Clean Transit Enterprise Programs and Grants

CTE Transit Zero-Emission Vehicle Grant Program

The Clean Transit Enterprise Capital Grant Program provides grants to eligible entities to support the following options:

  1. Purchase or acquisition of zero-emission transit vehicles.
  2. Purchase and installation of charging and/or fueling infrastructure to support zero-emission transit vehicles.
  3. Investments to modify or upgrade existing transit facilities to make them safe and suitable for zero-emission vehicle deployments.

The program is funded through revenues generated by the Retail Delivery Fee and grants are awarded through a competitive process.

By the end of 2025, the program had made nine awards, totaling $15 million. The CTE issued a second Notice of Funding Availability for the Capital Grant Program in September of 2025 and intends to award at least $20 million in additional capital grants in FY 2026. In FY 2027 and beyond, the CTE intends to conduct annual Capital Grant Notices of Funding Availability, with funding in the $10 million to $15 million range.

The current CTE Capital Grant Program Notice of Funding Availability was released on September 29, 2025. Applications are due by December 5, 2025.

CTE Transit Zero-Emission Vehicle Planning Grant Awards

The CTE Zero-Emission Vehicle Planning Grant Program provides funds to eligible entities for the development of plans, studies and analyses to help prepare for and accelerate the deployment of transit zero-emission vehicles. The grant can also provide funding to help entities better understand the infrastructure, facilities, training and organizational investments necessary to make such deployments successful.

This program is targeted at supporting the deployment of zero-emission vehicles in transit agency fleets and specifically in preparing agencies for competitive capital applications to the CTE grant programs, FTA 5339(c) Low or No Emission Vehicle Program, and other competitive funding opportunities. Planning efforts funded via this program are not considered to be a commitment by a transit agency to pursue a fleet transition upon a specific timeline, but rather an opportunity to define the agency’s own goals and strategies for their fleet over time.

CTE conducted two rounds of Zero-Emission Vehicle Planning Grants by the end of 2025, resulting in eight awards totaling $500,000. Plans are to continue offering planning grant opportunities in the future.

CTE SB230 Formula Grant Program

Colorado Senate Bill 24-230 established the Oil & Gas Production Fee while also expanding the business purpose of CTE. This expanded purpose includes investing in public transit and passenger rail with the additional aim of increasing ridership and replacing car trips in order to support denser land use patterns that can further reduce pollution.

The CTE Formula Grant Program is one of three programs created by this new law. It receives 70% of the Oil & Gas Production fee revenues and is intended to provide eligible transit entities with annual funding to support the acquisition of vehicles and to fund operations associated with providing new transit services. The allocation of program funding across transit entities is determined by the application of a formula that considers overall population, population density, vehicle revenue miles, ridership, local zoning and disproportionately impacted community populations.

The CTE began implementing the Formula Grant Program in 2025 and conducted a Notice of Funding Availability in the summer 2025. Next steps will be the determination of awards and developing associated grant contracts. Total funding for the program in FY26 is approximately $37 million and is expected to grow to over $70 million/year by FY2027 and beyond.

The deadline for submitting SB230 Formula Grant applications for FY 2026 was September 19, 2025, although agencies were able to opt for a “Deferred Comprehensive Operational Analysis” approach where they preserve their eligibility for funding while continuing to conduct needed transit service expansion planning. Additional information about the formula program and the most recent NOFA can be accessed through the following links:

SB230 Discretionary Grant Program

The CTE Discretionary Grant Program is funded by 10% of the revenues raised by the Oil & Gas Production Fee created by SB24-230. The program is currently in development and is expected to provide $10 - $12 million in competitive grants by FY27 to incentivize the creation of Regional Transportation Authorities and support the development/improvement of multimodal facilities.

SB230 Passenger Rail Grant Program

The CTE Discretionary Grant Program is funded by 20% of the revenues raised by the Oil & Gas Production Fee created by SB24-230, which is projected to be $20-$24 million a year in FY27 and beyond. The program is currently supporting the development of the Northwest Passenger Rail Corridor between Denver and Fort Collins and the CTE board anticipates providing assistance to RTD to enable completion of the N Line extension

Examples of what these grants help fund:

Transit Zero-Emission Vehicle Grants:

  • Transit agencies plans for transition to electric or other transit ZEV buses
  • Facility upgrades to allow for safe operation and maintenance of transit ZEV buses
  • Acquisition of transit ZEV vehicles and associated charging/re-fueling infrastructure

SB230 Grant Programs:

  • Acquisition of vehicles to support expanded transit services
  • Expanded operations to expand routes and services areas, increase frequency and hours of service, and add new routes
  • Incentives for creating Regional Transit Authorities
  • Planning and construction of new multimodal facilities or improvements to existing ones
  • Support for RTD’s completion of projects associated with the N line extension.
  • Support for development and/or operations of Northwest Corridor Passenger Rail from Denver to Fort Collins