DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT

Solid and Hazardous Waste Commission
Hazardous Materials and Waste Management Division (HMWMD)
6 CCR 1007-2

Statement of Basis and Purpose
 and Specific Statutory Authority for
Amendment of Regulations Pertaining to Solid Waste Sites and Facilities (6 CCR 1007-2 Part 1) – Section 1.7.3 (Annual Fees)

(Adopted by the Solid and Hazardous Waste Commission on February 20, 2018)
Basis and Purpose
This amendment to 6 CCR 1007-2, Section 1.7.3 is made pursuant to the authority granted to the Solid and Hazardous Waste Commission in Sections 25-15-302(4.5) and 30-20-109, C.R.S.
The purpose of this amendment to Section 1.7.3 is to remove Part 7 transfer stations and Part 8 recycling facilities from the list of solid waste facilities that are assessed an annual fee.   Currently, transfer stations are subject to an annual fee of $1,000 and recycling facilities are subject to an annual fee of $150.
Background
The Section 1.7.3 Annual Facility Fee mechanism was developed as part of the HB 07-1288 legislative stakeholder process, and was implemented pursuant to the directives of Section 30-20-109(2.5), C.R.S.   Pursuant to § 30-20-109(2.5), C.R.S., the Solid and Hazardous Waste Commission (the “Commission”) shall promulgate rules pertaining to the assessment of annual fees and document review and activity fees to offset program costs from solid waste disposal sites and facilities.  In accordance with § 30-20-109(2.5)(a), C.R.S, annual fees shall be established for solid waste disposal sites and facilities that are not required to pay solid waste user fees (SWUF) imposed pursuant to § 25-16-104.5, C.R.S.  The annual fee shall be uniform among owners of the same type of, and similarly sized, facility, and shall consider the Department’s level of effort in regulating the facilities.
As part of the stakeholder process, a significant majority of the stakeholders in both the legislative and regulatory processes supported the development and implementation of an annual facility fee for solid waste sites and facilities not subject to the SWUF.  Through interactive stakeholder negotiations and statewide discussions, an annual facility fee of $1,000/year was established for each facility type identified in Section 1.7.3.  However, after additional stakeholder concerns were raised indicating that the $1,000/year fee per facility was too burdensome for some recycling facilities, the fee for recycling facilities was reduced to $150/facility/year.
The Division has recently discovered that inclusion of transfer stations and recycling facilities in the list of facilities subject to the Section 1.7.3 annual fees is in direct conflict with the Solid Waste Act.  The wording of § 30-20-109(2.5), C.R.S. called for the establishment of annual fees for “solid waste disposal sites and facilities.”  However, sections 30-20-102(5) and 30-20-102(7), C.R.S. specifically state that recycling facilities and transfer stations “shall not be deemed to be a solid waste disposal site and facility.”
Summary of Regulatory Proposal
To correct the existing conflict with the statutory language, this amendment to Section 1.7.3(A)(1) and 1.7.3(A)(3) removes Part 7 transfer stations and Part 8 recycling facilities from the list of solid waste facilities that are assessed an annual fee.