Page 1 April 10, 2023 SB 23-262 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 23-0199 Sen. Priola Rep. Ricks; Soper Date: Bill Status: Fiscal Analyst: April 10, 2023 Senate Agriculture Alexa Kelly | 303-866-3469 alexa.kelly@coleg.gov Bill Topic: WATER DESALINATION STUDY AND REPORT Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill requires the Colorado Water Conservation board to conduct a literature review of existing research on desalination. It increases state expenditures in FY 2023-24 only. Appropriation Summary: For FY 2023-24, the bill requires an appropriation of $50,000 to the Department of Natural Resources. Fiscal Note Status: The fiscal note reflects the introduced bill. Table 1 State Fiscal Impacts Under SB 23-262 Budget Year FY 2023-24 Out Year FY 2024-25 Revenue - - Expenditures Cash Funds $50,000 - Transfers - - Other Budget Impacts - - Page 2 April 10, 2023 SB 23-262 Summary of Legislation The bill requires that the Colorado Water Conservation Board (CWCB) in the Department of Natural Resources (DNR) conduct a comprehensive literature review of existing research on the challenges and opportunities of desalination facilities in California or Mexico. The review must include information on the status of current research and identify gaps in particular topic areas as they relate to desalination, including information on desalination facility operating and start-up costs, the amount of seawater that could be desalinated and put to beneficial use in California and Mexico, the role of renewable energy, and the environmental effects. By July 1, 2025, CWCB must provide a report on the board’s findings to the House Agriculture, Water, and Natural Resources Committee, the Senate Agriculture and Natural Resources Committee, the Water Resources and Agriculture Review Committee, the Governor, and the federal Bureau of Reclamation. State Expenditures The bill increases state expenditures in the Department of Natural Resources by $50,000 in FY 2023-24 only, paid from the CWCB Construction Cash Fund. CWCB will hire a contractor to develop a work plan, complete the literature review, summarize findings, and compile the final report. The review is expected to take approximately 250 to 300 contractor hours, for a total cost of $50,000. 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 $50,000 to the Department of Natural Resources from the Colorado Water Conservation Board Construction Cash Fund. State and Local Government Contacts Natural Resources 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.