HB 25-1042
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1042: AIR QUALITY CONTROL REGULATION WORKFORCE IMPACT
Prime Sponsors:
Rep. Bird
Sen. Daugherty
Published for: House Energy & Environment
Drafting number: LLS 25-0256
Fiscal Analyst:
Shukria Maktabi, 303-866-4720
shukria.maktabi@coleg.gov
Version: Initial Fiscal Note
Date: January 23, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill creates a Workforce Advisory Council within the Department of Public Health and
Environment to examine air quality control rulemaking.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures
Appropriations. For FY 2025-26, the bill requires an appropriation of $202,364 to the Department of
Public Health and Environment.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $213,283 $86,247
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 1.1 FTE 0.6 FTE
1
Fund sources for these impacts are shown in the tables below.
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January 23, 2025 HB 25-1042
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $202,364 $75,328
Cash Funds $0 $0
Federal Funds $0 $0
Centrally Appropriated $10,919 $10,919
Total Expenditures $213,283 $86,247
Total FTE 1.1 FTE 0.6 FTE
Summary of Legislation
The bill creates a Workforce Advisory Council in the Department of Public Health and
Environment (CDPHE) to discuss changing the rulemaking process for air quality control rules to
include workforce impact analyses.
The bill outlines the council’s membership, requires at least four meetings to take place by
December 31, 2025, and requires the council to provide recommendations to the legislature by
January 15, 2026. The council must then continue to meet at least four times per year, advise
CDPHE on air quality rules and its impact on employment, and report on its activities during
annual CDPHE SMART Act hearings.
State Expenditures
The bill increases state expenditures in the Department of Public Health and Environment by
$213,000 in FY 2025-26 and $86,000 in FY 2026-27 and ongoing. These costs, paid from the
General Fund, are summarized in Table 2 and discussed below. The bill also minimally affects
workload in the Department of Labor and Employment.
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January 23, 2025 HB 25-1042
Table 2
State Expenditures
Department of Public Health and Environment
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $50,615 $50,615
Operating Expenses $640 $640
Capital Outlay Costs $6,670 $0
Legal Services $144,439 $24,073
Centrally Appropriated Costs $10,919 $10,919
FTE – Personal Services 0.5 FTE 0.5 FTE
FTE – Legal Services 0.6 FTE 0.1 FTE
Total Costs $213,283 $86,247
Total FTE 1.1 FTE 0.6 FTE
Staff
Beginning in FY 2025-26, CDPHE requires 0.5 FTE annually to support the advisory council by
conducting meetings, providing research and analytical support, and developing the council’s
recommendations and annual reports.
Currently, economic analyses that inform air quality control rulemaking do not explicitly assess
the impact of rules on labor and employment in affected industries. If the council recommends
that a full-time workforce advocate position is necessary, beginning in FY 2026-27, CDPHE will
require 1.0 FTE and approximately $109,000 annually to hire an Economist who will analyze labor
impacts of potential air quality control rules. This cost is not included in the fiscal note as it is
conditional on the council’s recommendation.
Legal Services
CDPHE also requires about 1,000 hour of legal services in FY 2025-26, and about 180 hours in
future years, to provide legal support to the council regarding air quality control
recommendations and new rulemaking procedures. Legal services are provided by the
Department of Law at a rate of $133.74 per hour, paid using reappropriated funds.
Other Agency Impacts
Workload will increase in the Department of Labor and Employment to participate in the council.
This workload is minimal and can be accomplished within existing resources. Page 4
January 23, 2025 HB 25-1042
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 may include
employee insurance, supplemental employee retirement payments, leased space, and indirect
cost assessments, are shown in the expenditure table(s) above.
Technical Note
The Stationary Sources Control Fund, which collects fees from stationary sources emitting air
pollutants, currently has insufficient revenue to support existing obligations. As a result, the
fiscal note assumes General Fund will be required to cover state expenditures for this bill. The
CDPHE currently has a decision item pending for the FY 2025-26 budget to improve the
solvency of this fund. Depending on future solvency and changes to fee structures, cash funds
may become available to cover expenditures beginning in FY 2027-28 or future years.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State Appropriations
For FY 2025-26, the bill requires a General Fund appropriation of $202,362 to the Department of
Public Health and Environment, and 0.5 FTE. Of this amount, $144,439 is reappropriated to the
Department of Law, with an additional 0.6 FTE.
State and Local Government Contacts
Labor
Law
Public Health and Environment
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.