Section 24-38.5-114 - Ozone season transit grant program - fund - creation - policies - report - definitions - repeal(1) As used in this section, unless the context otherwise requires: (a) "Eligible transit agency" means a transit agency that is: (I) A regional service authority providing surface transportation pursuant to part 1 of article 7 of title 32, a regional transportation authority created pursuant to part 6 of article 4 of title 43, or any other political subdivision of the state, public entity, or nonprofit corporation providing mass transportation services to the general public other than the regional transportation district; and(II) Eligible to receive money under a grant authorized by 49 U.S.C. sec. 5307 or 49 U.S.C. sec. 5311.(b) "Fund" means the ozone season transit grant program fund established in subsection (8) of this section.(c) "Office" means the Colorado energy office created in section 24-38.5-101.(d) "Ozone season" means the period from June 1 to August 31 of a calendar year; except that, if an eligible transit agency operates in an area in which ozone-causing traffic levels are typically highest during a different period than June 1 to August 31 of a calendar year and the eligible transit agency identifies the different period in an application for a grant to offer fare-free service during the identified period that is submitted to a transit association in accordance with the requirements of this section, "ozone season" means, for that eligible transit agency, the different period identified in the grant application.(e) "Program" means the ozone season transit grant program created in subsection (2) of this section.(f) "Regional transportation district" means the regional transportation district established in article 9 of title 32.(f.5) "Transit agency" means a provider of public transportation, as defined in 49 U.S.C. sec. 5302 (15), as amended.(g) "Transit association" means a Colorado nonprofit corporation formed to represent transit interests in Colorado whose membership includes transit agencies, transit-related businesses, and governmental entities.(2) The ozone season transit grant program is created in the office. The purposes of the program are: (a) To provide grants to transit associations for the purpose of providing grants to eligible transit agencies in order to offer free transit services for a minimum of thirty days during ozone season; and(b) To provide grants to the regional transportation district for the purpose of providing free transportation services for a minimum of thirty days during ozone season.(3) The office shall administer the program and award grants in accordance with this section and the policies developed by the office pursuant to subsection (6) of this section. Subject to available appropriations, grants shall be paid out of the fund.(4)(a) To receive a grant, a transit association or the regional transportation district must submit an application to the office in accordance with the requirements of this section and the policies established by the office in accordance with subsection (6) of this section. The office may award grants of up to three million dollars each year to a transit association and up to eleven million dollars each year to the regional transportation district; except that:(I) If the office awards a grant for a year to a transit association in an amount less than three million dollars, then the maximum amount of the grant that the office may award to the transit association for the next year is three million dollars plus an amount equal to the difference between three million dollars and the amount of the grant awarded to the transit association for the prior year; and(II) If the office awards a grant for a year to the regional transportation district in an amount less than eleven million dollars, then the maximum amount of the grant that the office may award to the regional transportation district for the next year is eleven million dollars plus an amount equal to the difference between eleven million dollars and the amount of the grant awarded to the regional transportation district for the prior year.(b) A transit association, the regional transportation district, or an eligible transit agency that receives a grant from a transit association is not required to expend a grant in the year in which it is received and retains the grant amount until it is expended. The retention of all or a portion of a grant received during one year by a transit association or the regional transportation district for use in a subsequent year does not reduce the maximum amount that the transit association or regional transportation district is eligible to receive as a new grant during the subsequent year as set forth in this subsection (4).(5) A grant recipient may use the grant money as follows:(a)(I) A transit association that receives a grant may use the money to establish a grant program for eligible transit agencies in accordance with this section. A transit association may use a portion of the grant money to pay its direct and indirect costs in administering the grant program including reasonable costs to market the program to eligible transit agencies.(II) To receive a grant from the transit association, an eligible transit agency must submit an application to the transit association. At a minimum, the application must describe the free transit services that will be newly provided, expanded to include additional free types of service, expanded to include additional free routes, or provided more frequently with the grant money, indicate to what extent the eligible transit agency will match the grant money with other money, and commit to providing the new or expanded free services for at least thirty days during the ozone season.(III) An eligible transit agency that receives a grant through the transit association may use the money to cover the costs associated with providing new or expanded free transit services within its service area during ozone season, including offering additional free services or free routes or increasing the frequency of service on routes for which the eligible transit agency currently offers free service. Grant money may be used to replace fare box revenue and to pay for other expenses necessary to implement and measure the effectiveness of the program, including reasonable marketing expenses incurred to raise awareness of free service and increase ridership, expenses incurred in conducting rider surveys to better measure the impact of the program on ridership and vehicle miles traveled in private motor vehicles, and expenses associated with an increase in ridership as a result of the program.(IV) An eligible transit agency shall not use grant money to offset or replace funding for free transit services that the eligible transit agency offers as of January 1 of the funding year; except that an eligible transit agency may use grant money that was not expended in the year in which it was received or grant money from a grant awarded for a subsequent year to continue funding for any such free transit services that were previously funded with grant money.(V) In awarding grants under this subsection (5)(a), the transit association shall:(A) Allocate money among applicants with the goals of reducing ozone formation, increasing ridership on transit, and reducing vehicle miles traveled in the state; and(B) Consider the extent to which the applicant will match grant money with other money.(VI) Each eligible transit agency that receives a grant shall report on the use of the money to the transit association in accordance with policies established by the transit association and the office. The report must include, at a minimum, information on how the grant money was spent; the free services that were offered using the grant money; and estimates of the change in ridership during the period that free services were offered compared to previous months, the same month in previous years, and the months after the program concluded. The report may include additional information, including a narrative analysis, to provide context on the ridership data included in the report. On or before December 1 of each year of the grant program, the transit association shall submit a report to the office compiling and summarizing the reported information for all eligible transit agencies that received a grant through the transit association.(VII) A transit association receiving a grant shall develop and publicize policies for the grant, including the process and deadlines for an eligible transit agency to apply for and receive a grant, the information, including notice that the eligible transit agency must identify any period other than June 1 to August 31 of a calendar year for its ozone season in the application, and documentation required for the application, reporting requirements and deadlines, and any additional requirements necessary to administer the grant.(b)(I) The regional transportation district may use grant money to cover the costs of providing at least thirty days of free transit on all services offered by the regional transportation district. Grant money may be used to replace fare box revenue and to pay for other expenses necessary to implement the program, including reasonable marketing expenses incurred to raise awareness of free service and increase ridership and expenses associated with an increase in ridership as a result of the program.(II) On or before December 1 of each year for which the regional transportation district receives a grant, the regional transportation district shall submit a report to the office on the implementation of the program in accordance with the policies established by the office. At a minimum, the report must include information on how the grant money was spent; the free services that were offered using the grant money; and estimates of the change in ridership during the period that free services were offered compared to previous months, the same month in previous years, and the months after the program concluded. The report may include additional information, including a narrative analysis, to provide context on the ridership data included in the report.(III) The state auditor shall audit the regional transportation district's use of the grant money as part of its next performance audit of the regional transportation district conducted pursuant to section 32-9-115 (3).(6) The office shall establish and publicize policies for the program. At a minimum, the policies must address the process and any deadlines for applying for and receiving a grant under the program, the information and documentation required for the application, reporting requirements and deadlines, and any additional policies necessary to administer the program.(7) The office may seek, accept, and expend gifts, grants, or donations from private or public sources for the purposes of this section. The office shall transmit all money received through gifts, grants, or donations to the state treasurer, who shall credit the money to the fund.(8)(a) The ozone season transit grant program fund is hereby created in the state treasury. The fund consists of money transferred to the fund in accordance with subsection (8)(d) of this section, any other money that the general assembly appropriates or transfers to the fund, and any gifts, grants, or donations credited to the fund pursuant to subsection (7) of this section.(b) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.(c) Money in the fund is continuously appropriated to the office for the purposes specified in this section.(d) Three days after May 26, 2022, the state treasurer shall transfer twenty-eight million dollars from the general fund to the fund.(9) On or before December 31 of each year of the program, the office shall submit a report on the implementation of the program to the house of representatives transportation and local government committee and the senate transportation and energy committee, or their successor committees. The report must summarize and compile the information submitted to the office pursuant to subsections (5)(a)(VI) and (5)(b)(II) of this section.(10) This section is repealed, effective July 1, 2024.Amended by 2023 Ch. 132,§ 2, eff. 4/28/2023.Added by 2022 Ch. 236, § 2, eff. 5/26/2022.