Solar “Mega-trap” Kills Birds at California Power Plant

May 5, 2014 by michael · Comments Off
Filed under: renewable energy, solar energy 

Solar power generating facilities in Southern California have been dubbed “mega-traps” for their ability to attract and kill multiple species in a variety of manners including solar flux injury, also known as “singeing,” according to a report from the National Fish and Wildlife Forensics Laboratory issued in April.

“At times birds flew into the solar flux and ignited,” the authors wrote.

The toll on Southern California wildlife from three solar power plants is just beginning to be revealed:

The Ivanpah solar thermal power plant in the Southern California desert supplies enough carbon-free electricity to power 140,000 homes. For birds, bats and butterflies, though, the futuristic project is the Death Star, incinerating anything that flies through a “solar flux” field that generates temperatures of 800 degree Fahrenheit when 300,000 mirrors focus the sun on a water-filled boilers that sit on top three 459-foot towers.

“It appears Ivanpah may act as a ‘mega-trap,’ attracting insects which in turn attract insect-eating birds, which are incapacitated by solar-flux injury, thus attracting predators and creating an entire food chain vulnerable to injury and death,” concluded scientists with the National Fish and Wildlife Forensics Laboratory in a report that investigated 233 bird deaths representing 71 species at three Southern California solar power plants.

“Ivanpah employees called such immolations ’streamers,’” said The Atlantic.

US Fish and Wildlife Service Office of Law Enforcement staff “observed an average of one streamer event every two minutes.”

singeing small

From the report:

When OLE staff visited Ivanpah, we observed many streamer events. It is claimed that these events represent the combustion of loose debris or insects. Although some of the events are likely that, there were instances where the amount of smoke produced by the ignition could only be explained by a large flammable biomass such as a bird. Indeed OLE observed birds entering the solar flux and igniting, consequently becoming a streamer.

When the Ivanpah solar plant was inaugurated in earlier this year, we noted about reports of birds being killed–the “singeing” of birds in the air due to the reflective panels heating the surrounding air to such high temperatures near the California plant’s towers.

At the time, we wrote:

All power sources involve tradeoffs, but to date, wind and solar have generally avoided discussing the topic, often quickly shifting to pointing out the costs of other energy sources in defending their own environmental impacts.

Those tradeoffs included the very distinct possibility of harm to migratory birds and other wildlife.

According to the April report bats–also attracted by the insects drawn to the solar arrays–have also been found near the facilities. These include species deemed “sensitive” in California by the Bureau of Land Management.

Regulatory agencies considered those costs for Ivanpah:

Ivanpah can be seen as a success story and a cautionary tale, highlighting the inevitable trade-offs between the need for cleaner power and the loss of fragile, open land. The California Energy Commission concluded that while the solar plant would impose “significant impacts on the environment … the benefits the project would provide override those impacts.”

Those full impacts won’t even be known for another couple years, as a two-year study is completed on Ivanpah’s effect on wildlife.

The report also notes that gathering specific data about the actual temperatures involved at Ivanpah have been difficult.

“Despite repeated requests, we have been unsuccessful in obtaining technical data relating to the temperature associated with solar flux at the Ivanpah facility,” the authors wrote.

The report authors quoted a Discovery TV channel program that pegged the possible top temperature at the top of the solar tower above 3,600 degrees Fahrenheit, enough to melt steel. In order to regulate the tower at a much lower temperature, Ivanpah’s operators must turn only a percentage of heliostats at the solar receiver.

They estimated that temperatures across the solar field ranged from 200 to 900 degrees Fahrenheit.

The solar facility at Ivanpah is a darling of the Obama administration and received $1.6 billion in loan guarantees.

“This project speaks for itself. Just look at the 170,000 shining heliostat mirrors and the three towers that would dwarf the Statue of Liberty,” said Ernest Moniz, Obam’s energy secretary, as reported by The Daily Caller.

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NREL Employee Threatens Reporter, Issues Internal Email About Threats To NREL

April 23, 2014 by michael · Comments Off
Filed under: Legal, National Renewable Energy Laboratory 

From Watchdog.org:

A secret government energy lab here went on heightened alert after one of its employees used Twitter to threaten mass murder against Watchdog reporters, according to internal memos and emails received under the Freedom of Information Act.

But the added security measures utilized by the National Renewable Energy Lab weren’t to isolate and chastise staffer Kerrilee Crosby, who used Twitter in late 2012 to advocate what she called “a murderous rampage.”

Instead, the lab was concerned because an unidentified individual sent Crosby an email labeled “Because you deserve to die” — the same words Crosby used in her threat against Watchdog.

It was the subsequent threat from an unidentified individual (the name was redacted in the Freedom of Information Act documents released) that prompted this reaction from NREL:

“Details are still being assembled and the likelihood of making contact remains low.

A person named (redacted) has made a veiled threat against NREL employee Kerry Crosby.

Should we come into contact with (redacted) we are to call 911 immediately… Keep in mind, we cannot be sure this is the right name. Be very suspicious of anyone unexpected looking for Kerry Crosby.

Jeffco is already engaged in this issue.”

According to Watchdog, while the Jefferson County Sheriff’s Department pooh-poohed the threat made by Crosby against the reporting outfit by refusing to take a police report, it appeared fully prepared to provide assistance to NREL–by opening a case and visiting the agency’s campus.

NREL’s security office issued these warnings to workers:

1. Be aware of an increase in anger at NREL and our mission
2. NREL Security will step up vehicle searches
3. Be prepared for an increase in press inquiries and amateur information seekers
4. Understand that this story may inspire others to be angry toward NREL, government spending, green energy, people who make threats, etc.

“The number of web-based news sources repeating the Watchdog story continues to grow,” the memo said.

Crosby drew in the Independence Institute’s Energy Policy Center director Amy Oliver Cooke into the original series of threatening tweets she made in late 2012 when she included a link to a photo of Cooke.

“I can’t remember where I left my gun, though. Found it! http://t.co/MuOpukem,” she tweeted. The original link has been removed.

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Colorado Green Schools

April 22, 2014 by jlongo · Comments Off
Filed under: renewable energy, solar energy, wind energy 

IP-1-2014 (January 2014)
Author: Todd Myers

PDF of full Issue Paper

Introduction:
According to the U.S. Green Building Council (USGBC), Chipeda Elementary in Colorado’s Mesa Valley School District 51 is not simply a green school; it is in fact a green model for other schools.

The USGBC promotes Chipeda as a “case study” of what green schools can achieve in a range of areas, including reduction of environmental impact and lower energy use.1 The case study notes the school is more energy efficient and uses less water than other, comparable schools. Utility data, however, tells a different story. A look at the numbers shows the school actually uses more energy than do its peers.

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Colorado’s cruel approach to energy policy

February 25, 2014 by Amy · Comments Off
Filed under: New Energy Economy, preferred energy, renewable energy, solar energy, wind energy 

By Amy Oliver Cooke

“Giving society cheap, abundant energy would be the equivalent of giving an idiot child a machine gun,” wrote environmental doomsday prophet Dr. Paul Ehrlich in 1975.

That’s a cruel statement directed at people who simply want electric lights so their children can read at night, a refrigerator to keep food from spoiling, or a heater to keep their homes warm during the winter.

Yet it seems to be the approach of Colorado’s environmental Left. Part of the problem is progressive leaders’ extremely narrow definition of “clean” energy that limits resource choices to more costly and unreliable wind and solar.

In 2004, Colorado voters approved Amendment 37, requiring Xcel Energy and other investor-owned utilities to use preferred sources such as wind and solar for 10 percent of the electricity sold to end users.

Since then the Colorado legislature has mandated increases in the renewable (or preferred) energy standard, from 10 to 20 to the current 30 percent by 2020. Only Maine (40 percent by 2017) and California (33 percent by 2020) have more aggressive mandates. They also have higher electric rates than Colorado.

Last year the state legislature passed SB 252, a 20 percent preferred energy standard on Colorado’s rural electric cooperatives. Now nearly the entire state must pay for a significant percentage of electricity produced predominantly from preferred “clean” sources wind and solar.

Since producing electricity from wind and solar is more expensive, Colorado’s electric rates have gone up along with the legislature’s mandates.

Not too long ago, our state enjoyed some of the cheapest electricity in the United States. In 2000, Colorado’s residential rates were 7.31 per kWh, equivalent to 9.89 cents in 2013 dollars. Instead, Coloradans now pay 11.91 cents per kWh for residential electricity, the highest rate in the Mountain West. California, Alaska, and Hawaii are the only Western states with higher residential rates.

Colorado’s electric rates are rising significantly faster than in most states. Last year rates across the U.S. increased on average 2.4 percent, compared to a 4.5 percent jump here.

These high rates couldn’t come at a worse time. Just this week the Denver Post reported that Colorado’s labor participation rate has fallen 6 percentage points since 2006, to its lowest level (67.3 percent) since 1976.

In addition, the number of Coloradans obtaining assistance from food stamps continues to mark all-time high numbers, Complete Colorado reports.

The second week of February saw a 42 percent increase in Coloradans asking government for help paying their heating bills, according to 9News.

The state legislature had an opportunity to modestly improve the situation. Rep. Lori Saine’s (R-Weld County) HB 1138 would have expanded the definition of “clean” energy to include hydroelectricity.

Under HB1138 many electric co-ops that serve Colorado’s rural communities could have met or at least come close to meeting SB 252’s increased mandate. Without the expanded definition, some co-ops will need to build additional capacity and expensive transmission lines, or purchase renewable energy credits from other providers. Some of Colorado’s poorest counties will bear the costs.

Despite HB1138’s bipartisan sponsorship, lobbying from the wind and solar industries and their advocates in the environmental non-profit world doomed the bill in committee.

Progressive state lawmakers’ definition of clean energy is also unique. Many states, including those in the eco-friendly Pacific Northwest, the Center for American Progress, the Environmental Protection Agency, and our own Colorado Energy Office all consider hydro to be a clean, renewable source.

Our state’s extremely narrow definition of clean energy begs the question of whether progressive lawmakers simply seek to protect the wind and solar industry at the expense of ratepayers.

A 2012 Independence Institute study showed Xcel Energy ratepayers spent $343 million to comply with the preferred energy mandate, much of which ended up as surplus because supply exceeded demand. That’s $245 per ratepayer, nearly two months of average Colorado electricity bills, for electricity they didn’t use.

Affordable power is not mutually exclusive of clean power. Colorado should expand the definition of clean resources to include clean coal, natural gas, hydroelectric, and nuclear. We also should encourage a least cost principle and let consumers decide.

Anything else is just cruel.

This opinion editorial appeared originally in the Greeley Tribune on February 20, 2014.

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Coloradans can’t rely on subsidy-dependent wind energy

February 17, 2014 by michael · Comments Off
Filed under: renewable energy, wind energy 

This op-ed first appeared in the Greeley Tribune

Coloradans can’t rely on subsidy-dependent wind energy


By Michael Sandoval

When Coloradans flip on their lights or crank up their heat, they expect their electricity to be affordable, and at the very least, reliable. But the state Legislature and Gov. John Hickenlooper are forcing the opposite on Colorado — expensive and unreliable wind energy.

The wind lobby today is one of the fattest hogs at the corporate welfare trough. Rather than win customers through good prices and reliable products, the wind lobby uses political clout to force consumers to purchase its overpriced services. Currently, a state law requires that 12 percent of the state’s electricity be generated by so-called “green” energy. That mandate increases to 20 percent next year, and will jump to 30 percent by 2020 for investor-owned utilities. Senate Bill 252, signed by the governor last year, imposes a 20 percent mandate on rural cooperative electric associations. These jumps will only increase the cost of electricity.

icon_op_edThe wind industry is “green” in the sense that it lines its pockets with taxpayer subsidies. The federal $12 billion wind production tax credit was increased to 2.3 cents per kilowatt-hour in 2013. Although Congress decided not to renew this particular form of corporate welfare, the Obama administration has decided to keep the welfare money flowing anyway. The Internal Revenue Service issued guidance that allowed projects under construction and generating electricity by Jan. 1, 2016, to also claim the tax credit, which lasts for 10 years.

How dependent is the wind industry on government subsidies? American Wind Energy Association CEO Tom Kiernan pointed to the steep declines in wind capacity installations when the production tax credit is allowed to lapse, as it was briefly at the end of 2012. Last year, total available wind energy output decreased 92 percent.

In other words, almost all the wind power construction today exists only because of taxpayer subsidies. Because the wind lobby has become addicted to corporate welfare, the wind welfare companies have failed to make the technological advances, which make wind power competitive in a free market. It’s easier to lobby Washington to get money extracted from the taxpayers, and to lobby Denver to force consumers to buy your product.

Besides being expensive, wind power is unreliable, as demonstrated by a near-record demand in Texas for home heating in early January, which put a strain on that state’s power grid. The Electric Reliability Council of Texas noted that planned maintenance and unexpected weather-related outages of power plants elsewhere nearly brought on rotating outages.

Proponents declared triumphantly that wind had saved the Texas grid. But in reality, wind had failed.

Put simply, wind energy was unable to fill the gap created by a sudden increase in demand from the cold and the drop in capacity due to the scheduled and unscheduled outages that occurred the morning of Jan. 6. Just as the state experienced a spike in overall energy demand, wind power began to plummet, according to analysis of the council’s data by the Independence Institute.

That morning, wind output fell below 20 percent of maximum capacity by 7 a.m., just as the other power plants went offline. As a percentage of council’s total output, wind fell to below 10 percent and remained there until 11 p.m.

The Institute for Energy Research confirmed that a mere 3.2 percent of the energy supplied to the Texas grid covered by council came from wind. At the moment Texas residents needed reliable power the most, 83 percent of Texas’ wind turbines were unavailable “during peak demand.”

The only thing that saved Texas that day was importing nearly 1,000 megawatts from the eastern power grid and Mexico.

The Comanche Peak 1 nuclear plant fell to 72 percent of capacity on Jan 6. Meanwhile, actual wind output in Texas failed to reach 70 percent during any one hour, and remained below 50 percent in at least 20 of the 24 hours that day.

So when the winter chill hit Texas residents, wind power nearly left them out in the cold. Coloradans would be wise to not endanger their safety in their homes, and their pocketbooks, by forced reliance on an intermittent, subsidy-dependent power source.

Michael Sandoval is an energy policy analyst for the Independence Institute, a free market think tank in Denver.

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Fried Birds: Green Energy Involves Tradeoffs Too

February 17, 2014 by michael · Comments Off
Filed under: renewable energy, solar energy 

The Ivanpah solar plant went online last week, but the cost to wildlife–particularly birds–won’t be known for at least two more years.

Reports that the giant solar thermal array featuring more than 300,000 reflective panels and steam-driven turbine towers have been “killing and singeing” birds by heating the air to around 1,000 degrees Fahrenheit near the towers, according to reports.

You can view pictures of the deceased birds here.

All power sources involve tradeoffs, but to date, wind and solar have generally avoided discussing the topic, often quickly shifting to pointing out the costs of other energy sources in defending their own environmental impacts.

Policy directives aimed to support the technologies often override such environmental concerns, as they did with Ivanpah:

Ivanpah can be seen as a success story and a cautionary tale, highlighting the inevitable trade-offs between the need for cleaner power and the loss of fragile, open land. The California Energy Commission concluded that while the solar plant would impose “significant impacts on the environment … the benefits the project would provide override those impacts.”

The plant’s effects on birds is the subject of a current two-year study.

But the cost of electricity from solar sources is and will remain higher than other natural resources, like coal, for the foreseeable future, according to the Energy Information Administration:

The Energy Information Administration says that it will cost new solar thermal plants 161 percent more to generate one megawatt hour of power than it costs a coal plant to do in 2018 — despite the costs of solar power being driven downward.

On average, conventional coal plants cost $100 to make one megawatt hour, while solar thermal plants cost $261 for the same amount of power. This data, however, does not take into account the impact of federal, state or local subsidies and mandates on power costs.

The solar thermal installation built by BrightSource Energy received at $1.6 billion loan guarantee from the Department of Energy in 2011. That loan was secured in no small part due to political connections, according to The Heritage Foundation.

Higher electricity costs as a result of policy directives and crony capitalism, something the Solar Energy Industries Association was readily willing to admit:

Resch said a key issue for the industry will be maintaining government policies that encourage development, including tax credits for solar projects that are set to expire in 2016 and government loan guarantees. “The direct result of these policies is projects like Ivanpah,” he said.

Once again, however, the claim that solar energy is a “free” or “no cost” energy source has been upended. Another BrightSource project is receiving similar concerns:

In response to BrightSource’s blueprint for its second big solar farm in Riverside County, near Joshua Tree National Park, biologists working for the U.S. Fish and Wildlife Service told state regulators that they were concerned that heat produced by the project could kill golden eagles and other protected species.

“We’re trying to figure out how big the problem is and what we can do to minimize bird mortalities,” said Eric Davis, assistant regional director for migratory birds at the federal agency’s Sacramento office. “When you have new technologies, you don’t know what the impacts are going to be.”

Ivanpah may be the first large utility-scale solar thermal installation in California, and also the last:

Though Ivanpah is an engineering marvel, experts doubt more plants like it will be built in California. Other solar technologies are now far cheaper than solar thermal, federal guarantees for renewable energy projects have dried up, and natural gas-fired plants are much cheaper to build.

That means the private sector must fill the gap at a time when building a natural-gas fired power plant costs about $1,000 per megawatt, a fraction of the $5,500 per megawatt that Ivanpah cost.

“Our job was to kickstart the demonstration of these different technologies,” Energy Secretary Ernest Moniz said in an interview high up on one of the plant’s three towers.

The plant is projected to produce approximately 380 megawatts “during the peak hours of the day,” according to BrightSource.

A technology that costs 5.5 times more to build and that delivers electricity that is 161 percent more expensive than coal, and that secures it’s funding through political connections is not the job of the Department of Energy–or taxpayers’ dollars–nor to “kickstart the demonstration of these different technologies.”

Not when it produces just 0.24 percent of the electricity in the United States in November 2013, according to the EIA.

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CO electric rates rise along with increase in preferred energy mandate

February 7, 2014 by Amy · Comments Off
Filed under: New Energy Economy, renewable energy, solar energy, wind energy 

In 1999 Colorado enjoyed some of the lowest electricity rates in the United States and the Mountain West. In 2004, Colorado voters approved Amendment 37, requiring investor owned utilities to provide 10 percent of the electricity sold to end users to come from the preferred sources wind and solar.

Since 2004, the Colorado state legislature has mandated increases in the renewable portfolio standard, more appropriately titled the preferred energy standard, from 10 to 20 to the current 30 percent by 2020. Only Maine (40 percent by 2017) and California (33 percent by 2020) have more aggressive mandates, and they also have higher electric rates than Colorado.

Last year the state legislature passed a 20 percent preferred portfolio standard on Colorado’s rural electric cooperatives.

As the mandate to produce more electricity from wind and solar has increased so have Colorado’s electricity rates.

  • In 1999 Colorado’s electric rates were 5.9 cents per Kilowatt hour (kWh) and were the 18th least expensive in the country.
  • In the 1990s Colorado’s population increased by 30 percent, electricity demand grew 26 percent, yet real prices fell 25 percent in the same period.
  • If electric rates simply kept pace with inflation, Coloradans would have paid 8.4 cents per kWh in 2013 instead of 9.83 cents per kWh.
  • In 2000, Colorado’s residential rates were 7.31 per kWh; adjusting for inflation that’s the equivalent of 9.89 cents in 2013. Instead Coloradans now pay 11.91 cents per kWh for residential electricity.
  • Colorado’s current electric rate for all sectors is 9.83 cents per kWh, nearly 7 percent higher than the Mountain West average of 9.21 cents per kWh.
  • Colorado’s electric rates increased 4.5 percent last year while U.S. electric rates increased only 2.4 percent last year.
  • At 11.91 cents per kWh, Colorado has the highest residential rates in the Mountain West.
  • Colorado residential electric rates are the 20th highest in the nation, with California, Alaska, and Hawaii being the only western states with higher residential rates.

Most information available at the U.S. Energy Information Administration, Table of “Average Retail Price of Electricity to Ultimate Customer by End-Use Sector.”

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HB 1113 Testimony, Bill Voted Down 8-5

January 31, 2014 by michael · Comments Off
Filed under: Legal, renewable energy, solar energy, wind energy 

Valerie Richardson of The Colorado Observer provides background on HB 1113’s 8-5 defeat in committee, as well as other efforts to deal with last year’s SB 252 impact on rural Colorado.


Full text of testimony presented by the Independence Institute:

Testimony on behalf of

HB 1113 Electric Renewable Energy Standard Reduction, Room 0112

January 30, 2014

House Transportation and Energy Committee

Mr. Chairman and Members of the Committee,

My name is Michael Sandoval. I am an Energy Policy Analyst and Investigative Reporter for the Energy Policy Center at the Independence Institute.

Thank you for allowing me the opportunity to testify today on behalf of House Bill 1113.

At the Independence Institute, we are agnostic on energy resources. It is our strong belief that the choice of energy resources should come from the demands of the free market, and not from the preferences of policymakers, lobbyists, or special interest groups.

The goal of the Energy Policy Center is to promote a free market in energy production, where no protections, subsidies, or regulations result in energy winners and losers. We advocate that government remain neutral, which then encourages a level playing field. That is the best way to ensure that consumers reap the benefits of a healthy energy market – competition, lower prices, and more options.

Testimony

HB 1113 affords utilities the flexibility they need to meet electricity demand in the most cost effective way. HB 1113 is an energy freedom bill that does not preclude utilities from incorporating wind, solar, or other renewable energy sources from the achieving a minimum percentage of electricity that electric service providers must generate. Rather it allows utilities to achieve that mix in a way that does not force them to rush to comply in coming years.

HB 1113 would eliminate the step-increases mandated by previous legislation that would negatively affect utilities’ ability to respond to customer demands and force ratepayers to contend with ever increasing costs of energy in Colorado.

The most recent numbers from the Energy Information Administration indicate where Colorado sits vis-à-vis its neighbors when it comes to the average retail price of electricity to the residential sector. As of October 2013, Colorado ranks 27th, with a residential retail cost that exceeds that of Kansas, New Mexico, Wyoming, Nebraska, Montana, Oklahoma, and Idaho.

When looking at the EIA’s census division of Mountain states, Colorado’s average retail price of electricity for residential customers is second behind only Nevada. When it comes to commercial and industrial electricity, Colorado’s average retail price is the highest in the Mountain region in both categories, for 2012 and 2013.

According to the Database of State Incentives for Renewables and Efficiency, in 2013 Colorado renewable portfolio standard of 30 percent by 2020 is the highest in the entire Rocky Mountain region, trailing only the west coast state of California.

The Independence Institute believes HB 1113 addresses concerns about the state’s market-skewing renewable portfolio standard’s impact upon utilities and ratepayers. The step-change increases in the state’s renewable energy mandate over the course of the next few years will result in higher costs for utilities and ratepayers alike.

These increased costs will likely result in job losses, higher costs for consumers, and a loss of competitiveness for Colorado businesses in comparison to neighboring states without or with lower renewable energy standards. HB 1113’s 15 percent figure would bring the state more in line with states throughout the Mountain region.

Again, aligning minimums between investor-owned utilities and cooperative electric associations will level the playing field that will keep electricity rates competitive, but will not prevent individual providers from exceeding those minimums with a market mix of conventional and renewable sources, including wind and solar, that best fits their own market profile and satisfies the needs of their customers.

In conclusion, HB 1113 gives utilities the flexibility to adjust power sources as needed and respond to needs of consumers—and not the demands of special interests—from 2014 and thereafter.

Conclusion

As I stated at the beginning it is the strong belief of the Independence Institute that the choice of energy resources should come from the demands of the free market, and not from the preferences of policymakers, lobbyists, or special interest groups and we believe that HB 1113 is consistent with that principle.

Thank you.

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Legislative Preview: 2014 Energy Bills

January 24, 2014 by michael · Comments Off
Filed under: Archive, Hydraulic Fracturing, Legislation, renewable energy 

Current through January 24, 2014

Reform defeated: SB14-035 Renewable Energy Standard Repeal *postponed indefinitely*

Senate Bill 35, introduced by State Sen. Ted Harvey, would have repealed “substantially all of the provision enacted by Senate Bill 13-252″ by returning the renewable portfolio standard to 10 percent from 20 percent for rural cooperative electric associations, among other cuts.

The bill, sent to the State, Veterans and Military Affairs committee was killed Wednesday on a 3-2 party line vote. The SVMA committee has been dubbed the “kill committee” by the minority party, where bills are sent to receive a quick despatch.

Comment: As this bill has been killed, the Independence Institute will examine a similar bill, proposed by State Sen. Ray Scott on Wednesday that would reduce the RPS requirement from 20 percent to 15 percent.

SB14-011 Colorado Energy Research Authority

Among other provisions housekeeping provisions, SB 11 “substitutes ‘clean energy’ for ‘renewable energy’” and authorizes additional monies in the amount of $2 million to create an “energy research cash fund” (ERCF) for the next five fiscal years.

Comment: Substituting “clean” for “renewable” energy is noteworthy. The fiscal note estimates a cost of $2,000,000 annually for the next five years for the ERCF from the state General Fund.

SB14-028 Expand Electric Vehicle Charging Station Grants *Passed Senate second reading with amendments*

SB 14 “expands the existing list of persons and entities that are eligible to receive moneys from the electric vehicle grant fund, administered by the Colorado energy office (CEO), by adding private businesses and nonprofits and allowing the CEO to consider the extent to which grant applicants’ proposed charging locations serve existing vehicles or encourages the acquisition of new vehicles.”

Comment: The bill’s fiscal note estimates that the impact will be “minimal” with grant monies collected under HB13-1110 providing the resource stream. Funding will go to as many stations as possible, but could include fulling funding those installations “in a location that is especially advantageous for support of the electric vehicle market.”

SB14-082 Renewable Energy Standard Adjustment for Cooperative Electric Associations

SB82: “In the section of the renewable energy standard statute setting aside a specific portion of electric generating capacity that cooperative electric associations must meet through distributed generation, the bill:
• Eliminates the disparity between cooperative electric associations serving fewer than 10,000 meters and those serving 10,000 or more meters;
• Establishes a uniform 0.5% of total retail electricity sales as the target percentage for distributed generation; and
• Allows the 0.5% to be measured collectively among these associations as a group rather than individually.”

Comment: Fiscal note estimates minimal impact.

SB14-103 Phase In High-Efficiency Water Fixture Options

SB103 “prohibits the sale of lavatory faucets, shower heads, flushing urinals, tank-type toilets, and tank-type water closets on and after September 1, 2016, unless they are a watersense-listed plumbing
fixture.”

Comment: No fiscal note. The bill defines a “watersense-listed plumbing fixture” as:

• Tested by an accredited third-party certifying body or laboratory in accordance with the federal environmental protection agency’s WaterSense program;
• Certified by such body or laboratory as meeting the performance and efficiency requirements of the program; and
• Authorized by the program to use its label.

The bill would expand the current requirements for “water-efficient indoor plumbing fixtures” which apply currently to builders of new homes, new state buildings, and new and renovated residential, office, and commercial buildings, but at a much lower and “less stringent” standard than the one defined by WaterSense.


HB14-1012 Advanced Industry Investment Income Tax Credit

HB1012 “repeals the Colorado innovation investment tax credit and replaces it with the advanced industry investment tax credit.” The tax credit would be available through the end of 2017 for “an equity investment in a qualified small business from the advanced industries, which consists of advanced manufacturing, aerospace, bioscience, electronics, energy and natural resources, information technology, and infrastructure engineering.” The tax credit would equal 25 percent of the investment and up to 30 percent if the business “is located in a rural area or economically distressed area.” Maximum tax credit would be $50,000 for a single tax credit, and up to $2 million per calendar year, with rollover.

Comment: No fiscal note at the present time.

HB14-1030 Hydroelectric Generation Incentive

HB1030 would “promote the construction and operation of hydroelectric facilities in Colorado” by providing incentives for additional installation and elevating community hydroelectric energy facilities “into the community solar garden statute.”

Comment: The bill’s fiscal note estimates a cost of less than $2,500 per year. The hydroelectric power in question would be targeted at those “small hydropower projects of 30 megawatts or less” sited in “streams, diversion ditches for irrigation, or existing dams.”

HB14-1064 Severance Tax Distribution To A Local Government That Limits Oil And Gas Extraction *postponed indefinitely*

HB1064 “prohibits any local government that has a moratorium or permanent prohibition on the extraction of oil and gas from receiving more direct distributions or grants and loans than the local government received in the fiscal year during which the moratorium or permanent prohibition was enacted.”

Comment: The restriction would be lifted in the following fiscal year if a county or municipality rescinds the moratorium or permanent prohibition. In the meantime, the “moneys that would otherwise have been distributed to the county or municipality are redistributed on a pro rata basis to all other eligible counties and municipalities.” The fiscal note puts a total price tag of approximately $40,000 over the next two fiscal years.

In other words, the bill would properly restore balance between counties and municipalities who choose to limit oil and gas extraction and those that do not, as the localities instituting prohibitions should not benefit from increased activities elsewhere by matching severance tax revenues to activities permitted.

**Bill postponed indefinitely, 7-6 party line vote:

Jonathan Singer, D-Longmont, said. “My community is downstream and downwind from oil and gas operations and we feel the public health impacts of fracking regardless of existing fracking bans.”

Sonnenberg presented his proposal as a measure of fairness, ensuring that cities don’t benefit financially from a practice they’ve banned and that those communities that do allow fracking benefit from more of the severance tax revenue.

“Passing this bill would have directed a higher percentage of severance tax funds to communities that help provide for the energy needs of our state,” said Sonnenberg.

“I am disappointed the Democrats failed to see the importance of providing these communities additional revenue to support the oil and gas industry.”

HB14-1067 Renewable Energy Electric Standard REAs Move to 2025

This renewable reform bill, HB1067, “changes the target date to achieve the renewable component of the energy generation portfolio of retail cooperative electric associations [CEA] serving 100,000 or more customers, and qualifying wholesale utilities” from 2020 to 2025.

Comment: The fiscal note indicates a minimal impact. CEAs required to comply with the 20 percent renewable energy standard by 2020 would need to meet step-change adjustments that increase from 6 percent in 2015-2019 to 20 percent in 2020 would see a five year extension for meeting requirements. Measures available to comply with the requirement include development of “eligible generation facilities,” entering into power purchase agreements with “an eligible energy generation facility,” or purchasing “existing renewable energy credits”–each of which, the fiscal note determined, would  involve “additional costs” for the CEA.

The Independence Institute will also examine any additional energy bills introduced this session as they become available. This bill survey, completed on January 10, did not indicate any bills on hydraulic fracturing.

HB14-1113 Electric Renewable Energy Standard Reduction

HB1113 orders the public utilities commission to establish electric resource standards, or minimum percentages of electricity that electric service providers “must generate or cause to be generated from recycled energy and renewable energy resources.” This bill moves the current required minimums from 20 to 15 percent until 2019, and from 30 to 15 percent for 2020 and subsequent years. It also reduces the required minimum for rural electric coops to be reduced from 20 to 15 percent for 2020 and in the years following.

Comment: No fiscal note. This bill looks to challenge provisions from last year’s SB252, while also leveling all required electricity standards to be a flat 15 percent for both investor-owned and rural electric cooperative associations from 2020 and thereafter. Step-increases mandated by earlier bills are voided and returned to a standard 15 percent.

HB14-1138 Renewable Energy Standard Add Hydroelectric to Eligible

HB1138 “amends the definition of ‘renewable energy resources’ that can be used to  meet the state’s renewable energy standard to include hydroelectricity and pumped hydroelectricity.”

Comment: Fiscal note indicates minimal impact. The impact on state policy, however, could be quite large. Adding hydroelectric and pumped hydroelectric electricity to be added to the state’s list of eligible energy resources for meeting Colorado’s renewable energy standard “reduces the amount of energy required to be generated from other eligible resources (principally wind),” according to the bill’s fiscal note. This could affect not only state agency and local government electricity rates, but those of ratepayers statewide as well.

HB14-1150 State and Local Government and Federal Land Coordination

HB1150: “The bill creates the division of federal land coordination in the department of local affairs to address federal land decisions in Colorado that affect the state and local governments. The chief coordinator is the head of the division and is required to form a federal land coordination task force to study certain federal land decisions. The department of agriculture, the department of natural resources, the Colorado tourism office, the Colorado energy office, and the office of economic development are required to assist the division at the request of the chief coordinator. Based on task force findings, the chief coordinator may recommend that a local government receive a grant for research and analysis to form a coordinated response to a federal land decision.”

Comment: No fiscal note.

HB14-1159 Biogas System Components Sales and Use Tax Exemption

HB1159: “The bill exempts from state sales and use tax components used in biogas production systems. Local governments that currently impose sales or use tax on such components may either continue to do so or may exempt them from their sales or use taxes.”

Comment: The fiscal notes estimates a reduction in state tax revenues of up to $635,000.

This bill creates a sales and use tax exemption, or carve out, for capturing biogas to be used as a renewable natural gas, or for equipment used to create electricity from the biogas. Biogas “is
a natural by-product that is released as manure, food waste, and other organic compounds
breakdown.” This bill appears targeted to one project in Weld County, the Heartland Biogas Project, a 20 MW “anaerobic digester and renewable natural gas (RNG) facility” set to come online as soon as April 2014.

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January 23 Energy Roundup: Fracking Dishonesty; Interior Sec. Jewell Boots Press

January 23, 2014 by michael · Comments Off
Filed under: Archive, Hydraulic Fracturing, renewable energy 

Periodically, the Independence Institute’s Energy Policy Center will take a look at the good, the bad, and the ugly in energy stories from around the United States and abroad, and bring the best (and worst) of those stories to your attention.

1. Secretary of the Interior Sally Jewell may have violated Colorado Open Meetings Law under its sunshine statutes by shutting out members of the press while visiting Moffat County on Tuesday. The meeting in Colorado centered on the status of the sage-grouse, a species whose designation could affect energy projects in the northwest portion of the state:

As she was leaving, Leavitt Riley said she saw Jewell in a car in the parking lot and the driver-side door was open, so she approached Jewell “and she said the press was not allowed at this meeting,” Leavitt Riley recalled.

“I said, do you realize more than a dozen elected officials were in it? She said the tour was open to the press but this was a closed meeting” and then drove away, Leavitt Riley said.

She said the newspaper is pursuing the matter with the Colorado Press Association. No one with the U.S. Secretary of the Interior’s office was available for comment Tuesday night.

2. From Lachlan Markay at the Washington Free Beacona Politico column riddled with inaccuracies from anti-fracking activists:

A pair of prominent environmentalists penned a column Tuesday for Politico Magazine attacking hydraulic fracturing littered with dishonest and incorrect claims.

“If you calculate the greenhouse gas pollution emitted at every stage of the production process—drilling, piping, compression—it’s essentially just coal by another name,” McKibben and Tidwell wrote.

The claim is frequently sourced to Cornell scientists Robert Howarth and Anthony Ingraffea, who have found significantly higher life cycle emissions than are found in other studies.

Numerous government agencies, environmentalist groups, and academics have panned Howarth and Ingraffea’s work on the issue and produced their own studies showing relatively low life cycle emissions from natural gas.

“Their analysis is seriously flawed,” according to three Cornell colleagues, professors in the university’s departments of earth and atmospheric sciences and chemical and biological engineering.

3. Michael Bastasch at The Daily Caller highlights a report on the social benefits of fossil fuels:

Burning off carbon dioxide into the atmosphere to provide cheap electricity may have affected the climate, but the benefits of a carbonized economy far outweigh the costs, according to a new study.

The pro-coal American Coalition for Clean Coal Electricity (ACCCE) released a study showing that the benefits of carbonized fuel, like coal, to society are 50 to 500 times greater than the costs. Over the past two-and-a-half centuries increased fossil fuel energy production has helped more than double global life expectancy and increase global incomes 11-fold.

4. North Carolina State University issued a study finding that increasing the use of electric vehicles “is not an effective way to produce large emissions reductions”:

“We wanted to see how important EDVs may be over the next 40 years in terms of their ability to reduce emissions,” says Dr. Joseph DeCarolis, an assistant professor of civil, construction and environmental engineering at NC State and senior author of a paper on the new model. “We found that increasing the use of EDVs is not an effective way to produce large emissions reductions.”

The researchers ran 108 different scenarios in a powerful energy systems model to determine the impact of EDV use on emissions between now and 2050. They found that, even if EDVs made up 42 percent of passenger vehicles in the U.S., there would be little or no reduction in the emission of key air pollutants.

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