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April 18, 2024 SB 24-150
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 16, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0619
Sen. Cutter; Michaelson Jenet
Rep. Froelich
Date:
Bill Status:
Fiscal Analyst:
April 18, 2024
House Finance
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, and may impact state revenue, beginning in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $208,000 to the Office of
Economic Development and International Trade.
Fiscal Note
Status:
The revised fiscal note reflects the reengrossed bill, as amended by the House Energy
and Environment Committee. It has been updated to reflect new information.
Table 1
State Fiscal Impacts Under SB 24-150
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $208,000 -
Transfers - -
Other Budget Impacts General Fund Reserve $31,200 -
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April 18, 2024 SB 24-150
Summary of Legislation
Starting January 1, 2025, the bill prohibits units that combust municipal solid waste from being
eligible for any state incentives, with some exceptions. 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 pyrolysis and gasification processes from incineration systems can be
regulated by municipalities and boards of county commissioners.
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 Revenue
The bill increases General Fund revenue from income and sales taxes by an indeterminate
amount. Beginning January 1, 2025, the bill makes combustion units ineligible for any state
"incentive" for which they would otherwise qualify. This may affect eligibility for tax expenditures
including, but not limited to: the advanced industry investment credit; the enterprise zone
investment tax credit; the enterprise zone research and experimental activities credit; the plastic
recycling investment credit; and the sales and use tax exemptions for components used in the
production of electricity from a renewable energy source, for energy used for industrial and
manufacturing purposes and for residential heat, light, and power, and for property used in
space flight. The amount by which revenue increases depends on how the restriction in the bill is
implemented. The potential increase affects income and sales tax revenue, which is subject to
TABOR.
State Expenditures
The bill increases state expenditures in the Office of Economic Development and International
Trade (OEDIT) by $208,000 in FY 2024-25 only, paid from the General Fund. It also minimally
increases workload in the CDPHE.
Office of Economic Development and International Trade. The bill affects eligible applicant
pools for at least 10 existing tax incentive programs. As such, OEDIT requires $208,000 in
FY 2024-25 only to contract a consultant to review all businesses currently receiving an incentive
through affected programs to ensure compliance under the new requirements. This estimate
assumes 1,040 hours of a contractor is required at $200 per hour. Workload will also minimally
increase to update the application process for each affected program to ensure compliance with
the new law.
Department of Public Health and Environment. Workload will increase 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 3
April 18, 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
Colorado Energy Office Counties Higher Education
Local Affairs Municipalities Public Health and Environment
Regulatory Agencies Revenue
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.