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May 6, 2023 SB 23-092
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 26, 2023)
Drafting Number:
Prime Sponsors:
LLS 23-0514
Sen. Simpson; Hansen
Rep. McCormick; Soper
Date:
Bill Status:
Fiscal Analyst:
May 6, 2023
House Second Reading
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 requires and includes an appropriation of $611,870 to various
state agencies. See State Appropriations section.
Fiscal Note
Status:
The revised fiscal note reflects the reengrossed bill, as amended by the House
Appropriations Committee.
Table 1
State Fiscal Impacts Under SB 23-092
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue - -
Expenditures
1
General Fund $611,870 $619,993
Cash Funds $200,000 -
Centrally Appropriated $4,487 $6,350
Total Expenditures $816,357 $626,343
Total FTE 0.3 FTE 0.3 FTE
Transfers 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 $91,781 $92,999
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May 6, 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.
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.
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 Transfers
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 $816,357 in FY 2023-24 and $626,343
in FY 2024-25, paid from various funds. Expenditures are shown in Table 2 and detailed below.
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May 6, 2023 SB 23-092
Table 2
Expenditures Under SB 23-092
FY 2023-24 FY 2024-25
Department of Agriculture
Personal Services $24,370 $32,493
Agrivoltaics Grants $500,000 $500,000
Emissions Mitigation Study $87,500 $87,500
Centrally Appropriated Costs
1
$4,487 $6,350
FTE – Personal Services 0.3 FTE 0.3 FTE
CDA Subtotal $616,870 $626,343
Department of Natural Resources
Aquavoltaics Study $200,000 -
DNR Subtotal $200,000 -
Total $816,357 $626,343
Total FTE 0.3 FTE 0.3 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
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.
Agrivoltaics grant program. Workload will increase to stablish rules and administer the grant
program. Grant awards support agrivoltaics project, which are expected to range from $250,000
to $800,000, depending on the size of the agrivoltaics project. The bill includes $500,00 for grants
in FY 2023-24. In future years, costs may vary depending on the amount of funding appropriated
to the department.
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.
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May 6, 2023 SB 23-092
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. Likewise, the state engineer, the Colorado Energy Office, and the Colorado Water
Institute must consult with DNR on the aquavoltaics study.
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 and includes an appropriation of $611,870 from the General Fund to
the Department of Agriculture, and 0.3 FTE. 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.