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July 30, 2024 SB 24-150
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0619
Sen. Cutter; Michaelson Jenet
Rep. Froelich
Date:
Bill Status:
Fiscal Analyst:
July 30, 2024
Vetoed by Governor
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 would have modified laws around processing solid waste. It would have
increased state and local expenditures, and may have impacted state revenue,
beginning in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill required but did not include an appropriation of $100,000 to
the Office of Economic Development and International Trade.
Fiscal Note
Status:
The final fiscal note reflects the enrolled bill. This bill was vetoed by the Governor on
May 17, 2024; therefore, the impacts identified in this analysis do not take effect.
Table 1
State Fiscal Impacts Under SB 24-150
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 -
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July 30, 2024 SB 24-150
Summary of Legislation
The bill prohibits units that combust municipal solid waste from being eligible for any state
incentives that are not granted or awarded before January 1, 2025, 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. 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 $100,000 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 $100,000 in
FY 2024-25 only to contract to update the system platforms for each affected program to ensure
tax incentives are not applied to entities that qualify as a combustion unit. This estimate
assumes each program will require $10,000 each to update.
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.
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July 30, 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 Appropriations
For FY 2024-25, the bill requires a General Fund appropriation of $100,000 to the Office of
Economic Development. The General Assembly elected not to include this appropriation.
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.