A Bill for an Act
Page 1, Line 101Concerning authorizing the clean fleet enterprise to
Page 1, Line 102encourage the replacement of high-emitting trucks
Page 1, Line 103with low-emitting trucks in motor vehicle fleets.
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/.)
Transportation Legislation Review Committee. Currently, the clean fleet enterprise (enterprise) may provide money to help public and private owners and operators of motor vehicle fleets finance acquisitions of compressed natural gas motor vehicles that are trucks if at least 90% of the fuel for the trucks will be recovered methane. Pursuant to current law, starting on January 1, 2027, the enterprise may only provide money for this purpose so long as the enterprise determines that electric motor vehicles are not yet practically available or do not meet the operational requirements such as cargo carrying capacity and driving range for specific categories of trucks (funding limitation). The bill repeals the funding limitation.
The bill authorizes the enterprise to incentivize, support, and accelerate the replacement of a motor vehicle that uses compression ignition to start the engine, has a gross vehicle weight rating of greater than 26,000 pounds, is based in the state, and is part of a fleet with in-state annual miles driven of at least 75% of the fleet's total annual miles driven (heavy-duty truck), that is powered by a diesel-fueled internal combustion engine and is a model year of 2009 or earlier (aging heavy-duty diesel truck) with a heavy-duty truck that is a model year of 2018 or later (new heavy-duty truck) until December 31, 2031. The bill also allows the enterprise to provide funding or financing through grant programs, rebate programs, revolving loan funds, or other strategies to help owners and operators of aging heavy-duty diesel truck fleets finance the replacement of aging heavy-duty diesel trucks with new heavy-duty trucks to reduce the up-front costs of acquiring new heavy-duty trucks until December 31, 2031.
To qualify for any money provided by the enterprise for the replacement of aging heavy-duty diesel trucks with new heavy-duty trucks:
- The purchaser of the new heavy-duty truck must surrender an aging heavy-duty diesel truck to the seller of the new heavy-duty truck at the time of the transaction;
- The seller of the new heavy-duty truck must decommission the aging heavy-duty diesel truck by drilling a hole in the engine's block and cutting the chassis rails in half; and
- The seller must be an authorized dealer of new heavy-duty trucks who must certify that the new heavy-duty truck meets all state and federal emissions and safety standards for its model year.
The enterprise may use the clean fleet enterprise fund (fund) to provide money to support the replacement of aging heavy-duty diesel trucks with new heavy-duty trucks, but the enterprise is required to ensure that it does not expend more than 20% of the fund's income during a state fiscal year for the support.
The enterprise may encourage the department of public health and environment to explore whether decommissioning aging heavy-duty diesel trucks and replacing them with new heavy-duty trucks qualifies as a transportation control measure that offsets growth in emissions from growth in vehicle miles traveled or number of vehicle trips taken pursuant to the federal "Clean Air Act".
Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 3, Line 2SECTION 1. In Colorado Revised Statutes, amend 25-7.5-102
Page 3, Line 3as follows:
Page 3, Line 425-7.5-102. Definitions.
Page 3, Line 5As used in this article 7.5, unless the context otherwise requires:
Page 3, Line 6(1) "Aging heavy-duty diesel truck" means a heavy-duty
Page 3, Line 7diesel truck with a model year no later than 2009.
Page 3, Line 8
(1) (2) "Battery electric motor vehicle" means a motor vehicle thatPage 3, Line 9is powered exclusively by a rechargeable battery pack that can be
Page 3, Line 10recharged by being plugged into an e xternal source of electricity and that
Page 3, Line 11has no secondary source of propulsion.
Page 3, Line 12
(2) (3) "Board" means the governing board of the enterprise.Page 3, Line 13
(3) (4) "Car share ride" means a prearranged ride for which thePage 3, Line 14rider agrees, at the time the rider requests the ride through a digital
Page 3, Line 15network, to be transported with another rider who has separately
Page 3, Line 16requested a prearranged ride regardless of whether or not another rider is
Page 3, Line 17actually transported with the rider.
Page 3, Line 18
(4) (5) "Commission" means the air quality control commissionPage 3, Line 19created in section 25-7-104.
Page 3, Line 20
(5) (6) "Compressed natural gas motor vehicle" means a vehiclePage 3, Line 21that is powered by an engine fueled by compressed natural gas.
Page 3, Line 22(7) "Decommission" means rendering inoperable both the
Page 3, Line 23engine and the chassis of an aging heavy-duty diesel truck by
Page 3, Line 24cutting a three-inch hole through the wall of the engine block
Page 3, Line 25and cutting the chassis rails in half or by similarly effective
Page 3, Line 26means.
Page 4, Line 1
(6) (8) "Department" means the department of public health andPage 4, Line 2environment created in section 24-1-119 (1).
Page 4, Line 3
(7) (9) "Disproportionately impacted community" has the meaningPage 4, Line 4set forth in section 24-4-109 (2)(b)(II).
Page 4, Line 5
(8) (10) "Electric motor vehicle" means a battery electric motorPage 4, Line 6vehicle, a hydrogen fuel cell motor vehicle, or a plug-in hybrid electric
Page 4, Line 7motor vehicle.
Page 4, Line 8
(9) (11) "Enterprise" means the clean fleet enterprise created inPage 4, Line 9section 25-7.5-103 (1)(a)(I).
Page 4, Line 10
(10) (12) "Fund" means the clean fleet enterprise fund created inPage 4, Line 11section 25-7.5-103 (5).
Page 4, Line 12(13) "Heavy-duty diesel truck" means a heavy-duty motor
Page 4, Line 13vehicle that:
Page 4, Line 14(a) Is powered by a diesel-fueled internal combustion
Page 4, Line 15engine;
Page 4, Line 16(b) Uses compression ignition to start the diesel-fueled
Page 4, Line 17internal combustion engine;
Page 4, Line 18(c) Is based in the state; and
Page 4, Line 19(d) Is part of a motor vehicle fleet with in-state annual
Page 4, Line 20miles driven of at least seventy-five percent of the motor
Page 4, Line 21vehicle fleet's total annual miles driven.
Page 4, Line 22
(11) (14) "Heavy-duty motor vehicle" means a motor vehicle thatPage 4, Line 23has a gross vehicle weight rating, as defined in section 42-2-402 (6), of
Page 4, Line 24greater than twenty-six thousand pounds.
Page 4, Line 25
(12) (15) "Hydrogen fuel cell motor vehicle" means a motorPage 4, Line 26vehicle that is powered by electricity produced from a fuel cell that uses
Page 4, Line 27hydrogen gas as fuel.
Page 5, Line 1
(13) (16) "Inflation" means the average annual percentage changePage 5, Line 2in the United States department of labor, bureau of labor statistics,
Page 5, Line 3consumer price index for Denver-Aurora-Lakewood for all items and all
Page 5, Line 4urban consumers, or its applicable predecessor or successor index, for the
Page 5, Line 5five years ending on the last December 31 before a state fiscal year for
Page 5, Line 6which an inflation adjustment to be made to the clean fleet per ride fee
Page 5, Line 7imposed by section 25-7.5-103 (7) or the clean fleet retail delivery fee
Page 5, Line 8imposed by section 25-7.5-103 (8) begins.
Page 5, Line 9
(14) (17) "Medium-duty motor vehicle" means a motor vehiclePage 5, Line 10that has a gross vehicle weight rating, as defined in section 42-2-402 (6),
Page 5, Line 11of more than ten thousand pounds and not more than twenty-six thousand
Page 5, Line 12pounds.
Page 5, Line 13
(15) (18) "Motor vehicle" has the meaning set forth in sectionPage 5, Line 1442-1-102 (58). The term does not include a personal delivery device.
Page 5, Line 15
(16) (19) "Motor vehicle fleet" means a group of motor vehiclesPage 5, Line 16that is owned or operated:
Page 5, Line 17(a) By a governmental entity for a public purpose including but
Page 5, Line 18not limited to public school transportation or law enforcement; or
Page 5, Line 19(b) By a business entity for a business if:
Page 5, Line 20(I) The group of motor vehicles is composed primarily of
Page 5, Line 21heavy-duty motor vehicles, medium-duty motor vehicles, or refrigerated
Page 5, Line 22trailer units; or
Page 5, Line 23(II) The group of motor vehicles is owned or operated by a
Page 5, Line 24company that rents motor vehicles in the fleet to transportation network
Page 5, Line 25company drivers for use in providing transportation network company
Page 5, Line 26services or is owned and operated directly, or indirectly through
Page 5, Line 27independent contractors who own or lease individual motor vehicles in
Page 6, Line 1the group, by a transportation network company or by a retailer for the
Page 6, Line 2purpose of making retail deliveries.
Page 6, Line 3(20) "New heavy-duty truck" means a heavy-duty motor
Page 6, Line 4vehicle that:
Page 6, Line 5(a) Is a model year of 2018 or later;
Page 6, Line 6(b) Is based in the state; and
Page 6, Line 7(c) Is part of a motor vehicle fleet with in-state annual
Page 6, Line 8miles driven of at least seventy-five percent of the motor
Page 6, Line 9vehicle fleet's total annual miles driven.
Page 6, Line 10
(17) (21) "Personal delivery device" means an autonomouslyPage 6, Line 11operated robot that is:
Page 6, Line 12(a) Designed and manufactured for the purpose of transporting
Page 6, Line 13tangible personal property primarily on sidewalks, crosswalks, and other
Page 6, Line 14public rights-of-way that are typically used by pedestrians;
Page 6, Line 15(b) Weighs no more than five hundred fifty pounds, excluding any
Page 6, Line 16tangible personal property being transported; and
Page 6, Line 17(c) Operates at speeds of less than ten miles per hour when on
Page 6, Line 18sidewalks, crosswalks, and other public rights-of-way that are typically
Page 6, Line 19used by pedestrians.
Page 6, Line 20
(18) (22) "Plug-in hybrid electric motor vehicle" means a motorPage 6, Line 21vehicle that is powered by both a rechargeable battery pack that can be
Page 6, Line 22recharged by being plugged into an external source of electricity and a
Page 6, Line 23secondary source of propulsion such as an internal combustion engine.
Page 6, Line 24
(19) (23) "Prearranged ride" has the same meaning as set forth inPage 6, Line 25section 40-10.1-602 (2).
Page 6, Line 26
(20) (24) "Recovered methane" means any of the following if thePage 6, Line 27air pollution control division determines them to provide a net reduction
Page 7, Line 1in greenhouse gas emissions:
Page 7, Line 2(a) Biomethane;
Page 7, Line 3(b) Methane derived from:
Page 7, Line 4(I) Municipal solid waste;
Page 7, Line 5(II) Biomass pyrolysis or enzymatic biomass; or
Page 7, Line 6(III) Wastewater treatment; and
Page 7, Line 7(c) Coal mine methane, as defined in section 40-2-124 (1)(a)(II).
Page 7, Line 8
(21) (25) "Retail delivery" has the same meaning as set forth inPage 7, Line 9section 43-4-218 (2)(e).
Page 7, Line 10
(22) (26) "Retailer" has the same meaning as set forth in sectionPage 7, Line 1139-26-102 (8).
Page 7, Line 12
(24) (27) "Rider" has the same meaning as set forth in sectionPage 7, Line 1340-10.1-602 (5).
Page 7, Line 14
(25) (28) "Tangible personal property" has the same meaning asPage 7, Line 15set forth in section 39-26-102 (15).
Page 7, Line 16
(26) (29) "Transportation network company" has the samePage 7, Line 17meaning as set forth in section 40-10.1-602 (3).
Page 7, Line 18
(27) (30) "Transportation network company driver" has the samePage 7, Line 19meaning as set forth in section 40-10.1-602 (4).
Page 7, Line 20
(28) (31) "Transportation network company services" has thePage 7, Line 21same meaning as set forth in section 40-10.1-602 (6).
Page 7, Line 22
(29) (32) "Zero emissions motor vehicle" means a battery electricPage 7, Line 23motor vehicle or a hydrogen fuel cell motor vehicle.
Page 7, Line 24SECTION 2. In Colorado Revised Statutes, 25-7.5-103, amend
Page 7, Line 25(9)(a), (9)(b)(I), and (9)(b)(XI); and add (9)(b)(XIII) and (9)(b)(XIV) as
Page 7, Line 26follows:
Page 7, Line 2725-7.5-103. Clean fleet enterprise - creation - board - powers
Page 8, Line 1and duties - fees - fund - repeal.
Page 8, Line 2(9) (a) In furtherance of its business purpose, and subject to the
Page 8, Line 3requirements set forth in this subsection (9), the enterprise is authorized
Page 8, Line 4to incentivize, support, and accelerate the adoption of electric motor
Page 8, Line 5vehicles in motor vehicle fleets and the replacement of aging
Page 8, Line 6heavy-duty diesel trucks with new heavy-duty trucks.
Page 8, Line 7(b) The enterprise may provide funding or financing through grant
Page 8, Line 8programs, rebate programs, revolving loan funds, or such other strategies
Page 8, Line 9as the board finds effective:
Page 8, Line 10(I) To help public and private owners and operators of motor
Page 8, Line 11vehicle fleets finance electric motor vehicle acquisitions to reduce the
Page 8, Line 12up-front costs of acquiring electric motor vehicles
through December 31,Page 8, Line 13
2026, and to help public and private owners and operators of motorPage 8, Line 14vehicle fleets finance acquisitions of compressed natural gas motor
Page 8, Line 15vehicles that are trucks if at least ninety percent of the fuel for the trucks
Page 8, Line 16will be recovered
methane, and, on and after January 1, 2027, for so longPage 8, Line 17
as the enterprise determines that electric motor vehicles are not yetPage 8, Line 18
practically available or do not meet the operational requirements such asPage 8, Line 19
cargo carrying capacity and driving range for specific categories ofPage 8, Line 20
trucks, to help public and private owners and operators of motor vehiclePage 8, Line 21
fleets finance acquisitions of compressed natural gas motor vehicles thatPage 8, Line 22
are trucks if at least ninety percent of the fuel for the trucks will bePage 8, Line 23
recovered methane;Page 8, Line 24(XI) To help transportation network companies provide incentives
Page 8, Line 25for transportation network company drivers to provide prearranged rides
Page 8, Line 26in electric motor vehicles;
andPage 8, Line 27(XIII) To help public and private owners and operators of
Page 9, Line 1motor vehicle fleets finance the replacement of aging
Page 9, Line 2heavy-duty diesel trucks with new heavy-duty trucks to reduce
Page 9, Line 3the up-front costs of acquiring new heavy-duty trucks through
Page 9, Line 4December 31, 2031, subject to the following:
Page 9, Line 5(A) The purchaser of a new heavy-duty truck must
Page 9, Line 6surrender an aging heavy-duty diesel truck to the seller of the
Page 9, Line 7new heavy-duty truck at the time of the transaction;
Page 9, Line 8(B) The seller of the new heavy-duty truck must
Page 9, Line 9decommission the aging heavy-duty diesel truck;
Page 9, Line 10(C) The seller must be an authorized dealer of new
Page 9, Line 11heavy-duty trucks who must certify that the new heavy-duty
Page 9, Line 12truck meets all state and federal emissions and safety
Page 9, Line 13standards for its model year and that the dealer will
Page 9, Line 14decommission the aging heavy-duty diesel truck that the
Page 9, Line 15purchaser is required to surrender to the seller;
Page 9, Line 16(D) The enterprise shall not expend more than twenty
Page 9, Line 17percent of the fund's income during a state fiscal year to
Page 9, Line 18replace aging heavy-duty diesel trucks with new heavy-duty
Page 9, Line 19trucks; and
Page 9, Line 20(E) This subsection (8)(b)(XIII) is repealed effective July 1,
Page 9, Line 212032; and
Page 9, Line 22(XIV) To encourage the department to explore whether
Page 9, Line 23decommissioning aging heavy-duty diesel trucks and replacing
Page 9, Line 24them with new heavy-duty trucks qualifies as a transportation
Page 9, Line 25control measure that offsets the growth in emissions from the
Page 9, Line 26growth in vehicle miles traveled or the number of vehicle trips
Page 9, Line 27taken pursuant to the federal "Clean Air Act", 42 U.S.C. sec.
Page 10, Line 17401, et seq.
Page 10, Line 2SECTION 3. In Colorado Revised Statutes, 40-2-138, amend
Page 10, Line 3(1)(i)(II) as follows:
Page 10, Line 440-2-138. Projects for the production of clean hydrogen -
Page 10, Line 5proceeding - hydrogen hub projects - rules - reports - definitions.
Page 10, Line 6(1) As used in this section, unless the context otherwise requires:
Page 10, Line 7(i) "Qualified use" means the use of clean hydrogen in the state
Page 10, Line 8for:
Page 10, Line 9(II) The operation of a heavy-duty motor vehicle, as defined in
Page 10, Line 10
section 25-7.5-102 (11) section 25-7.5-102 (14); andPage 10, Line 11SECTION 4. In Colorado Revised Statutes, 43-4-1203, amend
Page 10, Line 12(8)(b)(IV) as follows:
Page 10, Line 1343-4-1203. Clean transit enterprise - creation - board - powers
Page 10, Line 14and duties - rules - fees - fund.
Page 10, Line 15(8) (b) The enterprise may make grants, loans, or rebates to fund:
Page 10, Line 16(IV) The replacement of motor vehicles used by public transit
Page 10, Line 17providers that are not electric motor vehicles by electric motor vehicles,
Page 10, Line 18or, if electric motor vehicles are not practically available, by compressed
Page 10, Line 19natural gas motor vehicles, as defined in
section 25-7.5-102 (5) sectionPage 10, Line 2025-7.5-102 (6), if at least ninety percent of the fuel for the compressed
Page 10, Line 21natural gas motor vehicles will be recovered methane, as defined in
Page 10, Line 22
section 25-7.5-102 (20) section 25-7.5-102 (24).Page 10, Line 23SECTION 5. Act subject to petition - effective date. This act
Page 10, Line 24takes effect at 12:01 a.m. on the day following the expiration of the
Page 10, Line 25ninety-day period after final adjournment of the general assembly (August
Page 10, Line 2612, 2026, if adjournment sine die is on May 13, 2026); except that, if a
Page 10, Line 27referendum petition is filed pursuant to section 1 (3) of article V of the
Page 11, Line 1state constitution against this act or an item, section, or part of this act
Page 11, Line 2within such period, then the act, item, section, or part will not take effect
Page 11, Line 3unless approved by the people at the general election to be held in
Page 11, Line 4November 2026 and, in such case, will take effect on the date of the
Page 11, Line 5official declaration of the vote thereon by the governor.