Colorado Legislative Council Staff

STATE

REVISED FISCAL IMPACT

(Replaces fiscal impact dated January 15, 1999)

Drafting Number:

Prime Sponsor(s):

LLS 99-0536

Sen. Dennis

Rep. Taylor

Date:

Bill Status:

Fiscal Analyst:

April 22, 1999

House Transportation

Scott Nachtrieb (303-866-4752)

 

TITLE:            CONCERNING THE REMOVAL OF THE CLEAN VEHICLE FLEET PROGRAM FROM THE STATE IMPLEMENTATION PLAN FOR CARBON MONOXIDE, AND, IN CONNECTION THEREWITH, OPTING OUT OF THE FEDERAL PROGRAM AND MODIFYING PROGRAM COMPLIANCE CREDITS.



Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

Cash Fund

 

 

State Expenditures

Cash Fund


$51,675

 

FTE Position Change

0.4 Contract FTE

0.0 FTE

Other State Impact: None

Effective Date: Upon the Governor's signature

Appropriation Summary for FY 1999-2000: The Department of Public Health and Environment appropriations of $51,675 CF

Local Government Impact: None



Summary of Legislation


            This fiscal note has been revised to correct the funding source in the appropriations section. The bill would make the clean fuel fleet program a state program and allow the Department of Public Health and Environment (DPHE) to promulgate rules based on the federal program. The state would opt out of the federal program and the request pending Environmental Protection Agency (EPA) approval of the clean vehicle fleet program as an element of the Colorado State Implementation Plan (SIP) would be withdrawn. New rules would provide for vehicle-specific waivers, require a fleet operator to use certified fuels, and adopt state-only requirements adjusted to adapt to the Colorado environment.


            The Air Quality Control Commission would estimate emission reductions expected from the clean fuel vehicle fleet program that could substitute for those required by the federal program and submit the reductions for approval as part of Colorado's carbon monoxide SIP. Fleet operators would get partial compliance credits for conversion of vehicles under a modified version of the federal program compliance credit system. One-fifth of a credit would be given per vehicle converted between January 1, 1992, and August 31, 1995, if the fleet operator applies for the credits by December 31, 2000, and demonstrates that the vehicles have continuously and routinely been used as clean fuel vehicles within the nonattainment area for a specified period of time. The partial compliance credits would be limited to a total of fifty, the equivalent of ten vehicles in full compliance.



State Expenditures


            The bill would require the DPHE to:

 

               promulgate rules for the clean fleet program that are no more stringent than the federal rules;

               request that the clean vehicle fleet program be removed from the state SIP and Colorado opt out of the program;

               identify programs that would have comparable benefits to the clean fleet vehicle program; and

               develop a compliance credit program to award a person who purchased clean vehicles between January 1, 1992, and August 31, 1995.


            The fiscal impact to the DPHE would depend upon how much resistance and contention the department receives in each step of this process. Each of the elements identified above must be completed before the others can proceed. If the rule promulgation process becomes contentious and prolonged, other aspects of the bill would be set back. The more issues the department must address during each step would make the process more expensive and time consuming.


            For purposes of this fiscal note, it is assumed that the rule making will be narrowly constructed with no contentious issues or prolonged debate. It also assumes that the EPA will approve the requests the state makes in a timely manner. The department would then obtain information concerning alternative strategies and regulatory options in order to renegotiate the replacement SIP elements, requiring 480 hours of a contract FTE's time. The air quality benefit calculations and justification would need to be prepared, requiring 290 hours of contract time. The time to prepare, present, and negotiate the program change with the EPA is estimated to be 25 hours. The total contract time required to complete this process is estimated to be 795 hours at $65 an hour for a total cost of $51,675 and 0.4 contract FTE. Because the DPHE would contract for service, there is no need to authorize FTE.


State Appropriations


            This fiscal note implies that the Department of Public Health and Environment would require $51,675 cash funds from the AIR Account to implement the bill in FY 1999-00.


Departments Contacted


            Public Health and Environment