Clean Air Program (CAP)

The Colorado Clean Air Program Grants, administered by the Colorado Energy Office, aim to support the reduction of industrial air pollutant emissions by offsetting the direct costs associated with purchasing emission reduction equipment. The program is designed to fund projects that achieve additional direct air pollutant reductions within industrial production processes. The total funding available for this round is up to $15 million, although this amount may vary based on the quality and number of applications received. All projects must be installed and reimbursement requests processed by June 30, 2028, to qualify for funding. The primary purpose of the Clean Air Program Grants is to facilitate the implementation of projects that directly reduce air pollutants generated during industrial operations. Eligible projects include various types of emission reduction strategies, such as fuel switching to lower greenhouse gas emitting sources, strategic electrification, and methane capture. The program emphasizes the need for projects to demonstrate additionality, meaning they must achieve direct reductions in air pollutants rather than relying on indirect methods. Funding from the Clean Air Program Grants can be used for a range of costs associated with eligible projects. This includes the purchase and installation of air pollutant emission reduction equipment, hard costs related to installation, utility service upgrades, equipment shipping, and labor costs. Each application must request a minimum of $100,000 in funding, and applicants are required to separate their costs into equipment, non-labor project costs, and labor costs. Additionally, partial coverage for current energy supplier contract termination costs may be available if applicants switch to lower carbon fuel types. Eligible applicants for the Clean Air Program Grants include private entities such as industrial and manufacturing companies, local and tribal governments, public-private partnerships, and “as-a-service” providers. Specific types of facilities that can apply include manufacturing operations, energy production and mining operations, refineries, cement plants, and various types of treatment plants. The program is open to all counties in Colorado, and applicants must ensure that their projects are sited at qualifying industrial and manufacturing facilities. The application process requires detailed submission of project proposals, including responses to specific application questions that assess the project's potential impact on air quality. Evaluation criteria will focus on the project's ability to achieve direct air pollutant reductions, the feasibility of implementation, and the overall benefit to the environment. The deadline for submitting applications for the Clean Air Program Grants is October 9, 2024. It is important for potential applicants to prepare their proposals well in advance of this date to ensure compliance with all requirements. Interested parties can find more information and resources on the Colorado Energy Office's website. For any inquiries regarding the grant, applicants can contact Libby Lee at the Colorado Energy Office via email at elizabeth.r.lee@state.co.us.