Date: 04/12/2006
Final
Alternative Fuels
HOUSE COMMITTEE ON -- SELECT -- STRATEGIC RENEWABLE ENERGY
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02:14 PM -- Alternative Fuels Manufacturing and Distribution
Stacey Simms, American Lung Association, provided an overview the American Lung Association's Clean Cities Program (Attachment B). She explained that alternative fuels, such as propane, natural gas, and hydrogen improve air quality, promote economic development, and enhance energy security. The Denver Metro Coalition of Clean Cities is promoting the use of alternative fuels and alternative fuel vehicles by providing grants, distributing fleet buyer guides, and assisting with project management and implementation. Ms. Simms identified alternative fuel programs in Colorado including Denver International Airport's compressed natural gas fleet, one of the world's largest. Other alternative fuel fleets includes the State of Colorado, the Regional Transportation District, and the Town of Breckenridge's biodiesel bus fleet. She identified barriers to increase use of alternative fuels in Colorado including too few retail distributors, lack of knowledge, a costly and inconsistent permitting process for retail stations, and insufficient funding for development and public education. Ms. Simms described challenge of obtaining permits from local fire districts for above ground storage tanks for alternative fuels and proposed a linear statewide regulation for such facilities.
02:28 PM
DuWayne Deperry, RecyclOil, explained that his business provides biodiesel feed stock for manufacturers of biodiesel to be used in modified diesel engines (Attachment C). This fuel is made from vegetable oil. It has a net energy yield ratio of approximately 3.2 units of energy produced for each unit of energy consumed in the manufacturing process. He explained that biodiesel has fewer environmental impacts than petro-diesel because it produces fewer pollutants and does not produce explosive vapors. Colorado is estimated to use nearly 800 million gallons per year of biodiesel and produces approximately 15 million gallons of the fuel per year. Mr. Deperry explained that his company collects used cooking oil from 400 restaurants and food service providers in Colorado. His facility then removes water, solids, and particulates from the used oil and converts it to a reactor-ready feed stock for biodiesel manufacturing customers. Mr. Deperry proposed policies to promote biofuels development including statewide use mandates, fleet mandates, and tax incentives for consumers of biofuels.
02:42 PM
John Cevette, Chief Executive Officer of Colorado Corn, described the benefits of ethanol and identified the challenges of competing with traditional petroleum fuels that receive larger tax incentives and other government subsidies.
02:47 PM
Patty Stulp, Ethanol Management Company, proposed sales tax exemptions for ethanol fuels and other public policies to encourage long-term investment in ethanol production. She explained that ethanol is competitive with gasoline when crude oil prices exceed $40 per barrel.