CO Code § 25-7.5-103 (2021)
2021 Colorado Code|Title 25 - Public Health and Environment|Article 7.5 - Clean Motor Vehicle Fleet Support|§ 25-7.5-103. Clean Fleet Enterprise - Creation - Board - Powers and Duties - Fees - Fund

     The clean fleet enterprise is hereby created in the department. The enterprise is and operates as a government-owned business within the department in order to execute its business purpose as specified in subsection (3) of this section by exercising the powers and performing the duties set forth in this section.    The enterprise exercises its powers and performs its duties and functions under the department as if the same were transferred to the department by a type 1 transfer, as defined in section 24-1-105.         The governing board of the enterprise consists of nine members as follows:   The governor shall appoint six members with the advice and consent of the senate for terms of the length specified in subsection (2)(b) of this section. One member shall represent a disproportionately impacted community, one member shall have expertise in air pollution reduction, one member shall have expertise in transportation, one member shall have expertise in motor vehicle fleet electrification, one member shall have expertise in business or supply chain management, and one member shall represent a business that owns or operates a motor vehicle fleet. The governor shall make reasonable efforts, to the extent such applications have been submitted for consideration for the board, to consider members that reflect the state's geographic diversity when making appointments and shall make initial appointments no later than October 1, 2021.    The executive director of the department or the executive director's designee;    The director of the Colorado energy office or the director's designee; and    The executive director of the department of transportation or the executive director's designee.       Members of the board appointed by the governor serve for terms of four years; except that four of the members initially appointed shall serve for initial terms of three years. A member who is appointed to fill a vacancy on the board shall serve the remainder of the unexpired term of the former member. The other board members serve for as long as they hold their positions or are designated to serve.    Members of the board serve without compensation but must be reimbursed from money in the fund for actual and necessary expenses incurred in the performance of their duties pursuant to this article 7.5.       The business purpose of the enterprise is to incentivize and support the use of electric motor vehicles, including motor vehicles that originally were powered exclusively by internal combustion engines but have been converted into electric motor vehicles, and, to the extent temporarily necessitated by the limitations of current electric motor vehicle technology for certain fleet uses, compressed natural gas motor vehicles that are fueled by recovered methane, by businesses and governmental entities that own or operate fleets of motor vehicles, including fleets composed of personal motor vehicles owned or leased by individual contractors who provide prearranged rides for transportation network companies or deliver goods for a third-party delivery service. To allow the enterprise to accomplish this purpose and fully exercise its powers and duties through the board, the enterprise may:   Impose a clean fleet per ride fee and a clean fleet retail delivery fee as authorized by subsections (7) and (8) of this section;    Issue grants, loans, and rebates as authorized by subsection (9) of this section; and    Issue revenue bonds payable from the revenue and other available money of the enterprise.       The enterprise constitutes an enterprise for purposes of section 20 of article X of the state constitution so long as it retains the authority to issue revenue bonds and receives less than ten percent of its total annual revenue in grants from all Colorado state and local governments combined. So long as it constitutes an enterprise pursuant to this subsection (4), the enterprise is not subject to section 20 of article X of the state constitution.      The clean fleet enterprise fund is hereby created in the state treasury. The fund consists of clean fleet per ride fee revenue and clean fleet retail delivery fee revenue credited to the fund pursuant to subsections (7) and (8) of this section, any monetary gifts, grants, donations, or other payments received by the enterprise, any federal money that may be credited to the fund, and any other money that the general assembly may appropriate or transfer to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. Money in the fund is continuously appropriated to the enterprise for the purposes set forth in this article 7.5 and to pay the enterprise's reasonable and necessary operating expenses, including the repayment of any loan received pursuant to subsection (5)(b) of this section.    The department may transfer money from any legally available source to the enterprise for the purpose of defraying expenses incurred by the enterprise before it receives fee revenue or revenue bond proceeds. The enterprise may accept and expend any money so transferred, and, notwithstanding any state fiscal rule or generally accepted accounting principle that could otherwise be interpreted to require a contrary conclusion, such a transfer is a loan from the department to the enterprise that is required to be repaid and is not a grant for purposes of section 20 (2)(d) of article X of the state constitution or as defined in section 24-77-102 (7). All money transferred as a loan to the enterprise shall be credited to the clean fleet enterprise initial expenses fund, which is hereby created in the state treasury, and loan liabilities that are recorded in the clean fleet enterprise initial expenses fund but that are not required to be paid in the current fiscal year shall not be considered when calculating sufficient statutory fund balance for purposes of section 24-75-109. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the clean fleet enterprise initial expenses fund to the fund. The clean fleet enterprise initial expenses fund is continuously appropriated to the enterprise for the purpose of defraying expenses incurred by the enterprise before it receives fee revenue or revenue bond proceeds. As the enterprise receives sufficient revenue in excess of expenses, the enterprise shall reimburse the department for the principal amount of any loan made by the department plus interest at a rate set by the department. Upon receipt of such reimbursement, the department shall remit to the state treasurer for crediting to the general fund the amount needed to fully repay the amount of any general fund money appropriated to the department for the purpose of funding the loan made pursuant to this subsection (5)(b) plus the interest included in the reimbursement.       In addition to any other powers and duties specified in this section, the board has the following general powers and duties:   To adopt bylaws for the regulation of its affairs and the conduct of its business;    To acquire, hold title to, and dispose of real and personal property;    In consultation with the executive director of the department, or the executive director's designee, to employ and supervise individuals, professional consultants, and contractors as are necessary in its judgment to carry out its business purpose;    To contract with any public or private entity, including state agencies, consultants, and the attorney general's office, for professional and technical assistance, office space, and administrative services, advice, and other services related to the conduct of the affairs of the enterprise. The enterprise is encouraged to issue grants on a competitive basis based on written criteria established by the enterprise in advance of any deadlines for the submission of grant applications. The board shall generally avoid using sole-source contracts.    To seek, accept, and expend gifts, grants, donations, or other payments from private or public sources for the purposes of this article 7.5 so long as the total amount of all grants from Colorado state and local governments received in any state fiscal year is less than ten percent of the enterprise's total annual revenue for the state fiscal year. The enterprise shall transmit any money received through gifts, grants, donations, or other payments to the state treasurer, who shall credit the money to the fund.    To provide services as set forth in subsection (9) of this section;    To publish the processes by which the enterprise accepts applications, the criteria for evaluating applications, and a list of grantees or program participants pursuant to subsection (9) of this section;    To promulgate rules for the sole purpose of setting the amounts of the clean fleet per ride fee and the clean fleet retail delivery fee at or below the maximum amounts authorized in this section; and    To have and exercise all rights and powers necessary or incidental to or implied from the specific powers and duties granted by this section.         In furtherance of its business purpose, beginning in state fiscal year 2022-23, the enterprise shall impose a clean fleet per ride fee to be paid by a transportation network company for each prearranged ride requested and accepted through the company's digital network. For the purpose of minimizing compliance costs for transportation network companies and administrative costs for the state, the department of revenue shall collect the clean fleet per ride fee on behalf of the enterprise, and a transportation network company shall pay the fee to the department of revenue as required by section 40-10.1-607.5 (2). The enterprise shall ensure that during the first ten state fiscal years of fee collections, expenditures that support transportation network company operations equal or exceed cumulative clean fleet per ride fee revenue.    For prearranged rides requested and accepted during state fiscal year 2022-23, the enterprise shall impose the clean fleet per ride fee in a maximum amount of:   Three and three-quarters cents for each prearranged ride that is a carshare ride or for which the driver transports the rider in a zero emissions motor vehicle; and    Seven and one-half cents for every other prearranged ride.         Except as otherwise provided in subsection (7)(c)(II) of this section, for prearranged rides requested and accepted during state fiscal year 2023-24 or during any subsequent state fiscal year, the enterprise shall impose the clean fleet per ride fee in a maximum amount that is the applicable maximum amount for the prior state fiscal year adjusted for inflation. The enterprise shall notify the department of revenue of the amount of the clean fleet per ride fee to be collected for rides requested and accepted during each state fiscal year no later than March 15 of the calendar year in which the state fiscal year begins and the department of revenue shall publish the amount no later than April 15 of the calendar year in which the state fiscal year begins. (c) (I) Except as otherwise provided in subsection (7)(c)(II) of this section, for prearranged rides requested and accepted during state fiscal year 2023-24 or during any subsequent state fiscal year, the enterprise shall impose the clean fleet per ride fee in a maximum amount that is the applicable maximum amount for the prior state fiscal year adjusted for inflation. The enterprise shall notify the department of revenue of the amount of the clean fleet per ride fee to be collected for rides requested and accepted during each state fiscal year no later than March 15 of the calendar year in which the state fiscal year begins and the department of revenue shall publish the amount no later than April 15 of the calendar year in which the state fiscal year begins.    The enterprise is authorized to adjust the amount of the clean fleet per ride fee for prearranged rides requested and accepted during a state fiscal year only if the rate of inflation is positive and cumulative inflation from the time of the last adjustment in the amount of the fee, when applied to the sum of the current clean fleet per ride fee and the current air pollution mitigation per ride fee imposed as required by section 43-4-1303 (7) and rounded to the nearest whole cent, will result in an increase of at least one whole cent in the total amount of the clean fleet per ride fee and the air pollution mitigation per ride fee paid by a person who requests and accepts a prearranged ride. The amount of cumulative inflation to be applied to the sum of the current clean fleet per ride fee and the current air pollution mitigation per ride fee and rounded to the nearest whole cent is the lesser of actual cumulative inflation or five percent.       As required by section 40-10.1-607.5 (3)(a), the department of revenue shall transmit all net clean fleet per ride fee revenue collected to the state treasurer, who shall credit the revenue to the fund.         In furtherance of its business purpose, beginning in state fiscal year 2022-23, the enterprise shall impose, and the department of revenue shall collect on behalf of the enterprise, a clean fleet retail delivery fee on each retail delivery. Each retailer who makes a retail delivery shall add to the price of the retail delivery, collect from the purchaser, and pay to the department of revenue at the time and in the manner prescribed by the department in accordance with section 43-4-218 (6) the clean fleet retail delivery fee. For the purpose of minimizing compliance costs for retailers and administrative costs for the state, the department of revenue shall collect and administer the clean fleet retail delivery fee on behalf of the enterprise in the same manner in which it collects and administers the retail delivery fee imposed by section 43-4-218 (3).    For retail deliveries of tangible personal property purchased during state fiscal year 2022-23, the enterprise shall impose the clean fleet retail delivery fee in a maximum amount of five and three-tenths cents.      Except as otherwise provided in subsection (8)(c)(II) of this section, for retail deliveries of tangible personal property purchased during state fiscal year 2023-24 or during any subsequent state fiscal year, the enterprise shall impose the clean fleet retail delivery fee in a maximum amount that is the maximum amount for the prior state fiscal year adjusted for inflation. The enterprise shall notify the department of revenue of the amount of the clean fleet 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, and the department of revenue shall publish the amount no later than April15 of the calendar year in which the state fiscal year begins. (c) (I) Except as otherwise provided in subsection (8)(c)(II) of this section, for retail deliveries of tangible personal property purchased during state fiscal year 2023-24 or during any subsequent state fiscal year, the enterprise shall impose the clean fleet retail delivery fee in a maximum amount that is the maximum amount for the prior state fiscal year adjusted for inflation. The enterprise shall notify the department of revenue of the amount of the clean fleet 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, and the department of revenue shall publish the amount no later than April15 of the calendar year in which the state fiscal year begins.    The enterprise is authorized to adjust the amount of the clean fleet retail delivery fee for retail deliveries of tangible personal property purchased during a state fiscal year only if the department of revenue adjusts the amount of the retail delivery fee imposed by section 43-4-218 (3) for retail deliveries of tangible personal property purchased during the state fiscal year.            In furtherance of its business purpose, and subject to the requirements set forth in this subsection (9), the enterprise is authorized to incentivize, support, and accelerate the adoption of electric motor vehicles in motor vehicle fleets.    The enterprise may provide funding or financing through grant programs, rebate programs, revolving loan funds, or such other strategies as the board finds effective:   To help public and private owners and operators of motor vehicle fleets finance electric motor vehicle acquisitions to reduce the up-front costs of acquiring electric motor vehicles, through December 31, 2026, 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 ninety percent of the fuel for the trucks will be recovered methane, and, on and after January 1, 2027, for 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, 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 ninety percent of the fuel for the trucks will be recovered methane;    To assess and implement cleaner mobile source technology to support electrification of motor vehicles and electric motor vehicle fleets;    To coordinate engagement with public entities and owners and operators of motor vehicle fleets to develop strategies for electrifying motor vehicle fleets and other not yet electrified freight transportation and retail delivery operations that can be electrified;    To research and assess innovative and emerging motor vehicle emission strategies for motor vehicles and engines and modernize and improve current testing, inspection, and readjustment services offered by the department;    To provide training and development of a clean transportation workforce to support the adoption of electric motor vehicles for use in motor vehicle fleets;    To research and develop strategies, business plans, and guidance to support the consistent application of grants and other enterprise business services, including remediation services;    To provide outreach, education, or training to support the successful application and performance by entities receiving funds;    To provide or support the delivery of companion services such as fleet motor vehicle testing, inspection, and readjustment services;    To reduce health disparities in disproportionately impacted communities resulting from increased exposure to motor vehicle fleet emissions;    To help companies that maintain motor vehicle fleets and rent motor vehicles in the fleets to transportation network company drivers for use in providing transportation network company services purchase or lease electric motor vehicles for that use;    To help transportation network companies provide incentives for transportation network company drivers to provide prearranged rides in electric motor vehicles; and    To provide additional remediation services to fee payers as may be provided by law, including but not limited to incentivizing the use of clean mobile equipment, provide planning services to support communities, including but not limited to disproportionately impacted communities, or provide scrappage services.          The enterprise shall contract with the air pollution control division of the department to develop proposed rules for the consideration of the commission that will support the enterprise's business services, including remediation services, in a manner that maintains compliance with the federal and state statutes, rules, and regulations governing air quality. The division shall collaborate with the Colorado energy office and the department of transportation when developing the rules.      To ensure transparency and accountability, the enterprise shall:   No later than June 1, 2022, publish and post on its website a ten-year plan that details how the enterprise will execute its business purpose during state fiscal years 2022-23 through 2031-32 and estimates the amount of funding needed to implement the plan. No later than January 1, 2032, the enterprise shall publish and post on its website a new ten-year plan for state fiscal years 2032-33 through 2041-42.    Create, maintain, and regularly update on its website a public accountability dashboard that provides, at a minimum, accessible and transparent summary information regarding the implementation of its ten-year plan, the funding status and progress toward completion of each project that it wholly or partly funds, and its per project and total funding and expenditures;    Engage regularly regarding its projects and activities with the public, specifically reaching out to and seeking input from communities, including but not limited to disproportionately impacted communities, and interest groups that are likely to be interested in the projects and activities; and    Prepare an annual report regarding its activities and funding and present the report to the transportation commission created in section 43-1-106 (1) and to the transportation and local government and energy and environment committees of the house of representatives and the transportation and energy committee of the senate, or any successor committees. The enterprise shall also post the annual report on its website. Notwithstanding the requirement in section 24-1-136 (11)(a)(I), the requirement to submit the report required in this subsection (11)(a)(IV) to the specified legislative committees continues indefinitely.       The enterprise is subject to the open meetings provisions of the “Colorado Sunshine Act of 1972”, contained in part 4 of article 6 of title 24, and the “Colorado Open Records Act”, part 2 of article 72 of title 24.    For purposes of the “Colorado Open Records Act”, part 2 of article 72 of title 24, and except as may otherwise be provided by federal law or regulation or state law, the records of the enterprise are public records, as defined in section 24-72-202 (6), regardless of whether the enterprise receives less than ten percent of its total annual revenue in grants, as defined in section 24-77-102 (7), from all Colorado state and local governments combined.    The enterprise is a public entity for purposes of part 2 of article 57 of title 11.        History. Source: L. 2021: Entire article added, (SB 21-260), ch. 250, p. 1393, § 11, effective June 17.