Page 1
April 26, 2023 SB 23-092
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 20, 2023)
Drafting Number:
Prime Sponsors:
LLS 23-0514
Sen. Simpson; Hansen
Rep. McCormick; Soper
Date:
Bill Status:
Fiscal Analyst:
April 26, 2023
House 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, decreases state and local revenue,
and increases state expenditures beginning in FY 2023-24.
Appropriation
Summary:
For FY 2023-24, the bill includes appropriations of $4.5 million to various state
agencies. See State Appropriations section.
Fiscal Note
Status:
The revised fiscal note reflects the reengrossed bill.
Table 1
State Fiscal Impacts Under SB 23-092
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue Highway Users Tax Fund ($11.2 million) ($12.8 million)
Total Revenue ($11.2 million) ($12.8 million)
Expenditures
1
General Fund $4,516,267 -
Cash Funds $200,000 -
Centrally Appropriated $20,205 $26,574
Total Expenditures $4,736,472 $26,574
Total FTE 1.0 FTE 1.3 FTE
Transfers General Fund - ($11.2 million)
Highway Users Tax Fund - $11.2 million
CWCB Construction Fund - (up to $200,000)
Feasibility Study Small Grant Fund - up to $200,000
Net Transfer $0 $0
Other Budget Impacts TABOR Refund ($11.2 million) ($12.8 million)
General Fund Reserve
2
$681,988 $1,099
1
Funding appropriated in FY 2023-24 to the Department of Agriculture may be spent through FY 2025-26. See
Table 2 for the estimated expenditures for each fiscal year.
2
General Fund reserve impact reflects the full three-year appropriation to CDA in FY 2023-24. Page 2
April 26, 2023 SB 23-092
Summary of Legislation
The bill expands a grant program, commissions two studies, and creates two tax exemptions, as
described below.
Grant program for agrivoltaics. 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 task force by September 1, 2023, to
conduct a study evaluating the opportunities and challenges for agrivoltaics. The task force must
submit its results to the General Assembly by February 15, 2024.
Emissions mitigation study. CDA must also conduct a study examining greenhouse gas emissions
mitigation and carbon sequestration in the agricultural section, including soil health management
practices, 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.
Aquavoltaics study. 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 study is
conducted in consultation with the state engineer, the Colorado Energy Office, and the Colorado
Water Institute, and the board must submit its final report to the General Assembly by January 1, 2025.
Biodiesel fuel tax exemption. The bill establishes an excise tax exemption for licensed fuel
distributors based on the volume of biodiesel or renewable diesel fuel sold, including the portion of
biodiesel mixed into blended fuel. Each year beginning in FY 2024-25, the bill backfills the Highway
Users Tax Fund by transferring from the General Fund to the Highway Users Tax Fund an amount
equal to the tax expenditure during the previous fiscal year from the exemption.
Property tax measures. The bill exempts certain agrivoltaics infrastructure from personal property
taxes for tax years 2024 through 2029.
The bill updates the statutory definition of “solar energy facility” for the purposes of property
valuation to include certain agrivoltaics and aquavoltaics.
State Revenue
The special fuel excise tax exemption is expected to decrease revenue to the Highway Users Tax Fund
by $11.2 million in FY 2023-24 and $12.8 million in FY 2024-25. The fiscal note assumes that the
exemption applies to eligible fuel sold on and after the bill’s effective date, and further estimates
54.5 million gallons of biodiesel in FY 2023-24 and 62.3 million gallons in FY 2024-25 are exempt from
the $0.205 per gallon excise tax on special fuels. These estimates are subject to uncertainty due to
limited data on the amount of blended fuel and the percentage of biodiesel incorporated. Page 3
April 26, 2023 SB 23-092
State Transfers
The bill transfers from the General Fund to the Highway Users Tax Fund an amount equal to the
previous fiscal year’s tax expenditure from the special fuel tax on biodiesel and renewable diesel on
October 15 each year, beginning in FY 2024-25. The first transfer is estimated at $11.2 million.
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 $1.8 million in FY 2023-24 and
$1.5 million in FY 2024-25, paid from various funds. Expenditures are shown in Table 2 and detailed
below.
Table 2
Expenditures Under SB 23-092
FY 2023-24 FY 2024-25
Department of Agriculture
Personal Services $98,054 $130,739
Operating Expenses $1,485 $1,755
Capital Outlay Costs $6,670 -
Agrivoltaics Grants $1,302,080 $1,280,181
Emissions Mitigation Study $87,500 $87,500
Task Force $54,500 -
Centrally Appropriated Costs
1
$20,205 $26,574
FTE – Personal Services 1.0 FTE 1.3 FTE
CDA Subtotal $1,570,494 $1,526,749
Department of Natural Resources
Aquavoltaics Study $200,000 -
DNR Subtotal $200,000 -
Department of Revenue
Computer Programming and Testing $22,930 -
Office of Research and Analysis $7,392 $7,328
DOR Subtotal $30,322 $7,328
Total $1,800,816 $1,534,077
Total FTE 1.0 FTE 1.3 FTE
1
Centrally appropriated costs are not included in the bill's appropriation. Page 4
April 26, 2023 SB 23-092
Department of Agriculture. The bill increases workload and costs 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 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. After staffing expenses, the fiscal note estimates approximately
$1.3 million available each year for grant awards, based on the $3.9 million appropriated for the
grant program over three years. Costs may vary depending on the amount of funding
appropriated to the department 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.
Task Force. The department will hire a consultant to manage the work of the task force, including
facilitating meetings and producing the final report, in FY 2023-24 only at an estimated cost of
$54,500.
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.
Department of Revenue. For FY 2023-24 only, the bill requires changes to DOR’s GenTax system and
additional computer and user acceptance testing. Approximately 50 hours of computer programming
are required to make changes in the GenTax system, totaling $11,250. Additional computer and user
acceptance testing are required to ensure programming changes are functioning properly, resulting
in an additional $11,680. Beginning in FY 2023-24, the Office of Research and Analysis within DOR
will expend about $7,300 each year to collect and report data on the tax exemption.
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. Likewise, the state engineer, the Colorado Energy Office, and the Colorado Water
Institute must consult with DNR on the aquavoltaics study. Finally, the Colorado Energy Office, Page 5
April 26, 2023 SB 23-092
Colorado Parks and Wildlife, and the Natural and Working Lands Task Force in DNR serve on the
task force with CDA. These tasks increase 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.
State Appropriations
For FY 2023-24, the bill includes the following appropriations:
$4,516,267 from the General Fund to the Department of Agriculture, and 1.0 FTE. Any money not
expended remains available through FY 2025-26; and
$30,322 from the General Fund to the Department of Revenue.
The Feasibility Study Small Grant Fund is continuously appropriated to the Department of Natural
Resources.
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.