January 20 Colorado Energy Cheat Sheet: Billionaire Steyer plays CO politics; NM files intent to sue EPA over mine spill

Independence Institute associate energy policy analyst Simon Lomax has the latest on green billionaire Tom Steyer’s efforts to tilt the legislative balance in Colorado in 2016:

San Francisco billionaire activist Tom Steyer is getting more deeply involved in Colorado politics than ever before. After spending more than $350,000 on research and polling in the Centennial State last year, two groups aligned with Steyer are now funding political attacks on State Senator Laura Woods (R). Republicans control the Colorado State Senate by a single vote, so unseating Woods could return control of the state legislature to Democrats and reinstate one-party rule under Gov. John Hickenlooper (D) until early 2019 at least.

Read all of his latest piece here.

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Our neighbors to the south, New Mexico, has filed an intent to sue notice over the Animas River/Gold King Mine spill last year triggered by the Environmental Protection Agency:

ALBUQUERQUE, N.M. (AP) – New Mexico plans to sue the federal government and the owners of two Colorado mines that were the source of a massive spill last year that contaminated rivers in three Western states, officials said Thursday.

The New Mexico Environment Department said it filed a notice of its intention to sue the U.S. Environmental Protection Agency over the spill, becoming the first to do so. The lawsuit also would target the state of Colorado and the owners of the Gold King and Sunnyside Mines.

The New Mexico regulators said they will sue if the EPA does not begin to take meaningful measures to clean up the affected areas and agree to a long-term plan that will research and monitor the effects of the spill.

“From the very beginning, the EPA failed to hold itself accountable in the same way that it would a private business,” said Ryan Flynn, state Environment Department cabinet secretary.

While the Navajo Nation is considering its options for legal action, the state of Colorado’s Attorney General had no comment at this time.

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Drilling on the Western Slope dropped in 2015:

Garfield County last year held onto the No. 2 spot statewide in terms of oil and gas drilling activity, despite the lowest level of activity since the 1990s.

Mesa County bucked the statewide trend in 2015, however, seeing a sharp increase in drilling and ranking third among Colorado counties.

Falling oil and gas prices resulted in drilling beginning on just 1,437 wells statewide last year, down from 2,239 the prior year, according to Colorado Oil and Gas Conservation Commission data. Much of the decrease occurred in Weld County as companies slowed oil drilling there thanks to falling prices. But the county still continued to see the bulk of activity last year, with drilling begun on 1,084 wells.

Garfield County had just 173 well starts last year, down from 362 in 2014. The last time the county saw less drilling, with 94 well starts, it wasn’t Jeb Bush but his brother, George, who was harboring presidential aspirations, in the year 1999.

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Lower commodity prices have given Coloradans a bit of temporary relief, offsetting the region’s cost of living increases:

Two conflicting consumer price trends are pushing around the Denver area’s cost of living like a rag doll.

A new federal report Wednesday says that the cost of shelter in the Denver, Boulder and Greeley area jumped 5.8 percent in the second half of 2015 from a year earlier.

And yet, over the same period, energy costs fell 19 percent.

The result: a 1.4 percent year-over-year rise in the area’s overall consumer prices, the cost of a basket of typical goods and services, according to the report from the Bureau of Labor Statistics’ Kansas City office.

Shelter costs outweigh energy costs for most consumers, so shelter plays a bigger role in driving overall consumer prices.

The problem is that commodity prices fluctuate (due to market forces but also to environmental factors like government policies), and this small, offsetting bump for Colorado electricity ratepayers will provide only temporary relief. According to the Denver Business Journal, gasoline is down nearly 26 percent in 2015, with natural gas down nearly 19 percent. Household electricity was off 2.9 percent

On the other hand, gasoline cost 25.9 percent less in late 2015 than it did a year earlier, BLS said, while household natural gas cost 18.9 percent less and household electricity was down 2.9 percent. That’s hardly a dent in the 63 percent increase in residential electricity costs measured through 2014.

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Job counters will see in a few years if the solar industry’s employment numbers are real (this time, and not an ephemeral mirage like so many other “green jobs”) and not temporary construction jobs and inferred “indirect jobs,” but for now they admit what is giving the solar folks a bump:

A few key developments are driving the job surge in solar.

Businesses and homeowners are eligible for a 30% tax credit if they install solar panels on their property. That’s been in place since 2006 but in December Congress renewed the tax credit for another six years. That lowers installation costs considerably.

The climate change agreement in Paris and the global action plan to limit global warming is also a positive for the clean energy industry.

And the Environmental Protection Agency released plans last year to force states to lower their carbon output.

Not much in the way of actual demand from consumers without government force (EPA’s Clean Power Plan) or government incentive (tax credit), or public pressure (Paris).

The article notes that lower commodity prices for oil and gasoline, and natural gas, are giving solar a “headwind.” Free market effects will do that.

Despite all the supply-side incentives (tax credits, subsidies, and mandates) and the demand-side disincentives (killing coal through the Clean Power Plan) the Energy Information Administration reports that solar was at 4.4 percent of all renewables in 2014 (last full year of data available), and a mere 0.4 percent of total U.S. energy consumption that year.

January 6 Colorado Energy Cheat Sheet: fracking foes awaken; legislative session promises energy battles; EPA and Gold King Mine saga

Let’s start with the obvious–the anti-fracking forces have reignited their campaign to ban hydraulic fracturing, and want to do away with property rights too, according to this Gazette editorial:

CREED, an umbrella of sorts for anti-energy activists, wants an outright ban on fracking with a proposal known as Initiative 62. In addition to banning all fracking, the measure would prevent compensation of mineral owners for financial losses incurred by the elimination of fracking.

The measure states, in part: “The prohibition of hydraulic fracturing is not a taking of private property and does not require the payment of compensation pursuant to sections 14 and 15 of Article II of the Colorado Constitution.”

In other words, they want eminent- domain-by-mob without due process or just compensation. The U.S. Constitution, thankfully, prohibits voters from taking private property or negating its value. Voters have no more authority to eliminate mineral rights than to end same-sex marriage. Federal law will prevail.

Initiative 63 would establish an “Environmental Bill of Rights,” suggesting local governments have all sorts of newfound authority to ban energy production on private property. Initiative 65 would impose 4,000-foot fracking setbacks from buildings and homes.

As the editorial correctly point out, these anti-energy measures will drive a wedge between leftwing activists and mainstream Democrats, just as they threatened to do in 2014, before Gov. John Hickenlooper threw his policy Hail Mary to halt any chance of a Dem split.

The Denver Business Journal has a quick rundown of the 11 proposed initiatives.

Which brings us to billionaire activist Tom Steyer. From our new energy policy analyst, Simon Lomax:

Steyer’s track record further suggests he won’t be limited to the presidential contest in Colorado or the effort to reelect Bennet, who served as chairman of the Democratic Senatorial Campaign Committee two years ago. Before holding talks with Colorado’s anti-fracking groups about statewide ballot measures in 2014, Steyer called for a fracking ban in his home state of California, which could only be lifted on a county-by-county basis with a two-thirds popular vote. Steyer’s views are very close to those of anti-fracking groups in Colorado, who have proposed a mix of statewide and local bans for the 2016 ballot. Steyer and Rep. Polis – who championed the 2014 anti-fracking measures before they were pulled – are “kindred spirits,” according to a top adviser to the California billionaire. Steyer has a long history with ballot initiatives in California, and is already backing a 2016 measure in Washington state to impose a carbon tax.

Along with ballot measures, Steyer also has a history of throwing his money into state legislative races. In 2014, for example, he poured money into Washington and Oregon trying to win seats for Democrats. In some cases, NextGen Climate did not spend the money directly – it was given to environmental groups like Washington Conservation Voters and the Oregon League of Conservation Voters. NextGen Climate also gave generously to the national League of Conservation Voters for campaigning in Oregon, Washington and several other states, with the group’s president telling The Washington Post, “There’s not a day that goes by that someone on our team doesn’t talk to someone on the Steyer team.”

Which brings us back to Conservation Colorado. If swaying state legislative races is part of Steyer’s plan, he could not find a better partner than Conservation Colorado. The group spent more than $950,000 on Colorado elections in 2014, and appears to have hit the ground running in 2016. In a little-noticed move, Conservation Colorado gave $10,000 to Fairness for Colorado, a 527 political organization, in September 2015. According to state records, Fairness for Colorado – which focuses on economic issues and social welfare, not the environment – has already spent almost $11,000 with a Denver direct-mail firm.

Simon’s article has tons of links for all the relevant information, plus plenty more on Steyer and Democratic efforts in Colorado in 2015 and 2016.

The fracking battle will also continue in the legislature with liability for earthquakes laid at the feet of resource developers:

Democratic state Rep. Joe Salazar wants to hold drillers responsible for any earthquakes they trigger that cause property damage or physical injury.

Salazar says residents in his Adams County district are worried about a fracking group’s plans to place 20 oil and gas wells in neighborhoods there.

“These were people who were concerned for their children,” Salazar said. “They were concerned for their community. They were concerned about the environment. They’re concerned about their clean water and clean air.”

But state Sen. Ray Scott, R-Grand Junction, says liability would be difficult to prove. He also says that Colorado already has strict environmental guidelines – and he cautions against targeting an industry that provides a great deal of revenue to the state.

“How much longer do you want to stand on the throat of the oil and gas industry to limit that amount of money that’s being generated by the state of Colorado?” Scott said.

But even Rep. Salazar doesn’t think an outright ban on fracking–as some on his side have demanded, will work, and responses to any proposed ban are also in the works:

State Rep. Joseph Salazar, D-Thornton says he doesn’t think increased oil and gas regulation should be handled with constitutional amendments. Nor does he think an outright ban on fracking will fly. But he believes that the Legislature can do more to protect residents from the impacts of drilling.

“An outright ban, that’s just not going to work,” Salazar told The Statesman. “I understand that mineral rights owners have property rights, and that’s a taking. But that doesn’t mean that we can’t be safe about it by studying the effects and implementing good safety measures to ensure that when people want to exercise their mineral rights that they’re not adversely affecting their neighbors.”

State Sen. Jerry Sonnenberg, R-Sterling, said he’s ready to sponsor his own initiative similar to one he backed in 2014 that would prevent any local government that bans oil and gas production from receiving state tax revenues generated by the industry.

“I pushed pretty hard for us not to cave on that for fear that we’d be going down this same path in 2016 that we were in 2014,” Sonnenberg said, referring to the decision to pull two industry-backed ballot questions as part of the 2014 Hickenlooper-Polis compromise. “Rest assured, I will not be silent on this issue. Whatever I need to do, I will be out front.”

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Other legislative efforts will be focused on the fallout of the Environmental Protection Agency’s Gold King Mine spill:

She [Sen. Ellen Roberts, R-Durango] is also working on bills in the wake of the inactive Gold King Mine spill, in which an error by the Environmental Protection Agency caused an estimated 3 million gallons of mining sludge to pour into the Animas River on Aug. 5.

One proposal comes out of an interim water resources committee that has suggested a resolution that would encourage Congress to pass “good samaritan” legislation, which would reduce the liability associated with private entities conducting mine reclamation work.

Roberts would also like to address jurisdictional issues between states in the wake of Gold King. The incident impacted several states, including neighboring New Mexico. State agencies found it difficult to work with one another because of legal roadblocks. Roberts has proposed legislation that would eliminate some of those barriers through intergovernmental agreements.

“When minutes matter, you need a clearer pathway,” she said.

But deciding anything with regards to the EPA Gold King Mine spill might be difficult, as The Daily Caller explains:

A definitive explanation for what caused the Gold King Mine disaster may never be known if the Environmental Protection Agency is not investigated just as a private company responsible for the calamitous spill would be, according to a former enforcement agent.

The EPA accepted blame for the Aug. 5, 2015, leak that poisoned drinking water in three western states and the Navajo Nation with three million gallons of toxic mining waste, but no officials have been named as responsible or punished. Similar previous environmental disasters, however, were subjects of criminal investigations that led to severe public penalties for those responsible.

“You may not learn about it unless you engage in a criminal investigation,” Heritage Foundation senior legal research fellow and former EPA criminal enforcement special agent Paul Larkin told The Daily Caller News Foundation.

Encouraging.

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And the EPA isn’t done with mining either, with backing from the usual anti-energy suspects:

The Environmental Protection Agency is proposing toughening its requirements for measuring methane emissions from underground coal mines, a move that would result in some added expenses for testing and could bolster calls for regulating the emissions.

The agency recently unveiled a proposal it says will streamline — and improve the data quality of — its greenhouse gas reporting rule, which applies to a number of industries.

In the case of underground coal mines, it would no longer let them use data from quarterly Mine Safety and Health Administration reports for reporting the volumes of methane vented from mines.

Ted Zukoski, an attorney with the Earthjustice conservation group, praised the proposal as one that will provide better information on Colorado coal mines and address a major source of climate pollution.

“Methane is a greenhouse gas on steroids — it’s up to 80 times more potent than (carbon dioxide) as a heat-trapping gas over the short term. And coal mine methane is a big issue in Colorado because coal mines in the North Fork Valley are some of the gassiest in the U.S. It’s important for EPA — and the public — to have an accurate picture of this pollution, particularly after the climate accord in Paris, which put a major emphasis on transparency around climate pollution,” he said.

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Another piece from Simon, this time on the Paris climate deal and our own Sen. Michael Bennet:

Of the 26 Senate Democrats who voted with Republicans in 2009 to put the brakes on cap-and-trade, nine are still serving.

Avoiding a debate over the Paris climate agreement and its impact on energy prices, jobs and the economy is a great deal for them—especially U.S. Sens. Patty Murray, D-Wash., and Michael Bennet, D-Colo., who are running for re-election in November 2016. As things stand, they can just hunker down and let the EPA do its thing.

But it’s a lousy deal for the blue-collar and rural constituents who voted for these senators. Their concerns about the economy, energy prices, and jobs were front and center during the cap-and-trade debate, and they should be front and center again after the Paris climate agreement. Instead, these voters have been left in the cold while environmental groups toast themselves and whatever they think was achieved in Paris.

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Finally, your poop may be keeping the lights on:

The wastewater treatment plant in Grand Junction, Colo., takes in 8 million gallons of raw sewage — what’s flushed down the toilet and sinks.

Processing this sewage produces a lot of methane, which the plant used to just burn off into the air.

The process was “not good for the environment and a waste of a wonderful resource,” says Dan Tonello, manager of the Persigo Wastewater Treatment Plant.

Now, using more infrastructure, the facility refines the methane further to produce natural gas chemically identical to what’s drilled from underground.

The biogas–a delicate term–is renewable.

August 27 Colorado Energy Cheat Sheet: Bennet says ozone rule “not going to work”; net metering gets a boost from PUC

bennet

Sen. Michael Bennet, joined a bipartisan group of officials in Colorado questioning the proposed Environmental Protection Agency’s new ozone rule proposal at the recent Colorado Oil and Gas Association Energy Summit in Denver:

Senator Bennet and Gardner participated on a panel hosted by the Colorado Oil and Gas Association on August 26. Below is the question posed to Senator Bennet, and his response:

Manu Raju, Politico: Senator Bennet, a big issue here in the room is the ozone standards. Environmental groups, EPA officials are concerned about excessive levels of ozone; that they could lead to premature death and respiratory problems. The business community warns that the standards EPA is proposing would be very bad here in Colorado; it would cost a lot of jobs. The current ground-level ozone standard set in 2008 is 75 parts per billion. EPA’s proposal is lowering it to 65 to 70 parts per billion, and it could go even lower. Question to you: Do you think the EPA proposal is fair? Should they go to 65 parts per billion?

Senator Bennet: I’m deeply concerned about it. I think we should understand how they arrived at that conclusion, because the way some statutes are written, they don’t sometimes have the flexibility we think they should have. And this is the perfect example of applying the law and doing it in a way that doesn’t make sense on the ground. Because of the pollution that’s come in from other Western states, from across the globe, from wildfires in the West, we have significant parts of our state that would be in non-attainment [unintelligible] from the very beginning of the law. That doesn’t make any sense. That’s not going to work.[emphasis added] Having said that, we need to care a lot about our kids and the elderly and the quality of the air that they breathe, and we need to care about children in our state that have asthma. So my hope is that we can work together to get to a rational outcome, but I’m not—The one that’s been proposed is not yet there.

Earlier this month, The Center for Regulatory Solutions issued a report that included opinions from Democrats, Republicans, and other elected officials from across the state opposing or pushing back against the EPA ozone rule. A sampling of those statement can be found in our August 13 edition.

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Net metering, a handout from folks who don’t own solar panels to those who do, in the form of retail price reimbursement for the electricity they generate–gets a boost from a unanimous Public Utilities Commission decision to keep the current rates in place:

Colorado’s Public Utility Commission ruled Wednesday afternoon that no changes were needed to the state’s net metering process, meaning that homeowners with solar arrays will continue to receive retail rates for energy they produce.

“The PUC voted (3-0) today to maintain the status quo for the net metering program and close the docket,” PUC spokesman Terry Bote confirmed via email.

Net metering provides a credit for every kilowatt-hour an array puts on the grid at the same price residential customers are charged for electricity – about 10.5 cents.

Xcel Energy, the state’s largest electric utility, has been pushing a plan to cut the incentives for each kilowatt-hour produced to a fraction of a penny, but solar users and industry groups have lobbied hard against changes that would remove a key financial incentive.

“This appears to be the outcome we have been working towards in more than a year of work on this docket,” said Rebecca Cantwell, executive director of the Colorado Solar Energy Industries Association. “We have worked in full collaboration with other members of the solar industry, and this represents a tremendous amount of hard work from many people. Xcel officials could not immediately be reached for comment.

“Key financial incentive” = subsidy.

From my op-ed late in 2014, as the PUC was steering through a slate of meetings to determine the “value of solar”:

At issue is the method of calculating the “value of rooftop solar,” as the Public Utilities Commission chairperson put it this year. Solar proponents believe the credits for excess electricity generated by solar panels and pushed back onto the grid should continue to get 10.5 cents per kilowatt-hour — the average of annual residential retail rates.

Xcel is arguing for a reduction to 4.6 cents, saying the costs associated with maintaining the grid made the reimbursement unfair.

Xcel representatives called maintaining the 10.5-cent credit a “hidden cost” for its 1.2 million Colorado ratepayers. “Everybody needs to pay for the cost of the grid,” said spokesperson Hollie Velazquez Horvath.

Rooftop solar uses the grid in multiple ways. For customers pulling energy when the sun isn’t out (or near maximum generation) or pushing electricity onto the grid at the peak of summer, the grid balances supply and demand, regulating and stabilizing electrical output. It also acts as the exchange mechanism when a customer goes from generating and reselling excess electricity, to periods when the customer needs more electricity than the solar panel provides.

Customers who generate enough “revenue” from their net metering credits end up paying little or nothing for the grid costs. The costs get shifted to the utilities’ non-solar customers.

In other words, solar proponents advocate that non-solar ratepayers continue to subsidize grid maintenance for solar customers and then purchase electricity from those same solar customers at a price higher than they would pay for Xcel to generate the power.

The PUC has closed the docket on this proposal, but the legislature may look to take up the issue of net metering in future sessions.

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Speaking of Sen. Michael Bennet (D-CO), the Democrat up for reelection in 2016 has some words of advice for embattled Democratic Party presidential frontrunner Hillary Clinton on #KeystoneXL:

DENVER — Sen. Michael Bennet (D-Colo.) on Wednesday dinged Hillary Clinton for punting on the issue of Keystone XL oil pipeline.

“I think she should take a position,” Bennet said of his party’s presidential frontrunner at a Colorado Oil and Gas Association conference here. “She should take a position for it — or she should take a position against it.”

Speaking at a forum moderated by POLITICO, Bennet said he supports building the pipeline. He is up for reelection next year in this perennial swing state and could face a tough battle if the GOP fields a formidable opponent.

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A Colorado Association of Commerce and Industry panel of five of the state’s Congressional delegation was split on whether federal or state and local authorities were the best in dealing with oil and gas regulations–an issue Colorado registered voters in a recent Independence Institute poll said should go the state’s way, 37 to 5 percent, over DC-based rulemaking:

On energy legislation, the three Democrats and two Republicans who represent portions of metro Denver took not two but three different stances on which government should be most responsible for oversight of the oil and gas industry:

Democratic U.S. Rep. Diana DeGette of Denver said that while she respects the laws the state has drafted, the federal government must play a role in regulating the effects of drilling on waterways that flow between states.

Coffman said that regulations should fall to the state government, where bodies like the Colorado Oil and Gas Conservation Commission are much more in touch with the needs of local residents.

And Democratic U.S. Rep. Jared Polis of Boulder — who last year backed two state constitutional amendments to increase the role of cities and counties in regulation of drilling before pulling the measures— said it is actually local governments like those in Weld County that should decide where and how oil rigs should be allowed to operate in their communities. “I don’t trust the D.C. politicians. I don’t trust the Denver politicians,” said Polis, a fourth-term congressman. “This is a decision that should be made at the local level.”

Don’t be too impressed with Polis’s “local level” mantra as anti-fracking activists look to resurrect ballot issues designed to ban oil and gas development under the guise of “local community control.” Polis backed similar measures in 2014 before they were pulled in favor of Governor John Hickenlooper’s oil and gas commission.

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The Clean Power Plan may have been finalized on August 3, but serious questions about the EPA’s assumptions for the rule remain, as an analysis by Raymond L. Gifford, Gregory E. Sopkin, and Matthew S. Larson show (all emphases added):

• EPA scaled back on carbon dioxide reductions from coal plant improvements and energy
efficiency in its Final Rule under the Clean Power Plan, but nevertheless increased its
carbon reduction mandate from 30 percent to 32 percent by 2030. EPA did so through its
use of “potential renewables” as the variable driving eventual state carbon budgets. EPA now
forecasts that incremental renewable energy electric generation (Building Block 3) will more
than double, from 335,370 gigawatt hours in the Proposed Rule to 706,030 GWh in the Final
Rule.

• EPA uses a complicated and unprecedented methodology to achieve its new renewable
energy forecast for the years 2024 through 2030. Looking to historic renewable capacity
additions during 2010-2014, EPA selects the maximum change in capacity for each renewable
resource type that occurred in any year over the five-year period, and adds this maximum
capacity change year-over-year from 2024 through 2030. The maximum capacity addition
year selected by EPA for each resource is more than twice as much as the average over 2010
- 2014.

EPA’s methodology fails to account for the fact that expiration of the production tax
credit, or PTC, drove the development of renewable energy resources during 2012.

Renewable energy capacity additions fluctuated substantially between 2010 and 2014,
especially the largest component of Building Block 3, onshore wind power. EPA uses the
anomalous year, 2012, to predict future growth of wind power. In 2012, the wind production
tax credit was expected to expire at the end of the year, causing producers to rush to install as
much wind capacity as possible. Other renewable resource types also showed non-linear and
unpredictable trends during 2010 – 2014.

• EPA’s renewable energy expectations diverge by an order of magnitude from the EIA’s
base case renewable energy capacity and generation forecasts over the 2022 – 2030 period.
Notwithstanding these incongruences with EIA’s forecasts, EPA suggests that its forecasted
renewable energy additions would occur in the normal course even without the CPP.

EPA assumes that fossil fuel generation could be displaced based on the average capacity
factors of renewable energy resource types (e.g., 41.8 percent for onshore wind power).
However, utilities and restructured market system operators assign a much lower capacity value
for wind power, in the 10-15 percent range, because wind production is often not available during
peak load conditions.
To the extent that the EPA’s assumed renewable energy displacement of
fossil fuel resources does not occur because wind, solar, or other intermittent generation is not
available, system capacity will in real terms be lost absent planners assigning a much lower
capacity value to the given renewable resource (and in turn adding additional capacity, be it
fossil-based or renewable).

The authors conclude:

Setting aside enforceability, the President gave EPA a goal in his Climate Action Plan: achieve a 30% carbon emission reduction by 2030. EPA proceeded to solve for that goal with a capacious construction of the BSER [Best System of Emission Reduction] under the Clean Air Act. While gas “won” in the near-term under the Proposed Rule, in the end renewable energy resources assume a Brobdingnagian role in determining the level of carbon emission reductions that are purportedly possible under the BSER. EPA’s Final Rule constructs a method that solves for a conclusion, instead of having a method that yields a conclusion. Of even greater concern, EPA’s use of renewable average capacity factors instead of capacity credit exacerbates reliability risks to the electric system during peak load conditions. The end result may be unknown, but the method of getting there is highly questionable at best.

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LINKS

Despite tanking oil prices, a new outfit, Evolution Midstream, announced a planned $300 million launch, saying of the current situation that “this too shall pass.”

Paving the way for the EPA’s Clean Power Plan, the billionaire Tom Steyer funded and pushed a “state-level advocacy network” to prop up the controversial plan and give endangered politicians cover.

Colorado’s oil and gas production projected to fall, according to a University of Colorado study.

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Animas River updates

EPA officials knew of a “blowout” potential as much as a year before the Animas River spill, but even the release of this info took place late on a Friday, in what AP reporter Nick Riccardi called a “very late-night document dump on Gold King mine”:

U.S. officials knew of the potential for a catastrophic “blowout” of poisonous wastewater from an inactive gold mine, yet appeared to have only a cursory plan to deal with such an event when a government cleanup team triggered a 3-million-gallon spill, according to internal documents released by the Environmental Protection Agency.

The EPA released the documents late Friday following weeks of prodding from The Associated Press and other media organizations. While shedding some light on the circumstances surrounding the accident, the newly disclosed information also raises more questions about whether enough was done to prevent it.

The Aug. 5 spill came as workers excavated the entrance to the idled Gold King Mine near Silverton, Colorado, unleashing a torrent of toxic water that fouled rivers in three states.

A June 2014 work order for a planned cleanup noted the mine had not been accessible since 1995, when the entrance partially collapsed.

“This condition has likely caused impounding of water behind the collapse,” the report said. “Conditions may exist that could result in a blowout of the blockages and cause a release of large volumes of contaminated mine waters and sediment from inside the mine.”

An EPA internal review post-spill revealed that they never checked the water levels or the pressure contained within the mine despite their June 2014 work order:

Dangerously high water pressure levels behind the collapsed opening of the Gold King Mine were never checked by the Environmental Protection Agency, in part because of costs and time oversights.

The revelations came Wednesday as the EPA released an internal review of a massive Aug. 5 blowout at the mine above Silverton. The report called an underestimation of the pressure the most significant factor leading to the spill.

According to the report, had crews drilled into the mine’s collapsed opening, as they had done at a nearby site, they “may have been able to discover the pressurized conditions that turned out to cause the blowout.”

EPA officials claim they were caught unaware:

EPA supervisor Hays Griswold, who was at the scene of the blowout Aug. 5, told The Denver Post in an interview this month conditions in the mine were worse than anticipated.

“Nobody expected (the acid water backed up in the mine) to be that high,” he said.

The report says, however, that decreased wastewater flows from the mine, which had been leaching for years, could have offered a clue to the pressurization. Also, a June 2014 task order about work at the mine said “conditions may exist that could result in a blowout of the blockages.”

The inability to obtain an actual measurement of the mine water pressure behind the mine’s blocked opening “seems to be a primary issue,” according to the review. It went on to say if the pressure information was obtained, other steps could have been considered.

It did not elaborate on what those steps could have been.

“Despite the available information suggesting low water pressure behind the debris at the adit entrance, there was, in fact, sufficiently high pressure to cause the blowout,” the review says. “Because the pressure of the water in the adit was higher than anticipated, the precautions that were part of the work plan turned out to be insufficient.”

Stan Meiburg, EPA’s deputy administrator, said during the call that “provisions for a worst-case scenario were not included in the work plan.”

The 3 million gallon orange spill was, apparently, the worst-case scenario.

The internal investigation called the agency’s preparedness when it came to analysis of the water issue as “insufficient.”

It may take a while–many years–to know how the toxic minerals and metals released by the EPA will settle in the sediment of the Animas River and further downstream:

As communities along the Animas River continue to wonder about the long-term consequences of the Gold King Mine spill, one of the biggest questions remaining is the orange sediment lying along riverbeds and riverbanks.

What’s in it? How long will it be there? How might it affect our drinking water and our health? These are all concerns for community members, and many experts say we may not know until time goes by and a few spring runoffs continue to wash it downstream.

The EPA isn’t getting off the hook with the release of internal reports admitting lack of preparation or failure to measure water levels, or even late-night docu-dumps:

Republicans say the administration has been too wrapped up in guarding the world against climate change to address environmental dangers closer to home and should be held accountable, according to Texas Republican Lamar Smith, who is leading a probe into the spill in the House.

“Even in the face of self-imposed environmental disaster, this administration continues to prioritize its extreme agenda over the interests and well-being of Americans,” said Smith, chairman of the House Science, Space and Technology Committee.

The committee has scheduled a Sept. 9 hearing on the spill and has requested the head of EPA and the contractor involved in the mine incident to testify. It appears from the internal reports that the contractor involved in the spill was the same one that drafted the blowout report.

The report that was released “in the dead of night” Friday raises new questions about the depth of EPA’s culpability, according to Smith. “The actions that caused this spill are either the result of EPA negligence or incompetence,” he said. “We must hear from all those involved to determine the cause of what happened and how to prevent future disasters like this.”

The agency’s lack of timely dissemination of documents and details has been a theme since the spill erupted earlier this month.

But partisan flaps at the federal level between Republicans in Congress and one of the administration’s favorite agencies is not the only scene of squabbles, as local officials allege Republican Attorney General Cynthia Coffman had a partisan agenda in mind when scheduling meetings in Durango in the aftermath of the spill.

And finally, Silverton decided to seek federal funds for clean up operations after years of reservations over possible “Superfund” designation:

After two decades resisting Environmental Protection Agency funds for cleanup of the festering mines that dot its surroundings, Silverton on Tuesday announced it is seeking federal help.

A joint resolution passed by the town’s board and the San Juan County Commission says officials will work with neighboring communities to petition Congress for federal disaster dollars they hope will address leaching sites quickly.

“Silverton and San Juan County understand that this problem is in our district, and we feel we bear a greater responsibility to our downstream neighbors to help find a solution,” the resolution said.

The decision is a paradigm shift for the small town of about 650 year-round residents in the wake of a 3 million-gallon wastewater spill Aug. 5 at the Gold King Mine in the mountains to the north.

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

August 20, 2015 by michael · Comments Off
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.

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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.

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***

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.

Methane

***

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.

#greenfail

***

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 EPA’s own watchdog is also launching an investigation:

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 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

94414057-8439-4f5c-94c2-9d7256bd5ad9

FORUM PANELISTS

588aabb9-5faa-4e26-a36c-3b80c2e6f27b
RAYMOND L. GIFFORD
Attorney/Partner, Wilkinson Barker Knauer LLP; former Chairman of the Colorado Public Utilities Commission

330477aa-7040-4f37-9fb5-7be8895415ef
DAN BYERS
Senior Director of Policy, Institute for 21st Century Energy – U.S. Chamber of Commerce

70214157-cdc9-4aac-b28d-121d413c47b9
LEE BOUGHEY
Senior Manager of Corporate Communications & Public Affairs – Tri-State Generation & Transmission Assoc.

***

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.

***

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.

***

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.

Senate Committee Report on Billionaires and Eco-Left Activism in Colorado Draws on II Research

August 12, 2014 by michael · Comments Off
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.

The report included the following diagram:
ffc diagram

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