Colorado March 14 Energy Cheat sheet: Unencumbered from Clean Power Plan mandates, Hickenlooper opts to put Colorado in fiscal vulnerability; energy rate-payers are feeling the burn; environmental mandates make affordable housing as unaffordable as ever
Filed under: Environmental Protection Agency, renewable energy
When the Supreme Court issued a stay of the Clean Power Plan, state leaders should’ve celebrated; our weighty budget crisis just got a little lighter with costly energy mandates no longer imminent. Gov. Hickenlooper’s inexplicable decision to self-inflict these budget hits disappoints.
“One thing is clear: Any further effort to develop a state plan, full or partial, is a waste of taxpayer money. At a time when the state is facing a budget crisis, the agency’s position becomes even more untenable. Colorado’s unbridled zeal to charge on, absent the necessary certainty from the federal courts, coerces power providers to participate in an expensive process if only to ensure they don’t get run over.
Moreover, the benefits of developing new carbon regulations are nil, especially if Colorado proceeds on a piecemeal, stand-alone basis. Even if fully implemented, the federal Clean Power Plan would lower global temperatures a mere 0.02 of a degree — not enough to budge the needle. Rising sea levels? They’d be reduced by the thickness of two sheets of paper.”
And there’s no doubt that citizens are paying substantially higher rates for energy. Independence Institute energy analyst, Michael Sandoval, talks energy rates on-air with KOA’s Mandy Connell, confirming what we all have been suspecting: Colorado energy rates across all sectors (transportation, electricity, etc) have skyrocketed 67%, double the rate of inflation
Is there any escape from the tentacles of regulators? Not in the housing sector. After many billions of dollars were squandered on electric vehicle companies that flopped, Denver city leaders are mandating homebuilders install EV chargers in new home construction. Homebuilders’ frustrations and concerns are given little to no weight:
“The Denver planning department’s proposed changes were spurred by the 2015 update to the International Code Council’s suggested rules, which serve as a sort of industry standard, along with Denver-specific amendments.
Those include the new requirement for electric vehicle-supporting conduits and panels in garages for new houses.
Initially, that change faced opposition, especially from homebuilders concerned about the added cost in construction.”
The homebuilder’s concerns were never mitigated, making Denver’s homebuilders the latest in Colorado to voice concerns about costly regulatory layers and fees in the housing sector.
In the good news category, the Greeley city council will allow a 22-well oil and gas facility to go forward, overturning a decision made by its planning commission to deny the operation. Initially, the planning commission unanimously sided with protesting neighbors, but the city council determined that the property owners legally are allowed this use of their land, and may access the underground assets.
“After six hours of testimony on Tuesday, the Greeley City Council overturned its planning commission, allowing a 22-well oil and gas facility in west Greeley — a move that aligned with the city’s own development code rather than public sentiment.
Hundreds of people turned out for the hearing, an appeal by Denver-based Extraction Oil and Gas, of the Greeley Planning Commission’s January decision to deny its project, 6-0. The hearing filled the hearing room at the Greeley-Evans School District 6 administration building, as well as its lobby, where almost 300 chairs were brought into accommodate the crowds, filled with neighbors against the project and hundreds of oil and gas workers wearing stickers that read, “Oil and gas feeds my family and yours!”
But hours of often emotional testimony couldn’t negate one fact: this was a property rights issue…”
Independence Institute Future Leader Sarah Huisman prepared this edition of Cheat Sheet.
October 29 Colorado Energy Cheat Sheet: Hickenlooper vs. Coffman over EPA lawsuit; EPA spill report short on info says New Mexico; Frack or Treat
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.”
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:
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:
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:
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.
Filed under: Archive, Hydraulic Fracturing, Legislation, renewable energy
Current through January 24, 2014
Reform defeated: SB14-035 Renewable Energy Standard Repeal *postponed indefinitely*
Senate Bill 35, introduced by State Sen. Ted Harvey, would have repealed “substantially all of the provision enacted by Senate Bill 13-252″ by returning the renewable portfolio standard to 10 percent from 20 percent for rural cooperative electric associations, among other cuts.
The bill, sent to the State, Veterans and Military Affairs committee was killed Wednesday on a 3-2 party line vote. The SVMA committee has been dubbed the “kill committee” by the minority party, where bills are sent to receive a quick despatch.
Comment: As this bill has been killed, the Independence Institute will examine a similar bill, proposed by State Sen. Ray Scott on Wednesday that would reduce the RPS requirement from 20 percent to 15 percent.
SB14-011 Colorado Energy Research Authority
Among other provisions housekeeping provisions, SB 11 “substitutes ‘clean energy’ for ‘renewable energy’” and authorizes additional monies in the amount of $2 million to create an “energy research cash fund” (ERCF) for the next five fiscal years.
Comment: Substituting “clean” for “renewable” energy is noteworthy. The fiscal note estimates a cost of $2,000,000 annually for the next five years for the ERCF from the state General Fund.
SB14-028 Expand Electric Vehicle Charging Station Grants *Passed Senate second reading with amendments*
SB 14 “expands the existing list of persons and entities that are eligible to receive moneys from the electric vehicle grant fund, administered by the Colorado energy office (CEO), by adding private businesses and nonprofits and allowing the CEO to consider the extent to which grant applicants’ proposed charging locations serve existing vehicles or encourages the acquisition of new vehicles.”
Comment: The bill’s fiscal note estimates that the impact will be “minimal” with grant monies collected under HB13-1110 providing the resource stream. Funding will go to as many stations as possible, but could include fulling funding those installations “in a location that is especially advantageous for support of the electric vehicle market.”
SB14-082 Renewable Energy Standard Adjustment for Cooperative Electric Associations
SB82: “In the section of the renewable energy standard statute setting aside a specific portion of electric generating capacity that cooperative electric associations must meet through distributed generation, the bill:
• Eliminates the disparity between cooperative electric associations serving fewer than 10,000 meters and those serving 10,000 or more meters;
• Establishes a uniform 0.5% of total retail electricity sales as the target percentage for distributed generation; and
• Allows the 0.5% to be measured collectively among these associations as a group rather than individually.”
Comment: Fiscal note estimates minimal impact.
SB14-103 Phase In High-Efficiency Water Fixture Options
SB103 “prohibits the sale of lavatory faucets, shower heads, flushing urinals, tank-type toilets, and tank-type water closets on and after September 1, 2016, unless they are a watersense-listed plumbing
Comment: No fiscal note. The bill defines a “watersense-listed plumbing fixture” as:
• Tested by an accredited third-party certifying body or laboratory in accordance with the federal environmental protection agency’s WaterSense program;
• Certified by such body or laboratory as meeting the performance and efficiency requirements of the program; and
• Authorized by the program to use its label.
The bill would expand the current requirements for “water-efficient indoor plumbing fixtures” which apply currently to builders of new homes, new state buildings, and new and renovated residential, office, and commercial buildings, but at a much lower and “less stringent” standard than the one defined by WaterSense.
HB14-1012 Advanced Industry Investment Income Tax Credit
HB1012 “repeals the Colorado innovation investment tax credit and replaces it with the advanced industry investment tax credit.” The tax credit would be available through the end of 2017 for “an equity investment in a qualified small business from the advanced industries, which consists of advanced manufacturing, aerospace, bioscience, electronics, energy and natural resources, information technology, and infrastructure engineering.” The tax credit would equal 25 percent of the investment and up to 30 percent if the business “is located in a rural area or economically distressed area.” Maximum tax credit would be $50,000 for a single tax credit, and up to $2 million per calendar year, with rollover.
Comment: No fiscal note at the present time.
HB14-1030 Hydroelectric Generation Incentive
HB1030 would “promote the construction and operation of hydroelectric facilities in Colorado” by providing incentives for additional installation and elevating community hydroelectric energy facilities “into the community solar garden statute.”
Comment: The bill’s fiscal note estimates a cost of less than $2,500 per year. The hydroelectric power in question would be targeted at those “small hydropower projects of 30 megawatts or less” sited in “streams, diversion ditches for irrigation, or existing dams.”
HB14-1064 Severance Tax Distribution To A Local Government That Limits Oil And Gas Extraction *postponed indefinitely*
HB1064 “prohibits any local government that has a moratorium or permanent prohibition on the extraction of oil and gas from receiving more direct distributions or grants and loans than the local government received in the fiscal year during which the moratorium or permanent prohibition was enacted.”
Comment: The restriction would be lifted in the following fiscal year if a county or municipality rescinds the moratorium or permanent prohibition. In the meantime, the “moneys that would otherwise have been distributed to the county or municipality are redistributed on a pro rata basis to all other eligible counties and municipalities.” The fiscal note puts a total price tag of approximately $40,000 over the next two fiscal years.
In other words, the bill would properly restore balance between counties and municipalities who choose to limit oil and gas extraction and those that do not, as the localities instituting prohibitions should not benefit from increased activities elsewhere by matching severance tax revenues to activities permitted.
**Bill postponed indefinitely, 7-6 party line vote:
Jonathan Singer, D-Longmont, said. “My community is downstream and downwind from oil and gas operations and we feel the public health impacts of fracking regardless of existing fracking bans.”
Sonnenberg presented his proposal as a measure of fairness, ensuring that cities don’t benefit financially from a practice they’ve banned and that those communities that do allow fracking benefit from more of the severance tax revenue.
“Passing this bill would have directed a higher percentage of severance tax funds to communities that help provide for the energy needs of our state,” said Sonnenberg.
“I am disappointed the Democrats failed to see the importance of providing these communities additional revenue to support the oil and gas industry.”
HB14-1067 Renewable Energy Electric Standard REAs Move to 2025
This renewable reform bill, HB1067, “changes the target date to achieve the renewable component of the energy generation portfolio of retail cooperative electric associations [CEA] serving 100,000 or more customers, and qualifying wholesale utilities” from 2020 to 2025.
Comment: The fiscal note indicates a minimal impact. CEAs required to comply with the 20 percent renewable energy standard by 2020 would need to meet step-change adjustments that increase from 6 percent in 2015-2019 to 20 percent in 2020 would see a five year extension for meeting requirements. Measures available to comply with the requirement include development of “eligible generation facilities,” entering into power purchase agreements with “an eligible energy generation facility,” or purchasing “existing renewable energy credits”–each of which, the fiscal note determined, would involve “additional costs” for the CEA.
The Independence Institute will also examine any additional energy bills introduced this session as they become available. This bill survey, completed on January 10, did not indicate any bills on hydraulic fracturing.
HB14-1113 Electric Renewable Energy Standard Reduction
HB1113 orders the public utilities commission to establish electric resource standards, or minimum percentages of electricity that electric service providers “must generate or cause to be generated from recycled energy and renewable energy resources.” This bill moves the current required minimums from 20 to 15 percent until 2019, and from 30 to 15 percent for 2020 and subsequent years. It also reduces the required minimum for rural electric coops to be reduced from 20 to 15 percent for 2020 and in the years following.
Comment: No fiscal note. This bill looks to challenge provisions from last year’s SB252, while also leveling all required electricity standards to be a flat 15 percent for both investor-owned and rural electric cooperative associations from 2020 and thereafter. Step-increases mandated by earlier bills are voided and returned to a standard 15 percent.
HB14-1138 Renewable Energy Standard Add Hydroelectric to Eligible
HB1138 “amends the definition of ‘renewable energy resources’ that can be used to meet the state’s renewable energy standard to include hydroelectricity and pumped hydroelectricity.”
Comment: Fiscal note indicates minimal impact. The impact on state policy, however, could be quite large. Adding hydroelectric and pumped hydroelectric electricity to be added to the state’s list of eligible energy resources for meeting Colorado’s renewable energy standard “reduces the amount of energy required to be generated from other eligible resources (principally wind),” according to the bill’s fiscal note. This could affect not only state agency and local government electricity rates, but those of ratepayers statewide as well.
HB14-1150 State and Local Government and Federal Land Coordination
HB1150: “The bill creates the division of federal land coordination in the department of local affairs to address federal land decisions in Colorado that affect the state and local governments. The chief coordinator is the head of the division and is required to form a federal land coordination task force to study certain federal land decisions. The department of agriculture, the department of natural resources, the Colorado tourism office, the Colorado energy office, and the office of economic development are required to assist the division at the request of the chief coordinator. Based on task force findings, the chief coordinator may recommend that a local government receive a grant for research and analysis to form a coordinated response to a federal land decision.”
Comment: No fiscal note.
HB14-1159 Biogas System Components Sales and Use Tax Exemption
HB1159: “The bill exempts from state sales and use tax components used in biogas production systems. Local governments that currently impose sales or use tax on such components may either continue to do so or may exempt them from their sales or use taxes.”
Comment: The fiscal notes estimates a reduction in state tax revenues of up to $635,000.
This bill creates a sales and use tax exemption, or carve out, for capturing biogas to be used as a renewable natural gas, or for equipment used to create electricity from the biogas. Biogas “is
a natural by-product that is released as manure, food waste, and other organic compounds
breakdown.” This bill appears targeted to one project in Weld County, the Heartland Biogas Project, a 20 MW “anaerobic digester and renewable natural gas (RNG) facility” set to come online as soon as April 2014.
Filed under: Archive, Hydraulic Fracturing, renewable energy
Periodically, the Independence Institute’s Energy Policy Center will take a look at the good, the bad, and the ugly in energy stories from around the United States and abroad, and bring the best (and worst) of those stories to your attention.
1. Secretary of the Interior Sally Jewell may have violated Colorado Open Meetings Law under its sunshine statutes by shutting out members of the press while visiting Moffat County on Tuesday. The meeting in Colorado centered on the status of the sage-grouse, a species whose designation could affect energy projects in the northwest portion of the state:
As she was leaving, Leavitt Riley said she saw Jewell in a car in the parking lot and the driver-side door was open, so she approached Jewell “and she said the press was not allowed at this meeting,” Leavitt Riley recalled.
“I said, do you realize more than a dozen elected officials were in it? She said the tour was open to the press but this was a closed meeting” and then drove away, Leavitt Riley said.
She said the newspaper is pursuing the matter with the Colorado Press Association. No one with the U.S. Secretary of the Interior’s office was available for comment Tuesday night.
2. From Lachlan Markay at the Washington Free Beacon–a Politico column riddled with inaccuracies from anti-fracking activists:
A pair of prominent environmentalists penned a column Tuesday for Politico Magazine attacking hydraulic fracturing littered with dishonest and incorrect claims.
“If you calculate the greenhouse gas pollution emitted at every stage of the production process—drilling, piping, compression—it’s essentially just coal by another name,” McKibben and Tidwell wrote.
The claim is frequently sourced to Cornell scientists Robert Howarth and Anthony Ingraffea, who have found significantly higher life cycle emissions than are found in other studies.
Numerous government agencies, environmentalist groups, and academics have panned Howarth and Ingraffea’s work on the issue and produced their own studies showing relatively low life cycle emissions from natural gas.
“Their analysis is seriously flawed,” according to three Cornell colleagues, professors in the university’s departments of earth and atmospheric sciences and chemical and biological engineering.
3. Michael Bastasch at The Daily Caller highlights a report on the social benefits of fossil fuels:
Burning off carbon dioxide into the atmosphere to provide cheap electricity may have affected the climate, but the benefits of a carbonized economy far outweigh the costs, according to a new study.
The pro-coal American Coalition for Clean Coal Electricity (ACCCE) released a study showing that the benefits of carbonized fuel, like coal, to society are 50 to 500 times greater than the costs. Over the past two-and-a-half centuries increased fossil fuel energy production has helped more than double global life expectancy and increase global incomes 11-fold.
4. North Carolina State University issued a study finding that increasing the use of electric vehicles “is not an effective way to produce large emissions reductions”:
“We wanted to see how important EDVs may be over the next 40 years in terms of their ability to reduce emissions,” says Dr. Joseph DeCarolis, an assistant professor of civil, construction and environmental engineering at NC State and senior author of a paper on the new model. “We found that increasing the use of EDVs is not an effective way to produce large emissions reductions.”
The researchers ran 108 different scenarios in a powerful energy systems model to determine the impact of EDV use on emissions between now and 2050. They found that, even if EDVs made up 42 percent of passenger vehicles in the U.S., there would be little or no reduction in the emission of key air pollutants.
Buy a $40,000 Chevy Volt and taxpayers in Colorado and across the country will pick up nearly one third of the cost plus provide a permit to use Colorado’s HOV lanes free. Chevy blasted a “radio advisory,” which I received for my show on News Talk 1310, bragging about taxpayers footing the bill:
Colorado residents who purchase or lease a new Chevrolet Volt electric vehicle with extended range are eligible for a state tax credit of up to $6,000 in addition to a federal tax credit of up to $7,500 for a total price reduction of as much as $15,500.
Colorado is one of a number of states that is offering a state tax credit in addition to the federal tax credit, which is subject to the customer’s eligibility. For example, Volt customers who purchase a low-emission model of the 2012 Chevrolet Volt, which is standard in California, will qualify for a $1,500 state rebate and will be eligible to drive solo in the state’s carpool lanes. (FULL PRESS RELEASE BELOW)
According to the language of the fiscal note of the enabling legislation (HB11-1081) for the $6,000 state tax credit, because the incentive is a tax credit it “is refundable, meaning that any credit amount that exceeds a taxpayer’s income tax liability is refunded to the taxpayer.”
The average Chevy Volt buyer doesn’t need taxpayer help so says General Motors CEO Dan Akerson who recently told the Associated Press that “the average purchaser of a Volt is earning $170,000 a year.” In other words, less wealthy Coloradans subsidize elitists who want an electric car that is likely a second or third vehicle.
Despite the heavy subsidies, Chevy can’t unload the Volts they already have. Selling only 7,671 Volts last year, Chevy fell woefully short of its 10,000 vehicles sold goal. On March 19, GM will halt production for five weeks in an attempt to move through the current inventory. It doesn’t help that the Volt’s battery would unexpectedly combust. In the meantime, Chevy will continue its campaign of instructing wealthy green elitists on how to gouge taxpayers.