Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON TRANSPORTATION & ENERGY

Date:02/11/2015
ATTENDANCE
Time:01:40 PM to 02:39 PM
Buck
X
Carver
X
Place:HCR 0112
Coram
X
Esgar
X
This Meeting was called to order by
Kraft-Tharp
X
Representative Tyler
Melton
X
Moreno
X
This Report was prepared by
Neville P.
X
Matt Kiszka
Nordberg
X
Sias
X
Winter
X
Mitsch Bush
X
Tyler
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB15-1132
HB15-1134		Amended, Referred to Finance
Referred to Appropriations

01:40 PM

Representative Max Tyler, Chair, called the committee to order. A quorum was present.

01:40 PM -- HB 15-1132

Representatives Coram and K. Becker, co-prime sponsors, came to the table to present on House Bill 15-1132. The bill creates an income tax credit for qualified improvements that increase the energy efficiency of residential property. The tax credit is based on the level of energy savings achieved. Taxpayers apply for the credit through the Colorado Energy Office (CEO). The CEO is to adjust the tax credit to account for other incentive programs and provide taxpayers with a certificate to claim the credit. Taxpayers can submit the certificate when they file their income tax return. The credit is not refundable but may be carried forward for up to five years and is available in tax years 2015 through 2019.

01:41 PM -- Peter Rusin, representing the CEO, came to the table to speak in support of the bill. He stated that HB 15-1132 is an agency bill, and explained the residential energy efficiency tax credit that it would create. Mr. Rusin responded to questions on the reductions to a tax credit that CEO can make if a recipient has already received rebates from a utility energy efficiency program.

01:46 PM -- Paul Davis, representing the Platte River Power Authority (PRPA) and the Colorado Association of Municipal Utilities, spoke in favor of the bill. He explained the energy services and energy efficiency programs provided by PRPA, and why it supports the bill.





01:48 PM -- Chris Votoupal, representing Colorado Cleanteach Industries Association, spoke in favor of the bill. Mr. Votoupal stated that the bill would benefit a utility customer's bottom line, create jobs in Colorado, and is good for the environment.

01:50 PM -- Howard Brooks, representing the Energy Resource Center (ERC), spoke in favor of the bill. He stated that ERC makes energy efficient modifications to residential homes. He stated that energy efficiency measures increase people's comfort in their home, saves customers money, improves the natural environment, and reduces waste energy. He responded to questions on whether low income homes can afford to implement energy efficiency improvements.

01:53 PM -- Jim Meyers, representing the Southwest Energy Efficiency Project (SWEEP), spoke in favor of the bill. He stated that SWEEP is a non-profit organization that supports the implementation of energy efficient technologies and measures across the state. Mr. Meyers explained that the bill would promote robust energy retrofits and would ensure that implemented measures were effective with pre- and post-retrofit home inspections. He also spoke to the numerous jobs that are created by the energy efficiency industry in Colorado. He responded to a question on the levels of tax credit that could be expected for residential homes of varying sizes.

01:59 PM -- Geoff Hier, representing the Colorado Rural Electric Association (CREA), spoke in favor of the bill. Mr. Hier said that CREA represents 22 rural electric cooperatives. Mr. Hier emphasized the importance and effectiveness of pre- and post-retrofit inspections of the home.


2:00 PM

Amendment L.001 (Attachment A) was distributed to the committee. Representative Coram explained that it clarifies language contained within the bill.

150211 AttachA.pdf150211 AttachA.pdf
BILL:HB15-1132
TIME: 02:00:15 PM
MOVED:Coram
MOTION:Adopt amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:Kraft-Tharp
VOTE
Buck
Carver
Coram
Esgar
Kraft-Tharp
Melton
Moreno
Neville P.
Nordberg
Sias
Winter
Mitsch Bush
Tyler
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection



02:01 PM

Amendment L.002 (Attachment B) was distributed to the committee. Representative K. Becker explained that it amends the bill to clarify that the Public Utilities Commission shall not penalize the demand-side management programs of public utilities for the energy savings achieved by individuals claiming the tax credit.
BILL:HB15-1132
TIME: 02:02:25 PM
MOVED:Coram
MOTION:Adopt amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:Kraft-Tharp
VOTE
Buck
Carver
Coram
Esgar
Kraft-Tharp
Melton
Moreno
Neville P.
Nordberg
Sias
Winter
Mitsch Bush
Tyler
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

150211 AttachB.pdf150211 AttachB.pdf


2:06 PM

Representatives Coram and K. Becker made their closing comments on the bill, noting that it would have a positive impact on rural communities in Colorado, that it creates an incentive for families and individuals to pursue energy efficiency, that it will assist people served by utilities that do not have robust energy efficiency programs, and that it will positively impact the oldest housing stock in the state. The committee discussed the merits of the bill.
BILL:HB15-1132
TIME: 02:07:47 PM
MOVED:Coram
MOTION:Refer House Bill 15-1132, as amended, to the Committee on Finance. The motion passed on a vote of 9-4.
SECONDED:Mitsch Bush
VOTE
Buck
No
Carver
Yes
Coram
Yes
Esgar
Yes
Kraft-Tharp
Yes
Melton
Yes
Moreno
Yes
Neville P.
No
Nordberg
No
Sias
No
Winter
Yes
Mitsch Bush
Yes
Tyler
Yes
FINAL YES: 9 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:08 PM -- HB 15-1134

Representative Coram, prime sponsor, explained House Bill 15-1134 to the committee. Under current law, heavy-duty diesel vehicles are exempt from emissions inspection and testing until their fourth model year. The bill extends the exemption to the sixth model year if the vehicle's gross weight is at least 26,000 pounds and the vehicle is a 2014 model year or newer. Upon transfer of ownership, the new vehicle owner is required to obtain an emissions inspection and test for the vehicle if the transfer occurs within one year from the expiration of an emissions certificate. An exception is made when the transfer is from lessor to lessee.

02:10 PM -- Doug Decker, representing the Colorado Department of Public Health and the Environment (CDPHE), spoke neutrally to the bill. He explained that at the national level, new diesel motor vehicle technologies are cleaner and more reliable than in the past. He said that he believed that any rulemaking made to extend emissions inspection exemption time periods should be performed by the Air Quality Control Commission (AQCC) within CDPHE, and that such rulemaking authority should be delegated to AQCC by the General Assembly. He responded to a committee question on the current statutory rulemaking authority given to the AQCC by the General Assembly.





02:13 PM -- Greg Fulton, representing the Colorado Motor Carriers Association (CMCA), spoke in favor of the bill. Mr. Fulton said that CMCA represents 650 companies and 60,000 employees in Colorado. Mr. Fulton stated that the bill is an important measure for CMCA, that it would streamline existing regulations, and that CMCA had participated with CDPHE in the drafting of the bill. He explained that CMCA has concerns with the idea of delegating authority to extend emissions exemptions to the AQCC. He responded to a question on recent changes made by the heavy duty vehicles industry to engine and emissions design in diesel vehicles. He distributed a chart illustrating improvements made to emissions standards in diesel engines over time (Attachment C) and a diesel engine schematic (Attachment D). He responded to additional questions on how much heavy duty diesel vehicles cost, if other states are performing similar extensions on emissions testing, and how many testing centers in Colorado can process heavy duty vehicles.

150211 AttachC.pdf150211 AttachC.pdf150211 AttachD.pdf150211 AttachD.pdf

02:25 PM -- Patrick Reser, representing Cummings Engine Company, spoke in favor of the bill. He referenced the schematic that had been distributed to the committee and stated that diesel engine technology had improved significantly in recent years, heavily reducing nitrous oxide (NOx) emissions and particulate matter emissions. He also referenced the chart that had been distributed, and responded to questions on replacements that can be made to diesel engines to improve efficiency and emissions, if Cummings ever replaces the engines of older trucks, and if new diesel engines have also reduced their carbon dioxide emissions.

02:31 PM -- Adam McCandless, representing McCandless Truck Center, spoke in favor of the bill. He stated that his company has six stores across the state, sells new and used trucks, and also services trucks. He said that existing emissions requirements had placed a burden on his customers. Mr. McCandless stated that the industry had also improved the efficiency of truck design as well as engine design, and that a great deal of improvement had been made since 2007. He responded to questions on the cost of an emissions test for a 26,000 pound vehicle and what a truck that weighs more than 26,000 pounds looks like.


02:37 PM

Representative Coram made his closing comments on the bill, and stated that it is a common sense bill that is an example of industry and regulatory bodies working together to improve how technologies perform and are regulated.
BILL:HB15-1134
TIME: 02:38:28 PM
MOVED:Buck
MOTION:Refer House Bill 15-1134 to the Committee on Appropriations. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:Neville P.
VOTE
Buck
Yes
Carver
Yes
Coram
Yes
Esgar
Yes
Kraft-Tharp
Excused
Melton
Yes
Moreno
Yes
Neville P.
Yes
Nordberg
Yes
Sias
Yes
Winter
Yes
Mitsch Bush
Yes
Tyler
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:39 PM

The committee was adjourned.