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March 25, 2024 HB 24-1370
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0411
Rep. Kipp; Willford
Date:
Bill Status:
Fiscal Analyst:
March 25, 2024
House Energy & Environment
Matt Bishop | 303-866-4796
matt.bishop@coleg.gov
Bill Topic: REDUCE COST OF USE OF NATURAL GAS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill allows local governments and certain utilities to develop neighborhood-scale
alternative energy projects. It increases state revenue, state expenditures, and local
expenditures beginning in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires appropriations totaling $73,328 to multiple state
agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1370
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $43,650 $30,958
Cash Funds $29,678 $115,041
Centrally Appropriated $13,624 $29,305
Total Expenditures $86,952 $175,304
Total FTE 0.6 FTE 1.3 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $6,547 $4,644
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March 25, 2024 HB 24-1370
Summary of Legislation
The bill establishes a process by which local governments and utilities that offer both electricity
and gas service can identify gas planning priority communities to explore neighborhood-scale
alternative energy projects.
The Colorado Energy Office (CEO) must issue a request for information to identify local
governments that could become a gas planning priority community. The CEO and applicable
utilities must file their proposals with the Public Utilities Commission (PUC) in the Department of
Regulatory Agencies. Once approved, utilities and local governments establish agreements
regarding priority communities and share certain information for planning purposes. An
approved community and its utility must rank projects and the utility must submit any projects it
opts to pursue to the PUC for approval by June 1, 2026. The bill establishes criteria for the PUC
to consider in approving these projects.
The utility may recover its costs for developing a project, and it must submit an annual report to
the PUC by June 1 of each year. The PUC must hold a proceeding to address how to integrate
neighborhood-scale alternative energy projects into the gas infrastructure planning process.
State Revenue
Administrative costs incurred by the PUC are paid from the Fixed Utility Fund, which receives an
annual assessment on the state's regulated utilities. Whenever additional expenses are incurred
against the fund, the assessment may be raised to increase revenue to cover these expenses.
The fiscal note assumes that the costs described in the State Expenditures section below can be
accomplished within existing funds. This revenue is subject to TABOR.
State Expenditures
The bill increases state expenditures in the CEO by about $50,000 in FY 2024-25 and $40,000 in
FY 2025-26 and FY 2026-27, paid from the General Fund, and in the PUC by about $30,000 in
FY 2024-25 and $140,000 in FY 2025-26 and ongoing, paid from the Fixed Utility Fund.
Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 24-1370
FY 2024-25 FY 2025-26
Colorado Energy Office
Personal Services $43,650 $30,958
Centrally Appropriated Costs
1
$9,093 $6,653
FTE – Personal Services 0.4 FTE 0.3 FTE
CEO Subtotal $52,743 $37,611 Page 3
March 25, 2024 HB 24-1370
Table 2
Expenditures Under HB 24-1370 (Cont.)
FY 2024-25 FY 2025-26
Public Utilities Commission
Personal Services $22,752 $113,761
Operating Expenses $256 $1,280
Capital Outlay Costs $6,670 -
Centrally Appropriated Costs
1
$4,531 $22,652
FTE – Personal Services 0.2 FTE 1.0 FTE
PUC Subtotal $34,209 $137,693
Total $86,952 $175,304
Total FTE 0.6 FTE 1.3 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Colorado Energy Office. The bill increases expenditures to issue the request for information, to
work with utilities and communities to develop project proposals, and to participate in PUC
proceedings, as applicable. This requires 0.4 FTE in FY 2024-25, decreasing to 0.3 FTE in
subsequent years until proceedings are concluded in FY 2026-27. Standard operating and
capital outlay costs are included.
Public Utilities Commission. The bill increases costs to evaluate and approve any submitted
projects, including holding a proceeding and soliciting public comments.
Staffing. These responsibilities require 1.0 FTE beginning May 1, 2025 until the conclusion
of any proceedings in FY 2026-27. Standard operating and capital outlay costs are included.
Legal services. The PUC will require legal services in any proceedings related to project
proposals in FY 2026-27, which depends on the number of projects proposed and is not
estimated here. If additional appropriations are required, it will be addressed through the
budget process. Legal services are provided by the Department of Law at a rate of
$128.02 per hour.
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.
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March 25, 2024 HB 24-1370
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.
Local Government
The bill increases workload in any local government that opts to explore neighborhood-scale
alternative energy projects.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State Appropriations
For FY 2024-25, the bill requires a General Fund appropriation of $43,650 to the Colorado
Energy Office, and 0.4 FTE.
For FY 2024-25, the bill requires an appropriation of $29,678 from the Fixed Utility Fund to the
Public Utilities Commission in the Department of Regulatory Agencies, and 0.2 FTE.
State and Local Government Contacts
Colorado Energy Office Counties Law
Regulatory Agencies
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.