gigawatt hour (lbs/GWh). Beginning on July 1, 2014, such sources will need to achieve either an 80% capture of inlet Hg or an Hg output-based emission limit of 0.0174 pounds of Hg per Gigawatt hour (lbs/GWh). Compliance with such limits shall be demonstrated on December 31, 2014 on the basis of 6 months of data generated beginning on July 1, 2014, and on an annual rolling average basis beginning June 30, 2015 and thereafter. 
Phase II Hg Emission Limits in 2018. Beginning on January 1, 2018 all existing coal-fired electric generating units in Colorado, excluding sources with limits in effect and low emitters, shall achieve either a 90% capture of inlet Hg or an Hg output-based emission limit of 0.0087 lbs/GWh. Compliance with such limits shall be demonstrated on December 31, 2018, and on an annual rolling average basis thereafter. 
Low Emitters are coal-fired units emitting 29 pounds of Hg or less on an annual basis. Such units shall be exempted from the technology-based emissions standards of the Colorado Utility Mercury Reduction Program. At the end of each calendar year, if the cumulative annual Hg mass emissions from an affected unit have exceeded 29 pounds, then the owner shall install, certify, operate, and maintain a Hg concentration monitoring system or a sorbent trap monitoring system no later than 180 days after the end of the calendar year in which the annual Hg mass emissions exceeded 29 pounds. For common stack and multiple stack configurations, installation and certification of a Hg concentration or sorbent trap monitoring system on each stack (except for bypass stacks) is likewise required within 180 days after the end of the calendar year. The Low Emitter shall also be subject to the enforceability provisions of this Rule. 
Alternative Standards for Compliance. 
Sources that demonstrate that they are unable to meet the Hg emission standards under the Colorado Utility Mercury Reduction Program can request that the Division set an alternative, unit-specific standard. This “Best Available Mercury Control Technology Alternate Standard” provides for an alternative compliance mechanism for sources that cannot achieve the underlying standard, before and/or after installation of controls, despite their best efforts to do so. The Division will review requests for alternative standards and either approve or deny such requests considering information provided by the applicant, the Division’s expertise and information, and after providing adequate opportunity for public input. 
The Best Available Mercury Control Technology Alternative Standard can provide what utilities have termed a “soft landing” in the event a unit is unable to achieve the base emission standards. The Commission does not intend for alternative standards to provide a perpetual “soft landing” or a mechanism to avoid compliance with applicable standards. 
When a unit is unable to achieve the underlying base standard (and that inability is identified either before or after the installation of Hg emission controls, and either before or after the 20102017 and 2018 and beyond control periods), the unit must submit an application for an alternative standard, which shall include a compliance plan for achieving that alternative standard. Once the Division approves or disapproves the permit application, the approved alternate standard and associated compliance plan (or the underlying base standard in the event of disapproval) shall become enforceable as to that unit. The “safe harbor” or enforcement discretion provided by Section IV.D.2 is not intended to allow a unit to avoid liability by submitting multiple permit modifications. 
Review of Limits for New Sources. 
The Division intends to commence a rulemaking prior to July 2007, to review the adequacy of Colorado’s Hg emission limitations for new coal-fired electric generating units. 
Timing of Allocations 
CAMR provides states with the flexibility to determine an alternative to the EPA’s Model Rule for the timing of allocation determinations, in order to suit individual state objectives. The Commission believes that it is appropriate for Colorado sources to demonstrate actual Hg emissions at the conclusion of each year and for the state to distribute available allowances on the basis of actual emissions in accordance with the Colorado Utility Mercury Reduction Program strictly as necessary to assure compliance. The Commission understands that, at the same time, the Division will identify in advance the allowances projected to available for such actual emissions to aid planning and compliance for owners/operators of affected facilities . 
Additional Considerations 
The CAMR specifically allows states the flexibility to adopt allocation methodologies and timing that are not identical to those in the federal Model Rule. By taking advantage of this flexibility, Colorado’s rule is thus consistent with the federal rule. To the extent the adopted state rule may be viewed as differing in some respects from the federal CAMR, the Commission provides the following additional statement, consistent with §§ 25-7-110.5(5)(a) and 110.8, C.R.S. 
(I) Certain federal requirements are applicable. Colorado is required to submit a state plan for complying with the Hg new source performance standards, in accordance with section 111(d) the federal Clean Air Act. Failure to submit a state plan will result of imposition of the federal plan. The Commission intends for Colorado to be in charge of its own Hg control strategy (including allocations), rather than deferring such regulation to EPA. 
(II) The CAMR is performance based, as it sets forth standards of performance for coal-fired power plants. The CAMR provides flexibility to states and sources that participate in the CAMR, regarding how to reduce Hg emissions and otherwise meet the performance standards, as long as the national cap on emissions is met. 
(III) Data regarding Hg emissions was considered in the federal process leading up to the CAMR. However, accurate data regarding actual Hg emissions and the fate and transport of such emissions (both in Colorado and nationwide) is limited and contains many uncertainties. The Commission concluded that the adopted rule will provide reductions in Colorado Hg emissions in a more appropriate and timely manner than the CAMR. 
(IV) The adopted rule will provide certainty to sources, by providing allocations for compliance, specified technology-based performance standards, and clear timing requirements. 
(V) The state and federal rules have similar time frames for implementation. 
(VI) The adopted rule, and in particular the provisional allocations, safety valve, state general compliance account, and ability of units to obtain shortfall allowances via purchase, will assist in establishing and maintaining a reasonable margin for accommodation of uncertainty and future growth. 
(VII) The adopted rule establishes reasonable equity for sources subject to the rule by providing the same allocation methodologies for all sources. 
(VIII) If the state rule were not adopted, public health and welfare and the environment could face increased costs associated with delays in installation of Hg controls. 
(IX) There are some different monitoring requirements in the state rule, which are necessary to demonstrate compliance with the state’s technology-based performance standard. 
(X) Demonstrated technology is available to control Hg emissions The rule is based upon reasonably available, validated, reviewed, and sound scientific methodologies, and the Commission has considered all information submitted by interested parties. 
(XI) The adopted rule will contribute to the prevention of pollution by reducing Hg emissions. 
(XII) Although alternative rules were previously presented to and considered by the Commission, the Commission determined that the adopted proposal, which had consensus support amongst all parties to the rulemaking, was the most appropriate. The adopted rule provides mechanisms for early reduction of Hg in Colorado, while also providing flexibility for sources and future growth. 
(XIII) After consideration of all the evidence in this rulemaking, the Commission determined that the rule will result in demonstrable reduction in Hg emissions and will concurrently bring about reduced risks to human health and the environment that justify the costs to implement and comply with the rule. 
(XIV) EPA apparently believes that the model cap and trade rule is the most cost effective approach to reducing Hg emissions on a national level. In light of uncertainties associated with Hg emissions in Colorado, full allocation under the Model Rule may not result in timely and meaningful Hg emission reductions in Colorado. Full adoption of the CAMR may delay installation of Hg controls in Colorado, and lead to increased costs to public health and the environment. 
(XV) The Commission determined that the selected regulatory alternative will maximize the air quality benefits of regulation, including reducing Hg emissions, in the most cost-effective manner.
X.	Adopted October 18, 2007:  Annual Update
This Statement of Basis, Specific Statutory Authority and Purpose complies with the requirements of the Colorado Administrative Procedures Act, Section 24-4-103, C.R.S. and the Colorado Air Pollution Prevention and Control Act, Section 25-7-110.5, C.R.S.
Basis
The EPA promulgated a new Federal NSPS for Stationary Spark Ignition Internal Combustion Engines on June 26, 2006 at 40 CFR Part 60, Subpart IIII and for Stationary Combustion Turbines on July 6, 2006 at 40 CFR Part 60, Subpart KKKK.  In addition, EPA promulgated amendments to the following standards: 40 CFR Part 60, Subparts A, Da, Db, Dc, EEEE, and Appendices A, B and F.
The State of Colorado is required under Sections 110 of the Federal Clean Air Act, as amended, to adopt such NSPS and Emission Guidelines into its regulations in order to maintain agency authority with regard to the Standards.
Specific Authority
The general authority for this regulation is contained in the Colorado Air Pollution Prevention and Control Act, Sections 25-7-105(1)(b).  Specific authority is found at 25-7-109, which provides authority to adopt emission control regulations.  Section 25-7-106(6) provides the Commission authority to require testing, monitoring and record keeping.  Commission action in promulgating these revisions is taken pursuant to Section 25-7-105 to –109 and 25-7-114, C.R.S., as amended.
Purpose
Adoption by reference of amendments to the federal regulation at 40 CFR Part 60, including Subparts A, Da, Db, Dc, EEEE, IIII and KKKK, and Appendices A, B and F will make these revised standards enforceable under Colorado law.  Adoption of the amendments will not impose upon sources additional requirements beyond the minimum required by federal law, and may benefit the regulated community by providing sources with up-to-date information.
Further, these revisions will include any typographical and grammatical errors throughout the regulation.