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April 22, 2024 SB 24-208
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-1096
Sen. Priola; Winter F.
Rep. Mauro; Rutinel
Date:
Bill Status:
Fiscal Analyst:
April 22, 2024
Senate Finance
Colin Gaiser | 303-866-2677
colin.gaiser@coleg.gov
Bill Topic: CDLE REGULATION ELECTRICITY FOR ELECTRIC VEHICLES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates the Electric Vehicle Enterprise in the Department of Labor and
Employment to synchronize electric vehicle charging protocols, and allows the
enterprise to administer a fee on electric vehicle charging retailers. It increases state
expenditures beginning in FY 2024-25 and state revenue beginning in FY 2025-26.
Appropriation
Summary:
No appropriation is required as the Electric Vehicle Enterprise Special Revenue Fund is
continuously appropriated to the Department of Labor and Employment.
Fiscal Note
Status:
The fiscal note reflects the introduced bill. Due to time constraints, this analysis is
preliminary and will be updated following further review and any additional
information received.
Table 1
State Fiscal Impacts Under SB 24-208
Budget Year
FY 2024-25
Out Year
FY 2025-26
Out Year
FY 2026-27
Revenue Enterprise Cash Fund - $688,500 $688,500
Total Revenue - $688,500 $688,500
Expenditures Enterprise Cash Fund $313,831 $401,309 $401,309
Centrally Appropriated $40,530 $74,738 $74,738
Total Expenditures $354,361 $476,047 $476,047
Total FTE 2.4 FTE 4.3 FTE 4.3 FTE
Transfers
1
General Fund ($354,361) ($160,000) $197,819
Enterprise Cash Fund $354,361 $160,000 ($197,819)
Net Transfer $0 $0 $0
Other Budget Impacts
- - -
1
The bill transfers money in FY 2024-25 and FY 2025-26 from the General Fund to the enterprise to support the
enterprise before fee collection begins. This transfer is a loan that must be repaid to the General Fund by FY 2028-29. It
is assumed this repayment will occur evenly over three years from FY 2026-27 to FY 2028-29. As outlined in the
Technical Note section, the amount transferred by the bill in FY 2024-25 ($264,000) is less than the enterprise’s
estimated expenditures ($354,361). The fiscal note assumes the full amount required will be transferred. Page 2
April 22, 2024 SB 24-208
Summary of Legislation
The bill creates the Electric Vehicle Enterprise in the Department of Labor and Employment
(CDLE) to synchronize electric vehicle charging protocols. By July 1, 2025, the enterprise must
establish minimum standards related to specifications and tolerances for retail electric vehicle
charging equipment and methods of retail sale at publicly accessible electric vehicle charging
stations. The enterprise board consists of five members: a representative from the Division of Oil
and Safety in the CDLE, a representative from the Colorado Energy Office, and three
representatives from the electric vehicle community.
Beginning July 1, 2025, the enterprise may impose a fee on electric vehicle charging station
retailers based on the total number of stations operated by the retailer and the total number of
power supply devices used at each station. The bill also requires General Fund loans of $264,000
for FY 2024-25 and $160,000 for FY 2025-26 to be transferred to the Electric Vehicle Enterprise
Special Revenue Fund. By December 31, 2028, the enterprise must repay both loans with
accumulated interest.
State Revenue
The bill increases revenue in the CDLE by about $688,500 beginning in FY 2025-26 until initial
costs and loans are repaid by FY 2028-29, and then a lesser amount in future years. This revenue
is deposited to the Electric Vehicle Enterprise Special Revenue Fund and is not subject to the
state’s revenue limit under TABOR in years when the program qualifies as a state enterprise
under TABOR. Actual revenue may differ from these estimates based on the fee amounts set by
the enterprise and the actual number of EV charging stations.
Fee impact. Colorado law requires legislative service agency review of measures which create or
increase any fee collected by a state agency. These fee amounts are estimates only, actual fees
will be set administratively by the enterprise board based on cash fund balance, program costs,
and the number retailers subject to the fee. As of writing, there are 5,208 charging ports and
2,149 stations in the state. It is assumed two-thirds of these ports are retailer-owned and will be
assessed an inspection fee under the bill.
Table 2
Fee Impact Under SB 24-208
1
Fiscal Year Type of Fee
Proposed Fee Number of Ports Total Fee Impact
FY 2025-26 EV Retailer Fee $200 3,437 $688,500
FY 2026-27 EV Retailer Fee $200 3,437 $688,500
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The fiscal note assumes the fee will be assessed by port on an annual basis; however, the actual fee structure will
be created through CDLE rule. These fee impacts will be updated if additional information becomes available.
Voter approval of new state enterprises. Current law requires voter approval for a state
enterprise with projected or actual revenue from fees and surcharges over $100 million in its
first five fiscal years. The new enterprise in this bill will begin operating in FY 2024-25. Through Page 3
April 22, 2024 SB 24-208
FY 2027-28, the enterprise is projected to collect less than $100 million in fees and not require
voter approval.
State Transfers
As drafted, the bill transfers $264,000 in FY 2024-25 and $160,000 in FY 2025-26 from the
General Fund to the Electric Vehicle Enterprise Special Revenue Fund. However, the fiscal note
estimates that a transfer of $354,361 is required in the first year (see Technical Note).
Corresponding transfers to the General Fund totaling about $593,000 ($514,361 plus
accumulated interest at an assumed 4.5 percent interest rate based on 10-year United States
Treasury Note) will be made through FY 2028-29 to repay the initial loans. Assuming repayment
starts in FY 2026-27, about $198,000 per year will be transferred from the enterprise fund to the
General Fund for three years. Actual repayment amounts and timing may vary depending on
decisions by the enterprise.
State Expenditures
The bill increases state cash fund expenditures by $354,000 in FY 2024-25 and $476,000 in
FY 2025-26 and ongoing in the CDLE from the Electric Vehicle Enterprise Special Revenue Fund.
Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under SB 24-208
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FY 2024-25 FY 2025-26 FY 2026-27
Department of Labor and Employment
Personal Services $170,184 $297,902 $297,902
Operating Expenses $2,688 $5,120 $5,120
Capital Outlay Costs $33,350 - -
-
EV Charging Testing Equipment $50,000 - -
Travel & Vehicle Lease Costs - $40,678 $40,678
Legal Services $57,609 $57,609 $57,609
Centrally Appropriated Costs
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$40,530 $74,738 $74,738
FTE – Personal Services 2.1 FTE 4.0 FTE 4.0 FTE
FTE – Legal Services 0.3 FTE 0.3 FTE 0.3 FTE
Total Cost $354,361 $476,047 $476,047
Total FTE 2.4 FTE 4.3 FTE 4.3 FTE
1
Table 2 does not show loan repayments by the enterprise. These amounts are discussed in the State Transfers
section above.
2
Centrally appropriated costs are not included in the bill's appropriation. Page 4
April 22, 2024 SB 24-208
Electric Vehicle Enterprise. The bill increases costs in the Electric Vehicle Enterprise in the CDLE
starting in FY 2024-25. These costs are for staff to administer the enterprise and perform
inspections on electric vehicle charging stations, as outlined below. Standard operating and
capital outlay costs are included for all staff.
Enterprise administration and inspection staff. The CDLE requires 1.5 FTE in beginning
July 1, 2024, and an additional 2.5 FTE beginning April 1, 2025, to administer and support the
enterprise. This includes:
1.5 FTE of project management and assistant staff to begin work in July 2024 to establish
policies and procedures for the electric vehicle charging station inspection program,
provide support to the enterprise board, and perform other administrative functions to
support the goals and mission of the enterprise;
2.0 inspection staff to inspect publicly accessible electric vehicle charging stations to
ensure they are meeting the standards set by the enterprise board. The fiscal note
assumes inspection staff will inspect each charging station once every two years, and
that each inspector can perform 3 to 4 inspections per day. A one-time cost of $25,000
for testing equipment and supplies is included for each inspector, as well as $10,000 for
a vehicle lease, and $10,000 for annual travel costs; and
0.5 FTE of accountant staff for the enterprise will begin work starting in April 2025.
Legal services. The CDLE requires 450 hours of legal services, which equates to 0.3 FTE,
beginning FY 2024-25 to provide general counsel support on new rules and regulations,
implementation and administration of the new fee, regulatory oversight, and any litigation
as a result of the bill. Legal services are provided by the Department of Law at a rate of
$128.02 per hour.
Enterprise board. The bill requires the CDLE to support the enterprise board. The fiscal note
assumes this work will be accomplished by program staff. A representative of the Division of
Oil and Public Safety will serve on the enterprise board within existing resources.
Colorado Energy Office. The bill requires a representative of the Colorado Energy Office to
serve on the enterprise board. This workload increase is expected to be minimal and can be
accomplished within existing resources.
Governor's Office. Workload will minimally increase for the Governor’s Office of Boards and
Commissions to make the required appointment under the bill. This work can be accomplished
within existing appropriations.
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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April 22, 2024 SB 24-208
Technical Note
The bill specifies the amount of the General Fund loan for FY 2024-25 at $264,000; however, this
amount is insufficient to cover the first-year costs identified in this fiscal note. To match the
fiscal note’s estimate, the amount transferred from the General Fund to the enterprise in
FY 2024-24 should be $354,361. The fiscal note assumes that this amount will be transferred;
otherwise additional General Fund appropriations would be required and these additional
appropriations, unlike the transfer in the bill, would not be repaid by the enterprise.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State and Local Government Contacts
Energy Office Labor and Employment Law
Judicial
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.