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.

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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.

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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.

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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.

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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.”

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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.

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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.”

Gone with the Wind: IRS can’t measure effectiveness of $14 billion dollars in green energy subsidies

July 21, 2015 by michael · Comments Off
Filed under: New Energy Economy, preferred energy, renewable energy, solar energy, wind energy 

A recent report from the Government Accountability Office (GAO) reveals that IRS tax subsidies to green energy operators have resulted in $15.1 billion in foregone revenue to the federal government, $13.7 billion of which was lost to renewable energy projects.

The GAO has sounded its concern that Congress cannot evaluate the effectiveness of Investment Tax Credit (ITC) or Production Tax Credit (PTC) programs funded by this money. Evaluation becomes difficult when “the total generating capacity [the projects] supported is unknown because the Internal Revenue Service (IRS) is not required to collect project level data from all taxpayers claiming the ITC or report the data it does collect, nor is it required to collect project-level data for the PTC.” So, as of now, any decisions made by Congress regarding the extension of the ITC or PTC are based on rough estimates, an environmental moral compass, or just how a representative is feeling that particular day.

What data has been reported suggests a certain government addiction to renewable energy subsides. From 2004 to 2013, around 2,000 renewable energy projects were built adding 69,000MW of generating capacity. This number, however, is dwarfed by the 157,000MW of generating capacity added by just the 500 traditional utility scale electricity generation projects built during the same time. For a tenth of the cost of renewable projects, traditional energy projects were able to generate more than double the energy.

In addition to green energy subsides, most states have implemented some form of a renewable portfolio standard (RPS) that requires a certain percentage of the electricity coming from retail service providers must be obtained from renewable sources. This artificial increase in demand along with subsides may be giving renewables like solar and wind a better chance than the technology in its current state deserves.

The GAO concludes that eliminating the ITC/PTC will almost certainly decrease the number of new renewable energy projects. Without these tax subsides green energy developer’s returns would decline and a rise in prices to compensate for the withdrawal of federal support would turn renewable energy into a luxury item.

Gina Larson is a Future Leaders intern and is currently a student at American University, majoring in International Relations.

Victory for Transparency: Feeding at DOE’s public trough a little less appetizing

March 22, 2013 by Amy · Comments Off
Filed under: Abound Solar, Archive, New Energy Economy 

For the last two and half years, the Independence Institute along with other free market energy policy advocates have pounded the drum of transparency and exposed the federal government’s infamous Department of Energy (DOE) loan guarantee program that rewarded the politically well-connected while costing taxpayers billions of dollars with high profile bankruptcies such as Solyndra and Colorado’s own Abound Solar.

Without the work of the Independence Institute’s investigative reporter Todd Shepherd, the Energy Policy Center, and Michael Sandoval now with the Heritage Foundation, Abound Solar’s history is little more than a footnote in failure in the grand scheme of the DOE. We covered it. The mainstream media did not…until we shamed them into doing so.

Now the Government Accountability Office (GAO) has released a report on its audit of the DOE loan guarantee program that finds negative publicity surrounding the embattled program has left billions of taxpayer dollars untouched in the public trough.

Sandoval reported on the Foundry Blog:

More than $51 billion in unused loan guarantee authority and $4.4 billion in unused credit subsidies…remain available under the DOE’s Loan Guarantee Program (1703) and Advanced Technology Vehicles Manufacturing (ATVM) loan program.

According to the report,

Some applicants noted that the Solyndra default and other problems have created a negative public image and political environment for the program, which has made its future less certain and the DOE more cautious about closing on loan guarantees.

Good news for taxpayers, the DOE has not closed a loan since September 2011, the month that Solyndra shuttered its doors. The GAO conducted the performance audit beginning in June 2012 (the date Abound Solar went bankrupt) to February 2013.

Most impressive is that taxpayers are making their voices heard and companies themselves are feeling the negative public pressure of socializing risk while privatizing profit:

“Most applicants and manufacturers noted that public problems with the Solyndra default and other DOE programs have also tarnished” other programs such as ATVM. They believed the negative publicity makes the DOE more risk-averse or makes companies wary of being associated with government support.”

Good.

We would be remiss if we didn’t mention by name the excellent work of Paul Chesser of the National Legal and Policy Center exposing the DOE’s corporate welfare program for Big Green projects such as electric vehicle manufacturers to the stars Fisker and Tesla and battery maker A123 Systems.