About the Colorado Clean Diesel Program

Purpose

The Colorado Clean Diesel Program is focused on spurring the adoption and demonstration of certain technologies that significantly reduce diesel emissions.

These technologies are on the cutting edge now, but they will likely become industry standard in the next decade or so. This program encourages forward-thinking companies to try them out, which will enable manufacturers to scale up production and bring down prices.

How it works

Businesses interested in replacing one or more of their older diesel machines with eligible lower- or zero-emissions equivalents can apply for a grant. Applications are accepted on a rolling basis. Up to $2 million is available for grants in 2022.

Grants may be up to 25-45% of the project cost, depending on type of equipment. All-electric (zero-emissions) equipment types will be given preference and will qualify for the higher percentage because they completely eliminate tailpipe emissions. Hybrid-electric purchases qualify for lower-percentage grants because they don’t cut emissions as much.

The program’s goal is to replace old, polluting diesel machines with clean new ones. Therefore, applicants must be prepared to scrap an existing diesel vehicle or piece of equipment if approved for funding. (Note: the scrappage requirement does not apply to parking spot/loading bay electrification projects or idle-reduction technologies.)

Management and funding

The Colorado Department of Public Health and Environment has contracted with Clean Energy Economy for the Region (CLEER), a Carbondale-based nonprofit, to manage the Colorado Clean Diesel Program.

Funding for the program comes from two sources: the Environmental Protection Agency, which allocates funding to each state under the Diesel Emissions Reduction Act (DERA); and Colorado’s Beneficiary Mitigation Plan, our state’s share of funding resulting from the legal settlement of the Volkswagen emissions scandal.