Production fee for clean transit imposed by the enterprise - local transit operations program - local transit grant program - rail funding program - cash funds - report
C.R.S. § 43-4-1204
in effect43-4-1204. Production fee for clean transit imposed by the enterprise - local transit operations program - local transit grant program - rail funding program - cash funds - report. (1) (a) In furtherance of its business purpose pursuant to section 43-4-1203 (3)(a)(II), the enterprise shall impose a production fee for clean transit to be paid quarterly by every producer that applies to all oil and gas produced by the producer in the state on and after July 1, 2025.
(b) (I) No later than one week after October 1, 2025, and no later than one week after the first day of each calendar quarter thereafter, the energy and carbon management commission, created in section 34-60-104.3 (1), shall calculate, including performing any necessary measurement unit conversions to calculate, the average oil spot price and the average gas spot price for the previous calendar quarter and publish the average oil spot price and average gas spot price on the energy and carbon management commission's website. The energy and carbon management commission shall routinely provide written guidance to the enterprise on factors relevant to the production fee amounts, including guidance on the current condition of the oil and gas market and the market's sensitivity to higher or lower production fee amounts. In preparing the written guidance, the energy and carbon management commission shall:
(A) Take into consideration emergencies, national security needs, extreme market disruptions, and extreme new regulatory burdens on producers; and
(B) Not act in an arbitrary and capricious manner.
(II) No later than one month after the energy and carbon management commission publishes the average oil spot price and the average gas spot price for the previous calendar quarter on the energy and carbon management commission's website pursuant to subsection (1)(b)(I) of this section, the enterprise shall set the production fee amounts applicable to the previous calendar quarter, notify the executive director of the department of revenue of the production fee amounts set, and publish the production fee amounts on the enterprise's website. Prior to adopting the production fee amounts, the enterprise shall consult with the energy and carbon management commission on the appropriate production fee amounts for the previous quarter and take into account the maximum amounts described in section 43-4-1202 and other relevant market factors.
(III) On or before the last day of the second month following the previous calendar quarter, every producer shall file a return and pay the production fee for clean transit for the previous calendar quarter in accordance with section 33-61-106.
(c) (I) The executive director of the department of revenue shall collect, administer, and enforce the production fee for clean transit on behalf of the enterprise in accordance with article 61 of title 33 and article 21 of title 39.
(II) For the purpose of minimizing compliance costs for producers and administrative costs for the state, when the executive director of the department of revenue collects the production fee for clean transit, the executive director of the department of revenue shall also collect the production fee for wildlife and land remediation in the same manner.
le 61 of title 33 and article 21 of title 39.
(II) For the purpose of minimizing compliance costs for producers and administrative costs for the state, when the executive director of the department of revenue collects the production fee for clean transit, the executive director of the department of revenue shall also collect the production fee for wildlife and land remediation in the same manner.
(d) The executive director of the department of revenue shall transmit any production fees for clean transit collected pursuant to subsection (1)(c) of this section to the state treasurer, who shall credit:
(I) First, the costs to the department of revenue for administering the production fees for clean transit pursuant to section 33-61-104, which shall be credited to the oil and gas production fees collection fund created in section 33-61-104 (1); and
(II) Second, of the amount of the production fees for clean transit remaining:
(A) Seventy percent to the local transit operations cash fund created in subsection (3)(a) of this section;
(B) Ten percent to the local transit grant program cash fund created in subsection (4)(a) of this section; and
(C) Twenty percent to the rail funding program cash fund created in subsection (5)(a) of this section.
(e) Any money that the department of revenue collects and transmits to the state treasurer pursuant to this subsection (1):
(I) Is collected for the enterprise;
(II) Is custodial money intended for the enterprise and held temporarily by the department of revenue and the state treasurer solely for the purpose of crediting the money to the cash funds described in subsection (1)(d) of this section; and
(III) Based on the enterprise's status as an enterprise, is not subject to section 20 of article X of the state constitution at any time during its collection, transmission, and use.
(2) No later than March 1, 2030, and every fifth March 1 thereafter, the enterprise shall complete an analysis of the production fee amounts, the amount of revenue generated by the production fees for clean transit, and the use of the production fee for clean transit revenue in order to ensure that the enterprise is continuing to impose production fee amounts that are reasonably calculated to not exceed the overall costs of providing the remediation services described in this section. The enterprise shall post the analysis on the enterprise's website.
(3) (a) The local transit operations cash fund is created in the state treasury. The local transit operations cash fund consists of production fees for clean transit credited to the local transit operations cash fund pursuant to subsection (1)(d)(II)(A) of this section, any other money that the general assembly may appropriate or transfer to the local transit operations cash fund, and any federal money or gifts, grants, or donations received. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the local transit operations cash fund to the local transit operations cash fund. Money in the local transit operations cash fund is continuously appropriated to the enterprise for the purposes specified in this subsection (3).
(b) The local transit operations program is created to:
(I) Expand transit service, increase transit frequency, and improve system-wide transit network connectivity with the goal of maximizing transit ridership, therefore decreasing vehicle miles traveled, greenhouse gas emissions, and air pollutants; and
(II) Prioritize transit service improvements in communities with high transit propensity, such as low-income communities, communities of color, communities with high-density populations, communities with zoning and other local policies that support higher densities along transit lines, communities with low vehicle ownership rates, the disability community, seniors, and other populations that use transit more frequently than the general population.
munities with high transit propensity, such as low-income communities, communities of color, communities with high-density populations, communities with zoning and other local policies that support higher densities along transit lines, communities with low vehicle ownership rates, the disability community, seniors, and other populations that use transit more frequently than the general population.
(c) Pursuant to the purposes of the local transit operations program, the enterprise shall allocate money from the local transit operations cash fund to eligible entities using a formula developed by the board, which shall be based on population, population density, local zoning, transit ridership, vehicle revenue miles, share of disproportionately impacted community population, and other transit-related criteria. An eligible entity that is awarded money from the local transit operations cash fund shall:
(I) Prior to receiving any money, submit the eligible entity's most recent service improvement plan or system optimization plan to the board and describe how the money would be used to expand transit service, increase transit frequency, improve system-wide transit connectivity, and meet the other purposes described in subsection (3)(b) of this section;
(II) Use the money for eligible operating expenses; and
(III) Use the entirety of the money no later than two years after the contract allocating the money is finalized.
(d) An eligible entity awarded money pursuant to subsection (3)(c) of this section that provides service to areas with a population of one million individuals or more shall:
(I) In a format that is easy to access, understand, and navigate:
(A) Make the eligible entity's annual budget or other information related to the budget available to the public on the eligible entity's website; and
(B) Create and make available to the public on the eligible entity's website an annual budget overview that provides a single-page summary of the eligible entity's revenues and expenses by category as specified in the eligible entity's annual budget; and
(II) Create, maintain, and regularly update the following on the eligible entity's website:
(A) An annual update regarding the eligible entity's financial plan that includes a detailed report of all the eligible entity's capital projects that are in progress;
(B) A quarterly update regarding all of the eligible entity's capital projects that are in progress, including a project schedule and project expenditure information for each project;
(C) A public accountability dashboard that provides, at a minimum, accessible and transparent summary information regarding each of the eligible entity's capital projects that is in progress; the funding status of each project, including the project's total funding and expenditures to date; and the eligible entity's progress toward the completion of each project;
(D) A public accountability dashboard that shows ridership by route and reliability of service;
(E) A public accountability dashboard that shows the eligible entity's workforce statistics regarding employee retention, recruitment, and vacancies; and
(F) A summary page for planned service changes that includes detailed timing changes, effects on local transfers, and the reasons for any planned changes.
public accountability dashboard that shows ridership by route and reliability of service;
(E) A public accountability dashboard that shows the eligible entity's workforce statistics regarding employee retention, recruitment, and vacancies; and
(F) A summary page for planned service changes that includes detailed timing changes, effects on local transfers, and the reasons for any planned changes.
(4) (a) The local transit grant program cash fund is created in the state treasury. The local transit grant program cash fund consists of production fees for clean transit credited to the local transit grant program cash fund pursuant to subsection (1)(d)(II)(B) of this section, any other money that the general assembly may appropriate or transfer to the local transit grant program cash fund, and any federal money or gifts, grants, or donations received. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the local transit grant program cash fund to the local transit grant program cash fund. Money in the local transit grant program cash fund is continuously appropriated to the enterprise for the purposes specified in this subsection (4).
(b) The local transit grant program is created to increase transit ridership and service, particularly in transit-reliant communities, therefore decreasing vehicle miles traveled, greenhouse gas emissions, and air pollutants.
(c) The enterprise shall provide competitive grants from the local transit grant program cash fund to eligible entities for eligible operating expenses and capital expenses associated with providing public transportation, including multimodal projects that improve accessibility and connectivity between transit services and safe access to transit for pedestrians and bicyclists. The board shall design the grant program to incentivize the matching of grants and the creation or expansion of local regional transportation authorities.
(5) (a) The rail funding program cash fund is created in the state treasury. The rail funding program cash fund consists of production fees for clean transit credited to the rail funding program cash fund pursuant to subsection (1)(d)(II)(C) of this section, any other money that the general assembly may appropriate or transfer to the rail funding program cash fund, and any federal money or gifts, grants, or donations received. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the rail funding program cash fund to the rail funding program cash fund. Money in the rail funding program cash fund is continuously appropriated to the enterprise for the purposes specified in this subsection (5).
(b) The rail funding program is created to fund passenger rail projects and service, therefore decreasing vehicle miles traveled, greenhouse gas emissions, and air pollutants.
(c) Pursuant to the purpose of the rail funding program, the enterprise shall allocate money annually from the rail funding program cash fund for passenger rail projects of regional and statewide importance, including projects that:
(I) Have established plans and can demonstrate the potential for high ridership and the reduction of vehicle miles traveled;
(II) Facilitate lower-impact local land use decisions, in particular the construction of mixed-use or infill housing development along the passenger rail corridor to achieve lower energy use intensity, fewer greenhouse gas emissions, greater density and walkability, and less water consumption from the built environment; and
(III) Strive to use low- to zero-emissions technology.
e miles traveled;
(II) Facilitate lower-impact local land use decisions, in particular the construction of mixed-use or infill housing development along the passenger rail corridor to achieve lower energy use intensity, fewer greenhouse gas emissions, greater density and walkability, and less water consumption from the built environment; and
(III) Strive to use low- to zero-emissions technology.
(d) (I) Pursuant to the purpose of the rail funding program, the enterprise shall prioritize funding opportunities to establish passenger rail where there is matching funding from other sources, such as the regional transportation district's FasTracks internal savings account, federal funding, local funding, and other sources.
(II) Any money from the rail funding program cash fund that is used for the regional transportation district's transportation expansion plan adopted by the board of the regional transportation district and approved by the voters on November 2, 2004, must be in addition to the regional transportation district's FasTracks internal savings account and must not supplant existing resources in the regional transportation district's FasTracks internal savings account.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-43.docx#43-4-1204Fetched: 10/6/2026