HB 25-1267 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature HB 25-1267: SUPPORT FOR STATEWIDE ENERGY STRATEGIES Prime Sponsors: Rep. Paschal; McCormick Sen. Winter F.; Amabile Published for: House Energy & Environment Drafting number: LLS 25-0727 Fiscal Analyst: Matt Bishop, 303-866-4796 matt.bishop@coleg.gov Version: Initial Fiscal Note Date: February 28, 2025 Fiscal note status: The fiscal note reflects the introduced bill. Summary Information Overview. The bill creates minimum standards for retail electric vehicle charging stations. 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 $225,320 to the Department of Labor and Employment. Table 1 State Fiscal Impacts Type of Impact 1 Budget Year FY 2025-26 Out Year FY 2026-27 Out Year FY 2027-28 State Revenue $0 $0 $0 State Expenditures $248,396 $211,317 $418,985 Transferred Funds $0 $0 $0 Change in TABOR Refunds $0 $0 $0 Change in State FTE 1.2 FTE 1.7 FTE 2.7 FTE 1 Fund sources for these impacts are shown in the tables below. Page 2 February 28, 2025 HB 25-1267 Table 1A State Expenditures Fund Source Budget Year FY 2025-26 Out Year FY 2026-27 Out Year FY 2027-28 General Fund $0 $0 $0 Cash Funds $225,320 $182,472 $372,213 Federal Funds $0 $0 $0 Centrally Appropriated $23,076 $28,845 $46,772 Total Expenditures $248,396 $211,317 $418,985 Total FTE 1.2 FTE 1.7 FTE 2.7 FTE Summary of Legislation The bill directs the Division of Oil and Public Safety in the Department of Labor and Employment (CDLE) to adopt rules that determine minimum standards for retail electric vehicle charging, in consultation with the Colorado Energy Office. The rules must be adopted by July 1, 2026, and enforcement begins on July 1, 2027. State Expenditures The bill increases state expenditures in the Department of Labor and Employment by about $250,000 in FY 2025-26, $210,000 in FY 2026-27, and $420,000 in FY 2027-28 and ongoing. These costs, paid from the Electric Vehicle Grant Fund, are summarized in Table 2 and discussed below. The bill also minimally affects workload in the Colorado Energy Office. Department of Labor and Employment CDLE will have staff and legal services costs beginning in FY 2025-26 to implement the bill. Staff Workload ramps up over the first three years to develop and implement the standards. CDLE requires 1.5 FTE of administrative and inspection staff beginning in FY 2025-26 to survey existing charging infrastructure, develop the standards, and conduct rulemaking. Once enforcement commences in FY 2027-28, CDLE requires an additional 1.0 FTE to conduct additional compliance inspections. Standard operating and capital outlay costs are included, and costs in the first year are prorated for the bill’s effective date. Page 3 February 28, 2025 HB 25-1267 Testing Equipment and Travel The two inspections staff require additional capital and operating costs. Specialized equipment for testing electrical vehicle charging stations is estimated to cost $100,000, and will be required once for each inspector: in FY 2025-26 and FY 2027-28 only. Travel costs include a vehicle lease and related expenses for visiting retail charging locations around the state. Legal Services CDLE requires 30 hours of legal services in FY 2025-26 and 360 in subsequent years to conduct rulemaking and support enforcement activities. The cost in the first year can be absorbed within existing legal services appropriations. Legal services are provided by the Department of Law at a rate of $133.74 per hour. Table 2 State Expenditures Department of Labor and Employment Cost Component Budget Year FY 2025-26 Out Year FY 2026-27 Out Year FY 2026-27 Personal Services $87,844 $109,806 $168,997 Operating Expenses $1,536 $1,920 $3,200 Capital Outlay Costs $13,340 $0 $6,670 Testing Equipment $100,000 $0 $100,000 Travel $22,600 $22,600 $45,200 Legal Services $0 $48,146 $48,146 Centrally Appropriated Costs $23,076 $28,845 $46,772 FTE – Personal Services 1.2 FTE 1.5 FTE 2.5 FTE FTE – Legal Services 0.0 FTE 0.2 FTE 0.2 FTE Total Costs $248,396 $211,317 $418,985 Total FTE 1.2 FTE 1.7 FTE 2.7 FTE Colorado Energy Office The bill increases workload in the office to consult with CDLE during rulemaking. 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. Page 4 February 28, 2025 HB 25-1267 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 an appropriation of $225,320 and 1.2 FTE from the Electric Vehicle Grant Fund to the Colorado Energy Office, to be entirely reappropriated to the Department of Labor and Employment. State and Local Government Contacts Colorado Energy Office Labor and Employment Law 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.