Colorado: Energy Office Announces Launch of Funding Opportunity to Support Local Policy Adoption to Advance Climate Goals

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Statewide ~ On Thursday, June 12, 2025, Governor Polis and the Colorado Energy Office (CEO) made an exciting announcement regarding the launch of a new grant program. The Local Implementation, Mitigation, and Policy Action (IMPACT) Accelerator grant program aims to support local policy adoption that will enhance resilience, reduce emissions, and advance other state priorities such as cleaner air, lower energy costs, and more affordable housing.

This opportunity is made possible by a $129 million federal Climate Pollution Reduction Implementation Grant (CPRG) that Colorado received last summer. Of this amount, $50 million will be available for the IMPACT Accelerator program.

Governor Polis expressed his enthusiasm for this initiative, stating that Colorado is committed to investing in bold climate initiatives that will benefit local communities. He believes that by reducing emissions and lowering energy costs, the state can achieve its climate goals while also saving people money.

CEO Executive Director Will Toor also emphasized the importance of local actions in achieving net-zero emissions in Colorado by 2050. He noted that local and Tribal governments are uniquely positioned to implement policies that can significantly reduce emissions in key economic sectors. However, they often lack the capacity to do so. The IMPACT Accelerator grant program aims to provide the necessary support for these communities to pursue impactful policies.

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This program aligns with the state's second comprehensive Greenhouse Gas (GHG) Pollution Reduction Roadmap ("Roadmap 2.0"), which was released by CEO in February 2024. It fulfills a Near Term Action outlined in the roadmap - the creation of a "local Climate Action Accelerator."

The IMPACT Accelerator program is designed to promote policies that go beyond state requirements in four categories: buildings, land use, transportation, and waste. Examples of eligible policies include adopting building energy codes that exceed Colorado's Model codes, establishing energy performance standards, promoting housing and clean energy development, and encouraging multimodal transportation infrastructure.

Local governments, including cities, counties, and cohorts led by cities/counties, as well as Tribal governments, are eligible to apply for funding. They can apply for either policy adoption-only or policy adoption and project implementation. However, funding will not cover project implementation alone.

CEO plans to award approximately $2 million per award for the development of new policies and implementation of related projects. However, the actual amount may vary depending on the project. A 5% local match is required for all applicants. However, in an effort to ensure equitable access to this funding, low-income communities and Tribal governments may qualify for a 0% match. CEO will also prioritize projects that primarily benefit low-income populations.

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The first round of applications for the Local IMPACT Accelerator grant program will open on June 16 and close on August 1, 2025. Interested parties must first submit a Letter of Intent to CEO and will receive feedback on their proposal before submitting a full application in the fall. To provide more information about the grant and application process, CEO will host an informational webinar on June 17 at 11:00 AM MT and a Question & Answer webinar on July 1 at 10:00 AM MT.

CEO plans to open a second funding round for this program later in the year. More information about the program, including timelines for each funding round and the complete program guidance, can be found on the Local IMPACT Accelerator webpage.

In addition to CEO's grant program, the Denver Regional Council of Governments (DRCOG) also received a CPRG implementation grant. Jurisdictions within DRCOG territory are eligible to apply for both DRCOG and CEO funding. Details about how to apply to both programs can be found in the program guidance on the Accelerator webpage.

This new grant program is an exciting opportunity for local communities in Colorado to take action towards reducing emissions and promoting clean energy. With the support of the state government, these policies can have a lasting impact on both a local and statewide level.

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