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April 13, 2022 HB 22-1345
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0351
Rep. Cutter; Bradfield
Date:
Bill Status:
Fiscal
Analyst:
April 13, 2022
House Energy & Environment
Christina Van Winkle | 303-866-6289
Christina.VanWinkle@state.co.us
Bill Topic: PERFLUOROALKYL AND POLYFLUOROALKYL CHEMICALS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill creates a regulatory program for perfluoroalkyl and polyfluoroalkyl (PFAS)
chemicals to collect information from manufacturers regarding the use of PFAS
chemicals in products, and phases out the sale or distribution of certain products in
the state that contain intentionally-added PFAS chemicals. Beginning in FY 2022-23
it increases state and local government expenditures, and increases state revenue
beginning in FY 2024-25.
Appropriation
Summary:
For FY 2022-23, the bill requires an appropriation of $215,959 to the Department of
Public Health and Environment.
Fiscal Note
Status:
The fiscal note is preliminary and reflects the introduced bill. Due to time constraints,
this analysis is preliminary and will be updated following further review and any
additional information received.
Table 1
State Fiscal Impacts Under HB 22-1345
Budget Year
FY 2022-23
Out Year
FY 2023-24
Out Year
FY 2024-25
Revenue Cash Funds - - $176,656
Total Revenue - - $176,656
Expenditures General Fund $215,959 $217,159
Cash Fund - - $121,162
Centrally Appropriated $75,729 $79,198 $55,494
Total Expenditures $291,688 $296,357 $176,656
Total FTE 2.1 FTE 2.3 FTE 2.0 FTE
Transfers - - -
Other Budget Impacts General Fund Reserve $32,394 $32,574 -
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April 13, 2022 HB 22-1345
Summary of Legislation
The bill creates a new regulatory program in the Department of Public Health and Environment
(CDPHE) to collect information on and phase out the sale of products containing intentionally added
perfluoroalkyl and polyfluoroalkyl (PFAS) chemicals. It also modifies the state procurement code and
restrictions on the use of class B firefighting foam.
Notification. Beginning January 1, 2025, manufacturers that sell or distribute products that contain
intentionally added PFAS chemicals are required to submit a written notification by deadlines
established in the bill to the CDPHE. Notifications must contain the trade name of the product, a
description of the purpose that PFAS chemicals in the product serves, the contact information of the
manufacturer, and any other information as required by rule. Manufacturers must pay a fee in an
amount established by CDPHE to cover administration and implementation costs, which will be
credited to the Perfluoroalkyl and Polyfluoroalkyl Substances Cash Fund (PFAS Cash Fund). The
CDPHE must publish the trade name of the product and the name of the manufacturer of the product
on the department’s website.
Prohibition. On and after January 1, 2024, the bill prohibits the sale and distribution of products that
contain intentionally added PFAS chemicals in certain product categories including carpets,
cookware, cosmetics, fabric treatments, food packaging, juvenile products, oil and gas products,
textile furnishings, and upholstered furniture. The CDPHE is required to adopt rules that identify
specific products within these product categories. The CDPHE must adopt rules in out years that
identify and prohibit additional priority products in product categories not already identified in rule.
Products must be identified based on whether they contain intentionally added PFAS, the use of PFAS
is currently unavoidable, the product’s risk of exposing sensitive populations, species, and indoor and
outdoor environments to PFAS chemicals, the volume of PFAS chemicals used, and restrictions in
other states and nations. Additional products and product categories identified in rule must be posted
on the CDPHE’s website.
State procurement and firefighting foam. The bill also modifies the definition of environmentally
preferable products in the state’s procurement code to include products that do not contain
intentionally added PFAS. It also repeals an exemption from the restriction on the sale of class B
firefighting foam for use at gasoline, special fuel, or jet fuel storage and distribution facilities effective
January 1, 2024, and authorizes the CDPHE to grant a temporary exemption of no more than five years
for the purchase of class B firefighting foam at terminals. Beginning January 1, 2024, persons using
class B firefighting foam containing intentionally added PFAS may not allow a release of the class B
firefighting foam, must fully contain the foam through appropriate containment measures, and safely
store all class B firefighting foam and any associated waste and wastewater. If a release of class B
firefighting foam does occur, information must be reported within 24 hours to the water quality spills
hotline maintained by CDPHE. The Attorney General is authorized to enforce this provision, conduct
civil investigations, and bring civil actions for violations.
Background
PFAS chemicals means a class of fluorinated organic chemicals containing at least one fully fluorinated
carbon atom. PFAS chemicals are synthetic chemicals that were developed to coat products to make
them heat, water, and oil resistant. They have become prevalent in a variety of products including Page 3
April 13, 2022 HB 22-1345
nonstick cookware, water-repellant clothing, stain-resistant fabrics, and firefighting foams. According
to the U.S. Environmental Protection Agency, there are over 4,000 different types of PFAS that have
been manufactured in the last 70 years.
State Revenue
Beginning in FY 2024-25, state revenue will increase from manufacturer fee revenue paid to the
CDPHE in an amount sufficient to cover the costs of administering and implementing the program.
Fees will be determined in rule once additional information on the number of manufacturers subject
to the requirements is known. This revenue is subject to TABOR. Fee estimates are provided in
Table 2 below.
Table 2
Fee Impact on Manufacturers of Intentionally-Added PFAS Products
Fee Fund FY 2022-23 FY 2023-24 FY 2024-25
Written Notification PFAS Cash Fund - - $176,656
Total - - $176,656
To the extent that CDPHE imposes civil penalties for violations of the class B firefighting foam
requirements, state revenue will increase. This revenue is subject to TABOR. This fiscal note assumes
that certified professionals who use Class B firefighting foam that contains intentionally-added PFAS
will comply with these requirements.
State Expenditures
The bill increases state expenditures in the CDPHE by around $300,000 annually. Expenditures will
be from the General Fund in FY 2022-23 and FY 2023-24, and from the PFAS Cash Fund in FY 2024-25.
These costs are detailed in Table 3 and described below.
Table 3
Expenditures Under HB 22-1345
FY 2022-23 FY 2023-24 FY 2024-25
Department of Public Health and Environment
Personal Services $149,603 $163,203 $118,462
Operating Expenses $2,700 $2,700 $2,700
Capital Outlay Costs $12,400 $0 -
Legal Services $51,256 $51,256 -
Centrally Appropriated Costs
1
$75,729 $79,198 $55,494
FTE – Personal Services 1.8 FTE 2.0 FTE 2.0 FTE
FTE – Legal Services 0.3 FTE 0.3 FTE -
Total Cost $291,688 $296,357 $176,656
Total FTE 2.1 FTE 2.3 FTE 2.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
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April 13, 2022 HB 22-1345
Personal services. The CDPHE will hire 2.0 FTE to support rulemaking in FY 2022-23 and FY 2023-24.
Staff will identify specific products within the product categories identified in the bill that are
prohibited for sale or distribution in the state beginning January 1, 2024. Staff will also support draft
rule development and stakeholder engagement. In FY 2024-25, staff will create and maintain a website
to receive notification from manufacturers of intentionally-added PFAS products for publication, and
collect fees from manufacturers.
The bill requires the CDPHE to identify by rule no later than January 1, 2025, a list of priority products
not already prohibited in rule, and adopt rules by December 31, 2027, to prohibit the sale and
distribution of these additional products. This fiscal note assumes that staff resources needed to
develop this list of priority products will be identified in the first year of implementation and
requested through the annual budget process, and therefore are not estimated in this fiscal note.
Legal services. The CDPHE will require 520 hours of legal services in FY 2022-23 and FY 2023-24 from
the Department of Law to draft rule language at a rate of $98.57 per hour.
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.
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 beginning in FY 2022-23. Based
on this fiscal note, the bill is expected to increase the amount of General Fund held in reserve by the
amount listed in Table 1, which will decrease the amount of General Fund available for other
purposes.
Local Government
Airports that are operated by local governments may incur workload impacts to request an exemption
from the restriction of class B firefighting foam. Beginning in January 1, 2024, local governments that
use class B firefighting foam may incur expenditures to adhere to the storage and containment
requirements of the bill.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
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April 13, 2022 HB 22-1345
State Appropriations
For FY 2022-23, the bill requires a General Fund appropriation of $215,959 to the Department of Public
Health and Environment, and 1.8 FTE, of which $51,256 is reappropriated to the Department of Law
for legal services, and 0.3 FTE.
State and Local Government Contacts
Counties Fire Chiefs Information Technology
Judicial Law Municipalities
Natural Resources Personnel Public Health and Environment
Public Safety
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.