Page 1
April 27, 2022 HB 22-1244
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 1, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-0552
Rep. Kennedy;
Gonzales-Gutierrez
Sen. Gonzales
Date:
Bill Status:
Fiscal
Analyst:
April 27, 2022
House Appropriations
Christina Van Winkle | 303-866-6289
Christina.VanWinkle@state.co.us
Bill Topic: PUBLIC PROTECTIONS FROM TOXIC AIR CONTAMINANTS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates a new program in the Department of Public Health and Environment
to regulate toxic air contaminants based on adverse health effects. It creates an
advisory board to advise the Air Quality Control Commission on identifying toxic air
contaminants, establishing health-based standards, and reviewing the list of toxic air
contaminants. Beginning in FY 2022-23, the bill increases state expenditures on an
ongoing basis.
Appropriation
Summary:
For FY 2022-23, the bill requires an appropriation of $3.1 million to the Department of
Public Health and Environment.
Fiscal Note
Status:
This revised fiscal note reflects the introduced bill, as amended by the House Energy
and Environment Committee.
Table 1
State Fiscal Impacts Under HB 22-1244
Budget Year
FY 2022-23
Out Year
FY 2023-24
Out Year
FY 2024-25
Revenue - - -
Expenditures General Fund $3,135,853 $3,417,491 $4,605,389
Centrally Appropriated $339,183 $519,723 $750,235
Total Expenditures $3,475,036 $3,937,214 $5,355,624
Total FTE 17.5 FTE 28.0 FTE 39.5 FTE
Other Budget Impacts General Fund Reserve $470,378 $512,624 $690,808
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April 27, 2022 HB 22-1244
Summary of Legislation
The bill creates a new program in the Department of Public Health and Environment (CDPHE) to
regulate toxic air contaminants (TACs) based on adverse health effects. Toxic air contaminants are
defined in the bill as hazardous air pollutants, covered air toxics, and any other air pollutant
designated by the Air Quality Control Commission (AQCC). The AQCC must adopt rules to
implement the program. Program details and an implementation timeline are described in the table
and narrative below.
Table 2
Implementation Timeline of HB22-1244
Date Activity
January 1, 2024
AQCC creates an initial list of TACs
CDPHE begins TAC ambient air quality monitoring program
April 1, 2024
Owners and operators of major and synthetic minor sources
begin submitting annual emissions inventory reports to CDPHE
December 31, 2024
AQCC adopts rules requiring additional information in annual
emissions inventory report, based on gap assessment
July 1, 2025
CDPHE prepares annual report summarizing findings of the
monitoring program
CDPHE prepares a needs assessment to administer an air
permitting program to regulate existing sources of TACs
October 1, 2025 AQCC adopts health-based standards for up to five priority TACs
July 1, 2026
AQCC adopts emission control regulations for priority TACs
based on best available control technology
July 1, 2027
Owners or operators must conduct ambient impact analysis when
applying for new or modified air permits
October 1, 2030
AQCC reviews priority TAC list and determines whether to add
additional TACs and associated health-based standards
Toxic air contaminant list. Beginning no later than January 1, 2024, and every five years thereafter,
the AQCC must review the list of TACs and determine by rule whether to add additional TACs to the
list. The AQCC must take into consideration data gathered through air quality monitoring, annual
emissions inventory reports, federal toxic release inventories, and peer reviewed scientific data, as
well as public input and information from other states.
Annual emissions inventory. Beginning April 1, 2024, all owners and operators of major sources and
minor synthetic sources must submit annual emissions inventory reports to the CDPHE that report
information on the amount of each TAC and criteria air pollutant emitted in the preceding calendar
year. The CDPHE is required to make these reports available to the public. The CDPHE will conduct
an analysis on the reporting requirements and informational gaps and submit a report on those
findings to the AQCC by July 1, 2024. The AQCC will adopt rules by December 31, 2024, that require
additional information to be included in the annual emissions inventory reports based on the report
findings. Page 3
April 27, 2022 HB 22-1244
Ambient air monitoring. The CDPHE will begin conducting a monitoring program to determine
TACs in the ambient air in the state by January 1, 2024. At least three long-term monitoring sites must
be in operation by January 1, 2024, and at least three additional monitoring sites must be in operation
by January 1, 2025. In determining the location of monitoring sites, the CDPHE must provide an
opportunity for public input and give priority to disproportionately impacted communities and
include both urban and rural locations. The CDPHE must prepare an annual report on the findings
of the monitoring sites by July 1, 2025.
Health-based standards. By October 1, 2025, the AQCC will adopt rules that identify up to five
priority TACs based on the risk of harm to human health and data gathered through the monitoring
programs, the annual emissions inventory reports, the federal toxics release inventory, and any other
relevant data. The rules must establish health-based standards for priority TACs that are protective
of public health and consistent with current peer-reviewed data, and must be set at least as stringently
as health-based standards adopted in other states or jurisdictions. By October 1, 2030, and every five
years thereafter, the AQCC must determine whether to identify additional priority TACs and adopt
health-based standards.
Emission control regulations. By July 1, 2026, the AQCC will adopt emission control regulations for
each priority TAC, designed to reduce emissions through the application of best available control
technology. By July 1, 2031, and every five years thereafter, the AQCC will adopt emission control
regulations for additional priority TACs identified in rule. When reviewing and approving renewable
operating permits, the CDPHE must include any applicable emission control regulations in the permit.
Permits. Beginning on July 1, 2027, owners and operators are required to analyze emissions impacts
on priority TAC concentrations when applying for new or modified air pollution permits. The
CDPHE may only approve permits if the owner or operator demonstrates that the potential level of
emissions will not result in exceeding the health-based standards. The AQCC may establish threshold
levels of annual potential emissions, below which are exempt from these requirements.
Background
There are currently 187 hazardous air pollutants, or air toxics, that have been associated with adverse
health effects. These air toxics differ from the six common air pollutants, known as criteria pollutants,
which are regulated through National Ambient Air Quality Standards based on human health and/or
environmental criteria. Air toxics are pollutants that are known or suspected to cause cancer or other
serious health effects, and are regulated through technology-based national emission standards.
Colorado, by adopting the corresponding federal regulation under the Clean Air Act, is the delegated
authority to regulate air toxics through these technology-based standards. The CDPHE requires
reporting and control measures for certain air toxics as required by federal law. The CDPHE also
performs special projects for covered air toxics, including hydrogen cyanide, hydrogen sulfide, and
benzene, but does not have routine monitoring in place as no ambient air standards are specified for
them.
In 2021, the General Assembly enacted House Bill 21-1189 which imposed requirements for fenceline
and community-based monitoring of covered air toxics for certain stationary sources, including
petroleum refineries, aircraft parts manufacturing, and certain petroleum bulk stations and terminals. Page 4
April 27, 2022 HB 22-1244
State Revenue
To the extent that the CDPHE is able to impose fees from owners and operators of TAC sources to
cover administrative costs, revenue will increase. This fiscal note assumes that General Fund will be
required in the first few years while the program is being established. Once program rules, the
population subject to regulation, and additional detailed are known, it is assumed that CDPHE, at the
earliest, could establish program fees around FY 2025-26. This potential fee revenue has not been
estimated. This fiscal note also assumes that any fee revenue collected will be deposited to the
Stationary Source Control Fund, which is subject to TABOR.
State Expenditures
The bill increases state General Fund expenditures in the CDPHE by $3.5 million in FY 2022-23, $3.9
million in FY 2023-24, and $5.4 million in FY 2024-25. The fiscal note assumes that the General Fund
will be used to establish the new regulatory program in the first two years, which may be funded by
fee revenue in future years. Expenditures are shown in Table 3 and detailed below.
Table 3
Expenditures Under HB22-1244
FY 2022-23 FY 2023-24 FY 2024-25
Department of Public Health and Environment
Personal Services $1,484,862 $2,163,660 $3,038,162
Operating Expenses $25,245 $35,370 $50,895
Capital Outlay Costs $117,800 $43,400 $74,400
Legal Services $73,928 $325,281 $325,281
Monitoring Stations $342,000 $272,250 $903,335
Contractual Services – Toxicology $400,000 $350,000 -
Computer Programming $597,228 $117,740 $121,526
Software Licensing and Cloud Storage - $15,000 $15,000
Public Outreach and Communications $76,000 $76,000 $58,000
Travel $18,790 $18,790 $18,790
Centrally Appropriated Costs
1
$339,183 $519,723 $750,235
FTE – Personal Services 17.1 FTE 26.2 FTE 37.7 FTE
FTE – Legal Services 0.4 FTE 1.8 FTE 1.8 FTE
Total Cost $3,475,036 $3,937,214 $5,355,624
Total FTE 17.5 FTE 28.0 FTE 39.5 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
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April 27, 2022 HB 22-1244
Staffing. Beginning in FY 2022-23, the CDPHE requires staff resources to ramp up over the course of
five fiscal years to establish the new regulatory program for TACs. These staff resources are described
below.
Rulemaking. The CDPHE requires 4.0 FTE in FY 2022-23 and 5.0 FTE in FY 2023-24 to develop
rules establishing the list of TAC covered by the program, and to design an inventory reporting
program for owners and operators to begin submitting emissions inventory reports by
April 1, 2024. The bill requires the AQCC to consider public input and data gathered from
monitoring programs and other sources of information. Staff will also be required beginning in
FY 2024-25 to establish health-based emissions standards and emission control measures in rule
for priority TACs, estimated at approximately 11 FTE per year. These staff resources in out years
are estimates only and will be determined based on the identification of priority TACs.
Emissions inventory reports. The CDPHE requires 3.0 FTE in FY 2022-23, 6.0 FTE in FY 2023-24, and
7.0 FTE in FY 2024-25 and onwards to support emissions inventory processing and database
management. Staff will also conduct a study as required in the bill to analyze existing reporting
requirements, assess the availability and quality of TAC data, and identify informational gaps in
reporting. Based on the findings of this study, additional staff resources may be required in out
years to create and maintain a more robust reporting framework.
Monitoring program. The CDPHE will develop a monitoring program to determine concentrations
of TACs and a health assessment program to evaluate the risk and impacts of emission levels on
public health. In addition to monitoring equipment costs and contractual services, as discussed
below, 2.0 FTE in FY 2022-23, 4.0 FTE in FY 2023-24, and 5.5 FTE in FY 2024-25 and onwards are
needed to install and operate three monitoring stations by January 1, 2024, and three additional
stations by January 1, 2025. Staff will install equipment, develop local contracts, operate the
stations, review and analyze the data, develop reports, and hold public hearings.
Program management and administrative support. The bill requires the CDPHE to add staff across
several programs within the Air Pollution Control Division to manage the additional staff and
ensure coordination of the new program and to provide human resources and data management
support. These staff will be responsible for air toxics policy development, communication, and
researching and assessing air toxic health impacts, including overseeing toxicology contractual
services. In total, an additional 4.5 FTE in FY 2022-23, increasing to 9.0 FTE by FY 2024-25, are
needed.
Environmental justice. The CDPHE requires additional staff resources in the Environmental Justice
Unit to support outreach and advise on addressing the needs of disproportionately impacted
communities when developing the program. Staff resources of 1.2 FTE in FY 2022-23 and ongoing
will evaluate TACs and how to incorporate these pollutants into existing tools such as
EnviroScreen, conduct outreach to communities related to identifying locations for monitoring
stations, and assist in sharing monitoring and inventory information with the public and
community members.
Permit modeling. Additional staff resources are required to conduct emissions modeling to ensure
permits approved will not result in pollutants emitted in excess of the health-based standards,
once those standards are established in rule by July 1, 2027. Staff resources will depend on the Page 6
April 27, 2022 HB 22-1244
identification of priority TACs and the health-based standards and emission control measures
determined by rule. Therefore, these staff resources are not estimated in this fiscal note, and
assumes that the CDPHE will request additional resources through the annual budget process
once these rules have been established.
Other program costs. In addition to personnel costs, CDPHE will incur additional costs for legal
services, contractual services, monitoring equipment, technology upgrades, public outreach, and
travel. These costs are described below.
Legal services. Approximately 750 hours of legal services in FY 2022-23 and 3,300 in FY 2023-24
and beyond will be provided by the Department of Law annually at a rate of $98.57 per hour to
support initial program design and to develop rules.
Monitoring stations. The CDPHE will establish an air monitoring program by installing three
monitoring stations by January 1, 2024, with three additional monitoring stations added by
January 1, 2025. Each monitoring station will cost $114,000 to install including shelter, sensors,
samplers, power installation, concrete pads, permits, and a data logger. Operating costs for the
first three stations are estimated at $272,250 in FY 2023-24 (half-year impacts), and increasing to
$556,335 in FY 2024-25. Costs in FY 2024-25 include the installation of three additional monitoring
stations which must be operating by January 1, 2025.
Contractual services. The CDPHE requires staff and outside consulting services to evaluate peer-
reviewed scientific data, as well as monitoring data, emissions inventory reports, and public input
to make additions to the TAC list, identify priority TACs, and to establish health-based standards.
Contractual services of $400,000 in FY 2022-23 and $350,000 in FY 2023-24 will evaluate
peer-reviewed scientific publications.
Technology costs. The CDPHE requires a database to support the annual emissions inventory
reporting and system programming to refine the existing monitoring system to accommodate the
additional stations. The estimated costs is $597,228 in FY 2022-23 for the Office of Information
Technology to develop the database and update the monitoring system with ongoing costs of
$117,740 beginning in FY 2023-24. The CDPHE will require $15,000 in FY 2023-24 and ongoing for
software licensing and cloud storage to support the emissions inventory reports and air
monitoring data.
Public outreach and communications. The CDPHE will incur costs to conduct public outreach,
develop communications materials, and hold public meetings. These costs are estimated at $76,000
annually.
Travel. New staff, including permit modeling staff, will incur travel expenses to attend training
events. These costs are estimated at $18,790 annually.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in Table 3. Page 7
April 27, 2022 HB 22-1244
Other Budget Impacts
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve. Based on this fiscal note, the
bill is expected to increase the amount of General Fund held in reserve in FY 2022-23 and FY 2023-24
by the amounts shown in Table 1, which will decrease the amount of General Fund available for other
purposes.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
In FY 2022-23, the bill requires a General Fund appropriation of $3,135,853 to the Department of Public
Health and Environment, and 17.1 FTE. From the appropriation above, the following
reappropriations are required:
$73,928 to the Department of Law, with an additional 0.4 FTE for legal services; and
$597,228 to the Office of Information Technology for data system development.
Departmental Difference
The CDPHE estimates the need for an additional 10.4 FTE in FY 2023-24 and 19.7 FTE in FY 2024-25
and ongoing above the included staffing levels in the fiscal note to implement the inventory reporting
provisions of the bill. This would result in total costs of $5.1 million in FY 2023-24 and $8.5 million in
FY 2024-25. The department estimate is based on an assumption that it will require, on average, 12
hours to review and enforce the 2,600 annual emissions inventory reports that will be submitted under
the bill. Because the bill only requires CDPHE to make annual emissions inventory reports public,
and does not require review nor authorize enforcement action, this fiscal note assumes that the FTE
included in this fiscal note are sufficient to accept, process, and post annual emissions inventory
reports. If staff determine, through the gap analysis, that additional information and review is
required through the annual emissions inventory reports, this fiscal note assumes that the CDPHE
will request these resources through the annual budget process.
State and Local Government Contacts
Information Technology Law Public Health and Environment
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.