April 7 Colorado Energy Cheat Sheet: Hickenlooper calls CDPHE refocusing away from CPP a ’shell game’, unloads on EPA ozone rule; ‘carbon tax’ defeated in Carbondale

Less than two weeks after Gov. John Hickenlooper told Colorado Public Radio “we don’t care what the Supreme Court says about the Clean Power Plan”, calling for continued planning for the Environmental Protection Agency’s embattled rule currently under a stay issued by the U.S. Supreme Court, the Democrat initially appeared to be walking back his initial disregard for the country’s highest judicial body:

Gov. John Hickenlooper said he’s willing to temporarily halt state work on the Obama administration’s Clean Power Plan if that would defuse an effort to strip funding from the agency developing the plan.

“I’m happy to have them stop working on it if that’s a problem, if that becomes a partisan issue,” Hickenlooper told a CPR reporter after a lunch hosted by the American Petroleum Institute.

But the easing on Hickenlooper’s view of the work being done by the Colorado Department of Public Health and Environment–dismissive of any SCOTUS intervention via a stay–was itself walked back, as he at first acknowledged that the state could work on its already existing regulatory mandates to achieve similar goals to the Clean Power Plan, but said that any such maneuver would be nothing more than a “shell game”:

“We’re doing the same work anyway,” said Hickenlooper. “I don’t think it would hurt our efforts if we were to reallocate some of that time in other directions. I mean, in the end, we’re going to get to the same place.”

Hickenlooper said state policy and laws, including the Clean Air, Clean Jobs Act passed in 2010, already require Colorado to reduce carbon emissions from coal fired power plants.

“Our goals were very aggressive goals, and they are not the same, but they are very similar to what the Clean Power Plan wants,” he said at the gathering.

The governor clarified his comments Wednesday, dismissing the idea that suspending work on the Clean Power Plan would have much real world impact on the state’s clean air efforts.

“I look at the whole thing as ridiculous, to be perfectly blunt,” Hickenlooper told reporters at a regular press gathering. “It’s like a shell game of who’s doing which work. We’re working toward clean air, that’s what the state’s doing, that’s what people want us to do. We can get into … semantical battles over this thing, but it’s pretty straightforward.”

When it comes to Hickenlooper’s pronouncements on any number of issues, including this one, it’s usually never “pretty straightforward.”

Hickenlooper, just days ago, attempted to cast a non-partisan tenor to the debate over the Clean Power Plan:

Gov. John Hickenlooper also defended the new air quality rules at an event hosted by the Colorado Petroleum Institute.

“Clean air is too important to Colorado to become a partisan issue,” he said. “I am convinced as much as I ever have been that this is in the self-interest of the state.”

Jack Gerard, the head of the American Petroleum Institute, disagreed with Hickenlooper’s assessment.

“We look at the Clean Power Plan as it’s unnecessary to regulate as trying to pick favorite energy forums,” Gerard said.

Hickenlooper’s soft spot for the Clean Power Plan did not hold him back from being critical of the EPA’s ozone rule, which he said risked the “possibility that there will be penalties eventually that will come from lack of compliance.” He also blasted a Democrat bill that would allow for more lawsuits over damage caused by earthquakes that allege a connection to oil and gas development, as well as a ballot measure that would create a 2500 foot setback, saying that it would deprive mineral rights owners of their property–a taking that could cost billions.

***

Energy in Depth has more on Hickenlooper’s statement on the ballot initiative that would create 2500 foot setbacks:

Colorado’s Democratic governor, John Hickenlooper, is speaking out against an initiative backed by ‘ban-fracking’ activists to dramatically increase oil and gas setback distances in the state. The comments came at an event yesterday sponsored by the American Petroleum Institute (API) and Colorado Petroleum Council (CPC) featuring the governor and API President and CEO Jack Gerard.

When asked about the ballot initiative pushed by activists with strong ties to national ban fracking organizations, that would increase oil and gas setback distances to 2500 feet, Hickenlooper strongly denounced the effort. As reported by CBS Denver:

“That would be considered a taking, and I think the state would probably be judged responsible, and I think the cost could be in the many billions of dollars. I think that’s a risk that most Coloradans — if it was laid out for them in a sense they could clearly understand — would not support it.”

Hickenlooper’s assertion that the initiative could cost the state billions is backed up by a recent economic assessment from the Business Research Division at University of Colorado Leeds School of Business. Economists found that a 2,000 foot setback distance could cost the state up to $11 billion in lost GDP a year and 62,000 jobs. The 2,000 foot setback economists looked at is more modest than the 2,500 foot distance that activists are attempting to put before state voters this year.

Those mineral rights are worth billions of dollars to Coloradans and fill the coffers of counties and other entities annually to the tune of millions in property and severance taxes.

***

A thinly disguised attempt to ban fracking under the ruse of “local control” failed in the Colorado House on Monday:

Activist groups have not been shy about the fact that they see “local control” as a de facto ban on fracking. On a recent call with supporters, Tricia Olson of Coloradans Resisting Extreme Energy Development (CREED), the group behind a series of ballot initiatives targeting energy development, even told the group that their “local control” measure is basically a “full-fledged” fracking ban:

“This version however has one significant difference, what we would call a floor, not a ceiling language. To lift its points, it authorizes local governments to pass regulations — prohibit, limit or impose moratoriums on oil and gas development. Of course the word prohibit means ban. This allows for a broad range of local government options within their jurisdictions from local actions to a full-fledged ban.” (23:14-23:44)

EID detailed the “local control” proponents’ misinformation campaign to push the measure. Two Democrats joined with Republicans to kill the bill on the floor of the Colorado House.

***

Speaking of fracking–a non-partisan study “found no definitive evidence” that hydraulic fracturing and oil and gas development has negatively affected property values in Colorado.

And former Gov. Bill Ritter–you know–of the “New Energy Economy” and a paragon of all things green (dubbed the “Greenest Governor”), rejected a national ban on fracking:

“If you passed a national ban, this industry would go away and it would be harder for us to get to our place of transition on clean energy and climate.”

“I believe that with a good set of regulations, with good enforcement, with good compliance on the part of the industry, it [fracking for natural gas] can be a part of a clean energy future,” Ritter said.

Ritter and Hickenlooper, both Democrats, face opposition from their far-left counterparts when it comes to these types of calls for bans on responsible oil and gas development:

“We won’t transform the energy supplies of our nation overnight; there’s been rapid growth in solar and wind, but we’re a long way from saying we can walk away from hydrocarbons and not do significant damage to our economy,” Hickenlooper said.

“The number of people in Colorado who want to ban hydrocarbons is probably a small minority,” he said.

Gerard said the oil and gas sector will continue to play a significant role going forward, even through energy efficiency efforts focused on the automotive sector.

“When you look to make cars more energy efficient, you make them lighter with plastics brought to you by petroleum, you make the windows more efficient [with films] brought to you by petroleum, the gadgets you play with in your hand every day also come from petroleum,” he said.

As we can see, it’s not just about fracking, or burning oil and gas for electricity, as API’s president pointed out.

***

Hickenlooper continues to express deep concern about the EPA’s ozone rule, reducing the target for acceptable ground level ozone from 75 ppb to 70 ppb, saying a suspension of the rule “would be a great idea”:

Transcript of Gov. John Hickenlooper’s comments on the Environmental Protection Agency’s ozone rule delivered to the Colorado Petroleum Council and the American Petroleum Institute on March 31, 2016 via the Center for Regulatory Solutions:

So I think it would be a great idea if they suspended the standard. I mean, just with the background [ozone], if you’re not going to be able to conform to a standard like this, you are leaving the risk or the possibility that there will be penalties of one sort or another that come from your lack of compliance. Obviously, no different than any business, states want to have as much predictability as possible, and I think if they suspend the standards, it’s not going to slow us down from continuing to try and make our air cleaner. …

You know, we’re a mile high. Air quality issues affect us more directly than they do at lower elevations. So we’re going to keep pushing it, we’re not going to back off, we’re going to continue to improve the air quality in the state every year if I have anything to say about it, but at the same time, those standards, you know, to be punitive when you’re working as hard as you can … to get cleaner air as rapidly as you can, it seems like it’s not the most constructive stance.

A bi-partisan chorus of opposition to the ozone rule has emerged, and Independence Institute energy policy analyst Simon Lomax notes that the rhetoric surrounding the ozone rule, and in particular, its potential impact on public health, is filled with fearmongering from the “bad-air chorus.”

Lomax testified before CDPHE last month on the ozone rule:

The nature of the problem is clear. The EPA’s new ozone standard goes too far. It will throw large areas of the state into long-term violation of federal law. Violation will impose new restrictions on economic growth and jeopardize badly needed investments in transportation infrastructure.

And because the stringent new standard approaches background ozone levels, which state regulators are powerless to control, there will be little, if any, environmental benefit in return. For months, stakeholders from across government, across the political spectrum and across the economy have stated and restated the problem. But admiring the complexity of the problem won’t solve it.

Notably, the ozone rule would attack the “bridge” fuel, namely natural gas, that the earlier versions of the Clean Power Plan envisaged would get the nation from a fossil fuel fleet to one primarily composed of renewables. Between the attempts to ban fracking, the leap made by the final Clean Power Plan that pushes almost exclusively for renewables, and the ozone rule’s affect on oil and gas development (emissions are a key component to create ground level ozone), the stage has been set for an onslaught of anti-oil and gas regulation that would devastate Colorado’s economy.

Colorado faces geographical and topographical challenges with any ground-level ozone measurements due to elevated background ozone levels, as Hickenlooper pointed out. Anthropogenic emissions in other states and Mexico and as far away as Asia (China), wildfires, atmospheric intrusions, and our elevation combine to bring levels of background ozone to the state that can’t simply be regulated away.

***

From the “excellent news” category–carbon tax gets shot down in Carbondale, 61 to 39 percent:

For the so called “carbon tax,” 1,022 voters cast ballots against, while only 637 Carbondale residents voted in favor.

And with more than $3,000 in contributions, the committee supporting the carbon tax raised and spent more money than any single candidate for the board of trustees.

The climate action tax proposed to increase residents’ gas and electric bills in an attempt to promote clean energy projects and reduce energy usage in keeping with the town’s 2020 energy goals.

The climate tax would have been applied uniformly across town, with one set of rates for residents and another for business owners.

Supporters of the carbon tax had estimated that the average household’s utility bills would go up $5 to $7, and the average business would see a $10 to $30 increase.

This carbon/climate action tax would have just added more misery to Colorado’s already skyrocketing electricity rates.

February 4 Colorado Energy Cheat Sheet: Local governments face production-related revenue downturn; more red tape sought for resource development; Wyoming’s cautionary tale

Pushing for bans on fracking or other measures to limit responsible natural resource development will only exacerbate problems at the local level, putting education, infrastructure, and other critical services at risk, on top of the drop noted here in the Denver Post due to commodity prices tanking:

Because 97 percent of Platte Valley’s budget comes from taxes paid on mineral production and equipment — a property tax known as ad valorem — McClain said his district could be looking at a budget reduction between $300,000 and nearly $1 million next school year.

How that plays out in terms of potential cuts or program impacts is yet to be seen, he said.

“You’re always concerned about your folks,” McClain said. “You worry about it taking the forward momentum and positivity out.”

It’s not just schools that are suffering. Municipal budgets, local businesses and even hospitals in mineral-rich pockets of Colorado are watching closely to see how long prices remain depressed.

Combine that with a 72.3 percent drop in severance tax revenue–down to $77.6 million this year compared with $280 million last fiscal year–and you’ll get, in the words of the Post, “the state’s direct distributions of those proceeds to cities, counties, towns and schools will be reduced from a little more than $40 million in 2015 to just $11.9 million this year.”

Nearly 75 percent drop, just from falling oil prices. Put on top of that more red tape, or eliminate the practice altogether, and eventually those figures will head toward zero (no production = no tax revenue).

This is what is at stake when it comes to pushing back against the repetitively dubbed “common sense” regulation that threatens a rather large portion of the state’s economy.

***

Speaking of restrictions:

BRIGHTON — Adams County leaders made it clear Wednesday morning that they won’t support a 10-month ban on new oil and gas activity in urban parts of the county after hearing nearly eight hours of testimony that began Tuesday night.

Commissioner Chaz Tedesco said he wasn’t comfortable imposing a moratorium on an industry that has proved critical to Adams County’s economy. He said he supported hiring an attorney that can make sure the county is making the best deals with industry as possible.

“I want to make the right decision with the right information,” Tedesco said.

His colleague, Erik Hansen, said oil and gas workers are not the villains their opponents make them out to be and that the county has a good site-by-site evaluation system already in place.

“You know what? The folks who work in the industry care about their kids too,” he said.

Those families–the workers and the kids–live in the communities. It may be stunning to anti-energy activists, but those developing and producing the energy that drives your car (gas OR electric), heats and cools your home, keeps your iPads and laptops running, and generally produces an incredible standard of living for you might live right next door. *shudder*

Good on Adams County for rejecting hyperbolic, paranoid nonsense.

***

And not to be outdone by the anti-fracking ballot measures proposed at the state level, Colorado legislators are looking to add more red tape, because enough is never enough, and the Colorado Oil and Gas Conservation Commission’s rulemaking last month did not address those concerns, say energy development opponents:

Democrats in the Colorado House, where that party has a majority, are expected to introduce two measures later this session, one making it easier for surface property owners to collect damages from mineral rights owners if their properties are damaged, and a second measure to give local governments more regulatory authority over drilling within their jurisdictions.

House Speaker Dickey Lee Hullinghorst, D-Boulder, said that second idea is something she highly supports.

“I think this bill would be a very reasonable approach,” she said. “I have always felt that’s where you have to get at, the conflict in property rights.”

Regardless of those measures, the backers of several proposed ballot measures dealing with fracking are still going ahead with their ideas.

Those proponents, who could not be reached for comment, have said they were not satisfied with new regulations approved by the Colorado Oil and Gas Conservation Commission last week. They said those new rules, the result of a special task force established by Gov. John Hickenlooper as a compromise to keep the proposals off the ballot in 2014, didn’t go far enough.

Rest assured, short of the outright ban, anti-energy folks will not back off even if all of the proposed measures are put into place. New development might be blocked, but continuing extraction would still be a target. They will never be satisfied, until all development is 100 percent eliminated.

Don’t take my word for it:

The Sierra Club Rocky Mountain Chapter would like the entire state of Colorado to be 100% renewable, beginning with Denver. Becky English, the executive committee chair for the Sierra Club, responded to an email about a sustainability summit scheduled for early December in Denver:

I would have liked to share that the Sierra Club national board has declared a goal of powering the electric sector by 100% renewable energy nationwide, and that the Rocky Mountain Chapter has adopted the goal for Colorado. I will approach you offline about how best to work toward this goal in Denver.

And that’s just the Sierra Club–see also here and here.

***

Stakeholder meetings or dog-and-pony shows supporting the Clean Power Plan and the state’s agencies dedicated to enforcing the rule (Colorado Department of Public Health and Environment)–the Gazette certainly has an opinion:

Reality struck when the Colorado Department of Public Health and Environment took the show to Brush, a rural eastern plains town where people work hard to earn a buck.

Four of five panel members were cheerleaders for the president’s plan, which has the full support of Gov. John Hickenlooper. Panelist Kent Singer, an attorney and executive director of the Colorado Rural Electric Association, offered the panel’s only balance. He said public utilities and electric cooperatives are supposed to provide reliable energy at a price households, farms, ranches and businesses can afford. The president’s plan, he worries, would impose hardships.

Audience participants crashed the party to explain how eastern Coloradans have invested in hundreds of wind turbines that won’t count toward the proposed standards, as the plan would disqualify assets built before 2013.

State Sen. Jerry Sonnenberg told state officials he represents 21,000 square miles that host more wind turbines than the rest of the state combined, and most would not qualify. He worries about constituents having to fund investments they already made in vain.

“We can look at the lower middle class, the working poor, the poor and the elderly and see how they would be impacted, and how it would make it even tougher for them,” Sonnenberg said. A farmer who spends $10,000 on energy to irrigate a field would take a big hit, the senator explained, at a time when some crop prices have plunged.

State health officials need to get serious about their presentation for the remaining “All Stakeholder” meetings in Pueblo and Craig. This plan poses serious consequences for those who cannot afford haphazard and experimental efforts to control the climate. We need a balance of experts presenting a variety of views, not another panel stacked with support for a political agenda.

Having attended one of the first CDPHE “stakeholder” events back in September 2015, I can assure the reader that comments in favor of the Clean Power Plan ran about 15 to 1, with plenty of others from industry to rural electric co-ops basically pleading for the agency to implement the rule as mercifully as possible.

It’s clear from the first few events that the stakeholder process is nothing more than a three ring circus for advocates like activists and renewable energy businesses to show up and applaud the agency, giving it a rather unnecessary shot in the arm of confidence. Meanwhile, the folks who actually bear the brunt of the rule itself, whether it’s the ratepayer who pays for the energy and the guaranteed profit for the utilities (all stranded assets like coal plants having to be replaced with more expensive energy alternatives), the taxpayer who is on the hook for subsidizing unaffordable and unreliable energy alternatives, the farmers and investors who were sold a bill of goods in years past of being part of a “New Energy Economy” by previous politicians only to be passed over and not counted as renewables anyway . . . the list goes on and on.

The CDPHE process is really illustrative of quite a few economic concepts, from crony capitalism to captive regulation, concentrated benefits vs. dispersed costs, and government intrusion in the free market to pick energy winners and losers. In this case, the winners repeatedly show up and applaud. The potential losers are taken out of the process, and must rely on lawsuits like the multi-state challenge joined by Attorney General Cynthia Coffman, or the much more distant hope of an administrative change in policy due to a shift in the political climate at the Federal level.

***

Turning to updates on the Gold King Mine spill:

DENVER – Southwest Colorado feels forgotten in the aftermath of the Gold King Mine spill, state lawmakers heard Wednesday.

Rep. Don Coram, R-Montrose, expressed the sentiment to a House committee just before the panel killed his legislation that would have allowed the state to file lawsuits against the federal government on behalf of individuals impacted by the spill.

Coram was especially irked by the fact that the measure was assigned to the House State, Veterans and Military Affairs Committee, a committee sometimes used by the majority party to kill legislation deemed unpopular by leadership. Democrats control the House.

The bill died on a 5-4 party-line vote.

“If this (Gold King spill) had happened in a metropolitan area, we would be doing something. But the fact is, in rural Southwest Colorado, we … have the opinion that the Front Range does not care who suffers in rural Colorado,” Coram told the committee.

And while state efforts to provide relief failed, Congressional inquiries into the EPA-caused spill continue apace, with calls for transparency and clarification over the role of the EPA in a report from the Department of the Interior that was supposed to be impartial and independent:

A key report on the Gold King Mine disaster, which poisoned drinking water for three states and the Navajo Nation, is now being questioned by congressional committee and subcommittee chairmen.

New evidence may “contradict” Environmental Protection Agency Administrator (EPA) Gina McCarthy’s “repeated assertions” to the Senate Committee on Environment and Public Works (EPW) “that EPA had reviewed only a [Department of the Interior] press release and had no role in DOI’s independent review” of the Gold King Mine blowout, according to a Wednesday letter to McCarthy.

“Please clarify … that DOI did not have a conflict of interest, that its review would be independent and that EPA officials had no involvement in DOI’s review,” committee Chairman Jim Inhofe and Superfund, Waste Management and Regulatory Oversight Subcommittee Chairman M. Michael Rounds wrote.

The DOI report detailed that the EPA-caused Gold King Mine spill, which sent three million gallons of wastewater into Colorado’s Animas River, was preventable. The report stated, however, events at the site before and after the incident were beyond the investigation’s scope – even though such details were sought by the EPW committee.

We’ll keep an eye on this development.

***

News from our Wyoming neighbors, a cautionary tale of how the current administration’s push to kill coal will likely kill local communities too:

President Barack Obama’s administration has ordered a three-year moratorium on sales of federal coal reserves, and it’s putting a rare mood on folks in Gillette, a ranching-turned-energy town of 32,000: pessimism.

“Most of the time it comes back. This time, I don’t know,” said Bobbie Garcia, watching her daughter summit a two-story climbing structure at the town’s $53 million recreation center largely built with coal money.

Until recently, the Powder River Basin of Wyoming and Montana remained a rare bright spot for the industry. Even as Appalachian mines shut down and cheap natural gas started crowding out coal as a power plant fuel, economies of scale kept the region rumbling.

Massive strip mines sprawled across tens of thousands of acres, much of it in the Thunder Basin National Grassland, produce roughly 40 percent of the nation’s supply of the fuel.

For Gillette and other communities, that means more than 7,000 mining industry jobs. And not just fly-by-night, roughneck gigs, but the sort that sustain families year after year, pointed out Michael Von Flatern, a state senator who has lived in Gillette since the early 1970s.

The sort of jobs that are likely irreplaceable. Also, it’s no easy task replacing 40 percent of the country’s coal, considering that 23 percent of U.S. energy production still comes from that resource. Compare that to 0.5 percent for solar and 2 percent for wind, according to the Energy Information Administration through 2014 (the last full year).

If you want to know what’s headed for Colorado, look north. Or ask the folks in Moffat County about the Colowyo Mine situation from last year.

January 27 Colorado Energy Cheat Sheet: COGCC rulemaking pleases no one; anti-fracking measures disastrous for Colorado economy; pushing back against Clean Power Plan

Even small changes to oil and gas regulations can have deep and damaging effects on Colorado’s economy, according to researchers at the University of Colorado:

A statewide, 2,000-foot buffer zone between drilling rigs and homes, schools and businesses would take a hammer to Colorado’s oil and gas industry, already reeling from low commodity prices, as well as the state’s wider economy, according to a new study from University of Colorado Boulder’s Leeds School of Business.

Such a setback requirement “could result in slower economic growth” for Colorado’s economy as well as state revenue, according to the study released Wednesday.

The study said its forecast on the effects of a 2,000-foot setback included:

Production of oil and gas statewide could drop between 25 percent and 50 percent;
A $6 billion to $11 billion drop in Colorado’s gross domestic product;
A loss of 33,000 and 62,000 jobs between 2015 and 2030;
Loss of $214 million to $428 million in per year in tax revenues from oil and gas companies.

Given that the Colorado Oil and Gas Conservation Commission just concluded a round of rulemaking based on the Governor’s Oil and Gas Task Force recommendations from 2015, new and more onerous regulations like the setback examined by CU researchers or the more dangerous proposed fracking bans and various setback ballot measures could have catastrophic consequences on top of the recent commodity downturns impacting the state.

Anti-energy activists have intimated that even more proposals could be in the offing for 2016:

Larimer County resident Katherine Hall, who testified in favor of local control, said she would not be surprised if a citizen-initiated measure ended up on November’s ballot.

“The final outcome of the rule making does not go far enough to ease the concerns of Colorado citizens,” Hall said.

Remember when this blog said the Oil and Gas Task Force was merely kicking the can down the road?

We’ve made our way down that road, and the can is about ready to explode.

In the near term, the COGCC rules could go into effect in as few as 6 to 8 weeks, subject to review by the legislature and the Attorney General:

Compton said the months of rulemakings were “the most difficult” that he’s been through — a string that included the 2008 wholesale overhaul of Colorado’s oil and gas regulations.

The commissioners voted 5-4 to define “large” oil and gas facilities, the threshold that triggers the communication process between energy companies and local governments, as eight new wells and storage tanks that can hold up to 4,000 barrels of oil and natural gas liquids. The commissioners restricted the rule to large facilities in “urban” areas, defined as 22 buildings within 1,000 feet of the wellsite, rejecting request from some quarters to take the rule statewide.

But the rules appear to exceed the recommendations, and create ambiguities that will only incur more procedural red tape:

The process approved by the COGCC will triple, from 90 days to 270 days, the amount of time needed to get a hearing on a large project before the oil and gas commissioners, said Tracee Bentley, the executive director of the Colorado Petroleum Council, an arm of the American Petroleum Institute.

The final rules also said facilities should be “as far as possible” from existing buildings, a phrase Bentley called “vague and confusing” that would cost energy companies time and money to comply with.

The commissioners also rejected a request that existing surface-use agreements between energy companies and landowners be grandfathered, and allowed to avoid the notification and consultation process.

“We feel the industry brought reasonable solutions to the table that were largely ignored, and the rules still go beyond the recommendations of the task force,” said Dan Haley, president and CEO of the Colorado Oil & Gas Association.

Bringing reasonable solutions and constructive dialogue should be expected of the industry, but the same can’t be said for the forces calling for the end of natural resource development altogether:

Activists addressing a state oil and gas rulemaking hearing this week levied a barrage of accusations and insults toward state officials and even renewed calls to eliminate Colorado’s state agency responsible for regulating oil and gas development.

Speaking at the Colorado Oil and Gas Conservation Commission (COGCC) hearing, Lauren Swain, representing national climate activist group 350.org, largely ignored the fact that the rulemaking was supposed to be the focus of the hearing and instead used her time to complain about the agency. From Swain’s testimony:

“With this new proposed rule, the COGCC has proven once again that it can no longer be considered a legitimate state agency because the COGCC continues to facilitate the pace of hazardous polluting oil and gas drilling and fracking operations near homes and schools subjecting communities to the risks of toxic emissions, spills and explosions.”

But Swain took her testimony even farther by lobbying for disbanding the agency in favor of creating a new agency that would “swiftly” transition the state to 100 percent renewables using the Solutions Project at Stanford as a guide. From Swain:

“The COGCC must be replaced with one or more agencies charged with one, facilitating to protect Coloradans from the harmful impact of oil and gas production and two, to aid and foster Colorado’s swift transition to one hundred percent renewable energy production and consumption using the Solutions Project developed at Stanford University as a guide.”

Up next was testimony from an activist who has previously accused the oil and gas industry of having a “personality disorder” and of being “socially deviant.” This time, Amanda Harper called oil and gas producers a “short sighted, selfish and sociopathic industry.”

Not a lot of balance or reasonable tone, it seems.

Colorado Governor John Hickenlooper offered his comments at an event that saw journalists kicked out and required an open records request to seek audio of the Democrat’s comments–and while he questioned the leverage of the anti-energy groups to get the proposed measures on the 2016 ballot, he surreptitiously argued that the COGCC rules discussed above had, in his opinion as well, gone further than his own Oil and Gas Task Force had recommended:

“I haven’t heard of any funding source for any of them,” Hickenlooper began. “Like the normal, large funders of those initiatives, you know, I haven’t heard of. So, maybe they’ll get on the ballot, but without a lot of money, I don’t think they’re going to do well. I can guarantee you there’ll be money spent showing that, the, the problems associated with any of those initiatives.” (Forum Q & A – 17:05)

Moments later, he added, “Again, we’re going further even than the commission recommended, and in certain cases, to try and give local, local municipal elected officials more, a greater role.”

Further.

We’ll see how that plays out.

***

The Environmental Protection Agency’s Clean Power Plan received a stay of its own last week when the DC circuit refused to grant a stay of the rule, forcing 26 states to appeal the case to the US Supreme Court.

Meanwhile at the Colorado legislature, Sen. John Cooke (R-Greeley) has championed measures designed to keep the implementation of the Clean Power Plan at arms’ length, allowing lawsuits to be completed before the state moves forward, something Coloradans clearly support:

Two weeks into the 2016 legislative session, Sen. John Cooke, a Republican from the heart of the Front Range oil and gas patch in Greeley, has introduced two bills that take aim at the plan, which requires power plants to cut carbon emissions by 32 percent from 2005 levels by 2030, largely by shutting down or converting coal-fired plants to alternative fuel sources.

One of Cooke’s bills couldn’t be more timely. After several state attorneys general, including Colorado’s Cynthia Coffman, failed to win a stay of the plan from a federal court Thursday, Cooke’s Senate Bill 46 jumps into the ring like a tag-team wrestler, working from another angle to stall implementation of the Obama administration plan.

“Well, it wasn’t really a surprise that the court in D.C. struck down the stay request,” Cooke told The Colorado Statesman. “Unfortunately, the bill is more relevant now.”

The “Preserve State Clean Power Plan Options Act” aims to “slow down the implementation process” in part by suspending it “until all [related] lawsuits are done,” Cooke told members of three rural Colorado advocacy groups, including some representing coal mining areas, who were visiting the Capitol Friday.

In effect, Colorado wouldn’t need a stay from a court because it would have passed a stay for itself, written by Cooke.

Cooke’s other bill, SB 61 or “Ratepayer Protection Act,” would require the Colorado Department of Public Health and Environment to pay for costs generated as a result of Clean Power Plan implementation.

***

NEWS ROUNDUP:
Silverton punts on Superfund designation

How the EPA handled Flint, MI water contamination, vs. Animas River spill

Plunging oil prices means lower severance tax revenue in Colorado

Lower gas prices? Let’s raise taxes!

Anti-energy activists oppose coal development on the Western Slope. News at 11.

Trading: Coal extraction for sage grouse habitat

January 20 Colorado Energy Cheat Sheet: Billionaire Steyer plays CO politics; NM files intent to sue EPA over mine spill

Independence Institute associate energy policy analyst Simon Lomax has the latest on green billionaire Tom Steyer’s efforts to tilt the legislative balance in Colorado in 2016:

San Francisco billionaire activist Tom Steyer is getting more deeply involved in Colorado politics than ever before. After spending more than $350,000 on research and polling in the Centennial State last year, two groups aligned with Steyer are now funding political attacks on State Senator Laura Woods (R). Republicans control the Colorado State Senate by a single vote, so unseating Woods could return control of the state legislature to Democrats and reinstate one-party rule under Gov. John Hickenlooper (D) until early 2019 at least.

Read all of his latest piece here.

***

Our neighbors to the south, New Mexico, has filed an intent to sue notice over the Animas River/Gold King Mine spill last year triggered by the Environmental Protection Agency:

ALBUQUERQUE, N.M. (AP) – New Mexico plans to sue the federal government and the owners of two Colorado mines that were the source of a massive spill last year that contaminated rivers in three Western states, officials said Thursday.

The New Mexico Environment Department said it filed a notice of its intention to sue the U.S. Environmental Protection Agency over the spill, becoming the first to do so. The lawsuit also would target the state of Colorado and the owners of the Gold King and Sunnyside Mines.

The New Mexico regulators said they will sue if the EPA does not begin to take meaningful measures to clean up the affected areas and agree to a long-term plan that will research and monitor the effects of the spill.

“From the very beginning, the EPA failed to hold itself accountable in the same way that it would a private business,” said Ryan Flynn, state Environment Department cabinet secretary.

While the Navajo Nation is considering its options for legal action, the state of Colorado’s Attorney General had no comment at this time.

***

Drilling on the Western Slope dropped in 2015:

Garfield County last year held onto the No. 2 spot statewide in terms of oil and gas drilling activity, despite the lowest level of activity since the 1990s.

Mesa County bucked the statewide trend in 2015, however, seeing a sharp increase in drilling and ranking third among Colorado counties.

Falling oil and gas prices resulted in drilling beginning on just 1,437 wells statewide last year, down from 2,239 the prior year, according to Colorado Oil and Gas Conservation Commission data. Much of the decrease occurred in Weld County as companies slowed oil drilling there thanks to falling prices. But the county still continued to see the bulk of activity last year, with drilling begun on 1,084 wells.

Garfield County had just 173 well starts last year, down from 362 in 2014. The last time the county saw less drilling, with 94 well starts, it wasn’t Jeb Bush but his brother, George, who was harboring presidential aspirations, in the year 1999.

***

Lower commodity prices have given Coloradans a bit of temporary relief, offsetting the region’s cost of living increases:

Two conflicting consumer price trends are pushing around the Denver area’s cost of living like a rag doll.

A new federal report Wednesday says that the cost of shelter in the Denver, Boulder and Greeley area jumped 5.8 percent in the second half of 2015 from a year earlier.

And yet, over the same period, energy costs fell 19 percent.

The result: a 1.4 percent year-over-year rise in the area’s overall consumer prices, the cost of a basket of typical goods and services, according to the report from the Bureau of Labor Statistics’ Kansas City office.

Shelter costs outweigh energy costs for most consumers, so shelter plays a bigger role in driving overall consumer prices.

The problem is that commodity prices fluctuate (due to market forces but also to environmental factors like government policies), and this small, offsetting bump for Colorado electricity ratepayers will provide only temporary relief. According to the Denver Business Journal, gasoline is down nearly 26 percent in 2015, with natural gas down nearly 19 percent. Household electricity was off 2.9 percent

On the other hand, gasoline cost 25.9 percent less in late 2015 than it did a year earlier, BLS said, while household natural gas cost 18.9 percent less and household electricity was down 2.9 percent. That’s hardly a dent in the 63 percent increase in residential electricity costs measured through 2014.

***

Job counters will see in a few years if the solar industry’s employment numbers are real (this time, and not an ephemeral mirage like so many other “green jobs”) and not temporary construction jobs and inferred “indirect jobs,” but for now they admit what is giving the solar folks a bump:

A few key developments are driving the job surge in solar.

Businesses and homeowners are eligible for a 30% tax credit if they install solar panels on their property. That’s been in place since 2006 but in December Congress renewed the tax credit for another six years. That lowers installation costs considerably.

The climate change agreement in Paris and the global action plan to limit global warming is also a positive for the clean energy industry.

And the Environmental Protection Agency released plans last year to force states to lower their carbon output.

Not much in the way of actual demand from consumers without government force (EPA’s Clean Power Plan) or government incentive (tax credit), or public pressure (Paris).

The article notes that lower commodity prices for oil and gasoline, and natural gas, are giving solar a “headwind.” Free market effects will do that.

Despite all the supply-side incentives (tax credits, subsidies, and mandates) and the demand-side disincentives (killing coal through the Clean Power Plan) the Energy Information Administration reports that solar was at 4.4 percent of all renewables in 2014 (last full year of data available), and a mere 0.4 percent of total U.S. energy consumption that year.

January 13 Colorado Energy Cheat Sheet: Oil and gas drive Colorado’s economy, but outlook uncertain; Western Slope feels effects of regulation; WOTUS repeal?

Oil and gas development contributes a rather large percentage to Colorado’s economic condition, and new numbers confirm its continued importance to the state:

A new economic report shows that oil and gas development contributed billions to Colorado’s economy in 2014 generating benefits that researchers conclude “impact every citizen in the state.”

Prepared by the Business Research Division of the Leeds School of Business, University of Colorado Boulder, for the Colorado Oil and Gas Association (COGA), the report details how oil and gas development contributed $31.7 billion in total economic impact to Colorado’s economy in 2014, along with “supporting 102,700 jobs and $7.6 billion in compensation.” From the report:

“The oil and gas industry, along with nearly all extraction industries, inherently provides substantial economic benefits due to its integrated supply chain, high wage jobs, and propensity to sell nationally and globally. Much of Colorado’s oil and gas is sold outside of the state, contributing wealth to owners, employees, governments, and schools, all of which are beneficiaries of oil and gas revenues.” emphasis added

Energy in Depth has a complete review of the report’s findings.

The state’s oil and gas development would be crippled if newly proposed ballot measures calling for a ban on hydraulic fracturing and other regulatory limits are passed in 2016.

***

Lower oil commodity prices–a drop from $90 per barrel in 2014 to roughly $30 per barrel in January 2016 means great prices at the pump, but not good news for Colorado’s oil and gas workers:

KUSA – Oil is in an all-out freefall, dropping from roughly $90 dollars a barrel at the end of 2014 to just more than $30 per barrel Tuesday.

It’s enough to make you wonder if the industry is starting to panic.

Colorado Oil and Gas Association president and CEO Dan Haley said when commodities drop, challenges emerge.

“You’ll see some restructuring, you’ll see some tightening of jobs,” Haley said, adding that in 2015, about 2,000 people lost their jobs due to falling oil prices.

The full fallout is not likely to be known when or if the price has hit bottom, or begins to rebound, in the short or long term. Rig numbers are down and students at Colorado School of Mines are worried about the future of the industry, according to the article.

***

A report on job creation tied to a “100% renewables” future is looking a little damaged, according to the folks at Energy in Depth:

A Stanford professor who claims a transition to 100 percent renewables would be a major job creator has scrubbed his website of data showing significant long-term job losses from such a plan, according to a new review by Energy In Depth. Online records show that the professor, Dr. Mark Jacobson, edited his documents just hours after an Energy In Depth report revealed how the transition to 100 percent renewables would cause a net loss of more than 1.2 million long-term jobs, based on data pulled directly from Dr. Jacobson’s website.

The decision to alter his own data could raise additional questions about Dr. Jacobson’s plan for a 100 percent renewables energy system, a plan that has already faced significant criticism from the scientific and environmental communities.

Even if the jobs were there, as Dr. Jacobson contended, not everyone on the left is on board the “100% renewables” bandwagon:

Earlier this week, Dr. Jacobson granted a separate interview to the left-wing blog Daily Kos, which gave him a forum to respond to Energy In Depth’s report. But Dr. Jacobson likely did not anticipate another Daily Kos blogger criticizing his 100 percent renewables plan as impractical. In a comment posted to the article including Dr. Jacobson’s interview, an environmental blogger said that “no electric utility is ever going to adopt Jacobson’s plan” because, among other things, the “wind power component of Jacobson’s plan cannot be relied upon for reliable electric power generation and supply.”

***

Two Colorado Republicans reacted to President Barack Obama’s final State of the Union address and in particular the plight of Colorado’s Western Slope communities hit hard by the administration’s regulations:

U.S. Rep. Scott Tipton, R-Colo., whose 3rd Congressional District trails the rest of the state in the economic recovery, said the president would do well to visit his district.

“I would invite him to visit Craig or Delta,” Tipton said in an interview. “They have lost good-paying jobs and are struggling right now.”

Both communities in Colorado’s 3rd Congressional District have been hard-hit by coal-mine closures. Arch Coal, a major coal supplier and employer on the Western Slope, declared bankruptcy on Tuesday, before the speech.

“The president talked about significant government interference in the marketplace that will most likely imperil jobs on the West Slope of Colorado,” said U.S. Sen. Cory Gardner, R-Colo.

***

Speaking of Arch Coal’s bankruptcy:

Arch Coal Inc.’s bankruptcy filing Monday signals that the coal industry’s shakeout is entering a crucial phase, which will result in more small, unlisted mining companies, record numbers of mines for sale and lower wages for workers.

Over a quarter of U.S. coal production is now in bankruptcy, trying to reorganize to cope with prices that have fallen 50% since 2011, battered by competition from natural gas and new environmental rules. Arch, the biggest domino to fall so far, is trying to trim $4.5 billion in debt from its balance sheet.

Competitors Walter Energy Inc., Alpha Natural Resources Inc., and Patriot Coal Corp. all filed for court protection last year.

But bankruptcies only spell death for current corporate structures, not necessarily the mines they operate. And the U.S. still gets 34% of its electricity from coal, according to the Energy Information Administration, and that number is still expected to be around 30% by 2030. “The question is, what is that 30% going to look like?” says Steve Nelson, chief operating officer at Longview Power LLC, a 700-megawatt coal-fired plant in northern West Virginia.

Market-driven changes are good–the transition from coal-heavy electricity to natural gas is not a problem, and beneficial to the environment–when done without government mandates. Onerous regulations designed to put coal out of commission, from fuel switching initiatives in Colorado to the Environmental Protection Agency’s Clean Power Plan, are not beneficial to the country’s economy and to the individuals and communities impacted by layoffs and dislocation, as well as skyrocketing residential electricity rates.

***

Should be an interesting event and will definitely address some of the impact to Colorado of recent commodity downturns in oil:

By: Vital for Colorado
Event Description
Join us in discussing lifting the U.S. Oil Export Ban and what it means to Colorado. Our esteemed panel includes U.S. Representative Ed Perlmutter (D) CO and U.S. Representative Ken Buck (R) CO, Christopher Guith, U.S. Chamber of Commerce’s Institute for 21st Century Energy, Geoff Houlton, Dir. of Commodity Fundamentals Anadarko Petroleum Corp., John R. Grizz Deal, CEO IX Power Clean Water, and Craig W. Van Kirk, Professor Emeritus Petroleum Engineering Colorado School of Mines. This is a free event but registration is encouraged.

WHEN
Thursday, January 21, 2016 from 5:30 PM to 7:30 PM (MST) – Add to Calendar
WHERE
Colorado School of Mines Green Center – Bunker Auditorium – 924 16th Street Golden, CO 80401 – View Map

The Independence Institute is not affiliated with the event.

***

The EPA’s Waters of the United States rule is facing legislative repeal, subject to President Obama’s veto:

House lawmakers are poised to pass legislation repealing what is probably the Environmental Protection Agency’s (EPA) most hotly contested regulation: an attempt to expand its authority over bodies of water across the country.

The House will vote Wednesday on a bill that would repeal the EPA’s so-called Clean Water Rule under the Congressional Review Act — a law that allows Congress to vote down executive branch regulations. EPA’s water rule has been heavily criticized by lawmakers who see it as a huge expansion of government power and could mean more regulations for private landowners.

“We want them to go back and do a new rule,” Ohio Republican Rep. Bob Gibbs told The Daily Caller New Foundation in an interview. Gibbs sent a letter to House leadership last year asking them to defund EPA’s water rule in the 2016 budget bill.

The Senate passed a bill repealing EPA’s water rule in November, sparking huge outcry from environmentalists who support more federal control over bodies of water. The House is likely to pass the repeal with bipartisan support, sending it to President Barack Obama.

January 6 Colorado Energy Cheat Sheet: fracking foes awaken; legislative session promises energy battles; EPA and Gold King Mine saga

Let’s start with the obvious–the anti-fracking forces have reignited their campaign to ban hydraulic fracturing, and want to do away with property rights too, according to this Gazette editorial:

CREED, an umbrella of sorts for anti-energy activists, wants an outright ban on fracking with a proposal known as Initiative 62. In addition to banning all fracking, the measure would prevent compensation of mineral owners for financial losses incurred by the elimination of fracking.

The measure states, in part: “The prohibition of hydraulic fracturing is not a taking of private property and does not require the payment of compensation pursuant to sections 14 and 15 of Article II of the Colorado Constitution.”

In other words, they want eminent- domain-by-mob without due process or just compensation. The U.S. Constitution, thankfully, prohibits voters from taking private property or negating its value. Voters have no more authority to eliminate mineral rights than to end same-sex marriage. Federal law will prevail.

Initiative 63 would establish an “Environmental Bill of Rights,” suggesting local governments have all sorts of newfound authority to ban energy production on private property. Initiative 65 would impose 4,000-foot fracking setbacks from buildings and homes.

As the editorial correctly point out, these anti-energy measures will drive a wedge between leftwing activists and mainstream Democrats, just as they threatened to do in 2014, before Gov. John Hickenlooper threw his policy Hail Mary to halt any chance of a Dem split.

The Denver Business Journal has a quick rundown of the 11 proposed initiatives.

Which brings us to billionaire activist Tom Steyer. From our new energy policy analyst, Simon Lomax:

Steyer’s track record further suggests he won’t be limited to the presidential contest in Colorado or the effort to reelect Bennet, who served as chairman of the Democratic Senatorial Campaign Committee two years ago. Before holding talks with Colorado’s anti-fracking groups about statewide ballot measures in 2014, Steyer called for a fracking ban in his home state of California, which could only be lifted on a county-by-county basis with a two-thirds popular vote. Steyer’s views are very close to those of anti-fracking groups in Colorado, who have proposed a mix of statewide and local bans for the 2016 ballot. Steyer and Rep. Polis – who championed the 2014 anti-fracking measures before they were pulled – are “kindred spirits,” according to a top adviser to the California billionaire. Steyer has a long history with ballot initiatives in California, and is already backing a 2016 measure in Washington state to impose a carbon tax.

Along with ballot measures, Steyer also has a history of throwing his money into state legislative races. In 2014, for example, he poured money into Washington and Oregon trying to win seats for Democrats. In some cases, NextGen Climate did not spend the money directly – it was given to environmental groups like Washington Conservation Voters and the Oregon League of Conservation Voters. NextGen Climate also gave generously to the national League of Conservation Voters for campaigning in Oregon, Washington and several other states, with the group’s president telling The Washington Post, “There’s not a day that goes by that someone on our team doesn’t talk to someone on the Steyer team.”

Which brings us back to Conservation Colorado. If swaying state legislative races is part of Steyer’s plan, he could not find a better partner than Conservation Colorado. The group spent more than $950,000 on Colorado elections in 2014, and appears to have hit the ground running in 2016. In a little-noticed move, Conservation Colorado gave $10,000 to Fairness for Colorado, a 527 political organization, in September 2015. According to state records, Fairness for Colorado – which focuses on economic issues and social welfare, not the environment – has already spent almost $11,000 with a Denver direct-mail firm.

Simon’s article has tons of links for all the relevant information, plus plenty more on Steyer and Democratic efforts in Colorado in 2015 and 2016.

The fracking battle will also continue in the legislature with liability for earthquakes laid at the feet of resource developers:

Democratic state Rep. Joe Salazar wants to hold drillers responsible for any earthquakes they trigger that cause property damage or physical injury.

Salazar says residents in his Adams County district are worried about a fracking group’s plans to place 20 oil and gas wells in neighborhoods there.

“These were people who were concerned for their children,” Salazar said. “They were concerned for their community. They were concerned about the environment. They’re concerned about their clean water and clean air.”

But state Sen. Ray Scott, R-Grand Junction, says liability would be difficult to prove. He also says that Colorado already has strict environmental guidelines – and he cautions against targeting an industry that provides a great deal of revenue to the state.

“How much longer do you want to stand on the throat of the oil and gas industry to limit that amount of money that’s being generated by the state of Colorado?” Scott said.

But even Rep. Salazar doesn’t think an outright ban on fracking–as some on his side have demanded, will work, and responses to any proposed ban are also in the works:

State Rep. Joseph Salazar, D-Thornton says he doesn’t think increased oil and gas regulation should be handled with constitutional amendments. Nor does he think an outright ban on fracking will fly. But he believes that the Legislature can do more to protect residents from the impacts of drilling.

“An outright ban, that’s just not going to work,” Salazar told The Statesman. “I understand that mineral rights owners have property rights, and that’s a taking. But that doesn’t mean that we can’t be safe about it by studying the effects and implementing good safety measures to ensure that when people want to exercise their mineral rights that they’re not adversely affecting their neighbors.”

State Sen. Jerry Sonnenberg, R-Sterling, said he’s ready to sponsor his own initiative similar to one he backed in 2014 that would prevent any local government that bans oil and gas production from receiving state tax revenues generated by the industry.

“I pushed pretty hard for us not to cave on that for fear that we’d be going down this same path in 2016 that we were in 2014,” Sonnenberg said, referring to the decision to pull two industry-backed ballot questions as part of the 2014 Hickenlooper-Polis compromise. “Rest assured, I will not be silent on this issue. Whatever I need to do, I will be out front.”

***

Other legislative efforts will be focused on the fallout of the Environmental Protection Agency’s Gold King Mine spill:

She [Sen. Ellen Roberts, R-Durango] is also working on bills in the wake of the inactive Gold King Mine spill, in which an error by the Environmental Protection Agency caused an estimated 3 million gallons of mining sludge to pour into the Animas River on Aug. 5.

One proposal comes out of an interim water resources committee that has suggested a resolution that would encourage Congress to pass “good samaritan” legislation, which would reduce the liability associated with private entities conducting mine reclamation work.

Roberts would also like to address jurisdictional issues between states in the wake of Gold King. The incident impacted several states, including neighboring New Mexico. State agencies found it difficult to work with one another because of legal roadblocks. Roberts has proposed legislation that would eliminate some of those barriers through intergovernmental agreements.

“When minutes matter, you need a clearer pathway,” she said.

But deciding anything with regards to the EPA Gold King Mine spill might be difficult, as The Daily Caller explains:

A definitive explanation for what caused the Gold King Mine disaster may never be known if the Environmental Protection Agency is not investigated just as a private company responsible for the calamitous spill would be, according to a former enforcement agent.

The EPA accepted blame for the Aug. 5, 2015, leak that poisoned drinking water in three western states and the Navajo Nation with three million gallons of toxic mining waste, but no officials have been named as responsible or punished. Similar previous environmental disasters, however, were subjects of criminal investigations that led to severe public penalties for those responsible.

“You may not learn about it unless you engage in a criminal investigation,” Heritage Foundation senior legal research fellow and former EPA criminal enforcement special agent Paul Larkin told The Daily Caller News Foundation.

Encouraging.

***

And the EPA isn’t done with mining either, with backing from the usual anti-energy suspects:

The Environmental Protection Agency is proposing toughening its requirements for measuring methane emissions from underground coal mines, a move that would result in some added expenses for testing and could bolster calls for regulating the emissions.

The agency recently unveiled a proposal it says will streamline — and improve the data quality of — its greenhouse gas reporting rule, which applies to a number of industries.

In the case of underground coal mines, it would no longer let them use data from quarterly Mine Safety and Health Administration reports for reporting the volumes of methane vented from mines.

Ted Zukoski, an attorney with the Earthjustice conservation group, praised the proposal as one that will provide better information on Colorado coal mines and address a major source of climate pollution.

“Methane is a greenhouse gas on steroids — it’s up to 80 times more potent than (carbon dioxide) as a heat-trapping gas over the short term. And coal mine methane is a big issue in Colorado because coal mines in the North Fork Valley are some of the gassiest in the U.S. It’s important for EPA — and the public — to have an accurate picture of this pollution, particularly after the climate accord in Paris, which put a major emphasis on transparency around climate pollution,” he said.

***

Another piece from Simon, this time on the Paris climate deal and our own Sen. Michael Bennet:

Of the 26 Senate Democrats who voted with Republicans in 2009 to put the brakes on cap-and-trade, nine are still serving.

Avoiding a debate over the Paris climate agreement and its impact on energy prices, jobs and the economy is a great deal for them—especially U.S. Sens. Patty Murray, D-Wash., and Michael Bennet, D-Colo., who are running for re-election in November 2016. As things stand, they can just hunker down and let the EPA do its thing.

But it’s a lousy deal for the blue-collar and rural constituents who voted for these senators. Their concerns about the economy, energy prices, and jobs were front and center during the cap-and-trade debate, and they should be front and center again after the Paris climate agreement. Instead, these voters have been left in the cold while environmental groups toast themselves and whatever they think was achieved in Paris.

***

Finally, your poop may be keeping the lights on:

The wastewater treatment plant in Grand Junction, Colo., takes in 8 million gallons of raw sewage — what’s flushed down the toilet and sinks.

Processing this sewage produces a lot of methane, which the plant used to just burn off into the air.

The process was “not good for the environment and a waste of a wonderful resource,” says Dan Tonello, manager of the Persigo Wastewater Treatment Plant.

Now, using more infrastructure, the facility refines the methane further to produce natural gas chemically identical to what’s drilled from underground.

The biogas–a delicate term–is renewable.

Colorado Energy Cheat Sheet, Christmas Edition: WY report finds fracking ‘unlikely’ in contamination at Pavillion; EPA spill report gives agency a pass; solar industry acknowledges reliance on tax credits

Energy In Depth picks up on the state of Wyoming’s long-delayed and much-expected report on possible fracking-related contamination in Pavillion, Wyoming as alleged by activists and theorized by the Environmental Protection Agency:

The Wyoming Department of Environmental Quality (DEQ) has just released the results of its 30-month investigation into water contamination in Pavillion, Wyoming, and it has concluded that hydraulic fracturing is unlikely to have been the cause. As the report explains,

“Evidence suggests that upward gas seepage (or gas charging of shallow sands) was happening naturally before gas well development.

It is unlikely that hydraulic fracturing fluids have risen to shallower depths intercepted by water- supply wells. Evidence does not indicate that hydraulic fracturing fluids have risen to shallow depths intersected by water-supply wells. The likelihood that the hydraulic fracture well stimulation treatments (i.e. often less than 200 barrels) employed in the Pavillion Gas Field have led to fluids interacting with shallow groundwater (i.e. water-supply well depths) is negligible.” (emphasis added)

As the Casper-Star Tribune put it,

“Samples taken from 13 water wells in 2014 detected high levels of naturally occurring pollution. Test results showed little evidence of contaminants associated with oil and gas production.”

The cost to taxpayers was fairly large, with the state of Wyoming having to pick up from the EPA’s abandoned efforts to link fracking and contamination:

A 30-month state investigation costing more than $900,000 concludes fracking is unlikely to have contaminated drinking water east of Pavillion but leaves many other questions unresolved about the role natural gas operations may have played in polluting the water.

Samples taken from 13 water wells in 2014 detected high levels of naturally occurring pollution. Test results showed little evidence of contaminants associated with oil and gas production.

Those findings, released Friday as part of a report by the state Department of Environmental Quality, come almost four years to the day since the U.S. Environmental Protection Agency released a draft report tentatively linking fracking to polluted water outside this tiny central Wyoming community.

EPA ultimately turned over its investigation to the state in 2013, fearing, as a Star-Tribune report later showed, that it could not defend its initial conclusion.

Not that these conclusions will dissuade anti-fracking activists, who will continue to cite Pavillion even after the determination the connection was “unlikely”:

The DEQ report left several key questions unresolved. While fracking was ruled out as a likely source of contamination, the DEQ report did not completely exonerate Encana Corp., the Canadian company that operates the Pavillion gas field.

Regulators said more research is needed to determine if gas wells have served as a pathway for contaminants reaching drinking water sources. And they noted additional examination is needed of disposal pits in the area, where drilling mud and cuttings have been stored for decades and could have leaked into the groundwater.

But in a sign of Pavillion’s complexity, they said the area’s unique geology might also be to blame. Pavillion’s gas bearing formations are shallow, permeable and relatively close to formations that produce drinking water.

After 30 months, there is some clarity, but Pavillion will remain a contentious narrative as anti-fractivists push forward across the country and in Colorado next year.

***

Current and former Colorado politicos chime in on the Paris climate change conference:

Former Colorado Sen. Timothy Wirth, known for organizing the 1988 Hansen hearing that helped propel the issue of climate change to national attention, said the Paris agreement marks a turning point in the international community’s commitment to fighting global warming.

“The fact that every country has agreed and nobody is denying the science means that this agreement has a very important science base, which did not occur before, with a real strong consensus around the science,” Wirth said.

Rep. Scott Tipton, R-Cortez, said the Paris agreement would have little realistic impact on limiting some of the world’s biggest polluters and was instead a distraction from more pressing foreign policy issues.

“Once again, the president is attempting to give away the barn by forcing Americans to shoulder the cost for a climate deal that does nothing tangible to limit the world’s biggest polluters like China, India and Mexico,” Tipton said. “The American people would be far better served by an administration that is focused on addressing the national security threats posed by ISIS instead of finding new ways to further punish responsible American energy producers and drive up energy costs on American families.”

***

Looks like the EPA is trying to skip out on responsibility for the poisonous Animas River spill it triggered in southwest Colorado back in August, according to The Daily Signal:

In their report, the EPA claims it was engaged in only “careful scraping and excavation” with a backhoe outside the mine. “Just prior to finishing, a team noticed a water spout a couple of feet high in the air near where they had been excavating.”

The report goes on to say that the spout (that they just happened to notice) quickly turned into a gusher of yellow toxic water.

It seems the EPA would have us believe the mine erupted on its own (which is like arguing, but, Your Honor, I was just carrying the gun when it went off all on its own!).

The EPA’s report goes on to allege that the mine entrance (or adit) was larger than they “anticipated,” and the “fact that the adit opening was about 2 times the assumed 8 to 10 foot maximum adit height resulted in a closer than anticipated proximity to the adit brow, and combined with the pressure of the water was enough to cause the spout and blowout.”

In other words, the mine did it!

Is it possible that the spill was caused by the EPA being careless? Nope. The authors claim they were digging “to better inform a planned consultation” scheduled for nine days later.

Essentially, the EPA claims that the spill was an act of God, rather than its own fault.

More reports are forthcoming, as well as hearings and other activities, including lawsuits. This spill won’t easily recede from the news any time soon:

DENVER – Congressional Republicans are questioning whether the Environmental Protection Agency interfered with a separate investigation into the Gold King Mine spill after an earlier internal review clashed with other accounts of the incident.

In a letter Friday to EPA Inspector General Arthur Elkins Jr., U.S. Rep. Rob Bishop, R-Utah, chairman of the House Committee on Natural Resources, and U.S. Rep. Louie Gohmert, R-Texas, chairman of the Oversight and Investigations Subcommittee, questioned the timing and substance of recent interviews conducted by EPA officials.

The separate report from the inspector general is not expected until early 2016.

“It was a very narrow focus, and it was incomplete, and there are obvious discrepancies …” Bishop told The Durango Herald at a congressional hearing last week at a mine in Idaho Springs, referencing the EPA’s Aug. 24 internal report. “It raises all sorts of questions about what’s taken place. That’s why we’ve got to start over.”

And La Plata County has tentatively agreed to EPA (taxpayer) funded remediation, which the agency still needs to approve:

A 10-year cooperative agreement in which the Environmental Protection Agency would provide $2.4 million for remedial efforts related to the Aug. 5 Gold King Mine spill received unanimous support from La Plata County Board commissioners on Tuesday.

The federal agency has assumed responsibility for a breach at the abandoned mine portal that sent 3 million gallons of mining wastewater into the Animas and San Juan rivers.

EPA officials have until Feb. 1 to approve, amend or reject the agreement, which includes eight tasks to ensure the future health and safety of the county’s residents and environment. Those include continued work with Wright Water Engineers, which has conducted for the county an analyses on the Animas River’s health, independent of the EPA.

Other initiatives include a real-time water-monitoring system to alert the county of changes in water quality, developing a response plan for future environmental incidents and hiring a contractor for community outreach – to explain pre- and post-spill data to the public.

***

Sometimes in the course of celebratory effusion, the proponents of renewable energy–in this case, solar advocates begging for an extension of the 30 percent investment tax credit–spill the beans on how much the industry is completely reliant on government subsidies in order not just to be competitive in their parlance, but actually remain “viable” at all (and in Slate, no less):

The solar investment tax credit—in which owners of solar-panel systems get a 30 percent tax credit—was always meant to be temporary and is set to expire next year. [emphasis added] The Republicans in Congress generally favor fossil fuels over renewables, generally oppose anything President Obama is for, and deny the need to deal with climate change. So as fall settled in, investors began to focus on the fact that by the end of 2016, the solar investment tax credit of 30 percent would fall to 10 percent for commercial systems and disappear entirely for home-based systems.

Another problem: Renewable energy is as much about financial engineering as it is about electrical engineering. For solar to work, investors had to believe that the structures rigged up to build solar would stand up over time… [emphasis added]

Next, Washington delivered—defying the conventional wisdom. Newly installed House Speaker Paul Ryan realized that he’d have to negotiate with congressional Democrats if he wanted to get a budget and tax deal before the end of the year. And as they came to the table, another miracle happened: The Democrats held fast. On Dec. 14, Democrats indicated they would be willing to support the Republican-backed effort to lift the ban on oil exports—but only if the Republicans would consent to measures including a multiyear extension of renewable energy credits. It worked. Last Friday, Congress voted to extend the 30 percent solar investment tax credit through 2019, and then to reduce it to 10 percent through 2022.

That move instantly made the U.S. solar industry viable for another six years. [emphasis added] Investors were elated. SolarCity’s stock popped as details of the budget agreement began to emerge and then soared on its announcement. By Friday, the stock was above $56, up about 117 percent from its November low. SunEdison’s stock closed on Friday at $6.51, up 127 percent in a month. The Guggenheim Solar ETF is up about 30 percent from Nov. 19 through last Friday.

God bless us, everyone.

It will cost us, everyone. Except for the solar companies, who are busy carving up the fatted Christmas goose.

December 17 Colorado Energy Cheat Sheet: Environmental ‘Propaganda’ Agency; electric rate hikes called ‘discrimination’; anti-energy activists promise to ‘ratchet up’ efforts

Some commodity pricing is giving Colorado Xcel ratepayers a temporary reprieve from escalating energy costs:

Xcel said the new rates will result in “significantly lower bills, particularly for natural gas customers, for the second half of the current winter heating season.

“Compared on a year-to-year basis to better gauge the seasonal impacts of weather, both residential and small-business customers’ (natural gas) bills will be approximately 21 percent lower next quarter, when compared to the first quarter of 2015,” Xcel said.

Electricity bills are expected to drop about 5 percent compared to the current quarter, the utility said.

For the most part, Xcel passes changes in commodity prices, and the change in costs associated with supplying power and natural gas, along to customers on a dollar-per-dollar basis.

Commodity prices fluctuate, but the downward trend will be welcome for as long as it sticks around, or until it is offset by higher energy costs elsewhere, due to expensive replacement of baseload power with exotic, renewable energy sources.

***

The next legislative session should feature quite a few oil and gas battles, with one Democratic State Representative queueing up a bill to attack natural resource producers:

State Rep. Joe Salazar, D-Thornton, plans to introduce a bill in the upcoming legislative session that would force oil and gas companies to compensate residents for any loss in property value tied to drilling activities, including damage done by earthquakes linked to deep-earth wastewater injection wells. But state Sen. Jerry Sonnenberg, R-Sterling, has vowed to block the measure in the Senate.

“If it comes to my committee, I’d do everything I can to make it go away,” Sonnenberg said. “Quite frankly, it’s another serious attempt to run oil and gas companies out of business in Colorado… Everyone knows the pro- oil-and-gas bills go to the House to die and that the anti- oil-and-gas bills go to die in the Senate.”

That’s the response Salazar said he expected.

“This shouldn’t be a politicized fight,” he said last Saturday at a Thornton town hall he convened on the issue. “I believe we (in state government) need to give up some of the power to local governments. They need to be able to police these industries in their area.”

The benefit of a divided legislature is that extreme bills like this will likely not make it too far in the opposing chamber. But the bill will still be heard, and we expect some rhetorical fireworks over legislation similar to this.

***

Anti-energy activists in our state plan to “ratchet up” their efforts beyond legal means in the near future:

The leader of a national activist organization behind ban-fracking campaigns in Colorado, Ohio and elsewhere is calling on activists to “ratchet up” civil disobedience and begin “filling up jails.”

The comments are from Thomas Linzey, founder of the Community Environmental Legal Defense Fund (CELDF) in an interview he did with Chris Hedges’ Days of Revolt. From the interview:

HEDGES: “Well, you have talked about it as a kind of military operation. Explain what it would look like.”

LINZEY: “Well, I think it means thinking about civil disobedience differently than we’ve thought about it before. So it’s not just to make a moral or ethical statement; it’s actually aimed at stopping the project itself. And that means, I think, successive days. It means rotating people through. It means bringing people in from other places. It means filling up jails.” (emphasis added)

Linzey went on to suggest that the law isn’t really important here:

“I mean, our resistance has to ratchet up, the opposition has to ratchet up our stuff to a point where it’s actually actively interfering with these projects, because if you don’t do that and you rely entirely on the legal process and the legal process is so stacked against you in terms of what municipalities can and can’t do, that at that point you have no other option but to engage in that type of action.” (emphasis added)

Growing frustration on the part of anti-energy activists seems to be fueling (pun intended) a sense of urgency. We hope this amounts to nothing more than bravado, but hope that Colorado’s natural resource developers–our neighbors–stay out of harm’s way.

***

The Environmental Protection Agency? How about the Environmental Propaganda Agency–says the Government Accountability Office:

Yesterday the Government Accountability Office issued a report concluding that the Environmental Protection Agency (EPA) violated federal law in its use of social media to promote its controversial “WOTUS rule,” redefining the scope of the “waters of the United States” subject to federal regulation under the Clean Water Act. Specifically, the GAO concluded that the EPA violated express limits on the use of appropriations for indirect or grassroots lobbying, and that in doing so, the agency violated the Antideficiency Act.

According to the GAO, the EPA used various social media platforms, including Thunderclap, to develop support for its proposal to expand and clarify the scope of its own regulatory jurisdiction and combat opposition to the rule. The EPA also used social media communications to promote materials supporting the WOTUS rule by environmentalist advocacy groups, including materials that were clearly designed to oppose legislative efforts to limit or block the rule. The GAO labeled these efforts “covert propaganda.” The New York Times had previously documented some of the EPA’s actions.

***

Good legislation is often larded with bad–pork, paybacks, and wheeling-dealing that makes the whole thing a whole lot less palatable–and the proposed extension of the wind production tax credit and the investment tax credit for solar has the renewable industry singing the praises of the proposed lifting of the oil export ban:

Michael Zarin — head of external communications for Vestas — said via email that the company is “pleased” by the proposed extension.

“As currently structured, the extension and phase-out plan would give the industry the longer-term certainty that we’ve been seeking,” Zarin said. “Together with wind energy’s natural competitiveness against other power generation sources, the PTC extension agreement would help ensure a solid future for wind energy in the U.S.”

The solar industry’s investment tax credit, currently a 30 percent credit for commercial, residential and utility-scale solar power systems, also would be extended and phased down through 2022 under the proposal.

The credit, as proposed, would stay at 30 percent through 2019, and then fall to 26 percent in 2020. It would drop to 22 percent in 2021 and 10 percent in 2022. The bill also offers a commence-construction clause that would extend the credit to any project in development started before the end of 2021 and be finished before the end of 2023.

“We are delighted a five-year extension of the Investment Tax Credit has been included in the omnibus bill,” said Rebecca Cantwell, executive director of the Colorado Solar Energy Industries Association. “We worked hard to get it included, and are working hard to make sure it passes.”

***

Mining for a photo-op to discuss the fallout of the EPA’s Gold King Mine spill:

IDAHO SPRINGS – The first-ever congressional hearing inside a mine was held Monday, offering a dramatic image of the impact the Gold King Mine spill has had on policy talks.

The Subcommittee on Energy and Mineral Resources held its field hearing inside the Edgar Mine in Idaho Springs, where the panel discussed legislation aimed at training and recruiting engineers to work on mining reclamation efforts.

“This is weird,” said U.S. Rep. Rob Bishop, R-Utah, chairman of the House Committee on Natural Resources, who made his remarks while wearing a hard hat and looking up at rock formations inside the mine, which is used for training by the Colorado School of Mines.

Discussions around mining reform gained momentum after the August Gold King Mine spill, in which an estimated 3 million gallons of old mining sludge poured into the Animas River, turning it a mustard-yellow. The river tested for initial spikes in heavy metals.

***

Efforts to increase electricity rates in the southwest part of the state were sustained, as a measure to push back failed, with opponents of the rate hike calling the residential-focused increases “discrimination”:

An effort to reverse a decision last month to increase residential electric base rates failed at the La Plata Electric Association’s meeting on Tuesday with a split 6-6 vote.

In November, the board approved on a 6-5 vote a new rate structure that will cost local residents about $5.25 more per month on their electric bills, based on usage. Commercial and industrial users will see an estimated 4 percent decrease on next year’s bills.

However, Tuesday’s main point of contention was last month’s decision to raise the residential base rate from $20.50 to $21.50 a month, which had several board members concerned that the increase would “exacerbate inequality” in the region.

“If we continue to do this, we are harming and discriminating more and more against our members,” said board member Jeff Berman in reference to the 60 percent increase in base charges over the last five years. “I cannot support a base charge increase that exacerbates inequality and discrimination.”

November 5 Colorado Energy Cheat Sheet: Hickenlooper seeks CO Supreme guidance on Coffman EPA lawsuit; divestment movement is back at CU; WOTUS opposition in U.S. Senate

November 5, 2015 by michael · Comments Off
Filed under: CDPHE, Environmental Protection Agency, Legislation, PUC, regulations 

Governor John Hickenlooper finally filed his request with the Colorado Supreme Court to determine which office–governor or attorney general–has the final say in Colorado’s lawsuit against the Environmental Protection Agency’s Clean Power Plan. Attorney General Cynthia Coffman, joined the lawsuit with approximately two dozen other states in October.

Via the BARN blog:

Gov. John Hickenlooper today filed a petition asking the Colorado Supreme Court to issue a legal rule that the governor, not the attorney general, has the ultimate authority to decide on behalf of the state when to sue the federal government in federal court.

“The attorney general has filed an unprecedented number of lawsuits without support of or collaboration with her clients,” said Jacki Cooper Melmed, chief legal counsel to the governor. “This raises serious questions about the use of state dollars and the attorney-client relationship between the governor, state agencies and the attorney general.”

From the full petition:

Governor Hickenlooper petitions this Court under Colorado Constitution art. VI, § 3, and C.A.R. 21 for a rule requiring Attorney General Coffman to show cause regarding her legal authority to sue the United States without the Governor’s authorization. In this Petition, he requests a ruling on the Governor’s and Attorney General’s respective authority under the Constitution and laws of Colorado to determine whether the State of Colorado should sue the United States. The Governor asks this Court to issue a legal declaration that (1) the Governor, not the Attorney General, has ultimate authority to decide on behalf of the State of Colorado whether to sue the federal government, and (2) the Attorney General’s lawsuits against the federal government without the Governor’s authorization must be withdrawn.

No doubt this request will remain at the top of the news between the Democratic Governor and the Republican Attorney General as the hotly contested and controversial Clean Power Plan moves forward despite pending lawsuits. The EPA has already schedule a series of public hearings on the CPP implementation at four locations over the next two weeks in Pittsburgh, Atlanta, Washington, DC, and Denver.

How contested is the rule? At least twenty-six states have filed lawsuits–24 in a joint lawsuit, with two other states filing separately–while 18 states have filed a motion on behalf of the EPA and the Clean Power Plan.

The Clean Power Plan has split the country in half. More to come.

***

Earnest but misguided students at the University of Colorado have resurrected their divestment push and will harangue the CU Board of Regents with the usual mix of ideology and theater today, even after being voted down 7-2 back in April:

Also on Thursday, the student group Fossil Fuel CU is planning an “action” toward the end of the board’s meeting, complete with banners, signs, posters and singing. That’s likely to be a recurring theme again this year.

“The folks who don’t stand with us anticipated that that block in process would dishearten student leaders or stifle the campaign we’ve been building for two years, but it actually did quite the opposite,” said P.D. Gantert, who is taking time off from CU classes to organize divestment movements across the southwestern United States. “It emboldened us to take even more risky and loud actions to stand up for what we know is the change that needed to happen at our university.”

Here’s what I had to say back in April during a board meeting and hearing on the divestment question, as quoted by the Daily Camera:

“The anti-fossil fuel campaign is really a national campaign run by far-left environmental activists,” said Michael Sandoval of the Independence Institute, a free-market think tank in Denver, during a board meeting in April. “To be blunt, this is a national campaign using college students to shut down one of Colorado’s leading job creators.”

Schools from Swarthmore to Harvard, hardly conservative bastions, have rejected the arguments in favor of divestment. Our own spring intern, Lexi Osborn, took down the divestment arguments in an op-ed for the Greeley Tribune back in February:

Divestment activists appear willing to jeopardize university assets in the name of saving the planet. Yet they may not realize how ineffective their project would be.

A new report by the American Security Project found that university divestment from fossil fuels will have no mitigating effects on carbon emissions. Divestment does not decrease the demand for fossil fuels; it merely moves the money around. The campaign additionally ignores the complexities of transitioning to a “renewable and emission-neutral economy.”

Another study by University of Oxford found that, even if all capital were divested from university endowments and public pension funds, it would be such a small percentage of the market capitalization of traded fossil fuel companies that the divestment would barely impact the fossil fuel industry.

But the divestment of fossil fuel assets might not be the real goal of the campaign. In a video interview, Klein states that they are using the movement to create a space where it is easier to tax, nationalize and undermine oil companies. She claims that the people have a right to the oil industry’s “illegitimate” profits to make up for the crisis created by this sector.

***

The U.S. Senate moved beyond court injunctions on the EPA’s stalled Waters of the United States rule this week, with Republicans pushing forward on a repeal measure and another calling for revisions, with the former facing a veto from the Democratic administration, and the latter falling to Democratic opposition in the Senate itself:

“Coloradans know when they’re getting soaked,” Colorado Sen. Cory Gardner, a Republican, said following votes on Tuesday. “This rule is so poorly written and ill-conceived that multiple federal judges have put halts on its implementation.”

The resolution that passed in an effort to essentially repeal the rule fell under the Congressional Review Act, which allows for a simple majority to disapprove of any regulation. It passed Wednesday 53-44. The White House has already issued a veto threat.

The measure calling on the Environmental Protection Agency to rewrite the water rule required a procedural vote to advance. But it fell three short of the 60 votes needed, with Democrats leading the effort to stop the bill.

Gardner supported a rewrite in order to enact stronger state and agricultural protections with more input from local communities. He also supported the resolution eliminating the rule.

“The WOTUS rule is a classic example of federal overreach, giving the EPA authority to regulate ponds, ditches and tiny streams across Colorado and the West,” Gardner said.

Sen. Michael Bennet helped quash the rewrite measure.

***

The ongoing battle between the city of Boulder and Xcel Energy received clarification from the Public Utilities Commission this week.

***

Despite production records, Noble Energy sees losses in the third quarter due to lower commodity prices, and will likely trim staff numbers later this month.

October 29 Colorado Energy Cheat Sheet: Hickenlooper vs. Coffman over EPA lawsuit; EPA spill report short on info says New Mexico; Frack or Treat

October 29, 2015 by michael · Comments Off
Filed under: CDPHE, Environmental Protection Agency, Legal, Legislation, PUC, regulations, solar energy, wind energy 

Attorney General Cynthia Coffman’s decision to challenge the Environmental Protection Agency’s authority to implement the Clean Power Plan has initiated a constitutional battle in the eyes of Governor John Hickenlooper:

Gov. John Hickenlooper said Monday he will seek the state Supreme Court’s opinion on the legality of Attorney General Cynthia Coffman’s lawsuit to stop implementation of the Clean Power Plan.

“This notion of everyone suing all the time every time you disagree with a specific remedy, a specific statute, is part of what makes people so frustrated with government,” Hickenlooper, who supports the plan, said in a meeting with The Denver Post’s editorial board.

“Except in very rare circumstances, generally the governor is supposed to make that decision in concert with the attorney general,” Hickenlooper said of the lawsuit. “But the governor should have that final say.”

Hickenlooper’s office pushed the issue further, saying the AG’s actions “just gets in the way” of state plans to cooperate with the CPP:

“The statute that we’re looking at speaks of prosecuting and defending on the request of the governor,” said Jacki Cooper Melmed, Hickenlooper’s chief legal counsel, citing Colorado’s revised statutes, title 24, article 31, part 1.

Cooper Melmed said she is worried about conflicts as some Coffman deputies work with Hickenlooper’s administration to implement the plan while others in the attorney general’s office try to quash it.

“This just gets in the way,” Cooper Melmed said of the lawsuit. “There’s no wall really high enough to allow these two things to happen out of the same office.”

Coffman, for her part, said she was “disappointed” in the Governor’s decision.

Former Colorado Attorney General Gale Norton called Hickenlooper’s stance “unusual” when it comes to the relationship between AG and Governor, even when representing opposing parties:

“For the governor to try to challenge in this way is unusual,” Norton said.

In almost all cases where a governor challenges an attorney general, Norton said, rulings are in the attorney general’s favor.

“The attorney general represents the state and not the governor,” Norton said. “The attorney general is elected to provide independent representation of the state’s interest.”

The Pueblo Chieftain and the Colorado Springs Gazette support Coffman’s lawsuit, while the Denver Post welcomes the clarification that the Colorado Supreme Court’s advice might bring.

Steamboat Today has a great roundup of other reactions for and against the lawsuit.

***

It’s not just states suing the EPA over the Clean Power Plan–at least 26 states filed almost immediately after the ruling was published last Friday–but other lawsuits are on their way from the U.S. Chamber of Commerce, National Rural Electric Cooperative Association and National Association of Manufacturers.

The EPA, meanwhile, is touting its flexibility–a “wide range of choices”–in allowing states to file extensions:

Screen Shot 2015-10-29 at 2.35.42 PM

***

Taking another crack at busting the CPP progress, this time using pre-existing Congressional review legislation:

Lawmakers opposed to the Obama administration’s climate rule for power plants are moving to block the regulations from taking effect.

Several senators will offer Congressional Review Act (CRA) resolutions Monday that seek to stop the Clean Power Plan. Senate Majority Leader Mitch McConnell (R-Ky.), a longtime opponent of carbon regulations for the power sector, will schedule a vote on the resolutions soon after they come out.

“I have vowed to do all I can to fight back against this administration on behalf of the thousands of Kentucky coal miners and their families, and this CRA is another tool in that battle,” McConnell said in a statement.

The Congressional Review Act gives lawmakers the ability to end an executive branch regulation through an act of Congress.

***

Communities around Colorado continue to struggle with mine runoff, the August EPA spill in southwest Colorado not withstanding:

Toxic mines hang over this haven for wildflowers, contaminating water and driving residents — like counterparts statewide — to press for better protection.

A local group went to federal court this month seeking long-term assurances that a water-treatment plant will always remain open as the collapsed tunnels and heaps of tailings leak an acid mix of heavy metals: arsenic, cadmium, zinc and others.

State data show these contaminants reaching Coal Creek — the primary water source for Crested Butte and the Gunnison Valley’s green pastures — at levels exceeding health standards.

“A lot of people are nervous,” said Alli Melton of High Country Conservation Advocates. “We’d like to get it as clean as possible.”

But the EPA isn’t being all the helpful, as the Interior Department inspector general report on the Gold King Mine/Animas River spill concluded, as the U.S. Chamber points out:

These two quotes from the report illustrate just how careless EPA was:

EPA has “little appreciation for the engineering complexity.”

“[T]here appears to be a general absence of knowledge of the risks associated with these [abandoned mining] facilities.”

Even EPA’s internal investigators didn’t hold back on the agencies irresponsibility. Its initial review concluded the spill was “likely inevitable,” but the agency wasn’t prepared to contain a spill before digging into the mine.

That isn’t much consolation for the folks in Colorado, New Mexico, Utah, and the Navajo Nation affected by the spill, as New Mexico’s top environmental watchdog Ryan Flynn said, quoted again by the Chamber:

While the report reveals that an EPA decision was made to refrain from validating the flawed water level estimates with a previously used successful procedure (using a drill rig to bore into the mine from above to directly determine the water level of the mine pool prior to excavating the backfill at the portal); the report says absolutely nothing about who made the decision to fly by the seat of their pants, by digging out the closed Gold King Mine tunnel based on un-validated estimates of what volume and pressure of contaminated water would be violently released.

Here in New Mexico, we are already quite clear on the fact that EPA made a mistake, as the DOI’s report underwhelmingly reveals. What we were wondering, and hoped the report could tell us, is why EPA made the mistake, and who at EPA made the decisions that authorized dangerous work to proceed based on un-validated estimates. It is shocking to read the DOI’s “independent investigation” only to find that it overlooks the who, the how, and the why. [emphasis added]

***

How big are subsidies for electric cars? Without the $5,000 tax credit in Georgia, the state saw sales of electric vehicles plummet nearly 90% in just two months:

According to Georgia car registrations, sales shot up as electric car buyers rushed to take advantage of the tax credit before it expired. But the numbers declined sharply in July and took a swan dive in August — the most recent month tabulated:

electric-vehicle-sales-in-Georgia-in-2015-data-compiled-by-Don-Francis

The decline from 1,338 in June to 148 in August represents a drop of 88.9 percent.

Read the rest of this excellent Watchdog article here.

***

It’s almost Halloween, so we’ll end on a spooky anti-energy note from Energy in Depth:

Screen Shot 2015-10-29 at 3.10.38 PM

The Community Environmental Legal Defense Fund (CELDF) has been waging an extreme campaign to ban fracking through so called “Community Bill of Rights” ballot initiatives, especially targeting communities in Colorado, Ohio, and Pennsylvania. The group has already forced taxpayers to pay tens of thousands of dollars to defend their illegal ordinances and it is now planning to hit communities in California, Oregon, New Hampshire and Washington State. In fact, as Energy In Depth’s new video shows, this Halloween, CELDF’s extreme (and expensive) campaign could be coming to a ballot box near you.

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