Second Regular Session Seventy-third General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 22-0910.02 Megan Waples x4348 SENATE BILL 22-180 Senate Committees House Committees Transportation & Energy Appropriations A BILL FOR AN ACT C ONCERNING PROGRAMS TO REDUCE GROUND LEVEL OZONE THROUGH101 INCREASED USE OF TRANSIT.102 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill creates the ozone season transit grant program (program) in the Colorado energy office (office). The program provides grants to the regional transportation district (RTD) and transit associations in order to provide free transit services for at least 30 days during ozone season. A transit association receiving a grant may use the money to make grants to eligible transit agencies. The eligible transit agencies may use the money SENATE 3rd Reading Unamended April 20, 2022 SENATE Amended 2nd Reading April 14, 2022 SENATE SPONSORSHIP Winter and Hinrichsen, Buckner, Danielson, Fenberg, Jaquez Lewis, Lee, Moreno, Pettersen, Story HOUSE SPONSORSHIP Gray and Bacon, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. to provide at least 30 days of new or expanded free transit services during ozone season. The RTD may use grant money to cover up to 80% of the costs of providing free transit for at least 30 days on all services offered by the RTD during ozone season. Eligible transit agencies and the RTD can use the money to cover lost fare box revenues and to pay for other expenses necessary to implement the program, including expenses associated with an increase in ridership as a result of the program. The RTD and a transportation association receiving a grant are required to report to the office on the services offered and estimates of the change in ridership as a result of the program. The office is required to establish policies governing the program and to report to the house and senate transportation committees by December 31 of each year of the program. The program is repealed, effective July 1, 2024. The transit and rail division (division) in the department of transportation is required to create a 3-year pilot project to extend state-run transit services throughout the state with the goals of reducing ground level ozone, increasing ridership, and reducing vehicle miles traveled in the state. The division is required to report to the transportation legislation review committee on the pilot project. The pilot project is repealed, effective July 1, 2026. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 hereby finds and declares that:3 (a) Ground level ozone poses health risks to all Coloradans,4 especially to vulnerable populations including the elderly, young children,5 and people with asthma or other respiratory diseases;6 (b) The negative effects of ozone exposure include pain when7 breathing deeply, coughing, sore throat, and inflamed or damaged8 airways;9 (c) Ozone exposure can also exacerbate existing respiratory10 conditions including asthma, emphysema, and chronic bronchitis and may11 be a potential cause of asthma;12 (d) Ozone is one of the most common ambient air pollutants along13 180-2- the front range of Colorado;1 (e) Ground level ozone forms when chemical reactions occur2 between nitrogen emitted from cars and other sources and volatile organic3 compounds in the presence of sunlight, making levels highest during the4 summer months;5 (f) Colorado's ozone season, which runs from June 1 through6 August 31, poses significant health risks to Colorado's vulnerable7 residents and can force individuals to restrict their daily activities and stay8 indoors on days with high ozone levels;9 (g) Reducing ground traffic and encouraging the use of public10 transit can help lower ozone-forming emissions and thereby reduce11 ground level ozone during the ozone season;12 (h) Reducing ground level ozone serves an important public13 interest by protecting the health and well being of all Coloradans,14 especially those who are vulnerable to the negative impacts of ozone15 exposure;16 (i) Offering free transit has increased transit use in other17 communities and can help rebuild ridership following the COVID-1918 pandemic; and19 (j) Creating a grant program to provide free public transit during20 ozone season will promote public health and serve the interests of all21 Coloradans.22 SECTION 2. In Colorado Revised Statutes, add 24-38.5-113 as23 follows:24 24-38.5-113. Ozone season transit grant program - fund -25 creation - policies - report - definitions - repeal. (1) A S USED IN THIS26 SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :27 180 -3- (a) "ELIGIBLE TRANSIT AGENCY" MEANS AN ENTITY THAT IS:1 (I) A REGIONAL SERVICE AUTHORITY PROVIDING SURFACE2 TRANSPORTATION PURSUANT TO PART 1 OF ARTICLE 7 OF TITLE 32, A3 REGIONAL TRANSPORTATION AUTHORITY CREATED PURSUANT TO PART 64 OF ARTICLE 4 OF TITLE 43, OR ANY OTHER POLITICAL SUBDIVISION OF THE5 STATE, PUBLIC ENTITY, OR NONPROFIT CORPORATION PROVIDING MASS6 TRANSPORTATION SERVICES TO THE GENERAL PUBLIC OTHER THAN THE7 REGIONAL TRANSPORTATION DISTRICT ; AND8 (II) E LIGIBLE TO RECEIVE MONEY UNDER A GRANT AUTHORIZED BY9 49 U.S.C. SEC. 5307 OR 49 U.S.C. SEC. 5311.10 (b) "F UND" MEANS THE OZONE SEASON TRANSIT GRANT PROGRAM11 FUND ESTABLISHED IN SUBSECTION (8) OF THIS SECTION.12 (c) "O FFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN13 SECTION 24-38.5-101.14 (d) "O ZONE SEASON" MEANS THE PERIOD FROM JUNE 1 TO AUGUST15 31 OF A CALENDAR YEAR.16 (e) "P ROGRAM" MEANS THE OZONE SEASON TRANSIT GRANT17 PROGRAM CREATED IN SUBSECTION (2) OF THIS SECTION.18 (f) "R EGIONAL TRANSPORTATION DISTRICT " MEANS THE REGIONAL19 TRANSPORTATION DISTRICT ESTABLISHED IN ARTICLE 9 OF TITLE 32.20 (g) "T RANSIT ASSOCIATION" MEANS A COLORADO NONPROFIT21 CORPORATION FORMED TO REPRESENT TRANSIT INTERESTS IN COLORADO22 WHOSE MEMBERSHIP INCLUDES TRANSIT AGENCIES , TRANSIT-RELATED23 BUSINESSES, AND GOVERNMENTAL ENTITIES .24 (2) T HE OZONE SEASON TRANSIT GRANT PROGRAM IS CREATED IN25 THE OFFICE. THE PURPOSES OF THE PROGRAM ARE :26 (a) T O PROVIDE GRANTS TO TRANSIT ASSOCIATIONS FOR THE27 180 -4- PURPOSE OF PROVIDING GRANTS TO ELIGIBLE TRANSIT AGENCIES IN ORDER1 TO OFFER FREE TRANSIT SERVICES FOR A MINIMUM OF THIRTY DAYS2 DURING OZONE SEASON; AND3 (b) T O PROVIDE GRANTS TO THE REGIONAL TRANSPORTATION4 DISTRICT FOR THE PURPOSE OF PROVIDING FREE TRANSPORTATION5 SERVICES FOR A MINIMUM OF THIRTY DAYS DURING OZONE SEASON .6 (3) T HE OFFICE SHALL ADMINISTER THE PROGRAM AND AWARD7 GRANTS IN ACCORDANCE WITH THIS SECTION AND THE POLICIES8 DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION (6) OF THIS9 SECTION. SUBJECT TO AVAILABLE APPROPRIATIONS , GRANTS SHALL BE10 PAID OUT OF THE FUND.11 (4) T O RECEIVE A GRANT, A TRANSIT ASSOCIATION OR THE12 REGIONAL TRANSPORTATION DISTRICT MUST SUBMIT AN APPLICATION TO13 THE OFFICE IN ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION14 AND THE POLICIES ESTABLISHED BY THE OFFICE IN ACCORDANCE WITH15 SUBSECTION (6) OF THIS SECTION. THE OFFICE MAY AWARD GRANTS OF UP16 TO THREE MILLION DOLLARS EACH YEAR TO A TRANSIT ASSOCIATION AND17 UP TO ELEVEN MILLION DOLLARS EACH YEAR TO THE REGIONAL18 TRANSPORTATION DISTRICT.19 (5) A GRANT RECIPIENT MAY USE THE GRANT MONEY AS FOLLOWS :20 (a) (I) A TRANSIT ASSOCIATION THAT RECEIVES A GRANT MAY USE21 THE MONEY TO ESTABLISH A GRANT PROGRAM FOR ELIGIBLE TRANSIT22 AGENCIES IN ACCORDANCE WITH THIS SECTION . A TRANSIT ASSOCIATION23 MAY USE A PORTION OF THE GRANT MONEY TO PAY ITS DIRECT AND24 INDIRECT COSTS IN ADMINISTERING THE GRANT PROGRAM .25 (II) T O RECEIVE A GRANT FROM THE TRANSIT ASSOCIATION , AN26 ELIGIBLE TRANSIT AGENCY MUST SUBMIT AN APPLICATION TO THE TRANSIT27 180 -5- ASSOCIATION. AT A MINIMUM, THE APPLICATION MUST DESCRIBE THE FREE1 TRANSIT SERVICES THAT WILL BE PROVIDED OR EXPANDED WITH THE2 GRANT MONEY, INDICATE TO WHAT EXTENT THE ELIGIBLE TRANSIT3 AGENCY WILL MATCH THE GRANT MONEY WITH OTHER MONEY , AND4 COMMIT TO PROVIDING THE NEW OR EXPANDED FREE SERVICES FOR AT5 LEAST THIRTY DAYS DURING THE OZONE SEASON .6 (III) A N ELIGIBLE TRANSIT AGENCY THAT RECEIVES A GRANT7 THROUGH THE TRANSIT ASSOCIATION MAY USE THE MONEY TO COVER THE8 COSTS ASSOCIATED WITH PROVIDING NEW OR EXPANDED FREE TRANSIT9 SERVICES WITHIN ITS SERVICE AREA DURING OZONE SEASON , INCLUDING10 OFFERING ADDITIONAL FREE ROUTES OR EXPANDING SERVICE ON ROUTES11 FOR WHICH THE ELIGIBLE TRANSIT AGENCY CURRENTLY OFFERS FREE12 SERVICE. GRANT MONEY MAY BE USED TO REPLACE FARE BOX REVENUE13 AND TO PAY FOR OTHER EXPENSES NECESSARY TO IMPLEMENT THE14 PROGRAM, INCLUDING EXPENSES ASSOCIATED WITH AN INCREASE IN15 RIDERSHIP AS A RESULT OF THE PROGRAM .16 (IV) A N ELIGIBLE TRANSIT AGENCY SHALL NOT USE GRANT MONEY17 TO OFFSET OR REPLACE FUNDING FOR FREE TRANSIT SERVICES THAT THE18 ELIGIBLE TRANSIT AGENCY OFFERED AS OF JANUARY 1, 2022.19 (V) I N AWARDING GRANTS UNDER THIS SUBSECTION (5)(a), THE20 TRANSIT ASSOCIATION SHALL:21 (A) A LLOCATE MONEY AMONG APPLICANTS WITH THE GOALS OF22 REDUCING OZONE FORMATION , INCREASING RIDERSHIP ON TRANSIT, AND23 REDUCING VEHICLE MILES TRAVELED IN THE STATE ; AND24 (B) C ONSIDER THE EXTENT TO WHICH THE APPLICANT WILL MATCH25 GRANT MONEY WITH OTHER MONEY .26 (VI) E ACH ELIGIBLE TRANSIT AGENCY THAT RECEIVES A GRANT27 180 -6- SHALL REPORT ON THE USE OF THE MONEY TO THE TRANSIT ASSOCIATION1 IN ACCORDANCE WITH POLICIES ESTABLISHED BY THE TRANSIT2 ASSOCIATION AND THE OFFICE . THE REPORT MUST INCLUDE , AT A3 MINIMUM, INFORMATION ON HOW THE GRANT MONEY WAS SPENT ; THE4 FREE SERVICES THAT WERE OFFERED USING THE GRANT MONEY ; AND5 ESTIMATES OF THE CHANGE IN RIDERSHIP DURING THE PERIOD THAT FREE6 SERVICES WERE OFFERED COMPARED TO PREVIOUS MONTHS , THE SAME7 MONTH IN PREVIOUS YEARS , AND THE MONTHS AFTER THE PROGRAM8 CONCLUDED. THE REPORT MAY INCLUDE ADDITIONAL INFORMATION ,9 INCLUDING A NARRATIVE ANALYSIS , TO PROVIDE CONTEXT ON THE10 RIDERSHIP DATA INCLUDED IN THE REPORT . ON OR BEFORE DECEMBER 111 OF EACH YEAR OF THE GRANT PROGRAM , THE TRANSIT ASSOCIATION SHALL12 SUBMIT A REPORT TO THE OFFICE COMPILING AND SUMMARIZING THE13 REPORTED INFORMATION FOR ALL ELIGIBLE TRANSIT AGENCIES THAT14 RECEIVED A GRANT THROUGH THE TRANSIT ASSOCIATION .15 (VII) A TRANSIT ASSOCIATION RECEIVING A GRANT SHALL16 DEVELOP AND PUBLICIZE POLICIES FOR THE GRANT , INCLUDING THE17 PROCESS AND DEADLINES FOR AN ELIGIBLE TRANSIT AGENCY TO APPLY FOR18 AND RECEIVE A GRANT , THE INFORMATION AND DOCUMENTATION19 REQUIRED FOR THE APPLICATION , REPORTING REQUIREMENTS AND20 DEADLINES, AND ANY ADDITIONAL REQUIREMENTS NECESSARY TO21 ADMINISTER THE GRANT.22 (b) (I) T HE REGIONAL TRANSPORTATION DISTRICT MAY USE GRANT23 MONEY TO COVER UP TO EIGHTY PERCENT OF THE COSTS OF PROVIDING AT24 LEAST THIRTY DAYS OF FREE TRANSIT ON ALL SERVICES OFFERED BY THE25 REGIONAL TRANSPORTATION DISTRICT . GRANT MONEY MAY BE USED TO26 REPLACE FARE BOX REVENUE AND TO PAY FOR OTHER EXPENSES27 180 -7- NECESSARY TO IMPLEMENT THE PROGRAM , INCLUDING EXPENSES1 ASSOCIATED WITH AN INCREASE IN RIDERSHIP AS A RESULT OF THE2 PROGRAM.3 (II) O N OR BEFORE DECEMBER 1 OF EACH YEAR FOR WHICH THE4 REGIONAL TRANSPORTATION DISTRICT RECEIVES A GRANT , THE REGIONAL5 TRANSPORTATION DISTRICT SHALL SUBMIT A REPORT TO THE OFFICE ON6 THE IMPLEMENTATION OF THE PROGRAM IN ACCORDANCE WITH THE7 POLICIES ESTABLISHED BY THE OFFICE. AT A MINIMUM, THE REPORT MUST8 INCLUDE INFORMATION ON HOW THE GRANT MONEY WAS SPENT ; THE FREE9 SERVICES THAT WERE OFFERED USING THE GRANT MONEY ; AND ESTIMATES10 OF THE CHANGE IN RIDERSHIP DURING THE PERIOD THAT FREE SERVICES11 WERE OFFERED COMPARED TO PREVIOUS MONTHS , THE SAME MONTH IN12 PREVIOUS YEARS, AND THE MONTHS AFTER THE PROGRAM CONCLUDED .13 T HE REPORT MAY INCLUDE ADDITIONAL INFORMATION , INCLUDING A14 NARRATIVE ANALYSIS, TO PROVIDE CONTEXT ON THE RIDERSHIP DATA15 INCLUDED IN THE REPORT.16 (III) T HE STATE AUDITOR SHALL AUDIT THE REGIONAL17 TRANSPORTATION DISTRICT'S USE OF THE GRANT MONEY AS PART OF ITS18 NEXT PERFORMANCE AUDIT OF THE REGIONAL TRANSPORTATION DISTRICT19 CONDUCTED PURSUANT TO SECTION 32-9-115 (3).20 (6) T HE OFFICE SHALL ESTABLISH AND PUBLICIZE POLICIES FOR THE21 PROGRAM. AT A MINIMUM, THE POLICIES MUST ADDRESS THE PROCESS AND22 ANY DEADLINES FOR APPLYING FOR AND RECEIVING A GRANT UNDER THE23 PROGRAM, THE INFORMATION AND DOCUMENTATION REQUIRED FOR THE24 APPLICATION, REPORTING REQUIREMENTS AND DEADLINES , AND ANY25 ADDITIONAL POLICIES NECESSARY TO ADMINISTER THE PROGRAM .26 (7) T HE OFFICE MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS,27 180 -8- OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF1 THIS SECTION. THE OFFICE SHALL TRANSMIT ALL MONEY RECEIVED2 THROUGH GIFTS, GRANTS, OR DONATIONS TO THE STATE TREASURER, WHO3 SHALL CREDIT THE MONEY TO THE FUND .4 (8) (a) T HE OZONE SEASON TRANSIT GRANT PROGRAM FUND IS5 HEREBY CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF6 MONEY TRANSFERRED TO THE FUND IN ACCORDANCE WITH SUBSECTION7 (8)(d) OF THIS SECTION, ANY OTHER MONEY THAT THE GENERAL ASSEMBLY8 APPROPRIATES OR TRANSFERS TO THE FUND , AND ANY GIFTS, GRANTS, OR9 DONATIONS CREDITED TO THE FUND PURSUANT TO SUBSECTION (7) OF THIS10 SECTION.11 (b) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND12 INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE13 FUND TO THE FUND.14 (c) M ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE15 OFFICE FOR THE PURPOSES SPECIFIED IN THIS SECTION.16 (d) T HREE DAYS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION17 (8)(d), THE STATE TREASURER SHALL TRANSFER TWENTY -EIGHT MILLION18 DOLLARS FROM THE GENERAL FUND TO THE FUND.19 (9) O N OR BEFORE DECEMBER 31 OF EACH YEAR OF THE PROGRAM,20 THE OFFICE SHALL SUBMIT A REPORT ON THE IMPLEMENTATION OF THE21 PROGRAM TO THE HOUSE OF REPRESENTATIVES TRANSPORTATION AND22 LOCAL GOVERNMENT COMMITTEE AND THE SENATE TRANSPORTATION AND23 ENERGY COMMITTEE, OR THEIR SUCCESSOR COMMITTEES . THE REPORT24 MUST SUMMARIZE AND COMPILE THE INFORMATION SUBMITTED TO THE25 OFFICE PURSUANT TO SUBSECTIONS (5)(a)(VI) AND (5)(b) OF THIS SECTION.26 (10) T HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2024.27 180 -9- SECTION 3. In Colorado Revised Statutes, 43-1-117.5, add (4)1 as follows:2 43-1-117.5. Transit and rail division - created - powers and3 duties - pilot project to expand transit - repeal. (4) (a) T HE TRANSIT4 AND RAIL DIVISION SHALL ESTABLISH A PILOT PROJECT , BEGINNING NO5 LATER THAN JULY 1, 2022, AND CONCLUDING ON JUNE 30, 2025, FOR THE6 EXTENSION OF STATE-RUN TRANSIT SYSTEMS. THE GOALS OF THE PILOT7 PROJECT ARE TO INCREASE RIDERSHIP ON STATE -RUN TRANSIT, REDUCE8 VEHICLE MILES TRAVELED IN THE STATE , AND REDUCE GROUND LEVEL9 OZONE IN THE STATE.10 (b) O N OR BEFORE DECEMBER 1, 2023, AND ON OR BEFORE11 D ECEMBER 1 OF EACH YEAR THROUGH 2025, THE TRANSIT AND RAIL12 DIVISION SHALL REPORT TO THE TRANSPORTATION LEGISLATION REVIEW13 COMMITTEE CREATED IN SECTION 43-2-145 ON THE IMPLEMENTATION OF14 THE PILOT PROJECT, INCLUDING INFORMATION ON THE SERVICES THAT ARE15 EXPANDED OR EXTENDED AND ESTIMATES OF THE INCREASED RIDERSHIP16 AS A RESULT OF THE PILOT PROJECT.17 (c) T HREE DAYS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION18 (4), THE STATE TREASURER SHALL TRANSFER THIRTY MILLION DOLLARS19 FROM THE GENERAL FUND TO THE STATE HIGHWAY FUND CREATED IN20 SECTION 43-1-219 FOR USE BY THE TRANSIT AND RAIL DIVISION FOR THE21 PURPOSES SPECIFIED IN THIS SUBSECTION (4).22 (d) T HIS SUBSECTION (4) IS REPEALED, EFFECTIVE JULY 1, 2026.23 SECTION 4. Safety clause. The general assembly hereby finds,24 determines, and declares that this act is necessary for the immediate25 preservation of the public peace, health, or safety.26 180 -10-