December 30 Colorado Energy Cheat Sheet: the anti-fracking force awakens; EPA receives a lump of coal in its budgetary stocking; pot is not green

Theeeeeeey’re baaaaaack!

As promised, the anti-energy, anti-fracking folks have delivered nearly a dozen ballot initiatives that focus on either banning hydraulic fracturing altogether or a host of other setback measures.

The group has cleverly dubbed themselves Coloradans Resisting Extreme Energy Development, or CREED, likely to inspire confusion among voters who might be only familiar with Coloradans for Responsible Energy Development, or CRED:

Each of the constitutional amendments would need signatures from 98,492 registered Colorado voters to get on November’s ballot.

A review-and-comment hearing on the language of the ballot questions is set for at 1:30 p.m. Jan. 5 in Room 109 at the Capitol.

“If the state will not adequately protect Coloradans and communities, then we, the people of Colorado, must do it, and that requires a change to Colorado law,” Tricia Olson, CREED’s executive director, said in a statement.

“Our beautiful state should not be overwhelmed by wells, pads and other industrial oil and gas operations plunked down next to neighborhoods and schools.”

As the Post points out, these measures would toss the efforts of Governor John Hickenlooper’s grand pragmatic strategy to develop and cultivate the blue ribbon commission that existed in 2014-15, narrowly averting a previous slate of anti-fracking measures brought forward in 2014 that Democrats feared would threaten the midterm election that cycle.

But the supporters of the 2014 measures felt that Hickenlooper’s attempts to find “balance”–his words–on fracking in Colorado did not go far enough, and felt betrayed when the measures were pulled. Continued efforts on this issue could once again upset a delicate situation for Democrats in the state split between development and anti-energy, more left-leaning Democrats.

The Independence Institute will be tracking these measures throughout the year in 2016, and will provide regular updates on ballot specifics, tracking ballot measure progress, and weighing in when and where appropriate.

Stay tuned.

***

The Environmental Protection Agency’s Christmas stockings weren’t as full this year as they would have liked, instead getting a lump or two of coal, so to speak:

The EPA received $8.1 billion or $451 million less than Mr. Obama had demanded, and no increase from the year before. Congress has cut the EPA’s allowance by $2.1 billion, or 21%, since fiscal 2010. This has forced the EPA to cut more than 2,000 full-time employees over the same period, and its manpower is now at the lowest level since 1989 (see nearby chart).

Mr. Obama sought an additional $72.1 million to turbocharge his extralegal climate rule on power plants. That request included $8.3 million for the EPA’s science and technology groups, which do the phony modeling to justify regulations. It also included $68.3 million for the agency’s environmental programs and management department, which is where the minions draft and implement the President’s climate initiatives. Congress denied every penny.

Two thousand fewer EPA officials to harass the American public with onerous regulations? Sounds like a good start (from the WSJ):
Screen Shot 2015-12-29 at 11.34.03 PM

***

There will be plenty of energy battles in 2016, from the Clean Power Plan’s effect on rising electricity costs to anti-fracking ballot measures and beyond. The Independence Institute has already revealed that residential electricity rates in Colorado have skyrocketed 63% between 2001 and 2014, before the CPP or other measures even kick in at the state level.

But this nugget, from July 2015, illustrates just how much the impact of rising electricity costs disproportionately targets those least able to afford it:

Average households pay 2 percent to 3 percent for energy, compared with low-income households, which often pay as much as 50 percent.

“That leaves very little for food, clothing, medicine,” said Pat Boland, Xcel’s manager of customer policy and assistance.

Percent_Increase_NRG_Income(Independence Institute)

The next time someone advocates for higher energy costs through regulation or burdensome energy mandates, remind them who really takes a hit in the pocketbook.

***

Speaking of folks who like higher energy costs:

A coalition of environmental groups announced earlier this week its intent to take legal action against several federal agencies for extending operations at the Four Corners Power Plant and Navajo Mine just outside Farmington.

On Dec. 21, San Juan Citizen Alliance, among other regional and national conservation groups, filed a 60-day notice of intent to sue the Office of Surface Mining, U.S. Fish and Wildlife Service and others over a July decision to allow the plant to operate until 2041.

“While the rest of the world is transitioning to alternative forms of energy, the Four Corners Power Plant continues to burn coal and will do so for the next 25 years,” Colleen Cooley with Diné Citizens Against Ruining Our Environment said in a news release. “Prolonging coal not only condemns our health and the water, air, and land around us, it undermines our community’s economic future because we are not investing and transitioning to clean energy.”

***

On the other hand, lawsuits to protect Coloradans from rogue agency actions, like the EPA spill in August, could be on tap in 2016:

DENVER – State legislation has been drafted in an effort to pressure the federal government into quickly settling damage claims stemming from the Gold King Mine spill.

Rep. Don Coram, R-Montrose, said he will carry the bill at the start of the legislative session, which begins next month.

The bill would allow the state to file lawsuits against the federal government on behalf of individuals financially impacted by the Gold King Mine spill.

“It’s authorizing the state of Colorado to sue the EPA in case they renege on their obligation,” Coram said.

He added, “The idea behind the bill is that it encourages them to settle this in a gentlemanly manner.”

***

It’s not every day that pot and energy end up jointly in the same article, but this revelation may be a real eye opener for a lot of folks, some who steadfastly approve of pot legalization but prefer more renewable forms of energy:

DENVER – Pot’s not green.

The $3.5 billion U.S. cannabis market is emerging as one of the nation’s most power-hungry industries, with the 24-hour demands of thousands of indoor growing sites taxing aging electricity grids and unraveling hard-earned gains in energy conservation.

Without design standards or efficient equipment, the facilities in the 23 states where marijuana is legal are responsible for greenhouse-gas emissions almost equal to those of every car, home and business in New Hampshire. While reams of regulations cover everything from tracking individual plants to package labeling to advertising, they lack requirements to reduce energy waste.

Some operations have blown out transformers, resulting in fires. Others rely on pollution-belching diesel generators to avoid hooking into the grid. And demand could intensify in 2017 if advocates succeed in legalizing the drug for recreational use in several states, including California and Nevada. State regulators are grappling with how to address the growth, said Pennsylvania Public Utility Commissioner Pam Witmer.

“We are at the edge of this,” Witmer said. “We are looking all across the country for examples and best practices.”

Light ‘em if you got ‘em. It’s legal here, ya know.

***

Looking into the future of Colorado’s oil boom, thanks to the end of the U.S. oil export ban–but only time will tell.

December 10 Colorado Energy Cheat Sheet: Fracking ban faces CO Supremes; fracktivist compares technology to slavery; House GOP calls Interior EPA spill report a “whitewash”

Yesterday, the Colorado Supreme Court heard arguments over Longmont’s fracking ban:

On Wednesday, the state’s highest court will consider Longmont’s voter-approved ban on hydraulic fracturing within city limits.

Longmont voters added the ban to the drilling method, also called fracking, to the City Charter in 2012, convinced that a city-negotiated set of regulations on oil and gas drilling didn’t go far enough.

Both the regulations and the ban brought lawsuits from the Colorado Oil and Gas Association, an industry trade group. The oil and gas regulations lawsuit was dismissed as part of a compromise brokered by Gov. John Hickenlooper before the 2014 election.

The suit on the charter ban, however, has progressed through district court and the Colorado Court of Appeals and is now before the Colorado Supreme Court.

The city has argued that the state allows for local control, that Longmont voters should be able prohibit a type of drilling in city limits.

It is not known when a ruling can be expected.

***

Speaking of local fracking bans, Colorado Peak Politics found this gem from “fractivist Maria Orms, head of North Metro Neighbors for Safe Energy, at an Adams County Communities for Drilling Accountability Now (ACCDAN) meeting”:

“If you accept anything like an MOU [memorandum of understanding], that’s your terms of surrender…signing an MOU is collusion with the oil and gas industry. We need to talk to our county commissioners and tell them not to agree to any of this.

“Apartheid was legal at one point. Would you agree with that? Slavery was legal. Didn’t make it right. Well, maybe that doesn’t apply here to an environmental issue, this is not right, do not agree to this.”

***

Adding more time and uncertainty to drilling operations in Colorado as a result of Gov. John Hickenlooper’s fracking task force recommendations has operators weighing risks and reconsidering Colorado operations:

“The risk [to operate] in Colorado has gone up because of this potential rule or potential application of this on a case-by-case basis,” Wonstolen said.

The COGCC on Monday held its third day of hearings on controversial proposed rules to implement two recommendations from Gov. John Hickenlooper’s oil and gas task force in February.

The recommendations, No. 17 and 20, focused on increasing the communications between local governments and energy companies about where new oil and gas wells would be located in and around neighborhoods. It also called for the impacts of those new wells to be mitigated through best management practices.

But where the proposed rules would be enforced, and how the impacts would be mitigated, has spawned a months-long battle that’s expected to drag into next year. Another day of hearings is expected to be scheduled in late January.

Oil and gas industry representatives said the COGCC’s rules go too far. Citizen groups and representatives from local governments said they don’t go far enough.

***

And one other recommendation from the Governor’s task force calling for a complaint line on oil and gas operations has begun collecting said complaints:

A new state-run program created to field and respond to health concerns related to oil and gas operations has started to receive complaints.

As of Thursday evening, the new Oil and Gas Health Information and Response Program had fielded 20 complaints, according to Dr. Daniel Vigil, who is heading the program within the Colorado Department of Public Health and Environment.

The program began Oct. 15, allowing people to file a health concern and access information. Information includes “unbiased” staff reviews of existing research on the health impacts related to oil and gas development, said Vigil.

In addition, a mobile air monitoring program is being designed and is expected to be completed in the spring.

The health response program, which Vigil said is the first of its kind in the country, was one of nine approved recommendations from a task force created by Gov. John Hickenlooper as part of a compromise to avoid multiple oil- and gas-related ballot issues in 2014.

It will remain to be seen how “unbiased” those review remain, and whether or not a concerted effort by anti-energy forces moves to overwhelm the complaint system in an effort to draw attention.

***

Carbondale is implementing government carbon fees based on energy consumption as state and federal subsidies for renewable energy disappear:

“Carbon fees harness market forces to encourage local investment in energy efficiency and renewable energy,” Michael Hassig, former Carbondale mayor, said in a prepared statement. “We have to take what steps we can, now, right here in our own community, to reduce fossil fuel consumption.”

In 2010, Carbondale set the goals of increasing energy efficiency by 20 percent; reducing petroleum consumption 25 percent; and obtaining 35 percent of energy from renewable sources all by 2020. These figures are measured off of a 2009 baseline.

One scenario calculates that by installing energy-saving measures in 1,200 homes and in 60 businesses, combined with doubling the amount of solar electric systems (or the equivalent of 800 kilowatts of power-generating capacity), Carbondale could meet its targets, according to CLEER’s website. These energy improvements could be achieved by investing $1.1 million per year over the next five years.

The Carbondale trustees adopted a resolution in 2014 that dedicates 20 percent of the town’s state severance tax and federal mineral lease revenues to help reach clean-energy goals. Traditionally, funding from federal and state government grants, the town’s general fund, the Renewable Energy Mitigation Program (generated through building fees in Pitkin County and Aspen) and utilities have been used toward energy efficiency.

But the federal and state grants have since dried up, necessitating another path forward to raise revenue.

Carbon “fees” are not a harnessing or channeling of voluntary market decisions, they are an example of government force, picking energy behavior winners and losers.

***

A battle over a Department of the Interior inspector general report on the Environmental Protection Agency’s Gold King Mine spill has prompted Republican calls that the effort was “whitewash” of EPA efforts and lacked independent review:

The accident prompted harsh criticism of the EPA for failing to take adequate precautions despite warnings a blowout could occur. Yet Interior Secretary Sally Jewell said a review by her agency showed the spill was “clearly unintentional.”

“I don’t believe there’s anything in there to suggest criminal activity,” Jewell testified during an appearance before the House Natural Resources Committee.

Republicans were dissatisfied. They pointed to earlier statements in which Jewell and other agency officials said the Interior review focused on technical mining issues — not the potential culpability of those involved in the spill.

Immediately after Wednesday’s hearing, committee Chairman Rob Bishop asked Congress’s non-partisan Government Accountability Office to investigate the Interior Department’s evaluation. The Utah Republican accused Jewell and other agency officials of stonewalling his repeated efforts to obtain documents relevant to the spill.

The clean up bill for the EPA spill is around $8 million, according to the 2015 “Wastebook” issued by Arizona Sen. Jeff Flake (R), and summarized here by Colorado Peak Politics:

An Orange River Runs Through It: The Animas River. Perhaps you’ve heard of this disaster? The EPA contaminated it, and then, denied responsibility. To date, the EPA has spent $8 million cleaning up its own mess, and that figure is expected to grow.

***

It wouldn’t be a Cheat Sheet without a Clean Power Plan update, so here’s one from the National Federation of Independent Business:

But NFIB believes that the Administration is once more overstepping with the Clean Power Plan. For one it imposes quotas on each state, mandating that they achieve targets for emission reductions—targets that, in some cases, are wholly unrealistic. The plan rewards states that have already taken action to reduce greenhouse gas emissions, but would penalize states that fail to meet their federally mandated reduction targets. To avoid those penalties the rule allows states that are missing their targets to enter into cap-and-trade compacts, which would require those states to essentially purchase credits (at great cost) from states that are meeting their targets. Thus the rule penalizes states that have chosen—for the same policy reasons as Congress—to reject such regulation of greenhouse gas emissions.

Accordingly, the rule raises serious federalism problems because the federal government cannot force the states to enact law that they do not wish to enact. But as we argue—first and foremost—there is a separation of powers problem with the EPA rewriting the Clean Air Act. Once again, we’re fighting in court to enforce the basic principle that only Congress can make law. And once more, we’re defending small businesses against extreme energy-rate hikes.

We are currently asking a federal court to issue an injunction preventing EPA from enforcing the rule against the states. Our hope is that we will ultimately strike-down the rule as another example of executive overreach. For further explanation as to how this rule will affect ordinary small business owners, check out Randi Thompson’s recent editorial in the Reno-Gazette Journal.

***

It’s trees vs. bugs in the forests near Colorado Springs, and the U.S. Forest Service is giving the nod to the bugs, according to this Gazette editorial:

If our plush green backdrop becomes an ugly brown wasteland, tourists will avoid us. Home and business values may drop. And, of course, dead trees greatly increase the likelihood of more deadly, costly forest fires.

Because of diligence by the governor and mayor, we could have a good chance of saving thousands of acres of trees. There is one big problem: The Obama administration’s U.S. Forest Service. Federal forest officials seem to think tree-killing bugs have a right to life.

Forest-managing entities working cooperatively on a contract to exterminate the bugs include: Colorado Parks and Wildlife, responsible for the 1,260-acre Cheyenne Mountain State Park; Colorado Springs Parks and Recreation, responsible for 2,132 acres of city-owned forest; NORAD, which manages 400 acres; Broadmoor Bluffs Subdivision, with 291 acres; Broadmoor Resort, 146 acres; Broadmoor Expanse, 1,677 acres; Cheyenne Mountain Zoo, 81 acres, and El Pomar with 140 acres.

“The only party I know of that is not interested is the U.S. Forest Service,” said Dan Prenzlow, southeast regional manager of Colorado Parks and Wildlife. “They have 1,300 acres touching all the rest of us.”

The Forest Service remains adamantly against spraying, saying that nature should take its course:

Oscar Martinez, district manager for the Pikes Peak District of the U.S. Forest Service, said there is no chance the federal agency will join the eight other entities killing bugs. Even if federal officials could be convinced to change their minds, Martinez said, the federal government would require so much environmental assessment that nothing could be done in time to make a difference.

“If you bought a house up there with big trees, and you moved here for those big trees, I understand the concern,” Martinez said. “But there is a natural cycle of forest disturbance that must be allowed to occur as part of responsible forestry management.”

By letting nature run its course, Martinez said, dead and dying trees can “release the vegetation that was suppressed by the tree cover. If you look at butterflies, they are tied to flowering plants that are suppressed by trees.”

Martinez said a naturally occurring bacteria detected by federal foresters stands to kill many of the bugs over the coming year, which should save a lot of trees. But Prenzlow said federal officials told state officials two years ago the bugs would begin dying naturally. They remain alive and well.

“We’re going into our third year and the bugs have not died. The trees are struggling and dying, so we’re going to spray,” Prenzlow told The Gazette.

***

A lot of energy is going to pot–literally:

Attendees learned that Xcel Energy, which serves most of urban Colorado, sells some 300 gigawatt hours of electricity to pot growers per year, or enough to power some 35,000 homes. The U.S. marijuana-growing industry could soon buy as much as $11 billion per year in electricity.

One study estimates that it takes as much energy to produce 18 pints of beer as it does just one joint. The data are alarming, and will only get more so as legalization spreads. But legalization, if approached correctly, also opens doors of opportunity. The biggest guzzlers of electricity also hold the most potential for realizing gains via efficiency.

Back in 2011, a California energy and environmental systems analyst, Evan Mills, published a paper quantifying the carbon footprint of indoor cannabis production. That footprint, he discovered, was huge. His findings included:

While the U.S. pharmaceutical sector uses $1 billion/year in energy, indoor cannabis cultivation uses $6 billion.

Indoor cannabis production consumes 3 percent of California’s total electricity, 9 percent of its household electricity and 1 percent of total U.S. electricity (equivalent to 2 million U.S. homes per year).

U.S. cannabis production results in 15 million tons of greenhouse-gas emissions per year, or the same as emitted by 3 million cars.

Cannabis production uses eight times as much energy per square foot as other commercial buildings, and 18 times more than an average home.

Time to stop before I write any more doobie-us puns. Have a great weekend!