Clean Transit Enterprise

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The purpose of the CTE is to both support public transit electrification and assist in the expansion of transit and passenger rail services throughout the state. This includes providing grants for electrification planning, facility upgrades, fleet vehicle replacements and the purchase and installation of electric vehicle charging and fueling infrastructure through the Clean Transit Retail Delivery Fee. The CTE also provides a combination of formula and competitive grants to invest in public transit and passenger rail entities by providing funding for vehicles, infrastructure, equipment, materials, supplies, operations and staffing, and maintenance through revenues provided by the Oil & Gas Production Fee.

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The CTE was initially created within the Colorado Department of Transportation under SB21-260 to support public transit electrification planning efforts, facility upgrades, fleet motor vehicle replacement, as well as construction and development of electric motor vehicle charging and fueling infrastructure. SB21-260 allows the enterprise to impose a Clean Transit Retail Delivery Fee to fund its operations, and to issue grants, loans or rebates to support electrification of public transit.

More information on SB21-260 can be found at: https://leg.colorado.gov/bills/sb21-260

In 2024, the business purpose of the CTE was expanded with the passage of SB24-230 to include reducing and mitigating the adverse environmental and health impacts of air pollution and greenhouse gas emissions produced by oil and gas development by investing in public transit, including vehicles, infrastructure, equipment, materials, supplies, maintenance, and operations and staffing to achieve the level of frequent, convenient, and reliable transit that is known to increase ridership by replacing car trips with bus and rail trips and forms of transit known to support denser land use patterns that further reduce pollution due to shorter trip lengths and greater walking and cycling mode share. SB24-230 requires the CTE to impose a production fee for clean transit to be paid quarterly by every producer of oil and gas in the state effective July 1, 2025.

More information on SB24-230 can be found at: https://leg.colorado.gov/bills/sb24-230