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July 28, 2023 HB 23-1161
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0016
Rep. Kipp; Willford
Sen. Cutter; Winter F.
Date:
Bill Status:
Fiscal Analyst:
July 28, 2023
Signed into Law
Kristine McLaughlin | 303-866-4776
kristine.mclaughlin@coleg.gov
Bill Topic: ENVIRONMENTAL STANDARDS FOR APPLIANCES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill sets environmental standards on certain appliances and requires the Colorado
Department of Public Health and Environment to verify compliance. The bill increases
state expenditures and may increase state revenue on an ongoing basis starting in
FY 2023-24.
Appropriation
Summary:
For FY 2023-24, the bill requires and includes an appropriation of $49,730 to the
Colorado Department of Public Health and Environment.
Fiscal Note
Status:
This fiscal note reflects the enacted bill.
Table 1
State Fiscal Impacts Under HB 23-1161
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue - -
Expenditures General Fund $49,730 $23,291
Centrally Appropriated $1,648 $5,487
Total Expenditures $51,378 $28,778
Total FTE 0.3 FTE 0.3 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $7,460 $3,494
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July 28, 2023 HB 23-1161
Summary of Legislation
The bill expands the list of appliances subject to statutory Water and Energy Efficiency Standards. It
requires the Colorado Department of Public Health and Environment (CDPHE) to update the list in
accordance with the standards that exist in at least three other states or are published by the Energy
Star Program or the WaterSense Program and promulgate other rules as necessary every five years
beginning January 1, 2026. CDPHE must allow a one-year compliance grace period.
The bill phases in prohibitions on the manufacture, distribution, or sale of certain fluorescent lights
and heating appliances. Manufacturers of heating appliances are subject to disclosure and testing
requirements. The Air Quality Control Commission in CDPHE is required to lower the emission
limits for new water heaters, boilers, and certain furnaces by 2029.
The bill requires CDPHE to verify compliance, report findings to the General Assembly, and deliver
any violation findings to the Attorney General.
State Revenue
Civil penalties. The bill imposes a civil penalty of not more than $2,000 for each transaction or online
for-sale product listing to any person who sells or offers to sell any new consumer product that is
subject to the efficiency standards. The bill requires CDPHE to inspect products for compliance and
submit findings to the Attorney General, which may result in an increase in caseload and revenue
from penalties. This revenue is classified as a damage award and not subject to TABOR. Given the
uncertainty about the number of cases that may be pursued by the Attorney General and district
attorneys, as well as the wide range in potential penalty amounts, the fiscal note cannot estimate the
potential impact of these civil penalties.
State Expenditures
The bill increases state expenditures in Colorado Department of Public Health and Environment by
approximately $51,000 in FY 2023-24 and $29,000 in FY 2024-25, paid from the General Fund.
Additionally, the bill increases workload in the Department of Law. Expenditures are shown in
Table 2 and detailed below.
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July 28, 2023 HB 23-1161
Table 2
Expenditures Under HB 23-1161
FY 2023-24 FY 2024-25
Department of Public Health and Environment
Personal Services $5,848 $23,291
Legal Services $43,882 -
Centrally Appropriated Costs
1
$1,648 $5,487
FTE – Personal Services 0.1 FTE 0.3 FTE
FTE – Legal Services 0.2 FTE -
Total Cost $51,378 $28,778
Total FTE 0.3 FTE 0.3 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Colorado Department of Public Health and Environment. CDPHE will have staffing and legal costs
to implement the bill.
Staffing. CDPHE requires 0.1 FTE in FY 2023-24 and 0.3 FTE in FY 2024-25 to conduct regular
research around environmental standards and promulgate rules as result of the findings.
First-year costs are prorated to account for the General Fund pay date shift and the bill’s effective
date.
Legal services. CDPHE will require 415 hours (0.2 FTE) in FY 2023-24 only of legal services to
support rulemaking. Legal services are provided by the Department of Law at a rate of $105.74
per hour.
Rulemaking. The fiscal note assumes that CDPHE is not required to go through its usual
stakeholder engagement process but can instead rely on research of work done in other states and
at the federal level.
Department of Law. The bill minimally increases workload to the extent that violations are
discovered through the verification process. The department will review violations under the bill and
prioritize investigations as necessary within available resources.
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.
Effective Date
The bill was signed into law by the Governor on June 1, 2023, and takes effect August 7, 2023, assuming
no referendum petition is filed. Page 4
July 28, 2023 HB 23-1161
State Appropriations
For FY 2023-24, the bill requires and includes a General Fund appropriation of $49,730 to the Colorado
Department of Public Health and Environment and 0.1 FTE. Of this amount, $43,882 is reappropriated
to the Department of Law with 0.2 FTE.
Departmental Difference
CDPHE estimates the bill requires an additional $23,000 in FY 2023-24 only, paid from the General
Fund, assuming that the rulemaking requirements in the bill will trigger a formal rulemaking process.
As discussed in the State Expenditures section, the fiscal note uses different assumptions about
rulemaking.
State and Local Government Contacts
Law Public Health and Environment Regulatory Agencies
Secretary of State Information Technology
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.