Page 1
February 20, 2023 HB 23-1210
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0784
Rep. Dickson
Sen. Hansen
Date:
Bill Status:
Fiscal Analyst:
February 20, 2023
House Energy and Environment
Matt Bishop | 303-866-4796
matt.bishop@coleg.gov
Bill Topic: CARBON MANAGEMENT
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill directs the Colorado Energy Office to contract with an organization to develop
a carbon management roadmap. It increases state expenditures from FY 2023-24 to
FY 2026-27.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $135,533 to the Colorado Energy
Office.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 23-1210
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue - -
Expenditures General Fund $135,533 $139,159
Centrally Appropriated $7,110 $9,112
Total Expenditures $142,643 $148,271
Total FTE 0.4 FTE 0.5 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $20,330 $20,874
Page 2
February 20, 2023 HB 23-1210
Summary of Legislation
The bill directs the Colorado Energy Office to contract with a qualified organization to develop a
carbon management roadmap. Carbon management is any combination of capturing carbon dioxide
emissions before they reach the atmosphere or removing carbon dioxide from the atmosphere for use
or storage. The bill specifies guidelines for the roadmap, including sectors to study and stakeholders
to consult.
The CEO must enter into a contract for developing the roadmap by January 1, 2024, and this
organization must create the roadmap and submit it to CEO for feedback by September 1, 2024. After
receiving public feedback, the contractor must finalize the roadmap by February 28, 2025, and CEO
must present it to the legislature during the 2025 legislative session. During the subsequent two years,
CEO must update the legislature on any progress made in achieving the roadmap’s goals and any
recommendations to improve its implementation.
In addition, the bill expands the eligibility criteria of CEO’s Industrial and Manufacturing Operations
Clean Air Grants Program to include some types of carbon management projects.
State Expenditures
The bill increases state expenditures in CEO by $142,643 in FY 2023-24 and $148,271 in FY 2024-25,
paid from the General Fund. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 23-1210
FY 2023-24 FY 2024-25
Colorado Energy Office
Personal Services $28,863 $38,484
Operating Expenses - $675
Capital Outlay Costs $6,670 -
Roadmap Contract $100,000 $100,000
Centrally Appropriated Costs
1
$7,110 $9,112
Total Cost $142,643 $148,271
Total FTE 0.4 FTE 0.5 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Colorado Energy Office. Administering the contract with the qualified organization and fulfilling
the bill’s reporting requirements requires 0.5 FTE in FY 2023-24 and FY 2024-25. Standard operating
and capital outlay costs are included, and account for the General Fund pay date shift and the bill’s
effective date. The cost of the contract is estimated at $200,000, with costs occurring over two fiscal
years. Page 3
February 20, 2023 HB 23-1210
Other state agencies. The bill requires the contractor to consult stakeholders when creating the
roadmap, some of which are state entities. Workload will minimally increase in these agencies in
FY 2024-25, and no change in appropriations is required.
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. Based on this fiscal note, the
bill is expected to increase the amount of General Fund held in reserve by the amounts shown in
Table 1, decreasing the amount of General Fund available for other purposes.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed.
State Appropriations
For FY 2023-24, the bill requires an appropriation of $135,533 from the General Fund to the Colorado
Energy Office, and 0.4 FTE.
State and Local Government Contacts
Agriculture Colorado Energy Office Economic Development
Labor Legislative Council Staff Natural Resources
Personnel Public Health and Environment 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.