Biodiesel Laws and Incentives in Colorado

The list below contains summaries of all Colorado laws and incentives related to biodiesel.

State Incentives

Advanced Industries (AI) Accelerator Program Grants

The Colorado Office of Economic Development & International Trade (OEDIT) provides grants through the AI Accelerator Programs to promote growth and sustainability in Colorado’s AIs. Grants may be available for advanced industries such as vehicle and component manufacturing and biofuels. Four types of grants are available, including Proof of Concept, Early-Stage Capital and Retention, Collaborative Infrastructure, and AI Exports. For more information on each grant program, including eligibility requirements and how to apply, see the OEDIT AI Accelerator Programs website.

Electric Vehicle (EV) and Infrastructure Coaching Service

The Colorado Energy Office (CEO) administers the ReCharge Colorado program (ReCharge) to advance the adoption of EVs and installation of charging infrastructure in Colorado. ReCharge provides coaching services to consumers, local governments, workplaces, and multi-unit dwellings to help them identify monetary savings, grant opportunities, and other EV benefits. ReCharge also helps build local stakeholder support for EVs. For more information, see the CEO ReCharge Colorado website.

Point of Contact
Matt Mines
Program Manager, Transportation Fuels and Technology
Colorado Energy Office
Phone: (303) 866-2128
matt.mines@state.co.us
https://energyoffice.colorado.gov

Laws and Regulations

Alternative Fuel Vehicle (AFV) Registration

Upon registering a motor vehicle with the Colorado Department of Revenue Division of Motor Vehicles, the vehicle owner must report the type of alternative fuel used to operate the vehicle and whether the vehicle is dedicated to one alternative fuel or uses more than one fuel. The Department of Revenue provides forms for the purpose of registering motor vehicles and must include space for the following fuel types: gasoline, diesel, propane, electricity, natural gas, methanol/M85, ethanol/E85, biodiesel, and other. For more information, see the Colorado Department of Revenue Division of Motor Vehicles website.

(Reference Colorado Revised Statutes 42-3-113)

Gasoline and Diesel Gallon Equivalent Definition

Motor fuels, including alternative fuels, may be sold by gasoline gallon equivalent (GGE) or diesel gallon equivalent (DGE) as long as the dispenser used for the sale of motor fuel in GGEs or DGEs clearly displays the applicable conversion factor and other required information. (Reference Colorado Revised Statutes 8-20-232.5)

Renewable and Alternative Fuel Storage Tank Regulations

The Colorado Department of Labor and Employment, Division of Oil and Public Safety, enforces rules concerning the placement of underground and aboveground storage tanks that contain alternative and renewable fuel. For the purpose of these regulations, an alternative fuel is a motor fuel that combines petroleum-based fuel products with renewable fuels; a renewable fuel is a motor vehicle fuel produced from plant or animal products or wastes.

(Reference Colorado Revised Statutes 8-20.5-202 and 8-20.5-302 and 7 Code of Colorado Regulations 1101-14 )

State Agency Alternative Fuel Use and Vehicle Acquisition Requirement

The Colorado Department of Personnel and Administration (DPA) requires all state-owned diesel vehicles and equipment to be fueled with a diesel blend of 20% biodiesel (B20), subject to the availability of the fuel and so long as the price differential is not greater than $0.10 more per gallon compared to 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 ASTM specifications and is produced in Colorado. DPA must increase the use of alternative fuels and establish objectives to increase its use for each succeeding year. DPA must purchase motor vehicles that operate on compressed natural gas (CNG), electric vehicles, or vehicles that operate on other alternative fuels, subject to the availability of vehicles and adequate fueling infrastructure and assuming the incremental base or life cycle cost of the vehicle is not more than 10% over the cost of a comparable dedicated conventional vehicle. Some vehicles may be exempt from this requirement if available alternative fuel vehicles (AFVs) do not meet application requirements. On or before November 1 of each year, DPA must submit a report to the general assembly outlining vehicle purchases, including alternative fuel and conventional vehicles; alternative fueling infrastructure availability in the state; AFV purchase exemptions; administrative policies in place to facilitate the purchase of AFVs; suggested changes to facilitate the gradual conversion of the motor vehicle fleet to AFVs; and a plan for the necessary infrastructure development.

(Reference Executive Order D 2015-013, 2015 and Colorado Revised Statutes 24-30-1104)

Vehicle Fleet Maintenance and Fuel Cost-Savings Contracts

Government fleets may finance the lease or purchase cost of alternative fuel vehicles and alternative fueling infrastructure through energy performance contracts where vehicle operational and fuel cost savings pay for the capital investment. Energy performance contracts must show that the annual cost savings associated with the fueling and maintenance of vehicles with higher efficiency ratings or alternative fueling methods is equal to or higher than the annual contract payments.

(Reference Colorado Revised Statutes 24-30-2001 through 24-30-2003 and 29-12.5-101 through 29-12.5-104)

More Laws and Incentives

To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.