Air Quality Improvement Investments

Section 1 of the act creates the industrial and manufacturing operations clean air grant program (clean air grant program) through which the Colorado energy office (office) awards grant money to private entities, local governments, tribal governments, and public-private partnerships for voluntary projects to reduce air pollutants from industrial and manufacturing operations.

Voluntary projects eligible for grant money include:

• Energy efficiency projects;
• Renewable energy projects;
• Beneficial electrification projects;
• Transportation electrification projects;
• Projects producing or utilizing clean hydrogen;
• Projects involving carbon capture at industrial facilities and direct air capture projects;
• Methane capture projects;
• Projects producing or utilizing sustainable aviation fuel; and
• Industrial process changes that reduce emissions.

Starting in 2025, the office is required to report annually on the progress of the clean air grant program, submit the report to the legislative committees with jurisdiction over energy matters, and post the reports on the office's website.

On June 30, 2022, the state treasurer shall transfer $25 million from the general fund to the industrial and manufacturing operations clean air grant program cash fund, which fund is created in the act. The fund may also consist of money from federal sources and from gifts, grants, and donations. The money in the fund is continuously appropriated to the office for its administration of the clean air grant program. The office may use up to 9% of the money in the fund for its administrative costs in implementing the clean air grant program.

The clean air grant program is repealed on September 1, 2029.

Section 1 also creates the cannabis resource optimization cash fund, which fund the office is required to administer to provide financial incentives for energy and water use conservation and sustainability practices in cannabis operations. The state treasurer is directed to transfer $1.5 million from the general fund to the cannabis resource optimization cash fund on July 1, 2022.

Section 2 creates the community access to electric bicycles grant program (electric bicycles grant program) through which the office awards grant money to local governments, tribal governments, and nonprofit organizations that administer or plan to administer a bike share program or an ownership program for the provision of electric bicycles in a community. Section 2 also creates the community access to electric bicycles rebate program (rebate program) through which the office provides rebates for purchases of electric bicycles and equipment used for commuting purposes to individuals in low- and moderate-income households, businesses, or nonprofit organizations (program participants) or bicycle shops that sell electric bicycles to program participants at discounted prices.

Starting in 2025, the office is required to report annually on the progress of the electric bicycles grant program and the rebate program, submit copies of the report to the legislative committees with jurisdiction over transportation matters, and post the report on the office's website.

On June 30, 2022, the state treasurer shall transfer $12 million from the general fund to the community access to electric bicycles cash fund (fund), which fund is created in the act. The fund may also consist of money from federal sources and from gifts, grants, and donations. The money in the fund is continuously appropriated to the office for its administration of the electric bicycles grant program and the rebate program. The office may use up to 9% of the money in the fund for its administrative costs in implementing the electric bicycles grant program and the rebate program.

The electric bicycles grant program and the rebate program are repealed on September 1, 2028.

Section 3 creates the electrifying school buses grant program (school buses grant program) through which the department of public health and environment (department), with technical assistance from the office, awards grant money to school districts, including schools operated by tribal governments, and charter schools, or nonprofit partners acting on behalf of a school district or charter school, to help finance the procurement and maintenance of electric-powered school buses, the conversion of fossil-fuel-powered school buses to electric-powered school buses, charging infrastructure, and upgrades for electric charging infrastructure and the retirement of fossil-fuel-powered school buses. The department of education is authorized to provide assistance to school districts and charter schools in applying for or implementing a project funded with grant money.

Starting in 2025, and every odd-numbered year thereafter, the department is required to report on the progress of the school buses grant program, submit copies of the report to the legislative committees with jurisdiction over education, energy and environment, and transportation matters, and post copies of the report on its website.

On June 30, 2022, the state treasurer shall transfer $65 million from the general fund to the electrifying school buses grant program cash fund (electric school buses fund), which fund is created in the act. The electrifying school buses fund may also consist of money from federal sources and from gifts, grants, and donations. The money in the electrifying school buses fund is continuously appropriated to the department for its administration of the school buses grant program. The department may use up to 8% of the money in the electrifying school buses fund for its administrative costs in implementing the electrifying school buses grant program.

The school buses grant program is repealed on September 1, 2034.

Section 4 updates the definition of "federal act" regarding the reference to the federal "Clean Air Act". Section 4 also updates the definition of "issue" with respect to an order, permit, determination, or notice issued by the division of administration in the department (division), to remove certified mail and add electronic mail as options to issue such order, permit, determination, or notice.

Section 5 clarifies that the statutory fee caps for fees collected by the air quality enterprise apply only to the annual stationary source emission fees. The statutory fee caps are $1 million for state fiscal year 2021-22, $3 million for state fiscal year 2022-23, $4 million for state fiscal year 2023-24, and $5 million on and after July 1, 2024.

Section 6 removes the requirement that the division make the forms on which a person provides details necessary for filing an air pollution emission notice available at all of the air pollution control authority offices.

Section 7 authorizes a person to seek judicial review of the division's failure to grant or deny a renewable operating permit until the division grants or denies the permit and authorizes the division to contract with third parties to perform permit application reviews, air quality monitoring reviews, or other work to support the division's air quality permit programs.

Section 8 extends the time within which the air quality control commission must grant or deny a request for a hearing from within 15 days after the request was made to within 30 days after the request was made and, if granted, requires the commission to set the hearing no later than 90 days after its first regularly scheduled meeting following receipt of the hearing request.

Existing law authorizes the commission to submit any additions or changes to the state implementation plan (SIP) to the administrator of the federal environmental protection agency (administrator) for conditional or temporary approval pending legislative council review of the additions or changes. Section 9 authorizes the commission to submit the changes or additions to the administrator as a provisional submission, pending possible introduction and enactment of a bill to modify or delete all or a portion of the commission's additions or changes to the SIP.

Section 11 appropriates from the general fund:

• $750,000 to the department of personnel for the costs of issuing free annual eco passes to state employees; and
• $7,000,000 to the department to finance the aerial surveying of pollutants, $90,725 of which is reappropriated to the office of information technology in the governor's office to provide information technology services to the department.

Section 11 also appropriates $44,365 from the electrifying school buses grant program cash fund to the department of education to provide technical assistance to school districts and charter schools applying for grant money from the school buses grant program and implementing projects awarded grant money.

(Note: This summary applies to this bill as enacted.)