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State and Federal Incentives and Laws

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Colorado

Gasoline Gallon Equivalent Definition

The term gasoline gallon equivalent is defined to equate the energy content of any motor fuel, including alternative fuels, to that of a gallon of gasoline. Any dispenser used for the sale of motor fuel in gasoline gallon equivalents shall display gasoline gallon equivalents as the primary display information provided. (Reference Colorado Revised Statutes 8-20-232.5)

Alternative Fuel Use and Vehicle Acquisition Requirement

The Executive Director of the state Department of Personnel has adopted a policy that requires all state-owned diesel vehicles and equipment to be fueled with a fuel blend of 20% biodiesel and 80% petroleum diesel (B20), subject to the availability of the fuel and so long as the price is no greater than $0.10 more per gallon than the price of conventional diesel. Biodiesel is defined as fuel composed of mono-alkyl esters of long chain fatty acids derived from plant or animal matter that meets American Society for Testing and Materials (ASTM) specifications and that is produced in Colorado.

By January 1, 2008, the Executive Director must adopt a policy to increase the utilization of alternative fuels and establish increasing utilization objectives for each succeeding year. Beginning January 1, 2008, the Executive Director must purchase flexible fuel vehicles or hybrid electric vehicles, subject to availability, unless the incremental cost of the vehicle is more than 10%. The Executive Director may adopt a policy to allow some vehicles to be exempt from this requirement.

(Reference House Bill 1228, 2007, and Colorado Revised Statutes 24-30-1104)

Point of Contact

Art Hale
State Fleet Manager
Colorado Department of Personnel and Administration
Phone (303) 866-5531
Fax (303) 866-5511
art.hale@state.co.us
http://www.colorado.gov/dpa/dcs/

Alternative Fuel Definition

Alternative fuel is defined as compressed natural gas, propane, ethanol, or any mixture of ethanol containing 85% or more ethanol by volume with gasoline or other fuels, electricity, or any other fuels, which may include, but are not limited to, clean diesel and reformulated gasoline, so long as these other fuels make comparable reductions in carbon monoxide emissions and brown cloud pollutants as determined by the air quality control commission. (Reference Colorado Revised Statutes 25-7-106.8 (1)(a))

Alternative Fuel Infrastructure Tax Credit

For tax years beginning prior to January 1, 2011, the Colorado Department of Revenue offers an income tax credit for the cost of construction, reconstruction, or acquisition of an alternative fuel fueling facility that is directly attributable to the storage, compression, charging, or dispensing of alternative fuels to motor vehicles. The credit value is as follows:

Tax YearTax Credit
2009-201120%
2006-200935%

For an alternative fuel refueling facility that will be generally accessible for use by the public, in addition to the person claiming the credit, the percentages specified above will be multiplied by 1.25. For an alternative fuel refueling facility that dispenses an alternative fuel derived from a renewable energy source, the credit percentages specified above will be multiplied by 1.25 and requires certification that at least 70% of the alternative fuel dispensed annually is derived from a renewable energy source for a period of 10 years. The credit has a maximum value of $400,000 in any consecutive five-year period for each refueling facility. For more information about this credit, see the Colorado Department of Revenue's Alternative Fuel Income Tax Credits Web site.

(Reference Colorado Revised Statutes 39-22-516)

Point of Contact

Tax Information Call Center
Colorado Department of Revenue
Phone (303) 238-7378
http://www.revenue.state.co.us/main/home.asp

Alternative Fuel Vehicle (AFV) Registration

Upon the registration of a motor vehicle with the state Department of Revenue, Division of Motor Vehicles, the vehicle owner must report the types of alternative fuel used to operate the vehicle and whether the vehicle is dual-fueled or dedicated to one alternative fuel. Forms provided by the Department of Revenue for the purpose of registering motor vehicles must include space for the following fuel types: gasoline, diesel, propane, electricity, natural gas, methanol or M85, ethanol or E85, biodiesel, and other. (Reference Colorado Revised Statutes 42-3-113)

Biofuels Research Grants

The Bioscience Discovery Evaluation Grant Program, administered by the Colorado Office of Economic Development, provides grants to research institutions for biofuels research projects. Biofuels research is defined as the use of microorganisms, specialized proteins, or thermal processes to develop biologically-based fuel production from plant or other biological material, including renewable agricultural sources, and the related processes' that make traditional manufacturing of energy cleaner and more efficient. Grant eligibility requirements apply. (Reference House Bill 1060, 2007, and Colorado Revised Statutes 24-48.5-108)

Funding for Alternative Fuel Feedstock Production

The Colorado General Assembly encourages the Governor's Office of Energy Management and Conservation to set a high priority on funding projects that assess the potential for carbon sequestration and agricultural bioenergy production in the state. Agricultural bioenergy production means the agricultural production of grain or biomass that is used to generate electricity or heat for agricultural, municipal, or industrial use, or that is converted into diesel, ethanol, hydrogen gas, or other fuels for energy production or transportation. (Reference House Bill 1203, 2007)

Clean Energy Development Authority

The Colorado Clean Energy Development Authority is created and may issue bonds to finance projects that involve the production, transportation, and storage of clean energy. Clean energy includes fuels that are manufactured by, and energy derived from, the following: biodiesel; biomass research such as biogas, agricultural or animal waste and landfill gas; ethanol; and fuel cells that do not use fossil fuels. (Reference House Bill 1150, 2007, and Colorado Revised Statutes 40-9.7)

Promulgation of Renewable Fuel Storage Tank Regulations

The Director of the state Division of Oil and Public Safety must promulgate and enforce rules concerning the placement of an underground or aboveground storage tank that contains renewable fuel. These rules must be promulgated so that the process of obtaining a permit for an aboveground or underground storage tank that contains renewable fuel is more efficient and affordable. For the purpose of this regulation, a renewable fuel is a motor vehicle fuel that is produced from plant or animal products or wastes, as opposed to fossil fuel sources. (Reference House Bill 1228, 2007, and Colorado Revised Statutes 8-20.5-202 and 8-20.5-302)