SB 25-163
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-163: BATTERY STEWARDSHIP PROGRAMS
Prime Sponsors:
Sen. Cutter
Rep. Brown; Stewart R.
Published for: Senate Health & Human Services
Drafting number: LLS 25-0173
Fiscal Analyst:
Shukria Maktabi, 303-866-4720
shukria.maktabi@coleg.gov
Version: Initial Fiscal Note
Date: February 24, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill creates a program in the Department of Public Health and Environment for collecting
and recycling batteries.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures
State Revenue
Local Government
TABOR Refunds
Appropriations. For FY 2025-26, the bill requires an appropriation of $73,564 to the Department of Public
Health and Environment.
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 $129,983
State Expenditures $83,698 $129,983 $129,983
Transferred Funds $0 $0 $0
Change in TABOR Refunds $0 $0 $129,983
Change in State FTE 0.6 FTE 1.1 FTE 1.1 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
February 24, 2025 SB 25-163
Table 1A
State Revenue
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
General Fund $0 $0 $0
Cash Funds $0 $0 $129,983
Total Revenue $0 $0 $129,983
Table 1B
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
General Fund $73,564 $109,715 $0
Cash Funds $0 $0 $109,715
Federal Funds $0 $0 $0
Centrally Appropriated $10,134 $20,268 $20,268
Total Expenditures $83,698 $129,983 $129,983
Total FTE 0.6 FTE 1.1 FTE 1.1 FTE
Summary of Legislation
The bill creates the Battery Stewardship Program in the Department of Public Health and
Environment (CDPHE). The program requires producers of batteries and battery-containing
products (producers) to plan for the collection, transportation, processing, and recycling of the
batteries.
Battery Stewardship Plans
By July 1, 2026, nonprofit organizations, or producers directly, may submit battery stewardship
plans to the CDPHE for approval. The plan must establish battery collection and recycling
methods, including developing accessible battery collection sites, performance goals, and
outreach plans for program awareness. The organization must also charge a fee to producers
that participate in their plan to cover costs of the plan.
By August 1, 2026, producers must participate in an approved battery stewardship plan and pay
required fees to the organization, otherwise they may not sell or distribute the battery or
product in the state. By July 1, 2028, retailers cannot sell or distribute batteries or battery-
containing products unless the producer is in compliance. Organizations may provide retailers
with materials describing collection methods in their plan. Page 3
February 24, 2025 SB 25-163
By January 1, 2027, all batteries and battery-containing products must comply with new labeling
requirements, which include producer identification and disposal instructions.
Program Reporting & Fees
By July 1, 2027, battery stewardship organizations must complete an assessment of battery
management challenges and opportunities and submit a report to CDPHE. The organization
must also submit an annual report regarding their plan’s implementation to CDPHE.
Organizations must pay an annual fee to CDPHE within 12 months of collecting dues and by
each July 1 thereafter. Fees will be deposited into the new Battery Stewardship Fund to cover
program administration costs.
Penalties
Producers or organizations that violate requirements in the bill are liable for a civil penalty of
$7,000 per violation.
Assumptions
Timeline for Fee Revenue to CDPHE
Battery stewardship organizations can begin to collect fees once plans are approved by CDPHE.
As plans are required to be submitted by July 1, 2026, and CDPHE has 120 days to review and
approve plans, the fiscal note assumes plans will be effective November 2026. The bill requires
battery stewardship organizations to pay the CDPHE within 12 months of collecting dues and
each July 1 thereafter. As a result, the fiscal note assumes CDPHE will receive funding from fees
to support the program beginning in November 2027 (FY 2027-28).
State Revenue
Beginning in FY 2027-28, state revenue will increase in the Battery Stewardship Funds by
$129,983 annually from fees paid by battery stewardship organizations to CDPHE. It may also
increase court fees and penalty revenue. These impacts are discussed below.
Fee Impact on Battery Producers and Battery Stewardship Organizations
Colorado law requires legislative service agency review of measures which create or increase any
fee collected by a state agency. This measure increases fee revenue to the CDPHE by $129,983
per year from fees paid by battery stewardship organizations. This fee revenue is subject to
TABOR. Fee revenue is estimated in an amount necessary to cover the total administrative costs
of the program. Actual fees will be set administratively by CDPHE based on cash fund balance,
program costs, and the number of stewardship organizations subject to the fee. Page 4
February 24, 2025 SB 25-163
The bill will also increase fees paid by battery producers to battery stewardship organizations to
implement their stewardship plans. These fees are collected by private entities and not subject
to TABOR or received by the state.
Civil Penalties and Court Fees
State revenue may also increase for civil penalties from violations and increased civil case filings.
The fiscal note assumes that entities will comply with the law and fee revenue impacts will be
minimal. Fine revenue is not subject to TABOR.
State Expenditures
The bill increases state expenditures in the CDPHE by $84,000 in FY 2025-26 and $130,000 in
FY 2026-27 and ongoing years. These costs, paid from the General Fund initially until FY 2027-28
when cash funds are available, are summarized in Table 2 and discussed below. The bill also
minimally affects workload in the Judicial Department.
Table 2
State Expenditures
Department of Public Health and Environment
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
Personal Services $42,181 $84,362 $84,362
Operating Expenses $640 $1,280 $1,280
Capital Outlay Costs $6,670 $0 $0
Legal Services $24,073 $24,073 $24,073
Centrally Appropriated Costs $10,134 $20,268 $20,268
FTE – Personal Services 0.5 FTE 1.0 FTE 1.0 FTE
FTE – Legal Services 0.1 FTE 0.1 FTE 0.1 FTE
Total Costs $83,698 $129,983 $129,983
Total FTE 0.6 FTE 1.1 FTE 1.1 FTE
Department of Public Health and Environment
The department will have staff and legal services costs beginning in FY 2025-26 to implement
the bill. CDPHE requires General Fund support in FY 2025-26 and FY 2026-27, until expenditures
shift to the Battery Stewardship Cash Fund beginning in FY 2027-28, as described in the
Assumptions Section above. Page 5
February 24, 2025 SB 25-163
Staff
CDPHE requires 1.0 FTE beginning in FY 2025-26, for program implementation and ongoing
operations. This includes rulemaking, reviewing plans, and monitoring compliance. Standard
operating and capital outlay costs are included. Staff costs are prorated for a January 1, 2026
start date.
Legal Services
CDPHE requires 180 hour of legal services from the Department of Law for rulemaking and
enforcement for the program beginning in FY 2025-26.
Judicial Department
Trial court workload may increase for violations that require judicial review beginning in
FY 2026-27. The fiscal note assumes entities will generally comply with the law, and any impacts
will be minimal and can be accomplished within existing resources.
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.
TABOR Refunds
In years in which the state is above the Referendum C revenue limit, the bill will increase the
amount of state revenue required to be refunded to taxpayers by the amounts shown in the
State Revenue section above, starting in FY 2027-28. A forecast of state revenue subject to
TABOR is not available beyond FY 2026-27. Because TABOR refunds are paid from the General
Fund, increased cash fund revenue will reduce the amount of General Fund available to spend or
save.
Local Government
To the extent that local governments carry out battery recycling initiatives in their jurisdictions
currently, expenditures may decrease as battery stewardship organizations and producers
assume responsibility for battery collection and recycling. However, workload may also increase
for local governments that collaborate with organizations in implementing stewardship
programs. The impact will vary by local government. Page 6
February 24, 2025 SB 25-163
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 $73,564 to the Department of
Public Health and Environment and 0.5 FTE. Of this, $24,073 is reappropriated to the
Department of Law, with an additional 0.1 FTE.
State and Local Government Contacts
Counties
District Attorneys
Judicial
Law
Public Health and Environment
Treasury
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.