Hydrogen Laws and Incentives in Colorado

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

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)

Clean Energy Career Program

The State Council and the Colorado Department of Natural Resources must create an industry driven energy sector career pathway for implementation before the 2022-2023 academic year. The energy sector includes occupations and activities relating to the development, installation, and maintenance of products or technologies in the areas of electric vehicles, electric vehicle supply equipment, hydrogen fuel cell technology, and renewable natural gas.

(Reference Colorado Revised Statutes 42-46.3-501)

Fleet Alternative Fuel Vehicle Incentive Authorization

The Colorado Department of Public Health and Environment (CDPHE) is authorized to issue grants, loans, and rebates through the Clean Fleet Enterprise (Enterprise), a government-owned business, to business and government entities for the replacement of light-, medium-, and heavy-duty fleet vehicles with clean vehicles. Eligible projects include electric, hydrogen, and renewable natural gas vehicles as well as idle reduction technology. The Enterprise may impose fees to raise funds for financing programs. For more information, see the CDPHE Enterprise website.

(Reference Colorado Revised Statutes 25-7.5-103)

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)

Hydrogen Fueling Station Regulations

The Colorado Department of Labor and Employment, Division of Oil and Public Safety (OPS), enforces rules concerning retail hydrogen fueling stations. The rules include information regarding inspections, specifications, shipment notification, record keeping, labeling of containers, use of meters or mechanical devices for measurement, submittal of installation plans, and minimum standards for the design, construction, location, installation, and operation of stations. For more information, see the OPS Regulations and Statues website.

(Reference 7 Code of Colorado Regulations 1101-17 )

Hydrogen Production Support and Requirements

The Public Utilities Commission (PUC) must begin researching clean hydrogen production projects. By December 1, 2024, the PUC must establish greenhouse gas emissions requirements for clean hydrogen producers and production projects.

(Reference Colorado Revised Statutes 40-2-138)

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of MHD ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the MHD ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement

Colorado has adopted the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations, requiring manufacturers to meet California ZEV production and sales requirements. Beginning with model year 2027, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in Colorado. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the Colorado Department of Public Health & Environment Clean Trucking website.

(Reference 5 Code of Colorado Regulations 1001-24)

Transportation Impacts Stakeholder Group

The Colorado Department of Transportation (CDOT) will convene and engage with a stakeholder group to examine and address impacts of new transportation technologies and business models. The topics include funding transportation infrastructure needed to support the adoption of zero-emission vehicles (ZEV) and incentivizing the adoption of ZEVs for use in commercial applications. In 2019, CDOT and the Colorado Energy Office published a report on the progress and policy recommendations of the stakeholder group.

(Reference Colorado Revised Statutes 43-1-125)

State Incentives

Alternative Fuel Vehicle (AFV) Weight Exemption

Gross vehicle weight rating limits for AFVs are 2,000 pounds greater than those for comparable conventional vehicles, as long as the AFVs operate using an alternative fuel or both alternative and conventional fuel, when operating on a highway that is not part of the interstate system. For the purpose of this exemption, alternative fuel is defined as compressed natural gas, propane, ethanol, or any mixture containing 85% or more ethanol (E85) with gasoline or other fuels, electricity, or any other fuels, which may include clean diesel and reformulated gasoline, so long as the Colorado Air Quality Control Commission determines that these other fuels result in comparable reductions in carbon monoxide emissions and brown cloud pollutants.

(Reference Colorado Revised Statutes 42-4-508)

Diesel Emissions Reduction Grant

The Colorado Department of Public Health and Environment (CDPHE) administers the Colorado Clean Diesel Program (CCDP), which provides funding to private and public entities to replace diesel vehicles and equipment with all-electric or hybrid-electric equivalents. Eligible projects include terminal tractors, construction equipment, bucket trucks, transportation refrigeration units, airport ground support equipment, lawn mowers, farm tractors, bucket trucks, snow groomers, idle-reduction technologies, and associated charging infrastructure. A minimum cost share is required and varies by project technology. CCDP is funded by the Diesel Emissions Reduction Act. For more information, see the CCDP website.

Point of Contact
Zuleika Pevec
Program Manager
Colorado Clean Diesel Program
Phone: (970) 704-9200 x104
zpevec@cleanenergyeconomy.net

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-family housing 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

Fleet Alternative Fuel Vehicle (AFV) and Technology Grants

The Clean Fleet Vehicle and Technology Grant Program, administered by the Colorado Department of Public Health and Environment (CDPHE) through the Clean Fleet Enterprise, offers grants to business and government fleets for the purchase of new AFVs or the conversion of existing fleet vehicles to operate on alternative fuels. Eligible projects include light-, medium-, and heavy-duty vehicles, and eligible alternative fuels include electricity, hydrogen, and compressed natural gas. Incentive amounts vary based on vehicle technology and gross vehicle weight rating. For more information, including additional eligibility criteria, see the CDPHE Clean Fleet Enterprise website and the Clean Fleet Vehicle Technology Grant Program guide.

Hydrogen Production Tax Credit

Hydrogen fuel producers may receive a tax credit equal to up to $1 per kilogram (kg) for the use of clean hydrogen in “hard-to-decarbonize” sectors of the economy, including heavy-duty vehicle transportation. Clean hydrogen is defined as hydrogen that is derived from a clean energy resource or uses water as the source of the hydrogen. For more information, see the Colorado Department of Regulatory Agencies Tax Credit Certificates website.

(Reference Colorado Revised Statutes 39-22-557, 40-2-125.5, and 40-2-138)

Industrial and Manufacturing Operations Emissions Reduction Grant

The Colorado Energy Office (CEO) will administer the Industrial and Manufacturing Operations Clean Air Grant Program (Program), which funds projects that reduce emissions from industrial and manufacturing operations, including transportation electrification and hydrogen projects. Eligible applicants include private entities, local and tribal governments, and public-private partnerships. Projects located in underserved communities or areas in nonattainment with the National Ambient Air Quality Standards may receive priority consideration. Additional terms and conditions apply. For more information, see the CEO Program website.

(Reference Colorado Revised Statutes 24-38.5-116)

More Laws and Incentives

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