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May 3, 2022 HB 22-1345
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 22, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-0351
Rep. Cutter; Bradfield
Sen. Gonzales; Lee
Date:
Bill Status:
Fiscal
Analyst:
May 3, 2022
Senate Finance
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 prohibits the sale or distribution of certain consumer products in the state that
contain intentionally-added PFAS chemicals and restricts the use of Class B
firefighting foam containing intentionally-added PFAS. Beginning in FY 2023-24 it
increases state and local government expenditures.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The revised fiscal note reflects the reengrossed bill.
Table 1
State Fiscal Impacts Under HB 22-1345
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures General Fund - $77,040
Centrally Appropriated - $33,043
Total Expenditures - $110,083
Total FTE - 0.9 FTE
Transfers - -
Other Budget Impacts General Fund Reserve - $11,556
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May 3, 2022 HB 22-1345
Summary of Legislation
Consumer products with intentionally added PFAS chemicals. The bill prohibits the sale or
distribution of certain consumer product categories that contain intentionally added PFAS chemicals
beginning January 1, 2024. Product categories include carpets or rugs, cosmetics, fabric treatments,
food packaging, juvenile products, oil and gas products, textile furnishings, and upholstered
furniture. Beginning January 1, 2024, the bill also requires manufacturers of cookware sold in the state
containing intentionally added PFAS in the handle or in any surface that comes into contact with food
or beverages to list the presence of PFAS chemicals on the product label in both English and Spanish.
It also modifies the state procurement code and restrictions on the use of class B firefighting foam.
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, in consultation with the Department of Public Safety, 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 must 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.
State procurement code. The bill also modifies the state procurement code to include products that
do not contain intentionally added PFAS chemicals in the definition of environmentally preferable
products.
Background
PFAS chemicals. 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 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
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. Page 3
May 3, 2022 HB 22-1345
State Expenditures
The bill increases state expenditures in the CDPHE by $110,083 and 1.0 FTE in FY 2023-24 and ongoing
from the General Fund. These costs are detailed in Table 2 and described below.
Table 2
Expenditures Under HB 22-1345
FY 2022-23 FY 2023-24
Department of Public Health and Environment
Personal Services - $69,490
Operating Expenses - $1,350
Capital Outlay Costs - $6,200
Centrally Appropriated Costs
1
- $33,043
Total Cost - $110,083
Total FTE - 0.9 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Public Health and Environment. Beginning in FY 2023-24, the CDPHE will hire
1.0 FTE environmental protection specialist to track and monitor exemptions from the class B
firefighting foam restrictions and ensure facilities adhere to the safe storage and notification of releases
as required in the bill. Based on an existing registry, there are approximately 160 facilities registered
as storing Class B firefighting foam containing intentionally-added PFAS. These personal services
costs are prorated for the General Fund paydate shift. The Department of Public Safety will incur
workload impacts to consult with CDPHE on temporary exemptions.
Department of Law. The department may have an increase in workload to investigate violations. The
fiscal note assumes that the department will assess cases based on priorities and conduct
investigations within existing appropriations.
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 2.
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.
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May 3, 2022 HB 22-1345
Local Government
Airports that are operated by local governments and not currently exempted from the restrictions of
class B firefighting foam containing PFAS chemicals may incur workload impacts to request an
exemption from these restrictions. 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.
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.