Colorado approves fee increases to support air quality protections

(BOULDER, CO) – After years of chronic underfunding, today the Colorado Air Quality Control Commission unanimously approved increases to permit and emissions fees to fund the Air Pollution Control Division, also known as “the Division”. 

The Division is authorized to fund its programs through a combination of fee increases and General Fund contributions, but access to the General Fund is now extremely limited. With both the General Assembly and Joint Budget Committee indicating there will be no new appropriations to the Division, fee increases are currently the only viable way to support healthy air quality protections statewide without increasing the burden on taxpayers.

“The companies that profit from using the state’s natural resources should bear the costs associated with controlling pollution, rather than taxpayers who already contend with the health and safety impacts of that pollution. Looking ahead, Colorado regulators should build on this progress by developing a more durable funding structure” said Nini Gu, Senior Regulatory & Legislative Manager at EDF.

State law requires the Division to improve air quality and meet state and federal climate, environmental justice, air toxics, and other regulatory obligations. Approval of this funding will allow the Division to fulfill its responsibilities while avoiding a negative budget balance at the end of fiscal year 2027.

The updated fee structure provides essential funding so the Division can continue monitoring and inspecting emitting sources, strengthen enforcement of existing laws, and improve air quality protections across the state. A well-resourced Division allows for more timely review and approval of permits and applications for regulated entities. 

With improved funding, the Division can expand its community outreach efforts, translation and interpretation services, and ensure digital access to its records and data. Transparency and accountability to Coloradans are both essential for a regulator responsible for making critical decisions affecting the state’s future. 

The Air Quality Control Commission’s adoption of these fee increases is an important step for fiscal year 2027, but ensuring the Division’s long-term stability will require a more permanent funding structure, especially as Colorado faces growing air quality challenges. Looking ahead, the AQCC and the Division should build on this progress by developing a more durable funding structure that can keep pace with Colorado’s evolving air quality needs. 

Background:

Colorado’s air regulatory bodies have helped establish the state as a national leader on methane emissions reductions. A 2025 EDF analysis of satellite data found that Colorado reduced methane emissions from its oil and gas sector by nearly 70% between 2010 and 2017. Colorado was the first state in the nation to adopt methane rules in 2014.

Funding air quality programs through emissions and permit fees is common practice across multiple states, but fees must be updated regularly to reflect the true cost of regulating air pollution. Failing to adjust fees as the regulatory responsibilities expand risks chronic underfunding and weakened enforcement.

New Mexico recently adopted similar fee increases for its Environment Department to ensure the agency’s budget aligns with its growing workload.