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April 21, 2022 SB 22-180
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated March 28, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-0910
Sen. Winter; Hinrichsen
Rep. Gray; Bacon
Date:
Bill Status:
Fiscal Analyst:
April 21, 2022
House Energy & Environment
Will Clark | 303-866-4720
Will.Clark@state.co.us
Bill Topic: PROGRAMS TO REDUCE OZONE THROUGH INCREASED TRANSIT
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☒ Local Government
☒ Statutory Public Entity
The bill creates a grant program in the Colorado Energy Office to provide funding to
transit associations to provide free transit services during ozone season. It also
creates a transit services pilot project in the Department of Transportation. The bill
creates one-time transfers from the General Fund in FY 2021-22, and increases state
expenditures through FY 2025-26 and local expenditures through FY 2023-24.
Appropriation
Summary:
No appropriation is required as the State Highway Fund is continuously appropriated
to the Department of Transportation and the Ozone Season Transit Grant Program
Fund is continuously appropriated to the Colorado Energy Office.
Fiscal Note
Status:
The fiscal note reflects the reengrossed bill. It has been updated to reflect new
information.
Table 1
State Fiscal Impacts Under SB 22-180
Current Year
FY 2021-22
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - - -
Expenditures
1
Cash Funds - $21,500,000 $21,500,000
Centrally Appropriated - $5,484 $5,484
Total Expenditures - $21,505,484 $21,505,484
Total FTE 0.3 FTE 0.3 FTE
Transfers General Fund ($58,000,000) - -
Cash Funds $58,000,000 - -
Net Transfer $0 - -
Other Budget Impacts - - -
1
Funding transferred in FY 2021-22 will be spent over a period of four years starting in FY 2022-23, with $14 million
per year spent on the Ozone Season Transit Grant program through FY 2023-24, and $7.5 per year spent on the
new transit services pilot project through FY 2025-26. See State Expenditures section for more detail. Page 2
April 21, 2022 SB 22-180
Summary of Legislation
The bill creates the Ozone Season Transit Grant Program in the Colorado Energy Office (CEO), funded
at $28.0 million, and a transit services pilot project in the Department of Transportation (CDOT),
funded at $30.0 million.
Ozone Season Transit Grant Program. The Ozone Season Transit Grant Program is created in the
CEO to provide grants for free transit services during ozone season, defined in the bill as the period
from June 1 through August 31 of each year. The Ozone Season Transit Grant Program Fund is created
to fund the program, and continuously appropriated to the CEO. The CEO may provide grants of up
to $3.0 million to transit associations and $11.0 million to the Regional Transportation District (RTD)
each year.
Grant funding may be used by transit associations for direct and indirect costs of establishing their
own grant programs to provide funding to transit agencies. Transit agencies must use grant funding
to provide new or expanded free transit services during ozone season. Grant funding to the RTD may
be used to replace fare box revenue, pay for other program expenses, and to cover up to 80 percent of
costs of providing at least 30 days of free transit on all RTD services. The State Auditor is required to
audit the RTD’s use of program funds during the next RTD performance audit.
Transit associations and the RTD must submit a report to the CEO by December 1 of each year that
they receive grant funding, with information about expanded transit services provided as a result of
the grant funding. The CEO must submit a report with information about the program ’s
implementation to the General Assembly by December 31 of each year of the program, and the
program is repealed on July 1, 2024.
Transit services pilot program. The bill creates a pilot project in the Transit and Rail Division of
CDOT to increase ridership on state-run transit, reduce vehicle travel, and reduce ground level ozone.
CDOT must report results from the pilot project to the General Assembly on December 1, 2023, and
by December 1 of each year thereafter through 2025, including information about the services that are
provided and estimates of increased public transit ridership as a result of the pilot project.
State Transfers
In FY 2021-22, the bill makes one-time transfers of $58.0 million from the General Fund, split between
two state cash funds, as shown in Table 2 and discussed below.
Table 2
Transfers Under SB 22-180
Fund
FY 2021-22
current year
General Fund ($58,000,000)
Ozone Season Transit Grant Program Fund $28,000,000
State Highway Fund $30,000,000
Net Transfer $0 Page 3
April 21, 2022 SB 22-180
Three days after the effective date of the bill, $28.0 million is transferred to the Ozone Season Transit
Grant Program Fund for use by the CEO, and $30.0 million is transferred to the State Highway Fund
for use by the Division of Transit and Rail in CDOT. It is assumed that this transfer will occur during
the current FY 2021-22.
State Expenditures
The bill increases state cash fund expenditures to the CEO and CDOT by $58.0 million over a four-year
period starting in FY 2022-23, as shown in Table 3 and described below.
Table 3
Expenditures Under SB 22-180
Cost Components FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Colorado Energy Office
Ozone Season Transit Grants $13,972,382 $13,972,382 - -
Grant Administration $27,618 $27,618 - -
Centrally Appropriated Costs
1
$5,484 $5,484 - -
FTE – Personal Services 0.3 FTE 0.3 FTE - -
CEO Subtotal $14,005,484 $14,005,484 - -
Department of Transportation
Pilot Project Services $7,125,000 $7,125,000 $7,125,000 $7,125,000
Grant Administration $375,000 $375,000 $375,000 $375,000
CDOT Subtotal $7,500,000 $7,500,000 $7,500,000 $7,500,000
Total Cost $21,505,484 $21,505,484 $7,500,000 $7,500,000
Total FTE 0.3 FTE 0.3 FTE - -
1
Centrally appropriated costs are not included in the bill's appropriation.
Colorado Energy Office. The CEO will use up to $28.0 million to provide transit grants, including up
to $3.0 million to transit associations and up to $11.0 million to the RTD, paid from the newly created
Ozone Season Transit Grant Program Fund, in FY 2022-23 and FY 2023-24. The CEO requires 0.3 FTE
to administer the program. Staff duties include helping to create the grant program, specifying
parameters for applicants, coordinating and communicating with transit agencies, allocating funds,
ensuring compliance, negotiating grant contracts, processing grant payments and ensuring final
reporting requirements are met. The fiscal note assumes a start date of July 1, and that money from
the Ozone Season Transit Grant Program Fund will be used to pay for administrative costs.
Department of Transportation. The Division of Transit and Rail in CDOT will use up to $30.0 million
to establish a pilot project to expand transit, paid from the State Highway Fund, through FY 2025-26.
The fiscal note assumes 5 percent of pilot project funding will be used for program administration.
Pilot project service costs will include finalizing the pilot project service plan, procuring fleet vehicles,
and providing enhanced service and additional trips on I-70 and I-25 transit routes.
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April 21, 2022 SB 22-180
Grant Program Appropriations. Funds in the Ozone Season Transit Grant Program Fund and the
State Highway Fund are continuously appropriated to the Colorado Energy Office and CDOT,
respectively, and thus no additional appropriation is required.
Local Government and Statutory Public Entity
For FY 2022-23 through FY 2023-24, revenue will increase for the RTD and local transit associations
and agencies to provide free transit services during ozone season. Workload will increase for these
agencies to identify required match funding and, if the bill generates an increase in passengers, to
ensure adequate transit staffing and equipment.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State and Local Government Contacts
Colorado Energy Office Regional Transportation District
State Auditor Transportation
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.