Projects eligible to receive funds

Certain categories of mitigation actions are eligible to receive funding from the settlement funds. Each of these eligible mitigation actions must help reduce NOx emissions in the state of Colorado to fulfill the purposes of the State trust agreement. States are free to fund any of the eligible mitigation actions in any proportion, except that no more than 15% of the funds may be used for light duty zero emission vehicle supply equipment. When selecting eligible projects for funding, we will consider all the benefits of a proposed project, including NOx emission reductions, reductions of other pollutants and improved safety, among other benefits.

Colorado's Beneficiary Mitigation Plan (BMP) details the projects that will be eligible to receive funds and the incentive levels available.

Mitigation activities eligible for funding:

Model year 1992-2009 Class 8 local freight trucks (Heavy-Duty) may be replaced with new electric vehicles, RNG and hydrogen fuel cell will be considered. Eligible trucks must be scrapped. If you are applying for funds to replace an existing vehicle with an electric vehicle, charging equipment associated with that vehicle may also receive funds. See Colorado's mitigation plan for further details.

Model year 1992-2009 Class 4-7 local freight trucks (Medium-Duty) may be replaced with new electric vehicles, RNG and hydrogen fuel cell will be considered. Model year 1992-2001. Eligible trucks must be scrapped. If you are applying for funds to replace an existing vehicle with an electric vehicle, charging equipment associated with that vehicle may also receive funds. See Colorado's mitigation plan for further details

Model year 2009 and older Class 4-8 school buses, shuttle buses, and model year 2009 and older Class 4-8 transit buses may be replaced with new electric bus, RNG and hydrogen fuel cell will be considered. Eligible buses must be scrapped. If you are applying for funds to replace an existing bus with an electric bus,charging equipment associated with that vehicle may also receive funds. See Colorado's mitigation plan for further details.

Freight switchers include pre-Tier 4 locomotives that operate 1000 hours or more per year. Freight switchers may be replaced with new original equipment manufacturer (OEM) alternative fuel or electric switchers (including the generator sets). Eligible freight switcher must be scrapped. If you are applying for funds to replace an existing switcher with an electric switcher, charging equipment associated with that switcher may also receive funds. See Colorado's mitigation plan for further details.

Airport Ground Support Equipment includes Tier 0-2 diesel powered equipment, and uncertified or certified to 3 g/bhp-hr or higher emissions, spark ignition engine powered airport ground support equipment. Eligible equipment may be replaced with the same airport ground support equipment in an All-Electric form. Eligible equipment must be scrapped. Charging equipment associated with the new electric equipment may also receive funds. See Colorado's mitigation plan for further details.

Forklifts with greater than 8000 pounds lift capacity may be replaced with new All-Electric forklifts. Eligible forklifts must be scrapped. Charging equipment associated with the new All-Electric fork lift may also receive funds. See Colorado's mitigation plan for further details.

Funding is available for electric vehicle charging stations, Level 2 and Fast-charging, located in a public place, workplace, or multi-unit dwelling. Incentives for funding will be different for community charging stations vs. highway corridor charging stations. Colorado will also monitor developments in the hydrogen fuel cell vehicle industry and determine program incentives where needed to accommodate applications for fueling infrastructure in this sector. See Colorado's mitigation plan for further details.

Diesel Emission Reduction Act (DERA) option. The DERA option allows states to use trust funds to voluntarily match or over-match DERA State Clean Diesel grants. See Colorado's mitigation plan for further details.