Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 24-0791.01 Jery Payne x2157
SENATE BILL 24-095
Senate Committees House Committees
Transportation & Energy
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING MEASURES TO ADDRESS OZONE LEVELS IN AREAS THAT101
DO NOT MEET FEDERAL OZONE NATIONAL AMBIENT AIR QUALITY102
STANDARDS, AND, IN CONNECTION THEREWITH , ENACTING
103
INCENTIVE-BASED OZONE PRECURSOR EMISSIONS REDUCTION104
MEASURES FOR ON -ROAD MOBILE SOURCES AND FOR LAWN105
EQUIPMENT, CONDUCTING ANNUAL PHOTOCHEMICAL MODELING106
STUDIES AND DATA ANALYSIS, AND MAKING AN APPROPRIATION .107
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
.)
SENATE
Amended 2nd Reading
May 3, 2024
SENATE SPONSORSHIP
Kirkmeyer and Rodriguez,
HOUSE SPONSORSHIP
Bacon and Evans,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. Sections 1 and 2 of the bill create a high-emitter vehicle program
for owners of motor vehicles that are not in compliance with emission
standards and that have been issued a certification of emissions waiver
(qualified vehicle). If the owner of a qualified vehicle resides in a
nonattainment area for ozone and has unsuccessfully attempted to have
the motor vehicle repaired to cure the noncompliance, the owner is
eligible for a voucher of $850. The vouchers may be redeemed at
qualified repair facilities that will bring the vehicle into compliance. The
high-emitter vehicle program is funded by using up to 20% of the money
in the AIR account in the highway users tax fund.
The high-emitter vehicle program is administered by the
nonattainment area air pollution mitigation enterprise, in coordination
with the department of revenue, contractors that provide inspection
services, and the clean screen authority. The high-emitter vehicle program
repeals when Colorado meets federal ozone national ambient air quality
standards (attainment).
Section 3 requires the air quality control commission
(commission) to create, in coordination with the lead agency for air
quality planing for the Denver metropolitan area, a garden rebate program
to increase the use of small electric motors used for outdoor power
equipment. The program must:
! Provide a point-of-purchase rebate of the lesser of $150 or
one-third of the price for each piece of outdoor power
equipment purchased by the end user in a nonattainment
area for ozone;
! Establish a registration system for qualified retailers; and
! Require the division to publicize the garden rebate
program.
The division of administration in the department of public health
and environment (division) administers the garden rebate program, and
the commission sets standards for qualified retailers to register for the
program. If the garden rebate program exceeds its appropriation, the
division may pause the program. The garden rebate program repeals
January 1, 2030. Section 4 repeals the current tax credit for buying lawn
and garden equipment with an electric motor.
In current law, the clean fleet enterprise (enterprise) incentivizes
and supports the use of electric motor vehicles for certain fleet uses,
including transportation network companies. Sections 5 and 6:
! Expand the program to include light-duty trucks;
! Authorize the clean fleet enterprise to provide grants of up
to 80% of a local government's cost of acquiring motor
vehicles that emit low levels of nitrogen oxides for the
local government to use in its motor vehicle fleet; and
! Require the enterprise to prioritize making grants to local
095
-2- governments.
The grant program authorization and prioritization repeal December 31,
2029.
Section 7 requires the division to regularly perform, in the
nonattainment area for ozone, photochemical modeling studies and data
analysis designed to determine ambient air ozone levels and the
effectiveness of policies for lowering ambient air ozone levels. The
division is required to publish the results to the division's website and
report the results to the commission and at its "SMART Act" hearing.
Section 7 is repealed when Colorado achieves attainment.
Be it enacted by the General Assembly of the State of Colorado:1
2
SECTION 1. In Colorado Revised Statutes, 42-4-310, add3
(1)(d)(XIII) as follows:4
42-4-310. Periodic emissions control inspection required.5
(1) (d) (XIII) N
OTWITHSTANDING SUBSECTIONS (1)(d)(I) TO (1)(d)(IX)
6
OF THIS SECTION, AN AUTHORIZED STATE REPRESENTATIVE SHALL NOT7
ISSUE A CERTIFICATE OF EMISSIONS WAIVER TO A MOTOR VEHICLE THAT8
HAS BEEN ISSUED A VOUCHER IN ACCORDANCE WITH SECTION 42-4-3179
UNTIL THE MOTOR VEHICLE HAS RECEIVED THE ADDITIONAL REPAIRS10
COVERED BY THE VOUCHER IN ACCORDANCE WITH THE RULES ADOPTED11
UNDER SECTION 42-4-317 OR THE MOTOR VEHICLE REPAIRS HAVE12
EXHAUSTED THE VOUCHER .13
SECTION 2. In Colorado Revised Statutes, add 42-4-317 as14
follows:15
42-4-317. Voucher program - rules. (1) T
HE EXECUTIVE
16
DIRECTOR OF THE DEPARTMENT SHALL COORDINATE WITH THE17
NONATTAINMENT AREA AIR POLLUTION MITIGATION ENTERPRISE CREATED18
IN SECTION 43-4-1303 TO CREATE A VOUCHER PROGRAM FOR MOTOR19
VEHICLES THAT HAVE RECEIVED THE REPAIRS REQUIRED IN SECTION20
095-3- 42-4-306 BUT HAVE FAILED TO BE ISSUED A CERTIFICATE OF EMISSIONS1
COMPLIANCE. THE VOUCHER PROGRAM MUST IDENTIFY QUALIFIED2
VEHICLES AND THE PROCEDURE FOR ISSUING AND REDEEMING THE3
VOUCHERS.4
(2) T
HE VOUCHER PROGRAM MUST PROVIDE A VOUCHER WORTH
5
EIGHT HUNDRED FIFTY DOLLARS THAT THE OWNER OF A MOTOR VEHICLE6
MAY REDEEM WITH A REGISTERED REPAIR FACILITY OR TECHNICIAN TO7
PERFORM REPAIRS TO MAKE THE MOTOR VEHICLE ELIGIBLE FOR A8
CERTIFICATE OF EMISSIONS COMPLIANCE .9
(3) T
HE EXECUTIVE DIRECTOR OF THE DEPARTMENT MAY
10
PROMULGATE RULES TO IMPLEMENT THIS SECTION .11
(4) T
O IMPLEMENT THIS SECTION, THE GENERAL ASSEMBLY SHALL
12
APPROPRIATE FUNDS FROM THE NONATTAINMENT AREA AIR POLLUTION13
MITIGATION ENTERPRISE FUND, CREATED IN SECTION 43-4-1303 (5).14
SECTION 3. In Colorado Revised Statutes, add 25-7-146 as15
follows:16
25-7-146. Appropriation to implement electric lawn17
equipment program - repeal. (1) T
HE GENERAL ASSEMBLY SHALL
18
APPROPRIATE ONE HUNDRED THOUSAND DOLLARS FROM THE19
NONATTAINMENT AREA AIR POLLUTION MITIGATION ENTERPRISE FUND ,20
CREATED IN SECTION 43-4-1303 (5), TO THE DEPARTMENT OF PUBLIC21
HEALTH AND ENVIRONMENT FOR USE BY THE LEAD AIR QUALITY PLANNING22
AGENCY FOR THE DENVER METROPOLITAN AREA AND THE DENVER23
M
ETRO/NORTH FRONT RANGE OZONE NONATTAINMENT AREA IN ORDER
24
TO FUND A REBATE PROGRAM FOR THE REPLACEMENT OF GAS -POWERED25
LAWN EQUIPMENT WITH ELECTRIC LAWN EQUIPMENT .26
(2) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2033.
27
095
-4- SECTION 4. In Colorado Revised Statutes, 25-7.5-102, amend1
(16); and add (13.4) and (13.6) as follows:2
25-7.5-102. Definitions. As used in this article 7.5, unless the3
context otherwise requires:4
(13.4) "L
IGHT-DUTY VEHICLE" MEANS A MOTOR VEHICLE
WITH A5
GROSS VEHICLE WEIGHT RATING, AS DEFINED IN SECTION 42-2-402 (6), OF6
TEN THOUSAND POUNDS OR LESS .7
(13.6) "L
OCAL GOVERNMENT" MEANS A CITY OR COUNTY.8
(16) "Motor vehicle fleet" means a group of motor vehicles that9
is owned or operated:10
(a) By a governmental entity for a public purpose, including but
11
not limited to public school transportation or law enforcement; or12
(b) By a business entity for a business if:13
(I) The group of motor vehicles is composed primarily of14
LIGHT-DUTY VEHICLES,
heavy-duty motor vehicles, medium-duty motor15
vehicles, or refrigerated trailer units; or16
(II) The group of motor vehicles is:17
(A) Owned or operated by a company that rents motor vehicles in18
the fleet to transportation network company drivers for use in providing19
transportation network company services; or is20
(B) Owned and operated directly, or indirectly through21
independent contractors who own or lease individual motor vehicles in22
the group, by a transportation network company or by a retailer for the23
purpose of making retail deliveries.24
SECTION 5. In Colorado Revised Statutes, 25-7.5-103, amend25
(6)(d); and add (12) as follows:26
25-7.5-103. Clean fleet enterprise - creation - board - powers27
095
-5- and duties - fees - fund - repeal. (6) In addition to any other powers and1
duties specified in this section, the board has the following general2
powers and duties:3
(d) To contract with any public or private entity, including state4
agencies, consultants, and the attorney general's office, for professional5
and technical assistance, office space, and administrative services, advice,6
and other services related to the conduct of the affairs of the enterprise.7
The enterprise is encouraged to issue grants on a
STREAMLINED AND8
competitive basis based on written criteria established by the enterprise9
in advance of any deadlines for the submission of grant applications. The10
board shall generally avoid using sole-source contracts.11
(12) (a) T
HE ENTERPRISE MAY PROVIDE FUNDING THROUGH A12
GRANT PROGRAM TO PROVIDE UP TO FIFTY
PERCENT OF A LOCAL13
GOVERNMENT'S COST OF ACQUIRING ELECTRIC LIGHT-DUTY VEHICLES FOR14
THE LOCAL GOVERNMENT TO USE IN ITS MOTOR VEHICLE FLEET .15
(b) I
N IMPLEMENTING SUBSECTION (9) OF THIS SECTION AND THIS16
SUBSECTION (12), THE BOARD SHALL PRIORITIZE MAKING GRANTS TO17
LOCAL GOVERNMENTS .18
(c) T
HIS SUBSECTION (12) IS REPEALED, EFFECTIVE DECEMBER 31,19
2029.20
SECTION 6. In Colorado Revised Statutes, 25-7.5-103, amend
21
(9)(b)(I) as follows:22
25-7.5-103. Clean fleet enterprise - creation - board - powers23
and duties - fees - fund. (9) (b) The enterprise may provide funding or24
financing through grant programs, rebate programs, revolving loan funds,25
or such other strategies as the board finds effective:26
(I) To help public and private owners and operators of motor27
095
-6- vehicle fleets finance electric motor vehicle acquisitions to reduce the1
up-front costs of acquiring electric motor vehicles, through December 31,2
2026, to help public and private owners and operators of motor vehicle3
fleets finance acquisitions of compressed natural gas motor vehicles that4
are trucks if at least ninety percent of the fuel for the trucks will be EMIT5
LOW LEVELS OF NITROGEN OXIDES WHEN USED TO POWER THE TRUCK ,6
INCLUDING recovered methane, and, on and after January 1, 2027, for so7
long as the enterprise determines that electric motor vehicles are not yet8
practically available or do not meet the operational requirements such as9
cargo carrying capacity and driving range for specific categories of10
trucks, to help public and private owners and operators of motor vehicle11
fleets finance acquisitions of compressed natural gas motor vehicles that12
are trucks if at least ninety percent of the fuel for the trucks will be EMIT13
LOW LEVELS OF NITROGEN OXIDES WHEN USED TO POWER THE TRUCK ,14
INCLUDING recovered methane;15
SECTION 7. In Colorado Revised Statutes, add 25-7-147 as16
follows:17
25-7-147. Photochemical modeling required for state18
implementation plan - repeal. (1) T
HE COMMISSION AND DIVISION
19
SHALL USE PHOTOCHEMICAL MODELING AND DATA ANALYSIS AS THE BASIS20
FOR REVISING THE STATE IMPLEMENTATION PLAN IN 2026. THE21
PHOTOCHEMICAL MODELING MUST CONFORM WITH THE COMPREHENSIVE22
AIR QUALITY MODELING SYSTEM WITH EXTENSION .23
(2) T
HE COMMISSION AND DIVISION SHALL IMPLEMENT THIS
24
SECTION BY CONTRACTING WITH A RESEARCH INSTITUTION TO CONDUCT25
THE PHOTOCHEMICAL MODELING AND DATA ANALYSIS .26
(3) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.
27
095
-7- SECTION 8. In Colorado Revised Statutes, 42-4-306, amend1
(3)(b)(V)(A); and add (3)(b)(V)(C) and (7)(c) as follows:2
42-4-306. Powers and duties of commission - automobile3
inspection and readjustment program - basic emissions program -4
enhanced emissions program - clean screen program - notice to5
revisor of statutes - repeal. (3) (b) (V) (A) Notwithstanding any6
contrary provision in the "Procurement Code", articles 101 to 112 of title7
24, C.R.S., or this article ARTICLE 4, any contract for inspection services8
may be renewed for a term not to exceed two years, after which the9
contract may be renewed for a single term of up to four years or rebid;10
except that inspection fees during any such four-year renewal contract11
shall be as determined under ARE SUBJECT TO section 42-4-311 (6).12
(C) N
OTWITHSTANDING ANY CONTRARY PROVISION IN THE
13
"P
ROCUREMENT CODE", ARTICLES 101 TO 112 OF TITLE 24, OR THIS
14
ARTICLE 4, THE DIVISION SHALL RENEGOTIATE OR RENEW A CONTRACT FOR15
INSPECTION SERVICES IN EXISTENCE ON JULY 1, 2024, NO LATER THAN16
O
CTOBER 1, 2024, TO ACCOUNT FOR THE FEE ESTABLISHED IN SECTION
17
42-4-311
(6) AS IT WILL BECOME EFFECTIVE ON THE EFFECTIVE DATE OF
18
THIS SUBSECTION (3)(b)(I)(C) AND FOR A TERM NOT TO EXCEED FOUR19
YEARS, AFTER WHICH THE CONTRACT MAY BE RENEWED FOR A SINGLE20
TERM OF UP TO FOUR YEARS OR REBID. THE NEW CONTRACT MUST PROVIDE21
FOR ADDING ADDITIONAL TESTING STATIONS AND EXPANDING THE CLEAN22
SCREEN INSPECTION UNITS.23
(7) (c) (I) T
HE DEPARTMENT OF PUBLIC HEALTH AND
24
ENVIRONMENT SHALL SEEK APPROVAL FROM THE ENVIRONMENTAL25
PROTECTION AGENCY OF A PROPOSED REVISION TO THE STATE26
IMPLEMENTATION PLAN THAT WOULD REPLACE THE EXISTING ON -BOARD27
095
-8- DIAGNOSTICS TEST WITH AN IM240 EMISSIONS TEST OR TAILPIPE1
EMISSIONS TEST AS SPECIFIED IN GUIDANCE ISSUED BY THE2
ENVIRONMENTAL PROTECTION AGENCY , UNLESS THE MOTOR VEHICLE3
CANNOT BE TESTED USING THE TAILPIPE TEST OR THE TAILPIPE TEST IS4
UNSAFE. THE DEPARTMENT SHALL SUBMIT THE PROPOSED STATE5
IMPLEMENTATION PLAN REVISION TO THE AIR QUALITY CONTROL6
COMMISSION BY SEPTEMBER 31, 2024; THE COMMISSION SHALL ADOPT THE7
PROPOSAL BY DECEMBER 31, 2024; AND THE DEPARTMENT SHALL SUBMIT8
THE PROPOSAL TO THE ENVIRONMENTAL PROTECTION AGENCY BY MAY 5,9
2025.
BEFORE SUBMITTING THE PROPOSAL TO THE COMMISSION , THE
10
DEPARTMENT SHALL PROVIDE THE OPPORTUNITY FOR WRITTEN COMMENT11
AND SHALL HOLD A STAKEHOLDER MEETING TO SOLICIT INPUT ON THE12
PROPOSAL. THE PROPOSAL MUST TAKE INTO CONSIDERATION ANY13
STAKEHOLDER INPUT RECEIVED, INCLUDING FROM EMISSIONS INSPECTORS,14
OWNERS OF VEHICLES THAT FAILED THE ON -BOARD DIAGNOSTICS TEST15
SOLELY BECAUSE A CHECK ENGINE LIGHT WAS ILLUMINATED ON THE16
VEHICLES' DASHBOARDS , LEGISLATORS , MOTOR VEHICLE17
MANUFACTURERS, AND AIR QUALITY CONTROL EXPERTS .18
(II) T
HIS SUBSECTION (7)(c) WILL BE REPEALED IF THE
19
ENVIRONMENTAL PROTECTION AGENCY REJECTS THE PROPOSED STATE20
IMPLEMENTATION PLAN REVISION SUBMITTED PURSUANT TO SUBSECTION21
(7)(c)(I)
OF THIS SECTION. THE DIRECTOR OF THE DIVISION OF
22
ADMINISTRATION IN THE DEPARTMENT OF PUBLIC HEALTH AND23
ENVIRONMENT SHALL NOTIFY THE REVISOR OF STATUTES IN WRITING OF24
THE DATE ON WHICH THE CONDITION SPECIFIED IN THIS SUBSECTION25
(7)(c)(II)
HAS OCCURRED BY E -MAILING THE NOTICE TO
26
REVISOROFSTATUTES.GA@COLEG.GOV. THIS SUBSECTION (7)(c) IS27
095
-9- REPEALED, EFFECTIVE UPON THE DATE IDENTIFIED IN THE NOTICE THAT1
THE CONDITION OCCURRED OR , IF THE NOTICE DOES NOT SPECIFY THAT2
DATE, UPON THE DATE OF THE NOTICE TO THE REVISOR OF STATUTES .3
SECTION 9. In Colorado Revised Statutes, 42-4-311, amend4
(4)(a)(I) and (6)(a); repeal (6)(b); and add (4)(a)(III) as follows:5
42-4-311. Operation of inspection and readjustment stations6
- inspection-only facilities - fleet inspection stations - motor vehicle7
dealer test facilities - enhanced inspection centers. (4) (a) (I) S
UBJECT
8
TO SUBSECTION (4)(a)(III) OF THIS SECTION, a licensed inspection and9
readjustment station, inspection-only facility, or motor vehicle dealer test10
facility shall charge a fee not to exceed fifteen dollars for the inspection11
of vehicles, model year 1981 and older, at facilities licensed or authorized12
within either the basic or enhanced emissions program; except that for13
1982 model and newer vehicles a test facility may charge a fee not to14
exceed twenty-five THIRTY-FIVE dollars.15
(III) T
HE DIVISION SHALL ANNUALLY ADJUST FOR INFLATION OR
16
DEFLATION THE FEES DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS SECTION.17
T
HE DIVISION MAY ROUND THE ADJUSTED AMOUNT UPWARD OR
18
DOWNWARD AS APPROPRIATE . INFLATION OR DEFLATION IS MEASURED BY19
THE ANNUAL PERCENTAGE CHANGE IN THE UNITED STATES DEPARTMENT20
OF LABOR'S BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX , OR A21
SUCCESSOR INDEX, FOR DENVER-AURORA-LAKEWOOD FOR ALL ITEMS22
PAID BY URBAN CONSUMERS .23
(6) (a) The fee charged for enhanced emissions inspections24
performed within the enhanced emissions program area on 1982 and later25
motor vehicles shall MUST not be any greater than that determined by the26
contract and in no case greater than twenty-five THIRTY-FIVE dollars. The27
095
-10- fee charged for clean screen inspections performed on vehicles registered1
in the basic area shall MUST not be any greater than that determined by the2
contract and in no case greater than fifteen dollars. Such THE fee shall3
MUST not exceed the maximum fee required to be posted by the enhanced4
inspection center pursuant to section 42-4-305 for the inspection of any5
motor vehicle required to be inspected under section 42-4-310.6
(b) During the two-year renewal of the contract entered into7
pursuant to section 42-4-307 (10), the commission shall hold a hearing to8
determine the maximum fee that may be charged pursuant to the contract9
for inspections during any subsequent renewal term. The maximum fee10
must be based on estimated actual operating costs during the life of the11
contract, determined pursuant to the proceeding, plus a percentage to be12
determined by the commission, not to exceed ten percent and not to13
exceed twenty-five dollars.14
SECTION 10. Appropriation. (1) For the 2024-25 state fiscal15
year, $100,000 is appropriated to the department of public health and16
environment for use by the air pollution control division. This17
appropriation is from the nonattainment area air pollution mitigation18
enterprise fund created in section 43-4-1303 (5)(a), C.R.S. To implement19
this act, the division may use this appropriation for program costs related20
to administration.21
(2) For the 2024-25 state fiscal year, $15,897 is appropriated to22
the department of revenue. This appropriation is from the nonattainment23
area air pollution mitigation enterprise fund created in section 43-4-130324
(5)(a), C.R.S. To implement this act, the department may use this25
appropriation as follows:26
(a) $13,022 for use by the division of motor vehicles for personal27
095
-11- services related to vehicle services, which amount is based on an1
assumption that the division will require an additional 0.3 FTE;2
(b) $1,984 for use by the division of motor vehicles for DRIVES3
maintenance and support;4
(c) $384 for division of motor vehicles for operating expenses5
related to vehicle services; and6
(d) $210 for the executive director's office for personal services7
related to administration and support; and8
(e) $297 for the purchase of information technology services.9
(3) For the 2024-25 state fiscal year, $297 is appropriated to the10
office of the governor for use by the office of information technology.11
This appropriation is from reappropriated funds received from the12
department of revenue under subsection (2)(e) of this section. To13
implement this act, the office may use this appropriation to provide14
information technology services for the department of revenue.15
SECTION 11. Act subject to petition - effective date -16
applicability. (1) This act takes effect at 12:01 a.m. on the day following17
the expiration of the ninety-day period after final adjournment of the18
general assembly; except that, if a referendum petition is filed pursuant19
to section 1 (3) of article V of the state constitution against this act or an20
item, section, or part of this act within such period, then the act, item,21
section, or part will not take effect unless approved by the people at the22
general election to be held in November 2024 and, in such case, will take23
effect on the date of the official declaration of the vote thereon by the24
governor.25
(2) This act applies to taxable actions occurring on or after the26
applicable effective date of this act.27
095
-12-