9/20/2017 FROM TRASH TO GAS EQUALS CASH

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1 FROM TRASH TO GAS EQUALS CASH ALTERNATIVE FUELS AS A SOURCE OF STATE REVENUES Kerryn de Verteuil &Tim Nehring APC Committee 1 2 From Trash to Gas Equals Cash Goals of Presentation Fossil Fuels A Diminishing Resource Need for Alternative Fuel Options Bio-Gas: Converting Trash to Gas Bio-Gas: Benefits as a future fuel resource Bio-Gas: Source of revenue for state governments Future Implications 3 1

2 Fossil Fuels It s only a matter of time 4 Fossil Fuels: Negative Impacts Greenhouse effect Poor air-quality Adverse health effects 5 Fossil Fuels It s only a matter of time Oil is already on a downward slope. Sixteen of the world s twenty largest oil fields have already reached their peak level of production Renewables or Alternatives offer us another way to avoid this fossil fuel time bomb. As the Saudi Oil Minister said in the 1970s, The Stone Age didn t end for lack of stone, and the oil age will end long before the world runs out of oil. 6 2

3 Alternative Fuels Alternative fuels, known as non-conventional and advanced fuels, are any materials or substances that can be used as fuels, other than conventional fuels like fossil fuels (petroleum/oil, coal, and natural gas) Nuclear materials such as uranium and thorium Artificial radioisotope fuels that are made in nuclear reactors. 7 Overview Video 8 Alternative Biofuels Some well known alternative biofuels include: Bio-diesel Bio-alcohol (Methanol, Ethanol, Refuse-Derived Fuel) Chemically stored electricity (Batteries and Fuel Cells) Hydrogen Non-fossil methane Non-fossil natural gas Vegetable oil Propane and other biomass fuels 9 3

4 10 Solid Waste and Landfill Facts The U.S. is the #1 trash-producing country in the world at 1,609 pounds per person per year. 5% of the world's population generate 40% of the world's waste. On average, it costs $30 per ton to recycle trash $50 to send it to the landfill $65 to $75 to incinerate it 11 Solid Waste and Landfill Facts The US population discards each year 16 trillion diapers, 2 trillion razor blades 1.6 trillion pens 220 million car tires Enough aluminum to rebuild the US commercial air fleet four times over One third of average dump is packaging material Out of every $10 spent buying things, $1 (10%) goes for packaging that is thrown away. Packaging represents about 65% of household trash. Each American throws out 1,200 pounds organic garbage annually. 12 4

5 13 How landfills produce biogas Landfill gases are the result of three processes: 1. Evaporation of volatile organic compounds (solvents) 2. Chemical reactions between waste components 3. Microbial action, especially methanogenesis 14 Landfill Gas: Composition 15 5

6 Potential Landfills for Bio-Gas According to the EPA, the best candidates for landfill gas recovery that can support a gas-to-energy project should have the following: At least one million tons of waste in place Continue receiving waste in the future or should be recently A minimum landfill depth of 40 feet Gas generation rate of one million cubic feet per day EPA Inventory contained information on 2,456 landfills nationwide with 96 being in Texas Of 96 in Texas, 17 landfills have potential to mass produce landfill gas to fuel trucks 16 Other Processes for Trash to Gas Example of Alternative Process Green Power, Inc. Low Cost Process Converts Waste into Diesel Fuel Video illustrates this alternative process

7 Other Processes: Food Waste to Gas FIBERIGHT Converts solid waste and organic feedstocks into cellulosic ethanol HARVEST POWER Converts food scraps to yard trimmings into biogas through anaerobic digestion of organic waste used for electricity, heat, and fuel for vehicles. SIERRA ENERGY Uses a gasification process in blast furnace to transform organic waste into carbon monoxide, carbon dioxide and hydrogen. PLASTIC2OIL Converts plastic waste into ultra-clean, ultra-low Sulphur fuel. URBANX RENEWABLES GROUP Manufactures clean-burning biofuel from used fryer oil from restaurants and commercial kitchens Scientific research and advances in technology discover more ways and new methods. U.S. Energy Information Administration forecasts biodiesel production will average 102,000 barrels per day in Comparative Costs of Alternative Fuels 20 Comparative Costs of Alternative Fuels 21 7

8 Comparative Costs of Alternative Fuels 22 Benefits of Ethanol 23 Comparative Costs of Alternative Fuels 24 8

9 Comparative Costs of Alternative Fuels 25 Benefits of Biodiesel 26 Comparative Costs of Alternative Fuels 27 9

10 Comparative Costs of Alternative Fuels 28 Comparative Costs of Alternative Fuels 29 Comparative Costs of Alternative Fuels 30 10

11 Alternative Fuels: Impact on States States facing worsening transportation funding crisis States rely on federal and state gas taxes for transportation funding States are concerned about long term sustainability of the fuel tax Growing use of alternative fuels produce gaps in existing state revenues States seek other funding and financing options to improve transportation systems: States pursue special taxes on alternative fuels with revenues dedicated to transportation Some states have enacted tax incentives or credits to encourage use of alternative fuels. 31 Alternative Fuels: Impact on States States facing worsening transportation funding crisis Decreased federal and state funding Increased infrastructure costs Decreased tax revenues due to: Some alternative fuels not taxed More efficient vehicles/decreased usage Tax laws outdated 32 Alternative Fuels: Impact on States States rely on federal and state gas taxes for transportation funding 33 11

12 Alternative Fuels: Impact on States States are concerned about long term sustainability of the fuel tax Current taxes and fees do not cover many transportation costs Fuel taxes have not increased with inflation (see graph) Vehicle efficiency has resulted in declining revenue per vehicle-mile. Fuel taxes would need to almost double to cover all roadway costs 34 Current Tax Rates on Gasoline/Diesel Federal & State Tax Rates are based on Cents Per Gallon 35 Alternative Fuels: Impact on States Growing use of alternative fuels produce gaps in existing state revenues No tax structure in place for alternative fuels in some states Complicated due to how alternative fuels are bought, transported and distributed from one state to another. Electric charge at home vehicles avoid fuel taxes Determining appropriate collection methods and taxing standards 36 12

13 Alternative Fuels: Impact on States States seek other funding and financing options to maintain and improve transportation systems: States pursue special taxes on alternative fuels with revenues dedicated to transportation Some states have enacted tax incentives or credits to encourage use of alternative fuels. 37 Alternative Fuels and Taxes Under IFTA, you must generally report information on all fuels used to power your qualified motor vehicles. However, reporting requirements for fuel used in each jurisdiction are based on that specific jurisdiction s laws and may vary. There are many factors to consider in determining how taxes might be assessed 38 Alternative Fuels and Taxes In some jurisdictions, IFTA does not have certain alternative fuels as a taxable fuel type. Does it need to be? How will taxes be properly collected and distributed unless these alternative fuels are under IFTA? How will it be rated for uniformity? Do you think all taxes will be properly paid for the road fuel? 39 13

14 Questions? If you prefer to text your question, text it to: (703) Kerryn de Verteuil Tim Nehring APC Committee Contacts 14

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