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

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

Theeeeeeey’re baaaaaack!

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

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

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

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

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

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

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

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

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

Stay tuned.

***

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

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

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

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

***

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

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

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

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

Percent_Increase_NRG_Income(Independence Institute)

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

***

Speaking of folks who like higher energy costs:

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

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

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

***

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

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

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

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

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

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

***

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

DENVER – Pot’s not green.

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

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

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

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

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

***

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

Colorado Supreme Court denies Hickenlooper on AG Clean Power Plan lawsuit petition

December 3, 2015 by michael · Comments Off
Filed under: Environmental Protection Agency, Legal 

Screen Shot 2015-12-03 at 3.13.01 PM

A crushing rebuke to Governor John Hickenlooper’s challenge to Attorney General Cynthia Coffman’s prerogative to file a lawsuit against the Environmental Protection Agency’s Clean Power Plan.

Just last week, per a Denver Post article on AG Coffman’s response to the Governor’s challenge, the court’s decision was expected next year. Apparently such time was unnecessary in the court’s view.

In light of the expected continuation of skyrocketing electricity prices for residential consumers in Colorado, this outcome is certainly in the people’s best interest.

November 25 Colorado Energy Cheat Sheet: CO residential rates skyrocket, could get worse; AG Coffman responds to Gov. Hickenlooper challenge over authority to challenge EPA

Percent_Increase_NRG_Income

Check out the latest Independence Institute research on electricity rates in the state of Colorado:

The cost of electricity for Colorado residents skyrocketed 63 percent between 2001 and 2014, far outpacing median income in the state at just 24 percent over the same time period, according to Independence Institute analysis of electricity rates provided by the Energy Information Administration and census data from the U.S. Census Bureau.

Retail residential electricity rates increased from 7.47 cents per kilowatthour in 2001 to 12.18 cents per kilowatthour by 2014, a 63.1 percent hike. Coloradans’ median income, however, went up just 24.1 percent, from $49,397 to $61,303. Median income in Colorado actually declined between 2008 and 2012.

“The saddest part of all is that it’s as yet uncertain whether any of Colorado’s rateshock would help stave off the worst of the Obama administration’s climate initiative, were that regulation to survive judicial review. That means that it could get much worse,” said William Yeatman, senior fellow of environmental policy and energy markets at the Competitive Enterprise Institute and author of the Independence Institute’s 2012 Cost Analysis of the New Energy Economy.

***

If you enjoy and support the important research and outreach work on issues ranging from hydraulic fracturing to the EPA’s Clean Power Plan that Amy Oliver Cooke and I do here on energy policy at the Energy Policy Center, please consider the following message from the Independence Institute’s Alexandra King:

***

Colorado’s Attorney General Cynthia Coffman responded to Governor John Hickenlooper’s legal filing over authority in the pushback against the Clean Power Plan:

Colorado’s Republican attorney general, Cynthia Coffman, filed a brief Friday in the state’s high court defending her authority — through case law — to challenge the Clean Power Plan in spite of the governor’s wishes.

“Even when the governor and the attorney general split along party lines, the attorney general has not only the authority but also the public duty to seek judicial review to protect the legal interests of Colorado,” the filing says.

Coffman cited a 2003 dispute in which the Colorado Supreme Court ruled that then-Attorney General Ken Salazar, a Democrat, had the power to file lawsuits independent of former Republican Gov. Bill Owens.

Coffman’s brief is in response to Democratic Gov. John Hickenlooper’s recent filing in the high court asking them intervene and declare he “has ultimate authority” on whether to sue the federal government.

According to the article, the dispute may take the Colorado Supreme Court months to decide, meaning resolution is unlikely before 2016.

***

Speaking of the Clean Power Plan, the Institute for Energy Research has the latest on the analysis of the rule’s costs to the nation’s ratepayers:

Energy Ventures Analysis (EVA) just released its analysis of the EPA’s “Clean Power Plan” (CPP), which mandates a 32 percent reduction of carbon dioxide emissions from the electric generating sector by 2030 from 2005 levels. While EPA claims the regulation will be virtually cost free, this study finds:

Consumers will pay an additional $214 billion by 2030;
45 states will see double digit increases in wholesale electricity costs; and
16 states will see a 25 percent or higher increase in wholesale electricity costs.

Further, 41,000 megawatts of perfectly good electric generating capacity will be forced to prematurely retire, costing the nation $64 billion to needlessly replace. While the costs of the regulation are high, the carbon dioxide reductions are almost non-existent. The regulation would reduce global carbon dioxide emissions by less than 1 percent and global temperatures by 0.02 degrees Celsius by 2100, according to EPA’s own models.[i] The CPP appears to be more of an excuse to fundamentally transform the nation’s electrical generating system from a reliable and affordable one to one that burdens Americans with costly and unreliable energy, consistent with President Obama’s promise to make “electricity prices necessarily skyrocket.”

Screen-Shot-2015-11-19-at-1.01.54-PM

Colorado’s rates will increase approximately 20 percent by 2030, easily the highest increase among its Rocky Mountain west neighbors, tied with Wyoming. Replacing capacity in Colorado will cost $3.3 billion or more.

***

The EPA’s disastrous Gold King mine spill on the Animas River continues to affect those downstream:

Three million gallons of contaminated water from the Gold King Mine poured into Colorado’s Animas River in August, laden with cadmium, lead and arsenic. The water eventually found its way into the San Juan River, the primary source of irrigation for Navajo Nation farmers.

The U.S. Environmental Protection Agency admitted that it accidentally caused the spill while trying to prevent leakage of toxic materials.

The spill was one of the biggest environmental disasters in the region and came in the middle of growing season for hay and alfalfa. Some communities reopened their gates to water from the river. Others, including one of the largest Navajo chapters (similar to a county), voted to keep their gates closed for at least a year to avoid contaminating the soil, despite reports from the EPA that the measures of chemicals had returned to pre-incident levels.

Navajo Nation Council Speaker LoRenzo Bates, a farmer, spoke to the Los Angeles Times about the effect of the spill on his life and the Navajo Nation.

What did you think when you first saw the river?

By the time it reached us, you know, it was quite diluted. We didn’t see the orange water; it was more yellow-brown.

My farm is 200 yards from the river, so I saw it coming right down toward us. No one knew the impact if we kept the water on. There could be any one of deadly metals in the water. We knew it was going to change things.

***

Results from a recent Quinnipiac poll on Colorado’s attitudes to climate change:

Climate change
Thirty-four percent of Colorado voters surveyed say they’re very concerned about climate change, and 26 percent say they’re somewhat concerned, versus 23 percent who say they’re not concerned at all and 15 percent who say they’re “not so concerned.”

The Obama administration has made combating climate change a top priority, while many Republicans in Congress and elsewhere as have objected to climate-control steps as harmful to the economy, and some question whether climate change is caused by human activity or is just a natural phenomenon.

Meanwhile, 52 percent of surveyed voters say the U.S. should be doing more to address climate change.

Concern about climate change doesn’t necessarily translate into support for rules like the Clean Power Plan, as results from an August survey show.

November 12 Colorado Energy Cheat Sheet: Colorado hit hard by CPP; Bennet defends pro-Keystone stance; CSU report rejects “sky-is-falling” contamination claims

Colorado would be the 18th hardest hit state, and fourth most expensive for the cost of carbon reduction under the Environmental Protection Agency’s Clean Power Plan, according to a new report from Fitch Ratings:

Wide-ranging voices—in politics; in business; consumer advocates like our coalition—have been warning of the potentially crippling costs of the U.S. Environmental Protection Agency’s soon-to-be-implemented Clean Power Plan. Its ripple effects will be felt nationwide, and Colorado is by all indications squarely in harm’s way.

As we have contended for some time now, the proposed federal mandate for air standards will impact every type of consumer—residential, small business, agricultural and industrial—in every community in Colorado. That includes consumers served by public utilities, municipal providers and rural cooperatives. And the changes to Colorado’s statewide power generation contemplated by the EPA’s mandates may ultimately cost many billions of dollars.

Rather than heed or, at least, consider some of these urgent concerns, however, defenders of the oncoming Juggernaut have sought in many cases to dismiss the criticism as coming from interests that are supposedly too close to the debate. Stakeholders involved in energy development of fossil fuels, for example, or power generation, are accused of having a vested interest and thus, presumably, are less than objective. Fairly or not, policy debates often turn on such considerations.

Well, now, another authoritative voice has entered the fray, and this time it is one without a discernible horse in the race. It is the voice of a truly neutral arbiter—one of the financial world’s “big three” credit-rating agencies—and it is sounding the alarm on the Clean Power Plan.

Fitch Ratings’ new report, “The Carbon Effect 2.0,” released just weeks ago, raises troubling concerns about the impact of the Clean Power Plan on the financial stability of the nation’s electric utilities. More troubling still, in the report’s state-by-state assessment, Colorado is among those facing the most formidable challenges, and potentially steepest costs, in complying with the Draconian EPA rules.

***

Governor John Hickenlooper continues to maintain his position that Attorney General Cynthia Coffman should defer to the governor on the matter of the AG’s lawsuit over the Clean Power Plan:

On his petition to the state Supreme Court to review Attorney General Cynthia Coffman’s authority to sue over the federal Clean Power Plan:

“I think the way the system’s meant, was designed, is that the governor and the attorney general should be consulting together on legal issues facing the state. But ultimately, the attorney general needs a client, and I think the governor was intended to be that voice, to speak for the agencies, the departments, to speak for the people. And I think if the attorney general and the governor don’t agree, my reading and [that of] the lawyers in our office is that this was intended ultimately to be the governor’s decision.”

Hickenlooper filed the petition to the Colorado Supreme Court last week.

***

The eco-inquisition is here, and the practice of selling environmental indulgences won’t be far behind:

Executives at publicly traded companies like Exxon Mobil may soon be talking more about climate change. Financial regulators are taking a closer look at how these companies disclose the impacts of climate change.

New York Attorney General Eric Schneiderman said Monday that Peabody Energy didn’t tell its investors all the financial risks from climate change and potential regulation. Peabody Energy, which owns a mine in Colorado, admits no wrongdoing, but it says it will now make disclosures that accurately and objectively represent climate impacts.

***

Methane regulations touted as saving money for companies, say regulators and companies hired to find methane leaks:

“What that means to the industry is substantial lost revenues,” he said.

He estimated that loss at about $1.2 billion a year even at today’s low natural gas prices.

Methane also is a potent greenhouse gas, and typically leaks in combination with volatile organic compounds and other pollutants. With that in mind, Colorado’s Air Quality Control Commission last year passed what’s known as Regulation 7, imposing the nation’s first rules specifically targeting methane emissions by the industry. Now the Environmental Protection Agency and Bureau of Land Management are considering rules targeting methane at the national level.

“Colorado … is the leader in the country on this issue by passing and enacting Regulation 7. We’re paying real close attention to how that’s going because there are several rulemakings on the federal level,” Von Bargen said.

***

U.S. Senator Michael Bennet defended his pro-Keystone XL stance even as his party’s leader, President Barack Obama, went the other way on the project last week:

Democratic U.S. Sen. Michael Bennet stood behind his vote earlier this year in favor of the proposed Keystone XL oil pipeline after the Obama administration rejected it on Friday after seven years of study and contentious debate.

“For years, the Keystone XL pipeline has been overhyped on both sides of the debate,” Bennet said in a statement to The Colorado Statesman. “The number of jobs it would create and the amount of carbon emissions it would facilitate have both been exaggerated.”

The proposed 1,200-mile pipeline would have transported 800,000 barrels of tar sands oil a day from Alberta, Canada, to Nebraska and ultimately on to refineries on the Gulf Coast of Texas. Bennet voted for a Senate bill approving the project in January.

“Based on scientific analyses that showed building Keystone XL would have little or no bearing on whether our nation will materially address climate change, I voted to move forward with the pipeline,” Bennet added. “The president vetoed the bill that Congress passed and has now administratively rejected the project. This is an issue on which the president and I disagree.”

***

A new CSU report concludes that, contrary to the popular line put forward by anti-fracking activists and other environmentalists, water-based contaminants from the fossil fuel industry aren’t seeping into wells in northern Colorado:

A new Colorado State University report says there is no evidence water-based contaminants are seeping into drinking-water wells over a vast oil and gas field in northeast Colorado.

A series of studies, led by CSU civil and environmental engineer professor Ken Carlson, analyzed the impact of oil and gas drilling on groundwater in the 6,700-square-mile Denver-Julesburg Basin, which extends between Greeley and Colorado Springs and between Limon and the foothills.

The studies were done under the auspices of the Colorado Water Watch, a state-funded effort started last year for real-time groundwater monitoring in the DJ Basin. The basin shares space with more than 30,000 active or abandoned oil and natural gas wells, say CSU researchers.

They primarily looked at the 24,000 producing and 7,500 abandoned wells in the Wattenberg Field, which sits mainly in Weld County.

“We feel that our results add to our database of knowledge,” Carlson said. “There isn’t a chronic, the-sky-is-falling type of problem with water contamination.”

Methane contamination was found in a small percentage of older wells, but according to the story, “it’s not toxic and isn’t a huge factor in terms of drinking-water safety.”

***

Many of the most well-known National Parks in the western United States would violate the new 70 ppb ozone regulation finalized last month, with the most egregious violator located along the Colorado-Utah border:

But national parks are among the worst offenders, with one maintaining levels of more than 100 ppb.

The 26 offenders are mainly in the West, with only a handful in the East, where coal-fired power plants dot the landscape.

The biggest violator is Dinosaur National Monument, home to 1,500 dinosaur fossils and a popular white-water rafting destination on the Colorado-Utah border. Its ozone level is 114 ppb. The runner-up at 90 ppb is the 631-square-mile Sequoia National Park in Northern California, a pristine forest boasting 3,200-year-old trees that are among the tallest in the world.

The Grand Canyon? It barely squeaks by at 69 ppb.

In all, 11 states have national parks that are in non-compliance with the new ozone standard: Arizona, 3; California, 9; Colorado, 2; Connecticut, 3; Illinois, 1; Maine, 1; Massachusetts, 1; Nevada, 1; New Jersey, 2; Pennsylvania, 1; and Utah, 2. Ozone levels are calculated over a three-year period.

The Grand Canyon narrowly missed violating the rule when the EPA went with the 70 ppb level instead of the lower end of the 65-70 range suggested in earlier drafts of the rule.

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.

October 22 Colorado Energy Cheat Sheet: Another CO mine faces WildEarth Guardians Lawsuit; EPA panel in GJ draws large crowd; regulatory freeze as part of debt ceiling debate?

UPDATE–Clean Power Plan rule will be published in Friday’s Federal Register, opening the door for multi-state lawsuits over the next two months:

CLEAN POWER PLAN – LADIES AND GENTLEMEN, START YOUR ENGINES: EPA’s carbon rule for power plants will formally be published in tomorrow’s The Federal Register, according to a pre-publication notice that showed up this morning. That means tomorrow kicks off the 60-day clock to sue over the rule. Expect the first suits to be filed shortly after the court opens for business Friday.

The Clean Power Plan, covering existing power plants, is available here. The rule for new, modified and reconstructed power plants is here. And the proposed federal implementation plan, set for finalization next year, is available here.

Just in time, environmentalists are holding a press call this morning outlining a legal defense for the rule. Meanwhile, the House Energy and Power Subcommittee also just happens to be holding a hearing this afternoon on CPP legal issues – and the witness list includes Elbert Lin, West Virginia’s solicitor general and likely one of the people who will argue against the rule in front of judges down the line.

As Alex Guillen reports this morning for Pros, “The timing of the rules’ publication , nearly three months after President Barack Obama rolled them out at the White House, makes it unlikely that a court will act to block them ahead of December’s Paris talks, where some 200 nations will gather to hash out a pact to address climate change.”

More to come.

***

Another Colorado mine is facing a lawsuit from the WildEarth Guardians, but this time, the communities of western Colorado are preparing ahead of time:

MAKE A STAND

Each day, thousands of rural Coloradans, small businesses, schools and farms rely on the clean, low-cost energy fueled by Trapper Mine’s nearly 200 employees. For more than three decades, Trapper has provided affordable energy across the West, jobs to hundreds of families and vast civic and economic benefits to our northwestern Colorado community.

Now, we need our community to Stand with Trapper.

On October 29, from 4 to 8 p.m., the federal Office of Surface Mining will host a public meeting to gather public comments on the scope of an environmental assessment the agency will prepare in response to a lawsuit brought by WildEarth Guardians. The October 29 public meeting includes a comment period through November 12 to further gather input. All public comments during this phase are due to OSM no later than November 12—and must be in written form.

The agency’s completion of this assessment is vital to Trapper’s future.

We ask that you attend this meeting and provide support for Trapper’s workers and their families, the positive impact Trapper makes to the community, the mine’s nationally recognized environmental stewardship and reclamation efforts—and its commitment to providing affordable and reliable energy.

The public meeting will be held October 29, from 4 to 8 p.m., at the Moffat County Fairgrounds’ Pavilion Building. The event will provide an opportunity to ask questions andmeet with OSM and Trapper representatives and to provide written comments on the environmental assessment.

Community members can also provide written comments via email and written letters to OSM. For more information and to submit comments, please click here.

Thank you for Standing with Trapper.

Screen Shot 2015-10-21 at 10.49.23 PM

More on the public comment:

Bill Ray, public information officer for Trapper, said Moffat County’s attendance at the meeting and participation throughout the comment process is crucial.

“This process is vital to Trapper’s future, and we believe to the community’s future,” he said. “We encourage community members to come to the meeting, to provide written comments and to stand with Trapper.”

Ray said throughout the comment period, Trapper would continue to work with the community to help it stay informed. Future public meetings organized by Trapper are a possibility but none have been scheduled so far.

Chris Holmes, public affairs specialist for OSMRE, said all comments are accepted but substantive ones are the most useful.

“The comments that we look for are those that have carefully examined all the issues, looked at the specific permit that’s in question and the revisions,” he said. “Substantive comments are what carry the most weight.”

***

Could the debt ceiling provide a mechanism for pushback against regulatory overreach and “midnight” regulations promulgated between next year’s election and the new President’s inauguration? A proposal from the Republican Study Committee called “Terms of Credit: Budget, Work, Grow”:

Grow: In order to give firms and workers certainty and allow the economy to grow, freeze all
regulations until July 1, 2017.
• Current freeze – Prohibit any significant regulatory action through July 1, 2017, subject to
health, safety, and national security waivers
• No midnight rules – Prohibit any new regulatory action between the date of a presidential
election and the next inauguration, again subject to health, safety, and national security
waivers

You can view the bill summary here, and the full text of the bill here.

The freeze on regulations would include the Environmental Protection Agency’s Clean Power Plan. More to come.

***

Dan Haley, president and CEO of the Colorado Oil and Gas Association, has an op-ed in The Hill calling for the U.S. to allow crude oil exports, with Colorado taking a lead:

In my state of Colorado, this is not a partisan issue but one of common sense and business opportunity. Colorado Governor John Hickenlooper, a Democrat, and Senator Cory Gardner, a Republican, both support lifting the ban. Plus, with Reps. Ken Buck (R), Mike Coffman (R), Doug Lamborn (R), Ed Perlmutter (D) and Scott Tipton (R) all voting to dump this outdated policy, once again we see Colorado as a leading bipartisan voice for this issue.

Colorado’s elected officials understand the world, and our economy, have changed greatly since the 1973 Arab oil embargo led Congress to pass the ban on U.S. oil exports in nearly all circumstances.

In today’s world, oil and liquefied natural gas (LNG) exports offer a path away from OPEC domination of the world’s energy markets. Unstable regimes in Russia and the Middle East should not be allowed to hold such sway over the international market. Increasing U.S. production and exports strengthens our country’s energy independence and national security and benefits our allies across the globe.

While opponents of lifting the ban argue that it could raise the price of gasoline studies have clearly shown the opposite is actually true. According to the U.S. government’s Energy Information Administration, exporting U.S. oil would encourage more production while opening up new markets which can further ease the prices at the pump with the additional supply.

Lifting the export ban is a major opportunity for this country and one that should not be missed. It is time that we cement our nation as the global energy leader it is destined to be and create thousands of well-paying American jobs in the process.

But Garfield County is not optimistic about immediate development, thanks to new oil and gas regulations, and activists are happy for the additional red tape:

Garfield County commissioners are worried that proposed new state rules to address conflicts between oil and gas development and neighborhoods could unduly drag out how long it takes companies to get approval to drill.

“It adds a year to the process,” Garfield Commissioner Tom Jankovsky said Monday about a proposed local government consultation process, echoing a concern also raised by Commissioner John Martin.

Jankovsky said the proposal could add $500,000 to $1 million to the cost of developing a well pad.

But Leslie Robinson, president of the Grand Valley Citizens Alliance, said the extra time is warranted to address concerns such as the possible impacts of drilling to the thousands of residents in Battlement Mesa.

“It should go through this long process,” she told commissioners.

The commissioners are working to submit comments to the Colorado Oil and Gas Conservation Commission as that agency prepares to act on two recommendations of a recent state task force. The agency is looking to require energy companies to consult with the affected local government when proposing a large drilling operation near an urban residential area, and require companies to provide long-term drilling plans to local governments.

***

12109086_704752979660905_4724960766453308112_n

(Former PUC chair Ray Gifford offers details about the EPA’s Clean Power Plan, photo courtesy of Colorado Senate GOP)
About 100 people on Colorado’s western slope attended a panel on the coming storm of EPA regulations, co-sponsored by the Independence Institute, the National Federation of Independent Businesses, Americans for Prosperity, and the Colorado Senate Republicans:

The U.S. Environmental Protection Agency’s proposed Clean Power Plan would have long-term negative impacts on the nation’s coal industry if it survives a legal challenge, one expert on the issue said on Tuesday.

At a one-sided forum sponsored by several right-leaning groups, Denver attorney and former Colorado Public Utilities Commission chairman Ray Gifford told about 100 Western Slope residents and government officials the impact the plan would have on coal-fired power plants specifically, and the coal industry in general.

Under the plan, which is to become official in the next few weeks but doesn’t fully go into effect for a few years, states would be required to reduce ozone emissions from power plants by 32 percent of 2005 levels by 2030.

States would have to come up with their own plans for achieving that goal by the end of next year, but can request a two-year extension if they can show they are making “substantial progress” toward a viable plan, Gifford said.

While he and others questioned whether the EPA has the legal authority to implement such a plan — lawsuits have already been filed challenging it — Gifford also said the federal agency is playing loose and easy with the facts behind the idea.

“The state lawsuit is essentially going to say that the EPA has vastly exceeded its authority, which is true,” Gifford said. “It’s undertaken a rule of scope and scale that’s never been contemplated before essentially by taking over the nation’s electric grid and dictating the change by 2030, and the assumptions that it uses are arbitrary and capricious, which are the legal magic words. How that (lawsuit) goes is anybody’s guess.”

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(NFIB’s Tony Gagliardi gives an update on the Waters of the United States rule (l-r: Gifford, State Sen. Ray Scott, R-Grand Junction, photo courtesy of Colorado Senate GOP)

Two more EPA panels will be held next week–Wednesday October 28 in Pueblo, and Thursday October 29 in Denver.

***

An additional 500-600 gallons of orange water is being emitted from the Gold King Mine every minute since the August blowout, costing taxpayers nearly $15 million and prompting more calls for “Good Samaritan” legislation:

The Aug. 5 blowout at the Gold King Mine created memorable images of orange water that flowed from Colorado’s Animas River into the San Juan River in New Mexico and Utah. Clean-up has cost taxpayers $14.5 million and counting. But some say spills like this aren’t the main concern.

“Blowout scenarios — they are impressive, they get a lot of attention, they are probably not the biggest issue,” said Peter Butler, co-chair of the Animas River Stakeholders Group. “The biggest issue is more the continuous metal loading that comes from the mining sites.”

Take the site of the Gold King Mine spill. Construction crews have now finished a $1.5 million temporary wastewater treatment plant for the Gold King Mine. EPA on-scene coordinator Steven Way explains that 500 to 600 gallons of orange water has continued to gush out of the mine since last August.

But that facility is only handling water from the Gold King Mine. It’s not treating water from two additional old mines and an underground tunnel that are draining another 500 gallons of wastewater every minute.

The Animas River isn’t the only Colorado river running orange.

***

Speaking of water–another Front Range vs. rest-of-the-state battle is shaping up over the precious resource:

Objections from Front Range cities are forcing state officials to make a last-minute overhaul of Colorado’s water plan and pledge to build new reservoirs that enable population growth.

Aurora, Colorado Springs, Denver and Northern Colorado Water Conservancy District providers also are demanding that the state detail plans for the diversion of more water across mountains to the Front Range.

That puts them at odds with Western Slope residents, who Tuesday weighed in with their own demand that Gov. John Hickenlooper block diversion of more water.

The Colorado Water Plan, 30 months in the making, spells out how the state intends to supply water for the 10 million people projected to live in the state by 2050. Hickenlooper has ordered the Colorado Water Conservation Board to complete the plan by Dec. 10.

***

The solar energy industry blames think tanks and utilities (and the fossil fuel companies that fund them) for its poor market performance in a new report:

After years of rapid growth, Colorado’s once red-hot solar energy industry has faded recently, according to a new report from Environment Colorado, which blames fossil fuel-funded think tanks and utilities for raining on the state’s solar parade.

According to “Blocking the Sun: 12 Utilities and Fossil Fuel Interests That Are Undermining American Solar Power,” Colorado’s solar power capacity increased 44 percent a year from 2010 to 2013, but then dropped dramatically between 2013 and 2014, knocking the state from 7th to 10th in terms of solar power capacity per capita in the United States.

“Despite the fact that we have one of the best solar assets in the country, Colorado’s market share is shrinking nationwide due to weak utility support and uneven legislative progress,” said Alex Blackmer, president of the 5,000-member Colorado Renewable Energy Society, on a conference call with reporters late last week.

October 15 Colorado Energy Cheat Sheet: Che Guevara inspires fracking bans, another EPA spill in Colorado, AG Coffman vs. Gov. Hickenlooper

Be sure to check out and like our Energy Cheat Sheet page on Facebook for daily, up-to-the minute updates that compliment our weekly “best of” on the I2I Energy Blog.

Want to guess who the anti-energy, anti-fracking activists in Colorado have adopted as their patron saint, so to speak? None other than the murderous Communist revolutionary, Che Guevara:

At Monday’s “direct action” in Denver, protesters displayed signs with messages including “Ban Fracking Now,” “Keep Fossil Fuels in the Ground,” and “End Fracking—Renewables 100%.”

“What we have is an energy revolution that is at our feet, and we are the boots on the ground that this revolution wants to be. We are the energy of change,” said Shane Davis, who runs the Fractivist website, in Saturday’s opening speech at the Holiday Inn Stapleton.

He encouraged the anti-fracking movement to draw inspiration from Argentine Marxist revolutionary Che Guevara, a leading figure in the communist overthrow of Cuba.

“This is the time when we need to shake the political and economic fracking industry’s empire and their rule over global fossil-fuel energy consumption,” Davis said. “Fifty years ago, Che Guevara, a revolutionary humanitarian, fought similarly against ruling forces that were harming local communities.”

The Statesman’s Valerie Richardson recorded at least two different groups’ efforts to secure anti-fracking measures in 2016, with more than two different measures–a constitutional amendment and a measure to give localities veto powers over development.

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Speaking of fracking and one of the most persistent myths extolled by anti-fracking proponents–groundwater contamination:

Some of the same researchers who previously claimed that groundwater in the Marcellus region was being contaminated by shale development released a new study this week finding no evidence that hydraulic fracturing fluids have migrated up into drinking water – consistent with what independent scientists and regulators have been saying about fracking for years. The new Proceedings of the National Academy of Sciences study, led by researchers at Yale, includes Robert Jackson (now with Stanford University) and Avner Vengosh, who were both behind the Duke studies that purported to find widespread contamination from shale development. But as their new study explains,

We found no evidence for direct communication with shallow drinking water wells due to upward migration form shale horizons. This result is encouraging, because it implies there is some degree of temporal and spatial separation between injected fluids and the drinking water supply.” (p. 5; emphasis added)

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Colorado is catching legal heat for attempting to export its regulatory schemes, like the state’s renewable energy standard, forcing other states to follow “extraterritorial regulation”:

In April, 2011, E&E Legal sued the State of Colorado due to the unconstitutionality of the state’s renewable energy standard. As the case was working its way through the 10th Circuit, the Colorado legislature rushed to amend the law in an attempt to fix the most blatant unconstitutional provisions. They did not, however, cure all the problems.

Dr. David W. Schnare, lead attorney and E&E Legal’s General Counsel, noted at the time the Colorado legislature attempted to correct the RES, “This bill appears to remove some but not all of the unconstitutional elements of the statute. However, it also mandates new unconstitutional requirements by increasing the renewables standard to levels that, that like the current statute, cannot be justified when balanced against the harm they cause to interstate commerce.”

Specifically, the Legislature kept the sections that authorized Colorado to tell electric generating companies what means they had to use to sell “renewable” energy into Colorado, including companies that operated in other states and in some cases where the electricity they made did not and could not even reach Colorado. This is known as “extraterritorial regulation” and is prohibited under the Constitution.

Colorado is not alone in its efforts to tell other states how to regulate. California has the hubris to tell egg producers in Iowa what size chicken pens have to be. They have also told Canada how to make goose liver. Indeed, there is a growing effort for states to try to export their regulations onto other states.

Explained Schnare, “a state may not project its legislation into other states and may not control conduct beyond the boundaries of the State.”

***

The Environmental Protection Agency’s raft of new regulations has sprung a leak with the aptly named Waters of the United States rule:

Chief Justice John Roberts may have salvaged ObamaCare, but lower courts are proving to be more skeptical of executive overreach. On Friday the Sixth Circuit Court of Appeals stopped the Environmental Protection Agency’s new Clean Water Rule on grounds that it probably exceeds the agency’s legal authority.

The EPA rule, issued in May, extends federal jurisdiction over tens of millions of acres of private land that had been regulated by the states. In August a federal judge in North Dakota issued a preliminary injunction in 13 of the 31 states that have sued to block the rule, and the Sixth Circuit has now echoed that legal reasoning by enjoining the rule nationwide.

Ohio, Michigan and 16 other states challenged the rule, and a three-judge panel of the Sixth Circuit ruled two to one that the “petitioners have demonstrated a substantial possibility of success on the merits of their claims” and that a stay is needed to silence “the whirlwind of confusion that springs from the uncertainty” about the rule’s requirements.

As the Wall Street Journal noted, the most recent and significant threat to the waters within the United States came from the EPA itself:

The court also shot down the Administration’s argument that “the nation’s waters will suffer imminent injury if the new scheme is not immediately implemented and enforced.” As it happens, the single biggest recent injury to U.S. waterways is the EPA’s own Colorado mine disaster that turned the Animas River a toxic orange and flushed toxins into rivers across the Southwest.(emphasis added)

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And the irony of the EPA threat to the nation’s waterways continued, as last week the agency triggered yet another spill in Colorado:

“Once again the EPA [Environmental Protection Agency] has failed to notify the appropriate local officials and agencies of the spill in a timely manner.” These are the words of U.S. Congressman Scott Tipton (R-CO) of Colorado’s 3rd Congressional District in response to another toxic spill resulting from EPA activities at an abandoned mine in western Colorado.

According to the Denver Post, an EPA mine crew working Thursday at the Standard Mine in the mountains near Crested Butte, triggered another spill of some 2,000 gallons of wastewater into a nearby mountain creek. Supporting Tipton’s remarks to Watchdog Arena, the Denver Post report states that the EPA had failed to release a report about the incident at the time of its writing.

Unlike the Gold King Mine, where on Aug. 5, an EPA mine crew exploring possible clean-up options, blew out a structural plug in the mine releasing over 3 million gallons of toxic waste into the Animas River, the Standard Mine is an EPA-designated superfund site, where the federal agency has been directing ongoing clean-up efforts.

yeah epa***

The EPA’s Clean Power Plan gets bipartisan pushback from Senators in Mississippi and North Dakota:

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Colorado Attorney General Cynthia Coffman’s efforts on behalf of the state in battling overreaching EPA regulations has earned a great deal of visibility given the state’s party split between constitutional offices, with Democrat Governor John Hickenlooper spearheading Clean Power Plan implementation, and the Republican Coffman pushing back, rendering Hickenlooper a “spectator,” according to the Wall Street Journal:

Colorado’s wide-ranging litigation efforts, for example, have been spearheaded by GOP Attorney General Cynthia Coffman, who was part of a state coalition that won a ruling last week blocking Interior Department rules for hydraulic fracturing on public lands. She also had Colorado join a group of 13 states that won an August ruling blocking an EPA plan putting more small bodies of water and wetlands under federal protection. And Ms. Coffman recently said she would have Colorado join the suit against the EPA greenhouse-gas rule, expected to be filed as soon as this month.

“The rule is an unprecedented attempt to expand the federal government’s regulatory control over the states’ energy economy,” Ms. Coffman said in announcing her decision.

Mr. Hickenlooper, the governor, didn’t encourage the attorney general to join any of the cases; in fact, he is focusing on implementing the regulations, said spokeswoman Kathy Green. “The governor’s approach has been to work collaboratively and avoid costly lawsuits wherever possible,” she said.

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