(1) There is hereby created in the state treasury the community impact cash fund, referred to in this section as the fund. The fund consists of money credited to the fund pursuant to subsection (2) of this section and any other money that the general assembly may appropriate or transfer to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. Any unexpended and unencumbered money remaining in the fund at the end of any fiscal year remains in the fund.
(2) (a) The state treasurer shall credit the receipts from penalties or fines collected under sections 25-7-115, 25-7-122, and 25-7-123 in the following manner:
(I) For state fiscal year 2021-22, twenty percent of the receipts from penalties or fines collected during the fiscal year shall be credited to the fund, and eighty percent to the general fund;
(II) For state fiscal year 2022-23, forty percent of the receipts from penalties or fines collected during the fiscal year shall be credited to the fund, and sixty percent to the general fund;
(III) For state fiscal year 2023-24, sixty percent of the receipts from penalties or fines collected during the fiscal year shall be credited to the fund, and forty percent to the general fund;
(IV) For state fiscal year 2024-25, eighty percent of the receipts from penalties or fines collected during the fiscal year shall be credited to the fund, and twenty percent to the general fund; and
(V) For state fiscal year 2025-26 and any state fiscal year thereafter:
(A) The first one million dollars to the motor vehicle emissions assistance fund established in section 25-7-129.5; and
(B) One hundred percent of the remainder to the fund.
(b) This subsection (2)(b) and subsections (2)(a)(I), (2)(a)(II), (2)(a)(III), and (2)(a)(IV) of this section are repealed, effective September 1, 2027.
(3) (a) Beginning in fiscal year 2022-23, the department may expend money from the fund to provide grants for environmental mitigation projects pursuant to section 25-1-134 (2)(g)(VII).
(b) Money in the fund may also pay for the direct and indirect costs of the environmental justice advisory board created in section 25-1-134 (2), including per diem and expenses of the advisory board, and the department's costs for administering the grant program created in section 25-1-134 (2)(g)(VII).
(c) Money in the fund is exempt from section 24-75-402 (3).
(d) The department may seek, accept, and expend gifts, grants, or donations from private or public sources for the purposes set forth in this subsection (3).
(e) Subject to annual appropriation by the general assembly, the department may expend money from the fund to accomplish the purposes set forth in this subsection (3).
(f) The department may expend money from the fund for purposes of any environmental equity and cumulative impact analyses in accordance with section 25-1-133.
(4) (a) On July 1, 2025, the state treasurer shall transfer six million dollars from the fund to the general fund.
(b) This subsection (4) is repealed, effective July 1, 2026.
Source: L. 79: Entire article R&RE, p. 1049, � 1, effective June 20. L. 2021: Entire section amended, (HB 21-1266), ch. 411, p. 2740, � 13, effective July 2. L. 2025: (4) added, (SB 25-264), ch. 129, p. 506, � 33, effective April 25; IP(2)(a) and (2)(a)(V) amended, (SB 25-321), ch. 387, p. 2177, � 6, effective June 3; (3)(e) amended, (SB 25-265), ch. 130, p. 511, � 2, effective July 1; (3)(f) added, (HB 25-1267), ch. 252, p. 1263, � 5, effective August 6.
Cross references: For the short title (Environmental Justice Act) and the legislative declaration in HB 21-1266, see sections 1 and 2 of chapter 411, Session Laws of Colorado 2021.
25-7-129.5. Motor vehicle emissions assistance fund - division to provide grants - gifts, grants, or donations - definition. (1) As used in this section, fund means the motor vehicle emissions assistance fund created in subsection (2) of this section.
(2) The motor vehicle emissions assistance fund is created in the state treasury. The fund consists of money credited to the fund pursuant to section 25-7-129 (2)(a)(V)(A), any other money that the general assembly may appropriate or transfer to the fund, and any gifts, grants, and donations received under subsection (5) of this section.
(3) (a) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.
(b) At the end of each state fiscal year, no more than two hundred fifty thousand dollars that is unexpended and unencumbered remains in the fund.
(c) At the end of each state fiscal year, the state treasurer shall credit any unexpended and unencumbered money in excess of two hundred fifty thousand dollars remaining in the fund to the community impact cash fund created in section 25-7-129 (1).
(4) Beginning in the state fiscal year 2025-26, the division may expend money from the fund to provide grants for:
(a) Paying emissions inspection fees required by part 3 of article 4 of title 42, or rules adopted by the commission under part 3 of article 4 of title 42, for motor vehicles registered to individuals participating in an established and recognized public assistance program; or
(b) Adjustments or emissions-related repairs that are necessary and sufficient to receive a certification of emissions compliance under part 3 of article 4 of title 42 and rules adopted under part 3 of article 4 of title 42 if the adjustments or repairs are performed by:
(I) A registered repair facility or technician, as defined in section 42-4-304 (21); or
(II) A motor vehicle repair facility registered with the secretary of state and in compliance with article 9 of title 42 or registered with the division pursuant to rules adopted by the commission.
(c) To qualify for a grant under subsection (4)(b) of this section, a motor vehicle owner must:
(I) Own a motor vehicle that is required to be registered in the program area and either:
(A) Participate in an established and recognized public assistance program; or
(B) Demonstrate qualifying repair expenditures that meet or exceed the limits established to comply with section 42-4-310 (1)(d)(VI); or
(II) Own a motor vehicle that has been identified as a high emitter and participate in a voluntary study conducted by the division.
(d) Subsection (4)(c)(II) of this section does not require the division to pay a motor vehicle owner to participate in a voluntary study.
(5) The division may seek, accept, and expend gifts, grants, or donations from private or public sources for the purposes set forth in this section. The state treasurer shall credit any gifts, grants, or donations received by the division to the fund.
(6) Money in the fund is continuously appropriated to the division to accomplish the purposes set forth in this section.
Source: L. 2025: Entire section added, (SB 25-321), ch. 387, p. 2177, � 7, effective June 3.