Southern Colorado Clean Cities Coalition (SC4)

September/October 2010 Newsletter

Featured Upcoming Event

Stakeholder & Electric Vehicle Follow Up Meeting

Date: Friday, November 5, 2010
Time: 1:30 – 3:30 pm
Location: Pikes Peak Area Council of Governments
14 S. Chestnut Street, Colorado Springs
Cross streets – Colorado Ave. & Chestnut St., just west of I-25

Details: We will take the information gained from the previous 2 electric vehicle
meetings/education sessions, along with your feedback, and “put some dots on the map”.
Discuss where we go from here & set forth a plan to move forward with EV infrastructure,
discuss where we would like to see public charging stations installed, learn about the latest
permits & grants, & more.

For more details or to RSVP, please contact Dianne Bertini at dianne@cleancitiescolorado.org.

In the News
Featured Story: Summer and Fall Outreach Events a Success!

The Southern Colorado Clean Cities Coalition (SC4) participated in several community events over
the summer and into fall providing public outreach and education. Several SC4 stakeholders
participated in “Eco Auto Alley” with us at this year’s Pikes Peak EcoFestival in August at Rock
Ledge Ranch Historic Site. Over 800 attendees visited our booth and were wowed by exhibitors like
Duke’s Garage who featured their beautiful 1957 Porsche Speedster electric vehicle, Perkins Motor
Company’s brand new E85 Jeep Grand Cherokee, Phil Long Ford’s hybrid Ford Escape, Yellow Cab
of CS’ taxiing-dynamo – a hybrid Prius, and an EV charging station designed by GoSmart
Technologies; a Colorado in-state venture! Together, we advanced the public’s knowledge of
alternative fuel vehicles and technologies.

Over the Labor Day weekend, SC4 hosted two booths at local events, one at the Commonwheel
Arts Festival in Manitou Springs where we contributed to the Sustainable Community Booth.
Information on biofuel refueling station locations in Colorado, where to buy flex fuel vehicles, and
where our region is headed with alternative fuels in the transportation sector were presented. “Stop
at the Click” when refueling vehicles is also something we impressed upon the public.

We were pleased to be a part of this year’s annual Colorado Balloon Classic in Colorado Springs,
with over 200,000 people were in attendance. Biofuels were promoted through a vehicle
demonstration of the 2011 E85 model Jeep Grand Cherokee, as well as the presentation of
information on biofuel refueling station locations. Yellow Cab’s hybrid Prius also drew attention and
visitors to our booth.
SC4 hosted an Odyssey Day event in Delta, CO on October 15. Local dealership, Hellman Motors,
provided E85, B20 and hybrid vehicles for demonstration along with GoSmart Technologies’ electric
vehicle charging station. Mike Ogburn, with Clean Energy Economy for the Region, presented great
ideas and strategies on how Colorado fleets are cutting their fuel bills.

Thanks to our stakeholders who helped make these events a success! Many thanks to the Board of
Directors as well as the volunteers who made these events possible and to all of you who attended!

EPA Grants E15 Waiver for Newer Vehicles

A new label for E15 is being proposed to help ensure consumers use the correct fuel

WASHINGTON – The U.S. Environmental Protection Agency (EPA) today waived a limitation on
selling fuel that is more than 10 percent ethanol for model year 2007 and newer cars and light
trucks. The waiver applies to fuel that contains up to 15 percent ethanol – known as E15 – and only
to model year 2007 and newer cars and light trucks. This represents the first of a number of actions
that are needed from federal, state and industry towards commercialization of E15 gasoline blends.
EPA Administrator Lisa P. Jackson made the decision after a review of the Department of Energy’s
(DOE’s) extensive testing and other available data on E15’s impact on engine durability and
emissions.

“Thorough testing has now shown that E15 does not harm emissions control equipment in newer
cars and light trucks,” said EPA Administrator Lisa P. Jackson. “Wherever sound science and the
law support steps to allow more home-grown fuels in America’s vehicles, this administration takes
those steps.”

A decision on the use of E15 in model year 2001 to 2006 vehicles will be made after EPA receives
the results of additional DOE testing, which is expected to be completed in November. However, no
waiver is being granted this year for E15 use in model year 2000 and older cars and light trucks – or
in any motorcycles, heavy-duty vehicles, or non-road engines – because currently there is not
testing data to support such a waiver. Since 1979, up to 10 percent ethanol or E10 has been used
for all conventional cars and light trucks, and non-road vehicles.

Additionally, several steps are being taken to help consumers easily identify the correct fuel for their
vehicles and equipment. First, EPA is proposing E15 pump labeling requirements, including a
requirement that the fuel industry specify the ethanol content of gasoline sold to retailers. There
would also be a quarterly survey of retail stations to help ensure their gas pumps are properly
labeled.

The Energy Independence and Security Act of 2007 mandated an increase in the overall volume of
renewable fuels into the marketplace reaching a 36 billion gallon total in 2022. Ethanol is considered
a renewable fuel because it is produced from plant products or wastes and not from fossil fuels.
Ethanol is blended with gasoline for use in most areas across the country.

The E15 petition was submitted to EPA by Growth Energy and 54 ethanol manufacturers in March
2009. In April 2009, EPA sought public comment on the petition and received about 78,000
comments.

The petition was submitted under a Clean Air Act provision that allows EPA to waive the act’s
prohibition against the sale of a significantly altered fuel if the petitioner shows that the new fuel will
not cause or contribute to the failure of the engine parts that ensure compliance with the act’s
emissions limits.

More information: http://www.epa.gov/otaq/regs/fuels/additive/e15/

 In the Works
Propane Vehicle Demo Loan Program – SC4 is working with Clean Cities member, ROUSH
CleanTech, to provide an opportunity for our stakeholders to demo a propane-fueled Ford truck or van.
The idea is to have stakeholders drive the vehicle for a few days to see if propane-powered vehicles are
right for your fleet. We are working out the details now and will keep you posted. Please let Dianne
know if this is something you would be interested in participating in.

Colorado Natural Gas Vehicle Coalition website is in the works! We will let you know when this
website goes live but it promises to be full of information and resources to keep Colorado fleets
connected to natural gas resources.

NuTek Green’s lubricants, solvents and rust-inhibitors are made of US grown soy beans, not petroleum,
and they would like for you to try them. Please take a look at their product line (attached) or online at
www.nutekformulations.com. Let us know which products you would be interested in learning more
about and we will have them at our next meeting.

Funding, Grants & other Opportunities

Xcel Energy Electric Vehicle Project Concept Overview (available to those in Xcel Energy territory)

 Objective: A broad Company supported effort to demonstrate electric drive technology, vehicle
charging and the economic and environmental benefits of electrified transportation with a focus
on the greater Denver area in Colorado. (Also willing to work with West Slope customers with
local Ford dealership)
 Overall: Xcel Energy has some funding available to offset a portion of the vehicle purchase price
and charging station infrastructure if an enthusiastic company partner is interested in the project.
 Timeline: Begin charging station installations in Q4 2010. Transit Connect Van’s arrive in Q2
2011 with payment for the vehicle due at that time. Commitment to participate in the project
needed by 6/1/2010. Yes, the commitment deadline has passed but it has been extended.
 Contact Dianne for more information – Dianne@CleanCitiesColorado.org.

Question of the Month: What federal tax incentives are available for alternative fuels and advanced
vehicles? What special provisions and additional information do I need to understand?

Answer: The Alternative Fuels & Advanced Vehicles Data Center (AFDC) Federal Incentives and Laws
Web site (http://www.afdc.energy.gov/afdc/laws/fed_summary) includes a list of federal tax credits and
exemptions related to alternative fuels and advanced vehicles. The short summaries on the Incentives
and Laws Web site provide an overview of the available incentives. Each summary description also
includes links to useful Web sites and/or points of contact for further information.

Incentives available through the U.S. Internal Revenue Service (IRS) can sometimes be difficult to
understand because of complex legal language. We have compiled information below to help you
understand some of the details associated with federal tax incentives. NOTE: The Technical Response
Service strongly recommends that, before you or one of your stakeholders make a tax related decision,
contact a certified tax professional or the IRS directly. The toll-free IRS tax assistance phone number is
800-829-1040.
The Basics

Federal tax incentives related to alternative fuels and advanced vehicles currently come in the form of a
credit or an exemption, defined as follows:

 Tax credit: A dollar-for-dollar reduction of taxes owed. Examples of tax credits include:
o Alternative Fuel Infrastructure Tax Credit:
http://www.afdc.energy.gov/afdc/laws/law/US/351
o Qualified Alternative Fuel Motor Vehicle (QAFMV) Tax Credit:
http://www.afdc.energy.gov/afdc/laws/law/US/348
 Tax exemption: A part of a business or non-business income on which no tax is imposed.
Examples of tax exemptions include:
o Alternative Fuel Tax Exemption: http://www.afdc.energy.gov/afdc/laws/law/US/397
o Idle Reduction Equipment Excise Tax Exemption:
http://www.afdc.energy.gov/afdc/laws/law/US/410

Depending on the incentive, the credit or exemption can be taken against excise or income tax liability
(amount owed), defined as follows:

 Income tax: Tax on income, both earned (e.g., salary, wages) and unearned (e.g., interest,
dividends). Examples of credits against income tax liability include:
o Light-Duty Hybrid Electric Vehicle (HEV) and Advanced Lean Burn Vehicle Tax Credit:
http://www.afdc.energy.gov/afdc/laws/law/US/349
o Fuel Cell Motor Vehicle Tax Credit: http://www.afdc.energy.gov/afdc/laws/law/US/350
 Excise tax: A tax on the sale or use of specific products or transactions. Examples of credits
against excise tax liability include:
o Volumetric Ethanol Excise Tax Credit: http://www.afdc.energy.gov/afdc/laws/law/US/399
o Hydrogen Fuel Excise Tax Credit: http://www.afdc.energy.gov/afdc/laws/law/US/8320

Navigating the IRS Web site

The IRS maintains a Web site dedicated to the various federal alternative motor vehicle credits (including
the QAFMV, Light-Duty HEV, Advanced Lean Burn Vehicle, and Fuel Cell Motor Vehicle Tax Credits),
which lists the vehicles that qualify for each specific incentive
(http://www.irs.gov/businesses/corporations/article/0,,id=202341,00.html). Additional information about
federal tax incentives can be found in IRS forms and related instruction documents. The AFDC
Incentives and Laws Web site includes references to the relevant IRS forms for each of the incentives
listed. You may search the IRS Forms and Instructions Web site
(http://www.irs.gov/app/picklist/list/formsInstructions.html) for the most current versions of these
documents. Since the IRS forms and instructions are revised each tax year, be sure that you are
referencing the correct version of the document.

General Business Credit and the Carryback/Carryforward Provisions

Certain tax credits are available to businesses independently or through the General Business Credit.
The IRS defines a business as a continuous and regular activity that has income or profit as its primary
purpose. The amount of the current year General Business Credit is equal to the sum of several
individual tax credits, including the QAFMV and Alternative Fuel Infrastructure credits (if applicable).

If a business cannot use all or part of the credit in a given tax year because of a lack of federal tax
liability, it may carry the unused credit back one tax year. If the business still has unused credit after
carrying it back a year, the business may carry the unused portion of credit forward for each of the 20 tax
years after the year the credit was earned. Any portion of the General Business Credit still unused after
the 20-year carryforward period or at the time when the business ceases to exist may be taken as a tax
deduction.

The General Business Credit applies to property used in a trade or business. Therefore, someone
claiming the credit on a qualified vehicle purchased for personal use is not eligible for the carryback and
carryforward provisions. Other limitations may apply. For more information on the General Business
Credit, reference IRS Form 3800 and the associated instructions.

Tax Credits for Tax-Exempt Entities

Entities without any federal tax liability (i.e., tax-exempt organizations, governmental agencies) may still
take advantage of certain tax credits.

For vehicle credits (including the QAFMV, Light-Duty HEV, Advanced Lean Burn Vehicle, and Fuel Cell
Motor Vehicle Tax Credits), a taxpaying seller of a qualified vehicle to a tax-exempt entity may claim the
tax credit and provide written notice of the amount of the credit to the tax-exempt entity. The tax-exempt
entity may then work with the seller to negotiate a discount in the sale price of the vehicle. Likewise, a
taxpayer that sells qualified alternative fueling infrastructure to a tax-exempt entity may claim the
Alternative Fuel Infrastructure Tax Credit and disclose the credit amount to the tax-exempt entity in
writing. The tax-exempt entity would then use the information to negotiate a reduction in the sale price of
the infrastructure.

An entity that sells a vehicle or infrastructure to a tax-exempt entity in order to take advantage of the tax
credit is eligible for the carryback and carryforward provisions, with the understanding that the property is
subject to depreciation.

Contacting the IRS

If you have additional questions about federal tax incentives related to alternative fuels and advanced
vehicles, please reference the IRS Web site (http://www.irs.gov/) or contact the IRS directly at one of the
following numbers:

 Vehicle and infrastructure income tax incentive questions?

o Office of Passthroughs & Special Industries: 202-622-3110
 Excise tax incentive questions?
o Excise Tax Branch: 202-622-3130
 General questions?
o 800-829-1040
 Local Events

Date Event Location Details

SC4 Pikes Peak Area We will take the information gained from the previous 2 electric
Stakeholder Council of vehicle meetings/education sessions, along with your feedback, and
Nov & Electric Governments, “put some dots on the map”. Discuss where we go from here & set
5 Vehicle 14 S. Chestnut, forth a plan to move forward with EV infrastructure, learn about the
Follow Up Colorado latest permits & grants, & more. Please RSVP to Dianne at
Meeting Springs, 80905 Dianne@CleanCitiesColorado.org
Colorado From 1:30 - 4:30 pm, the Fleet Seminar is an overall look at the
DoubleTree
Western process and benefits of converting fleet vehicles to run on natural
Hotel, 743
Nov Slope gas. Discussion will focus on economic and environmental
Horizon Drive,
16 Natural Gas advantages including costs, tax incentives, infrastructure and
Grand Junction,
Vehicle Fleet meeting emissions reduction legislation. If you plan to attend, please
CO
Seminar respond to Alexine Deahl at alexine.deahl@encana.com
Southern
"Advancing Sustainable Communities" Thursday – free and open to
Colorado Antlers Hilton
Nov the public. Friday – all day conference, registration required.
Sustainability Hotel, Downtown
18-19 http://ppsbn.org/index.php/features/2010-southern-colorado-
Conference Colorado Springs
sustainability-conference
& Expo

Other National Events

2011 Biodiesel Conference & Expo, February 6-9, Phoenix Convention Center, Phoenix, AZ,
www.biodieselconference.org/2011

Green Truck Summit, March 6-9, Indiana Convention Center, Indianapolis, IN,
www.ntea.com/worktruckshow/index.aspx?id=18868