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May 5, 2022 SB 22-193
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 20, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-0383
Sen. Fenberg; Gonzales
Rep. Valdez A.; Froelich
Date:
Bill Status:
Fiscal
Analyst:
May 5, 2022
House Second Reading
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 and
local government expenditures starting in FY 2022-23.
Appropriation
Summary:
For FY 2022-23, the bill requires appropriations totaling of $6.3 million to multiple state
agencies. See appropriations section.
Fiscal Note
Status:
The revised fiscal note reflects the reengrossed bill, as amended in the House Energy
and Environment Committee and the House Appropriations 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 - -
Expenditures General Fund - $6.3 million -
Cash Funds
1
- $103.5 million -
Total Expenditures - $109.8 million -
Total FTE - 9.9 FTE 10.4 FTE
Transfers General Fund ($102 million) ($1.5 million) -
Cash Funds $102 million $1.5 million -
Net Transfer $0 $0 -
Other Budget Impacts General Fund Reserve - $1.2 million -
1
Transferred funds will be spent over multiple years from the various program cash funds, using continuous
spending authority. See Table 2 for more detail on program expenditures. Page 2
May 5, 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, tribal 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, tribal 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 individuals, businesses, and nonprofit
organizations to purchase 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 continuously appropriated Community Access to Electric Bicycles Cash Fund and
transfers $12 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 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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May 5, 2022 SB 22-193
Cannabis Resource Optimization Cash Fund. The bill creates the Cannabis Resource Optimization
Cash Fund administered by the CEO to provide assessments financing, grants, credit enhancement
offerings, and direct incentives to producers to reduce energy and water use promote renewable
energy, and encourage sustainable practices in cannabis operations. The fund is continuously
appropriated to the CEO, who may also seek, accept, and expend gifts, grants and donations. On
July 1, 2022, the bill transfers $1.5 million from the General Fund to the fund. Correspondingly, it
decreases a direct General Fund appropriation for the program in the Long Bill for FY 2022-23.
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, and appropriates the funds to CDPHE in
FY 2022-23. 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 $7.0 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
May 5, 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; and
$65 million to the Electrifying School Buses Grant Program Cash Fund.
The bill also makes a $1.5 million transfer from the General Fund to the Cannabis Resource
Optimization Cash Fund on July 1, 2022, in FY 2022-23.
State Expenditures
The bill increases state expenditures in multiple state agencies by $34.2 million and 9.9 FTE in
FY 2022-23 and $33.3 million and 10.4 FTE in FY 2023-24, paid from multiple cash funds and the
General Fund. These estimates assume that funding transferred for the programs created by the bill
will be spent over multiple years. Expenditures are shown in Table 2 below.
Table 2
Expenditures Under SB 22-193
FY 2022-23 FY 2023-24
CEO Industry and Manufacturing Grant Program
1
Personal Services $121,030 $121,030
Operating Expenses $2,160 $2,160
Capital Outlay Costs $12,400 -
Grant Management Software License $5,000 $5,000
Industrial Technical Expert Contractor $300,000 $300,000
Grant Awards $5,791,823 $5,791,823
Centrally Appropriated Costs
2
$26,887 $26,887
FTE – Personal Services 1.6 FTE 1.6 FTE
CEO Subtotal $6,259,300 $6,246,900
CEO Electric Bicycle Grant Program
1
Personal Services $93,413 $93,413
Operating Expenses $1,755 $1,755
Capital Outlay Costs $6,200 -
Grant Management Software License $5,000 $5,000
Industrial Technical Expert Contractor $135,000 $135,000
Grant Awards $2,741,880 $2,741,880
Centrally Appropriated Costs
2
$21,402 $21,402
FTE – Personal Services 1.3 FTE 1.3 FTE
CEO Subtotal $3,004,650 $2,998,450
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May 5, 2022 SB 22-193
Table 2
Expenditures Under SB 22-193 (Cont.)
FY 2022-23 FY 2023-24
CEO Cannabis Resource Optimization Program
Grant Awards (Cash Funds) $1,500,000 -
Grant Awards (General Fund) ($1,500,000) -
CEO Subtotal $0 -
CDPHE School Bus Grant Program
1
Personal Services $328,670 $328,670
Operating Expenses $6,750 $6,750
Capital Outlay Costs $31,000 -
Software Licensing and Storage $7,500 $7,500
Grant Awards $21,166,404 $21,166,404
Centrally Appropriated Costs
2
$156,219 $149,864
FTE – Personal Services 5.0 FTE 5.0 FTE
CDPHE Subtotal $21,696,543 $21,659,188
Department of Education
Personal Services $37,490 $37,490
Operating Expenses $675 $675
Capital Outlay Costs $6,200 -
Centrally Appropriated Costs
2
$8,372 $8,372
FTE – Personal Service 0.5 FTE 0.5 FTE
CDE Subtotal $52,737 $46,537
CDPHE Aerial Surveying
Personal Services $124,181 $167,879
Operating Expenses $2,025 $2,700
Capital Outlay Costs $12,400 -
Computer Programming $90,725 $18,045
Contracts $2,137,155 $2,137,155
Centrally Appropriated Costs
1
$26,170 $35,101
FTE – Personal Services 1.5 FTE 2.0 FTE
CDPHE Subtotal $2,392,656 $2,360,880
Department of Personnel and Administration
Eco Passes $750,000 -
DPA Subtotal $750,000 -
Total $34,155,886 $33,311,955
Total FTE 9.9 FTE 10.4 FTE
1
Money for these grant programs is transferred in FY 2022-23 to continuously appropriated cash funds. This fiscal
note reflects expenditures in the years they are anticipated to occur.
2 Centrally appropriated costs are not included in the bill’s appropriation.
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May 5, 2022 SB 22-193
Colorado Energy Office. The CEO will incur administrative expenses to implement the three new
grant programs. In addition to 2.9 FTE to provide program management, accounting, and
procurement services, the CEO will contract with third-party contractors to administer the grant
programs and provide technical support services to facilities. In addition, the CEO will incur annual
costs for grant management software licenses. This fiscal note assumes grant funds will be spent over
four fiscal years.
In addition, the bill shifts funding for the Cannabis Resource Optimization Program from a direct
General Fund appropriation in the FY 2022-23 Long Bill to a continuously appropriated cash fund.
Funding for the program will remain at $1.5 million. Because the new cash fund receives a transfer
from the General Fund, the net General Fund impact of the program is unchanged in FY 2022-23.
Department of Public Health and Environment. The CDPHE will hire 5.0 FTE to administer the
grant program and will incur costs for software licensing and computer programming. After
accounting for these administrative costs, around $21.2 million will be awarded annually for the
school bus grant program over three fiscal years.
The CDPHE will also hire 1.5 FTE in FY 2022-23, increasing to 2.0 FTE in FY 2023-24 to administer the
aerial surveying program. The CDPHE will also incur computer programming costs, provided by the
Office of Information Technology through a reappropriation of funds. After accounting for these
administrative costs, around $2.1 million annually between FY 2022-23 and FY 2024-25 will be
available to contract for aerial survey services.
Department of Education. The Department of Education will require 0.5 FTE for a senior consultant
to provide technical assistance to school districts and charter schools in applying for electric school
bus grant funds.
Department of Personnel and Administration. The department will purchase and distribute RTD
Eco-passes to state employees.
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 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. Page 7
May 5, 2022 SB 22-193
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
For FY 2022-23, the bill requires and includes the following appropriations:
$750,000 from the General Fund to the DPA for purchasing Eco Passes; and
$7.0 million from the General Fund to CDPHE for aerial surveying, of which $90,725 is
reappropriated to the Office of Information Technology; and
$44,365 to the Department of Education, and 0.5 FTE.
Funds in the grant program cash funds are continuously appropriated to the CEO and the CDPHE
and do not require additional appropriation in this bill.
The bill also decreases the FY 2022-23 General Fund appropriation to the Colorado Energy Office in
the Long Bill for the cannabis resource optimization program by $1,500,000.
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.