In a bill put forth during the 2022 regular session, the Colorado General Assembly has introduced a bill (SB22-138 ) that prohibits the sale of 50HP (horsepower) or smaller gas engines by 2030. Colorado intends to reduce greenhouse gas emissions in the state significantly. To ban small gas engines across the state, Colorado effectively artificially fast-tracks the use of solar, wind, and battery technology across a multitude of sectors.
Of note, Section 3 of the bill updates the statewide greenhouse gas (GHG) emission reduction goals. It adds a 40% reduction goal for 2028 compared to 2005 GHG pollution levels. It also adds a 75% reduction goal for 2040 compared to 2005 GHG pollution levels.
Phasing Out the Use of Small Gas Engines
The SB22-138 bill then phases out the use of small off-road engines. It does this by prohibiting their sale in areas of the state that don’t meet the desired air quality standards. The rules take effect on or after January 1, 2030. Colorado defines a “small off-road engine” as any gasoline-powered engine of 50 horsepower or less used to fuel small off-road equipment like lawn mowers and leaf blowers. Banning leaf blowers is nothing new. However, Colorado’s law takes it further by including a much wider category of gas engines.
Providing Financial Incentives
The change obviously requires financial adjustments. The Colorado bill provides incentives to promote the replacement of small off-road engines with electric-powered, small off-road equipment before 2030. The bill establishes a state income tax credit in an amount equal to 30% of the purchase price. It applies to new, electric-powered, small off-road equipment for purchases made in income tax years 2023 through 2029.
As Colorado prohibits the sale of 50HP gas engines, we expect more and more municipalities to take notice and consider their own plans. This bill isn’t yet law, but from what we’ve seen, we expect it to pass and drive out small gas engines even more quickly.
