Page 1
May 1, 2024 HB 24-1030
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 24, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0247
Rep. Mabrey; Mauro
Sen. Cutter; Exum
Date:
Bill Status:
Fiscal Analyst:
May 1, 2024
Senate Appropriations
Colin Gaiser | 303-866-2677
colin.gaiser@coleg.gov
Bill Topic: RAILROAD SAFETY REQUIREMENTS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill establishes new safety requirements on railroads operating in the state and
creates the Office of Rail Safety and rail safety advisory committees. It increases state
and local government expenditures, and increases state revenue, on an ongoing
basis.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $391,057 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
This revised fiscal note reflects the reengrossed bill, as amended by the Senate
Transportation and Energy Committee. The bill was recommended by the
Transportation Legislation Review Committee.
Table 1
State Fiscal Impacts Under HB 24-1030
Budget Year
FY 2024-25
Out Year
FY 2025-26
Out Year
FY 2026-27
Revenue Fixed Utility Fund - $440,070 $453,322
Total Revenue - $440,070 $453,322
Expenditures Fixed Utility Fund $391,057 $364,377 $377,064
Centrally Appropriated $75,693 $75,693 $76,257
Total Expenditures $466,750 $440,070 $453,322
Total FTE 3.5 FTE 3.5 FTE 3.5 FTE
Transfers - - -
Other Budget Impacts TABOR Refund - $440,070 not estimated
Page 2
May 1, 2024 HB 24-1030
Summary of Legislation
The bill establishes safety requirements on railroads operating trains in the state, as discussed
below.
Railroad safety measures. The bill specifies that, with certain exceptions for class II and III
railroads:
on or before July 1, 2026, railroads are required to have an operational and properly
maintained wayside detector system, including a hot bearings detector and dragging
equipment detector installed at least every 10 miles, with certain terrain-based exceptions;
on or before January 1, 2025, and each year thereafter, railroads must submit a report to the
Public Utilities Commission (PUC) on installed wayside detector systems, hot bearings
detectors, and dragging equipment detectors;
railroads must stop a train after receiving a message from a wayside detector system. If an
inspection indicates the train is safe for movement, the train must travel no more than
10 miles per hour if the train is carrying a hazardous material or dangerous goods, and no
more than 30 miles per hour if the train is not carrying a hazardous material or dangerous
goods;
trains, freight cars, passenger cars, and railroad passenger engines may not obstruct a public
crossing for more than 10 minutes, unless they are continuously moving or circumstances
beyond the railroad’s control prevent them from moving. They must also minimize
obstruction of emergency vehicles at highway-rail crossings;
any crew member of a train may report to the crew member’s designated union
representative a safety violation, injury, or death that occurred during the operation of a
train. Upon receiving notice of a violation, the representative may enter a railroad’s place of
operation to investigate the report;
each railroad must conduct an oil or hazardous substance containment exercise each year
and at least one full-scale exercise every five years, in coordination with local emergency
management organizations and fire chiefs. The PUC must develop rules concerning training
content, safety drills, and railroad incident response requirements;
the PUC may impose a fine for a railroad’s denying a union representative access to a
railroad’s place of operation ranging from $10,000 to $25,000 for each day of a continuing
violation, and a fine of up to $100,000 for repeated and/or intentional violations related to
union activities; and
the PUC must develop guidelines for determining, imposing, and appealing fines.
Front Range Passenger Rail District Maintenance and Safety Fund. The bill creates the Front
Range Passenger Rail District Maintenance and Safety Fund, which will receive fines imposed by
the PUC for violations of this bill’s safety requirements. The money is continuously appropriated
to the state treasurer for the purpose of safety planning and development during the research,
development, and construction of a passenger rail system; maintaining a passenger rail system;
and completing capital development projects to improve the safety of a passenger rail system.
Page 3
May 1, 2024 HB 24-1030
Fire department training. The bill requires that by July 1, 2025, and at least once every
three years thereafter, railroads offer training to each fire department with jurisdiction along
railroad tracks. The training must address hazardous materials and emergency responder
strategies for railroad incidents involving hazardous materials.
Hazardous materials insurance. The bill requires railroads transporting hazardous materials to
maintain adequate insurance and submit to the PUC a certificate of insurance or similar
documentation on or before January 1, 2025, and each year thereafter. By November 1, 2024,
the PUC must promulgate rules establishing minimum insurance coverage requirements for
railroads transporting hazardous materials. At least once a year, the PUC must also hold a public
hearing concerning the implementation of these rules. Railroads that violate these rules are
subject to fines of at least $1,000, but not exceeding $5,000, for each day of noncompliance.
Emergency response. The bill requires railroads transporting hazardous materials to coordinate
with the Department of Public Safety (CDPS) on emergency response planning. Railroads must
also conduct at least two tabletop exercises with other federal, state, and local agencies on
scenarios involving derailment and release of crude oil or other flammable materials. In addition,
within 30 minutes after an emergency involving a train transporting hazardous materials, the
railroad must notify the CDPS with a detailed explanation of the emergency, help coordinate an
emergency response, and provide follow-up reports.
Office of Rail Safety. The bill creates the Office of Rail Safety, which is administered by the PUC.
Through the office, the bill requires the PUC to:
enter into an agreement with the Federal Railroad Administration to participate in inspection
and investigation activities;
coordinate with the CDPS on CDOT on inspection and investigation activities for Class I
railroads, passenger railroads, and intercity railroads;
accept gifts, grants, and donations for purchasing training materials and other equipment;
along with CDOT, CDPS, and the Rail Safety Advisory Committee, provide a comprehensive
report to the Governor and relevant legislative committees by December 1, 2024, on rail
safety and emergency response. The report must include a legislative proposal concerning
the creation of a fee structure and a governance body for the Office of Rail Safety that can
be introduced as legislation by 2025 and begin operating no later than January 1, 2027; and,
regularly engage with Class I railroads, railroad unions, and local governments of
municipalities that contain railroads.
Advisory committees. The bill creates two advisory committees: the Community Rail Safety
Advisory Committee and the Rail Industry Safety Committee. The Community Rail Safety
Advisory Committee consists of seven members including representatives of union workers,
disproportionately impacted communities, and statewide environmental organizations. The Rail
Industry Safety Committee consists of nine members including representatives of railroad
operators, first responder organizations, the PUC, the CDPS, and CDOT. Committee members
must be appointed on or before August 1, 2024. Page 4
May 1, 2024 HB 24-1030
State Revenue
Beginning in FY 2025-26, the bill requires the PUC to create a fee structure to support the Office
of Rail Safety. Fees will be assessed on regulated railroads and credited to the Fixed Utility Fund
in an amount sufficient to cover the expenditures outlined below. Current railroad fee revenue
to the Fixed Utility Fund can support these costs in FY 2024-25. The bill may also increase fine
revenue to the Front Range Passenger Rail District Maintenance and Safety Fund by an
indeterminate amount. Both revenue sources are subject to TABOR.
Fee impact on regulated railroad entities. Colorado law requires legislative service agency
review of measures which create or increase any fee collected by a state agency. The fee
amounts in Table 2 are estimates only and assume that 14 railroad companies pay fees to
support the Office of Rail Safety. Actual fees will be set administratively by the PUC through
rulemaking based on cash fund balance, administrative costs, and the number of entities subject
to the fee.
Table 2
Fee Impact on Regulated Railroad Entities
Fiscal Year Type of Fee Fee Estimate Number Affected Fee Impact
FY 2025-26 Rail Safety Fee $31,434 14 $440,070
Fine revenue. The bill may increase fine revenue to the newly created Front Range Passenger
Rail District Maintenance and Safety Fund. The amount of fine revenue collected will depend on
future enforcement actions and cannot not been estimated.
State Expenditures
The bill increases state expenditures in the PUC in the Department of Regulatory Agencies
(DORA) by about $467,000 in FY 2024-25, $440,000 in FY 2025-26, and $453,000 in FY 2026-27,
paid from the Fixed Utility Fund. Expenditures are shown in Table 3 and detailed below.
Table 3
Expenditures Under HB 24-1030
FY 2024-25 FY 2025-26 FY 2026-27
Department of Regulatory Agencies
Personal Services $359,897 $359,897 $365,914
Operating Expenses $4,480 $4,480 $4,480
Capital Outlay Costs $26,680 - $6,670
Centrally Appropriated Costs
1
$75,693 $75,693 $76,257
Total Cost $466,750 $440,070 $453,322
Total FTE 3.5 FTE 3.5 FTE 3.5 FTE
1
Centrally appropriated costs are not included in the bill's appropriation. Page 5
May 1, 2024 HB 24-1030
Department of Regulatory Agencies. The bill increases staffing in the PUC by 3.5 FTE
beginning in FY 2024-25. Standard operating and capital outlay costs are included for all staff.
Office of Rail Safety. The PUC requires 3.0 FTE for a professional engineer, project
manager, and environmental protection specialist to establish and administer the Office of
Rail Safety. Staff will conduct rulemaking on hazardous materials and railroad safety
exercises; work with the Federal Railroad Administration on the required agreement;
establish and coordinate the rail safety advisory committees; and coordinate and help deliver
the required report to the Governor’s Office and legislative committees. Expenditures
assume a July 1, 2024 start date for this staff.
Legal assistance. The PUC requires 0.5 FTE of an administrative law judge to assist with
rulemaking development from July 2024 until June 2026.
Wayside detector compliance. The PUC requires 0.5 FTE starting in July 2026 for
professional engineering staff to review wayside detector reports; impose fines against
railroads, officers, agents, or employees for violating the bill’s requirements; determine
proper levels of insurance coverage; review certificates of insurance showing compliance;
and conduct compliance audits.
Supporting agencies. The bill increases workload for CDOT and the CDPS to support the PUC
in administering the Office of Rail Safety, participate in required inspection activities, help
produce the required report to the Governor’s Office and relevant legislative committees, and
represent CDOT and the CDPS on the Rail Safety Advisory Committee. The CDPS will must also
coordinate with the PUC on emergency response planning. This workload increase is absorbable
within existing resources.
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.
Local Government
The bill will increase workload for local fire departments and emergency management
organizations that participate in the training required by the bill. Some local governments may
also collaborate with the Office of Rail Safety on rulemaking and emergency response.
Effective Date
The bill takes effect July 1, 2024. The bill includes a severability clause.
Page 6
May 1, 2024 HB 24-1030
State Appropriations
For FY 2024-25, the bill requires an appropriation of $391,057 from the Fixed Utility Fund to the
Department of Regulatory Agencies, and 3.5 FTE.
The bill currently includes an appropriation of $11,651 to this agency, with 0.1 FTE.
State and Local Government Contacts
Labor Law Local Affairs
Personnel Public Health and Environment Public Safety
Regulatory Agencies Revenue Transportation
Treasury
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.