Colorado Legislation for E-Bike, Diesel Truck Replacement, Electric School Buses, and Clean Air Grants

In June 2022, the Colorado legislature passed SB193, establishing grant programs for replacing diesel trucks ($15M), purchasing electric school buses ($65M), the purchase of E-Bikes ($12M), and a general fund for clean air grants ($25M). Each of these provisions is outlined below.

Clean Air Grant Program

The Industrial and Manufacturing Operations Clean Air Grant Program will allow private entities and local governments to apply to the Colorado Energy Office (CEO) for grant money to help finance projects to reduce air pollution emissions from industrial and manufacturing operations.

The CEO shall deem which voluntary project types are eligible for grants, such as: 1) energy efficiency projects; 2) renewable energy projects; 3) beneficial electrification projects; 4) transportation electrification projects; 5) projects producing or utilizing clean hydrogen; 6) projects involving carbon capture at industrial facilities; 7) methane capture projects; 8) projects producing or utilizing sustainable aviation fuel; and 9) industrial processes changes that reduce emissions. Projects may be given priority if they are located in disproportionately impacted communities, or non attainment areas. The program will receive initial funding of $25M.

E-Bike Program

The Community Access to Electric Bicycles (e-bikes) Grant Program will help finance e-bike share programs administered by local governments, nonprofits, or contracted third parties. The money may be used to purchase and maintain e-bikes and infrastructure, pay labor costs, and cover other direct costs for the program. Programs operating in disproportionately impacted communities or non attainment areas may be given priority. This bill also directs the CEO to establish the Community Access to Electric Bicycle Rebate Program for the purchase of e-bikes by eligible individuals. An eligible individual must reside in a low- or medium-income household, and must use the bike for commuting or other non recreational purposes. The program will receive $12M in initial funding.

Diesel Truck Emissions Reduction Grants

This bill also creates the Diesel Truck Emissions Reduction Grant Program to provide grants to certain private and public entities for decommissioning and replacing diesel trucks. This program prioritizes vehicles that are operated within disproportionately impacted communities, or non-attainment areas. In implementing this program, the Colorado Department of Public Health and Environment (CDPHE) must develop an annual report including the amount of money expended, the number of diesel trucks decommissioned, and the estimated reduction of annual Particulate Matter (PM)10, PM2.5, nitrogen oxides (NOx), and greenhouse gas (GHG) emissions. The program will receive $15M in initial funding.

Electric School Bus Grants

This bill also establishes the Electrifying School Buses Grant Program to allow school districts, charter schools, or a non-profit partner acting on behalf of a school district or charter school to apply for grant money to help finance: 1) the procurement and maintenance of electric powered school buses (ESB) and associated infrastructure; 2) the conversion of fossil-fuel-powered school buses to ESB; 3) the retirement of fossil-fuel-powered school buses; and 4) administrative costs associated with the program. School districts and charter schools located in or attended by students from disproportionately impacted communities, or with at least a certain percentage of students receiving free or reduced-price lunches, may receive priority for grants. As a condition of receiving a grant, grantees must retire or convert at least a certain percentage of their fossil-fuel-powered school buses. The program will receive $65M in initial funding.