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CT Governor Unveils Energy Plan: Includes 20% Alternative Fuels Standard by 2020

19 September 2006

Connecticut Governor M. Jodi Rell has unveiled an energy program for the state that, among other elements, establishes a 20% minimum alternative fuels component for all commercial transportation fuels sold in the state by 2020.

The plan also establishes a mandatory mix of 20% biofuels in all residential and commercial heating oil by 2020. Overall, the plan calls for 20% of all energy used and sold in the State of Connecticut to come from clean or renewable resources by 2020.

Other transportation-related elements in the plan, which covers all aspects of energy usage in the state, include:

  • Mandatory 10% biofuel mixtures for the state vehicle fleet by 2012.

  • Initiating a regional effort to allow the use of hybrid vehicles in lieu of E85 vehicles in meeting federal fleet requirements.

  • The extension of the current state sales tax exemption for hybrid vehicles that attain at least forty miles per gallon on the highway through June 30, 2010. The state’s current exemption is set to expire on October 1, 2008. The state will study the feasibility of extending the sales tax exemption to any vehicle—not just hybrids—that attain at least 40 mpg.

  • The exemption of such vehicles from local property taxes for a period of three years beginning with those new vehicles placed on a town’s grand list on or after October 1, 2006. Such consumers would pay no tax beginning with the tax due on July 1, 2007.

  • Providing a range of low interest loans and grants to state farmers to produce biofuel feedstock crops.

  • Creating an incentive program to promote the construction of biofuel production facilities.

  • Establishing a low-interest forgivable loan pool for service stations to reduce or eliminate the upfront costs of installing new alternative fuel pumps or converting gas or diesel pumps to dispense alternative fuels.

In a search for shorter-term relief from rising gas prices, the Governor is proposing capping the gross receipts tax on petroleum products when the wholesale price of a gallon of gas hits $1.75. The wholesale price has recently been as high as $2.23 per gallon.

The Governor also is proposing the elimination for two years of zone pricing in Connecticut—a practice under which the state is divided into two zones for pricing purposes, in an effort to compensate for travel and delivery distances.

Resources:

September 19, 2006 in Biodiesel, Ethanol, Fuel Efficiency, Hybrids, Policy | Permalink | Comments (3) | TrackBack (0)

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Comments

Good reading but then encountered the vote-buying anti-conservation proposal to cap "the gross receipts tax on petroleum products"

If the program is such a good idea, why not allocate these receipts accordingly?

Great news but why wait, the CT DOT fleet presently uses B20 Biodiesel, why not the rest of the state fleet? Make B20 USLF the only fuel sold in the state effective January 2007. Connecticut's home heating oil currently has 3000PPM Sulfur. A 10 year CT resident comitted to cleaner air.

California got a $2B boost in tax revenues for 2005. I calculated that this is just about the amount that the state got from the increase in sales tax revenue on gasoline caused by the recent price rises. With a cap on these taxes, California would have not received this revenue.

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