Page 1 April 4, 2024 SB 24-150 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Revised Fiscal Note (replaces fiscal note dated February 23, 2024) Drafting Number: Prime Sponsors: LLS 24-0619 Sen. Cutter; Michaelson Jenet Rep. Froelich Date: Bill Status: Fiscal Analyst: April 4, 2024 House Energy & Environment 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 revised fiscal note reflects the reengrossed bill. Summary of Legislation Starting July 1, 2024, the bill prohibits the use of units that combust municipal solid waste, 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 combustion units in operation that are covered by the bill. Page 2 April 4, 2024 SB 24-150 Local Government To the extent local governments operate combustion 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. 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.