Page 1
March 1, 2024 HB 24-1307
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0281
Rep. Lieder; Hamrick
Sen. Marchman
Date:
Bill Status:
Fiscal Analyst:
March 1, 2024
House Education
Josh Abram | 303-866-3561
josh.abram@coleg.gov
Bill Topic: HVAC IMPROVEMENTS FOR PUBLIC SCHOOLS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ School District
☐ Statutory Public Entity
The bill requires that public schools and districts satisfy certain requirements
concerning installation, inspection, and maintenance of heating, ventilation, and air
conditioning systems when using federal and state funding. The bill increases state
expenditures beginning FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires appropriations totaling $1.6 million to the Governor’s
Office and the Department of Public Safety.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1307
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $120,252 $208,139
Cash Funds $1,485,090 $1,458,410
Centrally Appropriated $104,060 $124,190
Total Expenditures $1,709,402 $1,790,739
Total FTE 5.0 FTE 6.0 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $18,038 $31,221
Page 2
March 1, 2024 HB 24-1307
Summary of Legislation
The bill requires that all public schools and districts adhere to technical specifications for the
installation, inspection, maintenance, review and reporting of heating, ventilation, and air
conditioning (HVAC) systems whenever improvements are made using federal money, or a
combination of federal and state funding specifically for HVAC improvements. Schools must
only employ certified contractors to perform HVAC improvements.
The bill permits public schools to apply for grants from federal and state sources, including the
Building Electrification for Public Buildings Grant Program in the Colorado Energy Office. Schools
may also access an existing grant navigation program administered by the Department of Local
Affairs, and coordinate with third parties for technical assistance related to HVAC installation
and in obtaining grant funding. The Governor’s office may use money in the Infrastructure
Investment and Jobs Act Cash Fund to provide grant writing support to schools and districts,
and to coordinate with third parties providing technical assistance to schools.
State Expenditures
The bill increases state expenditures in the Governor’s Energy Office by about $1.5 million in
FY 2024-25 and FY 2025-26, paid from the Infrastructure Investment and Jobs Act Cash Fund.
The bill increases expenditures in the Division of Fire Prevention and Control (DFPC) in the
Department of Public Safety (DPS) by about $140,000 in FY 2024-25, and by about $248,000 in
FY 2025-26, paid from the General Fund. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 24-1307
FY 2024-25 FY 2025-26
Governor’s Office
Personal Services $361,810 $361,810
Operating Expenses $5,120 $5,120
Capital Outlay Costs $26,680 -
Travel $6,480 $6,480
Third-Party Contracts $1,085,000 $1,085,000
Centrally Appropriated Costs
1
$83,930 $83,930
FTE – Personal Services 4.0 FTE 4.0 FTE
Governor’s Office Subtotal $1,569,020 $1,542,340
Page 3
March 1, 2024 HB 24-1307
Table 2
Expenditures Under HB 24-1307 (Cont.)
Department of Public Safety
Personal Services $73,331 $146,661
Operating Expenses $1,280 $2,560
Capital Outlay Costs $6,670 $13,340
Statewide Travel Expenses $10,000 $20,000
Radios $8,600 $19,914
Uniforms $2,250 $5,664
Personal Protective Equipment $2,500 -
Leased Vehicles $9,957 -
Variable Vehicle Costs $5,664 -
Centrally Appropriated Costs
1
$20,130 $40,260
FTE – Personal Services 1.0 FTE 2.0 FTE
DPS Subtotal $140,382 $248,399
Total Costs $1,709,402 $1,790,739
Total FTE 5.0 FTE 6.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Governor’s Office
Staff. Under current law, the Governor’s office provides grant writing support and project
planning for local governments and tribes. The office may authorize spending from the money
provided under the federal Infrastructure Investment and Jobs Act for infrastructure projects,
and other permissible uses. Expanding the current program to include HVAC improvements or
installations in schools and districts, the Governor’s Energy Office will add 1.0 FTE Contract
Administrator to oversee third party contracts, review and approve payments, and manage
memoranda of understanding between the office and schools and districts. The office will also
add 3.0 FTE School Grant and Tax Credit Navigators to market available state resources to public
schools, identify grants and other funding and financing opportunities, and provide technical
assistance for grant writing and project planning.
Third-party contracts. The office uses outside vendors and consulting firms to provide
additional assistance to current program participants. The office will contract with additional
consultants with expertise in the expanded assistance authorized in the bill, including HVAC
engineering systems, compliance with federal labor standards, project financing, and tax credits
and other incentives for HVAC improvements in schools.
Page 4
March 1, 2024 HB 24-1307
Department of Public Safety
Staff. The DFPC in DPS provides building, fire, and safety code enforcement and fire-related
training and education to local governments, including public schools and districts. Within the
division, the Fire and Life Safety Section administers the fire, building, and life safety codes
adopted by the division for all public schools, and the Building Codes Branch of the division is
the designated code official. Inspectors conduct plan reviews and construction inspections for
building, mechanical, energy conservation, and fire suppression code adopted by the DFPC. This
bill is estimated to increase the number of HVAC improvement or replacement projects in public
schools. The DFPC currently estimates that HVAC inspections number about 15 annually.
Assuming this bill doubles the number of projects in FY 2024-25, the DFPC requires an
additional 1.0 FTE Inspector and related costs such as travel, uniforms, personal protective
equipment, etc. Assuming the number of annual inspections increases again in FY 2025-26, the
DFPC will add an additional inspector, bringing the total increase to 2.0 FTE. Beyond FY 2025-26,
if the number of new inspections exceeds the division’s staff resources, additional FTE will be
requested during the annual budget process.
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 he amount of General Fund available for other purposes.
School District
Public schools and districts will receive specialized grant writing support and other technical
assistance from the Governor’s energy office and third-party partners in order to address HVAC
system upgrades. Cost may increase to pursue additional HVAC projects, with costs offset to the
extent that additional grants and other resources become available. These costs will vary by
school district.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
Page 5
March 1, 2024 HB 24-1307
State Appropriations
For FY 2024-25, the bill requires the following appropriations:
$120,252 General Fund to the Department of Public Safety, and 1.0 FTE.
$1,485,090 from the Infrastructure Investment and Jobs Act Cash Fund to the Governor’s
Office, and 4.0 FTE.
State and Local Government Contacts
Education Governor Labor
Public Safety School Districts
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.