Colorado:
Comprehensive E.V. charging Reform
· We are proposing to remove the statutory authority for Regulated utilities to sell directly to consumers utilizing the rate base.
· We need to require that the PUC establish a rate structure that doesn’t penalize E.V. charging at the retail level through peak demand charges.
· We need to remove or clarify that the 120% self generation cap is non-applicable to a business if they install E.V. charging. (the idea being that a station should be able to install solar panels to help support battery storage or supplement E.V. charging without being regulated as a utility)
· Giving our weights and measures people statutory authority to convene a group to establish rules around pricing and method of sales including disclosure in the retail environment
EJMT Tunnel Access/Inclusion of I-70 Central Corridor into the Petroleum Products Transportation Network
The I 70 central corridor recently underwent a massive 5 year reconstruction. Hazardous Materials routing in Colorado requires a robust review process in order to facilitate changes to authorized routes. Working with our local partners we are looking to add this corridor back into the network which would save time under HOS regulations as well as reduce overall VMT and emissions from the industry.
CWPMA continues to chip away at barriers to allow access to the EJMT. Currently, Hazardous Materials loads are still required to go over the pass. It’s likely that the state will recommend that foam suppression be installed to enhance the existing system. The initial program will likely be limited in scope to certain classes of Hazardous Materials with a Colorado specific endorsement and likely will require further investment from the industry.
PMTA Focused Legislation
- Require the Attorney General to post a list of all FDA authorized flavored vaping products (Similar to what they do for MSA - cigarettes).
- Empower/Direct state and local law enforcement who conduct stings under CDPHE contract (Amendment 35 funding) to be able to enforce FDA/PMTA authorization.
- Enhance protections against illicit smuggling and online sales.
- Currently only PMTA approved products are published. Similar to Alabama, manufacturers that have applied for authorization but have not received it need to submit that to the Attorney General’s office and then notify the office when approval is obtained.
- Establishment of a Colorado Tip line where kids and parents could call to report smuggling and other illegal sales type activities (that could be managed by the state DOR).
- Enhance the civil penalty of adults outside the retail environment who contribute to the delinquency of a minor
- Similar to synthetic cannabinoids – any manufacturer who is selling products or component cartridges covered by PMTA into Colorado without federal PMTA approval faces penalties under the Consumer Protection Act.
Return Fees And Banning or Requirements for Disposable Vaping Products
Representative Alex Valdez wants to have retailers who sell disposable vaping products have a return option at stores. Apparently, there are issues with the products getting into landfills and igniting. Please see below for national press on the issue:
- WASHINGTON (AP) — With the growing popularity of disposable e-cigarettes, communities across the U.S. are confronting a new vaping problem: how to safely get rid of millions of small, battery-powered devices that are considered hazardous waste. But the recent shift toward e-cigarettes that can’t be refilled has created a new environmental dilemma. The devices, which contain nicotine, lithium and other metals, cannot be reused or recycled. Under Federal Environmental Law, they also aren’t supposed to go in the trash.
County Authority to Ban /Restrict Products
The Tobacco Free Kids group are running legislation that would further empower counties to restrict products without going through licensing.
Truck Scrappage Replacement Program (In partnership with CMCA)
We want to create a program focused on replacement of older high emitting diesel vehicles with cleaner vehicles, limited to 2014 and older. It takes the carbon metrics based on EPA emission cut points for engines as a starting metric. The bill would require the elimination of a higher emitting vehicles, which has trackable and quantifiable air quality benefit…then provides flexibility per the company on the fuel replacement what works best…but every replacement will have an air quality benefit.
CDPHE Penalty Mitigation
With the downgrade to severe nonattainment point sources under the 25tpy threshold are going to be subject to regulations and new emission controls, currently operators in our trade space are subject to the same penalties that power plants and other major point sources are subject to under statute. As CDPHE has greatly increased the regulatory threshold and compliance staff, penalties should be scaled based on environmental impact and risk. Currently energy marketers and retailers face $15k per day penalties for violations and $5k per day penalties for paperwork violations. We are exploring legislation that would apply across all trade channel to lower the maximum penalties for minor point sources under the 25tpy threshold.
Proposed Legislation Requiring Multiple Clerks at C-stores
Colorado recently had a young clerk stabbed to death at a rural location. The clerk was working for a national company and had completed all the training and safety courses. She hit the emergency button and the person who committed the crime was caught, however not in time to save the employee. The clerk's father has approached his local representative and has asked her to initiate legislation requiring all c-stores/gas stations to now have 2 people working at all times especially during the night shifts.
Credit Card Fees on Tax
The cost of every bottle of wine, gallon of fuel, car, or school supply that Colorado families incur increases by using a credit or debit card. When the retailer applies the required state mandated taxes, these costs are exacerbated and consumers pay more. Currently fees assessed by electronic networks are on both the principle of the product and the tax.
Colorado has limited the amount of recovery available by merchants limited to credit transactions and capped at 2% or the merchant discount fee. The legislation seeks by 2026 to have the taxable portion of the sales exempt from all interchange or until the federal government places a cap on interchange fees for credit transactions not to exceed 2.5%.
The system allows credit card companies to make more money on each transaction when the price of retail goods increases including when taxes are assessed. Even though the cost of processing a $1 transaction is virtually the same as that of a $100 transaction, the interchange fee is based on a percentage of the total sale. This problem is compounded when state mandated taxes are included. Essentially, credit card companies and processors make exponentially more money because the merchants collect tax for the state.
Wyoming:
Legislation (Interim Committee) for Diesel Excise Tax Increase (these proposal were defeated in the interim committees) - The Proposals were to reduce annual vehicle registration (state only portion) and increase the state excise tax on diesel by somewhere between 3 and 4 cents per gallon. An increase of 3-4 cents would still maintain Wyoming's competitiveness with excise tax/fuel fees in surrounding states. By reducing the vehicle registration fee the idea is the Wyoming citizens on average would not see an increase for diesel users. The most interesting dynamic is a stated goal to not increase the tax/fee burden specifically on Wyoming companies and citizens. Depending on what the budget analysis says, the amount of excise tax will determine the registration decrease In Wyoming. Excise tax is collected at the terminal level so the net effect of wholesale fuel distributors and retailers would be a static increase in price due to the tax.
1. In fiscal year (FY) 2025, increasing the diesel fuel tax would result in an estimated revenue increase of the following amounts:
- 1 cent: $3.3 million
- 5 cents: $16.7 million
- 10 cents: $33.4 million
- 15 cents: $50.2 million;
2. Based on known diesel vehicle registrations, decreasing state registration fees on diesel vehicles by $1.00 would result in an estimated revenue decrease of $77,000. Decreasing state registration fees by $10.00 would result in an estimated revenue decrease of $770,000.
Road Use Equivalency for E.V. Charging Stations.
Several years ago CWPMA helped ask for a $200 registration fee for E.V. to make sure that people who bought these cars were paying for roads. There is no federally assessed excise tax on E.V. so owners that no longer use liquid fuels have an obligation to pay for road upkeep at the state level. We are interested in capturing out of state users for E.V. so the proposal seeks to levy a cent Per/KWH charge (.03) and have the station owner remit the tax to WYDOT. Further, we are discussing reducing the fee for plug in hybrids where the car also uses liquid fuels...(the idea being that certain vehicles currently with decals do pay some traditional excise tax for gallons used.
There is also discussion about charging E.V. installations….in lieu of tax in a Level 3 charger versus a level 2 charger. And it was determined that most commercial vehicles and folks traveling though Wyoming would generally not opt for level 2 charging solutions, so it is likely in the next iteration of the proposal only level 3 charging stations would be assessed.
Two interesting points.
- Electricity is charged the state sales tax and commercial entities who buy electricity off of the grid would potentially be charging E.V. users again when the electricity is resold. Essentially taxing the electricity for E.V. charging twice for sales tax in addition to the new excise tax.
- Currently, fuel excise tax is collected at the Rack, unless it is imported by a licensed fuel distributor. As such, anyone at retail who installs level 3 charging would then have to start remitting the tax to WYDOT...depending on how many people install Level 3 charging and if companies are able to remit for multiple locations on one return, the proposal would significantly increase the population of licensed fuel distributors in the state (many of which would not be remitting any significant dollars to the state). This seems somewhat burdensome for both WYDOT and retailers where most of them don't remit any dollars to the state.
- In order to capture charging at home the decal fee would still be in place.
- For folks that use level 2 charging at hotels or restaurants for example...it might be salient to maintain the per site fee....in order to capture out of state folks and for equity purposes.