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April 4, 2022 SB 22-193
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0383
Sen. Fenberg; Gonzales
Rep. Valdez A.
Date:
Bill Status:
Fiscal
Analyst:
April 4, 2022
Senate Trans. & Energy
Christina Van Winkle | 303-866-6289
Christina.VanWinkle@state.co.us
Bill Topic: AIR QUALITY IMPROVEMENT INVESTMENTS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates several grant programs in the Colorado Energy Office and the
Department of Public Health and Environment with the purpose of reducing air
pollution. It also modifies certain definitions, form and filing requirements, hearing
deadlines, and the legislative review process for revisions to the state implementation
plan in the department’s air quality control program. It will create several one-time
transfers from the General Fund in the current FY 2021-22, and will increase state
expenditures starting in FY 2022-23.
Appropriation
Summary:
For FY 2022-23, the bill includes appropriations of $124.8 million to multiple state
agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill. Due to time constraints, this fiscal note is
preliminary. It will be updated to provide additional detail on program spending for a
future committee.
Table 1
State Fiscal Impacts Under SB 22-193
Current Year
FY 2021-22
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue Cash Funds - -
Expenditures General Fund - $7.8 million -
Cash Funds - $117 million -
Total Expenditures - $124.8 million -
Transfers General Fund ($117 million) - -
Cash Funds $117 million - -
Net Transfers $0 - -
Other Budget Impacts General Fund Reserve - $1.2 million - Page 2
April 4, 2022 SB 22-193
Summary of Legislation
The bill creates a number of grant programs to fund voluntary efforts to reduce air pollution. It also
modifies certain definitions, form and filing requirements, hearing deadlines, and the legislative
review process for revisions to the State Implementation Plan in the Department of Public Health and
Environment’s (CDPHE) air quality control program. These programs and provisions are detailed
below.
Industrial and Manufacturing Operations Clean Air Grant Program. The bill creates the Industrial
and Manufacturing Operations Clean Air Grant Program in the Colorado Energy Office (CEO) to help
private entities, local governments, and public-private partnerships finance voluntary projects to
reduce emissions of air pollutants from industrial and manufacturing operations. The CEO will
establish an application process, determine the eligibility of projects, develop criteria for awarding
money, determine how recipients must demonstrate emissions reductions, determine reporting
requirements, and establish procedures for addressing noncompliance. By January 1 of each year
beginning in 2025, the CEO must provide a progress report to relevant legislative committees and post
the report on its website.
The bill creates the continuously appropriated Industrial and Manufacturing Operations Clean Air
Grant Program Cash Fund and transfers $25 million from the General Fund to the cash fund on
June 30, 2022. The CEO is authorized to use a portion of the money in the fund to cover the direct and
indirect costs of administering the grant program and for interagency money transfers for technical
support provided by the CDPHE and the Department of Natural Resources (DNR). The CEO may
seek, accept, and expend money from federal sources and from gifts, grants or donations. The
program repeals September 1, 2029.
Community Access Electric Bicycles. The bill creates the Community Access to Electric Bicycles
Grant Program in the CEO to finance bike share programs and ownership programs administered by
local governments or nonprofit organizations. Local governments or nonprofit organizations may use
awarded funds to purchase and maintain electric bicycles, equipment, and infrastructure for its bike
share program or ownership program, pay labor costs to implement the program, and cover the
administrative costs associated with implementing the program. The CEO will establish an
application process, develop award criteria and reporting requirements, and procedures for
addressing noncompliance.
The CEO must also establish a rebate program for individual purchases of electric bicycles. The CEO
will establish eligibility criteria as outlined in the bill and the mechanism for issuing a rebate. By
January 1 of each year beginning in 2025, the CEO must provide a progress report to relevant
legislative committees and post the report on its website.
The bill creates the Community Access to Electric Bicycles Cash Fund and transfers $12 million from
the General Fund to the cash fund on June 30, 2022. The bill includes an appropriation of $12 million
from the fund for FY 2022-23 and the CEO is authorized to use a portion of the money in the fund to
cover administrative costs. The office may seek, accept, or expend money from federal sources and
from gifts, grants or donations. The program repeals September 1, 2028.
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April 4, 2022 SB 22-193
Diesel Truck Emissions Reduction Grant Program. The bill creates the Diesel Truck Emissions
Reduction Grant Program in CDPHE to provide grants to private and public entities for
decommissioning and replacing diesel trucks. The CDPHE will establish policies and procedures for
the program, determine program eligibility and timeframes, evaluation criteria, and procedures for
addressing noncompliance. By December 1 of each year beginning in 2023, the CDPHE must provide
a progress report to relevant legislative committees and post the report on its website.
The bill creates the Diesel Truck Emissions Reduction Grant Program Cash Fund and transfers
$15 million from the General Fund to the cash fund on June 30, 2022. The bill includes an
appropriation of $15 million from the cash fund to the CDPHE for FY 2022-23 to implement the grant
program, and the CDPHE is authorized to use a portion of the money in the fund to cover
administrative costs. The CDPHE may seek, accept, or expend money from federal sources and from
gifts, grants, or donations. The program repeals July 1, 2032.
Electrifying School Buses Grant Program. The bill creates the Electrifying School Buses Grant
Program in the CDPHE to help school districts and charter schools finance the conversion and
replacement of fossil-fuel powered school buses with electric-powered school buses. The CEO will
provide technical assistance, and the CDPHE will administer the program, establish an application
process, and develop award criteria, reporting requirements, and procedures for addressing
noncompliance. By January 1 each odd-numbered year beginning in 2025, the CDPHE must provide
a progress report to relevant legislative committees and post the report on its website.
The bill creates the Electrifying School Buses Grant Program Cash Fund and transfers $65 million from
the General Fund to the cash fund on June 30, 2022. The bill includes an appropriation of $65 million
to the CDPHE for FY 2022-23, and the CDPHE is authorized to use a portion of the money in the fund
to cover administrative costs. The CDPHE may seek, accept, or expend money from federal sources
and from gifts, grants, or donations. The program repeals September 1, 2034.
Air Quality Control Program. The bill modifies certain definitions, form and filing requirements, and
hearing deadlines in the CDPHE’s air quality control program. It clarifies that statutory fee caps for
fees collected by the Air Quality Enterprise apply only to the annual stationary source emissions fees.
It also modifies the legislative review process for revisions to the State Implementation Plan.
Eco passes. The bill appropriates $750,000 from the General Fund to the Department of Personnel
and Administration (DPA) for the costs of issuing free annual RTD Eco Passes to state employees.
Aerial surveying. The bill appropriates $7 million from the General Fund to the CDPHE to finance
the aerial surveying of pollutants. Money appropriated is available to the CDPHE through
FY 2024-25.
State Revenue
To the extent that gifts, grants, or donations are received, state revenue will increase. No sources of
these funds are known at this time, so state revenue is not estimated. Gifts, grants, and donations are
not subject to the state’s TABOR revenue limit. Page 4
April 4, 2022 SB 22-193
State Transfers
The bill makes the following transfers from the General Fund on June 30, 2022, in the current
FY 2021-22:
$25 million to the Industrial and Manufacturing Operations Clean Air Grant Program Cash Fund;
$12 million to the Community Access to Electric Bicycles Cash Fund;
$15 million to the Diesel Truck Emissions Reduction Grant Program Cash Fund; and
$65 million to the Electrifying School Buses Grant Program Cash Fund.
State Expenditures
The bill increases state expenditures in multiple state agencies by $124.8 million, paid from multiple
cash funds and the General Fund, starting in FY 2022-23. Expenditures are shown in Table 2 below.
Table 2
Expenditures Under SB 22-193
Program State Agency
FY 2022-23
Amount Fund Source
Industrial and Manufacturing Operations
Clean Air Grant Program
CEO $25,000,000 Cash Fund
Community Access Electric Bicycles
Grant and Rebate Programs
CEO $12,000,000 Cash Fund
Diesel Truck Emissions Reduction Grant
Program
CDPHE $15,000,000 Cash Fund
Electrifying School Buses Grant Program CDPHE $65,000,000 Cash Fund
Aerial Surveying of Pollutants CDPHE $7,000,000 General Fund
Eco-Passes DPA $750,000 General Fund
Total $124,750,000
These state agencies will have administrative costs associated with implementing these programs.
Due to time, constraints, these costs have not been estimated and will be provided in a future revision
to the fiscal note.
The bill includes several cash fund appropriations for FY 2022-23 for the grant programs created by
the bill. For informational purposes, these appropriations are shown as FY 2022-23 expenditures;
however, agencies will likely spend the transferred funds over several years given that the programs
are all repealed further into the future. A revised fiscal note will provide additional detail on the
expected timing of expenditures, if this information becomes available. To the extent that money is
not spent all in FY 2022-23, the included appropriations should include roll forward authority to future
years, or annual cash fund appropriations in future years should be provided in future years to allow
agencies to spend available funds.
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April 4, 2022 SB 22-193
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 as shown
in Table 1, which will decrease the amount of General Fund available for other purposes
Local Government
Local governments and school districts that apply for grants will have workload impacts, and those
that receive grant funding will have increased revenue and expenditures.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
The bill includes the following appropriations:
$25 million from the Industrial and Manufacturing Operations Clean Air Grant Program Cash
Fund to the CEO;
$12 million from the Community Access to Electric Bicycles Cash Fund to CEO;
$15 million from the Diesel Truck Emissions Reduction Grant Program Cash Fund to the CDPHE;
$65 million from the Electrifying School Buses Grant Program Cash Fund to the CDPHE;
$750,000 from the General Fund to the DPA for purchasing Eco Passes; and
$7 million from the General Fund to CDPHE for aerial surveying.
Technical Note
The bill includes an appropriation of $25 million from the Industrial and Manufacturing Operations
Clean Air Grant Program Cash Fund to CEO for FY 2022-23. However, this fund is continuously
appropriated to the CEO under the bill, so an annual appropriation is not required.
State and Local Government Contacts
Colorado Energy Office Counties Information Technology
Local Affairs Municipalities Public Health and Environment
Personnel School Districts
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.