Page 1 February 23, 2024 SB 24-150 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 24-0619 Sen. Cutter Rep. Froelich Date: Bill Status: Fiscal Analyst: February 23, 2024 Senate Transportation & Energy Shukria Maktabi | 303-866-4720 shukria.maktabi@coleg.gov Bill Topic: PROCESSING OF MUNICIPAL SOLID WASTE Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☒ Local Government ☐ Statutory Public Entity The bill modifies laws around processing solid waste. It increases state and local expenditures beginning in FY 2024-25. Appropriation Summary: No appropriation is required. Fiscal Note Status: The fiscal note reflects the introduced bill. Summary of Legislation Starting July 1, 2024, the bill prohibits the use of units that incinerate municipal solid waste (incineration units), with some exceptions. As of January 1, 2025, the bill clarifies that these units do not meet state-set standards for recycling, clean energy, and other established programs. The bill also specifies that synthetic gas produced by the pyrolysis of waste materials is no longer considered an eligible energy resources under state renewable energy standards, and methane from the pyrolysis of waste is not considered recovered methane or a clean heat resource for clean heat plants. State Expenditures Workload will increase for the Department of Public Health and Environment to provide compliance assistance, perform inspections, and manage enforcement issues. The extent of this workload impact is expected to be minimal, as the fiscal note assumes that there are few incinerators in operation that are covered by the bill. See the Technical Note below. Page 2 February 23, 2024 SB 24-150 Local Government To the extent local governments operate incinerators or pyrolysis facilities, costs may increase to shift or adjust waste disposal methods. The fiscal note assumes these impacts will be minimal as not many operate these facilities currently. Technical Note Based on the definitions in the bill for incineration units, municipal solid waste, and plastic products, incinerators used in the state, such as crematories, air curtain incinerators, and police contraband incinerators, would be prohibited as they may burn small amounts of plastic waste. The fiscal note assumes this is not the intent of the bill and has not included any state costs. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. State and Local Government Contacts Counties Higher Education Local Affairs Municipalities Public Health and Environment 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.