S_AGR_2016A 01/12/2016 Committee Summary

09:07 AM -- Presentation from the Colorado Energy Office Pursuant to the SMART Act



Representative Tyler, chair, called the meeting to order. Jeff Ackerman, Director, Colorado Energy Office (CEO), came to the table to deliver the CEO's State Measurements for Accountable, Responsive, and Transparent (SMART) Government Act presentation to the committee. A folder of the CEO's SMART Act materials, including its FY 2015-16 performance plan, was distributed to the committee (Attachment A). Mr. Ackerman introduced other key members of the office. He said that the CEO is not seeking any additional funding or full-time staff for FY 2016-17. He described the mission of the CEO, and explained that the office is transforming how Colorado generates and consumes energy.



160112 Attach A (SMART Act Hearing JT WITH HOUSE TRANS).pdf







Mr. Ackerman explained the CEO's five strategic policy initiatives, which include increasing the sale of compressed natural gas (CNG) for alternative fuel vehicles and removing market barriers to alternative fuel adoption, increasing energy savings through direct energy efficiency projects, decreasing Colorado's average annual residential energy use by 5 percent, reducing the amount of household income expended by low-income households on energy, and increasing generation from emerging clean energy technologies by 100 percent from 2013 through 2018.



Mr. Ackerman said that the CEO also launched other initiatives in FY 15-16, including a financing mechanism for counties that opt into the Commercial Property Assessed Clean Energy (C-PACE) program for energy efficiency, renewable energy, and water conservation improvements. Mr. Ackerman responded to questions on the C-PACE program. He said that the CEO has also been working with the transportation sector for a number of years to try and address the value of the alternative fuel vehicle credit, and plans to support legislation in the coming session to address this.



Mr. Ackerman responded to questions on the CEO's weatherization assistance program, low-income energy assistance options for energy-burdened households in Colorado, and whether CEO is working with traditional energy industries in Colorado.



09:34 AM



Mr. Ackerman responded to questions on whether the CEO is working to assist the declining coal industry in the Delta County region, whether the CEO is engaged with Tri-State Energy's Montrose to Nucla power line, the development of carbon capture and sequestration technologies in Colorado, work done by the CEO in northwest Colorado to help make dairy farming and irrigation more energy efficient, the activities of the CEO in the recycled energy (combined heat and power) market, CEO's promotion of the U.S. Department of Energy's Home Energy Score ratings in the residential housing resale market, and how CEO promotes the use of the Home Energy Rating System Index (HERS) score in the new residential housing market.



09:59 AM -- Presentation from the Department of Personnel & Administration



Scott Madsen, Director of the Division of Central Services, Department of Personnel and Administration (DPA), came to the table to respond to questions on DPA's responsibility for purchasing CNG vehicles for the state fleet and the department's future plans for this program. A handout on the plan to increase CNG usage in the state vehicle fleet was distributed to the committee (Attachment B). Mr. Madsen discussed the legislative requirements for DPA in purchasing CNG vehicles, challenges faced by the department with this program, the lack of CNG fueling sites in Colorado, how DPA is trying to build demand for CNG, and the current status of the program.



160112 AttachB (SMART Act Hearing JT WITH HOUSE TRANS).pdf



Mr. Madsen said that there are currently 20 CNG fueling sites throughout Colorado and the department is trying to develop incentives for increased CNG usage throughout the state. He stated that there have been large CNG price fluctuations over the past few years, which have made it difficult for DPA to perform cost evaluations for the initiative and have also made CNG less competitive with regular gasoline vehicles. Mr. Madsen said that state department adoption of CNG is heading in the right direction, however, and that trends for this are encouraging, with a current overall utilization rate of 41 percent. He said that DPA is anticipating being able to purchase 60-70 new CNG vehicles in FY 2015-16. He said that the fleet also purchases hybrid vehicles when CNG vehicles do not serve the right application, and that hybrids have a payback period of just 6 months for their additional cost to the state over regular petroleum vehicles.











Mr. Madsen responded to questions on the number of CNG vehicles the DPA has purchased and intends on purchasing going forward, whether CNG vehicles that are not being utilized by departments are being reallocated to other departments, how projections for declining oil prices could affect the utilization of CNG vehicles in the state fleet, and what is causing reduced utilization of available CNG vehicles by departments.



10:34 AM



Mr. Madsen responded to questions on the state's use of alternative fuel vehicles (AFVs) other than CNG vehicles, why CNG vehicles are being prioritized over other AFVs, and the lifecycle costs of other types of AFV. Committee discussion of DPA's purchasing of CNGs, and the cost competitiveness of electric vehicles (EVs) and other AFVs against CNGs, ensued. Mr. Madsen responded to questions on the carbon footprint of CNG vehicles versus EVs, the cost of producing electricity for EVs versus natural gas for CNGs, and the overall lifecycle costs of EVs versus CNGs.



10:48 AM



Will Toor, representing the Southwest Energy Efficiency Project (SWEEP), testified before the committee. He discussed the most appropriate applications for CNGs versus EVs, the lifecycle impacts of different types of AFV, the opportunity for the use of EVs in the state's light duty fleet, and the adoption of AFVs by other states for their fleets.



10:55 AM



The committee was adjourned.