TITLE: CONCERNING THE APPLICATION OF STATE AIR QUALITY STANDARDS TO ACTIVITIES TAKING PLACE ON PUBLIC PROPERTY WITHIN THE STATE.

The bill, as amended by the Senate Health, Environment, Welfare, and Institutions Committee, (February 11, 1998, Senate Journal, page 214) would require that the state air quality and emission control implementation plan for property, facilities, and activities also be imposed upon public property, facilities, and activities. The Air Quality Control Commission would be required to conduct public hearings on all federal land management plans and comment and make recommendations to the plans relating to the discharge of air pollutants. The division would be required to review federal land management plans and provide the Commission with materials and options to ensure the federal land management plans meet state standards. No permit would be issued after January 1, 2000, unless the permit is consistent with the comments and recommendations of the Commission. Forest management and habitat management activities of federal or state land managers would be excluded from the term "agricultural operations” for the existing partial exemption from clean-air rules. These activities would be defined as "commercial" rather than "noncommercial" and allow penalties of $100 per day for noncommercial and $10,000 per day for commercial violations to be imposed for violating the bill. No permit for open burning would be issued by the division after July 1, 1999, unless the land management plan were reviewed by the Commission after a public hearing. The bill would become effective upon the Governor’s signature.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Cash Fund	$83,175	$79,735
State Expenditures General Fund Cash Fund Cash Fund Exempt (Department of Law) *	$83,175 $28,800	$79,735 $28,800
FTE Position Change	1.1 FTE	1.1 FTE
Local Government Impact — None

The bill would allow the Department of Public Health and Environment (DPHE) to assess fees to cover the cost of administering this program. It is assumed that each of the 42 U.S. District Forest Service Offices would seek an open burning permit. The permit fee in FY 1998-99 would be approximately $1,980 which would generate $83,175 in cash funds to DPHE. In FY 1999-2000, the estimated fee would be $1,898 which would generate approximately $79,735 in cash funds to the DPHE.

Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.

Under current law, the DPHE does not manage an open burning program nor do they conduct public hearings and make comments or make recommendations to federal land management plans. The DPHE would require 1.1 FTE and $83,175 in cash funds in FY 1998-99 for open burning permits program and the public hearings on federal land management plans. Personal services would be approximately 0.4 FTE Environmental Protection Specialist IV for public hearing preparation of land management plans, and 0.4 FTE Environmental Protection Specialist II for annual permit coordination and writing. Total personal services would be $45,773 CF, operating and travel would be $5,162 CF, capital outlay would be $3,440 CF, and legal services would be approximately $28,800 and 0.3 FTE in the Department of Law.

In FY 1999-2000, the estimated personal services for DPHE would be 0.8 FTE and $45,773 CF, operating and travel would be $5,162 CF, and legal services would be $28,800 and 0.3 FTE. Total program costs are estimated to be $79,735 CF in FY 1999-2000.

The Division of Wildlife (DOW) and the Division of Parks and Recreation (DPR) in the Department of Natural Resources (DNR) may also have additional expenditures as a result of this bill. Seventeen parks managed by DPR contain 37,600 acres of federal property. As a part of the DPR management, DPR may request a burn of an area on federal land. In addition, the DOW may request the U.S. Forest Service to burn land for habitat management. Should these state agencies request the federal agencies to conduct burns, it would be expected that the federal government would ask the state agency making the request to pay a portion or all of the costs involved. The amount of the additional cost to DNR has been estimated to be $2,500 per plan. The development of the plans would be contracted to private entities.

Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:

This fiscal note implies that the Department of Public Health and Environment would require 1.1 FTE and $83,175 in Cash Fund spending authority for FY 1998-99 to implement this bill. Of that amount, the Department of Law would require 0.3 FTE and $28,800 in cash fund exempt.

1. That there are 42 U.S. Forest Service District Offices in Colorado that would submit a land management plan.

3. That preparation for Commission hearings and review of plans submitted to the Commission would require 15 hours of review by the division.

Estimated DPHE Expenditures for SB 98-004 as amended
	FY 1998-99	FY 1999-2000
Personal Services	$45,773	$45,773
Operating Expenses	5,162	5,162
Legal Expenses	28,800	28,800
Non-recurring Expenses	3,440	0
Total Expenses	$83,175	$79,735