Senate Bill 25-321 Reengrossed

A Bill for an Act

• Page 1, Line 101Concerning measures to address air pollution levels related

• Page 1, Line 102to the operation of motor vehicles in areas that do not

• Page 1, Line 103meet federal national ambient air quality standards.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

Under current law, the state contracts to conduct emissions testing. Current law also sets limits on how long the contracts may run. The bill repeals these limits and authorizes the division of administration in the department of public health and environment (division) to determine the length of each contract. Current law also authorizes a vehicle emissions inspection facility to charge a fee that is set by the air quality control commission (commission), but the fee is capped at $25 for model year 1982 and newer vehicles and $15 for model year 1981 and older vehicles. The bill authorizes the commission to adopt rules adjusting this fee limit, but the commission is limited to adjusting:

• The $15 maximum fee to $30 when a licensed inspection and readjustment station inspects vehicles model year 1981 and older; and
• The $25 maximum fee to $50 for a clean screen inspection performed on vehicles registered in the basic emissions program that are model year 1982 and newer.
• Paying emissions inspection fees for motor vehicles registered to individuals participating in an established and recognized public assistance program; or
• Adjustments or emissions-related repairs that are necessary and sufficient to receive a certification of emissions compliance.

The commission may adopt rules requiring the emissions compliance of vehicles that have failed an emissions test and that are registered outside of the program area but that operate within the program area.

The bill requires the commission to adopt rules requiring inspections of motor vehicles that are registered in the nonattainment area and identified as having excess emissions under the clean screen program and are either within the 2-year vehicle inspection cycle or exempt from periodic inspection.

If a motor vehicle's emissions control system has been disconnected, deactivated, or rendered inoperable, the division may notify the executive director of the department of revenue.

Under current law, fines and penalties assessed for violations of air quality laws are deposited in the community impact cash fund. The bill creates a motor vehicle emissions assistance fund (fund) and diverts the first $1 million from the community impact cash fund to the new fund, but at the end of each state fiscal year, any unspent money in the fund exceeding $250,000 is returned to the community impact cash fund.

The division may expend money from the fund to provide grants for:

The division may accept and expend gifts, grants, and donations. The money in the fund is continuously appropriated. To implement the bill, $5,674 is transferred from the AIR account of the highway users tax fund to the Colorado DRIVES vehicle services account of the fund.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 3, Line 1SECTION 1.  In Colorado Revised Statutes, 42-4-304, amend the introductory portion and (5) as follows:

• Page 3, Line 242-4-304.  Definitions relating to motor vehicle inspection and

• Page 3, Line 3readjustment program. As used in sections 42-4-301 to 42-4-316 42-4-316.5, unless the context otherwise requires:

• Page 3, Line 4(5)  "Contractor" means any a person, partnership, entity, or

• Page 3, Line 5corporation that is awarded a contract by the state of Colorado through a

• Page 3, Line 6competitive bid process conducted by the division, in consultation with

• Page 3, Line 7the executive director and in accordance with the "Procurement Code",

• Page 3, Line 8articles 101 to 112 of title 24, C.R.S., and section 42-4-306, to provide

• Page 3, Line 9inspection services for vehicles required to be inspected pursuant to in

• Page 3, Line 10accordance with section 42-4-310 within the enhanced emissions

• Page 3, Line 11program area, as set forth in subsection (9) of this section; to operate

• Page 3, Line 12enhanced inspection centers necessary to perform inspections; and to operate the clean screen program within the program area.

• Page 3, Line 13SECTION 2.  In Colorado Revised Statutes, 42-4-306, amend

• Page 3, Line 14(3)(a)(I)(C), (3)(b)(IV), (3)(b)(V)(A), and (13); and add (3)(b)(VI) and (8)(c) as follows:

• Page 3, Line 1542-4-306.  Powers and duties of commission - automobile

• Page 3, Line 16inspection and readjustment program - basic emissions program -

• Page 3, Line 17enhanced emissions program - clean screen program - rules - repeal.

• Page 3, Line 18(3) (a) (I) (C)  Upon the adoption of specifications for measuring

• Page 3, Line 19instruments and test analyzer systems, the division, in consultation with

• Page 3, Line 20the executive director, may let invite bids for the procurement of

• Page 3, Line 21instruments that meet federal requirements or guidelines and the

• Page 3, Line 22standards of the federal act. The invitation for bids for test analyzer

• Page 3, Line 23systems for the basic emissions program and the inspection-only facilities

• Page 4, Line 1in the enhanced emissions program shall must include but shall not be

• Page 4, Line 2limited to, the requirements for data collection and electronic transfer of

• Page 4, Line 3data as established by the commission, service and maintenance

• Page 4, Line 4requirements for such instruments for the period of the contract,

• Page 4, Line 5requirements for replacement or loan instruments in the event that the

• Page 4, Line 6purchased or leased instruments do not function, and the initial purchase

• Page 4, Line 7or lease price. On and after June 5, 2001, each contract for the purchase of such instruments shall have a term of no more than four years.

• Page 4, Line 8(b) (IV)  On and after May 26, 1998, any A contract for inspection

• Page 4, Line 9services shall must have a term of no more than five years and shall be

• Page 4, Line 10determined by the division and is subject to rebidding under the provisions of this paragraph (b) this subsection (3)(b).

• Page 4, Line 11(V) (A)  Notwithstanding any contrary provision in the

• Page 4, Line 12"Procurement Code", articles 101 to 112 of title 24, C.R.S., or this article,

• Page 4, Line 13any article 4, a contract for inspection services may be renewed for a

• Page 4, Line 14term not to exceed two years, after which the contract may be renewed for

• Page 4, Line 15a single term of up to four years or rebid as determined by the

• Page 4, Line 16division; except that inspection fees during any such four-year renewal contract shall be as are determined under section 42-4-311 (6).

• Page 4, Line 17(VI)  Upon the division making a recommendation or during

• Page 4, Line 18the renewal of a contract, the commission may adopt a rule to

• Page 4, Line 19set or adjust the inspection fees as described in section 42-4-311

• Page 4, Line 20(4)(a)(I) or (6)(a). The commission shall request supporting

• Page 4, Line 21documentation or financial analyses from the contractor to

• Page 4, Line 22inform the commission's decision.If the commission raises the fee,

• Page 4, Line 23the division shall make a report to the transportation

• Page 4, Line 24legislation review committee created in section 43-2-145 during

• Page 5, Line 1the scheduled interim meetings that follow the fee change, but

• Page 5, Line 2not less then sixty days following adoption of the rule. The report must:

• Page 5, Line 3(A)  List the fees being changed and the amounts of the changes;

• Page 5, Line 4(B)  Provide an explanation for the changes and an analysis of why the changes are needed.

• Page 5, Line 5(8) (c)  Notwithstanding any other provision of this

• Page 5, Line 6subsection (8), the commission shall adopt rules requiring inspections of motor vehicles that are:

• Page 5, Line 7(I)  Registered in Colorado and outside the program area;

• (II)  Regularly operated inside the program area;

• Page 5, Line 8(III)  Identified as producing excess emissions under the clean screen program; and

• Page 5, Line 9(IV) (A)  Within the two-year vehicle inspection cycle; or

• Page 5, Line 10(B)  Exempt from periodic inspection in accordance with rules adopted under subsection (8)(a) of this section.

• Page 5, Line 11(13) (a)  The commission shall identify motor vehicle populations

• Page 5, Line 12contributing significantly to ambient pollution inventories by utilizing

• Page 5, Line 13mobile source computer models approved by the environmental

• Page 5, Line 14protection agency. The commission shall develop and implement more

• Page 5, Line 15stringent or frequent, or both, inspection criteria for those vehicles with such significant pollution contributions.

• Page 5, Line 16(b) (I)  The commission may adopt rules to identify motor

• Page 5, Line 17vehicles with excess emissions that regularly operate within the

• Page 5, Line 18program area. The rules must require that motor vehicles

• Page 5, Line 19identified as having excess emissions comply with the emissions

• Page 6, Line 1and maintenance requirements of this part 3 and are subject to enforcement under rules adopted by the commission.

• Page 6, Line 2(II)  Motor vehicles operating in the program area that

• Page 6, Line 3failed an enhanced emissions inspection and are subsequently

• Page 6, Line 4registered outside the program area must comply with the

• Page 6, Line 5emissions and maintenance requirements of this part 3 and are subject to enforcement under rules adopted by the commission.

• Page 6, Line 6(III) (A)  This subsection (13)(b) is effective April 1, 2027.

• Page 6, Line 7(B)  This subsection (13)(b)(III) is repealed, effective July 1, 2027.

• Page 6, Line 8SECTION 3.  In Colorado Revised Statutes, 42-4-307, amend (10)(b); and add (17) as follows:

• Page 6, Line 942-4-307.  Powers and duties of the department of public

• Page 6, Line 10health and environment - division of administration - automobile

• Page 6, Line 11inspection and readjustment program - basic emissions program -

• Page 6, Line 12enhanced emissions program - clean screen program - legislative

• Page 6, Line 13declaration - high-emitter motor vehicle regulation - definition - rules

• Page 6, Line 14- repeal. (10) (b)  Upon approval by the department of public health and

• Page 6, Line 15environment and the executive director, the contractor shall provide

• Page 6, Line 16inspection services for vehicles within the enhanced emissions program

• Page 6, Line 17area required to be inspected pursuant to section 42-4-310.

• Page 6, Line 18Notwithstanding any contrary provision in the "Procurement Code",

• Page 6, Line 19articles 101 to 112 of title 24, C.R.S., or this article, any article 4, a

• Page 6, Line 20contract for inspection services may be renewed for a term not to exceed

• Page 6, Line 21two years to ensure that, on or after December 31, 2001, inspection

• Page 6, Line 22services in the enhanced program area will not be interrupted by the

• Page 6, Line 23expiration of the previous contract, after which the contract may be

• Page 7, Line 1renewed for a single term of up to four years as provided in section

• Page 7, Line 242-4-306 (3)(b)(V)(A). Any new contract entered into or renewed after

• Page 7, Line 3the two-year renewal shall require the contractor to provide any necessary

• Page 7, Line 4alternative inspection services or technologies so approved that is determined by the division.

• Page 7, Line 5(17) (a) (I)  The general assembly declares that:

• Page 7, Line 6(A)  Gasoline-powered motor vehicles are a major source

• Page 7, Line 7of ozone precursors, including nitrogen oxides, hydrocarbons, and carbon monoxide;

• Page 7, Line 8(B)  Gasoline-powered motor vehicles with emissions

• Page 7, Line 9control systems that have been tampered with or emissions

• Page 7, Line 10control systems that are not operating properly create excess

• Page 7, Line 11ozone precursors, including nitrogen oxides, hydrocarbons, and carbon monoxide, and are high-emitting motor vehicles;

• Page 7, Line 12(C)  High-emitting motor vehicles contribute a

• Page 7, Line 13disproportionate amount of total emissions and are a major

• Page 7, Line 14source of air pollution, especially in the ozone nonattainment area;

• Page 7, Line 15(D)  The clean screen program currently operates to

• Page 7, Line 16identify clean motor vehicles operating on the road and will identify high-emitting motor vehicles on the road; and

• Page 7, Line 17(E)  High-emitting motor vehicles that are operating in the

• Page 7, Line 18ozone nonattainment area are difficult to identify through

• Page 7, Line 19mandatory testing, and these include motor vehicles with

• Page 7, Line 20tampered emissions control systems within a testing exemption

• Page 7, Line 21period, motor vehicles requiring repairs between emissions tests,

• Page 7, Line 22and motor vehicles that have failed an emissions test and were subsequently registered outside the program area.

• Page 8, Line 1(II)  The general assembly determines that the best

• Page 8, Line 2interest of the state is to identify high-emitting motor vehicles

• Page 8, Line 3and require vehicles with malfunctioning or tampered with

• Page 8, Line 4motor vehicle emissions control systems to be repaired in order

• Page 8, Line 5to reduce excess emissions of ozone precursors, including nitrogen oxides, hydrocarbons, and carbon monoxide.

• Page 8, Line 6(b) (I)  The commission may adopt rules to identify and

• Page 8, Line 7regulate high-emitting motor vehicles that are within the model

• Page 8, Line 8year exemption period for their vehicle emissions inspection

• Page 8, Line 9cycle or that are registered in Colorado and outside the program area after failing an emissions test.

• Page 8, Line 10(II)  If a motor vehicle is identified as a high-emitting

• Page 8, Line 11motor vehicle through an enhanced emissions inspection, the

• Page 8, Line 12division may notify the executive director that the motor

• Page 8, Line 13vehicle fails to comply with the emissions and maintenance

• Page 8, Line 14requirements of this part 3 or rules adopted by the commission under this part 3.

• Page 8, Line 15(III) (A)  This subsection (17)(b) is effective April 1, 2027.

• Page 8, Line 16(B)  This subsection (17)(b)(III) is repealed, effective July 1, 2027.

• Page 8, Line 17(c)  As used in this subsection (17), unless the context

• Page 8, Line 18otherwise requires, "high-emitting motor vehicle" means a motor

• Page 8, Line 19vehicle that produces significantly more air pollutants than

• Page 8, Line 20the motor vehicle average, exceeding established emissions limits.

• Page 8, Line 21SECTION 4.  In Colorado Revised Statutes, 42-4-311, amend (4)(a)(I), (6)(a), and (6)(b) as follows:

• Page 9, Line 142-4-311.  Operation of inspection and readjustment stations

• Page 9, Line 2- inspection-only facilities - fleet inspection stations - motor vehicle

• Page 9, Line 3dealer test facilities - enhanced inspection centers. (4) (a) (I)  A

• Page 9, Line 4licensed inspection and readjustment station, inspection-only facility, or

• Page 9, Line 5motor vehicle dealer test facility shall charge a fee not to exceed fifteen

• Page 9, Line 6dollars for the inspection of motor vehicles model year 1981 and older,

• Page 9, Line 7at facilities licensed or authorized within either the basic or enhanced

• Page 9, Line 8emissions program. except that for 1982 model and newer vehicles, a test

• Page 9, Line 9facility may charge a fee not to exceed twenty-five dollars The

• Page 9, Line 10commission may set or adust the amount of the fee under section

• Page 9, Line 1142-4-306 (3)(b)(VI); except that the commission shall not set or

• Page 9, Line 12adjust the fee for model year 1981 and older motor vehicles to

• Page 9, Line 13exceed thirty dollars or for 1982 model year and newer motor vehicles to exceed fifty dollars.

• Page 9, Line 14(6) (a)  The amount of the fee charged for enhanced emissions

• Page 9, Line 15inspections performed within the enhanced emissions program area on

• Page 9, Line 161982 model year and later newer motor vehicles shall not be any

• Page 9, Line 17greater than that determined by the contract. and in no case greater than

• Page 9, Line 18twenty-five dollars. The amount of the fee charged for clean screen

• Page 9, Line 19inspections performed on vehicles registered in the basic emissions

• Page 9, Line 20program area shall not be any greater than that determined by the

• Page 9, Line 21contract and in no case greater than fifteen dollars. Such Theamount of

• Page 9, Line 22the fee shall must not exceed the amount of the maximum fee required

• Page 9, Line 23to be posted by the enhanced inspection center pursuant to section

• Page 9, Line 2442-4-305 for the inspection of any motor vehicle required to be inspected

• Page 9, Line 25under section 42-4-310. The commission may set or adjust the

• Page 10, Line 1amount of the fees under section 42-4-306 (3)(b)(VI); except that

• Page 10, Line 2the commission shall not set or adjust the fee amount to exceed fifty dollars.

• Page 10, Line 3(b)  During the two-year renewal of the a contract entered into

• Page 10, Line 4pursuant to section 42-4-307 (10), the commission shall may hold a

• Page 10, Line 5hearing to determine the maximum fee that may be charged pursuant to

• Page 10, Line 6the contract for inspections during any subsequent renewal term. The

• Page 10, Line 7maximum fee amount must be based on estimated actual operating costs

• Page 10, Line 8during the life of the contract, determined pursuant to the proceeding.

• Page 10, Line 9plus a percentage to be determined by the commission. not to exceed ten

• Page 10, Line 10percent and not to exceed twenty-five dollars The commission may adjust the amount of the fee under section 42-4-306 (3)(b)(VI).

• Page 10, Line 11SECTION 5.  In Colorado Revised Statutes, 42-4-314, amend (1) and (2); and add (7) as follows:

• Page 10, Line 1242-4-314.  Automobile emissions control systems - tampering

• Page 10, Line 13- operation of vehicle - penalty. (1)  No A person shall not knowingly

• Page 10, Line 14disconnect, deactivate, or otherwise render inoperable any air pollution

• Page 10, Line 15control system which a motor vehicle's emissions control system

• Page 10, Line 16that has been installed by the manufacturer of any automobile of a

• Page 10, Line 17model year of 1968 or later, except to repair or replace a part or all of the system.

• Page 10, Line 18(2)  No A person shall not operate on any a highway in this state

• Page 10, Line 19any an automobile described in subsection (1) of this section knowing

• Page 10, Line 20that any air pollution control system the emissions control system

• Page 10, Line 21installed on such the automobile has been disconnected, deactivated, or otherwise rendered inoperable.

• Page 10, Line 22(7)  If a motor vehicle's emissions control system has been

• Page 11, Line 1disconnected, deactivated, or rendered inoperable, the division

• Page 11, Line 2may notify the executive director that the owner of the motor vehicle has violated subsection (1) or (2) of this section.

• Page 11, Line 3SECTION 6.  In Colorado Revised Statutes, 25-7-129, amend (2)(a) introductory portion and (2)(a)(V) as follows:

• Page 11, Line 425-7-129.  Disposition of fines - community impact cash fund

• Page 11, Line 5- repeal. (2) (a)  All The state treasurer shall credit the receipts

• Page 11, Line 6from penalties or fines collected under sections 25-7-115, 25-7-122, and 25-7-123 shall be credited in the following manner:

• Page 11, Line 7(V)  For state fiscal year 2025-26 and any state fiscal year thereafter:

• Page 11, Line 8(A)  The first one million dollars to the motor vehicle emissions assistance fund established in section 25-7-129.5; and

• Page 11, Line 9(B)  One hundred percent of the receipts from penalties or fines collected during the fiscal year shall be credited remainder to the fund.

• Page 11, Line 10SECTION 7.  In Colorado Revised Statutes, add 25-7-129.5 as follows:

• Page 11, Line 1125-7-129.5.  Motor vehicle emissions assistance fund - division

• Page 11, Line 12to provide grants - gifts, grants, or donations - definition. (1)  As used

• Page 11, Line 13in this section, "fund" means the motor vehicle emissions assistance fund created in subsection (2) of this section.

• Page 11, Line 14(2)  The motor vehicle emissions assistance fund is created

• Page 11, Line 15in the state treasury. The fund consists of money credited to the

• Page 11, Line 16fund pursuant to section 25-7-129 (2)(a)(V)(A), any other money

• Page 11, Line 17that the general assembly may appropriate or transfer to the

• Page 11, Line 18fund, and any gifts, grants, and donations received under

• Page 11, Line 19subsection (5) of this section.

• Page 12, Line 1(3) (a)  The state treasurer shall credit all interest and

• Page 12, Line 2income derived from the deposit and investment of money in the fund to the fund.

• Page 12, Line 3(b)  At the end of each state fiscal year, no more than two

• Page 12, Line 4hundred fifty thousand dollars that is unexpended and unencumbered remains in the fund.

• Page 12, Line 5(c)  At the end of each state fiscal year, the state

• Page 12, Line 6treasurer shall credit any unexpended and unencumbered

• Page 12, Line 7money in excess of two hundred fifty thousand dollars

• Page 12, Line 8remaining in the fund to the community impact cash fund created in section 25-7-129 (1).

• Page 12, Line 9(4)  Beginning in the state fiscal year 2025-26, the division may expend money from the fund to provide grants for:

• Page 12, Line 10(a)  Paying emissions inspection fees required by part 3 of

• Page 12, Line 11article 4 of title 42, or rules adopted by the commission under

• Page 12, Line 12part 3 of article 4 of title 42, for motor vehicles registered to

• Page 12, Line 13individuals participating in an established and recognized public assistance program; or

• Page 12, Line 14(b)  Adjustments or emissions-related repairs that are

• Page 12, Line 15necessary and sufficient to receive a certification of emissions

• Page 12, Line 16compliance under part 3 of article 4 of title 42 and rules

• Page 12, Line 17adopted under part 3 of article 4 of title 42 if the adjustments or repairs are performed by:

• Page 12, Line 18(I)  A registered repair facility or technician, as defined in section 42-4-304 (21); or

• Page 12, Line 19(II)  A motor vehicle repair facility registered with the

• Page 12, Line 20secretary of state and in compliance with article 9 of title 42 or

• Page 13, Line 1registered with the division pursuant to rules adopted by the commission.

• Page 13, Line 2(c)  To qualify for a grant under subsection (4)(b) of this section, a motor vehicle owner must:

• Page 13, Line 3(I)  Own a motor vehicle that is required to be registered in the program area and either;

• Page 13, Line 4(A)  Participate in an established and recognized public assistance program; or

• Page 13, Line 5(B)  Demonstrate qualifying repair expenditures that meet

• Page 13, Line 6or exceed the limits established to comply with section 42-4-310(1)(d)(VI); or

• Page 13, Line 7(II)  Own a motor vehicle that has been identified as a high

• Page 13, Line 8emitter and participate in a voluntary study conducted by the division.

• Page 13, Line 9(d)  Subsection (4)(c)(II) of this section does not require the

• Page 13, Line 10division to pay a motor vehicle owner to participate in a voluntary study.

• Page 13, Line 11(5)  The division may seek, accept, and expend gifts, grants,

• Page 13, Line 12or donations from private or public sources for the purposes set

• Page 13, Line 13forth in this section. The state treasurer shall credit any gifts, grants, or donations received by the division to the fund.

• Page 13, Line 14(6)  Money in the fund is continuously appropriated to the division to accomplish the purposes set forth in this section.

• Page 13, Line 15SECTION 8.  In Colorado Revised Statutes, 42-3-304, add (18)(e) as follows:

• Page 13, Line 1642-3-304.  Registration fees - passenger-mile taxes - clean

• Page 13, Line 17screen fund - pilot program - report - rules - definitions - repeal.

• Page 14, Line 1(18) (e) (I)  On July 1, 2026, the state treasurer shall transfer

• Page 14, Line 2five thousand six hundred seventy-four dollars from the AIR

• Page 14, Line 3account's subaccount available for appropriation to the

• Page 14, Line 4department of public health and environment under subsections

• Page 14, Line 5(18)(a) and (18)(b) of this section to the Colorado DRIVES vehicle services account created in section 42-1-211.

• Page 14, Line 6(II)  This subsection (18)(e) is repealed, effective July 1, 2027.

• Page 14, Line 7SECTION 9.  In Colorado Revised Statutes, 24-77-102, amend as amended by Senate Bill 25-173 (2)(b)(IV) as follows:

• Page 14, Line 824-77-102.  Definitions. As used in this article 77, unless the context otherwise requires:

• Page 14, Line 9(2)  "Damage award" means any pecuniary compensation received by the state as a result of:

• Page 14, Line 10(b)  For state fiscal years commencing on or after July 1, 2024:

• Page 14, Line 11(IV)  A monetary fine or penalty collected by the division of

• Page 14, Line 12administration of the department of public health and environment

• Page 14, Line 13pursuant to section 25-7-115, 25-7-122, or 25-7-123 and deposited in the

• Page 14, Line 14community impact cash fund created in section 25-7-129 or in the

• Page 14, Line 15motor vehicle emissions assistance fund created in section 25-7-129.5; and

• Page 14, Line 16SECTION 10.  Effective date. This act takes effect upon passage;

• Page 14, Line 17except that section 9 of this act takes effect only if Senate Bill 25-173

• Page 14, Line 18becomes law, in which case section 9 takes effect upon the effective date of this act or Senate Bill 25-173, whichever is later.

• Page 14, Line 19SECTION 11.  Safety clause. The general assembly finds,

• Page 14, Line 20determines, and declares that this act is necessary for the immediate

• Page 15, Line 1preservation of the public peace, health, or safety or for appropriations for

• Page 15, Line 2the support and maintenance of the departments of the state and state institutions.