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March 11, 2024 HB 24-1339
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0910
Rep. Weissman; Rutinel
Sen. Winter F.
Date:
Bill Status:
Fiscal Analyst:
March 11, 2024
House Energy & Environment
Matt Bishop | 303-866-4796
matt.bishop@coleg.gov
Bill Topic: DISPROPORTIONATELY IMPACT ED COMMUNITY AIR POLLUTION
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill expands the Air Quality Control Commission’s membership, restricts emissions
from the industrial sector, and modifies the state’s greenhouse gas credit trading
program. It increases state expenditures beginning in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires appropriations totaling $194,216 to multiple state
agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1339
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $194,216 $74,690
Centrally Appropriated $36,169 $5,625
Total Expenditures $230,385 $80,315
Total FTE 1.8 FTE 1.5 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $29,132 $11,204
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March 11, 2024 HB 24-1339
Summary of Legislation
The bill expands the Air Quality Control Commission in the Department of Public Health and
Environment (CDPHE) from nine members to eleven to include representation from a
disproportionately impacted community and a climate scientist. It also requires that the
commission adopt rules that prohibit greenhouse gas emissions from the industrial and
manufacturing sector from increasing in the short-term, limit the sector’s emissions through
2030, and require direct emissions reductions from sources that have adversely impacted a
disproportionately impacted community. Beginning January 1, 2025, emissions sources cannot
meet compliance targets by making a payment other than for a greenhouse gas credit through
a trading program.
State Expenditures
The bill increases state expenditures by about $230,000 in FY 2024-25 and $80,000 in
FY 2025-26, paid from the General Fund. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 24-1339
FY 2024-25 FY 2025-26
Department of Public Health and Environment
Personal Services $114,343 $23,098
Operating Expenses $1,664 $384
Capital Outlay Costs $6,670 -
Legal Services $12,802 $51,208
Centrally Appropriated Costs
1
$25,709 $5,625
FTE – Personal Services 1.3 FTE 0.3 FTE
FTE – Legal Services 0.1 FTE 0.2 FTE
CDPHE Subtotal $161,188 $80,315
Colorado Energy Office
Personal Services $58,225 -
Operating Expenses $512 -
Centrally Appropriated Costs
1
$10,460 -
FTE – Personal Services 0.4 FTE -
CEO Subtotal $69,197 -
Total Costs $230,385 $80,315
Total FTE 1.8 FTE 0.5 FTE
1
Centrally appropriated costs are not included in the bill's appropriation. Page 3
March 11, 2024 HB 24-1339
Department of Public Health and Environment. The bill increases expenditures to conduct
the required rulemaking, as described below. The rulemaking impacts are partially mitigated as
they affect previously scheduled rulemaking efforts on the same topics.
Staffing. CDPHE is conducting rulemaking on limiting emissions from industrial and
manufacturing sources in FY 2024-25, and ensuring that those efforts account for the bill’s
added requirements increases workload by 1.0 FTE in FY 2024-25 only. In addition, the
source-specific emissions reduction requirement pertaining to adversely affected
disproportionately impacted communities requires 0.3 FTE in FY 2024-25 and subsequent
years to liaise with disproportionately impacted communities for establishing adverse
impacts. Standard operating and capital outlay costs are included.
Legal services. CDPHE requires 100 hours of legal services in FY 2024-25 to conduct
rulemaking and 400 hours in subsequent years for general counsel and representation on
regulatory efforts. Legal services are provided by the Department of Law at a rate of
$128.02 per hour.
Information technology. CDPHE is currently implementing a greenhouse gas credit
tracking system. The bill increases workload to ensure that the system can track an emissions
allowances in line with the bill.
Colorado Energy Office. The office intervenes in rulemaking proceedings within its scope of
authority. It requires 0.4 FTE in FY 2024-25 only to meet with stakeholders, review draft rules,
and provide technical assistance. Standard operating and capital outlay costs are included.
Governor's Office. Workload will minimally increase for the Governor’s Office of Boards and
Commissions to make the required appointments under the bill. This work can be accomplished
within existing appropriations.
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 the amount of General Fund available for other purposes.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
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March 11, 2024 HB 24-1339
State Appropriations
For FY 2024-25, the bill requires the following General Fund appropriations:
$135,479 to the Department of Public Health and Environment, and 1.3 FTE. Of this, $12,802
is reappropriated to the Department of Law, with an additional 0.1 FTE; and
$58,737 to the Colorado Energy Office, and 0.4 FTE.
Departmental Difference
CDPHE estimates that the bill increases its costs by $883,248 and 2.8 FTE in FY 2024-25, and
$427,823 and 2.6 FTE in FY 2025-26. This estimate assumes that tracking the required emissions
reductions from the industrial and manufacturing sector requires ongoing effort. The fiscal note
instead assumes that existing appropriations for tracking these reductions are sufficient. CDPHE
also assumes that the revised definition of GHG credit in the bill mandates the department to
redesign the currently scoped database for tracking GHG credit trading, costing $546,475 in
system changes plus 1.3 FTE annually beginning in FY 2024-25. The fiscal note has not included
these costs for two reasons: there has not been adequate time to vet these costs, and there are
likely efficiencies to be gained since the system update is still underway and can be adjusted for
this requirement.
State and Local Government Contacts
Colorado Energy Office Governor's Office Law
Public Health and Environment
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.