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March 15, 2024 HB 24-1235
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated March 4, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0251
Rep. Brown; Bird
Sen. Fenberg; Zenzinger
Date:
Bill Status:
Fiscal Analyst:
March 15, 2024
House Finance
Colin Gaiser | 303-866-2677
colin.gaiser@coleg.gov
Bill Topic: REDUCE AVIATION IMPACTS ON COMMUNITIES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill creates new requirements concerning adverse airport impacts for the State
Aviation System Grant Program and the Division of Aeronautics, and creates a tax
credit for unleaded aviation gasoline. It decreases state revenue, increases state
expenditures, and impacts local governments on an ongoing basis.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $44,609 to the Department of
Revenue. The Aviation Cash Fund is continuously appropriated to the Colorado
Department of Transportation.
Fiscal Note
Status:
This revised fiscal note reflects the introduced bill, as amended by the House
Transportation, Housing, and Local Government Committee.
Table 1
State Fiscal Impacts Under HB 24-1235
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue General Fund ($800) ($17,800)
Total Revenue ($800) ($17,800)
Expenditures General Fund $44,609 $7,392
Cash Funds $7,500 $7,500
Total Expenditures $52,109 $14,892
Transfers - -
Other Budget Impacts TABOR Refund
($800) ($17,800)
General Fund Reserve $6,691 $1,109
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March 15, 2024 HB 24-1235
Summary of Legislation
State tax credit. The bill creates a tax credit for aircraft owners that incur qualified expenses to
modify and certify their aircraft to use unleaded aviation gasoline rather than leaded aviation
gasoline.
Changes to Aviation Grant Program. The bill instructs the Division of Aeronautics in the
Department of Transportation (CDOT), when considering grant applications for the State
Aviation System Grant Program, to designate the lesser of 10 percent of the amount awarded in
grants per year, or $1.5 million, for the purpose of aiding the transition from leaded to unleaded
aviation gasoline. Airports receiving a grant for this purpose must have adopted a plan by
January 1, 2026, for phasing out sales of leaded gasoline by 2030. Airports must also have
established and enforced, in consultation with flight schools and pilots that regularly use the
airport, a voluntary noise abatement plan that follows federal guidelines. Limitations do not
apply to money expended at an international airport or for an aviation project designed to
mitigate significant adverse effects on the health and safety of residents near the project.
Aeronautical board. The bill increases membership on the Colorado Aeronautical Board from
seven to nine by adding two members that are residents of communities affected by general
aviation or commercial airport traffic. It also adds the executive director of the Department of
Public Health and Environment (CDPHE), or the director’s designee, as a nonvoting member of
the board.
Adverse impact prevention and mitigation. The bill requires the Division of Aeronautics to
work with the CDPHE to evaluate, educate, and provide technical assistance to airports about
the adverse impacts of aircraft noise and leaded aviation gasoline, with prioritization to airports
with significant activity near densely populated residential areas. CDPHE must continue to
encourage testing for lead in the blood of individuals who reside, work, or go to school or
childcare near such airports.
Background and Assumptions
Aviation gasoline. Aviation gasoline is typically used by small piston-engine aircraft. There are
approximately 4,500 piston-engine aircraft in Colorado, although not all of these aircraft are
necessarily airworthy or actively flying.
The most widely used grade of aviation gasoline, Avgas 100LL (low-lead), contains lead. There
are some versions of unleaded aviation gasoline that are currently available, such as Avgas UL91
and Avgas UL94, but not all piston-engine aircraft can use these fuels due to their lower octane
rating, and these fuels are not widely available in Colorado outside of Centennial airport. The
cost of unleaded aviation gasoline is generally higher than the cost of Avgas 100LL. Most aircraft
do not need to be modified to use unleaded gasoline, but they are required to obtain a
Supplemental Type Certificate (STC) certifying that the aircraft may be powered by unleaded
aviation gasoline. For UL94, these STCs cost about $100.
The Federal Aviation Administration has launched an initiative to eliminate the use of leaded
aviation fuels by the end of 2030, including facilitating the production, distribution, and use of Page 3
March 15, 2024 HB 24-1235
unleaded replacement fuels. There are a number of potential types of 100-octane unleaded
aviation gasoline in the process of being developed or produced. This includes G100UL, which
will be available in select airports in California beginning in the summer of 2024, but has not
received American Society for Testing and Materials (ASTM) certification. The cost of obtaining
an STC for G100UL ranges from about $200 to $600.
State Revenue
Tax credit for certification of aircraft to use unleaded aviation gasoline. The tax credit in
the bill is expected to reduce General Fund revenue, which is subject to TABOR, by about
$800 in FY 2024-25 (a half-year impact) and $17,800 in FY 2025-26. This tax credit is equal to
half the amount of expenses incurred to receive a Supplemental Type Certificate (STC), certifying
that the aircraft may be powered by unleaded aviation gasoline. Currently, STCs can cost
between $100 (for UL94) and $600 (for multi-engine aircraft using g100UL). The fiscal note
assumes that unleaded 100-octane aviation gasoline will not be available in Colorado until 2026.
It is assumed that about 30 taxpayers will get the tax credit in tax year 2025 for UL94 STCs, and
about 200 will get the credit in 2026 when higher octane unleaded fuels are expected to be
available in Colorado. The fiscal note also assumes the cost of an STC for other types of
unleaded aviation gasoline will be comparable to the cost of an STC for G100UL.
State Expenditures
The bill increases state expenditures in the Department of Revenue (DOR) and CDOT by $52,000
in FY 2024-25 and $15,000 in FY 2025-26, from the General Fund and the Aviation Cash Fund,
respectively. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 24-1235
FY 2024-25 FY 2025-26
Department of Revenue
Programming and Testing $42,018 -
Data Reporting - $7,392
Document Management $2,591 -
DOR Subtotal $44,609 $7,392
Department of Transportation
Aviation Board $7,500 $7,500
CDOT Subtotal $7,500 $7,500
Total $52,109 $14,892
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Centrally appropriated costs are not included in the bill's appropriation. Page 4
March 15, 2024 HB 24-1235
Department of Revenue. The bill increases General Fund expenditures in the DOR for various
programming and data management costs, as follows.
Programming and testing. In FY 2024-25 only, the bill requires $42,018 to program, test,
and update database fields in the DOR's GenTax software system, including 115 hours of
contract programming at a rate of $231.75 per hour and $10,535 for ISD development and
testing.
Data reporting. Beginning in FY 2025-26, the Office of Research and Analysis requires
$7,391 to change related GenTax reports so the department can access and document tax
statistics related to the new tax policy. These costs represent 231 hours of data management
and reporting at $32 per hour.
Document management. For FY 2024-25 only, the bill requires changes to one tax form at
a cost of $2,591. Expenditures for form changes occur in the Department of Personnel and
Administration using reappropriated funds.
Division of Aeronautics—CDOT. The Division of Aeronautics requires $7,500 annually to
support the additional two members on the Aeronautics Board. These costs are paid from the
Aviation Cash Fund, which is continuously appropriated to the division. The division will make
necessary changes to its grant program and collaborate with the CDPHE on evaluation,
education, and technical assistance to airports regarding noise and leaded gas within its existing
resources.
Department of Public Health and Environment. The bill requires the CDPHE to collaborate
with the Division of Aeronautics on airport outreach regarding adverse impacts. Any CDPHE
workload will be minimal and accomplished within existing resources.
Other Budget Impacts
TABOR refunds. The bill is expected to decrease the amount of state revenue required to be
refunded to taxpayers by the amounts shown in the State Revenue section above. This estimate
assumes the December 2023 LCS revenue forecast. A forecast of state revenue subject to TABOR
is not available beyond FY 2025-26. Because TABOR refunds are paid from the General Fund,
decreased General Fund revenue will lower the TABOR refund obligation, but result in no net
change to the amount of General Fund otherwise available to spend or save.
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.
Local Government
The bill may increase workload for local governments that receive money from the State
Aviation Grant Program if these entities need to develop a noise mitigation plan and/or a plan
to phase out leaded gasoline. Impacts will vary by jurisdiction. Page 5
March 15, 2024 HB 24-1235
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State Appropriations
For FY 2024-25, the bill requires a General Fund appropriation of $44,609 to the Department of
Revenue.
State and Local Government Contacts
Colorado Energy Office Counties Local Affairs
Public Health and Environment 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 the General Assembly website.