Page 1 June 6, 2024 HB 24-1307 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Final Fiscal Note Drafting Number: Prime Sponsors: LLS 24-0281 Rep. Lieder; Hamrick Sen. Marchman Date: Bill Status: Fiscal Analyst: June 6, 2024 Vetoed by Governor Josh Abram | 303-866-3561 josh.abram@coleg.gov Bill Topic: HVAC IMPROVEMENTS FOR PUBLIC SCHOOLS S 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 Colorado Energy Office may award grants to schools and districts from the Infrastructure Investment and Jobs Act Cash Fund. Appropriation Summary: No appropriation is required. Fiscal Note Status: This final fiscal note reflects the enacted bill. The bill was vetoed by the Governor on May 17, 2024; therefore, the impacts identified in this analysis do not take effect. 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. Public schools may apply for grants from federal and state sources, including the Building Electrification for Public Buildings Grant Program in the Colorado Energy Office (CEO). Using existing resources, the Governor’s office may also use money in the Infrastructure Investment and Jobs Act Cash Fund to provide grant writing support and project planning to schools and districts. The office must report to the Joint Budget Committee and the Capital Development Committee the number of applicants for matching funds made by schools and districts prior to October 2, 2025, the amount requested and the amount funded, and an explanation of any difference. Page 2 June 6, 2024 HB 24-1307 State Expenditures The bill increases workload in the CEO to respond to an increased volume of applications from schools and districts for grant writing support and project planning. The CEO must provide assistance and consider applications from public schools and districts using existing resources, and report to the legislature data on the volume of applications and amounts awarded. These efforts do not require new appropriations. School District Public schools and districts may receive specialized grant writing support and other technical assistance from the CEO and the Governor’s office 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. 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.