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
Filed under: CDPHE, Environmental Protection Agency, New Energy Economy, preferred energy, solar energy, wind energy
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.”
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:
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.
October 29 Colorado Energy Cheat Sheet: Hickenlooper vs. Coffman over EPA lawsuit; EPA spill report short on info says New Mexico; Frack or Treat
Filed under: CDPHE, Environmental Protection Agency, Legal, Legislation, PUC, regulations, solar energy, wind energy
Attorney General Cynthia Coffman’s decision to challenge the Environmental Protection Agency’s authority to implement the Clean Power Plan has initiated a constitutional battle in the eyes of Governor John Hickenlooper:
Gov. John Hickenlooper said Monday he will seek the state Supreme Court’s opinion on the legality of Attorney General Cynthia Coffman’s lawsuit to stop implementation of the Clean Power Plan.
“This notion of everyone suing all the time every time you disagree with a specific remedy, a specific statute, is part of what makes people so frustrated with government,” Hickenlooper, who supports the plan, said in a meeting with The Denver Post’s editorial board.
“Except in very rare circumstances, generally the governor is supposed to make that decision in concert with the attorney general,” Hickenlooper said of the lawsuit. “But the governor should have that final say.”
Hickenlooper’s office pushed the issue further, saying the AG’s actions “just gets in the way” of state plans to cooperate with the CPP:
“The statute that we’re looking at speaks of prosecuting and defending on the request of the governor,” said Jacki Cooper Melmed, Hickenlooper’s chief legal counsel, citing Colorado’s revised statutes, title 24, article 31, part 1.
Cooper Melmed said she is worried about conflicts as some Coffman deputies work with Hickenlooper’s administration to implement the plan while others in the attorney general’s office try to quash it.
“This just gets in the way,” Cooper Melmed said of the lawsuit. “There’s no wall really high enough to allow these two things to happen out of the same office.”
Coffman, for her part, said she was “disappointed” in the Governor’s decision.
Former Colorado Attorney General Gale Norton called Hickenlooper’s stance “unusual” when it comes to the relationship between AG and Governor, even when representing opposing parties:
“For the governor to try to challenge in this way is unusual,” Norton said.
In almost all cases where a governor challenges an attorney general, Norton said, rulings are in the attorney general’s favor.
“The attorney general represents the state and not the governor,” Norton said. “The attorney general is elected to provide independent representation of the state’s interest.”
Steamboat Today has a great roundup of other reactions for and against the lawsuit.
It’s not just states suing the EPA over the Clean Power Plan–at least 26 states filed almost immediately after the ruling was published last Friday–but other lawsuits are on their way from the U.S. Chamber of Commerce, National Rural Electric Cooperative Association and National Association of Manufacturers.
The EPA, meanwhile, is touting its flexibility–a “wide range of choices”–in allowing states to file extensions:
Taking another crack at busting the CPP progress, this time using pre-existing Congressional review legislation:
Lawmakers opposed to the Obama administration’s climate rule for power plants are moving to block the regulations from taking effect.
Several senators will offer Congressional Review Act (CRA) resolutions Monday that seek to stop the Clean Power Plan. Senate Majority Leader Mitch McConnell (R-Ky.), a longtime opponent of carbon regulations for the power sector, will schedule a vote on the resolutions soon after they come out.
“I have vowed to do all I can to fight back against this administration on behalf of the thousands of Kentucky coal miners and their families, and this CRA is another tool in that battle,” McConnell said in a statement.
The Congressional Review Act gives lawmakers the ability to end an executive branch regulation through an act of Congress.
Communities around Colorado continue to struggle with mine runoff, the August EPA spill in southwest Colorado not withstanding:
Toxic mines hang over this haven for wildflowers, contaminating water and driving residents — like counterparts statewide — to press for better protection.
A local group went to federal court this month seeking long-term assurances that a water-treatment plant will always remain open as the collapsed tunnels and heaps of tailings leak an acid mix of heavy metals: arsenic, cadmium, zinc and others.
State data show these contaminants reaching Coal Creek — the primary water source for Crested Butte and the Gunnison Valley’s green pastures — at levels exceeding health standards.
“A lot of people are nervous,” said Alli Melton of High Country Conservation Advocates. “We’d like to get it as clean as possible.”
But the EPA isn’t being all the helpful, as the Interior Department inspector general report on the Gold King Mine/Animas River spill concluded, as the U.S. Chamber points out:
These two quotes from the report illustrate just how careless EPA was:
EPA has “little appreciation for the engineering complexity.”
“[T]here appears to be a general absence of knowledge of the risks associated with these [abandoned mining] facilities.”
Even EPA’s internal investigators didn’t hold back on the agencies irresponsibility. Its initial review concluded the spill was “likely inevitable,” but the agency wasn’t prepared to contain a spill before digging into the mine.
That isn’t much consolation for the folks in Colorado, New Mexico, Utah, and the Navajo Nation affected by the spill, as New Mexico’s top environmental watchdog Ryan Flynn said, quoted again by the Chamber:
While the report reveals that an EPA decision was made to refrain from validating the flawed water level estimates with a previously used successful procedure (using a drill rig to bore into the mine from above to directly determine the water level of the mine pool prior to excavating the backfill at the portal); the report says absolutely nothing about who made the decision to fly by the seat of their pants, by digging out the closed Gold King Mine tunnel based on un-validated estimates of what volume and pressure of contaminated water would be violently released.
Here in New Mexico, we are already quite clear on the fact that EPA made a mistake, as the DOI’s report underwhelmingly reveals. What we were wondering, and hoped the report could tell us, is why EPA made the mistake, and who at EPA made the decisions that authorized dangerous work to proceed based on un-validated estimates. It is shocking to read the DOI’s “independent investigation” only to find that it overlooks the who, the how, and the why. [emphasis added]
How big are subsidies for electric cars? Without the $5,000 tax credit in Georgia, the state saw sales of electric vehicles plummet nearly 90% in just two months:
According to Georgia car registrations, sales shot up as electric car buyers rushed to take advantage of the tax credit before it expired. But the numbers declined sharply in July and took a swan dive in August — the most recent month tabulated:
The decline from 1,338 in June to 148 in August represents a drop of 88.9 percent.
Read the rest of this excellent Watchdog article here.
It’s almost Halloween, so we’ll end on a spooky anti-energy note from Energy in Depth:
The Community Environmental Legal Defense Fund (CELDF) has been waging an extreme campaign to ban fracking through so called “Community Bill of Rights” ballot initiatives, especially targeting communities in Colorado, Ohio, and Pennsylvania. The group has already forced taxpayers to pay tens of thousands of dollars to defend their illegal ordinances and it is now planning to hit communities in California, Oregon, New Hampshire and Washington State. In fact, as Energy In Depth’s new video shows, this Halloween, CELDF’s extreme (and expensive) campaign could be coming to a ballot box near you.
October 15 Colorado Energy Cheat Sheet: Che Guevara inspires fracking bans, another EPA spill in Colorado, AG Coffman vs. Gov. Hickenlooper
Filed under: CDPHE, Environmental Protection Agency, Hydraulic Fracturing, Legislation, New Energy Economy
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.
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)
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)
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.
The EPA’s Clean Power Plan gets bipartisan pushback from Senators in Mississippi and North Dakota:
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.
August 20 Colorado Energy Roundup: Poll shows Coloradans not impressed by Clean Power Plan, fracking ballot measures expected, #greenjobsfail, and EPA/Animas River saga continues
Filed under: Environmental Protection Agency, Legal, renewable energy, solar energy, wind energy
This week the Independence Institute released the results of poll concerning the Environmental Protection Agency’s Clean Power Plan and who Coloradans feel does a better job when it comes to guarding the state’s environmental quality–folks here prefer Colorado oversight to meddlesome DC regulations:
The poll was conducted August 9-10th and found those surveyed more likely to oppose the EPA’s controversial Clean Power Plan if the rule resulted in electricity bill hikes, 59 to 33 percent.
Fifty-five percent said they would oppose the plan if it meant spiking poverty rates in black and Hispanic communities by 23 and 26 percent, as a recent study by the National Black Chamber of Commerce concluded.
Respondents also opposed the plan when it came to the core environmental impacts projected by the agency—a 0.02 degrees Celsius reduction in global temperatures and no notable impact on carbon emissions. Fifty-one percent said the promised temperature reduction would make them more likely to oppose the finalized rule, while 58 percent said that the Clean Power Plan’s non-existent impact on carbon emissions would do the same.
You can read the rest of the topline results here.
Colorado’s registered voters put their trust in the state to manage the environment, and not federal regulators from the EPA or DC in general:
While Colorado’s Attorney General, Cynthia Coffman, has not weighed in on whether the state could join a multi-state lawsuit against the EPA over the Clean Power Plan (she has said it is on the table), a 53 to 37 percent majority favored the state joining at least 16 other states in the suit.
Nearly 6 in 10 said the state should wait to comply—not move forward as Governor John Hickenlooper has directed—on drawing up a state implementation plan for the Clean Power Plan.
Nearly half said that they would be more likely to support a plan if the state of Colorado determined the cost of compliance before that plan became law.
When it comes to environmental regulation and quality, Coloradans clearly preferred the regulators in Denver to those in Washington, D.C.
The State of Colorado does a better job regulating for a clean environment 37 to 5 percent over federal regulators. Twenty-seven percent said both state and federal agencies handled the job equally well, with nearly one in five saying that neither has done particularly well in this area.
How did the results breakdown along partisan and demographic lines?
Only Democrats (64 percent) and those earning between $100-$124K per year (51 percent) were more likely to support the EPA’s Clean Power Plan even if it meant an increase in electricity bills as a result of implementing the regulations. Overall, 59 percent of Coloradans were more likely to oppose the plan, with men and women showing no gender gap and nearly identical opposition to costly rate hikes.
A National Black Chamber of Commerce study found that poverty rates in black and Hispanic communities were likely to increase significantly—23 percent and 26 percent—under the Clean Power Plan. Fifty-five percent of Colorado voters said they would be more likely to oppose the federal regulations under those circumstances, with women edging out men (57 percent to 53 percent, respectively) in opposition. Majorities of Republicans, independents, and all age and income groups offered the same negative responses when it came to impacts on minority community poverty rates, as did the respondents when viewed across all seven congressional districts.
Democrats were still more likely to support the EPA’s carbon reduction plan by a slim 42 to 37 percent margin. The party was split, however, along gender lines, with Democratic women in opposition, 44 to 36 percent. Their male party counterparts gave the Clean Power Plan a large boost, saying 48 to 27 percent that they were more likely to back the EPA’s measure despite minority community concerns.
More results from the poll’s crosstabs can be perused here.
EPA Administrator Gina McCarthy even admitted explicitly that the Clean Power Plan would adversely harm minority and low-income families the hardest:
The chief environmental regulator in the United States had some blunt words of reality regarding the administration’s climate change regulations.
The Clean Power Plan that will require drastic cuts in 47 states’ carbon dioxide emissions – consequently shifting America’s energy economy away from affordable, reliable coal – will adversely impact poor, minority families the most.
When speaking about the higher energy prices caused by the administration’s climate regulations on power plants, Environmental Protection Agency Administrator Gina McCarthy said, “We know that low-income minority communities would be hardest hit.”
McCarthy downplayed that fact by saying any minimal higher prices would be offset by implementing energy efficiency measures that would save consumers money in the long run.
Cato shows how “carbon dioxide emissions” have turned into “carbon pollution” when it comes to EPA messaging over the years.
Another new EPA rule? Yep:
With the Environmental Protection Agency expected to release a rule this month on methane regulations, proponents are gearing up for a messaging war.
Federal regulators aim at reducing oil-and-gas methane emissions by as much as 45 percent by 2025. The idea is that companies can use new technology to better capture methane emissions from operations.
The EPA estimates that 7 million tons of methane are emitted every year, though environmentalists suggests that it could be much higher.
The issue is relevant in Southwest Colorado, where researchers identified a significant methane “hot spot” in the Four Corners. A team of scientists is currently investigating the cause of the concentration, which could stem from a combination of natural-gas exploration and natural occurrences.
But industry efforts have already cut methane emissions significantly, making the rule seemingly superfluous:
This is going to go down in the books as one of the most curious moves ever taken by the Obama EPA, not because the reduction of methane emissions is a bad idea, but because it’s already been taking place in gangbuster fashion. The Institute for Energy Research put out a statement as soon as the new proposal was announced which put the question in context.
“Since 2007, methane emissions fell by 35 percent from natural gas operations, while natural gas production increased by 22 percent. According to EPA, voluntary implementation of new technologies by the oil and natural gas industry is a major reason for the decline in emissions.”
And where is the IER getting these figures about reductions in emissions? Are they coming from some big oil loving, pro-drilling think tank? No. It’s data taken from the EPA’s own studies which were cited in generating these rules. But just in case any of them don’t read their own promotional material, here are the numbers in graph form.
Anti-frack is BAAAAAAAAAAAACK!!!
After failing to gather enough signatures last summer, Coloradans for Community Rights said Monday it will try again to get a statewide initiative giving communities control over oil and gas exploration on the ballot.
Spokesman Anthony Maine said the group will begin circulating petitions early next year to get the Colorado Community Rights Amendment to the state Constitution on the November 2016 ballot.
“This is about communities being allowed to decide for themselves,” Maine said at a press conference in Denver.
He said the oil and gas industry and their supporters are expected to pump in millions of dollars to fight the proposed amendment.
“This radical measure would allow city councilors and county commissioners to ban any business or industry for any reason even if those reasons violate federal or state law,” Karen Crummy, spokeswoman for Protect Colorado, said in a statement. Protect Colorado is an issue committee organized to fight anti-energy ballot measures.
Unlike other observers who felt that this issue might recede into next year’s political battles or be left up to the current court battles, it’s been clear to me from my work on this issue that activists are gearing up for the long game, announcing their efforts more than a year from the 2016 ballot, banking on possible favorable wins in a presidential cycle rather than the 2014 midterm. Many anti-fracking activists felt burned by Governor John Hickenlooper’s “compromise” last year that appeared to be an effort to provide fellow Democrats political cover in what was shaping up to be a costly and election-determining fight at the ballot box. Hickenlooper’s commission did not assuage the resentment of activists, Democrats lost a U.S. Senate seat, and the issues remained unresolved, just kicking the can down the road.
We’ve caught up to the can once again.
At the Independence Institute, we’ve been taking a look at the failed promises of “green” jobs since 2011, and a California initiative passed with the help of billionaire Tom Steyer appears to have fallen, uh, short of its job creation goals in the green sector–by about 90 percent:
The California ballot measure funded by billionaire environmentalist Tom Steyer that raised taxes on corporations to create clean energy jobs has generated less than a tenth of the promised jobs.
The Associated Press reported that the Clean Energy Jobs Act (Prop. 39) has only created 1,700 clean energy jobs, despite initial predictions it would generate more than 11,000 each year beginning in fiscal year 2013-14.
Prop. 39, which voters approved in 2012 after Steyer poured $30 million into the campaign supporting it, closed a tax loophole for multi-state corporations in order to fund energy efficient projects in schools that would in turn create clean energy jobs.
More than half of the $297 million given to schools for the projects has been funneled to consultants and energy auditors.
As we noted in late 2013, the current administration pushed for changes it hoped would bolster the long term outlook for wind energy by attempting to deal with one of the unfortunate tradeoffs of giant wind turbines–bird deaths:
But a move to extend the life of one renewable energy source–in this case, wind–by granting a six-fold extension to ‘takings’ permits issued to wind farms that allow the accidental killing of bald and golden eagles has united opponents normally at odds: Senator David Vitter (R-LA) and groups like the National Audubon Society and Natural Resources Defense Council.
A sampling, from Politico:
It’s baldly un-American, Vitter said Friday.
“Permits to kill eagles just seem unpatriotic, and 30 years is a long time for some of these projects to accrue a high death rate,” said the Louisiana senator, who is the top Republican on the Senate Environment and Public Works Committee and one of Congress’s most outspoken critics of wind.
Sounding a similar theme, National Audubon Society CEO David Yarnold said it’s “outrageous that the government is sanctioning the killing of America’s symbol, the bald eagle.” He indicated his group may sue the administration.
The rule also drew criticism from Frances Beinecke, president of the Natural Resources Defense Council, who said it “sets up a false choice that we intend to fight to reverse.”
“This rule could lead to many unnecessary deaths of eagles. And that’s a wrong-headed approach,” she said. “We can, and must, protect wildlife as we promote clean, renewable energy. The Fish and Wildlife Service missed an opportunity to issue a rule that would do just that.”
Secretary of the Interior Sally Jewell defended the rule change.
“Renewable energy development is vitally important to our nation’s future, but it has to be done in the right way. The changes in this permitting program will help the renewable energy industry and others develop projects that can operate in the longer term, while ensuring bald and golden eagles continue to thrive for future generations,” Jewell said.
Well, the so-called “takings” extension to 30 years has had its wings clipped by the court:
The express purpose of the 30-Year Rule was to facilitate the development of renewable wind energy, since renewable developers had voiced a need for longer-term permits to provide more certainty for project financing.
The Fish and Wildlife Service (FWS) issued the 30-Year Rule without preparing either an Environmental Assessment (EA) or an Environmental Impact Statement (EIS) under the National Environmental Policy Act (NEPA); instead, the FWS determined that the 30-Year Rule was categorically exempt. In overturning the rule, the court found that the FWS had not shown an adequate basis in the administrative record for its decision not to prepare an EIS or EA and therefore failed to comply with NEPA’s procedural requirements.
Finally, to the EPA induced toxic spill saga of the Animas River . . .
Congressman Scott Tipton (R-3rd CD) and colleagues are asking the EPA questions:
We remain completely unsatisfied with the delay in notifying the impacted communities and elected officials responsible for preparing and responding to a disaster such as this one.
What was the reason for the over 24 hour delay between the time of the incident and official notification and acknowledgment by your agency that a blowout had occurred?
Who in the EPA’s regional office was first notified of the blowout and when?
What steps has the EPA taken, or does it plan on taking in the very near future, to ensure that this type of delay in acknowledgment and notification of the appropriate parties does not happen again? What additional steps will the EPA take to create and implement an emergency response plan for EPA projects such as this?
That’s just a sample of a raft of questions from the House members.
Sen. Cory Gardner (R-CO) and a bipartisan group of colleagues sent their own questions to the EPA:
We, therefore, respectfully request the following be included in a report on the events surrounding the Gold King Mine spill:
1. Details on the work EPA was conducting at the Gold King Mine prior to the spill on August 5, 2015;
2. Details of the expertise of the EPA employees and contractors carrying out that work;
3. Criteria EPA would apply before approving a contractor for a similar cleanup performed by a private party and whether EPA applied the same criteria to itself;
4. EPA’s legal obligations and current policies and guidelines on reporting a release of a hazardous substance;
5. EPA’s legal obligations and current policies and guidelines on contacting tribal, state and local government agencies when the agency creates a release of a hazardous substance;
Again, just a sampling of what members of Congress–and the public both down in southwest Colorado, northern New Mexico, and Utah–would like to know, demanding a full accounting of the EPA spill as soon as possible.
New Mexico Governor Susana Martinez wasn’t drinking the EPA
tang koolaid, or its official responses so far, and is asking for her state to investigate as well:
Today, I ordered the New Mexico Environment Department to investigate the circumstances surrounding the EPA-caused toxic waste spill into the Animas River.
New Mexicans deserve answers as to why this catastrophe happened and why the EPA failed to notify us about it — the first we heard about it was from the Southern Ute Tribe nearly 24 hours later.
The EPA should not be held to a lower standard than they hold private citizens and businesses.
Colorado Attorney General Cynthia Coffman feels that she is not getting the whole picture either, and is still considering a lawsuit against the EPA for the spill:
The attorneys general of Colorado and Utah visited this still-festering site on a fact-finding mission Wednesday and left feeling the Environmental Protection Agency had not provided them with the whole picture.
“There’s a list, honestly,” Colorado Attorney General Cynthia Coffman said of her questions.
Coffman and her Utah counterpart, Attorney General Sean Reyes, are among a group that have said legal action against the EPA is being weighed after the agency’s Aug. 5 wastewater spill in the San Juan County mountains above Silverton.
The spill sent 3 million gallons of contaminated water surging into the Animas and San Juan rivers.
New Mexico’s attorney general said last week he is considering a lawsuit, and Navajo Nation leaders, whose community arguably has been most impacted by the disaster, said they will sue.
That lack of information–or, indeed, a coverup–has been the focus of much attention, and Colorado Peak Politics believes the EPA hasn’t been forthcoming from the beginning.
The inspector general for the Environmental Protection Agency announced on Monday that it is beginning an investigation into the agency’s role in triggering a massive toxic waste spill in southwest Colorado.
The IG alerted a number of senior EPA officials to the investigation in a memo released on Monday. “We will request documents, and interview relevant managers and staff in these locations and elsewhere as necessary,” the IG said.
The announcement comes amid controversy over EPA’s role in the spill. Agency chief Gina McCarthy admitted last week that EPA inspectors had triggered the incident while inspecting cleanup efforts at the Gold King Mine near Durango, Colo.
What are the cleanup costs estimated to be? The Daily Caller’s examination of potential burdens to the taxpayer due to EPA negligence are big:
The right-leaning American Action Forum estimates the total cost for responding to the Gold King Mine Spill could range from $338 million to $27.7 billion based on the federal government’s own cost-benefit analyses for cleaning up toxic waste and oil spills.
“There is no direct precedent for the toxic Animas River spill in Colorado and past regulatory actions from agencies, but we can learn from previous benefit-cost estimates,” writes Sam Batkins, AAF’s director of regulatory policy, adding that he “evaluated four recent regulations’ benefit figures to approximate the cost of the current spill in the Mountain West.”
That’s not good news, considering the mine owner’s allegations that the EPA has dumped toxic waste as far back as 2005, or that billions of gallons might be poised to spill in the future.
And that future is unclear due to what still lies beneath:
State and federal officials have offered assurances that the river is returning to “pre-event conditions,” but uncertainty remains over the residue that still lurks beneath the surface flow.
Those remaining metals on the river bottom still could affect aquatic life, agriculture and other aspects of life along the water in ways that are difficult to predict.
“The long-term effects are the concern that every time we have some sort of a high-water event, whether a good rain in the mountains or spring runoff next year, that’s going to stir up sediments and remobilize those contaminants that are sitting at the bottom of the river right now,” said Ty Churchwell, Colorado backcountry coordinator for Trout Unlimited.
CBS4Denver had the opportunity to get an early look at the mine itself, post-spill.
Perhaps the only thing quite as toxic as the spill itself is the messaging cover both local and regional environmental groups and pro-administration activists are providing the EPA, casting blame on private mismanagement and pollution and offering only an “aw shucks, only trying to help” defense of the agency:
Only the NRDC offered a response.
Earth Justice and several other environmental groups have made no public comment on the Animas River spill at all. In their public statements, neither the NRDC nor the Sierra Club pointed the finger at the EPA.
Though the Sierra Club did not respond to our inquiries, it did offer this public statement on August 11:
The Animas River was sadly already contaminated due to the legacy of toxic mining practices. The company that owns this mine has apparently allowed dangerous conditions to fester for years, and the mishandling of clean-up efforts by the EPA have only made a bad situation much worse. As we continue to learn what exactly happened, it’s time that the mine owners be held accountable for creating this toxic mess and we urge the EPA to act quickly to take all the steps necessary to ensure a tragedy like this does not happen again.
In a recent statement, the NRDC’s President Rhea Suh said only that the EPA “inadvertently triggered the mine waste spill last week,” while casting mining companies and Republicans in the House of Representatives as the responsible parties.
They probably wouldn’t like the Colorado Springs Gazette’s suggestion that mine clean up be privatized:
Critics have recoiled at the thought of putting the government’s environmental work into private hands.
No longer should they perceive or argue a level of federal competence that exceeds what the private sector might provide. The EPA unleashed a toxic sludge of arsenic, lead and other harmful toxins without bothering to warn people downstream, including tribal leaders and governors of neighboring states. They botched the inspection that led to the spill and bungled the response.
June 18 Colorado Energy Roundup: Pushback on EPA ozone rule effect on rural US, oil and gas operations get the thumbs up from Colorado communities
Filed under: Archive, CDPHE, Environmental Protection Agency, Hydraulic Fracturing, preferred energy, solar energy, wind energy
The Environmental Protection Agency’s proposed ozone rule–reducing acceptable ground-level ozone from 75 ppb to between 65 and 70–has drawn criticism from 22 medically trained members of Congress (E&E Greenwire, behind paywall:
In a letter to EPA Administrator Gina McCarthy, the 22 Republican members of the House and Senate raised questions about the analysis underlying EPA’s conclusions about the public health benefits of a lower ozone limit.
EPA in November proposed to tighten the national ambient air quality standard for ozone from 75 parts per billion — last set in 2008 during the George W. Bush administration — to between 65 and 70 ppb after finding that the 75 ppb limit was no longer adequate to protect public health.
“As healthcare professionals, we rely upon the most accurate health data,” the group of lawmakers wrote. “From this vantage, we believe that the proposal’s harms outweigh its claimed benefits and are concerned it could ultimately undermine our constituents’ health.”
Of the lawmakers signing the letter, 13 have doctor of medicine degrees. Some of the other signatories have been trained as dentists or eye doctors. Two are registered nurses. Sen. Bill Cassidy (R-La.), who has a doctor of medicine degree, led the effort.
From the letter to McCarthy:
Studies show that income is a key factor in public health, a link confirmed by our first-hand experience as medical professionals caring for patients, including the low income and uninsured. As well, stakeholders have noted serious questions regarding the health benefits EPA claims to support the proposal, and we are concerned that the uncertain benefits asserted by EPA in its ozone proposal will be overshadowed by its harm to the economy and human health. In light of the long-term continuing trend towards cleaner air, as well as ongoing work by states toward further improvements under existing regulations, we encourage EPA to protect American jobs, the economy, and public health by maintaining the existing ozone NAAQS [National Ambient Air Quality Standards].
The letter, citing a study from the National Association of Manufacturers, points out that at a 65 ppb threshold for ozone, rural areas like Yellowstone and the Grand Canyon National Parks would fall into “non-attainment” of the new standard, and as much as over half the entire nation. This would lead, naturally, to job loss and economic turmoil, “making the proposal the most expensive regulation in U.S. history.”
Oil and gas development a boon to one Colorado community, whether or not the company’s investment pans out:
DE BEQUE — A natural gas project by Black Hills Exploration & Production in the De Beque area is involving some upfront investment risks by the company, but with the potential of large rewards for not only Black Hills but the region’s economy and tax base.
Whatever happens, the investment already is paying off for local farmers and ranchers, thanks to a pipeline and water pump station project that officials celebrated the completion of Friday. Black Hills paid for the $8 million project to help supply water for its hydraulic fracturing of wells, but most of the water will be used for irrigation, including by the town, which will reduce De Beque’s need to exercise its senior water rights at the expense of area ranchers.
The water project is an upfront investment that won’t fully pay off for Black Hills unless its De Beque drilling project proceeds to the development phase. But John Benton, vice president and general manager of Black Hills E&P, likes the fact that the company has built something of such value to the De Beque area no matter how its drilling project pans out.
“Regardless of whether we go forward or not with our program, it’s created something that will benefit the community for years to come,” he said.
If the project proceeds, Mesa County could see not only more jobs but an increased tax base.
Not all Colorado communities are filled with activists seeking to ban or otherwise hinder oil and gas development in their back yard:
A few years after a series of anti-oil-and-gas ordinances and ballot initiatives cascaded through several towns in Colorado, some local governments are speaking up in favor of the state’s multibillion-dollar energy industry.
In the last few months, trustees in the tiny town of Platteville in Weld County and commissioners from counties near Denver have signed letters and passed resolutions that speak in favor of the industry and its high-paying jobs.
“If there’s someone who comes in and wants to ban fracking, at that time we’ll vote on it,” Bonnie Dunston, Platteville’s mayor, told the Denver Business Journal.
“But we’re not going to ban fracking. Oil and gas does a lot for us, for our town, our community, and we’re just saying that we’re going to keep oil and gas going here in Platteville,” she said.
Douglas, Arapahoe, and Jefferson county officials have all recently either affirmed support for responsible development within the oil and gas industry or indicated their opposition to bans of any kind, according to DBJ. The officials noted that, while the counties did not see as much direct involvement within their borders compared to places like Weld County, many of their residents worked within the industry.
Filed under: Environmental Protection Agency, Hydraulic Fracturing, preferred energy
A key section of the July report issued by the US Senate Environment and Public Works Committee focusing on Colorado environmental activists draws from work that first appeared at the Independence Institute’s Complete Colorado blog.
In a wide ranging, heavily footnoted report released July 30, the Minority Staff of the United States Senate Committee on Environment and Public Works demonstrates the confluence of the Environmental Protection Agency, eco-left activists, and what it calls the “Billionaire’s Club” in a complicated, tax-evading, multi-million dollar philanthropy scheme of dark money:
“Through these arrangements, the Billionaire’s Club gains access to a close knit network of likeminded funders, environmental activists, and government bureaucrats who specialize in manufacturing phony “grassroots” movements and in promoting bogus propaganda disguised as science and news to spread an anti-fossil energy message to the unknowing public. Not only is the system incredibly sophisticated, but the Club’s attorneys and accountants have mastered the loopholes and gray areas in the tax code, which enable them to obtain a full tax benefit, even when the recipient of the grant is not recognized as a public charity, and even if the money indirectly and impermissibly funds political activities.”
The report finds fault with the billionaires’ “scheme to keep their efforts hidden and far removed from the political stage,” which they characterized as “deliberate, meticulous, and intended to mislead the public.”
“While it is uncertain why they operate in the shadows and what they are hiding, what is clear is that these individuals and foundations go to tremendous lengths to avoid public association with the far-left environmental movement they so generously fund,” the report authors wrote.
Highlighting the byzantine tax procedures used to cloak the various foundations and individual donors, the report used case studies of efforts targeted in several different states, including Colorado.
In the section on activism targeting hydraulic fracturing, the report singled out New York anti-fracking efforts that later manifested in Colorado:
The same billionaire foundations behind the New York anti-fracking efforts have also moved into Colorado through two coalitions – Local Control Colorado and Frack Free Colorado, which are directly affiliated with the NY-based groups already discussed. Local Control Colorado claims to be, “a coalition of community, consumer and public interest groups from across Colorado” promoting an anti-fracking ballot measure. However, they list DC-based Food & Water Watch, which is funded by CA-based Schmidt and Tides, and NY-based Park, as part of the coalition. Food & Water Watch is also listed as a partner to another member of the Local Control Colorado coalition, Frack Free Colorado (FFC). Self- described as a “collaborative, grassroots movement that works to raise awareness about the dangers of fracking,” FFC’s website states the group is “a people’s movement that consists of concerned citizens, companies … and organizations.” However, at least two of the organizations listed as a member of FFC – Artists Against Fracking and Food & Water Watch – are based in New York and Washington, DC. Interestingly, FFC has reportedly tried to hide its partnership with another NY-based organization, Water Defense.
The attempt to keep these connections secret include removing evidence from the group’s web pages, as first reported by CompleteColorado.com in November 2013.
But the connections are repeatedly clear and demonstrable, and include the names of several specific individuals:
In addition to the funding and partnership ties, these schemes have one key employee in common who binds these cross-country efforts: Russell Mendell. Mendell previously worked for three of the NY-based organizations – Frack Action, New Yorkers Against Fracking and Water Defense. While at Frack Action in November 2011, Mendell organized a rally of activists in front of the White House calling for the rejection of the Keystone XL pipeline. Mendell was also active in the Occupy Wall Street movement, once stating that Occupy was “about linking arms between the various movements … there’s not a lot that separates the environmental movement and Occupy Wall Street.” In 2012, Mendell, along with another Water Defense employee, Ana Tinsely, left to move across the country and work for FFC in an apparent coordinated effort to apply the same activist tactics used in New York to the attack on fracking in Colorado. Overall, these schemes illustrate a model with FFC and Local Control Colorado “grassroots” coalitions that bind efforts via partnerships with billionaire-backed groups that are far from local.
Simon Lomax, a Denver-based energy industry consultant and spokesman for Energy In Depth, told Complete Colorado that none of the revelations are particularly surprising.
“This report confirms yet again that national ‘ban fracking’ groups and their ultra-rich donors have spent years campaigning behind the scenes to wipe out one of Colorado’s most important industries. I don’t know who they think they are fooling any more, but I must admit, it’s kind of amusing to watch guys like Russell Mendell scramble to hide their ties to Occupy Wall Street, Water Defense, Food & Water Watch and other fringe political groups,” wrote Lomax.
But this is not just about eco-left activists pushing a few ballot measures, as they did in 2013. This year, the stakes are much higher.
“Believe it or not, Congressman [Jared] Polis is siding with this cast of characters against Colorado’s working families and practically the entire business community of our state. If he throws his millions behind the activists and their cause, he’ll be bankrolling the permanent expansion of an extreme and angry form of political campaigning in Colorado that isn’t just anti-energy, but anti-business and anti-jobs,” Lomax concluded.
crossposted from Complete Colorado
Filed under: Archive, Hydraulic Fracturing, Legislation, renewable energy
Current through January 24, 2014
Reform defeated: SB14-035 Renewable Energy Standard Repeal *postponed indefinitely*
Senate Bill 35, introduced by State Sen. Ted Harvey, would have repealed “substantially all of the provision enacted by Senate Bill 13-252″ by returning the renewable portfolio standard to 10 percent from 20 percent for rural cooperative electric associations, among other cuts.
The bill, sent to the State, Veterans and Military Affairs committee was killed Wednesday on a 3-2 party line vote. The SVMA committee has been dubbed the “kill committee” by the minority party, where bills are sent to receive a quick despatch.
Comment: As this bill has been killed, the Independence Institute will examine a similar bill, proposed by State Sen. Ray Scott on Wednesday that would reduce the RPS requirement from 20 percent to 15 percent.
SB14-011 Colorado Energy Research Authority
Among other provisions housekeeping provisions, SB 11 “substitutes ‘clean energy’ for ‘renewable energy’” and authorizes additional monies in the amount of $2 million to create an “energy research cash fund” (ERCF) for the next five fiscal years.
Comment: Substituting “clean” for “renewable” energy is noteworthy. The fiscal note estimates a cost of $2,000,000 annually for the next five years for the ERCF from the state General Fund.
SB14-028 Expand Electric Vehicle Charging Station Grants *Passed Senate second reading with amendments*
SB 14 “expands the existing list of persons and entities that are eligible to receive moneys from the electric vehicle grant fund, administered by the Colorado energy office (CEO), by adding private businesses and nonprofits and allowing the CEO to consider the extent to which grant applicants’ proposed charging locations serve existing vehicles or encourages the acquisition of new vehicles.”
Comment: The bill’s fiscal note estimates that the impact will be “minimal” with grant monies collected under HB13-1110 providing the resource stream. Funding will go to as many stations as possible, but could include fulling funding those installations “in a location that is especially advantageous for support of the electric vehicle market.”
SB14-082 Renewable Energy Standard Adjustment for Cooperative Electric Associations
SB82: “In the section of the renewable energy standard statute setting aside a specific portion of electric generating capacity that cooperative electric associations must meet through distributed generation, the bill:
• Eliminates the disparity between cooperative electric associations serving fewer than 10,000 meters and those serving 10,000 or more meters;
• Establishes a uniform 0.5% of total retail electricity sales as the target percentage for distributed generation; and
• Allows the 0.5% to be measured collectively among these associations as a group rather than individually.”
Comment: Fiscal note estimates minimal impact.
SB14-103 Phase In High-Efficiency Water Fixture Options
SB103 “prohibits the sale of lavatory faucets, shower heads, flushing urinals, tank-type toilets, and tank-type water closets on and after September 1, 2016, unless they are a watersense-listed plumbing
Comment: No fiscal note. The bill defines a “watersense-listed plumbing fixture” as:
• Tested by an accredited third-party certifying body or laboratory in accordance with the federal environmental protection agency’s WaterSense program;
• Certified by such body or laboratory as meeting the performance and efficiency requirements of the program; and
• Authorized by the program to use its label.
The bill would expand the current requirements for “water-efficient indoor plumbing fixtures” which apply currently to builders of new homes, new state buildings, and new and renovated residential, office, and commercial buildings, but at a much lower and “less stringent” standard than the one defined by WaterSense.
HB14-1012 Advanced Industry Investment Income Tax Credit
HB1012 “repeals the Colorado innovation investment tax credit and replaces it with the advanced industry investment tax credit.” The tax credit would be available through the end of 2017 for “an equity investment in a qualified small business from the advanced industries, which consists of advanced manufacturing, aerospace, bioscience, electronics, energy and natural resources, information technology, and infrastructure engineering.” The tax credit would equal 25 percent of the investment and up to 30 percent if the business “is located in a rural area or economically distressed area.” Maximum tax credit would be $50,000 for a single tax credit, and up to $2 million per calendar year, with rollover.
Comment: No fiscal note at the present time.
HB14-1030 Hydroelectric Generation Incentive
HB1030 would “promote the construction and operation of hydroelectric facilities in Colorado” by providing incentives for additional installation and elevating community hydroelectric energy facilities “into the community solar garden statute.”
Comment: The bill’s fiscal note estimates a cost of less than $2,500 per year. The hydroelectric power in question would be targeted at those “small hydropower projects of 30 megawatts or less” sited in “streams, diversion ditches for irrigation, or existing dams.”
HB14-1064 Severance Tax Distribution To A Local Government That Limits Oil And Gas Extraction *postponed indefinitely*
HB1064 “prohibits any local government that has a moratorium or permanent prohibition on the extraction of oil and gas from receiving more direct distributions or grants and loans than the local government received in the fiscal year during which the moratorium or permanent prohibition was enacted.”
Comment: The restriction would be lifted in the following fiscal year if a county or municipality rescinds the moratorium or permanent prohibition. In the meantime, the “moneys that would otherwise have been distributed to the county or municipality are redistributed on a pro rata basis to all other eligible counties and municipalities.” The fiscal note puts a total price tag of approximately $40,000 over the next two fiscal years.
In other words, the bill would properly restore balance between counties and municipalities who choose to limit oil and gas extraction and those that do not, as the localities instituting prohibitions should not benefit from increased activities elsewhere by matching severance tax revenues to activities permitted.
**Bill postponed indefinitely, 7-6 party line vote:
Jonathan Singer, D-Longmont, said. “My community is downstream and downwind from oil and gas operations and we feel the public health impacts of fracking regardless of existing fracking bans.”
Sonnenberg presented his proposal as a measure of fairness, ensuring that cities don’t benefit financially from a practice they’ve banned and that those communities that do allow fracking benefit from more of the severance tax revenue.
“Passing this bill would have directed a higher percentage of severance tax funds to communities that help provide for the energy needs of our state,” said Sonnenberg.
“I am disappointed the Democrats failed to see the importance of providing these communities additional revenue to support the oil and gas industry.”
HB14-1067 Renewable Energy Electric Standard REAs Move to 2025
This renewable reform bill, HB1067, “changes the target date to achieve the renewable component of the energy generation portfolio of retail cooperative electric associations [CEA] serving 100,000 or more customers, and qualifying wholesale utilities” from 2020 to 2025.
Comment: The fiscal note indicates a minimal impact. CEAs required to comply with the 20 percent renewable energy standard by 2020 would need to meet step-change adjustments that increase from 6 percent in 2015-2019 to 20 percent in 2020 would see a five year extension for meeting requirements. Measures available to comply with the requirement include development of “eligible generation facilities,” entering into power purchase agreements with “an eligible energy generation facility,” or purchasing “existing renewable energy credits”–each of which, the fiscal note determined, would involve “additional costs” for the CEA.
The Independence Institute will also examine any additional energy bills introduced this session as they become available. This bill survey, completed on January 10, did not indicate any bills on hydraulic fracturing.
HB14-1113 Electric Renewable Energy Standard Reduction
HB1113 orders the public utilities commission to establish electric resource standards, or minimum percentages of electricity that electric service providers “must generate or cause to be generated from recycled energy and renewable energy resources.” This bill moves the current required minimums from 20 to 15 percent until 2019, and from 30 to 15 percent for 2020 and subsequent years. It also reduces the required minimum for rural electric coops to be reduced from 20 to 15 percent for 2020 and in the years following.
Comment: No fiscal note. This bill looks to challenge provisions from last year’s SB252, while also leveling all required electricity standards to be a flat 15 percent for both investor-owned and rural electric cooperative associations from 2020 and thereafter. Step-increases mandated by earlier bills are voided and returned to a standard 15 percent.
HB14-1138 Renewable Energy Standard Add Hydroelectric to Eligible
HB1138 “amends the definition of ‘renewable energy resources’ that can be used to meet the state’s renewable energy standard to include hydroelectricity and pumped hydroelectricity.”
Comment: Fiscal note indicates minimal impact. The impact on state policy, however, could be quite large. Adding hydroelectric and pumped hydroelectric electricity to be added to the state’s list of eligible energy resources for meeting Colorado’s renewable energy standard “reduces the amount of energy required to be generated from other eligible resources (principally wind),” according to the bill’s fiscal note. This could affect not only state agency and local government electricity rates, but those of ratepayers statewide as well.
HB14-1150 State and Local Government and Federal Land Coordination
HB1150: “The bill creates the division of federal land coordination in the department of local affairs to address federal land decisions in Colorado that affect the state and local governments. The chief coordinator is the head of the division and is required to form a federal land coordination task force to study certain federal land decisions. The department of agriculture, the department of natural resources, the Colorado tourism office, the Colorado energy office, and the office of economic development are required to assist the division at the request of the chief coordinator. Based on task force findings, the chief coordinator may recommend that a local government receive a grant for research and analysis to form a coordinated response to a federal land decision.”
Comment: No fiscal note.
HB14-1159 Biogas System Components Sales and Use Tax Exemption
HB1159: “The bill exempts from state sales and use tax components used in biogas production systems. Local governments that currently impose sales or use tax on such components may either continue to do so or may exempt them from their sales or use taxes.”
Comment: The fiscal notes estimates a reduction in state tax revenues of up to $635,000.
This bill creates a sales and use tax exemption, or carve out, for capturing biogas to be used as a renewable natural gas, or for equipment used to create electricity from the biogas. Biogas “is
a natural by-product that is released as manure, food waste, and other organic compounds
breakdown.” This bill appears targeted to one project in Weld County, the Heartland Biogas Project, a 20 MW “anaerobic digester and renewable natural gas (RNG) facility” set to come online as soon as April 2014.
Filed under: Archive, Hydraulic Fracturing, renewable energy
Periodically, the Independence Institute’s Energy Policy Center will take a look at the good, the bad, and the ugly in energy stories from around the United States and abroad, and bring the best (and worst) of those stories to your attention.
1. Secretary of the Interior Sally Jewell may have violated Colorado Open Meetings Law under its sunshine statutes by shutting out members of the press while visiting Moffat County on Tuesday. The meeting in Colorado centered on the status of the sage-grouse, a species whose designation could affect energy projects in the northwest portion of the state:
As she was leaving, Leavitt Riley said she saw Jewell in a car in the parking lot and the driver-side door was open, so she approached Jewell “and she said the press was not allowed at this meeting,” Leavitt Riley recalled.
“I said, do you realize more than a dozen elected officials were in it? She said the tour was open to the press but this was a closed meeting” and then drove away, Leavitt Riley said.
She said the newspaper is pursuing the matter with the Colorado Press Association. No one with the U.S. Secretary of the Interior’s office was available for comment Tuesday night.
2. From Lachlan Markay at the Washington Free Beacon–a Politico column riddled with inaccuracies from anti-fracking activists:
A pair of prominent environmentalists penned a column Tuesday for Politico Magazine attacking hydraulic fracturing littered with dishonest and incorrect claims.
“If you calculate the greenhouse gas pollution emitted at every stage of the production process—drilling, piping, compression—it’s essentially just coal by another name,” McKibben and Tidwell wrote.
The claim is frequently sourced to Cornell scientists Robert Howarth and Anthony Ingraffea, who have found significantly higher life cycle emissions than are found in other studies.
Numerous government agencies, environmentalist groups, and academics have panned Howarth and Ingraffea’s work on the issue and produced their own studies showing relatively low life cycle emissions from natural gas.
“Their analysis is seriously flawed,” according to three Cornell colleagues, professors in the university’s departments of earth and atmospheric sciences and chemical and biological engineering.
3. Michael Bastasch at The Daily Caller highlights a report on the social benefits of fossil fuels:
Burning off carbon dioxide into the atmosphere to provide cheap electricity may have affected the climate, but the benefits of a carbonized economy far outweigh the costs, according to a new study.
The pro-coal American Coalition for Clean Coal Electricity (ACCCE) released a study showing that the benefits of carbonized fuel, like coal, to society are 50 to 500 times greater than the costs. Over the past two-and-a-half centuries increased fossil fuel energy production has helped more than double global life expectancy and increase global incomes 11-fold.
4. North Carolina State University issued a study finding that increasing the use of electric vehicles “is not an effective way to produce large emissions reductions”:
“We wanted to see how important EDVs may be over the next 40 years in terms of their ability to reduce emissions,” says Dr. Joseph DeCarolis, an assistant professor of civil, construction and environmental engineering at NC State and senior author of a paper on the new model. “We found that increasing the use of EDVs is not an effective way to produce large emissions reductions.”
The researchers ran 108 different scenarios in a powerful energy systems model to determine the impact of EDV use on emissions between now and 2050. They found that, even if EDVs made up 42 percent of passenger vehicles in the U.S., there would be little or no reduction in the emission of key air pollutants.
Filed under: Archive, Hydraulic Fracturing, Legal, Legislation
A contentious battle between anti-fracking activists such as Our Broomfield and supporters of the energy gathering method, including the Colorado Oil and Gas Association, will have to wait just a bit longer for the dust to settle in Tuesday’s election.
Broomfield’s Question 300, a 5 year prohibition on the use of hydraulic fracturing and associated activities, will go to an automatic recount some time next week depends on the outcome of settling the remaining outstanding ballots. The measure was defeated by a mere 13 votes in the initial count:
Yet there is a wild card in the recount process — there are still eight days for military and overseas ballots to be returned, and deficiencies in some Broomfield ballots, such as questions about signatures or first-time mail voters who did not include a copy of their ID — need to be addressed. Those ballots could change the final tally and impact a recount, said Andrew Cole, a spokesman for the Secretary of State’s Office.
If such a small margin remains, the Colorado Secretary of State’s office told the Broomfield Enterprise an automatic recount would be triggered, using the “one half of one percent difference” rule.
The proposed fracking bans elsewhere across the state–Fort Collins, Lafayette, and Boulder–amounted to public relations window-dressing for anti-fracking activists in areas where hydraulic fracturing typically has not occurred in the past, or where the possibility of new developments would soon take place.
“Boulder and Lafayette were nothing more than symbolic votes. Lafayette’s last new well permit was in the early 1990’s and Boulder’s last oil and gas well was plugged in 1999,” Colorado Oil and Gas Association president Tisha Schuller told The Colorado Observer.
As for Fort Collins, The Coloradoan blasted the measure there in a pre-election editorial for making the city a “pawn” in a “potentially costly environmental position statement” that “smacks of agenda-based partisanship” in a city that has few natural resources and is already ninety percent off limits to oil and gas development, even before the 5 year moratorium goes into effect.
Following the passage of the three measures, the Denver Post expressed disappointment in what it dubbed an “irresponsible agenda” in the form of the anti-fracking opponents’ real desire for a complete ban on hydraulic fracturing, disguised as local grassroots referenda.
“Symbolism needn’t be coherent,” the Post said.
Neither was the reaction to support of hydraulic fracturing when Zev Paiss, part of Frack Free Boulder, equated families who depend on natural resource development to terrorists:
“The scientists and their families who work on weapons of mass destruction depend on that regular paycheck too.”
In addition, that irresponsible symbolism will likely trigger big dollar lawsuits from the state:
Gov. John Hickenlooper told CBS4 Political Specialist Shaun Boyd he will sue any community that bans fracking. He says the state constitution splits surface and mineral rights and bans violate that. State law also gives the Colorado Oil and Gas Commission rule-making authority, not local governments.
That didn’t seem to faze anti-fracking activists like Josh Fox, who tweeted:
— Josh Fox (@gaslandmovie) November 6, 2013
That the symbolic fracking war pitted David–grassroots, underfunded fracking opponents–against the Goliath known as the oil and gas industry became part of the campaign narrative in all four measures, something the Wall Street Journal noted:
Colorado, with its long history of energy extraction, would be a bigger test of whether the oil and gas industry and its supporters can surmount growing opposition from some communities and national environmental groups.
As Colorado Peak Politics concluded, the successes emboldened not a rag-tag coalition, but a mightily funded effort to launch “frack wars across Colorado.”
Those big dollars, in a post collected by Peak, point to under-the-table, “dark” money being spent to support the bans. The decentralized attacks on fracking in Colorado can be traced, in part, to smoke-and-mirrors, DC-based outfits like Center for Western Priorities, according to the Washington Examiner.
With both sides claiming victory–and with Broomfield’s results hanging in the balance for a few more weeks and possible lawsuits looming on the horizon–2013’s fracking bans may only be a prelude to more municipal proposals, and possibly a statewide measure in 2014, according to the Denver Business Journal.
By Simon Lomax
Be afraid. Be very afraid…
That was the Denver Post’s front page article on March 16, which profiled a couple – Mieko and Charles Crumbley – who claim seismic surveying near Brighton, Colo. damaged a groundwater well on their property and put cracks in some of the walls in their home. But the oil and gas company that commissioned the survey says its contractors did not cause the damage, according to the story by the Post’s environmental writer Bruce Finley. Sounds like one of those classic “he said, she said” situations, right?
Well, no, actually. In reality, the claims by the Crumbleys are very unlikely, based on readily available facts on the way seismic surveying works. But the reporter failed to include those facts, and painted a misleading and frightening picture for his readers.
The type of seismic surveying in question is carried out by vibroseis trucks, which are informally known as “thumper trucks.” The use of these trucks has greatly reduced the use of small dynamite charges in seismic surveying. Here’s how the reporter describes the way these vehicles work:
“[T]he trucks, weighing up to 30 tons, drop heavy, metal vibrator plates from their undercarriages to thump and shake the ground. Analysis of pressure waves, similar to ultrasound, generates data that companies use to determine where to drill for oil and gas.”
Sounds pretty ominous. But take a look at this video of some vibroseis trucks in action:
In fact, while these vehicles are unquestionably big, the vibrations they create are very small. For that reason, scientists with state and federal agencies, experts in academia, the geologists and engineers of the oil and gas industry, and even other media outlets have reaffirmed the safety of vibroseis trucks many times. Here are a few examples:
In an urban environment, vibroseis-generated waves are less than background noise generated by buses, trucks, and trains … At its source you can feel a vibroseis shake the ground but as you move away your ears will hear the airborne sound waves much longer than your feet can feel those in the ground.
Residents standing near a vibroseis truck … may be able to detect it, but this process will not cause any interruptions of daily life or damage to structures.
Despite their relatively benign operations, these big machines sometimes appear more daunting to the populace than the commonplace dynamite. To assuage any concerns in that regard, companies sometimes resort to public demonstrations prior to operations. … Two light bulbs and two raw eggs were buried eight inches under the vibrating pads. Following the demo, the eggs were retrieved unbroken and the light bulbs still worked – to the amazement of the crowd of onlookers…
“If you stand near the truck you’ll be able to feel slight shaking in the bottom of your feet, but the level of shaking is far below the levels required to cause damage to pavement or structures” said [USGS scientist Rob] Williams.
The seismic imaging process does not damage the street or negatively impact the earth below ground.
[T]here is no reliable evidence of these trucks causing well problems or damage to buildings.
Unfortunately, the Post story didn’t just leave out these expert opinions. The article went a step further and suggested the Crumbley claim was one of several structural damage complaints. From the news story:
“State records show that since 2000, residents have filed 16 formal complaints about seismic surveys.”
Given the statements by the USGS, NETL and others about the very low risk of structural damage from vibroseis truck, we asked the Colorado Oil and Gas Conservation Commission to identify those 16 complaints, which include the Crumbley case. Then we reviewed the case files on the COGCC’s online database.
It turns out just three of the complaints allege any structural damage from vibroseis truck operations. The rest of the complaints mostly deal with disputes over property access, noise and the potential impact of these heavy vehicles on soil and crops. Besides the Crumbley case, there are no other complaints of damage to a house, and only two allegations of damage to water wells.
In the first water well complaint, from 2000, the COGCC concluded there was “no indication that oil and gas activities in this area impacted the well.” It turned out the well was located next to the burned-out shell of an old house, hadn’t been used in two years, and there was trash both around and floating inside the well. In the second water well complaint, from 2002, the COGCC found“no direct evidence of impact due to oil and gas operation” and concluded “[t]he most probable cause is corrosion in the casing from a shallow aquifer.”
So, instead of state records showing 15 other cases that support the Crumbley complaint, there appear to be none. Which makes sense, of course, because state and federal officials, industry experts and academics have repeatedly said that vibroseis trucks are very unlikely to cause structural damage.
However, let’s play the reporter’s game for a moment and assume the worst possible interpretation of those state records. Even when you group together all the 16 complaints to the COGCC that mention seismic surveying over the last 13 years – and include some more from residents in Aurora, Colo., as the Post’s story did – it’s hardly evidence of a commercial activity run amok. In fact, the Post’s own reporting suggests an average of between one and two complaints a year. That’s not bad when you consider Colorado’s oil and gas production has more than doubled since 2000. And it’s not scary either.
Of course, only time and further investigation will tell whether the Crumbley’s claims – however unlikely – are correct or mistaken. We’ll also have to wait and see if the alarmist tone of this particular news report scares some other residents into blaming seismic surveying for cracks in their drywall. But we can say two things now without equivocation: The oil and gas industry will cooperate fully with the state regulators investigating this matter, and the business of seismic surveying is nowhere near as scary as reporter Bruce Finley would have you believe.
This column appeared originally on Energy In Depth, a project of the Independent Petroleum Association of America as a research, education and public outreach program “focused on getting the facts out about the promise and potential of responsibly developing America’s onshore energy resource base.”
For a well-researched, easy-to-read, factual primer on hydraulic fracturing, check out our paper Frack Attack: Cracking the Case Against Hydraulic Fracturing.