HB 25-1118
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1118: CATALYTIC CONVERTER REPLACEM ENT EXEMPTION
Prime Sponsors:
Rep. Mauro; Mabrey
Published for: House Energy & Environment
Drafting number: LLS 25-0600
Fiscal Analyst:
Matt Bishop, 303-866-4796
matt.bishop@coleg.gov
Version: Initial Fiscal Note
Date: February 7, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. Through July 2027, the bill allows a vehicle to use a catalytic converter that complies with
federal standards instead of state standards if the vehicle’s catalytic converter has been stolen or fails.
Types of impacts. The bill is projected to affect the following areas through FY 2026-27:
State Expenditures
Appropriations. For FY 2025-26, the bill requires an appropriation of $278,624 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 $312,924 $249,297
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 1.8 FTE 2.0 FTE
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February 7, 2025 HB 25-1118
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $278,624 $206,422
Cash Funds $0 $0
Federal Funds $0 $0
Centrally Appropriated $34,300 $42,875
Total Expenditures $312,924 $249,297
Total FTE 1.8 FTE 2.0 FTE
Summary of Legislation
Currently, internal combustion engine vehicles in Colorado must have a catalytic converter that
meets state standards, which exceed standards set by the federal Environmental Protection
Agency (EPA). A catalytic converter is an element of a car’s exhaust system that makes exhaust
gas less polluting. The bill allows a vehicle to use a catalytic converter that complies with EPA
standards instead if the vehicle’s catalytic converter has been stolen or fails, any theft has been
reported to law enforcement, and the vehicle’s owner has made a reasonable effort to obtain a
replacement that complies with state standards. This exception repeals July 1, 2027.
State Expenditures
The bill increases state expenditures in the Department of Public Health and Environment by
about $310,000 in FY 2025-26 and $250,000 in FY 2026-27. 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 Revenue.
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February 7, 2025 HB 25-1118
Table 2
State Expenditures
Department of Public Health and Environment
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $155,090 $193,862
Operating Expenses $2,048 $2,560
Capital Outlay Costs $13,340 $0
Database $50,000 $10,000
Translation Services and Materials $10,000 $0
Legal Services $48,146 $0
Centrally Appropriated Costs $34,300 $42,875
FTE – Personal Services 1.6 FTE 2.0 FTE
FTE – Legal Services 0.2 FTE 0.0 FTE
Total Costs $312,924 $249,297
Total FTE 1.8 FTE 2.0 FTE
Department of Public Health and Environment
CDPHE will incur staff, information technology, and legal services costs in FY 2025-26 and
FY 2026-27 only.
Staff
CDPHE requires 2.0 FTE to conduct rulemaking, outreach, tracking, and enforcement of the
temporary policy in FY 2025-26 and FY 2026-27 only. Although these staff will not be required
once the exemption period ends, some workload may remain to respond to inquiries from repair
shops or the public. Staff costs in the first year are prorated to account for the bill’s effective
date. Standard operating and capital outlay costs are included.
Database
CDPHE requires $50,000 in FY 2025-26 and $10,000 in FY 2026-27 to develop a database for
tracking alternative catalytic converters.
Translation Services and Materials
In FY 2025-26 only, CDPHE requires additional operating costs associated with translation
services and materials, estimated at $10,000. Page 4
February 7, 2025 HB 25-1118
Legal Services
CDPHD requires 360 hours of legal services to conduct rulemaking in FY 2025-26 only. Legal
services are provided by the Department of Law at a rate of $133.74 per hour.
Other Agency Impacts
Workload may also increase in the Department of Revenue for the Division of Motor Vehicles
receive inquiries about the temporary requirements. This 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 may include
employee insurance, supplemental employee retirement payments, leased space, and indirect
cost assessments, are shown in the expenditure table above.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State Appropriations
For FY 2025-26, the bill requires a General Fund appropriation of $278,624 to the Department of
Public Health and Environment, and 1.6 FTE. Of this, $48,146 is reappropriated to the
Department of Law, with an additional 0.2 FTE.
State and Local Government Contacts
Law
Public Health and Environment
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.