February 18 Colorado Energy Cheat Sheet: Costly Clean Power Plan event video; EPA Animas River spill gets Congressional scrutiny; fracking ban off 2016 ballot

February 18, 2016 by michael · Comments Off
Filed under: CDPHE, Environmental Protection Agency, Hydraulic Fracturing, Legal, Legislation, regulations 

The Independence Institute and the Competitive Enterprise Institute joined forces on February 16 in Denver to provide an update on the Environmental Protection Agency’s costly Clean Power Plan, including where the rule stands with regard to the U.S. Supreme Court stay issued earlier in February, as well as the impact of the death of Associate Justice Antonin Scalia on the ongoing legal proceedings.

Watchdog’s Art Kane:

The Environmental Protection Agency’s Clean Power Plan rules will slow the Colorado economy, raise electricity rates and barely make a dent in carbon dioxide emissions, opponents and experts on the plan told an audience at the Independence Institute on Tuesday.

“Clean power alone will add billions if not tens of billions of costs to individual consumers and the American economy,” said Gregory Conko, executive director of the Competitive Enterprise Institute.

Myron Ebell, CEI’s director of the Center for Energy and Enviroment released a state-by-state comparison showing Colorado’s 9.49 cents per kilowatt hour is lower than the national average of 10.11 cents. But he said California, which has extensive power plant regulation and has consumers paying 15.11 cents, is a warning for the rest of the country if the Clean Power Plan is instituted.

“This is about keeping the lights on for America’s economy, for Colorado’s economy,” he said, adding any additional costs for energy will take away consumer purchasing power for other goods.

Keeping the lights on and the cost of electricity–the energy that drives our economy.

What happens when costs of electricity go up? It hurts the average Coloradan; the ratepayers and taxpayers already pressured by an economy that has never fully recovered from the recession that have seen their electricity bills skyrocket 63 percent between 2001 and 2014, and Colorado overall, across all sectors from residential to commercial, industrial, and transportation, of 67 percent:

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Those cost increases are being felt, not the least by folks in southern Colorado.

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Regulations impact economies, and officials at a hearing in New Mexico on proposed Bureau of Land Management rules got an earful:

“The implementation of these proposed rules will kill revenue to state and federal government,” said Farmington Mayor Tommy Roberts. “And it will kill jobs at the local level.”

To find the source of Farmington and San Juan County, New Mexico, residents’ frustration, one doesn’t need to look far. Last week, the Bureau of Labor Statistics released a report that showed the area ranked first in the nation in the rate of unemployment growth – from 5.2 percent in 2014 to 7.3 percent in 2015. Since 2009, the region has lost an estimated 6,000 jobs, mainly as a result of a declining oil and gas industry.

“I’ve seen the affects in my community,” said Bloomfield Mayor Scott Eckstein. “This will be a knock-out blow to an already-crippled community.”

In January, the BLM proposed an update to 30-year old regulations on methane and natural gas leaks on BLM and Native American lands. BLM officials estimate the tougher regulations would reduce emissions of the potent methane by about 169,00 tons per year, and decrease volatile organic compound releases by 410,000 tons per year. That reduction would be in keeping with an earlier Obama Administration goal of reducing methane emissions by 45 percent from 2012 levels by 2015.

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Keeping Colorado coal alive:

In March of last year, I had the privilege of traveling to northwest Colorado to film AEA’s “Eye of the Storm” video which chronicled the threats radical environment activists were making against the communities of Craig and Meeker. Thankfully, with your help, we were able to convince the federal government that the Colowyo mine should stay open. Unfortunately, the mine and these communities are under threat yet again.

While in Craig and Meeker, Colorado, I was blown away by the people that I met. Every person knew just how important energy is to their community. From the mayor to the hotel concierge, every single person I spoke with had a personal story about how the energy their community produces and responsibly utilizes makes their lives better. And as many miners pointed out to me, their work provides affordable, reliable energy to the entire region.

Visiting the Colowyo mine was a surreal experience. At first, you drive up a winding dirt road through checkpoints, until you finally reach the mining area. Colowyo is a surface mine situated between the towns of Craig and Meeker. Cresting the ridge and looking down on the pit, you see these bright yellow trucks scurrying around with dirt and coal, but from that distance you can’t tell how massive they are. Realizing the immense scale of this project and the work these men and women do every day is profound—and in a way, beautiful.

One real surprise to me is that soon after stepping out of the truck at the mine, I noticed wildlife. You do not expect to visit a mine and see elk, antelope, deer, and even an owl, but I saw all four within the first hour of our time there. The staff pointed with pride to the areas that had been previously been mined, but were now restored and how well the land and wildlife were thriving

***

The literal ban on fracking is out, but 10 more state constitutional amendments remain, including a “right to a healthy environment”:

“We’re going to pull the one that’s the ban, not the other ones,” Dyke told the Denver Business Journal on Friday. “We’re down to 10, but we still have plenty to work with.”

But while a proposal to ban fracking statewide may be off the table, the other initiatives backed by CREED are just as bad, said Karen Crummy, a spokeswoman for Protecting Colorado’s Environment, Economy and Energy Independence, an issues committee formed by the industry in 2014 to oppose anti-fracking initiatives.

“They withdrew it (the fracking ban proposal) because they know the vast majority of Coloradans support responsible oil and natural gas development and are against banning an entire industry,” Crummy said via email.

“However, their remaining proposals are just as irresponsible and extreme because they would still effectively ban development,” she said.

The other amendments, calling for 4,000 foot setbacks away from “special concern” areas along with the healthy environment proposal remain de facto fracking bans, and in most cases, include all oil and gas development not just the controversial hydraulic fracturing method.

For example, proposal #67:

Section 1. Purposes and findings. THE PEOPLE OF THE STATE OF COLORADO FIND AND DECLARE:

(a) THAT OIL AND GAS DEVELOPMENT, INCLUDING BUT NOT LIMITED TO THE USE OF HYDRAULIC FRACTURING, HAS DETRIMENTAL IMPACTS ON PUBLIC HEALTH, SAFETY, WELFARE, AND THE ENVIRONMENT;

(b) THAT SUCH IMPACTS ARE REDUCED BY LOCATING OIL AND GAS DEVELOPMENT FACILITIES AWAY FROM OCCUPIED STRUCTURES AND AREAS OF SPECIAL CONCERN; AND

(c) THAT TO PRESERVE PUBLIC HEALTH, SAFETY, WELFARE, AND THE ENVIRONMENT, THE PEOPLE DESIRE TO ESTABLISH A SETBACK REQUIRING ALL NEW OIL AND GAS DEVELOPMENT FACILITIES IN THE STATE OF COLORADO TO BE LOCATED AWAY FROM OCCUPIED STRUCTURES, INCLUDING HOMES, SCHOOLS AND HOSPITALS; AS WELL AS AREAS OF SPECIAL CONCERN.

Section 2. Definitions.

(a) FOR PURPOSES OF THIS ARTICLE, “OIL AND GAS DEVELOPMENT” MEANS EXPLORATION FOR AND DRILLING, PRODUCTION, AND PROCESSING OF OIL, GAS, OTHER GASEOUS AND LIQUID HYDROCARBONS, AND CARBON DIOXIDE, AS WELL AS THE TREATMENT AND DISPOSAL OF WASTE ASSOCIATED WITH SUCH EXPLORATION, DRILLING, PRODUCTION, AND PROCESSING. “OIL AND GAS DEVELOPMENT” INCLUDES, BUT IS NOT LIMITED TO, HYDRAULIC FRACTURING AND ASSOCIATED COMPONENTS.

Judge the activists by their words–they want bans or regulations so onerous as to yield the same results. This isn’t just about a fracking ban, although the most explicit amendment calling for a statewide ban has just been pulled. Make no mistake–this is about the wholesale removal of responsible natural resource extraction that gives Coloradans affordable and reliable energy.

Too little, too late?

Windsor High School junior Kamille Hocking worried a dozen oil wells on her family’s 132-acre Colorado homestead might sicken them. Then, Rebecca Johnson, an Anadarko Petroleum Corp. engineer, used a blender in her chemistry class to show the interaction of swirling frack sand, city water and friction reducer.

“We heard a lot of stories about how it could get into the water and pollute the land,” said Hocking, who is 16. “I’m going to tell my parents that fracking fluid only makes cracks in the rock the size of a hair that the sand gets into and holds open.”

Facing 10 possible ballot initiatives restricting fracking, Anadarko has deployed 160 landmen, geologists and engineers such as Johnson to Rotary clubs, high schools and mothers groups. They demonstrate how drilling works and try to convince people that the technique and the accompanying chemicals and geological effects don’t harm the environment or public health.

The wide-ranging outreach in Colorado, the nation’s seventh-biggest oil producer and sixth-largest gas provider, represents a policy shift. The energy industry that has been known for insisting on confidentiality from employees about fracking practices now allows geologists, landmen and colleagues in 40 Anadarko job categories to divulge details of what they do to their churches, neighbors and golfing buddies.

Johnson, who’s personal motto is “faith, family and fracking,” told students in Windsor that she’s supervised 1,000 fracks in the course of her 24-year career without harm to the environment.

“I live right here,” Johnson said when she visited the school 60 miles (97 kilometers) north of Denver this month. “My family is here. My mother-in-law graduated from your high school. She turns 80 this year. We would know if something’s wrong.”

Real facts from the folks who live and work in the communities in question.

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More rulemaking on the way, regardless of which amendments make the 2016 ballot:

Fresh off some recent rulemaking, Colorado’s oil and gas regulatory agency is turning its attention to one of the most persistent complaints from people living near extraction operations: noise.

The Colorado Oil and Gas Conservation Commission is in the process of gathering technical data from state health experts, industry officials and third party consultants regarding noise, its health impacts and mitigation measures, said Dave Kulmann, COGCC deputy director.

Since discussions are still in the early stages, no date is set for when formal rulemaking might start, although it will likely be some time late in 2016. Kulmann said the agency wants to gather the technical data before speculating on which specific aspects of the current regulations might be beefed up, but it is clear, he said, that noise is an issue.

In 2015, after implementing a new complaint process on Jan. 9 of that year, the COGCC received a total of 330 complaints on issues ranging from odors to traffic problems to property damage, according to a detailed complaint report compiled by COGCC. Of the total complaints, 123 were due to noise.

***

The Gold King Mine and Animas River spill–and the EPA–are still under scrutiny, even if the prominent news coverage has waned:

If a private company dumped three million gallons of toxic sludge into Colorado waterways, we’d be flooded with daily media updates for months. Yet the press has by now forgotten the disaster unleashed in August when EPA contractors punctured an abandoned mine. New evidence suggests the government isn’t coming clean about what happened.

EPA planned its disastrous investigation of the mine for years, not that you’d know: The agency assumed a layout of the area that contradicted public records, including the remarkable conclusion that a drain ran near the ceiling of the mine’s entrance. This led EPA to believe that water backed up only about half the tunnel. The agency didn’t test the water pressure, a precaution that would have prevented the gusher. EPA hasn’t explained this decision, and emails obtained by the committee show the on-site coordinator knew there was “some pressure.”

The crew made more bad decisions than characters in a horror movie. About a week before the blowout, the on-site coordinator went on vacation and left instructions that his replacement seems to have ditched. For example: Don’t dig toward the tunnel floor unless you have a pump handy. The crew pressed downward without a pump and intentionally unearthed the mine’s plug. “What exactly they expected to happen remains unclear,” the report concludes. The Interior Department now euphemistically calls this series of events an “excavation induced failure.”

EPA is so far suggesting that no one committed crimes, and maybe so. But consider: EPA cranked out a report three weeks after the disaster and said the Interior Department would conduct an independent review that the Army Corps of Engineers would sign off on. EPA testified to the committee that Interior would look for wrongdoing, though Interior said the department was only offering technical support.

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.

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(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.

August 13 Colorado Energy Roundup: EPA dumps on Colorado with Clean Power Plan, Ozone rule–then releases a toxic mess!

August 13, 2015 by michael · Comments Off
Filed under: CDPHE, Environmental Protection Agency, Legal, Legislation, PUC 

To say the Environmental Protection Agency has been in the news lately would be an understatement. Just this time last week, less than 24 hours after triggering a spill of toxic sludge including heavy metals into the Animas River in SW Colorado, most folks were unaware of the situation due to a lack of EPA communication–but more on that in a minute.

They were too busy focused on the new carbon-cutting Clean Power Plan rules being dumped on the state by the regulatory side of the agency.

Here’s a recap of the CPP, as Independence Institute’s Mike Krause can explain:

Or more in depth from former Colorado Public Utilities Commission chair, Ray Gifford:

Last week the EPA finalized the rule, as we told you in last week’s edition of the Energy Roundup, with the Colorado Attorney General Cynthia Coffman considering joining a multi-state lawsuit challenging the CPP’s legality, and legislators possibly returning to some form of transparency or oversight for the CPP state implementation plan, now with pushed back deadlines (and therefore more sessions to seek legislation).

The Independence Institute has a CPP backgrounder that provides further details.

EPA Administrator Gina McCarthy discussed the launch of the CPP in a video on Tuesday.

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Hot on the heels of the CPP, the EPA expects to finalize rules for ground-level ozone some time in October. But large and small businesses alike, from the National Association of Manufacturers to Colorado Association of Commerce and Industry, joined the Center for Regulatory Solutions (CRS), a project of the Small Business Entrepreneurship Council (SBE Council), in a press call yesterday to announce a new study that looked at the effects of the ozone rule on Colorado. The sheer volume of bipartisan commentary opposing the proposed ozone reduction is particularly eye-opening in these normally contentious times, and shows a break with the EPA on new regulations–the ozone rule might be a step too far following so closely behind the CPP:

“This ozone proposal gives the federal government far too much control over state and local planning decisions that shape the Colorado economy,” said Karen Kerrigan, President of the Small Business and Entrepreneurship Council. “Colorado is one of the biggest success stories of the federal Clean Air Act, but now the EPA is moving the goalposts. The standard is so strict – approaching background levels in some areas – that the vast majority of the state economy will be found in violation immediately. Violation of the ozone standard gives EPA the authority to effectively rewrite state and local environmental laws the way Washington wants.”

“No wonder this EPA proposal has been met with such strong and diverse opposition from across Colorado’s political spectrum. Washington officials, all the way up to President Obama himself, should listen to the voices coming from Colorado and across the country and once again give the current standard a chance to work.”

A sample of the key findings:

By lowering the National Ambient Air Quality Standard from 75 parts per billion (ppb) into the 65 to 70 ppb range, EPA would force, with a single action, at least 15 counties in Colorado to be in violation of federal law. These happen to be some of Colorado’s most populated counties, concentrated in the Denver metropolitan area, but a number of counties on the Western Slope may be dragged into non-attainment as well. Together, these 15 counties are responsible for 89 percent of Colorado’s economy and 85 percent of state employment. (Page 3)

Under the Clean Air Act, cities and counties that do not meet the NAAQS for ozone are placed into “non-attainment,” or violation of federal environmental standards. Once in non-attainment, local and state officials must answer to the federal government for permitting and planning decisions that could impact ozone levels. State officials are required to develop an “implementation plan” that imposes new restrictions across the economy, especially the transportation, construction and energy industries. The EPA has veto power over these implementation plans. States that refuse to comply, or have their implementation plans rejected, face regulatory and financial sanctions imposed on them directly from the federal government. (Page 19)

The report, entitled “Slamming the Brakes: How Washington’s Ozone Plan Will Hurt the Colorado Economy and Make Traffic Worse” has revealed that opposition to the ozone rule with a river of comments from Colorado state and local officials.

Here’s a sample of the bipartisan criticism:

State Senator Cheri Jahn (D):

“Coloradans care deeply about the environment. After the great progress we have made on air quality, our state should be praised, not punished. This ozone proposal out of Washington, D.C. scares my constituents, because it could hamstring our regional economy and cost jobs.

We have worked so hard to bring manufacturing jobs to Colorado, and by moving the goal posts on ozone, the EPA is going to chase manufacturing jobs away from our state. This plan could also gum up the approval process for badly needed road and transportation investments, which will make our traffic worse, and make it much harder to attract new industries, grow existing businesses, and strengthen Colorado’s middle class.”

State Senator Ellen Roberts (R):

“If the EPA carries out this ozone plan, Western Colorado will be placed at a terrible economic disadvantage. We have worked hard to responsibly care for our environment even as we grow and diversify our economy.

Tightening the ozone standard any further just does not make sense when the existing standard, which is less than 10 years old, is working. I urge the EPA to reconsider this plan and leave the 2008 standard in place.”

State Senator Jerry Sonnenberg (R):

“The EPA’s proposed new standards would drive small family farms such as mine out of business. We have never been able to afford new equipment and if the only way to comply with this new standard is with new equipment, my family would have to leave agriculture. Even if we could meet the standards with expensive upgrades to our machinery, the increased costs to finance those upgrades, as well as the fuel and the fertilizer, takes a marginally profitable farm and turns it into one that can’t make its payments.

Unless you want to see the family farm only as a memory, one must make the EPA understand that their new standards will have a devastating effect on rural America and the agriculture economy.”

Routt County Commissioners Douglas Monger (D), Cari Hermacinski (R), Timothy Corrigan (D):

“We set and meet high standards because we know it is good for our people and our state. So you might expect us to support the Environmental Protection Agency’s proposed standards for ground-level ozone. Those standards, however, are too overbearing and are meeting with a lot of resistance even in places where air quality regulations are welcome…

These standards must not be implemented. If they go forward as proposed, they will do more than put good people out of work and cause hardships for communities that have done so much to protect the land, air and water around them. They will turn away a lot of people who have been receptive to the idea that government can be trusted to do environmental regulation the right way.”

NAM also released a video ad buy, to be seen across Colorado over the next few days:


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Only the sheer quantity of toxic material–some 3 million or so gallons of Sunny-D colored water laden with heavy metals–comes close to the media coverage of one of the biggest environmental stories in recent Colorado history.

Most of the stories have been widely publicized and shared, so here is a quick look at this EPA-related (not strictly energy-related) blockbuster news blitz from just the past two days alone, in reverse chronological order (most recent first):

EPA Contractor Behind CO Mine Spill Got $381 Million From Taxpayers:

The EPA is not letting the public know the names of the government contractors responsible for spilling three million gallons of toxic wastewater from a southern Colorado mine. The agency is holding the information close — so close, the Colorado attorney general’s office doesn’t have it.

A spokesman with the Colorado attorney general’s office told The Daily Caller News Foundation the EPA had not disclosed the names of the federal contractor that caused millions of gallons of wastewater into the Animas River — leaked contaminants include zinc, copper, cadmium, iron, lead and aluminum.

EPA Withholding Mine Spill Info From State AGs:

The EPA is not letting the public know the names of the government contractors responsible for spilling three million gallons of toxic wastewater from a southern Colorado mine. The agency is holding the information close — so close, the Colorado attorney general’s office doesn’t have it.

A spokesman with the Colorado attorney general’s office told The Daily Caller News Foundation the EPA had not disclosed the names of the federal contractor that caused millions of gallons of wastewater into the Animas River — leaked contaminants include zinc, copper, cadmium, iron, lead and aluminum.

Animas River outfitters shut as plume passes, but say they’ll endure:

“Very difficult,” said Alex Mickel, who has turned hundreds of customers away from his Mild to Wild Rafting each day since the Environmental Protection Agency accidentally unleashed a 3 million gallon torrent of toxic mine water into the headwaters of the Animas last week.

“We are anticipating around $150,000 to $200,000 in lost revenue,” Mickel said. “But from an emotional standpoint, it’s difficult to see a beautiful river damaged in this way.”

Animas River spill leaves Colorado, neighbors weighing EPA lawsuit:

The attorneys general of Colorado, New Mexico and Utah said Wednesday that a lawsuit against the Environmental Protection Agency is an option in the wake of a massive mine wastewater spill caused by the agency.

All three, however, agreed that it’s too early to say if they will sue.

“I would hope that it would not be necessary,” Colorado’s Cynthia Coffman, a Republican, said of a suit in an interview with The Denver Post. “The statements by the (EPA’s administrator) indicate the EPA is accepting responsibility for the accident. The question is: What does that mean? What does accepting responsibility mean?”

Hickenlooper drinks Animas River water to make a point:

Gov. John Hickenlooper on Tuesday drank a hearty gulp of the Animas River in an effort to highlight that the river has returned to pre-contamination conditions.

The governor and his health department director, however, cautioned that citizens should not be freely drinking from the river, because the water was unsafe for consumption even before the Environmental Protection Agency released an estimated 3 million gallons of mining wastewater into it.

But the drinking exercise indicated that state officials are more than confident that the river does not pose a toxic risk to humans, as they publicly stated on Tuesday.

“Am I willing to go out there and demonstrate that we’re back to normal?” Hickenlooper asked out loud after The Durango Herald raised the idea with the governor. “Certainly. I’m happy to do that. I’m dead serious.”

Navajos Distrustful OF EPA Promises On Toxic Mine Spill:

Navajo Nation is furious with the EPA, not just because the agency accidentally spilled three million gallons of toxic mine waste in the region, but because the agency is allegedly trying to get tribal members to waive rights to future compensation for damages incurred by the toxic spill.

“The federal government is asking our people to waive their future rights because they know without the waiver they will be paying millions to our people,” Navajo President Russell Begaye told Indianz.com. “This is simple; the feds are protecting themselves at the expense of the Navajo people and it is outrageous.”

Congressmen: EPA Must Answer For Spilling Toxic Waste:

Republican congressmen are calling for the EPA to be held accountable for spilling 3 million gallons of toxic mine wastewater into the Animas River last week, especially since the agency is a government entity and won’t be punished to the same degree a private company would for spilling waste.

“The EPA must be held accountable for its actions,” Rep. Lamar Smith told The Daily Caller News Foundation in an emailed statement. “If a private company caused such a disaster, it would be hit with substantial penalties and would be required to pay for cleanup.”

“In this case, it will be the taxpayers who foot the bill,” the Texas Republican said. “The EPA has an obligation to the families and businesses that have been devastated by this spill.”

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From the Denver Post house editorial:

The U.S. Environmental Protection Agency’s clumsy, tone-deaf response to the toxic disaster on the Animas River was an embarrassment even to the EPA. One agency official managed to admit the reaction was “cavalier,” but that’s putting a mild face on it.

Top EPA official takes responsibility for Colorado mine spill:

EPA Administrator Gina McCarthy said Tuesday in Washington, D.C., that she takes full responsibility for the spill, which she said “pains me to no end.” She said the agency is working around the clock to assess the environmental impact.

Hickenlooper sees a silver lining:

“Colorado’s governor thinks a mine spill accidentally triggered by an EPA crew will move the state and federal government to more aggressively tackle the “legacy of pollution” left by mining in the West.

Gov. John Hickenlooper said Tuesday that much of the wastewater has been plugged up, but the state and the Environmental Protection Agency need to speed up work to identify the most dangerous areas and clean them up.

The former geologist says that if there’s a “silver lining” to the disaster, it will be a new relationship between the state and the EPA to solve the problem.”

Navajo Nation Mourning, Pleading for Help After Toxic Mine Spill Contaminates Rivers

John Hickenlooper calls Animas River disaster “unacceptable”:

Gov. John Hickenlooper on Tuesday stood on the banks of the Animas River and said last week’s spill of 3 million gallons of contaminated mining waste water into its flow was “in every sense, unacceptable.”

He said the long-term effects of the spill, which happened as the Environmental Protection Agency was investigating the contaminated mine, are unknown.

The governor said he has spoken with the head of the EPA, Gina McCarthy, and described her as “committed” and “firm” in her resolve to respond to the spill. McCarthy will be in Durango and New Mexico on Wednesday, she said Tuesday on Twitter.

“I think we share the anger that something like this could happen,” Hickenlooper said. “But I think that said, our primary role is now: that’s behind us and how are we going to move forward.”

EPA Shrugs after Spilling Millions of Gallons of Toxic Water into a River in the Mountain States

EPA Chief Apologizes as Anger Mounts:

Environmental Protection Agency Administrator Gina McCarthy apologized Tuesday for a mine spill in Colorado that her agency caused last week and planned to travel to the area Wednesday, amid increasing criticism from lawmakers about the EPA’s response.

Ms. McCarthy said at a news conference in Washington that she was still learning about what happened, responding to a question about whether the EPA was reviewing changes in how it cleans up old mines. “I don’t have a complete understanding of anything that went on in there,” she said. “If there is something that went wrong, we want to make sure it never goes wrong again.”

EPA won’t face fines for polluting rivers with orange muck:

Unlike BP, which was fined $5.5 billion for the 2010 Deepwater Horizon disaster, the EPA will pay nothing in fines for unleashing the Animas River spill.

“Sovereign immunity. The government doesn’t fine itself,” said Thomas L. Sansonetti, former assistant attorney general for the Justice Department’s division of environment and natural resources.

And of course, some folks don’t think the EPA should be blamed . . .

June 25 Colorado Energy Roundup

Last week at the Steamboat Institute, Independence Institute Energy Policy Center Director Amy Oliver Cooke moderated a panel entitled “The Coming Storm of Federal Energy Regulations and Their Impact on Colorado Business”–with attorney Ray Gifford discussing the Environmental Protection Agency’s “Clean Power Plan,” Dan Byers of the U.S. Chamber of Commerce offering an explanation of the newly proposed EPA ground-level ozone rule, and Lee Boughey of Tri-State Generation and Transmission revealing the impact of the WildEarth Guardians lawsuit and the Colowyo Mine:

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Blowback over the controversial support of WildEarth Guardians and the lawsuit threatening the Colowyo Mine stirred up trouble not only for New Belgium Brewing Company but over 450 other businesses and organizations listed as WEG supporters who quickly pulled their names from a list of “supporters” on the activist group’s website:

Some businesses listed said they never gave anything to the group responsible for a lawsuit that put Colowyo Coal Mine at risk of closing.

The Craig Daily Press published its first story about local liquor stores and restaurants pulling New Belgium and Breckenridge Brewery beer on June 8, and shortly thereafter, WildEarth Guardians staff deleted its webpage called “Businesses for Guardians.”

The newspaper then published the cached webpage of supporters, and less than 24 hours later, the environmentalists republished the webpage.

On that page, a total of 605 businesses across Colorado and New Mexico were listed as supporters. As of June 18, that number shrunk to 151 businesses listed as supporters.

A complete list of all companies previously named as “Businesses for Guardians” has been archived here as well.

“You don’t mess with my community,” one resident told the Craig Daily Press.

There’s no doubt the Colowyo Mine issue is already impacting the economy of the northwest corner of Colorado:

After less than six months of being in business, the owner of Stacks Smokehouse closed the doors to his restaurant due to Craig’s economic uncertainty in light of what’s happening at Colowyo Coal Mine.

Steve Fulton said his business — which opened in the former Double Barrel Steakhouse building on Feb. 20 — dropped 40 percent days after the community met on June 3 for a public meeting with Colowyo representatives.

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Two Colorado counties have seen tremendous growth in jobs, despite the recent oil and gas downturn:

Two Colorado counties were among the three large U.S. counties with the fastest job growth rate in 2014, the U.S. Bureau of Labor Statistics reports.

And Colorado overall ranked No. 3 for the rate of job growth among states.

In the counties ranking, Weld County topped the list for a second straight year. Weldco tied with Midland County, Texas, with a best-in-the-nation 8.0 percent increase in employment between December 2013 and December 2014, BLS said.

In 2013, Weld County posted 6 percent job growth.

And Adams County came in at No. 3 in the nation with a 6.4 percent growth rate.

In fact, Weld County saw a 19.6 percent gain in natural resources and mining employment over the 12-month period, adding a net 2,074 jobs, BLS estimates.

And Adams County is home to companies that service the energy industry.

Only North Dakota (4.5 percent) and Nevada (4.2 percent) outpaced Colorado’s job growth rate of 3.9 percent, according to the BLS.

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Meanwhile in Indiana (from a press release):

Indianapolis – Governor Pence sent a letter today to President Obama informing him that unless the federal Environmental Protection Agency’s (EPA) Clean Power Plan is demonstrably and significantly improved before being finalized Indiana will not comply. The Governor’s letter in full can be found attached.

“As I wrote to Administrator McCarthy on December 1, 2014, the proposed rules are ‘ill-conceived and poorly constructed’ and they exceed the EPA’s legal authority under the Clean Air Act,” wrote Pence. “If your administration proceeds to finalize the Clean Power Plan, and the final rule has not demonstrably and significantly improved from the proposed rule, Indiana will not comply. Our state will also reserve the right to use any legal means available to block the rule from being implemented.”

“Our nation needs an ‘all of the above’ energy strategy that relies on a variety of different energy sources,” said Pence. “Energy policy should promote the safe, environmentally responsible stewardship of our natural resources with the goal of reliable, affordable energy. Your approach to energy policy places environmental concerns above all others.”

In addition Pence noted, “Higher electricity prices brought by the EPA’s plan will inhibit our ability to advance our manufacturing base and the jobs it creates.”

The EPA’s Clean Power Plan calls for a 20 percent reduction in carbon dioxide emissions from 2005 levels in Indiana by the year 2030. The proposed rules do not dictate how states achieve reduction. Instead, the rule suggests four building blocks as guidelines for compliance. The rules will increase the cost of electricity and force the premature closure of coal-fired power plants, leading to concerns of electricity shortages. On December 1, 2014, Governor Pence and Indiana State agencies submitted letters to EPA Administrator Gina McCarthy detailing the proposed rules’ impact on Indiana and urging their immediate withdrawal.

More than 26,000 Hoosiers are employed in the coal industry in Indiana. Governor Pence has pledged to fight the EPA’s regulations with all legal means at Indiana’s disposal. Governor Pence’s comments today come on the heels of the U.S. Court of Appeals for the District of Columbia dismissing State of West Virginia et al v. Environmental Protection Agency, Case No. 14-1112. Indiana was one of fourteen petitioners in the case, which asked the Court to review the legality of the EPA’s proposed regulations limiting carbon dioxide emissions from existing power plants. The Court of Appeals’ decision was based on procedural, not substantive, issues and does not preclude future litigation challenging the regulation. Indiana intends to renew its challenge in the courts following the release of the final rule.

The EPA is expected to release the final rule in August.

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Thin-film solar–remember Abound Solar?has also taken a tumble in China.

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A quick reminder of why government choosing energy winners and losers is a bad idea–an expensive burden on taxpayers and ratepayers alike.

Disorder in the Court! Disgusted PUC Staff Threatens To Walk Out over Xcel’s Discovery Gaffe

November 22, 2010 by williamyeatman · Comments Off
Filed under: Archive, HB 1365 

On Saturday morning, a defiant PUC Staff threatened to walk out of proceedings on the Clean Air Clean Jobs Act unless the PUC agreed to disqualify an accelerated version of Xcel “preferred” HB 1365 implementation plan. This unprecedented outburst was precipitated by the revelation that Xcel had failed to fully comply with a discovery request.

On Friday afternoon, Peabody counsel Ray Gifford alerted the PUC of a “potentially serious matter” regarding discovery. According to Mr. Gifford, Peabody had come into possession of almost 65 megabytes of data that Xcel did not provide to the parties upon request.

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