Please see attached:
Highlights include:
A primer on Renewable Diesel:
Renewable diesel, previously known as green diesel, is not a traditional petroleum fossil fuel; instead, it is processed from existing, non-petroleum resources to be chemically similar to petroleum diesel. Renewable diesel is a high-cetane motor fuel made from waste agricultural products such as canola oil, and inedible corn oil. Renewable diesel feed stocks are primarily from ethanol production plants, and recycled animal fats and cooking oils. Renewable diesel and Biodiesel are not the same fuel. Biodiesel feedstock oils are chemically treated using a process called transesterification, which introduces oxygen into the fuel. Biodiesel not blended with petroleum diesel has issues with cloud
point temperature, component separation, and algae growth during long-term storage. Renewable diesel is processed differently; feed stocks are treated with high-pressure hydrogen, in a process known as hydrogenation. Because it is hydrogenated, renewable diesel does not contain oxygen, and users may not encounter the challenges biodiesel presents relating to freezing temperature and storage. Renewable diesel is marketed to be used in engines that are designed to run on conventional diesel fuel, as a drop-in replacement fuel using existing infrastructure, and it must meet the ASTM D975 specification for petroleum diesel. Currently, renewable diesel has not made inroads into Colorado markets, as it is primarily sold in California. Sustainable Aviation Fuel / SAF blended up to 50% with traditional petroleum aviation fuel may likewise be seen in the future. Renewable diesel and SAF are currently more expensive than petroleum-based diesel fuels.
Environmental Response Surcharge
In January 2023, the Environmental Response Surcharge (ERS) was reduced from $100 to $75 per tanker delivered. Due to the Petroleum Storage Tanks cash balance, the rate has been reduced again to $50, which went into effect May 1, 2023. The revenue generated from the ERS is the primary source of reimbursement funds used when OPS approves applications due to petroleum contamination and assessment of sites.
Reasonable Cost Guidelines Updated
The Reasonable Cost Guidelines (RCGs) were updated and approved during the June 16, 2023 Petroleum Storage Tank Committee Meeting. The new rates are effective July 1, 2023, and should be used for work performed on and after July 1, 2023, in Reimbursement Applications (PREQs).