Colorado Senate Bill SB117 Latest Draft

                            First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
 
 
LLS NO. 25-0754.01 Jason Gelender x4330
SENATE BILL 25-117
Senate Committees House Committees
State, Veterans, & Military Affairs
A BILL FOR AN ACT
C
ONCERNING THE REDUCTION OF TRANSPORTATION COSTS	, AND, IN101
CONNECTION THEREWITH , REPEALING CERTAIN GOVERNMENT102
FEES IMPOSED ON GASOLINE AND CERTAIN SPECIAL FUEL ,103
PASSENGER RIDES BOOKED THROUGH T	RANSPORTATION104
NETWORK COMPANIES , SHORT-TERM MOTOR VEHICLE RENTALS ,105
AND WASTE TIRES AND REQUIRING THE NONATTAINMENT AREA106
AIR POLLUTION MITIGATION ENTERPRISE TO ESTABLISH A107
REFORMULATED GASOLINE COST STABILIZATION REBATE108
PROGRAM.109
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
SENATE SPONSORSHIP
Bright, Baisley, Carson, Catlin, Frizell, Kirkmeyer, Liston, Lundeen, Pelton B., Pelton R.,
Rich, Simpson
HOUSE SPONSORSHIP
(None),
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. applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
For the purpose of reducing transportation costs, the bill repeals
the following fees, effective July 1, 2025:
! The road usage fee imposed by the state and the bridge and
tunnel impact fee imposed by the statewide bridge and
tunnel enterprise that are imposed on the purchase of each
gallon of taxed gasoline and special fuel;
! The fee imposed by the state on short-term motor vehicle
rentals;
! The passenger per-ride fees imposed on car share rides by
the state, the clean fleet enterprise, and the nonattainment
area air pollution mitigation enterprise; and
! The waste tire enterprise fee imposed on the purchase of
new motor vehicle and trailer tires by the waste tire
management enterprise. Because this fee is the only source
of revenue for the waste tire management enterprise, the
bill also repeal the enterprise.
The bill also requires the nonattainment area air pollution
mitigation enterprise, no later than January 1, 2026, to establish a
reformulated gasoline cost stabilization program to offer reformulated
gasoline cost stabilization rebates to individuals who own motor vehicles
that are registered in counties in which the federal government requires
all gasoline sold to be reformulated gasoline.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 25-7.5-102, amend2
(13) and (16)(b)(II); and repeal (3), (19), (24), (26), (27), (28), and (29)3
as follows:4
25-7.5-102.  Definitions. As used in this article 7.5, unless the5
context otherwise requires:6
(3)  "Car share ride" means a prearranged ride for which the rider
7
agrees, at the time the rider requests the ride through a digital network, to8
be transported with another rider who has separately requested a9
prearranged ride regardless of whether or not another rider is actually10
transported with the rider.11
SB25-117-2- (13)  "Inflation" means the average annual percentage change in1
the United States department of labor, bureau of labor statistics, consumer2
price index for Denver-Aurora-Lakewood for all items and all urban3
consumers, or its applicable predecessor or successor index, for the five4
years ending on the last December 31 before a state fiscal year for which5
an inflation adjustment to be made to the clean fleet per ride fee imposed6
by section 25-7.5-103 (7) or the clean fleet retail delivery fee imposed by7
section 25-7.5-103 (8) begins.8
(16)  "Motor vehicle fleet" means a group of motor vehicles that9
is owned or operated:10
(b)  By a business entity for a business if:11
(II)  The group of motor vehicles is owned or operated by a12
company that rents motor vehicles in the fleet to transportation network13
company drivers for use in providing transportation network company14
services or is owned and operated directly or indirectly through15
independent contractors who own or lease individual motor vehicles in16
the group by a transportation network company or by a retailer for the17
purpose of making retail deliveries.18
(19)  "Prearranged ride" has the same meaning as set forth in19
section 40-10.1-602 (2).20
(24)  "Rider" has the same meaning as set forth in section21
40-10.1-602 (5).22
(26)  "Transportation network company" has the same meaning as23
set forth in section 40-10.1-602 (3).24
(27)  "Transportation network company driver" has the same25
meaning as set forth in section 40-10.1-602 (4).26
(28)  "Transportation network company services" has the same27
SB25-117
-3- meaning as set forth in section 40-10.1-602 (6).1
(29)  "Zero emissions motor vehicle" means a battery electric2
motor vehicle or a hydrogen fuel cell motor vehicle.3
SECTION 2. In Colorado Revised Statutes, 25-7.5-103, amend4
(3) introductory portion, (3)(a), (5)(a), and (6)(h); and repeal (7) as5
follows:6
25-7.5-103.  Clean fleet enterprise - creation - board - powers7
and duties - fees - fund. (3)  The business purpose of the enterprise is to8
incentivize and support the use of electric motor vehicles, including9
motor vehicles that originally were powered exclusively by internal10
combustion engines but have been converted into electric motor vehicles,11
and, to the extent temporarily necessitated by the limitations of current12
electric motor vehicle technology for certain fleet uses, compressed13
natural gas motor vehicles that are fueled by recovered methane, by14
businesses and governmental entities that own or operate fleets of motor15
vehicles, including fleets composed of personal motor vehicles owned or16
leased by individual contractors who provide prearranged rides for17
transportation network companies or deliver goods for a third-party18
delivery service. To allow the enterprise to accomplish this purpose and19
fully exercise its powers and duties through the board, the enterprise may:20
(a)  Impose a clean fleet per ride fee and a clean fleet retail21
delivery fee as authorized by subsections (7) and (8) SUBSECTION (8) of22
this section;23
(5) (a)  The clean fleet enterprise fund is hereby created in the state24
treasury. The fund consists of clean fleet per ride fee revenue and clean25
fleet retail delivery fee revenue credited to the fund pursuant to26
subsections (7) and (8) SUBSECTION (8) of this section, any monetary27
SB25-117
-4- gifts, grants, donations, or other payments received by the enterprise, any1
federal money that may be credited to the fund, and any other money that2
the general assembly may appropriate or transfer to the fund. The state3
treasurer shall credit all interest and income derived from the deposit and4
investment of money in the fund to the fund. Money in the fund is5
continuously appropriated to the enterprise for the purposes set forth in6
this article 7.5 and to pay the enterprise's reasonable and necessary7
operating expenses, including the repayment of any loan received8
pursuant to subsection (5)(b) of this section.9
(6)  In addition to any other powers and duties specified in this10
section, the board has the following general powers and duties:11
(h)  To promulgate rules for the sole purpose of setting the12
amounts AMOUNT of the clean fleet per ride fee and the clean fleet retail13
delivery fee at or below the maximum amounts AMOUNT authorized in14
this section; and15
(7) (a)  In furtherance of its business purpose, beginning in state16
fiscal year 2022-23, the enterprise shall impose a clean fleet per ride fee17
to be paid by a transportation network company for each prearranged ride18
requested and accepted through the company's digital network. For the19
purpose of minimizing compliance costs for transportation network20
companies and administrative costs for the state, the department of21
revenue shall collect the clean fleet per ride fee on behalf of the22
enterprise, and a transportation network company shall pay the fee to the23
department of revenue as required by section 40-10.1-607.5 (2). The24
enterprise shall ensure that during the first ten state fiscal years of fee25
collections, expenditures that support transportation network company26
operations equal or exceed cumulative clean fleet per ride fee revenue.27
SB25-117
-5- (b)  For prearranged rides requested and accepted during state1
fiscal year 2022-23, the enterprise shall impose the clean fleet per ride fee2
in a maximum amount of:3
(I)  Three and three-quarters cents for each prearranged ride that4
is a car share ride or for which the driver transports the rider in a zero5
emissions motor vehicle; and6
(II)  Seven and one-half cents for every other prearranged ride.7
(c) (I)  Except as otherwise provided in subsection (7)(c)(II) of this8
section, for prearranged rides requested and accepted during state fiscal9
year 2023-24 or during any subsequent state fiscal year, the enterprise10
shall impose the clean fleet per ride fee in a maximum amount that is the11
applicable maximum amount for the prior state fiscal year adjusted for12
inflation. The enterprise shall notify the department of revenue of the13
amount of the clean fleet per ride fee to be collected for rides requested14
and accepted during each state fiscal year no later than March 15 of the15
calendar year in which the state fiscal year begins and the department of16
revenue shall publish the amount no later than April 15 of the calendar17
year in which the state fiscal year begins.18
(II)  The enterprise is authorized to adjust the amount of the clean19
fleet per ride fee for prearranged rides requested and accepted during a20
state fiscal year only if the rate of inflation is positive and cumulative21
inflation from the time of the last adjustment in the amount of the fee,22
when applied to the sum of the current clean fleet per ride fee and the23
current air pollution mitigation per ride fee imposed as required by24
section 43-4-1303 (7) and rounded to the nearest whole cent, will result25
in an increase of at least one whole cent in the total amount of the clean26
fleet per ride fee and the air pollution mitigation per ride fee paid by a27
SB25-117
-6- person who requests and accepts a prearranged ride. The amount of1
cumulative inflation to be applied to the sum of the current clean fleet per2
ride fee and the current air pollution mitigation per ride fee and rounded3
to the nearest whole cent is the lesser of actual cumulative inflation or4
five percent.5
(d)  As required by section 40-10.1-607.5 (3)(a), the department of6
revenue shall transmit all net clean fleet per ride fee revenue collected to7
the state treasurer, who shall credit the revenue to the fund.8
SECTION 3. In Colorado Revised Statutes, 30-20-1401, amend9
(2)(a); and repeal (1)(d), (1)(e), (1)(f), (1)(g), (1)(h), (1)(i), and (1)(j) as10
follows:11
30-20-1401.  Legislative declaration - rules - enforcement -12
recyclable material. (1)  The general assembly finds and declares that:13
(d)  It is in the state's interest to provide for the recovery, recycling,14
reuse, and management of waste tires through a government-run15
enterprise;16
(e)  Providing statewide waste tire recycling, beneficial reuse, and17
management constitutes a valuable service and benefit, and a waste tire18
management enterprise would provide useful business services to tire19
retailers, automobile dealers, automobile repair shops, service stations,20
automotive fleet centers, waste tire haulers, waste tire collection facilities,21
waste tire processors, recycling and waste facilities, landfills, consumers,22
and all residents of Colorado;23
(f)  The waste tire management enterprise will aid in the proper24
management of waste tires by providing financial incentives and rebates25
for the recycling of waste tires into end-use tire-derived products, which26
financial incentives and rebates directly compensate people who properly27
SB25-117
-7- dispose of or recycle waste tires, provide fee payers more convenient1
waste tire and disposal options, increase the production of tire-derived2
products, and positively impact human health and safety and the3
environment;4
(g)  It is necessary, appropriate, and in the best interest of the state5
to acknowledge that, by providing the business services specified in this6
part 14, the enterprise engages in an activity conducted in the pursuit of7
a benefit, gain, or livelihood and therefore operates as a business;8
(h)  Consistent with the determination of the Colorado supreme9
court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo.10
1995), that the power to impose taxes is inconsistent with enterprise status11
under section 20 of article X of the state constitution, it is the conclusion12
of the general assembly that the waste tire enterprise fee collected by the13
enterprise is a fee, not a tax, because the fee is imposed for the specific14
purpose of allowing the enterprise to defray the costs of providing the15
business services specified in sections 30-20-1404 and 30-20-1405 to16
consumers who ultimately pay the enterprise fee, which enterprise fee is17
imposed at rates that are reasonably calculated based on the cost of18
providing the services needed by those consumers;19
(i)  So long as the enterprise qualifies as an enterprise for the20
purposes of section 20 of article X of the state constitution, the revenue21
from the waste tire enterprise fee collected by the enterprise is not state22
fiscal year spending, as defined in section 24-77-102 (17), or state23
revenues, as defined in section 24-77-103.6 (6)(c), and does not count24
against either the state fiscal year spending limit imposed by section 2025
of article X of the state constitution or the excess state revenues cap, as26
defined in section 24-77-103.6 (6)(b)(I); and27
SB25-117
-8- (j)  The enterprise created in this part 14 is necessary to continue1
Colorado's management of waste tires and provide incentives to local2
governments; for-profit waste tire management, recycling, and reuse3
companies; and other organizations that are involved in waste tire4
recycling, beneficial reuse, and management.5
(2) (a)  The commission in consultation with the enterprise, shall6
promulgate rules for the implementation and enforcement of sections7
30-20-1403, 30-20-1404, and 30-20-1405, as applicable.8
SECTION 4. In Colorado Revised Statutes, 30-20-1402, repeal9
(1.7), (4.5), and (14.5) as follows:10
30-20-1402.  Definitions. As used in this part 14, unless the11
context otherwise requires:12
(1.7)  "Board of directors" or "board" means the board of directors13
of the enterprise.14
(4.5)  "Enterprise" means the waste tire management enterprise15
created in section 30-20-1403.16
(14.5)  "Waste tire enterprise fee" or "enterprise fee" means money17
collected pursuant to section 30-20-1403 (2.5)(a).18
SECTION 5. In Colorado Revised Statutes, 30-20-1403, amend19
(2.5)(b)(III), (2.5)(c)(I), and (2.5)(c)(II); and repeal (1.5), (2.5)(a),20
(2.5)(c)(III), and (3)(a) as follows:21
30-20-1403.  Waste tire recycling, beneficial reuse, and22
management - waste tire fees - distribution - rules - repeal.23
(1.5)  Enterprise. (a) (I)  There is created in the department the waste tire24
management enterprise. The enterprise is and operates as a25
government-owned business within the department to collect the waste26
tire enterprise fee charged by retailers of new tires pursuant to subsection27
SB25-117
-9- (2.5) of this section and to use the waste tire enterprise fee to promote1
waste tire recycling, beneficial reuse, and management strategies in2
Colorado.3
(II)  The enterprise is and operates as a government-owned4
business within the department for the purpose of conducting the business5
activities specified in this section. The enterprise is a type 1 entity, as6
defined in section 24-1-105, and exercises its powers and performs its7
duties and functions under the department.8
(III)  The enterprise constitutes an enterprise for purposes of9
section 20 of article X of the state constitution so long as it retains the10
authority to issue revenue bonds and receives less than ten percent of its11
total revenues in grants from all Colorado state and local governments12
combined. So long as it constitutes an enterprise pursuant to this13
subsection (1.5)(a), the enterprise is not subject to section 20 of article X14
of the state constitution.15
(b)  The enterprise's primary powers and duties are to:16
(I)  Collect the waste tire enterprise fee;17
(II)  Promote waste tire recycling, beneficial reuse, and18
management strategies throughout Colorado;19
(III)  Issue revenue bonds payable from the revenues of the20
enterprise to promote the waste tire recycling, beneficial reuse, and21
management strategies specified in this section;22
(IV)  Publish each year, on the department's website and as23
otherwise deemed appropriate by the board, the waste tire recycling,24
beneficial reuse, and management strategies that the board has prioritized25
through the collection of the waste tire enterprise fee;26
(V)  Adopt, amend, or repeal policies for the regulation of the27
SB25-117
-10- enterprise's affairs and the conduct of the enterprise's business consistent1
with this part 14;2
(VI) (A)  Contract with any public or private entity, including state3
agencies, consultants, and the attorney general's office, for professional4
and technical assistance, office space and administrative services, advice,5
and other services related to the conduct of the affairs of the enterprise.6
The board shall encourage diversity in applicants for contracts and shall7
generally avoid using single-source bids.8
(B)  The enterprise shall pay a fair market rate to any public entity,9
private entity, contractor, or consultant, which may include a state agency,10
the attorney general's office, or the department, that is hired by the11
enterprise to perform duties pursuant to this subsection (1.5)(b).12
(VII)  Prepare and submit an annual financial report pursuant to13
subsection (1.5)(i) of this section.14
(c)  The enterprise is governed by a board of directors. The board15
consists of the following nine members:16
(I)  Two members appointed by the executive director of the17
department to represent the department, including one with expertise in18
sustainability and one with expertise in compliance;19
(II)  One member appointed by the executive director of the20
department who represents a county that has experience with the21
management of waste tires; and22
(III)  Six members appointed by the executive director of the23
department who are representatives of nonprofit and for-profit entities24
engaged in the recovery, recycling, reuse, and management of waste tires,25
including a tire retailer, a waste tire collection facility, a waste tire26
processor, and a waste tire hauler. To the extent practicable, the27
SB25-117
-11- representation of nonprofit and for-profit entities must be balanced1
equally.2
(d)  Of the members appointed to the board of directors pursuant3
to subsection (1.5)(c)(III) of this section, at least one member must do4
business in a rural county in the state.5
(e) (I)  The member representing the department who has expertise6
in sustainability and is appointed pursuant to subsection (1.5)(c)(I) of this7
section shall call the first meeting of the board.8
(II)  The board shall elect a chair from among its members to serve9
for a term not to exceed two years.10
(III)  The board shall meet quarterly, and the chair of the board11
may call additional meetings as necessary for the board to complete its12
duties.13
(IV)  The term of office for a board member is three years; except14
that four of the six members appointed pursuant to subsection (1.5)(c)(III)15
of this section serve initial terms of two years. A board member may16
serve unlimited terms.17
(f) (I)  A member of the board of directors, except for members18
appointed pursuant to subsections (1.5)(c)(I) and (1.5)(c)(II) of this19
section, may receive a per diem stipend while on official enterprise20
business.21
(II)  The per diem stipend shall be at least equal to the Colorado22
state employee per diem for intra-state travel as established by the23
department of personnel.24
(III)  All members of the board of directors may receive25
reimbursement for actual and necessary expenses incurred while on26
official enterprise business.27
SB25-117
-12- (IV)  The enterprise may use money in the waste tire management1
enterprise fund, created in section 30-20-1404, to pay the per diem2
stipend to a board member and to reimburse a board member for actual3
and necessary expenses incurred as part of the enterprise's operating4
expenses.5
(g)  The department shall provide office space and administrative6
staff to the enterprise, if requested by the board. In accordance with7
subsection (1.5)(b)(VI)(B) of this section, the enterprise shall pay the8
department a fair market rate for any office space or administrative staff9
used by the board in performance of the enterprise's duties.10
(h) (I)  The department may transfer money from any legally11
available source to the enterprise for the purpose of defraying expenses12
incurred by the enterprise before it receives fee revenue. The enterprise13
may accept and expend any money so transferred, and, notwithstanding14
any state fiscal rule or generally accepted accounting principle that could15
otherwise be interpreted to require a contrary conclusion, such a transfer16
is a loan from the department to the enterprise that is required to be repaid17
and is not a grant for purposes of section 20 (2)(d) of article X of the state18
constitution or as defined in section 24-77-102 (7).19
(II)  All money transferred as a loan to the enterprise must be20
credited to the waste tire administration, enforcement, market21
development, and cleanup fund, created in section 30-20-1404 (1)(a).22
Loan liabilities that are recorded in the waste tire administration,23
enforcement, market development, and cleanup fund but that are not24
required to be paid in the current state fiscal year shall not be considered25
when calculating sufficient statutory fund balance for purposes of section26
24-75-109.27
SB25-117
-13- (III)  As the enterprise receives sufficient revenue in excess of1
expenses, it shall reimburse the department for the principal amount of2
any loan made by the department, plus interest at a rate agreed upon by3
the department and the enterprise.4
(i) (I)  On or before June 30, 2026, and every June 30 of each year5
thereafter, the enterprise shall prepare and submit an annual financial6
report to legislative council staff and the joint budget committee of the7
general assembly.8
(II)  The financial report prepared by the enterprise pursuant to9
subsection (1.5)(i)(I) of this section must include the enterprise's10
projected revenue and expenditures and proposed budget for the11
following fiscal year.12
(III)  The enterprise shall post a copy of the enterprise's financial13
report on the enterprise's public website.14
(2.5)  Waste tire administration fee. (a) (I)  Effective July 1,15
2025, retailers of new motor vehicle tires and new trailer tires shall16
collect a waste tire enterprise fee in an amount to be set by the enterprise,17
in coordination with the commission. The waste tire enterprise fee18
amount must not exceed two dollars and fifty cents on the sale of each19
new tire. The maximum per tire enterprise fee amount may be adjusted by20
the enterprise every two years in accordance with any annual percentage21
change in the United States department of labor's bureau of labor statistics22
consumer price index for the Denver-Aurora-Lakewood metropolitan area23
for all items paid by all urban consumers, or its applicable successor24
index.25
(II)  Effective July 1, 2025, the board of directors may review the26
waste tire enterprise fee on an annual basis and, in accordance with the27
SB25-117
-14- fee amount limit set forth in subsection (2.5)(a)(I) of this section, adjust1
the waste tire fee amount so that the waste tire enterprise fee is imposed2
in an amount that is:3
(A)  Reasonably related to the direct and indirect costs of operating4
the enterprise in accordance with this part 14 and the services provided5
by the enterprise, which costs must not exceed the equivalent of one-half6
of the waste tire enterprise fee collected for each new tire sold pursuant7
to this subsection (2.5);8
(B)  Sufficient to pay costs associated with providing rebates as9
described in section 30-20-1405; and10
(C)  Sufficient to provide grants to eligible entities pursuant to the11
waste tire management grant program established in section 30-20-1418.12
(b) (III)  The waste tire administration fee amount must 
BE AT13
LEAST FIFTY CENTS AND MUST not exceed half of the amount of the waste
14
tire enterprise fee ONE DOLLAR AND TWENTY -FIVE CENTS; except that the15
minimum amount of the waste tire administration fee on the sale of each16
new tire must be fifty cents or more COMMISSION, IN COORDINATION WITH17
THE DEPARTMENT, MAY ADJUST THE ADMINISTRATION FEE EVERY TWO18
YEARS IN ACCORDANCE WITH ANY ANNUAL PERCENTAGE CHANGE IN THE19
U
NITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS20
CONSUMER PRICE INDEX FOR THE DENVER-AURORA-LAKEWOOD21
METROPOLITAN AREA FOR ALL ITEMS PAID BY ALL URBAN CONSUMERS , OR22
ITS APPLICABLE SUCCESSOR INDEX.23
(c) (I)  On and after July 1, 2025, retailers of new motor vehicle24
tires and new trailer tires shall collect both the enterprise fee and
 the25
administration fee from the consumer at the point of sale.26
(II)  The receipt from the retailer to the consumer for every new27
SB25-117
-15- motor vehicle tire or new trailer tire purchased must contain the following1
statement in the largest bold-faced type capable based on point-of-sale2
software and on existing invoice printers, not to exceed fifteen points:3
"Section 30-20-1403, Colorado Revised Statutes, requires retailers to4
collect a waste tire enterprise fee set by the waste tire management5
enterprise, which is a government-owned business within the6
department of public health and environment, and a waste tire7
administration fee set by the solid and hazardous waste commission8
on the sale of each new motor vehicle tire and each new trailer tire."9
(III)  The retailer shall submit to the enterprise by the twentieth day10
of each quarter of each calendar year the enterprise fee collected pursuant11
to this section in the preceding quarter of the calendar year, together with12
any report required by the enterprise. The enterprise shall transmit the13
enterprise fees to the state treasurer, who shall credit them in accordance14
with subsection (3)(a) of this section or as specified in rules promulgated15
by the commission.16
(3) (a)  Beginning on July 1, 2025, the state treasurer shall17
distribute the revenue from the waste tire enterprise fee assessed in18
subsection (2.5)(a) of this section as follows:19
(I)  The portion of the enterprise fee collected to cover the costs20
described in subsection (2.5)(a)(II)(A) of this section to the waste tire21
management enterprise fund created in section 30-20-1404;22
(II)  The portion of the enterprise fee collected to cover the costs23
described in subsection (2.5)(a)(II)(B) of this section to the end users24
fund created in section 30-20-1405;25
(III)  All interest earned on the investment of money in the waste26
tire management enterprise fund to the waste tire management enterprise27
SB25-117
-16- fund. Any unexpended and unencumbered money in the waste tire1
management enterprise fund at the end of any fiscal year shall remain in2
the waste tire management enterprise fund.3
(IV)  All interest earned on the investment of money in the end4
users fund to the end users fund. Any unexpended and unencumbered5
money in the end users fund at the end of any fiscal year shall remain in6
the end users fund.7
SECTION 6. In Colorado Revised Statutes, repeal 30-20-14048
as follows:9
30-20-1404.  Waste tire management enterprise fund - creation10
- rules. (1) (a)  There is created in the state treasury the waste tire11
management enterprise fund, referred to in this section as the "fund",12
consisting of the fee revenue credited pursuant to section 30-20-140313
(2.5)(a) and any other money appropriated or transferred to it. Money14
credited to the fund is continuously appropriated to the enterprise for the15
purposes set forth in this section and to pay the enterprise's reasonable16
and necessary operating expenses.17
(b)  The state treasurer shall credit all interest earned on the18
investment of money in the fund to the fund. Any unexpended and19
unencumbered money in the fund at the end of any fiscal year shall20
remain in the fund.21
(2)  The enterprise may, in consultation with the department, use22
the money in the fund for:23
(a)   Collecting the waste tire enterprise fee assessed in section24
30-20-1403 (2.5)(a);25
(b) (I)  Inspecting retailers to determine whether all fees are being26
collected;27
SB25-117
-17- (II)  This subsection (2)(b) is repealed, effective July 1, 2025.1
(c) (I)  Enforcing the requirements of this part 14 pursuant to2
existing authority, including sections 30-20-113 and 30-20-114;3
(II)  This subsection (2)(c) is repealed, effective July 1, 2025.4
(d) (I)  Developing a system to address the receipt by registered5
persons of unmanifested waste tires from unregistered haulers;6
(II)  This subsection (2)(d) is repealed, effective July 1, 2025.7
(e)  Repealed.8
(f)  Hiring a contractor to clean up waste tires and tire-derived9
product that have been illegally disposed of or have been disposed of at10
a landfill pursuant to section 30-20-1009 (2) and funding a grant program11
to reimburse local governing authorities for cleaning up waste tires and12
tire-derived products that have been illegally disposed of or have been13
disposed of at a landfill pursuant to section 30-20-1009 (2);14
(g)  Financing one-time or occasional community cleanup events15
where waste tires are accepted for drop-off by persons not engaged in16
commercial or industrial activity and where, at the conclusion of the17
event, the waste tires are either picked up by a registered waste tire hauler18
or transported to a registered waste tire hauler or to any registered facility;19
(h)  Training and hiring contractors to provide training in the20
implementation of this part 14;21
(i) (I)  Providing grants to law enforcement, fire departments, local22
health departments, state agencies, and any other applicable entities for23
purchasing equipment and supplies to implement this part 14;24
(II)  This subsection (2)(i) is repealed, effective July 1, 2025.25
(j) (I)  Training of and enforcement by entities that enforce this26
part 14;27
SB25-117
-18- (II)  This subsection (2)(j) is repealed, effective July 1, 2025.1
(k) (I)  Awarding grants and developing educational programs for2
enforcement, fire prevention and suppression, proper waste tire3
management and disposal, training, and customer technical assistance;4
(II)  This subsection (2)(k) is repealed, effective July 1, 2025.5
(l) (I)  Maintaining an online complaint form and processes for law6
enforcement, fire departments, and citizens to report potential waste tire7
violations;8
(II)  This subsection (2)(l) is repealed, effective July 1, 2025.9
(m) and (n)  Repealed.10
(o)  Encouraging waste tire market development;11
(p)  Reimbursing the division of fire prevention and control in the12
department of public safety for:13
(I)  Inspections of facilities where waste tires are present14
conducted by the division to determine whether the waste tire collection15
facilities, waste tire processors, and waste tire monofills are in16
compliance with the rules promulgated by the director of the division17
pursuant to section 24-33.5-1203.5 (2); and18
(II)  Technical and other assistance the division provides to the19
department or the public related to waste tires, including assistance20
related to:21
(A)  The development of fire prevention education materials; and22
(B)  Review of fire prevention plans.23
(III)  This subsection (2)(p) is repealed, effective July 1, 2025.24
(q)  The payment of any bonds issued pursuant to section25
30-20-1403 (1.5)(b);26
(r)  Reimbursement of any contractors used for cleanup and27
SB25-117
-19- remediation activities engaged in pursuant to subsections (2)(f) and (2)(g)1
of this section;2
(s)  The payment of per diem and the reimbursement of actual and3
necessary expenses for board members while on official enterprise4
business;5
(t)  Funding grants in accordance with the waste tire management6
grant program established in section 30-20-1418; and7
(u)  Any other activity necessary to implement section 30-20-1403,8
as determined by the board of directors.9
(3) (a)  If the department is denied access or if consent to access10
has not been given to clean up a site where the department reasonably11
believes waste tires exist illegally, the department may obtain from the12
district court for the judicial district in which the property is located a13
warrant to enter the property and remove the waste tires.14
(b)  This subsection (3) is repealed, effective July 1, 2025.15
(4) (a)  In addition to any penalties assessed, the department may16
issue an order requiring the owner or operator to compensate the17
department for the cost of remediation of the site, and the department may18
request the attorney general to bring suit for compensation from the19
owner or operator for money expended remediating the site. The20
department shall use the recovered moneys to reimburse the fund for21
actual costs of remediating the site and of seeking compensation pursuant22
to this section. The state treasurer shall credit all additional moneys to the23
general fund.24
(b)  The department may place a lien on a property on which the25
department funds the remediation of waste tires pursuant to this section26
until the costs of remediation have been repaid to the department. If27
SB25-117
-20- complete repayment has not been made before a sale of the property, the1
department shall be repaid in full, to the extent possible, from proceeds2
of the sale.3
(c)  This subsection (4) is repealed, effective July 1, 2025.4
(5)  (a)  In providing assistance pursuant to this section, the5
enterprise shall give primary consideration to protection of public health6
and the environment.7
(b)  In awarding contracts for services pursuant to this section, the8
enterprise may give preferential bidding treatment to individuals or9
entities that will recycle, pursuant to rules of the department concerning10
recycling, and reuse, rather than dispose of, the waste tires.11
(6)  The enterprise shall, either itself or through a contractor, create12
a priority abatement list of illegal waste tire disposal sites.13
(7)  The enterprise, in coordination with the department and the14
department of transportation, shall systematically investigate and research15
the use of tire-derived aggregates in technically feasible and economically16
viable civil applications associated with the department of transportation's17
roadway mission. The department shall include any findings regarding18
tire-derived aggregates, as appropriate, in the department's annual report19
to the general assembly.20
(8) (a)  Notwithstanding any other provision of this section, on21
June 30, 2020, the state treasurer shall transfer five million three hundred22
seventy-two thousand four hundred fifteen dollars from the fund to the23
general fund.24
(b)  This subsection (8) is repealed, effective July 1, 2025.25
SECTION 7. In Colorado Revised Statutes, 30-20-1405, amend26
(1)(a), (1)(b), (2)(a) introductory portion, (3), (4)(a), (4)(b) introductory27
SB25-117
-21- portion, (5) introductory portion, (5)(c), (5)(e) introductory portion, (6)1
introductory portion, (6)(b)(II), (7), (8) introductory portion, and (9) as2
follows:3
30-20-1405.  End users fund - creation - quarterly rebates -4
rules - repeal. (1) (a)  There is created in the state treasury the end users5
fund, referred to in this section as the "fund", consisting of the fee6
revenue credited pursuant to section 30-20-1403 (3)(a)(II) ANY MONEY7
THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE8
FUND.9
(b)  The state treasurer shall credit all interest and any other return10
on the investment of money in the fund to the fund. Money credited to the11
fund is continuously appropriated to the enterprise DEPARTMENT for the12
purposes set forth in this section.13
(2) (a)  The enterprise, in consultation with the department shall14
use the money in the fund to provide quarterly rebates to in-state:15
(3)  The rebate is subject to the following conditions:16
(a)  The enterprise DEPARTMENT shall pay the rebate amount17
quarterly, on a per-ton basis; and18
(b)  Once the enterprise DEPARTMENT has paid a rebate on a19
particular quantity of tire-derived product, every part of that particular20
quantity of tire-derived product is no longer eligible for payment of the21
rebate.22
(4) (a)  The enterprise DEPARTMENT, in consultation with the23
commission, shall annually set the amount of the rebate, on a per-ton24
basis, and the enterprise DEPARTMENT shall pay the set rebate amount for25
each ton of qualified tire-derived product. The enterprise DEPARTMENT26
shall calculate the rebate to equal, but not exceed, the amount of the27
SB25-117
-22- anticipated income transferred into the fund during each succeeding1
twelve-month period.2
(b)  Each year, the enterprise DEPARTMENT shall continue to3
provide the rebate in accordance with the tiered structure set forth in4
subsection (5)(e) of this section until:5
(5)  The commission shall promulgate rules governing6
administration of the rebate. On and after the effective date of this7
section, as amended, the commission shall consult with the enterprise8
DEPARTMENT in adopting rules governing administration of the rebate.9
The commission's rules must include the following:10
(c)  If the balance of the fund is anticipated to be insufficient to11
pay out all of the rebates applied for, a requirement that the enterprise12
DEPARTMENT:13
(I)  Alternative daily cover must verify with the enterprise14
DEPARTMENT that the alternative daily cover meets all specification15
standards for all type-B tire-derived aggregate, as established by the16
ASTM standard D6270; and17
(II)  Tire-derived aggregate must verify with the enterprise18
DEPARTMENT that the tire-derived aggregate meets all specification19
standards for all type-A and type-B tire-derived aggregate, as established20
by the ASTM standard D6270; and21
(e)  Three tiers of rebate amounts that the enterprise DEPARTMENT22
may pay out based on the amount of the waste tire that was used and23
destroyed as follows:24
(6)  The enterprise DEPARTMENT:25
(b)  May deny:26
(II)  All future rebates pursuant to this section and grants of money27
SB25-117
-23- from the waste tire management enterprise fund created in section1
30-20-1404 to an applicant that knowingly or intentionally provides false2
information to the enterprise DEPARTMENT when applying for a rebate. or3
for a grant of money from the waste tire management enterprise fund4
(7)  Waste tires obtained from rural counties are eligible for an5
additional rebate amount of twenty-five dollars per ton; however, the6
additional rebate amount must not exceed the rebate amount for tier 37
rebates as determined by rule pursuant to subsection (5)(e)(III) of this8
section. To qualify for the additional rebate amount set forth in this9
subsection (7), an end user must provide evidence to the enterprise10
DEPARTMENT documenting the county of origin for each waste tire.11
(8)  The enterprise DEPARTMENT shall require that an end user12
submit an application for a rebate that contains self-certifications13
provided by the end user regarding:14
(9) (a)  On or after January 1, 2026, and until December 31, 2041,15
the enterprise DEPARTMENT may issue rebates applied for pursuant to this16
section.17
(b)  The commission, in consultation with the enterprise18
DEPARTMENT, shall repeal any rules concerning the fund and19
implementation of this section once the enterprise DEPARTMENT has20
issued the final rebates pursuant to subsection (9)(a) of this section.21
SECTION 8. In Colorado Revised Statutes, repeal 30-20-141822
as follows:23
30-20-1418.  Waste tire management grant program -24
definitions - repeal. (1)  As used in this section, unless the context25
otherwise requires:26
(a)  "Eligible entity" means the following entities that provide27
SB25-117
-24- services related to waste tire recycling, beneficial reuse, and management1
in Colorado:2
(I)  Municipalities, counties, and cities and counties;3
(II)  Nonprofit and for-profit businesses involved in waste tire4
recycling, beneficial reuse, and management; and5
(III)  Institutions of higher education and public or private schools.6
(b)  "Grant program" means the waste tire management grant7
program created in this section.8
(2) (a)  There is created the waste time management grant9
program, which shall be administered by the enterprise.10
(b)  The enterprise shall, subject to available appropriations and11
revenues, award grants from the waste tire management enterprise fund,12
created in section 30-20-1404, in accordance with this section.13
(3) (a)  The purpose of the grant program is to:14
(I)  Promote the development of waste tire recycling, beneficial15
reuse, and management strategies in accordance with this part 14;16
(II)  Develop waste tire recycling, beneficial reuse, and17
management facilities and infrastructure; and18
(III)  Expand waste tire recycling, beneficial reuse, and19
management services to fee payers.20
(b)  The grant program is intended to provide economic and21
technical assistance to eligible entities in their efforts related to the22
recycling, beneficial reuse, and management of waste tires.23
(4) (a)  An eligible entity may submit an application to the24
enterprise for a grant pursuant to the application policies and procedures25
established by the board.26
(b)  At a minimum, an application submitted to the board must27
SB25-117
-25- include the following information:1
(I)  An application narrative that describes how the eligible entity2
will use the grant, including how the grant will promote the recycling,3
beneficial reuse, and management of waste tires;4
(II)  An estimate of the cost of the equipment, infrastructure, or5
project the eligible entity is intending to fund with the grant and whether6
the equipment, infrastructure, or project meets the requirements specified7
in subsection (5) of this section;8
(III)  The amount of in-kind contributions or matching funds, if9
any, to the project budget from the applicant or other sources outside of10
the grant; and11
(IV)  Whether there is local community support for the grant12
application.13
(5) (a)  The board may award grants to eligible entities for the14
following purposes:15
(I)  The purchase of waste tire recycling, beneficial reuse, and16
management equipment or infrastructure;17
(II)  Staffing of waste tire recycling, beneficial reuse, and18
management facilities;19
(III)  Marketing and communications for waste tire recycling,20
beneficial reuse, and management services;21
(IV)  Policy and research development related to waste tire22
recycling, beneficial reuse, and management strategies;23
(V)  Community engagement regarding waste tire recycling,24
beneficial reuse, and management; and25
(VI)  Other projects or uses as determined by the board.26
(b) (I)  The board may award grants to an eligible entity for the27
SB25-117
-26- purchase of equipment or infrastructure, but no more than fifty percent of1
the cost of any equipment or infrastructure can be funded through the2
grant program.3
(II)  The board may award grants to an eligible entity that fund one4
hundred percent of the cost of a project that does not involve the purchase5
of equipment or infrastructure.6
(c)  In awarding grants to eligible entities, the board is subject to7
the following conditions:8
(I)  Up to forty percent of the enterprise's annual grant funding9
may go to a single award; and10
(II)  If the board awards a grant to an eligible entity for the11
purchase of infrastructure or equipment, the eligible entity is ineligible to12
receive a grant for the following five years.13
(6) (a) (I)  The board shall establish criteria and policies to14
determine which grants to award from the grant applications, which15
criteria and policies it shall make available to applicants.16
(II)  The board shall give priority to projects that advance17
sustainable design, production, recoverability, reuse, repair, or recycling18
of waste tires, with the highest priority given to projects that would keep19
waste tire material available for remanufacturing.20
(b)  The board shall establish policies for the grant program, which21
must include:22
(I)  An application form and application procedures;23
(II)  A deadline each year for when grant program applications24
must be submitted;25
(III)  A policy that requires a grant recipient to enter into a grant26
agreement with the board that includes a scope of work and deadlines for27
SB25-117
-27- the achievement of that work;1
(IV)  Criteria for measuring progress of the projects that receive2
funding through the grant program;3
(V)  A policy that requires annual reporting by grant recipients on4
the progress of the project financed by the grant; and5
(VI)  A policy regarding a grant recipient's noncompliance with the6
grant agreement entered into by the grant recipient and the board, which7
policy may include a mechanism for the board to convert the grant8
recipient's grant to a loan with interest.9
(7) (a)  The grant program is funded by the waste tire enterprise10
fee. The board may designate up to ten percent of the revenue generated11
from the enterprise fee to the grant program in any given year.12
(b)  The board shall not award any grants to eligible entities13
through the grant program after December 31, 2040.14
(8)  This section is repealed, effective December 31, 2042.15
SECTION 9. In Colorado Revised Statutes, 39-21-102, amend16
(7) as follows:17
39-21-102.  Scope. (7)  The provisions of This article 21 apply18
APPLIES to the fees imposed pursuant to part 3 of article 38.5 of title 2419
AND article 7.5 of title 25, and the fees collected pursuant to section20
40-10.1-607.5, but only to the extent that the provisions of this article 2121
are not inconsistent with the provisions of part 3 of article 38.5 of title 2422
and article 7.5 of title 25. and section 40-10.1-607.523
SECTION 10. In Colorado Revised Statutes, 39-21-119.5, repeal24
(2)(r), (4)(d)(II), and (4)(k) as follows:25
39-21-119.5.  Mandatory electronic filing of returns -26
mandatory electronic payment - penalty - waiver - definitions.27
SB25-117
-28- (2)  Except as provided in subsection (6) of this section, the executive1
director may, as specified in subsection (3) of this section, require the2
electronic filing of returns and require the payment of any tax or fee due3
by electronic funds transfer for the following:4
(r)  Any daily vehicle rental fee report required to be filed and5
payment required to be made pursuant to section 43-4-804 (1)(b)(II);6
(4)  Except as provided in subsection (6) of this section, on and7
after August 2, 2019, electronic filing of returns and the payment of any8
tax or fee by electronic funds transfer is required for the following:9
(d) (II)  Any road usage fee report or bridge and tunnel impact fee10
report required to be filed with a gasoline or special fuel report pursuant11
to section 43-4-217 (7);12
(k)  Any clean fleet per ride fee and air pollution mitigation per13
ride fee return required to be filed and payment required pursuant to14
section 40-10.1-607.5;15
SECTION 11. In Colorado Revised Statutes, 39-26-706, amend16
(5) as follows:17
39-26-706.  Miscellaneous sales and use tax exemptions -18
internet access - refractory materials - precious metal bullion and19
coins. (5)  On and after July 1, 2010 JULY 1, 2025, the collection of the20
waste tire ANY fee pursuant to section 30-20-1403, C.R.S., is exempt from21
taxation under part 1 of this article ARTICLE 26.22
SECTION 12. In Colorado Revised Statutes, 39-27-301, amend23
(1), (4), and (6); and repeal (3.3) as follows:24
39-27-301.  Definitions. As used in this part 3, unless the context25
otherwise requires:26
(1)  "Agreement" means a motor fuel tax and fee agreement under27
SB25-117
-29- this part 3.1
(3.3)  "Fee" means the road usage fee imposed by section 43-4-2172
(3) and (4) and the bridge and tunnel impact fee imposed by section3
43-4-805 (5)(g.5).4
(4)  "Licensee" means a motor carrier who has been issued a fuel5
tax license under a motor fuel tax and fee agreement.6
(6)  "Motor fuel" means all fuel subject to fees and subject to tax7
under this article 27.8
SECTION 13. In Colorado Revised Statutes, repeal9
40-10.1-607.5 as follows:10
40-10.1-607.5.  Fees - enterprise per ride fees - collection -11
distribution of fee proceeds - enterprise per ride fees fund - rules -12
definitions. (1)  As used in this section, unless the context otherwise13
requires:14
(a)  "Air pollution mitigation per ride fee" means the air pollution15
mitigation per ride fee imposed by the nonattainment area air pollution16
mitigation enterprise as required by section 43-4-1303 (7).17
(b)  "Car share ride" means a prearranged ride for which the rider18
agrees, at the time the rider requests the ride through a digital network, to19
be transported with another rider who has separately requested a20
prearranged ride.21
(c)  "Clean fleet per ride fee" means the clean fleet per ride fee22
imposed by the clean fleet enterprise created in section 25-7.5-103 (1)(a)23
as required by section 25-7.5-103 (7).24
(d)  "Enterprise per ride fees" means the clean fleet per ride fee25
and the air pollution mitigation per ride fee.26
(2)  For prearranged rides requested and accepted during state27
SB25-117
-30- fiscal year 2022-23 or any subsequent state fiscal year, each1
transportation network company shall pay to the department of revenue,2
at the time and in the manner prescribed by the department, the enterprise3
per ride fees, which, for the purpose of minimizing compliance costs for4
transportation network companies and administrative costs for the state,5
the department shall collect on behalf of the enterprises.6
(3)  The department of revenue shall transmit all net enterprise per7
ride fee revenue to the state treasurer, who shall credit the net revenue as8
follows:9
(a)  All net clean fleet per ride fee revenue shall be credited to the10
clean fleet enterprise fund created in section 25-7.5-103 (5); and11
(b)  All net air pollution mitigation per ride fee revenue shall be12
credited to the nonattainment area air pollution mitigation enterprise fund13
created in section 43-4-1303 (5).14
(4)  When collecting the enterprise per ride fees, the department of15
revenue shall retain an amount that does not exceed the total cost of16
collecting, administering, and enforcing the enterprise per ride fees and17
shall transmit the amount retained to the state treasurer, who shall credit18
it to the enterprise per ride fees fund, which is hereby created in the state19
treasury. All money in the enterprise per ride fees fund is continuously20
appropriated to the department of revenue to defray the costs incurred by21
the department in collecting, enforcing, and administering the enterprise22
per ride fees.23
(5)  The collection, administration, and enforcement of the24
enterprise per ride fees collected as required by subsection (2) of this25
section shall be performed by the executive director of the department of26
revenue in the same manner as the collection, administration, and27
SB25-117
-31- enforcement of state taxes pursuant to article 21 of title 39. The1
department of revenue may promulgate rules to implement this section. 2
SECTION 14. In Colorado Revised Statutes, 43-4-203, amend3
(1)(e) and (1)(f); and repeal (1)(g) as follows:4
43-4-203.  Sources of revenue. (1)  All net revenue from the5
following sources shall be paid into and credited to the highway users tax6
fund as soon as it is received:7
(e)  From interest or income earned on the deposit and investment8
of moneys MONEY in the fund; AND9
(f)  From the imposition of electric motor vehicle road usage10
equalization fees pursuant to section 42-3-304 (25)(a.5). and11
(g)  From the imposition of road usage fees pursuant to section12
43-4-217 (3) and (4).13
SECTION 15. In Colorado Revised Statutes, 43-4-205, amend14
(6.8)(a) as follows:15
43-4-205.  Allocation of fund. (6.8) (a)  Revenue from the electric16
motor vehicle fee, the electric motor vehicle road usage equalization fee,17
and the commercial electric motor vehicle fee imposed pursuant to18
section 42-3-304 (25) that is credited to the highway users tax fund as19
required by section 42-3-304 (25)(a), (25)(a.5), and (25)(a.7) and revenue20
from the road usage fees imposed pursuant to section 43-4-217 (3) and (4)21
that is credited to the highway users tax fund as required by section22
43-4-217 (8) must be allocated and expended in accordance with the23
formula specified in subsection (6)(b) of this section.24
SECTION 16. In Colorado Revised Statutes, repeal 43-4-217 as25
follows:26
43-4-217.  Additional funding - road usage fees - rules -27
SB25-117
-32- legislative declaration - definitions. (1)  The general assembly hereby1
finds and declares that:2
(a)  State motor fuel excise taxes levied on the purchase of motor3
fuels represent the largest source of state funding for the construction,4
maintenance, and supervision of the highways, roads, and streets of the5
state;6
(b)  The amount of motor fuel taxes paid for motor fuel used to7
propel a motor vehicle bears a reasonable relationship to the vehicle's use8
of and impact on the highways, roads, and streets of the state because the9
amount of motor fuel used by a vehicle is in large part a function of the10
amount of miles traveled by the vehicle and the weight of the vehicle;11
(c)  Motor fuel tax rates have not been increased in over12
twenty-five years, and motor fuel tax revenue has not kept pace and will13
not keep pace with inflation or the increased transportation infrastructure14
demands of the growing population of the state because:15
(I)  The amount of motor fuel tax paid does not depend on the16
price of motor fuel and therefore does not increase when motor fuel17
prices increase but instead depends on the quantity of motor fuel18
purchased, which for most drivers does not increase over time; and19
(II)  Motor vehicles have become more fuel-efficient over time;20
(d)  It is necessary, appropriate, and in the best interest of the state21
to mitigate the declining purchasing power of motor fuel excise taxes by22
collecting a road usage fee from persons who use the transportation23
system to travel by motor vehicle, basing the amount of the fee on24
reasonable estimates of fee payers' usage of and impact on the system,25
and using fee revenue solely for the construction, maintenance, and26
supervision of the highways of the state;27
SB25-117
-33- (e)  Because motor fuel consumption is reasonably related to use1
of and impact on the transportation system, it is fair to fee payers,2
reasonable, and appropriate to calculate the amount of the road usage fee3
based on their motor fuel consumption;4
(f)  It is also fair to fee payers, reasonable, and appropriate to5
streamline fee collection by collecting the road usage fee from6
distributors of motor fuels when motor fuel taxes are collected because7
the amount of the fee will be incorporated into the retail price of motor8
fuel and therefore passed on to users of the transportation system in9
precise proportion to their consumption of motor fuel and in reasonable10
relation to their use of and impact on the transportation system; and11
(g)  In accordance with numerous Colorado judicial precedents, the12
road usage fee and the bridge and tunnel impact fee imposed as13
authorized by section 43-4-805 (5)(g.5) and collected by the department14
of revenue on behalf of the statewide bridge and tunnel enterprise15
pursuant to this section are fees and are not taxes because:16
(I)  The fees are imposed not to raise revenue for general17
governmental purposes but instead are imposed for the sole purpose of18
funding the construction, maintenance, and supervision of the19
transportation system, with a priority placed on projects that are20
designated as ten-year vision projects on the department's ten-year vision21
project list;22
(II)  Fee revenue defrays costs incurred by the state in funding23
construction, maintenance, and supervision of the transportation system24
that is necessitated by increased use of the system by the fee payers who25
use motor vehicles on the transportation system; and26
(III)  The fees are imposed at rates that are reasonably calculated27
SB25-117
-34- to defray the costs of providing the service, are based on the use and1
impact on the transportation system by fee payers, and are thus2
proportional to the benefits received by fee payers.3
(2)  As used in this section:4
(a)  "Gasoline" means gasoline, as defined in section 39-27-1015
(12), that is taxed at the rate specified in section 39-27-102 (1)(a)(II)(A).6
(b)  "Inflation" means the average annual percentage change in the7
United States department of transportation, federal highway8
administration, national highway construction cost index or its applicable9
predecessor or successor index for the five-year period ending on the last10
December 31 before a state fiscal year for which an adjustment to the11
road usage fee imposed pursuant to subsection (3) or (4) of this section12
is to be made begins.13
(c)  "Special fuel" means special fuel, as defined in section14
39-27-101 (29), that is taxed at the rate specified in section 39-27-10215
(1)(a)(II)(B). "Special fuel" does not include diesel fuel and kerosene to16
which indelible dye meeting federal regulations is added before or upon17
removal from a terminal so long as such fuel is not used for a taxable18
purpose as described in section 39-27-102.5 (1.5).19
(3) (a)  Except as otherwise provided in subsection (6) of this20
section, on and after April 1, 2023, each distributor of gasoline that pays21
the excise tax imposed on gasoline shall also pay, at the same time and in22
the same manner as the excise tax, a road usage fee in the amount23
specified in subsection (3)(b)(I) of this section or annually calculated by24
the department of revenue as required by subsection (3)(b)(II) or25
(3)(b)(III) of this section.26
(b) (I)  The amount of the road usage fee for each gallon of27
SB25-117
-35- gasoline acquired, sold, offered for sale, or used in this state from April1
1, 2023, through June 30, 2023, and during state fiscal years 2023-242
through 2031-32 is:3
(A)  Two cents per gallon from April 1, 2023, through June 30,4
2023;5
(B)  Three cents per gallon for state fiscal year 2023-24;6
(C)  Four cents per gallon for state fiscal year 2024-25;7
(D)  Five cents per gallon for state fiscal year 2025-26;8
(E)  Six cents per gallon for state fiscal year 2026-27;9
(F)  Seven cents per gallon for state fiscal year 2027-28; and10
(G)  Eight cents per gallon for state fiscal years 2028-29 through11
2031-32.12
(II)  Except as otherwise provided in subsection (3)(b)(III) of this13
section, the amount of the road usage fee for each gallon of gasoline14
acquired, sold, offered for sale, or used in this state during state fiscal15
year 2032-33 or during any subsequent state fiscal year is the sum of:16
(A)  The nominal amount of eight cents on December 31, 2030,17
adjusted for inflation; and18
(B)  The difference between the nominal amount of twenty-two19
cents on December 31, 2030, adjusted for inflation, and the nominal20
amount of twenty-two cents on December 31, 2030.21
(III)  An adjustment for inflation shall be made pursuant to22
subsection (3)(b)(II) of this section only if the rate of inflation is positive23
and must be the lesser of the actual rate of inflation or five percent. The24
department of revenue shall calculate the inflation adjusted amount of the25
road usage fee for state fiscal year 2032-33 and shall publish the amount26
no later than April 15, 2032.27
SB25-117
-36- (4) (a)  Except as otherwise provided in subsection (6) of this1
section, on and after April 1, 2023, each distributor of special fuel that2
pays the excise tax imposed on special fuel shall also pay, at the same3
time and in the same manner as the excise tax, a road usage fee in the4
amount specified in subsection (4)(b)(I) of this section or annually5
calculated by the department of revenue as required by subsection6
(4)(b)(II) or (4)(b)(III) of this section.7
(b) (I)  The amount of the road usage fee for each gallon of special8
fuel acquired, sold, offered for sale, or used in this state from April 1,9
2023, through June 30, 2023, and during state fiscal years 2023-2410
through 2031-32 is:11
(A)  Two cents per gallon from April 1, 2023, through June 30,12
2023;13
(B)  Three cents per gallon for state fiscal year 2023-24;14
(C)  Four cents per gallon for state fiscal year 2024-25;15
(D)  Five cents per gallon for state fiscal year 2025-26;16
(E)  Six cents per gallon for state fiscal year 2026-27;17
(F)  Seven cents per gallon for state fiscal year 2027-28; and18
(G)  Eight cents per gallon for state fiscal years 2028-29 through19
2031-32.20
(II)  Except as otherwise provided in subsection (4)(b)(III) of this21
section, the amount of the road usage fee for each gallon of special fuel22
acquired, sold, offered for sale, or used in this state during state fiscal23
year 2032-33 or during any subsequent state fiscal year is the sum of:24
(A)  The nominal amount of eight cents on December 31, 2030,25
adjusted for inflation; and26
(B)  The difference between the nominal amount of twenty and27
SB25-117
-37- one-half cents on December 31, 2030, adjusted for inflation, and the1
nominal amount of twenty and one-half cents on December 31, 2030.2
(III)  An adjustment for inflation shall be made pursuant to3
subsection (4)(b)(II) of this section only if the rate of inflation is positive4
and must be the lesser of the actual rate of inflation or five percent. The5
department of revenue shall calculate the inflation adjusted amount of the6
road usage fee for state fiscal year 2032-33 and shall publish the amount7
no later than April 15, 2032.8
(5)  Each distributor of special fuel that pays the excise tax9
imposed on special fuel shall also pay, at the same time and in the same10
manner as the excise tax and the road usage fee imposed pursuant to11
subsections (3) and (4) of this section, a bridge and tunnel impact fee in12
the amount imposed by the statewide bridge and tunnel enterprise as13
authorized by section 43-4-805 (5)(g.5). The collection and14
administration of the bridge and tunnel impact fee by the department of15
revenue on behalf of the statewide bridge and tunnel enterprise is done on16
behalf of the enterprise for the purpose of minimizing compliance costs17
for distributors and administrative costs for the state, and all bridge and18
tunnel impact fee revenue is revenue of the enterprise only and is19
excluded from state fiscal year spending, as defined in section 24-77-10220
(17).21
(6) (a)  A distributor is not required to pay the road usage fee22
imposed by subsection (3) or (4) of this section or the bridge and tunnel23
impact fee imposed as authorized by section 43-4-805 (5)(g.5), if the24
distributor would otherwise be liable for the excise tax on the gasoline or25
special fuel subject to the fee but is allowed to sell the gasoline or special26
fuel without payment of the applicable excise tax pursuant to section27
SB25-117
-38- 39-27-102 (1)(b)(II) or section 39-27-102.5 (2)(b).1
(b)  Gasoline or special fuel removed from a terminal in this state2
by a person licensed as an exporter pursuant to section 39-27-1043
exclusively for delivery to another state is not subject to the road usage4
fee imposed by subsection (3) or (4) of this section or the bridge and5
tunnel impact fee imposed as authorized by section 43-4-805 (5)(g.5).6
(c)  The burden of proving that gasoline or special fuel is not7
subject to the road usage fee imposed by subsection (3) or (4) of this8
section or the bridge and tunnel impact fee imposed as authorized by9
section 43-4-805 (5)(g.5) is on the distributor under such reasonable10
requirements of proof as the executive director of the department of11
revenue may prescribe.12
(7)  The collection, administration, and enforcement of the road13
usage fees imposed by subsection (3) or (4) of this section and the bridge14
and tunnel impact fee imposed as authorized by section 43-4-805 (5)(g.5)15
shall be performed by the executive director of the department of revenue16
in the same manner as the collection, administration, and enforcement of17
state gasoline and special fuel taxes pursuant to article 27 of title 39. A18
distributor who pays the road usage fee as required by subsection (3) or19
(4) of this section shall remit the fee, together with any bridge and tunnel20
impact fee that the distributor also pays as required by section 43-4-80521
(5)(g.5) and subsection (5) of this section, to the department of revenue22
at the same time and in the same manner in which the distributor remits23
gasoline or special fuel taxes collected by the distributor as required by24
article 27 of title 39. The department of revenue may promulgate rules to25
implement this section.26
(8)  In accordance with section 43-4-203 (1)(f), the state treasurer27
SB25-117
-39- shall credit all road usage fee revenue collected as required by this section1
to the highway users tax fund created in section 43-4-201. In accordance2
with section 43-4-805 (5)(g.5), the state treasurer shall credit all bridge3
and tunnel impact fee revenue collected as required by this section to the4
statewide bridge and tunnel enterprise special revenue fund created in5
section 43-4-805 (3)(a). All fees credited to the highway users tax fund6
pursuant to this section shall be allocated from the highway users tax fund7
to the state, counties, and municipalities as required by section 43-4-2058
(6.8).9
SECTION 17. In Colorado Revised Statutes, 43-4-802, amend10
(2)(c) and (2)(d) as follows:11
43-4-802.  Legislative declaration. (2)  The general assembly12
further finds and declares that:13
(c)  Increasing funding for designated bridge projects, preventative14
maintenance bridge projects, tunnel projects, and road safety projects in15
the short- and medium-term through the imposition of bridge and road16
safety surcharges a bridge and tunnel impact fee, and other new fees at17
rates reasonably calculated based on the benefits received by the persons18
paying the fees will not only provide funding to complete the projects but19
will also accelerate the state's economic recovery by increasing bridge,20
tunnel, and road construction, repair, reconstruction, and maintenance21
activity, as well as related economic activity, and by employing22
significant numbers of Coloradans;23
(d)  The creation of a statewide bridge and tunnel enterprise24
authorized to complete designated bridge projects, preventative25
maintenance bridge projects, and tunnel projects, to impose a bridge26
safety surcharge and a bridge and tunnel impact fee and issue revenue27
SB25-117
-40- bonds, and, if required approvals are obtained, to contract with the state1
to receive one or more loans of money received by the state under the2
terms of one or more financed purchase of an asset or certificate of3
participation agreements authorized by this part 8 and to use the revenues4
generated by the bridge safety surcharge and the bridge and tunnel impact5
fee to repay any such loan or loans, will improve the safety and efficiency6
of the state transportation system by allowing the state to accelerate the7
repair, reconstruction, and replacement of structurally deficient,8
functionally obsolete, and rated as poor bridges, to perform preventative9
maintenance on bridges rated as fair and good, and to repair, maintain,10
and more safely operate tunnels;11
SECTION 18. In Colorado Revised Statutes, 43-4-804, repeal12
(1)(b) as follows:13
43-4-804.  Highway safety projects - surcharges and fees -14
crediting of money to highway users tax fund - definition. (1)  The15
following surcharges, fees, and fines shall be collected and credited to the16
highway users tax fund created in section 43-4-201 (1)(a) and allocated17
to the state highway fund, counties, and municipalities as specified in18
section 43-4-205 (6.3):19
(b) (I) (A)  Except as otherwise provided in subsections (1)(b)(III)20
and (1)(b)(IV) of this section, a daily vehicle rental fee is imposed on all21
short-term vehicle rentals at the rate of two dollars per day; except that a22
subsequent renewal of a short-term vehicle rental is exempt from the fee23
to the extent that the renewal extends the total rental period beyond thirty24
days. The rental invoice shall list the daily vehicle rental fee separately as25
a Colorado road safety program fee. On and after July 1, 2022, a car26
sharing program, as defined in section 6-1-1202 (4), shall collect the daily27
SB25-117
-41- vehicle rental fee for any short-term vehicle rental of twenty-four hours1
or longer that is enabled by the car sharing program.2
(B)  As used in this subsection (1)(b), "short-term vehicle rental"3
means the rental of any motor vehicle, as defined in section 42-1-1024
(58), with a gross vehicle weight rating of twenty-six thousand pounds or5
less that is rented within Colorado for a period of not more than thirty6
days.7
(II)  A person who collects the daily vehicle rental fee imposed by8
subsection (1)(b)(I) of this section and who pays specific ownership tax9
on the vehicles rented in the manner specified in either section 42-3-10710
(11) or (12), or both, shall, no later than the twentieth day of each month,11
submit to the department of revenue a report, using forms furnished by12
the department of revenue, of daily vehicle rental fees collected for the13
preceding month and shall include with the report the remittance of all14
such fees. A person who collects the daily vehicle rental fee imposed by15
subsection (1)(b)(I) of this section but does not pay specific ownership16
tax on the vehicles in the manner specified in either section 42-3-107 (11)17
or (12), or both, shall submit the report and the remittance of fees18
collected in the same manner or in such other manner as the executive19
director of the department of revenue may prescribe by rules promulgated20
in accordance with article 4 of title 24. The executive director of the21
department of revenue shall forward all daily vehicle rental fees collected,22
together with all congestion impact fees imposed by the transportation23
enterprise pursuant to section 43-4-806 (7.6) collected, to the state24
treasurer and shall identify the amounts of each fee being forwarded. The25
state treasurer shall credit the daily vehicle rental fees imposed pursuant26
to subsection (1)(b)(I)(A) of this section to the highway users tax fund27
SB25-117
-42- and shall credit the congestion impact fees imposed by the transportation1
enterprise pursuant to section 43-4-806 (7.6) to the transportation special2
fund as required by section 43-4-806 (7.6)(b).3
(III)  Because vehicle sharing is an alternative to personal vehicle4
ownership that reduces the number of vehicle miles traveled on the5
highways of the state by encouraging the use of transit and reducing the6
number of trips made in privately owned vehicles and thereby benefits the7
state by reducing traffic congestion, greenhouse gas emissions, and the8
amount of wear and tear on the highways, the daily vehicle rental fee9
imposed pursuant to this paragraph (b) shall not be imposed on any10
vehicle rented pursuant to a vehicle sharing arrangement if:11
(A)  Under the terms of the arrangement, an organization provides12
passenger vehicles for the use of members of the organization who have13
paid a membership fee to the organization and charges an additional fee14
for each use of a passenger vehicle;15
(B)  A member of the organization is not required to enter into a16
separate written agreement with the organization each time the member17
reserves and uses a passenger vehicle;18
(C)  The average paid usage period for all passenger vehicles19
provided by the organization during the prior calendar year was six hours20
or less;21
(D)  At least three-quarters of all passenger vehicle rentals made22
by the organization during the prior calendar year in each municipality or23
county in which the organization does business were made to members24
of the organization who maintain a residence within the city or county;25
(E)  Fuel and full insurance coverage are included in the member26
usage rates; and27
SB25-117
-43- (F)  Passenger vehicles provided by the organization are stationed1
in self-serve locations throughout the county or municipality in which the2
organization does business.3
(IV) (A)  For short-term vehicle rentals beginning during state4
fiscal year 2022-23 and for short-term vehicle rental periods beginning5
during any subsequent state fiscal year, the department of revenue shall6
annually adjust the amount of the daily vehicle rental fee for inflation.7
The department of revenue shall calculate the inflation adjusted amount8
of the short-term vehicle rental fee for each state fiscal year and shall9
publish the amount no later than the May 1 of the calendar year in which10
the state fiscal year begins.11
(B)  As used in this subsection (1)(b)(IV), "inflation" means the12
average annual percentage change in the United States department of13
labor, bureau of labor statistics, consumer price index for14
Denver-Aurora-Lakewood for all items and all urban consumers, or its15
applicable predecessor or successor index, for the five years ending on the16
last December 31 before a state fiscal year for which an inflation17
adjustment to the short-term vehicle rental fee is to be made begins.18
SECTION 19. In Colorado Revised Statutes, 43-4-805, amend19
(1)(b)(II), (2)(b)(I), (2)(c), (3)(a), (5)(r)(I), and (5)(r)(III)(A); and repeal20
(5)(g)(III) and (5)(g.5) as follows:21
43-4-805.  Statewide bridge enterprise - creation - board -22
funds - powers and duties - legislative declaration - definitions.23
(1)  The general assembly hereby finds and declares that:24
(b)  Due to the limited availability of state and federal funding and25
the need to accomplish the financing, repair, reconstruction, and26
replacement of designated bridges; the completion of preventative27
SB25-117
-44- maintenance bridge projects; and the completion of tunnel projects as1
promptly and efficiently as possible, it is necessary to create a statewide2
bridge and tunnel enterprise and to authorize the enterprise to:3
(II)  Impose a bridge safety surcharge a bridge and tunnel impact4
fee, and a bridge and tunnel retail delivery fee at rates reasonably5
calculated to defray the costs of completing designated bridge projects,6
preventative maintenance bridge projects, and tunnel projects and7
distribute the burden of defraying the costs in a manner based on the8
benefits received by persons paying the fees and using designated bridges9
and tunnels and receiving retail deliveries, receive and expend revenue10
generated by the surcharge and fees FEE and other money, issue revenue11
bonds and other obligations, contract with the state, if required approvals12
are obtained, to receive one or more loans of money received by the state13
under the terms of one or more financed purchase of an asset or certificate14
of participation agreements authorized by this part 8, expend revenue15
generated by the surcharge 
AND FEE to repay any such loan or loans16
received, and exercise other powers necessary and appropriate to carry17
out its purposes; and18
(2) (b)  The business purpose of the bridge enterprise is to finance,19
repair, reconstruct, and replace any designated bridge in the state,20
complete preventative maintenance bridge projects, and complete tunnel21
projects and, as agreed upon by the enterprise and the commission, or the22
department to the extent authorized by the commission, to maintain the23
bridges it finances, repairs, reconstructs, and replaces. To allow the24
bridge enterprise to accomplish this purpose and fully exercise its powers25
and duties through the bridge enterprise board, the bridge enterprise may:26
(I)  Impose a bridge safety surcharge a bridge and tunnel impact
27
SB25-117
-45- fee, and a bridge and tunnel retail delivery fee as authorized by1
subsections (5)(g) (5)(g.5), and (5)(g.7) of this section;2
(c)  The bridge enterprise constitutes an enterprise for purposes of3
section 20 of article X of the state constitution so long as it retains the4
authority to issue revenue bonds and receives less than ten percent of its5
total revenues in grants from all Colorado state and local governments6
combined. So long as it constitutes an enterprise pursuant to this7
subsection (2)(c), the bridge enterprise shall not be subject to any8
provisions of section 20 of article X of the state constitution. Consistent9
with the determination of the Colorado supreme court in Nicholl v. E-47010
Public Highway Authority, 896 P.2d 859 (Colo. 1995), that the power to11
impose taxes is inconsistent with "enterprise" status under section 20 of12
article X of the state constitution, the general assembly finds and declares13
that a bridge safety surcharge a bridge and tunnel impact fee, or a bridge14
and tunnel retail delivery fee imposed by the bridge enterprise as15
authorized by subsection (5)(g) (5)(g.5), or (5)(g.7) of this section is not16
a tax but is instead a fee imposed by the bridge enterprise to defray the17
cost of completing designated bridge projects, preventative maintenance18
bridge projects, and tunnel projects that the enterprise provides as a19
specific service to the persons upon whom the fee is imposed and at rates20
reasonably calculated based on the benefits received by such persons.21
(3) (a)  The statewide bridge and tunnel enterprise special revenue22
fund, referred to in this part 8 as the "bridge special fund", is hereby23
created in the state treasury. All revenue received by the bridge enterprise,24
including, but not limited to, revenue from a bridge safety surcharge25
imposed as authorized by subsection (5)(g) of this section, revenue from26
a bridge and tunnel impact fee imposed as authorized by subsection27
SB25-117
-46- (5)(g.5) of this section, revenue from a bridge and tunnel retail delivery1
fee imposed as authorized by subsection (5)(g.7) of this section, and any2
money loaned to the enterprise by the state pursuant to subsection (5)(r)3
of this section, shall be deposited into the bridge special fund. The bridge4
enterprise board may establish separate accounts within the bridge special5
fund as needed in connection with any specific designated bridge project,6
preventative maintenance bridge project, or tunnel project. The bridge7
enterprise also may deposit or permit others to deposit other money into8
the bridge special fund, but in no event may revenue from any tax9
otherwise available for general purposes be deposited into the bridge10
special fund. The state treasurer, after consulting with the bridge11
enterprise board, shall invest any money in the bridge special fund,12
including any surplus or reserves, but excluding any proceeds from the13
sale of bonds or earnings on such proceeds invested pursuant to section14
43-4-807 (2), that are not needed for immediate use. Such money may be15
invested in the types of investments authorized in sections 24-36-109,16
24-36-112, and 24-36-113.17
(5)  In addition to any other powers and duties specified in this18
section, the bridge enterprise board has the following powers and duties:19
(g) (III)  The bridge safety surcharge shall not be imposed on any20
rental vehicle on which a daily vehicle rental fee is imposed pursuant to21
section 43-4-804 (1)(b).22
(g.5) (I)  In furtherance of its business purpose, to impose a bridge23
and tunnel impact fee to be paid in the amount imposed by the bridge24
enterprise as authorized by subsection (5)(g.5)(II) or (5)(g.5)(III) of this25
section by each distributor of special fuel, as defined in section 43-4-21726
(2)(c), that pays the excise tax imposed on special fuel pursuant to article27
SB25-117
-47- 27 of title 39, at the same time and in the same manner as the excise tax1
and the road usage fee imposed pursuant to section 43-4-217 (3) and (4).2
For the purpose of minimizing compliance costs for distributors and3
administrative costs for the state, the department of revenue shall collect4
and administer the bridge and tunnel impact fee on behalf of the bridge5
enterprise in the same manner in which it collects and administers the6
excise tax and the road usage fee imposed pursuant to section 43-4-2177
(3) and (4).8
(II)  For each gallon of special fuel acquired, sold, offered for sale,9
or used in this state during state fiscal years 2022-23 through 2031-32, the10
bridge enterprise shall impose the bridge and tunnel impact fee in an11
amount of up to:12
(A)  Two cents per gallon for state fiscal year 2022-23;13
(B)  Three cents per gallon for state fiscal year 2023-24;14
(C)  Four cents per gallon for state fiscal year 2024-25;15
(D)  Five cents per gallon for state fiscal year 2025-26;16
(E)  Six cents per gallon for state fiscal year 2026-27;17
(F)  Seven cents per gallon for state fiscal year 2027-28; and18
(G)  Eight cents per gallon for state fiscal years 2028-29 through19
2031-32.20
(III)  For each gallon of special fuel acquired, sold, offered for21
sale, or used in this state during state fiscal year 2032-33 or during any22
subsequent state fiscal year, the bridge enterprise shall impose the bridge23
and tunnel impact fee in an amount of up to the maximum amount of the24
fee for the prior state fiscal year adjusted for inflation. The bridge25
enterprise shall notify the department of revenue of the amount of the26
bridge and tunnel impact fee to be collected for each state fiscal year no27
SB25-117
-48- later than March 15 of the calendar year in which the state fiscal year1
begins, and the department of revenue shall publish the amount no later2
than April 15 of the calendar year in which the state fiscal year begins.3
(IV)  As used in this subsection (5)(g.5), "inflation" means the4
average annual percentage change in the United States department of5
transportation, federal highway administration, national highway6
construction cost index or its applicable predecessor or successor index7
for the five-year period ending on the last December 31 before a state8
fiscal year for which an adjustment to the bridge and tunnel impact fee9
imposed as authorized by this subsection (5)(g.5) is to be made begins.10
(r) (I)  To contract with the state to borrow money under the terms11
of one or more loan contracts entered into by the state and the bridge12
enterprise pursuant to subsection (5)(r)(III) of this section, to expend any13
money borrowed from the state for the purpose of completing designated14
bridge projects, preventative maintenance bridge projects, and tunnel15
projects and for any other authorized purpose that constitutes the16
construction, supervision, and maintenance of the public highways of this17
state for purposes of section 18 of article X of the state constitution, and18
to use revenue generated by any bridge safety surcharge bridge and tunnel19
impact fee, or bridge and tunnel retail delivery fee imposed pursuant to20
subsection (5)(g) (5)(g.5), or (5)(g.7) of this section and any other legally21
available money of the bridge enterprise to repay the money borrowed22
and any other amounts payable under the terms of the loan contract.23
(III) (A)  If the state treasurer receives a list from the governor24
pursuant to subsection (5)(r)(II) of this section, the state, acting by and25
through the state treasurer, may enter into a loan contract with the bridge26
enterprise and may raise the money needed to make a loan pursuant to the27
SB25-117
-49- terms of the loan contract by selling or leasing one or more of the state1
buildings or other state capital facilities on the list. The state treasurer2
shall have sole discretion to enter into a loan contract on behalf of the3
state and to determine the amount of a loan; except that the principal4
amount of a loan shall not exceed the maximum amount specified by the5
governor pursuant to subsection (5)(r)(II) of this section. The state6
treasurer shall also have sole discretion to determine the timing of the7
entry of the state into any loan contract or the sale or lease of one or more8
state buildings or other state capital facilities. The loan contract shall9
require the bridge enterprise to pledge to the state all or a portion of the10
revenues of any bridge safety surcharge bridge and tunnel impact fee, or11
bridge and tunnel retail delivery fee imposed pursuant to subsection (5)(g)12
(5)(g.5), or (5)(g.7) of this section for the repayment of the loan and may13
also require the bridge enterprise to pledge to the state any other legally14
available revenue of the bridge enterprise. Any loan contract entered into15
by the state, acting by and through the state treasurer, and the bridge16
enterprise pursuant to this subsection (5)(r)(III)(A) and any pledge of17
revenue by the bridge enterprise pursuant to such a loan contract shall be18
only for the benefit of, and enforceable only by, the state and the bridge19
enterprise. Specifically, but without limiting the generality of said20
limitation, no such loan contract or pledge shall be for the benefit of, or21
enforceable by, a seller under a financed purchase of an asset or22
certificate of participation agreement entered into pursuant to this23
subsection (5)(r)(III), an owner of any instrument evidencing rights to24
receive rentals or other payments made and to be made under such a25
financed purchase of an asset or certificate of participation agreement as26
authorized by subsection (5)(r)(IV)(B) of this section, a party to any27
SB25-117
-50- ancillary agreement or instrument entered into pursuant to subsection1
(5)(r)(V) of this section, or a party to any interest rate exchange2
agreement entered into pursuant to subsection (5)(r)(VII)(A) of this3
section.4
SECTION 20. In Colorado Revised Statutes, 43-4-806, amend5
(7.6)(b) as follows:6
43-4-806.  High-performance transportation enterprise -7
creation - enterprise status - board - funds - powers and duties - user8
fees - limitations - reporting requirements - violations on the peak9
period shoulder lanes - legislative declaration - definitions.10
(7.6) (b)  The congestion impact fee must be collected, submitted to the11
department of revenue, administered by the department of revenue, and12
forwarded by the department of revenue to the state treasurer in the same13
manner in which the daily vehicle rental fee 
THAT WAS imposed pursuant14
to section 43-4-804 (1)(b)(I)(A) is
 SECTION 43-4-804 (1)(b) BEFORE THE15
REPEAL OF SAID SECTION 43-4-804 (1)(b) BY THIS SENATE BILL 25-___,16
ENACTED IN 2025, WAS collected, submitted, administered, and forwarded17
pursuant to section 43-4-804 (1)(b)(II) The department of revenue, when18
forwarding the congestion impact fee to the state treasurer, with the daily19
vehicle rental fee imposed pursuant to section 43-4-804 (1)(b)(I)(A), shall20
identify the amounts of each fee being forwarded, and AS SAID21
SUBSECTION EXISTED PRIOR TO ITS REPEAL BY THIS SENATE BILL 25-___,22
ENACTED IN 2025. The state treasurer shall credit all congestion impact23
fees to the transportation special fund. Any vehicle rented pursuant to a24
vehicle sharing arrangement that is exempt, pursuant to section 43-4-80425
(1)(b)(III), from the daily vehicle rental fee imposed pursuant to section26
43-4-804 (1)(b)(I)(A) is also exempt from the congestion impact fee.27
SB25-117
-51- SECTION 21. In Colorado Revised Statutes, 43-4-1301, amend1
(1)(a), (1)(c), (2)(a), and (2)(c) as follows:2
43-4-1301.  Legislative declaration. (1)  The general assembly3
hereby finds and declares that:4
(a)  Rapid and continuing growth in retail deliveries made by5
motor vehicles and in prearranged rides arranged through transportation6
network companies has increased and will continue to increase traffic7
congestion and air pollution from motor vehicle emissions, along with the8
adverse environmental and health impacts that result from such pollution,9
in nonattainment areas, including but not limited to disproportionately10
impacted communities and communities adjacent to highways;11
(c)  Instead of reducing the impacts of retail deliveries and12
prearranged rides arranged through transportation network companies, by13
limiting retail delivery and prearranged ride activity through regulation,14
it is more appropriate to continue to allow persons who receive retail15
deliveries and benefit from the convenience afforded by unfettered retail16
deliveries and to allow transportation network companies that arrange17
prearranged rides to continue to provide RECEIVE that service without18
undue restrictions and to instead impose a small fee on each retail19
delivery and prearranged ride and use fee revenue to fund necessary20
mitigation activities.21
(2)  The general assembly further finds and declares that:22
(a)  The enterprise provides impact remediation services when, in23
exchange for the payment of air pollution mitigation per ride fees by24
transportation network companies and air pollution mitigation retail25
delivery fees by or on behalf of purchasers of tangible personal property26
for retail delivery, it acts as authorized by this section to mitigate the27
SB25-117
-52- impacts of prearranged rides arranged through transportation network1
companies and residential and commercial deliveries on the state's2
transportation infrastructure, air quality, and emissions;3
(c)  Consistent with the determination of the Colorado supreme4
court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo.5
1995), that the power to impose taxes is inconsistent with enterprise status6
under section 20 of article X of the state constitution, it is the conclusion7
of the general assembly that the revenue collected by the enterprise is8
generated by fees, not taxes, because the air pollution mitigation per ride9
fee and the air pollution mitigation retail delivery fee imposed by the10
enterprise as authorized by section 43-4-1303 are IS:11
(I)  Imposed for the specific purpose of allowing the enterprise to12
defray the costs of providing the remediation services specified in this13
section, including mitigating impacts to air quality and greenhouse gas14
emissions caused by the activities on which the fees are FEE IS assessed,15
and contribute CONTRIBUTES to the implementation of the comprehensive16
regulatory scheme required for the planning, funding, development,17
construction, maintenance, and supervision of a sustainable transportation18
system; and19
(II)  Collected at rates that are A RATE THAT IS reasonably20
calculated based on the impacts caused by fee payers and the cost of21
remediating those impacts; and22
SECTION 22. In Colorado Revised Statutes, 43-4-1302, amend23
(15); and repeal (4), (18), (22), (24), and (25) as follows:24
43-4-1302.  Definitions. As used in this part 13, unless the context25
otherwise requires:26
(4)  "Car share ride" means a prearranged ride for which the rider27
SB25-117
-53- agrees, at the time the rider requests the ride through a digital network, to1
be transported with another rider who has separately requested a2
prearranged ride regardless of whether or not another rider is actually3
transported with the rider.4
(15)  "Inflation" means the average annual percentage change in5
the United States department of labor, bureau of labor statistics, consumer6
price index for Denver-Aurora-Lakewood for all items and all urban7
consumers, or its applicable predecessor or successor index, for the five8
years ending on the last December 31 before a state fiscal year for which9
an inflation adjustment to be made to the air pollution mitigation per ride10
fee imposed by section 43-4-1303 (7) or the air pollution mitigation retail11
delivery fee imposed by section 43-4-1303 (8) begins.12
(18)  "Prearranged ride" has the same meaning as set forth in13
section 40-10.1-602 (2).14
(22)  "Rider" has the same meaning as set forth in section15
40-10.1-602 (5).16
(24)  "Transportation network company" has the same meaning as17
set forth in section 40-10.1-602 (3).18
(25)  "Zero emissions motor vehicle" means a battery electric19
motor vehicle or a hydrogen fuel cell motor vehicle.20
SECTION 23. In Colorado Revised Statutes, 43-4-1303, amend21
(3) introductory portion, (3)(a), (5)(a), (6)(h), and (9); and repeal (7) as22
follows:23
43-4-1303.  Nonattainment area air pollution mitigation24
enterprise - creation - board - powers and duties - rules - fees - grants25
- reformulated gasoline cost stabilization program - fund. (3)  The26
business purpose of the enterprise is to mitigate the environmental and27
SB25-117
-54- health impacts of increased air pollution from motor vehicle emissions in1
nonattainment areas that results from the rapid and continuing growth in2
retail deliveries made by motor vehicles and in prearranged rides3
provided by transportation network companies by providing funding for4
eligible projects that reduce traffic, including demand management5
projects that encourage alternatives to driving alone or that directly6
reduce air pollution, such as retrofitting of construction equipment,7
construction of roadside vegetation barriers, and planting trees along8
medians. To allow the enterprise to accomplish this purpose and fully9
exercise its powers and duties through the board, the enterprise may:10
(a)  Impose an air pollution mitigation per ride fee and an air11
pollution mitigation retail delivery fee as authorized by subsections (7)12
and (8) SUBSECTION (8) of this section;13
(5) (a)  The nonattainment area air pollution mitigation enterprise14
fund is hereby created in the state treasury. The fund consists of air15
pollution mitigation per ride fee revenue and air pollution mitigation retail16
delivery fee revenue credited to the fund pursuant to subsections (7) and17
(8) SUBSECTION (8) of this section, any monetary gifts, grants, donations,18
or other payments received by the enterprise, any federal money that may19
be credited to the fund, and any other money that the general assembly20
may appropriate or transfer to the fund. The state treasurer shall credit all21
interest and income derived from the deposit and investment of money in22
the fund to the fund. Money in the fund is continuously appropriated to23
the enterprise for the purposes set forth in this part 13 and to pay the24
enterprise's reasonable and necessary operating expenses, including the25
repayment of any loan received pursuant to subsection (5)(b) of this26
section.27
SB25-117
-55- (6)  In addition to any other powers and duties specified in this1
section, the board has the following general powers and duties:2
(h)  To promulgate rules for the sole purpose of setting the3
amounts AMOUNT of the air pollution mitigation per ride fee and the air4
pollution mitigation retail delivery fee at or below the maximum amounts5
AMOUNT authorized in this section; and6
(7) (a)  In furtherance of its business purpose, beginning in state7
fiscal year 2022-23, the enterprise shall impose an air pollution mitigation8
per ride fee to be paid by a transportation network company for each9
prearranged ride requested and accepted through the company's digital10
network. For the purpose of minimizing compliance costs for11
transportation network companies and administrative costs for the state,12
the department of revenue shall collect the air pollution mitigation per13
ride fee on behalf of the enterprise, and a transportation network company14
shall pay the fee to the department of revenue as required by section15
40-10.1-607.5 (2).16
(b)  For prearranged rides requested and accepted during state17
fiscal year 2022-23, the enterprise shall impose the air pollution18
mitigation per ride fee in a maximum amount of:19
(I)  Eleven and one-quarter cents for each prearranged ride that is20
a car share ride or for which the driver transports the rider in a zero21
emissions motor vehicle; and22
(II)  Twenty-two and one-half cents for every other prearranged23
ride.24
(c) (I)  Except as otherwise provided in subsection (7)(c)(II) of this25
section, for prearranged rides requested and accepted during state fiscal26
year 2023-24 or during any subsequent state fiscal year, the enterprise27
SB25-117
-56- shall impose the air pollution mitigation per ride fee in a maximum1
amount that is the applicable maximum amount for the prior state fiscal2
year adjusted for inflation. The enterprise shall notify the department of3
revenue of the amount of the air pollution mitigation per ride fee to be4
collected for rides requested and accepted during each state fiscal year no5
later than March 15 of the calendar year in which the state fiscal year6
begins, and the department of revenue shall publish the amount no later7
than April 15 of the calendar year in which the state fiscal year begins.8
(II)  The enterprise is authorized to adjust the amount of the air9
pollution mitigation per ride fee for prearranged rides requested and10
accepted during a state fiscal year only if the rate of inflation is positive11
and cumulative inflation from the time of the last adjustment in the12
amount of the fee, when applied to the sum of the current air pollution13
mitigation per ride fee and the current clean fleet per ride fee imposed as14
required by section 25-7.5-103 (7) and rounded to the nearest whole cent,15
will result in an increase of at least one whole cent in the total amount of16
the air pollution mitigation per ride fee and the clean fleet per ride fee17
paid by a person who requests and accepts a prearranged ride. The18
amount of cumulative inflation to be applied to the sum of the current air19
pollution mitigation per ride fee and the current clean fleet per ride fee20
and rounded to the nearest whole cent is the lesser of actual cumulative21
inflation or five percent.22
(d)  As required by section 40-10.1-607.5 (3)(a), the department of23
revenue shall transmit all net air pollution mitigation per ride fee revenue24
collected to the state treasurer, who shall credit the revenue to the fund.25
(9) (a)  In furtherance of its business purpose, and subject to the26
requirements set forth in this subsection (9), the enterprise is authorized27
SB25-117
-57- to provide grants to eligible entities for eligible projects. The enterprise1
shall actively seek input from communities, including but not limited to2
disproportionately impacted communities, and local governments to3
mitigate the environmental and health impacts of highway projects,4
reduce traffic congestion, and improve neighborhood connectivity for5
communities adjacent to highways. The enterprise shall include6
mitigation strategies that take into account the input as well as issues and7
impacts of particular importance to the state such as reduction of8
greenhouse gas emissions and fine particulate matter.9
(b)  I
N ADDITION TO THE GRANTS PROVIDED TO ELIGIBLE ENTITIES10
FOR ELIGIBLE PROJECTS, NO LATER THAN JANUARY 1, 2026, THE11
ENTERPRISE SHALL ESTABLISH A REFORMULATED GASOLINE COST12
STABILIZATION PROGRAM TO OFFER REFORMULATED GASOLINE COST13
STABILIZATION REBATES TO INDIVIDUALS WHO OWN MOTOR VEHICLES14
THAT ARE REGISTERED IN COUNTIES IN WHICH THE FEDERAL GOVERNMENT15
REQUIRES ALL GASOLINE SOLD TO BE REFORMULATED GASOLINE . FOR16
EACH STATE FISCAL YEAR, THE ENTERPRISE SHALL DEDICATE AT LEAST17
TWENTY PERCENT OF ITS ANNUAL FEE REVENUE TO THE COST18
STABILIZATION PROGRAM; EXCEPT THAT THE ENTERPRISE SHALL DEDICATE19
TEN PERCENT OF ITS ANNUAL FEE REVENUE FOR THE 2025-26 STATE FISCAL20
YEAR TO THE PROGRAM. IN ESTABLISHING THE PROGRAM, THE ENTERPRISE21
SHALL BASE THE PER-GALLON AMOUNT OF EACH COST STABILIZATION22
REBATE ON THE AMOUNT BY WHICH THE RETAIL PRICE OF A GALLON OF23
REFORMULATED GASOLINE EXCEEDS THE PRICE OF A GALLON OF GASOLINE24
THAT IS NOT REFORMULATED AND THE AMOUNT OF MONEY AVAILABLE FOR25
THE PROGRAM.26
SECTION 24. Effective date. This act takes effect July 1, 2025.27
SB25-117
-58- SECTION 25. Safety clause. The general assembly finds,1
determines, and declares that this act is necessary for the immediate2
preservation of the public peace, health, or safety or for appropriations for3
the support and maintenance of the departments of the state and state4
institutions.5
SB25-117
-59-