Senate Committee on Agriculture, Natural Resources & Energy (02/23/2006)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON AGRICULTURE, NATURAL RESOURCES & ENERGY

Date:	02/23/2006	ATTENDANCE

Time:	02:08 PM to 04:03 PM	Brophy	X
		Entz	X
Place:	SCR 353	Groff	X
		Taylor	X
This Meeting was called to order by		Tochtrop	X
	Senator Isgar	Grossman	X
		Isgar	X
This Report was prepared by
	Geoff Johnson
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB06-190		Referred to the Committee of the Whole

02:09 PM -- Senate Bill 06-190

Senator Shaffer, prime sponsor, said that the bill addresses the blending into gasoline of "drip gas," a condensate that occurs when natural gas liquifies during transportation. Some gasoline distributors have been out of compliance with state regulations addressing gasoline components. The blended gas can cause damage to vehicles and violate state pollution standards. He said that the bill includes penalties for violations of its provisions. He added that the Colorado Petroleum Marketers Association requested that he sponsor the bill.

02:13 PM -- Dick Piper, Department of Labor and Employment, Division of Oil and Safety, said that his organization did not request that the bill be introduced.

02:15 PM -- Roy Turner, Colorado Petroleum Marketers, commented on the businesses he represents. He commented on the blending of various components into gasoline by distributors. He said that the bill will protect consumers and that he supports the bill. He said that there must be some safeguards for consumers. He noted that drip gas has a high wax content which can be harmful to some vehicles. He said that there have been three instances of reporting of such inferior gas in the last few months.

02:29 PM -- Dick Piper said that the Division runs about 4,000 tests on fuel each year.

02:47 PM -- Stuart Zion, Department of Revenue, commented on fuel taxation in the state. He said that distributors of gasoline are currently licensed.

02:53 PM -- Vance Kopp, SunCor Energy, commented on the standard requirements for testing and blending in the industry, and compliance with state and federal regulations. He commented on "batch blending" and "on-line blending."

03:08 PM -- Terrence Tschatschula, Aspen Petroleum Products, said that his company is a gasoline blender. He described the process of blending and noted that Colorado has at least six natural gas processing plants. He said that there is already a requirement for licensure of distributors with the Department of Revenue. He said that he reads the bill as prohibiting his current process of blending in a truck. He noted that the bill would "put him out of business" and that the distribution of unbranded gasoline increases competition.

03:50 PM -- Eddie Haj, Westside Market Food and Fuel, opposed the bill. He said that he has worked with Aspen Petroleum for 14 years and that his customers are very happy.

03:53 PM -- Stan Dempsey, Colorado Petroleum Association, commented on the blending of fuel and made the distinction of blending certified and uncertified products. His organization has no position on the bill.

03:55 PM -- Roy Turner, commented on ethanol blending.


BILL:	SB06-190
TIME:	04:02:18 PM
MOVED:	Grossman
MOTION:	Moved that the bill be referred to the Committee of the Whole. The motion passed 4-3-0.
SECONDED:
		VOTE
	Brophy	No
	Entz	Yes
	Groff	No
	Taylor	Yes
	Tochtrop	No
	Grossman	Yes
	Isgar	Yes
Final YES: 4 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:03 PM

The committee adjourned.