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February 14, 2023 SB 23-092
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0514
Sen. Simpson; Hansen
Rep. McCormick; Soper
Date:
Bill Status:
Fiscal Analyst:
February 14, 2023
Senate Agriculture
Matt Bishop | 303-866-4796
matt.bishop@coleg.gov
Bill Topic: AGRICULTURAL PRODUCERS USE OF AGRIVOLTAICS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill commissions grants and studies to evaluate the use of agrivoltaics and
aquavoltaics. It requires transfers between funds and increases state expenditures
beginning in FY 2023-24.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $112,275 to the Department of
Agriculture.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 23-092
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue - -
Expenditures General Fund $112,275 $120,398
Cash Funds $1,983,514 $1,779,777
Centrally Appropriated $20,973 $26,574
Total Expenditures $2,116,762 $1,926,749
Total FTE 1.0 FTE 1.3 FTE
Transfers
1
General Fund ($1,800,000) ($1,800,000)
Agriculture Value-Added Cash Fund $1,800,000 $1,800,000
CWCB Construction Fund - (up to $200,000)
Feasibility Study Small Grant Fund - up to $200,000
Net Transfer $0 $0
Other Budget Impacts General Fund Reserve $16,841 $18,060
1
The transfer from the General Fund to the Agriculture Value-Added Cash Fund is assumed to occur via an annual
appropriation to the fund. The exact amount may be set at the discretion of the General Assembly. Page 2
February 14, 2023 SB 23-092
Summary of Legislation
The bill expands eligibility requirements for grant awards made by the Agricultural Drought and
Climate Resilience Office in the Department of Agriculture (CDA) to include the use or study of
agrivoltaics, which involves solar energy generation facilities that are integrated with agricultural
activities. The office must convene a stakeholder group by October 1, 2023, to advise on making grants
related to agrivoltaics.
CDA must also conduct a study examining greenhouse gas emissions mitigation and carbon
sequestration in the agricultural section, including the use of dry digesters and the potential for
creating a greenhouse gas offset program. Other state entities must consult with CDA, and any offset
program may be incorporated into rules promulgated by the Air Quality Control Commission upon
the study’s completion. CDA must submit a progress report to the General Assembly by
October 1, 2024, and a publish a final report by October 1, 2025.
The Colorado Water Conservation Board in the Department of Natural Resources (DNR) must
conduct a feasibility study regarding aquavoltaics, which involves solar energy generation facilities
placed over or floating on irrigation canals or reservoirs.
The bill updates the statutory definition of “solar energy facility” for the purposes of property
valuation to include certain agrivoltaics and aquavoltaics.
State Transfers
The bill requires transfers to support the programs created by the bill.
Agrivoltaics grants. The fiscal note assumes that the bill requires an annual transfer of $1.8 million
from the General Fund to the Agriculture Value-Added Cash Fund for CDA’s agrivoltaics grant
program. Transfers to the funds are expected to occur via an annual appropriation. The exact amount
of the transfer can be set at the discretion of the General Assembly.
Aquavoltaics study. Current law requires an annual transfer from the Colorado Water Conservation
Board Construction Fund to the Feasibility Study Small Grant Fund to restore the latter’s fund balance
to $500,000. If the aquavoltaics study causes the Feasibility Study Small Grant Fund’s balance to fall
below this threshold, the bill may trigger a transfer of up to $200,000 on July 1, 2024.
State Expenditures
The bill increases state expenditures in various state agencies by $2.1 million in FY 2023-24 and
$1.9 million in FY 2024-25, paid from the various funds. Expenditures are shown in Table 2 and
detailed below.
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February 14, 2023 SB 23-092
Table 2
Expenditures Under SB 23-092
FY 2023-24 FY 2024-25
Department of Agriculture
Personal Services $106,241 $130,739
Operating Expenses $1,485 $1,755
Capital Outlay Costs $6,670 -
Agrivoltaics Grants
1
$1,693,893 $1,680,181
Emissions Mitigation Study $87,500 $87,500
Centrally Appropriated Costs
2
$20,973 $26,574
FTE – Personal Services 1.0 FTE 1.3 FTE
CDA Subtotal $1,916,762 $1,926,749
Department of Natural Resources
Aquavoltaics Study $200,000 -
DNR Subtotal $200,000 -
Total $2,116,762 $1,926,749
Total FTE 1.0 FTE 1.3 FTE
1
The exact amount of grants will vary depending on the amount transferred to the Agriculture Value-Added Cash
Fund. This estimate assumes a transfers of $1.8 million per year.
2
Centrally appropriated costs are not included in the bill's appropriation.
Department of Agriculture. The bill increases workload in CDA to administer the agrivoltaics grant
program and the emissions mitigation and sequestration study. All staff costs have been prorated to
reflect the bill’s effective date and, as necessary, the General Fund pay date shift. Standard operating
and capital outlay costs are included.
Agrivoltaics grant program. Establishing rules and administering the grant program requires
1.0 FTE. Grant awards are expected to range from $250,000 to $800,000, depending on the size of
the agrivoltaics project and guidelines established by the stakeholder group. After staffing
expenses, the fiscal note estimates approximately $1.7 million available each year for grant
awards, based on the assumed transfer to the Agriculture Value-Added Cash Fund, which is
continuously appropriated to the department. Costs may vary depending on the amount of
funding transferred to the fund each year.
Emissions mitigation study. Contracting for the study requires 0.3 FTE beginning in FY 2023-24
until the submission of the study’s final report. Based on the cost of another study of similar scope,
the contract is estimated at $175,000 over two years. These costs are paid from the General Fund.
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February 14, 2023 SB 23-092
Department of Natural Resources. Based on previous feasibilities studies conducted by the
department, the aquavoltaics feasibility study is estimated to cost $200,000, paid from the Feasibility
Study Small Grant Fund, which is continuously appropriated to Colorado Water Conservation Board.
The fiscal note assumes the study will take place in FY 2023-24; some of the costs may carry forward
into FY 2024-25 depending on the timing of study activities.
The bill also increases workload in several divisions in DNR to consult on the studies. This workload
can be accomplished within existing appropriations.
Department of Public Health and Environment. The department must consult with CDA on its study
of greenhouse gas emissions mitigation and carbon sequestration. This workload can be
accomplished within existing appropriations. If the study’s final report includes recommendations
for an offset program, workload and legal services costs will increase for the department in FY 2025-26,
which will be addressed through the annual budget process as necessary. Legal services are provided
by the Department of Law.
Other state agencies. The bill requires the Colorado Energy Office and an institute of higher
education to consult with CDA on its study of greenhouse gas emissions mitigation and carbon
sequestration. This increases workload for these entities, which can be accommodated within existing
appropriations.
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.
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February 14, 2023 SB 23-092
State Appropriations
For FY 2023-24, the bill requires an appropriation of $112,275 from the General Fund to the
Department of Agriculture for the emissions mitigation study, and 0.2 FTE.
In addition, to fund the agrivoltaics grant program at the level estimated above, the bill requires an
appropriation of $1.8 million from the General Fund to the Agriculture Value-Added Cash Fund for
FY 2023-24. This exact amount of this appropriation may be set at the discretion of the General
Assembly. The Department of Agriculture requires 0.8 FTE for this grant program.
The Agriculture Value-Added Cash Fund and the Feasibility Study Small Grant Fund are
continuously appropriated to the Department of Agriculture and the Department of Natural
Resources, respectively.
State and Local Government Contacts
Agriculture Colorado Energy Office Higher Education
Information Technology Law LCS
Natural Resources Public Health and Environment Revenue
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.