BIODIESEL FUELING AHEAD
SB098 passes final with bipartisan support in Senate
SB098 passes final with bipartisan support in Senate
DENVER – Friday, the Senate passed a bill on final reading sponsored by Senator Gail Schwartz (D-Snowmass) which assigns the same tax-exempt status for biodiesel as given to dyed special fuels in Colorado. The bill received unanimous bipartisan support during third reading in the Senate on Friday.
“This bill supports both the biofuel industry and our agricultural community today and into the future,” said Sen. Schwartz. “We hope to promote and expand the next generation of biofuel production in Colorado, including new energy crops such as algae. By supporting these industries, we are creating a positive model for the development of alternative energy sources while supporting Colorado businesses and our rural economy.”
Over the past several years, biofuels have been at a competitive disadvantage due to a Special Fuel excise tax. Senate Bill 98 will open up the market for biofuels by providing the same tax-exempt status for biodiesel as given to dyed special fuels in Colorado. The bill will create the opportunity for petroleum distributors to blend biofuel locally and sell biodiesel products for construction and agricultural use without having to tax consumers.
In working on this legislation, Sen. Schwartz partnered with the biodiesel community, the Colorado Petroleum Association, and the Governor’s Energy Office. This broad base for support and input will ensure that the bill meets the long-term needs of the biofuel industry and firms that are currently advancing biodiesel production in Colorado.
The bill was recently passed by the Senate and is on its way to the House.
Representative Ed Vigil (D-San Luis) is the House sponsor of the bill.
