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April 29, 2023 HB 23-1294
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 25, 2023)
Drafting Number:
Prime Sponsors:
LLS 23-0131
Rep. Bacon; Willford
Sen. Winter F.; Gonzales
Date:
Bill Status:
Fiscal Analyst:
April 29, 2023
House Second Reading
Matt Bishop | 303-866-4796
matt.bishop@coleg.gov
Bill Topic: POLLUTION PROTECTION MEASURES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill updates procedures and requirements for air quality control regulations and
creates a legislative interim committee. It increases state revenue and expenditures
on an ongoing basis.
Appropriation
Summary:
For FY 2023-24, the bill requires appropriations totaling $962,806 to multiple state
agencies.
Fiscal Note
Status:
This revised fiscal note reflects the introduced bill, as amended by the House Energy
and Environment Committee and the House Appropriations Committee.
Table 1
State Fiscal Impacts Under HB 23-1294
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue - -
Expenditures General Fund $141,109 $79,320
Cash Funds $820,697 $780,677
Centrally Appropriated $155,828 $147,912
Total Expenditures $1,117,634 $1,007,909
Total FTE 7.9 FTE 7.5 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $21,166 $11,898
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April 29, 2023 HB 23-1294
Summary of Legislation
The bill updates procedures and requirements for how the Air Quality Control Commission in the
Department of Public Health and Environment (CDPHE) and the Colorado Oil and Gas Conservation
Commission in the Department of Natural Resources (DNR) regulate pollution control measures.
Air Quality Control Commission. The bill updates the department’s public notice requirements for
certain construction permit applications, renewable operating permit applications, and public
hearings. It also requires the commission, within 30 days of receiving a complaint, to notify the
complainant of the steps and status of the investigation.
Colorado Oil and Gas Conservation Commission. A person may submit a complaint to the
commission alleging a violation related to oil and gas regulation. The commission must then conduct
an investigation, unless the complaint appears to be trivial or is withdrawn.
Under current law, applicants for oil and gas development submit data on the cumulative impacts of
their operations. The bill updates what must be considered and submitted under cumulative impacts.
Legislative interim committee. The bill creates the Committee on Ozone Air Quality, consisting of
12 legislators, which meets during the 2023 legislative interim. It may meet up to six times and may
introduce up to five bills or resolutions during the 2024 legislative session.
State Revenue
The Environmental Unit in the COGCC is funded primarily from the Oil and Gas Conservation and
Environmental Response Fund, which receives revenue from a surcharge on the market value of oil
and natural gas. The COGCC has the authority to adjust the surcharge up to 1.7 mills as response
fund obligations may require. No change in the mill levy rate is currently needed; however, if the
requirements in the bill begin to increase fund obligations, the commission will consider available
operating revenue and adjust the mill accordingly.
State Expenditures
The bill increases state expenditures by $1.1 million in FY 2023-24 and $1.0 million in FY 2024-25, paid
from the General Fund and cash funds, in DNR, CDPHE, and Legislative Department. These costs
are shown in Table 2 and detailed below.
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April 29, 2023 HB 23-1294
Table 2
Expenditures Under HB 23-1294
FY 2023-24 FY 2024-25
Department of Natural Resources
Personal Services $677,411 $677,411
Operating Expenses $8,100 $8,100
Capital Outlay Costs $40,020 -
Legal Services $95,166 $95,166
Centrally Appropriated Costs
1
$129,593 $129,593
FTE – Personal Services 6.0 FTE 6.0 FTE
FTE – Legal Services 0.5 FTE 0.5 FTE
DNR Subtotal $950,290 $910,270
Department of Public Health and Environment
Personal Services $71,473 $77,970
Operating Expenses $1,350 $1,350
Capital Outlay Costs $6,670
Centrally Appropriated Costs
1
$16,610 $18,319
FTE – Personal Services 0.9 FTE 1.0 FTE
CDPHE Subtotal $96,103 $97,639
Legislative Department
Personal Services $36,349 -
Operating Expenses $675 -
Capital Outlay Costs $6,670 -
Legislator Reimbursements $16,984 -
Travel Costs $938 -
Centrally Appropriated Costs
1
$9,625 -
FTE – Personal Services 0.5 FTE -
Leg. Subtotal $71,241 -
Total $1,117,634 $1,007,909
Total FTE 7.9 FTE 7.5 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
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April 29, 2023 HB 23-1294
Department of Natural Resources
The bill increases expenditures in the DNR by $1.0 million in FY 2023-24 and $0.9 million in FY 2024-25
and future years, paid from the Oil and Gas Conservation and Environmental Response Fund, to
perform cumulative impacts analysis on oil and gas location assessments, conduct additional analysis
on permit applications, and conduct investigations into alleged violations.
Staffing. Implementing the requirements above requires 6.0 FTE beginning in FY 2023-24,
including additional engineering, environmental protection, and management staff. Standard
operating and capital outlay costs are included.
Legal services. DNR requires 900 hours of legal services annually beginning in FY 2023-24 for
rulemaking, general counsel, and enforcement support. Legal services are provided by the
Department of Law at a rate of $105.74 per hour.
Department of Public Health and Environment
The bill increases workload by expanding the notification requirements and timeline for complaint
procedures. This is expected to require 1.0 FTE beginning in FY 2023-24. Standard operating and
capital outlay costs are included, and first-year costs reflect the General Fund pay date shift.
Legislative Department
The bill increases expenditures in the Legislative Department by about $71,000 in FY 2023-24 only for
Legislative Council Staff and the Office of Legislative Legal Services to support the new interim
committee and to compensate legislators for participating on the committee.
Staff support. Supporting the committee is 0.5 FTE of committee staff, research support, and bill
drafting. Travel costs assume one committee field trip.
Legislator reimbursements. The committee includes 12 legislators and meets up to six times.
Costs are based on a per diem of $111.89 and an average of $124 in travel reimbursements per
member for each meeting.
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.
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April 29, 2023 HB 23-1294
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
For FY 2023-24, the bill requires and includes the following appropriations:
$820,697 to the Department of Natural Resources from the Oil and Gas Conservation and
Environmental Response Fund, and 6.0 FTE. Of this amount, $95,166 is reappropriated to the
Department of Law with an additional 0.5 FTE;
$79,493 to the Department of Public Health and Environment from the General Fund, and 0.9 FTE;
and
$61,616 from the General Fund to the Legislative Department, and 0.5 FTE.
State and Local Government Contacts
Judicial Law Legislative
Natural Resources Public Health and Environment
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.