CO SB038

Requires all diesel fuel sold in Colorado nonattainment areas from June 1 through September 15 to contain at least 5% biodiesel (B5) beginning June 1, 2021, and at least 10% biodiesel (B10) beginning June 1, 2023.

Directs the Director of the Division of Oil and Public Safety to establish a waiver process allowing distributors, retailers, refiners, and terminal operators to seek temporary relief for good cause such as supply disruptions or extreme weather.

Requires labeling of biodiesel-blended fuel bills of lading to reflect the biodiesel percentage for blends at or above 5%, and permits additional rules for fuel dispenser labeling and supply requirements.

Exempts diesel fuel used in locomotives and off-road mining equipment from the blending requirements.

Encourages state agencies to research grant programs and incentives for biodiesel production and directs the Department to assess biodiesel supply availability before June 1, 2023.