June 4 Energy Roundup: Hickenlooper vs. EPA, New Mexico enviro officials cast doubt on Clean Power Plan, and the return of ‘green’ billionaire Tom Steyer

June 4, 2015 by michael · Comments Off
Filed under: Archive, Environmental Protection Agency, Legislation, New Energy Economy, PUC 

The Independence Institute’s Amy Oliver Cooke will moderate a free panel on June 17 in Steamboat Springs, Colorado, discussing the embattled Colowyo Coal Mine in northwest Colorado:

“The Coming Storm of Federal Energy Regulations and Their Impact on Colorado Business”

Are you concerned about the future of the Colowyo Coal Mine? Want to know more about costly new EPA regs on carbon and ozone??

Join our panel of experts to get the facts and get your questions answered.

WHEN: 5:30 to 7 p.m., Wednesday, June 17 (doors open at 5 p.m.; cash bar)

WHERE: Strings Music Pavilion, Steamboat Springs, Colorado

**FREE AND OPEN TO THE PUBLIC**

Questions? info@steamboatinstitute.org or (970) 846-6013

Moderator: Amy Oliver Cooke
Director, Energy Policy Center Independence Institute

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FORUM PANELISTS

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RAYMOND L. GIFFORD
Attorney/Partner, Wilkinson Barker Knauer LLP; former Chairman of the Colorado Public Utilities Commission

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DAN BYERS
Senior Director of Policy, Institute for 21st Century Energy – U.S. Chamber of Commerce

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LEE BOUGHEY
Senior Manager of Corporate Communications & Public Affairs – Tri-State Generation & Transmission Assoc.

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One of New Mexico’s leading environmental officials calls the Environmental Protection Agency’s Clean Power Plan’s scope–and legality–into question:

New Mexico environmental officials are among others in two dozen states pushing back against proposed federal restrictions on emissions from existing power plants. Without state support, the proposed Clean Power Plan won’t reduce carbon dioxide emissions the way the Obama administration hopes it will, according to a new report released by the nonprofit Brookings Institute.

When it comes to clean air, the federal government can set standards, but states decide how to enforce them. New Mexico Environment Department Secretary Ryan Flynn, an attorney, is one of many environment officials across the country who think the rule has problems and may be illegal.

“We agree with the overall goal of the proposed Clean Power Plan,” said department spokeswoman Allison Majure in a statement. “However, we are also extremely concerned about the unprecedented breadth of the proposal.”

New Mexico’s comments on the CPP revealed a pattern of failing by the EPA to communicate with other agencies and states in crafting the proposed clean air regulations:

Majure added in her statement, “The Environmental Protection Agency is using the Clean Air Act, which was designed to control air pollution at the source, to dictate America’s energy policy for the next 20 years,” reflecting comments the department filed with the EPA regarding the rule months ago.

She also said the EPA failed to consult with the Federal Energy Regulatory Commission, energy producers and the Department of Energy in crafting the plan.

The full Brookings report in the article above can be viewed and downloaded here.

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State Sen. Jerry Sonnenberg (R-SD1) examines Gov. Hickenlooper’s capitulation to the EPA over implementing the Clean Power Plan:

While the letter between US Senate Majority Leader Mitch McConnell and Colorado Gov. John Hickenlooper was the focus of the media, it’s a third letter dated December 1, 2014, from the heads of Colorado’s three environmental agencies to the EPA, which will impact Colorado’s three million business and residential utility customers. After 2017, those customers will likely be paying much higher prices as a result of mistakes and miscalculations made over the past year by state and federal officials.

icon_op_edSen. McConnell’s March 19 letter called on all 50 state governors to delay compliance with an EPA carbon-cutting plan until the legality of the plan has been settled in court. Thirteen states are suing to block the EPA plan on legal and constitutional grounds. Hickenlooper’s response, which some climate crusaders cheered as a brush-off of McConnell, indicated that Colorado intends to comply with EPA mandates, which the governor believes are legal.

The bottom line here is that Gov. Hickenlooper has been consistently inconsistent when dealing with recent regulatory onslaughts from Washington. For example, he’s been reasonably proactive in opposing a threatened species listing for the Sage Grouse, and he’s also been forceful in responding to the potential shut-down of the Colowyo coal mine near Craig. But on the EPA’s “climate change” agenda – and the new EPA rules further restricting the state’s control of small bodies of water — that healthy skepticism has been missing.

Indeed.

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Finally, former fossil fuel and hedge fund billionaire turned green crusader, Tom Steyer, appears to be doubling down on Colorado after a failed 2014 election cycle, as the folks from Energy In Depth report:

San Francisco billionaire and environmental activist Tom Steyer, who spent more than $7 million in a failed campaign to defeat U.S. Senator Cory Gardner (R-Colo.) last year, is keeping his Colorado political operation in place. Campaign finance reports show Steyer’s campaign arm, NextGen Climate Action Committee, has spent more than $80,000 on polling and research in Colorado this year.

Steyer, whose foundation is known for writing large checks to green groups, is also strengthening his ties with environmental organizations in Colorado. This week, he will be in Denver to accept an award from Conservation Colorado. Dubbed “Colorado’s largest political event for the environment,” other attendees will include elected officials and leaders from the state’s environmental movement.

Last year, Steyer held talks with millionaire Boulder Congressman Jared Polis (D-Colo.) about splitting the cost of putting anti-fracking measures on the statewide ballot. Ultimately, those measures were pulled before they could reach the ballot, and Steyer chose instead to put his money behind a failed campaign against Gardner. Through it all, Steyer worked with “ban fracking” groups and national environmental organizations to effectively campaign against Colorado’s energy industry, its supporters, and tens of thousands of men, women and families whose livelihoods depend on the oil and natural gas sector. He lost badly, but Steyer is coming back for more.

We’ll have an update next week on Steyer’s visit, and if any of his comments during the Denver trip are made public.

May 21 Colorado Energy Roundup: capitulating to the EPA, sage-grouse protections, and lazy fracktivists

May 21, 2015 by michael · Comments Off
Filed under: Archive, CDPHE, Environmental Protection Agency, Legal, Legislation, PUC 

Gov. John Hickenlooper intends to capitulate to the Environmental Protection Agency’s “Clean Power Plan,” rejecting a suggestion by Sen. Mitch McConnell (R-KY) to avoid implementing the new federal rules:

Gov. John Hickenlooper rejected Senate Majority Leader Mitch McConnell’s call for states to defy new federal pollution controls on coal-burning power plants, saying Colorado has a long history of protecting its environment — despite its heavy reliance on coal.

In a letter to McConnell dated Thursday, Hickenlooper also disputed McConnell’s contention that the rules would cause electric rates to soar. Hickenlooper said Colorado is cutting pollution while keeping energy affordable.

The full text of Gov. Hickenlooper’s letter to Sen. McConnell. The Democrat called the suggestion by the Kentucky Senator “irresponsible”:

In a letter dated May 14, Hickenlooper told McConnell that compliance with the EPA’s proposal would be “a challenge,” but said “states tackle problems of this magnitude on a regular basis.”

“We think it would be irresponsible to ignore federal law, and that is why we intend to develop a compliant Clean Power Plan,” Hickenlooper said in his letter.

About 64 percent of Colorado’s electricity was generated by coal in 2013; when the state ranked 11th nationwide in overall coal production, according to the federal Energy Information Administration.

Hickenlooper said the state has “a long-standing history of investing in our natural environment, with the engagement of local business and civic leaders.”

“We have made immense strides in eliminating the ‘brown cloud’ for which Denver and the front range of the Rockies were once famous; stunning, clear views of the Rocky Mountains have been restored to our residents and the tens of millions of visitors who come here annually,” he said.

The Colorado Assembly entertained SB 258–the Electric Consumers’ Protection Act–this past legislative session, passing the State Senate in a bipartisan vote, but ultimately dying in a Democratic House kill committee late in the session. The bill would have called for any state implementation plan for the EPA Clean Power Plan to be reviewed by the Public Utilities Commission in a public, transparent manner with heavy input from the public as well as agencies such as the Colorado Department of Public Health and Environment, with a final review and vote by the full state legislature, instead of a policy written behind closed doors by CDPHE and implemented unilaterally at the executive agency level, with input offered only after the fact.

Opponents of the bill called the transparency measure “red tape.”

Appealing for broad inclusion and procedural transparency, the Colorado Mining Association’s Dianna Orf hopes that CDPHE and the Governor’s administration will ensure that Colorado’s plan include those most affected by the rule–energy producers and consumers:

“We ask that it be as inclusive and transparent a process as possible,” Orf said. “The magnitude and significance of the plan, and how it’s implemented, is so far reaching that we’d ask that they not only include utilities, but consumers and fuel suppliers as well as the larger business community.”

Indeed.

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On the other hand, late last week, Gov. Hickenlooper issued an executive order on behalf of the greater sage-grouse that is designed to shield the state from expanded federal efforts to list the animal as threatened or endangered, which would have a devastating economic impact on the western part of the state, and many surrounding states as well:

Colorado Gov. John Hickenlooper issued an Executive Order on Friday (May 15) directing state agencies to take additional conservation measures for the greater sage-grouse.

“Our actions, in conjunction with the efforts of our local governments, landowners and many others to protect the greater sage-grouse, have been extensive,” Hickenlooper said in a press release that accompanied the order. “With this Executive Order we are directing our state agencies and our partners to do even more to protect this treasured species.”

Hickenlooper directed state agencies to take a number of actions designed to reduce impacts to the greater sage-grouse and its habitat, including taking inventory of — and improving habitat within — state lands with grouse populations.

“We firmly believe that state-led efforts are the most effective way to protect and conserve the greater sage grouse and its habitat,” said Gov. Hickenlooper in the release. “Conversely, a decision by the federal government to list the greater sage grouse under the Endangered Species Act would have a significant and detrimental economic impact to the state, as well as threaten the very state-led partnerships that are working to protect the species.”

The Fish and Wildlife Service has until September 30, 2015 to render its decision on any listing action for the greater sage-grouse. Full text of Gov. Hickenlooper’s executive order can be read here.

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Outgoing Colorado Oil and Gas Association President and CEO Tisha Schuller had some thoughts on anti-energy fracktivists in Colorado:

On what she sees as a hypocrisy by those who want to ban fracking

“Communities that use oil and gas can’t ban it and say someone else has to produce it for them… We are consumers demanding a product and demanding it at a very affordable price. We know how sensitive consumers are to changes in their heating bill and their gasoline bill… I think a better paradigm is we are totally interdependent on oil and gas, and vilifying it is simply silly and a very lazy way of trying to address climate change.”