Clean Air Program (CAP) Grants

Eligible applicants

• Private entities: Manufacturing operations (2022 NAICS code between 31-33),  energy producers & mining operations (2022 NAICS code 21),  dairies, 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 that engages in industrial and manufacturing operations

Eligible project costs & types

Funds can be used for costs associated with the purchase and installation of industrial air pollutant emission reduction project-related equipment at the site where air pollutant emissions are being generated and released (Scope 1 emissions). Additionally, project costs associated with direct air capture and producing or utilizing sustainable aviation fuel or clean hydrogen may be deemed eligible. 
 

Eligible project types for the first RFA round include:

• Fossil fuel efficiency & fuel switching to lower carbon fuel sources
• Industrial process changes that reduce air pollutant emissions
• Converting fossil fuel-powered equipment/processes to an electric fuel source (i.e. strategic electrification)
• Where grid access is unavailable, renewable energy projects supporting strategic electrification or fulfilling some or all processing heating requirements

In the future, the following project types may become eligible for CAP grants:

• Transportation projects
• Projects involving carbon capture utilization and storage 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)

What is a voluntary project?

CAP considers a voluntary project to be a project submitted by an applicant who, at the time of application submission and award determination, is not subject to applicable state or federal air pollutant or energy reduction law(s), regulation(s) or legally binding mandate(s) that require the applicant to undertake reductions at or above the levels estimated to be achieved through the proposed project. In the event that an applicant is subject to any such requirements, the applicant is required to demonstrate all resulting air pollutant and/or energy reduction benefits are in excess of existing reduction or efficiency requirements, or that the reductions will occur at least one year before the requirements mandate.

Note: CAP reserves the right to make final determinations as to whether a project's additionality requirements have been satisfied

First round grant funding amount

CEO is making up to $10.5 million in project funding available to eligible entities this first round. Subsequent funding rounds may outline a specific amount of funding available to applicants during that Request for Applications (RFA) cycle. 

The minimum funding award per application this round is $100,000. The maximum funding award per application in this first funding round is $1.5 million.

First round match 

All applicants are subject to a cash match requirement of at least 25%, factoring in other stacked grant or rebate funding and applicable tax credits. The first round of CAP-specific grant funding cannot exceed 50% of the cost for any eligible project or applicant type. You can find a complete breakout of cost coverage per applicant and project type in the RFA document.

How

Applicants who meet program criteria and eligibility requirements are invited to submit an application and all required supporting documents to ceo_cleanairprogram@state.co.us. 

When

The first RFA round will be open from March 29 - June 12. Applications are due no later than June 12, 5:00 PM MT.

Step I: CEO will review applications to determine that the applicant and project type are eligible for CAP funding and the applicant submitted all required information.

Step II: A review committee will score applications based on the following criteria: 

• Annual estimated air pollutant emissions avoided 
• Project co-benefits (e.g., health benefits, job creation)
• Project readiness 
• Demonstrated funding need & non-CAP resources leveraged 
• Project innovation 

Scores will be systematically weighted to prioritize funding for projects in disproportionately impacted communities and small disadvantaged businesses.

Step III: CEO will make final project award determinations and will contact awarded applicants with the next steps to formally execute a grant agreement. CEO will also notify applicants not selected for grant funding via email.

Awarded applicants must enter a formal grant agreement with CEO to receive funds. CEO will issue payment as reimbursements. Work the applicant performs before formally executing a grant agreement with CEO is not eligible for reimbursement.