RULES GOVERNING CLEAN TRANSIT ENTERPRISE PROCESSES AND FEES

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DEPARTMENT OF TRANSPORTATION

Clean Transit Enterprise

RULES GOVERNING CLEAN TRANSIT ENTERPRISE PROCESSES AND FEES

2 CCR 607-1

[Editor’s Notes follow the text of the rules at the end of this CCR Document.]

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Statement of Basis and Purpose and Authority

The Clean Transit Enterprise is authorized by C.R.S. § 43-4-1203(6)(g) to promulgate rules setting the

amount of the Clean Transit Retail Delivery Fee at or below maximum levels contained in C.R.S. § 43-4-

1203(7) and to govern the process by which the Enterprise accepts applications for, awards, and

oversees grants, loans, and rebates pursuant to C.R.S. § 43-4-1203(8).

SB21-260 Sustainability of the Transportation System created new sources of dedicated funding and new

state enterprises intended to preserve, improve, and expand existing transportation infrastructure,

develop the modernized infrastructure needed to support the widespread adoption of Electric Motor

Vehicles, and mitigate environmental and health impacts of transportation system use. To accomplish

these goals, the legislation established a Clean Transit Enterprise (CTE), an enterprise and government

owned business within the Colorado Department of Transportation (CDOT) for the purpose of collecting

fee revenue to reduce or mitigate the adverse impacts of air pollution and greenhouse gas emissions

produced by gas and diesel-powered motor vehicles used for Retail Deliveries. CTE will support the

adoption of Electric Motor Vehicles for Transit. The Enterprise is a Type 1 transfer agency and as such

the Legislature specifically vested the Enterprise with the authority to promulgate rules to set the amount

of the required Clean Transit Retail Delivery Fee and to govern the process by which the Enterprise

accepts applications for, awards, and oversees grants, loans, and rebates. Per statute, the Enterprise can

set a maximum fee of $0.03 per Retail Delivery. The fee delineated in the rule mirrors the fee amount set

in C.R.S

vested the Enterprise with the authority to promulgate rules to set the amount

of the required Clean Transit Retail Delivery Fee and to govern the process by which the Enterprise

accepts applications for, awards, and oversees grants, loans, and rebates. Per statute, the Enterprise can

set a maximum fee of $0.03 per Retail Delivery. The fee delineated in the rule mirrors the fee amount set

in C.R.S. § 43-4-1203.

The Enterprise shall notify the Department of Revenue (DOR) of the amount of the Clean Transit Retail

Delivery Fee to be collected for Retail Deliveries of Tangible Personal Property purchased during each

state fiscal year no later than March 15 of the calendar year in which the state fiscal year begins. CDOT

will work with DOR to determine the maximum fee amount that may be imposed, which shall be the

maximum amount for the prior state fiscal year adjusted for inflation.

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Definitions

2.1

“Colorado Department of Transportation Division of Transit and Rail” or “CDOT Division of Transit

and Rail” means the division within the Colorado Department of Transportation responsible for

planning, developing, operating, and integrating Transit and rail into the statewide transportation

system.

2.2

“Compressed Natural Gas Motor Vehicle” means a vehicle that is powered by an engine fueled

by methane that has been compressed and stored onboard at a pressure up to 3,000 pounds per

square inch, also known as compressed natural gas.

Code of Colorado Regulations

Secretary of State

State of Colorado

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ewide transportation

system.

2.2

“Compressed Natural Gas Motor Vehicle” means a vehicle that is powered by an engine fueled

by methane that has been compressed and stored onboard at a pressure up to 3,000 pounds per

square inch, also known as compressed natural gas.

Code of Colorado Regulations

Secretary of State

State of Colorado

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2 CCR 607-1

Clean Transit Enterprise

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2.3

“Disproportionately Impacted Community” means a community that is in a census block group, as

determined in accordance with the most recent United States decennial census, where the

proportion of households that are low income is greater than forty percent, the proportion of

households that identify as minority is greater than forty percent, or the proportion of households

that are housing cost-burdened is greater than forty percent, as defined in C.R.S. § 43-4-1202(5).

2.4

“Electric Motor Vehicle” means a vehicle that uses a battery to store energy that powers the

motor, including:

2.4.1

A Battery Electric Motor Vehicle powered exclusively by a rechargeable battery pack that

can be recharged by being plugged into an external source of electricity and that has no

secondary source of propulsion.

2.4.2

A Hydrogen Fuel Cell Motor Vehicle powered by electricity produced from a fuel cell that

uses hydrogen gas as fuel.

2.4.3

A Plug-in Hybrid Electric Motor Vehicle powered by both a rechargeable battery pack that

can be charged by being plugged into an external source of electricity and a secondary

source of propulsion such as an internal combustion engine.

2.5

“Recovered Methane” means any of the following if the Air Pollution Control Division determines

them to provide a net reduction in greenhouse gas emissions:

2.5.1

Biomethane;

2.5.2

Methane derived from municipal solid waste, biomass pyrolysis or enzymatic biomass, or

wastewater treatment; and

2.5.3

Coal mine methane, as defined in C.R.S. § 40-2-124(1)(a)(II)

h as an internal combustion engine.

2.5

“Recovered Methane” means any of the following if the Air Pollution Control Division determines

them to provide a net reduction in greenhouse gas emissions:

2.5.1

Biomethane;

2.5.2

Methane derived from municipal solid waste, biomass pyrolysis or enzymatic biomass, or

wastewater treatment; and

2.5.3

Coal mine methane, as defined in C.R.S. § 40-2-124(1)(a)(II).

2.6

“Retail Delivery” means a retail sale of Tangible Personal Property by a retailer for delivery by a

motor vehicle owned or operated by the retailer or any other person to the purchaser at a location

in the state, which sale includes at least one item of Tangible Personal Property that is subject to

taxation under Article 26 of Title 39. Each such retail sale is a single Retail Delivery regardless of

the number of shipments necessary to deliver the items of Tangible Personal Property

purchased.

2.7

“Tangible Personal Property” means all goods, wares, merchandise, products and commodities,

and all tangible or corporeal things and substances which are dealt in, capable of being

possessed and exchanged, except newspapers excluded by law. Tangible property does not

include:

2.7.1

Real property, such as land or buildings, nor Tangible Personal Property that loses its

identity when it becomes an integral and inseparable part of the realty, and is removable

only with substantial damage to the premises. Property severed from real estate

becomes Tangible Personal Property.

2.7.2

Intangible personal property constituting mere rights of action and having no intrinsic

value, such as contracts, deeds, mortgages, stocks, bonds, certificates of deposit or

memberships, or uncancelled United States postage or revenue stamps sold for postage

or revenue purposes.

2.7.3

Water in pipes, conduits, ditches or reservoirs, but does include water in bottles, wagons,

tanks or other containers.

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ing no intrinsic

value, such as contracts, deeds, mortgages, stocks, bonds, certificates of deposit or

memberships, or uncancelled United States postage or revenue stamps sold for postage

or revenue purposes.

2.7.3

Water in pipes, conduits, ditches or reservoirs, but does include water in bottles, wagons,

tanks or other containers.

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2.7.4

Computer software that does not meet the criteria enumerated in C.R.S. § 39-26-

102(15(c).

2.7.5

An advertising supplement included in a newspaper.

2.7.6

The method of delivery does not impact the definition of Tangible Personal Property as

defined in C.R.S. § 39-26-102(15).

2.8

“Transit” means a coordinated system of Transit modes providing transportation use by the

general public, as defined in C.R.S. § 43-1-102(4).

2.9

“Transit Agency” means an organization that provides Transit services to the general public or a

segment of the public defined by age, disability, or low income.

3.00

Fees

3.1

Effective July 1, 2022, the Enterprise shall impose a Clean Transit Retail Delivery Fee of three

cents per Retail Delivery of Tangible Personal Property.

3.2

Starting in 2023, CDOT will work with the Department of Revenue (DOR) to determine the

maximum fee amount that may be imposed, which shall be the maximum amount for the prior

state fiscal year adjusted for inflation.

3.3

Starting in 2023, the Enterprise shall notify DOR of the amount of the Clean Transit Retail

Delivery Fee to be collected for Retail Deliveries of Tangible Personal Property purchased during

each state fiscal year no later than March 15 of the calendar year in which the state fiscal year

begins

be imposed, which shall be the maximum amount for the prior

state fiscal year adjusted for inflation.

3.3

Starting in 2023, the Enterprise shall notify DOR of the amount of the Clean Transit Retail

Delivery Fee to be collected for Retail Deliveries of Tangible Personal Property purchased during

each state fiscal year no later than March 15 of the calendar year in which the state fiscal year

begins.

4.00

Process for Awarding and Overseeing Enterprise Grants, Loans, and Rebates

4.1

The selection of grant, loan, and rebate recipients will be on a competitive basis as a part of

regular calls for Transit grant applications and will be based on criteria established by the

Enterprise and posted on its website no fewer than 60 days in advance of any deadlines for the

submission of applications for grants, loans, and rebates.

4.1.1

CDOT Division of Transit and Rail (DTR) staff will consult with the Clean Transit

Enterprise Board to determine the overall available funding amount, project selection

criteria, required match levels, and other programmatic details in advance of any notice of

funding availability.

4.1.2

A notice of funding availability for grants, loans, and rebates will be posted no fewer than

60 days prior to the application deadline.

4.1.3

Eligible applicants will be any organization considered to be a Transit Agency as defined

in these Rules.

4.1.4

Applications will be assessed for eligibility and scored based on their support for the

business purpose of the Clean Transit Enterprise by a review panel. Additional

consideration will be given in the evaluation process to those Transit Agencies located

within or providing service to Disproportionately Impacted Communities.

4.1.5

The applicant must include evidence that the proposed project(s) will support the

business purpose of the Clean Transit Enterprise and will be used for one or more of the

following purposes by:

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n in the evaluation process to those Transit Agencies located

within or providing service to Disproportionately Impacted Communities.

4.1.5

The applicant must include evidence that the proposed project(s) will support the

business purpose of the Clean Transit Enterprise and will be used for one or more of the

following purposes by:

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4.1.5.1 Supporting the replacement of existing gasoline and diesel transit vehicles with

Electric Motor Vehicles, including motor vehicles that originally were powered

exclusively by internal combustion engines but have been converted into Electric

Motor Vehicles. If Electric Motor Vehicles are not practically available, they may

be replaced by Compressed Natural Gas Motor Vehicles, if at least ninety

percent of the fuel for the Compressed Natural Gas Motor Vehicles will be

Recovered Methane;

4.1.5.2 Providing the associated charging infrastructure for Electric Motor Vehicles in the

Transit fleet;

4.1.5.3 Supporting facility modifications that allow for the safe operation and

maintenance of Electric Motor Vehicles; or

4.1.5.4 Funding planning studies that enable Transit Agencies to plan for Transit vehicle

electrification.

4.2

CDOT staff will present a list of applications recommended for funding to the Clean Transit

Enterprise Board for final approval.

4.3

Applicants will be notified of the results of their project proposal(s) within 90 days of the

application deadline.

4.4

The CDOT Division of Transit & Rail Transit Programming Unit will be the responsible entity for

overseeing any grants, loans, and rebates provided by the Enterprise.

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Declaratory Orders

The Enterprise board may, at its discretion, entertain petitions for declaratory orders pursuant to C.R.S. §

24-4-105(11).