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July 9, 2024 SB 24-208
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-1096
Sen. Priola; Winter F.
Rep. Mauro; Rutinel
Date:
Bill Status:
Fiscal Analyst:
July 9, 2024
Deemed Lost
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 would have created the Electric Vehicle Enterprise in the Department of Labor
and Employment to inspect and verify that EV charging stations meet certain
standards, and would have allowed the enterprise to administer a fee on electric
vehicle charging retailers. It would have increased state expenditures beginning in FY
2024-25 and state revenue beginning in FY 2025-26.
Appropriation
Summary:
No appropriation was required as the Electric Vehicle Enterprise Special Revenue Fund
would have been continuously appropriated to the Department of Labor and
Employment.
Fiscal Note
Status:
The final fiscal note reflects the introduced bill, as amended by the Senate Finance
Committee. The bill was deemed lost on Senate Second Reading on May 9, 2024;
therefore, the impacts identified in this analysis do not take effect.
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 - $446,810 $446,810
Total Revenue - $446,810 $446,810
Expenditures Enterprise Cash Fund $220,352 $180,316 $375,125
Centrally Appropriated $13,339 $33,446 $51,384
Total Expenditures $233,691 $213,761 $426,509
Total FTE 0.9 FTE 1.9 FTE 2.9 FTE
Transfers
1
General Fund ($264,000) ($160,000) $164,558
Enterprise Cash Fund $264,000 $160,000 ($164,558)
Net Transfer $0 $0 $0
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. Page 2
July 9, 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 industry.
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 $446,000 per year beginning in FY 2025-26 until
all start-up costs and loans are repaid by FY 2028-29, and then a lesser amount, around
$320,000, 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
Annual Fee Impact Under SB 24-208
1
FY 2025-26 though FY 2028-29
Type of Fee
Proposed Fee Number of Ports Fee Impact
Electric Vehicle Charging Station Retailer Fee $130 3,437 $446,810
1
The fiscal note assumes the fee will be assessed on retailers on an annual basis, with retailers paying a fee based on
the total number of charging ports operated; however, the actual fee structure will be created through CDLE rule.
Future growth in charging station may reduce the per port fee amount over time.
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July 9, 2024 SB 24-208
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
FY 2027-28, the enterprise is projected to collect less than $100 million in fees and not require
voter approval.
State Transfers
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.
Corresponding transfers to the General Fund totaling about $493,675 over three years will be
made through FY 2028-29 to repay the initial loans and accumulated interest at an assumed
4.5 percent interest rate based on 10-year United States Treasury Note. Assuming repayment
starts in FY 2026-27, about $165,000 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 $234,000 in FY 2024-25, $214,000 in
FY 2025-26, and $427,000 in FY 2026-27 in the CDLE from the Electric Vehicle Enterprise Special
Revenue Fund. After initial start-up and loan repayment, the enterprise is expected to have
ongoing costs of around $320,000 per year starting in FY 2029-30. Expenditures are shown in
Table 2 and detailed below.
Table 2
Expenditures Under SB 24-208
1
FY 2024-25 FY 2025-26 FY 2026-27
Department of Labor and Employment
Personal Services $54,908 $132,069 $198,589
Operating Expenses $896 $2,304 $3,584
Capital Outlay Costs $13,340 - $6,670
EV Charging Testing Equipment $100,000 - $100,000
Travel and Vehicle Lease Costs - $20,339 $40,678
Legal Services $51,208 $25,604 $25,604
Centrally Appropriated Costs
2
$13,339 $33,446 $51,384
FTE – Personal Services 0.7 FTE 1.8 FTE 2.8 FTE
FTE – Legal Services 0.2 FTE 0.1 FTE 0.1 FTE
Total Cost $233,691 $213,761 $426,509
Total FTE 0.9 FTE 1.9 FTE 2.9 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
July 9, 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. To phase in the implementation of the
electric vehicle charging station program, CDLE requires 0.7 FTE beginning in FY 2024-25, 1.8
FTE in FY 2025-26, and 2.8 FTE in FY 2026-27 and ongoing years. Required staff are listed
below.
0.5 FTE project management staff will 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 and outreach functions to
support the goals and mission of the enterprise.
2.0 FTE inspection staff will inspect publicly accessible electric vehicle charging stations
to ensure they are meeting the standards set by the enterprise board. One inspector will
begin work in April 2025 prior to inspections starting in July 2025. This initial inspector
will begin inspections on an initial schedule as determined by the board, develop and
fine-tune procedures, and assist the board in establish a permanent inspection schedule
based on the results of inspections.
Based on the large number of charging stations located throughout the state, it is
assumed that additional inspection staff will be required and a second inspector will
begin work in July 2026. The exact number of staff will be determined by the enterprise,
based on the inspection schedule and rules established by the enterprise, and future
growth in the number of retail EV charging stations.
A one-time cost of $100,000 for testing equipment and supplies is included for each
inspector in the year when they start, as well as $10,000 for a vehicle lease, and $10,000
for annual travel costs.
0.3 FTE accounting staff will facilitate fee collection and accounting for the enterprise will
begin work starting in April 2025.
Legal services. The CDLE requires 400 hours of legal services (0.2 FTE) in FY 2024-25 and
200 hours (0.1 FTE) in ongoing years, 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. Page 5
July 9, 2024 SB 24-208
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.
Institutions of higher education and other state agencies. Institutions of higher education
and state agencies that own and operate EV charging stations may have additional costs to pay
the enterprise fee. It is assumed that any impact would be passed on through rates charged to
users by the institution, agency, or their contract EV station operator.
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.
Local Government
Similar to the state impact above, local governments that operate EV charging stations may
have additional costs to pay the enterprise fee. It is assumed that any impact would be passed
on through rates charged to users by local governments or their contract EV station operator.
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 Higher Education 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.