Page 1 June 20, 2024 HB 24-1366 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Final Fiscal Note Drafting Number: Prime Sponsors: LLS 24-0978 Rep. Froelich; Brown Date: Bill Status: Fiscal Analyst: June 20, 2024 Deemed Lost Colin Gaiser | 303-866-2677 colin.gaiser@coleg.gov Bill Topic: SUSTAINABLE LOCAL GOVERNMENT COMMUNITY PLANNING Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☒ Local Government ☐ Statutory Public Entity The bill would have required the Colorado Energy Office to lead a study on local government green certification and sustainable community planning. It would have increased state and local expenditures in FY 2024-25 only. Appropriation Summary: For FY 2024-25, the bill would have required an appropriation of $100,000 to the Colorado Energy Office. Fiscal Note Status: The final fiscal note reflects the introduced bill, as amended by the House Transportation, Housing, and Local Government Committee. The bill was deemed lost in the House Appropriations Committee on May 9, 2024; therefore, the impacts identified in this analysis do not take effect. Table 1 State Fiscal Impacts Under HB 24-1366 Budget Year FY 2024-25 Out Year FY 2025-26 Revenue - - Expenditures General Fund $100,000 - Transfers - - Other Budget Impacts General Fund Reserve $15,000 - Page 2 June 20, 2024 HB 24-1366 Summary of Legislation By January 1, 2025, the bill requires the Colorado Energy Office (CEO) to collaborate with the Department of Local Affairs (DOLA) and the Department of Transportation (CDOT) to study: the feasibility of a system for local government green certification in which state agencies would prioritize awarding grants and funds to local governments with green certification; sustainable local government community plans, which must include goals and strategies related to various sustainability measures as well as a description of any money from federal, state, or local governments that the local government has received for implementing sustainability plans, goals, or strategies; and, how state agencies could assist local governments in developing and implementing sustainable local government plans. State Expenditures The bill increases General Fund expenditures in the CEO by $100,000 in FY 2024-25 only to contract with a vendor to conduct the required study. The CEO will incur minimal administrative costs to administer the study. Workload will also increase for the DOLA and CDOT to collaborate on the study with the CEO and the contracted vendor. Local Government The bill may increase workload for local governments to collaborate with CEO and other state agencies on the study. Workload may also increase in the future for local governments to develop, modify, or implement sustainable community plans. 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 90 days following adjournment of the General Assembly sine die, assuming no referendum petition is filed. Page 3 June 20, 2024 HB 24-1366 State Appropriations For FY 2024-25, the bill requires a General Fund appropriation of $100,000 to the Colorado Energy Office. State and Local Government Contacts Colorado Energy Office Local Affairs Transportation 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.