DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT

Solid and Hazardous Waste Commission

Hazardous Materials and Waste Management Division 

6 CCR 1007-2

STATEMENT OF BASIS AND PURPOSE AND SPECIFIC STATUTORY AUTHORITY FOR 

Revisions to the Regulations Pertaining to Solid Waste Sites and Facilities (6 CCR 1007-2 Part 1) –Revisions to Section 8 Recycling and Beneficial Use Regulations

Basis and Purpose

I.	Statutory Authority 

The Solid Waste Act (“the Act”) requires the Department to regulate solid waste management within the State. The Act requires the Department to develop, implement and continuously improve, as necessary, policies and procedures for carrying out its statutory responsibilities.  § 30-20-101.5(2), C.R.S.

The Act defines solid waste as “any garbage, refuse, sludge from a waste treatment plant, water supply treatment plant, or air pollution control facility, and other discarded material, including solid, liquid, semisolid, or contained gaseous material resulting from industrial or commercial operations or from community activities.” § 30-20-101(6)(a), C.R.S.  Solid wastes disposal means “the storage, treatment, utilization, processing, or final disposal of solid wastes.”  § 30-20-101(7), C.R.S.  A person may only dispose of solid waste at a solid wastes disposal site and facility that has received a certificate of designation from the local governing body having jurisdiction.  § 30-20-102, C.R.S.

The Act provides the minimum criteria solid waste recycling facilities must meet to remain exempt from the requirement to obtain a Certificate of Designation. § 30-20-102(5), C.R.S. states “Any site and facility operated for the purpose of processing, reclaiming, or recycling recyclable materials shall not be considered a solid wastes disposal site and facility and shall not require a certificate of designation as a solid wastes disposal site and facility; except that, after an initial accumulation period specified by rule, such a site or facility shall maintain documentation that proves recyclable materials are being recycled at the site at a rate that approximately equals the rate at which recyclable materials are being collected. The solid and hazardous waste commission shall promulgate rules to specify what time periods and volumes of recyclable materials constitute operations that qualify for this exemption and to define what materials shall be deemed to be recyclable materials for the purposes of this subsection (5); except that such rules shall not define the term "recyclable materials" to include materials that are likely to contaminate groundwater or create off-site odors as a result of processing, reclaiming, recycling, or storage prior to recycling. This subsection (5) does not apply to activities regulated under § 25-8-205 (1) (e), C.R.S.”

§ 30-20-102(5), C.R.S. grants the Solid and Hazardous Waste Commission the authority to specify by rule the initial accumulation periods, material types and quantities that a recycling facility may import and remain exempt from the requirement to obtain a Certificate of Designation.

II.	Purpose of revised regulations

The purpose of revising Sections 8.5.4 and 8.5.5 of the Solid Waste Regulations is to update the regulations applicable to industrial recycling operations.  The proposed revisions are only applicable to new industrial recycling facilities that begin operations after the effective date of these regulatory changes.  The need to revise these regulations stems from challenges the Division has encountered from the regulated community under the existing regulations. 

Under the existing regulations, new industrial recycling facilities do not have to seek Division approval of their registration form and operations plan prior to accepting recyclable material at the facility and are allowed to accumulate an unrestricted amount of recyclable materials on-site for an entire year before recycling activities begin.  The current one year accumulation period was intended to allow facilities to collect enough inventory so their equipment can efficiently process recyclable materials with minimal down-time.  However, some recyclable materials can be generated at very fast rates and the inventory necessary to allow the efficient processing of these materials can be accumulated in a much shorter time frame.  Additionally, market conditions and pricing, particularly for high-volume materials, can quickly change.  Any changes to market conditions and pricing not favorable to a commodity can result in the abandonment of large volumes of recyclable materials by new and/or poorly capitalized operators.  When recyclable materials are abandoned, the Division does not have the financial means necessary to clean up the abandoned recycling facility because recycling facilities are statutorily exempt from having to provide financial assurance.

The revisions to Section 8.5.4 of the Solid Waste Regulations specify the type of registration form an owner/operator of an industrial recycling facility must submit, require Department approval of the registration form prior to receiving recyclable materials at a facility, and set forth what information needs to be included as part of the registration form.  The revisions to Section 8.5.5 of the Solid Waste Regulations clarify the type of operations plan that needs to be submitted as part of the registration, specify the information that must be included in an Industrial Recycling Facility Operations Plan, require an owner/operator to set forth the proposed initial accumulation period and maximum volume and weight to be collected during the initial accumulation period in an Industrial Recycling Facility Operations Plan, and require an owner/operator to obtain approval of the operations plan prior to importing recyclable material. 
  
The Department believes that by having the ability to review and approve the registration form and operations plan (which includes the initial accumulation period and maximum weight and volume to be accumulated during the initial accumulation period) prior to allowing an industrial recycling facility to accept recyclable materials, the problems created by changing market conditions and facility abandonment can be avoided.

Discussion of Regulatory Proposal

I.	Section and Subsection Titles

The existing structure of Section 8 remains the same with minor modifications made to Sections 8.5.4 and 8.5.5.
 
II.	Scope and Applicability (Sections 8.5.4 and 8.5.5)

The requirement to submit a registration form and operations plan for Division review and approval and the requirement to submit an initial material accumulation plan as part of the Industrial Recycling Facility Operations Plan will only apply to new owners/operators of industrial recycling facilities registering after the effective date of this regulation revision.  Industrial recycling facilities are facilities that accept non-municipal solid waste for recycling.  Typical industrial recycling operations subject to Section 8.5 include: industrial wastewater recyclers, and recyclers of various other types of construction and demolition debris. 

Description of Local Government Involvement in the Stakeholder Process

Executive Order D 2011-005 (EO5), “Establishing a Policy to Enhance the Relationship between State and Local Government” requires state rulemaking agencies to consult with and engage local governments prior to the promulgation of any rules containing mandates. The Department completed an EO5 – Internal Communication Form – Internal Conception Phase which was transmitted to local governments. The revised recycling regulations will have little effect on local governments.

Issues Encountered During Stakeholder Process

No issues were encountered during the stakeholder process. 

Regulatory Alternatives 

No other regulatory alternatives were evaluated. 

Cost/Benefit Analysis 

A cost-benefit analysis will be performed if requested by the Colorado Department of Regulatory Services.