Clean Air Grants Program (CAP)

Senate Bill 22-193 Air Quality Improvement Investments, signed June 2022, authorizes the Colorado Energy Office (CEO) to provide financial assistance in the form of grants to eligible applicants for the implementation of voluntary industrial and manufacturing air pollutant emission reduction projects in Colorado. The resulting Clean Air Grants Program (CAP) is a competitive grant program administered by CEO, with a total funding amount not to exceed $25 million over the program’s six-year duration, sunsetting June 30, 2028.

 

Contact information

For more information regarding CAP grants, please reach out to wil.mannes@state.co.us.


See all Clean Energy Program Grants

Overview

Type: Grant

For: Private entities, Local governments, Public-private partnerships

Amount: $25 million total

Match: TBD

Program Length: 6 years, sunsetting June 30, 2028

RFA rounds: TBD

 Eligible applicants
  • Private entities: Manufacturing operations, cement plants, steel mills, energy producers, refineries, meat packing plants, dairies, mining operations, airline operations, wastewater treatment plants, landfill operators, abandoned coal mine sites
  • Local governments: A statutory or home rule municipality, county, city and county, or special district
  • Public-private partnerships: A partnership between a local government and a private entity

 

Eligible project costs & types

Funds shall be used for costs directly associated with the purchase and installation of commercially available air pollutant emission reduction projects at the site where air pollutant emissions are being generated and released. These emissions are also known as Scope 1 emissions. Additionally, project costs associated with producing or utilizing sustainable aviation fuel and/or clean hydrogen are deemed eligible.

Eligible project types include:

  • Energy efficiency projects with scope 1 emission reduction potential
  • Industrial process changes reducing air pollutant emissions
  • Renewable energy projects
  • Converting fossil fuel-powered equipment/processes to an electric fuel source (i.e. strategic electrification)
  • Transportation electrification projects
  • Projects  involving carbon capture at industrial facilities and direct air carbon capture projects
  • Methane capture from landfills, sewage treatment plants, active or inactive coal mines, or agricultural operations
  • Projects producing or utilizing sustainable aviation fuel
  • Projects producing or utilizing clean hydrogen: Green hydrogen projects via electrolysis powered entirely by renewable energy will be prioritized over clean hydrogen projects utilizing any other clean hydrogen production technology. Other clean hydrogen projects, if awarded, must comply with section 42 U.S.C. sec. 16152 (1)
  • Other commercially available technologies that demonstrate scope 1 emission reduction capabilities as deemed eligible by CEO

 

Total grant funding amounts

CEO is making a total of $25 million in project funding available to eligible entities. Each funding round will outline a specific amount of funding available to applicants during that Request for Applications (RFA) cycle. 

 

Minimum & maximum funding awards per application

To be determined

Applicants who meet program criteria and eligibility will submit applications and all required supporting documents during RFA cycles. 

RFA Cycle open dates & deadlines are to be determined.

To be determined.

To be determined.